0000737758-19-000012 | 10-Q | XBRL Viewer

Warranty Guarantees (Tables)

6 Months Ended

May 03, 2019

Product Warranties Disclosures [Abstract]

Schedule of Warranty Provisions, Claims, and Changes in Estimates

The changes in accrued warranties were as follows:



	Three Months Ended						Six Months Ended
(Dollars in thousands)	May 3, 2019			May 4, 2018			May 3, 2019			May 4, 2018
Beginning balance	$	76,745		$	74,885		$	76,214		$	74,155
Provisions	17,946			17,219			28,502			27,789
Acquisitions	14,272			—			14,272			—
Claims	(11,356		)	(8,876		)	(22,171		)	(18,716		)
Changes in estimates	(1,855		)	1,040			(1,065		)	1,040
Ending balance	$	95,752		$	84,268		$	95,752		$	84,268

Condensed Consolidated Statements of Earnings (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	May 03, 2019	May 04, 2018	May 03, 2019	May 04, 2018
Income Statement [Abstract]
Net sales	$ 962,036	$ 875,280	$ 1,564,992	$ 1,423,526
Cost of sales	640,738	551,224	1,028,077	895,231
Gross profit	321,298	324,056	536,915	528,295
Selling, general and administrative expense	183,573	153,783	329,136	291,100
Operating earnings	137,725	170,273	207,779	237,195
Interest expense	(6,694)	(4,720)	(11,436)	(9,538)
Other income, net	6,149	3,613	10,857	7,894
Earnings before income taxes	137,180	169,166	207,200	235,551
Provision for income taxes	21,610	37,877	32,090	81,658
Net earnings	$ 115,570	$ 131,289	$ 175,110	$ 153,893
Basic net earnings per share of common stock (usd per share)	$ 1.08	$ 1.23	$ 1.64	$ 1.44
Diluted net earnings per share of common stock (usd per share)	$ 1.07	$ 1.21	$ 1.62	$ 1.41
Weighted-average number of shares of common stock outstanding — Basic (in shares)	106,679	106,423	106,466	106,830
Weighted-average number of shares of common stock outstanding — Diluted (in shares)	108,007	108,835	107,909	109,353

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	May 03, 2019	Oct. 31, 2018	May 04, 2018
ASSETS
Cash and cash equivalents	$ 180,078	$ 289,124	$ 206,100
Receivables, net	428,567	193,178	329,570
Inventories, net	611,331	358,259	394,801
Prepaid expenses and other current assets	50,298	54,076	47,758
Total current assets	1,270,274	894,637	978,229
Property, plant and equipment, gross	1,108,978	928,981	901,768
Less accumulated depreciation	683,597	657,522	656,420
Property, plant and equipment, net	425,381	271,459	245,348
Deferred income taxes	4,484	38,252	42,994
Goodwill	372,343	225,290	225,736
Other intangible assets, net	333,177	105,649	109,710
Other assets	60,341	35,697	33,730
Total assets	2,466,000	1,570,984	1,635,747
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of long-term debt	90,000	0	13,000
Accounts payable	391,692	256,575	303,911
Accrued liabilities	360,082	276,060	335,496
Total current liabilities	841,774	532,635	652,407
Long-term debt, less current portion	721,079	312,549	299,302
Deferred income taxes	50,665	1,397	1,770
Other long-term liabilities	47,205	55,487	58,941
Stockholders’ equity:
Preferred stock, par value $1.00 per share, authorized 1,000,000 voting and 850,000 non-voting shares, none issued and outstanding	0	0	0
Common stock, par value $1.00 per share, authorized 175,000,000 shares; issued and outstanding 106,433,714 shares as of May 3, 2019, 105,456,188 shares as of May 4, 2018, and 105,600,652 shares as of October 31, 2018	106,434	105,601	105,456
Retained earnings	723,959	587,252	538,470
Accumulated other comprehensive loss	(25,116)	(23,937)	(20,599)
Total stockholders’ equity	805,277	668,916	623,327
Total liabilities and stockholders’ equity	$ 2,466,000	$ 1,570,984	$ 1,635,747

Revenue - Performance Obligation (Details) $ in Millions	May 03, 2019 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-05-04
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 2.6
Revenue, remaining performance obligation, expected timing of satisfaction, period	6 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-11-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 4.3
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-11-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 3.9
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
The Charles Machine Works, Inc. \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-05-04
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 2.7
The Charles Machine Works, Inc. \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-11-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	2.2
The Charles Machine Works, Inc. \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-11-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 1.4

Derivative Instruments and Hedging Activities - Impact and Location of Amounts Reclassified from AOCL and Impacts and Location on OCI (Details) - Cash flow hedging - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	May 03, 2019	May 04, 2018	May 03, 2019	May 04, 2018
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Reclassified from AOCL into Earnings	$ 1,354	$ (1,731)	$ 2,835	$ (2,564)
Gain (Loss) Recognized in OCI on Derivatives	3,166	4,035	(843)	1,256
Forward currency contracts \| Net Sales
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Reclassified from AOCL into Earnings	1,240	(2,026)	2,478	(3,037)
Gain (Loss) Recognized in OCI on Derivatives	2,766	4,143	(715)	1,465
Forward currency contracts \| Cost of Sales
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Reclassified from AOCL into Earnings	114	295	357	473
Gain (Loss) Recognized in OCI on Derivatives	$ 400	$ (108)	$ (128)	$ (209)

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Retained Earnings	Accumulated Other Comprehensive Loss
Balance at beginning of period at Oct. 31, 2017	$ 617,092	$ 106,883	$ 534,329	$ (24,120)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cash dividends paid on common stock	(42,679)		(42,679)
Issuance of shares for stock options exercised and restricted stock units vested	4,341	609	3,732
Stock-based compensation expense	5,565		5,565
Contribution of stock to a deferred compensation trust	1,437		1,437
Purchase of common stock	(119,702)	(2,036)	(117,666)
Other comprehensive (loss)/Income	3,380			3,380
Net earnings	153,893		153,893
Balance at end of period at May. 04, 2018	623,327	105,456	538,470	(20,599)
Balance at beginning of period at Feb. 02, 2018	580,781	106,435	490,373	(16,027)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cash dividends paid on common stock	(21,254)		(21,254)
Issuance of shares for stock options exercised and restricted stock units vested	1,342	102	1,240
Stock-based compensation expense	2,441		2,441
Purchase of common stock	(66,559)	(1,081)	(65,478)
Other comprehensive (loss)/Income	(4,713)			(4,713)
Net earnings	131,289		131,289
Balance at end of period at May. 04, 2018	623,327	105,456	538,470	(20,599)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative translation and reclassification adjustment				141
Balance at beginning of period at Oct. 31, 2018	668,916	105,601	587,252	(23,937)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cash dividends paid on common stock	(47,930)		(47,930)
Issuance of shares for stock options exercised and restricted stock units vested	23,004	1,225	21,779
Stock-based compensation expense	7,025		7,025
Contribution of stock to a deferred compensation trust	1,404		1,404
Purchase of common stock	(21,937)	(392)	(21,545)
Other comprehensive (loss)/Income	(1,179)			(1,179)
Net earnings	175,110		175,110
Balance at end of period at May. 03, 2019	805,277	106,434	723,959	(25,116)
Balance at beginning of period at Feb. 01, 2019	694,397	105,747	613,165	(24,515)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cash dividends paid on common stock	(24,007)		(24,007)
Issuance of shares for stock options exercised and restricted stock units vested	16,839	687	16,152
Stock-based compensation expense	3,101		3,101
Purchase of common stock	(22)	0	(22)
Other comprehensive (loss)/Income	(601)			(601)
Net earnings	115,570		115,570
Balance at end of period at May. 03, 2019	$ 805,277	$ 106,434	$ 723,959	$ (25,116)

Stockholders' Equity - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	May 03, 2019	Oct. 31, 2018	May 04, 2018
Accumulated other comprehensive loss (AOCL)
Foreign currency translation adjustments	$ 30,047	$ 29,711	$ 19,094
Pension and post-retirement benefits	561	561	1,681
Cash flow derivative instruments	(5,492)	(6,335)	(176)
Total accumulated other comprehensive loss	$ 25,116	$ 23,937	$ 20,599

Revenue - Disaggregation by Major Product Type and Geographic Market (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	May 03, 2019	May 04, 2018	May 03, 2019	May 04, 2018
Disaggregation of Revenue [Line Items]
Revenues	$ 962,036	$ 875,280	$ 1,564,992	$ 1,423,526
United States
Disaggregation of Revenue [Line Items]
Revenues	742,959	668,201	1,204,370	1,069,657
Foreign Countries
Disaggregation of Revenue [Line Items]
Revenues	219,077	207,079	360,622	353,869
Equipment
Disaggregation of Revenue [Line Items]
Revenues	846,216	759,488	1,369,245	1,218,705
Irrigation
Disaggregation of Revenue [Line Items]
Revenues	115,820	115,792	195,747	204,821
Operating Segments \| Professional
Disaggregation of Revenue [Line Items]
Revenues	723,506	660,373	1,178,512	1,064,042
Operating Segments \| Professional \| United States
Disaggregation of Revenue [Line Items]
Revenues	546,413	495,017	894,517	790,707
Operating Segments \| Professional \| Foreign Countries
Disaggregation of Revenue [Line Items]
Revenues	177,093	165,356	283,995	273,335
Operating Segments \| Professional \| Equipment
Disaggregation of Revenue [Line Items]
Revenues	618,099	554,068	1,005,649	882,710
Operating Segments \| Professional \| Irrigation
Disaggregation of Revenue [Line Items]
Revenues	105,407	106,305	172,863	181,332
Operating Segments \| Residential
Disaggregation of Revenue [Line Items]
Revenues	232,147	212,169	377,305	354,676
Operating Segments \| Residential \| United States
Disaggregation of Revenue [Line Items]
Revenues	190,163	170,446	300,678	274,142
Operating Segments \| Residential \| Foreign Countries
Disaggregation of Revenue [Line Items]
Revenues	41,984	41,723	76,627	80,534
Operating Segments \| Residential \| Equipment
Disaggregation of Revenue [Line Items]
Revenues	225,456	203,932	358,966	333,239
Operating Segments \| Residential \| Irrigation
Disaggregation of Revenue [Line Items]
Revenues	6,691	8,237	18,339	21,437
Other
Disaggregation of Revenue [Line Items]
Revenues	6,383	2,738	9,175	4,808
Other \| United States
Disaggregation of Revenue [Line Items]
Revenues	6,383	2,738	9,175	4,808
Other \| Foreign Countries
Disaggregation of Revenue [Line Items]
Revenues	0	0	0	0
Other \| Equipment
Disaggregation of Revenue [Line Items]
Revenues	2,661	1,488	4,630	2,756
Other \| Irrigation
Disaggregation of Revenue [Line Items]
Revenues	$ 3,722	$ 1,250	$ 4,545	$ 2,052

Indebtedness

6 Months Ended

May 03, 2019

Debt Disclosure [Abstract]

Indebtedness

The following is a summary of the company's indebtedness:



(Dollars in thousands)	May 3, 2019			May 4, 2018			October 31, 2018
Revolving credit facility	$	90,000		$	—		$	91,000
$200 million term loan	200,000			—			—
$300 million term loan	300,000			—			—
7.800% debentures	100,000			100,000			100,000
6.625% senior notes	123,885			123,823			123,854
$130 million term loan	—			91,000			—
Less: unamortized discounts, debt issuance costs and deferred charges	(2,806		)	(2,521		)	(2,305		)
Total indebtedness, net	811,079			312,302			312,549
Less: current portion of long-term debt	(90,000		)	(13,000		)	—
Long-term debt, less current portion	$	721,079		$	299,302		$	312,549

Principal payments required on the company's outstanding indebtedness, based on the maturity dates defined within the company's debt arrangements, for the remainder of fiscal 2019 and succeeding five fiscal years are as follows: fiscal 2019 (remainder), $0.0 million; fiscal 2020, $0.0 million; fiscal 2021, $0.0 million; fiscal 2022, $215.0 million; fiscal 2023, $120.0 million; fiscal 2024, $255.0 million; and after fiscal 2024, $225.0 million.

Revolving Credit Facility

In June 2018, the company replaced its prior revolving credit facility and term loan, which were scheduled to mature in October 2019, with an unsecured senior five-year revolving credit facility that, among other things, increased the company's borrowing capacity to $600 million, from $150 million, and expires in June 2023. Included in the company's $600 million revolving credit facility is a $10 million sublimit for standby letters of credit and a $30 million sublimit for swingline loans. At the company's election, and with the approval of the named borrowers on the revolving credit facility and the election of the lenders to fund such increase, the aggregate maximum principal amount available under the facility may be increased by an amount up to $300 million. Funds are available under the revolving credit facility for working capital, capital expenditures, and other lawful corporate purposes, including, but not limited to, acquisitions and common stock repurchases, subject in each case to compliance with certain financial covenants described below. In connection with the entry into the new revolving credit facility during June 2018, the company incurred approximately $1.9 million of debt issuance costs, which are being amortized over the life of the revolving credit facility under the straight-line method as the results obtained are not materially different from those that would result from the use of the effective interest method. The company classifies the debt issuance costs related to its revolving credit facility within other assets on the Condensed Consolidated Balance Sheets, regardless of whether the company has any outstanding borrowings on the revolving credit facility.

As of May 3, 2019, the company had $90.0 million outstanding under the revolving credit facility resulting from amounts drawn to fund the portion of the purchase price of the company's acquisition of CMW not financed under the company's term loan credit agreement, $1.9 million outstanding under the sublimit for standby letters of credit, and $508.1 million of unutilized availability under the revolving credit facility. As of October 31, 2018, the company had $91.0 million outstanding under the revolving credit facility, $1.5 million outstanding under the sublimit for standby letters of credit, and $507.5 million of unutilized availability under the revolving credit facility. As of May 4, 2018, the company had no borrowings under the revolving credit facility that was in place at that time. Typically, the company's revolving credit facility is classified as long-term debt within the company's Condensed Consolidated Balance Sheets as the company has the ability to extend the outstanding borrowings under the revolving credit facility for the full-term of the facility. However, if the company intends to repay a portion of the outstanding balance under the revolving credit facility within the next twelve months, the company reclassifies the portion of outstanding borrowings under the revolving credit facility that the company intends to repay within the next twelve months to current portion of long-term debt within the Condensed Consolidated Balance Sheets. As of May 3, 2019, the company reclassified $90.0 million of outstanding borrowings under the revolving credit facility to current portion of long-term debt within the company's Condensed Consolidated Balance Sheets. As of October 31, 2018, the $91.0 million of outstanding borrowings under the company's revolving credit facility were classified as long-term debt within the company's Condensed Consolidated Balance Sheets.

The company's revolving credit facility contains customary covenants, including, without limitation, financial covenants, such as the maintenance of minimum interest coverage and maximum leverage ratios; and negative covenants, which among other things, limit disposition of assets, consolidations and mergers, restricted payments, liens, and other matters customarily restricted in such agreements. Most of these restrictions are subject to certain minimum thresholds and exceptions. The company was in compliance with all covenants related to the credit agreement for the company's revolving credit facility as of May 3, 2019 and October 31, 2018. As of May 4, 2018, the company was in compliance with all covenants related to the credit agreement for the revolving credit facility that was in place at that time.

Outstanding loans under the revolving credit facility, if applicable, other than swingline loans, bear interest at a variable rate generally based on LIBOR or an alternative variable rate based on the highest of the Bank of America prime rate, the federal funds rate or a rate generally based on LIBOR, in each case subject to an additional basis point spread as defined in the credit agreement. Swingline loans under the revolving credit facility bear interest at a rate determined by the swingline lender or an alternative variable rate based on the highest of the Bank of America prime rate, the federal funds rate or a rate generally based on LIBOR, in each case subject to an additional basis point spread as defined in the credit agreement. Interest is payable quarterly in arrears. For the three and six month periods ended May 3, 2019, the company made interest payments of approximately $1.8 million and $1.0 million on the outstanding borrowings of the revolving credit facility. The company did not incur interest expense on the revolving credit facility that was in place during the three and six months ended May 4, 2018, as the company had no borrowings under the facility that was in place at that time.

Term Loan Credit Agreement

In March 2019, the company entered into a term loan credit agreement with a syndicate of financial institutions for the purpose of partially funding the purchase price of the company's acquisition of CMW and the related fees and expenses incurred in connection with such acquisition. The term loan credit agreement provided for a $200 million three year unsecured senior term loan facility maturing on April 1, 2022 and a $300 million five year unsecured senior term loan facility maturing on April 1, 2024. The funds under both term loan facilities were received on April 1, 2019 in connection with the closing of the company's acquisition of CMW. There are no scheduled principal amortization payments prior to maturity on the $200 million three year unsecured senior term loan facility. For the $300 million five year unsecured senior term loan facility, the company is required to make quarterly amortization payments of 2.5 percent of the aggregate principal balance beginning with the last business day of the thirteenth calendar quarter ending after April 1, 2019, with the remainder of the unpaid principal balance due at maturity. No payments are required during the first three years of the $300 million five year unsecured senior term loan facility. The term loan facilities may be prepaid and terminated at the company's election at any time without penalty or premium.

In connection with the company's entry into the term loan credit agreement in March 2019, the company incurred approximately $0.6 million of debt issuance costs, which are being amortized over the life of the respective term loans under the straight-line method as the results obtained are not materially different from those that would result from the use of the effective interest method. Unamortized deferred debt issuance costs are netted against the outstanding borrowings under the term loan credit agreement on the company's Condensed Consolidated Balance Sheets. As of May 3, 2019, there were $200 million and $300 million of outstanding borrowings under the term loan credit agreement for the $200 million three year unsecured senior term loan facility and the $300 million five year unsecured senior term loan facility, respectively, which are classified as long-term debt within the company's Condensed Consolidated Balance Sheets.

The term loan credit agreement contains customary covenants, including, without limitation, financial covenants, such as the maintenance of minimum interest coverage and maximum leverage ratios; and negative covenants, which among other things, limit disposition of assets, consolidations and mergers, restricted payments, liens, and other matters customarily restricted in such agreements. Most of these restrictions are subject to certain minimum thresholds and exceptions. The company was in compliance with all covenants related to the company's term loan credit agreement as of May 3, 2019.

Outstanding borrowings under the term loan credit agreement bear interest at a variable rate generally based on LIBOR or an alternative variable rate, based on the highest of the Bank of America prime rate, the federal funds rate, or a rate generally based on LIBOR, in each case subject to an additional basis point spread as defined in the term credit loan agreement. Interest is payable quarterly in arrears. For the three and six month periods ended May 3, 2019, the company made interest payments of approximately $1.6 million on the outstanding borrowings under the term loan credit agreement.

7.8% Debentures

In June 1997, the company issued $175 million of debt securities consisting of $75 million of 7.125 percent coupon 10-year notes and $100 million of 7.8 percent coupon 30-year debentures. The $75 million of 7.125 percent coupon 10-year notes were repaid at maturity during fiscal 2007. In connection with the issuance of $175 million in long-term debt securities, the company paid

$23.7 million to terminate three forward-starting interest rate swap agreements with notional amounts totaling $125 million. These swap agreements had been entered into to reduce exposure to interest rate risk prior to the issuance of the new long-term debt securities. As of the inception of one of the swap agreements, the company had received payments that were recorded as deferred income to be recognized as an adjustment to interest expense over the term of the new debt securities. As of the date the swaps were terminated, this deferred income totaled $18.7 million. The excess termination fees over the deferred income recorded was deferred and is being recognized as an adjustment to interest expense over the term of the debt securities issued.

