0000737758-21-000030 | 10-K | XBRL Viewer

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Cover Page - USD ($) $ in Billions	12 Months Ended
Cover Page - USD ($) $ in Billions	Oct. 31, 2021	Dec. 10, 2021	Apr. 30, 2021
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Oct. 31, 2021
Current Fiscal Year End Date	--10-31
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 Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 12.3
Entity Common Stock, Shares Outstanding		104,486,029
Documents Incorporated by Reference	Portions of the registrant's definitive Proxy Statement for the 2022 Annual Meeting of Shareholders expected to be held March 15, 2022 are incorporated by reference into Part III of this Annual Report on Form 10-K.
Entity Central Index Key	0000737758
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	FY

Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Oct. 31, 2021	Oct. 31, 2020	Oct. 31, 2019
Income Statement [Abstract]
Net sales	$ 3,959,584	$ 3,378,810	$ 3,138,084
Cost of sales	2,621,092	2,189,036	2,090,121
Gross profit	1,338,492	1,189,774	1,047,963
Selling, general and administrative expense	820,212	763,417	722,934
Operating earnings	518,280	426,357	325,029
Interest expense	(28,659)	(33,156)	(28,835)
Other income, net	10,197	13,869	25,939
Earnings before income taxes	499,818	407,070	322,133
Provision for income taxes	89,938	77,369	48,150
Net earnings	$ 409,880	$ 329,701	$ 273,983
Basic net earnings per share of common stock (in dollars per share)	$ 3.82	$ 3.06	$ 2.57
Diluted net earnings per share of common stock (in dollars per share)	$ 3.78	$ 3.03	$ 2.53
Weighted-average number of shares of common stock outstanding – Basic (in shares)	107,341	107,658	106,773
Weighted-average number of shares of common stock outstanding – Diluted (in shares)	108,473	108,663	108,090

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2021	Oct. 31, 2020	Oct. 31, 2019
Statement of Comprehensive Income [Abstract]
Net earnings	$ 409,880	$ 329,701	$ 273,983
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	4,973	6,517	(1,314)
Derivative instruments, net of tax of $736, $(2,782), and $(862), respectively	2,086	(8,485)	(2,498)
Pension benefits, net of tax of $41, $45, and $(1,305), respectively	1,207	(245)	(4,300)
Other comprehensive income (loss), net of tax	8,266	(2,213)	(8,112)
Comprehensive income	$ 418,146	$ 327,488	$ 265,871

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2021	Oct. 31, 2020	Oct. 31, 2019
Statement of Comprehensive Income [Abstract]
Derivative instruments, tax	$ 736	$ (2,782)	$ (862)
Pension benefits, tax	$ 41	$ 45	$ (1,305)

Consolidated Balance Sheets - USD ($) $ in Thousands	Oct. 31, 2021	Oct. 31, 2020
ASSETS
Cash and cash equivalents	$ 405,612	$ 479,892
Receivables, net:
Customers, net of allowances (2021 - $3,056; 2020 - $4,586)	252,757	223,105
Receivables from finance affiliate	30,981	12,619
Other	26,541	25,411
Total receivables, net	310,279	261,135
Inventories, net	738,170	652,433
Prepaid expenses and other current assets	35,124	34,188
Total current assets	1,489,185	1,427,648
Property, plant and equipment, net	487,731	467,919
Goodwill	421,680	424,075
Other intangible assets, net	420,041	408,305
Right-of-use assets	66,990	78,752
Investment in finance affiliate	20,671	19,745
Deferred income taxes	5,800	6,466
Other assets	24,042	20,318
Total assets	2,936,140	2,853,228
LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of long-term debt	0	99,873
Accounts payable	503,116	363,953
Short-term lease liabilities	14,283	15,447
Accrued liabilities:
Warranty	116,783	107,121
Advertising and sales promotions and incentives programs	103,661	98,883
Compensation and benefit costs	108,536	58,789
Insurance	14,497	13,452
Interest	6,092	10,065
Other	70,051	88,214
Total accrued liabilities	419,620	376,524
Total current liabilities	937,019	855,797
Long-term debt, less current portion	691,242	691,250
Long-term lease liabilities	55,752	66,641
Deferred income taxes	50,397	70,435
Other long-term liabilities	50,598	54,277
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
Common stock, par value $1.00 per share, authorized 175,000,000 shares; issued and outstanding 105,205,734 shares as of October 31, 2021 and 107,582,670 shares as of October 31, 2020	105,206	107,583
Retained earnings	1,071,922	1,041,507
Accumulated other comprehensive loss	(25,996)	(34,262)
Total stockholders' equity	1,151,132	1,114,828
Total liabilities and stockholders' equity	$ 2,936,140	$ 2,853,228

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Oct. 31, 2021	Oct. 31, 2020
ASSETS
Customers, allowance for doubtful accounts	$ 3,056	$ 4,586
Preferred stock
Preferred stock, par value (in dollars per share)	$ 1.00	$ 1.00
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Common stock
Common stock, par value (in dollars per share)	$ 1.00	$ 1.00
Common stock, authorized (in shares)	175,000,000	175,000,000
Common stock, issued (in shares)	105,205,734	107,582,670
Common stock, outstanding (in shares)	105,205,734	107,582,670
Voting Preferred Stock
Preferred stock
Preferred stock, authorized (in shares)	1,000,000	1,000,000
Nonvoting Preferred Stock
Preferred stock
Preferred stock, authorized (in shares)	850,000	850,000

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2021	Oct. 31, 2020	Oct. 31, 2019
Cash flows from operating activities:
Net earnings	$ 409,880	$ 329,701	$ 273,983
Adjustments to reconcile net earnings to net cash provided by operating activities:
Non-cash income from finance affiliate	(5,704)	(7,663)	(11,948)
Distributions from finance affiliate, net	4,779	12,066	10,343
Depreciation of property, plant and equipment	75,468	76,108	69,314
Amortization of other intangible assets	23,848	19,507	18,384
Fair value step-up adjustment to acquired inventory	0	3,951	39,368
Stock-based compensation expense	21,809	15,408	13,429
Deferred income taxes	(22,899)	2,269	(6,190)
Other	457	492	6,357
Changes in operating assets and liabilities, net of the effect of acquisitions:
Receivables, net	(52,260)	15,206	(11,042)
Inventories, net	(98,266)	20,963	(104,832)
Prepaid expenses and other assets	2,953	11,828	9,747
Accounts payable, accrued liabilities, and other liabilities	195,404	39,538	30,458
Net cash provided by operating activities	555,469	539,374	337,371
Cash flows from investing activities:
Purchases of property, plant and equipment	(104,012)	(78,068)	(92,881)
Business combinations, net of cash acquired	(24,883)	(138,225)	(697,471)
Asset acquisitions, net of cash acquired	(27,176)	0	0
Proceeds from asset disposals	1,035	216	4,669
Investments in unconsolidated entities	0	0	(200)
Proceeds from sale of a business	26,584	0	12,941
Net cash used in investing activities	(128,452)	(216,077)	(772,942)
Cash flows from financing activities:
Borrowings under debt arrangements	270,000	636,025	900,000
Repayments under debt arrangements	(370,000)	(546,025)	(511,000)
Proceeds from exercise of stock options	13,100	22,198	29,336
Payments of withholding taxes for stock awards	(2,037)	(2,146)	(2,662)
Purchases of TTC common stock	(302,274)	0	(20,043)
Dividends paid on TTC common stock	(112,440)	(107,698)	(96,133)
Net cash (used in) provided by financing activities	(503,651)	2,354	299,498
Effect of exchange rates on cash and cash equivalents	2,354	2,413	(1,223)
Net (decrease) increase in cash and cash equivalents	(74,280)	328,064	(137,296)
Cash and cash equivalents as of the beginning of the fiscal period	479,892	151,828	289,124
Cash and cash equivalents as of the end of the fiscal period	405,612	479,892	151,828
Cash paid during the fiscal year for:
Interest	31,568	34,109	30,167
Income taxes	$ 101,835	$ 69,524	$ 54,738

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Common Stock	Retained Earnings	Retained Earnings Cumulative Effect, Period of Adoption, Adjustment	Accumulated Other Comprehensive Loss
Balance as of the beginning of the fiscal period at Oct. 31, 2018	$ 668,916	$ 864	$ 105,601	$ 587,252	$ 864	$ (23,937)
Increase (Decrease) in Stockholders' Equity
Cash dividends paid on common stock	(96,133)			(96,133)
Issuance of shares for stock options exercised and restricted stock units vested	27,932		1,545	26,387
Stock-based compensation expense	13,429			13,429
Contribution of stock to a deferred compensation trust	1,404			1,404
Purchase of shares of common stock	(22,705)		(404)	(22,301)
Other comprehensive loss	(8,112)					(8,112)
Net earnings	273,983			273,983
Balance as if the end of the fiscal period at Oct. 31, 2019	$ 859,578		106,742	784,885		(32,049)
Increase (Decrease) in Stockholders' Equity
Accounting Standards Update [Extensible List]	us-gaap:AccountingStandardsUpdate201409Member
Cash dividends paid on common stock	$ (107,698)			(107,698)
Issuance of shares for stock options exercised and restricted stock units vested	19,630		870	18,760
Stock-based compensation expense	15,408			15,408
Contribution of stock to a deferred compensation trust	2,568			2,568
Purchase of shares of common stock	(2,146)		(29)	(2,117)
Other comprehensive loss	(2,213)					(2,213)
Net earnings	329,701			329,701
Balance as if the end of the fiscal period at Oct. 31, 2020	1,114,828		107,583	1,041,507		(34,262)
Increase (Decrease) in Stockholders' Equity
Cash dividends paid on common stock	(112,440)			(112,440)
Issuance of shares for stock options exercised and restricted stock units vested	11,615		611	11,004
Stock-based compensation expense	21,809			21,809
Contribution of stock to a deferred compensation trust	1,485		23	1,462
Purchase of shares of common stock	(304,311)		(3,011)	(301,300)
Other comprehensive loss	8,266					8,266
Net earnings	409,880			409,880
Balance as if the end of the fiscal period at Oct. 31, 2021	$ 1,151,132		$ 105,206	$ 1,071,922		$ (25,996)

Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares	12 Months Ended
	Oct. 31, 2021	Oct. 31, 2020	Oct. 31, 2019
Statement of Stockholders' Equity [Abstract]
Cash dividends paid on common stock (in dollars per share)	$ 1.05	$ 1.00	$ 0.90
Issuance of options (in shares)	610,788	870,011	1,544,962
Contribution of stock to a deferred compensation trust (in shares)	22,700
Purchase of shares of common stock (in shares)	3,010,424	29,422	403,532

Summary of Significant Accounting Policies and Related Data

12 Months Ended

Oct. 31, 2021

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RELATED DATA


1			Summary of Significant Accounting Policies and Related Data

The Toro Company is in the business of designing, manufacturing, marketing, and selling professional turf maintenance equipment and services; turf irrigation systems; landscaping equipment and lighting products; snow and ice management products; agricultural irrigation ("ag-irrigation") systems; rental, specialty, and underground construction equipment; and residential yard and snow thrower products. The Toro Company sells its products worldwide through a network of distributors, dealers, mass retailers, hardware retailers, equipment rental centers, home centers, as well as online (direct to end-users). The Toro Company strives to provide innovative, well-built, and dependable products supported by an extensive service network.

The following are The Toro Company's significant accounting policies in addition to those included in the other Notes to Consolidated Financial Statements included within this Part II, Item 8, "Financial Statements and Supplementary Data," of this Annual Report on Form 10-K.

Basis of Presentation and Consolidation

The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted ("GAAP") in the United States ("U.S.") and include the accounts of The Toro Company and its wholly-owned subsidiaries. In the opinion of management, the 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.

The company's businesses are organized, managed, and internally grouped into segments based on similarities in products and services. The company classifies its operations into two reportable business segments: Professional and Residential. The company's remaining activities are presented as "Other" due to their insignificance. As further described in Note 7, Management Actions, during the first quarter of fiscal 2021, the company completed the sale of its Northeastern U.S. distribution company. Accordingly, as of and for the fiscal year ended October 31, 2021, Other activities consisted of the company's remaining wholly-owned domestic distribution company, corporate activities, and the elimination of intersegment revenues and expenses. As of and for the fiscal years ended October 31, 2020 and 2019, the company's Other activities consisted of its wholly-owned domestic distribution companies, corporate activities, and the elimination of intersegment revenues and expenses. For additional information regarding the company's reportable business segments refer to Note 3, Segment Data.

The company uses the equity method to account for equity investments in unconsolidated entities over which it has the ability to exercise significant influence over operating and financial policies. The company's share of the net earnings or losses of these equity method investments are recorded within other income, net on the Consolidated Statements of Earnings. Equity investments in unconsolidated entities that the company does not control and for which it does not have the ability to exercise significant influence over operating and financial policies are recorded at cost, less impairment, as applicable, within the Consolidated Balance Sheets. All intercompany accounts and transactions have been eliminated from the Consolidated Financial Statements.

Impact of COVID-19

In March 2020, the World Health Organization declared the novel coronavirus ("COVID-19," "virus," or "the pandemic") outbreak a global pandemic. COVID-19 has negatively impacted public health and portions of the global economy, significantly disrupted global supply chains, and created volatility in financial markets. The continuing implications of COVID-19 on the company remain uncertain and will depend on certain future developments, including the duration of the pandemic; any adverse impact due to variants of the virus; its impact on market demand for the company's products; its impact on the company's employees, customers, and suppliers; the range of government mandated restrictions and other measures; and the success of the deployment of approved COVID-19 vaccines, their effectiveness against the novel strain and related variants, and their rate of adoption. This uncertainty could have a material impact on accounting estimates and assumptions utilized to prepare the Consolidated Financial Statements as of and for the fiscal year ended October 31, 2021 and in future reporting periods, which could result in a material adverse impact on the company's Consolidated Financial Position, Results of Operations, and Cash Flows.

Accounting Estimates

In preparing the Consolidated Financial Statements in conformity with U.S. GAAP, management must make decisions that impact the reported amounts of assets, liabilities, revenues, expenses, and the related disclosures, including disclosures of contingent assets and liabilities. Such decisions include the selection of the appropriate accounting principles to be applied and the assumptions on which to base accounting estimates. Estimates are used in determining, among other items, sales promotion and incentive accruals; incentive compensation accruals; income tax accruals; inventory valuation; warranty accruals; allowance for expected credit losses; pension accruals; self-insurance accruals; legal accruals; right-of-use assets and lease liabilities; useful lives for tangible and finite-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 or asset acquisition, 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 and current 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 and other relevant factors, as applicable. Management adjusts such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with certainty, including those impacted by COVID-19, actual amounts could differ significantly from those estimated at the time the Consolidated Financial Statements are prepared. Changes in those estimates will be reflected in the Consolidated Financial Statements in future periods.

Business Combinations and Asset Acquisitions

When applicable, the company accounts for the acquisition of a business in accordance with the accounting standards codification ("ASC") guidance for business combinations, whereby the total purchase consideration transferred is allocated to the assets acquired and liabilities assumed, including amounts attributable to non-controlling interests, when applicable, based on their respective estimated fair values as of the date of acquisition. Goodwill represents the excess of purchase consideration transferred over the estimated fair value of the identifiable net assets acquired in a business combination.

Assigning estimated fair values to the net assets acquired requires the use of significant estimates, judgments, inputs, and assumptions regarding the fair value of the assets acquired and liabilities assumed. Estimated fair values of assets acquired and liabilities assumed are generally based on available historical information, independent valuations or appraisals, future expectations, and assumptions determined to be reasonable but are inherently uncertain with respect to future events, including economic conditions, competition, the useful life of the acquired assets, and other factors. The company may refine the estimated fair values of assets acquired and liabilities assumed, if necessary, over a period not to exceed one year from the date of acquisition by taking into consideration new information that, if known at the date of acquisition, would have affected the estimated fair values ascribed to the assets acquired and liabilities assumed. The judgments made in determining the estimated fair value assigned to assets acquired and liabilities assumed, as well as the estimated useful life and depreciation or amortization method of each asset, can materially impact the net earnings of the periods subsequent to the acquisition through depreciation and amortization, and in certain instances

through impairment charges, if the asset becomes impaired in the future. During the measurement period, any purchase price allocation changes that impact the carrying value of goodwill affects any measurement of goodwill impairment taken during the measurement period, if applicable. If necessary, purchase price allocation revisions that occur outside of the measurement period are recorded within cost of sales or selling, general and administrative expense within the Consolidated Statements of Earnings depending on the nature of the adjustment.

When an acquisition does not meet the definition of a business combination because either: (i) substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset, or group of similar identified assets, or (ii) the acquired entity does not have an input and a substantive process that together significantly contribute to the ability to create outputs, the company accounts for the acquisition as an asset acquisition. In an asset acquisition, goodwill is not recognized, but rather, any excess purchase consideration over the fair value of the net assets acquired is allocated on a relative fair value basis to the identifiable net assets as of the acquisition date and any direct acquisition-related transaction costs are capitalized as part of the purchase consideration.

Refer to Note 2, Business Combinations and Asset Acquisitions, for additional information regarding the company's accounting for recent business combinations and asset acquisitions.

Cash and Cash Equivalents

The company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash equivalents are stated at cost, which approximates fair value. As of October 31, 2021 and 2020, cash and cash equivalents held by the company's foreign subsidiaries were $117.3 million and $106.3 million, respectively.

Receivables, Net

The company's financial exposure related to the collection of accounts receivable is reduced due to its wholesale floor plan financing programs, including its Red Iron Acceptance, LLC ("Red Iron") joint venture with TCF Inventory Finance, Inc. ("TCFIF"), as further discussed in Note 8, Investment in Joint Venture. Under a separate agreement, the company has an arrangement with TCF Commercial Finance Canada, Inc. ("TCFCFC") to provide inventory financing to dealers of certain of the company's products in Canada. The company also has floor plan financing agreements with separate third-party financial institutions to provide inventory financing to certain dealers and distributors not financed through Red Iron and TCFCFC, which include agreements with third-party financial institutions in the U.S. and internationally. For receivables not serviced through Red Iron, TCFCFC, or other third-party floor plan financing agreements, the company provides financing in the form of open account terms in the

normal course of business and performs on-going credit evaluations of customers.

Receivables are recorded at original carrying amount less an estimated allowance for expected credit losses. The allowance for expected credit losses is based on the company's assessment of losses that will result from its customers inability or unwillingness to pay amounts owed to the company. The allowance for expected credit losses is estimated using a combination of factors, including the age of receivable balances and historical credit loss experience, supplemented by the company's knowledge of customer-specific information, current market conditions, and reasonable and supportable forecasts of future events and economic conditions, when applicable. Receivables are written-off against the allowance for expected credit losses when all collection efforts have been exhausted.

Concentrations of Credit Risk

Financial instruments, which potentially subject the company to concentrations of credit risk, consist principally of accounts receivable and derivative instruments. Accounts receivable balances are generally concentrated in the Professional and Residential business segments. The credit risk associated with these business segments is limited because of the large number of customers in the company's customer base and their geographic dispersion. The credit risk associated with the company's derivative instruments is limited as the company enters into derivative instruments with multiple counterparties that are highly rated financial institutions.

Inventories, Net

Inventories are valued at the lower of cost or net realizable value, with cost determined by the first-in, first-out ("FIFO") and average cost methods for approximately 52.7 percent and 53.0 percent of total net inventories as of October 31, 2021 and 2020, respectively. All remaining inventories are valued at the lower of cost or market, with cost determined under the last-in, first-out ("LIFO") method. During fiscal 2021 and fiscal 2020, LIFO layers were not materially reduced. As needed, the company records an inventory valuation adjustment for excess, slow-moving, and obsolete inventory that is equal to the excess of the cost of the inventory over the estimated net realizable value or market value for the inventory depending on the inventory costing method. Such inventory valuation adjustment is based on a review and comparison of current inventory levels to planned production, as well as planned and historical sales of the inventory. The inventory valuation adjustment to net realizable value or market value establishes a new cost basis of the inventory that cannot be subsequently reversed. Such inventory valuation adjustments for excess, obsolete, and slow moving inventory are not reduced or removed until the product is sold or disposed of. As of October 31, 2021 and 2020, the company's inventory valuation adjustment for excess, slow-moving, and obsolete inventory was $39.7 million and $37.9 million, respectively.

Inventories, net were as follows (in thousands):


October 31	2021		2020
Raw materials and work in process	$	335,325	$	168,759
Finished goods and service parts	538,332		565,761
Total FIFO value	873,657		734,520
Less: adjustment to LIFO value	135,487		82,087
Total inventories, net	$	738,170	$	652,433

Property, Plant and Equipment, Net

Property, plant and equipment assets are carried at cost less accumulated depreciation. The company generally accounts 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. Costs associated with general maintenance and repairs are expenses as incurred within cost of sales or selling, general and administrative expense in the Consolidated Statements of Earnings depending on the nature and use of the related asset. Interest is capitalized during the construction period for significant capital projects. During the fiscal years ended October 31, 2021, 2020, and 2019, the company capitalized $0.8 million, $1.0 million, and $1.3 million of interest, respectively.

Property, plant and equipment, net was as follows (in thousands):


October 31	2021		2020
Land and land improvements	$	57,690	$	57,387
Buildings and leasehold improvements	308,217		301,848
Machinery and equipment	522,012		499,312
Tooling	220,966		231,142
Computer hardware and software	97,485		102,312
Construction in process	85,722		48,157
Property, plant and equipment, gross	1,292,092		1,240,158
Less: accumulated depreciation	804,361		772,239
Property, plant and equipment, net	$	487,731	$	467,919

During fiscal 2021, 2020, and 2019, the company recorded depreciation expense of $75.5 million, $76.1 million, and $69.3 million, respectively.

Goodwill and Indefinite-Lived Intangible Assets

Goodwill is initially recognized as a result of the excess of purchase consideration transferred over the estimated fair value of the net assets acquired in a business combination and indefinite-lived intangible assets are initially recognized at their estimated fair values as a result of a business combination or asset acquisition. Goodwill is assigned to a reporting unit based upon the expected benefit of the synergies of the acquisition. Goodwill and certain trade

names, which are considered to have indefinite lives, are not amortized; however, the company reviews them for impairment annually during the fourth quarter of each fiscal year or more frequently if changes in circumstances or the occurrence of events indicate that the fair value may not be recoverable. The company tests goodwill for impairment at the reporting unit level and tests indefinite-lived intangible assets for impairment at the individual indefinite-lived intangible asset or asset group level, as appropriate. During the fourth quarter of fiscal 2021, the company performed its annual goodwill impairment test.

In performing the annual goodwill impairment test, the company first reviewed its reporting units and determined that it has eleven reporting units, which are the same as its eleven operating segments as defined in Note 3, Segment Data. Eight reporting units contain goodwill on their respective balance sheets as of October 31, 2021. Next, the company elected to bypass the qualitative assessment and move directly to the quantitative goodwill impairment analysis. In performing the quantitative goodwill impairment analysis, the company compared the carrying value of each reporting unit, including goodwill, to its respective fair value. The carrying value of each reporting unit was determined based on the amount of equity required for the reporting unit's activities, considering the specific assets and liabilities of the reporting unit. The company did not assign corporate assets and liabilities that do not relate to the operations of the reporting unit, or are not considered in determining the fair value of the reporting unit, to the reporting units. The company's estimate of the respective fair values of its reporting units was determined based on a discounted cash flow model under the income approach, which utilized various inputs and assumptions, including projected operating results and growth rates from the company's forecasting process, applicable tax rates, estimated capital expenditures and depreciation, estimated changes in working capital, terminal growth rates applied to projected operating results in the terminal period, and a weighted-average cost of capital rate. Where available, and as appropriate, comparable market multiples and the company's market capitalization were also utilized to corroborate the results of the discounted cash flow models under the income approach. If the fair value of the reporting unit exceeds its carrying value, goodwill of the reporting unit is not impaired. If the carrying value of a reporting unit exceeds its fair value, an impairment charge would be recognized for the amount by which the carrying value of the reporting unit exceeds the its fair value, not to exceed the total amount of goodwill allocated to that reporting unit. Based on the quantitative goodwill impairment analysis, the company determined there was no impairment of goodwill during fiscal 2021 for any of its reporting units as the fair values of the reporting units substantially exceeded their respective carrying values, including goodwill. Further, no impairment of goodwill was recorded during fiscal 2020 and 2019.

During the fourth quarter of fiscal 2021, the company also performed a quantitative impairment analysis for its

indefinite-lived intangible assets, which consist of certain trade names. The company's estimate of the fair values of its trade names are based on the relief from royalty method under the income approach and utilizes various inputs and assumptions, including projected revenues from the company's forecasting process, assumed royalty rates that could be payable if the company did not own the intangible asset, terminal growth rates applied to forecasted revenues, and a discount rate. If the fair value of the indefinite-lived intangible asset, or asset group, is less than its carrying value, an impairment loss is recognized in an amount equal to the excess. Based on this quantitative impairment analysis, the company concluded its indefinite-lived intangible assets were not impaired during fiscal 2021 as the estimated fair values of the company's material indefinite-lived intangible assets substantially exceeded their carrying values. Further, the company concluded its indefinite-lived intangible assets were not impaired during fiscal 2020 and 2019 based on the same quantitative impairment analysis performed in each respective prior fiscal year.

Other Long-Lived Assets

Other long-lived assets primarily consist of property, plant and equipment; right-of-use assets associated with operating lease agreements, capitalized implementation costs for hosted cloud-computing arrangements; finite-lived intangible assets, and other assets, as applicable. The company's finite-lived intangible assets are identifiable assets that were acquired as a result of business combinations or asset acquisitions and primarily consist of customer relationships and lists, developed technology, patents, trade names, non-compete agreements, and order backlog and are generally amortized on a straight-line basis over their expected useful lives, which typically range from several months to 20 years depending on the nature of the finite-lived intangible asset.

The company reviews other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset, or asset group, may not be recoverable. Asset groups have identifiable cash flows and are largely independent of other asset groups. An impairment loss is recognized when estimated undiscounted future cash flows from the operation or disposition of the asset group are less than the carrying amount of the asset group. Measurement of an impairment loss is based on the excess of the carrying amount of the asset group over its fair value. Fair value is generally measured using a discounted cash flow model or independent appraisals, as appropriate. The company did not record an impairment loss for fiscal 2021, 2020, and 2019 as the company's long-lived assets were determined to not be at risk for impairment as no events or changes in circumstances were identified that would indicate that the carrying amount of an asset, or asset group, may not be recoverable.

For other long-lived assets to be abandoned, the company tests for potential impairment. If the company commits to a plan to abandon or dispose of an other long-lived asset, or asset group, before the end of its previously estimated useful

life, depreciation or amortization expense is recognized over the revised estimated useful life.

Leases

The company enters into contracts that are, or contain, operating lease agreements that 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.

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. 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 market 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. The company has operating leases with both lease components and non-lease components. For purposes of determining lease payments, 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. 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. Minimum remaining lease payments are generally discounted to present value based the estimated incremental borrowing rate at lease commencement as the rate implicit in the lease is generally not readily determinable.

Right-of-use assets represent the company's right to use an underlying asset throughout the lease term and 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.

Lease expense for the company's operating leases is recognized on a straight-line basis over the lease term and is recorded within either cost of sales or selling, general and administrative expense in the Consolidated Statements of Earnings depending on the nature and use of the identified asset underlying the respective operating lease arrangement. The company does not recognize right-of-use assets and lease liabilities, but does recognize lease 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.

Accounts Payable

The company has a supply chain finance service agreement with a third-party financial institution to provide a web-based platform that facilitates the ability of participating suppliers to finance payment obligations from the company with the third-party financial institution. Participating suppliers may, at their sole discretion, make offers to finance one or more payment obligations of the company prior to their scheduled due dates at a discounted price to the third-party financial institution. The company's obligations to its suppliers, including amounts due and scheduled payment dates, are not affected by suppliers' decisions to finance amounts under this supply chain finance arrangement. As of October 31, 2021 and 2020, $91.6 million and $63.5 million, respectively, of the company's outstanding payment obligations were financed by participating suppliers through the third-party financial institution's supply chain finance web-based platform.

Insurance

The company is self-insured for certain losses relating to employee medical, dental, workers' compensation, and certain product liability claims. Specific stop loss coverages are provided for catastrophic claims in order to limit exposure to significant claims. Losses and claims are charged to net earnings when it is probable a loss has been incurred and the amount can be reasonably estimated. Self-insured liabilities are based on a number of factors, including historical claims experience, an estimate of claims incurred but not reported, demographic and severity factors, and utilizing valuations provided by independent third-party actuaries, as applicable.

Product 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. Standard 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. In addition to the standard warranties offered by the company on its products, the company also sells separately priced extended warranty

coverage on select products for a prescribed period after the original warranty period expires. For additional information on the contract liabilities associated with the company's separately priced extended warranties, refer to Note 4, Revenue.

At the time of sale, the company recognizes expense and records an accrual by product line for estimated costs in connection with forecasted future warranty claims. The company's estimate of the cost of future warranty claims is 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 the cost of actual claims experience indicates that adjustments to the company's warranty accrual are necessary. Additionally, from time to time, the company may also establish warranty accruals for its estimate of the costs necessary to settle major rework campaigns on a product-specific basis during the period in which the circumstances giving rise to the major rework campaign become known and when the costs to satisfactorily address the situation are both probable and estimable. The warranty accrual for the cost of a major rework campaign is primarily based on an estimate of the cost to repair each affected unit and the number of affected units expected to be repaired.

