Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Apr. 29, 2018 | May 31, 2018 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | NCI BUILDING SYSTEMS INC | |
Entity Central Index Key | 883,902 | |
Trading Symbol | NCS | |
Current Fiscal Year End Date | --10-28 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Apr. 29, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 66,164,248 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 29, 2018 | Apr. 30, 2017 | Apr. 29, 2018 | Apr. 30, 2017 | |
Income Statement [Abstract] | ||||
Sales | $ 457,069 | $ 420,464 | $ 878,418 | $ 812,167 |
Cost of sales | 352,986 | 319,625 | 682,418 | 627,377 |
Gross profit | 104,083 | 100,839 | 196,000 | 184,790 |
Engineering, selling, general and administrative expenses | 74,406 | 75,124 | 149,192 | 144,164 |
Intangible asset amortization | 2,413 | 2,405 | 4,825 | 4,810 |
Restructuring and impairment charges | 488 | 315 | 1,582 | 2,578 |
Strategic development and acquisition related costs | 1,134 | 124 | 1,861 | 481 |
Loss on disposition of business | 6,686 | 0 | 6,686 | 0 |
Gain on insurance recovery | 0 | (9,601) | 0 | (9,601) |
Income from operations | 18,956 | 32,472 | 31,854 | 42,358 |
Interest income | 37 | 138 | 70 | 144 |
Interest expense | (4,849) | (7,479) | (12,341) | (14,365) |
Foreign exchange (loss) gain | (305) | 127 | 166 | 50 |
Loss on extinguishment of debt | (21,875) | 0 | (21,875) | 0 |
Other income, net | 270 | 322 | 727 | 708 |
Income (loss) before income taxes | (7,766) | 25,580 | (1,399) | 28,895 |
(Benefit) provision for income taxes | (2,082) | 8,606 | (964) | 9,882 |
Net income (loss) | (5,684) | 16,974 | (435) | 19,013 |
Net income allocated to participating securities | 0 | (115) | 0 | (131) |
Net income (loss) applicable to common shares | $ (5,684) | $ 16,859 | $ (435) | $ 18,882 |
Income (loss) per common share: | ||||
Basic (in USD per share) | $ (0.09) | $ 0.24 | $ (0.01) | $ 0.27 |
Diluted (in USD per share) | $ (0.09) | $ 0.24 | $ (0.01) | $ 0.27 |
Weighted average number of common shares outstanding: | ||||
Basic (in shares) | 66,210 | 70,988 | 66,311 | 70,933 |
Diluted (in shares) | 66,210 | 71,122 | 66,311 | 71,107 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Apr. 29, 2018 | Apr. 30, 2017 | Apr. 29, 2018 | Apr. 30, 2017 | ||
Comprehensive income (loss): | |||||
Net income (loss) | $ (5,684) | $ 16,974 | $ (435) | $ 19,013 | |
Other comprehensive income, net of tax: | |||||
Foreign exchange translation gains and other | [1] | (261) | (144) | (24) | (58) |
Other comprehensive loss | (261) | (144) | (24) | (58) | |
Comprehensive (loss) income | $ (5,945) | $ 16,830 | $ (459) | $ 18,955 | |
[1] | Foreign exchange translation losses and other are presented net of taxes of $0 in both the three months ended April 29, 2018 and April 30, 2017 and in both the six months ended April 29, 2018 and April 30, 2017. |
CONSOLIDATED STATEMENTS OF COM4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Parenthetical) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Apr. 29, 2018 | Apr. 30, 2017 | Apr. 29, 2018 | Apr. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Income tax effects of foreign exchange translation gains and other | $ 0 | $ 0 | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Apr. 29, 2018 | Oct. 29, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 35,335 | $ 65,658 |
Restricted cash | 177 | 136 |
Accounts receivable, net | 180,393 | 199,897 |
Inventories, net | 221,369 | 198,296 |
Income taxes receivable | 6,439 | 3,617 |
Investments in debt and equity securities, at market | 6,332 | 6,481 |
Prepaid expenses and other | 36,551 | 31,359 |
Assets held for sale | 10,102 | 5,582 |
Total current assets | 496,698 | 511,026 |
Property, plant and equipment, net | 221,398 | 226,995 |
Goodwill | 148,291 | 148,291 |
Intangible assets, net | 132,338 | 137,148 |
Deferred income taxes | 2,513 | 2,544 |
Other assets, net | 5,369 | 5,108 |
Total assets | 1,006,607 | 1,031,112 |
Current liabilities: | ||
Note payable | 1,656 | 440 |
Accounts payable | 157,819 | 147,772 |
Accrued compensation and benefits | 49,850 | 59,189 |
Accrued interest | 1,464 | 6,414 |
Other accrued expenses | 104,475 | 102,233 |
Total current liabilities | 315,264 | 316,048 |
Long-term debt, net of deferred financing costs of $6,043 and $6,857 on April 29, 2018 and October 29, 2017, respectively | 408,957 | 387,290 |
Deferred income taxes | 1,928 | 4,297 |
Other long-term liabilities | 18,134 | 18,230 |
Total long-term liabilities | 429,019 | 409,817 |
Stockholders’ equity: | ||
Common stock, $.01 par value, 100,000,000 shares authorized; 66,252,112 and 68,677,684 shares issued at April 29, 2018 and October 29, 2017, respectively; 66,142,319 and 68,386,556 shares outstanding at April 29, 2018 and October 29, 2017, respectively | 663 | 687 |
Additional paid-in capital | 521,190 | 562,277 |
Accumulated deficit | (249,832) | (248,046) |
Accumulated other comprehensive loss, net | (7,555) | (7,531) |
Treasury stock, at cost (109,793 and 291,128 shares at April 29, 2018 and October 29, 2017, respectively) | (2,142) | (2,140) |
Total stockholders’ equity | 262,324 | 305,247 |
Total liabilities and stockholders’ equity | $ 1,006,607 | $ 1,031,112 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Apr. 29, 2018 | Oct. 29, 2017 |
Statement of Financial Position [Abstract] | ||
Deferred financing costs | $ 6,043 | $ 6,857 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 66,252,112 | 68,677,684 |
Common stock, shares outstanding (in shares) | 66,142,319 | 68,386,556 |
Treasury stock, shares (in shares) | 109,793 | 291,128 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Apr. 29, 2018 | Apr. 30, 2017 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (435) | $ 19,013 |
Adjustments to reconcile net income (loss) to net cash from operating activities: | ||
Depreciation and amortization | 20,800 | 20,378 |
Amortization of deferred financing costs | 781 | 954 |
Loss on extinguishment of debt | 21,875 | 0 |
Share-based compensation expense | 7,868 | 5,862 |
Gain on insurance recovery | 0 | (9,601) |
Loss on disposition of business | 6,192 | 0 |
(Gains) losses on assets, net | (250) | 262 |
Provision for doubtful accounts | (44) | 1,406 |
Benefit for deferred income taxes | (1,676) | (113) |
Changes in operating assets and liabilities, net of effect of acquisitions and dispositions: | ||
Accounts receivable | 17,060 | 12,232 |
Inventories | (24,920) | (8,617) |
Income taxes | (2,822) | 982 |
Prepaid expenses and other | (4,182) | (1,875) |
Accounts payable | 12,686 | (21,737) |
Accrued expenses | (12,016) | (11,068) |
Other, net | (931) | (189) |
Net cash provided by operating activities | 39,986 | 7,889 |
Cash flows from investing activities: | ||
Capital expenditures | (16,897) | (11,556) |
Proceeds from sale of property, plant and equipment | 2,678 | 2,533 |
Business disposition, net | (4,415) | 0 |
Proceeds from insurance | 0 | 420 |
Net cash used in investing activities | (18,634) | (8,603) |
Cash flows from financing activities: | ||
(Deposit) refund of restricted cash | (41) | 240 |
Proceeds from stock options exercised | 1,040 | 1,196 |
Proceeds from ABL facility | 65,000 | 35,000 |
Payments on ABL facility | (65,000) | (35,000) |
Proceeds from term loan | 415,000 | 0 |
Payments on term loan | (144,147) | (10,000) |
Payments on senior notes | (265,470) | 0 |
Payments on note payable | (441) | (458) |
Payments of financing costs | (6,275) | 0 |
Payments related to tax withholding for share-based compensation | (4,612) | (2,389) |
Purchases of treasury stock | (46,705) | (3,533) |
Net cash used in financing activities | (51,651) | (14,944) |
Effect of exchange rate changes on cash and cash equivalents | (24) | (63) |
Net decrease in cash and cash equivalents | (30,323) | (15,721) |
Cash and cash equivalents at beginning of period | 65,658 | 65,403 |
Cash and cash equivalents at end of period | $ 35,335 | $ 49,682 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings (Deficit) | Accumulated Other Comprehensive (Loss) Income | Treasury Stock |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect of accounting change | $ 0 | $ 1,351,000 | $ (1,351,000) | |||
Balance (in shares) at Oct. 29, 2017 | 68,677,684 | (291,128) | ||||
Balance at Oct. 29, 2017 | 305,247,000 | $ 687,000 | 562,277,000 | (248,046,000) | $ (7,531,000) | $ (2,140,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Treasury stock purchases (in shares) | (2,917,034) | |||||
Treasury stock purchases | (51,317,000) | $ (51,317,000) | ||||
Retirement of treasury shares (in shares) | (2,916,930) | 2,916,930 | ||||
Retirement of treasury shares | 0 | $ (29,000) | (51,286,000) | $ 51,315,000 | ||
Issuance of restricted stock (in shares) | 397,722 | |||||
Issuance of restricted stock | $ 0 | $ 4,000 | (4,000) | $ 181,439 | ||
Stock options exercised (in shares) | 100,000 | 93,636 | ||||
Stock options exercised | $ 1,040,000 | $ 1,000 | 1,039,000 | |||
Foreign exchange translation loss and other, net of taxes | (79,000) | (55,000) | (24,000) | |||
Share-based compensation | 7,868,000 | 7,868,000 | ||||
Net loss | (435,000) | (435,000) | ||||
Balance (in shares) at Apr. 29, 2018 | 66,252,112 | (109,793) | ||||
Balance at Apr. 29, 2018 | $ 262,324,000 | $ 663,000 | $ 521,190,000 | $ (249,832,000) | $ (7,555,000) | $ (2,142,000) |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Apr. 29, 2018 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited consolidated financial statements for NCI Building Systems, Inc. (together with its subsidiaries, unless otherwise indicated, the “Company,” “NCI,” “we,” “us” or “our”) have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, the unaudited consolidated financial statements included herein contain all adjustments, which consist of normal recurring adjustments, necessary to fairly present our financial position, results of operations and cash flows for the periods indicated. Operating results for the fiscal three and six month period ended April 29, 2018 are not necessarily indicative of the results that may be expected for the fiscal year ending October 28, 2018 . Our sales and earnings are subject to both seasonal and cyclical trends and are influenced by general economic conditions, interest rates, the price of steel relative to other building materials, the level of nonresidential construction activity, roof repair and retrofit demand and the availability and cost of financing for construction projects. For further information, refer to the consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the fiscal year ended October 29, 2017 filed with the Securities and Exchange Commission (the “SEC”) on December 18, 2017. Reporting Periods We use a four-four-five week calendar each quarter with our fiscal year end being on the Sunday closest to October 31. The year end for fiscal 2018 is October 28, 2018 . Change in Operating Segments On February 22, 2018, the Company announced changes to NCI’s reportable business segments, effective January 28, 2018 starting with the first quarter of fiscal 2018, to align with changes in how the Company manages its business, reviews operating performance and allocates resources. As of the first quarter, the Company began reporting results under four reportable segments: Engineered Building Systems; Metal Components; Insulated Metal Panels; and Metal Coil Coating. Previously, operating results for the Insulated Metal Panel product line were included in the Metal Components segment. In addition, CENTRIA’s coil coating operations, which had also been included in the Metal Components segment since the Company’s acquisition of CENTRIA in January 2015, will now be reported within the Metal Coil Coating segment. The Company began reporting its financial results under the new reportable segments with the filing of the Form 10-Q for the quarter ending January 28, 2018. Disposition of Business In the second quarter of fiscal 2018, the Company closed on the sale of CENTRIA International LLC, which owned our China manufacturing facility. The Company recognized a $6.7 million loss on the sale in the Insulated Metals Panel segment during the second quarter of fiscal 2018. The disposition does not represent a strategic shift that has or will have a major effect of the Company’s operations or financial results. |
ACCOUNTING PRONOUNCEMENTS
ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Apr. 29, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
ACCOUNTING PRONOUNCMENTS | ACCOUNTING PRONOUNCEMENTS Adopted Accounting Pronouncements In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. ASU 2015-11 requires that inventory that has historically been measured using first-in, first-out (FIFO) or average cost method should now be measured at the lower of cost and net realizable value. We adopted this guidance in our first quarter of fiscal 2018 on a prospective basis. The adoption of this guidance did not have a material impact on our financial position or results of operations. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes . ASU 2015-17 requires all deferred tax assets and liabilities to be presented on the balance sheet as noncurrent. The requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by this update. We adopted ASU 2015-17 in our first quarter in fiscal 2018 on a retrospective basis. As a result deferred tax assets of $20.1 million that were presented on our October 29, 2017 consolidated balance sheet have been reclassified to non-current deferred tax liabilities and the remaining $2.5 million deferred tax assets have been reclassified to non-current deferred tax assets to be consistent with the current year classification. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting , which simplifies certain aspects of the accounting for share-based payment transactions, including income tax effects, forfeitures, minimum statutory tax withholding requirements, classification as either equity or liability, and classification on the statement of cash flows. We adopted ASU 2016-09 in our first quarter in fiscal 2018. ASU 2016-09 requires all excess tax benefits and tax deficiencies be recognized as income tax expense or benefit in the income statement, thus eliminating additional paid-in capital pools. The Company applied the new standard guidance prospectively to all excess tax benefits and tax deficiencies resulting from settlements after October 29, 2017. The standard also requires a policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. The Company recognized a cumulative effect adjustment of $1.4 million to increase accumulated deficit on a modified retrospective basis as of October 29, 2017 and has elected to account for forfeitures when they occur on a prospective basis. The standard requires that excess tax benefits should be classified along with other income tax cash flows as an operating activity on the statement of cash flows, which differs from the Company’s historical classification of the excess tax benefits as cash inflows from financing activities. The Company elected to apply this provision using the retrospective transition method and reclassified $1.5 million of excess tax benefits from financing activities to operating activities on the statement of cash flows for the fiscal six months ended April 30, 2017 . Additionally, the standard requires cash paid by an employer when directly withholding shares for tax withholding purposes to be classified in the statement of cash flows as a financing activity. Payments for shares withheld for tax withholding purposes of $4.6 million and $2.4 million are classified on the consolidated statements of cash flows for the six months ended April 29, 2018 and April 30, 2017 , respectively. Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition , and most industry-specific guidance. