Cover
Cover - shares | 9 Months Ended | |
Jul. 31, 2020 | Sep. 04, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jul. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 0-21964 | |
Entity Registrant Name | SHILOH INDUSTRIES, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 51-0347683 | |
Entity Address, Address Line One | 880 Steel Drive | |
Entity Address, City or Town | Valley City | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 44280 | |
City Area Code | 330 | |
Local Phone Number | 558-2600 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | SHLO | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 24,216,512 | |
Current Fiscal Year End Date | --10-31 | |
Entity Central Index Key | 0000904979 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 31, 2020 | Oct. 31, 2019 |
ASSETS | ||
Cash and cash equivalents | $ 30,262 | $ 14,320 |
Accounts receivable, net | 142,899 | 172,468 |
Related-party accounts receivable | 605 | 1,477 |
Prepaid income taxes | 2,569 | 1,853 |
Inventories, net | 54,283 | 63,547 |
Prepaid expenses | 5,943 | 8,980 |
Other current assets | 21,718 | 13,354 |
Total current assets | 258,279 | 275,999 |
Property, plant and equipment, net | 203,047 | 328,026 |
Goodwill | 0 | 22,395 |
Intangible assets, net | 6,876 | 13,025 |
Deferred income taxes | 5,258 | 5,169 |
Operating Lease, Right-of-Use Asset | 51,378 | 0 |
Other assets | 5,232 | 7,077 |
Total assets | 530,070 | 651,691 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Current debt | 324,779 | 1,975 |
Accounts payable | 100,293 | 155,754 |
Operating Lease, Liability, Current | 7,545 | 0 |
Other accrued expenses | 49,947 | 50,093 |
Accrued income taxes | 92 | 316 |
Total current liabilities | 482,656 | 208,138 |
Long-term debt | 0 | 248,695 |
Long-term benefit liabilities | 23,442 | 24,147 |
Deferred income taxes | 841 | 798 |
Finance Lease, Liability, Noncurrent | 43,833 | 0 |
Other liabilities | 1,178 | 2,399 |
Total liabilities | 551,950 | 484,177 |
Stockholders’ equity: | ||
Preferred stock, $0.01 per share; 5,000,000 shares authorized; no shares issued and outstanding at July 31, 2020 and October 31, 2019, respectively | 0 | 0 |
Common stock, par value $0.01 per share; 75,000,000 shares authorized at July 31, 2020 and October 31, 2019; 24,308,119 and 23,790,258 shares issued and outstanding at July 31, 2020 and October 31, 2019, respectively | 243 | 238 |
Paid-in capital | 117,815 | 116,436 |
Retained earnings | (83,656) | 115,866 |
Accumulated other comprehensive loss, net | (56,282) | (65,026) |
Total stockholders’ equity | (21,880) | 167,514 |
Total liabilities and stockholders’ equity | $ 530,070 | $ 651,691 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets - Parentheticals - $ / shares | Oct. 31, 2018 | Oct. 31, 2017 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 75,000,000 | 50,000,000 |
Common stock, shares issued | 24,308,119 | 23,790,258 |
Common Stock, Shares, Outstanding | 23,799,035 | 23,172,792 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | |
Income Statement [Abstract] | ||||
Net revenues | $ 155,367 | $ 263,445 | $ 556,781 | $ 795,748 |
Cost of sales | 148,335 | 239,857 | 530,986 | 729,790 |
Gross profit | 7,032 | 23,588 | 25,795 | 65,958 |
Selling, general & administrative expenses | 25,165 | 18,105 | 58,059 | 51,069 |
Amortization of intangible assets | 514 | 518 | 1,538 | 1,558 |
Asset impairment, net | 109,633 | 0 | 134,104 | 0 |
Restructuring | 2,196 | 3,905 | 13,397 | 11,371 |
Operating income (loss) | (130,476) | 1,060 | (181,303) | 1,960 |
Interest expense | 5,379 | 4,633 | 14,362 | 11,836 |
Interest income | (5) | (4) | (14) | (10) |
Other (income) expense, net | 1,875 | 113 | 2,221 | (959) |
Loss before income taxes | (137,725) | (3,682) | (197,872) | (8,907) |
Provision (benefit) for income taxes | (591) | (973) | 1,650 | (2,612) |
Net loss | $ (137,134) | $ (2,709) | $ (199,522) | $ (6,295) |
Loss per share: | ||||
Basic loss per share | $ (5.76) | $ (0.11) | $ (8.40) | $ (0.27) |
Basic weighted average number of common shares | 23,824 | 23,557 | 23,754 | 23,486 |
Diluted loss per share | $ (5.76) | $ (0.11) | $ (8.40) | $ (0.27) |
Diluted weighted average number of common shares | 23,824 | 23,557 | 23,754 | 23,486 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (137,134) | $ (2,709) | $ (199,522) | $ (6,295) |
Defined benefit pension plans & other post-retirement benefits | ||||
Amortization of net actuarial loss | 376 | 289 | 1,128 | 865 |
Income tax (benefit) | (86) | (66) | (258) | (198) |
Total defined benefit pension plans & other post-retirement benefits, net of tax | 290 | 223 | 870 | 667 |
Marketable securities | ||||
Realized gain | 0 | 0 | 0 | 18 |
Total marketable securities, net of tax | 0 | 0 | 0 | 18 |
Derivatives and hedging | ||||
Unrealized loss on interest rate swap agreements | (10) | (301) | (368) | (1,030) |
Income tax benefit (provision) | (62) | 58 | (60) | 195 |
Reclassification adjustments for settlement of derivatives included in net income (loss) | 283 | 51 | 634 | 181 |
Change in fair value of derivative instruments, net of tax | 211 | (192) | 206 | (654) |
Foreign currency translation adjustments | ||||
Foreign currency translation gain (loss) | 13,671 | (1,940) | 7,668 | (3,713) |
Unrealized gain (loss) on foreign currency translation | 13,671 | (1,940) | 7,668 | (3,713) |
Comprehensive loss, net | $ (122,962) | $ (4,618) | $ (190,778) | $ (9,977) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (199,522) | $ (6,295) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 36,395 | 35,010 |
Asset impairment, net | 134,104 | 0 |
Restructuring | 404 | 1,610 |
Amortization of deferred financing costs | 1,572 | 1,033 |
Deferred income taxes | 2,044 | 232 |
Stock-based compensation expense | 1,386 | 1,576 |
Loss (gain) on sale of assets | 986 | (3,562) |
Loss on marketable securities | 29 | |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 31,054 | 30,213 |
Inventories, net | 9,488 | 3,900 |
Prepaids and other assets | (1,695) | (1,564) |
Payables and other liabilities | (55,496) | (30,965) |
Prepaid and accrued income taxes | (937) | (6,863) |
Net cash (used in) provided by operating activities | (40,217) | 24,354 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (23,501) | (48,643) |
Derivative settlements | 0 | 5,869 |
Proceeds from sale of assets | 3,274 | 12,339 |
Net cash used for investing activities | (20,227) | (30,435) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Payment of capital leases | (96) | (495) |
Proceeds from long-term borrowings | 152,900 | 223,400 |
Repayments of long-term borrowings | (78,700) | (220,000) |
Payment of deferred financing costs | (98) | (1,948) |
Net cash provided by financing activities | 74,006 | 957 |
Effect of foreign currency exchange rate fluctuations on cash | 2,380 | 217 |
Net increase (decrease) in cash and cash equivalents | 15,942 | (4,907) |
Cash and cash equivalents at beginning of period | 14,320 | 16,843 |
Cash and cash equivalents at end of period | $ 30,262 | $ 11,936 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Beginning Balance at Oct. 31, 2018 | $ 199,522 | $ 234 | $ 114,405 | $ 135,813 | $ (50,930) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | (6,295) | 0 | 0 | (6,295) | 0 |
Other comprehensive income, net of tax | (3,682) | 0 | 0 | 0 | (3,682) |
Restricted stock and exercise of stock options | 0 | 4 | (4) | 0 | 0 |
Accounts Receivable, Credit Loss Expense (Reversal) | 329 | ||||
Stock-based compensation cost | (1,576) | 0 | (1,576) | 0 | 0 |
Ending Balance at Jul. 31, 2019 | 191,121 | 238 | 115,977 | 129,518 | (54,612) |
Beginning Balance at Apr. 30, 2019 | 195,153 | 238 | 115,391 | 132,227 | (52,703) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | (2,709) | 0 | 0 | (2,709) | 0 |
Other comprehensive income, net of tax | (1,909) | 0 | 0 | 0 | (1,909) |
Accounts Receivable, Credit Loss Expense (Reversal) | 3 | ||||
Stock-based compensation cost | (586) | 0 | (586) | 0 | 0 |
Ending Balance at Jul. 31, 2019 | 191,121 | 238 | 115,977 | 129,518 | (54,612) |
Beginning Balance at Oct. 31, 2019 | 167,514 | 238 | 116,436 | 115,866 | (65,026) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | (199,522) | 0 | 0 | (199,522) | 0 |
Other comprehensive income, net of tax | 8,744 | 0 | 0 | 0 | 8,744 |
Restricted stock and exercise of stock options | (2) | 5 | (7) | 0 | 0 |
Accounts Receivable, Credit Loss Expense (Reversal) | 2,535 | ||||
Stock-based compensation cost | (1,386) | 0 | (1,386) | 0 | 0 |
Ending Balance at Jul. 31, 2020 | (21,880) | 243 | 117,815 | (83,656) | (56,282) |
Beginning Balance at Apr. 30, 2020 | 100,818 | 243 | 117,551 | 53,478 | (70,454) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | (137,134) | 0 | 0 | (137,134) | 0 |
Other comprehensive income, net of tax | 14,172 | 0 | 0 | 0 | 14,172 |
Accounts Receivable, Credit Loss Expense (Reversal) | 1,993 | ||||
Stock-based compensation cost | (264) | 0 | (264) | 0 | 0 |
Ending Balance at Jul. 31, 2020 | $ (21,880) | $ 243 | $ 117,815 | $ (83,656) | $ (56,282) |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Jul. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Basis of Presentation, Impact of COVID-19 and Going Concern The condensed consolidated financial statements have been prepared for Shiloh Industries, Inc. and its subsidiaries (collectively referred to as the "Company," "Shiloh Industries," "us," "our" or "we"), without audit, and pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"). The information furnished in the condensed consolidated financial statements includes normal recurring adjustments and reflects all adjustments, which are, in the opinion of management, necessary for a fair presentation of such financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States ("GAAP") have been condensed or omitted pursuant to the rules and regulations of the SEC. Although we believe that the disclosures are adequate to make the information presented not misleading, these condensed consolidated financial statements should be read in conjunction with the audited financial statements and the notes thereto included in our Annual Report on Form 10-K for the fiscal year ended October 31, 2019. Revenues and operating results for the three and nine months ended July 31, 2020 are not necessarily indicative of the results to be expected for the full year. Impact of Covid-19 In December 2019, a novel strain of coronavirus (“COVID-19”) was reported to have surfaced in Wuhan, China, which has spread throughout the world, including the United States. On January 30, 2020, the World Health Organization declared the outbreak of COVID-19 a “Public Health Emergency of International Concern,” and on March 11, 2020, it characterized the outbreak as a “pandemic.” The Company’s manufacturing operations were initially impacted at the beginning of our second quarter by COVID-19 in Asia and the last half of the quarter in Europe and North America. The impact of COVID-19 developments and uncertainty with respect to the economic effects of the pandemic has introduced significant volatility in the financial markets and is having a widespread adverse effect on the automotive industry, including reductions in consumer demand and OEM automotive production. As a result, COVID-19 has impacted the Company's business globally. Many OEMs suspended manufacturing operations, particularly in North America, Europe and Asia, on a temporary basis due to market conditions and matters associated with COVID-19. Our operations in China were closed for all of February and part of March 2020. In July 2020, we are operating at levels near full capacity in China. Our operations in North America and Europe, for the most part, closed down during March and April 2020. Beginning near the end of May and the beginning of June, our operations in Europe and North America, respectively, began fulfilling and shipping orders to our customers. Due to the safety protocols established, we have been able to restart production, although we have experienced normal start-up operational issues in some of our plants related to being shut down for an extended period of time. Going Concern The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which presumes that we will be able to realize our assets and discharge our liabilities in the normal course of business as they come due. As of July 31, 2020, the Company has significant indebtedness due within the next twelve months and cash flow from operations has not been sufficient to meet the Company’s liquidity demands. As a result, as described in Note 21, on August 30, 2020 (the “Petition Date”), the Company and its U.S. subsidiaries (collectively with the Company, the “Debtors”) each filed a voluntary petition for relief (the “Bankruptcy Petitions,” and the cases commenced thereby, the “Chapter 11 Cases”) under Chapter 11 of the United States Bankruptcy Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”). These matters raise substantial doubt about the Company’s ability to continue as a going concern. Financial information in this Quarterly Report on Form 10-Q does not reflect the adjustments to the carrying values of assets and liabilities and the reported expenses and balance sheet classifications that would be necessary if we were unable to realize our assets and settle our liabilities as a going concern in the normal course of operations. Such adjustments could be material. Our future plans, including those in connection with the Chapter 11 filings, are not yet finalized, fully executed or approved by the Bankruptcy Court, and therefore cannot be deemed probable of mitigating this substantial doubt within 12 months of the date of issuance of these financial statements. |
Recent Accounting Standards
Recent Accounting Standards | 6 Months Ended |
Apr. 30, 2020 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Standards | Recent Accounting Standards Recently Issued Accounting Standards: ASU 2020-04 Reference Rate Reform (Topic 848) - On March 12, 2020, the Financial Accounting Standards Board (FASB) issued this guidance that provides optional expedients and exceptions that are intended to ease the burden of updating contracts to contain a new reference rate due to the discontinuation of the London Inter-Bank Offered Rate (LIBOR). This guidance is available immediately and may be implemented in any period prior to the guidance expiration on December 31, 2022. We are currently assessing which of our various contracts will require an update for a new reference rate, and will determine the timing for our implementation of this guidance at the completion of that analysis. ASU 2019-12 Income Taxes: Simplifying the Accounting for Income Taxes - This Accounting Standards Update removes specific exceptions to the general principles in Topic 740 in Generally Accepted Accounting Principles (GAAP). It eliminates the need for an organization to analyze whether the following apply in a given period: (1) Exception to the incremental approach for intraperiod tax allocation, (2) Exception accounting for basis differences when there are ownership changes in foreign investments, (3) Exception to the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment and (4) Exception in interim period income tax accounting for year-to-date losses that exceed anticipated losses. Also, this amendment updates the following: (1) Making minor Codification improvements for income taxes related to employee stock ownership plans and investments in qualified affordable housing projects accounted for using the equity method, (2) Requiring that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date and (3) Requiring that an entity evaluate when a step up in the tax basis of goodwill should be considered part of the business combination in which the book goodwill was originally recognized and when it should be considered a separate transaction. We expect to adopt this guidance on November 1, 2021 and we are currently assessing the impact that this standard will have on our consolidated financial statements. ASU 2018-14 Compensation-Retirements Benefits-Defined Benefit Plans - This ASU amendment adds the following to disclosure requirements: (1) The weighted-average interest crediting rates used in the entity’s cash balance pension plans and other similar plans, (2) A narrative description of the reasons for significant gains and losses affecting the benefit obligation for the period, (3) An explanation of any other significant changes in the benefit obligation or plan assets that are not otherwise apparent in the other disclosures required by Accounting Standards Codification ("ASC") Topic 715, Compensation-Retirement Benefits. Also, this amendment clarifies the guidance in ASC 715-20-50-3 on defined benefit plans to require disclosure of (1) the projected benefit obligation (PBO) and fair value of plan assets for pension plans with PBOs in excess of plan assets (the same disclosure with reference to the accumulated postretirement benefit obligation rather than the PBO is required for other postretirement benefit plans) and (2) the accumulated benefit obligation (ABO) and fair value of plan assets for pension plans with ABOs in excess of plan assets. We expect to adopt this guidance on November 1, 2021 and we are currently assessing the impact that this standard will have on our consolidated financial statements. ASU 2016-13 Measurement of Credit Losses on Financial Instruments - The amendments change the impairment model for financial assets measured at amortized cost and available for sale equity securities. This new model will apply to instruments such as loans, held-to-maturity debt securities, loan commitments (including lines of credit), financial guarantees accounted for under ASC 460, net investments in leases, reinsurance and trade receivables. This model will result in an earlier recognition of allowances for losses through the establishment of an allowance account. The estimate of expected credit losses should consider historical and current information, and the reasonable and supportable forecasts of future events and circumstances, as well as estimates of prepayments. We expect to adopt this guidance on November 1, 2020 and we are currently assessing the impact that this standard will have on our consolidated financial statements and disclosures. ASU 2018-15 Internal-Use Software - The amendments apply to the accounting for implementation, setup and other upfront costs (collectively referred to as implementation costs) for entities that are a customer in a hosting arrangement and align the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The amendments also require customers to expense capitalized implementation costs over the term of the hosting arrangement and in the same line on the income statement as the fees associated with the hosting service and payments for the capitalized implementation costs in the statement of cash flows in the same manner as payments made for fees associated with the hosting service. We expect to adopt this guidance on November 1, 2020 and we are currently assessing the impact that this standard will have on our consolidated financial statements and disclosures. Recently Adopted Accounting Standards: ASU 2016-02 Leases - This amendment requires lessees to recognize a lease liability and a right-of-use asset on the balance sheet and aligns many of the underlying principles of the new lessor model with those in ASC Topic 606, Revenue from Contracts with Customers. The standard requires a modified retrospective or current period transition approach for capital and operating leases existing at or entered into after the beginning of the earliest comparative period presented in the financial statements, but it does not require transition accounting for leases that expire prior to the date of initial adoption. In January 2018, the FASB issued an amendment to ASC Topic 842 which permits companies to elect an optional transition practical expedient to not evaluate existing land easements under the new standard if the land easements were not previously accounted for under existing lease guidance. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842 which clarifies certain areas within ASU 2016-02. ASU 2018-11 Targeted Improvements to Topic 842, Leases . This amendment provides entities with an additional (and optional) transition method to adopt the new leases standard. Under this new transition method, an entity initially applies the new leases standard at the adoption date. The Company adopted this guidance on November 1, 2019. The Company has applied ASU 2016-02 and all related amendments ("ASC 842") using the current period adjustment method. The Company did not record any adjustments to the opening balance of retained earnings as of November 1, 2019. Therefore, the comparative information has not been adjusted and continues to be presented under prior lease guidance. In addition, the Company elected the following package of practical expedients on a consistent basis permitting entities not to reassess: (1) whether any expired or existing contract are/or contain a lease; (2) lease classification for any expired or existing leases; (3) whether initial direct costs for any expired or existing leases qualify for capitalization under the new amended guidance. As a result, as of November 1, 2019, we recorded right-of-use ("ROU") assets of $50,540 for operating leases and $2,000 for financing leases. This standard did not have a material impact on the Company's condensed consolidated statement of operations or statement of cash flows. The Company determines if an arrangement is a lease at inception. Operating leases are included in ROU assets and the Company's short-term and long-term operating lease liability on our Condensed Consolidated Balance Sheets. Finance leases are included in other assets, other current liabilities, and other non-current liabilities on our Condensed Consolidated Balance Sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the term of the lease. The Company includes options to extend or terminate the lease when it is reasonably certain that we will exercise that option. As most of the Company's leases do not provide an implicitly stated rate within the contract, we use our incremental borrowing rate based on third party information available at the commencement date in determining the present value of lease payments. Lease expenses for lease payments on operating leases are recognized on a straight-line basis over the lease term. Additionally, the Company does not record a ROU asset or lease liability for leases with an expected lease term of 12 months or less. The Company has lease arrangements with lease and non-lease components, which are accounted for separately across the Company's portfolio of leases. The non-lease components consist of maintenance, insurance, taxes and other expenses, and are immaterial. The Company has exercised the land easement expedient and will continue to treat land leases under legacy GAAP provisions of ASC 840, Leases . If a modification or extension happens to a land lease, the Company will then treat the lease under the ASC 842 requirements. Current land leases are being recorded in other assets on the Company's Condensed Consolidated Balance Sheets. |
Revenue
Revenue | 6 Months Ended |
Apr. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenue The Company manufactures and sells products, primarily to original equipment manufacturers ("OEMs") and to OEMs through Tier 1 suppliers. We enter into contracts with customers that create enforceable rights and obligations for the sale of those products. While certain production is provided under awarded multi-year programs, these programs do not contain any commitment to volume by the customer. Individual customer volume releases, blanket purchase orders, supply agreements, terms and conditions represent the contract with the customer. Volume releases are limited to near-term customer requirements generally with delivery periods within a few weeks. We do not have contract assets or liabilities as defined under ASC 606, " Revenue from Contracts with Customers" . The Company participates in certain customers’ materials repurchase programs, under which we purchase materials directly from a customer’s designated supplier, for use in manufacturing products for that customer. We take delivery and title to such materials and bear the risk of loss and obsolescence. We invoice customers based upon negotiated selling prices, which inherently include a component for materials under such repurchase programs. We have risks and rewards of a principal, and as such, for transactions in which we participate in customers' materials resale programs, revenue is recognized on a gross basis for the entire amount, including the component for purchases under that customers' material resale programs. We provide customers with standard warranties customary in the industry that products will operate as intended or designed, which are not separate performance obligations under ASC 606. We do not provide customers with the right to a refund but provide for product replacement. Returns or refunds for nonconforming products are not separate performance obligations applicable to the Company's contract arrangements with customers. We continue to include shipping and handling fees billed to customers in revenue, while including costs of shipping and handling in costs of sales as a fulfillment cost. Taxes collected from customers are excluded from revenues and credited directly to obligations to the appropriate government agencies. Payment terms with customers are established based on industry and regional practices and do not exceed 180 days. Disaggregation of Net Revenues The following table summarizes revenue for the three and nine months ended July 31, 2020 and 2019: Net Revenues Three Months Ended July 31, Nine Months Ended July 31, Region: 2020 2019 2020 2019 North America $ 114,133 $ 203,920 $ 412,336 $ 606,872 Europe 34,696 61,685 131,672 194,883 Asia 13,188 3,529 30,595 10,877 Eliminations (6,650) (5,689) (17,822) (16,884) Total Company $ 155,367 $ 263,445 $ 556,781 $ 795,748 |
Leases
Leases | 6 Months Ended |
Apr. 30, 2020 | |
Leases [Abstract] | |
Leases | Leases The Company leases office space, manufacturing space, computer equipment and other equipment under non-cancellable lease arrangements. Additionally, some of the Company's real estate lease payments vary based on changes in the Consumer Price Index ("CPI"). These specific lease liabilities are not remeasured as a result of changes to the CPI and are recognized in the period in which the obligation for those payments was incurred. The Company's lease arrangements have lease terms that expire between the years 2020 and 2039. The Company has options to extend the terms of certain leases into future periods and for the options the Company is reasonably certain to exercise, the payments associated with these renewal periods have been included in the measurement of the lease liabilities and ROU assets. The Company's debt covenant requirements do not have any restrictions in terms of leasing arrangements on the Company or place any other restrictions on the Company. Operating lease expenses are classified as cost of products sold and operating expenses on the Condensed Consolidated Statement of Operations. The components of lease expense for the three and nine months ended July 31, 2020 are as follows: Lease cost Three Months Ended July 31, 2020 Nine Months Ended July 31, 2020 Finance lease expense Amortization of right-of-use asset $ 99 $ 427 Interest on lease liability 11 23 Total finance lease cost $ 110 $ 450 Operating lease expense Operating leases $ 3,032 $ 9,465 Short-term leases (1) 276 760 Total lease expense $ 3,308 $ 10,225 (1) Includes expenses for month-to-month equipment leases, which are classified as short-term as the Company is not reasonably certain to renew the lease term beyond a month. The weighted average remaining operating and finance lease terms and weighted average discount rates are as follows: July 31, 2020 Weighted average remaining lease term of operating leases (in years) 13.9 Weighted average discount rate of operating leases 6.44% Weighted average remaining lease term of finance leases (in years) 0.25 Weighted average discount rate of finance leases 4.57% Other supplemental cash flow information related to leases is as follows: Other Information Three Months Ended July 31, 2020 Nine Months Ended July 31, 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash outflows from finance leases $ 11 $ 23 Operating cash outflows from operating leases 1,879 6,118 Financing cash outflows from finance leases 294 495 Maturities of operating and finance lease liabilities as of July 31, 2020 are as follows: Years Ending October 31, 2020 (1) $ 2,955 2021 10,422 2022 8,444 2023 6,806 2024 4,934 Thereafter 40,562 Total lease payments 74,123 Less: imputed interest 20,866 Total lease liabilities (2) $ 53,257 (1) Excluding the nine months ended July 31, 2020. (2) Operating lease payments include $18,778 related to options to extend lease terms that are reasonably certain of being exercised. The aggregate amount of future minimum annual rental payments applicable to non-cancelable leases as of October 31, 2019 were as follows: Year Ending October 31, 2020 $ 12,040 2021 8,960 2022 5,102 2023 3,816 2024 2,717 Thereafter 10,513 Total $ 43,148 |
Leases | Leases The Company leases office space, manufacturing space, computer equipment and other equipment under non-cancellable lease arrangements. Additionally, some of the Company's real estate lease payments vary based on changes in the Consumer Price Index ("CPI"). These specific lease liabilities are not remeasured as a result of changes to the CPI and are recognized in the period in which the obligation for those payments was incurred. The Company's lease arrangements have lease terms that expire between the years 2020 and 2039. The Company has options to extend the terms of certain leases into future periods and for the options the Company is reasonably certain to exercise, the payments associated with these renewal periods have been included in the measurement of the lease liabilities and ROU assets. The Company's debt covenant requirements do not have any restrictions in terms of leasing arrangements on the Company or place any other restrictions on the Company. Operating lease expenses are classified as cost of products sold and operating expenses on the Condensed Consolidated Statement of Operations. The components of lease expense for the three and nine months ended July 31, 2020 are as follows: Lease cost Three Months Ended July 31, 2020 Nine Months Ended July 31, 2020 Finance lease expense Amortization of right-of-use asset $ 99 $ 427 Interest on lease liability 11 23 Total finance lease cost $ 110 $ 450 Operating lease expense Operating leases $ 3,032 $ 9,465 Short-term leases (1) 276 760 Total lease expense $ 3,308 $ 10,225 (1) Includes expenses for month-to-month equipment leases, which are classified as short-term as the Company is not reasonably certain to renew the lease term beyond a month. The weighted average remaining operating and finance lease terms and weighted average discount rates are as follows: July 31, 2020 Weighted average remaining lease term of operating leases (in years) 13.9 Weighted average discount rate of operating leases 6.44% Weighted average remaining lease term of finance leases (in years) 0.25 Weighted average discount rate of finance leases 4.57% Other supplemental cash flow information related to leases is as follows: Other Information Three Months Ended July 31, 2020 Nine Months Ended July 31, 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash outflows from finance leases $ 11 $ 23 Operating cash outflows from operating leases 1,879 6,118 Financing cash outflows from finance leases 294 495 Maturities of operating and finance lease liabilities as of July 31, 2020 are as follows: Years Ending October 31, 2020 (1) $ 2,955 2021 10,422 2022 8,444 2023 6,806 2024 4,934 Thereafter 40,562 Total lease payments 74,123 Less: imputed interest 20,866 Total lease liabilities (2) $ 53,257 (1) Excluding the nine months ended July 31, 2020. (2) Operating lease payments include $18,778 related to options to extend lease terms that are reasonably certain of being exercised. The aggregate amount of future minimum annual rental payments applicable to non-cancelable leases as of October 31, 2019 were as follows: Year Ending October 31, 2020 $ 12,040 2021 8,960 2022 5,102 2023 3,816 2024 2,717 Thereafter 10,513 Total $ 43,148 |
Leases | Leases The Company leases office space, manufacturing space, computer equipment and other equipment under non-cancellable lease arrangements. Additionally, some of the Company's real estate lease payments vary based on changes in the Consumer Price Index ("CPI"). These specific lease liabilities are not remeasured as a result of changes to the CPI and are recognized in the period in which the obligation for those payments was incurred. The Company's lease arrangements have lease terms that expire between the years 2020 and 2039. The Company has options to extend the terms of certain leases into future periods and for the options the Company is reasonably certain to exercise, the payments associated with these renewal periods have been included in the measurement of the lease liabilities and ROU assets. The Company's debt covenant requirements do not have any restrictions in terms of leasing arrangements on the Company or place any other restrictions on the Company. Operating lease expenses are classified as cost of products sold and operating expenses on the Condensed Consolidated Statement of Operations. The components of lease expense for the three and nine months ended July 31, 2020 are as follows: Lease cost Three Months Ended July 31, 2020 Nine Months Ended July 31, 2020 Finance lease expense Amortization of right-of-use asset $ 99 $ 427 Interest on lease liability 11 23 Total finance lease cost $ 110 $ 450 Operating lease expense Operating leases $ 3,032 $ 9,465 Short-term leases (1) 276 760 Total lease expense $ 3,308 $ 10,225 (1) Includes expenses for month-to-month equipment leases, which are classified as short-term as the Company is not reasonably certain to renew the lease term beyond a month. The weighted average remaining operating and finance lease terms and weighted average discount rates are as follows: July 31, 2020 Weighted average remaining lease term of operating leases (in years) 13.9 Weighted average discount rate of operating leases 6.44% Weighted average remaining lease term of finance leases (in years) 0.25 Weighted average discount rate of finance leases 4.57% Other supplemental cash flow information related to leases is as follows: Other Information Three Months Ended July 31, 2020 Nine Months Ended July 31, 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash outflows from finance leases $ 11 $ 23 Operating cash outflows from operating leases 1,879 6,118 Financing cash outflows from finance leases 294 495 Maturities of operating and finance lease liabilities as of July 31, 2020 are as follows: Years Ending October 31, 2020 (1) $ 2,955 2021 10,422 2022 8,444 2023 6,806 2024 4,934 Thereafter 40,562 Total lease payments 74,123 Less: imputed interest 20,866 Total lease liabilities (2) $ 53,257 (1) Excluding the nine months ended July 31, 2020. (2) Operating lease payments include $18,778 related to options to extend lease terms that are reasonably certain of being exercised. The aggregate amount of future minimum annual rental payments applicable to non-cancelable leases as of October 31, 2019 were as follows: Year Ending October 31, 2020 $ 12,040 2021 8,960 2022 5,102 2023 3,816 2024 2,717 Thereafter 10,513 Total $ 43,148 |
Accounts Receivable, Net
Accounts Receivable, Net | 6 Months Ended |
Apr. 30, 2020 | |
Accounts Receivable [Abstract] | |
Accounts Receivable, Net | Accounts Receivable, Net Accounts receivable, net is expected to be collected within one year and is net of an allowance for doubtful accounts in the amount of $1,147 and $884 at July 31, 2020 and October 31, 2019, respectively. We recognized bad debt expense of $1,993 and $2,535 for the three and nine months ended July 31, 2020 and recognized bad debt expense of $3 and $329 during the three and nine months ended July 31, 2019, in the condensed consolidated statement of operations. We continually monitor our exposure with our customers and additional consideration is given to individual accounts considering the COVID-19 market conditions in the automotive and commercial vehicle markets. As a part of our working capital management, the Company has entered into factoring agreements with third party financial institutions ("institutions") for the sale of certain accounts receivable, with and without recourse. The sale of the receivables is accounted for in accordance with ASC 860, Transfers and Servicing . Under that guidance, receivables are considered sold when they are transferred beyond the reach of the Company and its creditors, the purchaser has the right to pledge or exchange the receivables, and the Company has surrendered control over the transferred receivables. In addition, certain agreements address events and conditions which may obligate the Company to immediately repay to the institutions the outstanding purchase price of the receivables sold. The total amount of trade accounts receivable factored was $5,966 and $8,779 as of July 31, 2020 and October 31, 2019, respectively. As these sales of trade accounts receivable are with recourse, $4,578 and $9,188 were recorded in accounts payable as of July 31, 2020 and October 31, 2019, respectively. The cost of selling these receivables is dependent upon the number of days between the sale date of the receivables, the date the customer’s invoice is due and the interest rate. The expense associated with the sale of these receivables is recorded as a component of selling, general and administrative expense in the accompanying condensed consolidated statements of operations. As of July 31, 2020 and October 31, 2019, $3,235 and $2,538 of trade accounts receivable were subject to factoring without recourse, respectively. The amounts subject to factoring without recourse for the year 2020 have been included in the proceeds for net cash provided by operating activities in the consolidated statements of cash flows. The expense associated with the sale of the receivables is recorded as a component of selling, general and administrative expense in the accompanying condensed consolidated statements of operations. |
