State or Other Jurisdiction of Incorporation or Organization | I.R.S. Employer Identification No. |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
☒ | Accelerated filer | ☐ | ||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||
Emerging growth company |
Description | Page Number | |||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
August 4, 2023 | July 29, 2022 | August 4, 2023 | July 29, 2022 | |||||||||||||||||||||||
Net sales | $ | $ | $ | $ | ||||||||||||||||||||||
Cost of sales | ||||||||||||||||||||||||||
Gross profit | ||||||||||||||||||||||||||
Selling, general and administrative expense | ||||||||||||||||||||||||||
Non-cash impairment charges | ||||||||||||||||||||||||||
Operating (loss) earnings | ( | |||||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | ||||||||||||||||||||||
Other income, net | ||||||||||||||||||||||||||
(Loss) earnings before income taxes | ( | |||||||||||||||||||||||||
Income tax (benefit) provision | ( | |||||||||||||||||||||||||
Net (loss) earnings | $ | ( | $ | $ | $ | |||||||||||||||||||||
Basic net (loss) earnings per share of common stock | $ | ( | $ | $ | $ | |||||||||||||||||||||
Diluted net (loss) earnings per share of common stock | $ | ( | $ | $ | $ | |||||||||||||||||||||
Weighted-average number of shares of common stock outstanding — Basic | ||||||||||||||||||||||||||
Weighted-average number of shares of common stock outstanding — Diluted |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
August 4, 2023 | July 29, 2022 | August 4, 2023 | July 29, 2022 | |||||||||||||||||||||||
Net (loss) earnings | $ | ( | $ | $ | $ | |||||||||||||||||||||
Other comprehensive (loss) income, net of tax: | ||||||||||||||||||||||||||
Foreign currency translation adjustments | ( | ( | ( | |||||||||||||||||||||||
Derivative instruments, net of tax of $( | ( | |||||||||||||||||||||||||
Other comprehensive (loss) income, net of tax | ( | ( | ( | |||||||||||||||||||||||
Comprehensive (loss) income | $ | ( | $ | $ | $ |
August 4, 2023 | July 29, 2022 | October 31, 2022 | ||||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | |||||||||||||||||
Receivables, net | ||||||||||||||||||||
Inventories, net | ||||||||||||||||||||
Prepaid expenses and other current assets | ||||||||||||||||||||
Total current assets | ||||||||||||||||||||
Property, plant, and equipment, net | ||||||||||||||||||||
Goodwill | ||||||||||||||||||||
Other intangible assets, net | ||||||||||||||||||||
Right-of-use assets | ||||||||||||||||||||
Investment in finance affiliate | ||||||||||||||||||||
Deferred income taxes | ||||||||||||||||||||
Other assets | ||||||||||||||||||||
Total assets | $ | $ | $ | |||||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
Current portion of long-term debt | $ | $ | $ | |||||||||||||||||
Accounts payable | ||||||||||||||||||||
Accrued liabilities | ||||||||||||||||||||
Short-term lease liabilities | ||||||||||||||||||||
Total current liabilities | ||||||||||||||||||||
Long-term debt, less current portion | ||||||||||||||||||||
Long-term lease liabilities | ||||||||||||||||||||
Deferred income taxes | ||||||||||||||||||||
Other long-term liabilities | ||||||||||||||||||||
Stockholders’ equity: | ||||||||||||||||||||
Preferred stock, par value $ | ||||||||||||||||||||
Common stock, par value $ | ||||||||||||||||||||
Retained earnings | ||||||||||||||||||||
Accumulated other comprehensive loss | ( | ( | ( | |||||||||||||||||
Total stockholders’ equity | ||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | $ | $ |
Nine Months Ended | ||||||||||||||
August 4, 2023 | July 29, 2022 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||
Net earnings | $ | $ | ||||||||||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||||||||||||
Non-cash income from finance affiliate | ( | ( | ||||||||||||
Distributions from (Contributions to) finance affiliate, net | ( | |||||||||||||
Depreciation of property, plant, and equipment | ||||||||||||||
Amortization of other intangible assets | ||||||||||||||
Stock-based compensation expense | ||||||||||||||
Non-cash impairment charges | ||||||||||||||
Other | ||||||||||||||
Changes in operating assets and liabilities, net of the effect of acquisitions: | ||||||||||||||
Receivables, net | ( | ( | ||||||||||||
Inventories, net | ( | ( | ||||||||||||
Other assets | ( | ( | ||||||||||||
Accounts payable | ( | ( | ||||||||||||
Other liabilities | ||||||||||||||
Net cash provided by operating activities | ||||||||||||||
Cash flows from investing activities: | ||||||||||||||
Purchases of property, plant, and equipment | ( | ( | ||||||||||||
Proceeds from insurance claim | ||||||||||||||
Business combinations, net of cash acquired | ( | ( | ||||||||||||
Asset acquisitions, net of cash acquired | ( | |||||||||||||
Proceeds from asset disposals | ||||||||||||||
Proceeds from sale of a business | ||||||||||||||
Net cash used in investing activities | ( | ( | ||||||||||||
Cash flows from financing activities: | ||||||||||||||
Borrowings under debt arrangements | ||||||||||||||
Repayments under debt arrangements | ( | ( | ||||||||||||
Proceeds from exercise of stock options | ||||||||||||||
Payments of withholding taxes for stock awards | ( | ( | ||||||||||||
Purchases of TTC common stock | ( | ( | ||||||||||||
Dividends paid on TTC common stock | ( | ( | ||||||||||||
Other | ( | |||||||||||||
Net cash (used in) provided by financing activities | ( | |||||||||||||
Effect of exchange rates on cash and cash equivalents | ( | |||||||||||||
Net decrease in cash and cash equivalents | ( | ( | ||||||||||||
Cash and cash equivalents as of the beginning of the fiscal period | ||||||||||||||
Cash and cash equivalents as of the end of the fiscal period | $ | $ |
Common Stock | Retained Earnings | Accumulated Other Comprehensive Loss | Total Stockholders' Equity | |||||||||||||||||||||||
Balance as of May 5, 2023 | $ | $ | $ | ( | $ | |||||||||||||||||||||
Cash dividends paid on common stock - $ | — | ( | — | ( | ||||||||||||||||||||||
Issuance of | — | |||||||||||||||||||||||||
Stock-based compensation expense | — | — | ||||||||||||||||||||||||
Purchase of | ( | ( | — | ( | ||||||||||||||||||||||
Other comprehensive loss | — | — | ( | ( | ||||||||||||||||||||||
Net loss | — | ( | ( | |||||||||||||||||||||||
Balance as of August 4, 2023 | $ | $ | $ | ( | $ | |||||||||||||||||||||
Balance as of October 31, 2022 | $ | $ | $ | ( | $ | |||||||||||||||||||||
Cash dividends paid on common stock - $ | — | ( | — | ( | ||||||||||||||||||||||
Issuance of | — | |||||||||||||||||||||||||
Stock-based compensation expense | — | — | ||||||||||||||||||||||||
Contribution of | ( | — | — | ( | ||||||||||||||||||||||
Purchase of | ( | ( | — | ( | ||||||||||||||||||||||
Other comprehensive income | — | — | ||||||||||||||||||||||||
Net earnings | — | |||||||||||||||||||||||||
Balance as of August 4, 2023 | $ | $ | $ | ( | $ | |||||||||||||||||||||
Balance as of April 29, 2022 | $ | $ | $ | ( | $ | |||||||||||||||||||||
Cash dividends paid on common stock - $ | — | ( | — | ( | ||||||||||||||||||||||
Issuance of | — | |||||||||||||||||||||||||
Stock-based compensation expense | — | — | ||||||||||||||||||||||||
Purchase of | ( | ( | — | ( | ||||||||||||||||||||||
Other comprehensive loss | — | — | ( | ( | ||||||||||||||||||||||
Net earnings | — | — | ||||||||||||||||||||||||
Balance as of July 29, 2022 | $ | $ | $ | ( | $ | |||||||||||||||||||||
Balance as of October 31, 2021 | $ | $ | $ | ( | $ | |||||||||||||||||||||
Cash dividends paid on common stock - $ | — | ( | — | ( | ||||||||||||||||||||||
Issuance of | — | |||||||||||||||||||||||||
Stock-based compensation expense | — | — | ||||||||||||||||||||||||
Contribution of | ( | — | — | ( | ||||||||||||||||||||||
Purchase of | ( | ( | — | ( | ||||||||||||||||||||||
Other comprehensive loss | — | — | ( | ( | ||||||||||||||||||||||
Net earnings | — | — | ||||||||||||||||||||||||
Balance as of July 29, 2022 | $ | $ | $ | ( | $ |
1 | Basis of Presentation |
2 | Business Combinations |
(Dollars in thousands) | January 13, 2022 | |||||||
Cash and cash equivalents | $ | |||||||
Receivables | ||||||||
Inventories | ||||||||
Prepaid expenses and other current assets | ||||||||
Property, plant, and equipment | ||||||||
Right-of-use assets | ||||||||
Goodwill | ||||||||
Other intangible assets: | ||||||||
Indefinite-lived trade name | ||||||||
Finite-lived trade names | ||||||||
Finite-lived customer-related | ||||||||
Finite-lived backlog | ||||||||
Accounts payable | ( | |||||||
Accrued liabilities | ( | |||||||
Short-term lease liabilities | ( | |||||||
Long-term lease liabilities | ( | |||||||
Total fair value of net assets acquired | ||||||||
Less: cash and cash equivalents acquired | ( | |||||||
Total purchase price | $ |
3 | Segment Data |
Three Months Ended August 4, 2023 | Professional | Residential | Other | Total | ||||||||||||||||||||||
Net sales | $ | $ | $ | $ | ||||||||||||||||||||||
Intersegment gross sales (eliminations) | ( | — | ||||||||||||||||||||||||
Earnings (loss) before income taxes1 | $ | $ | $ | ( | $ | ( | ||||||||||||||||||||
Nine Months Ended August 4, 2023 | Professional | Residential | Other | Total | ||||||||||||||||||||||
Net sales | $ | $ | $ | $ | ||||||||||||||||||||||
Intersegment gross sales (eliminations) | ( | — | ||||||||||||||||||||||||
Earnings (loss) before income taxes1 | ( | |||||||||||||||||||||||||
Total assets | $ | $ | $ | $ |
Three Months Ended July 29, 2022 | Professional | Residential | Other | Total | ||||||||||||||||||||||
Net sales | $ | $ | $ | $ | ||||||||||||||||||||||
Intersegment gross sales (eliminations) | ( | — | ||||||||||||||||||||||||
Earnings (loss) before income taxes | $ | $ | $ | ( | $ | |||||||||||||||||||||
Nine Months Ended July 29, 2022 | Professional | Residential | Other | Total | ||||||||||||||||||||||
Net sales | $ | $ | $ | $ | ||||||||||||||||||||||
Intersegment gross sales (eliminations) | ( | — | ||||||||||||||||||||||||
Earnings (loss) before income taxes | ( | |||||||||||||||||||||||||
Total assets | $ | $ | $ | $ |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
(Dollars in thousands) | August 4, 2023 | July 29, 2022 | August 4, 2023 | July 29, 2022 | ||||||||||||||||||||||
Corporate expenses | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Interest expense | ( | ( | ( | ( | ||||||||||||||||||||||
Earnings from the company's wholly-owned domestic distribution company and other income, net | ||||||||||||||||||||||||||
Total operating loss | $ | ( | $ | ( | $ | ( | $ | ( |
4 | Revenue |
Three Months Ended August 4, 2023 | Professional | Residential | Other | Total | ||||||||||||||||||||||
Revenue by product type: | ||||||||||||||||||||||||||
Equipment | $ | $ | $ | $ | ||||||||||||||||||||||
Irrigation | ||||||||||||||||||||||||||
Total net sales | $ | $ | $ | $ | ||||||||||||||||||||||
Revenue by geographic market: | ||||||||||||||||||||||||||
United States | $ | $ | $ | $ | ||||||||||||||||||||||
International countries | ||||||||||||||||||||||||||
Total net sales | $ | $ | $ | $ |
Nine Months Ended August 4, 2023 | Professional | Residential | Other | Total | ||||||||||||||||||||||
Revenue by product type: | ||||||||||||||||||||||||||
Equipment | $ | $ | $ | $ | ||||||||||||||||||||||
Irrigation | ||||||||||||||||||||||||||
Total net sales | $ | $ | $ | $ | ||||||||||||||||||||||
Revenue by geographic market: | ||||||||||||||||||||||||||
United States | $ | $ | $ | $ | ||||||||||||||||||||||
International countries | ||||||||||||||||||||||||||
Total net sales | $ | $ | $ | $ |
Three Months Ended July 29, 2022 | Professional | Residential | Other | Total | ||||||||||||||||||||||
Revenue by product type: | ||||||||||||||||||||||||||
Equipment | $ | $ | $ | $ | ||||||||||||||||||||||
Irrigation | ||||||||||||||||||||||||||
Total net sales | $ | $ | $ | $ | ||||||||||||||||||||||
Revenue by geographic market: | ||||||||||||||||||||||||||
United States | $ | $ | $ | $ | ||||||||||||||||||||||
International countries | ||||||||||||||||||||||||||
Total net sales | $ | $ | $ | $ |
Nine Months Ended July 29, 2022 | Professional | Residential | Other | Total | ||||||||||||||||||||||
Revenue by product type: | ||||||||||||||||||||||||||
Equipment | $ | $ | $ | $ | ||||||||||||||||||||||
Irrigation | ||||||||||||||||||||||||||
Total net sales | $ | $ | $ | $ | ||||||||||||||||||||||
Revenue by geographic market: | ||||||||||||||||||||||||||
United States | $ | $ | $ | $ | ||||||||||||||||||||||
International countries | ||||||||||||||||||||||||||
Total net sales | $ | $ | $ | $ |
5 | Goodwill and Other Intangible Assets, Net |
(Dollars in thousands) | Professional | Residential | Other | Total | ||||||||||||||||||||||
Balance as of October 31, 2022 | $ | $ | $ | $ | ||||||||||||||||||||||
Non-cash impairment charge | ( | ( | ||||||||||||||||||||||||
Translation adjustments | ||||||||||||||||||||||||||
Balance as of August 4, 2023 | $ | $ | $ | $ |
August 4, 2023 | Weighted-Average Useful Life in Years | Gross Carrying Amount | Accumulated Amortization | Net | ||||||||||||||||||||||
Patents | $ | $ | ( | $ | ||||||||||||||||||||||
Non-compete agreements | ( | |||||||||||||||||||||||||
Customer-related | ( | |||||||||||||||||||||||||
Developed technology | ( | |||||||||||||||||||||||||
Trade names | ( | |||||||||||||||||||||||||
Backlog and other | ( | |||||||||||||||||||||||||
Total finite-lived | ( | |||||||||||||||||||||||||
Indefinite-lived - trade names | — | |||||||||||||||||||||||||
Total other intangible assets, net | $ | $ | ( | $ |
July 29, 2022 | Weighted-Average Useful Life in Years | Gross Carrying Amount | Accumulated Amortization | Net | ||||||||||||||||||||||
Patents | $ | $ | ( | $ | ||||||||||||||||||||||
Non-compete agreements | ( | |||||||||||||||||||||||||
Customer-related | ( | |||||||||||||||||||||||||
Developed technology | ( | |||||||||||||||||||||||||
Trade names | ( | |||||||||||||||||||||||||
Backlog and other | ( | |||||||||||||||||||||||||
Total finite-lived | ( | |||||||||||||||||||||||||
Indefinite-lived - trade names | — | |||||||||||||||||||||||||
Total other intangible assets, net | $ | $ | ( | $ |
October 31, 2022 | Weighted-Average Useful Life in Years | Gross Carrying Amount | Accumulated Amortization | Net | ||||||||||||||||||||||
Patents | $ | $ | ( | $ | ||||||||||||||||||||||
Non-compete agreements | ( | |||||||||||||||||||||||||
Customer-related | ( | |||||||||||||||||||||||||
Developed technology | ( | |||||||||||||||||||||||||
Trade names | ( | |||||||||||||||||||||||||
Backlog and other | ( | |||||||||||||||||||||||||
Total finite-lived | ( | |||||||||||||||||||||||||
Indefinite-lived - trade names | — | |||||||||||||||||||||||||
Total other intangible assets, net | $ | $ | ( | $ |
(Dollars in thousands) | August 4, 2023 | |||||||
2023 (remaining) | $ | |||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
2028 | ||||||||
Thereafter | ||||||||
Total estimated amortization expense | $ |
6 | Indebtedness |
(Dollars in thousands) | August 4, 2023 | July 29, 2022 | October 31, 2022 | |||||||||||||||||
$ | $ | $ | $ | |||||||||||||||||
$ | ||||||||||||||||||||
$ | ||||||||||||||||||||
Less: unamortized debt issuance costs | ||||||||||||||||||||
Total long-term debt | ||||||||||||||||||||
Less: current portion of long-term debt | ||||||||||||||||||||
Long-term debt, less current portion | $ | $ | $ |
(Dollars in thousands) | August 4, 2023 | |||||||
2023 (remaining) | $ | |||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
2028 | ||||||||
Thereafter | ||||||||
Total principal payments required | $ |
7 | Inventories, Net |
(Dollars in thousands) | August 4, 2023 | July 29, 2022 | October 31, 2022 | |||||||||||||||||
Raw materials and work in process | $ | $ | $ | |||||||||||||||||
Finished goods and service parts | ||||||||||||||||||||
Total FIFO and average cost value | ||||||||||||||||||||
Less: adjustment to LIFO value | ||||||||||||||||||||
Total inventories, net | $ | $ | $ |
8 | Property, Plant, and Equipment, Net |
(Dollars in thousands) | August 4, 2023 | July 29, 2022 | October 31, 2022 | |||||||||||||||||
Land and land improvements | $ | $ | $ | |||||||||||||||||
Buildings and leasehold improvements | ||||||||||||||||||||
Machinery and equipment | ||||||||||||||||||||
Tooling | ||||||||||||||||||||
Computer hardware and software | ||||||||||||||||||||
Construction in process | ||||||||||||||||||||
Property, plant, and equipment, gross | ||||||||||||||||||||