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. During 2016, the FASB also issued ASU 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net); ASU 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing ; ASU 2016-11, Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting ; and ASU 2016-12, Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients; and ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers (collectively, the “new revenue standard”) , all of which were issued to improve and clarify the guidance in ASU 2014-09. These ASUs are effective for our fiscal year ending November 3, 2019, including interim periods within that fiscal year, using either a full or modified retrospective approach. To adopt the new revenue standard, we anticipate applying the modified retrospective approach, pursuant to which we will record an adjustment to the opening balance of accumulated deficit as of October 29, 2018 (the first day of our fiscal year ending November 3, 2019) for the impact of applying the new revenue standard to all contracts existing as of the date of application. For each revenue contract type, we are conducting a contract review process to evaluate the impact, if any, that the new revenue standard may have. At this time, our assessment is not yet complete and therefore we are unable to quantify the potential impacts to our consolidated financial statements; however, we do anticipate the adoption will have a material impact on our financial statement disclosures. In February 2016, the FASB issued ASU 2016-02, Leases , which will require lessees to record most leases on the balance sheet and modifies the classification criteria and accounting for sales-type leases and direct financing leases for lessors. ASU 2016-02 is effective for our fiscal year ending November 1, 2020, including interim periods within that fiscal year. The guidance requires entities to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. While we are evaluating the impact that the adoption of this guidance will have on our consolidated financial statements, we currently believe that most of our operating leases will be reflected on the consolidated balance sheet upon adoption. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU requires an entity to measure all expected credit losses for financial assets, including trade receivables, held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Entities will now incorporate forward-looking information based on expected losses to estimate credit losses. ASU 2016-13 is effective for our fiscal year ending October 31, 2021, including interim periods within that fiscal year. We are evaluating the impact that the adoption of this ASU will have on our consolidated financial position, result of operations and cash flows. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , which provides guidance on eight cash flow classification issues with the objective of reducing differences in practice. We will be required to adopt the amendments in this ASU in annual and interim periods for our fiscal year ending November 3, 2019, with early adoption permitted. Adoption is required to be on a retrospective basis, unless impracticable for any of the amendments, in which case a prospective application is permitted. We are evaluating the impact that ASU 2016-15 will have on our consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other than Inventory , which eliminates the exception that prohibits the recognition of current and deferred income tax effects for intra-entity transfers of assets other than inventory until the asset has been sold to an outside party. We will be required to adopt the amendments in this ASU in the annual and interim periods for our fiscal year ending November 3, 2019, with early adoption permitted. The application of the amendments will require the use of a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. We are evaluating the standard and the impact it will have on our consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force) , which clarifies how entities should present restricted cash and restricted cash equivalents in the statement of cash flows. Entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. An entity with a material balance of restricted cash and restricted cash equivalents must disclose information about the nature of the restrictions. We will be required to adopt this guidance on a retrospective basis in the annual and interim periods for our fiscal year ending November 3, 2019, with early adoption permitted. We are evaluating the impact ASU 2016-18 will have on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business . This ASU adds guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Under the new guidance, if a single asset or group of similar identifiable assets comprise substantially all of the fair value of the gross assets acquired (or disposed of) in a transaction, the assets and related activities are not a business. Also, a minimum of an input process and a substantive process must be present and significantly contribute to the ability to create outputs in order to be considered a business. We will be required to adopt this guidance on a prospective basis in the annual and interim periods for our fiscal year ending November 3, 2019, with early adoption permitted. We are evaluating the impact ASU 2017-01 will have on our consolidated financial statements. In March 2017, the FASB issued ASU 2017-07, Compensation — Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , which amends the requirements related to the income statement presentation of the components of net periodic benefit cost for employer sponsored defined benefit pension and other postretirement benefit plans. Under the new guidance, an entity must disaggregate and present the service cost component of net periodic benefit cost in the same income statement line items as other employee compensation costs arising from services rendered during the period, and only the service cost component will be eligible for capitalization. Other components of net periodic benefit cost will be presented separately from the line items that include the service cost. We will be required to adopt this guidance in the annual and interim periods for our fiscal year ending November 3, 2019, with early adoption permitted. Entities must use a retrospective transition method to adopt the requirement for separate presentation of the income statement service cost and other components, and a prospective transition method to adopt the requirement to limit the capitalization of benefit cost to the service component. We are evaluating the impact of adopting this guidance. In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting , which provides clarity on the accounting for modifications of stock-based awards. We will be required to adopt this guidance on a prospective basis in the annual and interim periods for our fiscal year ending November 3, 2019 for share-based payment awards modified on or after the adoption date. We are evaluating the impact ASU 2017-09 will have on our consolidated financial statements. |
RESTRUCTURING
RESTRUCTURING | 6 Months Ended |
Apr. 29, 2018 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING | RESTRUCTURING As part of the plans developed in the fourth quarter of fiscal 2015 primarily to improve engineering, selling, general and administrative (“ESG&A”) and manufacturing cost efficiency and to optimize our combined manufacturing footprint given the Company’s acquisitions, dispositions and restructuring efforts, we incurred restructuring charges of $0.5 million , including $0.3 million , $0.1 million and $0.1 million in the Engineered Building Systems segment, Metal Components segment and Insulated Metal Panels segment, respectively, during the three months ended April 29, 2018 . During the three months ended April 30, 2017 , we incurred restructuring charges of $ 0.3 million , including $ 0.2 million and $ 0.1 million , in the Engineered Building Systems segment and Metal Components segment, respectively. For the six months ended April 29, 2018 , we incurred restructuring charges of $1.6 million , including $1.5 million and $1.4 million in the Engineered Building Systems segment and Insulated Metals Panel segment, respectively, partially offset by a gain of $1.3 million on a sale of a facility in our Metal Components segment. For the six months ended April 30, 2017 , we incurred restructuring charges, primarily consisting of severance related costs of $2.6 million , including approximately $2.1 million and $0.5 million in the Engineered Building Systems segment and Metal Components segment, respectively. The following table summarizes the costs and charges associated with the restructuring plans during the three and six months ended April 29, 2018 , which are recorded in restructuring and impairment charges in the Company’s consolidated statements of operations (in thousands): Fiscal Three Months Ended Fiscal Six Months Ended Cost Incurred To Date (since inception) April 29, April 29, General severance $ 417 $ 1,733 $ 10,695 Plant closing severance — — 3,279 Asset impairments 71 1,171 7,140 Gain on sale of facility — (1,424 ) (1,424 ) Other restructuring costs — 102 1,415 Total restructuring costs $ 488 $ 1,582 $ 21,105 The following table summarizes our severance liability and cash payments made pursuant to the restructuring plans from inception through April 29, 2018 (in thousands): General Severance Plant Closing Severance Total Balance at November 2, 2014 $ — $ — $ — Costs incurred 3,887 1,575 5,462 Cash payments (2,941 ) (1,575 ) (4,516 ) Accrued severance (1) 739 — 739 Balance at November 1, 2015 $ 1,685 $ — $ 1,685 Costs incurred (1) 2,725 165 2,890 Cash payments (3,928 ) (165 ) (4,093 ) Balance at October 30, 2016 $ 482 $ — $ 482 Costs incurred 2,350 1,539 3,889 Cash payments (2,549 ) (1,539 ) (4,088 ) Balance at October 29, 2017 $ 283 $ — $ 283 Costs incurred 1,733 — 1,733 Cash payments (1,782 ) — (1,782 ) Balance at April 29, 2018 $ 234 $ — $ 234 (1) During the second and fourth quarters of fiscal 2015, we entered into transition and separation agreements with certain executive officers. Each terminated executive officer was entitled to severance benefit payments issuable in two installments. The termination benefits were measured initially at the separation dates based on the fair value of the liability as of the termination date and were recognized ratably over the future service period. Costs incurred during fiscal 2016 exclude $0.7 million of amortization expense associated with these termination benefits. We expect to fully execute our plans in phases over the next 12 months and estimate that we will incur future additional restructuring charges associated with these plans. We are unable at this time to make a good faith determination of cost estimates, or ranges of cost estimates, associated with future phases of these plans. |
INVENTORIES
INVENTORIES | 6 Months Ended |
Apr. 29, 2018 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES The components of inventory are as follows (in thousands): April 29, October 29, Raw materials $ 164,805 $ 150,919 Work in process and finished goods 56,564 47,377 $ 221,369 $ 198,296 |
ASSETS HELD FOR SALE
ASSETS HELD FOR SALE | 6 Months Ended |
Apr. 29, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
ASSETS HELD FOR SALE | ASSETS HELD FOR SALE We record assets held for sale at the lower of the carrying value or fair value less costs to sell. The following criteria are used to determine if property is held for sale: (i) management has the authority and commits to a plan to sell the property; (ii) the property is available for immediate sale in its present condition; (iii) there is an active program to locate a buyer and the plan to sell the property has been initiated; (iv) the sale of the property is probable within one year; (v) the property is being actively marketed at a reasonable sale price relative to its current fair value; and (vi) it is unlikely that the plan to sell will be withdrawn or that significant changes to the plan will be made. In determining the fair value of the assets less cost to sell, we consider factors including current sales prices for comparable assets in the area, recent market analysis studies, appraisals and any recent legitimate offers. If the estimated fair value less cost to sell of an asset is less than its current carrying value, the asset is written down to its estimated fair value less cost to sell. The total carrying value of assets held for sale was $10.1 million and $5.6 million as of April 29, 2018 and October 29, 2017 , respectively. All of these assets continued to be actively marketed for sale or are under contract as of April 29, 2018 . During the three and six months ended April 29, 2018 , we completed the sale of an idle facility in the Metal Components segment which had previously been classified in assets held for sale. In connection with the sale of the facility, we received net cash proceeds of $0.4 million , and recognized a net loss of approximately $70 thousand , which is included in restructuring and impairment charges in the consolidated statements of operations. Due to uncertainties in the estimation process, it is reasonably possible that actual results could differ from the estimates used in our historical analysis. Our assumptions about property sales prices require significant judgment because the current market is highly sensitive to changes in economic conditions. We determined the estimated fair values of assets held for sale based on current market conditions and assumptions made by management, which may differ from actual results and may result in impairments if market conditions deteriorate. Certain assets held for sale are valued at fair value and are measured at fair value on a nonrecurring basis. Assets held for sale are reported at fair value, if, on an individual basis, the fair value of the asset is less than carrying value. The fair value of assets held for sale is estimated using Level 3 inputs, such as broker quotes for like-kind assets or other market indications of a potential selling value that approximates fair value. Assets held for sale, reported at fair value, less costs to sell, totaled $5.0 million as of April 29, 2018 . |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 6 Months Ended |
Apr. 29, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION Our 2003 Long-Term Stock Incentive Plan (“Incentive Plan”) is an equity-based compensation plan that allows us to grant a variety of types of awards, including stock options, restricted stock, restricted stock units, stock appreciation rights, performance share units (“PSUs”), phantom stock awards, long-term incentive awards with performance conditions (“Performance Share Awards”) and cash awards. Awards are generally granted once per year, with the amounts and types of awards determined by the Compensation Committee of our Board of Directors (the “Committee”). As a general rule, option awards terminate on the earlier of (i) 10 years from the date of grant, (ii) 30 days after termination of employment or service for a reason other than death, disability or retirement, (iii) one year after death or (iv) one year for incentive stock options or five years for other awards after disability or retirement. Awards are non-transferable except by disposition on death or to certain family members, trusts and other family entities as the Committee may approve. Awards may be paid in cash, shares of our Common Stock or a combination, in lump sum or installments and currently or by deferred payment, all as determined by the Committee. As of April 29, 2018 , and for all periods presented, our share-based awards under this plan have consisted of restricted stock grants, PSUs and stock option grants, none of which can be settled through cash payments, and Performance Share Awards. Both our stock options and restricted stock awards are subject only to vesting requirements based on continued employment at the end of a specified time period and typically vest in annual increments over three to four years or earlier upon death, disability or a change of control. Restricted stock awards issued after December 15, 2013 do not vest upon attainment of a specified retirement age, as provided by the agreements governing such awards. The vesting of our Performance Share Awards is described below. Our time-based restricted stock awards are typically subject to graded vesting over a service period, which is typically three or four years. Our performance-based and market-based restricted stock awards are typically subject to cliff vesting at the end of the service period, which is typically three years. We recognize compensation cost for these awards on a straight-line basis over the requisite service period for each annual award grant. In the case of performance-based awards, expense is recognized based upon management’s assessment of the probability that such performance conditions will be achieved. Certain of our awards provide for accelerated vesting upon qualified retirement, after a change of control or upon termination without cause or for good reason. We recognize compensation cost for such awards over the period from grant date to the date the employee first becomes eligible for retirement. We