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As Of Filer Filing For·On·As Docs:Size 12/18/20 Toro Co. 10-K 10/31/20 133:15M |
Document/Exhibit Description Pages Size 1: 10-K Annual Report HTML 1.88M 2: EX-2.9 Plan of Acquisition, Reorganization, Arrangement, HTML 44K Liquidation or Succession 3: EX-4.5 Instrument Defining the Rights of Security Holders HTML 45K 4: EX-21 Subsidiaries List HTML 50K 5: EX-23.1 Consent of Expert or Counsel HTML 36K 6: EX-31.1 Certification -- §302 - SOA'02 HTML 39K 7: EX-31.2 Certification -- §302 - SOA'02 HTML 39K 8: EX-32 Certification -- §906 - SOA'02 HTML 37K 15: R1 Cover Page HTML 98K 16: R2 Consolidated Statements of Earnings HTML 92K 17: R3 Consolidated Statements of Comprehensive Income HTML 60K 18: R4 Consolidated Statements of Comprehensive Income HTML 43K (Parenthetical) 19: R5 Consolidated Balance Sheets HTML 145K 20: R6 Consolidated Balance Sheets (Parenthetical) HTML 62K 21: R7 Consolidated Statements of Cash Flows HTML 126K 22: R8 Consolidated Statements of Stockholders' Equity HTML 88K 23: R9 Consolidated Statements of Stockholders' Equity HTML 42K (Parenthetical) 24: R10 Summary of Significant Accounting Policies and HTML 170K Related Data 25: R11 Business Combinations HTML 103K 26: R12 Segment Data HTML 128K 27: R13 Revenue HTML 113K 28: R14 Goodwill and Other Intangible Assets HTML 100K 29: R15 Indebtedness HTML 76K 30: R16 Management Actions HTML 41K 31: R17 Investment in Joint Venture HTML 62K 32: R18 Income Taxes HTML 122K 33: R19 Stock-Based Compensation Plans HTML 125K 34: R20 Stockholders' Equity HTML 81K 35: R21 Commitments and Contingencies HTML 48K 36: R22 Leases HTML 69K 37: R23 Derivative Instruments and Hedging Activities HTML 117K 38: R24 Fair Value Measurements HTML 83K 39: R25 Employee Retirement Plans HTML 45K 40: R26 Other Income, Net HTML 51K 41: R27 Subsequent Events HTML 43K 42: R28 Quarterly Financial Data (Unaudited) HTML 67K 43: R29 Summary of Significant Accounting Policies and HTML 180K Related Data (Policies) 44: R30 Summary of Significant Accounting Policies and HTML 92K Related Data (Tables) 45: R31 Business Combinations (Tables) HTML 84K 46: R32 Segment Data (Tables) HTML 126K 47: R33 Revenue (Tables) HTML 97K 48: R34 Goodwill and Other Intangible Assets (Tables) HTML 143K 49: R35 Indebtedness (Tables) HTML 54K 50: R36 Investment in Joint Venture (Tables) HTML 56K 51: R37 Income Taxes (Tables) HTML 120K 52: R38 Stock-Based Compensation Plans (Tables) HTML 129K 53: R39 Stockholders' Equity (Tables) HTML 78K 54: R40 Leases (Tables) HTML 66K 55: R41 Derivative Instruments and Hedging Activities HTML 112K (Tables) 56: R42 Fair Value Measurements (Tables) HTML 74K 57: R43 Other Income, Net (Tables) HTML 50K 58: R44 Quarterly Financial Data (Unaudited) (Tables) HTML 67K 59: R45 Summary of Significant Accounting Policies and HTML 36K Related Data - Basis of Presentation and Consolidation (Details) 60: R46 Summary of Significant Accounting Policies and HTML 40K Related Data - Cash and Cash Equivalents (Details) 61: R47 Summary of Significant Accounting Policies and HTML 51K Related Data - Inventory Valuations (Details) 62: R48 Summary of Significant Accounting Policies and HTML 74K Related Data - Property and Depreciation (Details) 63: R49 Summary of Significant Accounting Policies and HTML 47K Related Data - Goodwill and Indefinite-Life Intangible Assets (Details) 64: R50 Summary of Significant Accounting Policies and HTML 44K Related Data - Other Long-Lived Assets (Details) 65: R51 Summary of Significant Accounting Policies and HTML 36K Related Data - Accounts Payable (Details) 66: R52 Summary of Significant Accounting Policies and HTML 46K Related Data - Accrued Warranties (Details) 67: R53 Summary of Significant Accounting Policies and HTML 43K Related Data - Debt Issuance Costs (Details) 68: R54 Summary of Significant Accounting Policies and HTML 36K Related Data - Revenue Recognition (Details) 69: R55 Summary of Significant Accounting Policies and HTML 36K Related Data - Cost of Financing Distributor / Dealer Inventory (Details) 70: R56 Summary of Significant Accounting Policies and HTML 36K Related Data - Advertising (Details) 71: R57 Summary of Significant Accounting Policies and HTML 37K Related Data - Engineering and Research (Details) 72: R58 Summary of Significant Accounting Policies and HTML 52K Related Data - Net Earnings Per Share (Details) 73: R59 Summary of Significant Accounting Policies and HTML 42K Related Data - New Accounting Pronouncements Not Yet Adopted (Details) 74: R60 Business Combinations - Narrative (Details) HTML 113K 75: R61 Business Combinations - Allocation of Preliminary HTML 69K Purchase Price, Venture Products (Details) 76: R62 Business Combinations - Summary of Intangible HTML 56K Assets, Venture Products (Details) 77: R63 Business Combinations - Summary of Purchase Price HTML 86K Allocation (Details) 78: R64 Business Combinations - Pro Forma (Details) HTML 50K 79: R65 Segment Data - Narrative (Details) HTML 39K 80: R66 Segment Data - Summarized Financial Information HTML 82K (Details) 81: R67 Segment Data - Other Segment Operating Loss Before HTML 50K Income Taxes (Details) 82: R68 Segment Data - Net Sales (Details) HTML 47K 83: R69 Segment Data - Geographic Data (Details) HTML 52K 84: R70 Revenue - Disaggregation (Details) HTML 88K 85: R71 Revenue - Narrative (Details) HTML 52K 86: R72 Revenue - Performance Obligation (Details) HTML 43K 87: R73 Goodwill and Other Intangible Assets - Narrative HTML 65K (Details) 88: R74 Goodwill and Other Intangible Assets - Changes in HTML 57K Net Carrying Amount of Goodwill (Details) 89: R75 Goodwill and Other Intangible Assets - Components HTML 69K of Other Intangible Assets (Details) 90: R76 Indebtedness - Summary of Long Term Debt (Details) HTML 89K 91: R77 Indebtedness - Narrative (Details) HTML 190K 92: R78 Management Actions - Narrative (Details) HTML 55K 93: R79 Investment in Joint Venture - Narrative (Details) HTML 66K 94: R80 Investment in Joint Venture - Summary of Red Iron HTML 80K (Details) 95: R81 Income Taxes - Earnings Before Income Taxes HTML 44K (Details) 96: R82 Income Taxes - Reconciliation of the Statutory HTML 62K Federal Income Tax Rate (Details) 97: R83 Income Taxes - Narrative (Details) HTML 61K 98: R84 Income Taxes - Components of the Provisions For HTML 63K Income Taxes (Details) 99: R85 Income Taxes - Tax Effects of Temporary HTML 67K Differences (Details) 100: R86 Income Taxes - Reconciliation (Details) HTML 46K 101: R87 Stock-Based Compensation Plans - Narrative HTML 95K (Details) 102: R88 Stock-Based Compensation Plans - Compensation HTML 49K Costs Related to Stock-Based Awards (Details) 103: R89 Stock-Based Compensation Plans - Weighted-average HTML 47K Valuation Assumptions For Options Granted (Details) 104: R90 Stock-Based Compensation Plans - Stock Option HTML 73K Activity (Details) 105: R91 Stock-Based Compensation Plans - Market and HTML 39K Intrinsic Value of Options Exercised (Details) 106: R92 Stock-Based Compensation Plans - Factors Related HTML 41K to the Company's Stock and Restricted Stock Units (Details) 107: R93 Stock-Based Compensation Plans - Summary of HTML 60K Activity For Unvested Restricted Stock and Restricted Stock Units (Details) 108: R94 Stock-Based Compensation Plans - Factors Related HTML 41K to the Company's Performance Share Awards (Details) 109: R95 Stock-Based Compensation Plans - Summary of HTML 60K Activity For Unvested Performance Share Awards (Details) 110: R96 Stockholders' Equity - Narrative (Details) HTML 56K 111: R97 Stockholders' Equity - Components of AOCL HTML 49K (Details) 112: R98 Stockholders' Equity - Components and activity of HTML 62K AOCL (Details) 113: R99 Commitments and Contingencies (Details) HTML 67K 114: R100 Leases - Narrative (Details) HTML 42K 115: R101 Leases - Lease Expense Incurred (Details) HTML 43K 116: R102 Leases - Supplemental Cash Flow and Other Lease HTML 39K Information (Details) 117: R103 Leases - Summary of Other Lease Information HTML 39K (Details) 118: R104 Leases - Schedule of Future Minimum Operating HTML 74K Lease Payments (Details) 119: R105 Derivative Instruments and Hedging Activities - HTML 45K Narrative (Details) 120: R106 Derivative Instruments and Hedging Activities - HTML 51K Fair Value of Derivatives (Details) 121: R107 Derivative Instruments and Hedging Activities - HTML 56K Effects of Master Netting Arrangements (Details) 122: R108 Derivative Instruments and Hedging Activities - HTML 48K Impacts and Location of Amounts Reclassified From AOCL (Details) 123: R109 Derivative Instruments and Hedging Activities - HTML 72K Impact and Location of Derivative Instruments on Consolidated Statements of Earnings (Details) 124: R110 Fair Value Measurements - Narrative (Details) HTML 40K 125: R111 Fair Value Measurements - Recurring Fair Value HTML 66K Measurements (Details) 126: R112 Employee Retirement Plans - Narrative (Details) HTML 50K 127: R113 Other Income, Net - Summary of Other HTML 51K Income/(Expense) (Details) 128: R114 Subsequent Events (Narrative) (Details) HTML 42K 129: R115 Quarterly Financial Data (Unaudited) - Summary of HTML 67K Quarterly Financial Data (Details) 131: XML IDEA XML File -- Filing Summary XML 247K 14: XML XBRL Instance -- ttc-20201031_htm XML 4.01M 130: EXCEL IDEA Workbook of Financial Reports XLSX 190K 10: EX-101.CAL XBRL Calculations -- ttc-20201031_cal XML 381K 11: EX-101.DEF XBRL Definitions -- ttc-20201031_def XML 1.12M 12: EX-101.LAB XBRL Labels -- ttc-20201031_lab XML 2.52M 13: EX-101.PRE XBRL Presentations -- ttc-20201031_pre XML 1.68M 9: EX-101.SCH XBRL Schema -- ttc-20201031 XSD 255K 132: JSON XBRL Instance as JSON Data -- MetaLinks 605± 902K 133: ZIP XBRL Zipped Folder -- 0000737758-20-000029-xbrl Zip 660K
ttc-20201031 |
i Delaware | i 41-0580470 | |||||||
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
i Common Stock, par value $1.00 per share | i TTC | i New York Stock Exchange |
i Large accelerated filer | ☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | i ☐ | Emerging growth company | i ☐ |
