Business Segments and Major Customer Information

12 Months Ended

Jan. 31, 2017

Segment Reporting [Abstract]

Business Segments and Major Customer Information

NOTE 15 BUSINESS SEGMENTS AND MAJOR CUSTOMER INFORMATION

The Company's operating segments, which are also its reportable segments, are defined by their product lines which have been generally grouped based on technology, manufacturing processes, and end-use application. The Company's reportable segments are Applied Technology Division, Engineered Films Division, and Aerostar Division. Raven Canada, SBG, Raven GmbH, Raven Australia, and Raven Brazil are included in the Applied Technology Division. Vista and AIS are included in the Aerostar Division. Separate financial information is available and regularly evaluated by the Company's chief operating decision-maker, the President and Chief Executive Officer, in making resource allocation decisions for the Company's reportable segments. Segment information is reported consistent with the Company's management reporting structure.

Applied Technology designs, manufactures, sells, and services innovative precision agriculture products and information management tools that help growers reduce costs, save time, and improve farm yields around the world.  Their product families include field computers, application controls, GPS-guidance and assisted-steering systems, automatic boom controls, injection systems, yield monitoring controls, planter and seeder controls, and an integrated real-time kinematic (RTK) and information platform called Slingshot™. Applied Technology services include high-speed, in-field internet connectivity and cloud-based data management.

The Company's Engineered Films Division manufactures high-performance plastic films and sheeting for major markets throughout the United States and abroad. An important part of this business is highly technical, engineered geomembrane films that protect environmental resources through containment linings and coverings for energy, agriculture, construction, and industrial markets.

Aerostar designs and manufactures proprietary products including high-altitude balloons, tethered aerostats, and radar processing systems. These products can be integrated with additional third-party sensors to provide research, communications, and situational awareness to government and commercial customers. Aerostar's product lines such as manufacturing military parachutes and electronics manufacturing services were phased out during fiscal 2016 as the Company focused its growth strategy on its proprietary products and largely completed its exit of contract manufacturing operations.

Through Vista and AIS, Aerostar pursues potential product and support services contracts for agencies and instrumentalities of the U.S. government and to foreign governments as Direct Commercial Sales and Foreign Military Sales through the U.S. Government. Vista positions the Company to meet the global demand for lower-cost detection and tracking systems used by government agencies.

The Company measures the performance of its segments based on their operating income excluding administrative and general expenses. The accounting policies of the operating segments are the same as those described in Note 1 Summary of Significant Accounting Policies. Other income, interest expense, and income taxes are not allocated to individual operating segments, and assets not identifiable to an individual segment are included as corporate assets.

Business segment information is as follows:
	For the years ended January 31,
	2017			2016			2015
APPLIED TECHNOLOGY DIVISION
Sales	$	105,217		$	92,599		$	142,154
Operating income(a)(e)	26,643			18,319			34,557
Assets(b)	67,911			65,490			88,764
Capital expenditures	1,017			664			3,478
Depreciation and amortization	3,828			4,428			5,569
ENGINEERED FILMS DIVISION
Sales	$	138,855		$	129,465		$	166,634
Operating income(e)	22,966			17,892			21,802
Assets(b)	133,309			134,942			140,023
Capital expenditures	2,768			10,780			8,241
Depreciation and amortization	8,580			7,735			6,096
AEROSTAR DIVISION
Sales	$	34,113		$	36,368		$	80,772
Operating income(c)(e)	(1,560		)	(14,801		)	8,983
Assets(b)	23,515			32,689			59,274
Capital expenditures	547			941			2,799
Depreciation and amortization	1,720			3,297			3,474
INTERSEGMENT ELIMINATIONS
Sales
Applied Technology Division	$	(1	)	$	(8	)	$	(231	)
Engineered Films Division	(789		)	(195		)	(652		)
Aerostar Division	—			—			(10,524		)
Operating income(e)	(12		)	91			163
Assets	(69		)	(57		)	(148		)
REPORTABLE SEGMENTS TOTAL
Sales	$	277,395		$	258,229		$	378,153
Operating income(e)	48,037			21,501			65,505
Assets	224,666			233,064			287,913
Capital expenditures	4,332			12,385			14,518
Depreciation and amortization	14,128			15,460			15,139
CORPORATE & OTHER
Operating (loss) from administrative expenses(f)	$	(19,624	)	$	(17,110	)	$	(21,704	)
Assets(b)(d)	76,843			65,624			74,960
Capital expenditures	464			661			2,523
Depreciation and amortization	1,308			1,676			2,230
TOTAL COMPANY
Sales	$	277,395		$	258,229		$	378,153
Operating income	28,413			4,391			43,801
Assets	301,509			298,688			362,873
Capital expenditures	4,796			13,046			17,041
Depreciation and amortization	15,436			17,136			17,369

^(a) The fiscal year ended January 31, 2016includes gains of $611 on disposal of assets related to the exit of contract manufacturing operations.

^(b) Certain facilities owned by the Company are shared by more than one reporting segment. Beginning with fiscal year 2016 all facilities are reported as an asset based on the segment that acquired the asset as we believe this better reflects total assets of the business segment. In prior fiscal years (which have not been recast in this table), the book value of certain shared facilities was allocated across reporting segments based on usage. Expenses and costs related to these facilities including depreciation expense, are allocated and reported in each reporting segment's operating income for each fiscal year presented.

^(c) The fiscal year 2017 includes inventory write-downs of $2,278 for Vista as a result of discontinuing sales activities for a specific radar product line within its business. The fiscal year ended January 31, 2016 includes pre-contract cost write-offs of $2,933, a goodwill impairment loss of $11,497, a long-lived asset impairment loss of $3,826, and a $2,273 reduction of an acquisition-related contingent liability for Vista as a result of lower financial expectations for net sales and operating income.

^(d) Assets are principally cash, investments, deferred taxes, and other receivables.

^(e) At the segment level, operating income does not include an allocation of general and administrative expenses.

^(f) At the segment level, operating income does not include an allocation of general and administrative expenses and, as a result, general and administrative expenses are reported as "Operating (loss) from administrative expenses" in Corporate & Other.

No customers accounted for 10% or more of consolidated sales in fiscal 2017 or 2016. Sales to a customer of the Engineered Films segment accounted for 14% of consolidated sales in fiscal 2015 and accounted for 5% of consolidated accounts receivable at January 31, 2015.

Substantially all of the Company's long-lived assets are located in the United States. Foreign sales are attributed to countries based on location of the customer. Net sales to customers outside the United States were as follows:

	For the years ended January 31,
	2017		2016		2015
Canada	$	13,969	$	11,789	$	14,432
Europe	13,924		10,526		8,243
Latin America	3,402		2,676		9,921
Other foreign sales	4,233		2,858		4,239
Total foreign sales	35,528		27,849		36,835
United States	241,867		230,380		341,318
	$	277,395	$	258,229	$	378,153