The changes in accrued warranties were as follows (in thousands):


Fiscal Years Ended October 31	2021		2020		2019
Beginning balance	$	107,121	$	96,604	$	76,214
Warranty provisions	73,666		60,273		57,277
Acquisitions	—		2,557		18,418
Warranty claims	(71,520)		(67,241)		(58,878)
Changes in estimates	7,516		14,928		3,573
Ending balance	$	116,783	$	107,121	$	96,604

Derivative Instruments and Hedging Activities

Derivative instruments, consisting primarily of forward currency contracts, are used to hedge most foreign currency transactions, including forecasted sales and purchases denominated in foreign currencies. All derivative instruments are recognized on the Consolidated Balance Sheets at fair value as either assets or liabilities. If the derivative instrument is designated as a cash flow hedging instrument, 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 accumulated other comprehensive loss (“AOCL”) on the Consolidated Balance Sheets and are subsequently reclassified to net earnings within the 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. Derivatives that are not designated as cash flow hedging instruments are adjusted to fair value through other income, net, on the Consolidated Statements of Earnings.

Foreign Currency Translation and Transactions

The functional currency of the company's foreign operations is generally the applicable local currency. The functional currency is translated into U.S. dollars using the respective current exchange rate in effect as of the balance sheet date for balance sheet accounts and the respective weighted-average exchange rate during the fiscal year for revenue and expense accounts. The resulting translation adjustments are deferred as a component of other comprehensive income within the Consolidated Statements of Comprehensive Income and the Consolidated Statements of Stockholders' Equity. Gains or losses resulting from transactions denominated in foreign currencies are included in other income, net in the Consolidated Statements of Earnings.

Debt Issuance Costs

Debt issuance costs incurred in connection with securing the company’s financing arrangements are capitalized and amortized over the term of the respective financing arrangement 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. Debt issuance costs are generally presented in the Consolidated Balance Sheets as a direct deduction from the carrying amount of the outstanding borrowings, consistent with debt discounts. However, the company classifies the debt issuance costs related to its $600.0 million five-year senior unsecured revolving credit facility ("revolving credit facility") within other assets on the Consolidated Balance Sheets, regardless of whether the company has any outstanding borrowings on the revolving credit facility. Debt issuance costs related to borrowings that are fully extinguished in advance of the maturity date are charged to expense at the time of retirement of the borrowings. Debt issuance costs, net of accumulated amortization, were $4.6 million and $3.9 million as of October 31, 2021 and 2020, respectively.

Income Taxes

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years that those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income tax expense in the period that includes the enactment date. A valuation allowance is provided when, in management's judgment, it is more likely than not that some portion or all of the deferred tax asset will not be realized. The company believes it has reflected the necessary deferred tax assets and liabilities in the

accompanying Consolidated Balance Sheets. Management believes the future tax deductions will be realized principally through future taxable income, future reversals of existing taxable temporary differences, and carryback to taxable income in prior years.

The company recognizes the effect of income tax positions only if it is more likely than not that those positions will be sustained. Recognized income tax positions are measured at the largest amount that is greater than 50.0 percent likely to be realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The company also records interest and penalties related to unrecognized tax benefits within income tax expense.

Revenue Recognition

The company's primary source of revenue is generated through the sale of equipment and irrigation products, as well as rendering of services to its customers. As a result, the company enters into contracts with its customers for the sale of products or rendering of services in the ordinary course of business, which generally occurs at the time the company receives and accepts a purchase or sales 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 generally occurs with the transfer of control of product or services 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 as a result of variable consideration. Variable consideration is recorded at the time revenue is recognized as a reduction of the transaction price and typically occurs as a result of certain of the company's sales promotion and incentive programs offered to customers that are determined to represent price concessions, as well as anticipated product returns, when applicable. 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.

Sales Promotions and Incentives

At the time revenue is recognized, the company records a reduction of the transaction price for the variable consideration associated with certain of the company's sales promotions and incentives programs offered to customers that are determined to represent price concessions. The expense of each sales promotion and incentive program is

classified as a reduction from gross sales or as a component of selling, general and administrative expense within the Consolidated Statements of Earnings when revenue is recognized, depending on the nature of the program. Generally, the cost of a program is recorded as a reduction from gross sales when revenue is recognized and thus, is considered to be variable consideration, if the expense is determined to represent a price concession because the program either (i) results in an immediate reduction of the transaction price with no anticipated future costs or consideration provided to the customer or (ii) the company anticipates future costs based on historical or expected future business practice for which the company does not receive a distinct good or service in exchange for the future consideration provided to the customer under the program. In other circumstances, the anticipated future cost of a program based on historical or expected future business practice is recorded as selling, general and administrative expense because the company receives a distinct good or service in exchange for the future consideration provided to the customer under the program.

Examples of significant sales promotions and incentive programs that are considered to be variable consideration because the cost of the program is classified as a reduction from gross sales are as follows:

•Off-Invoice Discounts: The company's off-invoice discounts represent an immediate reduction in the selling price of the company's products that is realized at the time of sale with no anticipated future cost or consideration provided to the customer.

•Rebate Programs: The company's rebate programs are generally based on claims submitted from either the company's direct customers or end-users of the company's products or are based on purchase or retail sales goals for the company's direct customers of certain quantities or mixes of product during a specified time period, depending upon the program. The amount of the rebate varies based on the specific program and is either a dollar amount or a percentage of the purchase price and can also be based on actual retail price as compared to the company's selling price. Consideration is typically provided to the company's customers for the company's rebate programs after the initial sale of the company's products to the company's direct customers and thus, there is generally an anticipated future cost at the time revenue is recognized based on historical and expected future business practice.

•Financing Programs: The company's financing programs consist of wholesale floor plan financing programs with Red Iron and separate third-party financial institutions and end-user retail financing. Costs incurred for wholesale floor plan financing programs represent financing costs associated with programs under which the company shares the expense of financing distributor and dealer inventories through third-party financing arrangements for a specific period of time. This charge represents interest for a pre-established

length of time based on a predefined rate from the contract between the company and Red Iron or the separate third-party financial institution to finance distributor and dealer inventory purchase. The wholesale financing costs for distributor and dealer inventories were $20.8 million, $24.1 million, and $44.5 million for the fiscal years ended October 31, 2021, 2020 and 2019, respectively. End-user retail financing is similar to floor planning with the difference being that retail financing programs are offered to end-user customers under which the company, at its discretion, may pay a portion of interest costs on behalf of end-users for financing purchases of the company's equipment.

Examples of significant sales promotions and incentive programs that are not considered to be variable consideration because the cost of the program is classified as a component of selling, general, and administrative expense are as follows:

•Commissions Paid to Distributors and Dealers: For certain products, the company uses a distribution network of dealers and distributors that purchase and take possession of products for sale to the end customer. The company also has dealers and distributors that act as sales agents for it on certain products using a direct-selling type model. Under this direct-selling type model, the company's network of distributors and dealers facilitates a sale directly to the dealer or end-user customer on its behalf. Commissions to distributors and dealers in these instances represent commission payments to sales agents that are also its customers. In addition, TTC dealers are often paid a commission to set up and deliver riding product purchased at certain home centers.

•Cooperative Advertising: Cooperative advertising programs are based on advertising costs incurred by distributors and dealers for promoting the company's products. The company supports a portion of those advertising costs in which claims are submitted by the distributor or dealer along with evidence of the advertising material procured/produced and evidence of the cost incurred in the form of third-party invoices or receipts.

Regardless of classification of the cost of the sales promotion and incentive program within the Consolidated Statements of Earnings, the company records an accrual within the Consolidated Balance Sheets for the estimated future expense of certain of its sales promotion and incentive programs for which the company anticipates a future cost based on historical or expected future business practice by using the expected value method and applying the portfolio approach practical expedient under the accounting standards codification guidance for revenue from contracts with customers. Under such approach, the company's determination of variable consideration and the related accrual associated with the estimated expense of certain of the company's sales promotions and incentives programs is primarily based on the terms of the sales arrangements and sales promotion and incentive programs with customers,

historical payment and rebate claims experience, field inventory levels, quantity or mix of products purchased, forecasted sales volumes, types of programs offered, and expectations for the acceptance of sales promotion and incentive programs offered in the future or changes in other relevant trends.

Cost of Sales

Cost of sales is primarily comprised of direct materials and supplies consumed to manufacture the company's products, as well as compensations costs for manufacturing labor and direct overhead expense necessary to convert direct materials and supplies into finished product. Cost of sales also includes freight costs for the procurement of direct materials and supplies and shipping products to customers; charges associated with inventory valuation adjustments for excess, slow-moving, and obsolete inventory; depreciation and amortization expense on manufacturing-related tangible and intangible assets; operating lease expense related to leased manufacturing assets; cost of services provided; cash discounts on payments to vendors, and other manufacturing-related costs.

Selling, General and Administrative Expense

Selling, general and administrative expense is primarily comprised of compensation costs for non-manufacturing labor, occupancy and operating costs of distribution and corporate facilities, warranty expense, depreciation and amortization expense on non-manufacturing tangible and intangible assets, operating lease expense related to leased non-manufacturing assets; advertising, marketing, and selling expenses, engineering and research costs, information systems costs, and other miscellaneous administrative costs, such as legal costs for internal and outside services that are expensed as incurred.

Advertising Expense

General advertising expenditures are expensed the first time advertising takes place. Production costs associated with advertising are expensed in the period incurred. Cooperative advertising represents expenditures for shared advertising costs that the company reimburses to customers and is classified as a component of selling, general and administrative expense within the Consolidated Statements of Earnings. These obligations are accrued and expensed when the related revenues are recognized in accordance with the sales promotion and incentive programs established for certain product lines. Advertising costs were $50.5 million, $50.3 million, and $43.5 million for the fiscal years ended October 31, 2021, 2020, and 2019, respectively.

Engineering and Research Expense

The company's engineering and research costs are expensed as incurred as a component of selling, general and administrative expense within the Consolidated Statements of Earnings and are primarily incurred in connection with the development of new products that may have additional applications or represent extensions of existing product lines,

improvements or enhancements to existing products, and cost reduction efforts. Costs incurred for engineering and research activities were $141.0 million, $124.1 million, and $109.1 million for the fiscal years ended October 31, 2021, 2020, and 2019, respectively.

Stock-Based Compensation Expense

The company's stock-based compensation awards are generally granted to executive officers, other employees, and non-employee members of the company's Board of Directors ("Board"), and include unrestricted common stock awards, performance share awards that are contingent on the achievement of performance goals of the company, non-qualified stock options, and restricted stock units. Generally, compensation expense equal to the grant date fair value determined under the Black-Scholes valuation method is recognized for these awards over the vesting period and is classified in selling, general and administrative expense within the Consolidated Statements of Earnings. For stock options and restricted stock units, expense recognized for other employees not considered executive officers and non-employee Board members is net of estimated forfeitures, which is based on historical forfeiture experience. Stock options granted to executive officers and other employees are subject to accelerated expensing if the option holder meets the retirement definition set forth in The Toro Company Amended and Restated 2010 Equity and Incentive Plan, as amended and restated (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.

Other Income, Net

Other income, net primarily consists of the company's proportionate share of income or losses from the company's Red Iron joint venture, realized foreign currency exchange rate gains and losses, interest and dividend income, gains or losses recognized on actuarial valuation changes for our pension and post-retirement plans, retail financing revenue, and other miscellaneous income.

Net Earnings Per Share

Basic net earnings per share is calculated as net earnings available to common stockholders divided by the weighted-average number of shares of common stock outstanding during the year plus the assumed issuance of contingent shares related to performance share awards under the 2010 plan. Diluted net earnings per share is similar to basic net earnings per share except that the weighted-average number of shares of common stock outstanding plus the assumed issuance of contingent shares is increased to include the number of additional shares of common stock that would have been outstanding assuming the issuance of all potentially dilutive shares, such as common stock to be issued upon exercise of options, contingently issuable shares, and restricted stock units.

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


Fiscal Years Ended October 31	2021	2020	2019
Basic
Weighted-average number of shares of common stock	107,336	107,647	106,762
Assumed issuance of contingent shares	5	11	11
Weighted-average number of shares of common stock outstanding – Basic	107,341	107,658	106,773

Diluted
Weighted-average number of shares of common stock outstanding – Basic	107,341	107,658	106,773
Effect of dilutive securities	1,132	1,005	1,317
Weighted-average number of shares of common stock outstanding – Diluted	108,473	108,663	108,090

Incremental shares from options and restricted stock units are computed under the treasury stock method. Stock option awards to purchase 409,851, 447,032, and 716,343 shares of common stock during fiscal 2021, 2020, and 2019, respectively, were excluded from the computation of diluted net earnings per share of common stock because they were anti-dilutive.

New Accounting Pronouncements Adopted

In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which modifies the measurement approach for credit losses on financial assets measured on an amortized cost basis from an 'incurred loss' method to an 'expected loss' method. Such modification of the measurement approach for credit losses eliminates the requirement that a credit loss be considered probable, or incurred, to impact the valuation of a financial asset measured on an amortized cost basis. The amended guidance requires the measurement of expected credit losses to be based on relevant information, including historical experience, current conditions, and a reasonable and supportable forecast that affects the collectability of the related financial asset. This amendment affects trade receivables, off-balance-sheet credit exposures, and any other financial assets not excluded from the scope of this amendment that have the contractual right to receive cash. The amended guidance was adopted in the first quarter of fiscal 2021, under the modified retrospective transition method, and did not have a material impact on the company's Consolidated Financial Statements.

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820) - Changes to the Disclosure Requirements for Fair Value Measurement, which modifies the disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosures. The amended guidance was adopted in the first quarter of fiscal 2021 and did not have a material impact on the company's Consolidated Financial Statements.

In August 2018, the FASB issued ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans (Topic 715), which modifies the disclosure requirements for defined benefit pension plans and other post-retirement plans. The amended guidance was adopted in the first quarter of fiscal 2021 and did not have a material impact on the company's Consolidated Financial Statements.

New Accounting Pronouncements Not Yet Adopted

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. The amended guidance also clarifies and simplifies other aspects of the accounting for income taxes under ASC Topic 740, Income Taxes. The company will adopt the amended guidance on November 1, 2021, the first quarter of fiscal 2022, and such adoption will not have a material impact on the company's Consolidated Financial Statements.

In January 2020, the FASB issued ASU No. 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815), which clarified that before applying or upon discontinuing the equity method of accounting for an investment in equity securities, an entity should consider observable transactions that require it to apply or discontinue the equity method of accounting for the purposes of applying the fair value measurement alternative. The company will adopt the amended guidance on November 1, 2021, the first quarter of fiscal 2022, and such adoption will not have a material impact on the company's Consolidated Financial Statements.

In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides temporary optional guidance to ease the potential burden of accounting for reference rate reform due to the cessation of the London Interbank Offered Rate, commonly referred to as "LIBOR." The temporary guidance provides optional expedients and exceptions for applying U.S. GAAP to contracts, relationships, and transactions affected by reference rate reform if certain criteria are met. The guidance was effective upon issuance on March 12, 2020 and the provisions of the temporary optional guidance provided by the ASU may be elected on a prospective basis from the beginning of an interim period that includes the issuance date of the ASU through December 31, 2022, when the reference rate reform activity is expected to be substantially complete. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to provide supplemental guidance and to further clarify the scope of the amended guidance. At this time, the company does not have receivables, hedging relationships, or operating lease agreements that reference LIBOR or another reference

rate expected to be discontinued and therefore, the company has not applied the optional practical expedients under this ASU to these classes of assets. On October 5, 2021, the company entered into an amended and restated credit agreement and at such time, the company concluded that the optional practical expedients provided by the ASU would not be elected as the required criteria were not met. The amended and restated credit agreement includes a transition clause in the event LIBOR is discontinued and the company's other fixed-rate financing agreements do not reference LIBOR or another reference rate expected to be discontinued as disclosed in Note 6, Indebtedness. As such, the company does not expect the transition of LIBOR to have a material impact on the company's Consolidated Financial Statements; however, a review of other contracts and agreements is underway and is expected to be completed prior to December 31, 2022.

The company believes that all other recently issued accounting pronouncements from the FASB that the company has not noted above, will not have a material impact on its Consolidated Financial Statements or do not apply to its operations.

Business Combinations and Asset Acquisitions

12 Months Ended

Oct. 31, 2021

Business Combination and Asset Acquisition [Abstract]

Business Combinations and Asset Acquisitions


2			Business Combinations and Asset Acquisitions

Asset Acquisitions

Effective November 4, 2020, during the first quarter of fiscal 2021, the company completed the acquisition of Turflynx, Lda, a developer of innovative autonomous solutions for turf management and effective March 1, 2021, during the second quarter of fiscal 2021, the company completed the acquisition of Left Hand Robotics, Inc., a developer of innovative autonomous solutions for turf and snow management. These acquisitions complement and support the development of alternative power, smart-connected, and autonomous products within the company's Professional and Residential segments. Neither of these acquisitions met the definition of a business combination as substantially all of the fair value of the gross assets acquired in each acquisition was concentrated in the respective finite-lived developed technology other intangible asset and as a result, the company accounted for each of these transactions as an asset acquisition. In an asset acquisition, goodwill is not recognized, but rather, any excess purchase consideration over the fair value of the net assets acquired is allocated on a relative fair value basis to the identifiable net assets as of the acquisition date and any direct acquisition-related transaction costs are capitalized as part of the purchase consideration. These asset acquisitions were immaterial in relation to the company's Consolidated Financial Condition and Results of Operations and as a result, additional purchase accounting disclosures have been omitted.

Venture Products, Inc. ("Venture Products")

On March 2, 2020 ("Venture Products closing date"), pursuant to an Agreement and Plan of Merger ("Venture Products merger agreement") and an agreement to purchase the real property used by Venture Products ("Venture Products purchase agreement") both dated January 20, 2020, the company completed its acquisition of Venture Products ("Venture Products transaction"), a privately held Ohio corporation and the manufacturer of Ventrac-branded products. Venture Products designs, manufactures, markets, and sells 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 broadened and strengthened the company's Professional segment and expanded its dealer network.

The Venture Products transaction 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 only represented the right to receive the applicable consideration as described in the Venture Products merger agreement. The Venture Products purchase agreement was with an affiliate of Venture Products and was for the real estate used by Venture Products. As of the Venture Products closing date, the company paid preliminary merger consideration of $165.9 million, which consisted of a cash payment of $136.4 million ("initial cash payment") and a $29.5 million holdback to satisfy any indemnification or certain other obligations of Venture Products to the company. The preliminary merger consideration was subject to certain customary adjustments, which were finalized during the third quarter of fiscal 2020 and resulted in an aggregate merger consideration of $163.2 million ("Venture Products purchase price") and at such time, $4.5 million of the holdback set aside for such customary adjustments was released accordingly. During fiscal 2021, $24.9 million of cash consideration was paid to the former Venture Products shareholders to release the remaining holdback amount upon the satisfaction of indemnification and certain other obligations of Venture Products to the company. The company funded the cash payment with borrowings under its revolving credit facility and net cash provided by operating activities. For additional information regarding the company's revolving credit facility, refer to Note 6, Indebtedness.

As a result of the acquisition, the company incurred $0.6 million of acquisition-related transaction costs, all of which were incurred during the fiscal year ended October 31, 2020 and recorded within selling, general and administrative expense within the Consolidated Statements of Earnings for such fiscal period.

Venture Products Purchase Price Allocation

The company accounted for the acquisition in accordance with the accounting standards codification guidance for business combinations, whereby the Venture Products purchase price was allocated to the acquired net tangible and intangible assets of Venture Products based on their estimated fair values as of the Venture Products closing date. Such fair values were based on internal company and independent external third-party valuations. The following table summarizes the allocation of the Venture Products purchase price to the fair values assigned to the Venture Products assets acquired and liabilities assumed (in thousands):


	March 2, 2020
Cash and cash equivalents	$	3,476
Receivables	6,342
Inventories	23,000
Prepaid expenses and other current assets	239
Property, plant and equipment	26,976
Goodwill	61,225
Other intangible assets:
Finite-lived customer-related	19,100
Indefinite-lived trade name	56,200
Accounts payable	(4,075)
Accrued liabilities	(5,196)
Deferred income tax liabilities	(20,586)
Total fair value of net assets acquired	166,701
Less: cash and cash equivalents acquired	(3,476)
Total Venture Products purchase price	$	163,225

The goodwill recognized is primarily attributable to the value of the workforce, the reputation of Venture Products, expected future cash flows, and expected synergies, including customer and dealer growth opportunities and integrating and expanding existing product lines. Key areas of expected cost synergies include increased purchasing power for commodities, components, parts, and accessories, and supply chain consolidation. The goodwill resulting from the acquisition of Venture Products was recognized within the company's Professional segment and is non-deductible for tax purposes. During the first quarter of fiscal 2021, the company completed its valuation of income taxes to finalize the Venture Products purchase price allocation, which resulted in a decrease to the carrying amount of goodwill of $1.0 million from $412.1 million as of October 31, 2020. Such purchase accounting adjustment did not impact the company's Consolidated Statements of Earnings for fiscal 2021.

The allocation of the Venture Products purchase price to the net assets acquired resulted in the recognition of $75.3 million of other intangible assets as of the Venture Products closing date. The fair values of the acquired trade name and customer-related intangible assets were determined using the income approach whereby an intangible asset's fair value is equal to the present value of future economic benefits expected to be derived from ownership of the asset. The useful lives of the acquired trade name and customer-related intangible assets were determined based on the period of

expected cash flows used to measure the fair value of the respective 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 value of the indefinite-lived trade name was 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 value of the customer-related intangible asset was determined using the excess earnings method and was based on the expected operating cash flows attributable to the customer-related intangible asset, which was determined by deducting expected economic costs, including operating expenses and contributory asset charges, from revenue expected to be generated from the customer-related intangible asset. As of the Venture Products closing date, the weighted-average useful life of the finite-lived customer-related intangible asset was determined to be 16.0 years.

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

On April 1, 2019 ("CMW closing date"), pursuant to the Agreement and Plan of Merger dated February 14, 2019 ("CMW merger agreement"), the company completed the acquisition of CMW ("CMW transaction"), 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, stand-on 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 CMW 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 only represented the right to receive the applicable consideration as described in the CMW merger agreement. At the CMW closing date, the company paid preliminary merger consideration of $679.3 million. The preliminary merger consideration was subject to certain customary adjustments that were finalized during the fourth quarter of fiscal 2019, which resulted in an aggregate merger consideration of $685.0 million ("CMW purchase price"). The company funded the CMW purchase price by using a combination of cash proceeds from the issuance of borrowings under the company's $500.0 million unsecured senior term loan credit agreement and borrowings from the company's revolving credit facility. For additional information regarding the financing agreements utilized to fund the CMW purchase price, refer to Note 6, Indebtedness.

As a result of the acquisition, the company incurred $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.

CMW Purchase Price Allocation

The company accounted for the acquisition in accordance with the accounting standards codification guidance for business combinations, whereby the CMW purchase price was allocated to the acquired net tangible and intangible assets of CMW based on their estimated fair values as of the CMW closing date. Such fair values were based on internal company and independent external third-party valuations. The following table summarizes the allocation of the CMW purchase price to the fair values assigned to the CMW assets acquired and liabilities assumed (in thousands):


	April 1, 2019
Cash and cash equivalents	$	16,341
Receivables	65,674
Inventories	241,429
Prepaid expenses and other current assets	8,050
Property, plant and equipment	142,779
Goodwill	134,657
Indefinite-lived other intangible assets:
Trade names	103,700
Finite-lived other intangible assets:
Customer-related	130,800
Developed technology	20,900
Trade names	5,200
Backlog	3,590
Other long-term assets	7,971
Accounts payable	(35,892)
Accrued liabilities	(51,943)
Deferred income tax liabilities	(85,277)
Other long-term liabilities	(6,665)
Total fair value of net assets acquired	701,314
Less: cash and cash equivalents acquired	(16,341)
Total CMW purchase price	$	684,973

The goodwill recognized is primarily attributable to the value of the workforce, the reputation of CMW and its brands, customer and dealer growth opportunities, and expected synergies. Key areas of expected cost synergies include increased purchasing power for commodities, components, parts, and 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 mostly non-deductible for tax purposes. During the second quarter of fiscal 2020, the company completed its valuation of income taxes to finalize the CMW purchase price allocation, which resulted in a decrease to the carrying amount of Professional segment goodwill of $0.9 million from $350.3 million as of October 31, 2019. Such purchase accounting adjustment did not impact the company's Consolidated Statements of Earnings for fiscal 2020.

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 CMW closing date. The fair values of the acquired trade name, customer-related, developed technology and backlog intangible assets were determined using the income approach whereby an intangible asset's fair value is equal to the present value of future economic benefits expected to be derived from ownership of the 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. As of the CMW closing date, the acquired finite-lived intangible assets had a weighted average useful life of 16.6 years. The fair values of both the indefinite-lived and finite-live 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 weighted-average useful life of the finite-lived trade name intangible assets was determined to be 20.0 years as of the CMW closing date. The fair values of the finite-lived 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 intangible asset. As of the CMW closing date, the weighted-average useful lives of the finite-lived customer-related, developed technology, and backlog intangible assets were determined to be 18.3 years, 7.8 years, and 6 months, respectively.

Unaudited Pro Forma Financial Information

Unaudited pro forma financial information represents the company's fiscal 2019 acquisition of CMW as though the acquisition had taken place at the beginning of fiscal 2018 and has been provided for comparative purposes only. The unaudited pro forma financial information is only presented for the fiscal year ended October 31, 2019 as CMW's results are included within the Company's Results of Operations for fiscal 2021 and 2020. The unaudited pro forma financial information is not necessarily indicative of the results that would have been achieved had the acquisition actually taken place at the beginning of fiscal 2018 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 have been and may continue to be realized from the integration of the acquisition.

The unaudited pro forma results for the fiscal year ended October 31, 2019 were 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 for fiscal 2019 (in thousands, except per share data):


	October 31, 2019
Net sales	$	3,437,335
Net earnings1	363,452
Basic net earnings per share of common stock	3.40
Diluted net earnings per share of common stock1	$	3.36

1 On January 1, 2019, CMW amended its retiree medical plans so that no employee hired, or rehired, after that date would be eligible for such retiree medical plans. CMW further amended its retiree medical plans on February 14, 2019 so that no employee who terminates employment after February 14, 2019 is eligible to participate in the retiree medical plans and to terminate its retiree medical plans effective December 31, 2019. The amendments and resulting termination of CMW's retiree medical plans resulted in a gain of $45.8 million. This gain is reflected within net earnings in the unaudited pro forma financial information for the fiscal year ended October 31, 2019. The impact on diluted net earnings per share of common stock for the fiscal year ended October 31, 2019 was $0.42 per diluted share of common stock.

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 and as a result, additional purchase accounting disclosures have been omitted.

Segment Data

12 Months Ended

Oct. 31, 2021

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 the company's chief operating decision maker organizes segments for making operating and investment decisions and assessing performance. The company has identified eleven operating segments and has aggregated certain of those operating 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.

The Professional reportable business segment consists of turf and landscape equipment; rental, specialty, and underground construction equipment; snow and ice management equipment; and irrigation and lighting products. Turf and landscape equipment products include sports fields and grounds mowing and maintenance equipment, golf course mowing and maintenance equipment, landscape contractor mowing equipment, landscape creation and renovation equipment, and other maintenance equipment. Rental, specialty, and underground construction equipment products include horizontal directional drills, walk and ride trenchers, stand-on skid steers, vacuum excavators, stump grinders, turf renovation products, asset locators, pipe rehabilitation solutions, materials handling equipment, and other after-market tools. Snow and ice management equipment products primarily include snowplows; stand-on snow and ice removal equipment, including the related snowplow, snow brush, and snow thrower attachments; salt and sand spreaders; and related parts and accessories for light and medium duty trucks, utility task vehicles, skid steers, and front-end loaders. Irrigation and lighting products consist of sprinkler heads, electric and hydraulic valves, controllers, computer irrigation central control systems, coupling systems, and ag-irrigation drip tape and hose products, as well as professionally installed landscape lighting products offered through distributors and landscape contractors that also purchase irrigation products. Professional reportable business segment products are marketed and sold mainly through a network of distributors and dealers to professional users engaged in maintaining golf courses, sports fields, municipal properties, agricultural fields, residential and commercial landscapes, and removing snow and ice, as well as directly to government customers, rental companies, and large retailers.

The Residential reportable business segment primarily consists of walk power mowers, zero-turn riding mowers, snow throwers, replacement parts, and home solutions products, including grass trimmers, hedge trimmers, leaf blowers, blower-vacuums, chainsaws, string trimmers, and underground, hose, and hose-end retail irrigation products sold in Australia and New Zealand. Residential reportable business segment products are marketed and sold to homeowners through a network of distributors and dealers, and through a broad array of home centers, hardware retailers, and mass retailers, as well as online.