Description | Page Number | |||||||
Fiscal Years | 20204 | 2019 | ||||||||||||||||||||||||
Quarter | Net Sales | Net Earnings | Net Sales | Net Earnings | ||||||||||||||||||||||
First1 | 23 | % | 21 | % | 19 | % | 22 | % | ||||||||||||||||||
Second1,2,3 | 27 | % | 30 | % | 31 | % | 42 | % | ||||||||||||||||||
Third2,3 | 25 | % | 27 | % | 27 | % | 22 | % | ||||||||||||||||||
Fourth2 | 25 | % | 22 | % | 23 | % | 14 | % |
Location | Ownership | Facility Type/Use | ||||||||||||
Abilene, TX | Leased | Professional products manufacturing facility, service area, and office | ||||||||||||
Albany, GA | Owned | Professional products service area and office | ||||||||||||
Albis, France | Leased | Professional products service area and office | ||||||||||||
Althengstett, Germany | Owned | Professional products manufacturing and distribution facility and office | ||||||||||||
Ankeny, IA | Leased | Professional and Residential products distribution center | ||||||||||||
Banyo, Australia | Leased | Professional and Residential products distribution center, service area, and office | ||||||||||||
Baraboo, WI | Leased | Professional and Residential products distribution center | ||||||||||||
Barcelona, Spain | Leased | Professional products warehouse and office | ||||||||||||
Beatrice, NE | Owned/Leased | Professional products manufacturing and test facility and office | ||||||||||||
Beijing, China | Leased | Professional products manufacturing and distribution facility and office | ||||||||||||
Beverley, Australia | Owned | Professional products manufacturing and distribution facility, service area, and office | ||||||||||||
Bloomington, MN | Owned/Leased | Corporate headquarters, warehouse, and test facility | ||||||||||||
Boulder, CO | Leased | Professional office | ||||||||||||
Braeside, Australia | Leased | Professional and Residential products distribution facility, service area, and office | ||||||||||||
Branchburg, NJ | Owned | Distribution facility, service area, and office | ||||||||||||
Brooklyn Center, MN | Leased | Distribution facility, service area, and office | ||||||||||||
Capena, Italy | Leased | Professional and Residential products distribution center | ||||||||||||
Corpus Christi, TX | Owned | Professional products service area and office | ||||||||||||
El Cajon, CA | Owned/Leased | Professional products manufacturing and distribution facility, test site, and office | ||||||||||||
El Paso, TX | Owned/Leased | Residential component parts and Professional products manufacturing and distribution facility | ||||||||||||
Fiano Romano, Italy | Owned/Leased | Professional products manufacturing and distribution facility and office | ||||||||||||
Forest Park, GA | Leased | Professional products service area and office | ||||||||||||
Fresno, CA | Leased | Professional products warehouse | ||||||||||||
Grandville, MI | Leased | Professional products service area and office | ||||||||||||
Harlingen, TX | Leased | Professional products service area and office | ||||||||||||
Hertfordshire, United Kingdom | Owned | Professional and Residential products manufacturing, distribution, and test facility and office | ||||||||||||
Howell, MI | Owned | Professional products service area and office | ||||||||||||
Iron Mountain, MI | Owned/Leased | Professional products manufacturing and distribution facility and office | ||||||||||||
Juarez, Mexico | Leased | Professional and Residential products manufacturing facility and warehouse | ||||||||||||
Kalkaska, MI | Leased | Professional products service area and office | ||||||||||||
Lake Mills, WI | Owned | Professional products manufacturing and distribution facility and office | ||||||||||||
Leuven, Belgium | Leased | Professional office | ||||||||||||
Ludwigsburg, Germany | Leased | Professional office | ||||||||||||
Marne, MI | Owned | Professional products service area and office | ||||||||||||
Oevel, Belgium | Owned | Professional and Residential products distribution center, service area, and office | ||||||||||||
Orrville, OH | Owned | Professional products manufacturing and distribution facility and office | ||||||||||||
Perry, OK | Owned/Leased | Professional products manufacturing, distribution, and test facility and office | ||||||||||||
Petaluma, CA | Leased | Professional products manufacturing and distribution facility, service area, and office | ||||||||||||
Ploiesti, Romania | Owned | Professional products manufacturing, distribution, and test facility and office | ||||||||||||
Plymouth, WI | Owned | Professional and Residential parts distribution center | ||||||||||||
Pune, India | Leased | Corporate information technology service center |
Location | Ownership | Facility Type/Use | ||||||||||||
Riverside, CA | Owned/Leased | Professional products manufacturing, distribution, and test facility and office | ||||||||||||
Ronkonkoma, NY | Owned | Distribution facility, service area, and office | ||||||||||||
Sanford, FL | Leased | Professional products manufacturing and distribution facility | ||||||||||||
Savannah, GA | Leased | Professional products service area and office | ||||||||||||
Shakopee, MN | Owned | Professional and Residential component parts manufacturing facility | ||||||||||||
St. Louis, MO | Leased | Distribution facility, service area, and office | ||||||||||||
Sterling, KY | Leased | Professional products manufacturing and distribution facility, service area, and office | ||||||||||||
Tomah, WI | Owned/Leased | Professional products manufacturing facility and distribution center | ||||||||||||
Ustron, Poland | Owned | Professional products manufacturing and distribution facility and office | ||||||||||||
Wangara, Australia | Leased | Professional and Residential products distribution center, service area, and office | ||||||||||||
Weatherford, TX | Owned | Professional products manufacturing and distribution facility and office | ||||||||||||
West Salem, OH | Owned | Professional products manufacturing and distribution facility and office | ||||||||||||
Wetherill, Australia | Leased | Professional and Residential products distribution center, service area, and office | ||||||||||||
Windom, MN | Owned/Leased | Residential and Professional products manufacturing facility and warehouses | ||||||||||||
Xiamen City, China | Leased | Professional and Residential products and component parts manufacturing and distribution facility and office |
Name, Age, and Position | Business Experience during the Last Five or More Years | |||||||
56, Chairman of the Board, President and Chief Executive Officer | Chairman of the Board since November 2017 and President and Chief Executive Officer since November 2016. From September 2015 through October 2016, he served as President and Chief Operating Officer. From June 2014 through August 2015, he served as Group Vice President, International Business, Global Ag-Irrigation Business and Distributor Development. | |||||||
Jody M. Christy 52, Vice President, BOSS | Vice President, BOSS since December 2018. From June 2016 to November 2018, he served as General Manager, BOSS. At the time of the acquisition of BOSS in November 2014 to May 2016, he served as Director, Engineering for BOSS. | |||||||
Amy E. Dahl 46, Vice President, Human Resources and General Counsel | Vice
President, Human Resources and General Counsel since November 2020. From January 2020 through October 2020 she served as Vice President, Human Resources, Distributor Development and General Counsel. From December 2016 through December 2019, she served as Vice President, Human Resources and Distributor Development. From April 2015 through November 2016, she served as Vice President, Human Resources. From June 2013 through March 2015, she served as Managing Director, Corporate Communications and Investor Relations. From July 2012 to May 2013, she served as Assistant General Counsel and Assistant Secretary. | |||||||
Angie C. Drake 48, Vice President, Construction | Vice President, Construction since April 2020. From April 2019 through March 2020, she served as Senior Managing Director, Integration. From February 2011 through March 2019, she served as Chief Financial Officer for The Charles Machine Works, Inc. | |||||||
Blake M. Grams 53, Vice President, Global Operations | Vice President, Global Operations since June 2013. From December 2008 to May 2013, he served as Vice President, Corporate Controller. | |||||||
Bradley A. Hamilton 56, Group Vice President, Commercial, International, Ventrac and Irrigation Businesses | Group Vice President, Commercial, International, Ventrac, and Irrigation Businesses since March 2020. From October 2018 to February 2020 he served as Group Vice President, Commercial, International and Irrigation Businesses. From November 2017 to September 2018, he served as Group Vice President, Commercial and International Businesses. From October 2016 to October 2017, he served as Vice President, Commercial Business. From April 2015 to September 2016, he served as General Manager, Commercial Business. | |||||||
Gregory S. Janey 42, Vice President, Residential and Landscape Contractor Businesses | Vice President, Residential and Landscape Contractor Businesses since November 2019. From November 2017 to October 2019, he served as General Manager, Residential and Landscape Contractor Businesses. From April 2015 to October 2017, he served as Director, Marketing International Business. From January 2013 through March 2015, he served as Director, Residential Mass Sales and National Accounts in our Residential Business. | |||||||
Peter D. Moeller 43, Vice President, International | Vice President, International since November 2020. From November 2019 to October 2020, he served as Vice President, Sitework Systems Business. From November 2017 to October 2019, he served as General Manager, Sitework Systems Business. From April 2015 to October 2017, he served as Managing Director, Business Development and Strategic Planning. | |||||||
59, Vice President, Treasurer and Chief Financial Officer | Vice President, Treasurer and Chief Financial Officer since July 2013. | |||||||