adopted the provisions of ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, in our first quarter in fiscal 2018 . For additional information see Note 2 - Accounting Pronouncements. Stock option awards During the six month period ended April 30, 2017 , we granted 10,424 stock options. The grant date fair value of options granted during the six month period ended April 30, 2017 was $6.59 per share. We did not grant stock options during the six month period ended April 29, 2018 . There were 0.1 million options with an intrinsic value of $0.6 million exercised during the six month period ended April 29, 2018 . Cash received from options exercised was $1.0 million during the six month period ended April 29, 2018 . Restricted stock and performance awards Long-term incentive awards granted to our senior executives generally have a three -year performance period. Long-term incentive awards include restricted stock units and PSUs representing 40% and 60% of the total value, respectively. The restricted stock units vest upon continued employment. Vesting of the PSUs is contingent upon continued employment and the achievement of targets with respect to the following metrics, as defined by management: (1) cumulative free cash flow (weighted 40% ); (2) cumulative earnings per share (weighted 40% ); and (3) total shareholder return (weighted 20% ), in each case during the performance period. At the end of the performance period, the number of actual shares to be awarded varies between 0% and 200% of target amounts. The PSUs vest pro rata if an executive’s employment terminates prior to the end of the performance period due to death, disability, or termination by the Company without cause or by the executive for good reason. If an executive’s employment terminates for any other reason prior to the end of the performance period, all outstanding unvested PSUs, whether earned or unearned, will be forfeited and cancelled. If a change of control occurs prior to the end of the performance period, the PSU payout will be calculated and paid assuming that the maximum benefit had been achieved. If an executive’s employment terminates due to death or disability while any of the restricted stock is unvested, then all of the unvested restricted stock will become vested. If an executive’s employment is terminated by the Company without cause or after reaching normal retirement age, the unvested restricted stock will be forfeited. If a change of control occurs prior to the end of the performance period, the restricted stock will fully vest. The fair value of the awards is based on the Company’s stock price as of the date of grant. During the six month periods ended April 29, 2018 and April 30, 2017 , we granted PSUs with a total fair value of approximately $4.5 million and $4.6 million , respectively, to the Company’s senior executives. Long-term incentive awards granted to our key employees generally have a three -year performance period. Long-term incentive awards are granted 50% in restricted stock units and 50% in PSUs. Vesting of PSUs is contingent upon continued employment and the achievement of free cash flow and earnings per share targets, as defined by management, over a three -year performance period. At the end of the performance period, the number of actual shares to be awarded varies between 0% and 150% of target amounts. The PSUs vest earlier upon death, disability or a change of control. A portion of the awards also vests upon termination without cause or after reaching normal retirement age prior to the vesting date, as defined by the agreements governing such awards. The fair value of PSUs is based on the Company’s stock price as of the date of grant. During the six month periods ended April 29, 2018 and April 30, 2017 , we granted awards to key employees with equity fair values of $2.1 million and $2.0 million , respectively, and during the six month period ended April 30, 2017 we granted awards to key employees with cash values of $2.0 million . We did not grant awards with cash value to key employees during the six month period ended April 29, 2018 . On December 15, 2017, the performance period ended for certain PSUs granted to senior executives and key employees in December 2014. The PSUs vested at 69.4% , and resulted in the issuance of 0.1 million shares, net of shares withheld for taxes. During the six month periods ended April 29, 2018 and April 30, 2017 , we granted time-based restricted stock units with a fair value of $6.8 million , representing 0.3 million shares, and $4.0 million , representing 0.3 million shares, respectively. During the six month periods ended April 29, 2018 and April 30, 2017 , we recorded share-based compensation expense for all awards of $7.9 million and $5.9 million , respectively. Included in the share-based compensation expense during the six month period ended April 29, 2018 were accelerated awards of $3.6 million due to the retirement of the Company’s former CEO. Deferred Compensation In accordance with the Company’s Deferred Compensation Plan, amounts deferred into the Company Stock Fund must remain invested in the Company Stock Fund until distribution. The deferred compensation obligation related to the Company’s stock may only be settled by the delivery of a fixed number of the Company’s common shares held on the participant’s behalf. As a result, we have a deferred compensation obligation of $1.2 million related to the Company Stock Fund that is recorded within equity in additional paid-in capital on the consolidated balance sheet as of April 29, 2018 . Subsequent changes in the fair value of the deferred compensation obligation classified within equity are not recognized. Additionally, the Company currently holds 109,689 shares in treasury shares, relating to deferred, vested PSU awards, until participants are eligible to receive benefits under the terms of the Deferred Compensation Plan. |
EARNINGS (LOSS) PER COMMON SHAR
EARNINGS (LOSS) PER COMMON SHARE | 6 Months Ended |
Apr. 29, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER COMMON SHARE | EARNINGS (LOSS) PER COMMON SHARE Basic earnings (loss) per common share is computed by dividing net income allocated to common shares by the weighted average number of common shares outstanding. Diluted earnings per common share, if applicable, considers the dilutive effect of common stock equivalents. The reconciliation of the numerator and denominator used for the computation of basic and diluted earnings (loss) per common share is as follows (in thousands, except per share data): Fiscal Three Months Ended Fiscal Six Months Ended April 29, April 30, April 29, April 30, Numerator for Basic and Diluted Earnings (Loss) Per Common Share: Net income (loss) applicable to common shares $ (5,684 ) $ 16,859 $ (435 ) $ 18,882 Denominator for Basic and Diluted Earnings (Loss) Per Common Share: Weighted average basic number of common shares outstanding 66,210 70,988 66,311 70,933 Common stock equivalents: Employee stock options — 134 — 138 PSUs and Performance Share Awards — — — 36 Weighted average diluted number of common shares outstanding 66,210 71,122 66,311 71,107 Basic earnings (loss) per common share $ (0.09 ) $ 0.24 $ (0.01 ) $ 0.27 Diluted earnings (loss) per common share $ (0.09 ) $ 0.24 $ (0.01 ) $ 0.27 Incentive Plan securities excluded from dilution (1) 95 2 122 2 (1) Represents securities not included in the computation of diluted earnings (loss) per common share because their effect would have been anti-dilutive. We calculate earnings (loss) per share using the “two-class” method, whereby unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents are “participating securities” and, therefore, these participating securities are treated as a separate class in computing earnings (loss) per share. The calculation of earnings per share presented here excludes the income attributable to unvested restricted stock units related to our Incentive Plan from the numerator and excludes the dilutive impact of those shares from the denominator. Awards subject to the achievement of performance conditions or market conditions for which such conditions had been met at the end of any of the fiscal periods presented are included in the computation of diluted earnings per common share if their effect was dilutive. |
WARRANTY
WARRANTY | 6 Months Ended |
Apr. 29, 2018 | |
Product Warranties Disclosures [Abstract] | |
WARRANTY | WARRANTY We sell weathertightness warranties to our customers for protection from leaks in our roofing systems related to weather. These warranties generally range from 2 years to 20 years. We sell two types of warranties, standard and Single Source™, and three grades of coverage for each. The type and grade of coverage determines the price to the customer. For standard warranties, our responsibility for leaks in a roofing system begins after 24 consecutive leak-free months. For Single Source™ warranties, the roofing system must pass our inspection before warranty coverage will be issued. Inspections are typically performed at three stages of the roofing project: (i) at the project start-up; (ii) at the project mid-point; and (iii) at the project completion. These inspections are included in the cost of the warranty. If the project requires or the customer requests additional inspections, those inspections are billed to the customer. Upon the sale of a warranty, we record the resulting revenue as deferred revenue, which is included in other accrued expenses on our consolidated balance sheets. The following table represents the rollforward of our accrued warranty obligation and deferred warranty revenue activity for the fiscal six months ended April 29, 2018 and April 30, 2017 (in thousands): Fiscal Six Months Ended April 29, April 30, Beginning balance $ 27,016 $ 27,200 Warranties sold 1,605 1,234 Revenue recognized (1,314 ) (1,512 ) Ending balance $ 27,307 $ 26,922 |
DEFINED BENEFIT PLANS
DEFINED BENEFIT PLANS | 6 Months Ended |
Apr. 29, 2018 | |
Retirement Benefits [Abstract] | |
DEFINED BENEFIT PLANS | DEFINED BENEFIT PLANS RCC Pension Plan — With the acquisition of Robertson-Ceco II Corporation (“RCC”) on April 7, 2006, we assumed a defined benefit plan (the “RCC Pension Plan”). Benefits under the RCC Pension Plan are primarily based on years of service and the employee’s compensation. The RCC Pension Plan is frozen and, therefore, employees do not accrue additional service benefits. Plan assets of the RCC Pension Plan are invested in broadly diversified portfolios of government obligations, mutual funds, stocks, bonds, fixed income securities and master limited partnerships. CENTRIA Benefit Plans — As a result of the CENTRIA Acquisition on January 16, 2015, we assumed noncontributory defined benefit plans covering certain hourly employees (the “CENTRIA Benefit Plans”) and are closed to new participants. Benefits under the CENTRIA Benefit Plans are calculated based on fixed amounts for each year of service rendered, although benefits accruals for one of the plans previously ceased. Plan assets of the CENTRIA Benefit Plans are invested in broadly diversified portfolios of domestic and international equity mutual funds, bonds, mortgages and other funds. CENTRIA also sponsors postretirement medical and life insurance plans that cover certain of its employees and their spouses (the “OPEB Plans”). In addition to the CENTRIA Benefit Plans, CENTRIA contributes to a multi-employer plan, Steelworkers Pension Trust. The minimum required annual contribution to this plan is $0.3 million . The current contract expires on June 1, 2019. If we were to withdraw our participation from this multi-employer plan, CENTRIA may be required to pay a withdrawal liability representing an amount based on the underfunded status of the plan. The plan is not significant to the Company’s consolidated financial statements. We refer to the RCC Pension Plan and the CENTRIA Benefit Plans collectively as the “Defined Benefit Plans” in this Note. The following tables sets forth the components of the net periodic benefit cost, before tax, and funding contributions, for the periods indicated (in thousands): Fiscal Three Months Ended Fiscal Three Months Ended Defined OPEB Total Defined OPEB Total Service cost $ 22 $ 7 $ 29 $ 24 $ 9 $ 33 Interest cost 494 62 556 513 64 577 Expected return on assets (729 ) — (729 ) (700 ) — (700 ) Amortization of prior service credit 15 — 15 (2 ) — (2 ) Amortization of net actuarial loss 248 — 248 344 — 344 Net periodic benefit cost $ 50 $ 69 $ 119 $ 179 $ 73 $ 252 Funding contributions $ 639 $ — $ 639 $ 591 $ — $ 591 Fiscal Six Months Ended Fiscal Six Months Ended Defined OPEB Total Defined OPEB Total Service cost $ 44 $ 14 $ 58 $ 49 $ 18 $ 67 Interest cost 988 124 1,112 1,027 129 1,156 Expected return on assets (1,458 ) — (1,458 ) (1,399 ) — (1,399 ) Amortization of prior service credit 28 — 28 (5 ) — (5 ) Amortization of net actuarial loss 496 — 496 687 — 687 Net periodic benefit cost $ 98 $ 138 $ 236 $ 359 $ 147 $ 506 Funding contributions $ 910 $ — $ 910 $ 825 $ — $ 825 We expect to contribute an additional $1.6 million to the Defined Benefit Plans for the remainder of fiscal 2018 . Our policy is to fund the CENTRIA Benefit Plans as required by minimum funding standards of the Internal Revenue Code. The contributions to the OPEB Plans by retirees vary from none to 25% of the total premiums paid. |
LONG-TERM DEBT AND NOTE PAYABLE
LONG-TERM DEBT AND NOTE PAYABLE | 6 Months Ended |
Apr. 29, 2018 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT AND NOTE PAYABLE | LONG-TERM DEBT AND NOTE PAYABLE Debt is comprised of the following (in thousands): April 29, October 29, Term loan credit facility, due February 2025 and June 2022, respectively $ 415,000 $ 144,147 8.25% senior notes, due January 2023 — 250,000 Asset-based lending credit facility, due February 2023 and June 2019, respectively — — Less: unamortized deferred financing costs (1) 6,043 6,857 Total long-term debt, net of deferred financing costs $ 408,957 $ 387,290 (1) Includes the unamortized deferred financing costs associated with the term loan credit facilities and Notes. The unamortized deferred financing costs associated with the asset-based credit lending facilities of $1.3 million and $0.7 million as of April 29, 2018 and October 29, 2017 , respectively, are classified in other assets on the consolidated balance sheets. Debt Redemption and Refinancing On February 8, 2018, the Company entered into a Term Loan Credit Agreement and ABL Credit Agreement (each defined below), the proceeds of which, together, were used to redeem the 8.25% senior notes and to refinance the Company’s existing term loan credit facility and the Company’s existing asset-based revolving credit facility. Term Loan Credit Agreement On February 8, 2018, the Company entered into a Term Loan Credit Agreement (the “Term Loan Credit Agreement”) which provides for a term loan credit facility in an original aggregate principal amount of $415.0 million (“Term Loan Credit Facility”). Proceeds from borrowings under the Term Loan Credit Facility were used, together with cash on hand, (i) to refinance the existing term loan credit agreement, (ii) to redeem and repay the Notes and (iii) to pay any fees, premiums and expenses incurred in connection with the refinancing. The term loans under the Term Loan Credit Agreement will mature on February 7, 2025 and, prior to such date, will amortize in nominal quarterly installments equal to one percent of the aggregate initial principal amount thereof per annum. The term loans under the Term Loan Credit Agreement may be prepaid at the Company’s option at any time, subject to minimum principal amount requirements. Prepayments in connection with a repricing transaction (as defined in the Term Loan Credit Agreement) during the first six months after the closing of the Term Loan Credit Facility will be subject to a prepayment premium equal to 1% of the principal amount of the term loans being prepaid. Prepayments may otherwise be made without premium or penalty (other than customary breakage costs). The Company will also have the ability to repurchase a portion of the term loans under the Term Loan Credit Agreement subject to certain terms and conditions set forth in the Term Loan Credit Agreement. Subject to certain exceptions, the term loans under the Term Loan Credit Agreement will be subject to mandatory prepayment in an amount equal to: • the net cash proceeds of (1) certain asset sales (subject to reduction to 50% or 0% , if specified leverage ratio targets are met), (2) certain debt offerings, and (3) certain