10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended October 31, 2019

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to

Commission File Number: 001-07982

RAVEN INDUSTRIES, INC.

(Exact name of registrant as specified in its charter)

SD	46-0246171
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
205 East 6th Street, P.O. Box 5107	Sioux Falls	,	SD	57117-5107

(Address of principal executive offices)

(605) 336-2750

(Registrant’s telephone number including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, $1 par value	RAVN		NASDAQ	Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    þ Yes o No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).        þ Yes o No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☑	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes þ No

As of November 22, 2019, there were 35,760,477 shares of common stock, $1 par value, of Raven Industries, Inc. outstanding. There were no other classes of stock outstanding.

RAVEN INDUSTRIES, INC.

INDEX

	PAGE
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements:
Consolidated Balance Sheets (unaudited)	3
Consolidated Statements of Income and Comprehensive Income (unaudited)	4
Consolidated Statements of Shareholders' Equity (unaudited)	5
Consolidated Statements of Cash Flows (unaudited)	7
Notes to Consolidated Financial Statements (unaudited)	8
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	22
Item 3. Quantitative and Qualitative Disclosures about Market Risks	31
Item 4. Controls and Procedures	31
PART II - OTHER INFORMATION
Item 1. Legal Proceedings	32
Item 1A. Risk Factors	32
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	32
Item 3. Defaults Upon Senior Securities	33
Item 4. Mine Safety Disclosures	33
Item 5. Other Information	33
Item 6. Exhibits	34
Signatures	35

PART I — FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

RAVEN INDUSTRIES, INC.

CONSOLIDATED BALANCE SHEETS

(unaudited)

(dollars and shares in thousands, except per-share data)	October 31, 2019		January 31, 2019
ASSETS
Current assets
Cash and cash equivalents	$	77,094	$	65,787
Accounts receivable, net	62,057		54,472
Inventories	51,981		54,076
Other current assets	5,095		8,736
Total current assets	196,227		183,071
Property, plant and equipment, net	101,487		106,615
Goodwill	50,834		50,942
Amortizable intangible assets, net	14,933		16,293
Other assets	8,795		3,324
TOTAL ASSETS	$	372,276	$	360,245
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable	$	11,045	$	8,272
Accrued liabilities	20,906		23,478
Other current liabilities	2,177		1,303
Total current liabilities	34,128		33,053
Other liabilities	21,969		18,235
Commitments and contingencies (see Note 12)	—		—
Shareholders' equity
Common stock, $1 par value, authorized shares 100,000; issued 67,424 and 67,289, respectively	67,424		67,289
Paid-in capital	60,141		59,655
Retained earnings	303,732		285,969
Accumulated other comprehensive income (loss)	(3,936)		(3,556)
Treasury stock at cost, 31,665 and 31,332 shares, respectively	(111,183)		(100,402)
Total Raven Industries, Inc. shareholders' equity	316,178		308,955
Noncontrolling interest	1		2
Total shareholders' equity	316,179		308,957
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	372,276	$	360,245

The accompanying notes are an integral part of the unaudited consolidated financial statements.

3

RAVEN INDUSTRIES, INC.

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(unaudited)

	Three Months Ended				Nine Months Ended
(dollars in thousands, except per-share data)	October 31, 2019		October 31, 2018		October 31, 2019		October 31, 2018
Net sales	$	100,533	$	104,833	$	296,769	$	318,646
Cost of sales	70,229		72,180		200,061		211,387
Gross profit	30,304		32,653		96,708		107,259
Research and development expenses	7,662		6,478		22,000		17,914
Selling, general, and administrative expenses	11,310		12,563		37,685		37,573
Operating income	11,332		13,612		37,023		51,772
Other income (expense), net	84		674		398		6,214
Income before income taxes	11,416		14,286		37,421		57,986
Income tax expense	1,483		1,230		5,512		9,062
Net income	9,933		13,056		31,909		48,924
Net income (loss) attributable to the noncontrolling interest	(1)		24		(1)		80
Net income attributable to Raven Industries, Inc.	$	9,934	$	13,032	$	31,910	$	48,844
Net income per common share:
─ Basic	$	0.28	$	0.36	$	0.89	$	1.36
─ Diluted	$	0.28	$	0.36	$	0.88	$	1.34
Comprehensive income (loss):
Net income	$	9,933	$	13,056	$	31,909	$	48,924
Other comprehensive income (loss):
Foreign currency translation	(40)		(325)		(343)		(1,162)
Postretirement benefits, net of income tax benefit of $4, $2, $11, and $6 respectively	(12)		(6)		(37)		(18)
Other comprehensive income (loss), net of tax	(52)		(331)		(380)		(1,180)
Comprehensive income (loss)	9,881		12,725		31,529		47,744
Comprehensive income (loss) attributable to noncontrolling interest	(1)		24		(1)		80
Comprehensive income (loss) attributable to Raven Industries, Inc.	$	9,882	$	12,701	$	31,530	$	47,664

The accompanying notes are an integral part of the unaudited consolidated financial statements.

4

RAVEN INDUSTRIES, INC.

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

(unaudited)

	Three Months Ended October 31, 2019
	$1 Par Common Stock		Paid-in Capital		Treasury Stock			Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Raven Industries, Inc. Equity		Non- controlling Interest		Total Equity
(dollars in thousands, except per-share amounts)					Shares	Cost
Balance July 31, 2019	$	67,420	$	59,127	31,496	$	(106,183)	$	298,496	$	(3,884)	$	314,976	$	2	$	314,978
Net income	—		—		—	—		9,934		—		9,934		(1)		9,933
Other comprehensive income (loss):
Cumulative foreign currency translation adjustment	—		—		—	—		—		(40)		(40)		—		(40)
Postretirement benefits reclassified from accumulated other comprehensive income (loss) after tax benefit of $4	—		—		—	—		—		(12)		(12)		—		(12)
Cash dividends ($0.13 per share)	—		50		—	—		(4,698)		—		(4,648)		—		(4,648)
Shares issued on stock options exercised, net of shares withheld for employee taxes	—		15		—	—		—		—		15		—		15
Shares issued on vesting of stock units, net of shares withheld for employee taxes	4		(42)		—	—		—		—		(38)		—		(38)
Shares repurchased	—		—		169	(5,000)		—		—		(5,000)		—		(5,000)
Share-based compensation	—		991		—	—		—		—		991		—		991
Balance October 31, 2019	$	67,424	$	60,141	31,665	$	(111,183)	$	303,732	$	(3,936)	$	316,178	$	1	$	316,179
	Nine Months Ended October 31, 2019
	$1 Par Common Stock		Paid-in Capital		Treasury Stock			Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Raven Industries, Inc. Equity		Non- controlling Interest		Total Equity
(dollars in thousands, except per-share amounts)					Shares	Cost
Balance January 31, 2019	$	67,289	$	59,655	31,332	$	(100,402)	$	285,969	$	(3,556)	$	308,955	$	2	$	308,957
Net income	—		—		—	—		31,910		—		31,910		(1)		31,909
Other comprehensive income (loss):
Cumulative foreign currency translation adjustment	—		—		—	—		—		(343)		(343)		—		(343)
Postretirement benefits reclassified from accumulated other comprehensive income (loss) after tax benefit of $11	—		—		—	—		—		(37)		(37)		—		(37)
Cash dividends ($0.39 per share)	—		146		—	—		(14,147)		—		(14,001)		—		(14,001)
Shares issued on stock options exercised, net of shares withheld for employee taxes	29		(735)		—	—		—		—		(706)		—		(706)
Shares issued on vesting of stock units, net of shares withheld for employee taxes	106		(2,464)		—	—		—		—		(2,358)		—		(2,358)
Shares repurchased	—		—		333	(10,781)		—		—		(10,781)		—		(10,781)
Share-based compensation	—		3,539		—	—		—		—		3,539		—		3,539
Balance October 31, 2019	$	67,424	$	60,141	31,665	$	(111,183)	$	303,732	$	(3,936)	$	316,178	$	1	$	316,179

The accompanying notes are an integral part of the unaudited consolidated financial statements.

5

RAVEN INDUSTRIES, INC.

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

(unaudited)

	Three Months Ended October 31, 2018
	$1 Par Common Stock		Paid-in Capital		Treasury Stock			Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Raven Industries, Inc. Equity		Non- controlling Interest		Total Equity
(dollars in thousands, except per-share amounts)					Shares	Cost
Balance July 31, 2018	$	67,229	$	59,489	31,332	$	(100,402)	$	279,438	$	(3,702)	$	302,052	$	58	$	302,110
Net income	—		—		—	—		13,032		—		13,032		24		13,056
Other comprehensive income (loss):
Cumulative foreign currency translation adjustment	—		—		—	—		—		(325)		(325)		—		(325)
Postretirement benefits reclassified from accumulated other comprehensive income (loss) after tax benefit of $2	—		—		—	—		—		(6)		(6)		—		(6)
Cash dividends ($0.13 per share)	—		51		—	—		(4,725)		—		(4,674)		—		(4,674)
Shares issued on stock options exercised, net of shares withheld for employee taxes	50		(1,434)		—	—		—		—		(1,384)		—		(1,384)
Shares issued on vesting of stock units, net of shares withheld for employee taxes	6		(101)		—	—		—		—		(95)		—		(95)
Share-based compensation	—		827		—	—		—		—		827		—		827
Balance October 31, 2018	$	67,285	$	58,832	31,332	$	(100,402)	$	287,745	$	(4,033)	$	309,427	$	82	$	309,509
	Nine Months Ended October 31, 2018
	$1 Par Common Stock		Paid-in Capital		Treasury Stock			Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Raven Industries, Inc. Equity		Non- controlling Interest		Total Equity
(dollars in thousands, except per-share amounts)					Shares	Cost
Balance January 31, 2018	$	67,124	$	59,143	31,332	$	(100,402)	$	252,772	$	(2,573)	$	276,064	$	2	$	276,066
Net income	—		—		—	—		48,844		—		48,844		80		48,924
Other comprehensive income (loss):
Cumulative foreign currency translation adjustment	—		—		—	—		—		(1,162)		(1,162)		—		(1,162)
Postretirement benefits reclassified from accumulated other comprehensive income (loss) after tax benefit of $6	—		—		—	—		—		(18)		(18)		—		(18)
Reclassification due to ASU 2018-02 adoption	—		—		—	—		280		(280)		—		—		—
Cash dividends ($0.39 per share)	—		151		—	—		(14,151)		—		(14,000)		—		(14,000)
Shares issued on stock options exercised, net of shares withheld for employee taxes	113		(2,748)		—	—		—		—		(2,635)		—		(2,635)
Shares issued on vesting of stock units, net of shares withheld for employee taxes	48		(822)		—	—		—		—		(774)		—		(774)
Share-based compensation	—		3,108		—	—		—		—		3,108		—		3,108
Balance October 31, 2018	$	67,285	$	58,832	31,332	$	(100,402)	$	287,745	$	(4,033)	$	309,427	$	82	$	309,509

The accompanying notes are an integral part of the unaudited consolidated financial statements.

6

RAVEN INDUSTRIES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

	Nine Months Ended
(dollars in thousands)	October 31, 2019		October 31, 2018
OPERATING ACTIVITIES:
Net income	$	31,909	$	48,924
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	12,124		11,273
Change in fair value of acquisition-related contingent consideration	343		585
Gain from sale of equity method investment	—		(5,785)
Deferred income taxes	1,706		869
Share-based compensation expense	3,539		3,108
Other operating activities, net	(229)		(2,327)
Change in operating assets and liabilities:
Accounts receivable	(8,406)		(11,456)
Inventories	1,932		1,932
Other assets	2,592		428
Operating liabilities	1,568		4,757
Net cash provided by operating activities	47,078		52,308
INVESTING ACTIVITIES:
Capital expenditures	(6,143)		(10,421)
Proceeds from sale or maturity of investments	993		7,334
Purchases of investments	(934)		(502)
Proceeds (disbursements) from sale of assets, settlement of liabilities	3,459		832
Other investing activities	(3,208)		(2,042)
Net cash used in investing activities	(5,833)		(4,799)
FINANCING ACTIVITIES:
Dividends paid	(14,001)		(14,000)
Payments for common shares repurchased	(10,781)		—
Payments of acquisition-related contingent liability	(1,308)		(1,220)
Restricted stock unit issuances	(2,358)		(774)
Employee stock option exercises	(706)		(2,635)
Other financing activities	(716)		(151)
Net cash used in financing activities	(29,870)		(18,780)
Effect of exchange rate changes on cash	(68)		(571)
Net increase in cash and cash equivalents	11,307		28,158
Cash and cash equivalents at beginning of year	65,787		40,535
Cash and cash equivalents at end of period	$	77,094	$	68,693

The accompanying notes are an integral part of the unaudited consolidated financial statements.

7

RAVEN INDUSTRIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

(dollars in thousands, except per-share amounts)

(1) BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION

Raven Industries, Inc. ("the Company" or "Raven") is a diversified technology company providing a variety of products to customers within the industrial, agricultural, geomembrane, construction, commercial lighter-than-air and aerospace/defense markets. The Company is comprised of three unique operating units, or divisions, classified into reportable segments: Applied Technology, Engineered Films, and Aerostar.

The accompanying interim unaudited consolidated financial statements, which includes the accounts of Raven and its wholly-owned or controlled subsidiaries, net of intercompany balances and transactions, has been prepared by the Company in accordance with generally accepted accounting principles in the United States (GAAP) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (SEC). Accordingly, these financial statements do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary to fairly present this financial information have been included. These financial statements should be read in conjunction with the audited consolidated financial statements and the accompanying notes included in the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2019.

Financial results for the interim three- and nine-month period ended October 31, 2019, are not necessarily indicative of the results that may be expected for the year ending January 31, 2020. The January 31, 2019, consolidated balance sheet was derived from audited financial statements but does not include all disclosures required in an annual report on Form 10-K. Preparing financial statements in conformity with GAAP requires management to make certain estimates and assumptions. These affect the reported amounts of assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Noncontrolling interests represent capital contributions, income and loss attributable to the owners of less than wholly-owned consolidated entities. The Company owns a 75% interest in an entity consolidated under the Aerostar business segment. Given the Company's controlling financial interest, the accounts of the business venture have been consolidated with the accounts of the Company, and a noncontrolling interest has been recorded for the noncontrolling investor interest in the net assets and operations of the business venture.

(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

There have been no material changes to the Company's significant accounting policies as described in the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2019, other than described in the Accounting Standards Adopted section below.

Accounting Pronouncements

Accounting Standards Adopted

In the fiscal 2020 first quarter, the Company adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2016-02, "Leases (Topic 842)" (ASU 2016-02), issued in February 2016 and the subsequently-issued codification improvements to Topic 842. The primary difference between previous GAAP and ASU 2016-02 is the recognition of lease assets and liabilities by lessees for leases classified as operating leases under previous GAAP. The guidance requires a lessee to recognize a lease liability (to make lease payments) and a right-of-use asset (representing its right to use the underlying asset for the lease term) on the balance sheet with terms greater than 12 months. The Company adopted ASU 2016-02 on a modified retrospective basis for all agreements existing as of February 1, 2019. Prior comparative periods have not been adjusted and continue to be reported and disclosed under ASC Topic 840. This adoption did not have a material impact to the Company. As of February 1, 2019, the Company recognized a right-of-use asset for finance leases and operating leases of $233 and $3,807, respectively and a current and non-current lease liability of $1,446 and $2,571, respectively. As part of the adoption of ASU 2016-02, the Company elected the following practical expedient: short-term recognition exemption for all leases that qualify. Note disclosures required in Topic 842 are reported in Note 11 Leases of the Notes to the Consolidated Financial Statements in this Form 10-Q.

New Accounting Standards Not Yet Adopted

In November 2018, the FASB issued ASU No. 2018-18, "Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606" (ASU 2018-18). The amendments in ASU 2018-18 clarify that certain transactions between

8

(dollars in thousands, except per-share amounts)

participants in collaborative arrangements should be accounted for as revenue under Topic 606, "Revenue from Contracts with Customers," and precludes certain transactions that are not with a customer from using Topic 606. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption of this guidance is permitted in any interim period. The amendments should be applied retrospectively to the date Topic 606 was adopted. The Company is in its final stages of evaluating the impact the adoption of this new guidance will have on the Company's consolidated financial statements.  

In August 2018, the FASB issued ASU No. 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement" (ASU 2018-13). The amendments in ASU 2018-13 remove, modify and add disclosures for companies required to make disclosures about recurring or nonrecurring fair value measurements under Topic 820. The amendments in this update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption of this guidance is permitted. Certain amendments in this guidance are required to be applied prospectively, and others are to be applied retrospectively. The amendments in ASU 2018-13 are disclosure-related only and as such the Company does not expect the adoption of this guidance to have a significant impact on the balances reported in the Company's consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments" (ASU 2016-13). Current GAAP generally delays recognition of the full amount of credit losses until the loss is probable of occurring. The amendments in this guidance eliminate the probable initial recognition threshold and, instead, reflect an entity’s current estimate of all expected credit losses. Previously, when credit losses were measured under GAAP, an entity generally only considered past events and current conditions in measuring the incurred loss. The new standard is effective for annual reporting periods beginning after December 15, 2019. All entities may elect to early adopt ASU 2016-13 for annual reporting periods beginning after December 15, 2018. The adoption of ASU 2016-13 is not expected to have a significant impact on the Company's consolidated financial statements or its note disclosures.

9

(dollars in thousands, except per-share amounts)

(3) SELECTED BALANCE SHEET INFORMATION

Following are the components of selected items from the Consolidated Balance Sheets:

	October 31, 2019		January 31, 2019
Accounts receivable, net:
Trade accounts	$	56,894	$	53,820
Unbilled receivables	6,421		1,391
Allowance for doubtful accounts	(1,258)		(739)
	$	62,057	$	54,472
Inventories:
Finished goods	6,997		7,629
In process	1,268		1,103
Materials	43,716		45,344
	$	51,981	$	54,076
Other current assets:
Insurance policy benefit	73		336
Income tax receivable	1,624		1,045
Receivable from sale of investment	—		1,055
Prepaid expenses and other	3,398		6,300
	$	5,095	$	8,736
Property, plant and equipment, net:(a)
Land	$	3,117	$	3,234
Buildings and improvements	79,719		81,381
Machinery and equipment	156,530		155,463
Financing lease right-of-use assets	879		—
Accumulated depreciation	(138,758)		(133,724)
	101,487		106,354
Property, plant and equipment subject to capital leases:
Machinery and equipment	—		510
Accumulated amortization for capitalized leases	—		(249)
	$	101,487	$	106,615
Other assets:
Equity investments	$	1,200	$	345
Operating lease right-of-use assets	2,782		—
Deferred income taxes	17		16
Other	4,796		2,963
	$	8,795	$	3,324
Accrued liabilities:
Salaries and related	$	4,884	$	8,244
Benefits	5,229		4,751
Insurance obligations	1,976		1,963
Warranties	1,984		890
Income taxes	352		328
Other taxes	1,474		2,434
Acquisition-related contingent consideration	813		1,796
Lease liability	2,065		—
Other	2,129		3,072
	$	20,906	$	23,478
Other liabilities:
Postretirement benefits	$	7,703	$	7,678
Acquisition-related contingent consideration	2,143		2,376
Lease liability	1,776		—
Deferred income taxes	3,357		1,659
Uncertain tax positions	2,701		2,670
Other	4,289		3,852
	$	21,969	$	18,235

^(a) The amount of assets held for sale at October 31, 2019, and January 31, 2019, were not material.

10

(dollars in thousands, except per-share amounts)

(4) NET INCOME PER SHARE

Basic net income per share is computed by dividing net income by the weighted average common shares and fully vested stock units outstanding. Diluted net income per share is computed by dividing net income by the weighted average common and common equivalent shares outstanding, which includes the shares issuable upon exercise of employee stock options (net of shares assumed purchased with the option proceeds), stock units and restricted stock units outstanding. Performance share awards are included in the diluted calculation based upon what would be issued if the end of the most recent reporting period was the end of the term of the award.

Certain outstanding options and restricted stock units were excluded from the diluted net income per share calculations because their effect would have been anti-dilutive under the treasury stock method. The options and restricted stock units excluded from the diluted net income per share calculation were as follows:

	Three Months Ended		Nine Months Ended
	October 31, 2019	October 31, 2018	October 31, 2019	October 31, 2018
Anti-dilutive options and restricted stock units	101,384	—	21,444	50,699

The computation of earnings per share is presented below:

	Three Months Ended				Nine Months Ended
	October 31, 2019		October 31, 2018		October 31, 2019		October 31, 2018
Numerator:
Net income attributable to Raven Industries, Inc.	$	9,934	$	13,032	$	31,910	$	48,844
Denominator:
Weighted average common shares outstanding	35,785,460		35,952,688		35,893,714		35,890,638
Weighted average fully vested stock units outstanding	128,604		104,649		120,691		98,235
Denominator for basic calculation	35,914,064		36,057,337		36,014,405		35,988,873
Weighted average common shares outstanding	35,785,460		35,952,688		35,893,714		35,890,638
Weighted average fully vested stock units outstanding	128,604		104,649		120,691		98,235
Dilutive impact of stock options and restricted stock units	176,850		414,542		236,222		450,429
Denominator for diluted calculation	36,090,914		36,471,879		36,250,627		36,439,302
Net income per share ─ basic	$	0.28	$	0.36	$	0.89	$	1.36
Net income per share ─ diluted	$	0.28	$	0.36	$	0.88	$	1.34

(5) REVENUE

Disaggregation of Revenues

Revenue is disaggregated by major product category and geography, as we believe these categories best depict how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. The following table includes a reconciliation of the disaggregated revenue by reportable segments. Service revenues are not material and are not separately disclosed.

11

(dollars in thousands, except per-share amounts)

	Revenue by Product Category
	Three Months Ended October 31, 2019										Three Months Ended October 31, 2018
	ATD		EFD		AERO		ELIM(a)		Total		ATD		EFD		AERO		ELIM(a)		Total
Lighter-than-Air
Domestic	$	—	$	—	$	11,071	$	—	$	11,071	$	—	$	—	$	14,152	$	—	$	14,152
International	—		—		—		—		—		—		—		298		—		298
Plastic Films & Sheeting
Domestic	—		54,673		—		(33)		54,640		—		52,841		—		(177)		52,664
International	—		1,733		—		—		1,733		—		5,398		—		—		5,398
Precision Agriculture Equipment
Domestic	22,957		—		—		(1)		22,956		23,764		—		—		—		23,764
International	5,543		—		—		—		5,543		5,976		—		—		—		5,976
Other
Domestic	—		—		4,577		—		4,577		—		—		2,578		—		2,578
International	—		—		13		—		13		—		—		3		—		3
Totals	$	28,500	$	56,406	$	15,661	$	(34)	$	100,533	$	29,740	$	58,239	$	17,031	$	(177)	$	104,833
	Nine Months Ended October 31, 2019										Nine Months Ended October 31, 2018
	ATD		EFD		AERO		ELIM(a)		Total		ATD		EFD		AERO		ELIM(a)		Total
Lighter-than-Air
Domestic	$	—	$	—	$	26,230	$	—	$	26,230	$	—	$	—	$	31,899	$	—	$	31,899
International	—		—		49		—		49		—		—		834		—		834
Plastic Films & Sheeting
Domestic	—		151,278		—		(80)		151,198		—		163,059		—		(441)		162,618
International	—		6,936		—		—		6,936		—		14,047		—		—		14,047
Precision Agriculture Equipment
Domestic	72,915		—		—		(1)		72,914		76,881		—		—		—		76,881
International	24,681		—		—		—		24,681		23,651		—		—		—		23,651
Other
Domestic	—		—		14,665		—		14,665		—		—		8,698		—		8,698
International	—		—		96		—		96		—		—		18		—		18
Totals	$	97,596	$	158,214	$	41,040	$	(81)	$	296,769	$	100,532	$	177,106	$	41,449	$	(441)	$	318,646

^(a) Intersegment sales for both fiscal 2020 and 2019 were primarily sales from Engineered Films to Aerostar.

Contract Balances

Contract balances consist of contract assets and contract liabilities. Contract assets primarily relate to the Company’s rights to consideration for work completed but not yet billed for at the reporting date, or retainage provisions on billings that have been issued. Contract liabilities primarily relate to consideration received from customers prior to transferring goods or services to the customer. Contract assets and contract liabilities are reported in "Accounts receivable, net" and "Other current liabilities" in the Consolidated Balance Sheets, respectively. 

12

(dollars in thousands, except per-share amounts)

During the nine months ended October 31, 2019, the Company’s contract assets and liabilities increased by $4,971 and $874, respectively. The increase was primarily a result of the contract terms which include timing of customer payments, timing of invoicing, and progress made on open contracts. Due to the short-term nature of the Company’s contracts, substantially all contract liabilities are recognized as revenue during the twelve months thereafter. Changes in our contract assets and liabilities were as follows:

	October 31, 2019		January 31, 2019		$ Change		% Change
Contract assets	$	6,998	$	2,027	$	4,971	245.2	%
Contract liabilities	$	2,177	$	1,303	$	874	67.1	%

Remaining Performance Obligations

As of October 31, 2019, the Company has no remaining performance obligations related to customer contracts with an original expected duration of one year or more. Revenue recognized from performance obligations satisfied in the prior period during the three- and nine-month period ending October 31, 2019, were not material.

(6) ACQUISITIONS AND DIVESTITURES OF AND INVESTMENTS IN BUSINESSES AND TECHNOLOGIES

Fiscal year 2020

There were no significant business acquisitions and divestitures or purchases of technologies in the three- and nine-month period ended October 31, 2019.

On October 31, 2019, the Company entered into an agreement to acquire a majority ownership of Dot Technology Corp., ("DOT^®"). DOT^® is located in Regina, Saskatchewan, Canada, and designs autonomous agriculture solutions and manufactures a unique U-shaped agriculture platform to autonomously handle a large variety of agriculture implements. The Company has the option to purchase the remaining noncontrolling interest of DOT^® in ten years following the close of the transaction. The Company deposited approximately $3,000 towards the purchase price of DOT^® in the third quarter of fiscal 2020 and the deposit is reported in "Other assets" and "Other investing activities" on the Consolidated Balance Sheet and Consolidated Statements of Cash Flows, respectively. This transaction closed on November 13, 2019.

In addition, subsequent to October 31, 2019, the Company acquired Smart Ag, Inc., ("Smart Ag^®"). Smart Ag^® is a technology company located in Ames, Iowa, that develops autonomous farming solutions for agriculture. This transaction closed on November 1, 2019.