Darren L. Redetzke 56, Vice President, Strategic Technologies | Vice President, Strategic Technologies since November 2020. From April 2015 to October 2020, he served as Vice President, International Business. | |||||||
Richard W. Rodier 60, Group Vice President, Construction, Contractor and Residential Businesses | Group Vice President, Construction, Contractor and Residential Business since May 2020. From April 2019 to April 2020 he served as Group Vice President, Construction Businesses. From November 2017 to April 2019, he served as Vice President, Commercial Business. From October 2016 to November 2017, he served as Vice President, Sitework Systems. From February 2009 to October 2016, he served as General Manager, Sitework Systems. | |||||||
Kurt D. Svendsen 54, Vice President, Strategy, Corporate and Channel Development | Vice President, Strategy, Corporate and Channel Development since November 2020. From June 2013 to October 2020 he served as Vice President, Information Services. |
Period | Total Number of Shares (or Units) Purchased1, 2 | Average Price Paid per Share (or Unit) | Total Number of Shares (or Units) Purchased As Part of Publicly Announced Plans or Programs1 | Maximum Number of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs1 | ||||||||||||||||||||||
August 1, 2020 through September 4, 2020 | — | $ | — | — | 7,042,256 | |||||||||||||||||||||
September 5, 2020 through October 2, 2020 | — | — | — | 7,042,256 | ||||||||||||||||||||||
October 3, 2020 through October 31, 2020 | 1,586 | 72.34 | — | 7,042,256 | ||||||||||||||||||||||
Total | 1,586 | $ | 72.34 | — |
Fiscal Years Ended October 31 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||||||||||||||||||||
The Toro Company | $ | 100.00 | $ | 129.05 | $ | 171.31 | $ | 155.54 | $ | 215.90 | $ | 233.04 | ||||||||||||||||||||||||||
S&P 500 | 100.00 | 104.51 | 129.21 | 138.70 | 158.57 | 173.97 | ||||||||||||||||||||||||||||||||
Peer Group | $ | 100.00 | $ | 117.23 | $ | 171.29 | $ | 157.55 | $ | 194.09 | $ | 224.15 |
(Dollars in thousands, except per share data) Fiscal Years Ended October 31 | 20201,2,3,4 | 20194 | 20185 | 2017 | 2016 | |||||||||||||||||||||||||||
Consolidated Statements of Earnings data: | ||||||||||||||||||||||||||||||||
Net sales | $ | 3,378,810 | $ | 3,138,084 | $ | 2,618,650 | $ | 2,505,176 | $ | 2,392,175 | ||||||||||||||||||||||
Net earnings | 329,701 | 273,983 | 271,939 | 267,717 | 230,994 | |||||||||||||||||||||||||||
Basic net earnings per share of common stock | 3.06 | 2.57 | 2.56 | 2.47 | 2.10 | |||||||||||||||||||||||||||
Diluted net earnings per share of common stock | $ | 3.03 | $ | 2.53 | $ | 2.50 | $ | 2.41 | $ | 2.06 | ||||||||||||||||||||||
Consolidated Balance Sheets data: | ||||||||||||||||||||||||||||||||
Total
assets3 | $ | 2,853,228 | $ | 2,330,547 | $ | 1,570,984 | $ | 1,493,787 | $ | 1,384,572 | ||||||||||||||||||||||
Long-term debt, including current portion | $ | 791,123 | $ | 700,813 | $ | 312,549 | $ | 331,887 | $ | 350,961 | ||||||||||||||||||||||
Consolidated Statements of Cash Flows data: | ||||||||||||||||||||||||||||||||
Cash dividends per share of TTC common stock | $ | 1.00 | $ | 0.90 | $ | 0.80 | $ | 0.70 | $ | 0.60 |
Fiscal Years Ended October 31 | 2020 | 2019 | 2018 | |||||||||||||||||
Net sales | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||
Cost of sales | (64.8) | (66.6) | (64.1) | |||||||||||||||||
Gross margin | 35.2 | 33.4 | 35.9 | |||||||||||||||||
SG&A expense | (22.6) | (23.0) | (21.7) | |||||||||||||||||
Operating earnings | 12.6 | 10.4 | 14.2 | |||||||||||||||||
Interest expense | (1.0) | (0.9) | (0.7) | |||||||||||||||||
Other income, net | 0.4 | 0.8 | 0.7 | |||||||||||||||||
Earnings before income taxes | 12.0 | 10.3 | 14.2 | |||||||||||||||||
Provision for income taxes | (2.2) | (1.6) | (3.8) | |||||||||||||||||
Net earnings | 9.8 | % | 8.7 | % | 10.4 | % |
Fiscal Years Ended October 31 | 2020 | 2019 | 2018 | |||||||||||||||||
Net sales | $ | 2,523.5 | $ | 2,443.4 | $ | 1,947.0 | ||||||||||||||
Percentage change from prior year | 3.3 | % | 25.5 | % | 7.5 | % | ||||||||||||||
Segment earnings | $ | 426.6 | $ | 380.9 | $ | 399.8 | ||||||||||||||
Segment earnings as a percentage of segment net sales | 16.9 | % | 15.6 | % | 20.5 | % |
Fiscal Years Ended October 31 | 2020 | 2019 | 2018 | |||||||||||||||||
Net sales | $ | 820.7 | $ | 661.3 | $ | 654.4 | ||||||||||||||
Percentage change from prior year | 24.1 | % | 1.0 | % | (2.8) | % | ||||||||||||||
Segment earnings | $ | 113.7 | $ | 65.2 | $ | 64.8 | ||||||||||||||
Segment earnings as a percentage of segment net sales | 13.8 | % | 9.9 | % | 9.9 | % |
Fiscal Years Ended October 31 | 2020 | 2019 | 2018 | |||||||||||||||||
Net sales | $ | 34.6 | $ | 33.4 | $ | 17.2 | ||||||||||||||
Percentage change from prior year | 3.7 | % | 93.5 | % | (14.8) | % | ||||||||||||||
Operating loss | $ | (133.2) | $ | (123.9) | $ | (92.2) |
Fiscal Years Ended October 31 | 2020 | 2019 | ||||||||||||
Average receivables, net | $ | 296.5 | $ | 265.4 | ||||||||||
Average inventories, net | $ | 705.1 | $ | 560.5 | ||||||||||
Average accounts payable | $ | 319.5 | $ | 315.5 | ||||||||||
Average days outstanding for receivables | 32.0 | 30.9 | ||||||||||||
Average inventory turnover (times per fiscal year) | 3.1 | 3.7 |
Cash Provided by/(Used in) | ||||||||||||||||||||
Fiscal Years Ended October 31 | 2020 | 2019 | 2018 | |||||||||||||||||
Operating activities | $ | 539.4 | $ | 337.4 | $ | 364.8 | ||||||||||||||
Investing activities | (216.1) | (772.9) | (127.9) | |||||||||||||||||
Financing activities | 2.4 | 299.5 | (252.1) | |||||||||||||||||
Effect of exchange rates on cash | 2.4 | (1.3) | (5.9) | |||||||||||||||||
Net increase/(decrease) in cash and cash equivalents | 328.1 | (137.3) | (21.1) | |||||||||||||||||
Cash and cash equivalents as of fiscal year end | $ | 479.9 | $ | 151.8 | $ | 289.1 |
October 31, 2020 | October 31, 2019 | |||||||||||||
Revolving credit facility | $ | — | $ | — | ||||||||||
$200 million term loan | 100,000 | 100,000 | ||||||||||||
$300 million term loan | 180,000 | 180,000 | ||||||||||||
$190 million term loan | 90,000 | — | ||||||||||||
3.81% series A senior notes | 100,000 | 100,000 | ||||||||||||
3.91% series B senior notes | 100,000 | 100,000 | ||||||||||||
7.8% debentures | 100,000 | 100,000 | ||||||||||||
6.625% senior notes | 123,978 | 123,916 | ||||||||||||
Less: unamortized discounts, debt issuance costs, and deferred charges | 2,855 | 3,103 | ||||||||||||
Total long-term debt | 791,123 | 700,813 | ||||||||||||
Less: current portion of long-term debt | 99,873 | 79,914 | ||||||||||||
Long-term debt, less current portion | $ | 691,250 | $ | 620,899 |
October 31, 2020 | October 31, 2019 | |||||||||||||
Long-term debt, including current portion | $ | 791.1 | $ | 700.8 | ||||||||||
Stockholders' equity | $ | 1,114.8 | $ | 859.6 | ||||||||||
Debt-to-capitalization ratio | 41.5 | % | 44.9 | % |
Fiscal Years Ended October 31 | 2020 | 2019 | 2018 | |||||||||||||||||
Shares of Board authorized common stock purchased | — | 359,758 | 2,579,864 | |||||||||||||||||
Cost to repurchase common stock | $ | — | $ | 20.0 | $ | 160.4 | ||||||||||||||
Average price paid per share | $ | — | $ | 55.71 | $ | 62.19 |
Payments Due by Period | ||||||||||||||||||||||||||||||||
Contractual Obligations | Total | Less Than 1 Year | 1-3 Years | 3-5 Years | More Than 5 Years | |||||||||||||||||||||||||||
Long-term debt1 | $ | 795.0 | $ | 13.5 | $ | 203.5 | $ | 153.0 | $ | 425.0 | ||||||||||||||||||||||
Interest
payments2 | 286.0 | 29.3 | 54.6 | 48.4 | 153.7 | |||||||||||||||||||||||||||
Purchase obligations3 | 33.4 | 33.4 | — | — | — | |||||||||||||||||||||||||||
Operating
leases4 | 90.2 | 18.1 | 27.7 | 20.8 | 23.6 | |||||||||||||||||||||||||||
Other5 | 37.1 | 29.4 | 5.5 | 1.4 | 0.8 | |||||||||||||||||||||||||||
Total | $ | 1,241.7 | $ | 123.7 | $ | 291.3 | $ | 223.6 | $ | 603.1 |
(In thousands, except per share and percentage data) Fiscal Years Ended | October 31, 2020 | October 31, 2019 | ||||||||||||
Gross profit | $ | 1,189,774 | $ | 1,047,963 | ||||||||||
Acquisition-related costs1 | 3,950 | 42,958 | ||||||||||||
Management actions2 | 857 | 10,316 | ||||||||||||
Non-GAAP gross profit | $ | 1,194,581 | $ | 1,101,237 | ||||||||||
Gross margin | 35.2 | % | 33.4 | % | ||||||||||
Acquisition-related costs1 | 0.2 | % | 1.4 | % | ||||||||||
Management
actions2 | — | % | 0.3 | % | ||||||||||
Non-GAAP gross margin | 35.4 | % | 35.1 | % | ||||||||||
Operating earnings | $ | 426,357 | $ | 325,029 | ||||||||||
Acquisition-related
costs1 | 6,183 | 62,333 | ||||||||||||
Management actions2 | 857 | 16,311 | ||||||||||||
Non-GAAP operating earnings | $ | 433,397 | $ | 403,673 | ||||||||||
Earnings before income taxes | $ | 407,070 | $ | 322,133 | ||||||||||
Acquisition-related costs1 | 6,183 | 62,333 | ||||||||||||
Management actions2 | 857 | 17,167 | ||||||||||||
Non-GAAP earnings before income taxes | $ | 414,110 | $ | 401,633 | ||||||||||
Net earnings | $ | 329,701 | $ | 273,983 | ||||||||||
Acquisition-related costs1 | 5,021 | 51,149 | ||||||||||||
Management
actions2 | 677 | 13,817 | ||||||||||||
Tax impact of stock-based compensation3 | (7,652) | (13,677) | ||||||||||||
U.S. Tax Reform4 | — | (1,012) | ||||||||||||
Non-GAAP net earnings | $ | 327,747 | $ | 324,260 | ||||||||||
Diluted EPS | $ | 3.03 | $ | 2.53 | ||||||||||
Acquisition-related costs1 | 0.05 | 0.47 | ||||||||||||
Management
actions2 | 0.01 | 0.13 | ||||||||||||
Tax impact of stock-based compensation3 | (0.07) | (0.12) | ||||||||||||
U.S. Tax Reform4 | — | (0.01) | ||||||||||||
Non-GAAP diluted EPS | $ | 3.02 | $ | 3.00 |
Fiscal Years Ended | October 31, 2020 | October 31, 2019 | ||||||||||||
Effective tax rate | 19.0 | % | 14.9 | % | ||||||||||
Acquisition-related costs1 | — | % | (0.3) | % | ||||||||||
Management
actions2 | — | % | 0.1 | % | ||||||||||
Tax impact of stock-based compensation3 | 1.9 | % | 4.3 | % | ||||||||||
U.S. Tax Reform4 | — | % | 0.3 | % | ||||||||||
Non-GAAP effective tax rate | 20.9 | % | 19.3 | % |
Average Contracted Rate | Notional Amount | Fair Value | Gain (Loss) at Fair Value | |||||||||||||||||||||||