Related Party Receivables
Related Party Receivables | 6 Months Ended |
Apr. 30, 2020 | |
Related Party Receivables [Abstract] | |
Related Party Receivables | Related Party Receivables MTD Products Inc. and MTD Holdings LLC are affiliates of Oak Tree Holdings LLC, which is a greater than 5% beneficial owner of the Company's shares of Common Stock. Sales to MTD Products Inc. and its affiliates were $1,309 and $4,225 for the three and nine months ended July 31, 2020, respectively, and $1,322 and $5,521 for the three and nine months ended July 31, 2019, respectively. At July 31, 2020 and October 31, 2019, we had related party receivable balances of $605 and $1,477, respectively, due from MTD Products Inc. and its affiliates. |
Inventories, Net
Inventories, Net | 6 Months Ended |
Apr. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Inventories, Net Inventories, net consists of the following: July 31, 2020 October 31, 2019 Raw materials $ 22,512 $ 26,653 Work in process 20,558 21,369 Finished goods 18,860 19,470 Reserves (7,647) (3,945) Total inventories, net $ 54,283 $ 63,547 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Apr. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | Goodwill: In accordance with FASB ASC Topic 350, " Intangibles – Goodwill and Other ", goodwill must be reviewed for impairment annually, or more frequently if events and circumstances arise that suggest the asset may be impaired. We conduct our review for goodwill impairment on September 30 of each year. Goodwill impairment testing is performed at the reporting unit level. The fair value is compared to the carrying value including goodwill. If the carrying value exceeds the fair value, then goodwill impairment exists. The impact of COVID-19 developments and uncertainty with respect to the economic effects of the pandemic has introduced significant volatility in the financial markets and is having a widespread adverse effect on the automotive industry, including reductions in consumer demand and OEM automotive production. In response to the COVID-19 pandemic, our key customers temporarily closed nearly all their production facilities in North America, Europe and Asia (our primary markets) over the course of the quarter ended April 30, 2020. As a result, we concluded that an interim test of our goodwill was required. More specifically, the Company concluded that the following events and circumstances, in the aggregate, indicated that it was more likely than not that the carrying value of our North American reporting unit exceeded its fair value: (1) lower forecasted 2020 industry production volumes for North America, including those for our primary North American customers, due to OEM shutdowns to mitigate the spread of COVID-19 and subsequent reduced production levels over the remainder of the year, as compared to our prior production forecasts (including estimates used in our 2019 assessment) and (2) the volatility in financial markets that has lowered median North American automotive market multiples. Based on the results of our quantitative analysis, we recognized a non-cash goodwill impairment charge equal to the remaining goodwill balance of $21,971 since the carrying value exceeded the fair value of the North American reporting unit by more than the amount of the goodwill balance at April 30, 2020. We utilized both an income and a market approach, to determine the fair value of the North American reporting unit as part of our goodwill impairment assessment. The income approach is based on projected debt-free cash flow, which is discounted to the present value using discount factors that consider the timing and risk of cash flows. The discount rate used is the weighted average of an estimated cost of equity and of debt (“weighted average cost of capital”). The weighted average cost of capital is adjusted as necessary to reflect risk associated with the business of the North American reporting unit. Financial projections are based on estimated production volumes, product prices and expenses, including raw material cost, wages, energy and other expenses. Other significant assumptions include terminal value cash flow and growth rates, future capital expenditures and changes in future working capital requirements. The market approach is based on the observed share prices of comparable, publicly traded companies. The market approach fair value was determined by multiplying outstanding share capital by the associated market value of the Company’s stock at April 30, 2020. A considerable amount of management judgment and assumptions were required in performing the quantitative impairment test, principally related to determining the fair value of the reporting unit. The changes in the carrying amount of goodwill for the nine months ended July 31, 2020 are as follows: Balance October 31, 2019 $ 22,395 Impairment (21,971) Foreign currency translation (424) Balance July 31, 2020 $ — Intangible Assets: In accordance with FASB ASC Topic 360, "Property, Plant, and Equipment" (“ASC 360”), we are required to complete impairment testing whenever an event or changes in circumstances indicate the long-lived assets carrying value may not be recoverable. The long-lived assets consist principally of property, plant, equipment, and intangibles. Due to the circumstances surrounding the COVID-19 pandemic and decline in our business it was necessary to test our long-lived assets for impairment as of the interim date of July 31, 2020. In accordance with ASC 360, we tested long-lived assets for impairment at the asset group level for which the lowest level of independent cash flows can be identified. Based on the results of our quantitative analysis, an impairment charge of $4,858 and $104,775 were recorded to intangible assets and property, plant and equipment, respectively as of July 31, 2020. The changes in the carrying amount of finite-lived intangible assets for the nine months ended July 31, 2020 are as follows: Customer Relationships Developed Technology Trade Name Trademark Total Balance October 31, 2019 $ 8,977 $ 2,979 $ 1,008 $ 61 $ 13,025 Impairment (3,313) (1,148) (377) (20) (4,858) Amortization expense (998) (294) (93) (11) (1,396) Foreign currency translation 3 102 — — 105 Balance July 31, 2020 $ 4,669 $ 1,639 $ 538 $ 30 $ 6,876 Intangible assets are amortized on the straight-line method over their legal or estimated useful lives. The following summarizes the gross carrying value and accumulated amortization for each major class of intangible assets: July 31, 2020 Weighted Average Useful Life (years) Gross Carrying Value Net of Foreign Currency Accumulated Amortization Impairment Net Customer relationships 6.2 $ 17,564 $ (9,582) $ (3,313) $ 4,669 Developed technology 8.4 7,236 (4,449) (1,148) 1,639 Trade name 7.4 1,875 (960) (377) 538 Trademark 3.0 166 (116) (20) 30 $ 26,841 $ (15,107) $ (4,858) $ 6,876 Total amortization expense was $514 and $1,538 for the three and nine months ended July 31, 2020, respectively, and $518 and $1,558 for the three and nine months ended July 31, 2019, respectively. A favorable lease asset of $1,458 was acquired as part of the Brabant acquisitions in fiscal year 2018 with a 7-year useful life. Amortization expense for the three and nine months ended July 31, 2020 was $49 and $145, respectively, and is included within the amortization of intangible assets. A net balance of $909 is included within other assets for the favorable lease asset. Amortization expense related to intangible assets and the favorable lease asset is estimated to be as follows: Twelve Months Ended July 31, 2021 $ 1,299 2022 1,299 2023 1,299 2024 1,290 2025 1,070 Thereafter 1,528 $ 7,785 |
Financing Arrangements
Financing Arrangements | 6 Months Ended |
Apr. 30, 2020 | |
Debt Disclosure [Abstract] | |
Financing Arrangements [Text Block] | Financing Arrangements Debt consists of the following: July 31, October 31, 2019 Credit Agreement—interest rate of 6.01% at July 31, 2020 and 5.18% at October 31, 2019 $ 322,900 $ 248,695 Capital lease obligations 1,879 1,975 Total debt 324,779 250,670 Less: Current debt 324,779 1,975 Total long-term debt $ — $ 248,695 At July 31, 2020, we had total debt, excluding capital leases, of $322,900, consisting of a revolving line of credit under the Credit Agreement of floating rate debt. The weighted average interest rate of all debt was 5.05% and 5.26% for the nine months ended July 31, 2020 and 2019, respectively. Revolving Credit Facility: The Company and its subsidiaries are party to a Credit Agreement, dated October 25, 2013, as amended (the "Credit Agreement") with Bank of America, N.A., as Administrative Agent, Swing Line Lender, Dutch Swing Line Lender and L/C Issuer, JPMorgan Chase Bank, N.A. as Syndication Agent, Merrill Lynch, Pierce, Fenner & Smith Incorporated and J.P. Morgan Securities, LLC as Joint Lead Arrangers and Joint Book Managers, The PrivateBank and Trust Company, Compass Bank and The Huntington National Bank, N.A., as Co-Documentation Agents and the other lender parties thereto. The Credit Agreement contains customary restrictive and financial covenants, including covenants regarding our outstanding indebtedness and maximum leverage and interest coverage ratios. The Credit Agreement also contains standard provisions relating to conditions of borrowing. In addition, the Credit Agreement contains customary events of default, including the non-payment of obligations by the Company and the bankruptcy of the Company. If an event of default occurs, all amounts outstanding under the Credit Agreement may be accelerated and become immediately due and payable. The pre-existing financial covenants include the interest coverage ratio at 3.5 times and the leverage ratio which ranges between 4.50 times in the third quarter of 2020 and 3.25 times in the fourth quarter of 2020. The impact of COVID-19 developments and uncertainty with respect to the economic effects of the pandemic has introduced significant volatility in the financial markets and is having a widespread adverse effect on the automotive industry, including reductions in consumer demand and OEM automotive production. The Company experienced significant operating losses, negative cash flows from operations and working capital deficiencies during the period and as a result was below the established financial thresholds of the interest coverage ratio and leverage ratio covenants as of July 31, 2020. On June 11, 2020, the Company entered into the Tenth Amendment to the Credit Agreement (the “Tenth Amendment”), pursuant to which, among other things, the Company received a waiver of the interest coverage ratio and leverage ratio covenants for the quarters ended April 30, 2020 and July 31, 2020. As of July 31, 2020, the Company has significant indebtedness due within the next twelve months and cash flow from operations, has not been sufficient to meet the Company's liquidity demands. Our outstanding indebtedness coupled with the Chapter 11 Cases raise substantial doubt about the Company’s ability to continue as a going concern. The Tenth Amendment added financial covenants that required the Company to (i) maintain week-end liquidity of at least (1) $40 million for the period from June 13, 2020 through June 26, 2020, (2) $35 million for the period from June 27, 2020 through July 11, 2020, and (3) $30 million from July 12, 2020 through October 31, 2020, and (ii) limit capital expenditures to $15 million for the period from May 1, 2020 through August 31, 2020. The Tenth Amendment added, limited or otherwise modified certain debt, disposition and investment baskets. The Tenth Amendment provided that (i) revolving loans and swingline loans bear interest at a rate equal to the base rate or LIBOR plus an applicable margin of 4.00% in the case of base rate loans or 5.00% in the case of LIBOR loans, (ii) the Company pay a commitment fee on the unused portion of the revolving commitments at a rate of 0.65% per annum and (iii) revolving loans bearing interest at the LIBOR rate shall be subject to a LIBOR floor of 1.00%; provided, that, in case of clauses (i) and (ii), if the Company demonstrates, based on the compliance certificate for the fiscal quarter ending July 31, 2020, that (A) the consolidated leverage ratio as of the end of the fiscal quarter ending July 31, 2020 does not exceed 4.25 to 1.0 and (B) the consolidated interest coverage ratio as of the end of the fiscal quarter ending July 31, 2020 is greater than or equal to 3.50 to 1.0, then applicable margin shall revert to the pricing grid that was in effect prior to the Tenth Amendment. The Tenth Amendment also included certain transactional milestones for the Company. Long-term debt is classified as current in the condensed consolidated balance sheet as of July 31, 2020, because the waivers for the pre-existing financial covenants expire in less than twelve months and the Company will not comply with future covenants based on current forecasts. The Company was unable to obtain new financing and filed the Chapter 11 Cases on August 30, 2020. The filing of the Chapter 11 Cases constituted an event of default and the principal and interest due under the Credit Agreement became immediately due and payable and therefore, we will continue to classify the long-term debt as current in the condensed consolidated balance sheet. After considering letters of credit of $4,804 that we have issued, the Company has borrowed all the funds available under the Credit Agreement as of July 31, 2020. Actual borrowing capacity is subject to the Credit Agreement covenants and could be less than the stated unused commitments. Borrowings under the Credit Agreement are collateralized by a first priority security interest in substantially all of the tangible and intangible property of the Company and our domestic subsidiaries and 66% of the stock of our foreign subsidiaries. Other Debt: We maintain finance leases for equipment used in our manufacturing facilities with lease terms expiring between 2019 and 2020. As of July 31, 2020, the present value of minimum lease payments under our capital leases amounted to $1,879. Scheduled repayments of debt for the next five years are listed below: Twelve Months Ending July 31, Credit Agreement Capital Lease Obligations Total 2021 $ — $ 1,879 $ 1,879 2022 — — — 2023 322,900 1 — 322,900 2024 — — — 2025 — — — Total $ 322,900 $ 1,879 $ 324,779 1 - Based on the current credit agreement the $322,900 in debt is due in 2023 but is classified as current debt because the waivers for the pre-existing financial covenants expire in less than twelve months and the Company will not comply with future covenants based on current forecasts. The contractual terms above do not reflect any violation of covenants. Subsequently, the Company filed the Chapter 11 Cases on August 30, 2020. |
Pension and Other Post-Retireme
Pension and Other Post-Retirement Benefit Matters | 6 Months Ended |
Apr. 30, 2020 | |
Defined Benefit Plan [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Pension and Other Post-Retirement Benefit Matters U.S. Plans The components of net periodic benefit cost for the three and nine months ended July 31, 2020 and 2019 are as follows: Pension Benefits Other Post-Retirement Three Months Ended July 31, Three Months Ended July 31, 2020 2019 2020 2019 Interest cost $ 675 $ 843 $ 2 $ 3 Expected return on plan assets (831) (836) — — Amortization of net actuarial loss 374 288 2 1 Net periodic cost $ 218 $ 295 $ 4 $ 4 Pension Benefits Other Post-Retirement Nine months ended July 31, Nine months ended July 31, 2020 2019 2020 2019 Interest cost $ 2,026 $ 2,525 $ 6 $ 9 Expected return on plan assets (2,493) (2,506) — — Amortization of net actuarial loss 1,122 861 6 4 Net periodic cost $ 655 $ 880 $ 12 $ 13 We made contributions of $219 to our U.S. pension plans during the three and nine months ended July 31, 2020. We were not required to and therefore did not contribute to our U.S. pension plans during the three and nine months ended July 31, 2019. Our expected contribution of an additional $897 to our U.S. pension plans before the end of fiscal 2020 may be postponed under the CARES Act as part of COVID-19 relief until fiscal 2021. We report the service cost component of the net periodic pension and post-retirement costs in the same caption as other compensation costs arising from services rendered. The other components of net period costs are presented outside of operating income in other (income) expense, net. Non-U.S. Plans For our Swedish operations, the majority of the pension obligations are covered by insurance policies with insurance companies. Pension commitments in our Polish operations were $1,467 at July 31, 2020 and $1,267 at October 31, 2019. The liability represents the present value of future obligations and is calculated on an actuarial basis. The Polish operations recognized expense of $361 and $740 for the three and nine months ended July 31, 2020 and $40 and $223 for the three and nine months ended July 31, 2019, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Apr. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss [Text Block] | Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss in stockholders' equity (deficit) by component for the three and nine months ended July 31, 2020 is as follows: Pension and Post Retirement Plan Liability (1) Marketable Securities Adjustment (1) Interest Rate Swap Adjustment (2) Foreign Currency Translation Adjustment (3) Accumulated Other Comprehensive Loss Balance at April 30, 2020 $ (37,303) $ — $ (633) $ (32,518) $ (70,454) Other comprehensive income (loss), net of tax — — (72) 13,671 13,599 Amounts reclassified from accumulated other comprehensive loss, net of tax 290 — 283 — 573 Net current-period other comprehensive income (loss) 290 — 211 13,671 14,172 Balance at July 31, 2020 $ (37,013) $ — $ (422) $ (18,847) $ (56,282) Pension and Post Retirement Plan Liability (1) Marketable Securities Adjustment (1) Interest Rate Swap Adjustment (2) Foreign Currency Translation Adjustment (3) Accumulated Other Comprehensive Loss Balance at October 31, 2019 $ (37,883) $ — $ (628) $ (26,515) $ (65,026) Other comprehensive income (loss), net of tax — — (428) 7,668 7,240 Amounts reclassified from accumulated other comprehensive loss, net of tax 870 — 634 — 1,504 Net current-period other comprehensive income (loss) 870 — 206 7,668 8,744 Balance at July 31, 2020 $ (37,013) $ — $ (422) $ (18,847) $ (56,282) (1) Amounts reclassified from accumulated other comprehensive loss, net of tax are classified with other expense included on the statements of operations. (2) Amounts reclassified from accumulated other comprehensive loss, net of tax are classified with interest expense included on the statements of operations. |
Derivatives and Financial Instr
Derivatives and Financial Instruments | 6 Months Ended |
Apr. 30, 2020 | |
Derivative and Financial Instruments [Abstract] | |