6.625% Senior Notes

On April 26, 2007, the company issued $125 million in aggregate principal amount of 6.625 percent senior notes due May 1, 2037 and priced at 98.513 percent of par value. The resulting discount of $1.9 million and the underwriting fee and direct debt issuance costs of $1.5 million associated with the issuance of these senior notes are being amortized over the term of the notes using the straight-line method as the results obtained are not materially different from those that would result from the use of the effective interest method. Although the coupon rate of the senior notes is 6.625 percent, the effective interest rate is 6.741 percent after taking into account the issuance discount. Interest on the senior notes is payable semi-annually on May 1 and November 1 of each year. The senior notes are unsecured senior obligations of the company and rank equally with the company's other unsecured and unsubordinated indebtedness. The indentures under which the senior notes were issued contain customary covenants and event of default provisions. The company may redeem some or all of the senior notes at any time at the greater of the full principal amount of the senior notes being redeemed or the present value of the remaining scheduled payments of principal and interest discounted to the redemption date on a semi-annual basis at the treasury rate plus 30 basis points, plus, in both cases, accrued and unpaid interest. In the event of the occurrence of both (i) a change of control of the company, and (ii) a downgrade of the notes below an investment grade rating by both Moody's Investors Service, Inc. and Standard & Poor's Ratings Services within a specified period, the company would be required to make an offer to purchase the senior notes at a price equal to 101 percent of the principal amount of the senior notes plus accrued and unpaid interest to the date of repurchase.

$130 Million Term Loan

In October 2014, the company obtained a $130 million term loan with various banks, which, at that time, was a part of a new credit agreement that included a new revolving credit facility. Under the credit agreement, interest on outstanding term loan borrowings was based on a LIBOR rate (or other rates quoted by the Administrative Agent, Bank of America, N.A.) plus a basis point spread defined in the credit agreement. As described in further detail in the section titled "Revolving Credit Facility" within this Note, in June 2018, the company replaced its term loan and prior revolving credit facility, which were scheduled to mature in October 2019, with an unsecured senior five-year revolving credit facility that expires in June 2023.

Stock-Based Compensation - Stock Option Awards (Details) - Stock option awards - $ / shares	6 Months Ended
	May 03, 2019	May 04, 2018
Assumptions for options granted
Expected life of option in years	6 years 3 months 21 days	6 years 14 days
Expected stock price volatility (as a percent)	19.84%	20.58%
Risk-free interest rate (as a percent)	2.77%	2.21%
Expected dividend yield (as a percent)	1.18%	0.97%
Weighted-average fair value at date of grant (in dollars per share)	$ 12.82	$ 14.25
Board of Directors
Stock-Based Compensation
Vesting period	3 years
Term of options	10 years
Vesting (as a percent)	33.33%
Certain employees
Stock-Based Compensation
Vesting period	3 years
Term of options	10 years
Non-employee members of Board of Directors
Stock-Based Compensation
Requisite service period for non-employee director after which fair value of options granted is fully expensed on the date of grant	10 years

Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Thousands	May 03, 2019	Apr. 01, 2019	Oct. 31, 2018	May 04, 2018
Business Acquisition [Line Items]
Goodwill	$ 372,343		$ 225,290	$ 225,736
The Charles Machine Works, Inc.
Business Acquisition [Line Items]
Goodwill		$ 145,538
Other intangible assets		$ 232,980

Per Share Data - Reconciliations of Basic and Diluted Weighted-Average Share (Details) - shares	3 Months Ended		6 Months Ended
	May 03, 2019	May 04, 2018	May 03, 2019	May 04, 2018
Basic
Weighted-average number of shares of common stock (in shares)	106,679,000	106,423,000	106,445,000	106,804,000
Assumed issuance of contingent shares (in shares)	0	0	21,000	26,000
Weighted-average number of shares of common stock and assumed issuance of contingent shares (in shares)	106,679,000	106,423,000	106,466,000	106,830,000
Diluted
Weighted-average number of shares of common stock and assumed issuance of contingent shares (in shares)	106,679,000	106,423,000	106,466,000	106,830,000
Effect of dilutive securities (in shares)	1,328,000	2,412,000	1,443,000	2,523,000
Weighted-average number of shares of common stock, assumed issuance of contingent shares, and effect of dilutive securities (in shares)	108,007,000	108,835,000	107,909,000	109,353,000
Options, restricted stock, and restricted stock units, excluded from the diluted earnings per share (in shares)	757,083	464,557	837,936	385,434

Derivative Instruments and Hedging Activities

6 Months Ended

May 03, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

Risk Management Objective of Using Derivatives

The company is exposed to foreign currency exchange rate risk arising from transactions in the normal course of business, such as sales to third-party customers, sales and loans to wholly-owned foreign subsidiaries, foreign plant operations, and purchases from suppliers. The company’s primary currency exchange rate exposures are with the Euro, the Australian dollar, the Canadian dollar, the British pound, the Mexican peso, the Japanese yen, the Chinese Renminbi, and the Romanian New Leu against the U.S. dollar, as well as the Romanian New Leu against the Euro.

To reduce its exposure to foreign currency exchange rate risk, the company actively manages the exposure of its foreign currency exchange rate risk by entering into various derivative instruments to hedge against such risk, authorized under company policies that place controls on these hedging activities, with counterparties that are highly rated financial institutions. The company’s policy does not allow the use of derivative instruments for trading or speculative purposes. The company has also made an accounting policy election to use the portfolio exception with respect to measuring counterparty credit risk for derivative instruments, and to measure the fair value of a portfolio of financial assets and financial liabilities on the basis of the net open risk position with each counterparty.

The company’s hedging activities primarily involve the use of forward currency contracts to hedge most foreign currency transactions, including forecasted sales and purchases denominated in foreign currencies. The company uses derivative instruments only in an attempt to limit underlying exposure from foreign currency exchange rate fluctuations and to minimize earnings and cash flow volatility associated with foreign currency exchange rate fluctuations. Decisions on whether to use such derivative instruments are primarily based on the amount of exposure to the currency involved and an assessment of the near-term market value for each currency.

The company recognizes all derivative instruments at fair value on the Condensed Consolidated Balance Sheets as either assets or liabilities. The accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as a cash flow hedging instrument.

Cash Flow Hedging Instruments

The company formally documents relationships between cash flow hedging instruments and the related hedged transactions, as well as its risk-management objective and strategy for undertaking cash flow hedging instruments. This process includes linking all cash flow hedging instruments to the forecasted transactions, such as sales to third parties, foreign plant operations, and purchases from suppliers. At the cash flow hedge’s inception and on an ongoing basis, the company formally assesses whether the cash flow hedging instruments have been highly effective in offsetting changes in the cash flows of the hedged transactions and whether those cash flow hedging instruments may be expected to remain highly effective in future periods.

Changes in the fair values of the spot rate component of outstanding, highly effective cash flow hedging instruments included in the assessment of hedge effectiveness are recorded in other comprehensive income within AOCL on the Condensed Consolidated Balance Sheets and are subsequently reclassified to net earnings within the Condensed Consolidated Statements of Earnings during the same period in which the cash flows of the underlying hedged transaction affect net earnings. Changes in the fair values of hedge components excluded from the assessment of effectiveness are recognized immediately in net earnings under the mark-to-market approach. The classification of gains or losses recognized on cash flow hedging instruments and excluded components within the Condensed Consolidated Statements of Earnings is the same as that of the underlying exposure. Results of cash flow hedging instruments, and the related excluded components, of sales and foreign plant operations are recorded in net sales and cost

of sales, respectively. The maximum amount of time the company hedges its exposure to the variability in future cash flows for forecasted trade sales and purchases is two years. Results of cash flow hedges of intercompany loans are recorded in other income, net as an offset to the remeasurement of the foreign loan balance.

When it is determined that a derivative instrument is not, or has ceased to be, highly effective as a cash flow hedge, the company discontinues cash flow hedge accounting prospectively. The gain or loss on the dedesignated derivative instrument remains in AOCL and is reclassified to net earnings within the same Condensed Consolidated Statements of Earnings line item as the underlying exposure when the forecasted transaction affects net earnings. When the company discontinues cash flow hedge accounting because it is no longer probable, but it is still reasonably possible that the forecasted transaction will occur by the end of the originally expected period or within an additional two-month period of time thereafter, the gain or loss on the derivative instrument remains in AOCL and is reclassified to net earnings within the same Condensed Consolidated Statements of Earnings line item as the underlying exposure when the forecasted transaction affects net earnings. However, if it is probable that a forecasted transaction will not occur by the end of the originally specified time period or within an additional two-month period of time thereafter, the gains and losses that were in AOCL are immediately recognized in net earnings within other income, net in the Condensed Consolidated Statements of Earnings. In all situations in which cash flow hedge accounting is discontinued and the derivative instrument remains outstanding, the company carries the derivative instrument at its fair value on the Condensed Consolidated Balance Sheets, recognizing future changes in the fair value within other income, net in the Condensed Consolidated Statements of Earnings.

As of May 3, 2019, the notional amount outstanding of forward contracts designated as cash flow hedging instruments was $255.2 million.

Derivatives Not Designated as Cash Flow Hedging Instruments

The company also enters into foreign currency contracts that include forward currency contracts to mitigate the remeasurement of specific assets and liabilities on the Condensed Consolidated Balance Sheets. These contracts are not designated as cash flow hedging instruments. Accordingly, changes in the fair value of hedges of recorded balance sheet positions, such as cash, receivables, payables, intercompany notes, and other various contractual claims to pay or receive foreign currencies other than the functional currency, are recognized immediately in other income, net, on the Condensed Consolidated Statements of Earnings together with the transaction gain or loss from the hedged balance sheet position.

The following table presents the fair value and location of the company’s derivative instruments on the Condensed Consolidated Balance Sheets:



(Dollars in thousands)	May 3, 2019		May 4, 2018		October 31, 2018
Derivative assets:
Derivatives designated as cash flow hedging instruments:
Prepaid expenses and other current assets
Forward currency contracts	$	8,980	$	1,168	$	8,596
Derivatives not designated as cash flow hedging instruments:
Prepaid expenses and other current assets
Forward currency contracts	3,881		45		2,305
Total assets	$	12,861	$	1,213	$	10,901

Derivative liabilities:
Derivatives designated as cash flow hedging instruments:
Accrued liabilities
Forward currency contracts	$	—	$	179	$	—
Derivatives not designated as cash flow hedging instruments:
Accrued liabilities
Forward currency contracts	3		1,326		13
Total liabilities	$	3	$	1,505	$	13

The company entered into an International Swap Dealers Association ("ISDA") Master Agreement with each counterparty that permits the net settlement of amounts owed under their respective contracts. The ISDA Master Agreement is an industry standardized contract that governs all derivative contracts entered into between the company and the respective counterparty. Under these master netting agreements, net settlement generally permits the company or the counterparty to determine the net amount payable or receivable for contracts due on the same date or in the same currency for similar types of derivative transactions. The company records the fair value of its derivative instruments at the net amount in its Condensed Consolidated Balance Sheets.

The following table shows the effects of the master netting arrangements on the fair value of the company’s derivative instruments that are recorded in the Condensed Consolidated Balance Sheets:



(Dollars in thousands)	May 3, 2019			May 4, 2018			October 31, 2018
Derivative assets:
Forward currency contracts:
Gross amounts of recognized assets	$	12,861		$	1,343		$	10,901
Gross liabilities offset in the Condensed Consolidated Balance Sheets	—			(130		)	—
Net amounts of assets presented in the Condensed Consolidated Balance Sheets	$	12,861		$	1,213		$	10,901

Derivative liabilities:
Forward currency contracts:
Gross amounts of recognized liabilities	$	(3	)	$	(1,726	)	$	(13	)
Gross assets offset in the Condensed Consolidated Balance Sheets	—			221			—
Net amounts of liabilities presented in the Condensed Consolidated Balance Sheets	$	(3	)	$	(1,505	)	$	(13	)

The following table presents the impact and location of the amounts reclassified from AOCL into net earnings on the Condensed Consolidated Statements of Earnings and the impact of derivative instruments on the Condensed Consolidated Statements of Comprehensive Income for the company's derivatives designated as cash flow hedging instruments for the three and six months ended May 3, 2019 and May 4, 2018:



	Three Months Ended
	Gain (Loss) Reclassified from AOCL into Earnings					Gain (Loss) Recognized in OCI on Derivatives
(Dollars in thousands)	May 3, 2019		May 4, 2018			May 3, 2019		May 4, 2018
Derivatives designated as cash flow hedging instruments:
Forward currency contracts:
Net sales	$	1,240	$	(2,026	)	$	2,766	$	4,143
Cost of sales	114		295			400		(108		)
Total derivatives designated as cash flow hedging instruments	$	1,354	$	(1,731	)	$	3,166	$	4,035



	Six Months Ended
	Gain (Loss) Reclassified from AOCL into Earnings					Gain (Loss) Recognized in OCI on Derivatives
(Dollars in thousands)	May 3, 2019		May 4, 2018			May 3, 2019			May 4, 2018
Derivatives designated as cash flow hedging instruments:
Forward currency contracts:
Net sales	$	2,478	$	(3,037	)	$	(715	)	$	1,465
Cost of sales	357		473			(128		)	(209		)
Total derivatives designated as cash flow hedging instruments	$	2,835	$	(2,564	)	$	(843	)	$	1,256

For the second quarter and first six months of fiscal 2019, the company did not discontinue cash flow hedge accounting on any forward currency contracts designated as cash flow hedging instruments. The company recognized immaterial gains within other income, net on the Condensed Consolidated Statements of Earnings during the second quarter and first six months of fiscal 2018 due to the discontinuance of cash flow hedge accounting on certain forward currency contracts designated as cash flow hedging instruments. As of May 3, 2019, the company expects to reclassify approximately $5.2 million of gains from AOCL to earnings during the next twelve months.

The following tables present the impact and location of derivative instruments on the Condensed Consolidated Statements of Earnings for the company’s derivatives designated as cash flow hedging instruments and the related components excluded from effectiveness testing:



	Gain (Loss) Recognized in Earnings on Cash Flow Hedging Instruments
(Dollars in thousands)	May 3, 2019					May 4, 2018
Three Months Ended	Net Sales		Cost of Sales			Net Sales			Cost of Sales
Condensed Consolidated Statements of Earnings income (expense) amounts in which the effects of cash flow hedging instruments are recorded	$	962,036	$	(640,738	)	$	875,280		$	(551,224	)
Gain (loss) on derivatives designated as cash flow hedging instruments:
Forward currency contracts:
Amount of gain (loss) reclassified from AOCL into earnings	1,240		114			(2,026		)	295
Gain (loss) on components excluded from effectiveness testing recognized in earnings based on changes in fair value	$	1,094	$	(46	)	$	(80	)	$	(93	)

	Gain (Loss) Recognized in Earnings on Cash Flow Hedging Instruments
(Dollars in thousands)	May 3, 2019					May 4, 2018
Six Months Ended	Net Sales		Cost of Sales			Net Sales			Cost of Sales
Condensed Consolidated Statements of Earnings income (expense) amounts in which the effects of cash flow hedging instruments are recorded	$	1,564,992	$	(1,028,077	)	$	1,423,526		$	(895,231	)
Gain (loss) on derivatives designated as cash flow hedging instruments:
Forward currency contracts:
Amount of gain (loss) reclassified from AOCL into earnings	2,478		357			(3,037		)	473
Gain (loss) on components excluded from effectiveness testing recognized in earnings based on changes in fair value	$	2,317	$	16		$	(101	)	$	(118	)

The following table presents the impact and location of derivative instruments on the Condensed Consolidated Statements of Earnings for the company’s derivatives not designated as cash flow hedging instruments:



	Three Months Ended				Six Months Ended
(Dollars in thousands)	May 3, 2019		May 4, 2018		May 3, 2019		May 4, 2018
Gain (loss) on derivatives not designated as cash flow hedging instruments
Forward currency contracts:
Other income, net	$	1,790	$	1,200	$	727	$	(616	)
Total gain (loss) on derivatives not designated as cash flow hedging instruments	$	1,790	$	1,200	$	727	$	(616	)

Business Combination - Pro Forma (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	May 03, 2019	May 04, 2018	May 03, 2019	May 04, 2018
Business Acquisition [Line Items]
Defined benefit plan, net periodic benefit cost (credit), gain (loss) due to settlement			$ 45,800
Defined benefit plan, net periodic benefit cost (credit), gain (loss) due to settlement, per share, diluted (in usd per share)			$ 0.42
The Charles Machine Works, Inc.
Business Acquisition [Line Items]
Net sales	$ 1,086,708	$ 1,046,932	$ 1,864,243	$ 1,749,535
Net earnings	$ 176,481	$ 131,022	$ 233,404	$ 152,102
Basic net earnings per share of common stock (in usd per share)	$ 1.65	$ 1.23	$ 2.19	$ 1.42
Diluted net earnings per share of common stock (in usd per share)	$ 1.63	$ 1.20	$ 2.16	$ 1.39

Stock-Based Compensation - Performance Share Awards and Restricted Stock and Restricted Stock Unit Awards (Details) - $ / shares	3 Months Ended		6 Months Ended
	Feb. 01, 2019	Feb. 02, 2018	May 03, 2019	May 04, 2018
Performance share awards
Stock-Based Compensation
Performance goal period			3 years
Weighted-average fair value of awards granted (in dollars per share)	$ 59.58	$ 65.40
Performance share awards \| Maximum
Stock-Based Compensation
Vesting (as a percent)			200.00%
Performance share awards \| Minimum
Stock-Based Compensation
Vesting (as a percent)			0.00%
Restricted stock and restricted stock unit awards
Stock-Based Compensation
Vesting (as a percent)			33.33%
Vesting period			3 years
Weighted-average fair value of awards granted (in dollars per share)			$ 64.75	$ 65.82

Contingencies	6 Months Ended
Contingencies	May 03, 2019
Loss Contingency [Abstract]
Contingencies	Contingencies Litigation The company is party to litigation in the ordinary course of business. Such matters are generally subject to uncertainties and to outcomes that are not predictable with assurance and that may not be known for extended periods of time. Litigation occasionally involves claims for punitive, as well as compensatory, damages arising out of the use of the company’s products. Although the company is self-insured to some extent, the company maintains insurance against certain product liability losses. The company is also subject to litigation and administrative and judicial proceedings with respect to claims involving asbestos and the discharge of hazardous substances into the environment. Some of these claims assert damages and liability for personal injury, remedial investigations or clean up and other costs and damages. The company is also typically involved in commercial disputes, employment disputes, and patent litigation cases in which it is asserting or defending against patent infringement claims. To prevent possible infringement of the company’s patents by others, the company periodically reviews competitors’ products. To avoid potential liability with respect to others’ patents, the company regularly reviews certain patents issued by the U.S. Patent and Trademark Office and foreign patent offices. Management believes these activities help minimize its risk of being a defendant in patent infringement litigation. The company is currently involved in patent litigation cases, including cases by or against competitors, where it is asserting and defending against claims of patent infringement. Such cases are at varying stages in the litigation process. The company records a liability in its Condensed Consolidated Financial Statements for costs related to claims, including future legal costs, settlements and judgments, where the company has assessed that a loss is probable and an amount can be reasonably estimated. If the reasonable estimate of a probable loss is a range, the company records the most probable estimate of the loss or the minimum amount when no amount within the range is a better estimate than any other amount. The company discloses a contingent liability even if the liability is not probable or the amount is not estimable, or both, if there is a reasonable possibility that a material loss may have been incurred. In the opinion of management, the amount of liability, if any, with respect to these matters, individually or in the aggregate, will not materially affect its Consolidated Results of Operations, Financial Position, or Cash Flows.

