Business Segments and Major Customer Information

12 Months Ended

Jan. 31, 2018

Segment Reporting [Abstract]

Business Segments and Major Customer Information

NOTE 16 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. Separate financial information is available for each reportable segment 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. Engineered Films expanded its business model in the fiscal 2018 third quarter by adding new design-build and installation service solutions to its geomembrane market with the asset purchase of Colorado Lining International, Inc.

Aerostar designs and manufactures proprietary products including high-altitude balloons, tethered aerostats, and radar 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 financial performance and other information is as follows:
	For the years ended January 31,
	2018			2017			2016
APPLIED TECHNOLOGY DIVISION
Sales	$	124,688		$	105,217		$	92,599
Operating income(a)(f)	31,257			26,643			18,319
Assets(b)	66,555			67,911			65,490
Capital expenditures	1,489			1,017			664
Depreciation and amortization	3,365			3,828			4,428
ENGINEERED FILMS DIVISION
Sales(c)	$	213,298		$	138,855		$	129,465
Operating income(f)	47,324			22,966			17,892
Assets(b)	168,797			133,309			134,942
Capital expenditures	8,128			2,768			10,780
Depreciation and amortization	8,761			8,580			7,735
AEROSTAR DIVISION
Sales	$	39,915		$	34,113		$	36,368
Operating income (loss)(d)(f)	4,122			(1,560		)	(14,801		)
Assets(b)	22,127			23,515			32,689
Capital expenditures	343			547			941
Depreciation and amortization	1,386			1,720			3,297
INTERSEGMENT ELIMINATIONS
Sales
Applied Technology Division	$	—		$	(1	)	$	(8	)
Engineered Films Division	(584		)	(789		)	(195		)
Aerostar Division	—			—			—
Operating income(f)	20			(12		)	91
Assets	(3,380		)	(69		)	(57		)
REPORTABLE SEGMENTS TOTAL
Sales	$	377,317		$	277,395		$	258,229
Operating income(f)	82,723			48,037			21,501
Assets	254,099			224,666			233,064
Capital expenditures	9,960			4,332			12,385
Depreciation and amortization	13,512			14,128			15,460
CORPORATE & OTHER
Operating (loss) from administrative expenses(g)	$	(23,553	)	$	(19,624	)	$	(17,110	)
Assets(b)(e)	72,704			76,843			65,624
Capital expenditures	2,051			464			661
Depreciation and amortization	1,290			1,308			1,676
TOTAL COMPANY
Sales	$	377,317		$	277,395		$	258,229
Operating income	59,170			28,413			4,391
Assets	326,803			301,509			298,688
Capital expenditures	12,011			4,796			13,046
Depreciation and amortization	14,802			15,436			17,136

^(a) The fiscal year ended January 31, 2016 includes 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. 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. 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) Fiscal year 2018 sales include $13,088 in net sales related to the CLI asset acquisition further described in Note 6 "Acquisitions of and Investments in Businesses and Technologies", and $24,225 of recovery film sales related to the hurricane recovery effort.

^(d) 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. These items are further described in Note 7 "Goodwill, Long-Lived Assets, and Other Charges ".

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

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

^(g) 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 2018, 2017 or 2016.

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,
	2018		2017		2016
Canada	$	12,940	$	13,969	$	11,789
Europe	13,864		13,924		10,526
Latin America	4,439		3,402		2,676
Asia	4,074		1,535		482
Other foreign sales	6,239		2,698		2,376
Total foreign sales	41,556		35,528		27,849
United States	335,761		241,867		230,380
	$	377,317	$	277,395	$	258,229