Derivative and Financial Instruments | Derivatives and Financial Instruments The Company is exposed to, among other risks, the impact of changes in commodity prices, foreign currency exchange rates and interest rates in the normal course of business. The Company's financial risk management program is designed to manage the exposure and volatility arising from these risks and utilizes derivative financial instruments to offset a portion of these risks. We do not enter into derivative financial instruments for trading or speculative purposes. On an on-going basis, we monitor counterparty credit ratings. We consider credit non-performance risk to be low because we enter into agreements with commercial institutions that have investment grade credit ratings. On March 1, 2018, we entered into a cross-currency swap in which we would settle interest on the notional amount in Euros and settle interest on the notional amount in dollars, both at a variable rate. The objective of the transaction was to protect the initial net investment in Brabant against adverse changes in the exchange rate between the U.S. dollar and the Euro. Hedge effectiveness was assessed based upon changes in the spot foreign exchange rate. As such, the change in value of the cross-currency interest rate swap related to the change in spot rates was effective at offsetting changes in the cumulative translation adjustment related to the portion of our net investment in Brabant up to the notional amount of the cross-currency interest rate swap. Under the cross-currency interest rate swap, we received €53,000 on which we would settle interest at the 1-month Euribor rate, and we lent to the counterparty $64,930 on which we would settle interest at the 1-month LIBOR rate. Interest payments were made at the end of every month. The notional amounts in the respective currencies exchanged at the beginning of the cross-currency interest rate swap period were to be repaid at the end of the cross-currency interest rate swap period. The initial maturity of the cross-currency interest rate swap was October 31, 2022. In the second quarter of fiscal 2019, the cross-currency interest rate swap was discontinued and settled in cash for $5,110. The cash value at settlement was driven by changes in foreign currency exchange rates and debt markets from inception to settlement. There was no impact to net income upon settlement. On February 25, 2014, we entered into an interest rate swap with an aggregate notional amount of $75,000 designated as a cash flow hedge to manage interest rate exposure on our floating rate LIBOR based debt under the Credit Agreement. The interest rate swap is an agreement to exchange payment streams based on the notional principal amount. This agreement fixes our future interest rate at 2.74% plus the applicable margin as provided in the Fifth Amendment to our Credit Agreement, on an amount of our debt principal equal to the then-outstanding swap notional amount. The forward interest rate swap commenced on March 1, 2015 with an initial $25,000 base notional amount. The second notional amount of $25,000 commenced on September 1, 2015 and the final notional amount of $25,000 commenced on March 1, 2016. The base notional amount plus each incremental addition to the base notional amount has a five Our derivatives at July 31, 2020 consist of interest rate swap contracts, all of which are over-the-counter and not traded through an exchange. The Company uses widely accepted valuation tools to determine fair value, such as discounting cash flows to calculate a present value for the derivatives. The models use Level 2 inputs, such as forward curves and other commonly quoted observable transactions and prices. The fair value of our derivatives and hedging instruments are all classified as Level 2 investments within the three-tier hierarchy. The following table discloses the fair value and balance sheet location of our derivative instruments: Asset (Liability) Derivatives Balance Sheet Location July 31, 2020 October 31, 2019 Cash Flow Hedging Instruments: Interest rate swap contracts (Other accrued expenses) $ (548) $ (814) As a result of the hedging relationships being highly effective, the net interest payments accrued each period are reflected in net income (loss) as adjustments of interest expense, and the remaining change in the fair value of the derivatives is recognized in accumulated other comprehensive loss ("AOCI"). Derivative activity is included in interest expense and cash paid for interest. The following table presents the effect of our derivative instruments on the condensed consolidated statements of operations and the effects of hedging on those line items: Location Three Months Ended July 31, 2020 Three Months Ended July 31, 2019 Interest expense $ 5,379 $ 4,633 Effect of hedging on interest expense $ 283 $ 51 Location Nine Months Ended July 31, 2020 Nine Months Ended Interest expense $ 14,362 $ 11,836 Effect of hedging on interest expense $ 634 $ (564) |
Stock Incentive Compensation
Stock Incentive Compensation | 6 Months Ended |
Apr. 30, 2020 | |
Equity [Abstract] | |
Stock Incentive Compensation | Stock Incentive Compensation Stock Incentive Compensation requires us to expense share-based payment awards granted. Compensation cost for share-based payment transactions are measured at fair value. For stock options, we use the simplified method of calculating the expected term and historical volatility to compute fair value under the Black-Scholes option-pricing model. The risk-free rate for periods within the contractual life of the option is based on the U.S. zero coupon Treasury yield in effect at the time of grant. New restricted stock and restricted stock unit grants are calculated using the average market price of our common stock over a consistent predetermined number of days prior to the grant date and then valued at the closing market price of our common stock on the date of grant. We do not estimate a forfeiture rate at the time of grant. Instead, we adjust share-based compensation expense when actual forfeitures occur. 2019 Equity and Incentive Compensation Plan Long-Term / Annual Incentives On February 26, 2019, stockholders approved and adopted the 2019 Equity and Incentive Compensation Plan ("2019 Plan" or "Incentive Plan"), which replaced the 2016 Equity and Incentive Compensation Plan. The 2019 Plan authorizes the Compensation Committee of the Board of Directors of the Company to grant to the officers and other key employees, including directors, of the Company and our subsidiaries (i) stock options, (ii) appreciation rights, (iii) restricted shares, (iv) restricted stock units, (v) cash incentive awards, performance shares and performance units and (vi) other awards. An aggregate of 1,500,000 shares of common stock, subject to adjustment upon occurrence of certain events to prevent dilution or expansion of the rights of participants that might otherwise result from the occurrence of such events, was reserved for issuance pursuant to the Incentive Plan. An individual’s award of options and / or appreciation rights is limited to 500,000 shares during any calendar year. Also, an individual's award of restricted shares, restricted share units and performance-based awards is limited to 350,000 shares during any calendar year. The following table summarizes the Company’s Incentive Plan activity for the nine months ended July 31, 2020 and 2019: Stock Options Restricted Stock Restricted Stock Units Outstanding at: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life Restricted Shares Grant Fair Value Weighted Average Remaining Contractual Life Restricted Share Units Grant Fair Value Weighted Average Remaining Contractual Life November 1, 2018 33 $9.42 1.84 478 $7.45 1.87 27 $8.17 1.37 Granted — — 418 6.73 42 6.47 Options exercised or restricted stock vested — — (230) 6.84 (14) 7.98 Forfeited or expired — — (54) 7.39 (4) 7.35 July 31, 2019 33 $9.42 1.09 612 $7.20 1.97 51 $6.84 2.00 November 1, 2019 23 $11.25 1.31 603 $7.00 1.86 47 $6.81 1.88 Granted — — 677 3.30 55 3.60 Options exercised or restricted stock vested — — (246) 7.11 (21) 7.10 Forfeited or expired — — (268) 5.08 (38) 4.37 July 31, 2020 23 $11.25 0.56 766 $4.30 1.64 43 $4.75 1.95 We recorded stock compensation expense related to stock options, restricted stock and restricted stock units during the three and nine months ended July 31, 2020 and 2019 as follows: Three Months Ended July 31, 2020 2019 Restricted stock $ 250 $ 544 Restricted stock units 14 42 Total $ 264 $ 586 Nine Months Ended July 31, 2020 2019 Restricted stock $ 1,283 $ 1,461 Restricted stock units 103 115 Total $ 1,386 $ 1,576 Stock Options - The exercise price of each stock option equals the market price of our common stock on the grant date. Compensation expense is recorded at the grant date fair value, adjusted for forfeitures as they occur, and is recognized over the applicable vesting periods. Our stock options generally vest over three years, with a maximum term of ten years. Incentive stock options were not granted during the nine months ended July 31, 2020 and 2019. Options that have an exercise price greater than the market price are excluded from the intrinsic value computation. At July 31, 2020 and October 31, 2019, the options outstanding and exercisable had an intrinsic value of $0 for both periods. Restricted Stock Awards - New restricted stock grants are calculated using the average market price of our common stock over a consistent predetermined number of days prior to the grant date and then valued at the closing market price of our common stock on the date of grant. Compensation expense is recorded at the grant date fair value, adjusted for forfeitures as they occur and is recognized over the applicable vesting periods. The vesting periods range between one to three years. As of July 31, 2020, there was $2,298 of total unrecognized compensation costs related to these restricted stock awards to be recognized over the next three fiscal years. Restricted Stock Units - New restricted stock unit grants are calculated using the average market price of our common stock over a consistent predetermined number of days prior to the grant date and then valued at the closing market price of our common stock on the date of grant. Compensation expense is recorded at the grant date fair value, adjusted for forfeitures as they occur and is recognized over the applicable vesting periods. The vesting periods range between one to three years. As of July 31, 2020, there was $142 of total unrecognized compensation expense related to these restricted stock units that is expected to be recognized over the next three fiscal years. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Apr. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The methods that we use may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while we believe our valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. Assets and liabilities remeasured and disclosed at fair value on a recurring basis at July 31, 2020 and October 31, 2019 are set forth in the table below: Asset (Liability) Level 1 Level 2 Valuation Technique October 31, 2019 Interest Rate Swap Contracts $ (814) — $ (814) Income Approach July 31, 2020 Interest Rate Swap Contracts (548) — (548) Income Approach We calculate the fair value of our interest rate swap contracts using quoted interest rate curves to calculate forward values and then discount the forward values. |
Restructuring
Restructuring | 6 Months Ended |
Apr. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges During the fourth quarter of fiscal 2017, management initiated restructuring activities to reshape the Company's global footprint to be flexible to market conditions. Activities included actions such as consolidating manufacturing facilities, making geographical shifts to place production closer to customer facilities, centralizing departments, optimizing our product portfolio and capturing synergies. Management believes these strategic moves will result in a stronger and more agile organization. We have incurred employee, professional, legal and other restructuring related costs of $41,859 since initiating the restructuring activities. Global restructuring initiatives have continued to evolve and expand across the organization. We expect to incur additional restructuring costs over and beyond the next twelve months to execute planned restructuring initiatives. Costs of planned restructuring actions will primarily include employee costs and professional fees to execute initiatives. Future restructuring actions will depend upon market conditions, customer actions and other factors. The following table presents information about restructuring costs recorded for the three and nine months ended July 31, 2020 and 2019: Three Months Ended July 31, Nine Months Ended July 31, 2020 2019 2020 2019 Employee costs $ 2,049 $ 947 $ 4,013 $ 2,377 Professional and legal costs 128 2,608 9,013 6,769 Other 19 350 371 2,225 $ 2,196 $ 3,905 $ 13,397 $ 11,371 The following table presents a rollforward of the beginning and ending liability balances related to the restructuring costs which are included in the condensed consolidated balance sheets in other accrued expenses for the above-mentioned actions through July 31, 2020 and July 31, 2019: Balance as of October 31, 2018 Restructuring Expense Payments Balance as of July 31, 2019 Employee costs $ 367 $ 2,377 $ (2,744) $ — Professional and legal costs 248 6,769 (4,792) 2,225 Other — 2,225 (2,225) — $ 615 $ 11,371 $ (9,761) $ 2,225 |
Income Taxes
Income Taxes | 6 Months Ended |
Apr. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Income TaxesThe provision for income taxes for the three months ended July 31, 2020 was a benefit of $591 on a loss before income taxes of $137,725 for a consolidated effective tax rate of 0.4%. The provision for income taxes for the nine months ended July 31, 2020 was an expense of $1,650 on a loss before income taxes of $197,872 for a consolidated effective tax rate of 0.8%. The year-to-date expense was calculated using one single effective tax rate for tax jurisdictions not subject to a valuation allowance, applied to the year-to-date ordinary income/(loss). Tax effects of significant, unusual or infrequently occurring items are excluded from the annual effective rate calculation and recognized in the period in which they occur. For the nine months ended July 31, 2020, the valuation allowance adjustments resulted in a negative impact of 28.1% to the effective tax rate. The provision for income taxes for the three months ended July 31, 2019 was a benefit of $973 on a loss before income taxes of $3,682 for a consolidated effective tax rate of 26.4%. The provision for income taxes for the nine months ended July 31, 2019 was a benefit of $2,612 on a loss before income taxes of $8,907 for a consolidated effective tax rate of 29.3%. The year-to-date benefit was calculated using the year-to-date loss, considering non-taxable and non-deductible items expected to be incurred for the full year multiplied by the statutory rate. This methodology is required by ASC 740, Income Taxes , as the use of an estimated annual effective rate would not be reliable. On March 27, 2020, the CARES Act was enacted and signed into law. The CARES Act, among other things, permits NOL carryovers and carrybacks to offset 100% of taxable income for taxable years beginning before 2021. In addition, the CARES Act allows NOLs incurred in 2018, 2019, and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes. The Company continues to examine the impact of the CARES Act to our business and the extent to which we will benefit from the tax provisions in the CARES Act. The CARES Act also contains modifications on the limitation of business interest expense for tax years beginning in 2019 and 2020. The change in the interest expense limitation pursuant to the CARES Act will not have an impact to the third quarter of 2020, other than an increase in the net operating loss deferred tax assets in the U.S. on which a full valuation allowance has been established. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Apr. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | —Earnings Per Share Basic earnings per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of shares of Common Stock outstanding during the period. In addition, the shares of Common Stock issuable pursuant to restricted stock awards, restricted stock units and stock options outstanding under the 2019 Plan are included in the diluted earnings per share calculation to the extent they are dilutive. For the nine months ended July 31, 2020 and 2019, 46 and 141 stock awards, respectively, were excluded from the computation of diluted earnings per share because their inclusion would be anti-dilutive. The following is a reconciliation of the numerator and denominator of the basic and diluted earnings per share computation for net loss per share: Three Months Ended July 31, Nine Months Ended July 31, 2020 2019 2020 2019 Net loss available to common stockholders $ (137,134) $ (2,709) $ (199,522) $ (6,295) Basic weighted average shares 23,824 23,557 23,754 23,486 Effect of dilutive securities: Restricted stock, units and stock options (1) — — — — Diluted weighted average shares 23,824 23,557 23,754 23,486 Basic loss per share $ (5.76) $ (0.11) $ (8.40) $ (0.27) Diluted loss per share $ (5.76) $ (0.11) $ (8.40) $ (0.27) (1) Due to a loss for the three and nine months ended July 31, 2020 and three and nine months ended July 31, 2019 no restricted stock, restricted stock units or stock options are included because the effect would be anti-dilutive. |
Business Segment Information
Business Segment Information | 6 Months Ended |