insurance recovery and condemnation events; and • 50% of annual excess cash flow (as defined in the Term Loan Credit Agreement), subject to reduction to 0% if specified leverage ratio targets are met. The obligations under the Term Loan Credit Agreement are guaranteed by each direct and indirect U.S. restricted subsidiary of the Company, other than certain excluded subsidiaries, and are secured by: • a perfected security interest in substantially all tangible and intangible assets of the Company and each guarantor (other than ABL Priority Collateral (as defined below)), including the capital stock of each direct material domestic subsidiary owned by the Company and each guarantor, and 65% of the capital stock of any non-U.S. subsidiary held directly by the Company or any guarantor, subject to customary exceptions (the “Term Loan Priority Collateral”), which security interest will be senior to the security interest in the foregoing assets securing the ABL Credit Facility (as defined below); and • a perfected security interest in the ABL Priority Collateral, which security interest will be junior to the security interest in the ABL Priority Collateral securing the ABL Credit Facility. At the Company’s election, the interest rates applicable to the term loans under the Term Loan Credit Agreement will be based on a fluctuating rate of interest measured by reference to either (i) an adjusted LIBOR plus a borrowing margin of 2.00% per annum or (ii) an alternative base rate not less than 1.00% plus a borrowing margin of 1.00% per annum. At April 29, 2018 , the interest rate on the Term Loans was 3.88% . ABL Credit Agreement On February 8, 2018, the subsidiaries of the Company, NCI Group, Inc. and Robertson-Ceco II Corporation, and the Company as a guarantor, entered into an ABL Credit Agreement (the “ABL Credit Agreement”). The ABL Credit Agreement provides for an asset-based revolving credit facility (the “ABL Credit Facility”) which allows aggregate maximum borrowings by the ABL borrowers of up to $150 million , letters of credit of up to $30 million and up to $20 million for swingline borrowings. Borrowing availability is determined by a monthly borrowing base collateral calculation that is based on specified percentages of the value of accounts receivable, eligible credit card receivables and eligible inventory, less certain reserves and subject to certain other adjustments. Availability is reduced by issuance of letters of credit as well as any borrowings. All borrowings under the ABL Credit Facility mature on February 8, 2023. The obligations under the ABL Credit Agreement are guaranteed by each direct and indirect U.S. restricted subsidiary of the Company, other than certain excluded subsidiaries, and are secured by: • a perfected security interest in all present and after-acquired inventory, accounts receivable, deposit accounts, securities accounts, and any cash or other assets in such accounts (and, to the extent evidencing or otherwise related to such items, all general intangibles, intercompany debt, insurance proceeds, letter of credit rights, commercial tort claims, chattel paper, instruments, supporting obligations, documents, investment property and payment intangibles) and the proceeds of any of the foregoing and all books and records relating to, or arising from, any of the foregoing, except to the extent such proceeds constitute Term Loan Priority Collateral, and subject to customary exceptions (the “ABL Priority Collateral”), which security interest is senior to the security interest in the foregoing assets securing the Term Loan Credit Facility; and • a perfected security interest in the Term Loan Priority Collateral, which security interest will be junior to the security interest in the Term Loan Priority Collateral securing the Term Loan Credit Facility. At April 29, 2018 and October 29, 2017 , the Company’s excess availability under its asset-based lending credit facilities was $141.1 million and $140.0 million , respectively. At April 29, 2018 and October 29, 2017 , the Company had no revolving loans outstanding under its asset-based lending credit facilities. In addition, at April 29, 2018 and October 29, 2017 , standby letters of credit related to certain insurance policies totaling approximately $8.9 million and $10.0 million , respectively, were outstanding but undrawn under the Company’s asset-based lending credit facilities. The ABL Credit Agreement includes a minimum fixed charge coverage ratio of 1.00 :1.00, which will apply if we fail to maintain a specified minimum borrowing capacity. The minimum level of borrowing capacity as of April 29, 2018 was $14.1 million . Although the ABL Credit Agreement does not require any financial covenant compliance, at April 29, 2018 NCI’s fixed charge coverage ratio, which is calculated on a trailing twelve month basis, was 3.56 :1.00. Loans under the ABL Credit Facility bear interest, at NCI’s option, as follows: (1) Base Rate loans at the Base Rate plus a margin. The margin ranges from 0.25% to 0.75% depending on the quarterly average excess availability under such facility; and (2) LIBOR loans at LIBOR plus a margin. The margin ranges from 1.25% to 1.75% depending on the quarterly average excess availability under such facility. A commitment fee is paid on the ABL Credit Facility at an annual rate of 0.25% or 0.35% , depending on the average daily used percentage, based on the amount by which the maximum credit exceeds the average daily principal balance of outstanding loans and letter of credit obligations. Additional customary fees in connection with the ABL Credit Facility also apply. Redemption of 8.25% Senior Notes On January 16, 2015, the Company issued $250.0 million in aggregate principal amount of 8.25% senior notes due 2023 (the “Notes”). On February 8, 2018, the Company redeemed the outstanding $250.0 million aggregate principal amount of the Notes for approximately $265.5 million using the proceeds from borrowings under the new Term Loan Facility. During the three months ended April 29, 2018, the Company incurred a pretax loss, primarily on the extinguishment of the Notes, of $21.9 million , of which approximately $15.5 million represents the call premium paid on the redemption of the Notes. Debt Covenants The Company’s outstanding debt agreements contain a number of covenants that, among other things, limit or restrict the ability of the Company and its subsidiaries to incur additional indebtedness, make dividends and other restricted payments, create liens securing indebtedness, engage in mergers and acquisitions, enter into restrictive agreements, amend certain documents in respect of other indebtedness, change the nature of the business and engage in certain transactions with affiliates. As of April 29, 2018 , the Company was in compliance with all covenants that were in effect on such date. Insurance Note Payable As of April 29, 2018 and October 29, 2017 , the Company had an outstanding note payable in the amount of $1.7 million and $0.4 million , respectively, related to financed insurance premiums. Insurance premium financings are generally secured by the unearned premiums under such policies. |
CD&R FUNDS
CD&R FUNDS | 6 Months Ended |
Apr. 29, 2018 | |
Equity [Abstract] | |
CD&R FUNDS | CD&R FUNDS On August 14, 2009, the Company entered into an Investment Agreement (as amended, the “Investment Agreement”), by and between the Company and Clayton, Dubilier & Rice Fund VIII, L.P. (“CD&R Fund VIII”). In connection with the Investment Agreement and the Stockholders Agreement dated October 20, 2009 (the “Stockholders Agreement”), the CD&R Fund VIII and the Clayton, Dubilier & Rice Friends & Family Fund VIII, L.P. (collectively, the “CD&R Funds”) purchased convertible preferred stock, which was converted into shares of our common stock on May 14, 2013. Among other provisions, the Stockholders Agreement entitles the CD&R Funds to certain nomination or designation rights with respect to our board of directors; subscription rights with respect to future issuances of common stock by us; corporate governance rights; and consent rights with respect to certain types of transactions we may enter into in the future. On December 11, 2017, the CD&R Funds completed a registered underwritten offering of 7,150,000 shares of the Company’s Common Stock at a price to the public of $19.36 per share (the “2017 Secondary Offering”). Pursuant to the underwriting agreement, at the CD&R Funds request, the Company purchased 1.15 million of the 7.15 million shares of the Common Stock from the underwriters in the 2017 Secondary Offering at a price per share equal to the price at which the underwriters purchased the shares from the CD&R Funds. The total amount the Company spent on these repurchases was $22.3 million . As of April 29, 2018 , and October 29, 2017 , the CD&R Funds owned approximately 34.5% and 43.8% , respectively, of the outstanding shares of our common stock. |
STOCK REPURCHASE PROGRAM
STOCK REPURCHASE PROGRAM | 6 Months Ended |
Apr. 29, 2018 | |
Equity [Abstract] | |
STOCK REPURCHASE PROGRAM | STOCK REPURCHASE PROGRAM On September 8, 2016, the Company announced that its board of directors authorized a stock repurchase program for the repurchase of up to an aggregate of $50.0 million of the Company’s outstanding Common Stock. On October 10, 2017 and March 7, 2018, the Company announced that its board of directors authorized new stock repurchase programs for the repurchase of up to an aggregate of $50.0 million and $50.0 million , respectively, of the Company’s outstanding Common Stock. Under these repurchase programs, the Company is authorized to repurchase shares, if at all, at times and in amounts that it deems appropriate in accordance with all applicable securities laws and regulations. Shares repurchased are usually retired. There is no time limit on the duration of the programs. During the six months ended April 29, 2018 , the Company repurchased approximately 2.7 million shares for $46.7 million under the stock repurchase programs announced on September 8, 2016 and October 10, 2017, which included 1.15 million shares for $22.3 million purchased pursuant to the CD&R Funds 2017 Secondary Offering (see Note 11 — CD&R Funds). As of April 29, 2018 , approximately $55.6 million remained available for stock repurchases under the programs announced on October 10, 2017 and March 7, 2018. The timing and method of any repurchases, which will depend on a variety of factors, including market conditions, are subject to results of operations, financial conditions, cash requirements and other factors, and may be suspended or discontinued at any time. The Company canceled the 2.7 million shares repurchased under the stock repurchase programs during the six months ended April 29, 2018 , resulting in a $46.7 million decrease in both additional paid in capital and treasury stock. In addition to the common stock repurchased during the six months ended April 29, 2018 , the Company also withheld 0.2 million shares of stock to satisfy minimum tax withholding obligations arising in connection with the vesting of stock awards, which are included in treasury stock purchases in the consolidated statements of stockholders’ equity. The Company also cancelled these shares during the six months ended April 29, 2018 , resulting in a $4.6 million decrease in both additional paid in capital and treasury stock. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | 6 Months Ended |
Apr. 29, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS Fair Value of Financial Instruments The carrying amounts of cash and cash equivalents, restricted cash, trade accounts receivable, accounts payable and notes payable approximate fair value as of April 29, 2018 and October 29, 2017 , respectively, because of their relatively short maturities. The carrying amount of revolving loans outstanding under the asset-based lending facilities approximates fair value as the interest rates are variable and reflective of market rates. The fair values of the remaining financial instruments not currently recognized at fair value on our consolidated balance sheets at the respective fiscal period ends were (in thousands): April 29, 2018 October 29, 2017 Carrying Amount Fair Value Carrying Amount Fair Value Term Loan Credit Facility, due February 2025 $ 415,000 $ 415,519 $ — $ — Credit Agreement, due June 2022 — — 144,147 144,147 8.25% senior notes, due January 2023 — — 250,000 267,500 The fair values of the Term Loan Credit Facility, Credit Agreement and the Notes were based on recent trading activities of comparable market instruments, which are level 2 inputs. Fair Value Measurements ASC Subtopic 820-10, Fair Value Measurements and Disclosures , requires us to use valuation techniques to measure fair value that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized as follows: Level 1 : Observable inputs such as quoted prices for identical assets or liabilities in active markets. Level 2 : Other inputs that are observable directly or indirectly, such as quoted prices for similar assets or liabilities or market-corroborated inputs. Level 3 : Unobservable inputs for which there is little or no market data and which require us to develop our own assumptions about how market participants would price the assets or liabilities. The following is a description of the valuation methodologies used for assets and liabilities measured at fair value. There have been no changes in the methodologies used as of April 29, 2018 and October 29, 2017 . Money market: Money market funds have original maturities of three months or less. The original cost of these assets approximates fair value due to their short-term maturity. Mutual funds: Mutual funds are valued at the closing price reported in the active market in which the mutual fund is traded. Assets held for sale: Assets held for sale are valued based on current market conditions, prices of similar assets in similar condition and expected proceeds from the sale of the assets, representative of Level 3 inputs. Deferred compensation plan liability: Deferred compensation plan liability is comprised of phantom investments in the deferred compensation plan and is valued at the closing price reported in the active markets in which the money market and mutual funds are traded. The following tables summarize information regarding our financial assets and liabilities that are measured at fair value on a recurring basis as of April 29, 2018 and October 29, 2017 , segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (in thousands): April 29, 2018 Level 1 Level 2 Level 3 Total Assets: Short-term investments in deferred compensation plan: (1) Money market $ 790 $ — $ — $ 790 Mutual funds – Growth 1,057 — — 1,057 Mutual funds – Blend 2,018 — — 2,018 Mutual funds – Foreign blend 946 — — 946 Mutual funds – Fixed income — 1,521 — 1,521 Total short-term investments in deferred compensation plan 4,811 1,521 — 6,332 Total assets $ 4,811 $ 1,521 $ — $ 6,332 Liabilities: Deferred compensation plan liability $ — $ 5,310 $ — $ 5,310 Total liabilities $ — $ 5,310 $ — $ 5,310 October 29, 2017 Level 1 Level 2 Level 3 Total Assets: Short-term investments in deferred compensation plan: (1) Money market $ 1,114 $ — $ — $ 1,114 Mutual funds – Growth 958 — — 958 Mutual funds – Blend 1,948 — — 1,948 Mutual funds – Foreign blend 915 — — 915 Mutual funds – Fixed income — 1,546 — 1,546 Total short-term investments in deferred compensation plan 4,935 1,546 — 6,481 Total assets $ 4,935 $ 1,546 $ — $ 6,481 Liabilities: Deferred compensation plan liability $ — $ 4,923 $ — $ 4,923 Total liabilities $ — $ 4,923 $ — $ 4,923 (1) Unrealized holding gain (loss) for the three months ended April 29, 2018 and April 30, 2017 was $(0.2) million and $0.2 million , respectively. Unrealized holding gain (loss) for the six months ended April 29, 2018 and April 30, 2017 was $0.1 million and $(0.3) million , respectively. These unrealized holding gains (losses) were substantially offset by changes in the deferred compensation plan liability. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Apr. 29, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The reconciliation of income tax computed at the statutory tax rate to the effective income tax rate is as follows: Fiscal Three Months Ended Fiscal Six Months Ended April 29, April 30, April 29, April 30, Statutory federal income tax rate 23.3 % 35.0 % 23.3 % 35.0 % State income taxes 3.4 % 3.8 % 3.7 % 3.8 % Domestic production activities deduction (1.5 )% (3.2 )% (1.1 )% (3.2 )% Non-deductible expenses 0.7 % 0.9 % 0.9 % 0.9 % Tax credits (0.6 )% (0.9 )% (0.8 )% (0.9 )% China valuation allowance — % (0.5 )% (0.9 )% (0.1 )% Revaluation of U.S. deferred income tax due to statutory rate reduction — % — % 74.7 % — % One-time repatriation tax on foreign earnings — % — % (51.6 )% — % Other 1.5 % (1.5 )% 20.7 % (1.3 )% Effective tax rate 26.8 % 33.6 % 68.9 % 34.2 % The increase in the effective tax rate was primarily the result of the net loss for the six months ended April 29, 2018 and the net impact of the Tax Cuts and Jobs Act (“U.S. Tax Reform”) which was enacted by the United States on December 22, 2017. U.S. Tax Reform incorporates significant changes to U.S. corporate income tax laws including, among other things, a reduction in the federal statutory corporate income tax rate from 35% to 21% , an exemption for dividends received from certain foreign subsidiaries, a one-time repatriation tax on deemed repatriated earnings from foreign subsidiaries, immediate expensing of certain depreciable tangible assets, limitations on the deduction for net interest expense and certain executive compensation and the repeal of the Domestic Production Activities Deduction. The majority of these changes will be effective for the Company’s fiscal year beginning October 29, 2018. However, the corporate income tax rate reduction is effective December 22, 2017. As such, the Company’s statutory federal corporate income tax rate for the fiscal year ending October 28, 2018 will be 23.3% . In addition, the one-time repatriation tax will be recognized by the Company for the tax year ending October 28, 2018. Under ASC Topic 740, Income Taxes ("ASC 740"), a company is generally required to recognize the effect of changes in tax laws in its financial statements in the period in which the legislation is enacted. U.S. income tax laws are deemed to be effective on the date the president signs tax legislation. The President signed the U.S. Tax Reform legislation on December 22, 2017. As such, the Company is required to recognize the related impacts to the financial statements in the quarter ended January 28, 2018. In acknowledgment of the substantial changes incorporated in the U.S. Tax Reform, in conjunction with the timing of the enactment being just weeks before the majority of the provisions became effective, the SEC staff issued Staff Accounting Bulletin ("SAB") 118 to provide certain guidance in determining the accounting for income tax effects of the legislation in the accounting period of enactment as well as provide a measurement period within which to finalize and reflect such final effects associated with U.S. Tax Reform. Further, SAB 118 summarizes a three-step approach to be applied each reporting period within the overall measurement period: (1) amounts should be reflected in the period including the date of enactment for those items which are deemed to be complete, (2) to the extent the effects of certain changes due to U.S. Tax Reform for which the accounting is not deemed complete but for which a reasonable estimate can be determined, such provisional amount(s) should be reflected in the period so determined and adjusted in subsequent periods as such effects are finalized and (3) to the extent a reasonable estimate cannot be determined for a specific effect of the tax law change associated with U.S. Tax Reform, no provisional amount should be recorded but rather, continue to apply ASC 740 based upon the tax law in effect prior to the enactment of U.S. Tax Reform. Such measurement period is deemed to end when all necessary information has been obtained, prepared and analyzed such that a final accounting determination can be concluded, but in no event should the period extend beyond one year. In consideration of this guidance, the Company obtained, prepared and analyzed various information associated with the enactment of U.S. Tax Reform. Based upon this review, the Company recognized a discrete estimated net income tax benefit with respect to U.S. Tax Reform for the first quarter of fiscal 2018 of $0.3 million . This net income tax benefit reflects a $1.0 million net estimated income tax benefit associated with the remeasurement of the Company’s net U.S. deferred tax liability, partiality offset with a $0.7 million estimated income tax expense associated with the impact of the deemed repatriated earnings from the Company’s foreign subsidiaries, including the one-time repatriation tax of $2.1 million . Due to the Company’s fiscal year-end of October 28, 2018 and the timing of the various technical provisions provided for under U.S. Tax Reform, the financial statement impacts recorded in the first quarter of fiscal 2018 relating to U.S. Tax Reform are not deemed to be complete but rather are deemed to be reasonable, provisional estimates based upon the current available information. As such, the Company will update and finalize the accounting for the tax effect of the enactment of U.S. Tax Reform in future quarters in accordance with the guidance as outlined in SAB 118, as deemed necessary. The Company did not make any material updates to the provisional estimates during the second quarter of fiscal 2018. |
OPERATING SEGMENTS
OPERATING SEGMENTS | 6 Months Ended |
Apr. 29, 2018 | |
Segment Reporting [Abstract] | |
OPERATING SEGMENTS | OPERATING SEGMENTS Operating segments are defined as components of an enterprise that engage in business activities and by which discrete financial information is available that is evaluated on a regular basis by the chief operating decision maker to make decisions about how to allocate resources to the segment and assess the performance of the segment. On February 22, 2018, the Company announced changes to NCI’s reportable business segments, effective January 28, 2018 for the first quarter of fiscal 2018, to align with changes in how the Company manages its business, reviews operating performance and allocates resources. We have revised our segment reporting to represent how we now manage our business, restating prior periods to conform to the current segment presentation. We have four operating segments: Engineered Building Systems; Metal Components; Insulated Metal Panels; and Metal Coil Coating. All operating segments operate primarily in the nonresidential construction market. Sales and earnings are influenced by general economic conditions, the level of nonresidential construction activity, metal roof repair and retrofit demand and the availability and terms of financing available for construction. Products of our operating segments use similar basic raw materials enabling us to leverage our supply chain. The Metal Coil Coating segment consists of cleaning, treating, painting and slitting continuous steel coils before the steel is fabricated for use by construction and industrial users. The Metal Components segment products include metal roof and wall panels, doors, metal partitions, metal trim, and other related accessories. The Insulated Metal Panels segment produces panels consisting of rigid foam encased between two sheets of coated metal in a variety of modules, lengths and reveal combinations which are used in architectural, commercial, industrial and cold storage market applications. The Engineered Building Systems segment manufactures custom designed and engineered products such as structural frames, Long Bay® Systems, metal roofing and wall systems, and the related value-added engineering and drafting, to provide customers a complete building envelope solution. The operating segments follow the same accounting policies used for our consolidated financial statements. We evaluate a segment’s performance based primarily upon operating income before corporate expenses. Intersegment sales are recorded based on standard material costs plus a standard markup to cover labor and overhead and consist of (i) hot-rolled, light gauge painted and slit material and other services provided by the Metal Coil Coating segment to the Engineered Building Systems, Metal Components and Insulated Metal Panels segments; (ii) building components provided by the Metal Components and Insulated Metal Panels segment to the Engineered Building Systems segment; and (iii) structural framing provided by the Engineered Building Systems segment to the Metal Components segment. Corporate assets consist primarily of cash, but also include deferred taxes and property, plant and equipment associated with our headquarters in Houston, Texas. These items (and income and expenses related to these items) are not allocated to the operating segments. Corporate unallocated expenses include share-based compensation expenses, and executive, legal, finance, tax, treasury, human resources, information technology, strategic sourcing, and corporate travel expenses. Additional unallocated amounts primarily include interest income, interest expense and other (expense) income. The following table represents summary financial data attributable to these operating segments for the periods indicated (in thousands): Fiscal Three Months Ended Fiscal Six Months Ended April 29, April 30, April 29, April 30, Total sales: Engineered Building Systems $ 167,240 $ 162,624 $ 324,204 $ 313,887 Metal Components 168,456 154,895 315,288 289,068 Insulated Metal Panels 113,413 102,937 224,207 198,132 Metal Coil Coating 95,190 86,729 183,533 175,069 Intersegment sales (87,230 ) (86,721 ) (168,814 ) (163,989 ) Total sales $ 457,069 $ 420,464 $ 878,418 $ 812,167 External sales: Engineered Building Systems $ 157,136 $ 154,456 $ 305,424 $ 299,477 Metal Components 147,661 133,290 275,189 248,847 Insulated Metal Panels 99,792 86,773 $ 197,305 169,214 Metal Coil Coating 52,480 45,945 100,500 94,629 Total sales $ 457,069 $ 420,464 $ 878,418 $ 812,167 Operating income (loss): Engineered Building Systems $ 9,271 $ 6,894 $ 17,534 $ 13,397 Metal Components 22,082 19,997 39,171 32,373 Insulated Metal Panels 1,540 19,377 $ 8,611 21,569 Metal Coil Coating 7,129 6,227 12,505 12,933 Corporate (21,066 ) (20,023 ) (45,967 ) (37,914 ) Total operating income $ 18,956 $ 32,472 $ 31,854 $ 42,358 Unallocated other expense, net (26,722 ) (6,892 ) (33,253 ) (13,463 ) Income before income taxes $ (7,766 ) $ 25,580 $ (1,399 ) $ 28,895 April 29, October 29, Total assets: Engineered Building Systems $ 205,839 $ 195,426 Metal Components 192,958 186,369 Insulated Metal Panels 368,363 380,308 Metal Coil Coating 176,837 175,046 Corporate 62,610 93,963 Total assets $ 1,006,607 $ 1,031,112 |
CONTINGENCIES
CONTINGENCIES | 6 Months Ended |
Apr. 29, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | CONTINGENCIES As a manufacturer of products primarily for use in nonresidential building construction, the Company is inherently exposed to various types of contingent claims, both asserted and unasserted, in the ordinary course of business. As a result, from time to time, the Company and/or its subsidiaries become involved in various legal proceedings or other contingent matters arising from claims, or potential claims. The Company insures against these risks to the extent deemed prudent by its management and to the extent insurance is available. Many of these insurance policies contain deductibles or self-insured retentions in amounts the Company deems prudent and for which the Company is responsible for payment. In determining the amount of self-insurance, it is the Company’s policy to self-insure those losses that are predictable, measurable and recurring in nature, such as claims for automobile liability and general liability. The Company regularly reviews the status of ongoing proceedings and other contingent matters along with legal counsel. Liabilities for such items are recorded when it is probable that the liability has been incurred and when the amount of the liability can be reasonably estimated. Liabilities are adjusted when additional information becomes available. Management believes that the ultimate disposition of these matters will not have a material adverse effect on the Company’s results of operations, financial position or cash flows. However, such matters are subject to many uncertainties and outcomes are not predictable with assurance. |
SUMMARY OF SIGNIFICANT ACCOUN25
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Apr. 29, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements for NCI Building Systems, Inc. (together with its subsidiaries, unless otherwise indicated, the “Company,” “NCI,” “we,” “us” or “our”) have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, the unaudited consolidated financial statements included herein contain all adjustments, which consist of normal recurring adjustments, necessary to fairly present our financial position, results of operations and cash flows for the periods indicated. Operating results for the fiscal three and six month period ended April 29, 2018 are not necessarily indicative of the results that may be expected for the fiscal year ending October 28, 2018 . Our sales and earnings are subject to both seasonal and cyclical trends and are influenced by general economic conditions, interest rates, the price of steel relative to other building materials, the level of nonresidential construction activity, roof repair and retrofit demand and the availability and cost of financing for construction projects. |
Reporting Periods | Reporting Periods We use a four-four-five week calendar each quarter with our fiscal year end being on the Sunday closest to October 31. The year end for fiscal 2018 is October 28, 2018 . |
Adopted Accounting Pronouncements and Recent Accounting Pronouncements | Adopted Accounting Pronouncements In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. ASU 2015-11 requires that inventory that has historically been measured using first-in, first-out (FIFO) or average cost method should now be measured at the lower of cost and net realizable value. We adopted this guidance in our first quarter of fiscal 2018 on a prospective basis. The adoption of this guidance did not have a material impact on our financial position or results of operations. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes . ASU 2015-17 requires all deferred tax assets and liabilities to be presented on the balance sheet as noncurrent. The requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by this update. We adopted ASU 2015-17 in our first quarter in fiscal 2018 on a retrospective basis. As a result deferred tax assets of $20.1 million that were presented on our October 29, 2017 consolidated balance sheet have been reclassified to non-current deferred tax liabilities and the remaining $2.5 million deferred tax assets have been reclassified to non-current deferred tax assets to be consistent with the current year classification. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting , which simplifies certain aspects of the accounting for share-based payment transactions, including income tax effects, forfeitures, minimum statutory tax withholding requirements, classification as either equity or liability, and classification on the statement of cash flows. We adopted ASU 2016-09 in our first quarter in fiscal 2018. ASU 2016-09 requires all excess tax benefits and tax deficiencies be recognized as income tax expense or benefit in the income statement, thus eliminating additional paid-in capital pools. The Company applied the new standard guidance prospectively to all excess tax benefits and tax deficiencies resulting from settlements after October 29, 2017. The standard also requires a policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. The Company recognized a cumulative effect adjustment of $1.4 million to increase accumulated deficit on a modified retrospective basis as of October 29, 2017 and has elected to account for forfeitures when they occur on a prospective basis. The standard requires that excess tax benefits should be classified along with other income tax cash flows as an operating activity on the statement of cash flows, which differs from the Company’s historical classification of the excess tax benefits as cash inflows from financing activities. The Company elected to apply this provision using the retrospective transition method and reclassified $1.5 million of excess tax benefits from financing activities to operating activities on the statement of cash flows for the fiscal six months ended April 30, 2017 . Additionally, the standard requires cash paid by an employer when directly withholding shares for tax withholding purposes to be classified in the statement of cash flows as a financing activity. Payments for shares withheld for tax withholding purposes of $4.6 million and $2.4 million are classified on the consolidated statements of cash flows for the six months ended April 29, 2018 and April 30, 2017 , respectively. Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition , and most industry-specific guidance. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. During 2016, the FASB also issued ASU 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net); ASU 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing ; ASU 2016-11, Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting ; and ASU 2016-12, Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients; and ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers (collectively, the “new revenue standard”) , all of which were issued to improve and clarify the guidance in ASU 2014-09. These ASUs are effective for our fiscal year ending November 3, 2019, including interim periods within that fiscal year, using either a full or modified retrospective approach. To adopt the new revenue standard, we anticipate applying the modified retrospective approach, pursuant to which we will record an adjustment to the opening balance of accumulated deficit as of October 29, 2018 (the first day of our fiscal year ending November 3, 2019) for the impact of applying the new revenue standard to all contracts existing as of the date of application. For each revenue contract type, we are conducting a contract review process to evaluate the impact, if any, that the new revenue standard may have. At this time, our assessment is not yet complete and therefore we are unable to quantify the potential impacts to our consolidated financial statements; however, we do anticipate the adoption will have a material impact on our financial statement disclosures. In February 2016, the FASB issued ASU 2016-02, Leases , which will require lessees to record most leases on the balance sheet and modifies the classification criteria and accounting for sales-type leases and direct financing leases for lessors. ASU 2016-02 is effective for our fiscal year ending November 1, 2020, including interim periods within that fiscal year. The guidance requires entities to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. While we are evaluating the impact that the adoption of this guidance will have on our consolidated financial statements, we currently believe that most of our operating leases will be reflected on the consolidated balance sheet upon adoption. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU requires an entity to measure all expected credit losses for financial assets, including trade receivables, held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Entities will now incorporate forward-looking information based on expected losses to estimate credit losses. ASU 2016-13 is effective for our fiscal year ending October 31, 2021, including interim periods within that fiscal year. We are evaluating the impact that the adoption of this ASU will have on our consolidated financial position, result of operations and cash flows. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , which provides guidance on eight cash flow classification issues with the objective of reducing differences in practice. We will be required to adopt the amendments in this ASU in annual and interim periods for our fiscal year ending November 3, 2019, with early adoption permitted. Adoption is required to be on a retrospective basis, unless impracticable for any of the amendments, in which case a prospective application is permitted. We are evaluating the impact that ASU 2016-15 will have on our consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other than Inventory , which eliminates the exception that prohibits the recognition of current and deferred income tax effects for intra-entity transfers of assets other than inventory until the asset has been sold to an outside party. We will be required to adopt the amendments in this ASU in the annual and interim periods for our fiscal year ending November 3, 2019, with early adoption permitted. The application of the amendments will require the use of a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. We are evaluating the standard and the impact it will have on our consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force) , which clarifies how entities should present restricted cash and restricted cash equivalents in the statement of cash flows. Entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. An entity with a material balance of restricted cash and restricted cash equivalents must disclose information about the nature of the restrictions. We will be required to adopt this guidance on a retrospective basis in the annual and interim periods for our fiscal year ending November 3, 2019, with early adoption permitted. We are evaluating the impact ASU 2016-18 will have on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business . This ASU adds guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Under the new guidance, if a single asset or group of similar identifiable assets comprise substantially all of the fair value of the gross assets acquired (or disposed of) in a transaction, the assets and related activities are not a business. Also, a minimum of an input process and a substantive process must be present and significantly contribute to the ability to create outputs in order to be considered a business. We will be required to adopt this guidance on a prospective basis in the annual and interim periods for our fiscal year ending November 3, 2019, with early adoption permitted. We are evaluating the impact ASU 2017-01 will have on our consolidated financial statements. In March 2017, the FASB issued ASU 2017-07, Compensation — Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , which amends the requirements related to the income statement presentation of the components of net periodic benefit cost for employer sponsored defined benefit pension and other postretirement benefit plans. Under the new guidance, an entity must disaggregate and present the service cost component of net periodic benefit cost in the same income statement line items as other employee compensation costs arising from services rendered during the period, and only the service cost component will be eligible for capitalization. Other components of net periodic benefit cost will be presented separately from the line items that include the service cost. We will be required to adopt this guidance in the annual and interim periods for our fiscal year ending November 3, 2019, with early adoption permitted. Entities must use a retrospective transition method to adopt the requirement for separate presentation of the income statement service cost and other components, and a prospective transition method to adopt the requirement to limit the capitalization of benefit cost to the service component. We are evaluating the impact of adopting this guidance. In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting , which provides clarity on the accounting for modifications of stock-based awards. We will be required to adopt this guidance on a prospective basis in the annual and interim periods for our fiscal year ending November 3, 2019 for share-based payment awards modified on or after the adoption date. We are evaluating the impact ASU 2017-09 will have on our consolidated financial statements. |
RESTRUCTURING (Tables)
RESTRUCTURING (Tables) | 6 Months Ended |
Apr. 29, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Plan Costs and Charges | The following table summarizes the costs and charges associated with the restructuring plans during the three and six months ended April 29, 2018 , which are recorded in restructuring and impairment charges in the Company’s consolidated statements of operations (in thousands): Fiscal Three Months Ended Fiscal Six Months Ended Cost Incurred To Date (since inception) April 29, April 29, General severance $ 417 $ 1,733 $ 10,695 Plant closing severance — — 3,279 Asset impairments 71 1,171 7,140 Gain on sale of facility — (1,424 ) (1,424 ) Other restructuring costs — 102 1,415 Total restructuring costs $ 488 $ 1,582 $ 21,105 |
Restructuring Liability and Cash Payments | The following table summarizes our severance liability and cash payments made pursuant to the restructuring plans from inception through April 29, 2018 (in thousands): General Severance Plant Closing Severance Total Balance at November 2, 2014 $ — $ — $ — Costs incurred 3,887 1,575 5,462 Cash payments (2,941 ) (1,575 ) (4,516 ) Accrued severance (1) 739 — 739 Balance at November 1, 2015 $ 1,685 $ — $ 1,685 Costs incurred (1) 2,725 165 2,890 Cash payments (3,928 ) (165 ) (4,093 ) Balance at October 30, 2016 $ 482 $ — $ 482 Costs incurred 2,350 1,539 3,889 Cash payments (2,549 ) (1,539 ) (4,088 ) Balance at October 29, 2017 $ 283 $ — $ 283 Costs incurred 1,733 — 1,733 Cash payments (1,782 ) — (1,782 ) Balance at April 29, 2018 $ 234 $ — $ 234 (1) During the second and fourth quarters of fiscal 2015, we entered into transition and separation agreements with certain executive officers. Each terminated executive officer was entitled to severance benefit payments issuable in two installments. The termination benefits were measured initially at the separation dates based on the fair value of the liability as of the termination date and were recognized ratably over the future service period. Costs incurred during fiscal 2016 exclude $0.7 million of amortization expense associated with these termination benefits. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Apr. 29, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory Components | The components of inventory are as follows (in thousands): April 29, October 29, Raw materials $ 164,805 $ 150,919 Work in process and finished goods 56,564 47,377 $ 221,369 $ 198,296 |
EARNINGS (LOSS) PER COMMON SH28
EARNINGS (LOSS) PER COMMON SHARE (Tables) | 6 Months Ended |
Apr. 29, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The reconciliation of the numerator and denominator used for the computation of basic and diluted earnings (loss) per common share is as follows (in thousands, except per share data): Fiscal Three Months Ended Fiscal Six Months Ended April 29, April 30, April 29, April 30, Numerator for Basic and Diluted Earnings (Loss) Per Common Share: Net income (loss) applicable to common shares $ (5,684 ) $ 16,859 $ (435 ) $ 18,882 Denominator for Basic and Diluted Earnings (Loss) Per Common Share: Weighted average basic number of common shares outstanding 66,210 70,988 66,311 70,933 Common stock equivalents: Employee stock options — 134 — 138 PSUs and Performance Share Awards — — — 36 Weighted average diluted number of common shares outstanding 66,210 71,122 66,311 71,107 Basic earnings (loss) per common share $ (0.09 ) $ 0.24 $ (0.01 ) $ 0.27 Diluted earnings (loss) per common share $ (0.09 ) $ 0.24 $ (0.01 ) $ 0.27 Incentive Plan securities excluded from dilution (1) 95 2 122 2 (1) Represents securities not included in the computation of diluted earnings (loss) per common share because their effect would have been anti-dilutive. |
WARRANTY (Tables)
WARRANTY (Tables) | 6 Months Ended |
Apr. 29, 2018 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Acquired Accrued Warranty Obligation and Deferred Warranty Revenue | The following table represents the rollforward of our accrued warranty obligation and deferred warranty revenue activity for the fiscal six months ended April 29, 2018 and April 30, 2017 (in thousands): Fiscal Six Months Ended April 29, April 30, Beginning balance $ 27,016 $ 27,200 Warranties sold 1,605 1,234 Revenue recognized (1,314 ) (1,512 ) Ending balance $ 27,307 $ 26,922 |
DEFINED BENEFIT PLANS (Tables)
DEFINED BENEFIT PLANS (Tables) | 6 Months Ended |
Apr. 29, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of Accumulated and Projected Benefit Obligations | The following tables sets forth the components of the net periodic benefit cost, before tax, and funding contributions, for the periods indicated (in thousands): Fiscal Three Months Ended Fiscal Three Months Ended Defined OPEB Total Defined OPEB Total Service cost $ 22 $ 7 $ 29 $ 24 $ 9 $ 33 Interest cost 494 62 556 513 64 577 Expected return on assets (729 ) — (729 ) (700 ) — (700 ) Amortization of prior service credit 15 — 15 (2 ) — (2 ) Amortization of net actuarial loss 248 — 248 344 — 344 Net periodic benefit cost $ 50 $ 69 $ 119 $ 179 $ 73 $ 252 Funding contributions $ 639 $ — $ 639 $ 591 $ — $ 591 Fiscal Six Months Ended Fiscal Six Months Ended Defined OPEB Total Defined OPEB Total Service cost $ 44 $ 14 $ 58 $ 49 $ 18 $ 67 Interest cost 988 124 1,112 1,027 129 1,156 Expected return on assets (1,458 ) — (1,458 ) (1,399 ) — (1,399 ) Amortization of prior service credit 28 — 28 (5 ) — (5 ) Amortization of net actuarial loss 496 — 496 687 — 687 Net periodic benefit cost $ 98 $ 138 $ 236 $ 359 $ 147 $ 506 Funding contributions $ 910 $ — $ 910 $ 825 $ — $ 825 |
LONG-TERM DEBT AND NOTE PAYAB31
LONG-TERM DEBT AND NOTE PAYABLE (Tables) | 6 Months Ended |
Apr. 29, 2018 | |
Debt Disclosure [Abstract] | |
Schedule Of Debt | Debt is comprised of the following (in thousands): April 29, October 29, Term loan credit facility, due February 2025 and June 2022, respectively $ 415,000 $ 144,147 8.25% senior notes, due January 2023 — 250,000 Asset-based lending credit facility, due February 2023 and June 2019, respectively — — Less: unamortized deferred financing costs (1) 6,043 6,857 Total long-term debt, net of deferred financing costs $ 408,957 $ 387,290 (1) Includes the unamortized deferred financing costs associated with the term loan credit facilities and Notes. The unamortized deferred financing costs associated with the asset-based credit lending facilities of $1.3 million and $0.7 million as of April 29, 2018 and October 29, 2017 , respectively, are classified in other assets on the consolidated balance sheets. |
FAIR VALUE OF FINANCIAL INSTR32
FAIR VALUE OF FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Apr. 29, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Not Currently Recognized on Balance sheet | The fair values of the remaining financial instruments not currently recognized at fair value on our consolidated balance sheets at the respective fiscal period ends were (in thousands): April 29, 2018 October 29, 2017 Carrying Amount Fair Value Carrying Amount Fair Value Term Loan Credit Facility, due February 2025 $ 415,000 $ 415,519 $ — $ — Credit Agreement, due June 2022 — — 144,147 144,147 8.25% senior notes, due January 2023 — — 250,000 267,500 |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables summarize information regarding our financial assets and liabilities that are measured at fair value on a recurring basis as of April 29, 2018 and October 29, 2017 , segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (in thousands): April 29, 2018 Level 1 Level 2 Level 3 Total Assets: Short-term investments in deferred compensation plan: (1) Money market $ 790 $ — $ — $ 790 Mutual funds – Growth 1,057 — — 1,057 Mutual funds – Blend 2,018 — — 2,018 Mutual funds – Foreign blend 946 — — 946 Mutual funds – Fixed income — 1,521 — 1,521 Total short-term investments in deferred compensation plan 4,811 1,521 — 6,332 Total assets $ 4,811 $ 1,521 $ — $ 6,332 Liabilities: Deferred compensation plan liability $ — $ 5,310 $ — $ 5,310 Total liabilities $ — $ 5,310 $ — $ 5,310 October 29, 2017 Level 1 Level 2 Level 3 Total Assets: Short-term investments in deferred compensation plan: (1) Money market $ 1,114 $ — $ — $ 1,114 Mutual funds – Growth 958 — — 958 Mutual funds – Blend 1,948 — — 1,948 Mutual funds – Foreign blend 915 — — 915 Mutual funds – Fixed income — 1,546 — 1,546 Total short-term investments in deferred compensation plan 4,935 1,546 — 6,481 Total assets $ 4,935 $ 1,546 $ — $ 6,481 Liabilities: Deferred compensation plan liability $ — $ 4,923 $ — $ 4,923 Total liabilities $ — $ 4,923 $ — $ 4,923 (1) Unrealized holding gain (loss) for the three months ended April 29, 2018 and April 30, 2017 was $(0.2) million and $0.2 million , respectively. Unrealized holding gain (loss) for the six months ended April 29, 2018 and April 30, 2017 was $0.1 million and $(0.3) million , respectively. These unrealized holding gains (losses) were substantially offset by changes in the deferred compensation plan liability. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended |
