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Inventories (Tables)

3 Months Ended

Jan. 31, 2020

Inventories were as follows:



(Dollars in thousands)	January 31, 2020		February 1, 2019		October 31, 2019
Raw materials and work in process	$	188,235	$	124,458	$	179,967
Finished goods and service parts	632,796		364,393		553,767
Total FIFO value	821,031		488,851		733,734
Less: adjustment to LIFO value	82,071		72,201		82,071
Total inventories, net	$	738,960	$	416,650	$	651,663

Condensed Consolidated Statements of Earnings (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Jan. 31, 2020	Feb. 01, 2019
Income Statement [Abstract]
Net sales	$ 767,483	$ 602,956
Cost of sales	479,395	387,339
Gross profit	288,088	215,617
Selling, general and administrative expense	196,959	145,563
Operating earnings	91,129	70,054
Interest expense	(8,156)	(4,742)
Other income, net	3,166	4,708
Earnings before income taxes	86,139	70,020
Provision for income taxes	16,048	10,480
Net earnings	$ 70,091	$ 59,540
Basic net earnings per share of common stock (usd per share)	$ 0.65	$ 0.56
Diluted net earnings per share of common stock (usd per share)	$ 0.65	$ 0.55
Weighted-average number of shares of common stock outstanding — Basic (in shares)	107,423	106,258
Weighted-average number of shares of common stock outstanding — Diluted (in shares)	108,655	107,781

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jan. 31, 2020	Oct. 31, 2019	Feb. 01, 2019
ASSETS
Cash and cash equivalents	$ 108,914	$ 151,828	$ 249,965
Receivables, net	321,192	268,768	225,528
Inventories, net	738,960	651,663	416,650
Prepaid expenses and other current assets	51,442	50,632	41,789
Total current assets	1,220,508	1,122,891	933,932
Property, plant, and equipment, net	431,253	437,317	279,270
Goodwill	362,136	362,253	227,091
Other intangible assets, net	347,643	352,374	104,017
Right-of-use assets	73,137
Investment in finance affiliate	25,455	24,147	25,430
Deferred income taxes	6,161	6,251	39,589
Other assets	25,316	25,314	13,485
Total assets	2,491,609	2,330,547	1,622,814
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of long-term debt	113,903	79,914	0
Accounts payable	348,003	319,230	281,526
Accrued liabilities	348,027	357,826	283,452
Short-term lease liabilities	14,374
Total current liabilities	824,307	756,970	564,978
Long-term debt, less current portion	601,016	620,899	312,551
Long-term lease liabilities	62,015
Deferred income taxes	50,676	50,579	1,410
Other long-term liabilities	41,545	42,521	49,478
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 106,977,274 shares as of January 31, 2020, 105,746,538 shares as of February 1, 2019, and 106,742,082 shares as of October 31, 2019	106,977	106,742	105,747
Retained earnings	837,194	784,885	613,165
Accumulated other comprehensive loss	(32,121)	(32,049)	(24,515)
Total stockholders’ equity	912,050	859,578	694,397
Total liabilities and stockholders’ equity	$ 2,491,609	$ 2,330,547	$ 1,622,814

Segment Data - Components of Loss before Income Taxes Included in Other (Details) - USD ($) $ in Thousands	3 Months Ended
	Jan. 31, 2020	Feb. 01, 2019
Components of the loss before income taxes included in "Other"
Interest expense	$ (8,156)	$ (4,742)
Earnings from wholly-owned domestic distribution companies and other income, net	3,166	4,708
Earnings before income taxes	86,139	70,020
Other
Components of the loss before income taxes included in "Other"
Corporate expenses	(32,442)	(28,314)
Interest expense	(8,156)	(4,742)
Earnings from wholly-owned domestic distribution companies and other income, net	2,697	2,026
Earnings before income taxes	$ (37,901)	$ (31,030)

Leases - Lease Expense Incurred (Details) $ in Thousands	3 Months Ended
Leases - Lease Expense Incurred (Details) $ in Thousands	Jan. 31, 2020 USD ($)
Leases [Abstract]
Operating lease expense	$ 4,834
Short-term lease expense	682
Variable lease expense	37
Total lease expense	$ 5,553

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, 2018	$ 668,916	$ 105,601	$ 587,252	$ (23,937)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cash dividends paid on common stock	(23,923)		(23,923)
Issuance of shares for stock options exercised and restricted stock units vested	6,165	538	5,627
Stock-based compensation expense	3,924		3,924
Contribution of stock to a deferred compensation trust	1,404		1,404
Purchase of common stock	(21,915)	(392)	(21,523)
Other comprehensive loss	(578)			(578)
Net earnings	59,540		59,540
Balance at end of period at Feb. 01, 2019	694,397	105,747	613,165	(24,515)
Balance at beginning of period at Oct. 31, 2019	859,578	106,742	784,885	(32,049)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cash dividends paid on common stock	(26,856)		(26,856)
Issuance of shares for stock options exercised and restricted stock units vested	4,142	253	3,889
Stock-based compensation expense	3,960		3,960
Contribution of stock to a deferred compensation trust	2,568		2,568
Purchase of common stock	(1,361)	(18)	(1,343)
Other comprehensive loss	(72)			(72)
Net earnings	70,091		70,091
Balance at end of period at Jan. 31, 2020	$ 912,050	$ 106,977	$ 837,194	$ (32,121)

Stock-Based Compensation - Stock Option Awards (Details) - Stock option awards - $ / shares	3 Months Ended
	Jan. 31, 2020	Feb. 01, 2019
Assumptions for options granted
Expected life of option in years	6 years 3 months 21 days	6 years 3 months 21 days
Expected stock price volatility (as a percent)	19.38%	19.84%
Risk-free interest rate (as a percent)	1.79%	2.77%
Expected dividend yield (as a percent)	0.98%	1.18%
Weighted-average fair value at date of grant (in dollars per share)	$ 15.37	$ 12.81
Board of Directors
Stock-Based Compensation
Vesting period	3 years
Term of options	10 years
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
Tranche One \| Board of Directors
Stock-Based Compensation
Vesting (as a percent)	33.33%
Tranche Two \| Board of Directors
Stock-Based Compensation
Vesting (as a percent)	33.33%
Tranche Three \| Board of Directors
Stock-Based Compensation
Vesting (as a percent)	33.33%

Derivative Instruments and Hedging Activities - Fair Value and Location of Derivative Instruments (Details) - USD ($) $ in Thousands	Jan. 31, 2020	Oct. 31, 2019	Feb. 01, 2019
Fair value of derivatives
Derivative assets:	$ 12,676	$ 10,898	$ 5,836
Derivative liabilities:	0	9	33
Forward currency contracts
Fair value of derivatives
Derivative assets:	12,676	10,898	5,836
Derivative liabilities:	0	9	33
Forward currency contracts \| Derivatives designated as cash flow hedging instruments: \| Prepaid expenses and other current assets
Fair value of derivatives
Derivative assets:	9,244	8,642	4,333
Forward currency contracts \| Derivatives designated as cash flow hedging instruments: \| Accrued liabilities
Fair value of derivatives
Derivative liabilities:	0	0	30
Forward currency contracts \| Derivatives not designated as cash flow hedging instruments: \| Prepaid expenses and other current assets
Fair value of derivatives
Derivative assets:	3,432	2,256	1,503
Forward currency contracts \| Derivatives not designated as cash flow hedging instruments: \| Accrued liabilities
Fair value of derivatives
Derivative liabilities:	$ 0	$ 9	$ 3

Business Combination - Pro Forma (Details) - The Charles Machine Works, Inc. - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Jan. 31, 2020	Feb. 01, 2019
Business Acquisition [Line Items]
Net sales	$ 767,483	$ 777,537
Net earnings	$ 70,561	$ 56,515
Basic net earnings per share of common stock (in usd per share)	$ 0.66	$ 0.53
Diluted net earnings per share of common stock (in usd per share)	$ 0.65	$ 0.52

Indebtedness

3 Months Ended

Jan. 31, 2020

Debt Disclosure [Abstract]

Indebtedness



6	Indebtedness

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



(Dollars in thousands)	January 31, 2020			February 1, 2019			October 31, 2019
Revolving credit facility	$	14,000		$	91,000		$	—
$200 million term loan	100,000			—			100,000
$300 million term loan	180,000			—			180,000
3.81% series A senior notes	100,000			—			100,000
3.91% series B senior notes	100,000			—			100,000
7.800% debentures	100,000			100,000			100,000
6.625% senior notes	123,931			123,869			123,916
Less: unamortized discounts, debt issuance costs, and deferred charges	(3,012		)	(2,318		)	(3,103		)
Total long-term debt	714,919			312,551			700,813
Less: current portion of long-term debt	113,903			—			79,914
Long-term debt, less current portion	$	601,016		$	312,551		$	620,899

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 2020 and succeeding five fiscal years are as follows: fiscal 2020 (remainder), $0.0 million; fiscal 2021, $0.0 million; fiscal 2022, $9.0 million; fiscal 2023, $132.0 million; fiscal 2024, $153.0 million; fiscal 2025, $0.0 million; and after fiscal 2025, $425.0 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 $600.0 million, from $150.0 million, and expires in June 2023. Included in the company's $600.0 million revolving credit facility is a $10.0 million sublimit for standby letters of credit and a $30.0 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 $300.0 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 January 31, 2020, the company had $14.0 million outstanding under the revolving credit facility, $1.9 million outstanding under the sublimit for standby letters of credit, and $584.1 million of unutilized availability under the revolving credit facility. As of February 1, 2019, 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 October 31, 2019, the company had no borrowings under the revolving credit facility but did have $1.9 million outstanding under the sublimit for standby letters of credit, which resulted in $598.1 million of unutilized availability under the revolving credit facility. 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 that portion of outstanding borrowings under the revolving credit facility to current portion of long-term debt within the Condensed Consolidated Balance Sheets. As of January 31, 2020, the $14.0 million of outstanding borrowings under the company's revolving credit facility was classified as current portion of long-term debt within the Condensed Consolidated Balance Sheets as the company intends to repay such amount within the next twelve months. As of February 1, 2019, the $91.0 million of outstanding borrowings under the company's revolving credit facility was 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 January 31, 2020, February 1, 2019, and October 31, 2019.

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 month periods ended January 31, 2020 and February 1, 2019, the company incurred interest expense of approximately $0.1 million and $0.8 million, respectively, under the revolving credit facility.

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 $200.0 million three year unsecured senior term loan facility maturing on April 1, 2022 and a $300.0 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 $200.0 million three year unsecured senior term loan facility. For the $300.0 million five year unsecured senior term loan facility, the company is required to make quarterly principal amortization payments of 2.5 percent of the original 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 principal payments are required during the first three and one-quarter (3.25) years of the $300.0 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.

As of January 31, 2020, the company had prepaid $100.0 million and $120.0 million against the outstanding principal balances of the $200.0 million three year unsecured senior term loan facility and $300.0 million five year unsecured senior term loan facility, respectively, and has reclassified $99.9 million of the remaining outstanding principal balance under the term loan credit agreement, net of the related proportionate share of debt issuance costs, to current portion of long-term debt within the Condensed Consolidated Balance Sheets as the company intends to prepay such amount utilizing cash flows from operations within the next twelve months. Thus, as of January 31, 2020, there were $100.0 million and $180.0 million of outstanding borrowings under the term loan credit agreement for the $200.0 million three year unsecured senior term loan facility and the $300.0 million five year unsecured senior term loan facility, respectively.

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.

The term loan credit agreement contains customary covenants, including, without limitation, financial covenants generally consistent with those applicable under the company's revolving credit facility, 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 January 31, 2020. Outstanding borrowings under the term loan credit agreement bear interest at a variable rate based on LIBOR or an alternative variable rate, subject to an additional basis point spread as defined in the term credit loan agreement. Interest is payable quarterly in arrears. For the three month period ended January 31, 2020, the company incurred interest expense of approximately $1.9 million on the outstanding borrowings under the term loan credit agreement.

3.81% Series A and 3.91% Series B Senior Notes

On April 30, 2019, the company entered into a private placement note purchase agreement with certain purchasers ("holders") pursuant to which the company agreed to issue and sell an aggregate principal amount of $100.0 million of 3.81% Series A Senior Notes due June 15, 2029 ("Series A Senior Notes") and $100.0 million of 3.91% Series B Senior Notes due June 15, 2031 ("Series B Senior Notes" and together with the Series A Senior Notes, the "Senior Notes"). On June 27, 2019, the company issued $100.0 million of the Series A Senior Notes and $100.0 million of the Series B Senior Notes pursuant to the private placement note purchase agreement. The Senior Notes are senior unsecured obligations of the company. As of January 31, 2020, there were $200.0 million of outstanding borrowings under the private placement note purchase agreement, including $100.0 million of outstanding borrowings under the Series A Senior Notes and $100.0 million of outstanding borrowings under the Series B Senior Notes.

The company has the right to prepay all or a portion of either series of the Senior Notes in an amount equal to not less than 10.0 percent of the principal amount of the Senior Notes then outstanding upon notice to the holders of the series of Senior Notes being prepaid for 100.0 percent of the principal amount prepaid, plus a make-whole premium, as set forth in the private placement note purchase agreement, plus accrued and unpaid interest, if any, to the date of prepayment. In addition, at any time on or after the date that is 90 days prior to the maturity date of the respective series, the company has the right to prepay all of the outstanding Senior Notes or each series for 100.0 percent of the principal amount so prepaid, plus accrued and unpaid interest, if any, to the date of prepayment. Upon the occurrence of certain change of control events, the company is required to prepay all of the Senior Notes for the principal amount thereof plus accrued and unpaid interest, if any, to the date of prepayment.

The private placement note purchase agreement contains customary representations and warranties of the company, as well as certain customary covenants, including, without limitation, financial covenants, such as the maintenance of minimum interest coverage and maximum leverage ratios, and other covenants, which, among other things, provide limitations on transactions with affiliates, mergers, consolidations and sales of assets, liens and priority debt. The company was in compliance with all representations, warranties, and covenants related to the private placement note purchase agreement as of January 31, 2020.

In connection with the company's issuance of the Senior Notes in June 2019, the company incurred approximately $0.7 million of debt issuance costs, which are being amortized over the life of the respective Senior Notes 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 respective Senior Notes on the company's Condensed Consolidated Balance Sheets.

Interest on the Senior Notes is payable semiannually on the 15th day of June and December in each year. For the three month period ended January 31, 2020, the company incurred interest expense of approximately $1.9 million on the outstanding borrowings under the private placement note purchase agreement relating to the Senior Notes.