Apr. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Business Segment Information We conduct our business and report our information as one operating segment and, therefore, disclose one reportable segment - Automotive and Commercial Vehicles. Our chief operating decision maker is the executive leadership team, which includes certain Vice Presidents, all Senior Vice Presidents and the Chief Executive Officer. This team has the final authority over performance assessment and resource allocation decisions. In determining that one operating segment is appropriate, we considered the nature of the business activities and the existence of managers responsible for the operating activities. Customers and suppliers are substantially the same in the automotive and commercial vehicle industry. Foreign net revenues were $50,722 or 32.6% and $175,924 or 31.6% of net revenues for the three and nine months ended July 31, 2020, respectively, and $78,588 or 29.8% and $233,929 or 29.4% of net revenues for the three and nine months ended July 31, 2019, respectively. Foreign net revenues, and geographic regions quantified in the table below, are based upon the location of the entity recording the sale. Net Revenues Net Revenues Three Months Ended July 31, Nine Months Ended July 31, Geographic Region: 2020 2019 2020 2019 North America $ 112,141 $ 198,409 $ 404,498 $ 590,577 Europe 34,176 61,507 131,113 194,294 Asia 9,050 3,529 21,170 10,877 Total Company $ 155,367 $ 263,445 556,781 $ 795,748 The foreign currency gain (loss) is included as a component of other expense, net in the condensed consolidated statements of operations. Foreign Currency Gain (Loss) Foreign Currency Gain (Loss) Three Months Ended July 31, Nine Months Ended July 31, Geographic Region: 2020 2019 2020 2019 North America $ 234 $ (221) $ (286) $ (10) Europe (2,308) 679 $ (1,684) $ 476 Asia 8 (195) $ (15) $ 2 Long-lived assets consist primarily of net property, plant and equipment, goodwill and intangibles. Due to the continued decline of our business, we concluded an interim test of long-lived assets was required. During the nine months ended July 31, 2020, we recorded an asset impairment charge on fixed assets and intangible assets of $109,633 related to a decline in fair value and $2,500 related to equipment not placed in service. Long-Lived Assets Geographic Region: July 31, 2020 October 31, 2019 North America $ 139,777 $ 268,913 Europe 57,029 81,532 Asia 13,117 13,001 Total Company $ 209,923 $ 363,446 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Apr. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Commitments and Contingencies From time to time, we are involved in legal proceedings, claims or investigations that are incidental to the conduct of our business. We vigorously defend ourselves against such claims. In future periods, we could be subject to cash costs or non-cash charges to earnings if a matter is resolved on unfavorable terms. However, although the ultimate outcome of any legal matter cannot be predicted with certainty, based on current information, including assessment of the merits of the particular claims, we do not expect that our legal proceedings or claims will have a material impact on our future consolidated financial position, results of operations or cash flows. |
Other Matters
Other Matters | 9 Months Ended |
Jul. 31, 2020 | |
Business Combinations [Abstract] | |
Other Matters | Other Matters The Company acquired a small facility in Italy in 2018 in connection with the acquisition of a larger plant in the Netherlands. Since the acquisition, the small facility has lost approximately half of its sales volume and has generated significant losses relative to the size of the facility. The Italy facility had $26.5 million in sales and a net loss of $4.5 million in fiscal 2019. COVID-19 further negatively impacted the financial results of the facility in the second quarter of 2020. An investment is required to start-up the small facility in Italy and even further investment to create a sustainable business. On June 1, 2020, the subsidiary filed with the competent Italian Court a “pre-concordato” petition to seek protection for past accrued liabilities as we engage with customers to renegotiate contracts to ensure the Italy facility is a viable business going forward. The Court granted the Italian subsidiary with a term until October 30, 2020, which may be potentially extended for up to an additional 60 days, to file a reorganization and debt restructuring plan to be approved by the Court and the concerned creditors. If the negotiations are not successful, we may have to discontinue the Italian facility operations and enter a bankruptcy liquidation process in Italy. Refer to Note 7, " Goodwill and Intangible Assets," for further information on the impairment testing of long-lived assets. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Jul. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Chapter 11 Filing On August 30, 2020, Shiloh Industries, Inc., a Delaware corporation, and its U.S. subsidiaries (together with Shiloh Industries, Inc., the “Debtors”) filed voluntary petitions (the “Bankruptcy Petitions,” and the cases commenced thereby, the “Chapter 11 Cases”) for relief under Chapter 11 of the United States Bankruptcy Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”). The Chapter 11 Cases are being jointly administered under the caption “ In re Shiloh Industries, Inc. ” No trustee has been appointed and the Company will continue to manage itself and its subsidiaries as “debtors-in-possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code. In connection with the Chapter 11 Cases, the Debtors are seeking authority to sell substantially all of their assets pursuant to Section 363 of the Bankruptcy Code. On September 1 and 2, 2020, the Bankruptcy Court issued orders approving the “first day” relief motions on an interim basis (the “Interim DIP Order”), authorizing the Company to, among other things, enter into the DIP Credit Agreement (as defined below) and initially borrow an approved amount, maintain existing cash management system and pay employee wages and benefits. On September 1, 2020, we received notice from the Listing Qualifications Staff of the Nasdaq Stock Market LLC (“Nasdaq”) that it had determined to commence proceedings to delist our common stock at the opening of business on September 10, 2020 as a result of the Chapter 11 Cases. The Company does not intend to take any further action to appeal Nasdaq’s decision. Therefore, it is expected that the Company’s common stock will be delisted after the completion of Nasdaq’s application to the SEC to delist the Company’s common stock. Stock and Asset Purchase Agreement In connection with the Chapter 11 Cases, on August 30, 2020, the Debtors entered into a Stock and Asset Purchase Agreement (the “Stock and Asset Purchase Agreement”) with Grouper Holdings, LLC, a Delaware limited liability company (the “Purchaser”) and subsidiary of MiddleGround Capital LLC. Pursuant to the Stock and Asset Purchase Agreement, the Purchaser will acquire substantially all of the Debtors’ assets, including the equity interests of certain of the Debtors’ direct subsidiaries. The aggregate consideration for the purchased assets and equity interests will be $218 million in cash, subject to working capital and net debt adjustments, and assumption of certain liabilities of the Debtors. The consummation of the transactions contemplated by the Stock and Asset Purchase Agreement is subject to customary closing conditions, including, among others, (i) entry of an order approving the Stock and Asset Purchase Agreement by the Bankruptcy Court; (ii) the accuracy of representations and warranties of the parties; and (iii) material compliance with the obligations set forth in the Stock and Asset Purchase Agreement. The asset and equity purchase pursuant to the Stock and Asset Purchase Agreement is expected to be conducted under the provisions of Section 363 of the Bankruptcy Code and will be subject to proposed bidding procedures and receipt of higher or otherwise better competing bids. Upon entry by the Bankruptcy Court, the bidding procedures order will provide that Purchaser is the “ stalking horse ” bidder for the assets and equity identified in the Stock and Asset Purchase Agreement. The Stock and Asset Purchase Agreement calls for the Company to pay a break-up fee to Purchaser equal to $7.1 million upon the consummation of an alternate transaction involving the sale of a material portion of the Debtors’ assets to any person or entity other than the Purchaser (an “Alternative Transaction”). The Stock and Asset Purchase Agreement also provides for reimbursement of an amount not to exceed $1.5 million for expenses incurred by the Purchaser in connection with the Stock and Asset Purchase Agreement in the event the Stock and Asset Purchase Agreement is terminated in certain circumstances, including, among others, upon the entry into an Alternative Transaction. DIP Financing Filing of the Bankruptcy Petitions resulted in a default on the Credit Agreement. In connection with the Chapter 11 Cases, on August 30, 2020, the Debtors filed a motion (the "DIP Motion") seeking Bankruptcy Court approval of, among other things, interim and final approval of postpetition, debtor-in-possession financing on the terms set forth in that certain proposed Superpriority Secured Debtor-in-Possession Credit Agreement (the “DIP Credit Agreement”), among the Company, as borrower, the other Debtors as guarantors thereto, the various lenders from time to time party thereto and Bank of America, N.A., as administrative agent and collateral agent (the “DIP Agent”). On September 2, 2020, the Company entered into the DIP Credit Agreement with the Lenders, as well as the related postpetition security and pledge agreements with the DIP Agent. The DIP Credit Agreement is subject to approval by the Bankruptcy Court, which has only been granted on an interim basis. The Debtors will seek final approval of the DIP Credit Agreement at a hearing before the Bankruptcy Court on or about September 25, 2020. The DIP Credit Agreement provides for a senior secured superpriority debtor-in-possession financing in an aggregate principal amount not to exceed $123.5 million (the “DIP Facility”) consisting of (i) an approximately $23.5 million new money subfacility comprised of revolving loans and (ii) a roll-up of approximately $100 million of commitments under the Company’s existing revolving credit facility, which will be deemed loans under the DIP Facility. $18.1 million of the DIP Facility is available following entry of the Interim DIP Order and until the entry of the final order approving the DIP Credit Agreement (the “Final DIP Order”), secured by, among other things, (a) a first priority lien on all unencumbered tangible and intangible property and assets of the Loan Parties, (b) a first priority, senior priming lien on all prepetition collateral, and (c) all real property owned or leased by the Company or the Guarantors, subject to certain carve outs. The proceeds from the DIP Financing will be used, subject to the Interim DIP Order and the Final DIP Order, for working capital, administrative costs, and premiums and fees associated with the Chapter 11 Cases, payment of court-approved prepetition obligations and other purposes such as are consistent with the DIP Credit Agreement or as otherwise approved by the agent and lenders. Retention Bonus Plan On August 25, 2020, the compensation committee of the board of directors (the “Board”) of the Company approved a Key Employee Retention Program, pursuant to which certain executive officers and key employees of the Company received one-time cash retention incentive awards (the “Retention Incentives”). The Retention Incentives were paid on August 28, 2020 and are subject to the terms of the corresponding Retention Incentive Letter Agreements (the “Retention Letter Agreement”). Pursuant to the Retention Letter Agreement, if the employee terminates his or her employment for any reason or the employee’s employment is terminated by the Company for cause prior to the earlier of (i) the Closing Date (as such term is defined in the Retention Letter Agreement) or (ii) December 31, 2020, the employee will forfeit his or her entitlement to the Retention Incentive and must repay to the Company the full, aggregate amount of the Retention Incentive before the date on which the Company pays the employee his or her final wages. Reorganization accounting Effective August 31, 2020, we will apply ASC, No. 852, “Reorganizations” (“ASC 852”), which is applicable to companies under Chapter 11 bankruptcy protection. ASC 852 requires the financial statements for periods subsequent to the |
Recent Accounting Standards New
Recent Accounting Standards New Accounting Policies (Policies) | 6 Months Ended |
Apr. 30, 2020 | |
Recent Accounting Standards [Abstract] | |
Derivatives, Policy [Policy Text Block] | Derivatives and Financial Instruments The Company is exposed to, among other risks, the impact of changes in commodity prices, foreign currency exchange rates and interest rates in the normal course of business. The Company's financial risk management program is designed to manage the exposure and volatility arising from these risks and utilizes derivative financial instruments to offset a portion of these risks. We do not enter into derivative financial instruments for trading or speculative purposes. On an on-going basis, we monitor counterparty credit ratings. We consider credit non-performance risk to be low because we enter into agreements with commercial institutions that have investment grade credit ratings. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Standards: ASU 2020-04 Reference Rate Reform (Topic 848) - On March 12, 2020, the Financial Accounting Standards Board (FASB) issued this guidance that provides optional expedients and exceptions that are intended to ease the burden of updating contracts to contain a new reference rate due to the discontinuation of the London Inter-Bank Offered Rate (LIBOR). This guidance is available immediately and may be implemented in any period prior to the guidance expiration on December 31, 2022. We are currently assessing which of our various contracts will require an update for a new reference rate, and will determine the timing for our implementation of this guidance at the completion of that analysis. ASU 2019-12 Income Taxes: Simplifying the Accounting for Income Taxes - This Accounting Standards Update removes specific exceptions to the general principles in Topic 740 in Generally Accepted Accounting Principles (GAAP). It eliminates the need for an organization to analyze whether the following apply in a given period: (1) Exception to the incremental approach for intraperiod tax allocation, (2) Exception accounting for basis differences when there are ownership changes in foreign investments, (3) Exception to the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment and (4) Exception in interim period income tax accounting for year-to-date losses that exceed anticipated losses. Also, this amendment updates the following: (1) Making minor Codification improvements for income taxes related to employee stock ownership plans and investments in qualified affordable housing projects accounted for using the equity method, (2) Requiring that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date and (3) Requiring that an entity evaluate when a step up in the tax basis of goodwill should be considered part of the business combination in which the book goodwill was originally recognized and when it should be considered a separate transaction. We expect to adopt this guidance on November 1, 2021 and we are currently assessing the impact that this standard will have on our consolidated financial statements. ASU 2018-14 Compensation-Retirements Benefits-Defined Benefit Plans - This ASU amendment adds the following to disclosure requirements: (1) The weighted-average interest crediting rates used in the entity’s cash balance pension plans and other similar plans, (2) A narrative description of the reasons for significant gains and losses affecting the benefit obligation for the period, (3) An explanation of any other significant changes in the benefit obligation or plan assets that are not otherwise apparent in the other disclosures required by Accounting Standards Codification ("ASC") Topic 715, Compensation-Retirement Benefits. Also, this amendment clarifies the guidance in ASC 715-20-50-3 on defined benefit plans to require disclosure of (1) the projected benefit obligation (PBO) and fair value of plan assets for pension plans with PBOs in excess of plan assets (the same disclosure with reference to the accumulated postretirement benefit obligation rather than the PBO is required for other postretirement benefit plans) and (2) the accumulated benefit obligation (ABO) and fair value of plan assets for pension plans with ABOs in excess of plan assets. We expect to adopt this guidance on November 1, 2021 and we are currently assessing the impact that this standard will have on our consolidated financial statements. ASU 2016-13 Measurement of Credit Losses on Financial Instruments - The amendments change the impairment model for financial assets measured at amortized cost and available for sale equity securities. This new model will apply to instruments such as loans, held-to-maturity debt securities, loan commitments (including lines of credit), financial guarantees accounted for under ASC 460, net investments in leases, reinsurance and trade receivables. This model will result in an earlier recognition of allowances for losses through the establishment of an allowance account. The estimate of expected credit losses should consider historical and current information, and the reasonable and supportable forecasts of future events and circumstances, as well as estimates of prepayments. We expect to adopt this guidance on November 1, 2020 and we are currently assessing the impact that this standard will have on our consolidated financial statements and disclosures. ASU 2018-15 Internal-Use Software - The amendments apply to the accounting for implementation, setup and other upfront costs (collectively referred to as implementation costs) for entities that are a customer in a hosting arrangement and align the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The amendments also require customers to expense capitalized implementation costs over the term of the hosting arrangement and in the same line on the income statement as the fees associated with the hosting service and payments for the capitalized implementation costs in the statement of cash flows in the same manner as payments made for fees associated with the hosting service. We expect to adopt this guidance on November 1, 2020 and we are currently assessing the impact that this standard will have on our consolidated financial statements and disclosures. Recently Adopted Accounting Standards: ASU 2016-02 Leases - This amendment requires lessees to recognize a lease liability and a right-of-use asset on the balance sheet and aligns many of the underlying principles of the new lessor model with those in ASC Topic 606, Revenue from Contracts with Customers. The standard requires a modified retrospective or current period transition approach for capital and operating leases existing at or entered into after the beginning of the earliest comparative period presented in the financial statements, but it does not require transition accounting for leases that expire prior to the date of initial adoption. In January 2018, the FASB issued an amendment to ASC Topic 842 which permits companies to elect an optional transition practical expedient to not evaluate existing land easements under the new standard if the land easements were not previously accounted for under existing lease guidance. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842 which clarifies certain areas within ASU 2016-02. ASU 2018-11 Targeted Improvements to Topic 842, Leases . This amendment provides entities with an additional (and optional) transition method to adopt the new leases standard. Under this new transition method, an entity initially applies the new leases standard at the adoption date. The Company adopted this guidance on November 1, 2019. The Company has applied ASU 2016-02 and all related amendments ("ASC 842") using the current period adjustment method. The Company did not record any adjustments to the opening balance of retained earnings as of November 1, 2019. Therefore, the comparative information has not been adjusted and continues to be presented under prior lease guidance. In addition, the Company elected the following package of practical expedients on a consistent basis permitting entities not to reassess: (1) whether any expired or existing contract are/or contain a lease; (2) lease classification for any expired or existing leases; (3) whether initial direct costs for any expired or existing leases qualify for capitalization under the new amended guidance. As a result, as of November 1, 2019, we recorded right-of-use ("ROU") assets of $50,540 for operating leases and $2,000 for financing leases. This standard did not have a material impact on the Company's condensed consolidated statement of operations or statement of cash flows. The Company determines if an arrangement is a lease at inception. Operating leases are included in ROU assets and the Company's short-term and long-term operating lease liability on our Condensed Consolidated Balance Sheets. Finance leases are included in other assets, other current liabilities, and other non-current liabilities on our Condensed Consolidated Balance Sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the term of the lease. The Company includes options to extend or terminate the lease when it is reasonably certain that we will exercise that option. As most of the Company's leases do not provide an implicitly stated rate within the contract, we use our incremental borrowing rate based on third party information available at the commencement date in determining the present value of lease payments. Lease expenses for lease payments on operating leases are recognized on a straight-line basis over the lease term. Additionally, the Company does not record a ROU asset or lease liability for leases with an expected lease term of 12 months or less. The Company has lease arrangements with lease and non-lease components, which are accounted for separately across the Company's portfolio of leases. The non-lease components consist of maintenance, insurance, taxes and other expenses, and are immaterial. The Company has exercised the land easement expedient and will continue to treat land leases under legacy GAAP provisions of ASC 840, Leases . If a modification or extension happens to a land lease, the Company will then treat the lease under the ASC 842 requirements. Current land leases are being recorded in other assets on the Company's Condensed Consolidated Balance Sheets. |