Both acquisitions will align under the Company's Applied Technology Division and will complement the division's suite of precision ag products and solutions. The aggregate purchase price was approximately $62,000 and will primarily be allocated to intangible assets and goodwill. The Company anticipates completing a majority of the purchase accounting for both acquisitions in the fourth quarter of fiscal 2020.

Fiscal year 2019

On January 1, 2019, the Company completed the acquisition of substantially all of the assets ("AgSync Acquisition") of AgSync Inc. ("AgSync"), an Indiana corporation, headquartered in Wakarusa, Indiana. This acquisition is aligned under the Company’s Applied Technology Division and is expected to enhance its Slingshot^® platform by delivering a more seamless logistics solution for ag retailers, aerial applicators, custom applicators and enterprise farms. The AgSync Acquisition constitutes a business and, as such, was accounted for as a business combination; however, the business combination was not significant enough to warrant pro-forma financial information.

The purchase price was approximately $9,700, which included potential earn-out payments with an estimated fair value of $2,052. The earn-out is contingent upon achieving certain revenue milestones. The purchase price of the business acquired was allocated to the assets acquired and liabilities assumed based on their estimated fair values. The excess of the purchase price over the fair value of the identifiable assets acquired and liabilities assumed is reflected as goodwill, which is fully tax deductible. The Company completed the valuation and the purchase price allocation during the first quarter of fiscal 2020. This resulted in an adjustment in the fiscal 2020 first quarter that increased the purchase price and the estimated fair value of the contingent earn-out payments by approximately $300. The goodwill and identifiable intangible assets recorded as part of the purchase price allocation at October 31, 2019, were $4,526 and $5,700, respectively.

13

(dollars in thousands, except per-share amounts)

During the first quarter of fiscal 2019, Aerostar sold its client private business for $832, which resulted in an immaterial gain in the three-months ended April 30, 2018. In fiscal 2018, Aerostar actively marketed the sale of its client private business and as such, classified it as held for sale.

In the first quarter of fiscal 2019, the Company sold its ownership interest of approximately 22 percent in Site-Specific Technology Development Group, Inc. (SST) with a carrying value of $1,937. This investment was being accounted for as an equity method investment. Raven received $6,556 in cash at closing which was reported as "Proceeds from sale or maturity of investments" in the Consolidated Statements of Cash Flows. The Company recognized a gain on the sale of $5,785 for the three-months ended April 30, 2018. The gain was reported in "Other income (expense), net" in the Consolidated Statements of Income and Comprehensive Income. The gain included a fifteen percent hold-back provision held in an escrow account which was received in the second quarter of fiscal 2020.

Acquisition-related Contingent Consideration

The Company has contingent liabilities related to the acquisition of AgSync in fiscal 2019 as well as prior acquisitions of Colorado Lining International, Inc. (CLI) in fiscal 2018; Raven Europe B.V. (Raven Europe), formerly named SBG Innovatie BV and its affiliate, Navtronics BVBA (collectively, SBG), in fiscal 2015; and Aerostar Technical Solutions, Inc. (ATS), formerly named Vista Research, Inc. (Vista), completed in fiscal 2012. The fair value of such contingent consideration is estimated as of the acquisition date, and subsequently at the end of each reporting period, using forecasted cash flows. Projecting future cash flows requires the Company to make significant estimates and assumptions regarding future events, conditions, or revenues being achieved under the subject contingent agreement as well as the appropriate discount rate. Such valuation techniques include one or more significant inputs that are not observable (Level 3 fair value measures).

Changes in the fair value of the liability for acquisition-related contingent consideration are as follows:

	Three Months Ended				Nine Months Ended
	October 31, 2019		October 31, 2018		October 31, 2019		October 31, 2018
Beginning balance	$	3,579	$	2,950	$	4,172	$	3,046
Fair value of contingent consideration acquired	—		—		310		—
Change in fair value of the liability	100		182		343		585
Contingent consideration earn-out paid	(723)		(721)		(1,869)		(1,220)
Ending balance	$	2,956	$	2,411	$	2,956	$	2,411
Classification of liability in the consolidated balance sheet
Accrued liabilities	$	813	$	1,764	$	813	$	1,764
Other liabilities, long-term	2,143		647		2,143		647
Balance at October 31	$	2,956	$	2,411	$	2,956	$	2,411

For the AgSync Acquisition, the Company entered into a contingent earn-out agreement, not to exceed $3,500. The earn-out is to be paid annually over three years after the purchase date, contingent upon achieving certain revenue milestones. The Company has made no payments on this potential earn-out liability as of October 31, 2019.

In the acquisition of CLI, the Company entered into a contingent earn-out agreement, not to exceed $2,000. The earn-out is paid annually for three years after the purchase date, contingent upon achieving certain revenue milestones and operational synergies. To date, the Company has paid a total of $1,333 of this potential earn-out liability.

In connection with the acquisition of Raven Europe, the Company entered into a contingent earn-out agreement, not to exceed $2,500, calculated and paid quarterly for ten years after the purchase date, contingent upon achieving certain revenue milestones. To date, the Company has paid a total of $2,146 of this potential earn-out liability.

Related to the acquisition of ATS in 2012, the Company was committed to making annual payments based upon earn-out percentages on specific revenue streams for seven years after the purchase date. The Company made the final payment in the first quarter of fiscal 2020 and has no further contingent obligations related to acquisition of ATS.

14

(dollars in thousands, except per-share amounts)

(7) GOODWILL, LONG-LIVED ASSETS, AND OTHER CHARGES

Goodwill

Management assesses goodwill for impairment annually during the fourth quarter and between annual tests whenever a triggering event indicates there may be an impairment. Impairment tests of goodwill are done at the reporting unit level. There were no goodwill impairment losses reported in the three- and nine-month periods ending October 31, 2019 and 2018, respectively.

The changes in the carrying amount of goodwill by reporting unit were as follows:

	Applied Technology		Engineered Films		Aerostar		Total
Balance at January 31, 2019	$	17,076	$	33,232	$	634	$	50,942
Changes due to business combinations	(33)		—		—		(33)
Foreign currency translation adjustment	(75)		—		—		(75)
Balance at October 31, 2019	$	16,968	$	33,232	$	634	$	50,834

Long-lived Assets and Other Intangibles

The Company assesses the recoverability of long-lived assets, including definite-lived intangibles and property, plant, and equipment, if events or changes in circumstances indicate that an asset might be impaired. For long-lived and intangible assets, management performs impairment reviews by asset group. Management periodically assesses for triggering events and discusses any significant changes in the utilization of long-lived assets. For purposes of recognition and measurement of an impairment loss, a long-lived asset is grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities.

When performing long-lived asset testing, the fair values of assets are determined based on valuation techniques using the best available information. Such valuations are derived from valuation techniques in which one or more significant inputs are not observable (Level 3 fair value measures). An impairment loss is recognized when the carrying amount is not recoverable and exceeds the fair value of the asset.

The following table provides the gross carrying amount and related accumulated amortization of definite-lived intangible assets:

	October 31, 2019						January 31, 2019
			Accumulated						Accumulated
	Amount		amortization		Net		Amount		amortization		Net
Existing technology	$	9,174	$	(7,591)	$	1,583	$	9,203	$	(7,216)	$	1,987
Customer relationships	16,073		(6,529)		9,544		15,791		(5,508)		10,283
Patents and other intangibles	6,102		(2,296)		3,806		5,908		(1,885)		4,023
Total	$	31,349	$	(16,416)	$	14,933	$	30,902	$	(14,609)	$	16,293

There were no long-lived asset impairment losses reported in the three- and nine-month period ending October 31, 2019 and 2018, respectively.

(8) EMPLOYEE POSTRETIREMENT BENEFITS

The Company provides postretirement medical and other benefits to certain current and past senior executive officers and senior managers. These plan obligations are unfunded. The components of the net periodic benefit cost for postretirement benefits are as follows:

	Three Months Ended				Nine Months Ended
	October 31, 2019		October 31, 2018		October 31, 2019		October 31, 2018
Service cost	$	7	$	7	$	21	$	21
Interest cost	83		79		250		237
Amortization of actuarial losses	24		32		72		96
Amortization of unrecognized gains in prior service cost	(40)		(40)		(120)		(120)
Net periodic benefit cost	$	74	$	78	$	223	$	234

15

(dollars in thousands, except per-share amounts)

Postretirement benefit cost components are reclassified in their entirety from accumulated other comprehensive loss to net periodic benefit cost. Service cost is reported in net income as "Cost of sales" or "Selling, general, and administrative expenses" in a manner consistent with the classification of direct labor and personnel costs of the eligible employees. The components of the net periodic benefit cost, other than the service cost component, are classified as a non-operating expense in "Other income (expense), net" on the Consolidated Statements of Income and Comprehensive Income.

(9) WARRANTIES

Accruals necessary for product warranties are estimated based on historical warranty costs and average time elapsed between purchases and returns for each division. Additional accruals are made for any significant, discrete warranty issues. Changes in the warranty accrual were as follows:

	Three Months Ended				Nine Months Ended
	October 31, 2019		October 31, 2018		October 31, 2019		October 31, 2018
Beginning balance	$	1,739	$	1,137	$	890	$	1,163
Change in provision	1,184		521		3,038		1,007
Settlements made	(939)		(807)		(1,944)		(1,319)
Ending balance	$	1,984	$	851	$	1,984	$	851

(10) FINANCING ARRANGEMENTS

The Company entered into a credit facility on September 20, 2019, with Bank of America, N. A., as administrative agent, and Wells Fargo Bank, National Association (the Credit Agreement). The Credit Agreement provides for a syndicated senior revolving credit facility up to $100,000 with a maturity date of September 20, 2022. Loan proceeds may be utilized by Raven for strategic business purposes, such as business acquisitions, and for net working capital needs.

This new Credit Agreement replaces the Company's previous Credit Agreement which was scheduled to mature in April 2020. The Company was able to take advantage of more favorable pricing with the new Credit Agreement. The unamortized debt issuance costs associated with the Credit Agreement were as follows:

	October 31, 2019		January 31, 2019
Unamortized debt issuance costs(a)	$	202	$	132

^(a) Unamortized debt issuance costs are amortized over the term of the Credit Agreement and are reported as "Other assets" in the Consolidated Balance Sheets.

Loans or borrowings defined under the Credit Agreement bear interest and fees at varying rates and terms defined in the Credit Agreement based on the type of borrowing as defined. The Credit Agreement includes annual administrative and unborrowed capacity fees. The Credit Agreement also contains customary affirmative and negative covenants, including those related to financial reporting and notifications, limits on levels of indebtedness and liens, investments, mergers and acquisitions, affiliate transactions, sales of assets, restrictive agreements, and change in control as defined in the Credit Agreement. Financial covenants include an interest coverage ratio and funded indebtedness to earnings before interest, taxes, depreciation, and amortization as defined in the Credit Agreement.

Letters of credit (LOC) issued and outstanding were as follows:

	October 31, 2019		January 31, 2019
Letters of credit outstanding(a)	$	314	$	514

^(a) Any draws required under the LOC would be settled with available cash or borrowings under the Credit Agreement.

There were no borrowings under the new or prior Credit Agreement for any of the fiscal periods covered by this Quarterly Report on Form 10-Q. Availability under the Credit Agreement for borrowings as of October 31, 2019, was $100,000.

16

(dollars in thousands, except per-share amounts)

(11) LEASES

The Company enters into operating and finance lease contracts related to facilities, vehicles and equipment. Operating leases are primarily related to facilities to support production, research and development, and sales efforts. Finance leases are primarily related to vehicles and equipment to support general business operations. Lease payments are typically fixed and carry lease terms of one to six years, some of which have an option to terminate or extend up to an additional ten years. For purposes of the quantitative disclosures below related to the calculation of operating and finance leases, lease terms did not include options to terminate or extend, as the Company is reasonably certain it would not exercise the options. Most of the Company's leases do not contain a purchase option, material residual value guarantee, or material restrictive covenants.

The Company is primarily a lessee in all lease arrangements but may become a lessor and lease or sublease certain assets to other entities if not fully utilized. These lessor activities are not material and are not separately disclosed.

To determine whether a contract is or contains a lease, the Company assessed its right to control the use of the identified asset, whether explicitly or implicitly stated, for a period of time while considering all facts and circumstances for each individual arrangement. The Company also has leases with non-lease components which are separately stated within the agreement and not included in the recognition of the right-of use asset and lease liability balances.

The discount rate used to calculate the present value of the lease liabilities is based upon the implied rate within each contract. If the rate is unknown or cannot be determined, the Company uses an incremental borrowing rate, which is determined by the length of the contract, asset class, and the Company's borrowing rates as of the commencement date of the contract.

Components of Company lease costs, including operating, finance, and short-term leases are included in the table below. Depreciation of right-of-use assets, operating lease costs, and short-term lease costs are reported in net income as "Cost of sales," "Research and development expenses," or "Selling, general, and administrative expenses," depending on what business function the asset primarily supports. Interest on lease liabilities are classified as a non-operating expense in "Other income (expense), net" on the Consolidated Statements of Income and Comprehensive Income.

	Three Months Ended		Nine Months Ended
	October 31, 2019		October 31, 2019
Lease Costs:
Finance Leases
Depreciation of right-of-use assets	$	106	$	305
Interest on lease liabilities	5		16
Total finance lease cost	$	111	$	321
Operating Leases
Operating lease cost	$	360	$	1,082
Short-term lease cost	119		325
Total operating lease cost	$	479	$	1,407
Total finance and operating lease cost	$	590	$	1,728

17

(dollars in thousands, except per-share amounts)

Supplemental unaudited balance sheet information related to operating and finance leases include:

	October 31, 2019
Operating Leases
Operating lease right-of-use assets	$	2,782
Current lease liability	$	1,734
Non-current lease liability	1,507
Total operating lease liabilities	$	3,241
Finance Leases
Property, plant and equipment, at cost	$	879
Accumulated depreciation	(279)
Property, plant and equipment, net	$	600
Current lease liability	$	331
Non-current lease liability	269
Total finance lease liabilities	$	600

Weighted average remaining lease terms and discount rates include:

	October 31, 2019
Weighted Average Remaining Lease Term:
Operating leases	2 years
Finance leases	2 years
Weighted Average Discount Rate:
Operating leases	3.5	%
Finance leases	3.5	%

Supplemental unaudited cash flow information related to operating and finance leases include:

	Three Months Ended		Nine Months Ended
	October 31, 2019		October 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	360	$	1,082
Operating cash flows from finance leases	5		16
Financing cash flows from finance leases	106		305
Right-of-use assets obtained in exchange for lease obligations:
Finance leases	$	13	$	411
Operating leases	—		—

18

(dollars in thousands, except per-share amounts)

Future operating and finance lease obligations that have not yet commenced as of October 31, 2019, were immaterial and excluded from the lease liability schedule below accordingly.

	October 31, 2019
	Operating Leases		Finance Leases
Remainder of Fiscal 2020	$	450	$	110
Fiscal 2021	1,846		250
Fiscal 2022	677		160
Fiscal 2023	314		84
Fiscal 2024	98		21
Thereafter	—		—
Total lease payments	$	3,385	$	625
Less imputed interest	(144)		(25)
Total lease liabilities	$	3,241	$	600

Prior to the Company's adoption of ASU 2016-02 in the first quarter of fiscal year 2020, future minimum lease payments reported in the Company’s Annual Report on Form 10-K for the year ended January 31, 2019, were as follows:

	January 31, 2019
	Operating Leases		Capital Leases
Fiscal 2020	$	2,213	$	182
Fiscal 2021	1,939		102
Fiscal 2022	728		44
Fiscal 2023	356		2
Fiscal 2024	140		—
Thereafter	—		—
Total lease payments	$	5,376	$	330
Less amount representing estimated executory costs such as taxes, license and insurance including profit thereon			(14)
Less amounts representing interest			(32)
Present value of net minimum lease payments			$	284

(12) COMMITMENTS AND CONTINGENCIES

The Company is involved as a party in lawsuits, claims, regulatory inquiries, or disputes arising in the normal course of its business; potential costs and liabilities of which cannot be determined at this time. Management does not believe the ultimate outcomes of its legal proceedings are likely to be material to its results of operations, financial position, or cash flows. In addition, the Company has insurance policies that provide coverage to various degrees for potential liabilities arising from legal proceedings.

The Company entered into a Gift Agreement ("the Agreement") effective in January 2018 with the South Dakota State University Foundation, Inc. ("the Foundation"). This gift will be used by South Dakota State University (SDSU), located in Brookings, SD, for the establishment of a precision agriculture facility to support SDSU's Precision Agriculture degrees and curriculum. This facility will assist the Company in further collaboration with faculty, staff and students on emerging technology in support of the growing need for precision agriculture practices and tools.

The Agreement states that the Company will make a $5,000 gift to the Foundation, conditional on certain actions. Management concluded that the contingencies related to this gift were substantially met during the three-month period ended April 30, 2018, and a liability had been incurred. As such, $4,503 of selling, general, and administrative expense was recognized in the three-month period ending April 30, 2018, with interest expense to be recognized in periods thereafter. The fair value of this contingency at October 31, 2019, was $3,292 (measured based on the present value of the expected future cash outflows), of which $710 was classified as "Accrued liabilities" and $2,582 was classified as "Other liabilities." As of October 31, 2019, the

19

(dollars in thousands, except per-share amounts)

Company has made payments related to the commitment totaling $1,430.

In addition to commitments disclosed elsewhere in the Notes to the Consolidated Financial Statements, the Company has other unconditional purchase obligations that arise in the normal course of business operations. The majority of these obligations are related to the purchase of raw material inventory for the Applied Technology and Engineered Films divisions.

(13) INCOME TAXES

The Company’s effective tax rate varies from the federal statutory rate primarily due to state and local taxes, research and development tax credit, foreign-derived intangible income deduction, and tax-exempt insurance premiums. The Company’s effective tax rates were as follows:

	Three Months Ended				Nine Months Ended
	October 31, 2019		October 31, 2018		October 31, 2019		October 31, 2018
Effective tax rate	13.0	%	8.6	%	14.7	%	15.6	%

Timing of discrete items was the primary driver of the year-over-year volatility in the effective tax rate for the three- and nine-month periods ended October 31, 2019.

The Company’s effective tax rates, excluding discrete items, in the three-month periods ended October 31, 2019 and 2018, were 15.3 percent and 18.7 percent, respectively. This 3.4 percentage point decrease was driven primarily by a decrease in the Company’s effective tax rate, excluding discrete items, from 19.6 percent for the six-month period ended July 31, 2019, to 18.3 percent for nine-month period ended October 31, 2019.

The Company’s effective tax rates, excluding discrete items, in the nine-month periods ended October 31, 2019 and 2018, were 18.3 percent and 19.3 percent, respectively. This 1 percentage point decrease was driven primarily by a decrease in current year profitability that caused a higher research and development tax credit as a percentage of pre-tax income.

The Company's net favorable discrete tax benefits for the nine-month periods ended October 31, 2019 and 2018 were primarily related to the vesting or settlement of equity awards. The Company's total net favorable discrete tax benefits were as follows:

	Three Months Ended				Nine Months Ended
	October 31, 2019		October 31, 2018		October 31, 2019		October 31, 2018
Discrete tax benefit	$	268	$	1,440	$	1,336	$	2,129

The Company operates both domestically and internationally. As of October 31, 2019, undistributed earnings from the Company's foreign subsidiaries were considered to have been reinvested indefinitely.

(14) DIVIDENDS AND TREASURY STOCK

Dividends paid to Raven shareholders were as follows:

	Three Months Ended			Nine Months Ended
	October 31, 2019		October 31, 2018	October 31, 2019		October 31, 2018
Dividends paid(a)	$	4,648	4,674	$	14,001	14,000
Dividends paid per share (in cents per share)(a)	13.0		13.0	39.0		39.0

^(a)There were no declared and unpaid shareholder dividends at October 31, 2019 or 2018.

On November 3, 2014, the Company announced that its Board of Directors ("Board") had authorized a $40,000 stock buyback program. Since that time, the Board has provided additional authorizations to increase the total amount authorized under the program to $75,000. This authorization remains in place until the authorized spending limit is reached or such authorization is revoked by the Board.

Pursuant to these authorizations, the Company repurchased 169,474 shares for $5,000 in the three-month period ended October 31, 2019. The Company repurchased 332,651 shares for $10,781 in the nine-month period ended October 31, 2019.

20

(dollars in thousands, except per-share amounts)

There were no shares repurchased in the three- and nine-month periods ended October 31, 2018. There were no share repurchases unpaid at October 31, 2019, or October 31, 2018. The remaining dollar value authorized for share repurchases at October 31, 2019, is $17,179.

(15) SHARE-BASED COMPENSATION

Share-based compensation expense is recognized based on the fair value of the share-based awards expected to vest during the period.

The share-based compensation expense was as follows:

	Three Months Ended				Nine Months Ended
	October 31, 2019		October 31, 2018		October 31, 2019		October 31, 2018
Cost of sales	$	98	$	99	$	273	$	282
Research and development expenses	41		32		122		99
Selling, general, and administrative expenses	852		696		3,144		2,727
Total stock-based compensation expense	$	991	$	827	$	3,539	$	3,108

(16) SEGMENT REPORTING

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. The Company measures the performance of its segments based on their operating income excluding administrative and general expenses. Other income, interest expense, and income taxes are not allocated to individual operating segments. Segment information is reported consistent with the Company's management reporting structure.

Business segment financial performance and other information is as follows:

	Three Months Ended				Nine Months Ended
	October 31, 2019		October 31, 2018		October 31, 2019		October 31, 2018
Net sales
Applied Technology	$	28,500	$	29,740	$	97,596	$	100,532
Engineered Films(a)	56,406		58,239		158,214		177,106
Aerostar	15,661		17,031		41,040		41,449
Intersegment eliminations(b)	(34)		(177)		(81)		(441)
Consolidated net sales	$	100,533	$	104,833	$	296,769	$	318,646
Operating income(c)
Applied Technology	$	7,035	$	7,737	$	25,120	$	32,473
Engineered Films	8,474		9,239		24,987		33,241
Aerostar	2,488		3,839		7,427		10,479
Intersegment eliminations	(12)		(37)		(10)		(33)
Total reportable segment income	17,985		20,778		57,524		76,160
General and administrative expenses(c)	(6,653)		(7,166)		(20,501)		(24,388)
Consolidated operating income	$	11,332	$	13,612	$	37,023	$	51,772

^(a) Hurricane recovery film sales were $1,833 and $10,429 for the nine-month periods ended October 31, 2019 and 2018. Hurricane recovery film sales were not significant in the three-month periods ended October 31, 2019 and 2018, respectively.

^(b) Intersegment sales for both fiscal 2020 and 2019 were primarily sales from Engineered Films to Aerostar.

^(c) 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 a deduction from "Total reportable segment income" to reconcile to "Operating income" reported in the Consolidated Statements of Income and Comprehensive Income.

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(17) SUBSEQUENT EVENTS

The Company has evaluated events up to the filing date of this Quarterly Report on Form 10-Q and concluded that no subsequent events have occurred other than those events disclosed in Note 6 Acquisitions and Divestitures of and Investments in Businesses and Technologies that would require recognition or disclosure in the Notes to the Consolidated Financial Statements.

Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following commentary on the operating results, liquidity, capital resources, and financial condition of Raven Industries, Inc. (the Company or Raven) should be read in conjunction with the unaudited Consolidated Financial Statements in Item 1 of Part 1 of this Quarterly Report on Form 10-Q (Form 10-Q) and the Company's Annual Report on Form 10-K for the year ended January 31, 2019.

The Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is organized as follows:

•Executive Summary

•Results of Operations - Segment Analysis

•Outlook

•Liquidity and Capital Resources

•Off-Balance Sheet Arrangements and Contractual Obligations

•Critical Accounting Policies and Estimates

•Accounting Pronouncements

EXECUTIVE SUMMARY

Raven is a diversified technology company providing a variety of products to customers within the industrial, agricultural, geomembrane, construction, aerospace/defense and commercial lighter-than-air markets. The Company is comprised of three unique operating units, classified into reportable segments: Applied Technology Division (Applied Technology), Engineered Films Division (Engineered Films), and Aerostar Division (Aerostar). Segment information is reported consistent with the Company's management reporting structure.

Management uses a number of metrics to assess the Company's performance:

•Consolidated net sales, gross margin, operating income, operating margin, net income, and diluted earnings per share.

•Cash flow from operations and shareholder returns.

•Return on sales, average assets and average equity.

•Segment net sales, gross profit, gross margin, operating income and operating margin. At the segment level, operating income and margin does not include an allocation of general and administrative expenses.

Vision and Strategy

Raven's purpose is to solve great challenges. Great challenges require great solutions. Raven’s three unique divisions share resources, ideas and a passion to create technology that helps the world grow more food, produce more energy, protect the environment and live safely.

The Raven business model is our platform for success. Raven's business model is defensible, sustainable, and gives us a consistent approach in the pursuit of quality financial results. This overall approach to creating value, which is employed across the three business segments, is summarized as follows:

•Intentionally serve diverse market segments with strong short- and long-term growth prospects.

•Diversified portfolio of businesses provide balance, opportunity and risk mitigation.

•Invest in market-leading technologies and manufacturing capabilities.

•Balance sheet strength and stability enables strategic investments and acquisitions to enhance shareholder returns.

•Corporate responsibility is a top priority; it attracts great team members, customers and opportunities.

•Continuous process improvements and value engineering.

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The following discussion highlights the consolidated operating results for the three- and nine-month periods ended October 31, 2019 and 2018. Segment operating results are more fully explained in the Results of Operations - Segment Analysis section.

	Three Months Ended								Nine Months Ended
(dollars in thousands, except per-share data)	October 31, 2019			October 31, 2018			% Change		October 31, 2019			October 31, 2018			% Change
Net sales	$	100,533		$	104,833		(4.1)	%	$	296,769		$	318,646		(6.9)	%
Gross profit	30,304			32,653			(7.2)	%	96,708			107,259			(9.8)	%
Gross margin (a)	30.1		%	31.1		%			32.6		%	33.7		%
Operating income	$	11,332		$	13,612		(16.7)	%	$	37,023		$	51,772		(28.5)	%
Operating margin (a)	11.3		%	13.0		%			12.5		%	16.2		%
Other income (expense), net	$	84		$	674				$	398		$	6,214
Net income attributable to Raven Industries, Inc.	$	9,934		$	13,032		(23.8)	%	$	31,910		$	48,844		(34.7)	%
Diluted earnings per share	$	0.28		$	0.36				$	0.88		$	1.34
Cash flow from operating activities	$	20,918		$	13,656		53.2	%	$	47,078		$	52,308		(10.0)	%
Cash outflow for capital expenditures	$	(2,359)		$	(3,568)		(33.9)	%	$	(6,143)		$	(10,421)		(41.1)	%
Cash dividends	$	(4,648)		$	(4,674)		(0.6)	%	$	(14,001)		$	(14,000)		—	%
Common share repurchases	$	(5,000)		$	—				$	(10,781)		$	—
(a) The Company's gross and operating margins may not be comparable to industry peers due to variability in the classification of expenses across industries in which the Company operates.