Buy U.S. dollar/Sell Australian dollar | 0.6965 | $ | 102,499 | $ | 101,468 | $ | (1,031) | |||||||||||||||||||
Buy U.S. dollar/Sell Canadian dollar | 1.3451 | 32,666 | 32,328 | (338) | ||||||||||||||||||||||
Buy U.S. dollar/Sell Euro | 1.1646 | 115,400 | 114,289 | (1,111) | ||||||||||||||||||||||
Buy U.S. dollar/Sell British pound | 1.3050 | 40,964 | 41,201 | 237 | ||||||||||||||||||||||
Buy Mexican peso/Sell U.S. dollar | 22.7345 | $ | 19,462 | $ | 20,153 | $ | 691 | |||||||||||||||||||
/s/ Richard M. Olson | ||||||||
Chairman of the Board, President and Chief Executive Officer | ||||||||
/s/ Renee J. Peterson | ||||||||
Vice President, Treasurer and Chief Financial Officer | ||||||||
December 18, 2020 |
Fiscal Years Ended October 31 | 2020 | 2019 | 2018 | |||||||||||||||||
Net sales | $ | i 3,378,810 | $ | i 3,138,084 | $ | i 2,618,650 | ||||||||||||||
Cost of sales | i 2,189,036 | i 2,090,121 | i 1,677,639 | |||||||||||||||||
Gross profit | i 1,189,774 | i 1,047,963 | i 941,011 | |||||||||||||||||
Selling, general and administrative expense | i 763,417 | i 722,934 | i 567,926 | |||||||||||||||||
Operating earnings | i 426,357 | i 325,029 | i 373,085 | |||||||||||||||||
Interest expense | ( i 33,156) | ( i 28,835) | ( i 19,096) | |||||||||||||||||
Other income, net | i 13,869 | i 25,939 | i 18,408 | |||||||||||||||||
Earnings before income taxes | i 407,070 | i 322,133 | i 372,397 | |||||||||||||||||
Provision for income taxes | i 77,369 | i 48,150 | i 100,458 | |||||||||||||||||
Net earnings | $ | i 329,701 | $ | i 273,983 | $ | i 271,939 | ||||||||||||||
Basic net earnings per share of common stock | $ | i 3.06 | $ | i 2.57 | $ | i 2.56 | ||||||||||||||
Diluted net earnings per share of common stock | $ | i 3.03 | $ | i 2.53 | $ | i 2.50 | ||||||||||||||
Weighted-average number of shares of common stock outstanding – Basic | i 107,658 | i 106,773 | i 106,369 | |||||||||||||||||
Weighted-average number of shares of common stock outstanding – Diluted | i 108,663 | i 108,090 | i 108,657 |
Fiscal Years Ended October 31 | 2020 | 2019 | 2018 | |||||||||||||||||
Net earnings | $ | i 329,701 | $ | i 273,983 | $ | i 271,939 | ||||||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||
Foreign currency translation adjustments, net of tax of $ i 0, $( i 16),
and $( i 222), respectively | i 6,517 | ( i 1,314) | ( i 8,408) | |||||||||||||||||
Derivative
instruments, net of tax of $( i 2,782), $( i 862),
and $ i 2,899, respectively | ( i 8,485) | ( i 2,498) | i 7,415 | |||||||||||||||||
Pension
and post-retirement benefits, net of tax of $ i 45, $( i 1,305),
and $ i 254, respectively | ( i 245) | ( i 4,300) | i 1,035 | |||||||||||||||||
Other comprehensive income (loss), net of tax | ( i 2,213) | ( i 8,112) | i 42 | |||||||||||||||||
Comprehensive income | $ | i 327,488 | $ | i 265,871 | $ | i 271,981 |
October 31 | 2020 | 2019 | ||||||||||||
ASSETS | ||||||||||||||
Cash and cash equivalents | $ | i 479,892 | $ | i 151,828 | ||||||||||
Receivables, net: | ||||||||||||||
Customers, net of allowances (2020 - $ i 4,586; 2019 - $ i 3,270) | i 223,105 | i 220,534 | ||||||||||||
Receivables from finance affiliate | i 12,619 | i 21,873 | ||||||||||||
Other | i 25,411 | i 26,361 | ||||||||||||
Total receivables, net | i 261,135 | i 268,768 | ||||||||||||
Inventories, net | i 652,433 | i 651,663 | ||||||||||||
Prepaid expenses and other current assets | i 34,188 | i 50,632 | ||||||||||||
Total current assets | i 1,427,648 | i 1,122,891 | ||||||||||||
Property, plant and equipment, net | i 467,919 | i 437,317 | ||||||||||||
Goodwill | i 424,075 | i 362,253 | ||||||||||||
Other intangible assets, net | i 408,305 | i 352,374 | ||||||||||||
Right-of-use assets | i 78,752 | — | ||||||||||||
Investment in finance affiliate | i 19,745 | i 24,147 | ||||||||||||
Deferred income taxes | i 6,466 | i 6,251 | ||||||||||||
Other assets | i 20,318 | i 25,314 | ||||||||||||
Total assets | $ | i 2,853,228 | $ | i 2,330,547 | ||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||
Current portion of long-term debt | $ | i 99,873 | $ | i 79,914 | ||||||||||
Accounts payable | i 363,953 | i 319,230 | ||||||||||||
Short-term lease liabilities | i 15,447 | — | ||||||||||||
Accrued liabilities: | ||||||||||||||
Warranty | i 107,121 | i 96,604 | ||||||||||||
Advertising and marketing programs | i 98,883 | i 103,417 | ||||||||||||
Compensation and benefit costs | i 58,789 | i 76,862 | ||||||||||||
Insurance | i 13,452 | i 11,164 | ||||||||||||
Interest | i 10,065 | i 9,903 | ||||||||||||
Other | i 88,214 | i 59,876 | ||||||||||||
Total accrued liabilities | i 376,524 | i 357,826 | ||||||||||||
Total current liabilities | i 855,797 | i 756,970 | ||||||||||||
Long-term debt, less current portion | i 691,250 | i 620,899 | ||||||||||||
Long-term lease liabilities | i 66,641 | — | ||||||||||||
Deferred income taxes | i 70,435 | i 50,579 | ||||||||||||
Other long-term liabilities | i 54,277 | i 42,521 | ||||||||||||
Stockholders' equity: | ||||||||||||||
Preferred stock, par value $ i i 1.00 /
per share, authorized i i 1,000,000 /
voting and i i 850,000 /
non-voting shares, i i i i none / / /
issued and outstanding | i — | i — | ||||||||||||
Common
stock, par value $ i i 1.00 / per share, authorized
i i 175,000,000 / shares; issued and outstanding
i i 107,582,670 / shares as of October 31,
2020 and i i 106,742,082 / shares as of
October 31, 2019 | i 107,583 | i 106,742 | ||||||||||||
Retained earnings | i 1,041,507 | i 784,885 | ||||||||||||
Accumulated other comprehensive loss | ( i 34,262) | ( i 32,049) | ||||||||||||
Total stockholders' equity | i 1,114,828 | i 859,578 | ||||||||||||
Total liabilities and stockholders' equity | $ | i 2,853,228 | $ | i 2,330,547 |
Fiscal Years Ended October 31 | 2020 | 2019 | 2018 | |||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net earnings | $ | i 329,701 | $ | i 273,983 | $ | i 271,939 | ||||||||||||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||||||||||||||||||
Non-cash income from finance affiliate | ( i 7,663) | ( i 11,948) | ( i 11,143) | |||||||||||||||||
Distributions from finance affiliate, net | i 12,066 | i 10,343 | i 9,228 | |||||||||||||||||
Depreciation of property, plant and equipment | i 76,108 | i 69,314 | i 53,484 | |||||||||||||||||
Amortization of other intangible assets | i 19,507 | i 18,384 | i 7,793 | |||||||||||||||||
Fair value step-up adjustment to acquired inventory | i 3,951 | i 39,368 | i — | |||||||||||||||||
Stock-based compensation expense | i 15,408 | i 13,429 | i 12,161 | |||||||||||||||||
Deferred income taxes | i 2,269 | ( i 6,190) | i 25,255 | |||||||||||||||||
Other | i 492 | i 6,357 | i 507 | |||||||||||||||||
Changes in operating assets and liabilities, net of the effect of acquisitions: | ||||||||||||||||||||
Receivables, net | i 15,206 | ( i 11,042) | ( i 10,365) | |||||||||||||||||
Inventories, net | i 20,963 | ( i 104,832) | ( i 29,770) | |||||||||||||||||
Prepaid expenses and other assets | i 11,828 | i 9,747 | ( i 11,744) | |||||||||||||||||
Accounts payable, accrued liabilities, deferred revenue and other liabilities | i 39,538 | i 30,458 | i 47,460 | |||||||||||||||||
Net cash provided by operating activities | i 539,374 | i 337,371 | i 364,805 | |||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Purchases of property, plant and equipment | ( i 78,068) | ( i 92,881) | ( i 90,124) | |||||||||||||||||
Proceeds from asset disposals | i 216 | i 4,669 | i 151 | |||||||||||||||||
Proceeds from sale of a business | i — | i 12,941 | i — | |||||||||||||||||
Investments in unconsolidated entities | i — | ( i 200) | ( i 6,750) | |||||||||||||||||
Acquisitions, net of cash acquired | ( i 138,225) | ( i 697,471) | ( i 31,202) | |||||||||||||||||
Net cash used in investing activities | ( i 216,077) | ( i 772,942) | ( i 127,925) | |||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Borrowings under debt arrangements | i 636,025 | i 900,000 | i — | |||||||||||||||||
Repayments under debt arrangements | ( i 546,025) | ( i 511,000) | ( i 19,757) | |||||||||||||||||
Proceeds from exercise of stock options | i 22,198 | i 29,336 | i 17,243 | |||||||||||||||||
Payments of withholding taxes for stock awards | ( i 2,146) | ( i 2,662) | ( i 4,095) | |||||||||||||||||
Purchases of TTC common stock | i — | ( i 20,043) | ( i 160,435) | |||||||||||||||||
Dividends paid on TTC common stock | ( i 107,698) | ( i 96,133) | ( i 85,031) | |||||||||||||||||
Net cash provided by (used in) financing activities | i 2,354 | i 299,498 | ( i 252,075) | |||||||||||||||||
Effect of exchange rates on cash and cash equivalents | i 2,413 | ( i 1,223) | ( i 5,937) | |||||||||||||||||
Net increase (decrease) in cash and cash equivalents | i 328,064 | ( i 137,296) | ( i 21,132) | |||||||||||||||||
Cash and cash equivalents as of the beginning of the fiscal period | i 151,828 | i 289,124 | i 310,256 | |||||||||||||||||
Cash and cash equivalents as of the end of the fiscal period | $ | i 479,892 | $ | i 151,828 | $ | i 289,124 | ||||||||||||||
Supplemental disclosures of cash flow information: | ||||||||||||||||||||
Cash paid during the fiscal year for: | ||||||||||||||||||||
Interest | $ | i 34,109 | $ | i 30,167 | $ | i 19,979 | ||||||||||||||
Income taxes | $ | i 69,524 | $ | i 54,738 | $ | i 75,805 | ||||||||||||||
Common Stock | Retained Earnings | Accumulated Other Comprehensive Loss | Total Stockholders' Equity | |||||||||||||||||||||||
Balance as of October 31, 2017 | $ | i 106,883 | $ | i 534,329 | $ | ( i 24,120) | $ | i 617,092 | ||||||||||||||||||
Cash
dividends paid on common stock - $ i 0.80 per share | — | ( i 85,031) | — | ( i 85,031) | ||||||||||||||||||||||
Issuance
of i 1,495,367 shares for exercised stock options and vested restricted stock units and performance share awards | i 1,496 | i 14,310 | — | i 15,806 | ||||||||||||||||||||||
Stock-based compensation expense | — | i 12,161 | — | i 12,161 | ||||||||||||||||||||||
Contribution of stock to a deferred compensation trust | — | i 1,437 | — | i 1,437 | ||||||||||||||||||||||
Purchase