Revenue - Product Revenue, Service Revenue and Warrant Revenue Narrative (Details)	6 Months Ended
	May 03, 2019
Minimum \| Product Revenue
Disaggregation of Revenue [Line Items]
Contract with customer, contract period	30 days
Minimum \| Service Revenue
Disaggregation of Revenue [Line Items]
Contract with customer, contract period	12 months
Minimum \| Warranty Revenue
Disaggregation of Revenue [Line Items]
Contract with customer, contract period	12 months
Maximum \| Product Revenue
Disaggregation of Revenue [Line Items]
Contract with customer, contract period	120 days
Maximum \| Service Revenue
Disaggregation of Revenue [Line Items]
Contract with customer, contract period	36 months
Maximum \| Warranty Revenue
Disaggregation of Revenue [Line Items]
Contract with customer, contract period	24 months

Goodwill and Other Intangible Assets - Components of Other Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	May 03, 2019	May 04, 2018	May 03, 2019	May 04, 2018	Oct. 31, 2018
Other Intangible Assets
Weighted-Average Useful Life			15 years 1 month 6 days	14 years 2 months 12 days	14 years 3 months 18 days
Gross Carrying Amount	$ 291,482	$ 149,410	$ 291,482	$ 149,410	$ 148,865
Accumulated Amortization	(79,336)	(70,423)	(79,336)	(70,423)	(73,797)
Net	212,146	78,987	212,146	78,987	75,068
Non-amortizable - trade names	121,031	30,723	121,031	30,723	30,581
Total other intangible assets, gross	412,513	180,133	412,513	180,133	179,446
Total other intangible assets, net	333,177	109,710	333,177	109,710	$ 105,649
Estimated amortization expense
Amortization of intangible assets	3,700	1,800	5,500	$ 3,600
Fiscal 2019 (remainder)	13,900		13,900
Fiscal 2020	16,500		16,500
Fiscal 2021	16,100		16,100
Fiscal 2022	15,400		15,400
Fiscal 2023	14,000		14,000
Fiscal 2024	13,300		13,300
After 2024	122,900		$ 122,900
Patents
Other Intangible Assets
Weighted-Average Useful Life			9 years 10 months 24 days	9 years 8 months 12 days	9 years 10 months 24 days
Gross Carrying Amount	18,254	18,287	$ 18,254	$ 18,287	$ 18,235
Accumulated Amortization	(12,728)	(11,937)	(12,728)	(11,937)	(12,297)
Net	5,526	6,350	$ 5,526	$ 6,350	$ 5,938
Non-compete agreements
Other Intangible Assets
Weighted-Average Useful Life			5 years 6 months	5 years 6 months	5 years 6 months
Gross Carrying Amount	6,889	6,918	$ 6,889	$ 6,918	$ 6,872
Accumulated Amortization	(6,797)	(6,806)	(6,797)	(6,806)	(6,771)
Net	92	112	$ 92	$ 112	$ 101
Customer-related
Other Intangible Assets
Weighted-Average Useful Life			18 years 3 months 18 days	18 years 6 months	18 years 6 months
Gross Carrying Amount	201,022	89,874	$ 201,022	$ 89,874	$ 89,622
Accumulated Amortization	(26,719)	(21,284)	(26,719)	(21,284)	(23,653)
Net	174,303	68,590	$ 174,303	$ 68,590	$ 65,969
Developed technology
Other Intangible Assets
Weighted-Average Useful Life			7 years 7 months 6 days	7 years 7 months 6 days	7 years 7 months 6 days
Gross Carrying Amount	50,338	31,180	$ 50,338	$ 31,180	$ 31,029
Accumulated Amortization	(29,292)	(27,872)	(29,292)	(27,872)	(28,471)
Net	21,046	3,308	$ 21,046	$ 3,308	$ 2,558
Trade names
Other Intangible Assets
Weighted-Average Useful Life			15 years 6 months	5 years	5 years
Gross Carrying Amount	7,599	2,351	$ 7,599	$ 2,351	$ 2,307
Accumulated Amortization	(1,903)	(1,724)	(1,903)	(1,724)	(1,805)
Net	5,696	627	$ 5,696	$ 627	$ 502
Backlog and other
Other Intangible Assets
Weighted-Average Useful Life			7 months 6 days	1 year	1 year
Gross Carrying Amount	7,380	800	$ 7,380	$ 800	$ 800
Accumulated Amortization	(1,897)	(800)	(1,897)	(800)	(800)
Net	$ 5,483	$ 0	$ 5,483	$ 0	$ 0

Indebtedness - Summary of Debt (Details) - USD ($)	May 03, 2019	Oct. 31, 2018	May 04, 2018	Jun. 30, 1997
Debt Instrument [Line Items]
Less: unamortized discounts, debt issuance costs and deferred charges	$ (2,806,000)	$ (2,305,000)	$ (2,521,000)
Total indebtedness, net	811,079,000	312,549,000	312,302,000
Less: current portion of long-term debt	(90,000,000)	0	(13,000,000)
Long-term debt, less current portion	721,079,000	312,549,000	299,302,000
Line of Credit
Debt Instrument [Line Items]
Long-term debt, gross	100,000,000	100,000,000	100,000,000
6.625% senior notes
Debt Instrument [Line Items]
Long-term debt, gross	123,885,000	123,854,000	123,823,000
Total indebtedness, net				$ 100,000,000
Senior Note
Debt Instrument [Line Items]
Long-term debt, gross	0	0	91,000,000
Line of Credit
Debt Instrument [Line Items]
Long-term debt, gross	$ 90,000,000	$ 91,000,000	$ 0

Segment Data - Summarized Financial Information of Reportable Segments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	May 03, 2019	May 04, 2018	May 03, 2019	May 04, 2018	Oct. 31, 2018
Financial information concerning reportable segments
Revenues	$ 962,036	$ 875,280	$ 1,564,992	$ 1,423,526
Earnings (loss) before income taxes	137,180	169,166	207,200	235,551
Total assets	2,466,000	1,635,747	2,466,000	1,635,747	$ 1,570,984
Operating Segments \| Professional
Financial information concerning reportable segments
Revenues	723,506	660,373	1,178,512	1,064,042
Earnings (loss) before income taxes	150,119	164,979	238,097	240,891
Total assets	1,848,351	963,564	1,848,351	963,564
Operating Segments \| Residential
Financial information concerning reportable segments
Revenues	232,147	212,169	377,305	354,676
Earnings (loss) before income taxes	22,030	26,304	35,102	42,017
Total assets	271,224	288,248	271,224	288,248
Intersegment gross sales
Financial information concerning reportable segments
Revenues	(23,796)	(10,771)	(37,504)	(17,285)
Intersegment gross sales \| Professional
Financial information concerning reportable segments
Revenues	23,716	10,664	37,325	17,122
Intersegment gross sales \| Residential
Financial information concerning reportable segments
Revenues	80	107	179	163
Other
Financial information concerning reportable segments
Revenues	6,383	2,738	9,175	4,808
Earnings (loss) before income taxes	(34,969)	(22,117)	(65,999)	(47,357)
Total assets	$ 346,425	$ 383,935	$ 346,425	$ 383,935

Warranty Guarantees - Schedule of Changes in Accrued Warranties (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	May 03, 2019	May 04, 2018	May 03, 2019	May 04, 2018
Warranty provisions, claims, and changes in estimates
Beginning balance	$ 76,745	$ 74,885	$ 76,214	$ 74,155
Provisions	17,946	17,219	28,502	27,789
Acquisitions	14,272	0	14,272	0
Claims	(11,356)	(8,876)	(22,171)	(18,716)
Changes in estimates	(1,855)	1,040	(1,065)	1,040
Ending balance	$ 95,752	$ 84,268	$ 95,752	$ 84,268

Derivative Instruments and Hedging Activities - Effects of Master Netting Arrangements (Details) - USD ($) $ in Thousands	May 03, 2019	Oct. 31, 2018	May 04, 2018
Derivative assets:
Net amounts of assets presented in the Consolidated Balance Sheets	$ 12,861	$ 10,901	$ 1,213
Derivative liabilities:
Net amounts of liabilities presented in the Consolidated Balance Sheets	(3)	(13)	(1,505)
Forward currency contracts
Derivative assets:
Gross amounts of recognized assets	12,861	10,901	1,343
Gross liabilities offset in the balance sheets	0	0	(130)
Net amounts of assets presented in the Consolidated Balance Sheets	12,861	10,901	1,213
Derivative liabilities:
Gross amounts of recognized liabilities	(3)	(13)	(1,726)
Gross assets offset in the balance sheets	0	0	221
Net amounts of liabilities presented in the Consolidated Balance Sheets	$ (3)	$ (13)	$ (1,505)

Warranty Guarantees

6 Months Ended

May 03, 2019

Product Warranties Disclosures [Abstract]

Warranty Guarantees

The company’s products are warranted to provide assurance that the product will function as expected and to ensure customer confidence in design, workmanship, and overall quality. Warranty coverage is generally provided for specified periods of time and on select products’ hours of usage, and generally covers parts, labor, and other expenses for non-maintenance repairs. Warranty coverage generally does not cover operator abuse or improper use. An authorized company distributor or dealer must perform warranty work. Distributors and dealers submit claims for warranty reimbursement and are credited for the cost of repairs, labor, and other expenses as long as the repairs meet the company's prescribed standards. Warranty expense is accrued at the time of sale based on the estimated number of products under warranty, historical average costs incurred to service warranty claims, the trend in the historical ratio of claims to sales, the historical length of time between the sale and resulting warranty claim, and other minor factors. Special warranty reserves are also accrued for major rework campaigns. Service support outside of the warranty period is provided by authorized distributors and dealers at the customer's expense. In addition to the standard warranties offered by the company on its products, the company also sells separately priced extended warranty coverage on select products for a prescribed period after the original warranty period expires. For additional information on the contract liabilities associated with the company's separately priced extended warranties, refer to Note 4, Revenue.

The changes in accrued warranties were as follows:



	Three Months Ended						Six Months Ended
(Dollars in thousands)	May 3, 2019			May 4, 2018			May 3, 2019			May 4, 2018
Beginning balance	$	76,745		$	74,885		$	76,214		$	74,155
Provisions	17,946			17,219			28,502			27,789
Acquisitions	14,272			—			14,272			—
Claims	(11,356		)	(8,876		)	(22,171		)	(18,716		)
Changes in estimates	(1,855		)	1,040			(1,065		)	1,040
Ending balance	$	95,752		$	84,268		$	95,752		$	84,268

Label	Element	Value
Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 864,000
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	(141,000)
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ (141,000)

Segment Data - Components of Loss before Income Taxes Included in Other (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	May 03, 2019	May 04, 2018	May 03, 2019	May 04, 2018
Components of the loss before income taxes included in "Other"
Interest expense	$ (6,694)	$ (4,720)	$ (11,436)	$ (9,538)
Other income	6,149	3,613	10,857	7,894
Earnings before income taxes	137,180	169,166	207,200	235,551
Other
Components of the loss before income taxes included in "Other"
Corporate expenses	(34,357)	(21,096)	(62,671)	(45,497)
Interest expense	(6,694)	(4,720)	(11,436)	(9,538)
Other income	6,082	3,699	8,108	7,678
Earnings before income taxes	$ (34,969)	$ (22,117)	$ (65,999)	$ (47,357)

Revenue

6 Months Ended

May 03, 2019

Revenue from Contract with Customer [Abstract]

Revenue

The company enters into contracts with its customers for the sale of products or rendering of services in the ordinary course of business. A contract with commercial substance exists at the time the company receives and accepts a purchase order under a sales contract with a customer. The company recognizes revenue when, or as, performance obligations under the terms of a contract with its customer are satisfied, which occurs with the transfer of control of product or services. Control is typically transferred to the customer at the time a product is shipped, or in the case of certain agreements, when a product is delivered or as services are rendered. Revenue is recognized based on the transaction price, which is measured as the amount of consideration the company expects to receive in exchange for transferring product or rendering services pursuant to the terms of the contract with a customer. The amount of consideration the company receives and the revenue the company recognizes varies with changes in sales promotions and incentives offered to customers, as well as anticipated product returns. A provision is made at the time revenue is recognized as a reduction of the transaction price for expected product returns, rebates, floor plan costs, and other sales promotion and incentive expenses. If a contract contains more than one performance obligation, the transaction price is allocated to each performance obligation based on the relative standalone selling price of the respective promised good or service. The company does not recognize revenue in situations where collectability from the customer is not probable, and defers the recognition of revenue until collection is probable or payment is received and performance obligations are satisfied.

Freight and shipping revenue billed to customers concurrent with revenue producing activities is included within revenue and the cost for freight and shipping is recognized as an expense within cost of sales when control has transferred to the customer. Shipping and handling activities that occur after control of the related products is transferred are treated as a fulfillment activity rather than a promised service, and therefore, are not considered a performance obligation. Sales, use, value-added, and other excise taxes the company collects concurrent with revenue producing activities are excluded from revenue. Incremental costs of obtaining a contract for which the performance obligations will be satisfied within the next twelve months are expensed as incurred. Incidental items, including goods or services, that are immaterial in the context of the contract are recognized as expense when incurred. Additionally, the company has elected not to disclose the balance of unfulfilled performance obligations for contracts with a contractual term of twelve months or less.

The following tables disaggregate our reportable segment net sales by major product type and geographic market (in thousands):



Three Months Ended May 3, 2019	Professional		Residential		Other		Total
Revenue by product type:
Equipment	$	618,099	$	225,456	$	2,661	$	846,216
Irrigation	105,407		6,691		3,722		115,820
Total net sales	$	723,506	$	232,147	$	6,383	$	962,036

Revenue by geographic market:
United States	$	546,413	$	190,163	$	6,383	$	742,959
Foreign Countries	177,093		41,984		—		219,077
Total net sales	$	723,506	$	232,147	$	6,383	$	962,036



Six Months Ended May 3, 2019	Professional		Residential		Other		Total
Revenue by product type:
Equipment	$	1,005,649	$	358,966	$	4,630	$	1,369,245
Irrigation	172,863		18,339		4,545		195,747
Total net sales	$	1,178,512	$	377,305	$	9,175	$	1,564,992

Revenue by geographic market:
United States	$	894,517	$	300,678	$	9,175	$	1,204,370
Foreign Countries	283,995		76,627		—		360,622
Total net sales	$	1,178,512	$	377,305	$	9,175	$	1,564,992



Three Months Ended May 4, 2018	Professional		Residential		Other		Total
Revenue by product type:
Equipment	$	554,068	$	203,932	$	1,488	$	759,488
Irrigation	106,305		8,237		1,250		115,792
Total net sales	$	660,373	$	212,169	$	2,738	$	875,280

Revenue by geographic market:
United States	$	495,017	$	170,446	$	2,738	$	668,201
Foreign Countries	165,356		41,723		—		207,079
Total net sales	$	660,373	$	212,169	$	2,738	$	875,280



Six Months Ended May 4, 2018	Professional		Residential		Other		Total
Revenue by product type:
Equipment	$	882,710	$	333,239	$	2,756	$	1,218,705
Irrigation	181,332		21,437		2,052		204,821
Total net sales	$	1,064,042	$	354,676	$	4,808	$	1,423,526

Revenue by geographic market:
United States	$	790,707	$	274,142	$	4,808	$	1,069,657
Foreign Countries	273,335		80,534		—		353,869
Total net sales	$	1,064,042	$	354,676	$	4,808	$	1,423,526

Product Revenue

The company's product revenues are generated through sales of manufactured equipment and irrigation products, including related replacement parts and accessories. For the majority of the company's products, control is transferred and revenue is recognized when the product is shipped from the company's manufacturing facilities or distribution centers to the company's customers, which primarily consist of distributors, dealers, and mass retailers. In certain situations, the company transfers control and recognizes revenue when delivery to the customer has occurred. Additionally, the company ships some of its products to a key retailer's distribution centers on a consignment basis. The company retains control of its products stored at the key retailer's distribution centers. As the company's products are removed from the distribution centers by the key retailer and shipped to the key retailer's stores, control is transferred from the company to the key retailer. At that time, the company invoices the key retailer and recognizes revenue for these consignment transactions. The company does not offer a right of return for products shipped to the key retailer's stores from the distribution centers.

The company and TCF Inventory Finance, Inc. ("TCFIF"), a subsidiary of TCF National Bank, established Red Iron Acceptance, LLC ("Red Iron"), a joint venture that primarily provides inventory financing to certain dealers and distributors of our equipment and irrigation products. The company also has floor plan financing arrangements with separate third-party financial institutions to provide floor plan financing to certain dealers not financed through Red Iron. When product sales are financed by Red Iron or other third-party financial institutions, the transactions are structured as an advance in the form of a payment to the company on behalf of a dealer or distributor with respect to invoices financed by the financial institutions. These payments extinguish the obligation of such dealer or distributor to make payment to the company under the terms of the applicable invoice. Under a separate agreement between the financial institutions and such dealer or distributor, the financial institution provides a loan to such dealer or distributor for the advances paid by the financial institutions to the company. The company's sales of product to customers that do not elect to finance purchases through Red Iron or the third-party financial institutions are generally on open account with terms that generally approximate 30 to 120 days and the resulting receivables are included within receivables, net on the Condensed Consolidated Balance Sheets.

Product revenue is recognized based on the transaction price, which is measured as the amount of consideration the company expects to receive in exchange for transferring control of a product to a customer. When determining the transaction price, the company estimates variable consideration by applying the portfolio approach practical expedient under ASC 606. The primary sources of variable consideration for the company are rebate programs, volume incentive programs, floor plan and retail financing programs, cash discounts, and product returns. These sales promotions and incentives are recorded as a reduction to revenue at the time of the initial sale. The company estimates variable consideration related to equipment and irrigation products sold under its sales promotion and incentive programs using the expected value method, which is based on sales terms with customers, historical experience, field inventory levels, volume purchases, and known changes in relevant trends. There are no material instances where variable consideration is constrained and not recorded at the initial time of sale. Additionally, the company may offer to its customers the right to return eligible equipment and irrigation products, replacement parts, and accessories. Returns are recorded as a reduction to revenue based on anticipated sales returns estimated from sales terms, historical experience, and trend analysis. The company records obligations for returns within accrued liabilities in the Condensed Consolidated Balance Sheets and the right-of-return asset in prepaid expenses and other current assets in the Condensed Consolidated Balance Sheets. The refund liability and right-of-return asset are remeasured for changes in the estimate at each reporting date with a corresponding adjustment to net sales and cost of sales within the Condensed Consolidated Statements of Earnings.

Service Revenue

In certain cases, the company renders service contracts to customers, which typically range from 12 to 36 months. The company receives payment at the inception of the service contract and recognizes revenue over the term of the agreement in proportion to the costs expected to be incurred in satisfying the performance obligations under the service contract.