Consolidated Results

For the fiscal 2020 third quarter, net sales were $100.5 million, down $4.3 million, or 4.1%, from $104.8 million in last year’s third quarter. Each division experienced a modest year-over-year decline in net sales. Applied Technology was unfavorably impacted by the continued challenges in the North American ag market while the decline in Engineered Films' net sales was primarily driven by lower sales into the industrial market. Aerostar achieved growth in its radar platform but prior year net sales of approximately $2 million in aerostats along with unfavorable timing of stratospheric balloon contracts resulted in a year-over-year decrease in net sales.

The Company's operating income for the third quarter of fiscal 2020 was $11.3 million, down $2.3 million, or 16.7%, compared to the third quarter of fiscal 2019. The year-over-year decline was primarily driven by increased investments in research and development, selling activities and negative operating leverage as a result of lower sales volume. Operating income included a pre-tax gain of $1.9 million on the sale of Applied Technology's facility in Austin, Texas.

Net income for the third quarter of fiscal 2020 was $9.9 million, or $0.28 per diluted share, compared to net income of $13.0 million, or $0.36 per diluted share, in the prior year comparative period. The Company's effective tax rate, excluding discrete items, was 15.3%. This was approximately 3 percentage points lower than the third quarter of last year.

For the nine-month period ended October 31, 2019, net sales were $296.8 million compared to $318.6 million, down 6.9% versus the prior year comparative period. In addition to Engineered Films' lost market share in the industrial market, prior year net sales included $10.4 million of hurricane recovery film. Applied Technology also experienced a modest year-over-year decline in net sales primarily driven by challenging conditions within the agricultural market.

The Company's operating income was $37.0 million, down 28.5% from the prior year nine-month period. The year-over-year decrease was primarily due to negative operating leverage as a result of lower sales volume. Operating income also included increased investment in research and development and higher selling expenses in both Applied Technology and Aerostar compared to the first nine months of the prior year.

Net income for the first nine months of fiscal 2020 was $31.9 million, or $0.88 per diluted share, compared to net income of $48.8 million, or $1.34 per diluted share, in the prior year comparative period. Results for the nine-month period ended October 31, 2018, included, on a pre-tax basis, a non-operating gain on the sale of the Company's ownership interest in SST of $5.8 million ($4.6 million after-tax, or $0.13 per diluted share) and an expense associated with the previously announced gift to South Dakota State University of $4.5 million ($3.6 million after-tax, or $0.10 per diluted share). Net income for the first nine months of fiscal 2020 included a $1.9 million gain from the sale of Applied Technology's Austin, Texas, facility ($1.5

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million after-tax, or $0.04 per diluted share).

Applied Technology Division Results

Applied Technology's net sales in the third quarter of fiscal 2020 were $28.5 million, down $1.2 million from last year's third quarter. Geographically, domestic and international sales were down 3.4% year-over-year and 7.2% year-over-year, respectively. Unfavorable weather and poor yield conditions during this year's growing season in North America negatively impacted end market demand more than the Company had anticipated. This weakness in end market demand resulted in additional OEM plant shutdowns during the third quarter, which drove a 13.5% decrease in sales to the OEM channel. Despite these end market challenges, the Aftermarket channel showed signs of strength and grew 4.8% year-over-year aided by the first shipments of VSN™, the Company’s best-in-class visual guidance technology.

Operating income for Applied Technology was $7.0 million, down $0.7 million or 9.1% compared to $7.7 million in the third quarter of fiscal 2019. The year-over-year decrease was driven by negative operating leverage as a result of lower sales volume, temporarily higher warranty expenses and increased investments in research and development to support the division's continued commitment to innovation. Operating income also included a pre-tax gain of $1.9 million from the sale of Applied Technology's facility in Austin, Texas.

Net sales for Applied Technology in the first nine months of fiscal 2020 were $97.6 million, down 2.9% compared to the first nine months of fiscal 2019. Geographically, international sales were up 4.4% year-over-year and domestic sales were down 5.2% year-over-year. International sales growth was driven primarily by strong growth in Latin America as a result of the division's investment in the region. Domestic sales were negatively impacted by unfavorable weather and poor yield conditions during this year's growing season which impacted end market demand in North America.

Operating income for the first nine months of fiscal 2020 was $25.1 million, down 22.6% compared to the first nine months of fiscal 2019. Operating income includes increased investments in research and development and higher selling expenses compared to the prior year to further support the integration and growth of the recently acquired AgSync business and to continue the division's commitment to innovation.

Engineered Films Division Results

Engineered Films’ fiscal 2020 third quarter net sales were $56.4 million, a decrease of $1.8 million, or 3.1%, compared to fiscal 2019 third quarter net sales of $58.2 million. The division achieved gains in the agriculture, construction and installation end markets; however, these gains were offset by lower sales into the industrial market and challenges in the geomembrane market (specifically in the energy sub-market).

Operating income for Engineered Films in the third quarter of fiscal 2020 decreased 8.3% to $8.5 million as compared to $9.2 million in the prior year third quarter. Negative operating leverage on lower sales volume reduced operating income as compared to the prior year.

Net sales for Engineered Films in the first nine months of fiscal 2020 were $158.2 million, a decrease of $18.9 million, or 10.7%, compared to the first nine months of fiscal 2019. Hurricane recovery film sales were down $8.6 million in the first nine months of fiscal 2020 compared to the first nine months of fiscal 2019. During the first nine months of this fiscal year the division experienced end market challenges in the geomembrane market and lower sales into the industrial market.

Operating income for the first nine months of fiscal 2020 decreased 24.8% to $25.0 million as compared to $33.2 million in the prior year comparative period. The year-over-year decrease in operating income was driven primarily by negative operating leverage on lower sales volume, which included the significant reduction in hurricane recovery film sales.

Aerostar Division Results

Aerostar net sales in the third quarter of fiscal 2020 were $15.7 million, a decrease of $1.3 million, or 8.0%, compared to fiscal 2019 third quarter net sales of $17.0 million. The division achieved growth in its radar platform; however, the year-over-year decrease of approximately $2 million in aerostat sales and the unfavorable timing of stratospheric balloon contracts resulted in a year-over-year decrease in net sales for the division. Aerostar's sales to government agencies often involve large contracts subject to frequent delays and protracted negotiation processes. The timing and size of aerostat contract wins can create volatility in Aerostar's results.

Operating income for Aerostar in the third quarter of fiscal 2020 was $2.5 million compared to $3.8 million in the third quarter of last year. Higher selling expenses and increased investment in research and development drove a reduction in operating income as the division continued its investment in advancing its radar and stratospheric balloon technologies. Additionally, operating income was unfavorably impacted by negative operating leverage on lower sales volume year-over-year.

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Net sales for Aerostar in the first nine months of fiscal 2020 were $41.0 million, a decrease of $0.4 million, or 1.0%, compared to the first nine months of fiscal 2019. Current year net sales for the division included over $5 million of incremental radar related sales year-over-year; however, the $6.6 million decrease in aerostat sales year-over-year resulted in divisional sales being down slightly year-to-date.

Operating income for the nine-month year-to-date period of fiscal 2020 was $7.4 million compared to operating income of $10.5 million in the prior year comparative period. Operating income decreased due to increased investment in research and development and selling expenses to advance the division's radar and stratospheric balloon technologies and was significantly impacted by lower aerostat sales and associated profit.

RESULTS OF OPERATIONS - SEGMENT ANALYSIS

Applied Technology

Applied Technology designs, manufactures, sells, and services innovative precision agriculture products and information management tools, which are collectively referred to as precision agriculture equipment, that help farmers reduce costs, more precisely control inputs, and improve farm yields for the global agriculture market.

	Three Months Ended										Nine Months Ended
(dollars in thousands)	October 31, 2019			October 31, 2018			$ Change		% Change		October 31, 2019			October 31, 2018			$ Change		% Change
Net sales	$	28,500		$	29,740		$	(1,240)	(4.2)	%	$	97,596		$	100,532		$	(2,936)	(2.9)	%
Gross profit	13,205			14,639			(1,434)		(9.8)	%	47,539			51,640			(4,101)		(7.9)	%
Gross margin	46.3		%	49.2		%					48.7		%	51.4		%
Operating expenses	$	6,170		$	6,902		$	(732)	(10.6)	%	$	22,419		$	19,167		$	3,252	17.0	%
Operating expenses as % of sales	21.6		%	23.2		%					23.0		%	19.1		%
Operating income(a)	$	7,035		$	7,737		$	(702)	(9.1)	%	$	25,120		$	32,473		$	(7,353)	(22.6)	%
Operating margin	24.7		%	26.0		%					25.7		%	32.3		%
(a) At the segment level, operating income does not include an allocation of general and administrative expenses.

The following factors were the primary drivers of the three- and nine-month year-over-year changes:

•Market conditions. The North American ag market continues to be negatively impacted by unfavorable weather and low commodity prices, while the U.S.-China trade developments continue to drive uncertainty in the marketplace and negatively impact farmer sentiment. These factors have reduced farm income, and OEMs have responded with lower production of new machines. In the short term, the Company does not anticipate improvement in ag market conditions nor an increase in demand for precision agriculture equipment. The Company does not generally model comparative market share position for its divisions, but the Company believes Applied Technology maintained its market share in the third quarter of fiscal 2020.

•Sales volume and selling prices. Third quarter fiscal 2020 net sales decreased $1.2 million or 4.2%, to $28.5 million compared to $29.7 million in the prior year. Year-to-date sales decreased 2.9% to $97.6 million compared to $100.5 million in the prior year. Lower sales volume, rather than a change in selling price, was the primary driver of this decrease. Unfavorable weather during the planting season in North America and poor yield conditions during this year's growing season continued to impact end market demand in North America.

•International sales. For the third quarter of fiscal 2020, international sales totaled $5.5 million, down 7.2% from $6.0 million in the prior year comparative period. International sales represented 19.4% of segment revenue compared to 20.1% of segment revenue in the prior year comparative period. Year-to-date, international sales totaled $24.7 million, an increase of $1.0 million from a year ago. Year-to-date international sales represented 25.3% of segment sales compared to 23.5% in the prior year comparative period. The year-to-date increase in international sales was driven primarily by significant growth in Latin America as a result of the division's continued investment in the region.

•Gross margin. Gross margin decreased from 49.2% in the prior year third quarter to 46.3% in the third quarter of fiscal 2020. Year-to-date fiscal 2020 gross margin decreased from 51.4% to 48.7% compared to the prior year comparative period. The year-over-year decrease in profitability for the three- and nine-month periods was driven primarily by lower sales volume and a corresponding reduction in operating leverage as well as an increase in warranty expenses.

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•Operating expenses. Fiscal 2020 third quarter operating expenses as a percentage of net sales was 21.6%, down from 23.2% in the prior year comparative period. Third quarter operating expenses included a $1.9 million pre-tax gain from sale of the division's facility in Austin, Texas, which primarily drove the favorable year-over-year comparison. Year-to-date operating expenses as a percentage of net sales were up from 19.1% to 23.0%. The year-over-year increase in operating expenses for the nine-month period was driven primarily by incremental investments in research and development and higher selling expenses. A large driver of this increase is related to the continued integration and growth of the recently acquired AgSync business to ensure the division capitalizes on the benefits of product integration and adoption into the marketplace. In addition, current year operating expenses benefited from a $1.9 million pre-tax gain from the sale of the division's facility in Austin, Texas. The prior year's operating expenses benefited from favorable legal recoveries which did not repeat in fiscal 2020.

Engineered Films

Engineered Films produces high-performance plastic films and sheeting for geomembrane, agricultural, construction, and industrial applications and also offers design-build and installation services of these plastic films and sheeting. Plastic film and sheeting can be purchased separately or together with installation services.

	Three Months Ended										Nine Months Ended
(dollars in thousands)	October 31, 2019			October 31, 2018			$ Change		% Change		October 31, 2019			October 31, 2018			$ Change		% Change
Net sales	$	56,406		$	58,239		$	(1,833)	(3.1)	%	$	158,214		$	177,106		$	(18,892)	(10.7)	%
Gross profit	10,714			11,361			(647)		(5.7)	%	32,258			39,303			(7,045)		(17.9)	%
Gross margin	19.0		%	19.5		%					20.4		%	22.2		%
Operating expenses	$	2,240		$	2,122		$	118	5.6	%	$	7,271		$	6,062		$	1,209	19.9	%
Operating expenses as % of sales	4.0		%	3.6		%					4.6		%	3.4		%
Operating income(a)	$	8,474		$	9,239		$	(765)	(8.3)	%	$	24,987		$	33,241		$	(8,254)	(24.8)	%
Operating margin	15.0		%	15.9		%					15.8		%	18.8		%
(a) At the segment level, operating income does not include an allocation of general and administrative expenses.

The following factors were the primary drivers of the three- and nine-month year-over-year changes:

•Market conditions. The energy market in the third quarter experienced slower demand compared to prior year's third quarter, as West Texas Intermediate (WTI) oil prices and Permian Basin rig counts were down 21% and 14% year-over-year, respectively. The Company expects energy market related demand for Engineered Films to follow Permian Basin rig count trends for the remainder of the year. The Company does not generally model comparative market share position for its divisions, but the Company believes Engineered Films maintained its market share in most of its end markets in the third quarter of fiscal 2020.

•Sales volume and selling prices. Third quarter net sales were $56.4 million, a decrease of $1.8 million, or 3.1%, compared to fiscal 2019 third quarter net sales of $58.2 million. The division achieved gains in the agriculture, construction and installation end markets; however, these gains were offset by lower sales into the industrial market and challenges in the geomembrane market (specifically in the energy sub-market) during the third quarter. The nine-month fiscal 2020 net sales were down $18.9 million, or 10.7%, to $158.2 million compared to $177.1 million in the nine-month period for fiscal 2019. A year-over-year decrease in sales volume, as opposed to a decrease in selling price, was the driver for the decline in net sales. Sales volume, measured in pounds sold, decreased approximately 8% and 11% year-over-year for the three- and nine-month periods ending October 31, 2019, respectively. For the nine-month period, lower sales into the industrial market and challenges in the geomembrane market (specifically in the energy sub-market) drove net sales down year-over-year. In addition, hurricane recovery film sales were down $8.6 million in the first nine months of fiscal 2020 compared to the first nine months of fiscal 2019.

•Gross margin. For the three-month period ending October 31, 2019 and 2018, gross margin was relatively flat at 19.0% and 19.5%, respectively. Gross profit in the prior year third quarter was negatively impacted by nearly $2 million of cost overruns related to a large geomembrane installation project. The year-over-year decrease in gross margin was led by a higher proportion of installation revenues which carry a lower margin than film sales. For the nine-month period ending October 31, 2019 and 2018, gross margin was 20.4% and 22.2%, respectively. The year-over-year decrease in gross margin was driven by lower sales volume including the reduction in hurricane recovery film sales and corresponding negative operating leverage.

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•Operating expenses. As a percentage of net sales, operating expenses were 4.0% in the current year three-month period as compared to 3.6% in the prior year comparative period. Year-to-date operating expenses were 4.6% as a percentage of net sales as compared to 3.4% in the prior year comparative period. The year-over-year increase was driven primarily by lower sales volume and higher legal expenses in both the three- and nine-month periods.

Aerostar

Aerostar serves the aerospace/defense and commercial lighter-than-air markets. Aerostar's core products include high-altitude stratospheric balloons and radar systems. These products can be integrated with additional third-party sensors to provide research, communications, and situational awareness capabilities to governmental and commercial customers.

	Three Months Ended										Nine Months Ended
(dollars in thousands)	October 31, 2019			October 31, 2018			$ Change		% Change		October 31, 2019			October 31, 2018			$ Change		% Change
Net sales	$	15,661		$	17,031		$	(1,370)	(8.0)	%	$	41,040		$	41,449		$	(409)	(1.0)	%
Gross profit	6,397			6,690			(293)		(4.4)	%	16,921			16,349			572		3.5	%
Gross margin	40.8		%	39.3		%					41.2		%	39.4		%
Operating expenses	$	3,909		$	2,851		$	1,058	37.1	%	$	9,494		$	5,870		$	3,624	61.7	%
Operating expenses as % of sales	25.0		%	16.7		%					23.1		%	14.2		%
Operating income(a)	$	2,488		$	3,839		$	(1,351)	(35.2)	%	$	7,427		$	10,479		$	(3,052)	(29.1)	%
Operating margin	15.9		%	22.5		%					18.1		%	25.3		%
(a) At the segment level, operating income does not include an allocation of general and administrative expenses.

The following factors were the primary drivers of the three- and nine-month year-over-year changes:

•Market conditions. Aerostar’s business consists of proprietary products and services to the aerospace/defense and commercial lighter-than-air markets. These markets are subject to significant variability in demand due to government spending uncertainties and the timing of contract awards. The Company does not generally model comparative market share position for its divisions, but the Company believes Aerostar has maintained its market share in the third quarter and first nine months of fiscal 2020.

•Sales volume. Net sales decreased 8.0% from $17.0 million for the three-month period ended October 31, 2018, to $15.7 million for the three-month period ended October 31, 2019. The division achieved growth in its radar platform but the year-over-year decrease of approximately $2 million in aerostat sales and the unfavorable timing of stratospheric balloon contracts drove the year-over-year decrease in net sales. Year-to-date sales were $41.0 million, down $0.4 million year-over-year, or 1.0%. Net sales for the prior year nine-month period included significant aerostat sales which did not repeat in the current year.

•Gross margin. For the three-month period, gross margin increased from 39.3% to 40.8% and for the nine-month period, gross margin increased for the current year from 39.4% to 41.2%. Despite a decrease in sales, the division achieved a modest increase in gross margin from operational efficiencies attained by focusing on its core products.

•Operating expenses. Third quarter fiscal 2020 operating expense was $3.9 million, or 25.0% of net sales, an increase from 16.7% of net sales in the third quarter of fiscal 2019. Year-to-date operating expense as a percentage of net sales was 23.1%, up from 14.2% in the prior year. Higher selling expenses and increased investment in research and development drove the increase in operating expenses as the division continued its investment in the advancement of its radar and stratospheric balloon technologies.

Corporate Expenses (administrative expenses; other (expense), net; and income taxes)

`

	Three Months Ended						Nine Months Ended
(dollars in thousands)	October 31, 2019			October 31, 2018			October 31, 2019			October 31, 2018
Administrative expenses	$	6,653		$	7,166		$	20,501		$	24,388
Administrative expenses as a % of sales	6.6		%	6.8		%	6.9		%	7.7		%
Other income (expense), net	$	84		$	674		$	398		$	6,214
Effective tax rate	13.0		%	8.6		%	14.7		%	15.6		%

Administrative spending for the three-month period of fiscal 2020 was down $0.5 million compared to fiscal 2019. Administrative spending for the nine-month period of fiscal 2020 was down $3.9 million compared to fiscal 2019 as prior year's spending included an expense of $4.5 million related to a gift to South Dakota State University.

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Other income (expense), net consists primarily of activity related to the Company's equity method investments, interest income and expense, and foreign currency transaction gains or losses. There were no significant items in other income (expense), net for the three- and nine-month periods in fiscal year 2020. Fiscal 2019 other income (expense), net for the nine-month period included a $5.8 million gain on the sale of the Company's equity interest in SST.

The Company’s effective tax rates for the three-month periods ended October 31, 2019 and 2018, were 13.0% and 8.6%, respectively. The Company’s effective tax rates for the nine-month periods ended October 31, 2019 and 2018, were 14.7% and 15.6%, respectively. The year-over-year volatility in the effective tax rate for the three- and nine-month period was primarily due to the timing of discrete tax items related to the settlement and vesting of equity compensation awards. Refer to Note 13 Income Taxes of the Notes to the Consolidated Financial Statements included in Item 1 of this Form 10-Q for more information on the impact of discrete tax items to the effective tax rate.

OUTLOOK

Applied Technology and Engineered Films performed well in the midst of lower demand, while Aerostar continues to win new contracts and position itself for strong growth. Despite the short-term challenges the Company is experiencing this fiscal year, the fundamentals within each of its divisions remain very strong, and the Company is well positioned to leverage its market leading technology to capitalize on business development opportunities. Additionally, the Company recently announced two new strategic platforms for growth, Raven Autonomy™ and Raven Composites™, which are logical extensions of the Company's current technology portfolio and are expected to provide significant incremental growth over the long-term.

Applied Technology began executing on its strategic platform for growth, Raven Autonomy™, by acquiring Smart Ag^® and a controlling ownership in DOT^®. The Company is very excited about its unique position to execute and deliver value-added autonomous agriculture solutions to the marketplace. Additionally, the division's existing core business remains strong and is performing well considering the lower end market demand.

Engineered Films achieved mixed results across its end markets but continues to position itself for significant growth opportunities within its existing markets. Raven Composites™ will be incremental to that growth, and there are near-term opportunities to execute on for Raven Composites™. The division is aggressively pursuing strategic acquisitions and expansions in both equipment and facilities, and will provide details as these investments are completed in the near-term.

Aerostar has been executing on its strategic plan for growth and is delivering expected results. The two newly-awarded aerostat contracts provide further evidence of the momentum and strength of Aerostar's contract pipeline, and the division continues to position itself for significant success in the aerospace and defense market in the near future.

LIQUIDITY AND CAPITAL RESOURCES

The Company's balance sheet continues to reflect significant liquidity and a strong capital base. Management focuses on the current cash balance and operating cash flows in considering liquidity, as operating cash flows have historically been the Company's primary source of liquidity. Management expects that current cash, combined with the generation of positive operating cash flows, will be sufficient to fund the Company's normal operating, investing, and financing activities beyond the next twelve months. In addition, the Company recently entered a new, three-year, $100 million senior revolving credit facility which includes a $100 million borrowing availability expansion feature. This allows the Company’s total borrowing capacity to reach $200 million. This new credit facility has a maturity date of September 20, 2022.

The Company’s cash balances and cash flows were as follows:

(dollars in thousands)	October 31, 2019		January 31, 2019		October 31, 2018
Cash and cash equivalents	$	77,094	$	65,787	$	68,693

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	Three Months Ended				Nine Months Ended
(dollars in thousands)	October 31, 2019		October 31, 2018		October 31, 2019		October 31, 2018
Cash provided by operating activities	$	20,918	$	13,656	$	47,078	$	52,308
Cash used in investing activities	(2,155)		(3,311)		(5,833)		(4,799)
Cash used in financing activities	(10,778)		(6,923)		(29,870)		(18,780)
Effect of exchange rate changes on cash and cash equivalents	(22)		(168)		(68)		(571)
Net increase (decrease) in cash and cash equivalents	$	7,963	$	3,254	$	11,307	$	28,158

Cash and cash equivalents totaled $77.1 million at October 31, 2019, an increase of $11.3 million from $65.8 million at January 31, 2019. Cash and cash equivalents as of October 31, 2018 was $68.7 million. The sequential increase in cash was primarily driven by improved net capital working capital and also benefited from proceeds from the sale of Applied Technology's facility in Austin, Texas.

Operating Activities

Cash provided by operating activities was primarily from cash received from customers, which were offset by cash payments for inventories, services, employee compensation, and income taxes. Cash provided by operating activities was $47.1 million for the first nine months of fiscal 2020 compared with $52.3 million in the first nine months of fiscal 2019. The decrease in operating cash flows year-over-year was driven primarily by lower net income.

The Company's cash needs have minimal seasonal trends. As a result, the discussion of trends in operating cash flows focuses on the primary drivers of year-over-year variability in net working capital. Net working capital and net working capital percentage are metrics used by management as a guide in measuring the efficient use of cash resources to support business activities and growth. The Company's net working capital for the comparative periods was as follows:

(dollars in thousands)	October 31, 2019			October 31, 2018
Accounts receivable, net	$	62,057		$	66,166
Plus: Inventories	51,981			53,229
Less: Accounts payable	11,045			12,149
Net working capital(a)	$	102,993		$	107,246
Annualized net sales(b)	402,132			419,332
Net working capital percentage(c)	25.6		%	25.6		%
(a) Net working capital is defined as accounts receivable, (net) plus inventories less accounts payable.
(b) Annualized net sales is defined as the most recent quarter net sales times four for each of the fiscal periods, respectively.
(c) Net working capital percentage is defined as net working capital divided by annualized net sales.

Net working capital percentage was flat year-over-year in the third quarter of fiscal 2020.

Inventory levels decreased $1.2 million, or 2.3%, year-over-year from $53.2 million at October 31, 2018, to $52.0 million at October 31, 2019. In comparison, consolidated net sales decreased $4.3 million, or 4.1%, year-over-year in the third quarter. The decrease in inventory was primarily driven by the Engineered Films division improving operational efficiency and aligning inventory levels with corresponding expected sales.

Accounts receivable decreased $4.1 million or 6.2%, year-over-year to $62.1 million at October 31, 2019, from $66.2 million at October 31, 2018. In comparison, consolidated net sales decreased $4.3 million, or 4.1%, year-over-year in the third quarter. Lower sales volume and the timing of cash receipts were the primary drivers of the year-over-year decrease in accounts receivable.

Accounts payable decreased $1.1 million, or 9.1%, year-over-year from $12.1 million at October 31, 2018, to $11.0 million at October 31, 2019. The decrease in accounts payable year-over-year was primarily due to lower inventory purchases and timing of purchases and cash payments.

Investing Activities

Cash used by investing activities was $5.8 million for the first nine months of fiscal 2020 compared with cash used of $4.8

29

million in the first nine months of fiscal 2019. Prior year investing cash flows included cash receipts of $6.6 million from the sale of the Company's ownership interest in SST in fiscal 2019. In addition, capital expenditure spending was down $4.3 million compared to the prior year nine-month period primarily due to prior year investments related to Engineered Films' Line 15 that was placed into service in fiscal 2020.

Financing Activities

Cash used for financing activities for the first nine months of fiscal 2020 increased $11.1 million compared to the first nine months of fiscal 2019. The increase in cash outflows was driven by $10.8 million of share repurchases in the first nine months of fiscal 2020. There were no share repurchases in the first nine months of fiscal 2019. Dividends per share for the first nine months of fiscal 2020 and 2019 were consistent at 39.0 cents per share. Total cash outflows for dividends in the nine-month periods ended October 31, 2019 and 2018, were $14.0 million for both periods.