of i 2,777,687 shares of common stock | ( i 2,778) | ( i 161,752) | — | ( i 164,530) | ||||||||||||||||||||||
Reclassification
due to the adoption of ASU 2018-12 | — | ( i 141) | i 141 | i — | ||||||||||||||||||||||
Other comprehensive income | — | — | i 42 | i 42 | ||||||||||||||||||||||
Net earnings | — | i 271,939 | — | i 271,939 | ||||||||||||||||||||||
Balance as of October 31, 2018 | i 105,601 | i 587,252 | ( i 23,937) | i 668,916 | ||||||||||||||||||||||
Cash
dividends paid on common stock - $ i 0.90 per share | — | ( i 96,133) | — | ( i 96,133) | ||||||||||||||||||||||
Issuance
of i 1,544,962 shares for exercised stock options and vested restricted stock units and performance share awards | i 1,545 | i 26,387 | — | i 27,932 | ||||||||||||||||||||||
Stock-based compensation expense | — | i 13,429 | — | i 13,429 | ||||||||||||||||||||||
Contribution of stock to a deferred compensation trust | — | i 1,404 | — | i 1,404 | ||||||||||||||||||||||
Purchase
of i 403,532 shares of common stock | ( i 404) | ( i 22,301) | — | ( i 22,705) | ||||||||||||||||||||||
Cumulative
transition adjustment due to the adoption of ASU 2014-09 | — | i 864 | — | i 864 | ||||||||||||||||||||||
Other comprehensive loss | — | — | ( i 8,112) | ( i 8,112) | ||||||||||||||||||||||
Net earnings | — | i 273,983 | — | i 273,983 | ||||||||||||||||||||||
Balance as of October 31, 2019 | i 106,742 | i 784,885 | ( i 32,049) | i 859,578 | ||||||||||||||||||||||
Cash
dividends paid on common stock - $ i 1.00 per share | — | ( i 107,698) | — | ( i 107,698) | ||||||||||||||||||||||
Issuance
of i 870,011 shares for exercised stock options and vested restricted stock units and performance share awards | i 870 | i 18,760 | — | i 19,630 | ||||||||||||||||||||||
Stock-based compensation expense | — | i 15,408 | — | i 15,408 | ||||||||||||||||||||||
Contribution of stock to a deferred compensation trust | — | i 2,568 | — | i 2,568 | ||||||||||||||||||||||
Purchase
of i 29,422 shares of common stock | ( i 29) | ( i 2,117) | — | ( i 2,146) | ||||||||||||||||||||||
Other comprehensive loss | — | — | ( i 2,213) | ( i 2,213) | ||||||||||||||||||||||
Net earnings | — | i 329,701 | — | i 329,701 | ||||||||||||||||||||||
Balance as of October 31, 2020 | $ | i 107,583 | $ | i 1,041,507 | $ | ( i 34,262) | $ | i 1,114,828 |
1 | Summary of Significant Accounting Policies and Related Data |
October 31 | 2020 | 2019 | ||||||||||||
Raw materials and work in process | $ | i 168,759 | $ | i 179,967 | ||||||||||
Finished goods and service parts | i 565,761 | i 553,767 | ||||||||||||
Total FIFO value | i 734,520 | i 733,734 | ||||||||||||
Less: adjustment to LIFO value | i 82,087 | i 82,071 | ||||||||||||
Total inventories, net | $ | i 652,433 | $ | i 651,663 |
October 31 | 2020 | 2019 | ||||||||||||
Land and land improvements | $ | i 57,387 | $ | i 55,613 | ||||||||||
Buildings and leasehold improvements | i 301,848 | i 276,556 | ||||||||||||
Machinery and equipment | i 499,312 | i 453,314 | ||||||||||||
Tooling | i 231,142 | i 226,870 | ||||||||||||
Computer hardware and software | i 102,312 | i 94,409 | ||||||||||||
Construction in process | i 48,157 | i 34,937 | ||||||||||||
Property, plant and equipment, gross | i 1,240,158 | i 1,141,699 | ||||||||||||
Less: accumulated depreciation | i 772,239 | i 704,382 | ||||||||||||
Property, plant and equipment, net | $ | i 467,919 | $ | i 437,317 |
Fiscal Years Ended October 31 | 2020 | 2019 | 2018 | |||||||||||||||||
Beginning balance | $ | i 96,604 | $ | i 76,214 | $ | i 74,155 | ||||||||||||||
Warranty provisions | i 60,273 | i 57,277 | i 49,160 | |||||||||||||||||
Acquisitions | i 2,557 | i 18,418 | i — | |||||||||||||||||
Warranty claims | ( i 67,241) | ( i 58,878) | ( i 45,662) | |||||||||||||||||
Changes in estimates | i 14,928 | i 3,573 | ( i 1,439) | |||||||||||||||||
Ending balance | $ | i 107,121 | $ | i 96,604 | $ | i 76,214 |
Fiscal Years Ended October 31 | 2020 | 2019 | 2018 | |||||||||||||||||
Basic | ||||||||||||||||||||
Weighted-average number of shares of common stock | i 107,647 | i 106,762 | i 106,356 | |||||||||||||||||
Assumed issuance of contingent shares | i 11 | i 11 | i 13 | |||||||||||||||||
Weighted-average number of shares of common stock outstanding – Basic | i 107,658 | i 106,773 | i 106,369 | |||||||||||||||||
Diluted | ||||||||||||||||||||
Weighted-average number of shares of common stock outstanding – Basic | i 107,658 | i 106,773 | i 106,369 | |||||||||||||||||
Effect of dilutive securities | i 1,005 | i 1,317 | i 2,288 | |||||||||||||||||
Weighted-average number of shares of common stock outstanding – Diluted | i 108,663 | i 108,090 | i 108,657 |
2 | Business Combinations |
March 2, 2020 | ||||||||
Cash and cash equivalents | $ | i 3,476 | ||||||
Receivables | i 6,342 | |||||||
Inventories | i 23,000 | |||||||
Prepaid expenses and other current assets | i 239 | |||||||
Property, plant and equipment | i 26,976 | |||||||
Goodwill | i 62,252 | |||||||
Other intangible assets | i 75,300 | |||||||
Accounts payable | ( i 4,075) | |||||||
Accrued liabilities | ( i 5,959) | |||||||
Deferred income tax liabilities | ( i 20,850) | |||||||
Total fair value of net assets acquired | i 166,701 | |||||||
Less: cash and cash equivalents acquired | ( i 3,476) | |||||||
Total Venture Products purchase price | $ | i 163,225 |
Weighted-Average Useful Life in Years | Gross Carrying Amount | Accumulated Amortization | Net | |||||||||||||||||||||||
Finite-lived - customer-related | i 16.0 | $ | i 19,100 | $ | ( i 796) | $ | i 18,304 | |||||||||||||||||||
Indefinite-lived - trade name | i 56,200 | — | i 56,200 | |||||||||||||||||||||||
Total other intangible assets, net | $ | i 75,300 | $ | ( i 796) | $ | i 74,504 |
April 1, 2019 | ||||||||
Cash and cash equivalents | $ | i 16,341 | ||||||
Receivables | i 65,674 | |||||||
Inventories | i 241,429 | |||||||
Prepaid expenses and other current assets | i 8,050 | |||||||
Property, plant and equipment | i 142,779 | |||||||
Goodwill | i 134,657 | |||||||
Other intangible assets: | ||||||||
Customer-related | i 130,800 | |||||||
Developed technology | i 20,900 | |||||||
Finite-lived trade names | i 5,200 | |||||||
Indefinite-lived trade names | i 103,700 | |||||||
Backlog | i 3,590 | |||||||
Other long-term assets | i 7,971 | |||||||
Accounts payable | ( i 35,892) | |||||||
Accrued liabilities | ( i 51,943) | |||||||
Deferred income tax liabilities | ( i 85,277) | |||||||
Other long-term liabilities | ( i 6,665) | |||||||
Total fair value of net assets acquired | i 701,314 | |||||||
Less: cash and cash equivalents acquired | ( i 16,341) | |||||||
Total CMW purchase price | $ | i 684,973 |
October 31, 2019 | October 31, 2018 | |||||||||||||
Net sales | $ | i 3,437,335 | $ | i 3,332,636 | ||||||||||
Net
earnings1 | i 363,452 | i 276,722 | ||||||||||||
Basic net earnings per share of common stock | i 3.40 | i 2.60 | ||||||||||||
Diluted
net earnings per share of common stock1 | $ | i 3.36 | $ | i 2.55 |
3 | Segment Data |
Fiscal Year Ended October 31, 2020 | Professional | Residential | Other | Total | ||||||||||||||||||||||
Net sales | $ | i 2,523,452 | $ | i 820,745 | $ | i 34,613 | $ | i 3,378,810 | ||||||||||||||||||
Intersegment gross sales (eliminations) | i 46,703 | i 80 | ( i 46,783) | — | ||||||||||||||||||||||
Earnings (loss) before income taxes | i 426,560 | i 113,669 | ( i 133,159) | i 407,070 | ||||||||||||||||||||||
Total assets | i 1,940,844 | i 282,061 | i 630,323 | i 2,853,228 | ||||||||||||||||||||||
Capital expenditures | i 49,975 | i 13,669 | i 14,424 | i 78,068 | ||||||||||||||||||||||
Depreciation and amortization | $ | i 70,460 | $ | i 12,607 | $ | i 12,548 | $ | i 95,615 |
Fiscal Year Ended October 31, 2019 | Professional | Residential | Other | Total | ||||||||||||||||||||||
Net sales | $ | i 2,443,448 | $ | i 661,274 | $ | i 33,362 | $ | i 3,138,084 | ||||||||||||||||||
Intersegment gross sales (eliminations) | i 59,453 | i 310 | ( i 59,763) | — | ||||||||||||||||||||||
Earnings (loss) before income taxes | i 380,914 | i 65,151 | ( i 123,932) | i 322,133 | ||||||||||||||||||||||
Total assets | i 1,592,065 | i 430,495 | i 307,987 | i 2,330,547 | ||||||||||||||||||||||
Capital expenditures | i 57,246 | i 16,970 | i 18,665 | i 92,881 | ||||||||||||||||||||||
Depreciation and amortization | $ | i 63,885 | $ | i 11,897 | $ | i 11,916 | $ | i 87,698 |
Fiscal Year Ended October 31, 2018 | Professional | Residential | Other | Total | ||||||||||||||||||||||
Net sales | $ | i 1,946,999 | $ | i 654,413 | $ | i 17,238 | $ | i 2,618,650 | ||||||||||||||||||
Intersegment gross sales (eliminations) | i 29,798 | i 312 | ( i 30,110) | — | ||||||||||||||||||||||
Earnings (loss) before income taxes | i 399,806 | i 64,807 | ( i 92,216) | i 372,397 | ||||||||||||||||||||||
Total assets | i 916,106 | i 199,273 | i 455,605 | i 1,570,984 | ||||||||||||||||||||||
Capital expenditures | i 58,109 | i 16,014 | i 16,001 | i 90,124 | ||||||||||||||||||||||
Depreciation and amortization | $ | i 38,585 | $ | i 9,999 | $ | i 12,693 | $ | i 61,277 |
Fiscal Years Ended October 31 | 2020 | 2019 | 2018 | |||||||||||||||||
Corporate expenses | $ | ( i 108,396) | $ | ( i 124,422) | $ | ( i 92,541) | ||||||||||||||
Interest expense | ( i 33,156) | ( i 28,835) | ( i 19,096) | |||||||||||||||||
Earnings from wholly-owned domestic distribution companies and other income, net | i 8,393 | i 29,325 | i 19,421 | |||||||||||||||||
Total operating loss | $ | ( i 133,159) | $ | ( i 123,932) | $ | ( i 92,216) |
Fiscal Years Ended October 31 | 2020 | 2019 | 2018 | |||||||||||||||||
Equipment | $ | i 2,985,295 | $ | i 2,747,935 | $ | i 2,210,047 | ||||||||||||||
Irrigation and lighting | i 393,515 | i 390,149 | i 408,603 | |||||||||||||||||
Total net sales | $ | i 3,378,810 | $ | i 3,138,084 | $ | i 2,618,650 |
Fiscal Years Ended October 31 | United States | International Countries | Total | |||||||||||||||||
2020 | ||||||||||||||||||||
Net sales | $ | i 2,700,694 | $ | i 678,116 | $ | i 3,378,810 | ||||||||||||||
Long-lived assets | $ | i 426,378 | $ | i 41,541 | $ | i 467,919 | ||||||||||||||
2019 | ||||||||||||||||||||