Warranty Revenue

In addition to the standard warranties offered by the company on its equipment and irrigation products intended to provide assurance that the product will function as expected, the company also sells separately priced extended warranty coverage on select products for a prescribed period after the standard warranty period expires, which typically range from 12 to 24 months. The company receives payment at the inception of the separately priced extended warranty contract and recognizes revenue over the term of the agreement in proportion to the costs expected to be incurred in satisfying the performance obligations under the separately priced extended warranty contract.

Contract Liabilities

Contract liabilities relate to deferred revenue recognized for payments received at contract inception in advance of the company's performance under the contract and generally relate to the sale of separately priced extended warranty contracts, service contracts, and non-refundable customer deposits. The company recognizes revenue over the term of the agreement in proportion to the costs expected to be incurred in satisfying the performance obligations under the separately priced extended warranty and service contracts. For non-refundable customer deposits, the company recognizes revenue as of the point in time in which the performance obligation has been satisfied under the contract with the customer, which typically occurs upon change in control at the time a product is shipped, or in the case of certain agreements, when a product is delivered. As of May 3, 2019 and October 31, 2018, $14.8 million and $14.0 million, respectively, of unearned revenue associated with outstanding separately priced extended warranty contracts, service contracts, and non-refundable customer deposits was reported within accrued liabilities and other long-term liabilities in the Condensed Consolidated Balance Sheets. For the three and six months ended May 3, 2019, the company recognized $1.5 million and $3.2 million of the October 31, 2018 unearned revenue balance within net sales in the Condensed Consolidated Statements of Earnings. The company expects to recognize approximately $2.6 million of the October 31, 2018 unearned amount within net sales throughout the remainder of fiscal 2019, $4.3 million in fiscal 2020, and $3.9 million thereafter.

As a result of the company's acquisition of CMW on April 1, 2019, the company assumed $8.0 million of contract liabilities related to separately priced extended warranty contracts, service contracts, and non-refundable customer deposits. For the three and six months ended May 3, 2019, the company recognized $1.7 million of the April 1, 2019 assumed unearned revenue balance related to the CMW acquisition within net sales in the Condensed Consolidated Statements of Earnings. The company expects to recognize approximately $2.7 million of the unearned amount of the April 1, 2019 assumed unearned revenue balance related to the CMW acquisition within net sales throughout the remainder of fiscal 2019, $2.2 million in fiscal 2020, and $1.4 million thereafter. For additional information on the company's acquisition of CMW, refer to Note 2, Business Combinations.

Stockholders' Equity

6 Months Ended

May 03, 2019

Stockholders' Equity Note [Abstract]

Stockholders' Equity

Stockholders’ Equity

Accumulated Other Comprehensive Loss

Components of accumulated other comprehensive loss ("AOCL"), net of tax, were as follows:



(Dollars in thousands)	May 3, 2019			May 4, 2018			October 31, 2018
Foreign currency translation adjustments	$	30,047		$	19,094		$	29,711
Pension and post-retirement benefits	561			1,681			561
Cash flow derivative instruments	(5,492		)	(176		)	(6,335		)
Total accumulated other comprehensive loss	$	25,116		$	20,599		$	23,937

The components and activity of AOCL for the three and six month periods ended May 3, 2019 and May 4, 2018 were as follows:



(Dollars in thousands)	Foreign Currency Translation Adjustments		Pension and Post-Retirement Benefits		Cash Flow Hedging Derivative Instruments			Total
Balance as of Balance as of February 1, 2019	$	26,280	$	561	$	(2,326	)	$	24,515
Other comprehensive (income) loss before reclassifications	3,767		—		(1,812		)	1,955
Amounts reclassified from AOCL	—		—		(1,354		)	(1,354		)
Net current period other comprehensive (income) loss	3,767		—		(3,166		)	601
Balance as of May 3, 2019	$	30,047	$	561	$	(5,492	)	$	25,116



(Dollars in thousands)	Foreign Currency Translation Adjustments		Pension and Post-Retirement Benefits		Cash Flow Hedging Derivative Instruments			Total
Balance as of October 31, 2018	$	29,711	$	561	$	(6,335	)	$	23,937
Other comprehensive loss before reclassifications	336		—		3,678			4,014
Amounts reclassified from AOCL	—		—		(2,835		)	(2,835		)
Net current period other comprehensive loss	336		—		843			1,179
Balance as of May 3, 2019	$	30,047	$	561	$	(5,492	)	$	25,116



(Dollars in thousands)	Foreign Currency Translation Adjustments		Pension and Post-Retirement Benefits			Cash Flow Hedging Derivative Instruments			Total
Balance as of Balance as of February 2, 2018	$	10,162	$	2,281		$	3,584		$	16,027
Other comprehensive (income) loss before reclassifications	8,932		(184		)	(7,432		)	1,316
Amounts reclassified from AOCL	—		—			3,397			3,397
Net current period other comprehensive (income) loss	8,932		(184		)	(4,035		)	4,713
Reclassification due to the adoption of ASU 2018-02	—		(416		)	275			(141		)
Balance as of May 4, 2018	$	19,094	$	1,681		$	(176	)	$	20,599



(Dollars in thousands)	Foreign Currency Translation Adjustments			Pension and Post-Retirement Benefits			Cash Flow Hedging Derivative Instruments			Total
Balance as of October 31, 2017	$	21,303		$	2,012		$	805		$	24,120
Other comprehensive (income) loss before reclassifications	(2,209		)	85			(3,820		)	(5,944		)
Amounts reclassified from AOCL	—			—			2,564			2,564
Net current period other comprehensive (income) loss	(2,209		)	85			(1,256		)	(3,380		)
Reclassification due to the adoption of ASU 2018-02	—			(416		)	275			(141		)
Balance as of May 4, 2018	$	19,094		$	1,681		$	(176	)	$	20,599

For additional information on the components reclassified from AOCL to the respective line items within net earnings for the company's cash flow hedging derivative instruments, refer to Note 15, Derivative Instruments and Hedging Activities.

Goodwill and Other Intangible Assets

6 Months Ended

May 03, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

The company's acquisition of CMW on April 1, 2019 resulted in the recognition of $145.5 million and $233.0 million of preliminary goodwill and other intangible assets, respectively. For additional information on the company's acquisition of CMW, refer to Note 2, Business Combinations.

Goodwill

The changes in the carrying amount of goodwill by reportable segment for the first six months of fiscal 2019 were as follows:



(Dollars in thousands)	Professional			Residential		Other		Total
Balance as of October 31, 2018	$	214,827		$	10,463	$	—	$	225,290
Goodwill acquired	145,538			—		1,534		147,072
Translation adjustments	(47		)	28		—		(19		)
Balance as of May 3, 2019	$	360,318		$	10,491	$	1,534	$	372,343

Other Intangible Assets

The components of other intangible assets as of May 3, 2019 were as follows:



(Dollars in thousands)	Weighted-Average Useful Life	Gross Carrying Amount		Accumulated Amortization			Net
Patents	9.9	$	18,254	$	(12,728	)	$	5,526
Non-compete agreements	5.5	6,889		(6,797		)	92
Customer-related	18.3	201,022		(26,719		)	174,303
Developed technology	7.6	50,338		(29,292		)	21,046
Trade names	15.5	7,599		(1,903		)	5,696
Backlog and other	0.6	7,380		(1,897		)	5,483
Total amortizable	15.1	291,482		(79,336		)	212,146
Non-amortizable - trade names		121,031		—			121,031
Total other intangible assets, net		$	412,513	$	(79,336	)	$	333,177

The components of other intangible assets as of May 4, 2018 were as follows:



(Dollars in thousands)	Weighted-Average Useful Life	Gross Carrying Amount		Accumulated Amortization			Net
Patents	9.7	$	18,287	$	(11,937	)	$	6,350
Non-compete agreements	5.5	6,918		(6,806		)	112
Customer-related	18.5	89,874		(21,284		)	68,590
Developed technology	7.6	31,180		(27,872		)	3,308
Trade names	5.0	2,351		(1,724		)	627
Other	1.0	800		(800		)	—
Total amortizable	14.2	149,410		(70,423		)	78,987
Non-amortizable - trade names		30,723		—			30,723
Total other intangible assets, net		$	180,133	$	(70,423	)	$	109,710

The components of other intangible assets as of October 31, 2018 were as follows:



(Dollars in thousands)	Weighted-Average Useful Life	Gross Carrying Amount		Accumulated Amortization			Net
Patents	9.9	$	18,235	$	(12,297	)	$	5,938
Non-compete agreements	5.5	6,872		(6,771		)	101
Customer-related	18.5	89,622		(23,653		)	65,969
Developed technology	7.6	31,029		(28,471		)	2,558
Trade names	5.0	2,307		(1,805		)	502
Other	1.0	800		(800		)	—
Total amortizable	14.3	148,865		(73,797		)	75,068
Non-amortizable - trade names		30,581		—			30,581
Total other intangible assets, net		$	179,446	$	(73,797	)	$	105,649

Amortization expense for definite-lived intangible assets during the second quarter of fiscal 2019 and fiscal 2018 was $3.7 million and $1.8 million, respectively. Amortization expense for definite-lived intangible assets during the first six months of fiscal 2019 and 2018 was $5.5 million and $3.6 million, respectively. Estimated amortization expense for the remainder of fiscal 2019 and succeeding fiscal years is as follows: fiscal 2019 (remainder), $13.9 million; fiscal 2020, $16.5 million; fiscal 2021, $16.1 million; fiscal 2022, $15.4 million; fiscal 2023, $14.0 million; fiscal 2024, $13.3 million; and after fiscal 2024, $122.9 million.

Fair Value Measurements - Fair Value Hierarchy (Details) - USD ($) $ in Thousands	May 03, 2019	Oct. 31, 2018	May 04, 2018
Assets:
Forward currency contracts	$ 12,861	$ 10,901	$ 1,213
Liabilities:
Forward currency contracts	3	13	1,505
Forward currency contracts
Assets:
Forward currency contracts	12,861	10,901	1,213
Liabilities:
Forward currency contracts	3	13	1,505
Measured on a recurring basis
Assets:
Total assets	12,861	10,901	1,213
Liabilities:
Total liabilities	3	13	1,505
Measured on a recurring basis \| Forward currency contracts
Assets:
Forward currency contracts	12,861	10,901	1,213
Liabilities:
Forward currency contracts	3	13	1,505
Measured on a recurring basis \| Level 1
Assets:
Total assets	0	0	0
Liabilities:
Total liabilities	0	0	0
Measured on a recurring basis \| Level 1 \| Forward currency contracts
Assets:
Forward currency contracts	0	0	0
Liabilities:
Forward currency contracts	0	0	0
Measured on a recurring basis \| Level 2
Assets:
Total assets	12,861	10,901	1,213
Liabilities:
Total liabilities	3	13	1,505
Measured on a recurring basis \| Level 2 \| Forward currency contracts
Assets:
Forward currency contracts	12,861	10,901	1,213
Liabilities:
Forward currency contracts	3	13	1,505
Measured on a recurring basis \| Level 3
Assets:
Total assets	0	0	0
Liabilities:
Total liabilities	0	0	0
Measured on a recurring basis \| Level 3 \| Forward currency contracts
Assets:
Forward currency contracts	0	0	0
Liabilities:
Forward currency contracts	$ 0	$ 0	$ 0

Goodwill and Other Intangible Assets - Changes in Net Carrying Amount of Goodwill (Details) $ in Thousands	6 Months Ended
	May 03, 2019 USD ($)
Changes in the net carrying amount of goodwill
Goodwill, beginning balance	$ 225,290
Goodwill acquired	147,072
Translation adjustments	(19)
Goodwill, ending balance	372,343
Operating Segments \| Professional
Changes in the net carrying amount of goodwill
Goodwill, beginning balance	214,827
Goodwill acquired	145,538
Translation adjustments	(47)
Goodwill, ending balance	360,318
Operating Segments \| Residential
Changes in the net carrying amount of goodwill
Goodwill, beginning balance	10,463
Goodwill acquired	0
Translation adjustments	28
Goodwill, ending balance	10,491
Other
Changes in the net carrying amount of goodwill
Goodwill, beginning balance	0
Goodwill acquired	1,534
Translation adjustments	0
Goodwill, ending balance	$ 1,534

Derivative Instruments and Hedging Activities (Tables)

6 Months Ended

May 03, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Fair Value of Derivatives and Consolidated Balance Sheet Location

The following table presents the fair value and location of the company’s derivative instruments on the Condensed Consolidated Balance Sheets:



(Dollars in thousands)	May 3, 2019		May 4, 2018		October 31, 2018
Derivative assets:
Derivatives designated as cash flow hedging instruments:
Prepaid expenses and other current assets
Forward currency contracts	$	8,980	$	1,168	$	8,596
Derivatives not designated as cash flow hedging instruments:
Prepaid expenses and other current assets
Forward currency contracts	3,881		45		2,305
Total assets	$	12,861	$	1,213	$	10,901

Derivative liabilities:
Derivatives designated as cash flow hedging instruments:
Accrued liabilities
Forward currency contracts	$	—	$	179	$	—
Derivatives not designated as cash flow hedging instruments:
Accrued liabilities
Forward currency contracts	3		1,326		13
Total liabilities	$	3	$	1,505	$	13

Schedule of Effects of Master Netting Arrangements on Fair Value of Derivative Contracts Recorded in Consolidated Balance Sheets

The following table shows the effects of the master netting arrangements on the fair value of the company’s derivative instruments that are recorded in the Condensed Consolidated Balance Sheets:



(Dollars in thousands)	May 3, 2019			May 4, 2018			October 31, 2018
Derivative assets:
Forward currency contracts:
Gross amounts of recognized assets	$	12,861		$	1,343		$	10,901
Gross liabilities offset in the Condensed Consolidated Balance Sheets	—			(130		)	—
Net amounts of assets presented in the Condensed Consolidated Balance Sheets	$	12,861		$	1,213		$	10,901

Derivative liabilities:
Forward currency contracts:
Gross amounts of recognized liabilities	$	(3	)	$	(1,726	)	$	(13	)
Gross assets offset in the Condensed Consolidated Balance Sheets	—			221			—
Net amounts of liabilities presented in the Condensed Consolidated Balance Sheets	$	(3	)	$	(1,505	)	$	(13	)

Schedule of Impact of Derivative Instruments on Consolidated Statements of Earnings for Derivatives Designated as Cash Flow Hedging Instruments



	Three Months Ended
	Gain (Loss) Reclassified from AOCL into Earnings					Gain (Loss) Recognized in OCI on Derivatives
(Dollars in thousands)	May 3, 2019		May 4, 2018			May 3, 2019		May 4, 2018
Derivatives designated as cash flow hedging instruments:
Forward currency contracts:
Net sales	$	1,240	$	(2,026	)	$	2,766	$	4,143
Cost of sales	114		295			400		(108		)
Total derivatives designated as cash flow hedging instruments	$	1,354	$	(1,731	)	$	3,166	$	4,035



	Six Months Ended
	Gain (Loss) Reclassified from AOCL into Earnings					Gain (Loss) Recognized in OCI on Derivatives
(Dollars in thousands)	May 3, 2019		May 4, 2018			May 3, 2019			May 4, 2018
Derivatives designated as cash flow hedging instruments:
Forward currency contracts:
Net sales	$	2,478	$	(3,037	)	$	(715	)	$	1,465
Cost of sales	357		473			(128		)	(209		)
Total derivatives designated as cash flow hedging instruments	$	2,835	$	(2,564	)	$	(843	)	$	1,256



	Gain (Loss) Recognized in Earnings on Cash Flow Hedging Instruments
(Dollars in thousands)	May 3, 2019					May 4, 2018
Three Months Ended	Net Sales		Cost of Sales			Net Sales			Cost of Sales
Condensed Consolidated Statements of Earnings income (expense) amounts in which the effects of cash flow hedging instruments are recorded	$	962,036	$	(640,738	)	$	875,280		$	(551,224	)
Gain (loss) on derivatives designated as cash flow hedging instruments:
Forward currency contracts:
Amount of gain (loss) reclassified from AOCL into earnings	1,240		114			(2,026		)	295
Gain (loss) on components excluded from effectiveness testing recognized in earnings based on changes in fair value	$	1,094	$	(46	)	$	(80	)	$	(93	)

	Gain (Loss) Recognized in Earnings on Cash Flow Hedging Instruments
(Dollars in thousands)	May 3, 2019					May 4, 2018
Six Months Ended	Net Sales		Cost of Sales			Net Sales			Cost of Sales
Condensed Consolidated Statements of Earnings income (expense) amounts in which the effects of cash flow hedging instruments are recorded	$	1,564,992	$	(1,028,077	)	$	1,423,526		$	(895,231	)
Gain (loss) on derivatives designated as cash flow hedging instruments:
Forward currency contracts:
Amount of gain (loss) reclassified from AOCL into earnings	2,478		357			(3,037		)	473
Gain (loss) on components excluded from effectiveness testing recognized in earnings based on changes in fair value	$	2,317	$	16		$	(101	)	$	(118	)

Schedule of Impact of Derivative Instruments on Consolidated Statements of Earnings for Derivatives Not Designated as Hedging Instruments



	Three Months Ended				Six Months Ended
(Dollars in thousands)	May 3, 2019		May 4, 2018		May 3, 2019		May 4, 2018
Gain (loss) on derivatives not designated as cash flow hedging instruments
Forward currency contracts:
Other income, net	$	1,790	$	1,200	$	727	$	(616	)
Total gain (loss) on derivatives not designated as cash flow hedging instruments	$	1,790	$	1,200	$	727	$	(616	)

Property and Depreciation (Tables)

6 Months Ended

May 03, 2019

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property, plant and equipment was as follows:



(Dollars in thousands)	May 3, 2019		May 4, 2018		October 31, 2018
Land and land improvements	$	53,123	$	38,085	$	39,607
Buildings and leasehold improvements	263,103		195,463		209,686
Machinery and equipment	421,927		341,702		349,550
Tooling	223,621		204,018		211,756
Computer hardware and software	91,353		86,500		83,338
Construction in Process	55,851		36,000		35,044
Gross property, plant, and equipment	1,108,978		901,768		928,981
Less: accumulated depreciation	683,597		656,420		657,522
Property, plant, and equipment, net	$	425,381	$	245,348	$	271,459

Business Combination - Narrative (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
	Apr. 01, 2019	May 03, 2019	May 04, 2018	May 03, 2019	May 04, 2018	Feb. 01, 2019	Oct. 31, 2018
Business Acquisition [Line Items]
Goodwill		$ 372,343	$ 225,736	$ 372,343	$ 225,736		$ 225,290
Other intangible assets, net		333,177	109,710	333,177	109,710		105,649
Amortization of intangible assets		3,700	$ 1,800	5,500	$ 3,600
Fiscal 2020		16,500		16,500
Fiscal 2021		16,100		16,100
Fiscal 2022		15,400		15,400
Fiscal 2023		14,000		14,000
Fiscal 2024		13,300		13,300
After 2024		122,900		122,900
The Charles Machine Works, Inc.
Business Acquisition [Line Items]
Total purchase price	$ 679,579
Goodwill	145,538
Other intangible assets, net		231,019		231,019
Amortization of intangible assets		2,000		2,000
Fiscal 2019 (remainder)		10,700		10,700
Fiscal 2020		10,400		10,400
Fiscal 2021		10,400		10,400
Fiscal 2022		9,800		9,800
Fiscal 2023		8,800		8,800
Fiscal 2024		8,400		8,400
After 2024		82,100		82,100
Revenue of acquiree since acquisition date		70,900		70,900
Business combination, pro forma information, earnings or loss of acquiree since acquisition date, actual		(4,100)		(4,100)
Other intangible assets	$ 232,980
Acquisition related costs		8,000		9,700
Operating Segments \| Professional
Business Acquisition [Line Items]
Goodwill		360,318		360,318		$ 215,000	$ 214,827
Inventory and Backlog \| The Charles Machine Works, Inc.
Business Acquisition [Line Items]
Amortization of intangible assets				$ 9,500
Fair Value Adjustment to Inventory and Other Adjustments \| The Charles Machine Works, Inc.
Business Acquisition [Line Items]
Business combination, pro forma information, earnings or loss of acquiree since acquisition date, actual		$ (9,500)