No borrowing or repayment occurred on the Credit Agreement during the first nine months of fiscal 2020 or fiscal 2019.

Other Liquidity and Capital Resources

The Company entered into a new $100 million credit agreement on September 20, 2019, with a maturity date of September 20, 2022. This agreement (Credit Agreement) is more fully described in Note 10 Financing Arrangements of the Notes to the Consolidated Financial Statements included in Item 1 of this Form 10-Q. This new Credit Agreement replaced the Company's previous $125 million credit agreement which had a maturity date of April 15, 2020. Cost savings associated with the new Credit Agreement will be approximately $0.2 million annually.

The Credit Agreement contains customary affirmative and negative covenants, including those relating to financial reporting and notification, limits on levels of indebtedness and liens, investments, mergers and acquisitions, affiliate transactions, sales of assets, restrictive agreements, and change in control as defined in the Credit Agreement. Financial covenants include an interest coverage ratio and funded indebtedness to earnings before interest, taxes, depreciation, and amortization as defined in the Credit Agreement. The Company is in compliance with all financial covenants set forth in the Credit Agreement.

Letters of credit (LOCs) totaling $0.3 million and $0.5 million were outstanding at October 31, 2019 and October 31, 2018, respectively. Any draws required under the LOCs would be settled with available cash or borrowings under the Credit Agreement.

OFF-BALANCE SHEET ARRANGEMENTS AND CONTRACTUAL OBLIGATIONS

There have been no material changes in the Company’s known off-balance sheet debt and other unrecorded obligations since the fiscal year ended January 31, 2019, other than item discussed below.

The Company entered into a new Credit Agreement on September 20, 2019, further described in Part I Item 2 Liquidity and Capital Resources of this Form 10-Q.

Raven is eligible to receive earn-out payments related to the fiscal 2019 dispositions of Aerostar's client private business and the Company's ownership interest in SST if certain post-closing performance benchmarks are satisfied. The Company will recognize the earn-out payments as income in the period they are realized under the terms of the respective agreement.

CRITICAL ACCOUNTING ESTIMATES

Critical accounting policies are those that require the application of judgment when valuing assets and liabilities on the Company's balance sheet. For a description of our critical accounting policies and estimates, see Critical Accounting Policies and Estimates in Item 7 of our Annual Report on Form 10-K for the year ended January 31, 2019, filed with the SEC. There have been no material changes to our critical accounting policies during the three- and nine month periods ended October 31, 2019.

ACCOUNTING PRONOUNCEMENTS

See Note 2 Summary of Significant Accounting Policies of the Notes to the Consolidated Financial Statements included in Item 1 of this Form 10-Q for a summary of recent accounting pronouncements.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this report are "forward-looking statements" within the meaning of Section 27A of the

30

Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding the expectations, beliefs, intentions or strategies regarding the future, not past or historical events. Without limiting the foregoing, the words "anticipates," "believes," "expects," "intends," "may," "plans," "should," "estimate," "predict," "project," "would," "will," "potential," and similar expressions are intended to identify forward-looking statements. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. The Company intends that all forward-looking statements be subject to the safe harbor provisions of the Private Securities Litigation Reform Act.

Although the Company believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions when made, there is no assurance that such assumptions are correct or that these expectations will be achieved. Assumptions involve important risks and uncertainties that could significantly affect results in the future. These risks and uncertainties include, but are not limited to, those relating to weather conditions, which could affect sales and profitability in some of the Company's primary markets, such as agriculture and construction and oil and gas drilling; or changes in raw material availability, commodity prices, competition, technology or relationships with the Company's largest customers, risks and uncertainties relating to development of new technologies to satisfy customer requirements, possible development of competitive technologies, ability to scale production of new products without negatively impacting quality and cost, risks of operating in foreign markets, risks relating to acquisitions, including risks of integration or unanticipated liabilities or contingencies, and ability to finance investment and net working capital needs for new development projects, any of which could adversely impact any of the Company's product lines, risks of litigation, as well as other risks described in Item 1A., Risk Factors, of the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2019. The foregoing list is not exhaustive and the Company disclaims any obligation to subsequently revise any forward-looking statements to reflect events or circumstances after the date of such statements. Past financial performance may not be a reliable indicator of future performance and historical trends should not be used to anticipate results or trends in future periods.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The exposure to market risks pertains mainly to changes in interest rates on cash and cash equivalents, and short-term investments. The Company has no outstanding long-term debt but does have an immaterial amount of finance lease obligations as of October 31, 2019 and capital leases as of January 31, 2019. The Company does not expect operating results or cash flows to be significantly affected by changes in interest rates.

The Company's subsidiaries that operate outside the United States use their local currency as the functional currency. The functional currency is translated into U.S. dollars for balance sheet accounts using the period-end exchange rates, and average exchange rates for the statement of income. Cash and cash equivalents held in foreign currency (primarily Euros and Canadian dollars) totaled $4.2 million and $4.6 million at October 31, 2019 and January 31, 2019, respectively. Adjustments resulting from financial statement translations are included as cumulative translation adjustments in "Accumulated other comprehensive income (loss)" within shareholders' equity. Foreign currency transaction gains or losses are recognized in the period incurred and are included in "Other income (expense), net" in the Consolidated Statements of Income and Comprehensive Income. Foreign currency fluctuations had no material effect on the Company's financial condition, results of operations, or cash flows.

The Company does not enter into derivatives or other financial instruments for trading or speculative purposes. However, the Company does utilize derivative financial instruments to manage the economic impact of fluctuation in foreign currency exchange rates on those transactions that are denominated in currency other than its functional currency, which is the U.S. dollar. Such transactions are principally Canadian dollar-denominated transactions. The use of these financial instruments had no material effect on the Company's financial condition, results of operations, or cash flows.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Our management, under the supervision of our Chief Executive Officer (CEO) and Chief Financial Officer (CFO), evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of October 31, 2019. Disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the Exchange Act)), are our controls and other procedures that are designed to ensure that information required to be disclosed by us in the reports we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures are designed to ensure that information

31

required to be disclosed by us in the reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure.

Based on their evaluation, our CEO and CFO concluded that our disclosure controls and procedures were effective as of October 31, 2019.

Changes in Internal Control over Financial Reporting

In fiscal year 2018, the Company began a multi-year transition from its legacy enterprise resources planning (ERP) system to a new ERP system. At the start of fiscal year 2020, the Company completed the migration of its Engineered Films Division to the new ERP system. In connection with this implementation, the Company updated the processes that constitute its internal control over financial reporting, as necessary, to accommodate related changes in its business processes.

The Company believes it has maintained appropriate internal controls during its initial implementation period and will continue to evaluate, test and monitor its internal controls over financial reporting for effectiveness.

There were no other changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the three- and nine-month periods ended October 31, 2019, that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

RAVEN INDUSTRIES, INC.

PART II — OTHER INFORMATION

Item 1. Legal Proceedings:

The Company is involved as a party in lawsuits, claims, regulatory inquiries, or disputes arising in the normal course of its business; the potential costs and liability of which cannot be determined at this time. Management does not believe the ultimate outcomes of its legal proceedings are likely to be significant to its results of operations, financial position, or cash flows.

The Company has insurance policies that provide coverage to various degrees for potential liabilities arising from legal proceedings.

Item 1A. Risk Factors:

The Company’s business is subject to a number of risks, including those identified in Item 1A "Risk Factors" of the Company’s Annual Report on Form 10-K for the year ended January 31, 2019, that could have a material effect on our business, results of operations, financial condition and/or liquidity and that could cause our operating results to vary significantly from fiscal period to fiscal period. The risks described in the Annual Report on Form 10-K are not exhaustive. Additional risks we currently deem to be immaterial or are unknown to us at this time also could materially affect our business, results of operations, financial condition, and/or liquidity.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds:

Issuer purchases of equity securities

On November 3, 2014, the Company's Board of Directors (Board) authorized a $40.0 million stock buyback program. Since that time, the Board has provided additional authorizations to increase the total amount authorized under the program to $75.0 million. This authorization remains in place until such time as the authorized spending limit is reached or is revoked by the Board.

32

(dollars in thousands, except per-share amounts)

The Company made purchases of its own equity securities during the third quarter of fiscal year 2020 (recorded on trade date basis) as follows:

Period	Total number of shares purchased under the plan	Weighted average price paid per share (or unit)		Total amount purchased including commissions		Dollar value of shares (or units) that may be purchased under the plan
August 1 to August 31, 2019	86,674	$	28.78	$	2,494,524
September 1 to September 30, 2019	82,800	30.26		2,505,467
October 1 to October 31, 2019	—	—		—
Total as of and for the fiscal quarter ended October 31, 2019	169,474	$	29.50	$	4,999,991	$	17,178,950

Item 3. Defaults Upon Senior Securities: None

Item 4. Mine Safety Disclosures: None

Item 5. Other Information: None

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Item 6. Exhibits:

Exhibit Number	Description
10.1	Form of Performance Stock Unit Agreement under the Raven Industries, Inc. 2019 Equity Incentive Plan filed herewith as Exhibit 10.1. †
10.2	Form of Restricted Stock Unit Award Agreement under the Raven Industries, Inc. 2019 Equity Incentive Plan filed herewith as Exhibit 10.2. †
10.3	Credit Agreement dated September 20, 2019 by and among Raven Industries, Inc. as the Borrower, Bank of America, N.A., as Administrative Agent, Swingline Lender, and an L/C issuer and each of the other lenders party thereto (incorporated herein by reference to Exhibit 10.1 of the Company's 8-K filed September 23, 2019).
31.1	Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH	Inline XBRL Taxonomy Extension Schema
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase
104	Cover page Interactive Data File is formatted in Inline XBRL and is contained in Exhibits 101

† Management contract or compensatory plan or arrangement.

34

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

RAVEN INDUSTRIES, INC.

/s/ Steven E. Brazones

Steven E. Brazones

Vice President and Chief Financial Officer
(Principal Financial and Accounting Officer) 

Date: November 27, 2019

35

EX-10.1

Exhibit 10.1

RAVEN INDUSTRIES, INC.

2019 EQUITY INCENTIVE PLAN

Performance Stock Unit Agreement

Raven Industries, Inc. (the “Company”), pursuant to its 2019 Equity Incentive Plan (the “Plan”), hereby grants an award of Performance Stock Units to you, the Participant named below. The terms and conditions of this Award are set forth in this Performance Stock Unit Agreement (the “Agreement”), consisting of this cover page, the Terms and Conditions on the following pages and the attached Exhibit A, and in the Plan document, a copy of which has been provided to you. Any capitalized term that is used but not defined in this Agreement shall have the meaning assigned to it in the Plan as it currently exists or as it is amended in the future.

Name of Participant:
Target Number of Performance Stock Units:
Maximum Number of Performance Stock Units:
Grant Date:
Performance Period:	February 1, 20__ – January 31, 20__
Vesting Schedule:	The number of Units determined in accordance with Exhibit A to have been earned as of the end of the Performance Period will vest* on the date the Company’s Personnel and Compensation Committee certifies such performance results, which shall be no later than April 10, 20__.
Performance Goals:	See Exhibit A
* Assumes your Service has been continuous from the Grant Date to the vesting date.

        By signing below or otherwise evidencing your acceptance of this Agreement in a manner approved by the Company, you agree to all of the terms and conditions contained in this Agreement and in the Plan document. You acknowledge that you have received and reviewed these documents and that they set forth the entire agreement between you and the Company regarding this Award of Performance Stock Units.

PARTICIPANT:     RAVEN INDUSTRIES, INC.

 By:

              Title:

Exhibit 10.1

Raven Industries, Inc.

2019 Equity Incentive Plan

Performance Stock Unit Agreement

Terms and Conditions

1.Award of Performance Stock Units. The Company hereby confirms the grant to you, as of the Grant Date and subject to the terms and conditions of this Agreement and the Plan, of an award of Performance Stock Units (the “Units”) in an amount initially equal to the Target Number of Performance Stock Units specified on the cover page of this Agreement. The number of Units that may actually be earned and become eligible to vest pursuant to this Award can be between 0% and 200% of the Target Number of Units, but may not (except for any Dividend Equivalent Units credited to you pursuant to Section 6 below) exceed the Maximum Number of Performance Stock Units specified on the cover page of this Agreement. Each Unit that is earned as a result of the performance goals specified in Exhibit A to this Agreement having been satisfied and which thereafter vests represents the right to receive one Share of the Company’s common stock. Prior to their settlement or forfeiture in accordance with the terms of this Agreement, the Units granted to you will be credited to a performance stock unit account in your name maintained by the Company. This account will be unfunded and maintained for book-keeping purposes only, with the Units simply representing an unfunded and unsecured contingent obligation of the Company.

2. Restrictions Applicable to Units. Neither this Award nor the Units subject to this Award may be sold, assigned, transferred, exchanged or encumbered, voluntarily or involuntarily, other than (i) a transfer upon your death in accordance with your will, by the laws of descent and distribution or pursuant to a beneficiary designation submitted in accordance with Section 6(d) of the Plan, or (ii) pursuant to a domestic relations order. Following any such transfer, this Award shall continue to be subject to the same terms and conditions that were applicable to the Award immediately prior to its transfer. Any attempted transfer in violation of this Section 2 shall be void and without effect. The Units and your right to receive Shares in settlement of any Units under this Agreement shall be subject to forfeiture except to extent the Units have been earned and thereafter vest as provided in Sections 4 and 5.

3. No Shareholder Rights. The Units subject to this Award do not entitle you to any rights of a holder of the Company’s common stock. You will not have any of the rights of a shareholder of the Company in connection with any Units granted or earned pursuant to this Agreement unless and until Shares are issued to you in settlement of earned and vested Units as provided in Section 5.

4. Vesting and Forfeiture of Units. The Units shall vest at the earliest of the following times and to the degree specified.

(a)Scheduled Vesting. The number of Units that have been earned during the Performance Period, as determined by the Committee in accordance with Exhibit A, will vest on the Scheduled Vesting Date, so long as your Service has been continuous from the Grant Date to the Scheduled Vesting Date. For these purposes, the “Scheduled Vesting Date” means the date the Committee certifies (i) the degree to which the applicable performance goals for the Performance Period have been satisfied, and (ii) the number of Units that have been earned during the Performance Period as determined in accordance Exhibit A, which certification shall occur no later than April 10 following the end of the Performance Period.

2

Exhibit 10.1

(b) Death. If your Service terminates by reason of your death prior to the Scheduled Vesting Date, then you will be entitled to have vest on the date your Service terminates a pro rata portion of the Target Number of Units specified on the cover page of this Agreement. The pro rata portion shall be determined by multiplying the Target Number of Units by a fraction whose numerator is the number of complete months during the Performance Period prior to your death and whose denominator is the number of months in the Performance Period.

(c) Retirement. If your Service terminates by reason of your Retirement (as defined below) prior to the Scheduled Vesting Date, then you will be entitled to have vest on the Scheduled Vesting Date a pro rata portion of the Units that would otherwise have been determined to have been earned during the Performance Period in accordance with Exhibit A if your Service had been continuous until the Scheduled Vesting Date. The pro rata portion shall be determined by multiplying the Units that would otherwise have been earned by a fraction whose numerator is the number of complete months during the Performance Period prior to your Retirement and whose denominator is the number of months in the Performance Period. For purposes of this Agreement, “Retirement” means voluntarily terminating Service with the Company at least one year after the Grant Date on the first day of any month at a time when the sum of Participant’s age and years of Service with the Company equals or exceeds 80.

(d) Termination Without Cause. If your Service is terminated by the Company without Cause prior to the Scheduled Vesting Date, then you will be entitled to have vest on the Scheduled Vesting Date a pro rata portion of the Units that would otherwise have been determined to have been earned during the Performance Period in accordance with Exhibit A if your Service had been continuous until the Scheduled Vesting Date. The pro rata portion shall be determined by multiplying the Units that would otherwise have been earned by a fraction whose numerator is the number of complete months during the Performance Period prior to your termination and whose denominator is the number of months in the Performance Period.

(e) Change in Control. If a Change in Control occurs after the Grant Date but before the Scheduled Vesting Date and your Service continues to the date of the Change in Control, then you will be entitled to have vest, as of the date of the Change in Control, the Target Number of Units.

(f) Forfeiture of Unvested Units. To the extent any of Sections 4(a) through (e) is applicable to this Award, any Units that do not vest on the applicable vesting date as provided therein shall immediately be forfeited. If your Service terminates prior to the Scheduled Vesting Date under circumstances other than as set forth in Sections 4(b) through (e), all unvested Units shall immediately be forfeited.

5. Settlement of Units. As soon as practicable after any date on which Units vest (but no later than the 15^th day of the third calendar month following the vesting date), the Company shall cause to be issued and delivered to you (or to your personal representative or your designated beneficiary or estate in the event of your death, as applicable) one Share in payment and settlement of each vested Unit. Delivery of the Shares shall be effected by the issuance of a stock certificate to you, by an appropriate entry in the stock register maintained by the Company’s transfer agent with a notice of issuance provided to you, or by the electronic delivery of the Shares to a brokerage account at Merrill Lynch, or such other broker as may be determined in Company’s sole discretion, and shall be subject to the tax withholding provisions of Section 7 and compliance with all applicable legal requirements as provided in Section 16(c) of the Plan, and shall be in complete satisfaction and settlement of such vested Units. The Company will pay any original issue or transfer taxes with respect to the issue and transfer of Shares to you pursuant to this

3

Exhibit 10.1

Agreement, and all fees and expenses incurred by it in connection therewith. If the Units that vest include a fractional Unit, the Company shall round the number of vested Units to the nearest whole Unit prior to issuance of Shares as provided herein.

6. Dividend Equivalents. If the Company pays cash dividends on its Shares while any Units subject to this Agreement are outstanding, then on the date this Award vests pursuant to Section 4 above, a Total Dividend Equivalent amount will be credited to your performance stock unit account and shall be deemed reinvested in additional Units (“Dividend Equivalent Units”). The Total Dividend Equivalent amount will be determined by multiplying the number of underlying Units determined to have vested by the per share amount of each cash dividend paid on the Company’s common stock with a record date and payment date occurring between the Grant Date and the applicable vesting date, and adding those products together. Each of those products is referred to as a “Dividend Equivalent Amount.” The number of Dividend Equivalent Units to be credited to your performance stock unit account pursuant to this deemed reinvestment will be determined by dividing each Dividend Equivalent Amount by the Fair Market Value of a share of the Company’s common stock on the applicable dividend payment date, and adding those quotients together. Any Dividend Equivalent Units so credited will be fully vested and subject to settlement with the underlying Units as provided in Section 5 above.

7. Tax Consequences and Withholding. No Shares will be delivered to you in settlement of vested Units unless you have made arrangements acceptable to the Company for payment of any federal, state, local or foreign withholding taxes that may be due as a result of the delivery of the Shares. You hereby authorize the Company (or any Affiliate) to satisfy the tax obligation by withholding a number of Shares that would otherwise be issued to you in settlement of the Units and that have a fair market value equal to the amount of such tax obligation, and otherwise agree to satisfy such obligations in accordance with the provisions of Section 14 of the Plan.

8. Notices. Every notice or other communication relating to this Agreement shall be in writing and shall be mailed to or delivered (including electronically) to the party for whom it is intended at such address as may from time to time be designated by it in a notice mailed or delivered to the other party as herein provided. Unless and until some other address is so designated, all notices or communications by you to the Company shall be mailed or delivered to the Company, to the attention of its General Counsel and Vice President, Corporate Secretary at Raven Industries, Inc., P.O. Box 5107, Sioux Falls, South Dakota 57117-5107, lee.magnuson@ravenind.com, and all notices or communications by the Company to you may be given to you personally or may be mailed or, if you are still a Service Provider, emailed to you at the address indicated in the Company's records as your most recent mailing or email address.

9. Additional Provisions.

(a)No Right to Continued Service. This Agreement does not give you a right to continued Service with the Company or any Affiliate, and the Company or any such Affiliate may terminate your Service at any time and otherwise deal with you without regard to the effect it may have upon you under this Agreement.

(b) Governing Plan Document. This Agreement and the Award are subject to all the provisions of the Plan, and to all interpretations, rules and regulations which may, from time to time, be adopted and promulgated by the Committee pursuant to the Plan. If there is any conflict between the provisions of this Agreement and the Plan, the provisions of the Plan will govern.

4

Exhibit 10.1

(c) Governing Law.  This Agreement, the parties’ performance hereunder, and the relationship between them shall be governed by, construed, and enforced in accordance with the laws of the State of South Dakota, without giving effect to the choice of law principles thereof.

(d) Severability. The provisions of this Agreement shall be severable and if any provision of this Agreement is found by any court to be unenforceable, in whole or in part, the remainder of this Agreement shall nevertheless be enforceable and binding on the parties. You also agree that any trier of fact may modify any invalid, overbroad or unenforceable provision of this Agreement so that such provision, as modified, is valid and enforceable under applicable law.

(e) Binding Effect. This Agreement will be binding in all respects on your heirs, representatives, successors and assigns, and on the successors and assigns of the Company.

(f) Section 409A of the Code. The award of Units as provided in this Agreement and any issuance of Shares or payment pursuant to this Agreement are intended to either be exempt from Section 409A of the Code under the short-term deferral exception specified in Treas. Reg. § 1.409A-l(b)(4) or to comply with Section 409A.

(g) Electronic Delivery and Acceptance. The Company may deliver any documents related to this Performance Stock Unit Award by electronic means and request your acceptance of this Agreement by electronic means. You hereby consent to receive all applicable documentation by electronic delivery and to participate in the Plan through an on-line (and/or voice activated) system established and maintained by the Company or the Company’s third-party stock plan administrator.

By signing the cover page of this Agreement or otherwise accepting this Agreement in a manner approved by the Company, you agree to all the terms and conditions described above and in the Plan document.

5

EX-10.2

Exhibit 10.2

RAVEN INDUSTRIES, INC.

2019 EQUITY INCENTIVE PLAN

Restricted Stock Unit Award Agreement

        Raven Industries, Inc. (the “Company”), pursuant to its 2019 Equity Incentive Plan (the “Plan”), hereby grants an award of Restricted Stock Units to you, the Participant named below. The terms and conditions of this Award are set forth in this Restricted Stock Unit Award Agreement (the “Agreement”), consisting of this cover page and the Terms and Conditions on the following pages, and in the Plan document, a copy of which has been provided to you. Any capitalized term that is used but not defined in this Agreement shall have the meaning assigned to it in the Plan as it currently exists or as it is amended in the future.

Name of Participant: [_______________________]
Number of Restricted Stock Units: [_______]		Grant Date:  __________, 20__
Vesting:
Vesting Date	Number of Restricted Stock Units that Vest

By signing below or otherwise evidencing your acceptance of this Agreement in a manner approved by the Company, you agree to all of the terms and conditions contained in this Agreement and in the Plan document. You acknowledge that you have received and reviewed these documents and that they set forth the entire agreement between you and the Company regarding this Award of Restricted Stock Units.

PARTICIPANT: RAVEN INDUSTRIES, INC.

 By:______________________________________

        Title:_____________________________________

Exhibit 10.2

Raven Industries, Inc.

2019 Equity Incentive Plan

Restricted Stock Unit Award Agreement

Terms and Conditions

1.Grant of Restricted Stock Units. The Company hereby confirms the grant to you, as of the Grant Date and subject to the terms and conditions in this Agreement and the Plan, of the number of Restricted Stock Units specified on the cover page of this Agreement (the “Units”). Each Unit represents the right to receive one Share of the Company’s common stock. Prior to their settlement or forfeiture in accordance with the terms of this Agreement, the Units granted to you will be credited to an account in your name maintained by the Company. This account shall be unfunded and maintained for book-keeping purposes only, with the Units simply representing an unfunded and unsecured contingent obligation of the Company.

2. Restrictions Applicable to Units. Neither this Award nor the Units subject to this Award may be sold, assigned, transferred, exchanged or encumbered, voluntarily or involuntarily, other than (i) a transfer upon your death in accordance with your will, by the laws of descent and distribution or pursuant to a beneficiary designation submitted in accordance with Section 6(d) of the Plan, or (ii) pursuant to a domestic relations order. Following any such transfer, this Award shall continue to be subject to the same terms and conditions that were applicable to this Award immediately prior to its transfer. Any attempted transfer in violation of this Section 2 shall be void and without effect. The Units and your right to receive Shares in settlement of the Units under this Agreement shall be subject to forfeiture as provided in Section 5 until satisfaction of the vesting conditions set forth in Section 4.

3. No Shareholder Rights. The Units subject to this Award do not entitle you to any rights of a holder of the Company’s common stock. You will not have any of the rights of a shareholder of the Company in connection with the grant of Units subject to this Agreement unless and until Shares are issued to you upon settlement of the Units as provided in Section 6.

4. Vesting of Units. For purposes of this Agreement, “Vesting Date” means any date, including the scheduled Vesting Date specified on the cover page of this Agreement, on which Units subject to this Agreement vest as provided in this Section 4.

(a)Scheduled Vesting. If you remain a Service Provider continuously from the Grant Date specified on the cover page of this Agreement, then the Units will vest on the Vesting Date specified in the Vesting Schedule.

(b)Accelerated Vesting. The vesting of outstanding Units will be accelerated or continued under the circumstances provided below:

(1)Death. If your Service terminates prior to the Vesting Date due to your death, then a pro rata portion (based on the number of complete months during which you were a Service Provider since the Grant Date as a percentage of the number of months in the vesting period of the Units shall vest as of such termination date.

2

(2)Retirement. If your Service terminates prior to the Vesting Date due to your Retirement (as defined below), then a pro rata portion (based on the number of complete months during which you were a Service Provider since the Grant Date as a percentage of the number of months in the vesting period of the Units shall vest as of such termination date. For purposes of this Agreement, “Retirement” means voluntarily terminating Service with the Company at least one year after the Grant Date on the first day of any month at a time when the sum of Participant’s age and years of Service with the Company equals or exceeds 80.

(3)Termination Without Cause. If your Service is terminated by the Company without Cause prior to the Vesting Date, then a pro rata portion (based on the number of complete months during which you were a Service Provider since the Grant Date as a percentage of the number of months in the vesting period of the Units shall vest as of such termination date.

(4)Change in Control. All unvested Units shall vest in full upon the occurrence of a Change in Control that occurs while you continue to be a Service Provider.

5. Effect of Termination of Service. Except as otherwise provided in accordance with Section 4(b) above, if you cease to be a Service Provider, you will forfeit all unvested Units.