As further described in Note 7, Management Actions, during the first quarter of fiscal 2021, the company completed the sale of its Northeastern U.S. distribution company. As a result, for the fiscal year ended October 31, 2021, the company's Other activities consisted of the company's wholly-owned domestic distribution company, the company's

corporate activities, and the elimination of intersegment revenues and expenses. For the fiscal year ended October 31, 2020, the company's Other activities consisted of the company's wholly-owned domestic distribution companies, the company's corporate activities, and the elimination of intersegment revenues and expenses. Corporate activities include general corporate expenditures (finance, human resources, legal, information services, public relations, business development, and similar activities) and other unallocated corporate assets and liabilities, such as corporate facilities and deferred tax assets and liabilities.

The accounting policies of the reportable business segments are the same as those described in the summary of significant accounting policies in Note 1, Summary of Significant Accounting Policies and Related Data. The company evaluates the performance of its Professional and Residential reportable business segment results based on earnings from operations plus other income, net. The reportable business segment's operating profits or losses include direct costs incurred at the reportable business segment's operating level plus allocated expenses, such as profit sharing and manufacturing expenses. The allocated expenses represent costs that these operations would have incurred otherwise, but do not include general corporate expenses, interest expense, and income taxes. Operating loss for the company's Other activities includes earnings (loss) from the company's domestic wholly-owned distribution companies, corporate activities, other income, and interest expense. The company accounts for intersegment gross sales at current market prices.

The following tables present summarized financial information concerning the company's reportable business segments and Other activities (in thousands):


Fiscal Year Ended October 31, 2021	Professional		Residential		Other		Total
Net sales	$	2,929,600	$	1,010,077	$	19,907	$	3,959,584
Intersegment gross sales (eliminations)	30,530		44		(30,574)		—
Earnings (loss) before income taxes	507,327		121,516		(129,025)		499,818
Total assets	2,032,350		388,246		515,544		2,936,140
Capital expenditures	79,515		16,730		7,767		104,012
Depreciation and amortization	$	73,747	$	13,470	$	12,099	$	99,316


Fiscal Year Ended October 31, 2020	Professional		Residential		Other		Total
Net sales	$	2,523,452	$	820,745	$	34,613	$	3,378,810
Intersegment gross sales (eliminations)	46,703		80		(46,783)		—
Earnings (loss) before income taxes	426,560		113,669		(133,159)		407,070
Total assets	1,940,844		282,061		630,323		2,853,228
Capital expenditures	49,975		13,669		14,424		78,068
Depreciation and amortization	$	70,460	$	12,607	$	12,548	$	95,615


Fiscal Year Ended October 31, 2019	Professional		Residential		Other		Total
Net sales	$	2,443,448	$	661,274	$	33,362	$	3,138,084
Intersegment gross sales (eliminations)	59,453		310		(59,763)		—
Earnings (loss) before income taxes	380,914		65,151		(123,932)		322,133
Total assets	1,592,065		430,495		307,987		2,330,547
Capital expenditures	57,246		16,970		18,665		92,881
Depreciation and amortization	$	63,885	$	11,897	$	11,916	$	87,698

During fiscal 2021, sales to one customer in the Residential segment accounted for 10.6 percent of total consolidated gross sales. During fiscal 2020 and 2019, no customer accounted for 10.0 percent or more of total consolidated gross sales.

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


Fiscal Years Ended October 31	2021		2020		2019
Corporate expenses	$	(112,419)	$	(108,396)	$	(124,422)
Interest expense	(28,659)		(33,156)		(28,835)
Earnings from wholly-owned domestic distribution companies and other income, net	12,053		8,393		29,325
Total operating loss	$	(129,025)	$	(133,159)	$	(123,932)

The following geographic area data includes net sales based on product shipment destination and long-lived assets, which consist of property, plant and equipment, net, and is based on physical location in addition to allocated capital tooling from U.S. plant facilities (in thousands):


Fiscal Years Ended October 31	United States		International Countries		Total
2021
Net sales	$	3,131,954	$	827,630	$	3,959,584
Long-lived assets	$	440,555	$	47,176	$	487,731
2020
Net sales	$	2,700,694	$	678,116	$	3,378,810
Long-lived assets	$	426,378	$	41,541	$	467,919
2019
Net sales	$	2,413,153	$	724,931	$	3,138,084
Long-lived assets	$	395,937	$	41,380	$	437,317

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Revenue

12 Months Ended

Oct. 31, 2021

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 or sales 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 generally 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 the variable consideration associated with the estimated expense of certain of the company's sales promotions and incentives programs offered to customers, as well as anticipated product returns, when applicable. The company recognizes a provision for estimated variable consideration at the time revenue is recognized as a reduction of the transaction price. 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 similar product type and geographic market (in thousands):


Fiscal Year Ended October 31, 2021	Professional		Residential		Other		Total
Revenue by product type:
Equipment	$	2,530,777	$	975,832	$	11,720	$	3,518,329
Irrigation	398,823		34,245		8,187		441,255
Total net sales	$	2,929,600	$	1,010,077	$	19,907	$	3,959,584

Revenue by geographic market:
United States	$	2,268,878	$	843,169	$	19,907	$	3,131,954
International Countries	660,722		166,908		—		827,630
Total net sales	$	2,929,600	$	1,010,077	$	19,907	$	3,959,584


Fiscal Year Ended October 31, 2020	Professional		Residential		Other		Total
Revenue by product type:
Equipment	$	2,175,794	$	787,716	$	21,785	$	2,985,295
Irrigation	347,658		33,029		12,828		393,515
Total net sales	$	2,523,452	$	820,745	$	34,613	$	3,378,810

Revenue by geographic market:
United States	$	1,976,690	$	689,391	$	34,613	$	2,700,694
International Countries	546,762		131,354		—		678,116
Total net sales	$	2,523,452	$	820,745	$	34,613	$	3,378,810


Fiscal Year Ended October 31, 2019	Professional		Residential		Other		Total
Revenue by product type:
Equipment	$	2,097,965	$	628,521	$	21,449	$	2,747,935
Irrigation	345,483		32,753		11,913		390,149
Total net sales	$	2,443,448	$	661,274	$	33,362	$	3,138,084

Revenue by geographic market:
United States	$	1,853,054	$	526,737	$	33,362	$	2,413,153
International Countries	590,394		134,537		—		724,931
Total net sales	$	2,443,448	$	661,274	$	33,362	$	3,138,084

Product Revenue

The company's product revenues are generated through sales of manufactured equipment and irrigation products, including related replacement parts and accessories. For the majority of the company's products, control is transferred and revenue is recognized when the product is shipped from the company's manufacturing facilities or distribution centers to the company's customers, which primarily consist of distributors, dealers, and mass retailers. In certain situations, the company transfers control and recognizes revenue when delivery to the customer has occurred. In limited circumstances, the company ships some of its products on a consignment basis to a customer distribution center or warehouse whereby the company retains control of the product stored at the customer's distribution center or warehouse. As the

company's products are removed from the distribution center or warehouse by the customer and shipped to the retail sale location, control is transferred from the company to the customer. At that time, the company invoices the customer and recognizes revenue for these consignment transactions. The company does not offer a right of return for products shipped to the customer's retail sale location from the distribution center or warehouse. The total value of consignment inventory as of October 31, 2021 and 2020 was $37.2 million and $24.6 million, respectively.

Product revenue is recognized based on the transaction price, which is measured as the amount of consideration the company expects to receive in exchange for transferring control of a product to a customer. The company recognizes variable consideration as a reduction of the transaction price at the time of the initial product sale by applying the portfolio approach practical expedient under the accounting standards codification guidance for revenue from contracts with customers. Variable consideration typically occurs as a result of certain of the company's sales promotions and incentive programs that are determined to represent price concessions because the program either: (i) results in an immediate reduction of the transaction price with no anticipated future costs or consideration provided to the customer or (ii) the company anticipates a future cost based on historical or expected future business practice for which the company does not receive a distinct good or service in exchange for the future consideration provided to the customer under the program. Such programs primarily consist of off-invoice discounts, rebates, and floor plan and retail financing. The cost of off-invoice discounts are incurred at the time of sale as a reduction of the transaction price and as a result, have no future cost. For all other sales promotion and incentive programs recorded as a reduction of the transaction price at the time of the initial product sale, the company estimates variable consideration using the expected value method because the company anticipates providing a future price concession based on historical or expected future business practice or other factors. Estimates of variable consideration under the expected value method are primarily based on the terms of the sales arrangements and sales promotion and incentive programs with customers, historical payment and rebate claims experience, field inventory levels, quantity or mix of products sold, forecasted sales volumes, types of programs offered, and expectations for the acceptance of sales promotion and incentive programs offered in the future or changes in other relevant trends. When revenue is recognized, the estimated expense of these sales promotions and incentives programs is recorded as a reduction from gross sales within the Consolidated Statements of Earnings with a corresponding accrual recorded within sales promotions and incentives programs in the Consolidated Balance Sheets. Additionally, from time to time, the company may offer its customers the right to return eligible equipment and irrigation products, replacement parts, and accessories. Such right of return offered on the company's products is also considered to be variable consideration that is estimated and recorded as a reduction of revenue based

primarily on historical experience, anticipated sales returns estimated from sales terms, trend analysis, and other factors. The company records the obligation for product returns within accrued liabilities in the Consolidated Balance Sheets and the right-of-return asset in prepaid expenses and other current assets in the Consolidated Balance Sheets. The refund liability and right-of-return asset are remeasured for changes in the estimate at each reporting date with a corresponding adjustment to net sales and cost of sales within the Consolidated Statements of Earnings. There are no material instances where variable consideration is constrained and not recorded at the initial time of sale.

Collectability from the customer for product revenue is generally assumed to be probable because the company's financial exposure related to accounts receivable is reduced due to its wholesale floor plan financing programs, including its Red Iron joint venture. Red Iron provides floor plan inventory financing to certain dealers and distributors of the company's equipment and irrigation products. The company also has wholesale floor plan financing arrangements with separate third-party financial institutions to provide floor plan inventory financing to certain dealers not financed through Red Iron. When product sales are financed by Red Iron or other third-party financial institutions, the transactions are structured as an advance in the form of a payment to the company on behalf of a dealer or distributor with respect to invoices financed by the financial institutions. These payments extinguish the obligation of such dealer or distributor to make payment to the company under the terms of the applicable invoice. Under a separate agreement between each financial institution and the dealer or distributor, the financial institution provides a loan to the dealer or distributor for the advances paid by the financial institutions to the company. The company's product sales to customers that do not elect to finance product purchases through Red Iron or the third-party financial institutions are generally on open account with terms that generally approximate 30 to 120 days. The resulting receivables are included within receivables, net on the Consolidated Balance Sheets. The company performs ongoing credit evaluations of customers on open account terms in order to assess collectability.

Service and Extended Warranty Revenue

In certain cases, the company renders service contracts to customers, which typically range from 12 to 60 months. The company also sells separately priced extended warranty coverage on select products for a prescribed period after the standard warranty period expires, which typically range from 12 to 24 months. Under both types of contracts, the company receives payment at the inception of the contract and recognizes revenue over the term of the agreement in proportion to the costs expected to be incurred in satisfying the performance obligations under the contract.

Contract Liabilities

Contract liabilities relate to deferred revenue recognized for cash consideration 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 October 31, 2021 and October 31, 2020, $24.1 million and $21.9 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 Consolidated Balance Sheets. For the fiscal year ended October 31, 2021, the company recognized $10.0 million of the October 31, 2020 deferred revenue balance. The company expects to recognize approximately $11.1 million of the October 31, 2021 deferred revenue balance within net sales in the Consolidated Statements of Earnings in fiscal 2022 and $13.0 million thereafter.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

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+ Details

Goodwill and Other Intangible Assets

12 Months Ended

Oct. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets


5			Goodwill and Other Intangible Assets

The company's acquisition of Venture Products on March 2, 2020 resulted in the recognition of $61.2 million and $75.3 million of goodwill and other intangible assets, respectively. For additional information on the company's acquisition of Venture Products, refer to Note 2, Business Combinations and Asset Acquisitions.

Goodwill

The changes in the carrying amount of goodwill by reportable segment for fiscal 2021 and 2020 were as follows (in thousands):


	Professional		Residential		Other		Total
Balance as of October 31, 2019	$	350,250	$	10,469	$	1,534	$	362,253
Goodwill acquired	62,252		—		—		62,252
Purchase price allocation adjustment	(866)		—		—		(866)

Translation adjustments	425		11		—		436
Balance as of October 31, 2020	412,061		10,480		1,534		424,075

Purchase price allocation adjustment	(1,027)		—		—		(1,027)
Goodwill divested	—		—		(1,534)		(1,534)
Translation adjustments	45		121		—		166
Balance as of October 31, 2021	$	411,079	$	10,601	$	—	$	421,680

Other Intangible Assets

The components of other intangible assets were as follows (in thousands, except weighted-average useful life in years):


October 31, 2021	Weighted-Average Useful Life in Years	Gross Carrying Amount		Accumulated Amortization		Net
Patents	9.9	$	18,283	$	(14,670)	$	3,613
Non-compete agreements	5.5	6,914		(6,872)		42
Customer-related	18.2	239,679		(62,617)		177,062
Developed technology	7.0	87,473		(43,348)		44,125
Trade names	15.4	7,524		(2,969)		4,555
Backlog and other	0.6	4,390		(4,390)		—
Total finite-lived	14.6	364,263		(134,866)		229,397
Indefinite-lived - trade names		190,644		—		190,644
Total other intangible assets, net		$	554,907	$	(134,866)	$	420,041


October 31, 2020	Weighted-Average Useful Life in Years	Gross Carrying Amount		Accumulated Amortization		Net
Patents	9.9	$	18,257	$	(13,919)	$	4,338
Non-compete agreements	5.5	6,892		(6,831)		61
Customer-related	18.2	239,634		(48,005)		191,629
Developed technology	7.6	51,995		(35,208)		16,787
Trade names	15.4	7,530		(2,552)		4,978
Backlog and other	0.6	4,390		(4,390)		—
Total finite-lived	15.5	328,698		(110,905)		217,793
Indefinite-lived - trade names		190,512		—		190,512
Total other intangible assets, net		$	519,210	$	(110,905)	$	408,305

Amortization expense for finite-lived intangible assets for the fiscal years ended October 31, 2021, 2020, and 2019 was $23.8 million, $19.5 million, and $18.4 million, respectively. Estimated amortization expense for the succeeding fiscal years is as follows: 2022, $24.2 million; 2023, $22.4 million; 2024, $21.4 million; 2025, $19.8 million; 2026, $19.0 million; and after 2026, $122.6 million.

Indebtedness

12 Months Ended

Oct. 31, 2021

Debt Disclosure [Abstract]

Indebtedness


6			Indebtedness

The following is a summary of the company's indebtedness (in thousands):


October 31	2021		2020
Revolving credit facility	$	—	$	—
$270 million term loan	270,000		—
$200 million term loan	—		100,000
$300 million term loan	—		180,000
$190 million term loan	—		90,000
3.81% series A senior notes	100,000		100,000
3.91% series B senior notes	100,000		100,000
7.8% debentures	100,000		100,000
6.625% senior notes	124,040		123,978
Less: unamortized discounts, debt issuance costs, and deferred charges	2,798		2,855
Total long-term debt	691,242		791,123
Less: current portion of long-term debt	—		99,873
Long-term debt, less current portion	$	691,242	$	691,250

Principal payments required on the company's outstanding indebtedness, based on the maturity dates defined within the company's debt arrangements, for each of the next five fiscal years are as follows: fiscal 2022, $0.0 million; fiscal 2023, $0.0 million; fiscal 2024, $0.0 million; fiscal 2025, $27.0 million; fiscal 2026, $243.0 million; and after fiscal 2026, $425.0 million.

Revolving Credit Facility

On October 5, 2021, the company entered into an amended and restated credit agreement ("amended credit agreement") that provided for, among other things, a five-year unsecured revolving credit facility with a borrowing capacity of up to $600.0 million ("revolving credit facility") that matures on October 5, 2026 and replaced the company's prior $600.0 million unsecured senior revolving credit facility scheduled to mature on June 19, 2023. Included in the 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 revolving credit facility may be increased by an amount of 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 as defined in the credit agreement. As of October 31, 2021, the company had no outstanding borrowings under the revolving credit facility and $3.1 million outstanding under the sublimit for standby letters of credit, resulting in $596.9 million of unutilized availability under the revolving credit facility. As of October 31, 2020, the company had no outstanding borrowings under the prior revolving credit facility and $2.5 million outstanding under the prior sublimit for standby

letters of credit, resulting in $597.5 million of unutilized availability under the prior revolving credit facility.

Outstanding loans under the revolving credit facility (other than swingline loans), if applicable, 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. During fiscal 2020 and 2019, the company incurred interest expense of $0.8 million, and $1.9 million, respectively, on the outstanding borrowings under the prior revolving credit facility. No interest expense was incurred under the company's current and prior revolving credit facilities during fiscal 2021.

The company's revolving credit facility contains customary covenants, including, without limitation, financial covenants, such as the maintenance of a maximum leverage ratio; and negative covenants, which among other things, limit cash dividends, disposition of assets, consolidations and mergers, 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 October 31, 2021.

$270.0 Million Term Loan Credit Agreement

The amended credit agreement executed on October 5, 2021 also provided for a five-year unsecured term loan in an aggregate principal amount of $270.0 million, the entire amount of which was funded on October 5, 2021 and matures on October 5, 2026 ("$270.0 million term loan"). Under the amended credit agreement, incremental term loan commitments may be established at the company's election and the approval of the borrowers on the $270.0 million term loan by an amount of up to $100.0 million.

Beginning December 31, 2024, the company is required to make quarterly principal amortization payments on the $270.0 million term loan equal to $6.75 million. On October 5, 2026, the aggregate principal amount of any remaining outstanding borrowings under the $270.0 million term loan is required to be repaid. The $270.0 million term loan may be prepaid and terminated at the company's election at any time without penalty or premium. Amounts repaid or prepaid may not be reborrowed. As of October 31, 2021, there was $270.0 million of outstanding borrowings under the $270.0 million term loan.

Outstanding borrowings under the $270.0 million term loan 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. Interest is payable quarterly in arrears. For the fiscal year ended October 31, 2021, the company incurred interest expense of $0.2 million on the outstanding borrowings under the $270.0 million term loan. No interest expense was incurred during fiscal 2020 and 2019.

The $270.0 million term loan contains customary covenants, including, without limitation, financial covenants generally consistent with those applicable under the company's revolving credit facility and the company was in compliance with all covenants as of October 31, 2021.

$500.0 Million 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 CMW purchase price 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 ("$200.0 million term loan) and a $300.0 million five-year unsecured senior term loan facility maturing on April 1, 2024 ("$300.0 million term loan" and collectively with the $200.0 million term loan, the "$500.0 million term loan"). The funds under the $500.0 million term loan were received on the CMW closing date.

As of October 31, 2020, the company had prepaid $100.0 million and $120.0 million of the outstanding principal balances of the $200.0 million term loan and $300.0 million term loan, respectively. Thus, as of October 31, 2020, there was $100.0 million and $180.0 million of outstanding borrowings under the $200.0 million term loan and $300.0 million term loan, respectively. During the second quarter of fiscal 2021, the company prepaid $10.0 million of the remaining outstanding borrowings under the $300.0 million term loan. As a result of the execution of the amended credit agreement during the fourth quarter of fiscal 2021, the remaining $100.0 million and $170.0 million outstanding principal balances under the $200.0 million term loan and $300.0 million term loan, respectively, were paid in full. As a result of the prepayment, there were no outstanding borrowings under the $200.0 million three-year unsecured senior term loan facility and $300.0 million five-year unsecured senior term loan facility, respectively, as of October 31, 2021.

Interest was previously calculated on outstanding borrowings under the $500.0 million term loan by utilizing 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 $500.0 million term loan. Interest was payable quarterly in arrears. During the fiscal years ended October 31, 2021, 2020, and 2019, the company incurred

$3.1 million, $5.2 million, and $7.5 million, respectively, of interest expense on the outstanding borrowings of the $500.0 million term loan.

$190.0 Million Term Loan Credit Agreement

On March 30, 2020, the company entered into a $190.0 million term loan credit agreement ("$190.0 million term loan") with certain financial institutions for the purpose of refinancing certain of its outstanding borrowings incurred in connection with the company's acquisition of Venture Products on March 2, 2020, as well as a precautionary measure to increase the company's liquidity and preserve financial flexibility in light of the uncertainty in the global financial and commercial markets as a result of COVID-19. The $190.0 million term loan provided for a $190.0 million three-year unsecured senior term loan facility maturing on June 19, 2023.

As of October 31, 2020, the company had prepaid $100.0 million of the outstanding principal balance of the $190.0 million term loan, resulting in a remaining outstanding principal balance of $90.0 million. During the first quarter of fiscal 2021, the company prepaid the remaining $90.0 million outstanding principal balance of the $190.0 million term loan. As a result of the prepayment, there were no outstanding borrowings under the $190.0 million term loan as of October 31, 2021.

Interest was previously calculated on outstanding borrowings under the $190.0 million term loan by utilizing a variable rate based on LIBOR or an alternative variable rate with a minimum rate of 0.75 percent, subject to an additional basis point spread as defined in the term loan credit agreement. Interest was payable quarterly in arrears. For the fiscal years ended October 31, 2021 and 2020, the company incurred interest expense of approximately $0.3 million and $2.4 million, respectively, on the outstanding borrowings under the $190.0 million term loan.

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 unsecured senior obligations of the company.

No principal is due on the Senior Notes prior to their stated due dates. The company has the right to prepay all or a portion of either series of the Senior Notes in amounts 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 Note of such 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 offer to prepay all Senior Notes for the principal amount thereof plus accrued and unpaid interest, if any, to the date of prepayment.

Interest on the Senior Notes is payable semiannually on the 15th day of June and December in each year. The company incurred interest expense on the Senior Notes of $7.7 million, $7.7 million, and $2.6 million, respectively, for the fiscal years ended October 31, 2021, 2020, and 2019.

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 October 31, 2021.

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. The company incurred interest expense of $8.0 million, $8.0 million, and $7.9 million, respectively, for the fiscal years ended October 31, 2021, 2020 and 2019.

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 is 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. 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 fiscal years ended October 31, 2021, 2020, and 2019, the company incurred interest expense of $8.4 million, respectively.

Management Actions

12 Months Ended

Oct. 31, 2021

Discontinued Operations and Disposal Groups [Abstract]

Management Actions


7			Management Actions

Toro Underground Wind Down

On August 1, 2019, during the company's fiscal 2019 third quarter, the company announced a plan to wind down the company's Toro-branded large directional drill and riding trencher product categories within its Professional segment product portfolio ("Toro underground wind down"). As of October 31, 2020, the company had completed the Toro underground wind down; and as a result, no charges were incurred during the fiscal year ended October 31, 2021. In connection with the Toro underground wind down, for the fiscal year ended October 31, 2020, the company recorded $0.9 million of pre-tax charges related to write-downs to net realizable value within cost of sales in the Consolidated Statements of Earnings. For the fiscal year ended October 31, 2019, the company recorded $8.8 million of pre-tax charges related to inventory write-downs to net realizable value and accelerated depreciation on fixed assets that will no longer be used within cost of sales in the Consolidated Statements of

Earnings as a result of the Toro underground wind down. Additionally, the company recorded $1.2 million of pre-tax charges related to inventory retail support activities within net sales in the Consolidated Statements of Earnings during the fiscal year ended October 31, 2019. No pre-tax charges related to inventory retail support activities were incurred during the fiscal years ended October 31, 2021 and 2020.

Corporate Restructuring

During the fourth quarter of fiscal 2019, the company incurred corporate restructuring charges related to employee severance costs as the company focused on aligning the company's operations in the most strategic and cost-effective structure subsequent to the CMW transaction. As a result of such corporate restructuring, the company recorded pre-tax charges of $0.6 million within cost of sales and pre-tax charges of $6.0 million within selling, general and administrative expense in the Consolidated Statements of Earnings during fiscal 2019. The company did not incur additional charges in fiscal 2021 and 2020 related to this corporate restructuring event.

Divestitures

On November 2, 2020, during the first quarter of fiscal 2021, the company completed the sale of its Northeastern U.S. distribution company and during the fourth quarter of fiscal 2019, the company divested of a used underground construction equipment business, which was acquired as a result of the company's acquisition of CMW. The divestitures were immaterial based on the company's Consolidated Financial Condition and Results of Operations.

Investment in Joint Venture

12 Months Ended

Oct. 31, 2021

Equity Method Investments and Joint Ventures [Abstract]

Investment in Joint Venture


8			Investment in Joint Venture

The company is party to a joint venture with TCFIF, a subsidiary of The Huntington National Bank, established as Red Iron, the primary purpose of which is to provide inventory financing to certain distributors and dealers of certain of the company’s products in the U.S. These financing 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, under which the company has agreed to repurchase certain repossessed products, 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 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 fiscal years ended October 31, 2021, 2020, and 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 during fiscal 2021, 2020, and 2019 was $2,282.6 million, $1,832.5 million, and $1,924.9 million, respectively. The total amount of receivables due from Red Iron to the company as of October 31, 2021 and 2020 were $31.0 million and $12.6 million, respectively.The company owns 45 percent of Red Iron and TCFIF owns 55 percent of Red Iron. The company accounts for its investment in Red Iron under the equity method of accounting. The company and TCFIF each contributed a specified amount of the estimated cash required to enable Red Iron to purchase the company's inventory financing receivables and to provide financial support for Red Iron's inventory financing programs. Red Iron borrows the remaining requisite estimated cash utilizing a $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 October 31, 2021 and 2020 was $20.7 million and $19.7 million, respectively. The company has not guaranteed the outstanding indebtedness of Red Iron.

Income Taxes

12 Months Ended

Oct. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes


9			Income Taxes

Earnings Before Income Taxes

Earnings before income taxes were as follows (in thousands):


Fiscal Years Ended October 31	2021		2020		2019
Earnings before income taxes:
United States	$	446,256	$	369,016	$	283,730
Foreign	53,562		38,054		38,403
Total earnings before income taxes	$	499,818	$	407,070	$	322,133

Reconciliation of Effective Tax Rate

A reconciliation of the statutory federal income tax rate to the company's effective tax rate is summarized as follows:


Fiscal Years Ended October 31	2021		2020		2019
Statutory federal income tax rate	21.0	%	21.0	%	21.0	%
Excess deduction for stock-based compensation	(1.5)		(1.7)		(3.7)
Domestic manufacturer's deduction	—		—		0.1
State and local income taxes, net of federal benefit	1.4		2.4		1.1
Foreign operations	(0.5)		(0.6)		(0.3)
Federal research tax credit	(1.4)		(1.7)		(1.5)
Foreign-derived intangible income	(0.9)		—		(1.3)
Remeasurement of deferred tax assets and liabilities	—		—		(0.1)
Deemed repatriation tax	—		—		(0.2)
Other, net	(0.1)		(0.4)		(0.2)
Effective tax rate	18.0	%	19.0	%	14.9	%

The Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") was signed into law on March 27, 2020 and allowed for delayed payment of employer payroll taxes, among other items. The company has reflected the impact of the CARES Act for the fiscal years ended October 31, 2021 and 2020 within its Consolidated Financial Statements and such impact was not material to the company's Consolidated Financial Statements.

Provision for Income Taxes

Components of the company's provision for income taxes were as follows (in thousands):


Fiscal Years Ended October 31	2021		2020		2019
Current provision:
Federal	$	90,222	$	58,243	$	37,415
State	15,973		11,322		7,495
Foreign	9,163		5,534		6,846
Total current provision	$	115,358	$	75,099	$	51,756
Deferred provision (benefit):
Federal	$	(18,361)	$	1,710	$	(37)
State	(6,486)		634		(3,205)
Foreign	(573)		(74)		(364)
Total deferred provision (benefit)	(25,420)		2,270		(3,606)
Total provision for income taxes	$	89,938	$	77,369	$	48,150

Deferred Income Taxes

The components of the company's deferred income tax assets and liabilities were as follows (in thousands):


Fiscal Years Ended October 31	2021		2020
Deferred income tax assets:
Compensation and benefits	$	34,403	$	30,363
Warranty and insurance	30,840		28,480
Lease liabilities	17,735		20,843
Advertising and sales promotions and incentives	6,669		6,937
Inventory	21,118		4,937
Deferred revenue	4,232		2,910
Other	10,520		9,643
Valuation allowance	(3,205)		(3,570)
Deferred income tax assets	$	122,312	$	100,543
Deferred income tax liabilities:
Right-of-use assets	$	(17,071)	$	(20,179)
Depreciation	(47,551)		(49,018)
Amortization	(102,287)		(95,315)
Deferred income tax liabilities	(166,909)		(164,512)
Deferred income tax liabilities, net	$	(44,597)	$	(63,969)

The net change in the total valuation allowance between the fiscal years ended October 31, 2021 and 2020 was a decrease of $0.4 million. The change in valuation allowance is related to state tax credits, branch foreign tax credits, capital loss carryforwards, and net operating losses that are expected to expire prior to utilization. As of October 31, 2021, the company had net operating loss carryforwards of approximately $1.3 million in foreign jurisdictions, which are comprised of $0.9 million that do not expire and $0.4 million

that expire between fiscal 2025 and fiscal 2038. The company also had domestic credit carryforwards of $2.7 million that expire between fiscal 2028 and fiscal 2042.