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	May 03, 2019	May 29, 2019
Document And Entity Information [Abstract]
Entity Registrant Name	TORO CO
Entity Central Index Key	0000737758
Document Type	10-Q
Document Period End Date	May 03, 2019
Amendment Flag	false
Current Fiscal Year End Date	--10-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth	false
Entity Small Business	false
Entity Common Stock, Shares Outstanding (in shares)		106,435,227
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2

Goodwill and Other Intangible Assets (Tables)

6 Months Ended

May 03, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The changes in the carrying amount of goodwill by reportable segment for the first six months of fiscal 2019 were as follows:



(Dollars in thousands)	Professional			Residential		Other		Total
Balance as of October 31, 2018	$	214,827		$	10,463	$	—	$	225,290
Goodwill acquired	145,538			—		1,534		147,072
Translation adjustments	(47		)	28		—		(19		)
Balance as of May 3, 2019	$	360,318		$	10,491	$	1,534	$	372,343

Schedule of Finite-Lived Intangible Assets

The components of other intangible assets as of May 3, 2019 were as follows:



(Dollars in thousands)	Weighted-Average Useful Life	Gross Carrying Amount		Accumulated Amortization			Net
Patents	9.9	$	18,254	$	(12,728	)	$	5,526
Non-compete agreements	5.5	6,889		(6,797		)	92
Customer-related	18.3	201,022		(26,719		)	174,303
Developed technology	7.6	50,338		(29,292		)	21,046
Trade names	15.5	7,599		(1,903		)	5,696
Backlog and other	0.6	7,380		(1,897		)	5,483
Total amortizable	15.1	291,482		(79,336		)	212,146
Non-amortizable - trade names		121,031		—			121,031
Total other intangible assets, net		$	412,513	$	(79,336	)	$	333,177

The components of other intangible assets as of May 4, 2018 were as follows:



(Dollars in thousands)	Weighted-Average Useful Life	Gross Carrying Amount		Accumulated Amortization			Net
Patents	9.7	$	18,287	$	(11,937	)	$	6,350
Non-compete agreements	5.5	6,918		(6,806		)	112
Customer-related	18.5	89,874		(21,284		)	68,590
Developed technology	7.6	31,180		(27,872		)	3,308
Trade names	5.0	2,351		(1,724		)	627
Other	1.0	800		(800		)	—
Total amortizable	14.2	149,410		(70,423		)	78,987
Non-amortizable - trade names		30,723		—			30,723
Total other intangible assets, net		$	180,133	$	(70,423	)	$	109,710

The components of other intangible assets as of October 31, 2018 were as follows:



(Dollars in thousands)	Weighted-Average Useful Life	Gross Carrying Amount		Accumulated Amortization			Net
Patents	9.9	$	18,235	$	(12,297	)	$	5,938
Non-compete agreements	5.5	6,872		(6,771		)	101
Customer-related	18.5	89,622		(23,653		)	65,969
Developed technology	7.6	31,029		(28,471		)	2,558
Trade names	5.0	2,307		(1,805		)	502
Other	1.0	800		(800		)	—
Total amortizable	14.3	148,865		(73,797		)	75,068
Non-amortizable - trade names		30,581		—			30,581
Total other intangible assets, net		$	179,446	$	(73,797	)	$	105,649

Schedule of Indefinite-Lived Intangible Assets

The components of other intangible assets as of May 3, 2019 were as follows:



(Dollars in thousands)	Weighted-Average Useful Life	Gross Carrying Amount		Accumulated Amortization			Net
Patents	9.9	$	18,254	$	(12,728	)	$	5,526
Non-compete agreements	5.5	6,889		(6,797		)	92
Customer-related	18.3	201,022		(26,719		)	174,303
Developed technology	7.6	50,338		(29,292		)	21,046
Trade names	15.5	7,599		(1,903		)	5,696
Backlog and other	0.6	7,380		(1,897		)	5,483
Total amortizable	15.1	291,482		(79,336		)	212,146
Non-amortizable - trade names		121,031		—			121,031
Total other intangible assets, net		$	412,513	$	(79,336	)	$	333,177

The components of other intangible assets as of May 4, 2018 were as follows:



(Dollars in thousands)	Weighted-Average Useful Life	Gross Carrying Amount		Accumulated Amortization			Net
Patents	9.7	$	18,287	$	(11,937	)	$	6,350
Non-compete agreements	5.5	6,918		(6,806		)	112
Customer-related	18.5	89,874		(21,284		)	68,590
Developed technology	7.6	31,180		(27,872		)	3,308
Trade names	5.0	2,351		(1,724		)	627
Other	1.0	800		(800		)	—
Total amortizable	14.2	149,410		(70,423		)	78,987
Non-amortizable - trade names		30,723		—			30,723
Total other intangible assets, net		$	180,133	$	(70,423	)	$	109,710

The components of other intangible assets as of October 31, 2018 were as follows:



(Dollars in thousands)	Weighted-Average Useful Life	Gross Carrying Amount		Accumulated Amortization			Net
Patents	9.9	$	18,235	$	(12,297	)	$	5,938
Non-compete agreements	5.5	6,872		(6,771		)	101
Customer-related	18.5	89,622		(23,653		)	65,969
Developed technology	7.6	31,029		(28,471		)	2,558
Trade names	5.0	2,307		(1,805		)	502
Other	1.0	800		(800		)	—
Total amortizable	14.3	148,865		(73,797		)	75,068
Non-amortizable - trade names		30,581		—			30,581
Total other intangible assets, net		$	179,446	$	(73,797	)	$	105,649

Stock-Based Compensation

6 Months Ended

May 03, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

Compensation costs related to stock-based awards were as follows:



	Three Months Ended				Six Months Ended
(Dollars in thousands)	May 3, 2019		May 4, 2018		May 3, 2019		May 4, 2018
Stock option awards	$	1,328	$	1,240	$	3,163	$	2,415
Restricted stock units	759		650		1,452		1,655
Performance share awards	1,014		551		1,818		965
Unrestricted common stock awards	—		—		592		530
Total compensation cost for stock-based awards	$	3,101	$	2,441	$	7,025	$	5,565

During the first six months of fiscal years 2019 and 2018, 10,090 and 8,388 shares, respectively, of fully vested unrestricted common stock awards were granted to certain members of the company's Board of Directors as a component of their compensation for their service on the Board of Directors and are recorded in selling, general and administrative expense in the Condensed Consolidated Statements of Earnings. No shares of fully vested unrestricted common stock awards were granted during the second quarter of fiscal years 2019 and 2018.

Stock Option Awards

Under The Toro Company Amended and Restated 2010 Equity and Incentive Plan, as amended and restated (the "2010 plan"), stock options are granted with an exercise price equal to the closing price of the company’s common stock on the date of grant, as reported by the New York Stock Exchange. Options are generally granted to executive officers, other employees, and non-employee members of the company’s Board of Directors on an annual basis in the first quarter of the company’s fiscal year. Options generally vest one-third each year over a three-year period and have a ten-year term. Other options granted to certain employees vest in full on the three-year anniversary of the date of grant and have a ten-year term. Compensation cost equal to the grant date fair value is generally recognized for these awards over the vesting period. Stock options granted to executive officers and other employees are subject to accelerated vesting if the option holder meets the retirement definition set forth in the 2010 plan. In that case, the fair value of the options is expensed in the fiscal year of grant because generally the option holder must be employed as of the end of the fiscal year in which the options are granted in order for the options to continue to vest following retirement. Similarly, if a non-employee director has served on the company’s Board of Directors for ten full fiscal years or more, the awards

vest immediately upon retirement, and therefore, the fair value of the options granted is fully expensed on the date of the grant.

The fair value of each stock option is estimated on the date of grant using the Black-Scholes valuation method with the assumptions noted in the table below. The expected life is a significant assumption as it determines the period for which the risk-free interest rate, stock price volatility, and dividend yield must be applied. The expected life is the average length of time in which executive officers, other employees, and non-employee directors are expected to exercise their stock options, which is primarily based on historical exercise experience. The company groups executive officers and non-employee directors for valuation purposes based on similar historical exercise behavior. Expected stock price volatilities are based on the daily movement of the company’s common stock over the most recent historical period equivalent to the expected life of the option. The risk-free interest rate for periods within the contractual life of the option is based on the U.S. Treasury rate over the expected life at the time of grant. Dividend yield is estimated over the expected life based on the company’s historical cash dividends paid, expected future cash dividends and dividend yield, and expected changes in the company’s stock price.

The table below illustrates the weighted-average valuation assumptions for options granted in the following fiscal periods:



	Fiscal 2019	Fiscal 2018
Expected life of option in years	6.31	6.04
Expected stock price volatility	19.84%	20.58%
Risk-free interest rate	2.77%	2.21%
Expected dividend yield	1.18%	0.97%
Per share weighted-average fair value at date of grant	$12.82	$14.25

Performance Share Awards

Under the 2010 plan, the company grants performance share awards to executive officers and other employees under which they are entitled to receive shares of the company’s common stock contingent on the achievement of performance goals of the company and businesses of the company, which are generally measured over a three-year period. The number of shares of common stock a participant receives will be increased (up to 200 percent of target levels) or reduced (down to zero) based on the level of achievement of performance goals and will vest at the end of a three-year period. Performance share awards are generally granted on an annual basis in the first quarter of the company’s fiscal year. Compensation cost is recognized for these awards on a straight-line basis over the vesting period based on the per share fair value as of the date of grant and the probability of achieving each performance goal. The per share weighted-average fair value of performance share awards granted during the first quarter of fiscal 2019 and 2018 was $59.58 and $65.40, respectively. No performance share awards were granted during the second quarter of fiscal 2019 and 2018.

Restricted Stock Unit Awards

Under the 2010 plan, restricted stock unit awards are generally granted to certain employees that are not executive officers. Occasionally, restricted stock unit awards may be granted, including to executive officers, in connection with hiring, mid-year promotions, leadership transition, or retention. Restricted stock unit awards generally vest one-third each year over a three-year period, or vest in full on the three-year anniversary of the date of grant. Such awards may have performance-based rather than time-based vesting requirements. Compensation cost equal to the grant date fair value, which is equal to the closing price of the company’s common stock on the date of grant multiplied by the number of shares subject to the restricted stock unit awards, is recognized for these awards over the vesting period. The per share weighted-average fair value of restricted stock unit awards granted during the first six months of fiscal 2019 and 2018 was $64.75 and $65.82, respectively.

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	May 03, 2019	May 04, 2018	May 03, 2019	May 04, 2018
Statement of Comprehensive Income [Abstract]
Net earnings	$ 115,570	$ 131,289	$ 175,110	$ 153,893
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(3,767)	(8,748)	(336)	2,124
Derivative instruments, net of tax of $998; $1,412; $(354); and $833, respectively	3,166	4,035	(843)	1,256
Other comprehensive income (loss), net of tax	(601)	(4,713)	(1,179)	3,380
Comprehensive income	$ 114,969	$ 126,576	$ 173,931	$ 157,273

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	May 03, 2019	May 04, 2018
Cash flows from operating activities:
Net earnings	$ 175,110	$ 153,893
Adjustments to reconcile net earnings to net cash provided by operating activities:
Non-cash income from finance affiliate	(5,825)	(5,370)
Contributions to finance affiliate, net	(1,743)	(2,959)
Provision for depreciation and amortization	43,452	30,141
Stock-based compensation expense	7,025	5,565
Deferred income taxes	(193)	21,121
Other	42	(40)
Changes in operating assets and liabilities, net of effect of acquisitions:
Receivables, net	(169,820)	(143,947)
Inventories, net	(4,683)	(62,575)
Prepaid expenses and other assets	534	(8,402)
Accounts payable, accrued liabilities, deferred revenue and other long-term liabilities	120,091	151,007
Net cash provided by operating activities	163,990	138,434
Cash flows from investing activities:
Purchases of property, plant and equipment	(33,421)	(35,365)
Proceeds from asset disposals	105	0
Investment in unconsolidated entities	(150)	(333)
Acquisitions, net of cash acquired	(692,077)	(31,202)
Net cash used in investing activities	(725,543)	(66,900)
Cash flows from financing activities:
Borrowings under debt arrangements	700,000	0
Repayments under debt arrangements	(201,004)	(20,239)
Proceeds from exercise of stock options	24,408	5,778
Payments of withholding taxes for stock awards	(1,894)	(3,212)
Purchases of Toro common stock	(20,043)	(116,490)
Dividends paid on Toro common stock	(47,930)	(42,679)
Net cash provided by (used in) financing activities	453,537	(176,842)
Effect of exchange rates on cash and cash equivalents	(1,030)	1,152
Net decrease in cash and cash equivalents	(109,046)	(104,156)
Cash and cash equivalents as of the beginning of the fiscal period	289,124	310,256
Cash and cash equivalents as of the end of the fiscal period	$ 180,078	$ 206,100

Per Share Data (Tables)

6 Months Ended

May 03, 2019

Earnings Per Share [Abstract]

Reconciliations of basic and diluted weighted-average shares of common stock outstanding

Reconciliations of basic and diluted weighted-average shares of common stock outstanding are as follows:



	Three Months Ended		Six Months Ended
(Shares in thousands)	May 3, 2019	May 4, 2018	May 3, 2019	May 4, 2018
Basic
Weighted-average number of shares of common stock	106,679	106,423	106,445	106,804
Assumed issuance of contingent shares	—	—	21	26
Weighted-average number of shares of common stock and assumed issuance of contingent shares	106,679	106,423	106,466	106,830

Diluted
Weighted-average number of shares of common stock and assumed issuance of contingent shares	106,679	106,423	106,466	106,830
Effect of dilutive securities	1,328	2,412	1,443	2,523
Weighted-average number of shares of common stock, assumed issuance of contingent shares, and effect of dilutive securities	108,007	108,835	107,909	109,353

Fair Value Measurements

6 Months Ended

May 03, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements

The company categorizes its assets and liabilities into one of three levels based on the assumptions (inputs) used in valuing the asset or liability. Estimates of fair value for financial assets and financial liabilities are based on the framework established in the accounting guidance for fair value measurements. The framework defines fair value, provides guidance for measuring fair value, and requires certain disclosures. The framework discusses valuation techniques such as the market approach (comparable market prices), the income approach (present value of future income or cash flows), and the cost approach (cost to replace the service capacity of an asset or replacement cost). The framework utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. Level 1 provides the most reliable measure of fair value, while Level 3 generally requires significant management judgment. The three levels are defined as follows:

Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2: Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3: Unobservable inputs reflecting management’s assumptions about the inputs used in pricing the asset or liability.

Recurring Fair Value Measurements

The company's derivative instruments consist of forward currency contracts that are measured at fair value on a recurring basis. The fair value of forward currency contracts is determined based on observable market transactions of forward currency prices and spot currency rates as of the reporting date. There were no transfers between the levels of the fair value hierarchy during the three and six months ended May 3, 2019 and May 4, 2018, or the twelve months ended October 31, 2018.

The following tables present, by level within the fair value hierarchy, the company's financial assets and liabilities that are measured at fair value on a recurring basis as of May 3, 2019, May 4, 2018, and October 31, 2018, according to the valuation technique utilized to determine their fair values:



(Dollars in thousands)			Fair Value Measurements Using Inputs Considered as:
May 3, 2019	Fair Value		Level 1		Level 2		Level 3
Assets:
Forward currency contracts	$	12,861	$	—	$	12,861	$	—
Total assets	$	12,861	$	—	$	12,861	$	—

Liabilities:
Forward currency contracts	$	3	$	—	$	3	$	—
Total liabilities	$	3	$	—	$	3	$	—



(Dollars in thousands)			Fair Value Measurements Using Inputs Considered as:
May 4, 2018	Fair Value		Level 1		Level 2		Level 3
Assets:
Forward currency contracts	$	1,213	$	—	$	1,213	$	—
Total assets	$	1,213	$	—	$	1,213	$	—

Liabilities:
Forward currency contracts	$	1,505	$	—	$	1,505	$	—
Total liabilities	$	1,505	$	—	$	1,505	$	—



(Dollars in thousands)			Fair Value Measurements Using Inputs Considered as:
October 31, 2018	Fair Value		Level 1		Level 2		Level 3
Assets:
Forward currency contracts	$	10,901	$	—	$	10,901	$	—
Total assets	$	10,901	$	—	$	10,901	$	—

Liabilities:
Forward currency contracts	$	13	$	—	$	13	$	—
Total liabilities	$	13	$	—	$	13	$	—

Non-recurring Fair Value Measurements

The company measures certain assets and liabilities at fair value on a non-recurring basis. Assets and liabilities that are measured at fair value on a nonrecurring basis include long-lived assets, goodwill and indefinite-lived intangible assets, which would generally be recorded at fair value as a result of an impairment charge. Assets acquired and liabilities assumed as part of business combinations are measured at fair value. For additional information on the company's business combinations and the related non-recurring fair value measurement of the assets acquired and liabilities assumed, refer to Note 2, Business Combinations.

Other Fair Value Disclosures

The carrying values of the company's short-term financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, and short-term debt, including current maturities of long-term debt, when applicable, approximate their fair values due to their short-term nature.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Inventories (Tables)

6 Months Ended

May 03, 2019

Inventory Disclosure [Abstract]

Schedule of Inventories

Inventories were as follows:



(Dollars in thousands)	May 3, 2019		May 4, 2018		October 31, 2018
Raw materials and work in process	$	186,065	$	112,435	$	115,280
Finished goods and service parts	497,467		349,167		315,179
Total FIFO value	683,532		461,602		430,459
Less: adjustment to LIFO value	72,201		66,801		72,200
Total inventories, net	$	611,331	$	394,801	$	358,259

Property and Depreciation

6 Months Ended

May 03, 2019

Property, Plant and Equipment [Abstract]

Property and Depreciation

Property, plant, and equipment assets are carried at cost less accumulated depreciation. The company provides for depreciation of property, plant and equipment utilizing the straight-line method over the estimated useful lives of the assets. Buildings and leasehold improvements are generally depreciated over 10 to 40 years, machinery and equipment are generally depreciated over two to 15 years, tooling is generally depreciated over three to five years, and computer hardware and software and web site development costs are generally depreciated over two to five years. Expenditures for major renewals and improvements, which substantially increase the useful lives of existing assets, are capitalized, and expenditures for general maintenance and repairs are charged to operating expenses as incurred. Interest is capitalized during the construction period for significant capital projects.

On April 1, 2019, with the acquisition of CMW, the company acquired $142.7 million of property, plant, and equipment, based on preliminary fair value purchase accounting adjustments. For additional information on the company's acquisition of CMW, refer to Note 2, Business Combinations.