7.8% Debentures

In June 1997, the company issued $175.0 million of debt securities consisting of $75.0 million of 7.125 percent coupon 10-year notes and $100.0 million of 7.8 percent coupon 30-year debentures. The $75.0 million of 7.125 percent coupon 10-year notes were repaid at maturity during fiscal 2007. In connection with the issuance of $175.0 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 $125.0 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. Interest on

the debentures is payable semiannually on the 15th day of June and December in each year. For each of the three month periods ended January 31, 2020 and February 1, 2019, the company incurred interest expense of approximately $2.0 million.

6.625% Senior Notes

On April 26, 2007, the company issued $125.0 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. Interest on the senior notes is payable semiannually on the 1st day of May and November in each year. For each of the three month periods ended January 31, 2020 and February 1, 2019, the company incurred interest expense of approximately $2.1 million.

Investment in Finance Affiliate - Narrative (Details) - USD ($)	3 Months Ended
	Jan. 31, 2020	Feb. 01, 2019	Dec. 20, 2019	Oct. 31, 2019	Jun. 01, 2018	May 31, 2018
Schedule of Equity Method Investments
Total liabilities	$ 463,900,000
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
Maximum borrowing capacity under credit facility	$ 625,000,000.0
Portion owned by Toro (as a percent)	45.00%
Portion owned by TCFIF (as a percent)	55.00%
Investment in joint venture	$ 25,500,000	$ 25,400,000		$ 24,100,000
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	405,100,000	428,800,000
Total assets	520,500,000
Equity method investment summarized financial information, receivables, net	$ 29,500,000	$ 32,300,000		21,700,000
Period of review for products acquired in future acquisitions to asses potential benefits and detriments	2 years
Period of pro-rata payback after initial term of joint venture	5 years
Line of Credit
Schedule of Equity Method Investments
Maximum borrowing capacity under credit facility					$ 600,000,000.0	$ 150,000,000.0
Line of Credit \| Red Iron Acceptance, LLC \| TCFIF secured revolving credit facility
Schedule of Equity Method Investments
Maximum borrowing capacity under credit facility			$ 625,000,000	$ 550,000,000

Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions	Jan. 31, 2020	Oct. 31, 2019
Assets and liabilities measured at fair value disclosures
Long-term debt, percentage bearing fixed interest, amount	$ 423.9	$ 423.9
Level 2
Assets and liabilities measured at fair value disclosures
Long-term debt, fair value	$ 513.7	$ 493.8

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) - USD ($) $ in Thousands	3 Months Ended
	Jan. 31, 2020	Feb. 01, 2019
Derivative Instruments, Gain (Loss) [Line Items]
Net sales	$ 767,483	$ 602,956
Cost of sales	(479,395)	(387,339)
Cash flow hedging
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain reclassified from AOCL into earnings	1,537	1,481
Net Sales \| Cash flow hedging
Derivative Instruments, Gain (Loss) [Line Items]
Net sales	767,483	602,956
Cost of Sales \| Cash flow hedging
Derivative Instruments, Gain (Loss) [Line Items]
Cost of sales	(479,395)	(387,339)
Forward currency contracts \| Net Sales \| Cash flow hedging
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain reclassified from AOCL into earnings	1,205	1,238
Gain on components excluded from effectiveness testing recognized in earnings based on changes in fair value	660	1,223
Forward currency contracts \| Cost of Sales \| Cash flow hedging
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain reclassified from AOCL into earnings	332	243
Gain on components excluded from effectiveness testing recognized in earnings based on changes in fair value	$ 11	$ 62

Revenue - Disaggregation by Major Product Type and Geographic Market (Details) - USD ($) $ in Thousands	3 Months Ended
	Jan. 31, 2020	Feb. 01, 2019
Disaggregation of Revenue [Line Items]
Revenues	$ 767,483	$ 602,956
United States
Disaggregation of Revenue [Line Items]
Revenues	591,648	461,411
Foreign Countries
Disaggregation of Revenue [Line Items]
Revenues	175,835	141,545
Equipment
Disaggregation of Revenue [Line Items]
Revenues	681,892	523,029
Irrigation
Disaggregation of Revenue [Line Items]
Revenues	85,591	79,927
Operating Segments \| Professional
Disaggregation of Revenue [Line Items]
Revenues	594,721	455,006
Operating Segments \| Professional \| United States
Disaggregation of Revenue [Line Items]
Revenues	454,396	348,104
Operating Segments \| Professional \| Foreign Countries
Disaggregation of Revenue [Line Items]
Revenues	140,325	106,902
Operating Segments \| Professional \| Equipment
Disaggregation of Revenue [Line Items]
Revenues	523,909	387,550
Operating Segments \| Professional \| Irrigation
Disaggregation of Revenue [Line Items]
Revenues	70,812	67,456
Operating Segments \| Residential
Disaggregation of Revenue [Line Items]
Revenues	165,848	145,158
Operating Segments \| Residential \| United States
Disaggregation of Revenue [Line Items]
Revenues	130,338	110,515
Operating Segments \| Residential \| Foreign Countries
Disaggregation of Revenue [Line Items]
Revenues	35,510	34,643
Operating Segments \| Residential \| Equipment
Disaggregation of Revenue [Line Items]
Revenues	152,458	133,510
Operating Segments \| Residential \| Irrigation
Disaggregation of Revenue [Line Items]
Revenues	13,390	11,648
Other
Disaggregation of Revenue [Line Items]
Revenues	6,914	2,792
Other \| United States
Disaggregation of Revenue [Line Items]
Revenues	6,914	2,792
Other \| Foreign Countries
Disaggregation of Revenue [Line Items]
Revenues	0	0
Other \| Equipment
Disaggregation of Revenue [Line Items]
Revenues	5,525	1,969
Other \| Irrigation
Disaggregation of Revenue [Line Items]
Revenues	$ 1,389	$ 823

Stockholders' Equity - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	Jan. 31, 2020	Oct. 31, 2019	Feb. 01, 2019
Accumulated other comprehensive loss (AOCL)
Foreign currency translation adjustments	$ 31,749	$ 31,025	$ 26,280
Pension and post-retirement benefits	4,861	4,861	561
Cash flow derivative instruments	(4,489)	(3,837)	(2,326)
Total accumulated other comprehensive loss	$ 32,121	$ 32,049	$ 24,515

Contingencies

3 Months Ended

Jan. 31, 2020

Loss Contingency [Abstract]

Contingencies



15	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.

Basis of Presentation - Narrative (Details) - USD ($) $ in Thousands	Jan. 31, 2020	Nov. 01, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Right-of-use assets	$ 73,137
Present value of operating lease liabilities	$ 76,389
ASU No. 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Right-of-use assets		$ 78,100
Present value of operating lease liabilities		$ 77,100

Stock-Based Compensation - Compensation Costs Related to Stock-Based Awards Granted (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Jan. 31, 2020	Feb. 01, 2019
Stock-Based Compensation
Total compensation cost for stock-based awards	$ 3,960	$ 3,924
Unrestricted common stock awards
Stock-Based Compensation
Total compensation cost for stock-based awards	$ 693	$ 592
Unrestricted common stock awards \| Board of Directors
Stock-Based Compensation
Fully vested unrestricted common stock awards granted (in shares)	8,920	10,090
Stock option awards
Stock-Based Compensation
Total compensation cost for stock-based awards	$ 1,777	$ 1,835
Performance share awards
Stock-Based Compensation
Total compensation cost for stock-based awards	548	804
Restricted stock unit awards
Stock-Based Compensation
Total compensation cost for stock-based awards	$ 942	$ 693

Per Share Data

3 Months Ended

Jan. 31, 2020

Earnings Per Share [Abstract]

Per Share Data



14	Per Share Data

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



	Three Months Ended
(Shares in thousands)	January 31, 2020	February 1, 2019
Basic
Weighted-average number of shares of common stock	107,380	106,216
Assumed issuance of contingent shares	43	42
Weighted-average number of shares of common stock and assumed issuance of contingent shares	107,423	106,258

Diluted
Weighted-average number of shares of common stock and assumed issuance of contingent shares	107,423	106,258
Effect of dilutive securities	1,232	1,523
Weighted-average number of shares of common stock, assumed issuance of contingent shares, and effect of dilutive securities	108,655	107,781

Incremental shares from options and restricted stock units are computed under the treasury stock method. Options to purchase 262,205 and 786,262 shares of common stock during the first three months of fiscal 2020 and 2019, respectively, were excluded from diluted net earnings per share because they were anti-dilutive.

Segment Data - Narrative (Details)	3 Months Ended
Segment Data - Narrative (Details)	Jan. 31, 2020 segment
Segment Reporting [Abstract]
Number of operating segments	10
Number of reportable segments	2

Revenue - Performance Obligation (Details) $ in Millions	Jan. 31, 2020 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-02-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 7.1
Revenue, remaining performance obligation, expected timing of satisfaction, period	9 months
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	$ 6.4
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-11-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 5.0
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year

Goodwill and Other Intangible Assets, Net - Changes in Net Carrying Amount of Goodwill (Details) $ in Thousands	3 Months Ended
	Jan. 31, 2020 USD ($)
Changes in the net carrying amount of goodwill
Goodwill, beginning balance	$ 362,253
Translation adjustments	(117)
Goodwill, ending balance	362,136
Operating Segments \| Professional
Changes in the net carrying amount of goodwill
Goodwill, beginning balance	350,250
Translation adjustments	(116)
Goodwill, ending balance	350,134
Operating Segments \| Residential
Changes in the net carrying amount of goodwill
Goodwill, beginning balance	10,469
Translation adjustments	(1)
Goodwill, ending balance	10,468
Other
Changes in the net carrying amount of goodwill
Goodwill, beginning balance	1,534
Translation adjustments	0
Goodwill, ending balance	$ 1,534

Business Combination - Allocation of Preliminary Purchase Price (Details) - USD ($) $ in Thousands		3 Months Ended
	Apr. 01, 2019	Oct. 31, 2019	Jan. 31, 2020	Feb. 01, 2019
Business Acquisition [Line Items]
Goodwill		$ 362,253	$ 362,136	$ 227,091
The Charles Machine Works, Inc.
Business Acquisition [Line Items]
Cash and cash equivalents	$ 16,341
Receivables	65,674
Inventories	241,429
Prepaid expenses and other current assets	9,218
Property, plant and equipment	142,779
Goodwill	135,521
Other intangible assets	264,190
Other long-term assets	7,971
Accounts payable	(36,655)
Accrued liabilities	(52,258)
Deferred income tax liabilities	(86,231)
Other long-term liabilities	(6,665)
Total fair value of net assets acquired	701,314
Less: cash and cash equivalents acquired	(16,341)
Total purchase price	$ 684,973	$ 685,000

Property and Depreciation - Narrative (Details)	3 Months Ended
Property and Depreciation - Narrative (Details)	Jan. 31, 2020
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
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
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

Leases - Narrative (Details)	Jan. 31, 2020
Minimum
Lessee, Lease, Description [Line Items]
Lessee, operating lease, renewal term	2 years
Maximum
Lessee, Lease, Description [Line Items]
Lessee, operating lease, renewal term	10 years

Property and Depreciation

3 Months Ended

Jan. 31, 2020

Property, Plant and Equipment [Abstract]

Property and Depreciation



9	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 website 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.

Property, plant and equipment was as follows:



(Dollars in thousands)	January 31, 2020		February 1, 2019		October 31, 2019
Land and land improvements	$	55,602	$	40,475	$	55,613
Buildings and leasehold improvements	276,705		213,927		276,556
Machinery and equipment	450,321		351,390		453,314
Tooling	216,541		215,902		226,870
Computer hardware and software	94,385		83,555		94,409
Construction in process	58,056		45,391		34,937
Property, plant, and equipment, gross	1,151,610		950,640		1,141,699
Less: accumulated depreciation	720,357		671,370		704,382
Property, plant, and equipment, net	$	431,253	$	279,270	$	437,317

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
	Jan. 31, 2020	Feb. 01, 2019
Derivative Instruments, Gain (Loss) [Line Items]
Total gain (loss) on derivatives not designated as cash flow hedging instruments	$ 220	$ (1,063)
Forward currency contracts
Derivative Instruments, Gain (Loss) [Line Items]
Total gain (loss) on derivatives not designated as cash flow hedging instruments	$ 220	$ (1,063)

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

Business Combination - Summary of Intangible Assets (Details) - USD ($) $ in Thousands		3 Months Ended		10 Months Ended
	Oct. 31, 2019	Jan. 31, 2020	Feb. 01, 2019	Jan. 31, 2020
Business Acquisition [Line Items]
Weighted-Average Useful Life	15 years 6 months	15 years 6 months	14 years 2 months 12 days
Gross Carrying Amount	$ 309,285	$ 309,254	$ 149,046	$ 309,254
Accumulated Amortization	(91,223)	(95,937)	(75,671)	(95,937)
Net	218,062	213,317	73,375	213,317
Total other intangible assets, gross	443,597	443,580	179,688	443,580
Total other intangible assets, net	$ 352,374	347,643	$ 104,017	$ 347,643
The Charles Machine Works, Inc.
Business Acquisition [Line Items]
Weighted-Average Useful Life				16 years 7 months 6 days
Gross Carrying Amount		160,490		$ 160,490
Accumulated Amortization		(13,884)		(13,884)
Net		146,606		146,606
Total other intangible assets, gross		264,190		264,190
Total other intangible assets, net		250,306		$ 250,306
Customer-related \| The Charles Machine Works, Inc.
Business Acquisition [Line Items]
Weighted-Average Useful Life				18 years 3 months 18 days
Gross Carrying Amount		130,800		$ 130,800
Accumulated Amortization		(7,193)		(7,193)
Net		$ 123,607		123,607
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	$ 51,911	$ 51,902	$ 31,079	51,902
Accumulated Amortization	(31,289)	(32,264)	(28,774)	(32,264)
Net	$ 20,622	19,638	$ 2,305	$ 19,638
Developed technology \| The Charles Machine Works, Inc.
Business Acquisition [Line Items]
Weighted-Average Useful Life				7 years 9 months 18 days
Gross Carrying Amount		20,900		$ 20,900
Accumulated Amortization		(2,885)		(2,885)
Net		$ 18,015		18,015
Trade names
Business Acquisition [Line Items]
Weighted-Average Useful Life	15 years 4 months 24 days	15 years 4 months 24 days	5 years
Gross Carrying Amount	$ 7,496	$ 7,485	$ 2,319	7,485
Accumulated Amortization	(2,109)	(2,208)	(1,850)	(2,208)
Net	$ 5,387	5,277	$ 469	$ 5,277
Trade names \| The Charles Machine Works, Inc.
Business Acquisition [Line Items]
Weighted-Average Useful Life				20 years
Gross Carrying Amount		5,200		$ 5,200
Accumulated Amortization		(216)		(216)
Net		4,984		$ 4,984
Backlog \| The Charles Machine Works, Inc.
Business Acquisition [Line Items]
Weighted-Average Useful Life				6 months
Gross Carrying Amount		3,590		$ 3,590
Accumulated Amortization		(3,590)		(3,590)
Net		0		0
Trade names \| The Charles Machine Works, Inc.
Business Acquisition [Line Items]
Indefinite-lived - trade names		$ 103,700		$ 103,700