The company considers that $22.3 million of the total undistributed earnings of its foreign operations are intended to be indefinitely reinvested. Should these earnings be distributed in the future in the form of dividends or otherwise, the company may be subject to foreign withholding taxes, state income taxes, and/or additional federal taxes for currency fluctuations. As of October 31, 2021, the unrecognized deferred tax liabilities for temporary differences related to the company’s investment in non-U.S. subsidiaries, and any withholding, state, or additional federal taxes that may be applied upon any future repatriation, are expected to be immaterial.

Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):


Unrecognized tax benefits as of October 31, 2020	$	2,860
Increase as a result of tax positions taken during a prior period	59
Decrease as a result of tax positions taken during a prior period	(98)
Increase as a result of tax positions taken during the current period	397

Reductions as a result of statute of limitations lapses	(105)
Unrecognized tax benefits as of October 31, 2021	$	3,113

The company recognizes interest and penalties related to unrecognized tax benefits as a component of the provision for income taxes within the Consolidated Statements of Earnings. In addition to the unrecognized tax benefits of $3.1 million, which have been recorded as an other accrued liability within the Consolidated Balance Sheets as of October 31, 2021, the company recorded $1.0 million of accrued interest and penalties as an other accrued liability within the Consolidated Balance Sheets as of October 31, 2021. Included in the balance of unrecognized tax benefits as of October 31, 2021 are potential benefits of $3.3 million that, if recognized, would affect the effective tax rate.

The company and its wholly owned subsidiaries file income tax returns in the U.S. federal jurisdiction, and numerous state and foreign jurisdictions. With few exceptions, the company is no longer subject to U.S. federal, state and local, and foreign income tax examinations by tax authorities for taxable years before fiscal 2017. The company is under audit in certain state jurisdictions and expects various statutes of limitation to expire during the next 12 months. Due to the uncertainty related to the response of taxing authorities, a range of outcomes cannot be reasonably estimated at this time.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI http://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Stock-Based Compensation

12 Months Ended

Oct. 31, 2021

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation


10			Stock-Based Compensation

The company maintains the 2010 plan for executive officers, other employees, and non-employee Board members. The 2010 plan allows the company to grant stock-based compensation awards to such individuals, including stock options, restricted stock units, restricted stock, performance share awards, and unrestricted common stock awards. The number of unissued shares of common stock available for future stock-based compensation award grants under the 2010 plan was 3,063,231 as of October 31, 2021. Shares of common stock issued upon the exercise, vesting, or settlement of stock options, restricted stock units, and performance shares are issued from treasury shares.

Compensation costs related to stock-based compensation awards were as follows (in thousands):


Fiscal Years Ended October 31	2021		2020		2019
Stock option awards	$	9,971	$	9,163	$	6,537
Performance share awards	6,861		2,123		3,070
Restricted stock unit awards	4,306		3,429		3,230
Unrestricted common stock awards	671		693		592
Total compensation cost for stock-based compensation awards	$	21,809	$	15,408	$	13,429
Related tax benefit from stock-based compensation awards	$	5,221	$	3,696	$	3,200

Stock Option Awards

Under 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 Board members on an annual basis in the first quarter of the company's fiscal year but may also be granted throughout the fiscal year in connection with hiring, mid-year promotions, leadership transition, or retention, as needed and applicable. Options generally vest one-third each year over a three-year period and have a ten-year term but in certain circumstances, the vesting requirement may be modified such that 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 determined under the Black-Scholes valuation method is generally recognized for these awards over the vesting period. Compensation cost recognized for other employees not considered executive officers and non-employee Board members is net of estimated forfeitures, which are determined at the time of grant based on historical forfeiture experience. Stock options granted to executive officers and other employees are subject to accelerated expensing 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 Board member has served on the company's Board for ten full fiscal years or more, the awards will not be forfeited but continue to vest according to their schedule following retirement. 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 various inputs and assumptions under 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 Board members are expected to exercise their stock options, which is primarily based on historical exercise experience. The company groups executive officers and non-employee Board members for valuation purposes based on similar historical exercise behavior. Expected stock price volatility is 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. The expected 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 used under the Black-Scholes valuation method for options granted in the following fiscal periods:


Fiscal Years Ended October 31	2021			2020			2019
Expected life of option in years	6.21			6.31			6.31
Expected stock price volatility	23.26		%	19.53		%	19.83		%
Risk-free interest rate	0.55		%	1.73		%	2.77		%
Expected dividend yield	0.86		%	0.99		%	1.18		%
Per share weighted-average fair value at date of grant	$	19.39		$	15.23		$	12.83

The table below presents stock option activity for fiscal 2021:


	Stock Option Awards	Weighted-Average Exercise Price		Weighted-Average Contractual Life (years)	Aggregate Intrinsic Value (in thousands)
Outstanding as of October 31, 2020	2,646,603	$	54.40	6.2	$	73,305
Granted	546,569	92.73
Exercised	(403,134)	35.02
Forfeited	(18,684)	81.29

Outstanding as of October 31, 2021	2,771,354	$	64.60	6.3	$	85,576
Exercisable as of October 31, 2021	1,691,552	$	53.90	5.0	$	70,313

As of October 31, 2021, there was $3.1 million of total unrecognized compensation cost related to unvested stock options that is expected to be recognized over a weighted-average period of 1.92 years.

The table below presents the total market value of stock options exercised and the total intrinsic value of options exercised during the following fiscal years (in thousands):


Fiscal Years Ended October 31	2021		2020		2019
Market value of stock options exercised	$	40,071	$	56,761	$	92,352
Intrinsic value of stock options exercised1	$	25,952	$	33,920	$	62,288

1 Intrinsic value is calculated as the amount by which the stock price at exercise date exceeded the option exercise price.

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, 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, which is equal to the closing price of the company's common stock on the date of grant, and the probability of achieving each performance goal.

Factors related to the company's performance share awards are as follows (in thousands, except per award data):


Fiscal Years Ended October 31	2021		2020		2019
Weighted-average fair value per award at date of grant	$	90.59	$	77.33	$	59.58
Fair value of performance share awards vested	$	3,428	$	6,271	$	6,300

The table below presents fiscal 2021 activity for unvested performance share awards:


	Performance Shares	Weighted-Average Fair Value at Date of Grant
Unvested as of October 31, 2020	187,421	$	67.58
Granted	53,976	90.59
Vested	(37,153)	65.40

Unvested as of October 31, 2021	204,244	$	76.16

As of October 31, 2021, there was $9.0 million of total unrecognized compensation cost related to unvested performance share awards that is expected to be recognized over a weighted-average period of 1.80 years.

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. In rare circumstances, such awards may have performance-based rather than time-based vesting requirements. Compensation cost equal to the grant date fair value, net of estimated forfeitures, is recognized for these awards over the vesting period. The grant date fair value 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 and estimated forfeitures are determined on the grant date based on historical forfeiture experience.

Factors related to the company's restricted stock unit awards are as follows (in thousands, except per award data):


Fiscal Years Ended October 31	2021		2020		2019
Weighted-average fair value per award at date of grant	$	97.87	$	74.55	$	66.26
Fair value of restricted stock units vested	$	4,464	$	3,410	$	3,083

The table below presents fiscal 2021 activity for unvested restricted stock units:


	Restricted Stock Units	Weighted-Average Fair Value at Date of Grant
Unvested as of October 31, 2020	100,280	$	67.69
Granted	73,098	97.87
Vested	(44,142)	65.68
Forfeited	(4,984)	79.15
Unvested as of October 31, 2021	124,252	$	85.54

As of October 31, 2021, there was $5.3 million of total unrecognized compensation cost related to unvested restricted stock units that is expected to be recognized over a weighted-average period of 2.19 years.

Unrestricted Common Stock Awards

During fiscal 2021, 2020, and 2019, 8,070, 8,920, and 10,090 shares, respectively, of fully vested unrestricted common stock awards were granted to certain Board members as a component of their compensation for their service on the Board and were recorded within selling, general and administrative expense in the Consolidated Statements of Earnings. Additionally, our Board members may elect to convert a portion or all of their calendar year annual retainers otherwise payable in cash into shares of the company's common stock.

Deferred Compensation Plan

The company maintains a deferred compensation plan that allows executive officers and certain other employees that receive performance share awards under the 2010 plan to defer receipt of shares of the company's common stock paid out under such awards to a date in the future. Participants can defer up to 100 percent of the common stock payout and are always 100 percent vested in their accounts. Common stock payout deferrals under this plan are held in a rabbi trust and

treated in a manner similar to treasury shares and are recorded at cost within stockholders' equity in the Consolidated Balance Sheets as of October 31, 2021 and 2020. The total of common stock required to settle this deferred compensation obligation is included in the denominator of the calculation of both basic and diluted net earnings per share of common stock.

Stockholders' Equity

12 Months Ended

Oct. 31, 2021

Stockholders' Equity Note [Abstract]

Stockholders' Equity


11			Stockholders' Equity

Stock Repurchase Program

On December 3, 2015, the company's Board authorized the repurchase of 8,000,000 shares of the company's common stock in open-market or in privately negotiated transactions. On December 4, 2018, the company's Board authorized the repurchase of up to an additional 5,000,000 shares of common stock in open-market or in privately negotiated transactions under the authorized stock repurchase program. During fiscal 2021 and 2019, the company paid $302.3 million and $20.0 million to repurchase 2,989,794 and 359,758 shares, respectively, under the authorized repurchase program; and as a result of the fiscal 2021 repurchase activity, no shares remained authorized under the December 3, 2015 tranche of authorized shares under the company's stock repurchase program as of October 31, 2021. The company curtailed the repurchase of shares of its common stock during fiscal 2020 as a result of the Venture Products transaction and to enhance its liquidity position in response to COVID-19; and thus, no shares were repurchased during fiscal 2020. The company curtailed the repurchase of shares of its common stock during the company's fiscal 2019 second, third, and fourth quarters as a result of the CMW transaction. As of October 31, 2021, 4,052,462 shares remained authorized by the company's Board for repurchase under the December 4, 2018 tranche of authorized shares under the company's stock repurchase program. This authorized stock repurchase program has no expiration date but may be terminated by the Board at any time. The authorized stock repurchase program does not include shares of the company's common stock surrendered by employees to satisfy minimum tax withholding obligations upon vesting of certain stock-based compensation awards granted under the company's 2010 plan.

Treasury Shares

Treasury shares generally consist of shares of the company's common stock repurchased under the company's Board authorized stock repurchase program. The company values treasury shares on an average cost basis. As of October 31, 2021, the company had a total of 22,566,717 treasury shares at a total average cost of $1,595.8 million. As of October 31, 2020, the company had a total of 20,545,330 treasury shares at a total average cost of $1,323.2 million.

Accumulated Other Comprehensive Loss

The components of AOCL, net of tax, within the Consolidated Statements of Stockholders' Equity were as follows (in thousands):


As of October 31	2021		2020
Foreign currency translation adjustments	$	19,535	$	24,508
Pension benefits	3,899		5,106
Cash flow derivative instruments	2,562		4,648
Total accumulated other comprehensive loss	$	25,996	$	34,262

The components and activity of AOCL, net of tax, were as follows (in thousands):


	Foreign Currency Translation Adjustments		Pension Benefits		Cash Flow Derivative Instruments		Total
Balance as of October 31, 2020	$	24,508	$	5,106	$	4,648	$	34,262
Other comprehensive income before reclassifications	(4,973)		(1,207)		(12,830)		(19,010)
Amounts reclassified from AOCL	—		—		10,744		10,744
Net current period other comprehensive income	(4,973)		(1,207)		(2,086)		(8,266)
Balance as of October 31, 2021	$	19,535	$	3,899	$	2,562	$	25,996


	Foreign Currency Translation Adjustments		Pension Benefits		Cash Flow Derivative Instruments		Total
Balance as of October 31, 2019	$	31,025	$	4,861	$	(3,837)	$	32,049
Other comprehensive (income) loss before reclassifications	(6,517)		245		14,159		7,887
Amounts reclassified from AOCL	—		—		(5,674)		(5,674)
Net current period other comprehensive (income) loss	(6,517)		245		8,485		2,213
Balance as of October 31, 2020	$	24,508	$	5,106	$	4,648	$	34,262

For additional information on the components reclassified from AOCL to the respective line items in net earnings for derivative instruments refer to Note 14, Derivative Instruments and Hedging Activities.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

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-Name Accounting Standards Codification
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Publisher FASB
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Publisher FASB
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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Commitments and Contingencies

12 Months Ended

Oct. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies


12			Commitments and Contingencies

Customer Financing Arrangements

Wholesale Financing

The company is party to a joint venture with TCFIF, established as Red Iron, to provide wholesale financing to certain dealers and distributors of certain of the company's products. Refer to Note 8, Investment in Joint Venture, for additional information related to Red Iron. Under a separate agreement, TCFCFC provides inventory financing to dealers of certain of the company's products in Canada. The company also has floor plan financing agreements with other third-party financial institutions to provide floor plan financing to certain dealers and distributors not financed through Red Iron, which include agreements with third-party financial institutions in the U.S. and internationally. These third-party financial institutions and TCFCFC financed $460.5 million and $410.7 million of receivables for such dealers and distributors during the fiscal years ended October 31, 2021 and 2020, respectively. As of October 31, 2021 and 2020, $151.5 million and $137.6 million, respectively, of receivables financed by the third-party financing institutions and TCFCFC, excluding Red Iron, were outstanding.

The company 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. Additionally, as a result of the company's floor plan financing agreements with the separate third-party financial institutions, the company also entered into inventory repurchase agreements with the separate third-party financial institutions. Under such inventory repurchase agreements, the company has agreed to repurchase products repossessed by the separate third-party financial institutions. For the fiscal years ended October 31, 2021 and 2020, the company was contingently liable to repurchase up to a maximum amount of $96.8 million and $128.1 million, respectively, of inventory related to receivables under these inventory repurchase agreements. The company's financial exposure under these inventory repurchase agreements is limited to the difference between the amount paid to Red Iron or other third-party financing institutions for repurchases of inventory and the amount received upon subsequent resale of the repossessed product. The company has repurchased immaterial amounts of inventory pursuant to such arrangements during the fiscal years ended October 31, 2021, 2020, and 2019.

End-User Financing

The company has agreements with third-party financing companies to provide financing options to end-customers throughout the world. The company has no material contingent liabilities for residual value or credit collection risk under these agreements with third-party financing companies. From time to time, the company enters into

agreements where it provides recourse to third-party finance companies in the event of default by the end-customer for financing payments to the third-party finance company. The company's maximum exposure for credit collection for the fiscal years ended October 31, 2021 and 2020 was $11.4 million and $12.5 million, respectively.

Purchase Commitments

As of October 31, 2021, the company had $57.1 million of noncancelable purchase commitments with certain of the company's suppliers for commodities as part of the normal course of business. As of October 31, 2021, the company did not have any material noncancelable purchase commitments related to capital expenditures for renovation and expansion efforts at the company's facilities and other property, plant and equipment.

Litigation

From time to time, 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 occasionally 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 reviews certain patents issued by the U.S. Patent and Trademark Office and foreign patent offices. The company believes these activities help minimize its risk of being a defendant in patent infringement litigation.

The company records a liability in its 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 the company's Consolidated Results of Operations, Financial

Position, or Cash Flows. In situations where the company receives, or expects to receive, a favorable ruling related to a litigation settlement, the company follows the accounting standards codification guidance for gain contingencies. The company does not allow for the recognition of a gain contingency within its Consolidated Financial Statements prior to the settlement of the underlying events or contingencies associated with the gain contingency. As a result, the consideration related to a gain contingency is recorded in the Consolidated Financial Statements during the period in which all underlying events or contingencies are resolved and the gain is realized.

Litigation Settlement

On November 19, 2020, Exmark Manufacturing Company Incorporated ("Exmark"), a wholly-owned subsidiary of the company, and Briggs & Stratton Corporation (“BGG”) entered into a settlement agreement (“Settlement Agreement”) relating to the decade-long patent infringement litigation that Exmark originally filed in May 2010 against Briggs & Stratton Power Products Group, LLC (“BSPPG”), a former wholly-owned subsidiary of BGG (Case No. 8:10CV187, U.S. District Court for the District of Nebraska) (the “Infringement Action”). In the Infringement Action, Exmark alleged that certain mower decks manufactured by BSPPG infringed an Exmark mower deck patent. Despite favorable judgments in the Infringement Action in favor of Exmark, including with regard to awarded damages, actions by BGG during the second half of calendar year 2020 put in jeopardy the certainty and timing of the eventual receipt of the damages awarded to Exmark in the Infringement Action, including (i) the filing by BGG and certain of its subsidiaries for bankruptcy relief under chapter 11 of title 11 of the United States Bankruptcy Code (“BGG Bankruptcy”); (ii) the sale of substantially all the assets (but not certain liabilities, including the Infringement Action) of BGG and its subsidiaries to a third-party pursuant to Section 363 of the United States Bankruptcy Code; and (iii) a petition filed by BGG for a panel rehearing of the United States Court of Appeals for the Federal Circuit's decision in the Infringement Action (“Rehearing Petition”).

As a result, on November 19, 2020, Exmark entered into the Settlement Agreement with BGG which provided, among other things, that (i) upon approval by the bankruptcy court, and such approval becoming final and nonappealable, BGG agreed to pay Exmark $33.65 million (“Settlement Amount”), (ii) BGG agreed to immediately withdraw the Rehearing Petition and otherwise not pursue additional appellate review regarding the Infringement Action, and (iii) after receipt of the Settlement Amount, Exmark agreed to release a supersedeas appeal bond that had been obtained by BGG to support payment of the damages awarded to Exmark in the Infringement Action. On November 20, 2020, BGG filed a motion to withdraw the Rehearing Petition and on December 16, 2020, the bankruptcy court approved the Settlement Agreement. During January 2021, the first quarter of fiscal 2021, the Settlement Amount was received by Exmark in connection with the settlement of the Infringement

Action and at such time, the underlying events and contingencies associated with the gain contingency related to the Infringement Action were satisfied. As such, the company recognized in selling, general and administrative expense within the Consolidated Statements of Earnings during the first quarter of fiscal 2021 (i) the gain associated with the Infringement Action and (ii) a corresponding expense related to the contingent fee arrangement with the company's external legal counsel customary in patent infringement cases equal to approximately 50 percent of the Settlement Amount.

Leases

12 Months Ended

Oct. 31, 2021

Leases [Abstract]

Leases


13			Leases

The company adopted ASU No. 2016-02, Leases (Topic) 842, 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 Consolidated Balance Sheet as of such date. Accordingly, the company's Consolidated Financial Statements for the fiscal years ended October 31, 2021 and 2020 have been prepared and presented in accordance with ASC Topic 842, Leases, and the company's Consolidated Financial Statements for the fiscal year ended October 31, 2019 continue to be prepared and presented in accordance with the legacy lease accounting guidance at ASC Topic 840, Leases.

The company enters into contracts that are, or contain, operating lease agreements for certain property, plant, or equipment assets utilized 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. 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 in cost of sales or selling, general and administrative expense within the Consolidated Statements of Earnings depending on the nature and use of the identified asset underlying the respective operating lease arrangement. 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 market 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 (in thousands):


Fiscal Year Ended October 31	2021		2020
Operating lease expense	$	20,361	$	19,637
Short-term lease expense	2,953		2,949
Variable lease expense	97		134
Total lease expense	$	23,411	$	22,720

Total lease expense related to the company's operating leases under the legacy lease accounting guidance at ASC Topic 840, Leases, was $34.1 million for the fiscal year ended October 31, 2019.

The following table presents supplemental cash flow information related to the company's operating leases (in thousands):


Fiscal Year Ended October 31	2021		2020
Operating cash flows for amounts included in the measurement of lease liabilities	$	18,877	$	17,762
Right-of-use assets obtained in exchange for lease obligations	$	5,390	$	22,667

The following table presents other lease information related to the company's operating leases as of October 31, 2021 and October 31, 2020:


	October 31, 2021		October 31, 2020
Weighted-average remaining lease term of operating leases in years	6.6		7.1
Weighted-average discount rate of operating leases	2.71	%	2.79	%

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 Consolidated Balance Sheets as of October 31, 2021 (in thousands):


	October 31, 2021
2022	$	16,833
2023	13,568
2024	12,042
2025	10,446
2026	5,408
Thereafter	18,239
Total future minimum operating lease payments	76,536
Less: imputed interest	6,501
Present value of operating lease liabilities	$	70,035

Derivative Instruments and Hedging Activities

12 Months Ended

Oct. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities


14			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, costs associated with 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 a company policy that places 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 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 and costs associated with foreign plant operations, including 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 Consolidated Balance Sheets and are subsequently reclassified to net earnings within the 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 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 costs associated with foreign plant operations, including purchases from suppliers, 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.

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 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 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 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 Consolidated Balance Sheets, recognizing future changes in the fair value within other income, net in the Consolidated Statements of Earnings. As of October 31, 2021, the notional amount outstanding of forward currency contracts designated as cash flow hedging instruments was $266.0 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 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 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 Consolidated Balance Sheets (in thousands):


Fair Value as of October 31	2021		2020
Derivative assets:
Derivatives designated as cash flow hedging instruments:
Prepaid expenses and other current assets
Forward currency contracts	$	189	$	802
Derivatives not designated as cash flow hedging instruments:
Prepaid expenses and other current assets
Forward currency contracts	133		131
Total derivative assets	$	322	$	933
Derivative liabilities:
Derivatives designated as cash flow hedging instruments:
Accrued liabilities
Forward currency contracts	$	1,260	$	2,687
Derivatives not designated as cash flow hedging instruments:
Accrued liabilities
Forward currency contracts	872		(203)
Total derivative liabilities	$	2,132	$	2,484

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 on its 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 on the Consolidated Balance Sheets (in thousands):


Fair Value as of October 31	2021		2020
Derivative assets:
Forward currency contracts:
Gross amount of derivative assets	$	423	$	1,139
Derivative liabilities offsetting derivative assets	(101)		(206)
Net amount of derivative assets	$	322	$	933
Derivative liabilities:
Forward currency contracts:
Gross amount of derivative liabilities	$	(4,853)	$	(3,233)
Derivative assets offsetting derivative liabilities	2,721		749
Net amount of derivative liabilities	$	(2,132)	$	(2,484)

The following table presents the impact and location of the amounts reclassified from AOCL into net earnings on the Consolidated Statements of Earnings and the impact of derivative instruments on the Consolidated Statements of Comprehensive Income for the company's derivatives designated as cash flow hedging instruments (in thousands):


	Gain (Loss) Reclassified from AOCL into Income				Gain (Loss) Recognized in OCI on Derivatives
Fiscal Years Ended October 31	2021		2020		2021		2020
Derivatives designated as cash flow hedging instruments:
Forward currency contracts:
Net sales	$	(10,883)	$	5,023	$	2,820	$	(8,232)
Cost of sales	139		651		(734)		(253)
Total derivatives designated as cash flow hedging instruments	$	(10,744)	$	5,674	$	2,086	$	(8,485)

During fiscal 2021 and 2020, the company recognized immaterial losses and gains, respectively, within other income, net on the Consolidated Statement of Earnings due to the discontinuance of cash flow hedge accounting on certain forward currency contracts designated as cash flow hedging instruments. As of October 31, 2021, the company expects to reclassify approximately $4.4 million of losses from AOCL to earnings during the next twelve months.

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


	Gain (Loss) Recognized in Earnings on Cash Flow Hedging Instruments
Fiscal Year Ended October 31, 2021	Net Sales		Cost of Sales
Total Consolidated Statements of Earnings income (expense) amounts in which the effects of cash flow hedging instruments are recorded	$	3,959,584	$	(2,621,092)
Gain (loss) on derivatives designated as cash flow hedging instruments:
Forward currency contracts:
Amount of gain (loss) reclassified from AOCL into earnings	(10,883)		139
Gain on components excluded from effectiveness testing recognized in earnings based on changes in fair value	$	1,427	$	614


	Gain (Loss) Recognized in Earnings on Cash Flow Hedging Instruments
Fiscal Year Ended October 31, 2020	Net Sales		Cost of Sales
Total Consolidated Statements of Earnings income (expense) amounts in which the effects of cash flow hedging instruments are recorded	$	3,378,810	$	(2,189,036)
Gain on derivatives designated as cash flow hedging instruments:
Forward currency contracts:
Amount of gain reclassified from AOCL into earnings	5,023		651
Gain on components excluded from effectiveness testing recognized in earnings based on changes in fair value	$	3,229	$	313

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


Fiscal Years Ended October 31	2021		2020
Loss on derivative instruments not designated as cash flow hedging instruments:
Forward currency contracts:
Other income, net	$	(4,566)	$	(5,792)
Total loss on derivatives not designated as cash flow hedging instruments	$	(4,566)	$	(5,792)

Fair Value Measurements

12 Months Ended

Oct. 31, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements


15			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.

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 October 31, 2021 and 2020, according to the valuation technique utilized to determine their fair values (in thousands):


			Fair Value Measurements Using Inputs Considered as:
October 31, 2021	Fair Value		Level 1		Level 2		Level 3
Assets:
Forward currency contracts	$	322	$	—	$	322	$	—
Total assets	$	322	$	—	$	322	$	—

Liabilities:
Forward currency contracts	$	2,132	$	—	$	2,132	$	—
Total liabilities	$	2,132	$	—	$	2,132	$	—


			Fair Value Measurements Using Inputs Considered as:
October 31, 2020	Fair Value		Level 1		Level 2		Level 3
Assets:
Forward currency contracts	$	933	$	—	$	933	$	—
Total assets	$	933	$	—	$	933	$	—

Liabilities:
Forward currency contracts	$	2,484	$	—	$	2,484	$	—
Total liabilities	$	2,484	$	—	$	2,484	$	—

Nonrecurring Fair Value Measurements

The company measures certain assets and liabilities at fair value on a non-recurring basis. Assets and liabilities that are measured at fair value on a nonrecurring basis include long-lived assets, goodwill, and indefinite-lived intangible assets, which would generally be recorded at fair value as a result of an impairment charge. Assets acquired and liabilities assumed as part of a business combination or asset acquisition are also measured at fair value on a non-recurring basis during the measurement period allowed by the accounting standards codification guidance for business combinations and asset acquisitions, when applicable. For additional information on the company's business combinations and asset acquisitions and the related non-recurring fair value measurement of the assets acquired and liabilities assumed, refer to Note 2, Business Combinations and Asset Acquisitions.

Other Fair Value Disclosures

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

As of October 31, 2021 and 2020, the company's long-term debt included $424.0 million of gross fixed-rate debt that is not subject to variable interest rate fluctuations. The gross 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 October 31, 2021, the estimated gross fair value of long-term debt with fixed interest rates was $517.9 million compared to its gross carrying amount of $424.0 million. As of October 31, 2020, the estimated gross fair value of long-term debt with fixed interest rates was $508.2 million compared to its gross carrying amount of $424.0 million. For additional information regarding long-term debt with fixed interest rates, refer to Note 6, Indebtedness.

- 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

Employee Retirement Plans

12 Months Ended

Oct. 31, 2021

Retirement Benefits [Abstract]

Employee Retirement Plans


16			Employee Retirement Plans

Defined Contribution Plan

The company maintains The Toro Company Retirement Plan for eligible employees. The company's expenses under this plan, which include costs related to matching contributions and discretionary retirement fund contributions, as applicable, were $28.5 million, $17.4 million, and $23.4 million for the fiscal years ended October 31, 2021, 2020, and 2019, respectively. The decrease in expense for the fiscal year ended October 31, 2020, as compared to the fiscal years ended October 31, 2021 and October 31, 2019, was primarily the result of the company's suspension of discretionary retirement fund contributions for fiscal 2020 as a proactive cost reduction measure to mitigate the anticipated adverse impacts of COVID-19. The increase in expense for the fiscal year ended October 31, 2021 as compared to the fiscal year ended October 31, 2020 is primarily the result of the resumption of discretionary retirement fund contributions in fiscal 2021.

Defined Benefit Plans

The company has a defined benefit pension plan covering certain employees in the United Kingdom ("defined benefit retirement plan"). The company was also previously a sponsor to another defined benefit pension plan for certain employees in the U.S. (collectively with the defined benefit retirement plan, the "defined benefit retirement plans"). This defined benefit pension plan for certain employees in the U.S. was terminated as of October 31, 2020 and all accumulated benefit obligations of the company related to such plan have been satisfied. The projected and accumulated benefit obligation of the defined benefit retirement plan was $35.1 million and $33.4 million as of October 31, 2021 and 2020, respectively. The fair value of the defined benefit retirement plan assets as of October 31, 2021 and 2020 was $33.0 million and $29.5 million, respectively. The net funded status of the defined benefit retirement plan as of October 31, 2021 and 2020 was underfunded at $2.1 million and $3.9 million, respectively.

Service costs of the defined benefit retirement plans are presented in selling, general and administrative expense within the Consolidated Statements of Earnings. Non-service cost components of net periodic benefit cost (income), including realized gains or losses as a result of changes in actuarial valuation assumptions, are presented in other income, net within the Consolidated Statements of Earnings. The company recognized income of $0.1 million, $0.2 million, and $6.6 million for the fiscal years ended October 31, 2021, 2020, and 2019, respectively.