Less: accumulated depreciation | ||||||||||||||||||||
Property, plant, and equipment, net | $ | $ | $ |
9 | Product Warranty Guarantees |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
(Dollars in thousands) | August 4, 2023 | July 29, 2022 | August 4, 2023 | July 29, 2022 | ||||||||||||||||||||||
Beginning balance | $ | $ | $ | $ | ||||||||||||||||||||||
Changes in accrual related to warranties during the period (1) | ||||||||||||||||||||||||||
Acquisitions | ||||||||||||||||||||||||||
Payments made during the period (1) | ( | ( | ( | ( | ||||||||||||||||||||||
Changes in accrual related to pre-existing warranties (1) | ||||||||||||||||||||||||||
Ending balance | $ | $ | $ | $ |
10 | Investment in Joint Venture |
11 | Stock-Based Compensation |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
(Dollars in thousands) | August 4, 2023 | July 29, 2022 | August 4, 2023 | July 29, 2022 | ||||||||||||||||||||||
Stock option awards | $ | $ | $ | $ | ||||||||||||||||||||||
Performance share awards | ( | |||||||||||||||||||||||||
Restricted stock unit awards | ||||||||||||||||||||||||||
Unrestricted common stock awards | ||||||||||||||||||||||||||
Total compensation cost for stock-based compensation awards | $ | $ | $ | $ |
Fiscal 2023 | Fiscal 2022 | |||||||||||||
Expected life of option in years | ||||||||||||||
Expected stock price volatility | ||||||||||||||
Risk-free interest rate | ||||||||||||||
Expected dividend yield | ||||||||||||||
Per share weighted-average fair value at date of grant | $ | $ |
12 | Stockholders' Equity |
(Dollars in thousands) | August 4, 2023 | July 29, 2022 | October 31, 2022 | |||||||||||||||||
Foreign currency translation adjustments | $ | $ | $ | |||||||||||||||||
Pension benefits | ||||||||||||||||||||
Cash flow derivative instruments | ( | ( | ( | |||||||||||||||||
Total accumulated other comprehensive loss | $ | $ | $ |
(Dollars in thousands) | Foreign Currency Translation Adjustments | Pension Benefits | Cash Flow Derivative Instruments | Total | ||||||||||||||||||||||
Balance as of May 5, 2023 | $ | $ | $ | ( | $ | |||||||||||||||||||||
Other comprehensive loss before reclassifications | ||||||||||||||||||||||||||
Amounts reclassified from AOCL | ( | ( | ||||||||||||||||||||||||
Net current period other comprehensive loss (income) | ( | |||||||||||||||||||||||||
Balance as of August 4, 2023 | $ | $ | $ | ( | $ |
(Dollars in thousands) | Foreign Currency Translation Adjustments | Pension Benefits | Cash Flow Derivative Instruments | Total | ||||||||||||||||||||||
Balance as of October 31, 2022 | $ | $ | $ | ( | $ | |||||||||||||||||||||
Other comprehensive (income) loss before reclassifications | ( | |||||||||||||||||||||||||
Amounts reclassified from AOCL | ( | ( | ||||||||||||||||||||||||
Net current period other comprehensive (income) loss | ( | ( | ||||||||||||||||||||||||
Balance as of August 4, 2023 | $ | $ | $ | ( | $ |
(Dollars in thousands) | Foreign Currency Translation Adjustments | Pension Benefits | Cash Flow Derivative Instruments | Total | ||||||||||||||||||||||
Balance as of April 29, 2022 | $ | $ | $ | ( | $ | |||||||||||||||||||||
Other comprehensive loss (income) before reclassifications | ( | |||||||||||||||||||||||||
Amounts reclassified from AOCL | ( | ( | ||||||||||||||||||||||||
Net current period other comprehensive loss (income) | ( | |||||||||||||||||||||||||
Balance as of July 29, 2022 | $ | $ | $ | ( | $ |
(Dollars in thousands) | Foreign Currency Translation Adjustments | Pension Benefits | Cash Flow Derivative Instruments | Total | ||||||||||||||||||||||
Balance as of October 31, 2021 | $ | $ | $ | $ | ||||||||||||||||||||||
Other comprehensive loss (income) before reclassifications | ( | |||||||||||||||||||||||||
Amounts reclassified from AOCL | ( | ( | ||||||||||||||||||||||||
Net current period other comprehensive loss (income) | ( | |||||||||||||||||||||||||
Balance as of July 29, 2022 | $ | $ | $ | ( | $ |
13 | Per Share Data |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
(Shares in thousands) | August 4, 2023 | July 29, 2022 | August 4, 2023 | July 29, 2022 | ||||||||||||||||||||||
Basic | ||||||||||||||||||||||||||
Weighted-average number of shares of common stock | ||||||||||||||||||||||||||
Assumed issuance of contingent shares | ||||||||||||||||||||||||||
Weighted-average number of shares of common stock outstanding - Basic | ||||||||||||||||||||||||||
Diluted | ||||||||||||||||||||||||||
Weighted-average number of shares of common stock outstanding - Basic | ||||||||||||||||||||||||||
Effect of dilutive shares | ||||||||||||||||||||||||||
Weighted-average number of shares of common stock outstanding - Diluted |
14 | Commitments and Contingencies |
15 | Leases |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
(Dollars in thousands) | August 4, 2023 | July 29, 2022 | August 4, 2023 | July 29, 2022 | ||||||||||||||||||||||
Operating lease expense | $ | $ | $ | $ | ||||||||||||||||||||||
Short-term lease expense | ||||||||||||||||||||||||||
Variable lease expense | ||||||||||||||||||||||||||
Total lease expense | $ | $ | $ | $ |
Nine Months Ended | ||||||||||||||
(Dollars in thousands) | August 4, 2023 | July 29, 2022 | ||||||||||||
Operating cash flows for amounts included in the measurement of lease liabilities | $ | $ | ||||||||||||
Right-of-use assets obtained in exchange for lease obligations | $ | $ |
August 4, 2023 | July 29, 2022 | October 31, 2022 | ||||||||||||||||||
Weighted-average remaining lease term of operating leases in years | ||||||||||||||||||||
Weighted-average discount rate of operating leases | % | % | % |
(Dollars in thousands) | August 4, 2023 | |||||||
2023 (remaining) | $ | |||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
Thereafter | ||||||||
Total future minimum operating lease payments | ||||||||
Less: imputed interest | ||||||||
Present value of operating lease liabilities | $ |
16 | Derivative Instruments and Hedging Activities |
(Dollars in thousands) | August 4, 2023 | July 29, 2022 | October 31, 2022 | |||||||||||||||||
Derivative assets: | ||||||||||||||||||||
Derivatives designated as cash flow hedging instruments: | ||||||||||||||||||||
Forward currency contracts | $ | $ | $ | |||||||||||||||||
Derivatives not designated as cash flow hedging instruments: | ||||||||||||||||||||
Prepaid expenses and other current assets | ||||||||||||||||||||
Forward currency contracts | ||||||||||||||||||||
Total derivative assets | $ | $ | $ | |||||||||||||||||
Derivative liabilities: | ||||||||||||||||||||
Derivatives designated as cash flow hedging instruments: | ||||||||||||||||||||
Forward currency contracts | $ | $ | $ | |||||||||||||||||
Derivatives not designated as cash flow hedging instruments: | ||||||||||||||||||||
Accrued liabilities | ||||||||||||||||||||
Forward currency contracts | ||||||||||||||||||||
Total derivative liabilities | $ | $ | $ |
(Dollars in thousands) | August 4, 2023 | July 29, 2022 | October 31, 2022 | |||||||||||||||||
Derivative assets: | ||||||||||||||||||||
Forward currency contracts: | ||||||||||||||||||||
Gross amount of derivative assets | $ | $ | $ | |||||||||||||||||
Derivative liabilities offsetting derivative assets | ||||||||||||||||||||
Net amount of derivative assets | $ | $ | $ | |||||||||||||||||
Derivative liabilities: | ||||||||||||||||||||
Forward currency contracts: | ||||||||||||||||||||
Gross amount of derivative liabilities | $ | $ | $ | |||||||||||||||||
Derivative assets offsetting derivative liabilities | ||||||||||||||||||||
Net amount of derivative liabilities | $ | $ | $ |
Three Months Ended | ||||||||||||||||||||||||||
Gain Reclassified from AOCL into Earnings | (Loss) Gain Reclassified from AOCL into Earnings | |||||||||||||||||||||||||
(Dollars in thousands) | August 4, 2023 | July 29, 2022 | August 4, 2023 | July 29, 2022 | ||||||||||||||||||||||
Derivatives designated as cash flow hedging instruments: | ||||||||||||||||||||||||||
Forward currency contracts: | ||||||||||||||||||||||||||
Net sales | $ | $ | $ | ( | $ | |||||||||||||||||||||
Cost of sales | ( | |||||||||||||||||||||||||
Total derivatives designated as cash flow hedging instruments | $ | $ | $ | $ |
Nine Months Ended | ||||||||||||||||||||||||||
Gain Reclassified from AOCL into Earnings | (Loss) Gain Recognized in OCI on Derivatives | |||||||||||||||||||||||||
(Dollars in thousands) | August 4, 2023 | July 29, 2022 | August 4, 2023 | July 29, 2022 | ||||||||||||||||||||||
Derivatives designated as cash flow hedging instruments: | ||||||||||||||||||||||||||
Forward currency contracts: | ||||||||||||||||||||||||||
Net sales | $ | $ | $ | ( | $ | |||||||||||||||||||||
Cost of sales | ||||||||||||||||||||||||||
Total derivatives designated as cash flow hedging instruments | $ | $ | $ | ( | $ |
Gain (Loss) Recognized in Earnings on Cash Flow Hedging Instruments | ||||||||||||||||||||||||||
(Dollars in thousands) | August 4, 2023 | July 29, 2022 | ||||||||||||||||||||||||
Three Months Ended | Net Sales | Cost of Sales | Net Sales | Cost of Sales | ||||||||||||||||||||||
Condensed Consolidated Statements of (Loss) Earnings income (expense) amounts in which the effects of cash flow hedging instruments are recorded | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||
Gain (loss) on derivatives designated as cash flow hedging instruments: | ||||||||||||||||||||||||||
Forward currency contracts: | ||||||||||||||||||||||||||
Amount of gain reclassified from AOCL into earnings | ||||||||||||||||||||||||||
(loss) gain on components excluded from effectiveness testing recognized in earnings based on changes in fair value | $ | ( | $ | $ | $ |
Gain (Loss) Recognized in Earnings on Cash Flow Hedging Instruments | ||||||||||||||||||||||||||
(Dollars in thousands) | August 4, 2023 | July 29, 2022 | ||||||||||||||||||||||||
Nine Months Ended | Net Sales | Cost of Sales | Net Sales | Cost of Sales | ||||||||||||||||||||||
Condensed Consolidated Statements of (Loss) Earnings income (expense) amounts in which the effects of cash flow hedging instruments are recorded | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||
Gain (loss) on derivatives designated as cash flow hedging instruments: | ||||||||||||||||||||||||||
Forward currency contracts: | ||||||||||||||||||||||||||
Amount of gain reclassified from AOCL into earnings | ||||||||||||||||||||||||||
Gain (loss) on components excluded from effectiveness testing recognized in earnings based on changes in fair value | $ | $ | $ | ( | $ |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
(Dollars in thousands) | August 4, 2023 | July 29, 2022 | August 4, 2023 | July 29, 2022 | ||||||||||||||||||||||
(Loss) gain on derivatives not designated as cash flow hedging instruments | ||||||||||||||||||||||||||
Forward currency contracts: | ||||||||||||||||||||||||||
$ | ( | $ | ( | $ | ( | $ | ||||||||||||||||||||
Total gain (loss) on derivatives not designated as cash flow hedging instruments | $ | ( | $ | ( | $ | ( | $ |
17 | Fair Value Measurements |
Fair Value Measurements Using Inputs Considered as: | ||||||||||||||||||||||||||
August 4, 2023 | Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Forward currency contracts | $ | $ | $ | $ | ||||||||||||||||||||||
Total assets | $ | $ | $ | $ | ||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Forward currency contracts | $ | $ | $ | $ | ||||||||||||||||||||||
Total liabilities | $ | $ | $ | $ |
Fair Value Measurements Using Inputs Considered as: | ||||||||||||||||||||||||||
July 29, 2022 | Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Forward currency contracts | $ | $ | $ | $ | ||||||||||||||||||||||
Total assets | $ | $ | $ | $ | ||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Forward currency contracts | $ | $ | $ | $ | ||||||||||||||||||||||
Total liabilities | $ | $ | $ | $ | ||||||||||||||||||||||
Fair Value Measurements Using Inputs Considered as: | ||||||||||||||||||||||||||
October 31, 2022 | Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Forward currency contracts | $ | $ | $ | $ | ||||||||||||||||||||||
Total assets | $ | $ | $ | $ | ||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Forward currency contracts | $ | $ | $ | $ | ||||||||||||||||||||||
Total liabilities | $ | $ | $ | $ |
18 | Subsequent Events |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
August 4, 2023 | July 29, 2022 | August 4, 2023 | July 29, 2022 | |||||||||||||||||||||||
Net sales | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||||||
Cost of sales | (65.6) | (65.5) | (65.0) | (66.9) | ||||||||||||||||||||||
Gross profit | 34.4 | 34.5 | 35.0 | 33.1 | ||||||||||||||||||||||
Selling, general and administrative expense | (22.2) | (20.5) | (21.3) | (20.4) | ||||||||||||||||||||||
Non-cash impairment charges | (14.0) | — | (4.3) | — | ||||||||||||||||||||||
Operating (loss) earnings | (1.8) | 14.0 | 9.4 | 12.7 | ||||||||||||||||||||||
Interest expense | (1.4) | (0.8) | (1.2) | (0.7) | ||||||||||||||||||||||
Other income, net | 0.6 | 0.3 | 0.6 | 0.2 | ||||||||||||||||||||||
(Loss) earnings before income taxes | (2.6) | 13.5 | 8.8 | 12.2 | ||||||||||||||||||||||
Income tax benefit (provision) | 1.2 | (2.7) | (1.5) | (2.5) | ||||||||||||||||||||||
Net (loss) earnings | (1.4) | % | 10.8 | % | 7.3 | % | 9.7 | % |
Three Months Ended | ||||||||||||||||||||||||||
(Dollars in thousands) | August 4, 2023 | July 29, 2022 | Dollar Value Change | Percentage Change | ||||||||||||||||||||||
Professional | $ | 896,321 | $ | 886,232 | $ | 10,089 | 1.1 | % | ||||||||||||||||||
Residential | 175,314 | 269,962 | (94,648) | (35.1) | ||||||||||||||||||||||
Other | 10,149 | 4,356 | 5,793 | 133.0 | ||||||||||||||||||||||
Total net sales* | $ | 1,081,784 | $ | 1,160,550 | $ | (78,766) | (6.8) | % | ||||||||||||||||||
*Includes international net sales of: | $ | 234,964 | $ | 216,142 | $ | 18,822 | 8.7 | % |
Nine Months Ended | ||||||||||||||||||||||||||
(Dollars in thousands) | August 4, 2023 | July 29, 2022 | Dollar Value Change | Percentage Change | ||||||||||||||||||||||
Professional | $ | 2,845,714 | $ | 2,484,927 | $ | 360,787 | 14.5 | % | ||||||||||||||||||
Residential | 705,765 | 845,039 | (139,274) | (16.5) | ||||||||||||||||||||||
Other | 18,471 | 12,712 | 5,759 | 45.3 | ||||||||||||||||||||||
Total net sales* | $ | 3,569,950 | $ | 3,342,678 | $ | 227,272 | 6.8 | % | ||||||||||||||||||
*Includes international net sales of: | $ | 756,686 | $ | 656,799 | $ | 99,887 | 15.2 | % |
Three Months Ended | ||||||||||||||||||||||||||
(Dollars in thousands) | August 4, 2023 | July 29, 2022 | Dollar Value Change | Percentage Change | ||||||||||||||||||||||
Professional | $ | 13,049 | $ | 166,191 | $ | (153,142) | (92.1) | % | ||||||||||||||||||
Residential | 3,848 | 26,348 | (22,500) | (85.4) | ||||||||||||||||||||||
Other | (45,460) | (35,448) | (10,012) | (28.2) | ||||||||||||||||||||||
Total segment (loss) earnings | $ | (28,563) | $ | 157,091 | $ | (185,654) | (118.2) | % |
Nine Months Ended | ||||||||||||||||||||||||||
(Dollars in thousands) | August 4, 2023 | July 29, 2022 | Dollar Value Change | Percentage Change | ||||||||||||||||||||||
Professional | $ | 384,621 | $ | 424,833 | $ | (40,212) | (9.5) | % | ||||||||||||||||||
Residential | 64,411 | 95,203 | (30,792) | (32.3) | ||||||||||||||||||||||
Other | (135,462) | (110,742) | (24,720) | (22.3) | ||||||||||||||||||||||
Total segment earnings | $ | 313,570 | $ | 409,294 | $ | (95,724) | (23.4) | % |
(Dollars in thousands) | August 4, 2023 | July 29, 2022 | October 31, 2022 | |||||||||||||||||
$600 million revolving credit facility, due October 2026 | $ | 70,000 | $ | 65,000 | $ | — | ||||||||||||||
$270 million term loan, due October 2026 | 270,000 | 270,000 | 270,000 | |||||||||||||||||
$200 million term loan, due April 2027 | 200,000 | 200,000 | 200,000 | |||||||||||||||||
3.81% series A senior notes, due June 2029 | 100,000 | 100,000 | 100,000 | |||||||||||||||||
3.91% series B senior notes, due June 2031 | 100,000 | 100,000 | 100,000 | |||||||||||||||||
3.97% senior notes, due June 2032 | 100,000 | 100,000 | 100,000 | |||||||||||||||||
7.8% debentures, due June 2027 | 100,000 | 100,000 | 100,000 | |||||||||||||||||
6.625% senior notes, due May 2037 | 124,148 | 124,086 | 124,102 | |||||||||||||||||
Less: unamortized debt issuance costs | 2,839 | 3,470 | 3,334 | |||||||||||||||||
Total long-term debt | 1,061,309 | 1,055,616 | 990,768 | |||||||||||||||||
Less: current portion of long-term debt | — | 65,000 | — | |||||||||||||||||