Property, plant and equipment was as follows:



(Dollars in thousands)	May 3, 2019		May 4, 2018		October 31, 2018
Land and land improvements	$	53,123	$	38,085	$	39,607
Buildings and leasehold improvements	263,103		195,463		209,686
Machinery and equipment	421,927		341,702		349,550
Tooling	223,621		204,018		211,756
Computer hardware and software	91,353		86,500		83,338
Construction in Process	55,851		36,000		35,044
Gross property, plant, and equipment	1,108,978		901,768		928,981
Less: accumulated depreciation	683,597		656,420		657,522
Property, plant, and equipment, net	$	425,381	$	245,348	$	271,459

Subsequent Events	6 Months Ended
Subsequent Events	May 03, 2019
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events The company has evaluated all subsequent events and concluded that no subsequent events have occurred that would require recognition in the Condensed Consolidated Financial Statements or disclosure in the Notes to the Condensed Consolidated Financial Statements.

Inventories

6 Months Ended

May 03, 2019

Inventory Disclosure [Abstract]

Inventories

Inventories are valued at the lower of cost or net realizable value, with cost determined by the last-in, first-out ("LIFO") method for a majority of the company's inventories and the first-in, first-out ("FIFO") method for all other inventories. The company establishes a reserve for excess, slow-moving, and obsolete inventory that is equal to the difference between the cost and estimated net realizable value for that inventory. These reserves are based on a review and comparison of current inventory levels to planned production, as well as planned and historical sales of the inventory.

On April 1, 2019, with the acquisition of CMW, the company acquired $243.7 million of inventory, based on preliminary fair value purchase accounting adjustments. For additional information on the company's acquisition of CMW, refer to Note 2, Business Combinations.

Inventories were as follows:



(Dollars in thousands)	May 3, 2019		May 4, 2018		October 31, 2018
Raw materials and work in process	$	186,065	$	112,435	$	115,280
Finished goods and service parts	497,467		349,167		315,179
Total FIFO value	683,532		461,602		430,459
Less: adjustment to LIFO value	72,201		66,801		72,200
Total inventories, net	$	611,331	$	394,801	$	358,259

Per Share Data

6 Months Ended

May 03, 2019

Earnings Per Share [Abstract]

Per Share Data

Reconciliations of basic and diluted weighted-average shares of common stock outstanding are as follows:



	Three Months Ended		Six Months Ended
(Shares in thousands)	May 3, 2019	May 4, 2018	May 3, 2019	May 4, 2018
Basic
Weighted-average number of shares of common stock	106,679	106,423	106,445	106,804
Assumed issuance of contingent shares	—	—	21	26
Weighted-average number of shares of common stock and assumed issuance of contingent shares	106,679	106,423	106,466	106,830

Diluted
Weighted-average number of shares of common stock and assumed issuance of contingent shares	106,679	106,423	106,466	106,830
Effect of dilutive securities	1,328	2,412	1,443	2,523
Weighted-average number of shares of common stock, assumed issuance of contingent shares, and effect of dilutive securities	108,007	108,835	107,909	109,353

Incremental shares from options and restricted stock units are computed under the treasury stock method. Options to purchase 757,083 and 464,557 shares of common stock during the second quarter of fiscal 2019 and 2018, respectively, were excluded from diluted net earnings per share because they were anti-dilutive. Options to purchase 837,936 and 385,434 shares of common stock during the first six months of fiscal 2019 and 2018, respectively, were excluded from diluted net earnings per share because they were anti-dilutive.

Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	May 03, 2019	May 04, 2018	May 03, 2019	May 04, 2018
Statement of Comprehensive Income [Abstract]
Derivative instruments, tax	$ 998	$ 1,412	$ (354)	$ 833

Inventories - Narrative (Details) $ in Thousands	Apr. 01, 2019 USD ($)
The Charles Machine Works, Inc.
Business Acquisition [Line Items]
Inventories	$ 243,721

Derivative Instruments and Hedging Activities - Impact and Location of Derivatives Not Designated As Cash Flow Hedging Instruments (Details) - Other Income, Net - Derivatives not designated as cash flow hedging instruments: - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	May 03, 2019	May 04, 2018	May 03, 2019	May 04, 2018
Derivative Instruments, Gain (Loss) [Line Items]
Total gain (loss) on derivatives not designated as cash flow hedging instruments	$ 1,790	$ 1,200	$ 727	$ (616)
Forward currency contracts
Derivative Instruments, Gain (Loss) [Line Items]
Total gain (loss) on derivatives not designated as cash flow hedging instruments	$ 1,790	$ 1,200	$ 727	$ (616)

Derivative Instruments and Hedging Activities - Narrative (Details) $ in Millions	6 Months Ended
	May 03, 2019 USD ($)
Derivative Instruments, Gain (Loss) [Line Items]
Maximum length of time hedged in cash flow hedge	2 years
Cash flow hedge effectiveness measurement period	2 months
Gains from AOCL to earnings	$ 5.2
Forward currency contracts
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, notional amount	$ 255.2

Investment in Joint Venture	6 Months Ended
Investment in Joint Venture	May 03, 2019
Equity Method Investments and Joint Ventures [Abstract]
Investment in Joint Venture	Investment in Joint Venture In fiscal 2009, the company and TCFIF established Red Iron to primarily provide inventory financing to certain distributors and dealers of the company’s products in the U.S. On November 29, 2016, during the first quarter of fiscal 2017, the company entered into amended agreements for its Red Iron joint venture with TCFIF. As a result, the amended term of Red Iron will continue until October 31, 2024, subject to two-year extensions thereafter. Either the company or TCFIF may elect not to extend the amended term, or any subsequent term, by giving one-year written notice to the other party. The company owns 45 percent of Red Iron and TCFIF owns 55 percent of Red Iron. The company accounts for its investment in Red Iron under the equity method of accounting. The company and TCFIF each contributed a specified amount of the estimated cash required to enable Red Iron to purchase the company’s inventory financing receivables and to provide financial support for Red Iron’s inventory financing programs. Red Iron borrows the remaining requisite estimated cash utilizing a $550 million secured revolving credit facility established under a credit agreement between Red Iron and TCFIF. The company’s total investment in Red Iron as of May 3, 2019 was $30.1 million. The company has not guaranteed the outstanding indebtedness of Red Iron. The company has agreed to repurchase products repossessed by Red Iron and the TCFIF Canadian affiliate, up to a maximum aggregate amount of $7.5 million in a calendar year. Under the repurchase agreement between Red Iron and the company, Red Iron provides financing for certain dealers and distributors. These transactions are structured as an advance in the form of a payment by Red Iron to the company on behalf of a distributor or dealer with respect to invoices financed by Red Iron. These payments extinguish the obligation of the dealer or distributor to make payment to the company under the terms of the applicable invoice. Under separate agreements between Red Iron and the dealers and distributors, Red Iron provides loans to the dealers and distributors for the advances paid by Red Iron to the company. The net amount of receivables financed for dealers and distributors under this arrangement for the six months ended May 3, 2019 and May 4, 2018 were $1,031.3 million and $990.4 million, respectively. As of April 30, 2019, Red Iron’s total assets were $600.8 million and total liabilities were $533.9 million.

Property and Depreciation - Summary (Details) - USD ($) $ in Thousands	May 03, 2019	Oct. 31, 2018	May 04, 2018
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 1,108,978	$ 928,981	$ 901,768
Less accumulated depreciation	683,597	657,522	656,420
Property, plant and equipment, net	425,381	271,459	245,348
Land and land improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	53,123	39,607	38,085
Buildings and leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	263,103	209,686	195,463
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	421,927	349,550	341,702
Tooling
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	223,621	211,756	204,018
Computer hardware and software
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	91,353	83,338	86,500
Construction in Process
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 55,851	$ 35,044	$ 36,000

Business Combinations (Tables)

6 Months Ended

May 03, 2019

Business Combinations [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table summarizes the allocation of the preliminary purchase price to the values assigned to the CMW assets acquired and liabilities assumed. These values are based on internal company and independent external third-party valuations and are subject to change as certain asset and liability valuations are finalized:



(Dollars in thousands)	April 1, 2019
Cash and cash equivalents	$	16,036
Receivables	65,618
Inventories	243,721
Prepaid expenses and other current assets	8,209
Property, plant and equipment	142,700
Goodwill	145,538
Other intangible assets	232,980
Other long-term assets	12,956
Accounts payable	(36,644		)
Accrued liabilities	(44,260		)
Deferred income tax liabilities	(83,254		)
Other long-term liabilities	(7,985		)
Total fair value of net assets acquired	695,615
Less: cash and cash equivalents acquired	(16,036		)
Total purchase price	$	679,579

Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination

The preliminary fair values of the other intangible assets acquired on the closing date, related accumulated amortization from the closing date through May 3, 2019, and preliminary weighted-average useful lives were as follows:



(Dollars in thousands)	Weighted-Average Useful Life	Gross Carrying Amount		Accumulated Amortization			Net
Customer-related	18.1	$	111,400	$	(576	)	$	110,824
Developed technology	7.7	19,300		(266		)	19,034
Trade names	20.0	5,300		(22		)	5,278
Backlog	0.5	6,580		(1,097		)	5,483
Total amortizable	16.0	142,580		(1,961		)	140,619
Non-amortizable - trade names		90,400		—			90,400
Total other intangible assets, net		$	232,980	$	(1,961	)	$	231,019

Business Acquisition, Pro Forma Information

The following table presents the unaudited pro forma financial information:



	Three Months Ended				Six Months Ended
(Dollars in thousands)	May 3, 2019		May 4, 2018		May 3, 2019		May 4, 2018
Net sales	$	1,086,708	$	1,046,932	$	1,864,243	$	1,749,535
Net earnings¹	176,481		131,022		233,404		152,102
Basic net earnings per share of common stock	1.65		1.23		2.19		1.42
Diluted net earnings per share of common stock¹	$	1.63	$	1.20	$	2.16	$	1.39

On January 1, 2019, CMW amended its retiree medical plans so that no employee hired, or rehired, after that date would be eligible for such retiree medical plans. CMW further amended its retiree medical plans on February 14, 2019 so that no employee who terminates employment after February 14, 2019 is eligible to participate in the retiree medical plans and to terminate its retiree medical plans effective December 31, 2019. The amendments and resulting termination of CMW's retiree medical plans resulted in a gain of approximately $45.8 million. This gain is reflected within net earnings

in the unaudited pro forma financial information for the three and six month periods ended May 3, 2019. The impact on diluted net earnings per share of common stock for the three and six month periods ended May 3, 2019 was $0.42 per diluted share of common stock.

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	May 03, 2019	May 04, 2018	May 03, 2019	May 04, 2018
Statement of Stockholders' Equity [Abstract]
Cash dividends paid on common stock (in dollars per share)	$ 0.225	$ 0.20	$ 0.45	$ 0.40
Issuance of options (in shares)	687,522	102,262	1,225,308	609,253
Purchase of shares of common stock (in shares)	345	1,080,729	392,245	2,036,037

Business Combinations

6 Months Ended

May 03, 2019

Business Combinations [Abstract]

Business Combinations

The Charles Machine Works, Inc.

On April 1, 2019 ("closing date"), pursuant to the Agreement and Plan of Merger dated February 14, 2019 ("merger agreement"), the company completed the acquisition of CMW, a privately held Oklahoma corporation. CMW designs, manufactures, and sells a range of professional products to serve the underground construction market, including horizontal directional drills, walk and ride trenchers, utility loaders, vacuum excavators, asset locators, pipe rehabilitation solutions, and after-market tools. CMW provides innovative product offerings that broaden and strengthen the company's Professional segment product portfolio and expands its dealer network, while also providing a complementary geographic manufacturing footprint. The transaction was structured as a merger, pursuant to which a wholly-owned subsidiary of the company merged with and into CMW, with CMW continuing as the surviving entity and a wholly-owned subsidiary of the company. As a result of the merger, all of the outstanding equity securities of CMW were canceled and now only represent the right to receive the applicable consideration as described in the merger agreement. The preliminary aggregate merger consideration was $679.6 million ("purchase price"), and remains subject to customary adjustments based on, among other things, the amount of actual cash, debt and working capital in the business of CMW at the closing date. Such customary adjustments are expected to be completed during fiscal 2019. The company funded the preliminary purchase price for the acquisition by using a combination of cash proceeds from the issuance of borrowings under the company's unsecured senior term loan credit agreement and borrowings from the company's unsecured senior revolving credit facility. For additional information regarding the financing agreements utilized to fund the purchase price, refer to Note 6, Indebtedness. The company has incurred approximately $8.0 million and $9.7 million of acquisition-related transaction costs during the three and six month periods ended May 3, 2019, respectively. These acquisition-related transaction costs are recorded within selling, general and administrative expense within the Condensed Consolidated Statements of Earnings.

Preliminary Purchase Price Allocation

The company accounted for the acquisition in accordance with the accounting standards codification guidance for business combinations, whereby the total purchase price was allocated to the acquired net tangible and intangible assets of CMW based on their fair values as of the closing date. The company believes that the information available as of the closing date provides a reasonable basis for estimating the fair values of the assets acquired and liabilities assumed; however, the company is continuing to finalize these amounts, particularly with respect to income taxes and valuations of inventories, fixed assets, and intangible assets. Thus, the preliminary measurements of fair value reflected are subject to change as additional information becomes available and as additional analysis is performed. The company expects to finalize the valuation and complete the allocation of the purchase price as soon as practicable, but no later than one year from the closing date of the acquisition, as required.



(Dollars in thousands)	April 1, 2019
Cash and cash equivalents	$	16,036
Receivables	65,618
Inventories	243,721
Prepaid expenses and other current assets	8,209
Property, plant and equipment	142,700
Goodwill	145,538
Other intangible assets	232,980
Other long-term assets	12,956
Accounts payable	(36,644		)
Accrued liabilities	(44,260		)
Deferred income tax liabilities	(83,254		)
Other long-term liabilities	(7,985		)
Total fair value of net assets acquired	695,615
Less: cash and cash equivalents acquired	(16,036		)
Total purchase price	$	679,579

The goodwill recognized is primarily attributable to the value of the workforce, the reputation of CMW and its family of brands, customer and dealer growth opportunities, and expected synergies. Key areas of expected cost synergies include increased purchasing power for commodities and component parts, supply chain consolidation, and administrative efficiencies. The goodwill resulting from the acquisition of CMW was recognized within the company's Professional segment and increased Professional segment goodwill to $360.3 million as of May 3, 2019 from $215.0 million as of February 1, 2019. Goodwill is expected to be mostly non-deductible for tax purposes.

Other Intangible Assets Acquired

The allocation of the preliminary purchase price to the net assets acquired resulted in the recognition of $233.0 million of other intangible assets as of the closing date. The preliminary fair values of the acquired trade name, customer-related, developed technology and backlog intangible assets were estimated using the income approach. Under the income approach, an intangible asset's fair value is equal to the present value of future economic benefits to be derived from ownership of the asset. The preliminary fair values of the trade names were estimated using the relief from royalty method, which is based on the hypothetical royalty stream that would be received if the company were to license the trade name and was based on expected future revenues. The preliminary fair values of the customer-related, developed technology, and backlog intangible assets were determined using the excess earnings method. The preliminary fair values of such other intangible assets under the excess earnings method are based on the expected operating cash flows attributable to the respective other intangible asset, which were estimated by deducting economic costs, including operating expenses and contributory asset charges, from revenue expected to be generated from the respective other intangible asset. The preliminary useful lives of the intangible assets were determined based on the period of expected cash flows used to measure the preliminary fair value of the intangible assets adjusted as appropriate for entity-specific factors including legal, regulatory, contractual, competitive, economic, and/or other factors that may limit the useful life of the respective intangible asset.



(Dollars in thousands)	Weighted-Average Useful Life	Gross Carrying Amount		Accumulated Amortization			Net
Customer-related	18.1	$	111,400	$	(576	)	$	110,824
Developed technology	7.7	19,300		(266		)	19,034
Trade names	20.0	5,300		(22		)	5,278
Backlog	0.5	6,580		(1,097		)	5,483
Total amortizable	16.0	142,580		(1,961		)	140,619
Non-amortizable - trade names		90,400		—			90,400
Total other intangible assets, net		$	232,980	$	(1,961	)	$	231,019

Amortization expense for the definite-lived intangible assets resulting from the acquisition of CMW for the three and six month periods ended May 3, 2019 was $2.0 million. Estimated amortization expense for the remainder of fiscal 2019 and succeeding fiscal years is as follows: fiscal 2019 (remainder), $10.7 million; fiscal 2020, $10.4 million; fiscal 2021, $10.4 million; fiscal 2022, $9.8 million; fiscal 2023, $8.8 million; fiscal 2024, $8.4 million; and after fiscal 2024, $82.1 million.

Results of Operations

CMW's results of operations have been included within the Professional segment in the company's Condensed Consolidated Financial Statements from the closing date. During the three and six month periods ended May 3, 2019, the company recognized $70.9 million and $4.1 million of net sales and segment loss from CMW's operations, respectively. Segment loss for the three and six month periods ended May 3, 2019 includes a $9.5 million charge for amortization of the inventory fair value step-up amount and backlog intangible asset resulting from purchase accounting adjustments.

Unaudited Pro Forma Financial Information

Unaudited pro forma financial information has been prepared as if the acquisition had taken place on November 1, 2017 and has been prepared for comparative purposes only. The unaudited pro forma financial information is not necessarily indicative of the results that would have been achieved had the acquisition actually taken place on November 1, 2017 and the unaudited pro forma financial information does not purport to be indicative of future Consolidated Results of Operations. The unaudited pro forma financial information does not reflect any synergies, operating efficiencies, and/or cost savings that may be realized from the integration of the acquisition. The unaudited pro forma results for the three and six month periods ended May 3, 2019 and May 4, 2018 have been adjusted to exclude the pro forma impact of amortization of the inventory fair value step-up amount and backlog intangible asset; include the pro forma impact of amortization of other intangible assets, excluding backlog, based on the estimated purchase price allocations and estimated useful lives; include the pro forma impact of the depreciation of property, plant, and equipment based on the estimated purchase price allocations and estimated useful lives; include the pro forma impact of additional interest expense relating to the acquisition; exclude the pro forma impact of transaction costs incurred by the company directly attributable to the acquisition; and include the pro forma tax effect of both earnings before income taxes and the pro forma adjustments.

The following table presents the unaudited pro forma financial information:



	Three Months Ended				Six Months Ended
(Dollars in thousands)	May 3, 2019		May 4, 2018		May 3, 2019		May 4, 2018
Net sales	$	1,086,708	$	1,046,932	$	1,864,243	$	1,749,535
Net earnings¹	176,481		131,022		233,404		152,102
Basic net earnings per share of common stock	1.65		1.23		2.19		1.42
Diluted net earnings per share of common stock¹	$	1.63	$	1.20	$	2.16	$	1.39

Northeastern U.S. Distribution Company

Effective November 30, 2018, during the first quarter of fiscal 2019, the company completed the acquisition of substantially all of the assets of, and assumed certain liabilities of, a Northeastern U.S. distribution company. The purchase price of this acquisition was allocated to the identifiable assets acquired and liabilities assumed based on estimates of their fair value, with the excess purchase price recorded as goodwill. This acquisition was immaterial based on the company's Consolidated Financial Condition and Results of Operations. Additional purchase accounting disclosures have been omitted given the immateriality of this acquisition in relation to the company's Consolidated Financial Condition and Results of Operations.