Apr. 29, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | The reconciliation of income tax computed at the statutory tax rate to the effective income tax rate is as follows: Fiscal Three Months Ended Fiscal Six Months Ended April 29, April 30, April 29, April 30, Statutory federal income tax rate 23.3 % 35.0 % 23.3 % 35.0 % State income taxes 3.4 % 3.8 % 3.7 % 3.8 % Domestic production activities deduction (1.5 )% (3.2 )% (1.1 )% (3.2 )% Non-deductible expenses 0.7 % 0.9 % 0.9 % 0.9 % Tax credits (0.6 )% (0.9 )% (0.8 )% (0.9 )% China valuation allowance — % (0.5 )% (0.9 )% (0.1 )% Revaluation of U.S. deferred income tax due to statutory rate reduction — % — % 74.7 % — % One-time repatriation tax on foreign earnings — % — % (51.6 )% — % Other 1.5 % (1.5 )% 20.7 % (1.3 )% Effective tax rate 26.8 % 33.6 % 68.9 % 34.2 % |
OPERATING SEGMENTS (Tables)
OPERATING SEGMENTS (Tables) | 6 Months Ended |
Apr. 29, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Sales, Operating Income, and Total Assets for Operating Segments | The following table represents summary financial data attributable to these operating segments for the periods indicated (in thousands): Fiscal Three Months Ended Fiscal Six Months Ended April 29, April 30, April 29, April 30, Total sales: Engineered Building Systems $ 167,240 $ 162,624 $ 324,204 $ 313,887 Metal Components 168,456 154,895 315,288 289,068 Insulated Metal Panels 113,413 102,937 224,207 198,132 Metal Coil Coating 95,190 86,729 183,533 175,069 Intersegment sales (87,230 ) (86,721 ) (168,814 ) (163,989 ) Total sales $ 457,069 $ 420,464 $ 878,418 $ 812,167 External sales: Engineered Building Systems $ 157,136 $ 154,456 $ 305,424 $ 299,477 Metal Components 147,661 133,290 275,189 248,847 Insulated Metal Panels 99,792 86,773 $ 197,305 169,214 Metal Coil Coating 52,480 45,945 100,500 94,629 Total sales $ 457,069 $ 420,464 $ 878,418 $ 812,167 Operating income (loss): Engineered Building Systems $ 9,271 $ 6,894 $ 17,534 $ 13,397 Metal Components 22,082 19,997 39,171 32,373 Insulated Metal Panels 1,540 19,377 $ 8,611 21,569 Metal Coil Coating 7,129 6,227 12,505 12,933 Corporate (21,066 ) (20,023 ) (45,967 ) (37,914 ) Total operating income $ 18,956 $ 32,472 $ 31,854 $ 42,358 Unallocated other expense, net (26,722 ) (6,892 ) (33,253 ) (13,463 ) Income before income taxes $ (7,766 ) $ 25,580 $ (1,399 ) $ 28,895 April 29, October 29, Total assets: Engineered Building Systems $ 205,839 $ 195,426 Metal Components 192,958 186,369 Insulated Metal Panels 368,363 380,308 Metal Coil Coating 176,837 175,046 Corporate 62,610 93,963 Total assets $ 1,006,607 $ 1,031,112 |
SUMMARY OF SIGNIFICANT ACCOUN35
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |
Apr. 29, 2018USD ($) | Jan. 28, 2018operating_segment | Apr. 29, 2018operating_segment | |
Accounting Policies [Abstract] | |||
Number of reportable segments | operating_segment | 4 | 4 | |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | CENTRIA International LLC | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Loss on sale of segment | $ | $ 6.7 |
ACCOUNTING PRONOUNCEMENTS (Deta
ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Apr. 29, 2018 | Apr. 30, 2017 | Oct. 29, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Increase in deferred tax liabilities | $ 1,928 | $ 4,297 | |
Deferred income tax assets | 2,513 | 2,544 | |
Cumulative effect of accounting change | 0 | ||
Excess tax benefits from financing activities | 51,651 | $ 14,944 | |
Payments for shares withheld for tax withholding | $ 4,612 | 2,389 | |
Accounting Standards Update 2015-17 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Decrease in deferred tax assets | 20,100 | ||
Increase in deferred tax liabilities | 20,100 | ||
Accounting Standards Update 2016-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Excess tax benefits from financing activities | 1,500 | ||
Excess tax benefits to operating activities | $ 1,500 | ||
Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of accounting change | 1,351 | ||
Retained Earnings | Accounting Standards Update 2016-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of accounting change | $ 1,400 |
RESTRUCTURING - Narrative (Det
RESTRUCTURING - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 29, 2018 | Apr. 30, 2017 | Apr. 29, 2018 | Apr. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 488 | $ 300 | $ 1,582 | $ 2,600 |
Restructuring completion period | 12 months | |||
Engineered Building Systems | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 300 | 200 | $ 1,500 | 2,100 |
Insulated Metal Panels | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 100 | 1,400 | ||
Metal Components | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 100 | $ 100 | $ 500 | |
Gain on sale of facility | $ 70 | (70) | ||
Manufacturing facility | Metal Components | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Gain on sale of facility | $ 1,300 |
RESTRUCTURING - Schedule of Re
RESTRUCTURING - Schedule of Restructuring Plan Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 29, 2018 | Apr. 30, 2017 | Apr. 29, 2018 | Apr. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 488 | $ 300 | $ 1,582 | $ 2,600 |
Cost Incurred To Date (since inception) | 21,105 | 21,105 | ||
General severance | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 417 | 1,733 | ||
Cost Incurred To Date (since inception) | 10,695 | 10,695 | ||
Plant closing severance | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 0 | 0 | ||
Cost Incurred To Date (since inception) | 3,279 | 3,279 | ||
Asset impairments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 71 | 1,171 | ||
Cost Incurred To Date (since inception) | 7,140 | 7,140 | ||
Gain on sale of facility | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 0 | (1,424) | ||
Cost Incurred To Date (since inception) | (1,424) | (1,424) | ||
Other restructuring costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 0 | 102 | ||
Cost Incurred To Date (since inception) | $ 1,415 | $ 1,415 |
RESTRUCTURING - Schedule of 39
RESTRUCTURING - Schedule of Restructuring Liability and Cash Payments (Details) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Apr. 29, 2018USD ($) | Oct. 29, 2017USD ($) | Oct. 30, 2016USD ($) | Nov. 01, 2015USD ($)installment | May 03, 2015installment | |
Restructuring Reserve [Roll Forward] | |||||
Beginning balance | $ 283 | $ 482 | $ 1,685 | $ 0 | |
Costs incurred | 1,733 | 3,889 | 2,890 | 5,462 | |
Cash payments | (1,782) | (4,088) | (4,093) | (4,516) | |
Accrued severance | 739 | ||||
End balance | 234 | 283 | 482 | $ 1,685 | |
Severance benefit payment, number of installments | installment | 2 | 2 | |||
Amortization of termination benefits | 700 | ||||
General severance | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning balance | 283 | 482 | 1,685 | $ 0 | |
Costs incurred | 1,733 | 2,350 | 2,725 | 3,887 | |
Cash payments | (1,782) | (2,549) | (3,928) | (2,941) | |
Accrued severance | 739 | ||||
End balance | 234 | 283 | 482 | 1,685 | |
Plant closing severance | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning balance | 0 | 0 | 0 | 0 | |
Costs incurred | 0 | 1,539 | 165 | 1,575 | |
Cash payments | 0 | (1,539) | (165) | (1,575) | |
Accrued severance | 0 | ||||
End balance | $ 0 | $ 0 | $ 0 | $ 0 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Apr. 29, 2018 | Oct. 29, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 164,805 | $ 150,919 |
Work in process and finished goods | 56,564 | 47,377 |
Inventories, net | $ 221,369 | $ 198,296 |
ASSETS HELD FOR SALE (Details)
ASSETS HELD FOR SALE (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Apr. 29, 2018 | Apr. 29, 2018 | Oct. 29, 2017 | |
Long Lived Assets Held-for-sale [Line Items] | |||
Assets held for sale, carrying value, current | $ 10,102 | $ 10,102 | $ 5,582 |
Assets held-for-sale, fair value | 5,000 | 5,000 | |
Metal Components | |||
Long Lived Assets Held-for-sale [Line Items] | |||
Proceeds from sale of facility | 400 | 400 | |
Net loss on sale of idle facility | $ (70) | $ 70 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) - USD ($) | Dec. 15, 2017 | Apr. 29, 2018 | Apr. 29, 2018 | Apr. 30, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common shares effective date of incentive plan | 10 years | |||
Expiration period, after termination of employment | 30 days | |||
Expiration period, after death | 1 year | |||
Expiration period, after disability or retirement | 5 years | |||
Award vesting period | 3 years | |||
Stock options, grants in period (in shares) | 0 | 10,424 | ||
Grant-date fair value (in USD per share) | $ 6.59 | |||
Stock options exercised (in shares) | 100,000 | |||
Stock options exercised, intrinsic value | $ 600,000 | |||
Cash proceeds received from exercise of stock options | $ 1,000,000 | 1,040,000 | $ 1,196,000 | |
Value, restricted stock award, gross | 0 | |||
Allocated share-based compensation expense | 7,900,000 | 5,900,000 | ||
Accelerated awards due to retirement | 3,600,000 | |||
Deferred compensation obligation | $ 1,200,000 | |||
Employee stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expiration period | 1 year | |||
Incentive Plan | Employee stock options | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years | |||
Incentive Plan | Employee stock options | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 4 years | |||
Incentive Plan | PSUs and Performance Share Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares held in employee trust (in shares) | 109,689 | |||
Executive Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years | |||
Executive Awards | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Long-term incentive awards composition, percentage | 40.00% | |||
Executive Awards | PSUs and Performance Share Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Long-term incentive awards composition, percentage | 60.00% | |||
Options grants, fair value | $ 2,100,000 | 2,000,000 | ||
Granted awards, cash value | $ 0 | 2,000,000 | ||
Executive Awards | PSUs and Performance Share Awards | Weighted 40%, tranche one | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance metric, cumulative free cash flow | 40.00% | 40.00% | ||
Executive Awards | PSUs and Performance Share Awards | Weighted 40%, tranche two | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, performance metric, percent | 40.00% | 40.00% | ||
Executive Awards | PSUs and Performance Share Awards | Weighted 20% | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance metric, total shareholder return | 20.00% | 20.00% | ||
Executive Awards | PSUs and Performance Share Awards | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum percentage of targeted number of shares | 0.00% | 0.00% | ||
Executive Awards | PSUs and Performance Share Awards | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum percentage of targeted number of shares | 200.00% | 200.00% | ||
2014 Key Employee Awards | PSUs and Performance Share Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options grants, fair value | $ 4,500,000 | 4,600,000 | ||
Percentage of targeted number of shares | 69.40% | |||
Stock issued during period due to share-based compensation | 100,000 | |||
Key Employee Awards | PSUs and Performance Share Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance share award, cash portion (percentage) | 50.00% | 50.00% | ||
Share-based compensation, payment award, stock (percentage) | 50.00% | |||
Key Employee Awards | PSUs and Performance Share Awards | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum percentage of targeted number of shares | 0.00% | 0.00% | ||
Key Employee Awards | PSUs and Performance Share Awards | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum percentage of targeted number of shares | 150.00% | 150.00% | ||
2015 & 2016 Key Employee | Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Value, restricted stock award, gross | $ 6,800,000 | $ 4,000,000 | ||
Shares, restricted stock award, gross (in shares) | 300,000 | 300,000 |
EARNINGS (LOSS) PER COMMON SH43
EARNINGS (LOSS) PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 29, 2018 | Apr. 30, 2017 | Apr. 29, 2018 | Apr. 30, 2017 | |
Numerator for Basic and Diluted Earnings (Loss) Per Common Share: | ||||
Net income (loss) applicable to common shares | $ (5,684) | $ 16,859 | $ (435) | $ 18,882 |
Denominator for Basic and Diluted Earnings (Loss) Per Common Share: | ||||
Weighted average basic number of common shares outstanding (in shares) | 66,210 | 70,988 | 66,311 | 70,933 |
Weighted average diluted number of common shares outstanding (in shares) | 66,210 | 71,122 | 66,311 | 71,107 |
Basic earnings (loss) per common share (in USD per share) | $ (0.09) | $ 0.24 | $ (0.01) | $ 0.27 |
Diluted earnings (loss) per common share (in USD per share) | $ (0.09) | $ 0.24 | $ (0.01) | $ 0.27 |
Incentive Plan securities excluded from dilution (in shares) | 95 | 2 | 122 | 2 |
Employee stock options | ||||
Denominator for Basic and Diluted Earnings (Loss) Per Common Share: | ||||
Incremental common shares attributable to dilutive effect of share-based payment arrangements (in shares) | 0 | 134 | 0 | 138 |
PSUs and Performance Share Awards | ||||
Denominator for Basic and Diluted Earnings (Loss) Per Common Share: | ||||
Incremental common shares attributable to dilutive effect of share-based payment arrangements (in shares) | 0 | 0 | 0 | 36 |
WARRANTY - Narrative (Details)
WARRANTY - Narrative (Details) | 6 Months Ended |
Apr. 29, 2018warranty_typewarranty_coverage_gradestage_roofing_project | |
Product Warranty Liability [Line Items] | |
Product warranty, number of warranty categories | warranty_type | 2 |
Product warranty, number of grades per warranty category | warranty_coverage_grade | 3 |
Standard product warranty, period of leak-free months before warranty begins | 24 months |
Product warranty, stages per roofing project | stage_roofing_project | 3 |
Minimum | |
Product Warranty Liability [Line Items] | |
Product warranty period (in years) | 2 years |
Maximum | |
Product Warranty Liability [Line Items] | |
Product warranty period (in years) | 20 years |
WARRANTY - Warranty Rollforwar
WARRANTY - Warranty Rollforward (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Apr. 29, 2018 | Apr. 30, 2017 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Beginning balance | $ 27,016 | $ 27,200 |
Warranties sold | 1,605 | 1,234 |
Revenue recognized | (1,314) | (1,512) |
Ending balance | $ 27,307 | $ 26,922 |
DEFINED BENEFIT PLANS - Narrat
DEFINED BENEFIT PLANS - Narrative (Details) | 6 Months Ended |
Apr. 29, 2018USD ($) | |
Other Postretirement Benefit Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan, expected future benefit payments, next rolling twelve months | $ 1,600,000 |
Defined benefit plan, minimum annual contribution, percent | 0.00% |
Defined contribution plan, maximum annual contributions per employee, percent | 25.00% |
The Steelworkers Pension Trust | CENTRIA Benefit Plan | Multiemployer Plans, Pension | |
Defined Benefit Plan Disclosure [Line Items] | |
Multiemployer plans, minimum contribution | $ 300,000 |
DEFINED BENEFIT PLANS - Period
DEFINED BENEFIT PLANS - Periodic Benefits Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 29, 2018 | Apr. 30, 2017 | Apr. 29, 2018 | Apr. 30, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 29 | $ 33 | $ 58 | $ 67 |
Interest cost | 556 | 577 | 1,112 | 1,156 |
Expected return on assets | (729) | (700) | (1,458) | (1,399) |
Amortization of prior service credit | 15 | (2) | 28 | (5) |
Amortization of net actuarial loss | 248 | 344 | 496 | 687 |
Net periodic benefit cost | 119 | 252 | 236 | 506 |
Funding contributions | 639 | 591 | 910 | 825 |
Defined Benefit Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 22 | 24 | 44 | 49 |
Interest cost | 494 | 513 | 988 | 1,027 |
Expected return on assets | (729) | (700) | (1,458) | (1,399) |
Amortization of prior service credit | 15 | (2) | 28 | (5) |
Amortization of net actuarial loss | 248 | 344 | 496 | 687 |
Net periodic benefit cost | 50 | 179 | 98 | 359 |
Funding contributions | 639 | 591 | 910 | 825 |
OPEB Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 7 | 9 | 14 | 18 |
Interest cost | 62 | 64 | 124 | 129 |
Expected return on assets | 0 | 0 | 0 | 0 |
Amortization of prior service credit | 0 | 0 | 0 | 0 |
Amortization of net actuarial loss | 0 | 0 | 0 | 0 |
Net periodic benefit cost | 69 | 73 | 138 | 147 |
Funding contributions | $ 0 | $ 0 | $ 0 | $ 0 |
LONG-TERM DEBT AND NOTE PAYAB48
LONG-TERM DEBT AND NOTE PAYABLE - Schedule of Debt (Details) - USD ($) $ in Thousands | Apr. 29, 2018 | Feb. 08, 2018 | Oct. 29, 2017 | Jan. 16, 2015 |
Debt Instrument [Line Items] | ||||
Unamortized deferred financing costs | $ 6,043 | $ 6,857 | ||
Total long-term debt, net of deferred financing costs | 408,957 | 387,290 | ||