Revenue

3 Months Ended

Jan. 31, 2020

Revenue from Contract with Customer [Abstract]

Revenue



4	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 the company's reportable segment net sales by major product type and geographic market (in thousands):



Three Months Ended January 31, 2020	Professional		Residential		Other		Total
Revenue by product type:
Equipment	$	523,909	$	152,458	$	5,525	$	681,892
Irrigation	70,812		13,390		1,389		85,591
Total net sales	$	594,721	$	165,848	$	6,914	$	767,483

Revenue by geographic market:
United States	$	454,396	$	130,338	$	6,914	$	591,648
Foreign Countries	140,325		35,510		—		175,835
Total net sales	$	594,721	$	165,848	$	6,914	$	767,483



Three Months Ended February 1, 2019	Professional		Residential		Other		Total
Revenue by product type:
Equipment	$	387,550	$	133,510	$	1,969	$	523,029
Irrigation	67,456		11,648		823		79,927
Total net sales	$	455,006	$	145,158	$	2,792	$	602,956

Revenue by geographic market:
United States	$	348,104	$	110,515	$	2,792	$	461,411
Foreign Countries	106,902		34,643		—		141,545
Total net sales	$	455,006	$	145,158	$	2,792	$	602,956

Contract Liabilities

Contract liabilities relate to deferred revenue recognized for payments received at contract inception in advance of the company's performance under the respective 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 contract 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. As of January 31, 2020 and October 31, 2019, $20.5 million and $22.0 million, respectively, of deferred 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 months ended January 31, 2020, the company recognized $3.6 million of the October 31, 2019 deferred revenue balance within net sales in the Condensed Consolidated Statements of Earnings. The company expects to recognize approximately $7.1 million of the October 31, 2019 deferred revenue amount within net sales throughout the remainder of fiscal 2020, $6.4 million in fiscal 2021, and $5.0 million thereafter.

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
	Jan. 31, 2020	Feb. 01, 2019
Derivative Instruments, Gain (Loss) [Line Items]
Gain Reclassified from AOCL into Earnings	$ 1,537	$ 1,481
Gain (Loss) Recognized in OCI on Derivatives	652	(4,009)
Forward currency contracts \| Net Sales
Derivative Instruments, Gain (Loss) [Line Items]
Gain Reclassified from AOCL into Earnings	1,205	1,238
Gain (Loss) Recognized in OCI on Derivatives	584	(3,481)
Forward currency contracts \| Cost of Sales
Derivative Instruments, Gain (Loss) [Line Items]
Gain Reclassified from AOCL into Earnings	332	243
Gain (Loss) Recognized in OCI on Derivatives	$ 68	$ (528)

Stock-Based Compensation

3 Months Ended

Jan. 31, 2020

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

Stock-Based Compensation



12	Stock-Based Compensation

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



	Three Months Ended
(Dollars in thousands)	January 31, 2020		February 1, 2019
Unrestricted common stock awards	$	693	$	592
Stock option awards	1,777		1,835
Performance share awards	548		804
Restricted stock unit awards	942		693
Total compensation cost for stock-based awards	$	3,960	$	3,924

Unrestricted Common Stock Awards

During the first three months of fiscal years 2020 and 2019, 8,920 and 10,090 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.

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, if the option holder is employed as of the end of the fiscal year in which the options are granted, such options will not be forfeited but continue to vest according to their schedule 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. 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 2020	Fiscal 2019
Expected life of option in years	6.31	6.31
Expected stock price volatility	19.38%	19.84%
Risk-free interest rate	1.79%	2.77%
Expected dividend yield	0.98%	1.18%
Per share weighted-average fair value at date of grant	$15.37	$12.81

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 three months of fiscal 2020 and 2019 was $77.08 and $58.53, respectively.

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 can 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 2020 and 2019 was $77.33 and $59.58, respectively.

Goodwill and Other Intangible Assets, Net

3 Months Ended

Jan. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets, Net



5	Goodwill and Other Intangible Assets, Net

Goodwill

The changes in the carrying amount of goodwill by reportable segment for the first three months of fiscal 2020 were as follows:



(Dollars in thousands)	Professional			Residential			Other		Total
Balance as of October 31, 2019	$	350,250		$	10,469		$	1,534	$	362,253
Translation adjustments	(116		)	(1		)	—		(117		)
Balance as of January 31, 2020	$	350,134		$	10,468		$	1,534	$	362,136

Other Intangible Assets, Net

The components of other intangible assets, net as of January 31, 2020 were as follows:



(Dollars in thousands)	Weighted-Average Useful Life	Gross Carrying Amount		Accumulated Amortization			Net
Patents	9.9	$	18,238	$	(13,307	)	$	4,931
Non-compete agreements	5.5	6,875		(6,798		)	77
Customer-related	18.4	220,364		(36,970		)	183,394
Developed technology	7.6	51,902		(32,264		)	19,638
Trade names	15.4	7,485		(2,208		)	5,277
Backlog and other	0.6	4,390		(4,390		)	—
Total definite-lived	15.5	309,254		(95,937		)	213,317
Indefinite-lived - trade names		134,326		—			134,326
Total other intangible assets, net		$	443,580	$	(95,937	)	$	347,643

The components of other intangible assets, net as of February 1, 2019 were as follows:



(Dollars in thousands)	Weighted-Average Useful Life	Gross Carrying Amount		Accumulated Amortization			Net
Patents	9.9	$	18,255	$	(12,524	)	$	5,731
Non-compete agreements	5.5	6,891		(6,794		)	97
Customer-related	18.5	89,702		(24,929		)	64,773
Developed technology	7.6	31,079		(28,774		)	2,305
Trade names	5.0	2,319		(1,850		)	469
Other	1.0	800		(800		)	—
Total definite-lived	14.2	149,046		(75,671		)	73,375
Indefinite-lived - trade names		30,642		—			30,642
Total other intangible assets, net		$	179,688	$	(75,671	)	$	104,017

The components of other intangible assets, net as of October 31, 2019 were as follows:



(Dollars in thousands)	Weighted-Average Useful Life	Gross Carrying Amount		Accumulated Amortization			Net
Patents	9.9	$	18,230	$	(13,102	)	$	5,128
Non-compete agreements	5.5	6,868		(6,786		)	82
Customer-related	18.4	220,390		(33,547		)	186,843
Developed technology	7.6	51,911		(31,289		)	20,622
Trade names	15.4	7,496		(2,109		)	5,387
Other	0.6	4,390		(4,390		)	—
Total definite-lived	15.5	309,285		(91,223		)	218,062
Indefinite-lived - trade names		134,312		—			134,312
Total other intangible assets, net		$	443,597	$	(91,223	)	$	352,374

Amortization expense for definite-lived intangible assets during the first quarter of fiscal 2020 and fiscal 2019 was $4.7 million and $1.8 million, respectively. Estimated amortization expense for the remainder of fiscal 2020 and succeeding fiscal years is as follows: fiscal 2020 (remainder), $14.0 million; fiscal 2021, $18.3 million; fiscal 2022, $17.0 million; fiscal 2023, $15.3 million; fiscal 2024, $14.3 million; fiscal 2025, $12.6 million; and after fiscal 2025, $121.8 million.

Leases - Schedule of Future Minimum Operating Lease Payments (Details) - USD ($) $ in Thousands	Jan. 31, 2020	Oct. 31, 2019
ASC Topic 842 Leases
2020 (remaining)	$ 23,958
2021	16,208
2022	13,476
2023	10,417
2024	9,337
Thereafter	21,217
Total future minimum operating lease payments	94,613
Less: imputed interest	18,224
Present value of operating lease liabilities	$ 76,389
ASC Topic 840 Leases
2020		$ 17,135
2021		15,764
2022		12,806
2023		9,772
2024		8,863
Thereafter		18,732
Total future minimum lease payments		$ 83,072

Revenue - Contract Liabilities (Details) - USD ($) $ in Millions	3 Months Ended
	Jan. 31, 2020	Oct. 31, 2019
Business Acquisition [Line Items]
Contract with customer, liability	$ 20.5	$ 22.0
Contract with customer liability revenue recognized	$ 3.6

Stockholders' Equity (Tables)

3 Months Ended

Jan. 31, 2020

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, within the Condensed Consolidated Statements of Stockholders' Equity were as follows:



(Dollars in thousands)	January 31, 2020			February 1, 2019			October 31, 2019
Foreign currency translation adjustments	$	31,749		$	26,280		$	31,025
Pension and post-retirement benefits	4,861			561			4,861
Cash flow derivative instruments	(4,489		)	(2,326		)	(3,837		)
Total accumulated other comprehensive loss	$	32,121		$	24,515		$	32,049

Schedule of Components and Activity of AOCL

The components and activity of AOCL for the first three months of fiscal 2020 and 2019 were as follows:



(Dollars in thousands)	Foreign Currency Translation Adjustments		Pension and Post-Retirement Benefits		Cash Flow Hedging Derivative Instruments			Total
Balance as of October 31, 2019	$	31,025	$	4,861	$	(3,837	)	$	32,049
Other comprehensive loss before reclassifications	724		—		885			1,609
Amounts reclassified from AOCL	—		—		(1,537		)	(1,537		)
Net current period other comprehensive (income) loss	724		—		(652		)	72
Balance as of January 31, 2020	$	31,749	$	4,861	$	(4,489	)	$	32,121



(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 (income) loss before reclassifications	(3,431		)	—		5,490			2,059
Amounts reclassified from AOCL	—			—		(1,481		)	(1,481		)
Net current period other comprehensive (income) loss	(3,431		)	—		4,009			578
Balance as of February 1, 2019	$	26,280		$	561	$	(2,326	)	$	24,515

Indebtedness (Tables)

3 Months Ended

Jan. 31, 2020

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments

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



(Dollars in thousands)	January 31, 2020			February 1, 2019			October 31, 2019
Revolving credit facility	$	14,000		$	91,000		$	—
$200 million term loan	100,000			—			100,000
$300 million term loan	180,000			—			180,000
3.81% series A senior notes	100,000			—			100,000
3.91% series B senior notes	100,000			—			100,000
7.800% debentures	100,000			100,000			100,000
6.625% senior notes	123,931			123,869			123,916
Less: unamortized discounts, debt issuance costs, and deferred charges	(3,012		)	(2,318		)	(3,103		)
Total long-term debt	714,919			312,551			700,813
Less: current portion of long-term debt	113,903			—			79,914
Long-term debt, less current portion	$	601,016		$	312,551		$	620,899

- 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
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-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

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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

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-Name Accounting Standards Codification
-Topic 505
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Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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-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

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Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 835
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-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

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

+ Details

Fair Value Measurements - Fair Value Hierarchy (Details) - USD ($) $ in Thousands	Jan. 31, 2020	Oct. 31, 2019	Feb. 01, 2019
Assets:
Forward currency contracts	$ 12,676	$ 10,898	$ 5,836
Liabilities:
Forward currency contracts	0	9	33
Forward currency contracts
Assets:
Forward currency contracts	12,676	10,898	5,836
Liabilities:
Forward currency contracts	0	9	33
Measured on a recurring basis
Assets:
Total assets	12,676	10,898	5,836
Liabilities:
Total liabilities		9	33
Measured on a recurring basis \| Forward currency contracts
Assets:
Forward currency contracts	12,676	10,898	5,836
Liabilities:
Forward currency contracts		9	33
Measured on a recurring basis \| Level 1
Assets:
Total assets	0	0	0
Liabilities:
Total liabilities		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
Measured on a recurring basis \| Level 2
Assets:
Total assets	12,676	10,898	5,836
Liabilities:
Total liabilities		9	33
Measured on a recurring basis \| Level 2 \| Forward currency contracts
Assets:
Forward currency contracts	12,676	10,898	5,836
Liabilities:
Forward currency contracts		9	33
Measured on a recurring basis \| Level 3
Assets:
Total assets	0	0	0
Liabilities:
Total liabilities		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

Leases (Tables)

3 Months Ended

Jan. 31, 2020

Leases [Abstract]

Supplemental Cash Flow and Other Lease Information

The following table presents the lease expense incurred on the company’s operating, short-term, and variable leases for the three month period ended January 31, 2020:



(Dollars in thousands)	January 31, 2020
Operating lease expense	$	4,834
Short-term lease expense	682
Variable lease expense	37
Total lease expense	$	5,553

The following table presents supplemental cash flow information related to the company's operating leases for the three month period ended January 31, 2020:



(Dollars in thousands)	January 31, 2020
Operating cash flows for amounts included in the measurement of lease liabilities	$	4,741
Right-of-use assets obtained in exchange for lease obligations	$	6,133

Assets And Liabilities, Lessee

The following table presents other lease information related to the company's operating leases as of January 31, 2020:



(Dollars in thousands)	January 31, 2020
Weighted-average remaining lease term of operating leases in years	6.2
Weighted-average discount rate of operating leases	2.81	%

Future Minimum Operating Lease Payments

The following table reconciles the total undiscounted future cash flows based on the anticipated future minimum operating lease payments by fiscal year for the company's operating leases to the present value of operating lease liabilities recorded within the Condensed Consolidated Balance Sheets as of January 31, 2020:



(Dollars in thousands)	January 31, 2020
2020 (remaining)	$	23,958
2021	16,208
2022	13,476
2023	10,417
2024	9,337
Thereafter	21,217
Total future minimum operating lease payments	94,613
Less: imputed interest	18,224
Present value of operating lease liabilities	$	76,389

Contractual Obligation, Fiscal Year Maturity Schedule [Table Text Block]

The following table presents future minimum operating lease payments by respective fiscal year for non-cancelable operating leases under the legacy lease accounting guidance at ASC Topic 840, Leases, as of October 31, 2019:



(Dollars in thousands)	October 31, 2019
2020	$	17,135
2021	15,764
2022	12,806
2023	9,772
2024	8,863
Thereafter	18,732
Total future minimum lease payments	$	83,072

Cover Page - shares	3 Months Ended
Cover Page - shares	Jan. 31, 2020	Feb. 27, 2020
Cover page.
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jan. 31, 2020
Document Transition Report	false
Entity File Number	1-8649
Entity Registrant Name	THE TORO COMPANY
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	41-0580470
Entity Address, Address Line One	8111 Lyndale Avenue South
Entity Address, City or Town	Bloomington
Entity Address, State or Province	MN
Entity Address, Postal Zip Code	55420-1196
City Area Code	952
Local Phone Number	888-8801
Title of 12(b) Security	Common Stock, par value $1.00 per share
Trading Symbol	TTC
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		106,979,296
Entity Central Index Key	0000737758
Amendment Flag	false
Current Fiscal Year End Date	--10-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1

Segment Data (Tables)

3 Months Ended

Jan. 31, 2020

Segment Reporting [Abstract]

Summarized Financial Information Concerning Reportable Segments

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



(Dollars in thousands)
Three Months Ended January 31, 2020	Professional		Residential		Other			Total
Net sales	$	594,721	$	165,848	$	6,914		$	767,483
Intersegment gross sales (eliminations)	8,771		27		(8,798		)	—
Earnings (loss) before income taxes	102,474		21,566		(37,901		)	86,139
Total assets	$	1,853,739	$	324,089	$	313,781		$	2,491,609



(Dollars in thousands)
Three Months Ended February 1, 2019	Professional		Residential		Other			Total
Net sales	$	455,006	$	145,158	$	2,792		$	602,956
Intersegment gross sales (eliminations)	13,609		99		(13,708		)	—
Earnings (loss) before income taxes	87,978		13,072		(31,030		)	70,020
Total assets	$	959,768	$	235,520	$	427,526		$	1,622,814

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
(Dollars in thousands)	January 31, 2020			February 1, 2019
Corporate expenses	$	(32,442	)	$	(28,314	)
Interest expense	(8,156		)	(4,742		)
Earnings from wholly-owned domestic distribution companies and other income, net	2,697			2,026
Total operating loss	$	(37,901	)	$	(31,030	)

Investment in Finance Affiliate

3 Months Ended

Jan. 31, 2020

Equity Method Investments and Joint Ventures [Abstract]

Investment in Finance Affiliate



11	Investment in Finance Affiliate

In fiscal 2009, the company and TCF Inventory Finance, Inc. ("TCFIF"), a subsidiary of TCF National Bank, established the Red Iron joint venture to primarily provide inventory financing to certain distributors and dealers of certain of the company’s products in the U.S. Under such joint venture, the company owns 45 percent of Red Iron and TCFIF owns 55 percent of Red Iron. Under a separate agreement, TCF Commercial Finance Canada, Inc. ("TCFCFC") provides inventory financing to dealers of the company's products in Canada. On December 20, 2019, during the first quarter of fiscal 2020, the company amended certain agreements pertaining to the Red Iron joint venture. The purpose of these amendments was, among other things, to: (i) adjust certain rates under the floor plan financing rate structure charged to the company’s distributors and dealers participating in financing arrangements through the Red Iron joint venture; (ii) extend the term of the Red Iron joint venture from October 31, 2024 to October 31, 2026, subject to two-year extensions thereafter unless either the company or TCFIF provides written notice to the other party of non-renewal at least one year prior to the end of the then-current term; (iii) amend certain exclusivity-related provisions, including the definition of the company's products that are subject to exclusivity, inclusion of a two-year review period by the company for products acquired in future acquisitions to assess, without a commitment to exclusivity, the potential benefits and detriments of including such acquired products under the Red Iron financing arrangement, and the pro-rata payback over a five-year period of the exclusivity incentive payment the company received from TCFIF in 2016; (iv) extend the maturity date of the revolving credit facility used by Red Iron primarily to finance the acquisition of inventory from the company by its distributors and dealers from October 31, 2024 to October 31, 2026 and to increase the amount available under such revolving credit facility from $550 million to $625 million; and (v) memorialize certain other non-material amendments.

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 $625.0 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 January 31, 2020, February 1, 2019, and October 31, 2019 was $25.5 million, $25.4 million, and $24.1 million, respectively. The company has not guaranteed the outstanding indebtedness of Red Iron.

Under the financing 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. The company has also entered into a limited inventory repurchase agreement with Red Iron and TCFCFC. Under such limited inventory repurchase agreement, the company has agreed to repurchase products repossessed by Red Iron and TCFCFC, up to a maximum aggregate amount of $7.5 million in a calendar year. The company's financial exposure under this limited inventory repurchase agreement is limited to the difference between the amount paid to Red Iron and TCFCFC for repurchases of repossessed product and the amount received upon the subsequent resale of the repossessed product. The company has repurchased immaterial amounts of inventory under this limited inventory repurchase agreement for the three month periods ended January 31, 2020 and February 1, 2019.

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 three months ended January 31, 2020 and February 1, 2019 were $405.1 million and $428.8 million, respectively. As of January 31, 2020, Red Iron’s total assets were $520.5 million and total liabilities were $463.9 million. The total amount of receivables due from Red Iron to the company as of January 31, 2020, February 1, 2019, and October 31, 2019 were $29.5 million, $32.3 million and $21.7 million, respectively.

Derivative Instruments and Hedging Activities - Narrative (Details) $ in Millions	3 Months Ended
	Jan. 31, 2020 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	$ 4.6
Forward currency contracts
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, notional amount	$ 277.6

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Jan. 31, 2020	Feb. 01, 2019
Statement of Comprehensive Income [Abstract]
Net earnings	$ 70,091	$ 59,540
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(724)	3,431
Derivative instruments, net of tax of $189 and $(1,352), respectively	652	(4,009)
Other comprehensive loss, net of tax	(72)	(578)
Comprehensive income	$ 70,019	$ 58,962

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Jan. 31, 2020	Feb. 01, 2019
Cash flows from operating activities:
Net earnings	$ 70,091	$ 59,540
Adjustments to reconcile net earnings to net cash (used in) provided by operating activities:
Non-cash income from finance affiliate	(1,751)	(2,429)
Distributions from (contributions to) finance affiliate, net	442	(459)
Depreciation of property, plant and equipment	18,089	13,670
Amortization of other intangible assets	4,714	1,913
Fair value step-up adjustment to acquired inventory	470	0
Stock-based compensation expense	3,960	3,924
Deferred income taxes	141	(1,225)
Other	175	0
Changes in operating assets and liabilities, net of effect of acquisitions:
Receivables, net	(53,044)	(31,331)
Inventories, net	(88,557)	(52,380)
Prepaid expenses and other assets	237	8,119
Accounts payable, accrued liabilities, deferred revenue and other liabilities	21,734	26,643
Net cash (used in) provided by operating activities	(23,299)	25,985
Cash flows from investing activities:
Purchases of property, plant and equipment	(11,821)	(14,180)
Proceeds from asset disposals	25	3
Investment in unconsolidated entities	0	(150)
Acquisitions, net of cash acquired	0	(12,498)
Net cash used in investing activities	(11,796)	(26,825)
Cash flows from financing activities:
Borrowings under debt arrangements	82,025	0
Repayments under debt arrangements	(68,025)	0
Proceeds from exercise of stock options	6,710	7,569
Payments of withholding taxes for stock awards	(1,361)	(1,872)
Purchases of Toro common stock	0	(20,043)
Dividends paid on Toro common stock	(26,856)	(23,923)
Net cash used in financing activities	(7,507)	(38,269)
Effect of exchange rates on cash and cash equivalents	(312)	(50)
Net decrease in cash and cash equivalents	(42,914)	(39,159)
Cash and cash equivalents as of the beginning of the fiscal period	151,828	289,124
Cash and cash equivalents as of the end of the fiscal period	$ 108,914	$ 249,965

Stock-Based Compensation (Tables)

3 Months Ended

Jan. 31, 2020

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
(Dollars in thousands)	January 31, 2020		February 1, 2019
Unrestricted common stock awards	$	693	$	592
Stock option awards	1,777		1,835
Performance share awards	548		804
Restricted stock unit awards	942		693
Total compensation cost for stock-based awards	$	3,960	$	3,924

Schedule of Assumptions for Options Granted

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



	Fiscal 2020	Fiscal 2019
Expected life of option in years	6.31	6.31
Expected stock price volatility	19.38%	19.84%
Risk-free interest rate	1.79%	2.77%
Expected dividend yield	0.98%	1.18%
Per share weighted-average fair value at date of grant	$15.37	$12.81

Leases Leases

3 Months Ended

Jan. 31, 2020

Leases [Abstract]

Leases



16	Leases

The company enters into contracts that are, or contain, operating lease agreements for certain property, plant, or equipment assets in the normal course of business, such as buildings for manufacturing facilities, office space, distribution centers, and warehouse facilities; land for product testing sites; machinery and equipment for research and development activities, manufacturing and assembly processes, and administrative tasks; and vehicles for sales, service, marketing, and distribution activities. Contracts that explicitly or implicitly relate to property, plant, and equipment are assessed at inception to determine if the contract is, or contains, a lease. Such contracts for operating lease agreements convey the company's right to direct the use of, and obtain substantially all of the economic benefits from, an identified asset for a defined period of time in exchange for consideration.

The lease term begins and is determined upon lease commencement, which is the point in time when the company takes possession of the identified asset, and includes all non-cancelable periods. Additionally, the lease term may also include options to extend or terminate the lease when it is reasonably certain that such options will be exercised after considering all relevant economic and financial factors. Options to extend or terminate a lease are generally exercisable at the company's sole discretion, subject to any required minimum notification period and/or other contractual terms as defined within the respective lease agreement, as applicable. The company's renewal options generally range from extended terms of two to ten years. Certain leases also include options to purchase the identified asset. Lease expense for the company's operating leases is recognized on a straight-line basis over the lease term and is recorded within cost of sales or selling, general and administrative expense within the Condensed Consolidated Statements of Earnings as dictated by the nature and use of the underlying asset. The company does not recognize right-of-use assets and lease liabilities, but does recognize expense on a straight-line basis, for short-term operating leases which have a lease term of 12 months or less and do not include an option to purchase the underlying asset.

Lease payments are determined at lease commencement and represent fixed lease payments as defined within the respective lease agreement or, in the case of certain lease agreements, variable lease payments that are measured as of the lease commencement date based on the prevailing index or market rate. Future adjustments to variable lease payments are defined and scheduled within the respective lease agreement and are determined based upon the prevailing mark or index rate at the time of the adjustment relative to the market or index rate determined at lease commencement. Certain other lease agreements contain variable lease payments that are determined based upon actual utilization of the identified asset. Such future adjustments to variable lease payments and variable lease payments based upon actual utilization of the identified asset are not included within the determination of lease payments at commencement but rather, are recorded as variable lease expense in the period in which the variable lease cost is incurred. Additionally, the company's operating leases generally do not include material residual value guarantees. The company has operating leases with both lease components and non-lease components. For all underlying asset classes, the company accounts for lease components separately from non-lease components based on the relative market value of each component. Non-lease components typically consist of common area maintenance, utilities, and/or other repairs and maintenance services. The costs related to non-lease components are not included within the determination of lease payments at commencement.

Right-of-use assets represent the company's right to use an underlying asset throughout the lease term and lease liabilities represent the company's obligation to make lease payments arising from the lease agreement. The company accounts for operating lease liabilities at lease commencement and on an ongoing basis as the present value of the minimum remaining lease payments under the respective lease term. Minimum remaining lease payments are discounted to present value based on the rate implicit in the operating lease agreement or the estimated incremental borrowing rate at lease commencement if the rate implicit in the lease is not readily determinable. Generally, the estimated incremental borrowing rate is used as the rate implicit in the lease is not readily determinable. The estimated incremental borrowing rate represents the rate of interest that the company would have to pay to borrow on a general and unsecured collateralized basis over a similar term, an amount equal to the lease payments in a similar economic environment. The company determines the estimated incremental borrowing rate at lease commencement based on available information at such time, including lease term, lease currency, and geographical market. Right-of-use assets are measured as the amount of the corresponding operating lease liability for the respective operating lease agreement, adjusted for prepaid or accrued lease payments, the remaining balance of any lease incentives received, unamortized initial direct costs, and impairment of the operating lease right-of-use asset, as applicable.