L.T. Rich Products, Inc.

Effective March 19, 2018, during the second quarter of fiscal 2018, the company completed the acquisition of substantially all of the assets of, and assumed certain liabilities of, L.T. Rich Products, Inc., a manufacturer of professional zero-turn spreader/sprayers, aerators, and snow and ice management equipment. The addition of these products has broadened and strengthened the company’s Professional segment solutions for landscape contractors and grounds professionals. The purchase price of this acquisition was allocated to the identifiable assets acquired and liabilities assumed based on estimates of their fair value, with the excess purchase price recorded as goodwill. This acquisition was immaterial based on the company's Consolidated Financial Condition and Results of Operations. Additional purchase accounting disclosures have been omitted given the immateriality of this acquisition in relation to the company's Consolidated Financial Condition and Results of Operations.

Inventories - Schedule of Inventory (Details) - USD ($) $ in Thousands	May 03, 2019	Oct. 31, 2018	May 04, 2018
Inventory Disclosure [Abstract]
Raw materials and work in process	$ 186,065	$ 115,280	$ 112,435
Finished goods and service parts	497,467	315,179	349,167
Total FIFO value	683,532	430,459	461,602
Less: adjustment to LIFO value	72,201	72,200	66,801
Total inventories, net	$ 611,331	$ 358,259	$ 394,801

Segment Data - Narrative (Details)	6 Months Ended
Segment Data - Narrative (Details)	May 03, 2019 segment
Segment Reporting [Abstract]
Number of operating segments	10
Number of reportable segments	2

Segment Data (Tables)

6 Months Ended

May 03, 2019

Segment Reporting [Abstract]

Summarized Financial Information Concerning Reportable Segments

The following tables present the summarized financial information concerning the company’s reportable segments:



(Dollars in thousands)
Three Months Ended May 3, 2019	Professional		Residential		Other			Total
Net sales	$	723,506	$	232,147	$	6,383		$	962,036
Intersegment gross sales	23,716		80		(23,796		)	—
Earnings (loss) before income taxes	$	150,119	$	22,030	$	(34,969	)	$	137,180



(Dollars in thousands)
Six Months Ended May 3, 2019	Professional		Residential		Other			Total
Net sales	$	1,178,512	$	377,305	$	9,175		$	1,564,992
Intersegment gross sales	37,325		179		(37,504		)	—
Earnings (loss) before income taxes	238,097		35,102		(65,999		)	207,200
Total assets	$	1,848,351	$	271,224	$	346,425		$	2,466,000



(Dollars in thousands)
Three Months Ended May 4, 2018	Professional		Residential		Other			Total
Net sales	$	660,373	$	212,169	$	2,738		$	875,280
Intersegment gross sales	10,664		107		(10,771		)	—
Earnings (loss) before income taxes	$	164,979	$	26,304	$	(22,117	)	$	169,166



(Dollars in thousands)
Six Months Ended May 4, 2018	Professional		Residential		Other			Total
Net sales	$	1,064,042	$	354,676	$	4,808		$	1,423,526
Intersegment gross sales	17,122		163		(17,285		)	—
Earnings (loss) before income taxes	240,891		42,017		(47,357		)	235,551
Total assets	$	963,564	$	288,248	$	383,935		$	1,635,747

Summary of Components of Loss Before Income Taxes Included in Other Segment

The following table presents the details of operating loss before income taxes for the company's Other activities:



	Three Months Ended						Six Months Ended
(Dollars in thousands)	May 3, 2019			May 4, 2018			May 3, 2019			May 4, 2018
Corporate expenses	$	(34,357	)	$	(21,096	)	$	(62,671	)	$	(45,497	)
Interest expense	(6,694		)	(4,720		)	(11,436		)	(9,538		)
Other income	6,082			3,699			8,108			7,678
Total operating loss	$	(34,969	)	$	(22,117	)	$	(65,999	)	$	(47,357	)

Indebtedness - Narrative (Details)	1 Months Ended			3 Months Ended	6 Months Ended	12 Months Ended
Indebtedness - Narrative (Details)	Mar. 31, 2019 USD ($)	Jun. 30, 2018 USD ($)	Jun. 30, 1997 USD ($) instrument	May 03, 2019 USD ($)	May 03, 2019 USD ($)	Oct. 31, 2018 USD ($)	May 31, 2018 USD ($)	May 04, 2018 USD ($)	Oct. 31, 2014 USD ($)	Apr. 26, 2007 USD ($)
Debt Instrument [Line Items]
Fiscal 2019 (remainder)				$ 0.0	$ 0.0
Fiscal 2020				0.0	0.0
Fiscal 2021				0.0	0.0
Fiscal 2022				215,000,000.0	215,000,000.0
Fiscal 2023				120,000,000.0	120,000,000.0
Fiscal 2024				255,000,000.0	255,000,000.0
After fiscal 2024				225,000,000.0	225,000,000.0
Long-term debt				811,079,000	811,079,000	$ 312,549,000		$ 312,302,000
Line of Credit
Debt Instrument [Line Items]
Long-term debt, gross				100,000,000	100,000,000	100,000,000		100,000,000
Debt instrument, face amount									$ 130,000,000
Debt Securities Issued In June1997
Debt Instrument [Line Items]
Debt instrument, face amount			$ 175,000,000
Coupon7.125 Percent Debt Notes
Debt Instrument [Line Items]
Debt instrument, face amount			$ 75,000,000
Debt instrument, term			10 years
Debt instrument, interest rate, stated percentage			7.125%
Senior Note
Debt Instrument [Line Items]
Long-term debt, gross				$ 0	$ 0	$ 0		91,000,000
Debt instrument, face amount										$ 125,000,000
Debt instrument, interest rate, stated percentage				6.625%	6.625%					6.625%
Debt instrument issuance price as percentage of par value										98.513%
Debt instrument, unamortized discount										$ 1,900,000
Unamortized debt issuance expense										$ 1,500,000
Debt instrument, interest rate, effective percentage				6.741%	6.741%
Debt instrument, basis spread on variable rate						0.30%
Debt instrument, repurchase offer due to change of control and downgrade of notes below an investment grade rating, percentage of principal					101.00%
6.625% senior notes
Debt Instrument [Line Items]
Long-term debt, gross				$ 123,885,000	$ 123,885,000	$ 123,854,000		123,823,000
Long-term debt			$ 100,000,000
Debt instrument, term			30 years
Debt instrument, interest rate, stated percentage			7.80%
Payment made to terminate interest rate derivatives			$ 23,700,000
Number of interest rate derivatives held \| instrument			3
Derivative, notional amount			$ 125,000,000
Deferred income earned on swap balance at termination			$ 18,700,000
Line of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity under credit facility		$ 600,000,000					$ 150,000,000
Line of credit facility, maximum borrowing capacity, accordion feature		300,000,000
Payments of debt issuance costs		$ 1,900,000
Long-term debt, gross				90,000,000	90,000,000	91,000,000		$ 0
Debt instrument, unused borrowing capacity, amount				508,100,000	508,100,000	507,500,000
Debt instrument, periodic payment, interest				1,800,000	1,000,000.0
Debt instrument, term		5 years
Senior Note
Debt Instrument [Line Items]
Payments of debt issuance costs	$ 600,000
Debt instrument, periodic payment, interest				1,600,000	1,600,000
Senior Note \| $200 million term loan
Debt Instrument [Line Items]
Long-term debt, gross				200,000,000	200,000,000
Debt instrument, face amount	$ 200,000,000
Debt instrument, term	3 years
Senior Note \| $300 million term loan
Debt Instrument [Line Items]
Long-term debt, gross				300,000,000	300,000,000
Debt instrument, face amount	$ 300,000,000
Debt instrument, term	5 years
Standby Letters of Credit \| Line of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity under credit facility		$ 10,000,000
Long-term debt				$ 1,900,000	$ 1,900,000	$ 1,500,000
Bridge Loan \| Line of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity under credit facility		$ 30,000,000

Basis of Presentation (Policies)

6 Months Ended

May 03, 2019

Accounting Policies [Abstract]

Basis of Presentation

The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with the instructions to Form 10-Q and do not include all the information and notes required by United States ("U.S.") generally accepted accounting principles ("GAAP") for complete financial statements. Unless the context indicates otherwise, the terms "company," "Toro," "we," "our," or "us" refer to The Toro Company and its consolidated subsidiaries. All intercompany accounts and transactions have been eliminated from the unaudited Condensed Consolidated Financial Statements.

In the opinion of management, the unaudited Condensed Consolidated Financial Statements include all adjustments, consisting primarily of recurring accruals, considered necessary for the fair presentation of the company's Consolidated Financial Position, Results of Operations, and Cash Flows for the periods presented. Since the company’s business is seasonal, operating results for the six months ended May 3, 2019 cannot be annualized to determine the expected results for the fiscal year ending October 31, 2019.

The company’s fiscal year ends on October 31, and quarterly results are reported based on three-month periods that generally end on the Friday closest to the quarter end. For comparative purposes, however, the company’s second and third quarters always include exactly 13 weeks of results so that the quarter end date for these two quarters is not necessarily the Friday closest to the calendar month end.

The company completed its acquisition of The Charles Machine Works, Inc. ("CMW") on April 1, 2019. CMW's financial position, results of operations, and cash flows are reported based on a calendar month end; and accordingly, April 30, 2019 was the period end closest to the company's fiscal second quarter ended May 3, 2019. This reporting period difference did not have a significant impact on the Consolidated Financial Position, Results of Operations, and Cash Flows of the company as of and for the three and six month periods ended May 3, 2019. Refer to Note 2, Business Combinations, for additional information regarding the company's acquisition of CMW.

For further information regarding the company's basis of presentation, refer to the Consolidated Financial Statements and Notes to Consolidated Financial Statements included in the company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2018. The policies described in that report are used for preparing quarterly reports.

Accounting Policies

In preparing the Condensed Consolidated Financial Statements in conformity with U.S. GAAP, management must make decisions that impact the reported amounts of assets, liabilities, revenues, expenses, and the related disclosures, including disclosures of contingent assets and liabilities. Such decisions include the selection of the appropriate accounting principles to be applied and the assumptions on which to base accounting estimates. Estimates are used in determining, among other items, sales promotion and incentive accruals, incentive compensation accruals, income tax accruals, inventory valuation, warranty reserves, allowance for doubtful accounts, pension and post-retirement accruals, self-insurance accruals, useful lives for tangible and definite-lived intangible assets, future cash flows associated with impairment testing for goodwill, indefinite-lived intangible assets and other long-lived assets, and valuations of the assets acquired and liabilities assumed in a business combination, when applicable. These estimates and assumptions are based on management’s best estimates and judgments at the time they are made and are generally derived from management's understanding and analysis of the relevant circumstances, historical experience, and actuarial and other independent external third-party specialist valuations, when applicable. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors that management believes to be reasonable under the circumstances, including the current economic environment. Management adjusts such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with certainty, actual amounts could differ significantly from those estimated at the time the Condensed Consolidated Financial Statements are prepared.

New Accounting Pronouncements Adopted

In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Updates ("ASU") No. 2014-09, Revenue from Contracts with Customers that updates the principles for recognizing revenue. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. The guidance also requires enhanced

disclosures regarding the nature, amount, timing, and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606), which deferred the effective date of this standard by one year. The company adopted ASU 2014-09 effective November 1, 2018, during the first quarter of fiscal 2019, using the modified retrospective method of adoption, which was applied to all contracts for which the company's performance obligations were not completed as of October 31, 2018. In adopting ASU 2014-09, the company elected the following allowable exemptions or practical expedients:


•	Portfolio approach practical expedient relative to the estimation of variable consideration.


•	Shipping and handling practical expedient to account for shipping and handling activities that occur after control of the related good transfers as fulfillment activities.


•	Costs of obtaining a contract practical expedient to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset is one year or less.


•	Immaterial goods or services practical expedient to not assess whether promised goods or services are performance obligations if they are immaterial in the context of the contract with the customer.


•	Sales taxes practical expedient to exclude sales taxes and other similar taxes from the transaction price.


•	Exemption to not disclose the unfulfilled performance obligation balance for contracts with an original length of one year or less.

Upon adoption of ASU 2014-09, the company recognized an immaterial transition adjustment within the company's fiscal 2019 beginning retained earnings balance on the Condensed Consolidated Balance Sheets for the cumulative effect of the change in accounting standard. Results for reporting periods beginning after November 1, 2018 are presented under the guidelines of Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers, while prior reporting period amounts have not been adjusted and continue to be reported under ASC 605, Revenue Recognition. The adoption of ASU 2014-09 did not materially impact the amount of revenue recognized or any other financial statement line item as of and for the three and six months ended May 3, 2019. Additionally, the company identified and implemented the appropriate changes to its business processes, information systems, and internal controls to support the preparation of financial information, which did not materially affect the company's internal controls over financial reporting. Refer to Note 4, Revenue, for the additional disclosures required under ASC 606.

In May 2017, the FASB issued ASU No. 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting, which provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting under Topic 718. The amended guidance was adopted in the first quarter of fiscal 2019 and did not have a material impact on the company's Condensed Consolidated Financial Statements.

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	May 03, 2019	Oct. 31, 2018	May 04, 2018
Preferred stock
Preferred stock, par value (in dollars per share)	$ 1.00	$ 1.00	$ 1.00
Preferred stock, issued (in shares)	0	0	0
Preferred stock, outstanding (in shares)	0	0	0
Common stock
Common stock, par value (in dollars per share)	$ 1.00	$ 1.00	$ 1.00
Common stock, authorized (in shares)	175,000,000	175,000,000	175,000,000
Common stock, issued (in shares)	106,433,714	105,600,652	105,456,188
Common stock, outstanding (in shares)	106,433,714	105,600,652	105,456,188
Voting preferred stock
Preferred stock
Preferred stock, authorized (in shares)	1,000,000	1,000,000	1,000,000
Non-voting preferred stock
Preferred stock
Preferred stock, authorized (in shares)	850,000	850,000	850,000

Fair Value Measurements (Tables)

6 Months Ended

May 03, 2019

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis



(Dollars in thousands)			Fair Value Measurements Using Inputs Considered as:
May 3, 2019	Fair Value		Level 1		Level 2		Level 3
Assets:
Forward currency contracts	$	12,861	$	—	$	12,861	$	—
Total assets	$	12,861	$	—	$	12,861	$	—

Liabilities:
Forward currency contracts	$	3	$	—	$	3	$	—
Total liabilities	$	3	$	—	$	3	$	—



(Dollars in thousands)			Fair Value Measurements Using Inputs Considered as:
May 4, 2018	Fair Value		Level 1		Level 2		Level 3
Assets:
Forward currency contracts	$	1,213	$	—	$	1,213	$	—
Total assets	$	1,213	$	—	$	1,213	$	—

Liabilities:
Forward currency contracts	$	1,505	$	—	$	1,505	$	—
Total liabilities	$	1,505	$	—	$	1,505	$	—



(Dollars in thousands)			Fair Value Measurements Using Inputs Considered as:
October 31, 2018	Fair Value		Level 1		Level 2		Level 3
Assets:
Forward currency contracts	$	10,901	$	—	$	10,901	$	—
Total assets	$	10,901	$	—	$	10,901	$	—

Liabilities:
Forward currency contracts	$	13	$	—	$	13	$	—
Total liabilities	$	13	$	—	$	13	$	—

Indebtedness (Tables)

6 Months Ended

May 03, 2019

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments

The following is a summary of the company's indebtedness:



(Dollars in thousands)	May 3, 2019			May 4, 2018			October 31, 2018
Revolving credit facility	$	90,000		$	—		$	91,000
$200 million term loan	200,000			—			—
$300 million term loan	300,000			—			—
7.800% debentures	100,000			100,000			100,000
6.625% senior notes	123,885			123,823			123,854
$130 million term loan	—			91,000			—
Less: unamortized discounts, debt issuance costs and deferred charges	(2,806		)	(2,521		)	(2,305		)
Total indebtedness, net	811,079			312,302			312,549
Less: current portion of long-term debt	(90,000		)	(13,000		)	—
Long-term debt, less current portion	$	721,079		$	299,302		$	312,549

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Business Combination - Allocation of Preliminary Purchase Price (Details) - USD ($) $ in Thousands	Apr. 01, 2019	May 03, 2019	Oct. 31, 2018	May 04, 2018
Business Acquisition [Line Items]
Goodwill		$ 372,343	$ 225,290	$ 225,736
The Charles Machine Works, Inc.
Business Acquisition [Line Items]
Cash and cash equivalents	$ 16,036
Receivables	65,618
Inventories	243,721
Prepaid expenses and other current assets	8,209
Property, plant and equipment	142,700
Goodwill	145,538
Other intangible assets	232,980
Other long-term assets	12,956
Accounts payable	(36,644)
Accrued liabilities	(44,260)
Deferred income tax liabilities	(83,254)
Other long-term liabilities	(7,985)
Total fair value of net assets acquired	695,615
Cash and cash equivalents	(16,036)
Total purchase price	$ 679,579

Stock-Based Compensation - Compensation Costs Related to Stock-Based Awards Granted (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	May 03, 2019	May 04, 2018	May 03, 2019	May 04, 2018
Stock-Based Compensation
Total compensation cost for stock-based awards	$ 3,101	$ 2,441	$ 7,025	$ 5,565
Stock option awards
Stock-Based Compensation
Total compensation cost for stock-based awards	1,328	1,240	3,163	2,415
Restricted stock units
Stock-Based Compensation
Total compensation cost for stock-based awards	759	650	1,452	1,655
Performance share awards
Stock-Based Compensation
Total compensation cost for stock-based awards	1,014	551	1,818	965
Unrestricted common stock awards
Stock-Based Compensation
Total compensation cost for stock-based awards	$ 0	$ 0	$ 592	$ 530
Unrestricted common stock awards \| Board of Directors
Stock-Based Compensation
Fully vested unrestricted common stock awards granted (in shares)			10,090	8,388

Stock-Based Compensation (Tables)

6 Months Ended

May 03, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Compensation Cost Related to Stock-Based Awards

Compensation costs related to stock-based awards were as follows:



	Three Months Ended				Six Months Ended
(Dollars in thousands)	May 3, 2019		May 4, 2018		May 3, 2019		May 4, 2018
Stock option awards	$	1,328	$	1,240	$	3,163	$	2,415
Restricted stock units	759		650		1,452		1,655
Performance share awards	1,014		551		1,818		965
Unrestricted common stock awards	—		—		592		530
Total compensation cost for stock-based awards	$	3,101	$	2,441	$	7,025	$	5,565

Schedule of Assumptions for Options Granted

The table below illustrates the weighted-average valuation assumptions for options granted in the following fiscal periods:



	Fiscal 2019	Fiscal 2018
Expected life of option in years	6.31	6.04
Expected stock price volatility	19.84%	20.58%
Risk-free interest rate	2.77%	2.21%
Expected dividend yield	1.18%	0.97%
Per share weighted-average fair value at date of grant	$12.82	$14.25

Revenue - Contract Liabilities (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	May 03, 2019	May 03, 2019	Oct. 31, 2018
Business Acquisition [Line Items]
Contract with customer, liability	$ 14.8	$ 14.8	$ 14.0
Contract with customer liability revenue recognized	1.5	3.2
The Charles Machine Works, Inc.
Business Acquisition [Line Items]
Contract with customer, liability	8.0	8.0
Contract with customer liability revenue recognized	$ 1.7	$ 1.7

Property and Depreciation - Narrative (Details) - USD ($) $ in Thousands	6 Months Ended
	May 03, 2019	Apr. 01, 2019
Software and Software Development Costs \| Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	2 years
Software and Software Development Costs \| Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	5 years
Equipment \| Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	2 years
Equipment \| Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	15 years
Tooling \| Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	3 years
Tooling \| Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	5 years
Buildings and leasehold improvements \| Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	10 years
Buildings and leasehold improvements \| Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	40 years
The Charles Machine Works, Inc.
Property, Plant and Equipment [Line Items]
Property, plant and equipment		$ 142,700

Basis of Presentation

6 Months Ended

May 03, 2019

Accounting Policies [Abstract]

Basis of Presentation

Accounting Policies

New Accounting Pronouncements Adopted


•	Portfolio approach practical expedient relative to the estimation of variable consideration.