The company has omitted the remaining disclosures for the defined benefit retirement plans as the company deems these defined benefit retirement plans to be immaterial to its Consolidated Financial Statements.

- Definition

The entire disclosure for retirement benefits.

+ References

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+ Details

Subsequent Events

12 Months Ended

Oct. 31, 2021

Subsequent Events [Abstract]

Subsequent Events


17			Subsequent Events

The company has evaluated all subsequent events and concluded that no additional subsequent events have occurred that would require recognition in the Consolidated Financial Statements or disclosure in the Notes to Consolidated Financial Statements.

Summary of Significant Accounting Policies and Related Data (Policies)	12 Months Ended
	Oct. 31, 2021
Accounting Policies [Abstract]
Basis of Presentation and Consolidation	Basis of Presentation and Consolidation The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted ("GAAP") in the United States ("U.S.") and include the accounts of The Toro Company and its wholly-owned subsidiaries. In the opinion of management, the 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. The company's businesses are organized, managed, and internally grouped into segments based on similarities in products and services. The company classifies its operations into two reportable business segments: Professional and Residential. The company's remaining activities are presented as "Other" due to their insignificance. As further described in Note 7, Management Actions, during the first quarter of fiscal 2021, the company completed the sale of its Northeastern U.S. distribution company. Accordingly, as of and for the fiscal year ended October 31, 2021, Other activities consisted of the company's remaining wholly-owned domestic distribution company, corporate activities, and the elimination of intersegment revenues and expenses. As of and for the fiscal years ended October 31, 2020 and 2019, the company's Other activities consisted of its wholly-owned domestic distribution companies, corporate activities, and the elimination of intersegment revenues and expenses. For additional information regarding the company's reportable business segments refer to Note 3, Segment Data. The company uses the equity method to account for equity investments in unconsolidated entities over which it has the ability to exercise significant influence over operating and financial policies. The company's share of the net earnings or losses of these equity method investments are recorded within other income, net on the Consolidated Statements of Earnings. Equity investments in unconsolidated entities that the company does not control and for which it does not have the ability to exercise significant influence over operating and financial policies are recorded at cost, less impairment, as applicable, within the Consolidated Balance Sheets. All intercompany accounts and transactions have been eliminated from the Consolidated Financial Statements.
Accounting Estimates	Accounting Estimates In preparing the Consolidated Financial Statements in conformity with U.S. GAAP, management must make decisions that impact the reported amounts of assets, liabilities, revenues, expenses, and the related disclosures, including disclosures of contingent assets and liabilities. Such decisions include the selection of the appropriate accounting principles to be applied and the assumptions on which to base accounting estimates. Estimates are used in determining, among other items, sales promotion and incentive accruals; incentive compensation accruals; income tax accruals; inventory valuation; warranty accruals; allowance for expected credit losses; pension accruals; self-insurance accruals; legal accruals; right-of-use assets and lease liabilities; useful lives for tangible and finite-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 or asset acquisition, 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 and current 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 and other relevant factors, as applicable. Management adjusts such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with certainty, including those impacted by COVID-19, actual amounts could differ significantly from those estimated at the time the Consolidated Financial Statements are prepared. Changes in those estimates will be reflected in the Consolidated Financial Statements in future periods.
Business Combinations and Asset Acquisitions	Business Combinations and Asset Acquisitions When applicable, the company accounts for the acquisition of a business in accordance with the accounting standards codification ("ASC") guidance for business combinations, whereby the total purchase consideration transferred is allocated to the assets acquired and liabilities assumed, including amounts attributable to non-controlling interests, when applicable, based on their respective estimated fair values as of the date of acquisition. Goodwill represents the excess of purchase consideration transferred over the estimated fair value of the identifiable net assets acquired in a business combination. Assigning estimated fair values to the net assets acquired requires the use of significant estimates, judgments, inputs, and assumptions regarding the fair value of the assets acquired and liabilities assumed. Estimated fair values of assets acquired and liabilities assumed are generally based on available historical information, independent valuations or appraisals, future expectations, and assumptions determined to be reasonable but are inherently uncertain with respect to future events, including economic conditions, competition, the useful life of the acquired assets, and other factors. The company may refine the estimated fair values of assets acquired and liabilities assumed, if necessary, over a period not to exceed one year from the date of acquisition by taking into consideration new information that, if known at the date of acquisition, would have affected the estimated fair values ascribed to the assets acquired and liabilities assumed. The judgments made in determining the estimated fair value assigned to assets acquired and liabilities assumed, as well as the estimated useful life and depreciation or amortization method of each asset, can materially impact the net earnings of the periods subsequent to the acquisition through depreciation and amortization, and in certain instances through impairment charges, if the asset becomes impaired in the future. During the measurement period, any purchase price allocation changes that impact the carrying value of goodwill affects any measurement of goodwill impairment taken during the measurement period, if applicable. If necessary, purchase price allocation revisions that occur outside of the measurement period are recorded within cost of sales or selling, general and administrative expense within the Consolidated Statements of Earnings depending on the nature of the adjustment.
Cash and Cash Equivalents	Cash and Cash EquivalentsThe company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash equivalents are stated at cost, which approximates fair value.
Receivables, Net	Receivables, Net The company's financial exposure related to the collection of accounts receivable is reduced due to its wholesale floor plan financing programs, including its Red Iron Acceptance, LLC ("Red Iron") joint venture with TCF Inventory Finance, Inc. ("TCFIF"), as further discussed in Note 8, Investment in Joint Venture. Under a separate agreement, the company has an arrangement with TCF Commercial Finance Canada, Inc. ("TCFCFC") to provide inventory financing to dealers of certain of the company's products in Canada. The company also has floor plan financing agreements with separate third-party financial institutions to provide inventory financing to certain dealers and distributors not financed through Red Iron and TCFCFC, which include agreements with third-party financial institutions in the U.S. and internationally. For receivables not serviced through Red Iron, TCFCFC, or other third-party floor plan financing agreements, the company provides financing in the form of open account terms in the normal course of business and performs on-going credit evaluations of customers.Receivables are recorded at original carrying amount less an estimated allowance for expected credit losses. The allowance for expected credit losses is based on the company's assessment of losses that will result from its customers inability or unwillingness to pay amounts owed to the company.
Allowance for Current Expected Credit Losses	The allowance for expected credit losses is estimated using a combination of factors, including the age of receivable balances and historical credit loss experience, supplemented by the company's knowledge of customer-specific information, current market conditions, and reasonable and supportable forecasts of future events and economic conditions, when applicable. Receivables are written-off against the allowance for expected credit losses when all collection efforts have been exhausted.
Concentrations of Credit Risk	Concentrations of Credit Risk Financial instruments, which potentially subject the company to concentrations of credit risk, consist principally of accounts receivable and derivative instruments. Accounts receivable balances are generally concentrated in the Professional and Residential business segments. The credit risk associated with these business segments is limited because of the large number of customers in the company's customer base and their geographic dispersion. The credit risk associated with the company's derivative instruments is limited as the company enters into derivative instruments with multiple counterparties that are highly rated financial institutions.
Inventories, Net	Inventories, NetInventories are valued at the lower of cost or net realizable value, with cost determined by the first-in, first-out ("FIFO") and average cost methods for approximately 52.7 percent and 53.0 percent of total net inventories as of October 31, 2021 and 2020, respectively. All remaining inventories are valued at the lower of cost or market, with cost determined under the last-in, first-out ("LIFO") method. During fiscal 2021 and fiscal 2020, LIFO layers were not materially reduced. As needed, the company records an inventory valuation adjustment for excess, slow-moving, and obsolete inventory that is equal to the excess of the cost of the inventory over the estimated net realizable value or market value for the inventory depending on the inventory costing method. Such inventory valuation adjustment is based on a review and comparison of current inventory levels to planned production, as well as planned and historical sales of the inventory. The inventory valuation adjustment to net realizable value or market value establishes a new cost basis of the inventory that cannot be subsequently reversed. Such inventory valuation adjustments for excess, obsolete, and slow moving inventory are not reduced or removed until the product is sold or disposed of.
Property, Plant and Equipment, Net	Property, Plant and Equipment, NetProperty, plant and equipment assets are carried at cost less accumulated depreciation. The company generally accounts 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. Costs associated with general maintenance and repairs are expenses as incurred within cost of sales or selling, general and administrative expense in the Consolidated Statements of Earnings depending on the nature and use of the related asset. Interest is capitalized during the construction period for significant capital projects.
Goodwill and Indefinite-Life Intangible Assets	Goodwill and Indefinite-Lived Intangible Assets Goodwill is initially recognized as a result of the excess of purchase consideration transferred over the estimated fair value of the net assets acquired in a business combination and indefinite-lived intangible assets are initially recognized at their estimated fair values as a result of a business combination or asset acquisition. Goodwill is assigned to a reporting unit based upon the expected benefit of the synergies of the acquisition. Goodwill and certain trade names, which are considered to have indefinite lives, are not amortized; however, the company reviews them for impairment annually during the fourth quarter of each fiscal year or more frequently if changes in circumstances or the occurrence of events indicate that the fair value may not be recoverable. The company tests goodwill for impairment at the reporting unit level and tests indefinite-lived intangible assets for impairment at the individual indefinite-lived intangible asset or asset group level, as appropriate. During the fourth quarter of fiscal 2021, the company performed its annual goodwill impairment test. In performing the annual goodwill impairment test, the company first reviewed its reporting units and determined that it has eleven reporting units, which are the same as its eleven operating segments as defined in Note 3, Segment Data. Eight reporting units contain goodwill on their respective balance sheets as of October 31, 2021. Next, the company elected to bypass the qualitative assessment and move directly to the quantitative goodwill impairment analysis. In performing the quantitative goodwill impairment analysis, the company compared the carrying value of each reporting unit, including goodwill, to its respective fair value. The carrying value of each reporting unit was determined based on the amount of equity required for the reporting unit's activities, considering the specific assets and liabilities of the reporting unit. The company did not assign corporate assets and liabilities that do not relate to the operations of the reporting unit, or are not considered in determining the fair value of the reporting unit, to the reporting units. The company's estimate of the respective fair values of its reporting units was determined based on a discounted cash flow model under the income approach, which utilized various inputs and assumptions, including projected operating results and growth rates from the company's forecasting process, applicable tax rates, estimated capital expenditures and depreciation, estimated changes in working capital, terminal growth rates applied to projected operating results in the terminal period, and a weighted-average cost of capital rate. Where available, and as appropriate, comparable market multiples and the company's market capitalization were also utilized to corroborate the results of the discounted cash flow models under the income approach. If the fair value of the reporting unit exceeds its carrying value, goodwill of the reporting unit is not impaired. If the carrying value of a reporting unit exceeds its fair value, an impairment charge would be recognized for the amount by which the carrying value of the reporting unit exceeds the its fair value, not to exceed the total amount of goodwill allocated to that reporting unit.
Other Long-Lived Assets	Other Long-Lived Assets Other long-lived assets primarily consist of property, plant and equipment; right-of-use assets associated with operating lease agreements, capitalized implementation costs for hosted cloud-computing arrangements; finite-lived intangible assets, and other assets, as applicable. The company's finite-lived intangible assets are identifiable assets that were acquired as a result of business combinations or asset acquisitions and primarily consist of customer relationships and lists, developed technology, patents, trade names, non-compete agreements, and order backlog and are generally amortized on a straight-line basis over their expected useful lives, which typically range from several months to 20 years depending on the nature of the finite-lived intangible asset. The company reviews other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset, or asset group, may not be recoverable. Asset groups have identifiable cash flows and are largely independent of other asset groups. An impairment loss is recognized when estimated undiscounted future cash flows from the operation or disposition of the asset group are less than the carrying amount of the asset group. Measurement of an impairment loss is based on the excess of the carrying amount of the asset group over its fair value. Fair value is generally measured using a discounted cash flow model or independent appraisals, as appropriate. The company did not record an impairment loss for fiscal 2021, 2020, and 2019 as the company's long-lived assets were determined to not be at risk for impairment as no events or changes in circumstances were identified that would indicate that the carrying amount of an asset, or asset group, may not be recoverable. For other long-lived assets to be abandoned, the company tests for potential impairment. If the company commits to a plan to abandon or dispose of an other long-lived asset, or asset group, before the end of its previously estimated useful life, depreciation or amortization expense is recognized over the revised estimated useful life.
Leases	Leases The company enters into contracts that are, or contain, operating lease agreements that 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. 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. 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 market 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. The company has operating leases with both lease components and non-lease components. For purposes of determining lease payments, 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. 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. Minimum remaining lease payments are generally discounted to present value based the estimated incremental borrowing rate at lease commencement as the rate implicit in the lease is generally not readily determinable. Right-of-use assets represent the company's right to use an underlying asset throughout the lease term and 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. Lease expense for the company's operating leases is recognized on a straight-line basis over the lease term and is recorded within either cost of sales or selling, general and administrative expense in the Consolidated Statements of Earnings depending on the nature and use of the identified asset underlying the respective operating lease arrangement. The company does not recognize right-of-use assets and lease liabilities, but does recognize lease 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.
Accounts Payable	Accounts PayableThe company has a supply chain finance service agreement with a third-party financial institution to provide a web-based platform that facilitates the ability of participating suppliers to finance payment obligations from the company with the third-party financial institution. Participating suppliers may, at their sole discretion, make offers to finance one or more payment obligations of the company prior to their scheduled due dates at a discounted price to the third-party financial institution. The company's obligations to its suppliers, including amounts due and scheduled payment dates, are not affected by suppliers' decisions to finance amounts under this supply chain finance arrangement.
Insurance	Insurance The company is self-insured for certain losses relating to employee medical, dental, workers' compensation, and certain product liability claims. Specific stop loss coverages are provided for catastrophic claims in order to limit exposure to significant claims. Losses and claims are charged to net earnings when it is probable a loss has been incurred and the amount can be reasonably estimated. Self-insured liabilities are based on a number of factors, including historical claims experience, an estimate of claims incurred but not reported, demographic and severity factors, and utilizing valuations provided by independent third-party actuaries, as applicable.
Product Warranty Guarantees	Product 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. Standard 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. In addition to the standard warranties offered by the company on its products, the company also sells separately priced extended warranty coverage on select products for a prescribed period after the original warranty period expires. For additional information on the contract liabilities associated with the company's separately priced extended warranties, refer to Note 4, Revenue. At the time of sale, the company recognizes expense and records an accrual by product line for estimated costs in connection with forecasted future warranty claims. The company's estimate of the cost of future warranty claims is 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 the cost of actual claims experience indicates that adjustments to the company's warranty accrual are necessary. Additionally, from time to time, the company may also establish warranty accruals for its estimate of the costs necessary to settle major rework campaigns on a product-specific basis during the period in which the circumstances giving rise to the major rework campaign become known and when the costs to satisfactorily address the situation are both probable and estimable. The warranty accrual for the cost of a major rework campaign is primarily based on an estimate of the cost to repair each affected unit and the number of affected units expected to be repaired.
Derivatives Instruments and Hedging Activities	Derivative Instruments and Hedging Activities Derivative instruments, consisting primarily of forward currency contracts, are used to hedge most foreign currency transactions, including forecasted sales and purchases denominated in foreign currencies. All derivative instruments are recognized on the Consolidated Balance Sheets at fair value as either assets or liabilities. If the derivative instrument is designated as a cash flow hedging instrument, 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 accumulated other comprehensive loss (“AOCL”) on the Consolidated Balance Sheets and are subsequently reclassified to net earnings within the 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. Derivatives that are not designated as cash flow hedging instruments are adjusted to fair value through other income, net, on the Consolidated Statements of Earnings.
Foreign Currency Translation and Transactions	Foreign Currency Translation and Transactions The functional currency of the company's foreign operations is generally the applicable local currency. The functional currency is translated into U.S. dollars using the respective current exchange rate in effect as of the balance sheet date for balance sheet accounts and the respective weighted-average exchange rate during the fiscal year for revenue and expense accounts. The resulting translation adjustments are deferred as a component of other comprehensive income within the Consolidated Statements of Comprehensive Income and the Consolidated Statements of Stockholders' Equity. Gains or losses resulting from transactions denominated in foreign currencies are included in other income, net in the Consolidated Statements of Earnings.
Debt Issuance Costs	Debt Issuance CostsDebt issuance costs incurred in connection with securing the company’s financing arrangements are capitalized and amortized over the term of the respective financing arrangement 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. Debt issuance costs are generally presented in the Consolidated Balance Sheets as a direct deduction from the carrying amount of the outstanding borrowings, consistent with debt discounts. However, the company classifies the debt issuance costs related to its $600.0 million five-year senior unsecured revolving credit facility ("revolving credit facility") within other assets on the Consolidated Balance Sheets, regardless of whether the company has any outstanding borrowings on the revolving credit facility. Debt issuance costs related to borrowings that are fully extinguished in advance of the maturity date are charged to expense at the time of retirement of the borrowings.
Income Taxes	Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years that those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income tax expense in the period that includes the enactment date. A valuation allowance is provided when, in management's judgment, it is more likely than not that some portion or all of the deferred tax asset will not be realized. The company believes it has reflected the necessary deferred tax assets and liabilities in the accompanying Consolidated Balance Sheets. Management believes the future tax deductions will be realized principally through future taxable income, future reversals of existing taxable temporary differences, and carryback to taxable income in prior years. The company recognizes the effect of income tax positions only if it is more likely than not that those positions will be sustained. Recognized income tax positions are measured at the largest amount that is greater than 50.0 percent likely to be realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The company also records interest and penalties related to unrecognized tax benefits within income tax expense.
Revenue Recognition	Revenue Recognition The company's primary source of revenue is generated through the sale of equipment and irrigation products, as well as rendering of services to its customers. As a result, the company enters into contracts with its customers for the sale of products or rendering of services in the ordinary course of business, which generally occurs at the time the company receives and accepts a purchase or sales 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 generally occurs with the transfer of control of product or services 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 as a result of variable consideration. Variable consideration is recorded at the time revenue is recognized as a reduction of the transaction price and typically occurs as a result of certain of the company's sales promotion and incentive programs offered to customers that are determined to represent price concessions, as well as anticipated product returns, when applicable. 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. Sales Promotions and Incentives At the time revenue is recognized, the company records a reduction of the transaction price for the variable consideration associated with certain of the company's sales promotions and incentives programs offered to customers that are determined to represent price concessions. The expense of each sales promotion and incentive program is classified as a reduction from gross sales or as a component of selling, general and administrative expense within the Consolidated Statements of Earnings when revenue is recognized, depending on the nature of the program. Generally, the cost of a program is recorded as a reduction from gross sales when revenue is recognized and thus, is considered to be variable consideration, if the expense is determined to represent a price concession because the program either (i) results in an immediate reduction of the transaction price with no anticipated future costs or consideration provided to the customer or (ii) the company anticipates future costs based on historical or expected future business practice for which the company does not receive a distinct good or service in exchange for the future consideration provided to the customer under the program. In other circumstances, the anticipated future cost of a program based on historical or expected future business practice is recorded as selling, general and administrative expense because the company receives a distinct good or service in exchange for the future consideration provided to the customer under the program. Examples of significant sales promotions and incentive programs that are considered to be variable consideration because the cost of the program is classified as a reduction from gross sales are as follows: •Off-Invoice Discounts: The company's off-invoice discounts represent an immediate reduction in the selling price of the company's products that is realized at the time of sale with no anticipated future cost or consideration provided to the customer. •Rebate Programs: The company's rebate programs are generally based on claims submitted from either the company's direct customers or end-users of the company's products or are based on purchase or retail sales goals for the company's direct customers of certain quantities or mixes of product during a specified time period, depending upon the program. The amount of the rebate varies based on the specific program and is either a dollar amount or a percentage of the purchase price and can also be based on actual retail price as compared to the company's selling price. Consideration is typically provided to the company's customers for the company's rebate programs after the initial sale of the company's products to the company's direct customers and thus, there is generally an anticipated future cost at the time revenue is recognized based on historical and expected future business practice. •Financing Programs: The company's financing programs consist of wholesale floor plan financing programs with Red Iron and separate third-party financial institutions and end-user retail financing. Costs incurred for wholesale floor plan financing programs represent financing costs associated with programs under which the company shares the expense of financing distributor and dealer inventories through third-party financing arrangements for a specific period of time. This charge represents interest for a pre-established length of time based on a predefined rate from the contract between the company and Red Iron or the separate third-party financial institution to finance distributor and dealer inventory purchase. The wholesale financing costs for distributor and dealer inventories were $20.8 million, $24.1 million, and $44.5 million for the fiscal years ended October 31, 2021, 2020 and 2019, respectively. End-user retail financing is similar to floor planning with the difference being that retail financing programs are offered to end-user customers under which the company, at its discretion, may pay a portion of interest costs on behalf of end-users for financing purchases of the company's equipment. Examples of significant sales promotions and incentive programs that are not considered to be variable consideration because the cost of the program is classified as a component of selling, general, and administrative expense are as follows: •Commissions Paid to Distributors and Dealers: For certain products, the company uses a distribution network of dealers and distributors that purchase and take possession of products for sale to the end customer. The company also has dealers and distributors that act as sales agents for it on certain products using a direct-selling type model. Under this direct-selling type model, the company's network of distributors and dealers facilitates a sale directly to the dealer or end-user customer on its behalf. Commissions to distributors and dealers in these instances represent commission payments to sales agents that are also its customers. In addition, TTC dealers are often paid a commission to set up and deliver riding product purchased at certain home centers. •Cooperative Advertising: Cooperative advertising programs are based on advertising costs incurred by distributors and dealers for promoting the company's products. The company supports a portion of those advertising costs in which claims are submitted by the distributor or dealer along with evidence of the advertising material procured/produced and evidence of the cost incurred in the form of third-party invoices or receipts. Regardless of classification of the cost of the sales promotion and incentive program within the Consolidated Statements of Earnings, the company records an accrual within the Consolidated Balance Sheets for the estimated future expense of certain of its sales promotion and incentive programs for which the company anticipates a future cost based on historical or expected future business practice by using the expected value method and applying the portfolio approach practical expedient under the accounting standards codification guidance for revenue from contracts with customers. Under such approach, the company's determination of variable consideration and the related accrual associated with the estimated expense of certain of the company's sales promotions and incentives programs is primarily based on the terms of the sales arrangements and sales promotion and incentive programs with customers, historical payment and rebate claims experience, field inventory levels, quantity or mix of products purchased, forecasted sales volumes, types of programs offered, and expectations for the acceptance of sales promotion and incentive programs offered in the future or changes in other relevant trends.
Cost of Sales	Cost of Sales Cost of sales is primarily comprised of direct materials and supplies consumed to manufacture the company's products, as well as compensations costs for manufacturing labor and direct overhead expense necessary to convert direct materials and supplies into finished product. Cost of sales also includes freight costs for the procurement of direct materials and supplies and shipping products to customers; charges associated with inventory valuation adjustments for excess, slow-moving, and obsolete inventory; depreciation and amortization expense on manufacturing-related tangible and intangible assets; operating lease expense related to leased manufacturing assets; cost of services provided; cash discounts on payments to vendors, and other manufacturing-related costs.
Selling, General, and Administrative Expense	Selling, General and Administrative Expense Selling, general and administrative expense is primarily comprised of compensation costs for non-manufacturing labor, occupancy and operating costs of distribution and corporate facilities, warranty expense, depreciation and amortization expense on non-manufacturing tangible and intangible assets, operating lease expense related to leased non-manufacturing assets; advertising, marketing, and selling expenses, engineering and research costs, information systems costs, and other miscellaneous administrative costs, such as legal costs for internal and outside services that are expensed as incurred.
Advertising Expense	Advertising ExpenseGeneral advertising expenditures are expensed the first time advertising takes place. Production costs associated with advertising are expensed in the period incurred. Cooperative advertising represents expenditures for shared advertising costs that the company reimburses to customers and is classified as a component of selling, general and administrative expense within the Consolidated Statements of Earnings. These obligations are accrued and expensed when the related revenues are recognized in accordance with the sales promotion and incentive programs established for certain product lines.
Engineering and Research Expense	Engineering and Research Expense The company's engineering and research costs are expensed as incurred as a component of selling, general and administrative expense within the Consolidated Statements of Earnings and are primarily incurred in connection with the development of new products that may have additional applications or represent extensions of existing product lines, improvements or enhancements to existing products, and cost reduction efforts.
Stock-Based Compensation Expense	Stock-Based Compensation Expense The company's stock-based compensation awards are generally granted to executive officers, other employees, and non-employee members of the company's Board of Directors ("Board"), and include unrestricted common stock awards, performance share awards that are contingent on the achievement of performance goals of the company, non-qualified stock options, and restricted stock units. Generally, compensation expense equal to the grant date fair value determined under the Black-Scholes valuation method is recognized for these awards over the vesting period and is classified in selling, general and administrative expense within the Consolidated Statements of Earnings. For stock options and restricted stock units, expense recognized for other employees not considered executive officers and non-employee Board members is net of estimated forfeitures, which is based on historical forfeiture experience. Stock options granted to executive officers and other employees are subject to accelerated expensing if the option holder meets the retirement definition set forth in The Toro Company Amended and Restated 2010 Equity and Incentive Plan, as amended and restated (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.
Other Income, Net	Other Income, Net Other income, net primarily consists of the company's proportionate share of income or losses from the company's Red Iron joint venture, realized foreign currency exchange rate gains and losses, interest and dividend income, gains or losses recognized on actuarial valuation changes for our pension and post-retirement plans, retail financing revenue, and other miscellaneous income.
Net Earnings Per Share	Net Earnings Per Share Basic net earnings per share is calculated as net earnings available to common stockholders divided by the weighted-average number of shares of common stock outstanding during the year plus the assumed issuance of contingent shares related to performance share awards under the 2010 plan. Diluted net earnings per share is similar to basic net earnings per share except that the weighted-average number of shares of common stock outstanding plus the assumed issuance of contingent shares is increased to include the number of additional shares of common stock that would have been outstanding assuming the issuance of all potentially dilutive shares, such as common stock to be issued upon exercise of options, contingently issuable shares, and restricted stock units. Incremental shares from options and restricted stock units are computed under the treasury stock method.
New Accounting Pronouncements Adopted	New Accounting Pronouncements Adopted In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which modifies the measurement approach for credit losses on financial assets measured on an amortized cost basis from an 'incurred loss' method to an 'expected loss' method. Such modification of the measurement approach for credit losses eliminates the requirement that a credit loss be considered probable, or incurred, to impact the valuation of a financial asset measured on an amortized cost basis. The amended guidance requires the measurement of expected credit losses to be based on relevant information, including historical experience, current conditions, and a reasonable and supportable forecast that affects the collectability of the related financial asset. This amendment affects trade receivables, off-balance-sheet credit exposures, and any other financial assets not excluded from the scope of this amendment that have the contractual right to receive cash. The amended guidance was adopted in the first quarter of fiscal 2021, under the modified retrospective transition method, and did not have a material impact on the company's Consolidated Financial Statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820) - Changes to the Disclosure Requirements for Fair Value Measurement, which modifies the disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosures. The amended guidance was adopted in the first quarter of fiscal 2021 and did not have a material impact on the company's Consolidated Financial Statements. In August 2018, the FASB issued ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans (Topic 715), which modifies the disclosure requirements for defined benefit pension plans and other post-retirement plans. The amended guidance was adopted in the first quarter of fiscal 2021 and did not have a material impact on the company's Consolidated Financial Statements. New Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. The amended guidance also clarifies and simplifies other aspects of the accounting for income taxes under ASC Topic 740, Income Taxes. The company will adopt the amended guidance on November 1, 2021, the first quarter of fiscal 2022, and such adoption will not have a material impact on the company's Consolidated Financial Statements. In January 2020, the FASB issued ASU No. 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815), which clarified that before applying or upon discontinuing the equity method of accounting for an investment in equity securities, an entity should consider observable transactions that require it to apply or discontinue the equity method of accounting for the purposes of applying the fair value measurement alternative. The company will adopt the amended guidance on November 1, 2021, the first quarter of fiscal 2022, and such adoption will not have a material impact on the company's Consolidated Financial Statements. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides temporary optional guidance to ease the potential burden of accounting for reference rate reform due to the cessation of the London Interbank Offered Rate, commonly referred to as "LIBOR." The temporary guidance provides optional expedients and exceptions for applying U.S. GAAP to contracts, relationships, and transactions affected by reference rate reform if certain criteria are met. The guidance was effective upon issuance on March 12, 2020 and the provisions of the temporary optional guidance provided by the ASU may be elected on a prospective basis from the beginning of an interim period that includes the issuance date of the ASU through December 31, 2022, when the reference rate reform activity is expected to be substantially complete. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to provide supplemental guidance and to further clarify the scope of the amended guidance. At this time, the company does not have receivables, hedging relationships, or operating lease agreements that reference LIBOR or another reference rate expected to be discontinued and therefore, the company has not applied the optional practical expedients under this ASU to these classes of assets. On October 5, 2021, the company entered into an amended and restated credit agreement and at such time, the company concluded that the optional practical expedients provided by the ASU would not be elected as the required criteria were not met. The amended and restated credit agreement includes a transition clause in the event LIBOR is discontinued and the company's other fixed-rate financing agreements do not reference LIBOR or another reference rate expected to be discontinued as disclosed in Note 6, Indebtedness. As such, the company does not expect the transition of LIBOR to have a material impact on the company's Consolidated Financial Statements; however, a review of other contracts and agreements is underway and is expected to be completed prior to December 31, 2022. The company believes that all other recently issued accounting pronouncements from the FASB that the company has not noted above, will not have a material impact on its Consolidated Financial Statements or do not apply to its operations. The company adopted ASU No. 2016-02, Leases (Topic) 842, 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 Consolidated Balance Sheet as of such date. Accordingly, the company's Consolidated Financial Statements for the fiscal years ended October 31, 2021 and 2020 have been prepared and presented in accordance with ASC Topic 842, Leases, and the company's Consolidated Financial Statements for the fiscal year ended October 31, 2019 continue to be prepared and presented in accordance with the legacy lease accounting guidance at ASC Topic 840, Leases.

