Management Actions

9 Months Ended

Aug. 02, 2019

Discontinued Operations and Disposal Groups [Abstract]

Management Actions

Management Actions

On August 1, 2019, the company announced a new underground construction business strategy that includes a plan to wind down its Toro-branded large horizontal directional drill and riding trencher product categories within its Professional segment product portfolio ("Toro underground wind down"). The company expects to incur total pretax charges of approximately $10.0 million to $13.0 million related to the Toro underground wind down. For the three and nine month periods ended August 2, 2019, the company recorded $7.2 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 Condensed Consolidated Statements of Earnings as a result of the Toro underground wind down. Additionally, the company recorded $1.9 million of pre-tax charges related to anticipated inventory retail support activities within net sales in the Condensed Consolidated Statements of Earnings for the three and nine month periods ended August 2, 2019 and has recorded a corresponding liability related to the anticipated inventory retail support activities within accrued liabilities in the Condensed Consolidated Balance Sheets as of August 2, 2019. The remainder of the estimated pre-tax charges are anticipated to be primarily comprised of costs related to the write-down of future component part inventory purchases to finalize assembly of the company's remaining Toro-branded large horizontal directional drill and riding trencher inventory. Substantially all costs related to the Toro underground wind down are expected to be incurred by the end of fiscal 2020.