6. Settlement of Units. After any Units vest pursuant to Section 4, the Company shall, as soon as practicable (but no later than the 15^th day of the third calendar month following the Vesting Date), cause to be issued and delivered to you (or to your personal representative or your designated beneficiary or estate in the event of your death, as applicable) one Share in payment and settlement of each vested Unit. Delivery of the Shares shall be effected by the issuance of a stock certificate to you, by an appropriate entry in the stock register maintained by the Company’s transfer agent with a notice of issuance provided to you, or by the electronic delivery of the Shares to a brokerage account with Merrill Lynch, or such other broker as may be determined in Company’s sole discretion, and shall be subject to the tax withholding provisions of Section 8 and compliance with all applicable legal requirements as provided in Section 16(c) of the Plan, and shall be in complete satisfaction and settlement of such vested Units. The Company will pay any original issue or transfer taxes with respect to the issue and transfer of Shares to you pursuant to this Agreement, and all fees and expenses incurred by it in connection therewith. If the Units that vest include a fractional Unit, the Company shall round the number of vested Units to the nearest whole Unit prior to issuance of Shares as provided herein.

7. Dividend Equivalents. If the Company pays cash dividends on its Shares while any Units subject to this Agreement are outstanding, then on each dividend payment date a dividend equivalent dollar amount equal to the number of Units credited to your account pursuant to this Agreement as of the dividend record date times the dollar amount of the cash dividend per Share shall be deemed reinvested in additional Units as of the dividend payment date and such additional Units shall be credited to your account. The number of additional Units so credited shall be determined based on the Fair Market Value of a Share on the dividend payment date. Any additional Units so credited will be subject to the same terms and conditions, including the timing of vesting and settlement, applicable to the underlying Units to which the dividend equivalents relate.

8. Tax Consequences and Withholding. No Shares will be delivered to you in settlement of vested Units unless you have made arrangements acceptable to the Company for payment of any federal, state, local or foreign withholding taxes that may be due as a result of the delivery of the Shares. You hereby authorize the Company (or any Affiliate) to satisfy the tax obligations by withholding a number of Shares that would otherwise be issued to you in settlement of the Units and that have a fair market value

3

equal to the amount of such tax obligation, and otherwise agree to satisfy such obligations in accordance with the provisions of Section 14 of the Plan.

9. Notices. Every notice or other communication relating to this Agreement shall be in writing and shall be mailed to or delivered (including electronically) to the party for whom it is intended at such address as may from time to time be designated by it in a notice mailed or delivered to the other party as herein provided. Unless and until some other address is so designated, all notices or communications by you to the Company shall be mailed or delivered to the Company, to the attention of its General Counsel and Vice President, Corporate Secretary at Raven Industries, Inc., P.O. Box 5107, Sioux Falls, South Dakota 57117-5107, lee.magnuson@ravenind.com, and all notices or communications by the Company to you may be given to you personally or may be mailed or, if you are still a Service Provider, emailed to you at the address indicated in the Company's records as your most recent mailing or email address.

10. Additional Provisions.

(a)No Right to Continued Service. This Agreement does not give you a right to continued Service with the Company or any Affiliate, and the Company or any such Affiliate may terminate your Service at any time and otherwise deal with you without regard to the effect it may have upon you under this Agreement.

(b) Governing Plan Document. This Agreement and the Award are subject to all the provisions of the Plan, and to all interpretations, rules and regulations which may, from time to time, be adopted and promulgated by the Committee pursuant to the Plan. If there is any conflict between the provisions of this Agreement and the Plan, the provisions of the Plan will govern.

(c) Governing Law.  This Agreement, the parties’ performance hereunder, and the relationship between them shall be governed by, construed, and enforced in accordance with the laws of the State of South Dakota, without giving effect to the choice of law principles thereof.

(d) Severability. The provisions of this Agreement shall be severable and if any provision of this Agreement is found by any court to be unenforceable, in whole or in part, the remainder of this Agreement shall nevertheless be enforceable and binding on the parties. You also agree that any trier of fact may modify any invalid, overbroad or unenforceable provision of this Agreement so that such provision, as modified, is valid and enforceable under applicable law.

(e) Binding Effect. This Agreement will be binding in all respects on your heirs, representatives, successors and assigns, and on the successors and assigns of the Company.

(f) Section 409A of the Code. The award of Units as provided in this Agreement and any issuance of Shares or payment pursuant to this Agreement are intended to either be exempt from Section 409A of the Code under the short-term deferral exception specified in Treas. Reg. § 1.409A-l(b)(4) or to comply with Section 409A.

(g) Electronic Delivery and Acceptance. The Company may deliver any documents related to this Restricted Stock Unit Award by electronic means and request your acceptance of this Agreement by electronic means. You hereby consent to receive all applicable documentation by electronic delivery and to participate in the Plan through an on-line (and/or voice activated) system established and maintained by the Company or the Company’s third-party stock plan administrator.

4

By signing the cover page of this Agreement or otherwise accepting this Agreement in a manner approved by the Company, you agree to all the terms and conditions described above and in the Plan document.

5

EX-31.1

Exhibit 31.1

RAVEN INDUSTRIES, INC.

CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO

RULE 13A-14(A) OF THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Daniel A. Rykhus, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Raven Industries, Inc. (the Registrant);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; and

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the Registrant as of, and for, the periods presented in this report;

4. The Registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the Registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal quarter (the Registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting; and

5. The Registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of Registrant's board of directors (or others performing the equivalent function):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal controls over financial reporting.

Dated: November 27, 2019	/s/ Daniel A. Rykhus
	Daniel A. Rykhus
	President and Chief Executive Officer

EX-31.2

Exhibit 31.2

RAVEN INDUSTRIES, INC.

CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO

RULE 13A-14(A) OF THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Steven E. Brazones, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Raven Industries, Inc. (the Registrant);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; and

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the Registrant as of, and for, the periods presented in this report;

4. The Registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the Registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal quarter (the Registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting; and

5. The Registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of Registrant's board of directors (or others performing the equivalent function):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal controls over financial reporting.

Dated: November 27, 2019	/s/ Steven E. Brazones
	Steven E. Brazones
	Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

RAVEN INDUSTRIES, INC.

CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002

The undersigned, Daniel A. Rykhus, President and Chief Executive Officer of Raven Industries, Inc., has executed this Certification in connection with the filing with the Securities and Exchange Commission of Raven Industries, Inc.'s Quarterly Report on Form 10-Q for the fiscal quarter ended October 31, 2019 (the Report).

The undersigned hereby certifies, to his knowledge, that:

•the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

•the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Raven Industries, Inc.

Dated: November 27, 2019	/s/ Daniel A. Rykhus
	Daniel A. Rykhus
	President and Chief Executive Officer

EX-32.2

Exhibit 32.2

RAVEN INDUSTRIES, INC.

CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002

The undersigned, Steven E. Brazones, the Vice President and Chief Financial Officer of Raven Industries, Inc., has executed this Certification in connection with the filing with the Securities and Exchange Commission of Raven Industries, Inc.'s Quarterly Report on Form 10-Q for the fiscal quarter ended October 31, 2019 (the Report).

The undersigned hereby certifies, to his knowledge, that:

•the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

•the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Raven Industries, Inc.

Dated: November 27, 2019	/s/ Steven E. Brazones
	Steven E. Brazones
	Vice President and Chief Financial Officer

XML

Segment Reporting (Tables)

9 Months Ended

Oct. 31, 2019

Segment Reporting [Abstract]

Business segment net sales and operating income results

Business segment financial performance and other information is as follows:

	Three Months Ended				Nine Months Ended
	October 31, 2019		October 31, 2018		October 31, 2019		October 31, 2018
Net sales
Applied Technology	$	28,500	$	29,740	$	97,596	$	100,532
Engineered Films(a)	56,406		58,239		158,214		177,106
Aerostar	15,661		17,031		41,040		41,449
Intersegment eliminations(b)	(34)		(177)		(81)		(441)
Consolidated net sales	$	100,533	$	104,833	$	296,769	$	318,646
Operating income(c)
Applied Technology	$	7,035	$	7,737	$	25,120	$	32,473
Engineered Films	8,474		9,239		24,987		33,241
Aerostar	2,488		3,839		7,427		10,479
Intersegment eliminations	(12)		(37)		(10)		(33)
Total reportable segment income	17,985		20,778		57,524		76,160
General and administrative expenses(c)	(6,653)		(7,166)		(20,501)		(24,388)
Consolidated operating income	$	11,332	$	13,612	$	37,023	$	51,772

^(a) Hurricane recovery film sales were $1,833 and $10,429 for the nine-month periods ended October 31, 2019 and 2018. Hurricane recovery film sales were not significant in the three-month periods ended October 31, 2019 and 2018, respectively.

^(b) Intersegment sales for both fiscal 2020 and 2019 were primarily sales from Engineered Films to Aerostar.

^(c) 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 a deduction from "Total reportable segment income" to reconcile to "Operating income" reported in the Consolidated Statements of Income and Comprehensive Income.

XML

Revenue Contract Asset and Contract Liabilities balances (Details) - Short-term Contract with Customer [Member] - USD ($) $ in Thousands	9 Months Ended
	Oct. 31, 2019	Jan. 31, 2019
Capitalized Contract Cost [Line Items]
Contract with Customer, Asset, before Allowance for Credit Loss	$ 6,998	$ 2,027
Increase (Decrease) in Contract Assets	$ 4,971
Increase (decrease) in contract assets with customers, percentage	245.20%
Contract with Customer, Liability, Current	$ 2,177	$ 1,303
Increase (Decrease) in Contract Liabilities	$ 874
Increase (decrease) in contract liabilities with customers, percentage	67.10%

XML

Subsequent Event, Acquisitions (Details) - Applied Technology [Member] - USD ($) $ in Thousands			3 Months Ended
	Nov. 13, 2019	Nov. 01, 2019	Oct. 31, 2019
Dot Technology [Member]
Subsequent Event, Acquisitions [Line Items]
Payments to Acquire Businesses, Gross			$ 3,000
Subsequent Event [Member]
Subsequent Event, Acquisitions [Line Items]
Payments to Acquire Businesses, Gross	$ 62,000
Subsequent Event [Member] | Smart Ag [Member]
Subsequent Event, Acquisitions [Line Items]
Business Acquisition, Name of Acquired Entity		Smart Ag, Inc.
Subsequent Event [Member] | Dot Technology [Member]
Subsequent Event, Acquisitions [Line Items]
Business Acquisition, Name of Acquired Entity	Dot Technology Corp.

XML

Segment Reporting (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2019	Oct. 31, 2018
Segment Reporting Information [Line Items]
Net sales	$ 100,533	$ 104,833	$ 296,769	$ 318,646
Administrative and general expenses	(6,653)	(7,166)	(20,501)	(24,388)
Operating income	11,332	13,612	37,023	51,772
Applied Technology [Member]
Segment Reporting Information [Line Items]
Net sales	28,500	29,740	97,596	100,532
Operating income	7,035	7,737	25,120	32,473
Engineered Films [Member]
Segment Reporting Information [Line Items]
Net sales	56,406	58,239	158,214	177,106
Operating income	8,474	9,239	24,987	33,241
Engineered Films [Member] | Hurricane Recovery Film [Member]
Segment Reporting Information [Line Items]
Net sales	1,833		10,429
Aerostar [Member]
Segment Reporting Information [Line Items]
Net sales	15,661	17,031	41,040	41,449
Operating income	2,488	3,839	7,427	10,479
Intersegment Eliminations [Member]
Segment Reporting Information [Line Items]
Net sales	(34)	(177)	(81)	(441)
Operating income	(12)	(37)	(10)	(33)
Corporate Segment [Member]
Segment Reporting Information [Line Items]
Net sales	100,533	104,833	296,769	318,646
Operating income	$ 17,985	$ 20,778	$ 57,524	$ 76,160

XML

Income Tax (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2019	Oct. 31, 2018
Income Tax Contingency [Line Items]
Effective tax rate, percent	13.00%	8.60%	14.70%	15.60%
Effective tax rate, excluding discrete items	15.30%	18.70%	18.30%	19.30%
Total Discrete tax benefit (expense), net	$ 268	$ 1,440	$ 1,336	$ 2,129

XML

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Oct. 31, 2019	Oct. 31, 2018
OPERATING ACTIVITIES:
Net income	$ 31,909	$ 48,924
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	12,124	11,273
Change in fair value of acquisition-related contingent consideration	343	585
Gain from sale of equity method investment	0	(5,785)
Deferred income taxes	1,706	869
Share-based compensation expense	3,539	3,108
Other operating activities, net	(229)	(2,327)
Change in operating assets and liabilities:
Accounts receivable	(8,406)	(11,456)
Inventories	1,932	1,932
Other assets	2,592	428
Operating liabilities	1,568	4,757
Net cash provided by operating activities	47,078	52,308
INVESTING ACTIVITIES:
Capital expenditures	(6,143)	(10,421)
Proceeds from sale or maturity of investments	993	7,334
Purchases of investments	(934)	(502)
Proceeds (disbursements) from sale of assets, settlement of liabilities	3,459	832
Other investing activities	(3,208)	(2,042)
Net cash used in investing activities	(5,833)	(4,799)
FINANCING ACTIVITIES:
Dividends paid	(14,001)	(14,000)
Payments for common shares repurchased	(10,781)	0
Payment of acquisition-related contingent liabilities	(1,308)	(1,220)
Restricted stock units vested and issued	(2,358)	(774)
Employee stock options exercises	(706)	(2,635)
Other financing activities	(716)	(151)
Net cash used in financing activities	(29,870)	(18,780)
Effect of exchange rate changes on cash	(68)	(571)
Net increase in cash and cash equivalents	11,307	28,158
Cash and cash equivalents at beginning of year	65,787	40,535
Cash and cash equivalents at end of period	$ 77,094	$ 68,693

XML

Consolidated Balance Sheets (Unaudited) (Parenthetical) (Unaudited) - $ / shares	Oct. 31, 2019	Jan. 31, 2019
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 1	$ 1
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	67,424,000	67,289,000
Treasury Stock, Common, Shares	31,665,000	31,332,000

XML

Subsequent Events (Notes)	9 Months Ended
	Oct. 31, 2019
Subsequent Event [Line Items]
Subsequent Events [Text Block]	SUBSEQUENT EVENTSThe Company has evaluated events up to the filing date of this Quarterly Report on Form 10-Q and concluded that no subsequent events have occurred other than those events disclosed in Note 6 Acquisitions and Divestitures of and Investments in Businesses and Technologies that would require recognition or disclosure in the Notes to the Consolidated Financial Statements.

XML

Income Tax Income Tax Disclosure

9 Months Ended

Oct. 31, 2019

Income Tax Disclosure [Abstract]

Income Tax Disclosure

INCOME TAXES

The Company’s effective tax rate varies from the federal statutory rate primarily due to state and local taxes, research and development tax credit, foreign-derived intangible income deduction, and tax-exempt insurance premiums. The Company’s effective tax rates were as follows:

	Three Months Ended				Nine Months Ended
	October 31, 2019		October 31, 2018		October 31, 2019		October 31, 2018
Effective tax rate	13.0	%	8.6	%	14.7	%	15.6	%

Timing of discrete items was the primary driver of the year-over-year volatility in the effective tax rate for the three- and nine-month periods ended October 31, 2019.

The Company’s effective tax rates, excluding discrete items, in the three-month periods ended October 31, 2019 and 2018, were 15.3 percent and 18.7 percent, respectively. This 3.4 percentage point decrease was driven primarily by a decrease in the Company’s effective tax rate, excluding discrete items, from 19.6 percent for the six-month period ended July 31, 2019, to 18.3 percent for nine-month period ended October 31, 2019.

The Company’s effective tax rates, excluding discrete items, in the nine-month periods ended October 31, 2019 and 2018, were 18.3 percent and 19.3 percent, respectively. This 1 percentage point decrease was driven primarily by a decrease in current year profitability that caused a higher research and development tax credit as a percentage of pre-tax income.

The Company's net favorable discrete tax benefits for the nine-month periods ended October 31, 2019 and 2018 were primarily related to the vesting or settlement of equity awards. The Company's total net favorable discrete tax benefits were as follows:

	Three Months Ended				Nine Months Ended
	October 31, 2019		October 31, 2018		October 31, 2019		October 31, 2018
Discrete tax benefit	$	268	$	1,440	$	1,336	$	2,129

The Company operates both domestically and internationally. As of October 31, 2019, undistributed earnings from the Company's foreign subsidiaries were considered to have been reinvested indefinitely.

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Warranties

9 Months Ended

Oct. 31, 2019

Product Warranties Disclosures [Abstract]

Warranties

WARRANTIES

Accruals necessary for product warranties are estimated based on historical warranty costs and average time elapsed between purchases and returns for each division. Additional accruals are made for any significant, discrete warranty issues. Changes in the warranty accrual were as follows:

	Three Months Ended				Nine Months Ended
	October 31, 2019		October 31, 2018		October 31, 2019		October 31, 2018
Beginning balance	$	1,739	$	1,137	$	890	$	1,163
Change in provision	1,184		521		3,038		1,007
Settlements made	(939)		(807)		(1,944)		(1,319)
Ending balance	$	1,984	$	851	$	1,984	$	851

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Revenue (Notes)

9 Months Ended

Oct. 31, 2019

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer [Text Block]

REVENUE

Disaggregation of Revenues

Revenue is disaggregated by major product category and geography, as we believe these categories best depict how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. The following table includes a reconciliation of the disaggregated revenue by reportable segments. Service revenues are not material and are not separately disclosed.

	Revenue by Product Category
	Three Months Ended October 31, 2019										Three Months Ended October 31, 2018
	ATD		EFD		AERO		ELIM(a)		Total		ATD		EFD		AERO		ELIM(a)		Total
Lighter-than-Air
Domestic	$	—	$	—	$	11,071	$	—	$	11,071	$	—	$	—	$	14,152	$	—	$	14,152
International	—		—		—		—		—		—		—		298		—		298
Plastic Films & Sheeting
Domestic	—		54,673		—		(33)		54,640		—		52,841		—		(177)		52,664
International	—		1,733		—		—		1,733		—		5,398		—		—		5,398
Precision Agriculture Equipment
Domestic	22,957		—		—		(1)		22,956		23,764		—		—		—		23,764
International	5,543		—		—		—		5,543		5,976		—		—		—		5,976
Other
Domestic	—		—		4,577		—		4,577		—		—		2,578		—		2,578
International	—		—		13		—		13		—		—		3		—		3
Totals	$	28,500	$	56,406	$	15,661	$	(34)	$	100,533	$	29,740	$	58,239	$	17,031	$	(177)	$	104,833
	Nine Months Ended October 31, 2019										Nine Months Ended October 31, 2018
	ATD		EFD		AERO		ELIM(a)		Total		ATD		EFD		AERO		ELIM(a)		Total
Lighter-than-Air
Domestic	$	—	$	—	$	26,230	$	—	$	26,230	$	—	$	—	$	31,899	$	—	$	31,899
International	—		—		49		—		49		—		—		834		—		834
Plastic Films & Sheeting
Domestic	—		151,278		—		(80)		151,198		—		163,059		—		(441)		162,618
International	—		6,936		—		—		6,936		—		14,047		—		—		14,047
Precision Agriculture Equipment
Domestic	72,915		—		—		(1)		72,914		76,881		—		—		—		76,881
International	24,681		—		—		—		24,681		23,651		—		—		—		23,651
Other
Domestic	—		—		14,665		—		14,665		—		—		8,698		—		8,698
International	—		—		96		—		96		—		—		18		—		18
Totals	$	97,596	$	158,214	$	41,040	$	(81)	$	296,769	$	100,532	$	177,106	$	41,449	$	(441)	$	318,646

^(a) Intersegment sales for both fiscal 2020 and 2019 were primarily sales from Engineered Films to Aerostar.

Contract Balances

Contract balances consist of contract assets and contract liabilities. Contract assets primarily relate to the Company’s rights to consideration for work completed but not yet billed for at the reporting date, or retainage provisions on billings that have been issued. Contract liabilities primarily relate to consideration received from customers prior to transferring goods or services to the customer. Contract assets and contract liabilities are reported in "Accounts receivable, net" and "Other current liabilities" in the Consolidated Balance Sheets, respectively. 

During the nine months ended October 31, 2019, the Company’s contract assets and liabilities increased by $4,971 and $874, respectively. The increase was primarily a result of the contract terms which include timing of customer payments, timing of invoicing, and progress made on open contracts. Due to the short-term nature of the Company’s contracts, substantially all contract liabilities are recognized as revenue during the twelve months thereafter. Changes in our contract assets and liabilities were as follows:

	October 31, 2019		January 31, 2019		$ Change		% Change
Contract assets	$	6,998	$	2,027	$	4,971	245.2	%
Contract liabilities	$	2,177	$	1,303	$	874	67.1	%

Remaining Performance Obligations

As of October 31, 2019, the Company has no remaining performance obligations related to customer contracts with an original expected duration of one year or more. Revenue recognized from performance obligations satisfied in the prior period during the three- and nine-month period ending October 31, 2019, were not material.

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Net Income per Share (Antidiluted Securities Excluded from Computation) Details - shares	3 Months Ended		9 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2019	Oct. 31, 2018
Earnings Per Share [Abstract]
Antidilutive securities excluded from computation of earnings per share, amount (in options and restricted units)	101,384	0	21,444	50,699

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Summary of Significant Accounting Policies New Accounting Standards (Policies)

9 Months Ended

Oct. 31, 2019

New Accounting Standards [Abstract]

New Accounting Pronouncements and Changes in Accounting Principles [Text Block]

Accounting Standards Adopted

In the fiscal 2020 first quarter, the Company adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2016-02, "Leases (Topic 842)" (ASU 2016-02), issued in February 2016 and the subsequently-issued codification improvements to Topic 842. The primary difference between previous GAAP and ASU 2016-02 is the recognition of lease assets and liabilities by lessees for leases classified as operating leases under previous GAAP. The guidance requires a lessee to recognize a lease liability (to make lease payments) and a right-of-use asset (representing its right to use the underlying asset for the lease term) on the balance sheet with terms greater than 12 months. The Company adopted ASU 2016-02 on a modified retrospective basis for all agreements existing as of February 1, 2019. Prior comparative periods have not been adjusted and continue to be reported and disclosed under ASC Topic 840. This adoption did not have a material impact to the Company. As of February 1, 2019, the Company recognized a right-of-use asset for finance leases and operating leases of $233 and $3,807, respectively and a current and non-current lease liability of $1,446 and $2,571, respectively. As part of the adoption of ASU 2016-02, the Company elected the following practical expedient: short-term recognition exemption for all leases that qualify. Note disclosures required in Topic 842 are reported in Note 11 Leases of the Notes to the Consolidated Financial Statements in this Form 10-Q.

Description of New Accounting Pronouncements Not yet Adopted [Text Block]

New Accounting Standards Not Yet Adopted

In November 2018, the FASB issued ASU No. 2018-18, "Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606" (ASU 2018-18). The amendments in ASU 2018-18 clarify that certain transactions between

participants in collaborative arrangements should be accounted for as revenue under Topic 606, "Revenue from Contracts with Customers," and precludes certain transactions that are not with a customer from using Topic 606. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption of this guidance is permitted in any interim period. The amendments should be applied retrospectively to the date Topic 606 was adopted. The Company is in its final stages of evaluating the impact the adoption of this new guidance will have on the Company's consolidated financial statements.  

In August 2018, the FASB issued ASU No. 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement" (ASU 2018-13). The amendments in ASU 2018-13 remove, modify and add disclosures for companies required to make disclosures about recurring or nonrecurring fair value measurements under Topic 820. The amendments in this update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption of this guidance is permitted. Certain amendments in this guidance are required to be applied prospectively, and others are to be applied retrospectively. The amendments in ASU 2018-13 are disclosure-related only and as such the Company does not expect the adoption of this guidance to have a significant impact on the balances reported in the Company's consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments" (ASU 2016-13). Current GAAP generally delays recognition of the full amount of credit losses until the loss is probable of occurring. The amendments in this guidance eliminate the probable initial recognition threshold and, instead, reflect an entity’s current estimate of all expected credit losses. Previously, when credit losses were measured under GAAP, an entity generally only considered past events and current conditions in measuring the incurred loss. The new standard is effective for annual reporting periods beginning after December 15, 2019. All entities may elect to early adopt ASU 2016-13 for annual reporting periods beginning after December 15, 2018. The adoption of ASU 2016-13 is not expected to have a significant impact on the Company's consolidated financial statements or its note disclosures.

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Warranties (Tables)

9 Months Ended

Oct. 31, 2019

Product Warranties Disclosures [Abstract]

Warranties

Changes in the warranty accrual were as follows:

	Three Months Ended				Nine Months Ended
	October 31, 2019		October 31, 2018		October 31, 2019		October 31, 2018
Beginning balance	$	1,739	$	1,137	$	890	$	1,163
Change in provision	1,184		521		3,038		1,007
Settlements made	(939)		(807)		(1,944)		(1,319)
Ending balance	$	1,984	$	851	$	1,984	$	851

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Dividends and Treasury Stock Tables (Tables)

9 Months Ended

Oct. 31, 2019

Stockholders' Equity Note [Abstract]

Dividends Declared [Table Text Block]

Dividends paid to Raven shareholders were as follows:

	Three Months Ended			Nine Months Ended
	October 31, 2019		October 31, 2018	October 31, 2019		October 31, 2018
Dividends paid(a)	$	4,648	4,674	$	14,001	14,000
Dividends paid per share (in cents per share)(a)	13.0		13.0	39.0		39.0

^(a)There were no declared and unpaid shareholder dividends at October 31, 2019 or 2018.

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Leases Lease Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Oct. 31, 2019	Oct. 31, 2019
Lease Cash flows [Abstract]
Operating Lease, Payments	$ 360	$ 1,082
Finance Lease, Interest Payment on Liability	5	16
Finance Lease, Principal Payments	106	305
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability	13	411
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability	$ 0	$ 0

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Financing Arrangements Letters of Credit Outstanding (Details) - USD ($) $ in Thousands	Oct. 31, 2019	Jan. 31, 2019
Line of Credit Facility [Line Items]
Letters of Credit Outstanding, Amount	$ 314	$ 514

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Employee Postretirement Benefits Employee Postretirement Benefits (Details) - Other Postretirement Benefit Plans, Defined Benefit [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2019	Oct. 31, 2018
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost	$ 7	$ 7	$ 21	$ 21
Interest cost	83	79	250	237
Amortization of actuarial losses	24	32	72	96
Amortization of unrecognized prior service cost (Credit)	(40)	(40)	(120)	(120)
Defined Benefit Plan, Net Periodic Benefit Cost (Credit)	$ 74	$ 78	$ 223	$ 234

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Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Notes)

9 Months Ended

Oct. 31, 2019

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

There have been no material changes to the Company's significant accounting policies as described in the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2019, other than described in the Accounting Standards Adopted section below.

