Quarterly Financial Information

12 Months Ended

Jul. 31, 2015

Quarterly Financial Data [Abstract]

Quarterly Financial Information

NOTE O Quarterly Financial Information (Unaudited)

Consolidated unaudited quarterly financial information for 2015 and 2014 is as follows:

	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
	(thousands of dollars)
2015
Net sales	$	596,510	$	588,537	$	575,588	$	610,578
Gross profit		209,052		203,088		194,100		202,344
Net earnings		55,947		47,955		47,776		56,433
Basic earnings per share		0.40		0.35		0.35		0.41
Diluted earnings per share		0.40		0.34		0.34		0.41
Dividends declared per share		—		0.330		—		0.340
Dividends paid per share		0.165		0.165		0.165		0.170
2014
Net sales	$	599,384	$	581,622	$	624,234	$	668,226
Gross profit		214,394		201,648		223,461		238,323
Net earnings		61,592		58,340		67,336		72,956
Basic earnings per share		0.42		0.40		0.46		0.51
Diluted earnings per share		0.41		0.39		0.46		0.50
Dividends declared per share		0.140		0.140		0.165		0.165
Dividends paid per share		0.130		0.140		0.140		0.165

Revision to previously issued unaudited quarterly financial information

During the fourth quarter of fiscal 2014 and the second and third quarters of fiscal 2015 revenue for certain transactions was accelerated and therefore inappropriately recognized in our European Gas Turbine Systems business through the alteration of documents by certain individuals with the intention to recognize revenue in periods earlier than would be allowable under generally accepted accounting principles. The Company assessed the impact of this inappropriately accelerated recognition and concluded that it was not material to any of its previously issued financial statements; however the Company has chosen to correct these misstatements by revising previously issued 2015 second and third quarter financial statements. The revision had no impact to total cash flows from operating, investing or financing activities. The impact of these misstatements on previously reported Accounts receivable (less allowance) was $8.4 million and $0.8 million, on Inventories was $6.0 million and $0.6 million, and on Retained earnings was $1.6 million and $0.2 million as of January 31, 2015 and April 30, 2015, respectively (the balance sheet dates of the Company’s second and third quarter of fiscal 2015). The following tables present the effects of the revisions on each of the affected Statement of Earnings and Statements of Comprehensive Income line items for the second and third quarter of fiscal 2015 reflecting the impact of correcting the transactions inappropriately recognized in those periods. The impact of the transaction inappropriately accelerated into the fourth quarter of fiscal 2014 was inconsequential and therefore, the revisions do not include the impact of correcting this transaction. The Company’s future filings of Form 10-Q associated with the second and third quarters of fiscal 2016 will reflect the revisions noted below.

	As Previously Reported		Effect of Revision			As Revised
For the quarter ended January 31, 2015
Net sales	$	596,944	$	(8,407	)	$	588,537
Cost of sales		391,469		(6,020	)		385,449
Gross profit		205,475		(2,387	)		203,088
Operating income		68,226		(2,387	)		65,839
Earnings before income taxes		67,811		(2,387	)		65,424
Income taxes		18,281		(812	)		17,469
Net earnings		49,530		(1,575	)		47,955
Basic earnings per share		0.36		(0.01	)		0.35
Diluted earnings per share		0.35		(0.01	)		0.34
Comprehensive income		3,361		(1,575	)		1,786

	As Previously Reported		Effect of Revision		As Revised
For the quarter ended April 30, 2015
Net sales	$	568,013	$	7,575	$	575,588
Cost of sales		376,040		5,448		381,488
Gross profit		191,973		2,127		194,100
Operating income		64,989		2,127		67,116
Earnings before income taxes		65,722		2,127		67,849
Income taxes		19,350		723		20,073
Net earnings		46,372		1,404		47,776
Basic earnings per share		0.34		0.01		0.35
Diluted earnings per share		0.33		0.01		0.34
Comprehensive income		45,585		1,404		46,989