Summary of Significant Accounting Policies and Related Data (Tables)

12 Months Ended

Oct. 31, 2021

Accounting Policies [Abstract]

Schedule of inventories

Inventories, net were as follows (in thousands):


October 31	2021		2020
Raw materials and work in process	$	335,325	$	168,759
Finished goods and service parts	538,332		565,761
Total FIFO value	873,657		734,520
Less: adjustment to LIFO value	135,487		82,087
Total inventories, net	$	738,170	$	652,433

Schedule of property, plant and equipment

Property, plant and equipment, net was as follows (in thousands):


October 31	2021		2020
Land and land improvements	$	57,690	$	57,387
Buildings and leasehold improvements	308,217		301,848
Machinery and equipment	522,012		499,312
Tooling	220,966		231,142
Computer hardware and software	97,485		102,312
Construction in process	85,722		48,157
Property, plant and equipment, gross	1,292,092		1,240,158
Less: accumulated depreciation	804,361		772,239
Property, plant and equipment, net	$	487,731	$	467,919

Schedule of changes in accrued warranties

The changes in accrued warranties were as follows (in thousands):


Fiscal Years Ended October 31	2021		2020		2019
Beginning balance	$	107,121	$	96,604	$	76,214
Warranty provisions	73,666		60,273		57,277
Acquisitions	—		2,557		18,418
Warranty claims	(71,520)		(67,241)		(58,878)
Changes in estimates	7,516		14,928		3,573
Ending balance	$	116,783	$	107,121	$	96,604

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 (in thousands):


Fiscal Years Ended October 31	2021	2020	2019
Basic
Weighted-average number of shares of common stock	107,336	107,647	106,762
Assumed issuance of contingent shares	5	11	11
Weighted-average number of shares of common stock outstanding – Basic	107,341	107,658	106,773

Diluted
Weighted-average number of shares of common stock outstanding – Basic	107,341	107,658	106,773
Effect of dilutive securities	1,132	1,005	1,317
Weighted-average number of shares of common stock outstanding – Diluted	108,473	108,663	108,090

Business Combinations and Asset Acquisitions (Tables)

12 Months Ended

Oct. 31, 2021

Business Combination and Asset Acquisition [Abstract]

Schedule of recognized identified assets acquired and liabilities assumed

The following table summarizes the allocation of the Venture Products purchase price to the fair values assigned to the Venture Products assets acquired and liabilities assumed (in thousands):


	March 2, 2020
Cash and cash equivalents	$	3,476
Receivables	6,342
Inventories	23,000
Prepaid expenses and other current assets	239
Property, plant and equipment	26,976
Goodwill	61,225
Other intangible assets:
Finite-lived customer-related	19,100
Indefinite-lived trade name	56,200
Accounts payable	(4,075)
Accrued liabilities	(5,196)
Deferred income tax liabilities	(20,586)
Total fair value of net assets acquired	166,701
Less: cash and cash equivalents acquired	(3,476)
Total Venture Products purchase price	$	163,225

The following table summarizes the allocation of the CMW purchase price to the fair values assigned to the CMW assets acquired and liabilities assumed (in thousands):


	April 1, 2019
Cash and cash equivalents	$	16,341
Receivables	65,674
Inventories	241,429
Prepaid expenses and other current assets	8,050
Property, plant and equipment	142,779
Goodwill	134,657
Indefinite-lived other intangible assets:
Trade names	103,700
Finite-lived other intangible assets:
Customer-related	130,800
Developed technology	20,900
Trade names	5,200
Backlog	3,590
Other long-term assets	7,971
Accounts payable	(35,892)
Accrued liabilities	(51,943)
Deferred income tax liabilities	(85,277)
Other long-term liabilities	(6,665)
Total fair value of net assets acquired	701,314
Less: cash and cash equivalents acquired	(16,341)
Total CMW purchase price	$	684,973

Business acquisition, pro forma information

The following table presents unaudited pro forma financial information for fiscal 2019 (in thousands, except per share data):


	October 31, 2019
Net sales	$	3,437,335
Net earnings1	363,452
Basic net earnings per share of common stock	3.40
Diluted net earnings per share of common stock1	$	3.36

Segment Data (Tables)

12 Months Ended

Oct. 31, 2021

Segment Reporting [Abstract]

Summarized financial information concerning the company's reportable segments

The following tables present summarized financial information concerning the company's reportable business segments and Other activities (in thousands):


Fiscal Year Ended October 31, 2021	Professional		Residential		Other		Total
Net sales	$	2,929,600	$	1,010,077	$	19,907	$	3,959,584
Intersegment gross sales (eliminations)	30,530		44		(30,574)		—
Earnings (loss) before income taxes	507,327		121,516		(129,025)		499,818
Total assets	2,032,350		388,246		515,544		2,936,140
Capital expenditures	79,515		16,730		7,767		104,012
Depreciation and amortization	$	73,747	$	13,470	$	12,099	$	99,316


Fiscal Year Ended October 31, 2020	Professional		Residential		Other		Total
Net sales	$	2,523,452	$	820,745	$	34,613	$	3,378,810
Intersegment gross sales (eliminations)	46,703		80		(46,783)		—
Earnings (loss) before income taxes	426,560		113,669		(133,159)		407,070
Total assets	1,940,844		282,061		630,323		2,853,228
Capital expenditures	49,975		13,669		14,424		78,068
Depreciation and amortization	$	70,460	$	12,607	$	12,548	$	95,615


Fiscal Year Ended October 31, 2019	Professional		Residential		Other		Total
Net sales	$	2,443,448	$	661,274	$	33,362	$	3,138,084
Intersegment gross sales (eliminations)	59,453		310		(59,763)		—
Earnings (loss) before income taxes	380,914		65,151		(123,932)		322,133
Total assets	1,592,065		430,495		307,987		2,330,547
Capital expenditures	57,246		16,970		18,665		92,881
Depreciation and amortization	$	63,885	$	11,897	$	11,916	$	87,698

Summary of the components of the loss before income taxes included in "Other"

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


Fiscal Years Ended October 31	2021		2020		2019
Corporate expenses	$	(112,419)	$	(108,396)	$	(124,422)
Interest expense	(28,659)		(33,156)		(28,835)
Earnings from wholly-owned domestic distribution companies and other income, net	12,053		8,393		29,325
Total operating loss	$	(129,025)	$	(133,159)	$	(123,932)

Schedule of geographic area data


Fiscal Years Ended October 31	United States		International Countries		Total
2021
Net sales	$	3,131,954	$	827,630	$	3,959,584
Long-lived assets	$	440,555	$	47,176	$	487,731
2020
Net sales	$	2,700,694	$	678,116	$	3,378,810
Long-lived assets	$	426,378	$	41,541	$	467,919
2019
Net sales	$	2,413,153	$	724,931	$	3,138,084
Long-lived assets	$	395,937	$	41,380	$	437,317

Revenue (Tables)

12 Months Ended

Oct. 31, 2021

Revenue from Contract with Customer [Abstract]

Disaggregation of revenue

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


Fiscal Year Ended October 31, 2021	Professional		Residential		Other		Total
Revenue by product type:
Equipment	$	2,530,777	$	975,832	$	11,720	$	3,518,329
Irrigation	398,823		34,245		8,187		441,255
Total net sales	$	2,929,600	$	1,010,077	$	19,907	$	3,959,584

Revenue by geographic market:
United States	$	2,268,878	$	843,169	$	19,907	$	3,131,954
International Countries	660,722		166,908		—		827,630
Total net sales	$	2,929,600	$	1,010,077	$	19,907	$	3,959,584


Fiscal Year Ended October 31, 2020	Professional		Residential		Other		Total
Revenue by product type:
Equipment	$	2,175,794	$	787,716	$	21,785	$	2,985,295
Irrigation	347,658		33,029		12,828		393,515
Total net sales	$	2,523,452	$	820,745	$	34,613	$	3,378,810

Revenue by geographic market:
United States	$	1,976,690	$	689,391	$	34,613	$	2,700,694
International Countries	546,762		131,354		—		678,116
Total net sales	$	2,523,452	$	820,745	$	34,613	$	3,378,810


Fiscal Year Ended October 31, 2019	Professional		Residential		Other		Total
Revenue by product type:
Equipment	$	2,097,965	$	628,521	$	21,449	$	2,747,935
Irrigation	345,483		32,753		11,913		390,149
Total net sales	$	2,443,448	$	661,274	$	33,362	$	3,138,084

Revenue by geographic market:
United States	$	1,853,054	$	526,737	$	33,362	$	2,413,153
International Countries	590,394		134,537		—		724,931
Total net sales	$	2,443,448	$	661,274	$	33,362	$	3,138,084

Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Oct. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of changes in net carrying amount of goodwill

The changes in the carrying amount of goodwill by reportable segment for fiscal 2021 and 2020 were as follows (in thousands):


	Professional		Residential		Other		Total
Balance as of October 31, 2019	$	350,250	$	10,469	$	1,534	$	362,253
Goodwill acquired	62,252		—		—		62,252
Purchase price allocation adjustment	(866)		—		—		(866)

Translation adjustments	425		11		—		436
Balance as of October 31, 2020	412,061		10,480		1,534		424,075

Purchase price allocation adjustment	(1,027)		—		—		(1,027)
Goodwill divested	—		—		(1,534)		(1,534)
Translation adjustments	45		121		—		166
Balance as of October 31, 2021	$	411,079	$	10,601	$	—	$	421,680

Schedule of finite-lived intangible assets

The components of other intangible assets were as follows (in thousands, except weighted-average useful life in years):


October 31, 2021	Weighted-Average Useful Life in Years	Gross Carrying Amount		Accumulated Amortization		Net
Patents	9.9	$	18,283	$	(14,670)	$	3,613
Non-compete agreements	5.5	6,914		(6,872)		42
Customer-related	18.2	239,679		(62,617)		177,062
Developed technology	7.0	87,473		(43,348)		44,125
Trade names	15.4	7,524		(2,969)		4,555
Backlog and other	0.6	4,390		(4,390)		—
Total finite-lived	14.6	364,263		(134,866)		229,397
Indefinite-lived - trade names		190,644		—		190,644
Total other intangible assets, net		$	554,907	$	(134,866)	$	420,041


October 31, 2020	Weighted-Average Useful Life in Years	Gross Carrying Amount		Accumulated Amortization		Net
Patents	9.9	$	18,257	$	(13,919)	$	4,338
Non-compete agreements	5.5	6,892		(6,831)		61
Customer-related	18.2	239,634		(48,005)		191,629
Developed technology	7.6	51,995		(35,208)		16,787
Trade names	15.4	7,530		(2,552)		4,978
Backlog and other	0.6	4,390		(4,390)		—
Total finite-lived	15.5	328,698		(110,905)		217,793
Indefinite-lived - trade names		190,512		—		190,512
Total other intangible assets, net		$	519,210	$	(110,905)	$	408,305

Schedule of indefinite-lived intangible assets

The components of other intangible assets were as follows (in thousands, except weighted-average useful life in years):


October 31, 2021	Weighted-Average Useful Life in Years	Gross Carrying Amount		Accumulated Amortization		Net
Patents	9.9	$	18,283	$	(14,670)	$	3,613
Non-compete agreements	5.5	6,914		(6,872)		42
Customer-related	18.2	239,679		(62,617)		177,062
Developed technology	7.0	87,473		(43,348)		44,125
Trade names	15.4	7,524		(2,969)		4,555
Backlog and other	0.6	4,390		(4,390)		—
Total finite-lived	14.6	364,263		(134,866)		229,397
Indefinite-lived - trade names		190,644		—		190,644
Total other intangible assets, net		$	554,907	$	(134,866)	$	420,041


October 31, 2020	Weighted-Average Useful Life in Years	Gross Carrying Amount		Accumulated Amortization		Net
Patents	9.9	$	18,257	$	(13,919)	$	4,338
Non-compete agreements	5.5	6,892		(6,831)		61
Customer-related	18.2	239,634		(48,005)		191,629
Developed technology	7.6	51,995		(35,208)		16,787
Trade names	15.4	7,530		(2,552)		4,978
Backlog and other	0.6	4,390		(4,390)		—
Total finite-lived	15.5	328,698		(110,905)		217,793
Indefinite-lived - trade names		190,512		—		190,512
Total other intangible assets, net		$	519,210	$	(110,905)	$	408,305

Indebtedness (Tables)

12 Months Ended

Oct. 31, 2021

Debt Disclosure [Abstract]

Schedule of long-term debt

The following is a summary of the company's indebtedness (in thousands):


October 31	2021		2020
Revolving credit facility	$	—	$	—
$270 million term loan	270,000		—
$200 million term loan	—		100,000
$300 million term loan	—		180,000
$190 million term loan	—		90,000
3.81% series A senior notes	100,000		100,000
3.91% series B senior notes	100,000		100,000
7.8% debentures	100,000		100,000
6.625% senior notes	124,040		123,978
Less: unamortized discounts, debt issuance costs, and deferred charges	2,798		2,855
Total long-term debt	691,242		791,123
Less: current portion of long-term debt	—		99,873
Long-term debt, less current portion	$	691,242	$	691,250

- 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.

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+ Details

Income Taxes (Tables)

12 Months Ended

Oct. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of earnings before income taxes

Earnings before income taxes were as follows (in thousands):


Fiscal Years Ended October 31	2021		2020		2019
Earnings before income taxes:
United States	$	446,256	$	369,016	$	283,730
Foreign	53,562		38,054		38,403
Total earnings before income taxes	$	499,818	$	407,070	$	322,133

Schedule of reconciliation of the statutory federal income tax rate to the company's consolidated effective tax rate

A reconciliation of the statutory federal income tax rate to the company's effective tax rate is summarized as follows:


Fiscal Years Ended October 31	2021		2020		2019
Statutory federal income tax rate	21.0	%	21.0	%	21.0	%
Excess deduction for stock-based compensation	(1.5)		(1.7)		(3.7)
Domestic manufacturer's deduction	—		—		0.1
State and local income taxes, net of federal benefit	1.4		2.4		1.1
Foreign operations	(0.5)		(0.6)		(0.3)
Federal research tax credit	(1.4)		(1.7)		(1.5)
Foreign-derived intangible income	(0.9)		—		(1.3)
Remeasurement of deferred tax assets and liabilities	—		—		(0.1)
Deemed repatriation tax	—		—		(0.2)
Other, net	(0.1)		(0.4)		(0.2)
Effective tax rate	18.0	%	19.0	%	14.9	%

Schedule of components of the provision for income taxes

Components of the company's provision for income taxes were as follows (in thousands):


Fiscal Years Ended October 31	2021		2020		2019
Current provision:
Federal	$	90,222	$	58,243	$	37,415
State	15,973		11,322		7,495
Foreign	9,163		5,534		6,846
Total current provision	$	115,358	$	75,099	$	51,756
Deferred provision (benefit):
Federal	$	(18,361)	$	1,710	$	(37)
State	(6,486)		634		(3,205)
Foreign	(573)		(74)		(364)
Total deferred provision (benefit)	(25,420)		2,270		(3,606)
Total provision for income taxes	$	89,938	$	77,369	$	48,150

Schedule of tax effects of temporary differences that give rise to the net deferred income tax assets

(in thousands):


Fiscal Years Ended October 31	2021		2020
Deferred income tax assets:
Compensation and benefits	$	34,403	$	30,363
Warranty and insurance	30,840		28,480
Lease liabilities	17,735		20,843
Advertising and sales promotions and incentives	6,669		6,937
Inventory	21,118		4,937
Deferred revenue	4,232		2,910
Other	10,520		9,643
Valuation allowance	(3,205)		(3,570)
Deferred income tax assets	$	122,312	$	100,543
Deferred income tax liabilities:
Right-of-use assets	$	(17,071)	$	(20,179)
Depreciation	(47,551)		(49,018)
Amortization	(102,287)		(95,315)
Deferred income tax liabilities	(166,909)		(164,512)
Deferred income tax liabilities, net	$	(44,597)	$	(63,969)

Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):


Unrecognized tax benefits as of October 31, 2020	$	2,860
Increase as a result of tax positions taken during a prior period	59
Decrease as a result of tax positions taken during a prior period	(98)
Increase as a result of tax positions taken during the current period	397

Reductions as a result of statute of limitations lapses	(105)
Unrecognized tax benefits as of October 31, 2021	$	3,113

Stock-Based Compensation (Tables)

12 Months Ended

Oct. 31, 2021

Share-based Payment Arrangement [Abstract]

Schedule of compensation costs related to stock-based awards

Compensation costs related to stock-based compensation awards were as follows (in thousands):


Fiscal Years Ended October 31	2021		2020		2019
Stock option awards	$	9,971	$	9,163	$	6,537
Performance share awards	6,861		2,123		3,070
Restricted stock unit awards	4,306		3,429		3,230
Unrestricted common stock awards	671		693		592
Total compensation cost for stock-based compensation awards	$	21,809	$	15,408	$	13,429
Related tax benefit from stock-based compensation awards	$	5,221	$	3,696	$	3,200

Schedule of weighted-average valuation assumptions of stock-based compensation

The table below illustrates the weighted-average valuation assumptions used under the Black-Scholes valuation method for options granted in the following fiscal periods:


Fiscal Years Ended October 31	2021			2020			2019
Expected life of option in years	6.21			6.31			6.31
Expected stock price volatility	23.26		%	19.53		%	19.83		%
Risk-free interest rate	0.55		%	1.73		%	2.77		%
Expected dividend yield	0.86		%	0.99		%	1.18		%
Per share weighted-average fair value at date of grant	$	19.39		$	15.23		$	12.83

Schedule of stock options activity

The table below presents stock option activity for fiscal 2021:


	Stock Option Awards	Weighted-Average Exercise Price		Weighted-Average Contractual Life (years)	Aggregate Intrinsic Value (in thousands)
Outstanding as of October 31, 2020	2,646,603	$	54.40	6.2	$	73,305
Granted	546,569	92.73
Exercised	(403,134)	35.02
Forfeited	(18,684)	81.29

Outstanding as of October 31, 2021	2,771,354	$	64.60	6.3	$	85,576
Exercisable as of October 31, 2021	1,691,552	$	53.90	5.0	$	70,313

Schedule of total market value and the intrinsic value of options exercised

The table below presents the total market value of stock options exercised and the total intrinsic value of options exercised during the following fiscal years (in thousands):


Fiscal Years Ended October 31	2021		2020		2019
Market value of stock options exercised	$	40,071	$	56,761	$	92,352
Intrinsic value of stock options exercised1	$	25,952	$	33,920	$	62,288

1 Intrinsic value is calculated as the amount by which the stock price at exercise date exceeded the option exercise price.

Schedule of performance share awards granted

Factors related to the company's performance share awards are as follows (in thousands, except per award data):


Fiscal Years Ended October 31	2021		2020		2019
Weighted-average fair value per award at date of grant	$	90.59	$	77.33	$	59.58
Fair value of performance share awards vested	$	3,428	$	6,271	$	6,300

Schedule of unvested performance share awards and the weighted average fair value at the date of grant

The table below presents fiscal 2021 activity for unvested performance share awards:


	Performance Shares	Weighted-Average Fair Value at Date of Grant
Unvested as of October 31, 2020	187,421	$	67.58
Granted	53,976	90.59
Vested	(37,153)	65.40

Unvested as of October 31, 2021	204,244	$	76.16

Schedule of restricted stock and restricted stock unit awards granted

Factors related to the company's restricted stock unit awards are as follows (in thousands, except per award data):


Fiscal Years Ended October 31	2021		2020		2019
Weighted-average fair value per award at date of grant	$	97.87	$	74.55	$	66.26
Fair value of restricted stock units vested	$	4,464	$	3,410	$	3,083

Schedule of unvested restricted stock shares and the weighted average fair value at the date of grant

The table below presents fiscal 2021 activity for unvested restricted stock units:


	Restricted Stock Units	Weighted-Average Fair Value at Date of Grant
Unvested as of October 31, 2020	100,280	$	67.69
Granted	73,098	97.87
Vested	(44,142)	65.68
Forfeited	(4,984)	79.15
Unvested as of October 31, 2021	124,252	$	85.54

Stockholders' Equity (Tables)

12 Months Ended

Oct. 31, 2021

Stockholders' Equity Note [Abstract]

Schedule of components of accumulated other comprehensive loss

The components of AOCL, net of tax, within the Consolidated Statements of Stockholders' Equity were as follows (in thousands):


As of October 31	2021		2020
Foreign currency translation adjustments	$	19,535	$	24,508
Pension benefits	3,899		5,106
Cash flow derivative instruments	2,562		4,648
Total accumulated other comprehensive loss	$	25,996	$	34,262

Schedule of components and activity of accumulated other comprehensive loss

The components and activity of AOCL, net of tax, were as follows (in thousands):


	Foreign Currency Translation Adjustments		Pension Benefits		Cash Flow Derivative Instruments		Total
Balance as of October 31, 2020	$	24,508	$	5,106	$	4,648	$	34,262
Other comprehensive income before reclassifications	(4,973)		(1,207)		(12,830)		(19,010)
Amounts reclassified from AOCL	—		—		10,744		10,744
Net current period other comprehensive income	(4,973)		(1,207)		(2,086)		(8,266)
Balance as of October 31, 2021	$	19,535	$	3,899	$	2,562	$	25,996


	Foreign Currency Translation Adjustments		Pension Benefits		Cash Flow Derivative Instruments		Total
Balance as of October 31, 2019	$	31,025	$	4,861	$	(3,837)	$	32,049
Other comprehensive (income) loss before reclassifications	(6,517)		245		14,159		7,887
Amounts reclassified from AOCL	—		—		(5,674)		(5,674)
Net current period other comprehensive (income) loss	(6,517)		245		8,485		2,213
Balance as of October 31, 2020	$	24,508	$	5,106	$	4,648	$	34,262

Leases (Tables)

12 Months Ended

Oct. 31, 2021

Leases [Abstract]

Lease, cost

The following table presents the lease expense incurred on the company’s operating, short-term, and variable leases (in thousands):


Fiscal Year Ended October 31	2021		2020
Operating lease expense	$	20,361	$	19,637
Short-term lease expense	2,953		2,949
Variable lease expense	97		134
Total lease expense	$	23,411	$	22,720

The following table presents supplemental cash flow information related to the company's operating leases (in thousands):


Fiscal Year Ended October 31	2021		2020
Operating cash flows for amounts included in the measurement of lease liabilities	$	18,877	$	17,762
Right-of-use assets obtained in exchange for lease obligations	$	5,390	$	22,667

The following table presents other lease information related to the company's operating leases as of October 31, 2021 and October 31, 2020:


	October 31, 2021		October 31, 2020
Weighted-average remaining lease term of operating leases in years	6.6		7.1
Weighted-average discount rate of operating leases	2.71	%	2.79	%

Lessee, operating lease, liability, maturity


	October 31, 2021
2022	$	16,833
2023	13,568
2024	12,042
2025	10,446
2026	5,408
Thereafter	18,239
Total future minimum operating lease payments	76,536
Less: imputed interest	6,501
Present value of operating lease liabilities	$	70,035

Derivative Instruments and Hedging Activities (Tables)

12 Months Ended

Oct. 31, 2021

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 Consolidated Balance Sheets (in thousands):


Fair Value as of October 31	2021		2020
Derivative assets:
Derivatives designated as cash flow hedging instruments:
Prepaid expenses and other current assets
Forward currency contracts	$	189	$	802
Derivatives not designated as cash flow hedging instruments:
Prepaid expenses and other current assets
Forward currency contracts	133		131
Total derivative assets	$	322	$	933
Derivative liabilities:
Derivatives designated as cash flow hedging instruments:
Accrued liabilities
Forward currency contracts	$	1,260	$	2,687
Derivatives not designated as cash flow hedging instruments:
Accrued liabilities
Forward currency contracts	872		(203)
Total derivative liabilities	$	2,132	$	2,484

Schedule of effects of the master netting arrangements on the fair value of the company's derivative contracts that are recorded in the Consolidated Balance Sheets


Fair Value as of October 31	2021		2020
Derivative assets:
Forward currency contracts:
Gross amount of derivative assets	$	423	$	1,139
Derivative liabilities offsetting derivative assets	(101)		(206)
Net amount of derivative assets	$	322	$	933
Derivative liabilities:
Forward currency contracts:
Gross amount of derivative liabilities	$	(4,853)	$	(3,233)
Derivative assets offsetting derivative liabilities	2,721		749
Net amount of derivative liabilities	$	(2,132)	$	(2,484)

Schedule of impact of derivative instruments on consolidated statements of earnings for derivatives designated as cash flow hedging instruments


	Gain (Loss) Reclassified from AOCL into Income				Gain (Loss) Recognized in OCI on Derivatives
Fiscal Years Ended October 31	2021		2020		2021		2020
Derivatives designated as cash flow hedging instruments:
Forward currency contracts:
Net sales	$	(10,883)	$	5,023	$	2,820	$	(8,232)
Cost of sales	139		651		(734)		(253)
Total derivatives designated as cash flow hedging instruments	$	(10,744)	$	5,674	$	2,086	$	(8,485)


	Gain (Loss) Recognized in Earnings on Cash Flow Hedging Instruments
Fiscal Year Ended October 31, 2021	Net Sales		Cost of Sales
Total Consolidated Statements of Earnings income (expense) amounts in which the effects of cash flow hedging instruments are recorded	$	3,959,584	$	(2,621,092)
Gain (loss) on derivatives designated as cash flow hedging instruments:
Forward currency contracts:
Amount of gain (loss) reclassified from AOCL into earnings	(10,883)		139
Gain on components excluded from effectiveness testing recognized in earnings based on changes in fair value	$	1,427	$	614


	Gain (Loss) Recognized in Earnings on Cash Flow Hedging Instruments
Fiscal Year Ended October 31, 2020	Net Sales		Cost of Sales
Total Consolidated Statements of Earnings income (expense) amounts in which the effects of cash flow hedging instruments are recorded	$	3,378,810	$	(2,189,036)
Gain on derivatives designated as cash flow hedging instruments:
Forward currency contracts:
Amount of gain reclassified from AOCL into earnings	5,023		651
Gain on components excluded from effectiveness testing recognized in earnings based on changes in fair value	$	3,229	$	313

Derivatives not designated as hedging instruments


Fiscal Years Ended October 31	2021		2020
Loss on derivative instruments not designated as cash flow hedging instruments:
Forward currency contracts:
Other income, net	$	(4,566)	$	(5,792)
Total loss on derivatives not designated as cash flow hedging instruments	$	(4,566)	$	(5,792)

Fair Value Measurements (Tables)

12 Months Ended

Oct. 31, 2021

Fair Value Disclosures [Abstract]

Schedule of assets and liabilities measured at fair value on a recurring basis


			Fair Value Measurements Using Inputs Considered as:
October 31, 2021	Fair Value		Level 1		Level 2		Level 3
Assets:
Forward currency contracts	$	322	$	—	$	322	$	—
Total assets	$	322	$	—	$	322	$	—

Liabilities:
Forward currency contracts	$	2,132	$	—	$	2,132	$	—
Total liabilities	$	2,132	$	—	$	2,132	$	—


			Fair Value Measurements Using Inputs Considered as:
October 31, 2020	Fair Value		Level 1		Level 2		Level 3
Assets:
Forward currency contracts	$	933	$	—	$	933	$	—
Total assets	$	933	$	—	$	933	$	—

Liabilities:
Forward currency contracts	$	2,484	$	—	$	2,484	$	—
Total liabilities	$	2,484	$	—	$	2,484	$	—

Summary of Significant Accounting Policies and Related Data - Basis of Presentation and Consolidation (Details)	12 Months Ended
	Oct. 31, 2021 segment
Accounting Policies [Abstract]
Number of reportable business segments	2

Summary of Significant Accounting Policies and Related Data - Cash and Cash Equivalents (Details) - USD ($) $ in Millions	Oct. 31, 2021	Oct. 31, 2020
Subsidiaries \| International Countries
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	$ 117.3	$ 106.3

Summary of Significant Accounting Policies and Related Data - Inventory Valuations (Details) - USD ($) $ in Thousands	Oct. 31, 2021	Oct. 31, 2020
Inventory Disclosure [Abstract]
Percentage of FIFO and weighted average cost inventory	52.70%	53.00%
Inventory valuation adjustment	$ 39,700	$ 37,900
Inventory, Net [Abstract]
Raw materials and work in process	335,325	168,759
Finished goods and service parts	538,332	565,761
Total FIFO value	873,657	734,520
Less: adjustment to LIFO value	135,487	82,087
Total inventories, net	$ 738,170	$ 652,433