Accounting Pronouncements

Accounting Standards Adopted

In the fiscal 2020 first quarter, the Company adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2016-02, "Leases (Topic 842)" (ASU 2016-02), issued in February 2016 and the subsequently-issued codification improvements to Topic 842. The primary difference between previous GAAP and ASU 2016-02 is the recognition of lease assets and liabilities by lessees for leases classified as operating leases under previous GAAP. The guidance requires a lessee to recognize a lease liability (to make lease payments) and a right-of-use asset (representing its right to use the underlying asset for the lease term) on the balance sheet with terms greater than 12 months. The Company adopted ASU 2016-02 on a modified retrospective basis for all agreements existing as of February 1, 2019. Prior comparative periods have not been adjusted and continue to be reported and disclosed under ASC Topic 840. This adoption did not have a material impact to the Company. As of February 1, 2019, the Company recognized a right-of-use asset for finance leases and operating leases of $233 and $3,807, respectively and a current and non-current lease liability of $1,446 and $2,571, respectively. As part of the adoption of ASU 2016-02, the Company elected the following practical expedient: short-term recognition exemption for all leases that qualify. Note disclosures required in Topic 842 are reported in Note 11 Leases of the Notes to the Consolidated Financial Statements in this Form 10-Q.

New Accounting Standards Not Yet Adopted

In November 2018, the FASB issued ASU No. 2018-18, "Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606" (ASU 2018-18). The amendments in ASU 2018-18 clarify that certain transactions between

participants in collaborative arrangements should be accounted for as revenue under Topic 606, "Revenue from Contracts with Customers," and precludes certain transactions that are not with a customer from using Topic 606. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption of this guidance is permitted in any interim period. The amendments should be applied retrospectively to the date Topic 606 was adopted. The Company is in its final stages of evaluating the impact the adoption of this new guidance will have on the Company's consolidated financial statements.  

In August 2018, the FASB issued ASU No. 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement" (ASU 2018-13). The amendments in ASU 2018-13 remove, modify and add disclosures for companies required to make disclosures about recurring or nonrecurring fair value measurements under Topic 820. The amendments in this update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption of this guidance is permitted. Certain amendments in this guidance are required to be applied prospectively, and others are to be applied retrospectively. The amendments in ASU 2018-13 are disclosure-related only and as such the Company does not expect the adoption of this guidance to have a significant impact on the balances reported in the Company's consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments" (ASU 2016-13). Current GAAP generally delays recognition of the full amount of credit losses until the loss is probable of occurring. The amendments in this guidance eliminate the probable initial recognition threshold and, instead, reflect an entity’s current estimate of all expected credit losses. Previously, when credit losses were measured under GAAP, an entity generally only considered past events and current conditions in measuring the incurred loss. The new standard is effective for annual reporting periods beginning after December 15, 2019. All entities may elect to early adopt ASU 2016-13 for annual reporting periods beginning after December 15, 2018. The adoption of ASU 2016-13 is not expected to have a significant impact on the Company's consolidated financial statements or its note disclosures.

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Selected Balance Sheet Information - USD ($) $ in Thousands	Oct. 31, 2019	Jan. 31, 2019
Accounts receivable, net:
Trade accounts	$ 56,894	$ 53,820
Unbilled receivables	6,421	1,391
Allowance for doubtful accounts	(1,258)	(739)
Accounts receivable, net	62,057	54,472
Inventories:
Finished goods	6,997	7,629
In process	1,268	1,103
Materials	43,716	45,344
Inventories	51,981	54,076
Other current assets:
Insurance policy benefit	73	336
Income tax receivable	1,624	1,045
Receivable from sale of investments	0	1,055
Prepaid Expense and other	3,398	6,300
Other current assets	5,095	8,736
Property, plant and equipment, net:
Property, plant and equipment, net	101,487	106,615
Other Assets (Noncurrent):
Equity investments	1,200	345
Operating Lease, Right-of-Use Asset	2,782	0
Deferred Income Taxes, Noncurrent	17	16
Other	4,796	2,963
Other assets	8,795	3,324
Accrued liabilities:
Salaries and related	4,884	8,244
Benefits	5,229	4,751
Insurance obligations	1,976	1,963
Warranties	1,984	890
Income Taxes	352	328
Other taxes	1,474	2,434
Acquisition-related contingent consideration liability, current	813	1,796
Lease liability, current	2,065	0
Other	2,129	3,072
Accrued liabilities	20,906	23,478
Other liabilities:
Postretirement benefits	7,703	7,678
Acquisition-related contingent consideration liability, long-term	2,143	2,376
Lease liability, noncurrent	1,776	0
Deferred income taxes	3,357	1,659
Uncertain tax positions	2,701	2,670
Other, Noncurrent	4,289	3,852
Other Liabilities, Noncurrent	21,969	18,235
Land [Member]
Property, plant and equipment, net:
Property, plant and equipment	3,117	3,234
Building and Building Improvements [Member]
Property, plant and equipment, net:
Property, plant and equipment	79,719	81,381
Machinery and Equipment [Member]
Property, plant and equipment, net:
Property, plant and equipment	156,530	155,463
Right-of-use Assets, Financing Leases [Member]
Property, plant and equipment, net:
Property, plant and equipment	879	0
Property, plant and equipment, Owned [Member]
Property, plant and equipment, net:
Accumulated depreciation		(133,724)
Property, plant and equipment, net		106,354
Property, plant and equipment, Owned and Right-of-Use Assets for financing lease [Member]
Property, plant and equipment, net:
Accumulated depreciation	(138,758)
Property, plant and equipment, net	101,487
Assets Held under Capital Leases [Member]
Property, plant and equipment, net:
Property, plant and equipment	0	510
Accumulated depreciation	$ 0	(249)
Assets owned or held under capital lease [Member]
Property, plant and equipment, net:
Property, plant and equipment, net		$ 106,615

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Share Based Compensation (Tables)

9 Months Ended

Oct. 31, 2019

Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]

Share-based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block]

The share-based compensation expense was as follows:

	Three Months Ended				Nine Months Ended
	October 31, 2019		October 31, 2018		October 31, 2019		October 31, 2018
Cost of sales	$	98	$	99	$	273	$	282
Research and development expenses	41		32		122		99
Selling, general, and administrative expenses	852		696		3,144		2,727
Total stock-based compensation expense	$	991	$	827	$	3,539	$	3,108

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Revenue (Tables)

9 Months Ended

Oct. 31, 2019

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue [Table Text Block]

Disaggregation of Revenues

Revenue is disaggregated by major product category and geography, as we believe these categories best depict how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. The following table includes a reconciliation of the disaggregated revenue by reportable segments. Service revenues are not material and are not separately disclosed.

	Revenue by Product Category
	Three Months Ended October 31, 2019										Three Months Ended October 31, 2018
	ATD		EFD		AERO		ELIM(a)		Total		ATD		EFD		AERO		ELIM(a)		Total
Lighter-than-Air
Domestic	$	—	$	—	$	11,071	$	—	$	11,071	$	—	$	—	$	14,152	$	—	$	14,152
International	—		—		—		—		—		—		—		298		—		298
Plastic Films & Sheeting
Domestic	—		54,673		—		(33)		54,640		—		52,841		—		(177)		52,664
International	—		1,733		—		—		1,733		—		5,398		—		—		5,398
Precision Agriculture Equipment
Domestic	22,957		—		—		(1)		22,956		23,764		—		—		—		23,764
International	5,543		—		—		—		5,543		5,976		—		—		—		5,976
Other
Domestic	—		—		4,577		—		4,577		—		—		2,578		—		2,578
International	—		—		13		—		13		—		—		3		—		3
Totals	$	28,500	$	56,406	$	15,661	$	(34)	$	100,533	$	29,740	$	58,239	$	17,031	$	(177)	$	104,833
	Nine Months Ended October 31, 2019										Nine Months Ended October 31, 2018
	ATD		EFD		AERO		ELIM(a)		Total		ATD		EFD		AERO		ELIM(a)		Total
Lighter-than-Air
Domestic	$	—	$	—	$	26,230	$	—	$	26,230	$	—	$	—	$	31,899	$	—	$	31,899
International	—		—		49		—		49		—		—		834		—		834
Plastic Films & Sheeting
Domestic	—		151,278		—		(80)		151,198		—		163,059		—		(441)		162,618
International	—		6,936		—		—		6,936		—		14,047		—		—		14,047
Precision Agriculture Equipment
Domestic	72,915		—		—		(1)		72,914		76,881		—		—		—		76,881
International	24,681		—		—		—		24,681		23,651		—		—		—		23,651
Other
Domestic	—		—		14,665		—		14,665		—		—		8,698		—		8,698
International	—		—		96		—		96		—		—		18		—		18
Totals	$	97,596	$	158,214	$	41,040	$	(81)	$	296,769	$	100,532	$	177,106	$	41,449	$	(441)	$	318,646

(a) Intersegment sales for both fiscal 2020 and 2019 were primarily sales from Engineered Films to Aerostar.

Contract with Customer, Asset and Liability [Table Text Block]

Changes in our contract assets and liabilities were as follows:

	October 31, 2019		January 31, 2019		$ Change		% Change
Contract assets	$	6,998	$	2,027	$	4,971	245.2	%
Contract liabilities	$	2,177	$	1,303	$	874	67.1	%

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Financing Arrangements Financing Arrangements (Tables)

9 Months Ended

Oct. 31, 2019

Line of Credit Facility [Line Items]

Schedule of Debt [Table Text Block]

The unamortized debt issuance costs associated with the Credit Agreement were as follows:

	October 31, 2019		January 31, 2019
Unamortized debt issuance costs(a)	$	202	$	132

(a) Unamortized debt issuance costs are amortized over the term of the Credit Agreement and are reported as "Other assets" in the Consolidated Balance Sheets

Schedule of Line of Credit Facilities [Table Text Block]

Letters of credit (LOC) issued and outstanding were as follows:

	October 31, 2019		January 31, 2019
Letters of credit outstanding(a)	$	314	$	514

(a) Any draws required under the LOC would be settled with available cash or borrowings under the Credit Agreement.

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Financing Arrangements Unamortized debt Issuance costs (Details) - USD ($) $ in Thousands	Oct. 31, 2019	Jan. 31, 2019
Line of Credit Facility [Line Items]
Unamortized debt issuance costs	$ 202	$ 132

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Goodwill, Long-lived Assets and Other Intangibles Long-lived Assets and Other Intangibles (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2019	Oct. 31, 2018	Jan. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Long-lived asset impairment loss	$ 0	$ 0	$ 0	$ 0
Finite-Lived Intangible Assets, Gross	31,349		31,349		$ 30,902
Finite-Lived Intangible Assets, Accumulated Amortization	(16,416)		(16,416)		(14,609)
Finite-Lived Intangible Assets, Net	14,933		14,933		16,293
Technology-Based Intangible Assets [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	9,174		9,174		9,203
Finite-Lived Intangible Assets, Accumulated Amortization	(7,591)		(7,591)		(7,216)
Finite-Lived Intangible Assets, Net	1,583		1,583		1,987
Customer-Related Intangible Assets [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	16,073		16,073		15,791
Finite-Lived Intangible Assets, Accumulated Amortization	(6,529)		(6,529)		(5,508)
Finite-Lived Intangible Assets, Net	9,544		9,544		10,283
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	6,102		6,102		5,908
Finite-Lived Intangible Assets, Accumulated Amortization	(2,296)		(2,296)		(1,885)
Finite-Lived Intangible Assets, Net	$ 3,806		$ 3,806		$ 4,023

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Leases Weighted Average Lease Term and Discount rates (Details)	Oct. 31, 2019
Weighted Average Lease Terms and Discount Rate [Abstract]
Operating Lease, Weighted Average Remaining Lease Term	2 years
Finance Lease, Weighted Average Remaining Lease Term	2 years
Operating Lease, Weighted Average Discount Rate, Percent	3.50%
Finance Lease, Weighted Average Discount Rate, Percent	3.50%

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Goodwill, Long-lived Assets and Other Intangibles Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2019	Oct. 31, 2018
Goodwill [Line Items]
Goodwill impairment loss	$ 0	$ 0	$ 0	$ 0
Goodwill [Roll Forward]
Goodwill Beginning balance			50,942
Goodwill, Measurement Period Adjustment			(33)
Goodwill, Foreign Currency Translation Gain (Loss)			(75)
Goodwill Ending balance	50,834		50,834
Applied Technology [Member]
Goodwill [Roll Forward]
Goodwill Beginning balance			17,076
Goodwill, Measurement Period Adjustment			(33)
Goodwill, Foreign Currency Translation Gain (Loss)			(75)
Goodwill Ending balance	16,968		16,968
Engineered Films [Member]
Goodwill [Roll Forward]
Goodwill Beginning balance			33,232
Goodwill, Measurement Period Adjustment			0
Goodwill, Foreign Currency Translation Gain (Loss)			0
Goodwill Ending balance	33,232		33,232
Aerostar [Member]
Goodwill [Roll Forward]
Goodwill Beginning balance			634
Goodwill, Measurement Period Adjustment			0
Goodwill, Foreign Currency Translation Gain (Loss)			0
Goodwill Ending balance	$ 634		$ 634

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Basis of Presentation and Principles of Consolidation (Details)	9 Months Ended
	Oct. 31, 2019 segment
Organization, Consolidation and Presentation of Financial Statements Line Items [Line Items]
Number of operating units	3
Aerostar Integrated Systems [Member]
Organization, Consolidation and Presentation of Financial Statements Line Items [Line Items]
Joint venture, ownership percentage	75.00%

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Revenue Details (Details) $ in Thousands	9 Months Ended
	Oct. 31, 2019 USD ($)
Revenue from Contract with Customer [Abstract]
Performance obligations more than one year	$ 0

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Share Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2019	Oct. 31, 2018
Cost of Sales [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based Payment Arrangement, Expense	$ 98	$ 99	$ 273	$ 282
Research and Development Expense [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based Payment Arrangement, Expense	41	32	122	99
Selling, General and Administrative Expenses [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based Payment Arrangement, Expense	852	696	3,144	2,727
Operating Income (Loss) [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based Payment Arrangement, Expensed and Capitalized, Amount	$ 991	$ 827	$ 3,539	$ 3,108

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Commitments and Contingencies (Details) - Charitable Gift [Member] - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Apr. 30, 2018	Oct. 31, 2019
Loss Contingencies [Line Items]
Long-term Purchase Commitment, Amount		$ 5,000
Loss Contingency Accrual		3,292
Cumulative Loss Contingency Accrual, Payments		1,430
Selling, General and Administrative Expenses [Member]
Loss Contingencies [Line Items]
Loss Contingency, Loss in Period	$ 4,503
Accrued Liabilities [Member]
Loss Contingencies [Line Items]
Loss Contingency, Accrual, Current		710
Other Noncurrent Liabilities [Member]
Loss Contingencies [Line Items]
Loss Contingency, Accrual, Noncurrent		$ 2,582

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Consolidated Statements of Shareholders' Equity (Unaudited) (Parenthetical) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2019	Oct. 31, 2018
Statement of Stockholders' Equity [Abstract]
Common Stock, Dividends, Per Share, Declared	$ 0.13	$ 0.13	$ 0.39	$ 0.39
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax	$ 4	$ 2	$ 11	$ 6

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Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Oct. 31, 2019	Jan. 31, 2019
Current assets
Cash and cash equivalents	$ 77,094	$ 65,787
Accounts receivable, net	62,057	54,472
Inventories	51,981	54,076
Other current assets	5,095	8,736
Total current assets	196,227	183,071
Property, plant and equipment, net	101,487	106,615
Goodwill	50,834	50,942
Amortizable intangible assets, net	14,933	16,293
Other assets	8,795	3,324
TOTAL ASSETS	372,276	360,245
Current liabilities
Accounts payable	11,045	8,272
Accrued liabilities	20,906	23,478
Other current liabilities	2,177	1,303
Total current liabilities	34,128	33,053
Other liabilities	21,969	18,235
Commitments and contingencies (see Note 12)	0	0
Shareholders' equity
Common stock, $1 par value, authorized shares 100,000; issued 67,424 and 67,289, respectively	67,424	67,289
Paid-in capital	60,141	59,655
Retained earnings	303,732	285,969
Accumulated other comprehensive income (loss)	(3,936)	(3,556)
Treasury stock at cost, 31,665 and 31,332 shares, respectively	(111,183)	(100,402)
Total Raven Industries, Inc. shareholders' equity	316,178	308,955
Noncontrolling interest	1	2
Total shareholders' equity	316,179	308,957
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 372,276	$ 360,245

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Commitments and Contingencies Commitments and Contingencies Disclosure

9 Months Ended

Oct. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

COMMITMENTS AND CONTINGENCIES

The Company is involved as a party in lawsuits, claims, regulatory inquiries, or disputes arising in the normal course of its business; potential costs and liabilities of which cannot be determined at this time. Management does not believe the ultimate outcomes of its legal proceedings are likely to be material to its results of operations, financial position, or cash flows. In addition, the Company has insurance policies that provide coverage to various degrees for potential liabilities arising from legal proceedings.

The Company entered into a Gift Agreement ("the Agreement") effective in January 2018 with the South Dakota State University Foundation, Inc. ("the Foundation"). This gift will be used by South Dakota State University (SDSU), located in Brookings, SD, for the establishment of a precision agriculture facility to support SDSU's Precision Agriculture degrees and curriculum. This facility will assist the Company in further collaboration with faculty, staff and students on emerging technology in support of the growing need for precision agriculture practices and tools.

The Agreement states that the Company will make a $5,000 gift to the Foundation, conditional on certain actions. Management concluded that the contingencies related to this gift were substantially met during the three-month period ended April 30, 2018, and a liability had been incurred. As such, $4,503 of selling, general, and administrative expense was recognized in the three-month period ending April 30, 2018, with interest expense to be recognized in periods thereafter. The fair value of this contingency at October 31, 2019, was $3,292 (measured based on the present value of the expected future cash outflows), of which $710 was classified as "Accrued liabilities" and $2,582 was classified as "Other liabilities." As of October 31, 2019, the

Company has made payments related to the commitment totaling $1,430. In addition to commitments disclosed elsewhere in the Notes to the Consolidated Financial Statements, the Company has other unconditional purchase obligations that arise in the normal course of business operations. The majority of these obligations are related to the purchase of raw material inventory for the Applied Technology and Engineered Films divisions.

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Employee Postretirement Benefits

9 Months Ended

Oct. 31, 2019

Retirement Benefits [Abstract]

Employee Postretirement Benefits

EMPLOYEE POSTRETIREMENT BENEFITS

The Company provides postretirement medical and other benefits to certain current and past senior executive officers and senior managers. These plan obligations are unfunded. The components of the net periodic benefit cost for postretirement benefits are as follows:

	Three Months Ended				Nine Months Ended
	October 31, 2019		October 31, 2018		October 31, 2019		October 31, 2018
Service cost	$	7	$	7	$	21	$	21
Interest cost	83		79		250		237
Amortization of actuarial losses	24		32		72		96
Amortization of unrecognized gains in prior service cost	(40)		(40)		(120)		(120)
Net periodic benefit cost	$	74	$	78	$	223	$	234

Postretirement benefit cost components are reclassified in their entirety from accumulated other comprehensive loss to net periodic benefit cost. Service cost is reported in net income as "Cost of sales" or "Selling, general, and administrative expenses" in a manner consistent with the classification of direct labor and personnel costs of the eligible employees. The components of the net periodic benefit cost, other than the service cost component, are classified as a non-operating expense in "Other income (expense), net" on the Consolidated Statements of Income and Comprehensive Income.

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Segment Reporting

9 Months Ended

Oct. 31, 2019

Segment Reporting [Abstract]

Segment Reporting

SEGMENT REPORTING

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. The Company measures the performance of its segments based on their operating income excluding administrative and general expenses. Other income, interest expense, and income taxes are not allocated to individual operating segments. Segment information is reported consistent with the Company's management reporting structure.

Business segment financial performance and other information is as follows:

	Three Months Ended				Nine Months Ended
	October 31, 2019		October 31, 2018		October 31, 2019		October 31, 2018
Net sales
Applied Technology	$	28,500	$	29,740	$	97,596	$	100,532
Engineered Films(a)	56,406		58,239		158,214		177,106
Aerostar	15,661		17,031		41,040		41,449
Intersegment eliminations(b)	(34)		(177)		(81)		(441)
Consolidated net sales	$	100,533	$	104,833	$	296,769	$	318,646
Operating income(c)
Applied Technology	$	7,035	$	7,737	$	25,120	$	32,473
Engineered Films	8,474		9,239		24,987		33,241
Aerostar	2,488		3,839		7,427		10,479
Intersegment eliminations	(12)		(37)		(10)		(33)
Total reportable segment income	17,985		20,778		57,524		76,160
General and administrative expenses(c)	(6,653)		(7,166)		(20,501)		(24,388)
Consolidated operating income	$	11,332	$	13,612	$	37,023	$	51,772

^(a) Hurricane recovery film sales were $1,833 and $10,429 for the nine-month periods ended October 31, 2019 and 2018. Hurricane recovery film sales were not significant in the three-month periods ended October 31, 2019 and 2018, respectively.

^(b) Intersegment sales for both fiscal 2020 and 2019 were primarily sales from Engineered Films to Aerostar.

^(c) 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 a deduction from "Total reportable segment income" to reconcile to "Operating income" reported in the Consolidated Statements of Income and Comprehensive Income.

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Employee Postretirement Benefits Employee Postretirement Benefits (Tables)

9 Months Ended

Oct. 31, 2019

Retirement Benefits [Abstract]

Components of net periodic benefit cost for postretirement plan

The components of the net periodic benefit cost for postretirement benefits are as follows:

	Three Months Ended				Nine Months Ended
	October 31, 2019		October 31, 2018		October 31, 2019		October 31, 2018
Service cost	$	7	$	7	$	21	$	21
Interest cost	83		79		250		237
Amortization of actuarial losses	24		32		72		96
Amortization of unrecognized gains in prior service cost	(40)		(40)		(120)		(120)
Net periodic benefit cost	$	74	$	78	$	223	$	234

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Income Tax Effective tax rate (Tables)

9 Months Ended

Oct. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

The Company’s effective tax rates were as follows:

	Three Months Ended				Nine Months Ended
	October 31, 2019		October 31, 2018		October 31, 2019		October 31, 2018
Effective tax rate	13.0	%	8.6	%	14.7	%	15.6	%

discrete tax benefit (expense) [Table Text Block]

	Three Months Ended				Nine Months Ended
	October 31, 2019		October 31, 2018		October 31, 2019		October 31, 2018
Discrete tax benefit	$	268	$	1,440	$	1,336	$	2,129

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Acquisitions and Divestitures of and Investments in Businesses and Technologies

9 Months Ended

Oct. 31, 2019

Business Combinations [Abstract]

Acquisitions of and Investments in Businesses and Technologies

ACQUISITIONS AND DIVESTITURES OF AND INVESTMENTS IN BUSINESSES AND TECHNOLOGIES

Fiscal year 2020

There were no significant business acquisitions and divestitures or purchases of technologies in the three- and nine-month period ended October 31, 2019.

On October 31, 2019, the Company entered into an agreement to acquire a majority ownership of Dot Technology Corp., ("DOT^®"). DOT^® is located in Regina, Saskatchewan, Canada, and designs autonomous agriculture solutions and manufactures a unique U-shaped agriculture platform to autonomously handle a large variety of agriculture implements. The Company has the option to purchase the remaining noncontrolling interest of DOT^® in ten years following the close of the transaction. The Company deposited approximately $3,000 towards the purchase price of DOT^® in the third quarter of fiscal 2020 and the deposit is reported in "Other assets" and "Other investing activities" on the Consolidated Balance Sheet and Consolidated Statements of Cash Flows, respectively. This transaction closed on November 13, 2019.

In addition, subsequent to October 31, 2019, the Company acquired Smart Ag, Inc., ("Smart Ag^®"). Smart Ag^® is a technology company located in Ames, Iowa, that develops autonomous farming solutions for agriculture. This transaction closed on November 1, 2019.

Both acquisitions will align under the Company's Applied Technology Division and will complement the division's suite of precision ag products and solutions. The aggregate purchase price was approximately $62,000 and will primarily be allocated to intangible assets and goodwill. The Company anticipates completing a majority of the purchase accounting for both acquisitions in the fourth quarter of fiscal 2020.

Fiscal year 2019

On January 1, 2019, the Company completed the acquisition of substantially all of the assets ("AgSync Acquisition") of AgSync Inc. ("AgSync"), an Indiana corporation, headquartered in Wakarusa, Indiana. This acquisition is aligned under the Company’s Applied Technology Division and is expected to enhance its Slingshot^® platform by delivering a more seamless logistics solution for ag retailers, aerial applicators, custom applicators and enterprise farms. The AgSync Acquisition constitutes a business and, as such, was accounted for as a business combination; however, the business combination was not significant enough to warrant pro-forma financial information.

The purchase price was approximately $9,700, which included potential earn-out payments with an estimated fair value of $2,052. The earn-out is contingent upon achieving certain revenue milestones. The purchase price of the business acquired was allocated to the assets acquired and liabilities assumed based on their estimated fair values. The excess of the purchase price over the fair value of the identifiable assets acquired and liabilities assumed is reflected as goodwill, which is fully tax deductible. The Company completed the valuation and the purchase price allocation during the first quarter of fiscal 2020. This resulted in an adjustment in the fiscal 2020 first quarter that increased the purchase price and the estimated fair value of the contingent earn-out payments by approximately $300. The goodwill and identifiable intangible assets recorded as part of the purchase price allocation at October 31, 2019, were $4,526 and $5,700, respectively.

During the first quarter of fiscal 2019, Aerostar sold its client private business for $832, which resulted in an immaterial gain in the three-months ended April 30, 2018. In fiscal 2018, Aerostar actively marketed the sale of its client private business and as such, classified it as held for sale.

In the first quarter of fiscal 2019, the Company sold its ownership interest of approximately 22 percent in Site-Specific Technology Development Group, Inc. (SST) with a carrying value of $1,937. This investment was being accounted for as an equity method investment. Raven received $6,556 in cash at closing which was reported as "Proceeds from sale or maturity of investments" in the Consolidated Statements of Cash Flows. The Company recognized a gain on the sale of $5,785 for the three-months ended April 30, 2018. The gain was reported in "Other income (expense), net" in the Consolidated Statements of Income and Comprehensive Income. The gain included a fifteen percent hold-back provision held in an escrow account which was received in the second quarter of fiscal 2020.