New Accounting Standards (Table
New Accounting Standards (Tables) | 6 Months Ended |
Apr. 30, 2020 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Schedule of New Accounting Standards | Recently Issued Accounting Standards: ASU 2020-04 Reference Rate Reform (Topic 848) - On March 12, 2020, the Financial Accounting Standards Board (FASB) issued this guidance that provides optional expedients and exceptions that are intended to ease the burden of updating contracts to contain a new reference rate due to the discontinuation of the London Inter-Bank Offered Rate (LIBOR). This guidance is available immediately and may be implemented in any period prior to the guidance expiration on December 31, 2022. We are currently assessing which of our various contracts will require an update for a new reference rate, and will determine the timing for our implementation of this guidance at the completion of that analysis. ASU 2019-12 Income Taxes: Simplifying the Accounting for Income Taxes - This Accounting Standards Update removes specific exceptions to the general principles in Topic 740 in Generally Accepted Accounting Principles (GAAP). It eliminates the need for an organization to analyze whether the following apply in a given period: (1) Exception to the incremental approach for intraperiod tax allocation, (2) Exception accounting for basis differences when there are ownership changes in foreign investments, (3) Exception to the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment and (4) Exception in interim period income tax accounting for year-to-date losses that exceed anticipated losses. Also, this amendment updates the following: (1) Making minor Codification improvements for income taxes related to employee stock ownership plans and investments in qualified affordable housing projects accounted for using the equity method, (2) Requiring that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date and (3) Requiring that an entity evaluate when a step up in the tax basis of goodwill should be considered part of the business combination in which the book goodwill was originally recognized and when it should be considered a separate transaction. We expect to adopt this guidance on November 1, 2021 and we are currently assessing the impact that this standard will have on our consolidated financial statements. ASU 2018-14 Compensation-Retirements Benefits-Defined Benefit Plans - This ASU amendment adds the following to disclosure requirements: (1) The weighted-average interest crediting rates used in the entity’s cash balance pension plans and other similar plans, (2) A narrative description of the reasons for significant gains and losses affecting the benefit obligation for the period, (3) An explanation of any other significant changes in the benefit obligation or plan assets that are not otherwise apparent in the other disclosures required by Accounting Standards Codification ("ASC") Topic 715, Compensation-Retirement Benefits. Also, this amendment clarifies the guidance in ASC 715-20-50-3 on defined benefit plans to require disclosure of (1) the projected benefit obligation (PBO) and fair value of plan assets for pension plans with PBOs in excess of plan assets (the same disclosure with reference to the accumulated postretirement benefit obligation rather than the PBO is required for other postretirement benefit plans) and (2) the accumulated benefit obligation (ABO) and fair value of plan assets for pension plans with ABOs in excess of plan assets. We expect to adopt this guidance on November 1, 2021 and we are currently assessing the impact that this standard will have on our consolidated financial statements. ASU 2016-13 Measurement of Credit Losses on Financial Instruments - The amendments change the impairment model for financial assets measured at amortized cost and available for sale equity securities. This new model will apply to instruments such as loans, held-to-maturity debt securities, loan commitments (including lines of credit), financial guarantees accounted for under ASC 460, net investments in leases, reinsurance and trade receivables. This model will result in an earlier recognition of allowances for losses through the establishment of an allowance account. The estimate of expected credit losses should consider historical and current information, and the reasonable and supportable forecasts of future events and circumstances, as well as estimates of prepayments. We expect to adopt this guidance on November 1, 2020 and we are currently assessing the impact that this standard will have on our consolidated financial statements and disclosures. ASU 2018-15 Internal-Use Software - The amendments apply to the accounting for implementation, setup and other upfront costs (collectively referred to as implementation costs) for entities that are a customer in a hosting arrangement and align the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The amendments also require customers to expense capitalized implementation costs over the term of the hosting arrangement and in the same line on the income statement as the fees associated with the hosting service and payments for the capitalized implementation costs in the statement of cash flows in the same manner as payments made for fees associated with the hosting service. We expect to adopt this guidance on November 1, 2020 and we are currently assessing the impact that this standard will have on our consolidated financial statements and disclosures. Recently Adopted Accounting Standards: ASU 2016-02 Leases - This amendment requires lessees to recognize a lease liability and a right-of-use asset on the balance sheet and aligns many of the underlying principles of the new lessor model with those in ASC Topic 606, Revenue from Contracts with Customers. The standard requires a modified retrospective or current period transition approach for capital and operating leases existing at or entered into after the beginning of the earliest comparative period presented in the financial statements, but it does not require transition accounting for leases that expire prior to the date of initial adoption. In January 2018, the FASB issued an amendment to ASC Topic 842 which permits companies to elect an optional transition practical expedient to not evaluate existing land easements under the new standard if the land easements were not previously accounted for under existing lease guidance. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842 which clarifies certain areas within ASU 2016-02. ASU 2018-11 Targeted Improvements to Topic 842, Leases . This amendment provides entities with an additional (and optional) transition method to adopt the new leases standard. Under this new transition method, an entity initially applies the new leases standard at the adoption date. The Company adopted this guidance on November 1, 2019. The Company has applied ASU 2016-02 and all related amendments ("ASC 842") using the current period adjustment method. The Company did not record any adjustments to the opening balance of retained earnings as of November 1, 2019. Therefore, the comparative information has not been adjusted and continues to be presented under prior lease guidance. In addition, the Company elected the following package of practical expedients on a consistent basis permitting entities not to reassess: (1) whether any expired or existing contract are/or contain a lease; (2) lease classification for any expired or existing leases; (3) whether initial direct costs for any expired or existing leases qualify for capitalization under the new amended guidance. As a result, as of November 1, 2019, we recorded right-of-use ("ROU") assets of $50,540 for operating leases and $2,000 for financing leases. This standard did not have a material impact on the Company's condensed consolidated statement of operations or statement of cash flows. The Company determines if an arrangement is a lease at inception. Operating leases are included in ROU assets and the Company's short-term and long-term operating lease liability on our Condensed Consolidated Balance Sheets. Finance leases are included in other assets, other current liabilities, and other non-current liabilities on our Condensed Consolidated Balance Sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the term of the lease. The Company includes options to extend or terminate the lease when it is reasonably certain that we will exercise that option. As most of the Company's leases do not provide an implicitly stated rate within the contract, we use our incremental borrowing rate based on third party information available at the commencement date in determining the present value of lease payments. Lease expenses for lease payments on operating leases are recognized on a straight-line basis over the lease term. Additionally, the Company does not record a ROU asset or lease liability for leases with an expected lease term of 12 months or less. The Company has lease arrangements with lease and non-lease components, which are accounted for separately across the Company's portfolio of leases. The non-lease components consist of maintenance, insurance, taxes and other expenses, and are immaterial. The Company has exercised the land easement expedient and will continue to treat land leases under legacy GAAP provisions of ASC 840, Leases . If a modification or extension happens to a land lease, the Company will then treat the lease under the ASC 842 requirements. Current land leases are being recorded in other assets on the Company's Condensed Consolidated Balance Sheets. |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended | 9 Months Ended |
Apr. 30, 2020 | Jul. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue from External Customers by Geographic Areas [Table Text Block] | Net Revenues Net Revenues Three Months Ended July 31, Nine Months Ended July 31, Geographic Region: 2020 2019 2020 2019 North America $ 112,141 $ 198,409 $ 404,498 $ 590,577 Europe 34,176 61,507 131,113 194,294 Asia 9,050 3,529 21,170 10,877 Total Company $ 155,367 $ 263,445 556,781 $ 795,748 | The following table summarizes revenue for the three and nine months ended July 31, 2020 and 2019: Net Revenues Three Months Ended July 31, Nine Months Ended July 31, Region: 2020 2019 2020 2019 North America $ 114,133 $ 203,920 $ 412,336 $ 606,872 Europe 34,696 61,685 131,672 194,883 Asia 13,188 3,529 30,595 10,877 Eliminations (6,650) (5,689) (17,822) (16,884) Total Company $ 155,367 $ 263,445 $ 556,781 $ 795,748 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Apr. 30, 2020 | |
Leases [Abstract] | |
Lease, Cost | Operating lease expenses are classified as cost of products sold and operating expenses on the Condensed Consolidated Statement of Operations. The components of lease expense for the three and nine months ended July 31, 2020 are as follows: Lease cost Three Months Ended July 31, 2020 Nine Months Ended July 31, 2020 Finance lease expense Amortization of right-of-use asset $ 99 $ 427 Interest on lease liability 11 23 Total finance lease cost $ 110 $ 450 Operating lease expense Operating leases $ 3,032 $ 9,465 Short-term leases (1) 276 760 Total lease expense $ 3,308 $ 10,225 (1) Includes expenses for month-to-month equipment leases, which are classified as short-term as the Company is not reasonably certain to renew the lease term beyond a month. The weighted average remaining operating and finance lease terms and weighted average discount rates are as follows: July 31, 2020 Weighted average remaining lease term of operating leases (in years) 13.9 Weighted average discount rate of operating leases 6.44% Weighted average remaining lease term of finance leases (in years) 0.25 Weighted average discount rate of finance leases 4.57% Other supplemental cash flow information related to leases is as follows: Other Information Three Months Ended July 31, 2020 Nine Months Ended July 31, 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash outflows from finance leases $ 11 $ 23 Operating cash outflows from operating leases 1,879 6,118 Financing cash outflows from finance leases 294 495 |
Lessee, Operating Lease, Liability, Maturity | Maturities of operating and finance lease liabilities as of July 31, 2020 are as follows: Years Ending October 31, 2020 (1) $ 2,955 2021 10,422 2022 8,444 2023 6,806 2024 4,934 Thereafter 40,562 Total lease payments 74,123 Less: imputed interest 20,866 Total lease liabilities (2) $ 53,257 (1) Excluding the nine months ended July 31, 2020. (2) Operating lease payments include $18,778 related to options to extend lease terms that are reasonably certain of being exercised. |
Finance Lease, Liability, Maturity | Maturities of operating and finance lease liabilities as of July 31, 2020 are as follows: Years Ending October 31, 2020 (1) $ 2,955 2021 10,422 2022 8,444 2023 6,806 2024 4,934 Thereafter 40,562 Total lease payments 74,123 Less: imputed interest 20,866 Total lease liabilities (2) $ 53,257 (1) Excluding the nine months ended July 31, 2020. (2) Operating lease payments include $18,778 related to options to extend lease terms that are reasonably certain of being exercised. |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | The aggregate amount of future minimum annual rental payments applicable to non-cancelable leases as of October 31, 2019 were as follows: Year Ending October 31, 2020 $ 12,040 2021 8,960 2022 5,102 2023 3,816 2024 2,717 Thereafter 10,513 Total $ 43,148 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 6 Months Ended |
Apr. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories, net consists of the following: July 31, 2020 October 31, 2019 Raw materials $ 22,512 $ 26,653 Work in process 20,558 21,369 Finished goods 18,860 19,470 Reserves (7,647) (3,945) Total inventories, net $ 54,283 $ 63,547 |
Goodwil and Intangible Assets (
Goodwil and Intangible Assets (Tables) | 6 Months Ended |
Apr. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | The changes in the carrying amount of goodwill for the nine months ended July 31, 2020 are as follows: Balance October 31, 2019 $ 22,395 Impairment (21,971) Foreign currency translation (424) Balance July 31, 2020 $ — |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | The changes in the carrying amount of finite-lived intangible assets for the nine months ended July 31, 2020 are as follows: Customer Relationships Developed Technology Trade Name Trademark Total Balance October 31, 2019 $ 8,977 $ 2,979 $ 1,008 $ 61 $ 13,025 Impairment (3,313) (1,148) (377) (20) (4,858) Amortization expense (998) (294) (93) (11) (1,396) Foreign currency translation 3 102 — — 105 Balance July 31, 2020 $ 4,669 $ 1,639 $ 538 $ 30 $ 6,876 |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block] | July 31, 2020 Weighted Average Useful Life (years) Gross Carrying Value Net of Foreign Currency Accumulated Amortization Impairment Net Customer relationships 6.2 $ 17,564 $ (9,582) $ (3,313) $ 4,669 Developed technology 8.4 7,236 (4,449) (1,148) 1,639 Trade name 7.4 1,875 (960) (377) 538 Trademark 3.0 166 (116) (20) 30 $ 26,841 $ (15,107) $ (4,858) $ 6,876 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Twelve Months Ended July 31, 2021 $ 1,299 2022 1,299 2023 1,299 2024 1,290 2025 1,070 Thereafter 1,528 $ 7,785 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 6 Months Ended |
Apr. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | Debt consists of the following: July 31, October 31, 2019 Credit Agreement—interest rate of 6.01% at July 31, 2020 and 5.18% at October 31, 2019 $ 322,900 $ 248,695 Capital lease obligations 1,879 1,975 Total debt 324,779 250,670 Less: Current debt 324,779 1,975 Total long-term debt $ — $ 248,695 |
Schedule of Maturities of Debt [Table Text Block] | Scheduled repayments of debt for the next five years are listed below: Twelve Months Ending July 31, Credit Agreement Capital Lease Obligations Total 2021 $ — $ 1,879 $ 1,879 2022 — — — 2023 322,900 1 — 322,900 2024 — — — 2025 — — — Total $ 322,900 $ 1,879 $ 324,779 1 - Based on the current credit agreement the $322,900 in debt is due in 2023 but is classified as current debt because the waivers for the pre-existing financial covenants expire in less than twelve months and the Company will not comply with future covenants based on current forecasts. The contractual terms above do not reflect any violation of covenants. Subsequently, the Company filed the Chapter 11 Cases on August 30, 2020. |
Components of Net Periodic Bene
Components of Net Periodic Benefit Cost (Table) | 3 Months Ended |
Jul. 31, 2020 | |
Defined Benefit Plan [Abstract] | |
Schedule of Costs of Retirement Plans [Table Text Block] | The components of net periodic benefit cost for the three and nine months ended July 31, 2020 and 2019 are as follows: Pension Benefits Other Post-Retirement Three Months Ended July 31, Three Months Ended July 31, 2020 2019 2020 2019 Interest cost $ 675 $ 843 $ 2 $ 3 Expected return on plan assets (831) (836) — — Amortization of net actuarial loss 374 288 2 1 Net periodic cost $ 218 $ 295 $ 4 $ 4 |