The following table presents the lease expense incurred on the company’s operating, short-term, and variable leases for the three month period ended January 31, 2020:



(Dollars in thousands)	January 31, 2020
Operating lease expense	$	4,834
Short-term lease expense	682
Variable lease expense	37
Total lease expense	$	5,553

The following table presents supplemental cash flow information related to the company's operating leases for the three month period ended January 31, 2020:



(Dollars in thousands)	January 31, 2020
Operating cash flows for amounts included in the measurement of lease liabilities	$	4,741
Right-of-use assets obtained in exchange for lease obligations	$	6,133

The following table presents other lease information related to the company's operating leases as of January 31, 2020:



(Dollars in thousands)	January 31, 2020
Weighted-average remaining lease term of operating leases in years	6.2
Weighted-average discount rate of operating leases	2.81	%



(Dollars in thousands)	January 31, 2020
2020 (remaining)	$	23,958
2021	16,208
2022	13,476
2023	10,417
2024	9,337
Thereafter	21,217
Total future minimum operating lease payments	94,613
Less: imputed interest	18,224
Present value of operating lease liabilities	$	76,389



(Dollars in thousands)	October 31, 2019
2020	$	17,135
2021	15,764
2022	12,806
2023	9,772
2024	8,863
Thereafter	18,732
Total future minimum lease payments	$	83,072

Goodwill and Other Intangible Assets, Net (Tables)

3 Months Ended

Jan. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The changes in the carrying amount of goodwill by reportable segment for the first three months of fiscal 2020 were as follows:



(Dollars in thousands)	Professional			Residential			Other		Total
Balance as of October 31, 2019	$	350,250		$	10,469		$	1,534	$	362,253
Translation adjustments	(116		)	(1		)	—		(117		)
Balance as of January 31, 2020	$	350,134		$	10,468		$	1,534	$	362,136

Schedule of Finite-Lived Intangible Assets

The components of other intangible assets, net as of January 31, 2020 were as follows:



(Dollars in thousands)	Weighted-Average Useful Life	Gross Carrying Amount		Accumulated Amortization			Net
Patents	9.9	$	18,238	$	(13,307	)	$	4,931
Non-compete agreements	5.5	6,875		(6,798		)	77
Customer-related	18.4	220,364		(36,970		)	183,394
Developed technology	7.6	51,902		(32,264		)	19,638
Trade names	15.4	7,485		(2,208		)	5,277
Backlog and other	0.6	4,390		(4,390		)	—
Total definite-lived	15.5	309,254		(95,937		)	213,317
Indefinite-lived - trade names		134,326		—			134,326
Total other intangible assets, net		$	443,580	$	(95,937	)	$	347,643

The components of other intangible assets, net as of February 1, 2019 were as follows:



(Dollars in thousands)	Weighted-Average Useful Life	Gross Carrying Amount		Accumulated Amortization			Net
Patents	9.9	$	18,255	$	(12,524	)	$	5,731
Non-compete agreements	5.5	6,891		(6,794		)	97
Customer-related	18.5	89,702		(24,929		)	64,773
Developed technology	7.6	31,079		(28,774		)	2,305
Trade names	5.0	2,319		(1,850		)	469
Other	1.0	800		(800		)	—
Total definite-lived	14.2	149,046		(75,671		)	73,375
Indefinite-lived - trade names		30,642		—			30,642
Total other intangible assets, net		$	179,688	$	(75,671	)	$	104,017

The components of other intangible assets, net as of October 31, 2019 were as follows:



(Dollars in thousands)	Weighted-Average Useful Life	Gross Carrying Amount		Accumulated Amortization			Net
Patents	9.9	$	18,230	$	(13,102	)	$	5,128
Non-compete agreements	5.5	6,868		(6,786		)	82
Customer-related	18.4	220,390		(33,547		)	186,843
Developed technology	7.6	51,911		(31,289		)	20,622
Trade names	15.4	7,496		(2,109		)	5,387
Other	0.6	4,390		(4,390		)	—
Total definite-lived	15.5	309,285		(91,223		)	218,062
Indefinite-lived - trade names		134,312		—			134,312
Total other intangible assets, net		$	443,597	$	(91,223	)	$	352,374

Schedule of Indefinite-Lived Intangible Assets

The components of other intangible assets, net as of January 31, 2020 were as follows:



(Dollars in thousands)	Weighted-Average Useful Life	Gross Carrying Amount		Accumulated Amortization			Net
Patents	9.9	$	18,238	$	(13,307	)	$	4,931
Non-compete agreements	5.5	6,875		(6,798		)	77
Customer-related	18.4	220,364		(36,970		)	183,394
Developed technology	7.6	51,902		(32,264		)	19,638
Trade names	15.4	7,485		(2,208		)	5,277
Backlog and other	0.6	4,390		(4,390		)	—
Total definite-lived	15.5	309,254		(95,937		)	213,317
Indefinite-lived - trade names		134,326		—			134,326
Total other intangible assets, net		$	443,580	$	(95,937	)	$	347,643

The components of other intangible assets, net as of February 1, 2019 were as follows:



(Dollars in thousands)	Weighted-Average Useful Life	Gross Carrying Amount		Accumulated Amortization			Net
Patents	9.9	$	18,255	$	(12,524	)	$	5,731
Non-compete agreements	5.5	6,891		(6,794		)	97
Customer-related	18.5	89,702		(24,929		)	64,773
Developed technology	7.6	31,079		(28,774		)	2,305
Trade names	5.0	2,319		(1,850		)	469
Other	1.0	800		(800		)	—
Total definite-lived	14.2	149,046		(75,671		)	73,375
Indefinite-lived - trade names		30,642		—			30,642
Total other intangible assets, net		$	179,688	$	(75,671	)	$	104,017

The components of other intangible assets, net as of October 31, 2019 were as follows:



(Dollars in thousands)	Weighted-Average Useful Life	Gross Carrying Amount		Accumulated Amortization			Net
Patents	9.9	$	18,230	$	(13,102	)	$	5,128
Non-compete agreements	5.5	6,868		(6,786		)	82
Customer-related	18.4	220,390		(33,547		)	186,843
Developed technology	7.6	51,911		(31,289		)	20,622
Trade names	15.4	7,496		(2,109		)	5,387
Other	0.6	4,390		(4,390		)	—
Total definite-lived	15.5	309,285		(91,223		)	218,062
Indefinite-lived - trade names		134,312		—			134,312
Total other intangible assets, net		$	443,597	$	(91,223	)	$	352,374

Inventories

3 Months Ended

Jan. 31, 2020

Inventory Disclosure [Abstract]

Inventories



8	Inventories

Inventories are valued at the lower of cost or net realizable value, with cost determined by the first-in, first-out ("FIFO") method for a majority of the company's inventories and the last-in, first-out ("LIFO") and average cost methods 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.

Inventories were as follows:



(Dollars in thousands)	January 31, 2020		February 1, 2019		October 31, 2019
Raw materials and work in process	$	188,235	$	124,458	$	179,967
Finished goods and service parts	632,796		364,393		553,767
Total FIFO value	821,031		488,851		733,734
Less: adjustment to LIFO value	82,071		72,201		82,071
Total inventories, net	$	738,960	$	416,650	$	651,663

Derivative Instruments and Hedging Activities

3 Months Ended

Jan. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities



17	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 January 31, 2020, the notional amount outstanding of forward contracts designated as cash flow hedging instruments was $277.6 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)	January 31, 2020		February 1, 2019		October 31, 2019
Derivative assets:
Derivatives designated as cash flow hedging instruments:
Prepaid expenses and other current assets
Forward currency contracts	$	9,244	$	4,333	$	8,642
Derivatives not designated as cash flow hedging instruments:
Prepaid expenses and other current assets
Forward currency contracts	3,432		1,503		2,256
Total assets	$	12,676	$	5,836	$	10,898

Derivative liabilities:
Derivatives designated as cash flow hedging instruments:
Accrued liabilities
Forward currency contracts	$	—	$	30	$	—
Derivatives not designated as cash flow hedging instruments:
Accrued liabilities
Forward currency contracts	—		3		9
Total liabilities	$	—	$	33	$	9

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 presents 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)	January 31, 2020			February 1, 2019			October 31, 2019
Derivative assets:
Forward currency contracts:
Gross amounts of recognized assets	$	12,841		$	5,837		$	11,056
Gross liabilities offset in the Condensed Consolidated Balance Sheets	(165		)	(1		)	(158		)
Net amounts of assets presented in the Condensed Consolidated Balance Sheets	$	12,676		$	5,836		$	10,898

Derivative liabilities:
Forward currency contracts:
Gross amounts of recognized liabilities	$	—		$	(33	)	$	(9	)
Gross assets offset in the Condensed Consolidated Balance Sheets	—			—			—
Net amounts of liabilities presented in the Condensed Consolidated Balance Sheets	$	—		$	(33	)	$	(9	)

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 months ended January 31, 2020 and February 1, 2019:



	Three Months Ended
	Gain Reclassified from AOCL into Earnings				Gain (Loss) Recognized in OCI on Derivatives
(Dollars in thousands)	January 31, 2020		February 1, 2019		January 31, 2020		February 1, 2019
Derivatives designated as cash flow hedging instruments:
Forward currency contracts:
Net sales	$	1,205	$	1,238	$	584	$	(3,481	)
Cost of sales	332		243		68		(528		)
Total derivatives designated as cash flow hedging instruments	$	1,537	$	1,481	$	652	$	(4,009	)

The company recognized immaterial gains within other income, net on the Condensed Consolidated Statements of Earnings during the first quarter of fiscal 2020 due to the discontinuance of cash flow hedge accounting on certain forward currency contracts designated as cash flow hedging instruments. For the first quarter of fiscal 2019, the company did not discontinue cash flow hedge accounting on any forward currency contracts designated as cash flow hedging instruments. As of January 31, 2020, the company expects to reclassify approximately $4.6 million of gains from AOCL to earnings during the next twelve months.

The following table presents 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 Recognized in Earnings on Cash Flow Hedging Instruments
(Dollars in thousands)	January 31, 2020					February 1, 2019
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	$	767,483	$	(479,395	)	$	602,956	$	(387,339	)
Gain on derivatives designated as cash flow hedging instruments:
Forward currency contracts:
Amount of gain reclassified from AOCL into earnings	1,205		332			1,238		243
Gain on components excluded from effectiveness testing recognized in earnings based on changes in fair value	$	660	$	11		$	1,223	$	62

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
(Dollars in thousands)	January 31, 2020		February 1, 2019
Gain (loss) on derivatives not designated as cash flow hedging instruments
Forward currency contracts:
Other income, net	$	220	$	(1,063	)
Total gain (loss) on derivatives not designated as cash flow hedging instruments	$	220	$	(1,063	)

Management Actions

3 Months Ended

Jan. 31, 2020

Discontinued Operations and Disposal Groups [Abstract]

Management Actions



7	Management Actions

On August 1, 2019, during the company's fiscal 2019 third quarter, the company announced a plan to wind down its Toro-branded large directional drill and riding trencher product categories within its Professional segment product portfolio ("Toro underground wind down"). During fiscal 2019, the company recorded pre-tax charges of $10.0 million as a result of the Toro underground wind down related to inventory write-downs to net realizable value and accelerated depreciation on fixed assets that will no longer be used and anticipated inventory retail support activities. As of January 31, 2020, the company expects to incur total pretax charges of approximately $10.0 million to $11.0 million related to the Toro underground wind down. No pre-tax charges were incurred during the three month period ended January 31, 2020 related to the Toro underground wind down. As of January 31, 2020, the company had a remaining accrual balance of $0.9 million related to the anticipated inventory retail support activities within accrued liabilities in the Condensed Consolidated Balance Sheet as of such date. The remainder of the estimated pre-tax charges are anticipated to be primarily comprised of costs related to the write-down of future component parts inventory purchases to finalize assembly of the company's remaining Toro-branded large directional drill and riding trencher inventory. Substantially all costs related to the Toro underground wind down are expected to be incurred by the end of fiscal 2020.

Stockholders' Equity

3 Months Ended

Jan. 31, 2020

Stockholders' Equity Note [Abstract]

Stockholders' Equity



13	Stockholders' Equity

Accumulated Other Comprehensive Loss

Components of accumulated other comprehensive loss ("AOCL"), net of tax, within the Condensed Consolidated Statements of Stockholders' Equity were as follows:



(Dollars in thousands)	January 31, 2020			February 1, 2019			October 31, 2019
Foreign currency translation adjustments	$	31,749		$	26,280		$	31,025
Pension and post-retirement benefits	4,861			561			4,861
Cash flow derivative instruments	(4,489		)	(2,326		)	(3,837		)
Total accumulated other comprehensive loss	$	32,121		$	24,515		$	32,049

The components and activity of AOCL for the first three months of fiscal 2020 and 2019 were as follows:



(Dollars in thousands)	Foreign Currency Translation Adjustments		Pension and Post-Retirement Benefits		Cash Flow Hedging Derivative Instruments			Total
Balance as of October 31, 2019	$	31,025	$	4,861	$	(3,837	)	$	32,049
Other comprehensive loss before reclassifications	724		—		885			1,609
Amounts reclassified from AOCL	—		—		(1,537		)	(1,537		)
Net current period other comprehensive (income) loss	724		—		(652		)	72
Balance as of January 31, 2020	$	31,749	$	4,861	$	(4,489	)	$	32,121



(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 (income) loss before reclassifications	(3,431		)	—		5,490			2,059
Amounts reclassified from AOCL	—			—		(1,481		)	(1,481		)
Net current period other comprehensive (income) loss	(3,431		)	—		4,009			578
Balance as of February 1, 2019	$	26,280		$	561	$	(2,326	)	$	24,515

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 17, Derivative Instruments and Hedging Activities.

Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Jan. 31, 2020	Feb. 01, 2019
Statement of Comprehensive Income [Abstract]
Derivative instruments, tax	$ 189	$ (1,352)

Indebtedness - Summary of Debt (Details) - USD ($)	Jan. 31, 2020	Oct. 31, 2019	Feb. 01, 2019	Jun. 30, 1997
Debt Instrument [Line Items]
Less: unamortized discounts, debt issuance costs, and deferred charges	$ (3,012,000)	$ (3,103,000)	$ (2,318,000)
Total long-term debt	714,919,000	700,813,000	312,551,000
Less: current portion of long-term debt	(113,903,000)	(79,914,000)	0
Long-term debt, less current portion	601,016,000	620,899,000	312,551,000
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	123,931,000	123,916,000	123,869,000
Total long-term debt				$ 100,000,000.0
Senior Notes \| $200 million term loan
Debt Instrument [Line Items]
Long-term debt, gross	100,000,000	100,000,000
Senior Notes \| $300 million term loan
Debt Instrument [Line Items]
Long-term debt, gross	180,000,000	180,000,000
Less: current portion of long-term debt	(99,900,000)
Senior Notes \| 3.81% series A senior notes
Debt Instrument [Line Items]
Long-term debt, gross	100,000,000	100,000,000
Senior Notes \| 3.91% series B senior notes
Debt Instrument [Line Items]
Long-term debt, gross	100,000,000	100,000,000
Line of Credit
Debt Instrument [Line Items]
Long-term debt, gross	$ 14,000,000	$ 0	$ 91,000,000

Leases - Summary of Other Lease Information (Details)	Jan. 31, 2020
Leases [Abstract]
Weighted-average remaining lease term of operating leases in years	6 years 2 months 12 days
Weighted-average discount rate of operating leases	2.81%

Stockholders' Equity - Components and Activity of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Jan. 31, 2020	Feb. 01, 2019
Components and activity of accumulated other comprehensive loss
Balance as of the beginning of the fiscal period	$ (859,578)	$ (668,916)
Other comprehensive loss before reclassifications	1,609	2,059
Amounts reclassified from AOCL	(1,537)	(1,481)
Net current period other comprehensive (income) loss	72	578
Balance as of the end of the fiscal period	(912,050)	(694,397)
Accumulated Other Comprehensive Loss
Components and activity of accumulated other comprehensive loss
Balance as of the beginning of the fiscal period	32,049	23,937
Net current period other comprehensive (income) loss	72	578
Balance as of the end of the fiscal period	32,121	24,515
Foreign Currency Translation Adjustments
Components and activity of accumulated other comprehensive loss
Balance as of the beginning of the fiscal period	31,025	29,711
Other comprehensive loss before reclassifications	724	(3,431)
Amounts reclassified from AOCL	0	0
Net current period other comprehensive (income) loss	724	(3,431)
Balance as of the end of the fiscal period	31,749	26,280
Pension and Post-Retirement Benefits
Components and activity of accumulated other comprehensive loss
Balance as of the beginning of the fiscal period	4,861	561
Other comprehensive loss before reclassifications	0	0
Amounts reclassified from AOCL	0	0
Net current period other comprehensive (income) loss	0	0
Balance as of the end of the fiscal period	4,861	561
Cash Flow Hedging Derivative Instruments
Components and activity of accumulated other comprehensive loss
Balance as of the beginning of the fiscal period	(3,837)	(6,335)
Other comprehensive loss before reclassifications	885	5,490
Amounts reclassified from AOCL	(1,537)	(1,481)
Net current period other comprehensive (income) loss	(652)	4,009
Balance as of the end of the fiscal period	$ (4,489)	$ (2,326)

Warranty Guarantees

3 Months Ended

Jan. 31, 2020

Product Warranties Disclosures [Abstract]

Warranty Guarantees



10	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. 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.