Term loan credit facility, due February 2025 and June 2022 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 415,000 | 144,147 | ||
8.25% Senior Notes Due January 2023 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 0 | $ 250,000 | ||
Debt instrument, interest rate, stated percentage | 8.25% | 8.25% | 8.25% | |
Asset-based lending credit facility, due 2023 and 2019 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 0 | $ 0 | ||
Other Assets | ABL Facility | Asset-based lending credit facility, due 2023 and 2019 | ||||
Debt Instrument [Line Items] | ||||
Unamortized deferred financing costs | $ 1,300 | $ 700 |
LONG-TERM DEBT AND NOTE PAYAB49
LONG-TERM DEBT AND NOTE PAYABLE - Narrative (Details) | Feb. 08, 2018USD ($) | Apr. 29, 2018USD ($) | Apr. 30, 2017USD ($) | Apr. 29, 2018USD ($) | Apr. 30, 2017USD ($) | Oct. 29, 2017USD ($) | Jan. 16, 2015USD ($) |
Line of Credit Facility [Line Items] | |||||||
Loss on extinguishment of debt | $ 21,875,000 | $ 0 | $ 21,875,000 | $ 0 | |||
Note payable | 1,656,000 | $ 1,656,000 | $ 440,000 | ||||
8.25% Senior Notes Due January 2023 | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument, interest rate, stated percentage | 8.25% | 8.25% | 8.25% | ||||
Debt instrument, face amount | $ 250,000,000 | ||||||
Repayment of debt | $ 265,500,000 | ||||||
Loss on extinguishment of debt | 21,900,000 | ||||||
Redemption premium paid | $ 15,500,000 | ||||||
Term Loan Credit Facility, due February 2025 | |||||||
Line of Credit Facility [Line Items] | |||||||
Term loan principal amount | $ 415,000,000 | ||||||
Installment payment as a percentage of principal | 1.00% | ||||||
Debt instrument, repricing premium | 1.00% | ||||||
Mandatory prepayment, percentage of certain asset sales | 50.00% | ||||||
Mandatory prepayment, percentage of annual excess cash flow | 50.00% | ||||||
Secured debt, percentage of capital stock held by foreign subsidiary | 65.00% | ||||||
Debt instrument, effective rate | 3.88% | 3.88% | |||||
Adjusted LIBOR floor rate (not less than) | 1.00% | ||||||
Revolving Credit Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Revolving loans outstanding | $ 0 | $ 0 | $ 0 | ||||
ABL Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Remaining borrowing capacity on line of credit | 141,100,000 | 141,100,000 | 140,000,000 | ||||
Line of credit outstanding | 8,900,000 | 8,900,000 | $ 10,000,000 | ||||
Minimum borrowing capacity for line of credit | $ 14,100,000 | $ 14,100,000 | |||||
Fixed charge coverage ratio | 3.56 | ||||||
ABL Facility | Revolving Credit Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 150,000,000 | ||||||
Base Rate | Term Loan Credit Facility, due February 2025 | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 1.00% | ||||||
London Interbank Offered Rate (LIBOR) | Term Loan Credit Facility, due February 2025 | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 2.00% | ||||||
Minimum | ABL Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Fixed charge coverage ratio | 1 | ||||||
Minimum | Base Rate | ABL Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 0.25% | ||||||
Minimum | London Interbank Offered Rate (LIBOR) | ABL Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 1.25% | ||||||
Maximum | Base Rate | ABL Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 0.75% | ||||||
Maximum | London Interbank Offered Rate (LIBOR) | ABL Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 1.75% | ||||||
Letter of Credit | ABL Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 30,000,000 | ||||||
Swingline Borrowings | ABL Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 20,000,000 | ||||||
Commitment Fee Percentage One | ABL Facility | Revolving Credit Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Unused commitment fee | 0.25% | ||||||
Commitment Fee Percentage Two | ABL Facility | Revolving Credit Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Unused commitment fee | 0.35% | ||||||
Leverage Ratio Target Achieved | Term Loan Credit Facility, due February 2025 | |||||||
Line of Credit Facility [Line Items] | |||||||
Mandatory prepayment, percentage of certain asset sales | 0.00% | ||||||
Mandatory prepayment, percentage of annual excess cash flow | 0.00% |
CD&R FUNDS (Details)
CD&R FUNDS (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 11, 2017 | Apr. 29, 2018 | Apr. 30, 2017 | Oct. 29, 2017 |
Class of Stock [Line Items] | ||||
Payments for repurchase of common stock | $ 46,705 | $ 3,533 | ||
CD&R Funds | ||||
Class of Stock [Line Items] | ||||
Ownership percentage | 34.50% | 43.80% | ||
Secondary Offering | CD&R Funds | ||||
Class of Stock [Line Items] | ||||
Common stock offered (in shares) | 7,150,000 | |||
Common stock price per share (in USD per share) | $ 19.36 | |||
Common stock repurchased (in shares) | 1,150,000 | |||
Payments for repurchase of common stock | $ 22,300 |
STOCK REPURCHASE PROGRAM (Detai
STOCK REPURCHASE PROGRAM (Details) - USD ($) | Dec. 11, 2017 | Apr. 29, 2018 | Apr. 30, 2017 | Mar. 07, 2018 | Oct. 10, 2017 | Sep. 08, 2016 |
Class of Stock [Line Items] | ||||||
Purchases of treasury stock | $ 46,705,000 | $ 3,533,000 | ||||
Available for stock repurchases | 55,600,000 | |||||
Retirement of treasury stock | $ 0 | |||||
Shares withheld to satisfy minimum tax withholding obligations | 200,000 | |||||
2016 Stock Repurchase Program | ||||||
Class of Stock [Line Items] | ||||||
Authorized stock repurchase amount | $ 50,000,000 | |||||
2017 Stock Repurchase Plan | ||||||
Class of Stock [Line Items] | ||||||
Authorized stock repurchase amount | $ 50,000,000 | $ 50,000,000 | ||||
Treasury stock purchases (in shares) | 2,700,000 | |||||
Purchases of treasury stock | $ 46,700,000 | |||||
Treasury stock retired (in shares) | 2,700,000 | |||||
CD&R Funds | Secondary Offering | ||||||
Class of Stock [Line Items] | ||||||
Treasury stock purchases (in shares) | 1,150,000 | |||||
Purchases of treasury stock | $ 22,300,000 | |||||
CD&R Funds | Secondary Offering | 2017 Stock Repurchase Plan | ||||||
Class of Stock [Line Items] | ||||||
Treasury stock purchases (in shares) | 1,150,000 | |||||
Purchases of treasury stock | $ 22,300,000 | |||||
Additional Paid-in Capital | ||||||
Class of Stock [Line Items] | ||||||
Retirement of treasury stock | 51,286,000 | |||||
Additional Paid-in Capital | 2017 Stock Repurchase Plan | ||||||
Class of Stock [Line Items] | ||||||
Retirement of treasury stock | 46,700,000 | |||||
Retirement of treasury stock previously withheld | $ 4,600,000 | |||||
Treasury Stock | ||||||
Class of Stock [Line Items] | ||||||
Treasury stock purchases (in shares) | 2,917,034 | |||||
Treasury stock retired (in shares) | (2,916,930) | |||||
Retirement of treasury stock | $ (51,315,000) | |||||
Treasury Stock | 2017 Stock Repurchase Plan | ||||||
Class of Stock [Line Items] | ||||||
Retirement of treasury stock | (46,700,000) | |||||
Retirement of treasury stock previously withheld | $ (4,600,000) |
FAIR VALUE OF FINANCIAL INSTR52
FAIR VALUE OF FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Schedule of Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Apr. 29, 2018 | Oct. 29, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long term debt, carrying amount | $ 408,957 | $ 387,290 |
Term Loan Credit Facility, due February 2025 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long term debt, carrying amount | 415,000 | 0 |
Long-term debt, fair value | 415,519 | 0 |
Credit Agreement, due June 2022 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long term debt, carrying amount | 0 | 144,147 |
Long-term debt, fair value | 0 | $ 144,147 |
8.25% senior notes, due January 2023 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, interest rate, stated percentage | 8.25% | |
Long term debt, carrying amount | 0 | $ 250,000 |
Long-term debt, fair value | $ 0 | $ 267,500 |
FAIR VALUE OF FINANCIAL INSTR53
FAIR VALUE OF FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Fair Value by Level (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Apr. 29, 2018 | Apr. 30, 2017 | Apr. 29, 2018 | Apr. 30, 2017 | Oct. 29, 2017 | |
Assets: | |||||
Fair value of assets on a recurring basis | $ 6,332 | $ 6,332 | $ 6,481 | ||
Liabilities: | |||||
Fair value of liabilities on a recurring basis | 5,310 | 5,310 | 4,923 | ||
Trading securities, unrealized holding gain (loss) | (200) | $ 200 | 100 | $ (300) | |
Level 1 | |||||
Assets: | |||||
Fair value of assets on a recurring basis | 4,811 | 4,811 | 4,935 | ||
Liabilities: | |||||
Fair value of liabilities on a recurring basis | 0 | 0 | 0 | ||
Level 2 | |||||
Assets: | |||||
Fair value of assets on a recurring basis | 1,521 | 1,521 | 1,546 | ||
Liabilities: | |||||
Fair value of liabilities on a recurring basis | 5,310 | 5,310 | 4,923 | ||
Level 3 | |||||
Assets: | |||||
Fair value of assets on a recurring basis | 0 | 0 | 0 | ||
Liabilities: | |||||
Fair value of liabilities on a recurring basis | 0 | 0 | 0 | ||
Deferred compensation plan liability | |||||
Liabilities: | |||||
Fair value of liabilities on a recurring basis | 5,310 | 5,310 | 4,923 | ||
Deferred compensation plan liability | Level 1 | |||||
Liabilities: | |||||
Fair value of liabilities on a recurring basis | 0 | 0 | 0 | ||
Deferred compensation plan liability | Level 2 | |||||
Liabilities: | |||||
Fair value of liabilities on a recurring basis | 5,310 | 5,310 | 4,923 | ||
Deferred compensation plan liability | Level 3 | |||||
Liabilities: | |||||
Fair value of liabilities on a recurring basis | 0 | 0 | 0 | ||
Total short-term investments in deferred compensation plan | |||||
Assets: | |||||
Fair value of assets on a recurring basis | 6,332 | 6,332 | 6,481 | ||
Total short-term investments in deferred compensation plan | Level 1 | |||||
Assets: | |||||
Fair value of assets on a recurring basis | 4,811 | 4,811 | 4,935 | ||
Total short-term investments in deferred compensation plan | Level 2 | |||||
Assets: | |||||
Fair value of assets on a recurring basis | 1,521 | 1,521 | 1,546 | ||
Total short-term investments in deferred compensation plan | Level 3 | |||||
Assets: | |||||
Fair value of assets on a recurring basis | 0 | 0 | 0 | ||
Money market | |||||
Assets: | |||||
Fair value of assets on a recurring basis | 790 | 790 | 1,114 | ||
Money market | Level 1 | |||||
Assets: | |||||
Fair value of assets on a recurring basis | 790 | 790 | 1,114 | ||
Money market | Level 2 | |||||
Assets: | |||||
Fair value of assets on a recurring basis | 0 | 0 | 0 | ||
Money market | Level 3 | |||||
Assets: | |||||
Fair value of assets on a recurring basis | 0 | 0 | 0 | ||
Mutual funds – Growth | |||||
Assets: | |||||
Fair value of assets on a recurring basis | 1,057 | 1,057 | 958 | ||
Mutual funds – Growth | Level 1 | |||||
Assets: | |||||
Fair value of assets on a recurring basis | 1,057 | 1,057 | 958 | ||
Mutual funds – Growth | Level 2 | |||||
Assets: | |||||
Fair value of assets on a recurring basis | 0 | 0 | 0 | ||
Mutual funds – Growth | Level 3 | |||||
Assets: | |||||
Fair value of assets on a recurring basis | 0 | 0 | 0 | ||
Mutual funds – Blend | |||||
Assets: | |||||
Fair value of assets on a recurring basis | 2,018 | 2,018 | 1,948 | ||
Mutual funds – Blend | Level 1 | |||||
Assets: | |||||
Fair value of assets on a recurring basis | 2,018 | 2,018 | 1,948 | ||
Mutual funds – Blend | Level 2 | |||||
Assets: | |||||
Fair value of assets on a recurring basis | 0 | 0 | 0 | ||
Mutual funds – Blend | Level 3 | |||||
Assets: | |||||
Fair value of assets on a recurring basis | 0 | 0 | 0 | ||
Mutual funds – Foreign blend | |||||
Assets: | |||||
Fair value of assets on a recurring basis | 946 | 946 | 915 | ||
Mutual funds – Foreign blend | Level 1 | |||||
Assets: | |||||
Fair value of assets on a recurring basis | 946 | 946 | 915 | ||
Mutual funds – Foreign blend | Level 2 | |||||
Assets: | |||||
Fair value of assets on a recurring basis | 0 | 0 | 0 | ||
Mutual funds – Foreign blend | Level 3 | |||||
Assets: | |||||
Fair value of assets on a recurring basis | 0 | 0 | 0 | ||
Mutual funds – Fixed income | |||||
Assets: | |||||
Fair value of assets on a recurring basis | 1,521 | 1,521 | 1,546 | ||
Mutual funds – Fixed income | Level 1 | |||||
Assets: | |||||
Fair value of assets on a recurring basis | 0 | 0 | 0 | ||
Mutual funds – Fixed income | Level 2 | |||||
Assets: | |||||
Fair value of assets on a recurring basis | 1,521 | 1,521 | 1,546 | ||
Mutual funds – Fixed income | Level 3 | |||||
Assets: | |||||
Fair value of assets on a recurring basis | $ 0 | $ 0 | $ 0 |
INCOME TAXES - Schedule of Eff
INCOME TAXES - Schedule of Effective Income Tax Rate Reconciliation (Details) | 3 Months Ended | 6 Months Ended | ||
Apr. 29, 2018 | Apr. 30, 2017 | Apr. 29, 2018 | Apr. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Statutory federal income tax rate | 23.30% | 35.00% | 23.30% | 35.00% |
State income taxes | 3.40% | 3.80% | 3.70% | 3.80% |
Domestic production activities deduction | (1.50%) | (3.20%) | (1.10%) | (3.20%) |
Non-deductible expenses | 0.70% | 0.90% | 0.90% | 0.90% |
Tax credits | (0.60%) | (0.90%) | (0.80%) | (0.90%) |
China valuation allowance | 0.00% | (0.50%) | (0.90%) | (0.10%) |
Revaluation of U.S. deferred income tax due to statutory rate reduction | 0.00% | 0.00% | 74.70% | 0.00% |
One-time repatriation tax on foreign earnings | 0.00% | 0.00% | (51.60%) | 0.00% |
Other | 1.50% | (1.50%) | 20.70% | (1.30%) |
Effective tax rate | 26.80% | 33.60% | 68.90% | 34.20% |
INCOME TAXES - Narrative (Deta
INCOME TAXES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Apr. 29, 2018 | Jan. 28, 2018 | Apr. 30, 2017 | Apr. 29, 2018 | Apr. 30, 2017 | Oct. 28, 2018 | |
Schedule Of Income Tax [Line Items] | ||||||
Effective tax rate | 26.80% | 33.60% | 68.90% | 34.20% | ||
Tax Act, estimated net income tax benefit | $ 0.3 | $ 0.3 | ||||
Tax Act, estimated benefit from remeasurement of deferred tax liability | 1 | 1 | ||||
Tax Act, tax expense on repatriated foreign earnings | $ 0.7 | 0.7 | ||||
Tax Act, one-time repatriation tax | $ 2.1 | |||||
Scenario, forecast | ||||||
Schedule Of Income Tax [Line Items] | ||||||
Effective tax rate | 23.30% |
OPERATING SEGMENTS (Details)
OPERATING SEGMENTS (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Apr. 29, 2018USD ($) | Jan. 28, 2018operating_segment | Apr. 30, 2017USD ($) | Apr. 29, 2018USD ($)operating_segment | Apr. 30, 2017USD ($) | Oct. 29, 2017USD ($) | |
Segment Reporting Information [Line Items] | ||||||
Number of operating segments | operating_segment | 4 | 4 | ||||
Total net sales | $ 457,069 | $ 420,464 | $ 878,418 | $ 812,167 | ||
Total external net sales | 457,069 | 420,464 | 878,418 | 812,167 | ||
Total operating income | 18,956 | 32,472 | 31,854 | 42,358 | ||
Unallocated other expense, net | (26,722) | (6,892) | (33,253) | (13,463) | ||
Income (loss) before income taxes | (7,766) | 25,580 | (1,399) | 28,895 | ||
Total assets | 1,006,607 | 1,006,607 | $ 1,031,112 | |||
Operating Segments | Engineered Building Systems | ||||||
Segment Reporting Information [Line Items] | ||||||
Total net sales | 167,240 | 162,624 | 324,204 | 313,887 | ||
Total external net sales | 157,136 | 154,456 | 305,424 | 299,477 | ||
Total operating income | 9,271 | 6,894 | 17,534 | 13,397 | ||
Total assets | 205,839 | 205,839 | 195,426 | |||
Operating Segments | Metal Components | ||||||
Segment Reporting Information [Line Items] | ||||||
Total net sales | 168,456 | 154,895 | 315,288 | 289,068 | ||
Total external net sales | 147,661 | 133,290 | 275,189 | 248,847 | ||
Total operating income | 22,082 | 19,997 | 39,171 | 32,373 | ||
Total assets | 192,958 | 192,958 | 186,369 | |||
Operating Segments | Insulated Metal Panels | ||||||
Segment Reporting Information [Line Items] | ||||||
Total net sales | 113,413 | 102,937 | 224,207 | 198,132 | ||
Total external net sales | 99,792 | 86,773 | 197,305 | 169,214 | ||
Total operating income | 1,540 | 19,377 | 8,611 | 21,569 | ||
Total assets | 368,363 | 368,363 | 380,308 | |||
Operating Segments | Metal Coil Coating | ||||||
Segment Reporting Information [Line Items] | ||||||
Total net sales | 95,190 | 86,729 | 183,533 | 175,069 | ||
Total external net sales | 52,480 | 45,945 | 100,500 | 94,629 | ||
Total operating income | 7,129 | 6,227 | 12,505 | 12,933 | ||
Total assets | 176,837 | 176,837 | 175,046 | |||
Intersegment Eliminations | ||||||
Segment Reporting Information [Line Items] | ||||||
Total net sales | (87,230) | (86,721) | (168,814) | (163,989) | ||
Corporate | ||||||
Segment Reporting Information [Line Items] | ||||||
Total operating income | (21,066) | $ (20,023) | (45,967) | $ (37,914) | ||
Total assets | $ 62,610 | $ 62,610 | $ 93,963 |