•	Shipping and handling practical expedient to account for shipping and handling activities that occur after control of the related good transfers as fulfillment activities.


•	Costs of obtaining a contract practical expedient to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset is one year or less.


•	Immaterial goods or services practical expedient to not assess whether promised goods or services are performance obligations if they are immaterial in the context of the contract with the customer.


•	Sales taxes practical expedient to exclude sales taxes and other similar taxes from the transaction price.


•	Exemption to not disclose the unfulfilled performance obligation balance for contracts with an original length of one year or less.

Stockholders' Equity (Tables)

6 Months Ended

May 03, 2019

Stockholders' Equity Note [Abstract]

Schedule of Components of Accumulated Other Comprehensive Loss (AOCL), Net of Tax

Components of accumulated other comprehensive loss ("AOCL"), net of tax, were as follows:



(Dollars in thousands)	May 3, 2019			May 4, 2018			October 31, 2018
Foreign currency translation adjustments	$	30,047		$	19,094		$	29,711
Pension and post-retirement benefits	561			1,681			561
Cash flow derivative instruments	(5,492		)	(176		)	(6,335		)
Total accumulated other comprehensive loss	$	25,116		$	20,599		$	23,937

Schedule of Components and Activity of AOCL

The components and activity of AOCL for the three and six month periods ended May 3, 2019 and May 4, 2018 were as follows:



(Dollars in thousands)	Foreign Currency Translation Adjustments		Pension and Post-Retirement Benefits		Cash Flow Hedging Derivative Instruments			Total
Balance as of Balance as of February 1, 2019	$	26,280	$	561	$	(2,326	)	$	24,515
Other comprehensive (income) loss before reclassifications	3,767		—		(1,812		)	1,955
Amounts reclassified from AOCL	—		—		(1,354		)	(1,354		)
Net current period other comprehensive (income) loss	3,767		—		(3,166		)	601
Balance as of May 3, 2019	$	30,047	$	561	$	(5,492	)	$	25,116



(Dollars in thousands)	Foreign Currency Translation Adjustments		Pension and Post-Retirement Benefits		Cash Flow Hedging Derivative Instruments			Total
Balance as of October 31, 2018	$	29,711	$	561	$	(6,335	)	$	23,937
Other comprehensive loss before reclassifications	336		—		3,678			4,014
Amounts reclassified from AOCL	—		—		(2,835		)	(2,835		)
Net current period other comprehensive loss	336		—		843			1,179
Balance as of May 3, 2019	$	30,047	$	561	$	(5,492	)	$	25,116



(Dollars in thousands)	Foreign Currency Translation Adjustments		Pension and Post-Retirement Benefits			Cash Flow Hedging Derivative Instruments			Total
Balance as of Balance as of February 2, 2018	$	10,162	$	2,281		$	3,584		$	16,027
Other comprehensive (income) loss before reclassifications	8,932		(184		)	(7,432		)	1,316
Amounts reclassified from AOCL	—		—			3,397			3,397
Net current period other comprehensive (income) loss	8,932		(184		)	(4,035		)	4,713
Reclassification due to the adoption of ASU 2018-02	—		(416		)	275			(141		)
Balance as of May 4, 2018	$	19,094	$	1,681		$	(176	)	$	20,599



(Dollars in thousands)	Foreign Currency Translation Adjustments			Pension and Post-Retirement Benefits			Cash Flow Hedging Derivative Instruments			Total
Balance as of October 31, 2017	$	21,303		$	2,012		$	805		$	24,120
Other comprehensive (income) loss before reclassifications	(2,209		)	85			(3,820		)	(5,944		)
Amounts reclassified from AOCL	—			—			2,564			2,564
Net current period other comprehensive (income) loss	(2,209		)	85			(1,256		)	(3,380		)
Reclassification due to the adoption of ASU 2018-02	—			(416		)	275			(141		)
Balance as of May 4, 2018	$	19,094		$	1,681		$	(176	)	$	20,599

Stockholders' Equity - Components and Activity of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	May 03, 2019	May 04, 2018	May 03, 2019	May 04, 2018	Nov. 01, 2018	Sep. 01, 2018	Feb. 03, 2018
Components and activity of accumulated other comprehensive loss
Balance as of the beginning of the fiscal period	$ (694,397)	$ (580,781)	$ (668,916)	$ (617,092)
Other comprehensive (income) loss before reclassifications	1,955	1,316	4,014	(5,944)
Amounts reclassified from AOCL	(1,354)	3,397	(2,835)	2,564
Net current period other comprehensive (income) loss	601	4,713	1,179	(3,380)
Reclassification due to the adoption of ASU 2018-02					$ (864)
Balance as of the end of the fiscal period	(805,277)	(623,327)	(805,277)	(623,327)
Accumulated Other Comprehensive Loss
Components and activity of accumulated other comprehensive loss
Balance as of the beginning of the fiscal period	24,515	16,027	23,937	24,120
Net current period other comprehensive (income) loss	601	4,713	1,179	(3,380)
Reclassification due to the adoption of ASU 2018-02		(141)		(141)		$ (141)	$ (141)
Balance as of the end of the fiscal period	25,116	20,599	25,116	20,599
Foreign Currency Translation Adjustments
Components and activity of accumulated other comprehensive loss
Balance as of the beginning of the fiscal period	26,280	10,162	29,711	21,303
Other comprehensive (income) loss before reclassifications	3,767	8,932	336	(2,209)
Amounts reclassified from AOCL	0	0	0	0
Net current period other comprehensive (income) loss	3,767	8,932	336	(2,209)
Reclassification due to the adoption of ASU 2018-02		0		0
Balance as of the end of the fiscal period	30,047	19,094	30,047	19,094
Pension and Post-Retirement Benefits
Components and activity of accumulated other comprehensive loss
Balance as of the beginning of the fiscal period	561	2,281	561	2,012
Other comprehensive (income) loss before reclassifications	0	(184)	0	85
Amounts reclassified from AOCL	0	0	0	0
Net current period other comprehensive (income) loss	0	(184)	0	85
Reclassification due to the adoption of ASU 2018-02		(416)		(416)
Balance as of the end of the fiscal period	561	1,681	561	1,681
Cash Flow Hedging Derivative Instruments
Components and activity of accumulated other comprehensive loss
Balance as of the beginning of the fiscal period	(2,326)	3,584	(6,335)	805
Other comprehensive (income) loss before reclassifications	(1,812)	(7,432)	3,678	(3,820)
Amounts reclassified from AOCL	(1,354)	3,397	(2,835)	2,564
Net current period other comprehensive (income) loss	(3,166)	(4,035)	843	(1,256)
Reclassification due to the adoption of ASU 2018-02		275		275
Balance as of the end of the fiscal period	$ (5,492)	$ (176)	$ (5,492)	$ (176)

Investment in Joint Venture - Narrative (Details) - USD ($)	6 Months Ended
	May 03, 2019	May 04, 2018	Apr. 30, 2019
Red Iron Acceptance, LLC
Schedule of Equity Method Investments
Period of unlimited automatic extensions after the initial term of joint venture	2 years
Period of notice to be given by parties under joint venture for not extending initial term of joint venture	1 year
Portion owned by Toro (as a percent)	45.00%
Portion owned by TCFIF (as a percent)	55.00%
Investment in joint venture	$ 30,100,000
Maximum aggregate amount of products repossessed by Red Iron and the TCFIF Canadian affiliate, entity has agreed to repurchase in a calendar year	7,500,000
Net amount of new receivables financed for dealers and distributors	1,031,300,000	$ 990,400,000
Total assets			$ 600,800,000
Total liabilities			$ 533,900,000
Red Iron Acceptance, LLC \| TCFIF secured revolving credit facility
Schedule of Equity Method Investments
Maximum borrowing capacity under credit facility	$ 550,000,000

Revenue (Tables)

6 Months Ended

May 03, 2019

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following tables disaggregate our reportable segment net sales by major product type and geographic market (in thousands):



Three Months Ended May 3, 2019	Professional		Residential		Other		Total
Revenue by product type:
Equipment	$	618,099	$	225,456	$	2,661	$	846,216
Irrigation	105,407		6,691		3,722		115,820
Total net sales	$	723,506	$	232,147	$	6,383	$	962,036

Revenue by geographic market:
United States	$	546,413	$	190,163	$	6,383	$	742,959
Foreign Countries	177,093		41,984		—		219,077
Total net sales	$	723,506	$	232,147	$	6,383	$	962,036



Six Months Ended May 3, 2019	Professional		Residential		Other		Total
Revenue by product type:
Equipment	$	1,005,649	$	358,966	$	4,630	$	1,369,245
Irrigation	172,863		18,339		4,545		195,747
Total net sales	$	1,178,512	$	377,305	$	9,175	$	1,564,992

Revenue by geographic market:
United States	$	894,517	$	300,678	$	9,175	$	1,204,370
Foreign Countries	283,995		76,627		—		360,622
Total net sales	$	1,178,512	$	377,305	$	9,175	$	1,564,992



Three Months Ended May 4, 2018	Professional		Residential		Other		Total
Revenue by product type:
Equipment	$	554,068	$	203,932	$	1,488	$	759,488
Irrigation	106,305		8,237		1,250		115,792
Total net sales	$	660,373	$	212,169	$	2,738	$	875,280

Revenue by geographic market:
United States	$	495,017	$	170,446	$	2,738	$	668,201
Foreign Countries	165,356		41,723		—		207,079
Total net sales	$	660,373	$	212,169	$	2,738	$	875,280



Six Months Ended May 4, 2018	Professional		Residential		Other		Total
Revenue by product type:
Equipment	$	882,710	$	333,239	$	2,756	$	1,218,705
Irrigation	181,332		21,437		2,052		204,821
Total net sales	$	1,064,042	$	354,676	$	4,808	$	1,423,526

Revenue by geographic market:
United States	$	790,707	$	274,142	$	4,808	$	1,069,657
Foreign Countries	273,335		80,534		—		353,869
Total net sales	$	1,064,042	$	354,676	$	4,808	$	1,423,526

Segment Data

6 Months Ended

May 03, 2019

Segment Reporting [Abstract]

Segment Data

The company's businesses are organized, managed, and internally grouped into segments based on similarities in products and services. Segment selection is based on the manner in which management organizes segments for making operating and investment decisions and assessing performance. The company has determined it has ten operating segments and has aggregated certain of those operating segments into two reportable segments: Professional and Residential. The aggregation of the company's operating segments is based on the operating segments having the following similarities: economic characteristics, types of products and services, types of production processes, type or class of customers, and method of distribution. The company's remaining activities are presented as "Other" due to their insignificance. These Other activities consist of the company's wholly-owned domestic distribution companies, the company's corporate activities, and the elimination of intersegment revenues and expenses.

The following tables present the summarized financial information concerning the company’s reportable segments:



(Dollars in thousands)
Three Months Ended May 3, 2019	Professional		Residential		Other			Total
Net sales	$	723,506	$	232,147	$	6,383		$	962,036
Intersegment gross sales	23,716		80		(23,796		)	—
Earnings (loss) before income taxes	$	150,119	$	22,030	$	(34,969	)	$	137,180



(Dollars in thousands)
Six Months Ended May 3, 2019	Professional		Residential		Other			Total
Net sales	$	1,178,512	$	377,305	$	9,175		$	1,564,992
Intersegment gross sales	37,325		179		(37,504		)	—
Earnings (loss) before income taxes	238,097		35,102		(65,999		)	207,200
Total assets	$	1,848,351	$	271,224	$	346,425		$	2,466,000



(Dollars in thousands)
Three Months Ended May 4, 2018	Professional		Residential		Other			Total
Net sales	$	660,373	$	212,169	$	2,738		$	875,280
Intersegment gross sales	10,664		107		(10,771		)	—
Earnings (loss) before income taxes	$	164,979	$	26,304	$	(22,117	)	$	169,166



(Dollars in thousands)
Six Months Ended May 4, 2018	Professional		Residential		Other			Total
Net sales	$	1,064,042	$	354,676	$	4,808		$	1,423,526
Intersegment gross sales	17,122		163		(17,285		)	—
Earnings (loss) before income taxes	240,891		42,017		(47,357		)	235,551
Total assets	$	963,564	$	288,248	$	383,935		$	1,635,747

The following table presents the details of operating loss before income taxes for the company's Other activities:



	Three Months Ended						Six Months Ended
(Dollars in thousands)	May 3, 2019			May 4, 2018			May 3, 2019			May 4, 2018
Corporate expenses	$	(34,357	)	$	(21,096	)	$	(62,671	)	$	(45,497	)
Interest expense	(6,694		)	(4,720		)	(11,436		)	(9,538		)
Other income	6,082			3,699			8,108			7,678
Total operating loss	$	(34,969	)	$	(22,117	)	$	(65,999	)	$	(47,357	)

Business Combination - Summary of Intangible Assets (Details) - USD ($) $ in Thousands	1 Months Ended	6 Months Ended		12 Months Ended
	May 03, 2019	May 03, 2019	May 04, 2018	Oct. 31, 2018
Business Acquisition [Line Items]
Weighted-Average Useful Life		15 years 1 month 6 days	14 years 2 months 12 days	14 years 3 months 18 days
Gross Carrying Amount	$ 291,482	$ 291,482	$ 149,410	$ 148,865
Accumulated Amortization	(79,336)	(79,336)	(70,423)	(73,797)
Net	212,146	212,146	78,987	75,068
Total other intangible assets, gross	412,513	412,513	180,133	179,446
Total other intangible assets, net	$ 333,177	333,177	$ 109,710	$ 105,649
The Charles Machine Works, Inc.
Business Acquisition [Line Items]
Weighted-Average Useful Life	16 years
Gross Carrying Amount	$ 142,580	142,580
Accumulated Amortization	(1,961)	(1,961)
Net	140,619	140,619
Total other intangible assets, gross	232,980	232,980
Total other intangible assets, net	$ 231,019	231,019
Customer-related \| The Charles Machine Works, Inc.
Business Acquisition [Line Items]
Weighted-Average Useful Life	18 years 1 month 6 days
Gross Carrying Amount	$ 111,400	111,400
Accumulated Amortization	(576)	(576)
Net	110,824	$ 110,824
Developed technology
Business Acquisition [Line Items]
Weighted-Average Useful Life		7 years 7 months 6 days	7 years 7 months 6 days	7 years 7 months 6 days
Gross Carrying Amount	50,338	$ 50,338	$ 31,180	$ 31,029
Accumulated Amortization	(29,292)	(29,292)	(27,872)	(28,471)
Net	$ 21,046	21,046	$ 3,308	$ 2,558
Developed technology \| The Charles Machine Works, Inc.
Business Acquisition [Line Items]
Weighted-Average Useful Life	7 years 8 months 12 days
Gross Carrying Amount	$ 19,300	19,300
Accumulated Amortization	(266)	(266)
Net	19,034	$ 19,034
Trade names
Business Acquisition [Line Items]
Weighted-Average Useful Life		15 years 6 months	5 years	5 years
Gross Carrying Amount	7,599	$ 7,599	$ 2,351	$ 2,307
Accumulated Amortization	(1,903)	(1,903)	(1,724)	(1,805)
Net	$ 5,696	5,696	$ 627	$ 502
Trade names \| The Charles Machine Works, Inc.
Business Acquisition [Line Items]
Weighted-Average Useful Life	20 years
Gross Carrying Amount	$ 5,300	5,300
Accumulated Amortization	(22)	(22)
Net	$ 5,278	5,278
Backlog \| The Charles Machine Works, Inc.
Business Acquisition [Line Items]
Weighted-Average Useful Life	6 months
Gross Carrying Amount	$ 6,580	6,580
Accumulated Amortization	(1,097)	(1,097)
Net	5,483	5,483
Trade names \| The Charles Machine Works, Inc.
Business Acquisition [Line Items]
Non-amortizable - trade names	$ 90,400	$ 90,400

Derivative Instruments and Hedging Activities - Impact and Location of Derivative Instruments for Derivatives Designated as Cash Flow Hedging and the Related Components Excluded From Effectiveness Testing (Details) - Cash flow hedging - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	May 03, 2019	May 04, 2018	May 03, 2019	May 04, 2018
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Reclassified from AOCL into Earnings	$ 1,354	$ (1,731)	$ 2,835	$ (2,564)
Net Sales
Derivative Instruments, Gain (Loss) [Line Items]
Total gain (loss) on derivatives not designated as cash flow hedging instruments	962,036	875,280	1,564,992	1,423,526
Cost of Sales
Derivative Instruments, Gain (Loss) [Line Items]
Total gain (loss) on derivatives not designated as cash flow hedging instruments	(640,738)	(551,224)	(1,028,077)	(895,231)
Forward currency contracts \| Net Sales
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Reclassified from AOCL into Earnings	1,240	(2,026)	2,478	(3,037)
Gain (loss) on components excluded from effectiveness testing recognized in earnings based on changes in fair value	1,094	(80)	2,317	(101)
Forward currency contracts \| Cost of Sales
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Reclassified from AOCL into Earnings	114	295	357	473
Gain (loss) on components excluded from effectiveness testing recognized in earnings based on changes in fair value	$ (46)	$ (93)	$ 16	$ (118)

Derivative Instruments and Hedging Activities - Fair Value and Location of Derivative Instruments (Details) - USD ($) $ in Thousands	May 03, 2019	Oct. 31, 2018	May 04, 2018
Fair value of derivatives
Derivative assets	$ 12,861	$ 10,901	$ 1,213
Derivative liabilities	3	13	1,505
Forward currency contracts
Fair value of derivatives
Derivative assets	12,861	10,901	1,213
Derivative liabilities	3	13	1,505
Forward currency contracts \| Derivatives designated as cash flow hedging instruments: \| Prepaid expenses and other current assets
Fair value of derivatives
Derivative assets	8,980	8,596	1,168
Forward currency contracts \| Derivatives designated as cash flow hedging instruments: \| Accrued liabilities
Fair value of derivatives
Derivative liabilities	0	0	179
Forward currency contracts \| Derivatives not designated as cash flow hedging instruments: \| Prepaid expenses and other current assets
Fair value of derivatives
Derivative assets	3,881	2,305	45
Forward currency contracts \| Derivatives not designated as cash flow hedging instruments: \| Accrued liabilities
Fair value of derivatives
Derivative liabilities	$ 3	$ 13	$ 1,326