Revenue (Notes)

9 Months Ended

Oct. 31, 2018

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer [Text Block]

REVENUE

Nature of goods and services

The Company is comprised of three unique operating divisions, classified into reportable segments: Applied Technology (ATD), Engineered Films (EFD), and Aerostar (AERO). The following is a description of principal activities, separated by reportable segment, from which the Company generates revenue. Note that service revenues are not material and are not separately disclosed. Furthermore, the Company acts as a principal in transactions and recognizes revenue on a gross basis for which we are entitled from our customers.

Applied Technology

Applied Technology designs, manufactures, sells, and services innovative precision agriculture products and information management tools, which are collectively referred to as precision agriculture equipment, that help growers reduce costs, more precisely control inputs, and improve crop yields for the global agriculture market. Customers can purchase precision agriculture equipment individually or in large quantities. For purchases made in large quantities, the Company accounts for each piece of equipment separately, as each is a distinct performance obligation from which the customer derives benefit. The stand-alone selling prices are determined based on the prices at which the Company charges other customers for similar products in similar circumstances. Kits or bundles, which can consist of various pieces of equipment, are shipped together and therefore allocation

of transaction price does not impact timing of revenue recognition. In the normal course of business the customer agrees to a stated price that does not vary upon purchase and revenue is recognized when control has transferred to the customer.

Engineered Films

Engineered Films manufactures high performance plastic films and sheeting for geomembrane, agricultural, construction, and industrial applications. Engineered Films' ability to develop value-added innovative products is expanded by its fabrication, conversion, and installation capabilities. Plastic film and sheeting can be purchased separately or together with installation services. The majority of transactions within Engineered Films are considered non-customized product-only sales. The Company accounts for each product separately, as each is a distinct performance obligation from which the customer derives benefit. The stand-alone selling prices are determined based on the prices at which the Company charges other customers for similar products in similar circumstances. In the normal course of business the customer agrees to a stated price that does not vary upon purchase and revenue is recognized when control has transferred to the customer.

The remaining transactions within Engineered Films are related to installation and/or customized product sales. Installation revenues are recognized over time using the cost incurred input method (i.e., costs incurred to date relative to total estimated costs at completion) because of continuous transfer of control to our customers. For customized product-only sales, the Company recognizes revenue over time by applying an output method, such as units delivered, to measure progress.

Aerostar

Aerostar serves the aerospace/defense and stratospheric balloon markets. Aerostar designs and manufactures proprietary products including high-altitude (stratospheric) balloon systems, and tethered aerostats, which are collectively referred to as lighter-than-air products, and offers radar processing systems and related services. These products can be integrated with additional third-party sensors to provide research, communications, and situational awareness capabilities to governmental and commercial customers. Aerostar pursues product and support services contracts with agencies and instrumentalities of the U.S. government. Product sales to customers for which we do not continuously transfer control are recognized based on a point-in-time. Contracts with customers which include elements of service, and are considered to be single performance obligations, are recognized over time. The stand-alone selling prices are determined based on the prices at which the Company charges other customers for similar products or services in similar circumstances. In the normal course of business the customer agrees to a stated price that does not vary upon purchase. For revenues recognized at a point-in-time, the Company recognizes revenue when control has transferred to the customer. Certain lighter-than-air contracts are recognized over time using the cost incurred input method. The remaining transactions are recognized over time applying an output method, such as units delivered, to measure progress.

Disaggregation of Revenues

In the following table, revenue is disaggregated by major product category and geography as we believe these categories best depict how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. The table also includes a reconciliation of the disaggregated revenue with reportable segments.

	Revenue by Product Category
	Three Months Ended October 31, 2018											Three Months Ended October 31, 2017
	ATD		EFD		AERO		ELIM(a)			Total		ATD		EFD		AERO		ELIM(a)			Total
Lighter-than-Air
Domestic	$	—	$	—	$	14,152	$	—		$	14,152	$	—	$	—	$	7,443	$	—		$	7,443
International	—		—		298		—			298		—		—		33		—			33
Plastic Films & Sheeting
Domestic	—		52,841		—		(177		)	52,664		—		62,421		—		(181		)	62,240
International	—		5,398		—		—			5,398		—		2,687		—		—			2,687
Precision Agriculture Equipment
Domestic	23,764		—		—		—			23,764		20,079		—		—		—			20,079
International	5,976		—		—		—			5,976		5,240		—		—		—			5,240
Other
Domestic	—		—		2,578		—			2,578		—		—		3,615		—			3,615
International	—		—		3		—			3		—		—		12		—			12
Totals	$	29,740	$	58,239	$	17,031	$	(177	)	$	104,833	$	25,319	$	65,108	$	11,103	$	(181	)	$	101,349
	Nine Months Ended October 31, 2018											Nine Months Ended October 31, 2017
	ATD		EFD		AERO		ELIM(a)			Total		ATD		EFD		AERO		ELIM(a)			Total
Lighter-than-Air
Domestic	$	—	$	—	$	31,899	$	—		$	31,899	$	—	$	—	$	19,109	$	—		$	19,109
International	—		—		834		—			834		—		—		87		—			87
Plastic Films & Sheeting
Domestic	—		163,059		—		(441		)	162,618		—		148,775		—		(508		)	148,267
International	—		14,047		—		—			14,047		—		8,916		—		—			8,916
Precision Agriculture Equipment
Domestic	76,881		—		—		—			76,881		71,079		—		—		—			71,079
International	23,651		—		—		—			23,651		23,154		—		—		—			23,154
Other
Domestic	—		—		8,698		—			8,698		—		—		10,828		—			10,828
International	—		—		18		—			18		—		—		54		—			54
Totals	$	100,532	$	177,106	$	41,449	$	(441	)	$	318,646	$	94,233	$	157,691	$	30,078	$	(508	)	$	281,494

^(a) Intersegment sales for both fiscal 2019 and 2018 were primarily sales from Engineered Films to Aerostar.

Contract Balances

Contract assets consist of unbilled receivables and retainage. Contract assets primarily relate to the Company’s rights to consideration for work completed but not billed at the reporting date, or retainage provisions on billings that have been issued. Contract assets are converted to receivables when the right to collect becomes unconditional.

Contract liabilities consist of customer advances and deferred revenue. Contract liabilities primarily relate to consideration received from customers prior to transferring goods or services to the customer.

The changes in our contract assets and liabilities were as follows:

	October 31, 2018		January 31, 2018		$ Change			% Change
Contract assets(a)	$	2,616	$	3,119	$	(503	)	(16.1	)%
Contract liabilities(b)	$	1,545	$	1,890	$	(345	)	(18.3	)%

^(a) Contract assets are reported in "Accounts receivable, net" in the Consolidated Balance Sheet.

^(b) Contract liabilities are reported in "Other current liabilities" in the Consolidated Balance Sheet.

During the nine months ended October 31, 2018, the Company’s contract assets decreased by $503 and contract liabilities decreased by $345, primarily as a result of the contract terms which include timing of customer payments, timing of invoicing, and progress made on open contracts. Due to the short-term nature of the Company’s contracts, substantially all of the contract assets that existed as of January 31, 2018 were converted to receivables and contract liabilities that existed as of January 31, 2018 were recognized as revenue during the first quarter of fiscal 2019.

Remaining performance obligations

As of October 31, 2018, the Company did not have any remaining performance obligations related to customer contracts that had an original expected duration of one year or more.