Long-term debt, less current portion | $ | 1,061,309 | $ | 990,616 | $ | 990,768 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
(Dollars in thousands, except per share data) | August 4, 2023 | July 29, 2022 | August 4, 2023 | July 29, 2022 | ||||||||||||||||||||||
Gross profit | $ | 372,354 | $ | 399,906 | $ | 1,247,999 | $ | 1,105,751 | ||||||||||||||||||
Acquisition-related costs1 | — | 401 | 225 | 1,425 | ||||||||||||||||||||||
Adjusted gross profit | $ | 372,354 | $ | 400,307 | $ | 1,248,224 | $ | 1,107,176 | ||||||||||||||||||
Operating (loss) earnings | $ | (19,072) | $ | 163,048 | $ | 336,151 | $ | 425,251 | ||||||||||||||||||
Acquisition-related costs1 | — | 704 | 447 | 3,456 | ||||||||||||||||||||||
Non-cash impairment charges2 | 151,263 | — | 151,263 | — | ||||||||||||||||||||||
Adjusted operating earnings | $ | 132,191 | $ | 163,752 | $ | 487,861 | $ | 428,707 | ||||||||||||||||||
Operating (loss) earnings margin | (1.8) | % | 14.0 | % | 9.4 | % | 12.7 | % | ||||||||||||||||||
Acquisition-related costs1 | — | % | 0.1 | % | — | % | 0.1 | % | ||||||||||||||||||
Non-cash impairment charges2 | 14.0 | % | — | % | 4.3 | % | — | % | ||||||||||||||||||
Adjusted operating earnings margin | 12.2 | % | 14.1 | % | 13.7 | % | 12.8 | % | ||||||||||||||||||
(Loss) earnings before income taxes | $ | (28,563) | $ | 157,091 | $ | 313,570 | $ | 409,294 | ||||||||||||||||||
Acquisition-related costs1 | — | 704 | 447 | 3,456 | ||||||||||||||||||||||
Non-cash impairment charges2 | 151,263 | — | 151,263 | — | ||||||||||||||||||||||
Adjusted earnings before income taxes | $ | 122,700 | $ | 157,795 | $ | 465,280 | $ | 412,750 | ||||||||||||||||||
Income tax (benefit) provision | $ | (13,600) | $ | 31,941 | $ | 54,208 | $ | 83,509 | ||||||||||||||||||
Acquisition-related costs1 | — | 143 | 96 | 716 | ||||||||||||||||||||||
Non-cash impairment charges2 | 36,621 | — | 36,621 | — | ||||||||||||||||||||||
Tax impact of share-based compensation3 | 324 | 581 | 5,004 | 1,568 | ||||||||||||||||||||||
Adjusted income tax provision | $ | 23,345 | $ | 32,665 | $ | 95,929 | $ | 85,793 | ||||||||||||||||||
Net (loss) earnings | $ | (14,963) | $ | 125,150 | $ | 259,362 | $ | 325,785 | ||||||||||||||||||
Acquisition-related costs, net of tax1 | — | 561 | 351 | 2,740 | ||||||||||||||||||||||
Non-cash impairment charges, net of tax2 | 114,642 | — | 114,642 | — | ||||||||||||||||||||||
Tax impact of stock-based compensation3 | (324) | (581) | (5,004) | (1,568) | ||||||||||||||||||||||
Adjusted net earnings | $ | 99,355 | $ | 125,130 | $ | 369,351 | $ | 326,957 | ||||||||||||||||||
Net (loss) earnings per diluted share | $ | (0.14) | $ | 1.19 | $ | 2.46 | $ | 3.08 | ||||||||||||||||||
Acquisition-related costs, net of tax1 | — | 0.01 | — | 0.03 | ||||||||||||||||||||||
Non-cash impairment charges, net of tax2 | 1.09 | — | 1.09 | — | ||||||||||||||||||||||
Tax impact of stock-based compensation3 | — | (0.01) | (0.05) | (0.02) | ||||||||||||||||||||||
Adjusted net earnings per diluted share | $ | 0.95 | $ | 1.19 | $ | 3.50 | $ | 3.09 | ||||||||||||||||||
Effective tax rate | 47.6 | % | 20.3 | % | 17.3 | % | 20.4 | % | ||||||||||||||||||
Non-cash impairment charges2 | (27.5) | % | — | % | 1.7 | % | — | % | ||||||||||||||||||
Tax impact of stock-based compensation3 | (1.1) | % | 0.4 | % | 1.6 | % | 0.4 | % | ||||||||||||||||||
Adjusted effective tax rate | 19.0 | % | 20.7 | % | 20.6 | % | 20.8 | % |
Nine Months Ended | ||||||||||||||
(Dollars in thousands) | August 4, 2023 | July 29, 2022 | ||||||||||||
Net cash provided by operating activities | $ | 154,665 | $ | 154,563 | ||||||||||
Less: Purchases of property, plant, and equipment, net of proceeds from insurance claim | 98,586 | 75,772 | ||||||||||||
Free cash flow | 56,079 | 78,791 | ||||||||||||
Net earnings | $ | 259,362 | $ | 325,785 | ||||||||||
Free cash flow conversion percentage | 21.6 | % | 24.2 | % |
(Dollars in thousands, except average contracted rate) | Average Contracted Rate | Notional Amount | Fair Value | Gain (Loss) at Fair Value | ||||||||||||||||||||||
Buy U.S. dollar/Sell Australian dollar | 0.6928 | $ | 99,283 | $ | 104,087 | $ | 4,804 | |||||||||||||||||||
Buy U.S. dollar/Sell Canadian dollar | 1.3189 | 40,337 | 40,754 | 417 | ||||||||||||||||||||||
Buy U.S. dollar/Sell Euro | 1.1124 | 165,062 | 165,421 | 359 | ||||||||||||||||||||||
Buy U.S. dollar/Sell British pound | 1.2610 | 48,549 | 48,288 | (261) | ||||||||||||||||||||||
Buy Mexican peso/Sell U.S. dollar | 21.2350 | $ | 45,350 | $ | 53,703 | $ | 8,353 | |||||||||||||||||||
Period | Total Number of Shares (or Units) Purchased1,2,3 | Average Price Paid per Share (or Unit) | Total Number of Shares (or Units) Purchased As Part of Publicly Announced Plans or Programs1,2 | Maximum Number of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs1,2 | ||||||||||||||||||||||
May 6, 2023 through June 2, 2023 | 245,751 | $ | 104.47 | 245,751 | 7,052,065 | |||||||||||||||||||||
June 3, 2023 through June 30 2023 | 102,574 | 97.47 | 102,574 | 6,949,491 | ||||||||||||||||||||||
July 1, 2023 through August 4, 2023 | 1,267 | 105.54 | — | 6,949,491 | ||||||||||||||||||||||
Total | 349,592 | $ | 102.42 | 348,325 |
(a) | Exhibit No. | Description | ||||||
3.1 and 4.1 | ||||||||
3.2 and 4.2 | ||||||||
3.3 and 4.3 | ||||||||
4.4 | Indenture dated as of January 31, 1997, between The Toro Company and First National Trust Association, as Trustee, relating to The Toro Company’s 7.80% Debentures due June 15, 2027 (incorporated by reference to Exhibit 4(a) to Registrant’s Current Report on Form 8-K as filed with the Securities and Exchange Commission on June 27, 1997, Commission File No. 1-8649). (Filed on paper - hyperlink is not required pursuant to Rule 105 of Regulation S-T). | |||||||
4.5 | ||||||||
4.6 | ||||||||
4.7 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32 | ||||||||
101 | The following financial information from The Toro Company’s Quarterly Report on Form 10-Q for the quarterly period ended August 4, 2023, filed with the SEC on September 7, 2023, formatted in Inline eXtensible Business Reporting Language (Inline XBRL): (i) Condensed Consolidated Statements of (Loss) Earnings for the three and nine month periods ended August 4, 2023 and July 29, 2022, (ii) Condensed Consolidated Statements of Comprehensive (Loss) Income for the three and nine month periods ended August 4, 2023 and July 29, 2022, (iii) Condensed Consolidated Balance Sheets as of August 4, 2023, July 29, 2022, and October 31, 2022, (iv) Condensed Consolidated Statement of Cash Flows for the nine month periods ended August 4, 2023 and July 29, 2022, (v) Condensed Consolidated Statements of Stockholders' Equity for the three and nine month periods ended August 4, 2023 and July 29, 2022, and (vi) Notes to Condensed Consolidated Financial Statements (filed herewith). | |||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
Date: September 7, 2023 | By: | /s/ Angela C. Drake | |||||||||
Angela C. Drake | |||||||||||
Vice President, Chief Financial Officer | |||||||||||
(duly authorized officer, principal financial officer, and principal accounting officer) |
/s/ Richard M. Olson | |||||
Richard M. Olson | |||||
Chairman of the Board, President and Chief Executive Officer | |||||
(Principal Executive Officer) |
/s/ Angela C. Drake | |||||
Angela C. Drake | |||||
Vice President, Chief Financial Officer | |||||
(Principal Financial and Accounting Officer) |
/s/ Richard M. Olson | |||||
Richard M. Olson | |||||
Chairman of the Board, President and Chief Executive Officer | |||||
Date: September 7, 2023 | |||||
/s/ Angela C. Drake | |||||
Angela C. Drake | |||||
Vice President, Chief Financial Officer | |||||
Date: September 7, 2023 |
Condensed Consolidated Statements of (Loss) Earnings (Unaudited) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Aug. 04, 2023 |
Jul. 29, 2022 |
Aug. 04, 2023 |
Jul. 29, 2022 |
|
Income Statement [Abstract] | ||||
Net sales | $ 1,081,784 | $ 1,160,550 | $ 3,569,950 | $ 3,342,678 |
Cost of sales | 709,430 | 760,644 | 2,321,951 | 2,236,927 |
Gross profit | 372,354 | 399,906 | 1,247,999 | 1,105,751 |
Selling, general and administrative expense | 240,163 | 236,858 | 760,585 | 680,500 |
Non-cash impairment charges | 151,263 | 0 | 151,263 | 0 |
Operating (loss) earnings | (19,072) | 163,048 | 336,151 | 425,251 |
Interest expense | (14,987) | (9,182) | (43,822) | (24,219) |
Other income, net | 5,496 | 3,225 | 21,241 | 8,262 |
(Loss) earnings before income taxes | (28,563) | 157,091 | 313,570 | 409,294 |
Income tax (benefit) provision | (13,600) | 31,941 | 54,208 | 83,509 |
Net (loss) earnings | $ (14,963) | $ 125,150 | $ 259,362 | $ 325,785 |
Basic net (loss) earnings per share of common stock (in dollars per share) | $ (0.14) | $ 1.19 | $ 2.48 | $ 3.10 |
Diluted net (loss) earnings per share of common stock (in dollars per share) | $ (0.14) | $ 1.19 | $ 2.46 | $ 3.08 |
Weighted-average number of shares of common stock outstanding — Basic (in shares) | 104,286 | 104,827 | 104,479 | 104,931 |
Weighted-average number of shares of common stock outstanding — Diluted (in shares) | 104,286 | 105,448 | 105,409 | 105,754 |
Condensed Consolidated Statements of Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Aug. 04, 2023 |
Jul. 29, 2022 |
Aug. 04, 2023 |
Jul. 29, 2022 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) earnings | $ (14,963) | $ 125,150 | $ 259,362 | $ 325,785 |
Other comprehensive (loss) income, net of tax: | ||||
Foreign currency translation adjustments | (2,013) | (5,792) | 16,974 | (21,190) |
Derivative instruments, net of tax of $(199); $863; $(5,799); and $4,895, respectively | 606 | 2,472 | (14,441) | 16,043 |
Other comprehensive (loss) income, net of tax | (1,407) | (3,320) | 2,533 | (5,147) |
Comprehensive (loss) income | $ (16,370) | $ 121,830 | $ 261,895 | $ 320,638 |
Condensed Consolidated Statements of Comprehensive (Loss) Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Aug. 04, 2023 |
Jul. 29, 2022 |
Aug. 04, 2023 |
Jul. 29, 2022 |
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Statement of Comprehensive Income [Abstract] | ||||
Derivative instruments, tax | $ (199) | $ 863 | $ (5,799) | $ 4,895 |
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares |
Aug. 04, 2023 |
Oct. 31, 2022 |
Jul. 29, 2022 |
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Stock disclosures | |||
Preferred stock, par value (in dollars per share) | $ 1.00 | $ 1.00 | $ 1.00 |
Preferred stock, issued (in shares) | 0 | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1.00 | $ 1.00 | $ 1.00 |
Common stock, authorized (in shares) | 175,000,000 | 175,000,000 | 175,000,000 |
Common stock, issued (in shares) | 103,834,891 | 103,969,805 | 104,193,673 |
Common stock, outstanding (in shares) | 103,834,891 | 103,969,805 | 104,193,673 |
Voting preferred stock | |||
Stock disclosures | |||
Preferred stock, authorized (in shares) | 1,000,000 | 1,000,000 | 1,000,000 |
Non-voting preferred stock | |||
Stock disclosures | |||
Preferred stock, authorized (in shares) | 850,000 | 850,000 | 850,000 |
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Aug. 04, 2023 |
Jul. 29, 2022 |
Aug. 04, 2023 |
Jul. 29, 2022 |
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Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends paid on common stock (in dollars per share) | $ 0.34 | $ 0.30 | $ 1.02 | $ 0.90 |
Issuance of share-based payment awards (in shares) | 56,006 | 80,153 | 490,469 | 233,491 |
Contribution to a deferred compensation trust (in shares) | 14,270 | 33,162 | ||
Purchase of shares of common stock (in shares) | 356,757 | 454,482 | 611,113 | 1,212,390 |
Basis of Presentation |
9 Months Ended | ||||||||||||
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Aug. 04, 2023 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Basis of Presentation |
The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with the instructions to Form 10-Q and do not include all the information and notes required by United States ("U.S.") generally accepted accounting principles ("GAAP") for complete financial statements. Unless the context indicates otherwise, the terms "company," "TTC," "we," "our," or "us" refer to The Toro Company and its consolidated subsidiaries. All intercompany accounts and transactions have been eliminated from the unaudited Condensed Consolidated Financial Statements. In the opinion of management, the unaudited Condensed Consolidated Financial Statements include all adjustments, consisting primarily of recurring accruals, considered necessary for the fair presentation of the company's consolidated financial position, results of operations, and cash flows for the periods presented. Due to seasonality within the industries in which the company's businesses operate, among other factors, operating results for the nine months ended August 4, 2023 cannot be annualized to determine the expected results for the fiscal year ending October 31, 2023. The company’s fiscal year ends on October 31 and quarterly results are reported based on three-month periods that generally end on the Friday closest to the calendar quarter end. For comparative purposes, however, the company’s second and third quarters always include exactly 13 weeks of results so that the quarter end date for these two quarters is not necessarily the Friday closest to the calendar month end. For further information regarding the company's basis of presentation, refer to the Consolidated Financial Statements and Notes to Consolidated Financial Statements included in the company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2022. The policies described in that report are used for preparing the company's quarterly reports on Form 10-Q. Accounting Policies and Estimates In preparing the Condensed Consolidated Financial Statements in conformity with U.S. GAAP, management must make decisions that impact the reported amounts of assets, liabilities, revenues, expenses, and the related disclosures, including disclosures of contingent assets and liabilities. Such decisions include the selection of the appropriate accounting principles to be applied and the assumptions on which to base accounting estimates. Estimates are used in determining, among other items, sales promotion and incentive accruals, incentive compensation accruals, income tax accruals, inventory valuation, warranty accruals, allowances for current expected credit losses, pension accruals, self-insurance accruals, legal accruals, right-of-use assets and lease liabilities, useful lives for tangible and finite-lived intangible assets, future cash flows associated with impairment testing for goodwill, indefinite-lived intangible assets and other long-lived assets, and valuations of the assets acquired and liabilities assumed in a business combination or an asset acquisition, when applicable. These estimates and assumptions are based on management’s best estimates and judgments at the time they are made and are generally derived from management's understanding and analysis of the relevant and current circumstances, historical experience, and actuarial and other independent external third-party specialist valuations, when applicable. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors that management believes to be reasonable under the circumstances, including the economic environment. Management adjusts such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with certainty, actual amounts could differ significantly from those estimated at the time the Condensed Consolidated Financial Statements are prepared. New Accounting Pronouncements In November 2021, the Financial Accounting Standards Board ("FASB") issued ASU No. 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance. The update increases the transparency of government assistance including annual disclosure of the types of assistance, an entity’s accounting for the assistance, and the effect of the assistance on an entity’s financial statements. The amended guidance will become effective for the company for the fiscal 2023 annual period. The adoption of this standard is not expected to have a material impact on the company's Consolidated Financial Statements or annual disclosures. The company believes that all other recently issued accounting pronouncements from the FASB that the company has not noted above will not have a material impact on its Condensed Consolidated Financial Statements or do not apply to its operations.