Summary of Significant Accounting Policies and Related Data - Property and Depreciation (Details) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2021	Oct. 31, 2020	Oct. 31, 2019
Property and Depreciation
Capitalized interest amount	$ 800	$ 1,000	$ 1,300
Property, plant and equipment, gross	1,292,092	1,240,158
Less: accumulated depreciation	804,361	772,239
Property, plant and equipment, net	487,731	467,919	437,317
Depreciation expense	75,468	76,108	$ 69,314
Land and land improvements
Property and Depreciation
Property, plant and equipment, gross	57,690	57,387
Buildings and leasehold improvements
Property and Depreciation
Property, plant and equipment, gross	$ 308,217	301,848
Buildings and leasehold improvements \| Minimum
Property and Depreciation
Estimated useful life	10 years
Buildings and leasehold improvements \| Maximum
Property and Depreciation
Estimated useful life	40 years
Machinery and equipment
Property and Depreciation
Property, plant and equipment, gross	$ 522,012	499,312
Machinery and equipment \| Minimum
Property and Depreciation
Estimated useful life	2 years
Machinery and equipment \| Maximum
Property and Depreciation
Estimated useful life	15 years
Tooling
Property and Depreciation
Property, plant and equipment, gross	$ 220,966	231,142
Tooling \| Minimum
Property and Depreciation
Estimated useful life	3 years
Tooling \| Maximum
Property and Depreciation
Estimated useful life	5 years
Computer hardware and software
Property and Depreciation
Property, plant and equipment, gross	$ 97,485	102,312
Computer hardware and software \| Minimum
Property and Depreciation
Estimated useful life	2 years
Computer hardware and software \| Maximum
Property and Depreciation
Estimated useful life	5 years
Construction in process
Property and Depreciation
Property, plant and equipment, gross	$ 85,722	$ 48,157

Summary of Significant Accounting Policies and Related Data - Goodwill and Indefinite-Life Intangible Assets (Details)	12 Months Ended
	Oct. 31, 2021 USD ($) segment reporting_unit	Oct. 31, 2020 USD ($)	Oct. 31, 2019 USD ($)
Accounting Policies [Abstract]
Number of reporting units tested for impairment of goodwill \| reporting_unit	11
Number of operating segments \| segment	11
Number of reporting units containing goodwill \| reporting_unit	8
Goodwill, impairment loss \| $	$ 0	$ 0	$ 0
Impairment of intangible assets, indefinite-lived (excluding goodwill) \| $	$ 0	$ 0	$ 0

Summary of Significant Accounting Policies and Related Data - Other Long-Lived Assets (Details) - USD ($)	12 Months Ended
	Oct. 31, 2021	Oct. 31, 2020	Oct. 31, 2019
Indefinite-lived Intangible Assets [Line Items]
Estimated useful life	14 years 7 months 6 days	15 years 6 months
Impairment of long-lived assets held-for-use	$ 0	$ 0	$ 0
Maximum
Indefinite-lived Intangible Assets [Line Items]
Estimated useful life	20 years

Summary of Significant Accounting Policies and Related Data - Accounts Payable (Details) - USD ($) $ in Millions	Oct. 31, 2021	Oct. 31, 2020
Accounting Policies [Abstract]
Outstanding payment obligations placed on the accounts payable tracking system	$ 91.6	$ 63.5

Summary of Significant Accounting Policies and Related Data - Accrued Warranties (Details) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2021	Oct. 31, 2020	Oct. 31, 2019
Movement in Standard Product Warranty Accrual [Roll Forward]
Beginning balance	$ 107,121	$ 96,604	$ 76,214
Warranty provisions	73,666	60,273	57,277
Acquisitions	0	2,557	18,418
Warranty claims	(71,520)	(67,241)	(58,878)
Changes in estimates	7,516	14,928	3,573
Ending balance	$ 116,783	$ 107,121	$ 96,604

Summary of Significant Accounting Policies and Related Data - Debt Issuance Costs (Details) - USD ($)	Oct. 05, 2021	Oct. 31, 2021	Oct. 31, 2020
Debt Instrument [Line Items]
Debt issuance costs, net		$ 4,600,000	$ 3,900,000
Line of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity under credit facility	$ 600,000,000
Debt instrument, term	5 years

Summary of Significant Accounting Policies and Related Data - Financing Programs (Details) - USD ($) $ in Millions	12 Months Ended
	Oct. 31, 2021	Oct. 31, 2020	Oct. 31, 2019
Accounting Policies [Abstract]
Financing costs for distributor and dealer inventories	$ 20.8	$ 24.1	$ 44.5

Summary of Significant Accounting Policies and Related Data - Advertising (Details) - USD ($) $ in Millions	12 Months Ended
	Oct. 31, 2021	Oct. 31, 2020	Oct. 31, 2019
Accounting Policies [Abstract]
Advertising costs	$ 50.5	$ 50.3	$ 43.5

Summary of Significant Accounting Policies and Related Data - Engineering and Research (Details) - USD ($) $ in Millions	12 Months Ended
	Oct. 31, 2021	Oct. 31, 2020	Oct. 31, 2019
Accounting Policies [Abstract]
Engineering and research costs	$ 141.0	$ 124.1	$ 109.1

Summary of Significant Accounting Policies and Related Data - Net Earnings Per Share (Details) - shares shares in Thousands	12 Months Ended
	Oct. 31, 2021	Oct. 31, 2020	Oct. 31, 2019
Basic
Weighted-average number of shares of common stock (in shares)	107,336	107,647	106,762
Assumed issuance of contingent shares (in shares)	5	11	11
Weighted-average number of shares of common stock outstanding – Basic (in shares)	107,341	107,658	106,773
Diluted
Weighted-average number of shares of common stock outstanding – Basic (in shares)	107,341	107,658	106,773
Effect of dilutive securities (in shares)	1,132	1,005	1,317
Weighted-average number of shares of common stock outstanding – Diluted (in shares)	108,473	108,663	108,090
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	409,851	447,032	716,343

Business Combinations and Asset Acquisitions - Narrative (Details) - USD ($)			3 Months Ended			7 Months Ended	12 Months Ended
	Mar. 02, 2020	Apr. 01, 2019	Jan. 29, 2021	Jul. 31, 2020	May 01, 2020	Oct. 31, 2019	Oct. 31, 2021	Oct. 31, 2020	Oct. 31, 2019	Mar. 31, 2019
Business Acquisition [Line Items]
Business combination, consideration transferred, holdback							$ 24,900,000
Business combination, consideration transferred, holdback expired				$ 4,500,000
Purchase price allocation adjustment							(1,027,000)	$ (866,000)
Goodwill						$ 362,253,000	$ 421,680,000	$ 424,075,000	$ 362,253,000
Estimated useful life							14 years 7 months 6 days	15 years 6 months
$200 million and $300 million term loans \| $500.0 million term loan
Business Acquisition [Line Items]
Aggregate principal amount of notes issued										$ 500,000,000
Trade names
Business Acquisition [Line Items]
Estimated useful life							15 years 4 months 24 days	15 years 4 months 24 days
Developed technology
Business Acquisition [Line Items]
Estimated useful life							7 years	7 years 7 months 6 days
Venture Products, Inc Affiliate
Business Acquisition [Line Items]
Payments to acquire businesses, gross	$ 136,400,000
Business combination, consideration transferred, holdback	29,500,000
Total purchase price	163,225,000			$ 163,200,000
Business combination, acquisition related costs								$ 600,000
Business acquisition, goodwill, expected tax deductible amount							$ 0
Purchase price allocation adjustment			$ (1,000,000)
Goodwill	61,225,000
Other intangible assets	$ 75,300,000
Estimated useful life	16 years
Venture Products, Inc Affiliate \| Professional
Business Acquisition [Line Items]
Goodwill								$ 412,100,000
Venture Products, Inc Affiliate \| Previously Reported
Business Acquisition [Line Items]
Preliminary purchase price	$ 165,900,000
Charles Machine Works, Inc
Business Acquisition [Line Items]
Total purchase price		$ 684,973,000				685,000,000
Business combination, acquisition related costs									10,200,000
Business acquisition, goodwill, expected tax deductible amount							$ 0
Purchase price allocation adjustment					$ (900,000)
Goodwill		134,657,000
Other intangible assets		$ 264,200,000
Estimated useful life		16 years 7 months 6 days
Charles Machine Works, Inc \| Professional
Business Acquisition [Line Items]
Goodwill						$ 350,300,000			$ 350,300,000
Charles Machine Works, Inc \| Trade names
Business Acquisition [Line Items]
Estimated useful life		20 years
Charles Machine Works, Inc \| Customer-related
Business Acquisition [Line Items]
Estimated useful life		18 years 3 months 18 days
Charles Machine Works, Inc \| Developed technology
Business Acquisition [Line Items]
Estimated useful life		7 years 9 months 18 days
Charles Machine Works, Inc \| Backlog
Business Acquisition [Line Items]
Estimated useful life		6 months
Charles Machine Works, Inc \| Previously Reported
Business Acquisition [Line Items]
Preliminary purchase price		$ 679,300,000

Business Combinations and Asset Acquisitions - Allocation of Preliminary Purchase Price, Venture Products (Details) - USD ($) $ in Thousands		3 Months Ended
	Mar. 02, 2020	Jul. 31, 2020	Oct. 31, 2021	Oct. 31, 2020	Oct. 31, 2019
Business Acquisition [Line Items]
Goodwill			$ 421,680	$ 424,075	$ 362,253
Venture Products, Inc Affiliate
Business Acquisition [Line Items]
Cash and cash equivalents	$ 3,476
Receivables	6,342
Inventories	23,000
Prepaid expenses and other current assets	239
Property, plant and equipment	26,976
Goodwill	61,225
Other intangible assets:
Accounts payable	(4,075)
Accrued liabilities	(5,196)
Deferred income tax liabilities	(20,586)
Total fair value of net assets acquired	166,701
Less: cash and cash equivalents acquired	(3,476)
Total purchase price	163,225	$ 163,200
Venture Products, Inc Affiliate \| Trade names
Other intangible assets:
Indefinite-lived intangibles	56,200
Venture Products, Inc Affiliate \| Customer-related
Other intangible assets:
Finite-lived intangibles	$ 19,100

Business Combinations and Asset Acquisitions - Summary of Purchase Price Allocation (Details) - USD ($) $ in Thousands		7 Months Ended
	Apr. 01, 2019	Oct. 31, 2019	Oct. 31, 2021	Oct. 31, 2020
Business Acquisition [Line Items]
Goodwill		$ 362,253	$ 421,680	$ 424,075
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	8,050
Property, plant and equipment	142,779
Goodwill	134,657
Finite-lived other intangible assets:
Other long-term assets	7,971
Accounts payable	(35,892)
Accrued liabilities	(51,943)
Deferred income tax liabilities	(85,277)
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
Charles Machine Works, Inc \| Customer-related
Finite-lived other intangible assets:
Finite-lived intangibles	130,800
Charles Machine Works, Inc \| Developed technology
Finite-lived other intangible assets:
Finite-lived intangibles	20,900
Charles Machine Works, Inc \| Trade names
Finite-lived other intangible assets:
Finite-lived intangibles	5,200
Charles Machine Works, Inc \| Backlog
Finite-lived other intangible assets:
Finite-lived intangibles	3,590
Charles Machine Works, Inc \| Trade names
Indefinite-lived other intangible assets:
Indefinite-lived intangibles	$ 103,700

Business Combinations and Asset Acquisitions - Pro Forma (Details) - Charles Machine Works, Inc $ / shares in Units, $ in Thousands	12 Months Ended
	Oct. 31, 2019 USD ($) $ / shares
Business Acquisition [Line Items]
Net sales \| $	$ 3,437,335
Net earnings \| $	$ 363,452
Basic net earnings per share of common stock (in dollars per share) \| $ / shares	$ 3.40
Diluted net earnings per share of common stock (in dollars per share) \| $ / shares	$ 3.36
Defined benefit plan, net periodic benefit cost (credit), gain (loss) due to settlement \| $	$ 45,800
Defined benefit plan, net periodic benefit cost (credit), gain (loss) due to settlement, per share, diluted (in dollars per share) \| $ / shares	$ 0.42

Segment Data - Narrative (Details)	12 Months Ended
Segment Data - Narrative (Details)	Oct. 31, 2021 segment
Segment Reporting Information [Line Items]
Number of operating segments	11
Number of reportable business segments	2
One Customer \| Revenue from Contract with Customer \| Customer concentration
Segment Reporting Information [Line Items]
Percentage of consolidated gross sales accounted for by one customer	10.60%

Segment Data - Summarized Financial Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2021	Oct. 31, 2020	Oct. 31, 2019
Segment Reporting Information [Line Items]
Net sales	$ 3,959,584	$ 3,378,810	$ 3,138,084
Earnings (loss) before income taxes	499,818	407,070	322,133
Total assets	2,936,140	2,853,228	2,330,547
Capital expenditures	104,012	78,068	92,881
Depreciation and amortization	99,316	95,615	87,698
Operating Segments \| Professional
Segment Reporting Information [Line Items]
Net sales	2,929,600	2,523,452	2,443,448
Earnings (loss) before income taxes	507,327	426,560	380,914
Total assets	2,032,350	1,940,844	1,592,065
Capital expenditures	79,515	49,975	57,246
Depreciation and amortization	73,747	70,460	63,885
Operating Segments \| Residential
Segment Reporting Information [Line Items]
Net sales	1,010,077	820,745	661,274
Earnings (loss) before income taxes	121,516	113,669	65,151
Total assets	388,246	282,061	430,495
Capital expenditures	16,730	13,669	16,970
Depreciation and amortization	13,470	12,607	11,897
Other
Segment Reporting Information [Line Items]
Net sales	19,907	34,613	33,362
Earnings (loss) before income taxes	(129,025)	(133,159)	(123,932)
Total assets	515,544	630,323	307,987
Capital expenditures	7,767	14,424	18,665
Depreciation and amortization	12,099	12,548	11,916
Intersegment Eliminations
Segment Reporting Information [Line Items]
Net sales	(30,574)	(46,783)	(59,763)
Intersegment Eliminations \| Professional
Segment Reporting Information [Line Items]
Net sales	30,530	46,703	59,453
Intersegment Eliminations \| Residential
Segment Reporting Information [Line Items]
Net sales	$ 44	$ 80	$ 310

Segment Data - Other Segment Operating Loss Before Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2021	Oct. 31, 2020	Oct. 31, 2019
Segment Reporting Information [Line Items]
Interest expense	$ (28,659)	$ (33,156)	$ (28,835)
Earnings from wholly-owned domestic distribution companies and other income, net	10,197	13,869	25,939
Earnings before income taxes	499,818	407,070	322,133
Other
Segment Reporting Information [Line Items]
Corporate expenses	(112,419)	(108,396)	(124,422)
Interest expense	(28,659)	(33,156)	(28,835)
Earnings from wholly-owned domestic distribution companies and other income, net	12,053	8,393	29,325
Earnings before income taxes	$ (129,025)	$ (133,159)	$ (123,932)

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8906-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 940
-SubTopic 20
-Section 25
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=123384075&loc=d3e41242-110953

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(10))
-URI http://asc.fasb.org/extlink&oid=123367319&loc=SL114868664-224227

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(8))
-URI http://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 235
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-05(b)(2))
-URI http://asc.fasb.org/extlink&oid=120399901&loc=d3e537907-122884

Reference 9: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
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-Topic 942
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-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(15))
-URI http://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

+ Details

Segment Data - Geographic Data (Details) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2021	Oct. 31, 2020	Oct. 31, 2019
Geographic Data
Net sales	$ 3,959,584	$ 3,378,810	$ 3,138,084
Long-lived assets	487,731	467,919	437,317
United States
Geographic Data
Net sales	3,131,954	2,700,694	2,413,153
Long-lived assets	440,555	426,378	395,937
International Countries
Geographic Data
Net sales	827,630	678,116	724,931
Long-lived assets	$ 47,176	$ 41,541	$ 41,380

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Subparagraph (a)
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-Publisher FASB
-Name Accounting Standards Codification
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Paragraph 4
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-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130543-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130545-203045

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+ Details

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2021	Oct. 31, 2020	Oct. 31, 2019
Disaggregation of Revenue [Line Items]
Net sales	$ 3,959,584	$ 3,378,810	$ 3,138,084
United States
Disaggregation of Revenue [Line Items]
Net sales	3,131,954	2,700,694	2,413,153
International Countries
Disaggregation of Revenue [Line Items]
Net sales	827,630	678,116	724,931
Equipment
Disaggregation of Revenue [Line Items]
Net sales	3,518,329	2,985,295	2,747,935
Irrigation
Disaggregation of Revenue [Line Items]
Net sales	441,255	393,515	390,149
Operating Segments \| Professional
Disaggregation of Revenue [Line Items]
Net sales	2,929,600	2,523,452	2,443,448
Operating Segments \| Professional \| United States
Disaggregation of Revenue [Line Items]
Net sales	2,268,878	1,976,690	1,853,054
Operating Segments \| Professional \| International Countries
Disaggregation of Revenue [Line Items]
Net sales	660,722	546,762	590,394
Operating Segments \| Professional \| Equipment
Disaggregation of Revenue [Line Items]
Net sales	2,530,777	2,175,794	2,097,965
Operating Segments \| Professional \| Irrigation
Disaggregation of Revenue [Line Items]
Net sales	398,823	347,658	345,483
Operating Segments \| Residential
Disaggregation of Revenue [Line Items]
Net sales	1,010,077	820,745	661,274
Operating Segments \| Residential \| United States
Disaggregation of Revenue [Line Items]
Net sales	843,169	689,391	526,737
Operating Segments \| Residential \| International Countries
Disaggregation of Revenue [Line Items]
Net sales	166,908	131,354	134,537
Operating Segments \| Residential \| Equipment
Disaggregation of Revenue [Line Items]
Net sales	975,832	787,716	628,521
Operating Segments \| Residential \| Irrigation
Disaggregation of Revenue [Line Items]
Net sales	34,245	33,029	32,753
Other
Disaggregation of Revenue [Line Items]
Net sales	19,907	34,613	33,362
Other \| United States
Disaggregation of Revenue [Line Items]
Net sales	19,907	34,613	33,362
Other \| International Countries
Disaggregation of Revenue [Line Items]
Net sales	0	0	0
Other \| Equipment
Disaggregation of Revenue [Line Items]
Net sales	11,720	21,785	21,449
Other \| Irrigation
Disaggregation of Revenue [Line Items]
Net sales	$ 8,187	$ 12,828	$ 11,913

Revenue - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
Revenue - Narrative (Details) - USD ($) $ in Millions	Oct. 31, 2021	Oct. 31, 2020
Disaggregation of Revenue [Line Items]
Consignment inventory amount	$ 37.2	$ 24.6
Contract with customer, liability	24.1	$ 21.9
Contract with customer, liability, revenue recognized	$ 10.0
Minimum \| Product Revenue
Disaggregation of Revenue [Line Items]
Contract with customer, contract period	30 days
Minimum \| Service Revenue
Disaggregation of Revenue [Line Items]
Contract with customer, contract period	12 months
Minimum \| Warranty Revenue
Disaggregation of Revenue [Line Items]
Contract with customer, contract period	12 months
Maximum \| Product Revenue
Disaggregation of Revenue [Line Items]
Contract with customer, contract period	120 days
Maximum \| Service Revenue
Disaggregation of Revenue [Line Items]
Contract with customer, contract period	60 months
Maximum \| Warranty Revenue
Disaggregation of Revenue [Line Items]
Contract with customer, contract period	24 months

Revenue - Performance Obligation (Details) $ in Millions	Oct. 31, 2021 USD ($)
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	$ 11.1
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-11-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 13.0
Revenue, remaining performance obligation, expected timing of satisfaction, period

Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2021	Oct. 31, 2020	Oct. 31, 2019	Mar. 02, 2020
Business Acquisition [Line Items]
Goodwill	$ 421,680	$ 424,075	$ 362,253
Amortization expense for intangible assets	23,800	$ 19,500	$ 18,400
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Fiscal 2022	24,200
Fiscal 2023	22,400
Fiscal 2024	21,400
Fiscal 2025	19,800
Fiscal 2026	19,000
After fiscal 2026	$ 122,600
Venture Products, Inc Affiliate
Business Acquisition [Line Items]
Goodwill				$ 61,225
Finite-lived other intangible assets:				$ 75,300

Goodwill and Other Intangible Assets - Changes in Net Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2021	Oct. 31, 2020
Changes in the net carrying amount of goodwill
Goodwill as of the beginning of the fiscal period	$ 424,075	$ 362,253
Goodwill acquired		62,252
Purchase price allocation adjustment	(1,027)	(866)
Goodwill divested	(1,534)
Translation adjustments	166	436
Goodwill as of the end of the fiscal period	421,680	424,075
Operating Segments \| Professional
Changes in the net carrying amount of goodwill
Goodwill as of the beginning of the fiscal period	412,061	350,250
Goodwill acquired		62,252
Purchase price allocation adjustment	(1,027)	(866)
Goodwill divested	0
Translation adjustments	45	425
Goodwill as of the end of the fiscal period	411,079	412,061
Operating Segments \| Residential
Changes in the net carrying amount of goodwill
Goodwill as of the beginning of the fiscal period	10,480	10,469
Goodwill acquired		0
Purchase price allocation adjustment	0	0
Goodwill divested	0
Translation adjustments	121	11
Goodwill as of the end of the fiscal period	10,601	10,480
Other
Changes in the net carrying amount of goodwill
Goodwill as of the beginning of the fiscal period	1,534	1,534
Goodwill acquired		0
Purchase price allocation adjustment	0	0
Goodwill divested	(1,534)
Translation adjustments	0	0
Goodwill as of the end of the fiscal period	$ 0	$ 1,534

Goodwill and Other Intangible Assets - Components of Other Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2021	Oct. 31, 2020
Other Intangible Assets
Estimated useful life	14 years 7 months 6 days	15 years 6 months
Gross Carrying Amount	$ 364,263	$ 328,698
Accumulated Amortization	(134,866)	(110,905)
Net	229,397	217,793
Indefinite-lived - trade names	190,644	190,512
Total other intangible assets, gross	554,907	519,210
Total other intangible assets, net	$ 420,041	$ 408,305
Patents
Other Intangible Assets
Estimated useful life	9 years 10 months 24 days	9 years 10 months 24 days
Gross Carrying Amount	$ 18,283	$ 18,257
Accumulated Amortization	(14,670)	(13,919)
Net	$ 3,613	$ 4,338
Non-compete agreements
Other Intangible Assets
Estimated useful life	5 years 6 months	5 years 6 months
Gross Carrying Amount	$ 6,914	$ 6,892
Accumulated Amortization	(6,872)	(6,831)
Net	$ 42	$ 61
Customer-related
Other Intangible Assets
Estimated useful life	18 years 2 months 12 days	18 years 2 months 12 days
Gross Carrying Amount	$ 239,679	$ 239,634
Accumulated Amortization	(62,617)	(48,005)
Net	$ 177,062	$ 191,629
Developed technology
Other Intangible Assets
Estimated useful life	7 years	7 years 7 months 6 days
Gross Carrying Amount	$ 87,473	$ 51,995
Accumulated Amortization	(43,348)	(35,208)
Net	$ 44,125	$ 16,787
Trade names
Other Intangible Assets
Estimated useful life	15 years 4 months 24 days	15 years 4 months 24 days
Gross Carrying Amount	$ 7,524	$ 7,530
Accumulated Amortization	(2,969)	(2,552)
Net	$ 4,555	$ 4,978
Backlog and other
Other Intangible Assets
Estimated useful life	7 months 6 days	7 months 6 days
Gross Carrying Amount	$ 4,390	$ 4,390
Accumulated Amortization	(4,390)	(4,390)
Net	$ 0	$ 0

Indebtedness - Summary of Long Term Debt (Details) - USD ($)			1 Months Ended
	Oct. 05, 2021	Mar. 30, 2020	Mar. 31, 2019	Jun. 30, 1997	Oct. 31, 2021	Oct. 31, 2020	Jun. 27, 2019	Apr. 30, 2019
Debt Instrument [Line Items]
Less: unamortized discounts, debt issuance costs, and deferred charges					$ 2,798,000	$ 2,855,000
Total long-term debt					691,242,000	791,123,000
Less: current portion of long-term debt					0	99,873,000
Long-term debt, less current portion					691,242,000	691,250,000
Line of Credit
Debt Instrument [Line Items]
Carrying amount of long-term debt					0	0
Debt instrument, term	5 years
Senior Notes \| $270 million term loan
Debt Instrument [Line Items]
Carrying amount of long-term debt					270,000,000	0
Total long-term debt					270,000,000
Aggregate principal amount of notes issued	$ 270,000,000.0				270,000,000
Debt instrument, term	5 years
Senior Notes \| $200 million term loan
Debt Instrument [Line Items]
Carrying amount of long-term debt					0	100,000,000
Aggregate principal amount of notes issued			$ 200,000,000		200,000,000
Debt instrument, term			3 years
Senior Notes \| $300 million term loan
Debt Instrument [Line Items]
Carrying amount of long-term debt					0	180,000,000
Aggregate principal amount of notes issued			$ 300,000,000		300,000,000
Debt instrument, term			5 years
Senior Notes \| $190 million term loan
Debt Instrument [Line Items]
Carrying amount of long-term debt					0	90,000,000
Aggregate principal amount of notes issued		$ 190,000,000.0			$ 190,000,000
Interest rate percentage					0.75%
Debt instrument, term		3 years
Senior Notes \| 3.81% series A senior notes
Debt Instrument [Line Items]
Carrying amount of long-term debt					$ 100,000,000	100,000,000
Aggregate principal amount of notes issued							$ 100,000,000	$ 100,000,000
Interest rate percentage					3.81%			3.81%
Senior Notes \| 3.91% series B senior notes
Debt Instrument [Line Items]
Carrying amount of long-term debt					$ 100,000,000	100,000,000
Aggregate principal amount of notes issued							$ 100,000,000	$ 100,000,000
Interest rate percentage					3.91%			3.91%
Senior Notes \| 6.625% senior notes
Debt Instrument [Line Items]
Carrying amount of long-term debt					$ 124,040,000	123,978,000
Interest rate percentage					6.625%
Debentures
Debt Instrument [Line Items]
Aggregate principal amount of notes issued				$ 175,000,000
Interest rate percentage				7.80%
Debentures \| 7.8% debentures
Debt Instrument [Line Items]
Carrying amount of long-term debt					$ 100,000,000	$ 100,000,000
Total long-term debt				$ 100,000,000
Interest rate percentage				7.80%	7.80%
Debt instrument, term				30 years