Acquisition-related Contingent Consideration

The Company has contingent liabilities related to the acquisition of AgSync in fiscal 2019 as well as prior acquisitions of Colorado Lining International, Inc. (CLI) in fiscal 2018; Raven Europe B.V. (Raven Europe), formerly named SBG Innovatie BV and its affiliate, Navtronics BVBA (collectively, SBG), in fiscal 2015; and Aerostar Technical Solutions, Inc. (ATS), formerly named Vista Research, Inc. (Vista), completed in fiscal 2012. The fair value of such contingent consideration is estimated as of the acquisition date, and subsequently at the end of each reporting period, using forecasted cash flows. Projecting future cash flows requires the Company to make significant estimates and assumptions regarding future events, conditions, or revenues being achieved under the subject contingent agreement as well as the appropriate discount rate. Such valuation techniques include one or more significant inputs that are not observable (Level 3 fair value measures).

Changes in the fair value of the liability for acquisition-related contingent consideration are as follows:

	Three Months Ended				Nine Months Ended
	October 31, 2019		October 31, 2018		October 31, 2019		October 31, 2018
Beginning balance	$	3,579	$	2,950	$	4,172	$	3,046
Fair value of contingent consideration acquired	—		—		310		—
Change in fair value of the liability	100		182		343		585
Contingent consideration earn-out paid	(723)		(721)		(1,869)		(1,220)
Ending balance	$	2,956	$	2,411	$	2,956	$	2,411
Classification of liability in the consolidated balance sheet
Accrued liabilities	$	813	$	1,764	$	813	$	1,764
Other liabilities, long-term	2,143		647		2,143		647
Balance at October 31	$	2,956	$	2,411	$	2,956	$	2,411

For the AgSync Acquisition, the Company entered into a contingent earn-out agreement, not to exceed $3,500. The earn-out is to be paid annually over three years after the purchase date, contingent upon achieving certain revenue milestones. The Company has made no payments on this potential earn-out liability as of October 31, 2019.

In the acquisition of CLI, the Company entered into a contingent earn-out agreement, not to exceed $2,000. The earn-out is paid annually for three years after the purchase date, contingent upon achieving certain revenue milestones and operational synergies. To date, the Company has paid a total of $1,333 of this potential earn-out liability.

In connection with the acquisition of Raven Europe, the Company entered into a contingent earn-out agreement, not to exceed $2,500, calculated and paid quarterly for ten years after the purchase date, contingent upon achieving certain revenue milestones. To date, the Company has paid a total of $2,146 of this potential earn-out liability.

Related to the acquisition of ATS in 2012, the Company was committed to making annual payments based upon earn-out percentages on specific revenue streams for seven years after the purchase date. The Company made the final payment in the first quarter of fiscal 2020 and has no further contingent obligations related to acquisition of ATS.

Schedule of Business Acquisitions by Acquisition, Contingent Consideration [Table Text Block]

Changes in the fair value of the liability for acquisition-related contingent consideration are as follows:

	Three Months Ended				Nine Months Ended
	October 31, 2019		October 31, 2018		October 31, 2019		October 31, 2018
Beginning balance	$	3,579	$	2,950	$	4,172	$	3,046
Fair value of contingent consideration acquired	—		—		310		—
Change in fair value of the liability	100		182		343		585
Contingent consideration earn-out paid	(723)		(721)		(1,869)		(1,220)
Ending balance	$	2,956	$	2,411	$	2,956	$	2,411
Classification of liability in the consolidated balance sheet
Accrued liabilities	$	813	$	1,764	$	813	$	1,764
Other liabilities, long-term	2,143		647		2,143		647
Balance at October 31	$	2,956	$	2,411	$	2,956	$	2,411

Schedule of Subsequent Events

On October 31, 2019, the Company entered into an agreement to acquire a majority ownership of Dot Technology Corp., ("DOT^®"). DOT^® is located in Regina, Saskatchewan, Canada, and designs autonomous agriculture solutions and manufactures a unique U-shaped agriculture platform to autonomously handle a large variety of agriculture implements. The Company has the option to purchase the remaining noncontrolling interest of DOT^® in ten years following the close of the transaction. The Company deposited approximately $3,000 towards the purchase price of DOT^® in the third quarter of fiscal 2020 and the deposit is reported in "Other assets" and "Other investing activities" on the Consolidated Balance Sheet and Consolidated Statements of Cash Flows, respectively. This transaction closed on November 13, 2019.

In addition, subsequent to October 31, 2019, the Company acquired Smart Ag, Inc., ("Smart Ag^®"). Smart Ag^® is a technology company located in Ames, Iowa, that develops autonomous farming solutions for agriculture. This transaction closed on November 1, 2019.

Both acquisitions will align under the Company's Applied Technology Division and will complement the division's suite of precision ag products and solutions. The aggregate purchase price was approximately $62,000 and will primarily be allocated to intangible assets and goodwill. The Company anticipates completing a majority of the purchase accounting for both acquisitions in the fourth quarter of fiscal 2020.

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Net Income per Share (Calculation of Numerator and Denominator) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2019	Oct. 31, 2018
Numerator:
Net income attributable to Raven Industries, Inc.	$ 9,934	$ 13,032	$ 31,910	$ 48,844
Denominator:
Weighted average common shares outstanding (in shares)	35,785,460	35,952,688	35,893,714	35,890,638
Weighted average fully vested stock units outstanding (in shares)	128,604	104,649	120,691	98,235
Denominator for basic calculation (in shares)	35,914,064	36,057,337	36,014,405	35,988,873
Weighted average common shares outstanding (in shares)	35,785,460	35,952,688	35,893,714	35,890,638
Weighted average fully vested stock units outstanding (in shares)	128,604	104,649	120,691	98,235
Dilutive impact of stock options and restricted units (in shares)	176,850	414,542	236,222	450,429
Denominator for diluted calculation (in shares)	36,090,914	36,471,879	36,250,627	36,439,302
Net income per share - basic (in dollars per share)	$ 0.28	$ 0.36	$ 0.89	$ 1.36
Net income per share - diluted (in dollars per share)	$ 0.28	$ 0.36	$ 0.88	$ 1.34

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Balance Sheet

9 Months Ended

Oct. 31, 2019

Selected Balance Sheet Information [Abstract]

Components of selected balance sheet items

Following are the components of selected items from the Consolidated Balance Sheets:

	October 31, 2019		January 31, 2019
Accounts receivable, net:
Trade accounts	$	56,894	$	53,820
Unbilled receivables	6,421		1,391
Allowance for doubtful accounts	(1,258)		(739)
	$	62,057	$	54,472
Inventories:
Finished goods	6,997		7,629
In process	1,268		1,103
Materials	43,716		45,344
	$	51,981	$	54,076
Other current assets:
Insurance policy benefit	73		336
Income tax receivable	1,624		1,045
Receivable from sale of investment	—		1,055
Prepaid expenses and other	3,398		6,300
	$	5,095	$	8,736
Property, plant and equipment, net:(a)
Land	$	3,117	$	3,234
Buildings and improvements	79,719		81,381
Machinery and equipment	156,530		155,463
Financing lease right-of-use assets	879		—
Accumulated depreciation	(138,758)		(133,724)
	101,487		106,354
Property, plant and equipment subject to capital leases:
Machinery and equipment	—		510
Accumulated amortization for capitalized leases	—		(249)
	$	101,487	$	106,615
Other assets:
Equity investments	$	1,200	$	345
Operating lease right-of-use assets	2,782		—
Deferred income taxes	17		16
Other	4,796		2,963
	$	8,795	$	3,324
Accrued liabilities:
Salaries and related	$	4,884	$	8,244
Benefits	5,229		4,751
Insurance obligations	1,976		1,963
Warranties	1,984		890
Income taxes	352		328
Other taxes	1,474		2,434
Acquisition-related contingent consideration	813		1,796
Lease liability	2,065		—
Other	2,129		3,072
	$	20,906	$	23,478
Other liabilities:
Postretirement benefits	$	7,703	$	7,678
Acquisition-related contingent consideration	2,143		2,376
Lease liability	1,776		—
Deferred income taxes	3,357		1,659
Uncertain tax positions	2,701		2,670
Other	4,289		3,852
	$	21,969	$	18,235

^(a) The amount of assets held for sale at October 31, 2019, and January 31, 2019, were not material.

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Leases (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Oct. 31, 2019 USD ($)	Oct. 31, 2019 USD ($)
Lessee, Lease, Description [Line Items]
Lessee, Operating Lease, Renewal Term	10 years	10 years
Financing Lease [Member]
Lessee, Lease, Description [Line Items]
Finance Lease, Depreciation of Right-of-Use Asset,	$ 106	$ 305
Finance Lease, Interest Expense on Lease Liability	5	16
Lessee, total financing lease costs	111	321
Operating Lease [Member]
Lessee, Lease, Description [Line Items]
Operating Lease, Cost	360	1,082
Short-term Lease, Cost	119	325
Total Operating Lease Cost	479	1,407
Leasing Arrangement [Member]
Lessee, Lease, Description [Line Items]
Lease, Cost	$ 590	$ 1,728
Minimum [Member]
Lessee, Lease, Description [Line Items]
Lessee, Operating Lease, Term of Contract	1 year	1 year
Maximum [Member]
Lessee, Lease, Description [Line Items]
Lessee, Operating Lease, Term of Contract	6 years	6 years

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Warranties (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2019	Oct. 31, 2018
Product Warranty Accrual [Roll Forward]
Beginning balance	$ 1,739	$ 1,137	$ 890	$ 1,163
Change in provision	1,184	521	3,038	1,007
Settlements made	(939)	(807)	(1,944)	(1,319)
Ending balance	$ 1,984	$ 851	$ 1,984	$ 851

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Dividends and Treasury Stock (Details) - USD ($)	3 Months Ended		9 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2019	Oct. 31, 2018	Jan. 31, 2015
Stockholders' Equity Note [Abstract]
Stock Repurchase Program, Authorized Amount	$ 75,000,000		$ 75,000,000		$ 40,000,000
Shares repurchased, Treasury Stock	169,474	0	332,651	0
Payments for Repurchase of Common Stock	$ 5,000,000	$ 0	$ 10,781,000	$ 0
Unpaid repurchases of common stock	0	0	0	0
Stock Repurchase Program, Remaining Authorized Repurchase Amount	17,179,000		17,179,000
Payments of Ordinary Dividends, Common Stock	$ 4,648,000	$ 4,674,000	$ 14,001,000	$ 14,000,000

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Leases Operating and Financing Lease Obligations (Details) $ in Thousands	Oct. 31, 2019 USD ($)
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year	$ 450
Lessee, Operating Lease, Liability, Payments, Due Year Two	1,846
Lessee, Operating Lease, Liability, Payments, Due Year Three	677
Lessee, Operating Lease, Liability, Payments, Due Year Four	314
Lessee, Operating Lease, Liability, Payments, Due Year Five	98
Lessee, Operating Lease, Liability, Payments, Due after Year Five	0
Lessee, Operating Lease, Liability, Payments, Due	3,385
Lessee, Operating Lease, Liability, Undiscounted Excess Amount	(144)
Operating Lease, Liability	3,241
Finance Lease, Liability, Payments, Remainder of Fiscal Year	110
Finance Lease, Liability, Payments, Due Year Two	250
Finance Lease, Liability, Payments, Due Year Three	160
Finance Lease, Liability, Payments, Due Year Four	84
Finance Lease, Liability, Payments, Due Year Five	21
Finance Lease, Liability, Payments, Due after Year Five	0
Finance Lease, Liability, Payment, Due	625
Finance Lease, Liability, Undiscounted Excess Amount	(25)
Finance Lease, Liability	$ 600

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Revenue Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2019	Oct. 31, 2018
Disaggregation of Revenue [Line Items]
Net sales	$ 100,533	$ 104,833	$ 296,769	$ 318,646
Applied Technology [Member]
Disaggregation of Revenue [Line Items]
Net sales	28,500	29,740	97,596	100,532
Aerostar [Member]
Disaggregation of Revenue [Line Items]
Net sales	15,661	17,031	41,040	41,449
Engineered Films [Member]
Disaggregation of Revenue [Line Items]
Net sales	56,406	58,239	158,214	177,106
All Segments [Member]
Disaggregation of Revenue [Line Items]
Net sales	100,533	104,833	296,769	318,646
UNITED STATES | Lighter-than-air [Member]
Disaggregation of Revenue [Line Items]
Net sales	11,071	14,152	26,230	31,899
UNITED STATES | Plastic Films and Sheeting [Member]
Disaggregation of Revenue [Line Items]
Net sales	54,640	52,664	151,198	162,618
UNITED STATES | Precision Agriculture [Member]
Disaggregation of Revenue [Line Items]
Net sales	22,956	23,764	72,914	76,881
UNITED STATES | Other Product [Member]
Disaggregation of Revenue [Line Items]
Net sales	4,577	2,578	14,665	8,698
UNITED STATES | Applied Technology [Member] | Precision Agriculture [Member]
Disaggregation of Revenue [Line Items]
Net sales	22,957	23,764	72,915	76,881
UNITED STATES | Aerostar [Member] | Lighter-than-air [Member]
Disaggregation of Revenue [Line Items]
Net sales	11,071	14,152	26,230	31,899
UNITED STATES | Aerostar [Member] | Other Product [Member]
Disaggregation of Revenue [Line Items]
Net sales	4,577	2,578	14,665	8,698
UNITED STATES | Engineered Films [Member] | Plastic Films and Sheeting [Member]
Disaggregation of Revenue [Line Items]
Net sales	54,673	52,841	151,278	163,059
Non-US [Member] | Lighter-than-air [Member]
Disaggregation of Revenue [Line Items]
Net sales	0	298	49	834
Non-US [Member] | Plastic Films and Sheeting [Member]
Disaggregation of Revenue [Line Items]
Net sales	1,733	5,398	6,936	14,047
Non-US [Member] | Precision Agriculture [Member]
Disaggregation of Revenue [Line Items]
Net sales	5,543	5,976	24,681	23,651
Non-US [Member] | Other Product [Member]
Disaggregation of Revenue [Line Items]
Net sales	13	3	96	18
Non-US [Member] | Applied Technology [Member] | Precision Agriculture [Member]
Disaggregation of Revenue [Line Items]
Net sales	5,543	5,976	24,681	23,651
Non-US [Member] | Aerostar [Member] | Lighter-than-air [Member]
Disaggregation of Revenue [Line Items]
Net sales	0	298	49	834
Non-US [Member] | Aerostar [Member] | Other Product [Member]
Disaggregation of Revenue [Line Items]
Net sales	13	3	96	18
Non-US [Member] | Engineered Films [Member] | Plastic Films and Sheeting [Member]
Disaggregation of Revenue [Line Items]
Net sales	1,733	5,398	6,936	14,047
Consolidation, Eliminations [Member]
Disaggregation of Revenue [Line Items]
Net sales	(34)	(177)	(81)	(441)
Consolidation, Eliminations [Member] | UNITED STATES | Plastic Films and Sheeting [Member]
Disaggregation of Revenue [Line Items]
Net sales	(33)	(177)	(80)	(441)
Consolidation, Eliminations [Member] | UNITED STATES | Precision Agriculture [Member]
Disaggregation of Revenue [Line Items]
Net sales	(1)	0	(1)	0
Consolidation, Eliminations [Member] | Non-US [Member] | Plastic Films and Sheeting [Member]
Disaggregation of Revenue [Line Items]
Net sales	$ 0	$ 0	$ 0	$ 0

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Acquisitions and Divestitures of and Investments in Businesses and Technologies Acquisition-related Contingent Consideration (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2019	Oct. 31, 2018
Acquisition-related contingent consideration [Roll Forward]
Acquisition-related contingent consideration, Beginning Balance	$ 3,579	$ 2,950	$ 4,172	$ 3,046
Fair Value Contingent Consideration Acquisition of a Business	0	0	310	0
Change in fair value of acquisition-related contingent consideration	100	182	343	585
Contingent consideration earn-out paid	(723)	(721)	(1,869)	(1,220)
Acquisition-related contingent consideration, Ending Balance	2,956	2,411	2,956	2,411
Acquisition-related contingent consideration liability, current					$ 813	$ 1,764
Acquisition-related contingent consideration liability, Noncurrent					2,143	647
Business Combination, Contingent Consideration, Liability	$ 3,579	$ 2,950	$ 4,172	$ 3,046	2,956	$ 2,411
Applied Technology [Member] | AgSync [Member]
Business Combination, Contingent Consideration Arrangements [Abstract]
Contingent Consideration Term in Years			3 years
Contingent consideration, potential cash payment					3,500
Business acquisition contingent consideration cumulative paid			$ 0
Applied Technology [Member] | Raven Europe [Member]
Business Combination, Contingent Consideration Arrangements [Abstract]
Contingent Consideration Term in Years			10 years
Contingent consideration, potential cash payment					2,500
Business acquisition contingent consideration cumulative paid			$ 2,146
Aerostar [Member] | ATS [Member]
Business Combination, Contingent Consideration Arrangements [Abstract]
Contingent Consideration Term in Years			7 years
Contingent obligation remaining					0
Engineered Films [Member] | CLI [Member]
Business Combination, Contingent Consideration Arrangements [Abstract]
Contingent Consideration Term in Years			3 years
Contingent consideration, potential cash payment					$ 2,000
Business acquisition contingent consideration cumulative paid			$ 1,333

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Dividends and Treasury Stock

9 Months Ended

Oct. 31, 2019

Stockholders' Equity Note [Abstract]

Dividends and Treasury Stock

DIVIDENDS AND TREASURY STOCK

Dividends paid to Raven shareholders were as follows:

	Three Months Ended			Nine Months Ended
	October 31, 2019		October 31, 2018	October 31, 2019		October 31, 2018
Dividends paid(a)	$	4,648	4,674	$	14,001	14,000
Dividends paid per share (in cents per share)(a)	13.0		13.0	39.0		39.0

^(a)There were no declared and unpaid shareholder dividends at October 31, 2019 or 2018.

On November 3, 2014, the Company announced that its Board of Directors ("Board") had authorized a $40,000 stock buyback program. Since that time, the Board has provided additional authorizations to increase the total amount authorized under the program to $75,000. This authorization remains in place until the authorized spending limit is reached or such authorization is revoked by the Board.

Pursuant to these authorizations, the Company repurchased 169,474 shares for $5,000 in the three-month period ended October 31, 2019. The Company repurchased 332,651 shares for $10,781 in the nine-month period ended October 31, 2019.

There were no shares repurchased in the three- and nine-month periods ended October 31, 2018. There were no share repurchases unpaid at October 31, 2019, or October 31, 2018. The remaining dollar value authorized for share repurchases at October 31, 2019, is $17,179.

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Financing Arrangements Financing Arrangements

9 Months Ended

Oct. 31, 2019

Debt Disclosure [Abstract]

Financing Arrangements

FINANCING ARRANGEMENTS

The Company entered into a credit facility on September 20, 2019, with Bank of America, N. A., as administrative agent, and Wells Fargo Bank, National Association (the Credit Agreement). The Credit Agreement provides for a syndicated senior revolving credit facility up to $100,000 with a maturity date of September 20, 2022. Loan proceeds may be utilized by Raven for strategic business purposes, such as business acquisitions, and for net working capital needs.

This new Credit Agreement replaces the Company's previous Credit Agreement which was scheduled to mature in April 2020. The Company was able to take advantage of more favorable pricing with the new Credit Agreement. The unamortized debt issuance costs associated with the Credit Agreement were as follows:

	October 31, 2019		January 31, 2019
Unamortized debt issuance costs(a)	$	202	$	132

^(a) Unamortized debt issuance costs are amortized over the term of the Credit Agreement and are reported as "Other assets" in the Consolidated Balance Sheets.

Loans or borrowings defined under the Credit Agreement bear interest and fees at varying rates and terms defined in the Credit Agreement based on the type of borrowing as defined. The Credit Agreement includes annual administrative and unborrowed capacity fees. The Credit Agreement also contains customary affirmative and negative covenants, including those related to financial reporting and notifications, limits on levels of indebtedness and liens, investments, mergers and acquisitions, affiliate transactions, sales of assets, restrictive agreements, and change in control as defined in the Credit Agreement. Financial covenants include an interest coverage ratio and funded indebtedness to earnings before interest, taxes, depreciation, and amortization as defined in the Credit Agreement.

Letters of credit (LOC) issued and outstanding were as follows:

	October 31, 2019		January 31, 2019
Letters of credit outstanding(a)	$	314	$	514

^(a) Any draws required under the LOC would be settled with available cash or borrowings under the Credit Agreement.

There were no borrowings under the new or prior Credit Agreement for any of the fiscal periods covered by this Quarterly Report on Form 10-Q. Availability under the Credit Agreement for borrowings as of October 31, 2019, was $100,000.

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Balance Sheet Information

9 Months Ended

Oct. 31, 2019

Selected Balance Sheet Information [Abstract]

Selected Balance Sheet Information

SELECTED BALANCE SHEET INFORMATION

Following are the components of selected items from the Consolidated Balance Sheets:

	October 31, 2019		January 31, 2019
Accounts receivable, net:
Trade accounts	$	56,894	$	53,820
Unbilled receivables	6,421		1,391
Allowance for doubtful accounts	(1,258)		(739)
	$	62,057	$	54,472
Inventories:
Finished goods	6,997		7,629
In process	1,268		1,103
Materials	43,716		45,344
	$	51,981	$	54,076
Other current assets:
Insurance policy benefit	73		336
Income tax receivable	1,624		1,045
Receivable from sale of investment	—		1,055
Prepaid expenses and other	3,398		6,300
	$	5,095	$	8,736
Property, plant and equipment, net:(a)
Land	$	3,117	$	3,234
Buildings and improvements	79,719		81,381
Machinery and equipment	156,530		155,463
Financing lease right-of-use assets	879		—
Accumulated depreciation	(138,758)		(133,724)
	101,487		106,354
Property, plant and equipment subject to capital leases:
Machinery and equipment	—		510
Accumulated amortization for capitalized leases	—		(249)
	$	101,487	$	106,615
Other assets:
Equity investments	$	1,200	$	345
Operating lease right-of-use assets	2,782		—
Deferred income taxes	17		16
Other	4,796		2,963
	$	8,795	$	3,324
Accrued liabilities:
Salaries and related	$	4,884	$	8,244
Benefits	5,229		4,751
Insurance obligations	1,976		1,963
Warranties	1,984		890
Income taxes	352		328
Other taxes	1,474		2,434
Acquisition-related contingent consideration	813		1,796
Lease liability	2,065		—
Other	2,129		3,072
	$	20,906	$	23,478
Other liabilities:
Postretirement benefits	$	7,703	$	7,678
Acquisition-related contingent consideration	2,143		2,376
Lease liability	1,776		—
Deferred income taxes	3,357		1,659
Uncertain tax positions	2,701		2,670
Other	4,289		3,852
	$	21,969	$	18,235

^(a) The amount of assets held for sale at October 31, 2019, and January 31, 2019, were not material.

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Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2019	Oct. 31, 2018
Income Statement [Abstract]
Net sales	$ 100,533	$ 104,833	$ 296,769	$ 318,646
Cost of sales	70,229	72,180	200,061	211,387
Gross profit	30,304	32,653	96,708	107,259
Research and development expenses	7,662	6,478	22,000	17,914
Selling, general, and administrative expenses	11,310	12,563	37,685	37,573
Operating income	11,332	13,612	37,023	51,772
Other income (expense), net	84	674	398	6,214
Income before income taxes	11,416	14,286	37,421	57,986
Income tax expense	1,483	1,230	5,512	9,062
Net income	9,933	13,056	31,909	48,924
Net income (loss) attributable to the noncontrolling interest	(1)	24	(1)	80
Net income attributable to Raven Industries, Inc.	$ 9,934	$ 13,032	$ 31,910	$ 48,844
Net income per common share:
Basic (in dollars per share)	$ 0.28	$ 0.36	$ 0.89	$ 1.36
Diluted (in dollars per share)	$ 0.28	$ 0.36	$ 0.88	$ 1.34
Comprehensive income (loss):
Net income	$ 9,933	$ 13,056	$ 31,909	$ 48,924
Other comprehensive income (loss):
Foreign currency translation	(40)	(325)	(343)	(1,162)
Postretirement benefits, net of income tax benefit of $4, $2, $11, and $6 respectively	(12)	(6)	(37)	(18)
Other comprehensive income (loss), net of tax	(52)	(331)	(380)	(1,180)
Comprehensive income (loss)	9,881	12,725	31,529	47,744
Comprehensive income (loss) attributable to noncontrolling interest	(1)	24	(1)	80
Comprehensive income (loss) attributable to Raven Industries, Inc.	9,882	12,701	31,530	47,664
Other comprehensive income, postretirement benefits, income tax (expense) benefit	$ 4	$ 2	$ 11	$ 6

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Dividends and Treasury Stock Dividends paid (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2019	Oct. 31, 2018
Stockholders' Equity Note [Abstract]
Payments of Ordinary Dividends, Common Stock	$ 4,648	$ 4,674	$ 14,001	$ 14,000
Cash dividends paid per common share (in dollars per share)	$ 0.130	$ 0.130	$ 0.390	$ 0.390
Dividends Payable	$ 0	$ 0	$ 0	$ 0

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Leases Prior Year Future Minimum Lease Payments (Details) $ in Thousands	Jan. 31, 2019 USD ($)
Prior Year Operating Lease Future Minimum Payments [Abstract]
Operating Leases, Future Minimum Payments Due, Next Twelve Months	$ 2,213
Operating Leases, Future Minimum Payments, Due in Two Years	1,939
Operating Leases, Future Minimum Payments, Due in Three Years	728
Operating Leases, Future Minimum Payments, Due in Four Years	356
Operating Leases, Future Minimum Payments, Due in Five Years	140
Operating Leases, Future Minimum Payments, Due Thereafter	0
Operating Leases, Future Minimum Payments Due	5,376
Capital Leases, Future Minimum Payments Due, Next Twelve Months	182
Capital Leases, Future Minimum Payments Due in Two Years	102
Capital Leases, Future Minimum Payments Due in Three Years	44
Capital Leases, Future Minimum Payments Due in Four Years	2
Capital Leases, Future Minimum Payments Due in Five Years	0
Capital Leases, Future Minimum Payments Due Thereafter	0
Capital Leases, Future Minimum Payments Due	330
Capital Leases, Future Minimum Payments, Executory Costs	(14)
Capital Leases, Future Minimum Payments, Interest Included in Payments	(32)
Capital Lease Obligations	$ 284

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Summary of Significant Accounting Policies Effect of adopting new accounting guidance (Details) - USD ($) $ in Thousands	Oct. 31, 2019	Feb. 01, 2019	Jan. 31, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Finance Lease, Right-of-Use Asset		$ 233
Right-of Use Assets, Operating Leases	$ 2,782	3,807	$ 0
Operating and Financing Lease, Liability, Current	2,065	1,446	0
Operating and Financing Lease Obligations, Noncurrent	$ 1,776	$ 2,571	$ 0

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Acquisitions and Divestitures of and Investments in Businesses and Technologies Business Combinations (Details) - USD ($) $ in Thousands			3 Months Ended			6 Months Ended	9 Months Ended
	Jan. 01, 2019	Feb. 05, 2018	Oct. 31, 2019	Apr. 30, 2019	Apr. 30, 2018	Jul. 31, 2018	Oct. 31, 2019	Oct. 31, 2018
Business Combination, Description [Abstract]
Business Combination, Consideration Transferred			$ 0				$ 0
Variable Interest Entity Disclosure [Abstract]
Proceeds from sale or maturity of investments							993	$ 7,334
Gain from sale of equity method investment							0	$ 5,785
Aerostar [Member]
Business Combination, Description [Abstract]
Proceeds from disposal of Aerostar client private business					$ 832
Applied Technology [Member] | SST [Member]
Variable Interest Entity Disclosure [Abstract]
Equity Method Investment, Ownership Percentage					22.00%
Equity Method Investment, Additional Information		SST
Equity Method Investments					$ 1,937
Proceeds from sale or maturity of investments		$ 6,556
Applied Technology [Member] | AgSync [Member]
Business Combination, Description [Abstract]
Business Acquisition, Name of Acquired Entity	AgSync Inc.
Business Combination, Consideration Transferred	$ 9,700
Fair Value of Business Acquisition Contingent Consideration - at acquisition			2,052				2,052
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Consideration Transferred				$ 300
Goodwill			4,526				4,526
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles			$ 5,700				$ 5,700
Other Nonoperating Income (Expense) [Member] | Applied Technology [Member] | SST [Member]
Variable Interest Entity Disclosure [Abstract]
Gain from sale of equity method investment						$ 5,785

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Share Based Compensation

9 Months Ended

Oct. 31, 2019

Share-based Payment Arrangement, Noncash Expense [Abstract]

Share Based Compensation

SHARE-BASED COMPENSATION

Share-based compensation expense is recognized based on the fair value of the share-based awards expected to vest during the period.