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Business Combinations |
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Business Combination and Asset Acquisition [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations |
Dealer Acquisition On May 9, 2023, during the third quarter of fiscal 2023, the company completed the acquisition of substantially all of the assets of, and assumed certain liabilities for, a U.S. based dealer of underground construction equipment. The purchase price of this acquisition was allocated to the identifiable assets acquired and liabilities assumed based on estimates of their fair value and no goodwill or indefinite-lived intangible assets were recorded. The company finalized the purchase accounting for this acquisition during the third quarter of fiscal 2023. Additional purchase accounting disclosures have been omitted due to immateriality of this acquisition in relation to the company's Consolidated Financial Condition and Results of Operations. Intimidator Group On January 13, 2022 ("the closing date"), during the first quarter of fiscal 2022, the company acquired the privately-held Intimidator Group ("Intimidator") for net aggregate purchase consideration of $399.8 million ("the purchase price"). Intimidator primarily designs, manufactures, markets, and sells a commercial-grade line of zero-turn mowers under the Spartan® brand, which are intended to provide innovative turf management solutions to landscape contractors and other customers including homeowners who prefer professional solutions. The acquisition of Intimidator broadened the company's Professional reportable segment and expanded its manufacturing footprint and dealer network. Purchase Accounting The company accounted for the acquisition in accordance with the accounting standards codification guidance for business combinations, whereby the purchase price was allocated to the acquired net tangible and intangible assets of Intimidator based on their fair values as of the closing date. During the first quarter of fiscal 2023, the company completed its valuation of income taxes to finalize the purchase price allocation. The following table summarizes the allocation of the purchase price to the fair values assigned to the assets acquired and liabilities assumed. These fair values are based on internal company and independent external third-party valuations:
The goodwill recognized is primarily attributable to the expected future cash flows, the value of the workforce, and expected synergies, including customer and dealer growth opportunities, expanding existing product lines, and cost reduction initiatives. Key areas of expected cost synergies include increased purchasing power for commodities, components, parts and accessories, and supply chain consolidation. The goodwill resulting from the acquisition of Intimidator was recognized within the company's Professional segment. The acquisition was considered an asset purchase for income tax purposes and as a result, the goodwill arising from the transaction is deductible. There were no purchase accounting adjustments recorded in fiscal 2023 that impacted the carrying value of goodwill acquired. Other Intangible Assets Acquired The allocation of the purchase price to the net assets acquired resulted in the recognition of $184.2 million of value for other intangible assets as of the closing date. The fair values of the acquired trade names, customer-related, and backlog intangible assets were determined using the income approach whereby an intangible asset's fair value is equal to the present value of future economic benefits to be derived from ownership of the asset. The useful lives of the other intangible assets were determined based on the period of expected cash flows used to measure the fair value of the intangible assets adjusted as appropriate for entity-specific factors including legal, regulatory, contractual, competitive, economic, and/or other factors that may limit the useful life of the respective intangible asset. As of the closing date, the acquired finite-lived intangible assets had a weighted average useful life of 9.5 years. The fair values of the trade names were determined using the relief from royalty method, which is based on the hypothetical royalty stream that would be received if the company were to license the respective trade name and were based on expected future revenues from the respective trade name. The weighted-average useful life of the finite-lived trade name intangible assets was determined to be 9.8 years as of the closing date. The fair values of the customer-related and backlog intangible assets were determined using the excess earnings method and were based on the expected operating cash flows attributable to the respective intangible asset, which were determined by deducting expected economic costs, including operating expenses and contributory asset charges, from the revenue expected to be generated from the respective intangible asset. As of the closing date, the weighted-average useful life of the customer-related and backlog intangible assets were determined to be 9.6 years and 9 months, respectively. Impairment During the preparation of the financial statements for the third quarter of fiscal 2023, the company recorded an impairment charge of $18.0 million related to the indefinite-lived Spartan trade name intangible asset. Further, during the same period, the company recorded an impairment charge of $133.3 million related to goodwill of the Intimidator reporting unit. For additional information regarding these impairment charges, refer to Note 5, Goodwill and Other Intangible Assets, Net.
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Segment Data |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Data |
The company's businesses are organized, managed, and internally grouped into segments based on similarities in products and services. Segment selection is based on the manner in which the company's chief operating decision maker organizes segments for making operating and investment decisions and assessing performance. The company has identified twelve operating segments and has aggregated certain of those operating segments into two reportable segments: Professional and Residential. The aggregation of the company's segments is based on the segments having the following similarities: economic characteristics, types of products and services, types of production processes, type or class of customers, and method of distribution. The company's remaining activities are presented as "Other" due to their insignificance. The company's Other activities consist of the company's wholly-owned domestic distribution company, the company's corporate activities, and the elimination of intersegment revenues and expenses. The following tables present summarized financial information concerning the company’s reportable business segments and Other activities (dollars in thousands):
1 The Professional reportable segment earnings (loss) before income taxes includes $151.3 million of non-cash impairment charges recorded during the preparation of the financial statements for the third quarter of fiscal 2023 related to the Intimidator operating segment. For additional information regarding the impairment charges, refer to Note 5, Goodwill and Other Intangible Assets, Net. The following table presents the details of operating loss before income taxes for the company's Other activities:
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Revenue |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue |
The following tables disaggregate the company's reportable segment net sales by major product type and geographic market (dollars in thousands):
Contract Liabilities Contract liabilities relate to deferred revenue recognized for cash consideration received at contract inception in advance of the company's performance under the respective contract and generally relate to the sale of separately priced extended warranty contracts, service contracts, and non-refundable customer deposits. The company recognizes revenue over the term of the contract in proportion to the costs expected to be incurred in satisfying the performance obligations under the separately priced extended warranty and service contracts. For non-refundable customer deposits, the company recognizes revenue as of the point in time in which the performance obligation has been satisfied under the contract with the customer, which typically occurs upon change in control at the time a product is shipped. As of August 4, 2023 and October 31, 2022, $25.0 million and $28.0 million, respectively, of deferred revenue associated with outstanding separately priced extended warranty contracts, service contracts, and non-refundable customer deposits was reported within accrued liabilities and other long-term liabilities in the Condensed Consolidated Balance Sheets. For the three and nine months ended August 4, 2023, the company recognized $3.5 million and $12.4 million, respectively, of the October 31, 2022 deferred revenue balance within net sales in the Condensed Consolidated Statements of (Loss) Earnings. The company expects to recognize approximately $2.3 million of the October 31, 2022 deferred revenue amount within net sales throughout the remainder of fiscal 2023, $8.0 million in fiscal 2024, and $5.3 million thereafter.
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Goodwill and Other Intangible Assets, Net |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets, Net |
Impairment Goodwill and indefinite-lived intangible assets are assessed for impairment at least annually during the fourth quarter of each fiscal year unless events or changes in circumstances indicate that impairment may have occurred prior to the annual assessment. Goodwill is assessed for impairment at the reporting unit level and the company's reporting units are its 12 operating segments. Indefinite-lived intangible assets are assessed for impairment at the individual indefinite-lived intangible asset or asset group level, as appropriate. Through the second quarter of fiscal 2023, the company previously assessed qualitative factors, including overall financial performance such as actual and projected cash flows, revenues, and earnings, and concluded it was not more likely than not that the indefinite-lived Spartan trade name intangible asset was impaired nor that the fair value of the Intimidator reporting unit was less than its carrying amount. During the preparation of the financial statements for the third quarter of fiscal 2023, the company identified deterioration in year-to-date fiscal 2023 results of Intimidator compared to previous expectations and resulting downward revisions to the company's projected future results of Intimidator made during the third quarter of fiscal 2023 as part of the company's annual long range strategic planning process, including future expected cash flows, which were significantly lower than previously expected. The underperformance was attributable to summer seasonality trends that did not materialize primarily due to reduced retail demand from homeowners who prefer professional solutions. This reduced retail demand from homeowners who prefer professional solutions was driven by persistent hot and dry weather patterns across key regions, coupled with a number of macro factors, including higher interest rates, economic uncertainty, and consumer spending preferences following the exceptional demand during the pandemic. Additionally, the company had previously replenished the Intimidator customer channel, which, combined with the reduced retail demand, caused a significant reduction in shipments and customer reorders during the third quarter of fiscal 2023, as well as a material reduction in projected future financial results for Intimidator. Based on the above factors, the company concluded it was more likely than not that the indefinite-lived Spartan trade name intangible asset was impaired and that the fair value of the Intimidator reporting unit was less than its carrying amount. As such, the company performed quantitative impairment analyses to compare the fair value of the Spartan trade name intangible asset and the Intimidator reporting unit with their respective carrying amounts. Prior to the end of the third quarter of fiscal 2023, the company did not have a material uncertainty associated with the assets of the Intimidator reporting unit, and therefore, did not previously report an early warning disclosure. The fair value of the Spartan trade name was determined using the relief-from-royalty method under the income approach which utilized various inputs and assumptions, including projected revenues from the company's forecasting process, assumed royalty rates that could be payable if the company did not own the intangible asset, terminal growth rates applied to forecasted revenues, and a discount rate. The fair value of the Intimidator reporting unit under the quantitative goodwill impairment test was determined using a discounted cash flow model under the income approach which utilized various inputs and assumptions, including projected operating results and growth rates from the company's forecasting process, applicable tax rates, estimated capital expenditures and depreciation, estimated changes in working capital, terminal growth rates applied to projected operating results in the terminal period, and a weighted-average cost of capital rate. Inputs used to estimate these fair values included significant unobservable inputs that reflect the company’s assumptions about the inputs that market participants would use and, therefore, the fair value assessments are classified within Level 3 of the fair value hierarchy. As a result of these analyses, at the end of the third quarter of fiscal 2023, the company recorded an impairment charge of $18.0 million related to the indefinite-lived Spartan trade name intangible asset reported under the Professional segment. Further, during the same period, the company recorded an impairment charge of $133.3 million related to goodwill of the Intimidator reporting unit also reported under the Professional segment. Subsequent to these impairment charges, the remaining balance of the indefinite-lived Spartan trade name intangible asset was $81.1 million and the remaining balance of goodwill for the Intimidator reporting unit was $30.5 million. The charges are included in the Non-cash impairment charges caption on the Condensed Consolidated Statements of (Loss) Earnings. These impairment charges resulted in a $36.7 million income tax benefit (deferred tax asset) associated with the remaining tax deductible basis in goodwill and other intangible assets. Goodwill The changes in the carrying amount of goodwill by reportable segment for the first nine months of fiscal 2023 were as follows:
Other Intangible Assets, Net The components of other intangible assets, net as of August 4, 2023, July 29, 2022, and October 31, 2022 were as follows (dollars in thousands):
Amortization expense for finite-lived intangible assets for the three and nine months ended August 4, 2023 was $8.9 million and $26.8 million, respectively. Amortization expense for finite-lived intangibles assets for the three and nine months ended July 29, 2022 was $9.1 million and $24.8 million, respectively. As of August 4, 2023, estimated amortization expense for the remainder of fiscal 2023 and succeeding fiscal years is as follows:
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Indebtedness |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Indebtedness |
The following is a summary of the company's indebtedness:
As of August 4, 2023, principal payments required on the company's outstanding indebtedness, based on the maturity dates defined within the company's debt arrangements, for the remainder of fiscal 2023 and succeeding fiscal years are as follows:
Covenants The company is in compliance with all covenants under the company’s outstanding indebtedness as of August 4, 2023.