Indebtedness - Narrative (Details)				1 Months Ended		3 Months Ended			12 Months Ended
Indebtedness - Narrative (Details)	Oct. 05, 2021 USD ($)	Mar. 30, 2020 USD ($)	Apr. 30, 2019 USD ($)	Mar. 31, 2019 USD ($)	Jun. 30, 1997 USD ($) instrument	Oct. 31, 2021 USD ($)	Apr. 30, 2021 USD ($)	Jan. 29, 2021 USD ($)	Oct. 31, 2021 USD ($)	Oct. 31, 2020 USD ($)	Oct. 31, 2019 USD ($)	Jun. 27, 2019 USD ($)	Jun. 01, 2018 USD ($)	Apr. 26, 2007 USD ($)
Principal payments on long-term debt in fiscal years
Fiscal 2022						$ 0			$ 0
Fiscal 2023						0			0
Fiscal 2024						0			0
Fiscal 2025						27,000,000			27,000,000
Fiscal 2026						243,000,000			243,000,000
After fiscal 2026						425,000,000			425,000,000
Total long-term debt						691,242,000			691,242,000	$ 791,123,000
6.625% Senior Notes
Principal payments on long-term debt in fiscal years
Interest expense, debt									$ 8,400,000	8,400,000	$ 8,400,000
Debt instrument, basis spread on variable rate									0.30%
Senior Notes \| $270 million term loan
Principal payments on long-term debt in fiscal years
Debt instrument, term	5 years
Carrying amount of long-term debt						270,000,000			$ 270,000,000	0
Total long-term debt						270,000,000			270,000,000
Interest expense, debt									200,000	0	0
Aggregate principal amount of notes issued	$ 270,000,000.0					270,000,000			270,000,000
Accordion feature, increase limit	100,000,000
Quarterly principal payment	$ 6,750,000
Senior Notes \| $200 million and $300 million term loans
Principal payments on long-term debt in fiscal years
Interest expense, debt									3,100,000	5,200,000	7,500,000
Aggregate principal amount of notes issued				$ 500,000,000
Senior Notes \| $200 million term loan
Principal payments on long-term debt in fiscal years
Debt instrument, term				3 years
Carrying amount of long-term debt						0			0	100,000,000
Aggregate principal amount of notes issued				$ 200,000,000		200,000,000			200,000,000
Early repayment of senior debt						100,000,000				100,000,000
Senior Notes \| $300 million term loan
Principal payments on long-term debt in fiscal years
Debt instrument, term				5 years
Carrying amount of long-term debt						0			0	180,000,000
Aggregate principal amount of notes issued				$ 300,000,000		300,000,000			300,000,000
Early repayment of senior debt						170,000,000	$ 10,000,000			120,000,000
Senior Notes \| $190 million term loan
Principal payments on long-term debt in fiscal years
Debt instrument, term		3 years
Carrying amount of long-term debt						0			0	90,000,000
Interest expense, debt									300,000	2,400,000
Aggregate principal amount of notes issued		$ 190,000,000.0				$ 190,000,000			$ 190,000,000
Early repayment of senior debt								$ 90,000,000		100,000,000
Interest rate percentage						0.75%			0.75%
Senior Notes \| Series A and Series B Senior Notes
Principal payments on long-term debt in fiscal years
Interest expense, debt									$ 7,700,000	7,700,000	2,600,000
Senior Notes \| Series A and Series B Senior Notes \| Debt Instrument, Redemption, Period One
Principal payments on long-term debt in fiscal years
Debt instrument, redemption price, percentage			10.00%
Senior Notes \| Series A and Series B Senior Notes \| Debt Instrument, Redemption, Period Two
Principal payments on long-term debt in fiscal years
Debt instrument, redemption price, percentage			100.00%
Senior Notes \| Series A and Series B Senior Notes \| Debt Instrument, Redemption, Period Three
Principal payments on long-term debt in fiscal years
Debt instrument, redemption price, percentage			100.00%
Senior Notes \| 3.81% series A senior notes
Principal payments on long-term debt in fiscal years
Carrying amount of long-term debt						$ 100,000,000			$ 100,000,000	100,000,000
Aggregate principal amount of notes issued			$ 100,000,000									$ 100,000,000
Interest rate percentage			3.81%			3.81%			3.81%
Senior Notes \| 3.91% series B senior notes
Principal payments on long-term debt in fiscal years
Carrying amount of long-term debt						$ 100,000,000			$ 100,000,000	100,000,000
Aggregate principal amount of notes issued			$ 100,000,000									$ 100,000,000
Interest rate percentage			3.91%			3.91%			3.91%
Senior Notes \| 6.625% Senior Notes
Principal payments on long-term debt in fiscal years
Aggregate principal amount of notes issued														$ 125,000,000
Interest rate percentage						6.625%			6.625%					6.625%
Percentage of par value at which debt was issued														98.513%
Debt discount, unamortized														$ 1,900,000
Effective interest rate						6.741%			6.741%
Redemption price as a percentage of the principal amount upon the occurrence of both a change of control and downgrade of rating									101.00%
Debentures
Principal payments on long-term debt in fiscal years
Interest expense, debt									$ 8,000,000	8,000,000	7,900,000
Aggregate principal amount of notes issued					$ 175,000,000
Interest rate percentage					7.80%
Amount paid to terminate forward-starting interest rate swap agreements					$ 23,700,000
Number of terminated forward-starting interest rate swap agreements \| instrument					3
Derivative, notional amount					$ 125,000,000
Deferred income amount at the time of swap termination					$ 18,700,000
Debentures \| Coupon 7.125% Debt Notes
Principal payments on long-term debt in fiscal years
Debt instrument, term					10 years
Aggregate principal amount of notes issued					$ 75,000,000
Interest rate percentage					7.125%
Debentures \| 7.8% debentures
Principal payments on long-term debt in fiscal years
Debt instrument, term					30 years
Carrying amount of long-term debt						$ 100,000,000			$ 100,000,000	100,000,000
Total long-term debt					$ 100,000,000
Interest rate percentage					7.80%	7.80%			7.80%
Revolving Credit Facility \| Unsecured Revolving Credit Facility
Principal payments on long-term debt in fiscal years
Debt instrument, term	5 years
Maximum borrowing capacity under credit facility	$ 600,000,000												$ 600,000,000
Accordion feature	300,000,000
Carrying amount of long-term debt						$ 0			$ 0	0
Unused borrowing capacity						596,900,000			596,900,000	597,500,000
Interest expense, debt									0	800,000	$ 1,900,000
Standby Letters of Credit \| Unsecured Revolving Credit Facility
Principal payments on long-term debt in fiscal years
Maximum borrowing capacity under credit facility	10,000,000
Total long-term debt						$ 3,100,000			$ 3,100,000	$ 2,500,000
Swingline Loan \| Unsecured Revolving Credit Facility
Principal payments on long-term debt in fiscal years
Maximum borrowing capacity under credit facility	$ 30,000,000

Management Actions (Details) - USD ($)	12 Months Ended
Management Actions (Details) - USD ($)	Oct. 31, 2021	Oct. 31, 2020	Oct. 31, 2019
Cost of sales
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Restructuring charges			$ 600,000
Selling, General and Administrative Expenses
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Restructuring charges			6,000,000
Toro Underground Wind Down \| Disposal Group, Not Discontinued Operations
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		$ 900,000	8,800,000
Toro Underground Wind Down \| Disposal Group, Not Discontinued Operations \| Net sales
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	$ 0	$ 0	$ 1,200,000

Investment in Joint Venture (Details) - Red Iron Acceptance, LLC - USD ($)	12 Months Ended
	Oct. 31, 2021	Oct. 31, 2020	Oct. 31, 2019
Schedule of Equity Method Investments [Line Items]
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 receivables financed for dealers and distributors	2,282,600,000	$ 1,832,500,000	$ 1,924,900,000
Receivable due	$ 31,000,000	12,600,000
Portion owned by Toro	45.00%
Portion owned by TCFIF	55.00%
Maximum borrowing capacity under credit facility	$ 625,000,000
Investment in joint venture	$ 20,700,000	$ 19,700,000

Income Taxes - Earnings Before Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2021	Oct. 31, 2020	Oct. 31, 2019
Earnings before income taxes:
United States	$ 446,256	$ 369,016	$ 283,730
Foreign	53,562	38,054	38,403
Total earnings before income taxes	$ 499,818	$ 407,070	$ 322,133

Income Taxes - Reconciliation of the Statutory Federal Income Tax Rate (Details)	12 Months Ended
	Oct. 31, 2021	Oct. 31, 2020	Oct. 31, 2019
Effective Income Tax Rate Reconciliation, Percent [Abstract]
Statutory federal income tax rate	21.00%	21.00%	21.00%
Excess deduction for stock-based compensation	(1.50%)	(1.70%)	(3.70%)
Domestic manufacturer's deduction	0.00%	0.00%	0.10%
State and local income taxes, net of federal benefit	1.40%	2.40%	1.10%
Foreign operations	(0.50%)	(0.60%)	(0.30%)
Federal research tax credit	(1.40%)	(1.70%)	(1.50%)
Foreign-derived intangible income	(0.90%)	0.00%	(1.30%)
Remeasurement of deferred tax assets and liabilities	0.00%	0.00%	(0.10%)
Deemed repatriation tax	0.00%	0.00%	(0.20%)
Other, net	(0.10%)	(0.40%)	(0.20%)
Effective tax rate	18.00%	19.00%	14.90%

Income Taxes - Components of the Provisions for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2021	Oct. 31, 2020	Oct. 31, 2019
Current provision:
Federal	$ 90,222	$ 58,243	$ 37,415
State	15,973	11,322	7,495
Foreign	9,163	5,534	6,846
Total current provision	115,358	75,099	51,756
Deferred provision (benefit):
Federal	(18,361)	1,710	(37)
State	(6,486)	634	(3,205)
Foreign	(573)	(74)	(364)
Total deferred provision (benefit)	(25,420)	2,270	(3,606)
Total provision for income taxes	$ 89,938	$ 77,369	$ 48,150

Income Taxes - Tax Effects of Temporary Differences (Details) - USD ($) $ in Thousands	Oct. 31, 2021	Oct. 31, 2020
Deferred income tax assets:
Compensation and benefits	$ 34,403	$ 30,363
Warranty and insurance	30,840	28,480
Lease liabilities	17,735	20,843
Advertising and sales promotions and incentives	6,669	6,937
Inventory	21,118	4,937
Deferred revenue	4,232	2,910
Other	10,520	9,643
Valuation allowance	(3,205)	(3,570)
Deferred income tax assets	122,312	100,543
Deferred income tax liabilities:
Right-of-use assets	(17,071)	(20,179)
Depreciation	(47,551)	(49,018)
Amortization	(102,287)	(95,315)
Deferred income tax liabilities	(166,909)	(164,512)
Deferred income tax liabilities, net	$ (44,597)	$ (63,969)

Income Taxes - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
Income Taxes - Narrative (Details) - USD ($) $ in Thousands	Oct. 31, 2021	Oct. 31, 2020
Income Taxes [Line Items]
Valuation allowance, deferred tax asset, increase (decrease), amount	$ (400)
Undistributed earnings of foreign subsidiaries	22,300
Unrecognized Tax Benefits	3,113	$ 2,860
Accrued interest and penalties for unrecognized tax benefits	1,000
Potential benefits that would affect the effective tax rate	3,300
Foreign Jurisdictions
Income Taxes [Line Items]
Net operating loss carryforwards in foreign jurisdictions	1,300
Net operating loss carryforwards in foreign jurisdictions not subject to expiration	900
Net operating loss carryforwards subject to expiration	400
Domestic Tax Authority
Income Taxes [Line Items]
Net operating loss carryforwards subject to expiration	$ 2,700

Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) $ in Thousands	12 Months Ended
	Oct. 31, 2021 USD ($)
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance at the beginning of the period	$ 2,860
Increase as a result of tax positions taken during a prior period	59
Decrease as a result of tax positions taken during a prior period	(98)
Increase as a result of tax positions taken during the current period	397
Reductions as a result of statute of limitations lapses	(105)
Balance at the end of the period	$ 3,113

Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Oct. 31, 2021	Oct. 31, 2020	Oct. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock available for future grants (in shares)	3,063,231
Share-based Payment Arrangement, Nonemployee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	8,070	8,920	10,090
Stock option awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost not yet recognized	$ 3.1
Period for recognition	1 year 11 months 1 day
Stock option awards \| Certain employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	3 years
Term of award	10 years
Stock option awards \| Nonemployee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Requisite service period for non-employee director after which fair value of options granted is fully expensed on the date of grant	10 years
Performance share awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost not yet recognized	$ 9.0
Period for recognition	1 year 9 months 18 days
Performance goal period	3 years
Granted (in shares)	53,976,000
Restricted stock unit awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	3 years
Compensation cost not yet recognized	$ 5.3
Period for recognition	2 years 2 months 8 days
Granted (in shares)	73,098,000
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights percentage	200.00%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights percentage	0.00%
Share-based Compensation Award, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights percentage	33.33%
Share-based Compensation Award, Tranche One \| Restricted stock unit awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights percentage	33.33%
Share-based Compensation Award, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights percentage	33.33%
Share-based Compensation Award, Tranche Two \| Restricted stock unit awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights percentage	33.33%
Share-based Compensation Award, Tranche Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights percentage	33.33%
Share-based Compensation Award, Tranche Three \| Restricted stock unit awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights percentage	33.33%

Stock-Based Compensation - Compensation Costs Related to Stock-Based Awards (Details) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2021	Oct. 31, 2020	Oct. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total compensation cost for stock-based awards	$ 21,809	$ 15,408	$ 13,429
Related tax benefit from stock-based compensation awards	5,221	3,696	3,200
Stock option awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total compensation cost for stock-based awards	9,971	9,163	6,537
Performance share awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total compensation cost for stock-based awards	6,861	2,123	3,070
Restricted stock unit awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total compensation cost for stock-based awards	4,306	3,429	3,230
Unrestricted common stock awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total compensation cost for stock-based awards	$ 671	$ 693	$ 592

Stock-Based Compensation - Weighted-average Valuation Assumptions For Options Granted (Details) - $ / shares	12 Months Ended
	Oct. 31, 2021	Oct. 31, 2020	Oct. 31, 2019
Share-based Payment Arrangement [Abstract]
Expected life of option in years	6 years 2 months 15 days	6 years 3 months 21 days	6 years 3 months 21 days
Expected stock price volatility	23.26%	19.53%	19.83%
Risk-free interest rate	0.55%	1.73%	2.77%
Expected dividend yield	0.86%	0.99%	1.18%
Per share weighted-average fair value at date of grant (in dollars per share)	$ 19.39	$ 15.23	$ 12.83

Stock-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Oct. 31, 2021	Oct. 31, 2020
Stock Option Awards
Outstanding at the beginning of the period (in shares)	2,646,603
Granted (in shares)	546,569
Exercised (in shares)	(403,134)
Forfeited (in shares)	(18,684)
Outstanding at the end of the period (in shares)	2,771,354	2,646,603
Exercisable at the end of the period (in shares)	1,691,552
Weighted-Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)	$ 54.40
Granted (in dollars per share)	92.73
Exercised (in dollars per share)	35.02
Forfeited (in dollars per share)	81.29
Outstanding at the end of the period (in dollars per share)	64.60	$ 54.40
Exercisable at the end of the period (in dollars per share)	$ 53.90
Additional Disclosures
Outstanding, Weighted-average contractual life	6 years 3 months 18 days	6 years 2 months 12 days
Exercisable at the end of the period, Weighted-average contractual life	5 years
Outstanding of the beginning of the period, aggregate intrinsic value	$ 73,305
Outstanding of the end of the period, aggregate intrinsic value	85,576	$ 73,305
Exercisable at the end of the period, aggregate intrinsic value	$ 70,313

Stock-Based Compensation - Market and Intrinsic Value of Options Exercised (Details) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2021	Oct. 31, 2020	Oct. 31, 2019
Share-based Payment Arrangement [Abstract]
Market value of stock options exercised	$ 40,071	$ 56,761	$ 92,352
Intrinsic value of stock options exercised	$ 25,952	$ 33,920	$ 62,288

Stock-Based Compensation - Factors Related to the Company's Performance Share Awards (Details) - Performance share awards - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Oct. 31, 2021	Oct. 31, 2020	Oct. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average per award fair value at date of grant (in dollars per share)	$ 90.59	$ 77.33	$ 59.58
Fair value of restricted stock units vested	$ 3,428	$ 6,271	$ 6,300

Stock-Based Compensation - Summary of Activity For Unvested Performance Share Awards (Details) - Performance share awards - $ / shares shares in Thousands	12 Months Ended
	Oct. 31, 2021	Oct. 31, 2020	Oct. 31, 2019
Performance Shares
Unvested at the beginning of the period (in shares)	187,421
Granted (in shares)	53,976
Vested (in shares)	(37,153)
Unvested at the end of the period (in shares)	204,244	187,421
Weighted-Average Fair Value at Date of Grant
Unvested at the beginning of the period (in dollars per share)	$ 67.58
Granted (in dollars per share)	90.59	$ 77.33	$ 59.58
Vested (in dollars per share)	65.40
Unvested at the end of the period (in dollars per share)	$ 76.16	$ 67.58

Stock-Based Compensation - Factors Related to the Company's Stock and Restricted Stock Units (Details) - Restricted stock unit awards - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Oct. 31, 2021	Oct. 31, 2020	Oct. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average per award fair value at date of grant (in dollars per share)	$ 97.87	$ 74.55	$ 66.26
Fair value of restricted stock units vested	$ 4,464	$ 3,410	$ 3,083

Stock-Based Compensation - Summary of Activity For Unvested Restricted Stock and Restricted Stock Units (Details) - Restricted stock unit awards - $ / shares shares in Thousands	12 Months Ended
	Oct. 31, 2021	Oct. 31, 2020	Oct. 31, 2019
Restricted Stock Units
Unvested at the beginning of the period (in shares)	100,280
Granted (in shares)	73,098
Vested (in shares)	(44,142)
Forfeited (in shares)	(4,984)
Unvested at the end of the period (in shares)	124,252	100,280
Weighted-Average Fair Value at Date of Grant
Unvested at the beginning of the period (in dollars per share)	$ 67.69
Granted (in dollars per share)	97.87	$ 74.55	$ 66.26
Vested (in dollars per share)	65.68
Forfeited (in dollars per share)	79.15
Unvested at the end of the period (in dollars per share)	$ 85.54	$ 67.69

Stockholders' Equity - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2021	Oct. 31, 2020	Oct. 31, 2019	Dec. 04, 2018	Dec. 03, 2015
Stock repurchase program
Payments for repurchase of common stock	$ 302,274	$ 0	$ 20,043
Repurchase of shares (in shares)	3,010,424	29,422	403,532
Treasury shares
Treasury shares held (in shares)	22,566,717	20,545,330
Cost of treasury shares	$ 1,595,800	$ 1,323,200
Stock repurchase program
Stock repurchase program
Number of shares authorized to be repurchased (in shares)					8,000,000
Number of shares remained authorized for repurchase (in shares)	0
Repurchase of shares (in shares)	2,989,794	0	359,758
December 2018 Stock Repurchase Program
Stock repurchase program
Number of shares remained authorized for repurchase (in shares)	4,052,462			5,000,000

Stockholders' Equity - Components of AOCL (Details) - USD ($) $ in Thousands	Oct. 31, 2021	Oct. 31, 2020
Accumulated other comprehensive loss (AOCL)
Foreign currency translation adjustments	$ 19,535	$ 24,508
Pension benefits	3,899	5,106
Cash flow derivative instruments	2,562	4,648
Total accumulated other comprehensive loss	$ 25,996	$ 34,262

- Definition

Accumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at period end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, unrealized gains and losses on certain investments in debt and equity securities, other than temporary impairment (OTTI) losses related to factors other than credit losses on available-for-sale and held-to-maturity debt securities that an entity does not intend to sell and it is not more likely than not that the entity will be required to sell before recovery of the amortized cost basis, as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge.

+ References + Details

Stockholders' Equity - Components and Activity of AOCL (Details) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2021	Oct. 31, 2020	Oct. 31, 2019
Components and activity of accumulated other comprehensive loss
Balance as of the beginning of the fiscal period	$ (1,114,828)	$ (859,578)	$ (668,916)
Other comprehensive (income) loss before reclassifications	(19,010)	7,887
Amounts reclassified from AOCL	10,744	(5,674)
Net current period other comprehensive (income) loss	(8,266)	2,213	8,112
Balance as of the end of the fiscal period	(1,151,132)	(1,114,828)	(859,578)
Total
Components and activity of accumulated other comprehensive loss
Balance as of the beginning of the fiscal period	34,262	32,049	23,937
Net current period other comprehensive (income) loss	(8,266)	2,213	8,112
Balance as of the end of the fiscal period	25,996	34,262	32,049
Foreign Currency Translation Adjustments
Components and activity of accumulated other comprehensive loss
Balance as of the beginning of the fiscal period	24,508	31,025
Other comprehensive (income) loss before reclassifications	(4,973)	(6,517)
Net current period other comprehensive (income) loss	(4,973)	(6,517)
Balance as of the end of the fiscal period	19,535	24,508	31,025
Pension Benefits
Components and activity of accumulated other comprehensive loss
Balance as of the beginning of the fiscal period	5,106	4,861
Other comprehensive (income) loss before reclassifications	(1,207)	245
Net current period other comprehensive (income) loss	(1,207)	245
Balance as of the end of the fiscal period	3,899	5,106	4,861
Cash Flow Derivative Instruments
Components and activity of accumulated other comprehensive loss
Balance as of the beginning of the fiscal period	4,648	(3,837)
Other comprehensive (income) loss before reclassifications	(12,830)	14,159
Amounts reclassified from AOCL	10,744	(5,674)
Net current period other comprehensive (income) loss	(2,086)	8,485
Balance as of the end of the fiscal period	$ 2,562	$ 4,648	$ (3,837)

- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 852
-SubTopic 10
-Section 55
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=84165509&loc=d3e56426-112766

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 4.E)
-URI http://asc.fasb.org/extlink&oid=122038336&loc=d3e74512-122707

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(31))
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(29))
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(30))
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123596393&loc=d3e14064-108612

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

+ Details

Commitments and Contingencies (Details) - USD ($)		12 Months Ended
Commitments and Contingencies (Details) - USD ($)	Nov. 19, 2020	Oct. 31, 2021	Oct. 31, 2020
Purchase Commitments
Amount of noncancelable purchase commitments		$ 57,100,000
Red Iron And TCFCFC
Customer Financing
Repurchase commitment, maximum amount		7,500,000
Briggs & Stratton Power Products Groups, LLC
Litigation Settlement
Gain (loss) related to litigation settlement	$ 33,650,000
Wholesale Financing
Customer Financing
Receivables purchased by third party financing company from the company		460,500,000	$ 410,700,000
Receivables financed by third party financing company, excluding Red Iron, outstanding		151,500,000	137,600,000
Maximum amount of contingent liability to repurchase inventory related receivables under limited inventory repurchase agreements		96,800,000	128,100,000
End-User Financing
Customer Financing
Contingent liabilities for residual value or credit collection risk		0
End-User Financing \| Maximum
Customer Financing
Exposure for credit collection		$ 11,400,000	$ 12,500,000

Leases - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
Leases - Narrative (Details) - USD ($) $ in Millions	Oct. 31, 2019	Oct. 31, 2021
Lessee, Lease, Description [Line Items]
Operating leases, rent expense	$ 34.1
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

Leases - Lease Expense Incurred (Details) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2021	Oct. 31, 2020
Leases [Abstract]
Operating lease expense	$ 20,361	$ 19,637
Short-term lease expense	2,953	2,949
Variable lease expense	97	134
Total lease expense	$ 23,411	$ 22,720

Leases - Supplemental Cash Flow and Other Lease Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2021	Oct. 31, 2020
Leases [Abstract]
Operating cash flows for amounts included in the measurement of lease liabilities	$ 18,877	$ 17,762
Right-of-use assets obtained in exchange for lease obligations	$ 5,390	$ 22,667

Leases - Summary of Other Lease Information (Details)	Oct. 31, 2021	Oct. 31, 2020
Leases [Abstract]
Weighted-average remaining lease term of operating leases in years	6 years 7 months 6 days	7 years 1 month 6 days
Weighted-average discount rate of operating leases	2.71%	2.79%

Leases - Schedule of Future Minimum Operating Lease Payments (Details) $ in Thousands	Oct. 31, 2021 USD ($)
ASC Topic 842 Leases
2022	$ 16,833
2023	13,568
2024	12,042
2025	10,446
2026	5,408
Thereafter	18,239
Total future minimum operating lease payments	76,536
Less: imputed interest	6,501
Present value of operating lease liabilities	$ 70,035

Derivative Instruments and Hedging Activities - Narrative (Details) $ in Millions	12 Months Ended
	Oct. 31, 2021 USD ($)
Summary of cash flow hedge activity
Maximum time limit for cash flow hedge	2 years
Cash flow hedge effectiveness testing, grace period	2 months
Losses from AOCL to earnings	$ 4.4
Forward currency contracts
Summary of cash flow hedge activity
Derivative, notional amount	$ 266.0

Derivative Instruments and Hedging Activities - Fair Value of Derivatives (Details) - USD ($) $ in Thousands	Oct. 31, 2021	Oct. 31, 2020
Fair value of derivatives
Asset derivatives	$ 322	$ 933
Liability derivatives	2,132	2,484
Forward currency contracts
Fair value of derivatives
Asset derivatives	322	933
Liability derivatives	2,132	2,484
Forward currency contracts \| Derivatives Designated as Hedging Instruments \| Prepaid expenses and other current assets
Fair value of derivatives
Asset derivatives	189	802
Forward currency contracts \| Derivatives Designated as Hedging Instruments \| Accrued liabilities
Fair value of derivatives
Liability derivatives	1,260	2,687
Forward currency contracts \| Derivatives Not Designated as Hedging Instruments \| Prepaid expenses and other current assets
Fair value of derivatives
Asset derivatives	133	131
Forward currency contracts \| Derivatives Not Designated as Hedging Instruments \| Accrued liabilities
Fair value of derivatives
Liability derivatives	$ 872	$ (203)

Derivative Instruments and Hedging Activities - Effects of Master Netting Arrangements (Details) - USD ($) $ in Thousands	Oct. 31, 2021	Oct. 31, 2020
Derivative assets:
Net amount of derivative assets	$ 322	$ 933
Derivative liabilities:
Net amount of derivative liabilities	(2,132)	(2,484)
Forward currency contracts
Derivative assets:
Gross amount of derivative assets	423	1,139
Derivative liabilities offsetting derivative assets	(101)	(206)
Net amount of derivative assets	322	933
Derivative liabilities:
Gross amount of derivative liabilities	(4,853)	(3,233)
Derivative assets offsetting derivative liabilities	2,721	749
Net amount of derivative liabilities	$ (2,132)	$ (2,484)

Derivative Instruments and Hedging Activities - Impacts and Location of Amounts Reclassified From AOCL (Details) - Cash Flow Hedging - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2021	Oct. 31, 2020
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Reclassified from AOCL into Income	$ (10,744)	$ 5,674
Gain (Loss) Recognized in OCI on Derivatives	2,086	(8,485)
Forward currency contracts \| Net sales
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Reclassified from AOCL into Income	(10,883)	5,023
Gain (Loss) Recognized in OCI on Derivatives	2,820	(8,232)
Forward currency contracts \| Cost of sales
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Reclassified from AOCL into Income	139	651
Gain (Loss) Recognized in OCI on Derivatives	$ (734)	$ (253)

Derivative Instruments and Hedging Activities - Impact and Location of Derivative Instruments on Consolidated Statements of Earnings (Details) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2021	Oct. 31, 2020	Oct. 31, 2019
Derivative Instruments and Hedging Activities
Net sales	$ 3,959,584	$ 3,378,810	$ 3,138,084
Cost of sales	(2,621,092)	(2,189,036)	$ (2,090,121)
Cash Flow Hedging
Derivative Instruments and Hedging Activities
Amount of gain reclassified from AOCL into earnings	(10,744)	5,674
Cash Flow Hedging \| Net sales
Derivative Instruments and Hedging Activities
Net sales	3,959,584	3,378,810
Cash Flow Hedging \| Net sales \| Forward currency contracts
Derivative Instruments and Hedging Activities
Amount of gain reclassified from AOCL into earnings	(10,883)	5,023
Gain on components excluded from effectiveness testing recognized in earnings based on changes in fair value	1,427	3,229
Cash Flow Hedging \| Cost of sales
Derivative Instruments and Hedging Activities
Cost of sales	(2,621,092)	(2,189,036)
Cash Flow Hedging \| Cost of sales \| Forward currency contracts
Derivative Instruments and Hedging Activities
Amount of gain reclassified from AOCL into earnings	139	651
Gain on components excluded from effectiveness testing recognized in earnings based on changes in fair value	614	313
Derivatives Not Designated as Hedging Instruments
Derivative Instruments and Hedging Activities
Total loss on derivatives not designated as cash flow hedging instruments	(4,566)	(5,792)
Derivatives Not Designated as Hedging Instruments \| Other income, net \| Forward currency contracts
Derivative Instruments and Hedging Activities
Total loss on derivatives not designated as cash flow hedging instruments	$ (4,566)	$ (5,792)

Fair Value Measurements - Recurring Fair Value Measurements (Details) - USD ($) $ in Thousands	Oct. 31, 2021	Oct. 31, 2020
Assets:
Forward currency contracts	$ 322	$ 933
Liabilities:
Forward currency contracts	2,132	2,484
Forward currency contracts
Assets:
Forward currency contracts	322	933
Liabilities:
Forward currency contracts	2,132	2,484
Measured on a recurring basis
Assets:
Total assets	322	933
Liabilities:
Total liabilities	2,132	2,484
Measured on a recurring basis \| Forward currency contracts
Assets:
Forward currency contracts	322	933
Liabilities:
Forward currency contracts	2,132	2,484
Measured on a recurring basis \| Level 1
Assets:
Total assets	0	0
Liabilities:
Total liabilities	0	0
Measured on a recurring basis \| Level 1 \| Forward currency contracts
Assets:
Forward currency contracts	0	0
Liabilities:
Forward currency contracts	0	0
Measured on a recurring basis \| Level 2
Assets:
Total assets	322	933
Liabilities:
Total liabilities	2,132	2,484
Measured on a recurring basis \| Level 2 \| Forward currency contracts
Assets:
Forward currency contracts	322	933
Liabilities:
Forward currency contracts	2,132	2,484
Measured on a recurring basis \| Level 3
Assets:
Total assets	0	0
Liabilities:
Total liabilities	0	0
Measured on a recurring basis \| Level 3 \| Forward currency contracts
Assets:
Forward currency contracts	0	0
Liabilities:
Forward currency contracts	$ 0	$ 0

Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions	Oct. 31, 2021	Oct. 31, 2020
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt bearing fixed interest	$ 424.0	$ 424.0
Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	$ 517.9	$ 508.2

Employee Retirement Plans (Details) - USD ($) $ in Millions	12 Months Ended
Employee Retirement Plans (Details) - USD ($) $ in Millions	Oct. 31, 2021	Oct. 31, 2020	Oct. 31, 2019
Retirement Benefits [Abstract]
Plan expenses	$ 28.5	$ 17.4	$ 23.4
Projected benefit obligation	35.1	33.4
Fair value of the plan assets	33.0	29.5
Underfunded status of plans	2.1	3.9
Net income recognized	$ 0.1	$ 0.2	$ 6.6

- Definition

Amount of asset segregated and restricted to provide benefit under defined benefit plan. Asset includes, but is not limited to, stock, bond, other investment, earning from investment, and contribution by employer and employee.

+ References + Details