Net sales | $ | i 2,413,153 | $ | i 724,931 | $ | i 3,138,084 | ||||||||||||||
Long-lived assets | $ | i 395,937 | $ | i 41,380 | $ | i 437,317 | ||||||||||||||
2018 | ||||||||||||||||||||
Net sales | $ | i 1,975,562 | $ | i 643,088 | $ | i 2,618,650 | ||||||||||||||
Long-lived assets | $ | i 230,246 | $ | i 41,213 | $ | i 271,459 |
4 | Revenue
|
Fiscal Year Ended October 31, 2020 | Professional | Residential | Other | Total | ||||||||||||||||||||||
Revenue by product type: | ||||||||||||||||||||||||||
Equipment | $ | i 2,175,794 | $ | i 787,716 | $ | i 21,785 | $ | i 2,985,295 | ||||||||||||||||||
Irrigation | i 347,658 | i 33,029 | i 12,828 | i 393,515 | ||||||||||||||||||||||
Total net sales | $ | i 2,523,452 | $ | i 820,745 | $ | i 34,613 | $ | i 3,378,810 | ||||||||||||||||||
Revenue by geographic market: | ||||||||||||||||||||||||||
United States | $ | i 1,976,690 | $ | i 689,391 | $ | i 34,613 | $ | i 2,700,694 | ||||||||||||||||||
International Countries | i 546,762 | i 131,354 | i — | i 678,116 | ||||||||||||||||||||||
Total net sales | $ | i 2,523,452 | $ | i 820,745 | $ | i 34,613 | $ | i 3,378,810 |
Fiscal Year Ended October 31, 2019 | Professional | Residential | Other | Total | ||||||||||||||||||||||
Revenue by product type: | ||||||||||||||||||||||||||
Equipment | $ | i 2,097,965 | $ | i 628,521 | $ | i 21,449 | $ | i 2,747,935 | ||||||||||||||||||
Irrigation | i 345,483 | i 32,753 | i 11,913 | i 390,149 | ||||||||||||||||||||||
Total net sales | $ | i 2,443,448 | $ | i 661,274 | $ | i 33,362 | $ | i 3,138,084 | ||||||||||||||||||
Revenue by geographic market: | ||||||||||||||||||||||||||
United States | $ | i 1,853,054 | $ | i 526,737 | $ | i 33,362 | $ | i 2,413,153 | ||||||||||||||||||
International Countries | i 590,394 | i 134,537 | i — | i 724,931 | ||||||||||||||||||||||
Total net sales | $ | i 2,443,448 | $ | i 661,274 | $ | i 33,362 | $ | i 3,138,084 |
Fiscal Year Ended October 31, 2018 | Professional | Residential | Other | Total | ||||||||||||||||||||||
Revenue by product type: | ||||||||||||||||||||||||||
Equipment | $ | i 1,582,024 | $ | i 617,827 | $ | i 10,196 | $ | i 2,210,047 | ||||||||||||||||||
Irrigation | i 364,975 | i 36,586 | i 7,042 | i 408,603 | ||||||||||||||||||||||
Total net sales | $ | i 1,946,999 | $ | i 654,413 | $ | i 17,238 | $ | i 2,618,650 | ||||||||||||||||||
Revenue by geographic market: | ||||||||||||||||||||||||||
United States | $ | i 1,441,815 | $ | i 516,509 | $ | i 17,238 | $ | i 1,975,562 | ||||||||||||||||||
International Countries | i 505,184 | i 137,904 | i — | i 643,088 | ||||||||||||||||||||||
Total net sales | $ | i 1,946,999 | $ | i 654,413 | $ | i 17,238 | $ | i 2,618,650 |
5 | Goodwill and Other Intangible Assets |
Professional | Residential | Other | Total | |||||||||||||||||||||||
Balance as of October 31, 2018 | $ | i 214,827 | $ | i 10,463 | $ | i — | $ | i 225,290 | ||||||||||||||||||
Goodwill acquired | i 135,524 | i — | i 1,534 | i 137,058 | ||||||||||||||||||||||
Translation adjustments | ( i 101) | i 6 | i — | ( i 95) | ||||||||||||||||||||||
Balance as of October 31, 2019 | i 350,250 | i 10,469 | i 1,534 | i 362,253 | ||||||||||||||||||||||
Goodwill acquired | i 62,252 | i — | i — | i 62,252 | ||||||||||||||||||||||
Purchase price allocation adjustment | ( i 866) | i — | i — | ( i 866) | ||||||||||||||||||||||
Translation adjustments | i 425 | i 11 | i — | i 436 | ||||||||||||||||||||||
Balance as of October 31, 2020 | $ | i 412,061 | $ | i 10,480 | $ | i 1,534 | $ | i 424,075 |
October 31, 2020 | Weighted-Average Useful Life in Years | Gross Carrying Amount | Accumulated Amortization | Net | ||||||||||||||||||||||
Patents | i 9.9 | $ | i 18,257 | $ | ( i 13,919) | $ | i 4,338 | |||||||||||||||||||
Non-compete agreements | i 5.5 | i 6,892 | ( i 6,831) | i 61 | ||||||||||||||||||||||
Customer-related | i 18.2 | i 239,634 | ( i 48,005) | i 191,629 | ||||||||||||||||||||||
Developed technology | i 7.6 | i 51,995 | ( i 35,208) | i 16,787 | ||||||||||||||||||||||
Trade names | i 15.4 | i 7,530 | ( i 2,552) | i 4,978 | ||||||||||||||||||||||
Backlog and other | i 0.6 | i 4,390 | ( i 4,390) | i — | ||||||||||||||||||||||
Total finite-lived | i 15.5 | i 328,698 | ( i 110,905) | i 217,793 | ||||||||||||||||||||||
Indefinite-lived - trade names | i 190,512 | — | i 190,512 | |||||||||||||||||||||||
Total other intangible assets, net | $ | i 519,210 | $ | ( i 110,905) | $ | i 408,305 |
October 31, 2019 | Weighted-Average Useful Life in Years | Gross Carrying Amount | Accumulated Amortization | Net | ||||||||||||||||||||||
Patents | i 9.9 | $ | i 18,230 | $ | ( i 13,102) | $ | i 5,128 | |||||||||||||||||||
Non-compete agreements | i 5.5 | i 6,868 | ( i 6,786) | i 82 | ||||||||||||||||||||||
Customer-related | i 18.4 | i 220,390 | ( i 33,547) | i 186,843 | ||||||||||||||||||||||
Developed technology | i 7.6 | i 51,911 | ( i 31,289) | i 20,622 | ||||||||||||||||||||||
Trade names | i 15.4 | i 7,496 | ( i 2,109) | i 5,387 | ||||||||||||||||||||||
Backlog and other | i 0.6 | i 4,390 | ( i 4,390) | i — | ||||||||||||||||||||||
Total finite-lived | i 15.5 | i 309,285 | ( i 91,223) | i 218,062 | ||||||||||||||||||||||
Indefinite-lived - trade names | i 134,312 | — | i 134,312 | |||||||||||||||||||||||
Total other intangible assets, net | $ | i 443,597 | $ | ( i 91,223) | $ | i 352,374 |
6 | Indebtedness |
October 31, 2020 | October 31, 2019 | |||||||||||||
Revolving credit facility | $ | i — | $ | i — | ||||||||||
$ i 200
million term loan | i 100,000 | i 100,000 | ||||||||||||
$ i 300
million term loan | i 180,000 | i 180,000 | ||||||||||||
$ i 190
million term loan | i 90,000 | i — | ||||||||||||
i 3.81%
series A senior notes | i 100,000 | i 100,000 | ||||||||||||
i 3.91%
series B senior notes | i 100,000 | i 100,000 | ||||||||||||
i 7.8%
debentures | i 100,000 | i 100,000 | ||||||||||||
i 6.625%
senior notes | i 123,978 | i 123,916 | ||||||||||||
Less: unamortized discounts, debt issuance costs, and deferred charges | i 2,855 | i 3,103 | ||||||||||||
Total long-term debt | i 791,123 | i 700,813 | ||||||||||||
Less: current portion of long-term debt | i 99,873 | i 79,914 | ||||||||||||
Long-term debt, less current portion | $ | i 691,250 | $ | i 620,899 |
7 | Management Actions |
8 | Investment
in Joint Venture |
For the Twelve Months Ended October 31 | 2020 | 2019 | 2018 | |||||||||||||||||
Revenue | $ | i 31,040 | $ | i 47,569 | $ | i 42,051 | ||||||||||||||
Interest and operating expenses, net | ( i 14,177) | ( i 21,011) | ( i 17,288) | |||||||||||||||||
Net income | $ | i 16,863 | $ | i 26,558 | $ | i 24,763 |
As of October 31 | 2020 | 2019 | ||||||||||||
Finance receivables, net | $ | i 386,781 | $ | i 486,834 | ||||||||||
Other assets | i 2,929 | i 3,733 | ||||||||||||
Total assets | $ | i 389,710 | $ | i 490,567 | ||||||||||
Notes payable | $ | i 332,838 | $ | i 419,308 | ||||||||||
Other liabilities | i 12,994 | i 17,594 | ||||||||||||
Partners' capital | i 43,878 | i 53,665 | ||||||||||||
Total liabilities and partners' capital | $ | i 389,710 | $ | i 490,567 |
9 | Income
Taxes |
Fiscal Years Ended October 31 | 2020 | 2019 | 2018 | |||||||||||||||||
Earnings before income taxes: | ||||||||||||||||||||
U.S. | $ | i 369,016 | $ | i 283,730 | $ | i 333,136 | ||||||||||||||
Foreign | i 38,054 | i 38,403 | i 39,261 | |||||||||||||||||
Total earnings before income taxes | $ | i 407,070 | $ | i 322,133 | $ | i 372,397 |
Fiscal Years Ended October 31 | 2020 | 2019 | 2018 | |||||||||||||||||
Statutory federal income tax rate | i 21.0 | % | i 21.0 | % | i 23.3 | % | ||||||||||||||
Excess deduction for stock compensation | ( i 1.7) | ( i 3.7) | ( i 3.5) | |||||||||||||||||
Domestic manufacturer's deduction | i — | i 0.1 | ( i 0.9) | |||||||||||||||||
State and local income taxes, net of federal benefit | i 2.4 | i 1.1 | i 1.3 | |||||||||||||||||
Foreign operations | ( i 0.6) | ( i 0.3) | ( i 0.5) | |||||||||||||||||
Federal research tax credit | ( i 1.7) | ( i 1.5) | ( i 1.2) | |||||||||||||||||
Foreign-derived intangible income | i — | ( i 1.3) | i — | |||||||||||||||||
Remeasurement of deferred tax assets and liabilities | i — | ( i 0.1) | i 5.2 | |||||||||||||||||
Deemed repatriation tax | i — | ( i 0.2) | i 3.6 | |||||||||||||||||
Other, net | ( i 0.4) | ( i 0.2) | ( i 0.3) | |||||||||||||||||
Effective tax rate | i 19.0 | % | i 14.9 | % | i 27.0 | % |
Fiscal Years Ended October 31 | 2020 | 2019 | 2018 | |||||||||||||||||
Current provision: | ||||||||||||||||||||
Federal | $ | i 58,243 | $ | i 37,415 | $ | i 64,375 | ||||||||||||||
State | i 11,322 | i 7,495 | i 6,192 | |||||||||||||||||
Foreign | i 5,534 | i 6,846 | i 7,087 | |||||||||||||||||
Total current provision | $ | i 75,099 | $ | i 51,756 | $ | i 77,654 | ||||||||||||||
Deferred provision (benefit): | ||||||||||||||||||||
Federal | $ | i 1,710 | $ | ( i 37) | $ | i 22,074 | ||||||||||||||
State | i 634 | ( i 3,205) | i 308 | |||||||||||||||||
Foreign | ( i 74) | ( i 364) | i 422 | |||||||||||||||||
Total deferred provision (benefit) | i 2,270 | ( i 3,606) | i 22,804 | |||||||||||||||||
Total provision for income taxes | $ | i 77,369 | $ | i 48,150 | $ | i 100,458 |
October 31 | 2020 | 2019 | ||||||||||||
Deferred income tax assets: | ||||||||||||||
Compensation and benefits | $ | i 30,363 | $ | i 27,969 | ||||||||||
Warranty and insurance | i 28,480 | i 25,788 | ||||||||||||
Lease liabilities | i 20,843 | — | ||||||||||||
Advertising and sales allowance | i 6,937 | i 8,866 | ||||||||||||
Inventory | i 4,937 | i 4,005 | ||||||||||||
Deferred revenue | i 2,910 | i 4,373 | ||||||||||||
Other | i 9,643 | i 4,372 | ||||||||||||
Valuation allowance | ( i 3,570) | ( i 3,199) | ||||||||||||
Total deferred income tax assets | $ | i 100,543 | $ | i 72,174 | ||||||||||
Deferred income tax liabilities: | ||||||||||||||
Right-of-use assets | $ | ( i 20,179) | $ | — | ||||||||||
Depreciation | ( i 49,018) | ( i 40,964) | ||||||||||||
Amortization | ( i 95,315) | ( i 75,538) | ||||||||||||
Total deferred income tax liabilities | ( i 164,512) | ( i 116,502) | ||||||||||||