The share-based compensation expense was as follows:

	Three Months Ended				Nine Months Ended
	October 31, 2019		October 31, 2018		October 31, 2019		October 31, 2018
Cost of sales	$	98	$	99	$	273	$	282
Research and development expenses	41		32		122		99
Selling, general, and administrative expenses	852		696		3,144		2,727
Total stock-based compensation expense	$	991	$	827	$	3,539	$	3,108

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Leases (Notes)

9 Months Ended

Oct. 31, 2019

Leases [Abstract]

Leases of Lessee Disclosure [Text Block]

LEASES

The Company enters into operating and finance lease contracts related to facilities, vehicles and equipment. Operating leases are primarily related to facilities to support production, research and development, and sales efforts. Finance leases are primarily related to vehicles and equipment to support general business operations. Lease payments are typically fixed and carry lease terms of one to six years, some of which have an option to terminate or extend up to an additional ten years. For purposes of the quantitative disclosures below related to the calculation of operating and finance leases, lease terms did not include options to terminate or extend, as the Company is reasonably certain it would not exercise the options. Most of the Company's leases do not contain a purchase option, material residual value guarantee, or material restrictive covenants.

The Company is primarily a lessee in all lease arrangements but may become a lessor and lease or sublease certain assets to other entities if not fully utilized. These lessor activities are not material and are not separately disclosed.

To determine whether a contract is or contains a lease, the Company assessed its right to control the use of the identified asset, whether explicitly or implicitly stated, for a period of time while considering all facts and circumstances for each individual arrangement. The Company also has leases with non-lease components which are separately stated within the agreement and not included in the recognition of the right-of use asset and lease liability balances.

The discount rate used to calculate the present value of the lease liabilities is based upon the implied rate within each contract. If the rate is unknown or cannot be determined, the Company uses an incremental borrowing rate, which is determined by the length of the contract, asset class, and the Company's borrowing rates as of the commencement date of the contract.

Components of Company lease costs, including operating, finance, and short-term leases are included in the table below. Depreciation of right-of-use assets, operating lease costs, and short-term lease costs are reported in net income as "Cost of sales," "Research and development expenses," or "Selling, general, and administrative expenses," depending on what business function the asset primarily supports. Interest on lease liabilities are classified as a non-operating expense in "Other income (expense), net" on the Consolidated Statements of Income and Comprehensive Income.

	Three Months Ended		Nine Months Ended
	October 31, 2019		October 31, 2019
Lease Costs:
Finance Leases
Depreciation of right-of-use assets	$	106	$	305
Interest on lease liabilities	5		16
Total finance lease cost	$	111	$	321
Operating Leases
Operating lease cost	$	360	$	1,082
Short-term lease cost	119		325
Total operating lease cost	$	479	$	1,407
Total finance and operating lease cost	$	590	$	1,728

Supplemental unaudited balance sheet information related to operating and finance leases include:

	October 31, 2019
Operating Leases
Operating lease right-of-use assets	$	2,782
Current lease liability	$	1,734
Non-current lease liability	1,507
Total operating lease liabilities	$	3,241
Finance Leases
Property, plant and equipment, at cost	$	879
Accumulated depreciation	(279)
Property, plant and equipment, net	$	600
Current lease liability	$	331
Non-current lease liability	269
Total finance lease liabilities	$	600

Weighted average remaining lease terms and discount rates include:

	October 31, 2019
Weighted Average Remaining Lease Term:
Operating leases	2 years
Finance leases	2 years
Weighted Average Discount Rate:
Operating leases	3.5	%
Finance leases	3.5	%

Supplemental unaudited cash flow information related to operating and finance leases include:

	Three Months Ended		Nine Months Ended
	October 31, 2019		October 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	360	$	1,082
Operating cash flows from finance leases	5		16
Financing cash flows from finance leases	106		305
Right-of-use assets obtained in exchange for lease obligations:
Finance leases	$	13	$	411
Operating leases	—		—

Future operating and finance lease obligations that have not yet commenced as of October 31, 2019, were immaterial and excluded from the lease liability schedule below accordingly.

	October 31, 2019
	Operating Leases		Finance Leases
Remainder of Fiscal 2020	$	450	$	110
Fiscal 2021	1,846		250
Fiscal 2022	677		160
Fiscal 2023	314		84
Fiscal 2024	98		21
Thereafter	—		—
Total lease payments	$	3,385	$	625
Less imputed interest	(144)		(25)
Total lease liabilities	$	3,241	$	600

Prior to the Company's adoption of ASU 2016-02 in the first quarter of fiscal year 2020, future minimum lease payments reported in the Company’s Annual Report on Form 10-K for the year ended January 31, 2019, were as follows:

	January 31, 2019
	Operating Leases		Capital Leases
Fiscal 2020	$	2,213	$	182
Fiscal 2021	1,939		102
Fiscal 2022	728		44
Fiscal 2023	356		2
Fiscal 2024	140		—
Thereafter	—		—
Total lease payments	$	5,376	$	330
Less amount representing estimated executory costs such as taxes, license and insurance including profit thereon			(14)
Less amounts representing interest			(32)
Present value of net minimum lease payments			$	284

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Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	$1 Par Common Stock [Member]	Paid-in Capital [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Retained Earnings [Member]	Raven Industries, Inc. Equity [Member]	Non-controlling Interest [Member]
Balance at beginning of period at Jan. 31, 2018	$ 276,066	$ 67,124	$ 59,143	$ (100,402)	$ (2,573)	$ 252,772	$ 276,064	$ 2
Treasury stock at beginning of period (in shares) at Jan. 31, 2018				31,332,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	48,924					48,844	48,844	80
Other comprehensive income (loss):
Cumulative foreign currency translation adjustment	(1,162)				(1,162)		(1,162)
Postretirement benefits reclassified from accumulated other comprehensive income (loss) after tax (expense) benefit	(18)				(18)		(18)
Reclassification due to ASU 2018-02 adoption	0				(280)	280	0
Cash dividends	(14,000)		151			(14,151)	(14,000)
Shares issued on stock options exercised, net of shares withheld for employee taxes	(2,635)	113	(2,748)				(2,635)
Shares issued on vesting of stock units, net of shares withheld for employee taxes	$ (774)	48	(822)				(774)
Shares repurchased, Treasury Stock	0
Share-based compensation	$ 3,108		3,108				3,108
Balance at end of period at Oct. 31, 2018	309,509	67,285	58,832	$ (100,402)	(4,033)	287,745	309,427	82
Treasury stock at end of period (in shares) at Oct. 31, 2018				31,332,000
Balance at beginning of period at Jul. 31, 2018	302,110	67,229	59,489	$ (100,402)	(3,702)	279,438	302,052	58
Treasury stock at beginning of period (in shares) at Jul. 31, 2018				31,332,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	13,056					13,032	13,032	24
Other comprehensive income (loss):
Cumulative foreign currency translation adjustment	(325)				(325)		(325)
Postretirement benefits reclassified from accumulated other comprehensive income (loss) after tax (expense) benefit	(6)				(6)		(6)
Cash dividends	(4,674)		51			(4,725)	(4,674)
Shares issued on stock options exercised, net of shares withheld for employee taxes	(1,384)	50	(1,434)				(1,384)
Shares issued on vesting of stock units, net of shares withheld for employee taxes	$ (95)	6	(101)				(95)
Shares repurchased, Treasury Stock	0
Share-based compensation	$ 827		827				827
Balance at end of period at Oct. 31, 2018	309,509	67,285	58,832	$ (100,402)	(4,033)	287,745	309,427	82
Treasury stock at end of period (in shares) at Oct. 31, 2018				31,332,000
Balance at beginning of period at Jan. 31, 2019	308,957	67,289	59,655	$ (100,402)	(3,556)	285,969	308,955	2
Treasury stock at beginning of period (in shares) at Jan. 31, 2019				31,332,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	31,909					31,910	31,910	(1)
Other comprehensive income (loss):
Cumulative foreign currency translation adjustment	(343)				(343)		(343)
Postretirement benefits reclassified from accumulated other comprehensive income (loss) after tax (expense) benefit	(37)				(37)		(37)
Cash dividends	(14,001)		146			(14,147)	(14,001)
Shares issued on stock options exercised, net of shares withheld for employee taxes	(706)	29	(735)				(706)
Shares issued on vesting of stock units, net of shares withheld for employee taxes	$ (2,358)	106	(2,464)				(2,358)
Shares repurchased, Treasury Stock	332,651			333,000
Stock Repurchased and Retired During Period, Value	$ (10,781)			$ (10,781)			(10,781)
Share-based compensation	3,539	0	3,539				3,539
Balance at end of period at Oct. 31, 2019	316,179	67,424	60,141	$ (111,183)	(3,936)	303,732	316,178	1
Treasury stock at end of period (in shares) at Oct. 31, 2019				31,665,000
Balance at beginning of period at Jul. 31, 2019	314,978	67,420	59,127	$ (106,183)	(3,884)	298,496	314,976	2
Treasury stock at beginning of period (in shares) at Jul. 31, 2019				31,496,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	9,933					9,934	9,934	(1)
Other comprehensive income (loss):
Cumulative foreign currency translation adjustment	(40)				(40)		(40)
Postretirement benefits reclassified from accumulated other comprehensive income (loss) after tax (expense) benefit	(12)				(12)		(12)
Cash dividends	(4,648)		50			(4,698)	(4,648)
Shares issued on stock options exercised, net of shares withheld for employee taxes	15		15				15
Shares issued on vesting of stock units, net of shares withheld for employee taxes	$ (38)	4	(42)				(38)
Shares repurchased, Treasury Stock	169,474			169,000
Stock Repurchased and Retired During Period, Value	$ (5,000)			$ (5,000)			(5,000)
Share-based compensation	991		991				991
Balance at end of period at Oct. 31, 2019	$ 316,179	$ 67,424	$ 60,141	$ (111,183)	$ (3,936)	$ 303,732	$ 316,178	$ 1
Treasury stock at end of period (in shares) at Oct. 31, 2019				31,665,000

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Document and Entity Information - shares	9 Months Ended
	Oct. 31, 2019	Nov. 22, 2019
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Oct. 31, 2019
Document Transition Report	false
Entity File Number	001-07982
Entity Registrant Name	RAVEN INDUSTRIES, INC.
Entity Central Index Key	0000082166
Current Fiscal Year End Date	--01-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Entity Incorporation, State or Country Code	SD
Entity Tax Identification Number	46-0246171
Entity Address, Address Line One	205 East 6th Street, P.O. Box 5107
Entity Address, City or Town	Sioux Falls
Entity Address, State or Province	SD
Entity Address, Postal Zip Code	57117-5107
City Area Code	605
Local Phone Number	336-2750
Title of 12(g) Security	Common Stock, $1 par value
Trading Symbol	RAVN
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Amendment Flag	false
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		35,760,477
Entity Shell Company	false

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Net Income per Share

9 Months Ended

Oct. 31, 2019

Earnings Per Share [Abstract]

Net Income per Share

NET INCOME PER SHARE

Basic net income per share is computed by dividing net income by the weighted average common shares and fully vested stock units outstanding. Diluted net income per share is computed by dividing net income by the weighted average common and common equivalent shares outstanding, which includes the shares issuable upon exercise of employee stock options (net of shares assumed purchased with the option proceeds), stock units and restricted stock units outstanding. Performance share awards are included in the diluted calculation based upon what would be issued if the end of the most recent reporting period was the end of the term of the award.

Certain outstanding options and restricted stock units were excluded from the diluted net income per share calculations because their effect would have been anti-dilutive under the treasury stock method. The options and restricted stock units excluded from the diluted net income per share calculation were as follows:

	Three Months Ended		Nine Months Ended
	October 31, 2019	October 31, 2018	October 31, 2019	October 31, 2018
Anti-dilutive options and restricted stock units	101,384	—	21,444	50,699

The computation of earnings per share is presented below:

	Three Months Ended				Nine Months Ended
	October 31, 2019		October 31, 2018		October 31, 2019		October 31, 2018
Numerator:
Net income attributable to Raven Industries, Inc.	$	9,934	$	13,032	$	31,910	$	48,844
Denominator:
Weighted average common shares outstanding	35,785,460		35,952,688		35,893,714		35,890,638
Weighted average fully vested stock units outstanding	128,604		104,649		120,691		98,235
Denominator for basic calculation	35,914,064		36,057,337		36,014,405		35,988,873
Weighted average common shares outstanding	35,785,460		35,952,688		35,893,714		35,890,638
Weighted average fully vested stock units outstanding	128,604		104,649		120,691		98,235
Dilutive impact of stock options and restricted stock units	176,850		414,542		236,222		450,429
Denominator for diluted calculation	36,090,914		36,471,879		36,250,627		36,439,302
Net income per share ─ basic	$	0.28	$	0.36	$	0.89	$	1.36
Net income per share ─ diluted	$	0.28	$	0.36	$	0.88	$	1.34

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Goodwill, Long-lived Assets and Other Intangibles (Tables)

9 Months Ended

Oct. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill [Table Text Block]

The changes in the carrying amount of goodwill by reporting unit were as follows:

	Applied Technology		Engineered Films		Aerostar		Total
Balance at January 31, 2019	$	17,076	$	33,232	$	634	$	50,942
Changes due to business combinations	(33)		—		—		(33)
Foreign currency translation adjustment	(75)		—		—		(75)
Balance at October 31, 2019	$	16,968	$	33,232	$	634	$	50,834

Schedule of Finite-Lived Intangible Assets [Table Text Block]

The following table provides the gross carrying amount and related accumulated amortization of definite-lived intangible assets:

	October 31, 2019						January 31, 2019
			Accumulated						Accumulated
	Amount		amortization		Net		Amount		amortization		Net
Existing technology	$	9,174	$	(7,591)	$	1,583	$	9,203	$	(7,216)	$	1,987
Customer relationships	16,073		(6,529)		9,544		15,791		(5,508)		10,283
Patents and other intangibles	6,102		(2,296)		3,806		5,908		(1,885)		4,023
Total	$	31,349	$	(16,416)	$	14,933	$	30,902	$	(14,609)	$	16,293

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Leases (Tables)

9 Months Ended

Oct. 31, 2019

Leases [Abstract]

Lease, Cost [Table Text Block]

Components of Company lease costs, including operating, finance, and short-term leases are included in the table below. Depreciation of right-of-use assets, operating lease costs, and short-term lease costs are reported in net income as "Cost of sales," "Research and development expenses," or "Selling, general, and administrative expenses," depending on what business function the asset primarily supports. Interest on lease liabilities are classified as a non-operating expense in "Other income (expense), net" on the Consolidated Statements of Income and Comprehensive Income.

	Three Months Ended		Nine Months Ended
	October 31, 2019		October 31, 2019
Lease Costs:
Finance Leases
Depreciation of right-of-use assets	$	106	$	305
Interest on lease liabilities	5		16
Total finance lease cost	$	111	$	321
Operating Leases
Operating lease cost	$	360	$	1,082
Short-term lease cost	119		325
Total operating lease cost	$	479	$	1,407
Total finance and operating lease cost	$	590	$	1,728

Lessee, Operating Lease, Disclosure [Table Text Block]

Supplemental unaudited balance sheet information related to operating and finance leases include:

	October 31, 2019
Operating Leases
Operating lease right-of-use assets	$	2,782
Current lease liability	$	1,734
Non-current lease liability	1,507
Total operating lease liabilities	$	3,241
Finance Leases
Property, plant and equipment, at cost	$	879
Accumulated depreciation	(279)
Property, plant and equipment, net	$	600
Current lease liability	$	331
Non-current lease liability	269
Total finance lease liabilities	$	600

Weighted average remaining lease terms and discount rates include:

	October 31, 2019
Weighted Average Remaining Lease Term:
Operating leases	2 years
Finance leases	2 years
Weighted Average Discount Rate:
Operating leases	3.5	%
Finance leases	3.5	%

Supplemental unaudited cash flow information related to operating and finance leases include:

	Three Months Ended		Nine Months Ended
	October 31, 2019		October 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	360	$	1,082
Operating cash flows from finance leases	5		16
Financing cash flows from finance leases	106		305
Right-of-use assets obtained in exchange for lease obligations:
Finance leases	$	13	$	411
Operating leases	—		—

Lessee, Operating Lease, Liability, Maturity [Table Text Block]

Future operating and finance lease obligations that have not yet commenced as of October 31, 2019, were immaterial and excluded from the lease liability schedule below accordingly.

	October 31, 2019
	Operating Leases		Finance Leases
Remainder of Fiscal 2020	$	450	$	110
Fiscal 2021	1,846		250
Fiscal 2022	677		160
Fiscal 2023	314		84
Fiscal 2024	98		21
Thereafter	—		—
Total lease payments	$	3,385	$	625
Less imputed interest	(144)		(25)
Total lease liabilities	$	3,241	$	600

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

Prior to the Company's adoption of ASU 2016-02 in the first quarter of fiscal year 2020, future minimum lease payments reported in the Company’s Annual Report on Form 10-K for the year ended January 31, 2019, were as follows:

	January 31, 2019
	Operating Leases		Capital Leases
Fiscal 2020	$	2,213	$	182
Fiscal 2021	1,939		102
Fiscal 2022	728		44
Fiscal 2023	356		2
Fiscal 2024	140		—
Thereafter	—		—
Total lease payments	$	5,376	$	330
Less amount representing estimated executory costs such as taxes, license and insurance including profit thereon			(14)
Less amounts representing interest			(32)
Present value of net minimum lease payments			$	284

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Basis of Presentation and Principles of Consolidation

9 Months Ended

Oct. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation and Principles of Consolidation

BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION

Raven Industries, Inc. ("the Company" or "Raven") is a diversified technology company providing a variety of products to customers within the industrial, agricultural, geomembrane, construction, commercial lighter-than-air and aerospace/defense markets. The Company is comprised of three unique operating units, or divisions, classified into reportable segments: Applied Technology, Engineered Films, and Aerostar.

The accompanying interim unaudited consolidated financial statements, which includes the accounts of Raven and its wholly-owned or controlled subsidiaries, net of intercompany balances and transactions, has been prepared by the Company in accordance with generally accepted accounting principles in the United States (GAAP) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (SEC). Accordingly, these financial statements do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary to fairly present this financial information have been included. These financial statements should be read in conjunction with the audited consolidated financial statements and the accompanying notes included in the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2019.

Financial results for the interim three- and nine-month period ended October 31, 2019, are not necessarily indicative of the results that may be expected for the year ending January 31, 2020. The January 31, 2019, consolidated balance sheet was derived from audited financial statements but does not include all disclosures required in an annual report on Form 10-K. Preparing financial statements in conformity with GAAP requires management to make certain estimates and assumptions. These affect the reported amounts of assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Noncontrolling interests represent capital contributions, income and loss attributable to the owners of less than wholly-owned consolidated entities. The Company owns a 75% interest in an entity consolidated under the Aerostar business segment. Given the Company's controlling financial interest, the accounts of the business venture have been consolidated with the accounts of the Company, and a noncontrolling interest has been recorded for the noncontrolling investor interest in the net assets and operations of the business venture.

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Tables

9 Months Ended

Oct. 31, 2019

Earnings Per Share [Abstract]

Schedule of antidilutive securities excluded from computation of earnings per share

The options and restricted stock units excluded from the diluted net income per share calculation were as follows:

	Three Months Ended		Nine Months Ended
	October 31, 2019	October 31, 2018	October 31, 2019	October 31, 2018
Anti-dilutive options and restricted stock units	101,384	—	21,444	50,699

Schedule of calculation of numerator and denominator in earnings per share

The computation of earnings per share is presented below:

	Three Months Ended				Nine Months Ended
	October 31, 2019		October 31, 2018		October 31, 2019		October 31, 2018
Numerator:
Net income attributable to Raven Industries, Inc.	$	9,934	$	13,032	$	31,910	$	48,844
Denominator:
Weighted average common shares outstanding	35,785,460		35,952,688		35,893,714		35,890,638
Weighted average fully vested stock units outstanding	128,604		104,649		120,691		98,235
Denominator for basic calculation	35,914,064		36,057,337		36,014,405		35,988,873
Weighted average common shares outstanding	35,785,460		35,952,688		35,893,714		35,890,638
Weighted average fully vested stock units outstanding	128,604		104,649		120,691		98,235
Dilutive impact of stock options and restricted stock units	176,850		414,542		236,222		450,429
Denominator for diluted calculation	36,090,914		36,471,879		36,250,627		36,439,302
Net income per share ─ basic	$	0.28	$	0.36	$	0.89	$	1.36
Net income per share ─ diluted	$	0.28	$	0.36	$	0.88	$	1.34

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Goodwill, Long-lived Assets and Other Intangibles Goodwill, Long-lived Assets and Other Intangibles (Notes)

9 Months Ended

Oct. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill Impairment Loss and Other Charges

GOODWILL, LONG-LIVED ASSETS, AND OTHER CHARGES

Goodwill

Management assesses goodwill for impairment annually during the fourth quarter and between annual tests whenever a triggering event indicates there may be an impairment. Impairment tests of goodwill are done at the reporting unit level. There were no goodwill impairment losses reported in the three- and nine-month periods ending October 31, 2019 and 2018, respectively.

The changes in the carrying amount of goodwill by reporting unit were as follows:

	Applied Technology		Engineered Films		Aerostar		Total
Balance at January 31, 2019	$	17,076	$	33,232	$	634	$	50,942
Changes due to business combinations	(33)		—		—		(33)
Foreign currency translation adjustment	(75)		—		—		(75)
Balance at October 31, 2019	$	16,968	$	33,232	$	634	$	50,834

Long-lived Assets and Other Intangibles

The Company assesses the recoverability of long-lived assets, including definite-lived intangibles and property, plant, and equipment, if events or changes in circumstances indicate that an asset might be impaired. For long-lived and intangible assets, management performs impairment reviews by asset group. Management periodically assesses for triggering events and discusses any significant changes in the utilization of long-lived assets. For purposes of recognition and measurement of an impairment loss, a long-lived asset is grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities.

When performing long-lived asset testing, the fair values of assets are determined based on valuation techniques using the best available information. Such valuations are derived from valuation techniques in which one or more significant inputs are not observable (Level 3 fair value measures). An impairment loss is recognized when the carrying amount is not recoverable and exceeds the fair value of the asset.

The following table provides the gross carrying amount and related accumulated amortization of definite-lived intangible assets:

	October 31, 2019						January 31, 2019
			Accumulated						Accumulated
	Amount		amortization		Net		Amount		amortization		Net
Existing technology	$	9,174	$	(7,591)	$	1,583	$	9,203	$	(7,216)	$	1,987
Customer relationships	16,073		(6,529)		9,544		15,791		(5,508)		10,283
Patents and other intangibles	6,102		(2,296)		3,806		5,908		(1,885)		4,023
Total	$	31,349	$	(16,416)	$	14,933	$	30,902	$	(14,609)	$	16,293

There were no long-lived asset impairment losses reported in the three- and nine-month period ending October 31, 2019 and 2018, respectively.

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Leases Balance Sheet Information (Details) - USD ($) $ in Thousands	Oct. 31, 2019	Feb. 01, 2019	Jan. 31, 2019
Lessee, Lease, Description [Line Items]
Operating Lease, Right-of-Use Asset	$ 2,782	$ 3,807	$ 0
Operating Lease, Liability, Current	1,734
Operating Lease, Liability, Noncurrent	1,507
Operating Lease, Liability	3,241
Property, plant and equipment, net	101,487		$ 106,615
Finance Lease, Liability, Current	331
Finance Lease, Liability, Noncurrent	269
Finance Lease, Liability	600
Right of Use Asset, Financing Lease [Member]
Lessee, Lease, Description [Line Items]
Property, plant and equipment	879
Accumulated depreciation	(279)
Property, plant and equipment, net	$ 600

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Financing Arrangements (Details) - Bank of America [Member] - USD ($) $ in Thousands	9 Months Ended
	Oct. 31, 2019	Sep. 20, 2019	Oct. 31, 2018
Line of Credit Facility [Line Items]
Line of Credit Facility, Initiation Date	Sep. 20, 2019
Borrowing capacity under line of credit		$ 100,000
Maturity date of the line of credit	Sep. 20, 2022
Borrowing outstanding under line of credit	$ 0		$ 0
Remaining borrowing capacity under the line of credit	$ 100,000