The company recognizes expense and provides an accrual for estimated future warranty costs at the time of sale and also establishes accruals for major rework campaigns. Warranty accruals are based primarily 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, and the historical length of time between the sale and resulting warranty claim. The company periodically assesses the adequacy of its warranty accruals based on changes in these factors and records any necessary adjustments if actual claims experience indicates that adjustments are necessary. 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
(Dollars in thousands)	January 31, 2020			February 1, 2019
Beginning balance	$	96,604		$	76,214
Provisions	14,031			10,556
Claims	(14,703		)	(10,815		)
Changes in estimates	691			790
Ending balance	$	96,623		$	76,745

Management Actions - Narrative (Details) - Disposal Group, Not Discontinued Operations - Toro Underground Wind Down - USD ($)	3 Months Ended	12 Months Ended
	Jan. 31, 2020	Oct. 31, 2020	Oct. 31, 2019
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal group, inventory write-down	$ 0		$ 10,000,000.0
Accrued liabilities	$ 900,000
Scenario, Forecast \| Minimum
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Income (loss) from individually significant component disposed of or held-for-sale, excluding discontinued operations, attributable to parent, before income tax		$ 10,000,000.0
Scenario, Forecast \| Maximum
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Income (loss) from individually significant component disposed of or held-for-sale, excluding discontinued operations, attributable to parent, before income tax		$ (11,000,000.0)

Subsequent Events

3 Months Ended

Jan. 31, 2020

Subsequent Events [Abstract]

Subsequent Events



19	Subsequent Events

Acquisition of Venture Products, Inc. ("Venture Products")

On January 20, 2020, the company entered into an Agreement and Plan of Merger to acquire Venture Products, Inc., a privately held Ohio corporation and the manufacturer of Ventrac-branded products, and an agreement to purchase the real property used by Venture Products ("Purchase Agreement"), for a total purchase price of $167.5 million in cash, subject to certain customary adjustments. On March 2, 2020 ("Venture Products closing date"), pursuant to the Agreement and Plan of Merger and the Purchase Agreement, the company completed its acquisition of Venture Products. Venture Products designs, manufactures, and markets articulating turf, landscape, and snow and ice management equipment for grounds, landscape contractor, golf, municipal, and rural acreage customers and provides innovative product offerings that broaden and strengthen the company's Professional segment and expands its dealer network.

The Agreement and Plan of Merger was structured as a merger, pursuant to which a wholly-owned subsidiary of the company merged with and into Venture Products, with Venture Products 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 Venture Products were canceled and now only represent the right to receive the applicable consideration as described in the Agreement and Plan of Merger. The separate Purchase Agreement as part of the Venture Products acquisition was with an affiliate of Venture Products and was for the real estate used by Venture Products. The aggregate preliminary consideration was $163.4 million and remains subject to certain customary adjustments based on, among other things, the amount of actual cash, debt, and working capital in the business of Venture Products at the Venture Products closing date. Such customary adjustments are expected to be completed during fiscal 2020. The company funded the acquisition with borrowings under its existing unsecured senior revolving credit facility. Due to the limited time since the Venture Products closing date, at this time it is impracticable for the company to make the additional disclosures required under the accounting standards codification guidance for business combinations as the company is still gathering information necessary to provide such disclosures.

The company has evaluated all additional subsequent events and concluded that no other 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.

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares	3 Months Ended
	Jan. 31, 2020	Feb. 01, 2019
Statement of Stockholders' Equity [Abstract]
Cash dividends paid on common stock (in dollars per share)	$ 0.25	$ 0.225
Issuance of options (in shares)	351,501	537,786
Purchase of shares of common stock (in shares)	17,740	391,900

Business Combinations

3 Months Ended

Jan. 31, 2020

Business Combinations [Abstract]

Business Combinations



2	Business Combinations

The Charles Machine Works, Inc. ("CMW")

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 markets a range of professional products to serve the underground construction market, including horizontal directional drills, walk and ride trenchers, compact utility loaders/skid steers, vacuum excavators, asset locators, pipe rehabilitation solutions, and after-market tools. CMW provides innovative product offerings that broadened and strengthened the company's Professional segment product portfolio and expanded 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. At the closing date, the company paid preliminary merger consideration of $679.3 million that was 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. During the fourth quarter of fiscal 2019, the company finalized such cash, debt and working capital adjustments and these adjustments resulted in an aggregate merger consideration of $685.0 million ("purchase price"). The company funded the 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 under 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. As a result of the acquisition, the company incurred approximately $10.2 million of acquisition-related transaction costs, all of which were incurred during the fiscal year ended October 31, 2019 and recorded within selling, general and administrative expense within the Consolidated Statements of Earnings for such fiscal period.

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. As of January 31, 2020, the company has substantially completed its process for measuring the fair values of the assets acquired and liabilities assumed based on information available as of the closing date, with the exception of the company's valuation of income taxes as the company requires additional information to finalize its valuation of income taxes. Thus, the preliminary measurements of fair value reflected for income taxes are subject to change as additional information becomes available and as additional analysis is performed. The company expects to finalize its preliminary valuation of income taxes and complete the allocation of the purchase price during its fiscal 2020 second quarter, but no later than one year from the closing date of the acquisition, as required.

The following table summarizes the allocation of the purchase price to the fair values assigned to the CMW assets acquired and liabilities assumed. These fair values are based on internal company and independent external third-party valuations:



(Dollars in thousands)	April 1, 2019
Cash and cash equivalents	$	16,341
Receivables	65,674
Inventories	241,429
Prepaid expenses and other current assets	9,218
Property, plant and equipment	142,779
Goodwill	135,521
Other intangible assets	264,190
Other long-term assets	7,971
Accounts payable	(36,655		)
Accrued liabilities	(52,258		)
Deferred income tax liabilities	(86,231		)
Other long-term liabilities	(6,665		)
Total fair value of net assets acquired	701,314
Less: cash and cash equivalents acquired	(16,341		)
Total purchase price	$	684,973

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, components, parts, accessories, supply chain consolidation, and administrative efficiencies. The goodwill resulting from the acquisition of CMW was recognized within the company's Professional segment and is the primary driver for the increase in the company's Professional segment goodwill to $350.1 million as of January 31, 2020 from $215.0 million as of February 1, 2019. No changes were made to the carrying amount of goodwill related to the company's acquisition of CMW from the amounts reported within the Company's Annual Report on Form 10-K for the fiscal year ended October 31, 2019. Goodwill is mostly non-deductible for tax purposes.

Other Intangible Assets Acquired

The allocation of the purchase price to the net assets acquired resulted in the recognition of $264.2 million of other intangible assets as of the closing date. The fair values of the acquired trade name, customer-related, developed technology and backlog intangible assets were determined 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 fair values of the trade names were determined 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 fair values of the customer-related, developed technology, and backlog intangible assets were determined using the excess earnings method and were based on the expected operating cash flows attributable to the respective other intangible asset, which were determined by deducting expected economic costs, including operating expenses and contributory asset charges, from revenue expected to be generated from the respective other intangible asset. The useful lives of the other intangible assets were determined based on the period of expected cash flows used to measure the 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.

The fair values of the other intangible assets acquired on the closing date, related accumulated amortization from the closing date through January 31, 2020, and weighted-average useful lives were as follows:



(Dollars in thousands)	Weighted-Average Useful Life	Gross Carrying Amount		Accumulated Amortization			Net
Customer-related	18.3	$	130,800	$	(7,193	)	$	123,607
Developed technology	7.8	20,900		(2,885		)	18,015
Trade names	20.0	5,200		(216		)	4,984
Backlog	0.5	3,590		(3,590		)	—
Total definite-lived	16.6	160,490		(13,884		)	146,606
Indefinite-lived - trade names		103,700		—			103,700
Total other intangible assets, net		$	264,190	$	(13,884	)	$	250,306

Amortization expense for the definite-lived intangible assets resulting from the acquisition of CMW for the three months ended January 31, 2020 was $3.1 million. Estimated amortization expense for the remainder of fiscal 2020 and succeeding fiscal years is as follows: fiscal 2020 (remainder), $9.4 million; fiscal 2021, $12.6 million; fiscal 2022, $11.5 million; fiscal 2023, $10.1 million; fiscal 2024, $9.4 million; fiscal 2025, $7.7 million; and after fiscal 2025, $85.9 million.

Results of Operations

CMW's results of operations are included within the company's Professional reportable segment in the company's Condensed Consolidated Financial Statements. During the three month period ended January 31, 2020, the company recognized $160.9 million of net sales and $9.4 million of segment earnings from CMW's operations, respectively.

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 month periods ended January 31, 2020 and February 1, 2019 have been adjusted to exclude the pro forma impact of the take-down of the inventory fair value step-up amount and amortization of the backlog intangible asset; include the pro forma impact of amortization of other intangible assets, excluding backlog, based on the purchase price allocations and useful lives; include the pro forma impact of the depreciation of property, plant, and equipment based on the purchase price allocations and 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 unaudited pro forma financial information related to the company's acquisition of CMW:



	Three Months Ended
(Dollars in thousands, except per share data)	January 31, 2020		February 1, 2019
Net sales	$	767,483	$	777,537
Net earnings	70,561		56,515
Basic net earnings per share of common stock	0.66		0.53
Diluted net earnings per share of common stock	$	0.65	$	0.52

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.

Indebtedness - Narrative (Details)			1 Months Ended			3 Months Ended
Indebtedness - Narrative (Details)	Apr. 30, 2019 USD ($)	Apr. 26, 2007 USD ($)	Mar. 31, 2019 USD ($)	Jun. 30, 2018 USD ($)	Jun. 30, 1997 USD ($) instrument	Jan. 31, 2020 USD ($)	Feb. 01, 2019 USD ($)	Oct. 31, 2019 USD ($)	Jun. 30, 2019 USD ($)	Jun. 27, 2019 USD ($)	Jun. 01, 2018 USD ($)	May 31, 2018 USD ($)
Debt Instrument [Line Items]
Fiscal 2020 (remainder)						$ 0.0
Fiscal 2021						0.0
Fiscal 2022						9,000,000.0
Fiscal 2023						132,000,000.0
Fiscal 2024						153,000,000.0
Fiscal 2025						0.0
After fiscal 2025						425,000,000.0
Long-term debt						714,919,000	$ 312,551,000	$ 700,813,000
Amortization payment percentage			2.50%
Current portion of long-term debt						(113,903,000)	0	(79,914,000)
Line of Credit
Debt Instrument [Line Items]
Long-term debt, gross						100,000,000	100,000,000	100,000,000
Senior Notes
Debt Instrument [Line Items]
Interest expense, debt						2,100,000	2,100,000
Debt Securities Issued In June1997
Debt Instrument [Line Items]
Debt instrument, face amount					$ 175,000,000.0
6.625% senior notes
Debt Instrument [Line Items]
Debt instrument, term					30 years
Long-term debt, gross						$ 123,931,000	123,869,000	123,916,000
Long-term debt					$ 100,000,000.0
Debt instrument, interest rate, stated percentage					7.80%	7.80%
Interest expense, debt						$ 2,000,000.0	$ 2,000,000
Payment made to terminate interest rate derivatives					$ 23,700,000
Number of interest rate derivatives held \| instrument					3
Derivative, notional amount					$ 125,000,000.0
Deferred income earned on swap balance at termination					$ 18,700,000
Coupon 7.125 Percent Debt Notes
Debt Instrument [Line Items]
Debt instrument, term					10 years
Debt instrument, face amount					$ 75,000,000.0
Debt instrument, interest rate, stated percentage					7.125%
6.625% senior notes
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate		0.30%
Line of Credit
Debt Instrument [Line Items]
Debt instrument, term							5 years
Maximum borrowing capacity under credit facility											$ 600,000,000.0	$ 150,000,000.0
Line of credit facility, maximum borrowing capacity, accordion feature				$ 300,000,000.0
Payments of debt issuance costs				1,900,000
Long-term debt, gross						14,000,000	$ 91,000,000	0
Debt instrument, unused borrowing capacity, amount						584,100,000	507,500,000	598,100,000
Interest expense, debt						100,000	800,000
Senior Notes
Debt Instrument [Line Items]
Payments of debt issuance costs			$ 600,000
Interest expense, debt						1,900,000
Senior Notes \| $200 million term loan
Debt Instrument [Line Items]
Debt instrument, term			3 years
Long-term debt, gross						100,000,000		100,000,000
Debt instrument, face amount			$ 200,000,000.0
Repayments of long-term lines of credit						100,000,000.0
Senior Notes \| $300 million term loan
Debt Instrument [Line Items]
Debt instrument, term			5 years
Long-term debt, gross						180,000,000		180,000,000
Debt instrument, face amount			$ 300,000,000.0
Principal payment requirement term			3 years 3 months
Repayments of long-term lines of credit						120,000,000.0
Current portion of long-term debt						(99,900,000)
Senior Notes \| 3.81% series A senior notes
Debt Instrument [Line Items]
Long-term debt, gross						$ 100,000,000		100,000,000
Debt instrument, face amount	$ 100,000,000.0									$ 100,000,000.0
Debt instrument, interest rate, stated percentage	3.81%					3.81%
Senior Notes \| 3.91% series B senior notes
Debt Instrument [Line Items]
Long-term debt, gross						$ 100,000,000		100,000,000
Debt instrument, face amount	$ 100,000,000.0									$ 100,000,000.0
Debt instrument, interest rate, stated percentage	3.91%					3.91%
Senior Notes \| Series A and Series B Senior Notes
Debt Instrument [Line Items]
Long-term debt, gross						$ 200,000,000.0
Debt issuance costs, gross									$ 700,000
Interest expense, debt						$ 1,900,000
Senior Notes \| Series A and Series B Senior Notes \| Debt Instrument, Redemption, Period One
Debt Instrument [Line Items]
Debt instrument, redemption price, percentage	10.00%
Senior Notes \| Series A and Series B Senior Notes \| Debt Instrument, Redemption, Period Two
Debt Instrument [Line Items]
Debt instrument, redemption price, percentage	100.00%
Senior Notes \| Series A and Series B Senior Notes \| Debt Instrument, Redemption, Period Three
Debt Instrument [Line Items]
Debt instrument, redemption price, percentage	100.00%
Senior Notes \| 6.625% senior notes
Debt Instrument [Line Items]
Debt instrument, face amount		$ 125,000,000.0
Debt instrument, interest rate, stated percentage		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%
Debt instrument, repurchase offer due to change of control and downgrade of notes below an investment grade rating, percentage of principal						101.00%
Standby Letters of Credit \| Line of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity under credit facility				10,000,000.0
Long-term debt						$ 1,900,000	$ 1,500,000	$ 1,900,000
Bridge Loan \| Line of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity under credit facility				$ 30,000,000.0