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Inventories, Net |
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Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories, Net |
The company uses a combination of inventory valuation methods. Inventories are valued at the lower of cost or net realizable value, with cost determined by the first-in, first-out ("FIFO") and average cost methods for certain of the company's inventories. All remaining inventories are valued at the lower of cost or market, with cost determined under the last-in, first-out ("LIFO") method. As needed, the company records an inventory valuation adjustment for excess, slow-moving, and obsolete inventory that is equal to the excess of the cost of the inventory over the estimated net realizable value or market value for the inventory depending on the inventory costing method. Such inventory valuation adjustment is based on a review and comparison of current inventory levels to planned production, as well as planned and historical sales of the inventory. The inventory valuation adjustment to net realizable value or market value establishes a new cost basis of the inventory that cannot be subsequently reversed. Inventories, net were as follows:
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Property, Plant, and Equipment, Net |
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Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant, and Equipment, Net |
Property, plant, and equipment assets are carried at cost less accumulated depreciation. The company generally accounts for depreciation of property, plant, and equipment utilizing the straight-line method over the estimated useful lives of the assets. Buildings and leasehold improvements are generally depreciated over 10 to 40 years, machinery and equipment are generally depreciated over to 15 years, tooling is generally depreciated over to five years, and computer hardware and software and website development costs are generally depreciated over to five years. Expenditures for major renewals and improvements, which substantially increase the useful lives of existing assets, are capitalized. Costs associated with general maintenance and repairs are expensed as incurred within cost of sales or selling, general and administrative expense in the Condensed Consolidated Statements of (Loss) Earnings depending on the nature and use of the related asset. Interest is capitalized during the construction period for significant capital projects. Property, plant, and equipment, net was as follows:
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Product Warranty Guarantees |
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Product Warranties Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product Warranty Guarantees |
The company’s products are warranted to provide assurance that the product will function as expected and to ensure customer confidence in design, workmanship, and overall quality. Standard warranty coverage is generally provided for specified periods of time and on select products’ hours of usage and generally covers parts, labor, and other expenses for non-maintenance repairs. In addition to the standard warranties offered by the company on its products, the company also sells separately priced extended warranty coverage on select products for a prescribed period after the original warranty period expires. For additional information on the contract liabilities associated with the company's separately priced extended warranties, refer to Note 4, Revenue. At the time of sale, the company recognizes expense and records an accrual by product line for estimated costs in connection with forecasted future warranty claims. The company's estimate of the cost of future warranty claims is based primarily on the estimated number of products under warranty, historical average costs incurred to service warranty claims, the trend in the historical ratio of claims to sales, and the historical length of time between the sale and resulting warranty claim. The company periodically assesses the adequacy of its warranty accruals based on changes in these factors and records any necessary adjustments if the cost of actual claims experience indicates that adjustments to the company's warranty accrual are necessary. Additionally, from time to time, the company may also establish warranty accruals for its estimate of the costs necessary to settle major rework campaigns on a product-specific basis during the period in which the circumstances giving rise to the major rework campaign become known and when the costs to satisfactorily address the situation are both probable and estimable. The warranty accrual for the cost of a major rework campaign is primarily based on an estimate of the cost to repair each affected unit and the number of affected units expected to be repaired. The changes in accrued warranties were as follows:
(1) Presentation of prior period changes in accrued warranties has been conformed to the current year presentation. There was no impact to the balance of accrued warranties in any period.
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Investment in Joint Venture |
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Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||
Investment in Joint Venture |
The company is party to a joint venture with Huntington Distribution Finance, Inc. ("HDF"), a subsidiary of The Huntington National Bank, established as Red Iron Acceptance, LLC ("Red Iron"), the primary purpose of which is to provide customer inventory financing to certain distributors and dealers of certain of the company’s products in the U.S. The company has also entered into a limited inventory repurchase agreement with Red Iron. For additional information regarding the customer financing aspect of the arrangement, as well as the limited inventory purchase agreement, refer to Note 14, Commitments and Contingencies. The company owns 45 percent of Red Iron and HDF owns 55 percent of Red Iron. The company accounts for its investment in Red Iron under the equity method of accounting. The company and HDF each contributed a specified amount of the estimated cash required to enable Red Iron to purchase the company's floor plan financing receivables and to provide financial support for Red Iron's floor plan financing programs. Red Iron borrows the remaining requisite estimated cash utilizing an $800.0 million secured revolving credit facility established under a credit agreement between Red Iron and HDF. The company's total investment in Red Iron as of August 4, 2023, July 29, 2022 and October 31, 2022 was $48.5 million, $31.4 million, and $39.3 million, respectively. The company has not guaranteed the outstanding indebtedness of Red Iron.
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Stock-Based Compensation |
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Share-Based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation |
Compensation costs related to stock-based compensation awards were as follows:
Stock Option Awards Stock options are granted with an exercise price equal to the closing price of the company’s common stock on the date of grant, as reported by the New York Stock Exchange. Options are generally granted to executive officers, other employees, and non-employee members of the company’s Board of Directors ("Board") on an annual basis in the first quarter of the company’s fiscal year but may also be granted throughout the fiscal year in connection with hiring, mid-year promotions, leadership transition, or retention, as needed and applicable. Options generally vest one-third each year over a three-year period and have a ten-year term but in certain circumstances, the vesting requirement may be modified such that options granted to certain employees vest in full on the three-year anniversary of the date of grant and have a ten-year term. Compensation cost equal to the grant date fair value determined under the Black-Scholes valuation method is generally recognized for these awards over the vesting period. Compensation cost recognized for other employees not considered executive officers and non-employee Board members is net of estimated forfeitures, which are determined at the time of grant based on historical forfeiture experience. Stock options granted to executive officers and other employees are subject to accelerated expensing if the option holder meets the retirement definition set forth in the company's stock-based compensation plans. In that case, the fair value of the options is expensed in the fiscal year of grant because generally, if the option holder is employed as of the end of the fiscal year in which the options are granted, such options will not be forfeited but continue to vest according to their schedule following retirement. Similarly, if a non-employee Board member has served on the company's Board for full fiscal years or more, the awards will not be forfeited but continue to vest according to their schedule following retirement. Therefore, the fair value of the options granted is fully expensed on the date of the grant. The fair value of each stock option is estimated on the date of grant using various inputs and assumptions under the Black-Scholes valuation method. The expected life is a significant assumption as it determines the period for which the risk-free interest rate, stock price volatility, and dividend yield must be applied. The expected life is the average length of time in which executive officers, other employees, and non-employee Board members are expected to exercise their stock options, which is primarily based on historical exercise experience. The company groups executive officers and non-employee Board members for valuation purposes based on similar historical exercise behavior. Expected stock price volatility is based on the daily movement of the company’s common stock over the most recent historical period equivalent to the expected life of the option. The risk-free interest rate for periods within the contractual life of the option is based on the U.S. Treasury rate over the expected life at the time of grant. The expected dividend yield is estimated over the expected life based on the company’s historical cash dividends paid, expected future cash dividends and dividend yield, and expected changes in the company’s stock price. The table below illustrates the weighted-average valuation assumptions used under the Black-Scholes valuation method for options granted in the first nine months of the following fiscal periods:
Performance Share Awards The company grants performance share awards to executive officers and other employees under which they are entitled to receive shares of the company’s common stock contingent on the achievement of performance goals of the company, which are generally measured over a three-year period. The number of shares of common stock a participant receives can be increased (up to 200 percent of target levels) or reduced (down to zero) based on the level of achievement of performance goals and will vest at the end of a three-year period. Performance share awards are generally granted on an annual basis in the first quarter of the company’s fiscal year. Compensation cost is recognized for these awards on a straight-line basis over the vesting period based on the per share fair value, which is equal to the closing price of the company's common stock on the date of grant, and the probability of achieving each performance goal. The per share weighted-average fair value of performance share awards granted during the first quarter of fiscal 2023 and 2022 was $112.14 and $98.41, respectively. No performance share awards were granted during the second or third quarters of fiscal 2023 and 2022. Restricted Stock Unit Awards Restricted stock unit awards are generally granted to certain employees who are not executive officers. Occasionally, restricted stock unit awards may be granted, including to executive officers, in connection with hiring, mid-year promotions, leadership transition, or retention. Restricted stock unit awards generally vest one-third each year over a three-year period, or vest in full on the three-year anniversary of the date of grant. Compensation cost equal to the grant date fair value, net of estimated forfeitures, is recognized for these awards over the vesting period. The grant date fair value is equal to the closing price of the company's common stock on the date of grant multiplied by the number of shares subject to the restricted stock unit awards and estimated forfeitures are determined on the grant date based on historical forfeiture experience. The per share weighted-average fair value of restricted stock unit awards granted during the first nine months of fiscal 2023 and 2022 was $103.46 and $89.19, respectively. Unrestricted Common Stock Awards During the first nine months of fiscal 2023 and 2022, 10,329 and 6,453 shares, respectively, of fully vested unrestricted common stock awards were granted to certain Board members as a component of their compensation for their service on the Board and were recorded within selling, general and administrative expense in the Condensed Consolidated Statements of (Loss) Earnings. Additionally, the Company's Board members may elect to convert a portion or all of their calendar year annual retainers otherwise payable in cash into shares of the company's common stock. No shares of fully vested unrestricted common stock awards were granted during the second or third quarters of fiscal 2023 and 2022.
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Stockholders' Equity |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity |
Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss ("AOCL"), net of tax, within the Condensed Consolidated Statements of Stockholders' Equity were as follows:
The components and activity of AOCL, net of tax, for the three and nine month periods ended August 4, 2023 and July 29, 2022 were as follows:
For additional information on the components reclassified from AOCL to the respective line items in net earnings for derivative instruments refer to Note 16, Derivative Instruments and Hedging Activities.
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Per Share Data |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per Share Data |
Reconciliations of basic and diluted weighted-average number of shares of common stock outstanding were as follows:
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||
Commitments and Contingencies |
Customer Financing Arrangements Inventory Financing The company is party to inventory financing arrangements with Red Iron, Huntington Commercial Finance Canada, Inc. ("HCFC"), and other third-party financial institutions (collectively, the "financial institutions") which provide inventory financing to certain dealers and distributors of certain of the company's products in the U.S. and internationally. These financing arrangements are structured as an advance in the form of a payment by the financial institutions to the company on behalf of a distributor or dealer with respect to invoices financed by the financial institution. These payments extinguish the obligation of the dealer or distributor to make payment to the company under the terms of the applicable invoice. Under separate agreements between the financial institutions and the dealers and distributors, the financial institutions provide loans to the dealers and distributors for the advances paid by the financial institutions to the company. Under these financing arrangements, down payments are not required, and depending on the finance program for each product line, finance charges are incurred by the company, shared between the company and the distributor and/or the dealer, or paid by the distributor or dealer. The financial institutions retain a security interest in the distributors' and dealers' financed inventories and such inventories are monitored regularly through audits. Financing terms to the distributors and dealers require payment as the inventory, which secures the indebtedness, is sold to end-users or when payment otherwise become due under the agreements between the financial institutions and the distributors and dealers, whichever occurs first. Rates are generally indexed to the Secured Overnight Financing Rate ("SOFR"), or an alternative variable rate, plus a fixed percentage that differs based on whether the financing is for a distributor or dealer. Rates may also vary based on the product that is financed. The net amount of receivables financed for dealers and distributors under this arrangement with Red Iron for the nine months ended August 4, 2023 and July 29, 2022 were $2,160.8 million and $1,886.1 million, respectively. The total amount of net receivables outstanding under this arrangement with Red Iron as of August 4, 2023, July 29, 2022, and October 31, 2022 were $1,010.5 million, $690.7 million and $776.1 million, respectively. The total amount of receivables due from Red Iron to the company as of August 4, 2023, July 29, 2022, and October 31, 2022 were $30.4 million, $14.4 million and $17.7 million, respectively. The net amount of receivables financed for dealers and distributors under the arrangements with HCFC and the other third-party financial institutions for the nine months ended August 4, 2023 and July 29, 2022 were $367.6 million and $458.9 million, respectively. As of August 4, 2023, July 29, 2022, and October 31, 2022, $187.2 million, $205.1 million and $220.0 million of receivables financed by HCFC and the other third-party financial institutions were outstanding, respectively. Inventory Repurchase Agreements The company has entered into a limited inventory repurchase agreement with Red Iron and HCFC under which the company has agreed to repurchase certain repossessed products, up to a maximum aggregate amount of $7.5 million in a calendar year. Additionally, as a result of the company's floor plan financing agreements with the other third-party financial institutions, the company also entered into inventory repurchase agreements with the other third-party financial institutions. Under such inventory repurchase agreements, the company has agreed to repurchase products repossessed by the other third-party financial institutions. As of August 4, 2023, July 29, 2022 and October 31, 2022, the company was contingently liable to repurchase up to a maximum amount of $118.8 million, $79.9 million and $80.0 million, respectively, of inventory related to receivables under these inventory repurchase agreements. The company's financial exposure under these inventory repurchase agreements is limited to the difference between the amount paid to Red Iron, HCFC or other third-party financing institutions for repurchases of inventory and the amount received upon subsequent resale of the repossessed product. The company has repurchased immaterial amounts of inventory pursuant to such arrangements for the nine months ended August 4, 2023 and July 29, 2022. Litigation From time to time, the company is party to litigation in the ordinary course of business. Such matters are generally subject to uncertainties and to outcomes that are not predictable with assurance and that may not be known for extended periods of time. Litigation occasionally involves claims for punitive, as well as compensatory, damages arising out of the use of the company’s products. Although the company is self-insured to some extent, the company maintains insurance against certain product liability losses. The company is also subject to litigation and administrative and judicial proceedings with respect to claims involving asbestos and the discharge of hazardous substances into the environment. Some of these claims assert damages and liability for personal injury, remedial investigations or clean-up and other costs and damages. The company is also occasionally involved in commercial disputes, employment or employment-related disputes, and patent litigation cases in which it is asserting or defending against patent infringement claims. To prevent possible infringement of the company’s patents by others, the company periodically reviews competitors’ products. To avoid potential liability with respect to others’ patents, the company reviews certain patents issued by the U.S. Patent and Trademark Office and foreign patent offices. The company believes these activities help minimize its risk of being a defendant in patent infringement litigation. The company records a liability in its Condensed Consolidated Financial Statements for costs related to claims, including future legal costs, settlements, and judgments, where the company has assessed that a loss is probable and an amount can be reasonably estimated. If the reasonable estimate of a probable loss is a range, the company records the most probable estimate of the loss or the minimum amount when no amount within the range is a better estimate than any other amount. The company discloses a contingent liability even if the liability is not probable or the amount is not estimable, or both, if there is a reasonable possibility that a material loss may have been incurred. In the opinion of management, the amount of liability, if any, with respect to these matters, individually or in the aggregate, will not materially affect the company's consolidated results of operations, financial position, or cash flows. In situations where the company receives, or expects to receive, a favorable ruling related to a litigation settlement, the company follows the accounting standards codification guidance for gain contingencies. The company does not allow for the recognition of a gain contingency within its Condensed Consolidated Financial Statements prior to the settlement of the underlying events or contingencies associated with the gain contingency. As a result, the consideration related to a gain contingency is recorded in the Condensed Consolidated Financial Statements during the period in which all underlying events or contingencies are resolved and the gain is realized.