Deferred income tax liabilities, net | $ | ( i 63,969) | $ | ( i 44,328) |
Unrecognized tax benefits as of October 31, 2019 | $ | i 2,673 | ||||||
Increase as a result of tax positions taken during a prior period | i 166 | |||||||
Decrease as a result of tax positions taken during the current period | ( i 183) | |||||||
Increase as a result of tax positions taken during the current period | i 291 | |||||||
Reductions as a result of statute of limitations lapses | ( i 87) | |||||||
Unrecognized tax benefits as of October 31, 2020 | $ | i 2,860 |
10 | Stock-Based
Compensation Plans |
Fiscal Years Ended October 31 | 2020 | 2019 | 2018 | |||||||||||||||||
Unrestricted common stock awards | $ | i 693 | $ | i 592 | $ | i 530 | ||||||||||||||
Stock option awards | i 9,163 | i 6,537 | i 5,006 | |||||||||||||||||
Performance share awards | i 2,123 | i 3,070 | i 3,628 | |||||||||||||||||
Restricted stock unit awards | i 3,429 | i 3,230 | i 2,997 | |||||||||||||||||
Total compensation cost for stock-based awards | $ | i 15,408 | $ | i 13,429 | $ | i 12,161 | ||||||||||||||
Related tax benefit from stock-based awards | $ | i 3,696 | $ | i 3,200 | $ | i 2,905 |
Fiscal Years Ended October 31 | 2020 | 2019 | 2018 | |||||||||||||||||
Expected life of option in years | i 6.31 | i 6.31 | i 6.04 | |||||||||||||||||
Expected stock price volatility | i 19.53 | % | i 19.83 | % | i 20.58 | % | ||||||||||||||
Risk-free interest rate | i 1.73 | % | i 2.77 | % | i 2.21 | % | ||||||||||||||
Expected dividend yield | i 0.99 | % | i 1.18 | % | i 0.97 | % | ||||||||||||||
Per share weighted-average fair value at date of grant | $ | i 15.23 | $ | i 12.83 | $ | i 14.25 |
Stock Option Awards | Weighted-Average Exercise Price | Weighted-Average Contractual Life (years) | Aggregate Intrinsic Value (in thousands) | |||||||||||||||||||||||
Outstanding as of October 31, 2019 | i 2,848,120 | $ | i 44.34 | i 5.7 | $ | i 93,392 | ||||||||||||||||||||
Granted | i 536,890 | i 76.07 | ||||||||||||||||||||||||
Exercised | ( i 734,398) | i 31.10 | ||||||||||||||||||||||||
Forfeited | ( i 4,009) | i 75.23 | ||||||||||||||||||||||||
Outstanding as of October 31, 2020 | i 2,646,603 | $ | i 54.40 | i 6.2 | $ | i 73,305 | ||||||||||||||||||||
Exercisable as of October 31, 2020 | i 1,609,770 | $ | i 45.22 | i 4.8 | $ | i 59,364 |
Fiscal Years Ended October 31 | 2020 | 2019 | 2018 | |||||||||||||||||
Market value of stock options exercised | $ | i 56,761 | $ | i 92,352 | $ | i 70,775 | ||||||||||||||
Intrinsic
value of stock options exercised1 | $ | i 33,920 | $ | i 62,288 | $ | i 53,778 |
Fiscal Years Ended October 31 | 2020 | 2019 | 2018 | |||||||||||||||||
Weighted-average fair value per award at date of grant | $ | i 77.33 | $ | i 59.58 | $ | i 65.40 | ||||||||||||||
Fair value of performance share awards vested | $ | i 6,271 | $ | i 6,300 | $ | i 8,419 |
Performance Shares | Weighted-Average Fair Value at Date of Grant | |||||||||||||
Unvested as of October 31, 2019 | i 192,854 | $ | i 59.47 | |||||||||||
Granted | i 81,655 | i 77.33 | ||||||||||||
Vested | ( i 82,782) | i 54.52 | ||||||||||||
Forfeited | ( i 4,306) | i 61.27 | ||||||||||||
Unvested as of October 31, 2020 | i 187,421 | $ | i 67.58 |
Fiscal Years Ended October 31 | 2020 | 2019 | 2018 | |||||||||||||||||
Weighted-average fair value per award at date of grant | $ | i 74.55 | $ | i 66.26 | $ | i 63.24 | ||||||||||||||
Fair value of restricted stock units vested | $ | i 3,410 | $ | i 3,083 | $ | i 4,888 |
Restricted Stock Units | Weighted-Average Fair Value at Date of Grant | |||||||||||||
Unvested as of October 31, 2019 | i 124,467 | $ | i 65.30 | |||||||||||
Granted | i 27,161 | i 74.55 | ||||||||||||
Vested | ( i 48,212) | i 64.97 | ||||||||||||
Forfeited | ( i 3,136) | i 70.40 | ||||||||||||
Unvested as of October 31, 2020 | i 100,280 | $ | i 67.69 |
11 | Stockholders'
Equity |
As of October 31 | 2020 | 2019 | 2018 | |||||||||||||||||
Foreign currency translation adjustments | $ | i 24,508 | $ | i 31,025 | $ | i 29,711 | ||||||||||||||
Pension and post-retirement benefits | i 5,106 | i 4,861 | i 561 | |||||||||||||||||
Cash flow derivative instruments | i 4,648 | ( i 3,837) | ( i 6,335) | |||||||||||||||||
Total accumulated other comprehensive loss | $ | i 34,262 | $ | i 32,049 | $ | i 23,937 |
Foreign Currency Translation Adjustments | Pension Benefits | Cash Flow Derivative Instruments | Total | |||||||||||||||||||||||
Balance as of October 31, 2019 | $ | i 31,025 | $ | i 4,861 | $ | ( i 3,837) | $ | i 32,049 | ||||||||||||||||||
Other comprehensive (income) loss before reclassifications | ( i 6,517) | i 245 | i 14,159 | i 7,887 | ||||||||||||||||||||||
Amounts reclassified from AOCL | — | — | ( i 5,674) | ( i 5,674) | ||||||||||||||||||||||
Net current period other comprehensive (income) loss | ( i 6,517) | i 245 | i 8,485 | i 2,213 | ||||||||||||||||||||||
Balance as of October 31, 2020 | $ | i 24,508 | $ | i 5,106 | $ | i 4,648 | $ | i 34,262 |
Foreign Currency Translation Adjustments | Pension and Post-Retirement Benefits | Cash Flow Derivative Instruments | Total | |||||||||||||||||||||||
Balance as of October 31, 2018 | $ | i 29,711 | $ | i 561 | $ | ( i 6,335) | $ | i 23,937 | ||||||||||||||||||
Other comprehensive (income) loss before reclassifications | i 1,314 | i 4,300 | ( i 4,048) | i 1,566 | ||||||||||||||||||||||
Amounts reclassified from AOCL | — | — | i 6,546 | i 6,546 | ||||||||||||||||||||||
Net current period other comprehensive loss | i 1,314 | i 4,300 | i 2,498 | i 8,112 | ||||||||||||||||||||||
Balance as of October 31, 2019 | $ | i 31,025 | $ | i 4,861 | $ | ( i 3,837) | $ | i 32,049 |
12 | Commitments and Contingencies |
13 | Leases |
Fiscal Year Ended October 31 | 2020 | |||||||
Operating lease expense | $ | i 19,637 | ||||||
Short-term lease expense | i 2,949 | |||||||
Variable lease expense | i 134 | |||||||
Total lease expense | $ | i 22,720 |
Fiscal Year Ended October 31 | 2020 | |||||||
Operating cash flows for amounts included in the measurement of lease liabilities | $ | i 17,762 | ||||||
Right-of-use assets obtained in exchange for lease obligations | $ | i 22,667 |
October 31, 2020 | ||||||||
Weighted-average remaining lease term of operating leases in years | i 7.1 | |||||||
Weighted-average discount rate of operating leases | i 2.79 | % |
October 31, 2020 | ||||||||
2021 | $ | i 18,077 | ||||||
2022 | i 15,391 | |||||||
2023 | i 12,293 | |||||||
2024 | i 10,936 | |||||||
2025 | i 9,919 | |||||||
Thereafter | i 23,604 | |||||||
Total future minimum operating lease payments | i 90,220 | |||||||
Less: imputed interest | i 8,132 | |||||||
Present value of operating lease liabilities | $ | i 82,088 |
October 31, 2019 | ||||||||
2020 | $ | i 17,135 | ||||||
2021 | i 15,764 | |||||||
2022 | i 12,806 | |||||||
2023 | i 9,772 | |||||||
2024 | i 8,863 | |||||||
Thereafter | i 18,732 | |||||||
Total future minimum lease payments | $ | i 83,072 |
14 | Derivative Instruments and Hedging Activities |
Fair Value as of October 31 | 2020 | 2019 | ||||||||||||
Derivative assets: | ||||||||||||||
Derivatives designated as cash flow hedging instruments: | ||||||||||||||
Prepaid expenses and other current assets | ||||||||||||||
Forward currency contracts | $ | i 802 | $ | i 8,642 | ||||||||||
Derivatives not designated as cash flow hedging instruments: | ||||||||||||||
Prepaid expenses and other current assets | ||||||||||||||
Forward currency contracts | i 131 | i 2,256 | ||||||||||||
Total assets | $ | i 933 | $ | i 10,898 | ||||||||||
Derivative liabilities: | ||||||||||||||
Derivatives designated as cash flow hedging instruments: | ||||||||||||||
Accrued liabilities | ||||||||||||||
Forward currency contracts | $ | i 2,687 | $ | i — | ||||||||||
Derivatives not designated as cash flow hedging instruments: | ||||||||||||||
Accrued liabilities | ||||||||||||||
Forward currency contracts | ( i 203) | i 9 | ||||||||||||
Total liabilities | $ | i 2,484 | $ | i 9 |
Fair Value as of October 31 | 2020 | 2019 | ||||||||||||
Derivative assets: | ||||||||||||||
Forward currency contracts: | ||||||||||||||
Gross amounts of recognized assets | $ | i 1,139 | $ | i 11,056 | ||||||||||
Gross liabilities offset in the Consolidated Balance Sheets | ( i 206) | ( i 158) | ||||||||||||
Net amounts of assets presented in the Consolidated Balance Sheets | $ | i 933 | $ | i 10,898 | ||||||||||
Derivative liabilities: | ||||||||||||||
Forward currency contracts: | ||||||||||||||
Gross amounts of recognized liabilities | $ | ( i 3,233) | $ | ( i 9) | ||||||||||
Gross assets offset in the Consolidated Balance Sheets | i 749 | i — | ||||||||||||
Net amounts of liabilities presented in the Consolidated Balance Sheets | $ | ( i 2,484) | $ | ( i 9) | ||||||||||
Gain Reclassified from AOCL into Income | (Loss) Recognized in OCI on Derivatives | |||||||||||||||||||||||||
Fiscal Years Ended October 31 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Derivatives designated as cash flow hedging instruments: | ||||||||||||||||||||||||||
Forward currency contracts: | ||||||||||||||||||||||||||
Net sales | $ | i 5,023 | $ | i 5,732 | $ | ( i 8,232) | $ | ( i 2,268) | ||||||||||||||||||
Cost of sales | i 651 | i 814 | ( i 253) | ( i 230) | ||||||||||||||||||||||
Total derivatives designated as cash flow hedging instruments | $ | i 5,674 | $ | i 6,546 | $ | ( i 8,485) | $ | ( i 2,498) |
Gain Recognized in Earnings on Cash Flow Hedging Instruments | ||||||||||||||
Fiscal Year Ended October 31, 2020 | Net Sales | Cost of Sales | ||||||||||||
Total Consolidated Statements of Earnings income (expense) amounts in which the effects of cash flow hedging instruments are recorded | $ | i 3,378,810 | $ | ( i 2,189,036) | ||||||||||
Gain on derivatives designated as cash flow hedging instruments: | ||||||||||||||
Forward currency contracts: | ||||||||||||||
Amount of gain reclassified from AOCL into earnings | i 5,023 | i 651 | ||||||||||||
Gain on components excluded from effectiveness testing recognized in earnings based on changes in fair value | $ | i 3,229 | $ | i 313 |
Gain Recognized in Earnings on Cash Flow Hedging Instruments | ||||||||||||||
