Revenue Revenue

12 Months Ended

Jan. 31, 2020

Revenue from Contract with Customer [Abstract]


NOTE 5			REVENUE

Nature of goods and services

The Company is comprised of three unique operating divisions, classified into reportable business segments: Applied Technology, Engineered Films, and Aerostar. The following is a description of principal activities, separated by segment, from which the Company generates revenue. Service revenues and contract losses are not material and are not separately disclosed. Furthermore, the Company primarily acts as a principal in transactions and recognizes revenue on a gross basis for which it is entitled from its customers.

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. Customers can purchase precision agriculture equipment individually or in large quantities. For purchases made in large quantities, the Company accounts for each piece of equipment separately, as each is a distinct performance obligation from which the customer derives benefit. The stand-alone selling prices are determined based on the prices at which the Company charges other customers for similar products in similar circumstances. Kits or bundles, which can consist of various pieces of equipment, are shipped together and therefore allocation of transaction price does not impact timing of revenue recognition. In the normal course of business the customer agrees to a fixed price and revenue is recognized when control has transferred to the customer.

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. The majority of transactions within Engineered Films are considered non-customized product-only sales. The Company accounts for each product separately, as each is a distinct performance obligation from which the customer derives benefit. The stand-alone selling prices are determined based on the prices at which the Company charges other customers for similar products in similar circumstances. In the normal course of business, the customer agrees to a fixed price and revenue is recognized when control has transferred to the customer.

The remaining transactions within Engineered Films are related to installation and/or customized product sales. Installation revenues are recognized over time using the cost incurred input method (i.e., costs incurred to date relative to total estimated costs at completion) because of continuous transfer of control to customers. For customized product-only sales, the Company recognizes revenue over time by applying an output method, such as units delivered, to measure progress.

Aerostar

Aerostar serves the aerospace and defense and commercial lighter-than-air markets. Aerostar's core products include high-altitude stratospheric platforms, technical services, 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. Aerostar pursues product and support services contracts with U.S. government agencies. Product sales to customers for which the division does not continuously transfer control are recognized based on a point-in-time. Contracts with customers which include elements of service, and are considered to be single performance obligations, are recognized over time. The stand-alone selling prices are determined based on the prices at which the Company charges other customers for similar products or services in similar circumstances. In the normal course of business the customer agrees to a fixed price. For revenues recognized at a point-in-time, the Company recognizes revenue when control has transferred to the customer. Certain lighter-than-air contracts are recognized over time using the cost incurred input method. The remaining transactions are recognized over time applying an output method, such as units delivered, to measure progress.

Disaggregation of Revenues

In the following table, revenue is disaggregated by major product category and geography as the Company believes these categories best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. The table also includes a reconciliation of the disaggregated revenue for all segments.


	Revenue by Product Category
	For the year ended January 31, 2020
	ATD		EFD		AERO		ELIM^(a)		Total
Lighter-than-Air
Domestic	$	—	$	—	$	36,535	$	—	$	36,535
International	—		—		52		—		52
Plastic Films & Sheeting
Domestic	—		187,087		—		(90)		186,997
International	—		10,632		—		—		10,632
Precision Agriculture Equipment
Domestic	99,137		—		—		(2)		99,135
International	31,323		—		—		—		31,323
Other
Domestic	—		—		17,731		—		17,731
International	—		—		125		—		125
Totals	$	130,460	$	197,719	$	54,443	$	(92)	$	382,530

	For the year ended January 31, 2019
	ATD		EFD		AERO		ELIM^(a)		Total
Lighter-than-Air
Domestic	$	—	$	—	$	37,866	$	—	$	37,866
International	—		—		932		—		932
Plastic Films & Sheeting
Domestic	—		208,882		—		(512)		208,370
International	—		17,692		—		—		17,692
Precision Agriculture Equipment
Domestic	100,051		—		—		(10)		100,041
International	29,698		—		—		—		29,698
Other
Domestic	—		—		12,062		—		12,062
International	—		—		7		—		7
Totals	$	129,749	$	226,574	$	50,867	$	(522)	$	406,668

	For the year ended January 31, 2018
	ATD		EFD		AERO		ELIM^(a)		Total
Lighter-than-Air
Domestic	$	—	$	—	$	24,956	$	—	$	24,956
International	—		—		93		—		93
Plastic Films & Sheeting
Domestic	—		201,330		—		(584)		200,746
International	—		11,968		—		—		11,968
Precision Agriculture Equipment
Domestic	95,249		—		—		—		95,249
International	29,439		—		—		—		29,439
Other
Domestic	—		—		14,810		—		14,810
International	—		—		56		—		56
Totals	$	124,688	$	213,298	$	39,915	$	(584)	$	377,317

^(a)Intersegment sales for fiscal years 2020, 2019 and 2018 were primarily sales from Engineered Films to Aerostar.

Contract Balances

Contract balances include contract assets and contract liabilities that are recorded when the Company enters into a contract with a customer. Contract assets primarily relate to the Company’s rights to consideration for work completed but not billed (unbilled receivables) at the reporting date, or retainage provisions on billings that have been issued. Contract assets are converted to receivables when the right to collect becomes unconditional. The Company's contract assets reported at January 31, 2020 and 2019 primarily relate to Engineered Films' geomembrane installation services and service contracts for Aerostar's lighter-than air products and radar processing systems. Contract assets are reported in "Accounts receivable, net" in the Consolidated Balance Sheets.

Contract liabilities consist of customer advances and deferred revenue. Contract liabilities primarily relate to consideration received from customers prior to transferring goods or services to the customer. Contract liabilities are reported in "Other current liabilities" in the Consolidated Balance Sheets.

The changes in contract assets and liabilities were as follows:


	January 31, 2020		January 31, 2019		$ Change		% Change
Contract assets	$	7,525	$	2,027	$	5,498	271.2	%

Contract liabilities	$	2,288	$	1,303	$	985	75.6	%

During the twelve months ended January 31, 2020, the Company’s contract assets increased by $5,498 and contract liabilities increased by $985, primarily as a result of the contract terms which include timing of customer payments, timing of invoicing, and progress made on open contracts. The Company's contract assets at January 31, 2020, are primarily unbilled receivables that will be invoiced in first quarter of next year. The Company's contract liabilities at January 31, 2020, include customer advances that will substantially all convert to revenue recognized during the next fiscal year. Due to the short-term nature of the Company’s contracts, substantially all of the contract assets that existed as of January 31, 2019, were converted to accounts receivable. In addition the Company's contract liabilities that existed as of January 31, 2019, were recognized as revenue during fiscal 2020.

Remaining performance obligations

As of January 31, 2020, the Company has no remaining performance obligations related to customer contracts that had an original expected duration of one year or more.