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Leases |
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases |
The company enters into contracts that are, or contain, operating lease agreements for certain property, plant, or equipment assets utilized in the normal course of business, such as buildings for manufacturing facilities, office space, distribution centers, and warehouse facilities; land for product testing sites; machinery and equipment for research and development activities, manufacturing and assembly processes, and administrative tasks; and vehicles for sales, service, marketing, and distribution activities. Contracts that explicitly or implicitly relate to property, plant, and equipment are assessed at inception to determine if the contract is, or contains, a lease. Such contracts for operating lease agreements convey the company's right to direct the use of, and obtain substantially all of the economic benefits from, an identified asset for a defined period of time in exchange for consideration. The lease term begins and is determined upon lease commencement, which is the point in time when the company takes possession of the identified asset, and generally includes all non-cancelable periods. Lease expense for the company's operating leases is recognized on a straight-line basis over the lease term and is recorded within cost of sales or selling, general and administrative expense within the Condensed Consolidated Statements of (Loss) Earnings as dictated by the nature and use of the underlying asset. The company does not recognize right-of-use assets and lease liabilities, but does recognize expense on a straight-line basis, for short-term operating leases which have a lease term of 12 months or less and do not include an option to purchase the underlying asset. Lease payments are determined at lease commencement and generally represent fixed lease payments as defined within the respective lease agreement or, in the case of certain lease agreements, variable lease payments that are measured as of the lease commencement date based on the prevailing index or market rate. Future adjustments to variable lease payments are defined and scheduled within the respective lease agreement and are determined based upon the prevailing market or index rate at the time of the adjustment relative to the market or index rate determined at lease commencement. Certain other lease agreements contain variable lease payments that are determined based upon actual utilization of the identified asset. Such future adjustments to variable lease payments and variable lease payments based upon actual utilization of the identified asset are not included within the determination of lease payments at commencement but rather, are recorded as variable lease expense in the period in which the variable lease cost is incurred. Right-of-use assets represent the company's right to use an underlying asset throughout the lease term and lease liabilities represent the company's obligation to make lease payments arising from the lease agreement. The company accounts for operating lease liabilities at lease commencement and on an ongoing basis as the present value of the minimum remaining lease payments under the respective lease term. Minimum remaining lease payments are generally discounted to present value based the estimated incremental borrowing rate at lease commencement as the rate implicit in the lease is generally not readily determinable. Right-of-use assets are measured as the amount of the corresponding operating lease liability for the respective operating lease agreement, adjusted for prepaid or accrued lease payments, the remaining balance of any lease incentives received, unamortized initial direct costs, and impairment of the operating lease right-of-use asset, as applicable. The following table presents the lease expense incurred on the company’s operating, short-term, and variable leases:
The following table presents supplemental cash flow information related to the company's operating leases:
The following table presents other lease information related to the company's operating leases:
The following table reconciles the total undiscounted future cash flows based on the anticipated future minimum operating lease payments by fiscal year for the company's operating leases to the present value of operating lease liabilities recorded within the Condensed Consolidated Balance Sheets as of August 4, 2023:
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Derivative Instruments and Hedging Activities |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities |
Risk Management Objective of Using Derivatives The company is exposed to foreign currency exchange rate risk arising from transactions in the normal course of business, such as sales to third-party customers, sales and loans to wholly-owned foreign subsidiaries, costs associated with foreign plant operations, and purchases from suppliers. The company’s primary currency exchange rate exposures are with the Euro, the Australian dollar, the Canadian dollar, the British pound, the Mexican peso, the Japanese yen, the Chinese renminbi, and the Romanian new leu against the U.S. dollar, as well as the Romanian new leu against the Euro. To reduce its exposure to foreign currency exchange rate risk, the company enters into various derivative instruments to hedge against such risk, authorized under a company policy that places controls on these hedging activities, with counterparties that are highly rated financial institutions. The company’s policy does not allow the use of derivative instruments for trading or speculative purposes. The company has also made an accounting policy election to use the portfolio exception with respect to measuring counterparty credit risk for derivative instruments and to measure the fair value of a portfolio of financial assets and financial liabilities on the basis of the net open risk position with each counterparty. The company’s hedging activities primarily involve the use of forward currency contracts to hedge most foreign currency transactions, including forecasted sales and purchases denominated in foreign currencies. The company uses derivative instruments only in an attempt to limit underlying exposure from foreign currency exchange rate fluctuations and to minimize earnings and cash flow volatility associated with foreign currency exchange rate fluctuations. Decisions on whether to use such derivative instruments are primarily based on the amount of exposure to the currency involved and an assessment of the near-term market value for each currency. The company recognizes all derivative instruments at fair value on the Condensed Consolidated Balance Sheets as either assets or liabilities. The accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as a cash flow hedging instrument. Cash Flow Hedging Instruments The company formally documents relationships between cash flow hedging instruments and the related hedged transactions, as well as its risk-management objective and strategy for undertaking cash flow hedging instruments. This process includes linking all cash flow hedging instruments to the forecasted transactions, such as sales to third-parties and costs associated with foreign plant operations, including purchases from suppliers. At the cash flow hedge’s inception and on an ongoing basis, the company formally assesses whether the cash flow hedging instruments have been highly effective in offsetting changes in the cash flows of the hedged transactions and whether those cash flow hedging instruments may be expected to remain highly effective in future periods. Changes in the fair values of the spot rate component of outstanding, highly effective cash flow hedging instruments included in the assessment of hedge effectiveness are recorded in other comprehensive income within AOCL on the Condensed Consolidated Balance Sheets and are subsequently reclassified to net earnings within the Condensed Consolidated Statements of (Loss) Earnings during the same period in which the cash flows of the underlying hedged transaction affect net earnings. Changes in the fair values of hedge components excluded from the assessment of effectiveness are recognized immediately in net earnings under the mark-to-market approach. The classification of gains or losses recognized on cash flow hedging instruments and excluded components within the Condensed Consolidated Statements of (Loss) Earnings is the same as that of the underlying exposure. Results of cash flow hedging instruments, and the related excluded components, of sales and costs associated with foreign plant operations, including purchases from suppliers, are recorded in net sales and cost of sales, respectively. The maximum amount of time the company hedges its exposure to the variability in future cash flows for forecasted trade sales and purchases is two years. When it is determined that a derivative instrument is not, or has ceased to be, highly effective as a cash flow hedge, the company discontinues cash flow hedge accounting prospectively. The gain or loss on the dedesignated derivative instrument remains in AOCL and is reclassified to net earnings within the same Condensed Consolidated Statements of (Loss) Earnings line item as the underlying exposure when the forecasted transaction affects net earnings. When the company discontinues cash flow hedge accounting because it is no longer probable, but it is still reasonably possible that the forecasted transaction will occur by the end of the originally expected period or within an additional two-month period of time thereafter, the gain or loss on the derivative instrument remains in AOCL and is reclassified to net earnings within the same Condensed Consolidated Statements of (Loss) Earnings line item as the underlying exposure when the forecasted transaction affects net earnings. However, if it is probable that a forecasted transaction will not occur by the end of the originally specified time period or within an additional two-month period of time thereafter, the gains and losses that were in AOCL are immediately recognized in net earnings within other income, net in the Condensed Consolidated Statements of (Loss) Earnings. In all situations in which cash flow hedge accounting is discontinued and the derivative instrument remains outstanding, the company carries the derivative instrument at its fair value on the Condensed Consolidated Balance Sheets, recognizing future changes in the fair value within other income, net in the Condensed Consolidated Statements of (Loss) Earnings. As of August 4, 2023, the notional amount outstanding of forward currency contracts designated as cash flow hedging instruments was $306.9 million. Derivatives Not Designated as Cash Flow Hedging Instruments The company also enters into foreign currency contracts that include forward currency contracts to mitigate the remeasurement of specific assets and liabilities on the Condensed Consolidated Balance Sheets. These contracts are not designated as cash flow hedging instruments. Accordingly, changes in the fair value of hedges of recorded balance sheet positions, such as cash, receivables, payables, intercompany notes, and other various contractual claims to pay or receive foreign currencies other than the functional currency, are recognized immediately in other income, net, on the Condensed Consolidated Statements of (Loss) Earnings together with the transaction gain or loss from the hedged balance sheet position. The following table presents the fair value and location of the company’s derivative instruments on the Condensed Consolidated Balance Sheets:
The company entered into an International Swap Dealers Association ("ISDA") Master Agreement with each counterparty that permits the net settlement of amounts owed under their respective contracts. The ISDA Master Agreement is an industry standardized contract that governs all derivative contracts entered into between the company and the respective counterparty. Under these master netting agreements, net settlement generally permits the company or the counterparty to determine the net amount payable or receivable for contracts due on the same date or in the same currency for similar types of derivative transactions. The company records the fair value of its derivative instruments at the net amount on its Condensed Consolidated Balance Sheets. The following table presents the effects of the master netting arrangements on the fair value of the company’s derivative instruments that are recorded on the Condensed Consolidated Balance Sheets:
The following table presents the impact and location of the amounts reclassified from AOCL into net earnings on the Condensed Consolidated Statements of (Loss) Earnings and the impact of derivative instruments on the Condensed Consolidated Statements of Comprehensive (Loss) Income for the company's derivatives designated as cash flow hedging instruments for the three and nine months ended August 4, 2023 and July 29, 2022:
The company recognized immaterial gains and losses within other income, net in the Condensed Consolidated Statements of (Loss) Earnings during the third quarter and first nine months of fiscal 2023 and fiscal 2022, respectively, due to the discontinuance of cash flow hedge accounting on certain forward currency contracts designated as cash flow hedging instruments. As of August 4, 2023, the company expects to reclassify approximately $6.8 million of gains from AOCL to earnings during the next twelve months. The following tables present the impact and location of derivative instruments on the Condensed Consolidated Statements of (Loss) Earnings for the company’s derivatives designated as cash flow hedging instruments and the related components excluded from effectiveness testing:
The following table presents the impact and location of derivative instruments on the Condensed Consolidated Statements of (Loss) Earnings for the company’s derivatives not designated as cash flow hedging instruments:
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements |
The company categorizes its assets and liabilities into one of three levels based on the assumptions (inputs) used in valuing the asset or liability. Estimates of fair value for financial assets and financial liabilities are based on the framework established in the accounting guidance for fair value measurements. The framework defines fair value, provides guidance for measuring fair value, and requires certain disclosures. The framework discusses valuation techniques such as the market approach (comparable market prices), the income approach (present value of future income or cash flows), and the cost approach (cost to replace the service capacity of an asset or replacement cost). The framework utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. Level 1 provides the most reliable measure of fair value, while Level 3 generally requires significant management judgment. The three levels are defined as follows: Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2: Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Unobservable inputs reflecting management’s assumptions about the inputs used in pricing the asset or liability. Recurring Fair Value Measurements The company's derivative instruments consist of forward currency contracts that are measured at fair value on a recurring basis. The fair value of such forward currency contracts is determined based on observable market transactions of forward currency prices and spot currency rates as of the reporting date. The following tables present, by level within the fair value hierarchy, the company's financial assets and liabilities that are measured at fair value on a recurring basis as of August 4, 2023, July 29, 2022, and October 31, 2022, according to the valuation technique utilized to determine their fair values (dollars in thousands):
Nonrecurring Fair Value Measurements The company measures certain assets and liabilities at fair value on a non-recurring basis. Assets and liabilities that are measured at fair value on a nonrecurring basis include long-lived assets, goodwill, and indefinite-lived intangible assets, which would generally be recorded at fair value as a result of an impairment charge. For additional information regarding impairment related fair value measurements, refer to Note 5, Goodwill and Other Intangible Assets, Net. Assets acquired and liabilities assumed as part of a business combination are also measured at fair value on a non-recurring basis during the measurement period allowed by the accounting standards codification guidance for business combinations when applicable. Alternatively, under a cost accumulation model, the company measures the fair values of net assets acquired as part of an asset acquisition before allocating the cost of the asset acquisition to the net assets acquired on the basis of their relative fair values. For additional information on the company's business combination and the related non-recurring fair value measurement of the assets acquired and liabilities assumed, refer to Note 2, Business Combinations. Other Fair Value Disclosures The carrying values of the company's short-term financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, and short-term debt, including current maturities of long-term debt, when applicable, approximate their fair values due to their short-term nature. As of August 4, 2023, July 29, 2022, and October 31, 2022, the company's long-term debt included $524.1 million, $524.1 million, and $524.1 million of gross fixed-rate debt that is not subject to variable interest rate fluctuations. The gross fair value of such long-term debt is determined using Level 2 inputs by discounting the projected cash flows based on quoted market rates at which similar amounts of debt could currently be borrowed. As of August 4, 2023, the estimated gross fair value of long-term debt with fixed interest rates was $497.7 million compared to its gross carrying amount of $524.1 million. As of July 29, 2022, the estimated gross fair value of long-term debt with fixed interest rates was $541.0 million compared to its gross carrying amount of $524.1 million. As of October 31, 2022, the estimated gross fair value of long-term debt with fixed interest rates was $489.8 million compared to its gross carrying amount of $524.1 million. For additional information regarding long-term debt with fixed interest rates, refer to Note 6, Indebtedness.
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Subsequent Events |
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Subsequent Events [Abstract] | |||||||||||||
Subsequent Events |
The company has evaluated all subsequent events and concluded that no subsequent events have occurred that would require recognition in the Condensed Consolidated Financial Statements or disclosure in the Notes to the Condensed Consolidated Financial Statements.
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Insider Trading Arrangements |
3 Months Ended |
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Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation (Policies) |
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Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with the instructions to Form 10-Q and do not include all the information and notes required by United States ("U.S.") generally accepted accounting principles ("GAAP") for complete financial statements. Unless the context indicates otherwise, the terms "company," "TTC," "we," "our," or "us" refer to The Toro Company and its consolidated subsidiaries. All intercompany accounts and transactions have been eliminated from the unaudited Condensed Consolidated Financial Statements.In the opinion of management, the unaudited Condensed Consolidated Financial Statements include all adjustments, consisting primarily of recurring accruals, considered necessary for the fair presentation of the company's consolidated financial position, results of operations, and cash flows for the periods presented. |
Fiscal Period | The company’s fiscal year ends on October 31 and quarterly results are reported based on three-month periods that generally end on the Friday closest to the calendar quarter end. For comparative purposes, however, the company’s second and third quarters always include exactly 13 weeks of results so that the quarter end date for these two quarters is not necessarily the Friday closest to the calendar month end. For further information regarding the company's basis of presentation, refer to the Consolidated Financial Statements and Notes to Consolidated Financial Statements included in the company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2022. |
Accounting Policies and Estimates | Accounting Policies and Estimates In preparing the Condensed Consolidated Financial Statements in conformity with U.S. GAAP, management must make decisions that impact the reported amounts of assets, liabilities, revenues, expenses, and the related disclosures, including disclosures of contingent assets and liabilities. Such decisions include the selection of the appropriate accounting principles to be applied and the assumptions on which to base accounting estimates. Estimates are used in determining, among other items, sales promotion and incentive accruals, incentive compensation accruals, income tax accruals, inventory valuation, warranty accruals, allowances for current expected credit losses, pension accruals, self-insurance accruals, legal accruals, right-of-use assets and lease liabilities, useful lives for tangible and finite-lived intangible assets, future cash flows associated with impairment testing for goodwill, indefinite-lived intangible assets and other long-lived assets, and valuations of the assets acquired and liabilities assumed in a business combination or an asset acquisition, when applicable. These estimates and assumptions are based on management’s best estimates and judgments at the time they are made and are generally derived from management's understanding and analysis of the relevant and current circumstances, historical experience, and actuarial and other independent external third-party specialist valuations, when applicable. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors that management believes to be reasonable under the circumstances, including the economic environment. Management adjusts such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with certainty, actual amounts could differ significantly from those estimated at the time the Condensed Consolidated Financial Statements are prepared.
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New Accounting Pronouncements | New Accounting Pronouncements In November 2021, the Financial Accounting Standards Board ("FASB") issued ASU No. 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance. The update increases the transparency of government assistance including annual disclosure of the types of assistance, an entity’s accounting for the assistance, and the effect of the assistance on an entity’s financial statements. The amended guidance will become effective for the company for the fiscal 2023 annual period. The adoption of this standard is not expected to have a material impact on the company's Consolidated Financial Statements or annual disclosures. The company believes that all other recently issued accounting pronouncements from the FASB that the company has not noted above will not have a material impact on its Condensed Consolidated Financial Statements or do not apply to its operations.
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Inventories, Net | Inventories are valued at the lower of cost or net realizable value, with cost determined by the first-in, first-out ("FIFO") and average cost methods for certain of the company's inventories. All remaining inventories are valued at the lower of cost or market, with cost determined under the last-in, first-out ("LIFO") method. As needed, the company records an inventory valuation adjustment for excess, slow-moving, and obsolete inventory that is equal to the excess of the cost of the inventory over the estimated net realizable value or market value for the inventory depending on the inventory costing method. Such inventory valuation adjustment is based on a review and comparison of current inventory levels to planned production, as well as planned and historical sales of the inventory. The inventory valuation adjustment to net realizable value or market value establishes a new cost basis of the inventory that cannot be subsequently reversed. |
Leases | The company enters into contracts that are, or contain, operating lease agreements for certain property, plant, or equipment assets utilized in the normal course of business, such as buildings for manufacturing facilities, office space, distribution centers, and warehouse facilities; land for product testing sites; machinery and equipment for research and development activities, manufacturing and assembly processes, and administrative tasks; and vehicles for sales, service, marketing, and distribution activities. Contracts that explicitly or implicitly relate to property, plant, and equipment are assessed at inception to determine if the contract is, or contains, a lease. Such contracts for operating lease agreements convey the company's right to direct the use of, and obtain substantially all of the economic benefits from, an identified asset for a defined period of time in exchange for consideration. The lease term begins and is determined upon lease commencement, which is the point in time when the company takes possession of the identified asset, and generally includes all non-cancelable periods. Lease expense for the company's operating leases is recognized on a straight-line basis over the lease term and is recorded within cost of sales or selling, general and administrative expense within the Condensed Consolidated Statements of (Loss) Earnings as dictated by the nature and use of the underlying asset. The company does not recognize right-of-use assets and lease liabilities, but does recognize expense on a straight-line basis, for short-term operating leases which have a lease term of 12 months or less and do not include an option to purchase the underlying asset. Lease payments are determined at lease commencement and generally represent fixed lease payments as defined within the respective lease agreement or, in the case of certain lease agreements, variable lease payments that are measured as of the lease commencement date based on the prevailing index or market rate. Future adjustments to variable lease payments are defined and scheduled within the respective lease agreement and are determined based upon the prevailing market or index rate at the time of the adjustment relative to the market or index rate determined at lease commencement. Certain other lease agreements contain variable lease payments that are determined based upon actual utilization of the identified asset. Such future adjustments to variable lease payments and variable lease payments based upon actual utilization of the identified asset are not included within the determination of lease payments at commencement but rather, are recorded as variable lease expense in the period in which the variable lease cost is incurred. Right-of-use assets represent the company's right to use an underlying asset throughout the lease term and lease liabilities represent the company's obligation to make lease payments arising from the lease agreement. The company accounts for operating lease liabilities at lease commencement and on an ongoing basis as the present value of the minimum remaining lease payments under the respective lease term. Minimum remaining lease payments are generally discounted to present value based the estimated incremental borrowing rate at lease commencement as the rate implicit in the lease is generally not readily determinable. Right-of-use assets are measured as the amount of the corresponding operating lease liability for the respective operating lease agreement, adjusted for prepaid or accrued lease payments, the remaining balance of any lease incentives received, unamortized initial direct costs, and impairment of the operating lease right-of-use asset, as applicable.