Amounts Recognized Into Other C
Amounts Recognized Into Other Comprehensive Loss (Tables) | 6 Months Ended |
Apr. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive loss in stockholders' equity (deficit) by component for the three and nine months ended July 31, 2020 is as follows: Pension and Post Retirement Plan Liability (1) Marketable Securities Adjustment (1) Interest Rate Swap Adjustment (2) Foreign Currency Translation Adjustment (3) Accumulated Other Comprehensive Loss Balance at April 30, 2020 $ (37,303) $ — $ (633) $ (32,518) $ (70,454) Other comprehensive income (loss), net of tax — — (72) 13,671 13,599 Amounts reclassified from accumulated other comprehensive loss, net of tax 290 — 283 — 573 Net current-period other comprehensive income (loss) 290 — 211 13,671 14,172 Balance at July 31, 2020 $ (37,013) $ — $ (422) $ (18,847) $ (56,282) Pension and Post Retirement Plan Liability (1) Marketable Securities Adjustment (1) Interest Rate Swap Adjustment (2) Foreign Currency Translation Adjustment (3) Accumulated Other Comprehensive Loss Balance at October 31, 2019 $ (37,883) $ — $ (628) $ (26,515) $ (65,026) Other comprehensive income (loss), net of tax — — (428) 7,668 7,240 Amounts reclassified from accumulated other comprehensive loss, net of tax 870 — 634 — 1,504 Net current-period other comprehensive income (loss) 870 — 206 7,668 8,744 Balance at July 31, 2020 $ (37,013) $ — $ (422) $ (18,847) $ (56,282) (1) Amounts reclassified from accumulated other comprehensive loss, net of tax are classified with other expense included on the statements of operations. (2) Amounts reclassified from accumulated other comprehensive loss, net of tax are classified with interest expense included on the statements of operations. |
Derivatives and Financial Ins_2
Derivatives and Financial Instruments (Tables) | 6 Months Ended |
Apr. 30, 2020 | |
Derivative and Financial Instruments [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The following table discloses the fair value and balance sheet location of our derivative instruments: Asset (Liability) Derivatives Balance Sheet Location July 31, 2020 October 31, 2019 Cash Flow Hedging Instruments: Interest rate swap contracts (Other accrued expenses) $ (548) $ (814) |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location [Table Text Block] | Location Three Months Ended July 31, 2020 Three Months Ended July 31, 2019 Interest expense $ 5,379 $ 4,633 Effect of hedging on interest expense $ 283 $ 51 Location Nine Months Ended July 31, 2020 Nine Months Ended Interest expense $ 14,362 $ 11,836 Effect of hedging on interest expense $ 634 $ (564) |
Stock Incentive Compensation (T
Stock Incentive Compensation (Tables) | 3 Months Ended | 6 Months Ended |
Jul. 31, 2020 | Apr. 30, 2020 | |
Equity [Abstract] | ||
Schedule of share based compensation activity | The following table summarizes the Company’s Incentive Plan activity for the nine months ended July 31, 2020 and 2019: Stock Options Restricted Stock Restricted Stock Units Outstanding at: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life Restricted Shares Grant Fair Value Weighted Average Remaining Contractual Life Restricted Share Units Grant Fair Value Weighted Average Remaining Contractual Life November 1, 2018 33 $9.42 1.84 478 $7.45 1.87 27 $8.17 1.37 Granted — — 418 6.73 42 6.47 Options exercised or restricted stock vested — — (230) 6.84 (14) 7.98 Forfeited or expired — — (54) 7.39 (4) 7.35 July 31, 2019 33 $9.42 1.09 612 $7.20 1.97 51 $6.84 2.00 November 1, 2019 23 $11.25 1.31 603 $7.00 1.86 47 $6.81 1.88 Granted — — 677 3.30 55 3.60 Options exercised or restricted stock vested — — (246) 7.11 (21) 7.10 Forfeited or expired — — (268) 5.08 (38) 4.37 July 31, 2020 23 $11.25 0.56 766 $4.30 1.64 43 $4.75 1.95 | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | We recorded stock compensation expense related to stock options, restricted stock and restricted stock units during the three and nine months ended July 31, 2020 and 2019 as follows: Three Months Ended July 31, 2020 2019 Restricted stock $ 250 $ 544 Restricted stock units 14 42 Total $ 264 $ 586 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Apr. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value on Recurring Basis | Assets and liabilities remeasured and disclosed at fair value on a recurring basis at July 31, 2020 and October 31, 2019 are set forth in the table below: Asset (Liability) Level 1 Level 2 Valuation Technique October 31, 2019 Interest Rate Swap Contracts $ (814) — $ (814) Income Approach July 31, 2020 Interest Rate Swap Contracts (548) — (548) Income Approach |
Restructuring (Tables)
Restructuring (Tables) | 6 Months Ended |
Apr. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | The following table presents information about restructuring costs recorded for the three and nine months ended July 31, 2020 and 2019: Three Months Ended July 31, Nine Months Ended July 31, 2020 2019 2020 2019 Employee costs $ 2,049 $ 947 $ 4,013 $ 2,377 Professional and legal costs 128 2,608 9,013 6,769 Other 19 350 371 2,225 $ 2,196 $ 3,905 $ 13,397 $ 11,371 |
Schedule of Restructuring Reserve | The following table presents a rollforward of the beginning and ending liability balances related to the restructuring costs which are included in the condensed consolidated balance sheets in other accrued expenses for the above-mentioned actions through July 31, 2020 and July 31, 2019: Balance as of October 31, 2018 Restructuring Expense Payments Balance as of July 31, 2019 Employee costs $ 367 $ 2,377 $ (2,744) $ — Professional and legal costs 248 6,769 (4,792) 2,225 Other — 2,225 (2,225) — $ 615 $ 11,371 $ (9,761) $ 2,225 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Apr. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share [Table Text Block] | The following is a reconciliation of the numerator and denominator of the basic and diluted earnings per share computation for net loss per share: Three Months Ended July 31, Nine Months Ended July 31, 2020 2019 2020 2019 Net loss available to common stockholders $ (137,134) $ (2,709) $ (199,522) $ (6,295) Basic weighted average shares 23,824 23,557 23,754 23,486 Effect of dilutive securities: Restricted stock, units and stock options (1) — — — — Diluted weighted average shares 23,824 23,557 23,754 23,486 Basic loss per share $ (5.76) $ (0.11) $ (8.40) $ (0.27) Diluted loss per share $ (5.76) $ (0.11) $ (8.40) $ (0.27) (1) Due to a loss for the three and nine months ended July 31, 2020 and three and nine months ended July 31, 2019 no restricted stock, restricted stock units or stock options are included because the effect would be anti-dilutive. |
Business Segment Information Bu
Business Segment Information Business Segment Information (Tables) | 6 Months Ended | 9 Months Ended |
Apr. 30, 2020 | Jul. 31, 2020 | |
Segments, Geographical Areas [Abstract] | ||
Revenue from External Customers by Geographic Areas [Table Text Block] | Net Revenues Net Revenues Three Months Ended July 31, Nine Months Ended July 31, Geographic Region: 2020 2019 2020 2019 North America $ 112,141 $ 198,409 $ 404,498 $ 590,577 Europe 34,176 61,507 131,113 194,294 Asia 9,050 3,529 21,170 10,877 Total Company $ 155,367 $ 263,445 556,781 $ 795,748 | The following table summarizes revenue for the three and nine months ended July 31, 2020 and 2019: Net Revenues Three Months Ended July 31, Nine Months Ended July 31, Region: 2020 2019 2020 2019 North America $ 114,133 $ 203,920 $ 412,336 $ 606,872 Europe 34,696 61,685 131,672 194,883 Asia 13,188 3,529 30,595 10,877 Eliminations (6,650) (5,689) (17,822) (16,884) Total Company $ 155,367 $ 263,445 $ 556,781 $ 795,748 |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The foreign currency gain (loss) is included as a component of other expense, net in the condensed consolidated statements of operations. Foreign Currency Gain (Loss) Foreign Currency Gain (Loss) Three Months Ended July 31, Nine Months Ended July 31, Geographic Region: 2020 2019 2020 2019 North America $ 234 $ (221) $ (286) $ (10) Europe (2,308) 679 $ (1,684) $ 476 Asia 8 (195) $ (15) $ 2 | |
Long-lived Assets by Geographic Areas [Table Text Block] | Long-lived assets consist primarily of net property, plant and equipment, goodwill and intangibles. Due to the continued decline of our business, we concluded an interim test of long-lived assets was required. During the nine months ended July 31, 2020, we recorded an asset impairment charge on fixed assets and intangible assets of $109,633 related to a decline in fair value and $2,500 related to equipment not placed in service. Long-Lived Assets Geographic Region: July 31, 2020 October 31, 2019 North America $ 139,777 $ 268,913 Europe 57,029 81,532 Asia 13,117 13,001 Total Company $ 209,923 $ 363,446 |
Basis of Presentation (Details)
Basis of Presentation (Details) - Interest Rate Swap [Member] - USD ($) $ in Thousands | Jul. 31, 2020 | Oct. 31, 2019 |
Other Liabilities [Member] | Cash Flow Hedging [Member] | ||
Derivative Liability | $ (548) | $ (814) |
Fair Value, Recurring [Member] | ||
Derivative Liability | $ (548) |
Recent Accounting Standards N_2
Recent Accounting Standards New Accounting Standards (Details) - USD ($) $ in Thousands | Jul. 31, 2020 | Oct. 31, 2019 | Nov. 01, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease, right-of-use asset | $ 51,378 | $ 0 | |
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease, right-of-use asset | $ 50,540 | ||
Operating lease, liability | $ 2,000 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue, Net | $ 155,367 | $ 263,445 | $ 556,781 | $ 795,748 |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, Net | 114,133 | 203,920 | 412,336 | 606,872 |
Europe [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, Net | 34,696 | 61,685 | 131,672 | 194,883 |
Asia [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, Net | 13,188 | 3,529 | 30,595 | 10,877 |
Reportable Geographical Components [Member] | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, Net | 112,141 | 198,409 | 404,498 | 590,577 |
Reportable Geographical Components [Member] | Europe [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, Net | 34,176 | 61,507 | 131,113 | 194,294 |
Reportable Geographical Components [Member] | Asia [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, Net | 9,050 | 3,529 | 21,170 | 10,877 |
Geography Eliminations [Member] | Rest of World [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, Net | $ (6,650) | $ (5,689) | $ (17,822) | $ (16,884) |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Jul. 31, 2020 | Jul. 31, 2020 | |
Leases [Abstract] | ||
Amortization of right-of-use asset | $ 99 | $ 427 |
Interest on lease liability | 11 | 23 |
Total finance lease cost | 110 | 450 |
Operating leases | 3,032 | 9,465 |
Short-term leases | 276 | 760 |
Total lease expense | $ 3,308 | $ 10,225 |
Leases - Weighted Average Remai
Leases - Weighted Average Remaining Operating and Finance Lease Terms and Weighted Average Discount Rates (Details) | Jul. 31, 2020 |
Leases [Abstract] | |
Weighted average remaining lease term of operating leases (in years) | 13 years 10 months 24 days |
Weighted average discount rate of operating leases | 6.44% |
Weighted average remaining lease term of finance leases (in years) | 3 months |
Weighted average discount rate of finance leases | 4.57% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Jul. 31, 2020 | Jul. 31, 2020 | |
Leases [Abstract] | ||
Operating cash outflows from finance leases | $ 11 | $ 23 |
Operating cash outflows from operating leases | 1,879 | 6,118 |
Financing cash outflows from finance leases | $ 294 | $ 495 |
Leases - Maturities of Operatin
Leases - Maturities of Operating and FInance Lease Liability Payments (Details) - USD ($) $ in Thousands | Jul. 31, 2020 | Apr. 30, 2020 |
Leases [Abstract] | ||
2020 | $ 2,955 | |
2021 | 10,422 | |
2022 | 8,444 | |
2023 | 6,806 | |
2024 | 4,934 | |
Thereafter | 40,562 | |
Total lease payments | 74,123 | |
Less: imputed interest | 20,866 | |
Total lease liabilities | $ 53,257 | |
Operating lease payments | $ 18,778 |
Leases - Future Minimum Annual
Leases - Future Minimum Annual Rental Payments Applicable to Non-Cancelable Leases (Details) $ in Thousands | Oct. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 12,040 |
2021 | 8,960 |
2022 | 5,102 |
2023 | 3,816 |
2024 | 2,717 |
Thereafter | 10,513 |
Total | $ 43,148 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Jul. 31, 2020 | Jul. 31, 2019 | Apr. 30, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | Apr. 30, 2020 | Oct. 31, 2019 | |
Trade Receivables Held-for-sale, Amount | $ 3,235 | $ 3,235 | $ 2,538 | ||||
Allowance for Doubtful Accounts | $ 1,147 | 884 | |||||
Accounts Receivable, Credit Loss Expense (Reversal) | 1,993 | $ 3 | 2,535 | $ 329 | |||
Accounts Receivable Factored | $ 8,779 | 5,966 | |||||
Accounts receivable recourse liability | $ 4,578 | $ 4,578 | $ 9,188 |
Related Party Receivables (Deta
Related Party Receivables (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | Oct. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Related-party accounts receivable | $ 605 | $ 605 | $ 1,477 | ||
MTD Holdings Inc. [Member] | Significant Shareholder [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Revenue from Related Parties | 1,309 | $ 1,322 | 4,225 | $ 5,521 | |
Related-party accounts receivable | $ 605 | $ 605 | $ 1,477 |
Inventories, Net (Details)
Inventories, Net (Details) - USD ($) $ in Thousands | Jul. 31, 2020 | Oct. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw Materials | $ 22,512 | $ 26,653 |
Work-in-process | 20,558 | 21,369 |
Finished goods | 18,860 | 19,470 |
Inventory Valuation Reserves | (7,647) | (3,945) |
Total inventories, net | $ 54,283 | $ 63,547 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets Changes in carrying amount of goodwill (Details) $ in Thousands | 9 Months Ended |
Jul. 31, 2020USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, Impairment Loss | $ (21,971) |
Goodwill at beginning of period | 22,395 |
Foreign currency translation | (424) |
Goodwill at end of period | $ 0 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets Changes in carrying amount of finite-lived intangible assets (Details) $ in Thousands | 9 Months Ended |
Jul. 31, 2020USD ($) | |
Finite-lived Intangible Assets [Roll Forward] | |
Intangible Assets, Net, Beginning of Period | $ 13,025 |
Impairment | (4,858) |
Amortization expense | (1,396) |
Foreign currency translation and other | 105 |
Intangible Assets, Net, End of Period | 6,876 |
Customer Relationships [Member] | |
Finite-lived Intangible Assets [Roll Forward] | |
Intangible Assets, Net, Beginning of Period | 8,977 |
Impairment | (3,313) |
Amortization expense | (998) |
Foreign currency translation and other | 3 |
Intangible Assets, Net, End of Period | 4,669 |
Developed Technology Rights [Member] | |
Finite-lived Intangible Assets [Roll Forward] | |
Intangible Assets, Net, Beginning of Period | 2,979 |
Impairment | (1,148) |
Amortization expense | (294) |
Foreign currency translation and other | 102 |
Intangible Assets, Net, End of Period | 1,639 |
Trade Names [Member] | |
Finite-lived Intangible Assets [Roll Forward] | |
Intangible Assets, Net, Beginning of Period | 1,008 |
Impairment | (377) |
Amortization expense | (93) |
Foreign currency translation and other | 0 |
Intangible Assets, Net, End of Period | 538 |
Trademarks [Member] | |
Finite-lived Intangible Assets [Roll Forward] | |
Intangible Assets, Net, Beginning of Period | 61 |
Impairment | (20) |
Amortization expense | (11) |
Foreign currency translation and other | 0 |
Intangible Assets, Net, End of Period | $ 30 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 01, 2018 | Jul. 31, 2020 | Jul. 31, 2019 | Apr. 30, 2020 | Jul. 31, 2020 | Jul. 31, 2019 | Oct. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | |||||||
Cost | $ 26,841 | $ 26,841 | |||||
Accumulated Amortization | (15,107) | (15,107) | |||||
Amortization of Intangible Assets | 1,396 | ||||||
Impairment | (4,858) | (4,858) | |||||
Net | (6,876) | (6,876) | $ (13,025) | ||||
Amortization of Intangible Assets | (514) | $ (518) | (1,538) | $ (1,558) | |||
Asset impairment, net | 109,633 | $ 0 | 134,104 | $ 0 | |||
Finite-Lived Intangible Assets [Member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Asset impairment, net | 4,858 | ||||||
Property, Plant and Equipment [Member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Asset impairment, net | 104,775 | ||||||
Above Market Leases [Member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Amortization of Intangible Assets | (49) | (145) | |||||
Customer Relationships [Member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Finite-Lived Intangible Asset, Useful Life | 6 years 2 months 12 days | ||||||
Cost | 17,564 | 17,564 | |||||
Accumulated Amortization | (9,582) | (9,582) | |||||
Amortization of Intangible Assets | 998 | ||||||
Impairment | (3,313) | (3,313) | |||||
Net | (4,669) | (4,669) | (8,977) | ||||
Developed Technology Rights [Member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Finite-Lived Intangible Asset, Useful Life | 8 years 4 months 24 days | ||||||
Cost | 7,236 | 7,236 | |||||
Accumulated Amortization | (4,449) | (4,449) | |||||
Amortization of Intangible Assets | 294 | ||||||
Impairment | (1,148) | (1,148) | |||||
Net | (1,639) | (1,639) | (2,979) | ||||
Trade Names [Member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Finite-Lived Intangible Asset, Useful Life | 7 years 4 months 24 days | ||||||
Cost | 1,875 | 1,875 | |||||
Accumulated Amortization | (960) | (960) | |||||
Amortization of Intangible Assets | 93 | ||||||
Impairment | (377) | (377) | |||||
Net | (538) | (538) | (1,008) | ||||
Trademarks [Member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Finite-Lived Intangible Asset, Useful Life | 3 years | ||||||
Cost | 166 | 166 | |||||
Accumulated Amortization | (116) | (116) | |||||
Amortization of Intangible Assets | 11 | ||||||
Impairment | (20) | (20) | |||||
Net | $ (30) | $ (30) | $ (61) | ||||
Brabant Italy Site Verres S.r.l. [Member] | Above Market Leases [Member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Finite-lived Intangible Assets Acquired | $ 1,458 | ||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years | ||||||
Brabant Italy Site Verres S.r.l. [Member] | Other Intangible Assets [Member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Accumulated Amortization | $ (909) |
Schedule of Amortization Expens
Schedule of Amortization Expense Next 5 Years (Details) $ in Thousands | Jul. 31, 2020USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
2021 | $ 1,299 |
2022 | 1,299 |
2023 | 1,299 |
2024 | 1,290 |
2025 | 1,070 |
Thereafter | 1,528 |
Total Future Amortization | $ 7,785 |
Financing Balances at Period En
Financing Balances at Period End (Details) - USD ($) $ in Thousands | Jul. 31, 2020 | Apr. 30, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 |
Debt Instrument [Line Items] | |||||
Credit Agreement Interest Rate: | 6.01% | 5.18% | |||
Long-term Debt | $ 322,900 | ||||
Total Debt | $ 324,779 | $ 250,670 | |||
Debt, Current | 324,779 | 1,975 | |||
Long-term debt | 0 | 248,695 | |||
Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | 322,900 | 248,695 | |||
Capital Lease Obligations [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | $ 1,879 | $ 1,975 |
Financing Arrangements (Details
Financing Arrangements (Details) $ in Thousands | Jun. 26, 2020USD ($) | Jun. 11, 2020 | Jul. 11, 2020USD ($) | Oct. 31, 2020 | Oct. 31, 2020USD ($) | Aug. 31, 2020USD ($) | Apr. 30, 2020USD ($) | Apr. 30, 2019 | Jul. 31, 2020USD ($) | Oct. 31, 2019USD ($) |
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Interest Rate During Period | 5.05% | 5.26% | ||||||||
Line of Credit Facility, Commitment Fee Percentage | 0.65% | |||||||||
Debt Instrument, Covenant, Interest Coverage Ratio | 3.50 | |||||||||
Debt Instrument, Covenant, Leverage Ratio, Maximum | 4.25 | 4.25 | ||||||||
Debt Covenant, Minimum Liquidity | $ 40,000 | $ 35,000 | ||||||||
Letters of Credit Outstanding, Amount | $ 4,804 | |||||||||
Collateral Agreement | 66.00% | |||||||||
Long-term Debt | $ 322,900 | |||||||||
Revolving Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term Debt | $ 322,900 | $ 248,695 | ||||||||
Capital Lease Obligations [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term Debt | $ 1,879 | $ 1,975 | ||||||||
London Interbank Offered Rate (LIBOR) [Member] | Lender Group One [Member] | Revolving Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 5.00% | |||||||||
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | Lender Group Two [Member] | Revolving Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||||||||
Base Rate [Member] | Lender Group One [Member] | Revolving Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 4.00% | |||||||||
Credit Agreement [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Covenant, Interest Coverage Ratio | 3.5 | |||||||||
Debt Instrument, Covenant, Leverage Ratio, Maximum | 4.50 | |||||||||
Subsequent Event [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Covenant, Minimum Liquidity | $ 30,000 | |||||||||
Capital Expenditures Maximum Amount | $ 15,000 | |||||||||
Forecast [Member] | Credit Agreement [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Covenant, Leverage Ratio, Maximum | 3.25 | 3.25 |
Debt Maturities of Debt (Detail
Debt Maturities of Debt (Details) - USD ($) $ in Thousands | Jul. 31, 2020 | Apr. 30, 2020 | Oct. 31, 2019 |
Debt Instrument [Line Items] | |||
Long-term Debt | $ 322,900 | ||
2021 | $ 1,879 | ||
2022 | 0 | ||
2023 | 322,900 | ||
2024 | 0 | ||
2025 | 0 | ||
Total Debt | 324,779 | $ 250,670 | |
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
2021 | 0 | ||
2022 | 0 | ||
2023 | 322,900 | ||
2024 | 0 | ||
2025 | 0 | ||
Long-term Debt | 322,900 | 248,695 | |
Capital Lease Obligations [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 1,879 | $ 1,975 | |
2021 | 1,879 | ||
2022 | 0 | ||
2023 | 0 | ||
2024 | 0 | ||
2024 | 0 | ||
Total | $ 1,879 |
Components of Net Periodic Be_2
Components of Net Periodic Benefit Cost (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Jan. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2019 | Apr. 30, 2020 | Jul. 31, 2020 | Jul. 31, 2019 | |
Pension Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Interest cost | $ 675,000 | $ 843,000 | $ 2,026,000 | $ 2,525,000 | ||
Expected return on plan assets | (831,000) | (836,000) | (2,493,000) | (2,506,000) | ||
Defined Benefit Plan, Amortization of Gain (Loss) | 374,000 | 288,000 | 1,122,000 | 861,000 | ||
Net periodic (benefit) cost | 218,000 | 295,000 | 655,000 | 880,000 | ||
Pension Contributions | $ 219,000 | |||||
Other Postretirement Benefits Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Interest cost | 2,000 | 3,000 | 6,000 | 9,000 | ||
Expected return on plan assets | 0 | 0 | 0 | 0 | ||
Defined Benefit Plan, Amortization of Gain (Loss) | 2,000 | 1,000 | 6,000 | 4,000 | ||
Net periodic (benefit) cost | $ 4,000 | $ 4,000 | $ 12,000 | $ 13,000 | ||
Forecast [Member] | Pension Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Pension Contributions | $ 897,000 |
Pension and Other Post-Retire_2
Pension and Other Post-Retirement Benefit Matters Non-U.S. Plans (Details) - Pension Plan [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Jul. 31, 2020 | Jul. 31, 2019 | Apr. 30, 2020 | Jul. 31, 2020 | Jul. 31, 2019 | Oct. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||||||
Pension Contributions | $ 219 | |||||
Foreign Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Accumulated benefit obligation | $ 1,467 | $ 1,467 | $ 1,267 | |||
Pension Contributions | $ 361 | $ 40 | $ 740 | $ 223 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss Amounts Recognized Into Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Jul. 31, 2020 | Jul. 31, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | $ 100,818 | $ 167,514 |
Ending Balance | (21,880) | (21,880) |
Pension and Post Retirement Plan Liability [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (37,303) | (37,883) |
Other comprehensive income (loss) | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 290 | (870) |
Net current-period other comprehensive income (loss) | 290 | 870 |
Ending Balance | (37,013) | (37,013) |
Marketable Securities [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | 0 | 0 |
Other comprehensive income (loss) | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 0 | 0 |
Net current-period other comprehensive income (loss) | 0 | 0 |
Ending Balance | 0 | 0 |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (628) | |
Other comprehensive income (loss) | (428) | |
Amounts reclassified from accumulated other comprehensive loss, net of tax | (634) | |
Net current-period other comprehensive income (loss) | 206 | |
Ending Balance | (422) | (422) |
Interest Rate Swap Adjustment [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (633) | |
Other comprehensive income (loss) | (72) | |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 283 | |
Net current-period other comprehensive income (loss) | 211 | |
Ending Balance | (422) | (422) |
Accumulated Translation Adjustment [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (32,518) | (26,515) |
Other comprehensive income (loss) | 13,671 | 7,668 |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 0 | 0 |
Net current-period other comprehensive income (loss) | 13,671 | 7,668 |
Ending Balance | (18,847) | (18,847) |
AOCI Attributable to Parent [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (70,454) | (65,026) |
Other comprehensive income (loss) | 13,599 | 7,240 |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 573 | (1,504) |
Net current-period other comprehensive income (loss) | 14,172 | 8,744 |
Ending Balance | $ (56,282) | $ (56,282) |
Derivatives and Financial Ins_3
Derivatives and Financial Instruments Derivatives and Financial Instruments (Details) - USD ($) $ in Thousands | Feb. 28, 2021 | Aug. 31, 2020 | Feb. 29, 2020 | Jul. 31, 2020 | Jul. 31, 2019 | Apr. 30, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | Oct. 31, 2019 | Feb. 28, 2018 | Mar. 01, 2016 | Sep. 01, 2015 | Feb. 24, 2014 |
Derivative [Line Items] | |||||||||||||
Derivatives, Interest Rate Swap, Maturity | 5 years | ||||||||||||
Interest expense | $ 5,379 | $ 4,633 | $ 14,362 | $ 11,836 | |||||||||
Cross Currency Interest Rate Contract [Member] | |||||||||||||
Derivative [Line Items] | |||||||||||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | $ 5,110 | ||||||||||||
Interest Rate Swap [Member] | |||||||||||||
Derivative [Line Items] | |||||||||||||
Derivative, Notional Amount, Second Amount Per Base | $ 25,000 | ||||||||||||
Derivative, Notional Amount, Final Amount Per Base | $ 25,000 | ||||||||||||
Other Liabilities [Member] | Cash Flow Hedging [Member] | Interest Rate Swap [Member] | |||||||||||||
Derivative [Line Items] | |||||||||||||
Derivative Liability | (548) | (548) | $ (814) | ||||||||||
Euro Member Countries, Euro | Cross Currency Interest Rate Contract [Member] | |||||||||||||
Derivative [Line Items] | |||||||||||||
Derivative, Notional Amount | $ 53,000 | ||||||||||||
London Interbank Offered Rate (LIBOR) [Member] | Cross Currency Interest Rate Contract [Member] | |||||||||||||
Derivative [Line Items] | |||||||||||||
Derivative, Notional Amount | $ 64,930 | ||||||||||||
Interest Expense [Member] | |||||||||||||
Derivative [Line Items] | |||||||||||||
Gain (Loss) on Derivative Instruments, Net, Pretax | 283 | $ 51 | 634 | $ (564) | |||||||||
Lender Group Two [Member] | Revolving Credit Facility [Member] | Interest Rate Swap [Member] | |||||||||||||
Derivative [Line Items] | |||||||||||||
Derivative, Notional Amount | $ 75,000 | ||||||||||||
Derivative, Fixed Interest Rate | 2.74% | ||||||||||||
Derivative, Notional Amount, Amount Per Base | $ 25,000 | ||||||||||||
Fair Value, Recurring [Member] | Interest Rate Swap [Member] | |||||||||||||
Derivative [Line Items] | |||||||||||||
Derivative Liability | (548) | (548) | |||||||||||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member] | |||||||||||||
Derivative [Line Items] | |||||||||||||
Derivative Liability | $ (548) | $ (548) | |||||||||||
Subsequent Event [Member] | |||||||||||||
Derivative [Line Items] | |||||||||||||
Derivatives, Interest Rate Swap, Maturity | 5 years | 5 years |
Stock Incentive Compensation We
Stock Incentive Compensation Weighted Average Assumptions for Grants (Details) | 6 Months Ended |
Apr. 30, 2019shares | |
Class of Stock [Line Items] | |
Number of Shares Available for Grant | 1,500,000,000 |
Employee Stock Option and / or Stock Appreication Righs (SARs) [Member] | |
Class of Stock [Line Items] | |
Maximum Number of Shares Per Employee | 500,000,000 |
Restricted Stock, Restricted Stock Units (RSUs) and Performance Based Awards [Member] | |
Class of Stock [Line Items] | |
Maximum Number of Shares Per Employee | 350,000,000 |
Stock Incentive Compensation Ac
Stock Incentive Compensation Activity - Stock Option, Restricted Stock and Restricted Stock Units (Details) - $ / shares | Nov. 01, 2019 | Nov. 01, 2018 | Jan. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 |
Share-based Payment Arrangement, Option [Member] | |||||
Number of Shares | |||||
Granted | 0 | ||||
Exercised | 0 | 0 | |||
Canceled | 0 | 0 | |||
Options, Outstanding End of Period | 23,000 | 33,000 | 23,000 | 33,000 | |
Weighted-Average Exercise Price | |||||
Granted, Weighted Average Exercise Price Per Share | $ 0 | ||||
Exercised, Weighted Average Exercise Price Per Share | $ 0 | 0 | |||
Forfeitures and Expirations in Period, Weighted Average Exercise Price | 0 | 0 | |||
Options, Outstanding, End of Period, Weighted Average Exercise Price Per Share | $ 11.25 | $ 9.42 | $ 11.25 | $ 9.42 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 1 year 3 months 21 days | 1 year 10 months 2 days | 6 months 21 days | 1 year 1 month 2 days | |
Restricted Stock [Member] | |||||
Weighted-Average Exercise Price | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 1 year 10 months 9 days | ||||
Weighted Average Grant Date Fair Value Restricted Stock and RSUs | |||||
Stock, Granted | 677,000 | 418,000 | |||
Stock, Vested | (246,000) | (230,000) | |||
Stock, Forfeited | (268,000) | (54,000) | |||
Nonvested, End of Period | 603,000 | 478,000 | 766,000 | 612,000 | |
Granted, Weighted Average Grant Date Fair Value | $ 3.30 | $ 6.73 | |||
Vested, Weighted Average Grant Date Fair Value | 7.11 | 6.84 | |||
Forfeited, Weighted Average Grant Date Fair Value | 5.08 | 7.39 | |||
Nonvested, Weighted Average Grant Date Fair Value, End of Period | $ 7 | $ 7.45 | $ 4.30 | $ 7.20 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms | 1 year 10 months 13 days | 1 year 7 months 20 days | 1 year 11 months 19 days | ||
Restricted Stock Units (RSUs) [Member] | |||||
Weighted Average Grant Date Fair Value Restricted Stock and RSUs | |||||
Stock, Granted | 55,000 | 42,000 | |||
Stock, Vested | (21,000) | (14,000) | |||
Stock, Forfeited | (38,000) | (4,000) | |||
Nonvested, End of Period | 47,000 | 27,000 | 43,000 | 51,000 | |
Granted, Weighted Average Grant Date Fair Value | $ 3.60 | $ 6.47 | |||
Vested, Weighted Average Grant Date Fair Value | 7.10 | 7.98 | |||
Forfeited, Weighted Average Grant Date Fair Value | 4.37 | 7.35 | |||
Nonvested, Weighted Average Grant Date Fair Value, End of Period | $ 6.81 | $ 8.17 | $ 4.75 | $ 6.84 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms | 1 year 10 months 17 days | 1 year 4 months 13 days | 1 year 11 months 12 days | 2 years | |
Minimum [Member] | Share-based Payment Arrangement, Option [Member] | |||||
Class of Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||
Maximum [Member] | Share-based Payment Arrangement, Option [Member] | |||||
Class of Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 10 years |
Stock Incentive Compensation St
Stock Incentive Compensation Stock Based Compensation Equity Awards (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | Oct. 31, 2019 | |
Class of Stock [Line Items] | |||||
Compensation Expense Recognized | $ 264 | $ 586 | $ 1,386 | $ 1,576 | |
Share-based Payment Arrangement, Option [Member] | |||||
Class of Stock [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | 0 | 0 | $ 0 | ||
Restricted Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Compensation Expense Recognized | 250 | 544 | 1,283 | 1,461 | |
Compensation Cost, Nonvested Awards, Not yet Recognized | 2,298 | 2,298 | |||
Restricted Stock Units (RSUs) [Member] | |||||
Class of Stock [Line Items] | |||||
Compensation Expense Recognized | 14 | $ 42 | 103 | $ 115 | |
Compensation Cost, Nonvested Awards, Not yet Recognized | $ 142 | $ 142 |
Stock Incentive Compensation _2
Stock Incentive Compensation Stock Based Compensation Cash Incentive Awards (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense recognized | $ 264 | $ 586 | $ 1,386 | $ 1,576 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments Fair Value of Assets and Liabilities Measured on a Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 30, 2019 | Jul. 31, 2020 | Oct. 31, 2019 | |
Cross Currency Interest Rate Contract [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | $ 5,110 | ||
Interest Rate Swap [Member] | Fair Value, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset | $ (814) | ||
Derivative Liability | $ (548) | ||
Interest Rate Swap [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset | (814) | ||
Derivative Liability | (548) | ||
Interest Rate Swap [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset | $ 0 | $ 0 |
Restructuring (Details)
Restructuring (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | |
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | $ 5,478 | $ 615 | ||
Restructuring Charges | $ 2,196 | $ 3,905 | 13,397 | 11,371 |
Payments for Restructuring | (11,570) | (9,761) | ||
Ending Balance | 7,305 | 2,225 | 7,305 | 2,225 |
Facility Closing [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Costs | 41,859 | |||
Employee Severance [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | 2,639 | 367 | ||
Restructuring Charges | 2,049 | 947 | 4,013 | 2,377 |
Payments for Restructuring | (3,947) | (2,744) | ||
Ending Balance | 2,705 | 0 | 2,705 | 0 |
Legal and Professional Expenses [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | 1,672 | 248 | ||
Restructuring Charges | 128 | 2,608 | 9,013 | 6,769 |
Payments for Restructuring | (6,141) | (4,792) | ||
Ending Balance | 4,544 | 2,225 | 4,544 | 2,225 |
Other Restructuring [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | 1,167 | 0 | ||
Restructuring Charges | 19 | 350 | 371 | 2,225 |
Payments for Restructuring | (1,482) | (2,225) | ||
Ending Balance | $ 56 | $ 0 | $ 56 | $ 0 |
Income Taxes Income Taxes (Deta
Income Taxes Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Income tax (benefit) expense | $ 591 | $ 973 | $ (1,650) | $ 2,612 |
Income before income taxes | $ 137,725 | $ 3,682 | $ 197,872 | $ 8,907 |
Effective tax rate | (0.40%) | 26.40% | 0.80% | 29.30% |
Income Tax Examination [Line Items] | ||||
Effective tax rate | (0.40%) | 26.40% | 0.80% | 29.30% |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Percent | 28.10% | |||
U.S. | Internal Revenue Service | ||||
Income Tax Examination [Line Items] | ||||
Tax contingency | $ 7,000 |
Earnings Per Share Reconciliati
Earnings Per Share Reconciliation of Numerator and Denominator of the basic and diluted earnings per share computation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | |
Earnings Per Share [Abstract] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 46 | 141 | ||
Net loss available to common stockholders | $ (137,134) | $ (2,709) | $ (199,522) | $ (6,295) |
Basic weighted average number of common shares | 23,824 | 23,557 | 23,754 | 23,486 |
Restricted stock units and stock options (1) | 0 | 0 | 0 | 0 |
Diluted weighted average number of common shares | 23,824 | 23,557 | 23,754 | 23,486 |
Basic loss per share | $ (5.76) | $ (0.11) | $ (8.40) | $ (0.27) |
Diluted loss per share | $ (5.76) | $ (0.11) | $ (8.40) | $ (0.27) |
Business Segment Information _2
Business Segment Information Business Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | Oct. 31, 2019 | |
Segment Reporting Information [Line Items] | |||||
Revenue, Net | $ 155,367 | $ 263,445 | $ 556,781 | $ 795,748 | |
Long-Lived Assets | 209,923 | 209,923 | $ 363,446 | ||
Asset impairment, net | 109,633 | 0 | 134,104 | 0 | |
Equipment Not Placed In Service [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Asset impairment, net | 2,500 | ||||
Non-US [Member] | Reportable Geographical Components [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue, Net | 50,722 | 78,588 | 175,924 | 233,929 | |
North America | |||||
Segment Reporting Information [Line Items] | |||||
Revenue, Net | 114,133 | 203,920 | 412,336 | 606,872 | |
North America | Reportable Geographical Components [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue, Net | 112,141 | 198,409 | 404,498 | 590,577 | |
Foreign Currency Transaction Gain, before Tax | 234 | (221) | (286) | (10) | |
Long-Lived Assets | 139,777 | 139,777 | 268,913 | ||
Europe [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue, Net | 34,696 | 61,685 | 131,672 | 194,883 | |
Europe [Member] | Reportable Geographical Components [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue, Net | 34,176 | 61,507 | 131,113 | 194,294 | |
Foreign Currency Transaction Gain, before Tax | (2,308) | 679 | (1,684) | 476 | |
Long-Lived Assets | 57,029 | 57,029 | 81,532 | ||
Asia [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue, Net | 13,188 | 3,529 | 30,595 | 10,877 | |
Asia [Member] | Reportable Geographical Components [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue, Net | 9,050 | 3,529 | 21,170 | 10,877 | |
Long-Lived Assets | 13,117 | 13,117 | $ 13,001 | ||
CHINA | Reportable Geographical Components [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Foreign Currency Transaction Gain, before Tax | $ 8 | $ (195) | $ (15) | $ 2 | |
Sales [Member] | Non-US [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Concentration Risk, Percentage | 32.60% | 29.80% | 31.60% | 29.40% |
Other Matters (Details)
Other Matters (Details) $ in Millions | 12 Months Ended |
Oct. 31, 2019USD ($) | |
Business Acquisition [Line Items] | |
Business Acquisition, Pro Forma Revenue | $ 26.5 |
Business Acquisition, Pro Forma Net Income (Loss) | $ 4.5 |