Business Combination - Narrative (Details) - USD ($) $ in Thousands		3 Months Ended			12 Months Ended
	Apr. 01, 2019	Jan. 31, 2020	Oct. 31, 2019	Feb. 01, 2019	Oct. 31, 2019
Business Acquisition [Line Items]
Goodwill		$ 362,136	$ 362,253	$ 227,091	$ 362,253
Amortization of other intangible assets		4,700		1,800
Fiscal 2020 (remainder)		14,000
Fiscal 2021		18,300
Fiscal 2022		17,000
Fiscal 2023		15,300
Fiscal 2024		14,300
Fiscal 2025		12,600
After 2025		121,800
The Charles Machine Works, Inc.
Business Acquisition [Line Items]
Total purchase price	$ 684,973		685,000
Goodwill	135,521
Other intangible assets	264,190
Amortization of other intangible assets		3,100
Fiscal 2020 (remainder)		9,400
Fiscal 2021		12,600
Fiscal 2022		11,500
Fiscal 2023		10,100
Fiscal 2024		9,400
Fiscal 2025		7,700
After 2025		85,900
Revenue of acquiree since acquisition date		160,900
Business combination, pro forma information, earnings (loss) of acquiree since acquisition date, actual		9,400
Business Combination, Acquisition Related Costs					10,200
Operating Segments \| Professional
Business Acquisition [Line Items]
Goodwill		350,134	$ 350,250		$ 350,250
Operating Segments \| Professional \| The Charles Machine Works, Inc.
Business Acquisition [Line Items]
Goodwill		$ 350,100		$ 215,000
Previously Reported \| The Charles Machine Works, Inc.
Business Acquisition [Line Items]
Total purchase price	$ 679,300

Basis of Presentation (Policies)

3 Months Ended

Jan. 31, 2020

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," "TTC," "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 three months ended January 31, 2020 cannot be annualized to determine the expected results for the fiscal year ending October 31, 2020.

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.

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, 2019. The policies described in that report are used for preparing the company's quarterly reports on Form 10-Q.

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, legal accruals, inventory valuation and reserves, 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

In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842) ("ASU 2016-02"), which, among other things, requires lessees to recognize most leases on-balance sheet. The standard requires the recognition of right-of-use assets and lease liabilities by lessees for those leases classified as operating leases under legacy accounting guidance at Accounting Standards Codification ("ASC") Topic 840, Leases. The standard also requires a greater level of quantitative and qualitative disclosures regarding the nature of the entity’s leasing activities than were previously required under U.S. GAAP. In January 2018, the FASB issued ASU No. 2018-01, Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842, which provides an optional transition practical expedient to not evaluate existing or expired land easements under the amended lease guidance. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842 (Leases), which provides narrow amendments to clarify how to apply certain aspects of the new lease standard. Additionally, in July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements, which provides an alternative transition method that permits an entity to use the effective date of ASU No. 2016-02 as the date of initial application through the recognition of a cumulative effect adjustment to the opening balance of retained earnings upon adoption. Consequently,

an entity's reporting for the comparative periods presented in the financial statements in which it adopts the new lease standard will continue to be in accordance with previous U.S. GAAP under ASC Topic 840, Leases.

ASU No. 2016-02, as augmented by ASU No. 2018-01, ASU No. 2018-10, and ASU No. 2018-11 (the "amended guidance"), was adopted by the company on November 1, 2019, the first quarter of fiscal 2020, under the modified retrospective transition method with no cumulative-effect adjustment to beginning retained earnings within the Condensed Consolidated Balance Sheet as of such date. Under such transition method, the company elected the following practical expedients:


•	The transition package of practical expedients, which among other things, allows the company to carryforward the historical lease classification determined under previous U.S. GAAP.


•	The transition practical expedient to not reassess the company's accounting for land easements that exist as of the adoption of the amended guidance.


•	The short-term lease exemption to not record right-of-use assets and lease liabilities on the Condensed Consolidated Balance Sheet for leases with an initial lease term of 12 months or less, which has resulted in recognizing the lease payments related to such leases within the company's Condensed Consolidated Statements of Earnings on a straight-line basis over the lease term.

The company did not elect the transition practical expedient to use hindsight in determining the lease term and in assessing the impairment of right-of-use assets.

Upon adoption of the amended guidance, the company recorded $78.1 million of right-of-use assets and $77.1 million of corresponding lease liabilities within the Condensed Consolidated Balance Sheet as of November 1, 2019. The adoption of the standard did not have a material impact on the company's Condensed Consolidated Statements of Earnings, Condensed Consolidated Statements of Cash Flows, business processes, internal controls, and information systems. As permitted under the amended guidance, prior period amounts were not restated, but will continue to be reported under the legacy accounting guidance that was in effect for the respective prior periods.

In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting, which amends ASC 718, Compensation - Stock Compensation, to include share-based payment transactions for acquiring goods and services from nonemployees. The standard requires that most of the guidance related to stock compensation granted to employees be followed for nonemployees, including the measurement date, valuation approach, and performance conditions. The amended guidance was adopted in the first quarter of fiscal 2020 and did not have a material impact on the company's Condensed Consolidated Financial Statements.

Goodwill and Other Intangible Assets, Net - Components of Other Intangible Assets (Details) - USD ($) $ in Thousands		3 Months Ended
	Oct. 31, 2019	Jan. 31, 2020	Feb. 01, 2019
Other Intangible Assets
Weighted-Average Useful Life	15 years 6 months	15 years 6 months	14 years 2 months 12 days
Gross Carrying Amount	$ 309,285	$ 309,254	$ 149,046
Accumulated Amortization	(91,223)	(95,937)	(75,671)
Net	218,062	213,317	73,375
Indefinite-lived - trade names	134,312	134,326	30,642
Total other intangible assets, gross	443,597	443,580	179,688
Total other intangible assets, net	$ 352,374	347,643	104,017
Estimated amortization expense
Amortization of other intangible assets		4,700	$ 1,800
Fiscal 2020 (remainder)		14,000
Fiscal 2021		18,300
Fiscal 2022		17,000
Fiscal 2023		15,300
Fiscal 2024		14,300
Fiscal 2025		12,600
After 2025		$ 121,800
Patents
Other Intangible Assets
Weighted-Average Useful Life	9 years 10 months 24 days	9 years 10 months 24 days	9 years 10 months 24 days
Gross Carrying Amount	$ 18,230	$ 18,238	$ 18,255
Accumulated Amortization	(13,102)	(13,307)	(12,524)
Net	$ 5,128	$ 4,931	$ 5,731
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	$ 6,868	$ 6,875	$ 6,891
Accumulated Amortization	(6,786)	(6,798)	(6,794)
Net	$ 82	$ 77	$ 97
Customer-related
Other Intangible Assets
Weighted-Average Useful Life	18 years 4 months 24 days	18 years 4 months 24 days	18 years 6 months
Gross Carrying Amount	$ 220,390	$ 220,364	$ 89,702
Accumulated Amortization	(33,547)	(36,970)	(24,929)
Net	$ 186,843	$ 183,394	$ 64,773
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	$ 51,911	$ 51,902	$ 31,079
Accumulated Amortization	(31,289)	(32,264)	(28,774)
Net	$ 20,622	$ 19,638	$ 2,305
Trade names
Other Intangible Assets
Weighted-Average Useful Life	15 years 4 months 24 days	15 years 4 months 24 days	5 years
Gross Carrying Amount	$ 7,496	$ 7,485	$ 2,319
Accumulated Amortization	(2,109)	(2,208)	(1,850)
Net	$ 5,387	$ 5,277	$ 469
Backlog and other
Other Intangible Assets
Weighted-Average Useful Life	7 months 6 days	7 months 6 days	1 year
Gross Carrying Amount	$ 4,390	$ 4,390	$ 800
Accumulated Amortization	(4,390)	(4,390)	(800)
Net	$ 0	$ 0	$ 0

Fair Value Measurements

3 Months Ended

Jan. 31, 2020

Fair Value Disclosures [Abstract]

Fair Value Measurements



18	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 such 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 month periods ended January 31, 2020 and February 1, 2019, or the fiscal year ended October 31, 2019.

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 January 31, 2020, February 1, 2019, and October 31, 2019, according to the valuation technique utilized to determine their fair values:



(Dollars in thousands)			Fair Value Measurements Using Inputs Considered as:
January 31, 2020	Fair Value		Level 1		Level 2		Level 3
Assets:
Forward currency contracts	$	12,676	$	—	$	12,676	$	—
Total assets	$	12,676	$	—	$	12,676	$	—



(Dollars in thousands)			Fair Value Measurements Using Inputs Considered as:
February 1, 2019	Fair Value		Level 1		Level 2		Level 3
Assets:
Forward currency contracts	$	5,836	$	—	$	5,836	$	—
Total assets	$	5,836	$	—	$	5,836	$	—

Liabilities:
Forward currency contracts	$	33	$	—	$	33	$	—
Total liabilities	$	33	$	—	$	33	$	—



(Dollars in thousands)			Fair Value Measurements Using Inputs Considered as:
October 31, 2019	Fair Value		Level 1		Level 2		Level 3
Assets:
Forward currency contracts	$	10,898	$	—	$	10,898	$	—
Total assets	$	10,898	$	—	$	10,898	$	—

Liabilities:
Forward currency contracts	$	9	$	—	$	9	$	—
Total liabilities	$	9	$	—	$	9	$	—

Nonrecurring Fair Value Measurements

The company measures certain assets and liabilities at fair value on a nonrecurring 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 nonrecurring fair value measurement of the assets acquired and liabilities assumed, refer to Note 2, Business Combinations.

Other Fair Value Disclosures

The carrying amounts 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.

As of January 31, 2020 and October 31, 2019, the company's long-term debt included $423.9 million of fixed-rate debt that is not subject to variable interest rate fluctuations. The fair value of such long-term debt is determined using Level 2 inputs by discounting the projected cash flows based on quoted market rates at which similar amounts of debt could currently be borrowed. As of January 31, 2020, the estimated fair value of long-term debt with fixed interest rates was $513.7 million compared to its carrying amount of $423.9 million. As of October 31, 2019, the estimated fair value of long-term debt with fixed interest rates was $493.8 million compared to its carrying amount of $423.9 million.

- 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

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Jan. 31, 2020	Oct. 31, 2019	Feb. 01, 2019
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)	106,977,274	106,742,082	105,746,538
Common stock, outstanding (in shares)	106,977,274	106,742,082	105,746,538
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

Per Share Data (Tables)

3 Months Ended

Jan. 31, 2020

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
(Shares in thousands)	January 31, 2020	February 1, 2019
Basic
Weighted-average number of shares of common stock	107,380	106,216
Assumed issuance of contingent shares	43	42
Weighted-average number of shares of common stock and assumed issuance of contingent shares	107,423	106,258

Diluted
Weighted-average number of shares of common stock and assumed issuance of contingent shares	107,423	106,258
Effect of dilutive securities	1,232	1,523
Weighted-average number of shares of common stock, assumed issuance of contingent shares, and effect of dilutive securities	108,655	107,781

Revenue (Tables)

3 Months Ended

Jan. 31, 2020

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

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



Three Months Ended January 31, 2020	Professional		Residential		Other		Total
Revenue by product type:
Equipment	$	523,909	$	152,458	$	5,525	$	681,892
Irrigation	70,812		13,390		1,389		85,591
Total net sales	$	594,721	$	165,848	$	6,914	$	767,483

Revenue by geographic market:
United States	$	454,396	$	130,338	$	6,914	$	591,648
Foreign Countries	140,325		35,510		—		175,835
Total net sales	$	594,721	$	165,848	$	6,914	$	767,483



Three Months Ended February 1, 2019	Professional		Residential		Other		Total
Revenue by product type:
Equipment	$	387,550	$	133,510	$	1,969	$	523,029
Irrigation	67,456		11,648		823		79,927
Total net sales	$	455,006	$	145,158	$	2,792	$	602,956

Revenue by geographic market:
United States	$	348,104	$	110,515	$	2,792	$	461,411
Foreign Countries	106,902		34,643		—		141,545
Total net sales	$	455,006	$	145,158	$	2,792	$	602,956

Subsequent Events Subsequent Events - Narrative (Details) - Subsequent Event $ in Millions	1 Months Ended
	Mar. 02, 2020 USD ($)
Venture Products, Inc
Subsequent Event [Line Items]
Payments to acquire businesses, gross	$ 167.5
Venture Products, Inc Affiliate
Subsequent Event [Line Items]
Total purchase price	$ 163.4

Derivative Instruments and Hedging Activities (Tables)

3 Months Ended

Jan. 31, 2020

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)	January 31, 2020		February 1, 2019		October 31, 2019
Derivative assets:
Derivatives designated as cash flow hedging instruments:
Prepaid expenses and other current assets
Forward currency contracts	$	9,244	$	4,333	$	8,642
Derivatives not designated as cash flow hedging instruments:
Prepaid expenses and other current assets
Forward currency contracts	3,432		1,503		2,256
Total assets	$	12,676	$	5,836	$	10,898

Derivative liabilities:
Derivatives designated as cash flow hedging instruments:
Accrued liabilities
Forward currency contracts	$	—	$	30	$	—
Derivatives not designated as cash flow hedging instruments:
Accrued liabilities
Forward currency contracts	—		3		9
Total liabilities	$	—	$	33	$	9