Fiscal Year Ended October 31, 2019 | Net Sales | Cost of Sales | ||||||||||||
Total Consolidated Statements of Earnings income (expense) amounts in which the effects of cash flow hedging instruments are recorded | $ | i 3,138,084 | $ | ( i 2,090,121) | ||||||||||
Gain on derivatives designated as cash flow hedging instruments: | ||||||||||||||
Forward currency contracts: | ||||||||||||||
Amount of gain reclassified from AOCL into earnings | i 5,732 | i 814 | ||||||||||||
Gain on components excluded from effectiveness testing recognized in earnings based on changes in fair value | $ | i 5,358 | $ | i 135 |
Fiscal Years Ended October 31 | 2020 | 2019 | ||||||||||||
Loss on derivative instruments not designated as cash flow hedging instruments: | ||||||||||||||
Forward currency contracts: | ||||||||||||||
Other income, net | $ | ( i 5,792) | $ | ( i 2,087) | ||||||||||
Total loss on derivatives not designated as cash flow hedging instruments | $ | ( i 5,792) | $ | ( i 2,087) |
15 | Fair Value Measurements |
Fair Value Measurements Using Inputs Considered as: | ||||||||||||||||||||||||||
October 31, 2020 | Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Forward currency contracts | $ | i 933 | $ | i — | $ | i 933 | $ | i — | ||||||||||||||||||
Total assets | $ | i 933 | $ | i — | $ | i 933 | $ | i — | ||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Forward currency contracts | $ | i 2,484 | $ | i — | $ | i 2,484 | $ | i — | ||||||||||||||||||
Total liabilities | $ | i 2,484 | $ | i — | $ | i 2,484 | $ | i — |
Fair Value Measurements Using Inputs Considered as: | ||||||||||||||||||||||||||
October 31, 2019 | Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Forward currency contracts | $ | i 10,898 | $ | i — | $ | i 10,898 | $ | i — | ||||||||||||||||||
Total assets | $ | i 10,898 | $ | i — | $ | i 10,898 | $ | i — | ||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Forward currency contracts | $ | i 9 | $ | i — | $ | i 9 | $ | i — | ||||||||||||||||||
Total liabilities | $ | i 9 | $ | i — | $ | i 9 | $ | i — |
16 | Employee
Retirement Plans |
17 | Other Income, Net |
Fiscal Years Ended October 31 | 2020 | 2019 | 2018 | |||||||||||||||||
Interest income | $ | i 1,255 | $ | i 2,753 | $ | i 2,463 | ||||||||||||||
Retail financing revenue | i 1,080 | i 1,178 | i 1,232 | |||||||||||||||||
Foreign currency exchange rate gain | i 2,034 | i 1,558 | i 1,127 | |||||||||||||||||
Non-cash income from finance affiliate | i 7,663 | i 11,948 | i 11,143 | |||||||||||||||||
Net periodic benefit income (loss) on defined benefit pension and post-retirement plans | ( i 1,344) | i 6,822 | i — | |||||||||||||||||
Miscellaneous | i 3,181 | i 1,680 | i 2,443 | |||||||||||||||||
Total other income, net | $ | i 13,869 | $ | i 25,939 | $ | i 18,408 |
18 | Subsequent Events |
19 | Quarterly
Financial Data (Unaudited) |
Quarter | ||||||||||||||||||||||||||
Fiscal Year Ended October 31, 2020 | First | Second | Third | Fourth | ||||||||||||||||||||||
Net sales | $ | i 767,483 | $ | i 929,398 | $ | i 840,972 | $ | i 840,957 | ||||||||||||||||||
Gross profit | i 288,088 | i 306,717 | i 294,574 | i 300,395 | ||||||||||||||||||||||
Net earnings | i 70,091 | i 98,446 | i 88,968 | i 72,196 | ||||||||||||||||||||||
Basic
net earnings per share1 | i 0.65 | i 0.92 | i 0.83 | i 0.67 | ||||||||||||||||||||||
Diluted
net earnings per share1 | $ | i 0.65 | $ | i 0.91 | $ | i 0.82 | $ | i 0.66 |
Quarter | ||||||||||||||||||||||||||
Fiscal Year Ended October 31, 2019 | First | Second 2 | Third 2 | Fourth | ||||||||||||||||||||||
Net sales | $ | i 602,956 | $ | i 962,036 | $ | i 838,713 | $ | i 734,379 | ||||||||||||||||||
Gross profit | i 215,617 | i 321,298 | i 265,981 | i 245,067 | ||||||||||||||||||||||
Net earnings | i 59,540 | i 115,570 | i 60,607 | i 38,266 | ||||||||||||||||||||||
Basic
net earnings per share1 | i 0.56 | i 1.08 | i 0.57 | i 0.36 | ||||||||||||||||||||||
Diluted
net earnings per share1 | $ | i 0.55 | $ | i 1.07 | $ | i 0.56 | $ | i 0.35 |
Management's Report on Internal Control over Financial Reporting | |||||
Report of Independent Registered Public Accounting Firm | |||||
Consolidated
Statements of Earnings for the fiscal years ended October 31, 2020, 2019, and 2018 | |||||
Consolidated Statements of Comprehensive Income for the fiscal years ended October 31, 2020, 2019, and 2018 | |||||
Consolidated Balance Sheets as of October 31, 2020 and 2019 | |||||
Consolidated Statements of Cash Flows for the fiscal years ended October 31, 2020, 2019, and 2018 | |||||
Consolidated Statements of Stockholders' Equity for the fiscal years ended October 31, 2020, 2019, and 2018 | |||||
Notes to Consolidated Financial Statements |
Exhibit Number | Description | |||||||
2.1 (1) | ||||||||
2.2 (2) | ||||||||
2.3 (3) | ||||||||
2.4 (4) | ||||||||
2.5 (1) | ||||||||
2.6 | ||||||||
2.7 (2) | ||||||||
2.8 (3) | ||||||||
2.9 | ||||||||
2.10 |
2.11 | ||||||||
2.12 (3) | ||||||||
2.13 (4) | ||||||||
2.14 | ||||||||
2.15 | ||||||||
3.1 and 4.1 | ||||||||
3.2 and 4.2 | ||||||||
3.3 and 4.3 | ||||||||
4.4 | ||||||||
4.5 | ||||||||
4.6 | Indenture dated as of January 31, 1997 between Registrant and First National Trust Association, as Trustee, relating to The Toro Company's 7.80% Debentures due June 15, 2027 (incorporated by reference to Exhibit 4(a) to Registrant's Current Report on Form 8-K dated June 24, 1997, Commission File No. 1-8649). (Filed on paper - hyperlink not required pursuant to Rule 105 of Regulation S-T) | |||||||
4.7 | ||||||||
4.8 | ||||||||
4.9 | ||||||||
10.1 | ||||||||
10.2 | ||||||||
10.3 | ||||||||
10.4 | ||||||||
10.5 | ||||||||
10.6 | ||||||||
10.7 | ||||||||
10.8 | ||||||||
10.9 |
10.10 | ||||||||
10.11 | ||||||||
10.12 | ||||||||
10.13 | ||||||||
10.14 | ||||||||
10.15 | ||||||||
10.16 | ||||||||
10.17 | ||||||||
10.18 | ||||||||
10.19 | ||||||||
10.20 | ||||||||
10.21 | ||||||||
10.22 | ||||||||
10.23 | ||||||||
10.24 | ||||||||
10.25 (1) | ||||||||
10.26 (2) | ||||||||
10.27 | ||||||||
10.28 | ||||||||
10.29 | ||||||||
10.30 |
10.31 | ||||||||
21 | ||||||||
23.1 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32 | ||||||||
101 | The following financial information from The Toro Company's Annual Report on Form 10-K for the fiscal year ended October 31, 2020, filed with the SEC on December 18, 2020, formatted in Inline eXtensible Business Reporting Language (Inline XBRL): (i) Consolidated Statements of Earnings for each of the fiscal years in the three-year period ended October 31, 2020, (ii) Consolidated Statements of Comprehensive Income for each of the fiscal years in the three-year period ended October 31, 2020, (iii) Consolidated Balance Sheets as of October 31, 2020 and 2019, (iv) Consolidated Statements of Cash Flows for each of the fiscal years in the three-year period ended October 31, 2020, (v) Consolidated Statements of Stockholders' Equity each of the fiscal years in the three-year period ended October 31, 2020, and (vi) Notes to Consolidated Financial Statements (filed herewith). | |||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
THE TORO COMPANY | ||||||||||||||
(Registrant) | ||||||||||||||
By: | /s/ Renee J. Peterson | Dated: | December 18, 2020 | |||||||||||
Renee J. Peterson Vice President, Treasurer and Chief Financial Officer |
Signature | Title | Date | ||||||||||||
/s/ Richard M. Olson | Chairman of the Board, President and Chief Executive Officer and Director (principal executive officer) | December 18, 2020 | ||||||||||||
Richard M. Olson | ||||||||||||||
/s/ Renee J. Peterson | Vice President, Treasurer and Chief Financial Officer (principal financial and accounting officer) | December 18, 2020 | ||||||||||||
Renee J. Peterson | ||||||||||||||
/s/ Janet K. Cooper | Director | December 18, 2020 | ||||||||||||
Janet K. Cooper | ||||||||||||||
/s/ Gary L. Ellis | Director | December 18, 2020 | ||||||||||||
Gary L. Ellis | ||||||||||||||
/s/ Jeffrey M. Ettinger | Director | December 18, 2020 | ||||||||||||
Jeffrey M. Ettinger | ||||||||||||||
/s/ Katherine J. Harless | Director | December 18, 2020 | ||||||||||||
Katherine J. Harless | ||||||||||||||
/s/ Jeffrey L. Harmening | Director | December 18, 2020 | ||||||||||||
Jeffrey L. Harmening | ||||||||||||||
/s/ D. Christian Koch | Director | December 18, 2020 | ||||||||||||
D. Christian Koch | ||||||||||||||
/s/ Joyce A. Mullen | Director | December 18, 2020 | ||||||||||||
Joyce A. Mullen | ||||||||||||||
/s/ James C. O'Rourke | Director | December 18, 2020 | ||||||||||||
James C. O'Rourke | ||||||||||||||
/s/ Gregg W. Steinhafel | Director | December 18, 2020 | ||||||||||||
Gregg W. Steinhafel | ||||||||||||||
/s/ Michael G. Vale | Director | December 18, 2020 | ||||||||||||
Michael G. Vale |
This ‘10-K’ Filing | Date | Other Filings | ||
---|---|---|---|---|
5/1/37 | ||||
6/15/31 | ||||
6/15/29 | ||||
6/15/27 | ||||
10/31/26 | ||||
10/31/24 | ||||
4/1/24 | ||||
6/19/23 | ||||
12/31/22 | ||||
4/1/22 | 4 | |||
3/16/21 | 8-K, DEF 14A | |||
12/31/20 | 11-K, SD | |||
Filed on: | 12/18/20 | 4 | ||
12/16/20 | 4, 8-K | |||
12/11/20 | ||||
12/1/20 | 8-K | |||
11/20/20 | ||||
11/19/20 | ||||
11/1/20 | ||||
For Period end: | 10/31/20 | 5 | ||
10/3/20 | ||||
10/2/20 | ||||
9/5/20 | ||||
9/4/20 | ||||
8/1/20 | ||||
7/20/20 | ||||
5/1/20 | 10-Q | |||
3/30/20 | 8-K | |||
3/27/20 | ||||
3/2/20 | ||||
1/20/20 | ||||
1/1/20 | ||||
12/31/19 | 11-K, SD | |||
12/20/19 | 10-K, 4 | |||
11/1/19 | 4 | |||
10/31/19 | 10-K, DEF 14A | |||
8/2/19 | 10-Q | |||
8/1/19 | 8-K | |||
7/31/19 | ||||
6/27/19 | 11-K, 8-K | |||
5/3/19 | 10-Q | |||
4/30/19 | 8-K | |||
4/1/19 | 4, 8-K, 8-K/A | |||
2/14/19 | 8-K, SC 13G/A | |||
1/1/19 | ||||
12/4/18 | 3, 4 | |||
11/30/18 | ||||
10/31/18 | 10-K | |||
3/19/18 | ||||
1/1/18 | 3 | |||
12/22/17 | 10-K | |||
11/1/17 | 4 | |||
10/31/17 | 10-K | |||
12/3/15 | 4, 8-K | |||
10/31/15 | 10-K | |||
4/26/07 | 8-K | |||
6/24/97 | 8-K | |||
1/31/97 | 10-Q, S-3 | |||
List all Filings |
As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 12/20/23 Toro Co. 10-K 10/31/23 133:14M 12/22/22 Toro Co. 10-K 10/31/22 119:14M 12/17/21 Toro Co. 10-K 10/31/21 120:14M |