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Derivative Instruments and Hedging Activities | Risk Management Objective of Using Derivatives The company is exposed to foreign currency exchange rate risk arising from transactions in the normal course of business, such as sales to third-party customers, sales and loans to wholly-owned foreign subsidiaries, costs associated with foreign plant operations, and purchases from suppliers. The company’s primary currency exchange rate exposures are with the Euro, the Australian dollar, the Canadian dollar, the British pound, the Mexican peso, the Japanese yen, the Chinese renminbi, and the Romanian new leu against the U.S. dollar, as well as the Romanian new leu against the Euro. To reduce its exposure to foreign currency exchange rate risk, the company enters into various derivative instruments to hedge against such risk, authorized under a company policy that places controls on these hedging activities, with counterparties that are highly rated financial institutions. The company’s policy does not allow the use of derivative instruments for trading or speculative purposes. The company has also made an accounting policy election to use the portfolio exception with respect to measuring counterparty credit risk for derivative instruments and to measure the fair value of a portfolio of financial assets and financial liabilities on the basis of the net open risk position with each counterparty. The company’s hedging activities primarily involve the use of forward currency contracts to hedge most foreign currency transactions, including forecasted sales and purchases denominated in foreign currencies. The company uses derivative instruments only in an attempt to limit underlying exposure from foreign currency exchange rate fluctuations and to minimize earnings and cash flow volatility associated with foreign currency exchange rate fluctuations. Decisions on whether to use such derivative instruments are primarily based on the amount of exposure to the currency involved and an assessment of the near-term market value for each currency. The company recognizes all derivative instruments at fair value on the Condensed Consolidated Balance Sheets as either assets or liabilities. The accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as a cash flow hedging instrument. Cash Flow Hedging Instruments The company formally documents relationships between cash flow hedging instruments and the related hedged transactions, as well as its risk-management objective and strategy for undertaking cash flow hedging instruments. This process includes linking all cash flow hedging instruments to the forecasted transactions, such as sales to third-parties and costs associated with foreign plant operations, including purchases from suppliers. At the cash flow hedge’s inception and on an ongoing basis, the company formally assesses whether the cash flow hedging instruments have been highly effective in offsetting changes in the cash flows of the hedged transactions and whether those cash flow hedging instruments may be expected to remain highly effective in future periods. Changes in the fair values of the spot rate component of outstanding, highly effective cash flow hedging instruments included in the assessment of hedge effectiveness are recorded in other comprehensive income within AOCL on the Condensed Consolidated Balance Sheets and are subsequently reclassified to net earnings within the Condensed Consolidated Statements of (Loss) Earnings during the same period in which the cash flows of the underlying hedged transaction affect net earnings. Changes in the fair values of hedge components excluded from the assessment of effectiveness are recognized immediately in net earnings under the mark-to-market approach. The classification of gains or losses recognized on cash flow hedging instruments and excluded components within the Condensed Consolidated Statements of (Loss) Earnings is the same as that of the underlying exposure. Results of cash flow hedging instruments, and the related excluded components, of sales and costs associated with foreign plant operations, including purchases from suppliers, are recorded in net sales and cost of sales, respectively. The maximum amount of time the company hedges its exposure to the variability in future cash flows for forecasted trade sales and purchases is two years. When it is determined that a derivative instrument is not, or has ceased to be, highly effective as a cash flow hedge, the company discontinues cash flow hedge accounting prospectively. The gain or loss on the dedesignated derivative instrument remains in AOCL and is reclassified to net earnings within the same Condensed Consolidated Statements of (Loss) Earnings line item as the underlying exposure when the forecasted transaction affects net earnings. When the company discontinues cash flow hedge accounting because it is no longer probable, but it is still reasonably possible that the forecasted transaction will occur by the end of the originally expected period or within an additional two-month period of time thereafter, the gain or loss on the derivative instrument remains in AOCL and is reclassified to net earnings within the same Condensed Consolidated Statements of (Loss) Earnings line item as the underlying exposure when the forecasted transaction affects net earnings. However, if it is probable that a forecasted transaction will not occur by the end of the originally specified time period or within an additional two-month period of time thereafter, the gains and losses that were in AOCL are immediately recognized in net earnings within other income, net in the Condensed Consolidated Statements of (Loss) Earnings. In all situations in which cash flow hedge accounting is discontinued and the derivative instrument remains outstanding, the company carries the derivative instrument at its fair value on the Condensed Consolidated Balance Sheets, recognizing future changes in the fair value within other income, net in the Condensed Consolidated Statements of (Loss) Earnings. As of August 4, 2023, the notional amount outstanding of forward currency contracts designated as cash flow hedging instruments was $306.9 million. Derivatives Not Designated as Cash Flow Hedging Instruments The company also enters into foreign currency contracts that include forward currency contracts to mitigate the remeasurement of specific assets and liabilities on the Condensed Consolidated Balance Sheets. These contracts are not designated as cash flow hedging instruments. Accordingly, changes in the fair value of hedges of recorded balance sheet positions, such as cash, receivables, payables, intercompany notes, and other various contractual claims to pay or receive foreign currencies other than the functional currency, are recognized immediately in other income, net, on the Condensed Consolidated Statements of (Loss) Earnings together with the transaction gain or loss from the hedged balance sheet position.
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Fair Value Measurements | The company categorizes its assets and liabilities into one of three levels based on the assumptions (inputs) used in valuing the asset or liability. Estimates of fair value for financial assets and financial liabilities are based on the framework established in the accounting guidance for fair value measurements. The framework defines fair value, provides guidance for measuring fair value, and requires certain disclosures. The framework discusses valuation techniques such as the market approach (comparable market prices), the income approach (present value of future income or cash flows), and the cost approach (cost to replace the service capacity of an asset or replacement cost). The framework utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. Level 1 provides the most reliable measure of fair value, while Level 3 generally requires significant management judgment. The three levels are defined as follows: Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2: Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Unobservable inputs reflecting management’s assumptions about the inputs used in pricing the asset or liability. Recurring Fair Value Measurements The company's derivative instruments consist of forward currency contracts that are measured at fair value on a recurring basis. The fair value of such forward currency contracts is determined based on observable market transactions of forward currency prices and spot currency rates as of the reporting date. Nonrecurring Fair Value Measurements The company measures certain assets and liabilities at fair value on a non-recurring basis. Assets and liabilities that are measured at fair value on a nonrecurring basis include long-lived assets, goodwill, and indefinite-lived intangible assets, which would generally be recorded at fair value as a result of an impairment charge. For additional information regarding impairment related fair value measurements, refer to Note 5, Goodwill and Other Intangible Assets, Net. Assets acquired and liabilities assumed as part of a business combination are also measured at fair value on a non-recurring basis during the measurement period allowed by the accounting standards codification guidance for business combinations when applicable. Alternatively, under a cost accumulation model, the company measures the fair values of net assets acquired as part of an asset acquisition before allocating the cost of the asset acquisition to the net assets acquired on the basis of their relative fair values. For additional information on the company's business combination and the related non-recurring fair value measurement of the assets acquired and liabilities assumed, refer to Note 2, Business Combinations. Other Fair Value DisclosuresThe carrying values of the company's short-term financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, and short-term debt, including current maturities of long-term debt, when applicable, approximate their fair values due to their short-term nature.
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Business Combinations (Tables) |
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Summary of Allocation of Preliminary Purchase Price Assigned to Intimidator Group | The following table summarizes the allocation of the purchase price to the fair values assigned to the assets acquired and liabilities assumed. These fair values are based on internal company and independent external third-party valuations:
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Segment Data (Tables) |
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Aug. 04, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summarized Financial Information Concerning Reportable Segments | The following tables present summarized financial information concerning the company’s reportable business segments and Other activities (dollars in thousands):
1 The Professional reportable segment earnings (loss) before income taxes includes $151.3 million of non-cash impairment charges recorded during the preparation of the financial statements for the third quarter of fiscal 2023 related to the Intimidator operating segment. For additional information regarding the impairment charges, refer to Note 5, Goodwill and Other Intangible Assets, Net.
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Summary of Components of Loss Before Income Taxes Included in Other Segment | The following table presents the details of operating loss before income taxes for the company's Other activities:
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Revenue (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Aug. 04, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | The following tables disaggregate the company's reportable segment net sales by major product type and geographic market (dollars in thousands):
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Goodwill and Other Intangible Assets, Net (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Aug. 04, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | The changes in the carrying amount of goodwill by reportable segment for the first nine months of fiscal 2023 were as follows:
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Schedule of Finite-Lived Intangible Assets | The components of other intangible assets, net as of August 4, 2023, July 29, 2022, and October 31, 2022 were as follows (dollars in thousands):
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Schedule of Indefinite-Lived Intangible Assets | The components of other intangible assets, net as of August 4, 2023, July 29, 2022, and October 31, 2022 were as follows (dollars in thousands):
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Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | estimated amortization expense for the remainder of fiscal 2023 and succeeding fiscal years is as follows:
|
Indebtedness (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Aug. 04, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Debt | The following is a summary of the company's indebtedness:
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Schedule of Principal Payments | As of August 4, 2023, principal payments required on the company's outstanding indebtedness, based on the maturity dates defined within the company's debt arrangements, for the remainder of fiscal 2023 and succeeding fiscal years are as follows:
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Inventories, Net (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Aug. 04, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory | Inventories, net were as follows:
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Property, Plant, and Equipment, Net (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Aug. 04, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Property, Plant and Equipment | Property, plant, and equipment, net was as follows:
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Product Warranty Guarantees (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Aug. 04, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product Warranties Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Changes in Accrued Warranties | The changes in accrued warranties were as follows:
(1) Presentation of prior period changes in accrued warranties has been conformed to the current year presentation. There was no impact to the balance of accrued warranties in any period.
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Stock-Based Compensation (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Aug. 04, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Compensation Cost Related to Stock-Based Awards | Compensation costs related to stock-based compensation awards were as follows:
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Schedule of Assumptions for Options Granted | The table below illustrates the weighted-average valuation assumptions used under the Black-Scholes valuation method for options granted in the first nine months of the following fiscal periods:
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Stockholders' Equity (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Aug. 04, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Accumulated Other Comprehensive Loss (AOCL), Net of Tax | The components of accumulated other comprehensive loss ("AOCL"), net of tax, within the Condensed Consolidated Statements of Stockholders' Equity were as follows:
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Schedule of Components and Activity of AOCL | The components and activity of AOCL, net of tax, for the three and nine month periods ended August 4, 2023 and July 29, 2022 were as follows:
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Per Share Data (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Aug. 04, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliations of Basic and Diluted Weighted-Average Shares of Common Stock Outstanding | Reconciliations of basic and diluted weighted-average number of shares of common stock outstanding were as follows:
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Leases (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Aug. 04, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow and Other Lease Information | The following table presents the lease expense incurred on the company’s operating, short-term, and variable leases:
The following table presents supplemental cash flow information related to the company's operating leases:
The following table presents other lease information related to the company's operating leases:
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Future Minimum Operating Lease Payments | The following table reconciles the total undiscounted future cash flows based on the anticipated future minimum operating lease payments by fiscal year for the company's operating leases to the present value of operating lease liabilities recorded within the Condensed Consolidated Balance Sheets as of August 4, 2023:
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Derivative Instruments and Hedging Activities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Aug. 04, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value of Derivatives and Consolidated Balance Sheet Location | The following table presents the fair value and location of the company’s derivative instruments on the Condensed Consolidated Balance Sheets:
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Schedule of Effects of Master Netting Arrangements on Fair Value of Derivative Contracts Recorded in Consolidated Balance Sheets | The following table presents the effects of the master netting arrangements on the fair value of the company’s derivative instruments that are recorded on the Condensed Consolidated Balance Sheets:
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Schedule of Impact of Derivative Instruments on Consolidated Statements of Earnings for Derivatives Designated as Cash Flow Hedging Instruments | The following table presents the impact and location of the amounts reclassified from AOCL into net earnings on the Condensed Consolidated Statements of (Loss) Earnings and the impact of derivative instruments on the Condensed Consolidated Statements of Comprehensive (Loss) Income for the company's derivatives designated as cash flow hedging instruments for the three and nine months ended August 4, 2023 and July 29, 2022:
The following tables present the impact and location of derivative instruments on the Condensed Consolidated Statements of (Loss) Earnings for the company’s derivatives designated as cash flow hedging instruments and the related components excluded from effectiveness testing:
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Schedule of Impact of Derivative Instruments on Consolidated Statements of Earnings for Derivatives Not Designated as Hedging Instruments | The following table presents the impact and location of derivative instruments on the Condensed Consolidated Statements of (Loss) Earnings for the company’s derivatives not designated as cash flow hedging instruments:
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Fair Value Measurements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present, by level within the fair value hierarchy, the company's financial assets and liabilities that are measured at fair value on a recurring basis as of August 4, 2023, July 29, 2022, and October 31, 2022, according to the valuation technique utilized to determine their fair values (dollars in thousands):
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Segment Data - Narrative (Details) |
9 Months Ended |
---|---|
Aug. 04, 2023
segment
| |
Segment Reporting [Abstract] | |
Operating segments | 12 |
Reportable segments | 2 |
Segment Data - Components of Loss before Income Taxes Included in Other (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Aug. 04, 2023 |
Jul. 29, 2022 |
Aug. 04, 2023 |
Jul. 29, 2022 |
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Components of the loss before income taxes included in "Other" | ||||
Interest expense | $ (14,987) | $ (9,182) | $ (43,822) | $ (24,219) |
Earnings from the company's wholly-owned domestic distribution company and other income, net | 5,496 | 3,225 | 21,241 | 8,262 |
(Loss) earnings before income taxes | (28,563) | 157,091 | 313,570 | 409,294 |
Other Activities | ||||
Components of the loss before income taxes included in "Other" | ||||
Corporate expenses | (33,999) | (30,816) | (110,694) | (94,359) |
Interest expense | (14,987) | (9,182) | (43,822) | (24,219) |
Earnings from the company's wholly-owned domestic distribution company and other income, net | 3,526 | 4,550 | 19,054 | 7,836 |
(Loss) earnings before income taxes | $ (45,460) | $ (35,448) | $ (135,462) | $ (110,742) |
Revenue - Contract Liabilities (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Aug. 04, 2023 |
Aug. 04, 2023 |
Oct. 31, 2022 |
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Revenue from Contract with Customer [Abstract] | |||
Contract with customer, liability | $ 25.0 | $ 25.0 | $ 28.0 |
Contract with customer liability revenue recognized | $ 3.5 | $ 12.4 |
Goodwill and Other Intangible Assets, Net - Narrative (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Aug. 04, 2023
USD ($)
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Jul. 29, 2022
USD ($)
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Aug. 04, 2023
USD ($)
segment
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Jul. 29, 2022
USD ($)
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Oct. 31, 2022
USD ($)
|
|
Goodwill [Line Items] | |||||
Operating segments | segment | 12 | ||||
Impairment of goodwill | $ 133,263 | ||||
Indefinite-lived - trade names | $ 271,571 | $ 289,472 | 271,571 | $ 289,472 | $ 289,352 |
Goodwill | 451,264 | 583,803 | 451,264 | 583,803 | $ 583,297 |
Income tax benefit | 36,700 | 36,700 | |||
Amortization of other intangible assets | 8,900 | $ 9,100 | 26,800 | $ 24,800 | |
Trade Name, Spartan | |||||
Goodwill [Line Items] | |||||
Indefinite-lived - trade names | 81,100 | 81,100 | |||
Intimidator Reporting Unit | |||||
Goodwill [Line Items] | |||||
Goodwill | 30,500 | $ 30,500 | |||
Professional | |||||
Goodwill [Line Items] | |||||
Impairment of indefinite-lived intangible assets | 18,000 | ||||
Professional | Intimidator Reporting Unit | |||||
Goodwill [Line Items] | |||||
Impairment of goodwill | $ 133,300 |
Goodwill and Other Intangible Assets, Net - Components of Other Intangible Assets (Details) - USD ($) $ in Thousands |
Aug. 04, 2023 |
Oct. 31, 2022 |
Jul. 29, 2022 |
---|---|---|---|
Other Intangible Assets | |||
Weighted-Average Useful Life in Years | 13 years 2 months 12 days | 13 years 4 months 24 days | 13 years 4 months 24 days |
Gross Carrying Amount | $ 472,713 | $ 464,332 | $ 464,684 |
Accumulated Amortization | (195,094) | (167,852) | (159,015) |
Net | 277,619 | 296,480 | 305,669 |
Indefinite-lived - trade names | 271,571 | 289,352 | 289,472 |
Total other intangible assets, gross | 744,284 | 753,684 | 754,156 |
Total other intangible assets, net | $ 549,190 | $ 585,832 | $ 595,141 |
Patents | |||
Other Intangible Assets | |||
Weighted-Average Useful Life in Years | 9 years 10 months 24 days | 9 years 10 months 24 days | 9 years 10 months 24 days |
Gross Carrying Amount | $ 18,218 | $ 18,210 | $ 18,252 |
Accumulated Amortization | (15,864) | (15,317) | (15,178) |
Net | $ 2,354 | $ 2,893 | $ 3,074 |
Non-compete agreements | |||
Other Intangible Assets | |||
Weighted-Average Useful Life in Years | 5 years 6 months | 5 years 6 months | 5 years 6 months |
Gross Carrying Amount | $ 6,858 | $ 6,851 | $ 6,887 |
Accumulated Amortization | (6,851) | (6,829) | (6,861) |
Net | $ 7 | $ 22 | $ 26 |
Customer-related | |||
Other Intangible Assets | |||
Weighted-Average Useful Life in Years | 15 years 8 months 12 days | 16 years | 16 years |
Gross Carrying Amount | $ 329,059 | $ 320,959 | $ 321,113 |
Accumulated Amortization | (101,952) | (83,805) | (78,017) |
Net | $ 227,107 | $ 237,154 | $ 243,096 |
Developed technology | |||
Other Intangible Assets | |||
Weighted-Average Useful Life in Years | 7 years 1 month 6 days | 7 years 1 month 6 days | 7 years 1 month 6 days |
Gross Carrying Amount | $ 102,108 | $ 101,915 | $ 102,013 |
Accumulated Amortization | (60,776) | (53,001) | (50,412) |
Net | $ 41,332 | $ 48,914 | $ 51,601 |
Trade names | |||
Other Intangible Assets | |||
Weighted-Average Useful Life in Years | 13 years 8 months 12 days | 13 years 9 months 18 days | 13 years 8 months 12 days |
Gross Carrying Amount | $ 10,740 | $ 10,667 | $ 10,689 |
Accumulated Amortization | (3,921) | (3,395) | (3,267) |
Net | $ 6,819 | $ 7,272 | $ 7,422 |
Backlog and other | |||
Other Intangible Assets | |||
Weighted-Average Useful Life in Years | 7 months 6 days | 7 months 6 days | 7 months 6 days |
Gross Carrying Amount | $ 5,730 | $ 5,730 | $ 5,730 |
Accumulated Amortization | (5,730) | (5,505) | (5,280) |
Net | $ 0 | $ 225 | $ 450 |
Goodwill and Other Intangible Assets, Net - Future Amortization Expense (Details) - USD ($) $ in Thousands |
Aug. 04, 2023 |
Oct. 31, 2022 |
Jul. 29, 2022 |
---|---|---|---|
Estimated amortization expense | |||
2023 (remaining) | $ 8,905 | ||
2024 | 34,568 | ||
2025 | 31,715 | ||
2026 | 30,534 | ||
2027 | 25,601 | ||
2028 | 22,305 | ||
Thereafter | 123,991 | ||
Net | $ 277,619 | $ 296,480 | $ 305,669 |
Indebtedness - Schedule of Principal Payments (Details) $ in Thousands |
Aug. 04, 2023
USD ($)
|
---|---|
Debt Disclosure [Abstract] | |
2023 (remaining) | $ 0 |
2024 | 0 |
2025 | 37,000 |
2026 | 333,000 |
2027 | 270,000 |
2028 | 0 |
Thereafter | 425,000 |
Total principal payments required | $ 1,065,000 |
Inventories, Net (Details) - USD ($) $ in Thousands |
Aug. 04, 2023 |
Oct. 31, 2022 |
Jul. 29, 2022 |
---|---|---|---|
Inventory Disclosure [Abstract] | |||
Raw materials and work in process | $ 435,070 | $ 482,884 | $ 402,719 |
Finished goods and service parts | 847,494 | 738,097 | 672,042 |
Total FIFO and average cost value | 1,282,564 | 1,220,981 | 1,074,761 |
Less: adjustment to LIFO value | 169,872 | 169,872 | 135,487 |
Total inventories, net | $ 1,112,692 | $ 1,051,109 | $ 939,274 |
Product Warranty Guarantees (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Aug. 04, 2023 |
Jul. 29, 2022 |
Aug. 04, 2023 |
Jul. 29, 2022 |
|
Warranty provisions, claims, and changes in estimates | ||||
Beginning balance | $ 153,947 | $ 126,830 | $ 134,541 | $ 116,783 |
Changes in accrual related to warranties during the period | 20,521 | 20,873 | 69,956 | 59,757 |
Acquisitions | 0 | 2,466 | 0 | 5,663 |
Payments made during the period | (24,099) | (20,580) | (60,842) | (52,143) |
Changes in accrual related to pre-existing warranties (1) | 962 | 1,429 | 7,676 | 958 |
Ending balance | $ 151,331 | $ 131,018 | $ 151,331 | $ 131,018 |
Investment in Joint Venture (Details) - Red Iron Acceptance, LLC - USD ($) |
Aug. 04, 2023 |
Oct. 31, 2022 |
Jul. 29, 2022 |
---|---|---|---|
Schedule of Equity Method Investments | |||
Portion owned by Toro | 45.00% | ||
Portion owned by TCFIF | 55.00% | ||
Maximum borrowing capacity under credit facility | $ 800,000,000 | ||
Investment in joint venture | $ 48,500,000 | $ 39,300,000 | $ 31,400,000 |
Stock-Based Compensation - Assumptions for Options Granted (Details) - $ / shares |
9 Months Ended | |
---|---|---|
Aug. 04, 2023 |
Jul. 29, 2022 |
|
Stock-Based Compensation | ||
Per share weighted-average fair value at date of grant (in dollars per share) | $ 33.21 | $ 22.55 |
Stock option awards | ||
Stock-Based Compensation | ||
Expected life of option in years | 6 years 3 months 21 days | 6 years 2 months 8 days |
Expected stock price volatility | 25.20% | 23.74% |
Risk-free interest rate | 3.79% | 1.31% |
Expected dividend yield | 0.95% | 0.94% |
Stockholders' Equity - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands |
Aug. 04, 2023 |
Oct. 31, 2022 |
Jul. 29, 2022 |
---|---|---|---|
Accumulated other comprehensive loss (AOCL) | |||
Foreign currency translation adjustments | $ 34,347 | $ 51,321 | $ 40,725 |
Pension benefits | 3,621 | 3,621 | 3,899 |
Cash flow derivative instruments | (7,376) | (21,817) | (13,481) |
Total accumulated other comprehensive loss | $ 30,592 | $ 33,125 | $ 31,143 |
Per Share Data (Details) - shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Aug. 04, 2023 |
Jul. 29, 2022 |
Aug. 04, 2023 |
Jul. 29, 2022 |
|
Basic | ||||
Weighted-average number of shares of common stock (in shares) | 104,286,000 | 104,827,000 | 104,473,000 | 104,924,000 |
Assumed issuance of contingent shares (in shares) | 0 | 0 | 6,000 | 7,000 |
Weighted-average number of shares of common stock outstanding — Basic (in shares) | 104,286,000 | 104,827,000 | 104,479,000 | 104,931,000 |
Diluted | ||||
Weighted-average number of shares of common stock outstanding — Basic (in shares) | 104,286,000 | 104,827,000 | 104,479,000 | 104,931,000 |
Effect of dilutive shares (in shares) | 0 | 621,000 | 930,000 | 823,000 |
Weighted-average number of shares of common stock outstanding — Diluted (in shares) | 104,286,000 | 105,448,000 | 105,409,000 | 105,754,000 |
Options, restricted stock, and restricted stock units, excluded from the diluted earnings per share (in shares) | 1,410,092 | 1,066,621 | 483,650 | 896,184 |
Commitments and Contingencies (Details) - USD ($) $ in Millions |
9 Months Ended | ||
---|---|---|---|
Aug. 04, 2023 |
Jul. 29, 2022 |
Oct. 31, 2022 |
|
Loss Contingencies [Line Items] | |||
Net amount of new receivables financed for dealers and distributors | $ 2,160.8 | $ 1,886.1 | |
Net amount outstanding of receivables financed for dealers and distributors | 1,010.5 | 690.7 | $ 776.1 |
Related Party | |||
Loss Contingencies [Line Items] | |||
Accounts receivable, current | 30.4 | 14.4 | 17.7 |
Red Iron And TCFCFC | |||
Loss Contingencies [Line Items] | |||
Repurchase commitment, maximum amount | 7.5 | ||
Wholesale Financing | |||
Loss Contingencies [Line Items] | |||
Receivables purchased by third party financing company from the company | 367.6 | 458.9 | |
Receivables financed by third party financing company, excluding Red Iron, outstanding | 187.2 | 205.1 | 220.0 |
Maximum amount of contingent liability to repurchase inventory related receivables under limited inventory repurchase agreements | $ 118.8 | $ 79.9 | $ 80.0 |
Leases - Lease Expense Incurred (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Aug. 04, 2023 |
Jul. 29, 2022 |
Aug. 04, 2023 |
Jul. 29, 2022 |
|
Leases [Abstract] | ||||
Operating lease expense | $ 6,117 | $ 3,833 | $ 19,047 | $ 16,304 |
Short-term lease expense | 1,543 | 303 | 3,455 | 3,445 |
Variable lease expense | 50 | 12 | 132 | 12 |
Total lease expense | $ 7,710 | $ 4,148 | $ 22,634 | $ 19,761 |
Leases - Supplemental Cash Flow and Other Lease Information (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Aug. 04, 2023 |
Jul. 29, 2022 |
|
Leases [Abstract] | ||
Operating cash flows for amounts included in the measurement of lease liabilities | $ 16,477 | $ 14,129 |
Right-of-use assets obtained in exchange for lease obligations | $ 54,065 | $ 18,236 |
Leases - Summary of Other Lease Information (Details) |
Aug. 04, 2023 |
Oct. 31, 2022 |
Jul. 29, 2022 |
---|---|---|---|
Leases [Abstract] | |||
Weighted-average remaining lease term of operating leases in years | 9 years 2 months 12 days | 6 years | 6 years 2 months 12 days |
Weighted-average discount rate of operating leases | 4.12% | 3.53% | 2.99% |
Leases - Schedule of Future Minimum Operating Lease Payments (Details) $ in Thousands |
Aug. 04, 2023
USD ($)
|
---|---|
ASC Topic 842 Leases | |
2023 (remaining) | $ 4,112 |
2024 | 23,287 |
2025 | 21,269 |
2026 | 15,574 |
2027 | 12,078 |
Thereafter | 68,393 |
Total future minimum operating lease payments | 144,713 |
Less: imputed interest | 25,664 |
Present value of operating lease liabilities | $ 119,049 |
Derivative Instruments and Hedging Activities - Narrative (Details) $ in Millions |
9 Months Ended |
---|---|
Aug. 04, 2023
USD ($)
| |
Derivative Instruments, Gain (Loss) [Line Items] | |
Maximum length of time hedged in cash flow hedge | 2 years |
Cash flow hedge effectiveness measurement period | 2 months |
Gains to be reclassified from AOCL to earnings | $ 6.8 |
Forward currency contracts | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Derivative, notional amount | $ 306.9 |
Derivative Instruments and Hedging Activities - Effects of Master Netting Arrangements (Details) - USD ($) $ in Thousands |
Aug. 04, 2023 |
Oct. 31, 2022 |
Jul. 29, 2022 |
---|---|---|---|
Derivative assets: | |||
Net amount of derivative assets | $ 13,763 | $ 33,256 | $ 22,341 |
Derivative liabilities: | |||
Net amount of derivative liabilities | 90 | 0 | 18 |
Forward currency contracts | |||
Derivative assets: | |||
Gross amount of derivative assets | 14,931 | 33,256 | 22,424 |
Derivative liabilities offsetting derivative assets | 1,168 | 0 | 83 |
Net amount of derivative assets | 13,763 | 33,256 | 22,341 |
Derivative liabilities: | |||
Gross amount of derivative liabilities | 95 | 0 | 18 |
Derivative assets offsetting derivative liabilities | 5 | 0 | 0 |
Net amount of derivative liabilities | $ 90 | $ 0 | $ 18 |
Derivative Instruments and Hedging Activities - Impact and Location of Amounts Reclassified from AOCL and Impacts and Location on OCI (Details) - Cash flow hedging - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Aug. 04, 2023 |
Jul. 29, 2022 |
Aug. 04, 2023 |
Jul. 29, 2022 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain Reclassified from AOCL into Earnings | $ 3,180 | $ 1,840 | $ 12,759 | $ 1,595 |
(Loss) Gain Recognized in OCI on Derivatives | 606 | 2,472 | (14,441) | 16,043 |
Forward currency contracts | Net Sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain Reclassified from AOCL into Earnings | 1,962 | 1,640 | 9,723 | 1,431 |
(Loss) Gain Recognized in OCI on Derivatives | (846) | 2,508 | (18,099) | 14,836 |
Forward currency contracts | Cost of Sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain Reclassified from AOCL into Earnings | 1,218 | 200 | 3,036 | 164 |
(Loss) Gain Recognized in OCI on Derivatives | $ 1,452 | $ (36) | $ 3,658 | $ 1,207 |
Derivative Instruments and Hedging Activities - Impact and Location of Derivatives Not Designated As Cash Flow Hedging Instruments (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Aug. 04, 2023 |
Jul. 29, 2022 |
Aug. 04, 2023 |
Jul. 29, 2022 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Earnings from the company's wholly-owned domestic distribution company and other income, net | Earnings from the company's wholly-owned domestic distribution company and other income, net | Earnings from the company's wholly-owned domestic distribution company and other income, net | Earnings from the company's wholly-owned domestic distribution company and other income, net |
Derivatives not designated as cash flow hedging instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gain (loss) on derivatives not designated as cash flow hedging instruments | $ (2,730) | $ (344) | $ (4,530) | $ 3,639 |
Forward currency contracts | Derivatives not designated as cash flow hedging instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gain (loss) on derivatives not designated as cash flow hedging instruments | $ (2,730) | $ (344) | $ (4,530) | $ 3,639 |
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions |
Aug. 04, 2023 |
Oct. 31, 2022 |
Jul. 29, 2022 |
---|---|---|---|
Assets and liabilities measured at fair value disclosures | |||
Long-term debt, percentage bearing fixed interest, amount | $ 524.1 | $ 524.1 | $ 524.1 |
Level 2 | |||
Assets and liabilities measured at fair value disclosures | |||
Long-term debt, fair value | $ 497.7 | $ 489.8 | $ 541.0 |
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