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

The following table presents 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)	January 31, 2020			February 1, 2019			October 31, 2019
Derivative assets:
Forward currency contracts:
Gross amounts of recognized assets	$	12,841		$	5,837		$	11,056
Gross liabilities offset in the Condensed Consolidated Balance Sheets	(165		)	(1		)	(158		)
Net amounts of assets presented in the Condensed Consolidated Balance Sheets	$	12,676		$	5,836		$	10,898

Derivative liabilities:
Forward currency contracts:
Gross amounts of recognized liabilities	$	—		$	(33	)	$	(9	)
Gross assets offset in the Condensed Consolidated Balance Sheets	—			—			—
Net amounts of liabilities presented in the Condensed Consolidated Balance Sheets	$	—		$	(33	)	$	(9	)

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



	Three Months Ended
	Gain Reclassified from AOCL into Earnings				Gain (Loss) Recognized in OCI on Derivatives
(Dollars in thousands)	January 31, 2020		February 1, 2019		January 31, 2020		February 1, 2019
Derivatives designated as cash flow hedging instruments:
Forward currency contracts:
Net sales	$	1,205	$	1,238	$	584	$	(3,481	)
Cost of sales	332		243		68		(528		)
Total derivatives designated as cash flow hedging instruments	$	1,537	$	1,481	$	652	$	(4,009	)



	Gain Recognized in Earnings on Cash Flow Hedging Instruments
(Dollars in thousands)	January 31, 2020					February 1, 2019
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	$	767,483	$	(479,395	)	$	602,956	$	(387,339	)
Gain on derivatives designated as cash flow hedging instruments:
Forward currency contracts:
Amount of gain reclassified from AOCL into earnings	1,205		332			1,238		243
Gain on components excluded from effectiveness testing recognized in earnings based on changes in fair value	$	660	$	11		$	1,223	$	62

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



	Three Months Ended
(Dollars in thousands)	January 31, 2020		February 1, 2019
Gain (loss) on derivatives not designated as cash flow hedging instruments
Forward currency contracts:
Other income, net	$	220	$	(1,063	)
Total gain (loss) on derivatives not designated as cash flow hedging instruments	$	220	$	(1,063	)

Derivative Instruments and Hedging Activities - Effects of Master Netting Arrangements (Details) - USD ($) $ in Thousands	Jan. 31, 2020	Oct. 31, 2019	Feb. 01, 2019
Derivative assets:
Net amounts of assets presented in the Consolidated Balance Sheets	$ 12,676	$ 10,898	$ 5,836
Derivative liabilities:
Net amounts of liabilities presented in the Consolidated Balance Sheets	0	(9)	(33)
Forward currency contracts
Derivative assets:
Gross amounts of recognized assets	12,841	11,056	5,837
Gross liabilities offset in the balance sheets	(165)	(158)	(1)
Net amounts of assets presented in the Consolidated Balance Sheets	12,676	10,898	5,836
Derivative liabilities:
Gross amounts of recognized liabilities	0	(9)	(33)
Gross assets offset in the balance sheets	0	0	0
Net amounts of liabilities presented in the Consolidated Balance Sheets	$ 0	$ (9)	$ (33)

Warranty Guarantees - Schedule of Changes in Accrued Warranties (Details) - USD ($) $ in Thousands	3 Months Ended
	Jan. 31, 2020	Feb. 01, 2019
Warranty provisions, claims, and changes in estimates
Beginning balance	$ 96,604	$ 76,214
Provisions	14,031	10,556
Claims	(14,703)	(10,815)
Changes in estimates	691	790
Ending balance	$ 96,623	$ 76,745

Property and Depreciation (Tables)

3 Months Ended

Jan. 31, 2020

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property, plant and equipment was as follows:



(Dollars in thousands)	January 31, 2020		February 1, 2019		October 31, 2019
Land and land improvements	$	55,602	$	40,475	$	55,613
Buildings and leasehold improvements	276,705		213,927		276,556
Machinery and equipment	450,321		351,390		453,314
Tooling	216,541		215,902		226,870
Computer hardware and software	94,385		83,555		94,409
Construction in process	58,056		45,391		34,937
Property, plant, and equipment, gross	1,151,610		950,640		1,141,699
Less: accumulated depreciation	720,357		671,370		704,382
Property, plant, and equipment, net	$	431,253	$	279,270	$	437,317

Segment Data - Summarized Financial Information of Reportable Segments (Details) - USD ($) $ in Thousands	3 Months Ended
	Jan. 31, 2020	Feb. 01, 2019	Oct. 31, 2019
Financial information concerning reportable segments
Revenues	$ 767,483	$ 602,956
Earnings (loss) before income taxes	86,139	70,020
Assets	2,491,609	1,622,814	$ 2,330,547
Operating Segments \| Professional
Financial information concerning reportable segments
Revenues	594,721	455,006
Earnings (loss) before income taxes	102,474	87,978
Assets	1,853,739	959,768
Operating Segments \| Residential
Financial information concerning reportable segments
Revenues	165,848	145,158
Earnings (loss) before income taxes	21,566	13,072
Assets	324,089	235,520
Intersegment gross sales (eliminations)
Financial information concerning reportable segments
Revenues	(8,798)	(13,708)
Intersegment gross sales (eliminations) \| Professional
Financial information concerning reportable segments
Revenues	8,771	13,609
Intersegment gross sales (eliminations) \| Residential
Financial information concerning reportable segments
Revenues	27	99
Other
Financial information concerning reportable segments
Revenues	6,914	2,792
Earnings (loss) before income taxes	(37,901)	(31,030)
Assets	$ 313,781	$ 427,526

Inventories - Schedule of Inventory (Details) - USD ($) $ in Thousands	Jan. 31, 2020	Oct. 31, 2019	Feb. 01, 2019
Inventory Disclosure [Abstract]
Raw materials and work in process	$ 188,235	$ 179,967	$ 124,458
Finished goods and service parts	632,796	553,767	364,393
Total FIFO value	821,031	733,734	488,851
Less: adjustment to LIFO value	82,071	82,071	72,201
Total inventories, net	$ 738,960	$ 651,663	$ 416,650

Basis of Presentation

3 Months Ended

Jan. 31, 2020

Accounting Policies [Abstract]

Basis of Presentation



1	Basis of Presentation

Accounting Policies

New Accounting Pronouncements Adopted


•	The transition package of practical expedients, which among other things, allows the company to carryforward the historical lease classification determined under previous U.S. GAAP.


•	The transition practical expedient to not reassess the company's accounting for land easements that exist as of the adoption of the amended guidance.


•	The short-term lease exemption to not record right-of-use assets and lease liabilities on the Condensed Consolidated Balance Sheet for leases with an initial lease term of 12 months or less, which has resulted in recognizing the lease payments related to such leases within the company's Condensed Consolidated Statements of Earnings on a straight-line basis over the lease term.

The company did not elect the transition practical expedient to use hindsight in determining the lease term and in assessing the impairment of right-of-use assets.

Warranty Guarantees (Tables)

3 Months Ended

Jan. 31, 2020

Product Warranties Disclosures [Abstract]

Schedule of Warranty Provisions, Claims, and Changes in Estimates

The changes in accrued warranties were as follows:



	Three Months Ended
(Dollars in thousands)	January 31, 2020			February 1, 2019
Beginning balance	$	96,604		$	76,214
Provisions	14,031			10,556
Claims	(14,703		)	(10,815		)
Changes in estimates	691			790
Ending balance	$	96,623		$	76,745

Stock-Based Compensation - Performance Share Awards and Restricted Stock and Restricted Stock Unit Awards (Details) - $ / shares	3 Months Ended
	Jan. 31, 2020	Feb. 01, 2019
Restricted stock and restricted stock unit awards
Stock-Based Compensation
Vesting period	3 years
Weighted-average fair value of awards granted (in dollars per share)	$ 77.08	$ 58.53
Performance share awards
Stock-Based Compensation
Performance goal period	3 years
Weighted-average fair value of awards granted (in dollars per share)	$ 77.33	$ 59.58
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%
Tranche One \| Restricted stock and restricted stock unit awards
Stock-Based Compensation
Vesting (as a percent)	33.33%
Tranche Two \| Restricted stock and restricted stock unit awards
Stock-Based Compensation
Vesting (as a percent)	33.33%
Tranche Three \| Restricted stock and restricted stock unit awards
Stock-Based Compensation
Vesting (as a percent)	33.33%

Property and Depreciation - Summary (Details) - USD ($) $ in Thousands	Jan. 31, 2020	Oct. 31, 2019	Feb. 01, 2019
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross	$ 1,151,610	$ 1,141,699	$ 950,640
Less: accumulated depreciation	720,357	704,382	671,370
Property, plant, and equipment, net	431,253	437,317	279,270
Land and land improvements
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross	55,602	55,613	40,475
Buildings and leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross	276,705	276,556	213,927
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross	450,321	453,314	351,390
Tooling
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross	216,541	226,870	215,902
Computer hardware and software
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross	94,385	94,409	83,555
Construction in process
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross	$ 58,056	$ 34,937	$ 45,391

Business Combinations (Tables)

3 Months Ended

Jan. 31, 2020

Business Combinations [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed



(Dollars in thousands)	April 1, 2019
Cash and cash equivalents	$	16,341
Receivables	65,674
Inventories	241,429
Prepaid expenses and other current assets	9,218
Property, plant and equipment	142,779
Goodwill	135,521
Other intangible assets	264,190
Other long-term assets	7,971
Accounts payable	(36,655		)
Accrued liabilities	(52,258		)
Deferred income tax liabilities	(86,231		)
Other long-term liabilities	(6,665		)
Total fair value of net assets acquired	701,314
Less: cash and cash equivalents acquired	(16,341		)
Total purchase price	$	684,973

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



(Dollars in thousands)	Weighted-Average Useful Life	Gross Carrying Amount		Accumulated Amortization			Net
Customer-related	18.3	$	130,800	$	(7,193	)	$	123,607
Developed technology	7.8	20,900		(2,885		)	18,015
Trade names	20.0	5,200		(216		)	4,984
Backlog	0.5	3,590		(3,590		)	—
Total definite-lived	16.6	160,490		(13,884		)	146,606
Indefinite-lived - trade names		103,700		—			103,700
Total other intangible assets, net		$	264,190	$	(13,884	)	$	250,306

Business Acquisition, Pro Forma Information

The following table presents unaudited pro forma financial information related to the company's acquisition of CMW:



	Three Months Ended
(Dollars in thousands, except per share data)	January 31, 2020		February 1, 2019
Net sales	$	767,483	$	777,537
Net earnings	70,561		56,515
Basic net earnings per share of common stock	0.66		0.53
Diluted net earnings per share of common stock	$	0.65	$	0.52

Segment Data

3 Months Ended

Jan. 31, 2020

Segment Reporting [Abstract]

Segment Data



3	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 identified ten operating segments and has aggregated certain of those segments into two reportable segments: Professional and Residential. The aggregation of the company's segments is based on the 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 summarized financial information concerning the company’s reportable segments and Other activities:



(Dollars in thousands)
Three Months Ended January 31, 2020	Professional		Residential		Other			Total
Net sales	$	594,721	$	165,848	$	6,914		$	767,483
Intersegment gross sales (eliminations)	8,771		27		(8,798		)	—
Earnings (loss) before income taxes	102,474		21,566		(37,901		)	86,139
Total assets	$	1,853,739	$	324,089	$	313,781		$	2,491,609



(Dollars in thousands)
Three Months Ended February 1, 2019	Professional		Residential		Other			Total
Net sales	$	455,006	$	145,158	$	2,792		$	602,956
Intersegment gross sales (eliminations)	13,609		99		(13,708		)	—
Earnings (loss) before income taxes	87,978		13,072		(31,030		)	70,020
Total assets	$	959,768	$	235,520	$	427,526		$	1,622,814

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



	Three Months Ended
(Dollars in thousands)	January 31, 2020			February 1, 2019
Corporate expenses	$	(32,442	)	$	(28,314	)
Interest expense	(8,156		)	(4,742		)
Earnings from wholly-owned domestic distribution companies and other income, net	2,697			2,026
Total operating loss	$	(37,901	)	$	(31,030	)

Fair Value Measurements (Tables)

3 Months Ended

Jan. 31, 2020

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:
January 31, 2020	Fair Value		Level 1		Level 2		Level 3
Assets:
Forward currency contracts	$	12,676	$	—	$	12,676	$	—
Total assets	$	12,676	$	—	$	12,676	$	—



(Dollars in thousands)			Fair Value Measurements Using Inputs Considered as:
February 1, 2019	Fair Value		Level 1		Level 2		Level 3
Assets:
Forward currency contracts	$	5,836	$	—	$	5,836	$	—
Total assets	$	5,836	$	—	$	5,836	$	—

Liabilities:
Forward currency contracts	$	33	$	—	$	33	$	—
Total liabilities	$	33	$	—	$	33	$	—



(Dollars in thousands)			Fair Value Measurements Using Inputs Considered as:
October 31, 2019	Fair Value		Level 1		Level 2		Level 3
Assets:
Forward currency contracts	$	10,898	$	—	$	10,898	$	—
Total assets	$	10,898	$	—	$	10,898	$	—

Liabilities:
Forward currency contracts	$	9	$	—	$	9	$	—
Total liabilities	$	9	$	—	$	9	$	—

Leases - Supplemental Cash Flow and Other Lease Information (Details) $ in Thousands	3 Months Ended
	Jan. 31, 2020 USD ($)
Supplemental cash flow information:
Operating cash flows for amounts included in the measurement of lease liabilities	$ 4,741
Right-of-use assets obtained in exchange for lease obligations	$ 6,133

Per Share Data - Reconciliations of Basic and Diluted Weighted-Average Share (Details) - shares	3 Months Ended
	Jan. 31, 2020	Feb. 01, 2019
Basic
Weighted-average number of shares of common stock (in shares)	107,380,000	106,216,000
Assumed issuance of contingent shares (in shares)	43,000	42,000
Weighted-average number of shares of common stock and assumed issuance of contingent shares (in shares)	107,423,000	106,258,000
Diluted
Weighted-average number of shares of common stock and assumed issuance of contingent shares (in shares)	107,423,000	106,258,000
Effect of dilutive securities (in shares)	1,232,000	1,523,000
Weighted-average number of shares of common stock, assumed issuance of contingent shares, and effect of dilutive securities (in shares)	108,655,000	107,781,000
Options, restricted stock, and restricted stock units, excluded from the diluted earnings per share (in shares)	262,205	786,262