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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC  20549
 FORM 10-Q
 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended July 31, 2022
OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____ to ____
 
Commission File No. 001-33866
 
TITAN MACHINERY INC.
(Exact name of registrant as specified in its charter)
Delaware 45-0357838
(State or Other Jurisdiction of
Incorporation or Organization)
 (IRS Employer
Identification No.)

644 East Beaton Drive
West Fargo, ND 58078-2648
(Address of Principal Executive Offices)
 
Registrant’s telephone number (701) 356-0130

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.00001 par value per shareTITNThe Nasdaq Stock Market LLC
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes     No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer Accelerated filer ☒
Non-accelerated filerSmaller reporting company 
Emerging growth company 

    If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes     No  

As of August 31, 2022, 22,567,932 shares of Common Stock, $0.00001 par value, of the registrant were outstanding.


TITAN MACHINERY INC.
QUARTERLY REPORT ON FORM 10-Q
 
Table of Contents
 Page No.
PART I.
FINANCIAL INFORMATION
ITEM 1.
FINANCIAL STATEMENTS
 Condensed Consolidated Balance Sheets
 Condensed Consolidated Statements of Operations
 Condensed Consolidated Statements of Comprehensive Income
 Condensed Consolidated Statements of Stockholders' Equity
 Condensed Consolidated Statements of Cash Flows
 Notes to Condensed Consolidated Financial Statements
ITEM 2.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
ITEM 3.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
ITEM 4.
CONTROLS AND PROCEDURES
PART II.
OTHER INFORMATION
ITEM 1.
LEGAL PROCEEDINGS
ITEM 1A.
RISK FACTORS
ITEM 2.
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
ITEM 3.
DEFAULTS UPON SENIOR SECURITIES
ITEM 4.
MINE SAFETY DISCLOSURES
ITEM 5.
OTHER INFORMATION
ITEM 6.
EXHIBITS
Exhibit Index
Signatures

2

PART I. FINANCIAL INFORMATION
 
ITEM 1.                FINANCIAL STATEMENTS
 
TITAN MACHINERY INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands, except per share data)
July 31, 2022January 31, 2022
Assets
Current Assets
Cash$142,057 $146,149 
Receivables, net of allowance for expected credit losses96,369 94,287 
Inventories, net 556,383 421,758 
Prepaid expenses and other17,736 28,135 
Total current assets812,545 690,329 
Noncurrent Assets
Property and equipment, net of accumulated depreciation 188,964 178,243 
Operating lease assets51,888 56,150 
Deferred income taxes2,239 1,328 
Goodwill9,535 8,952 
Intangible assets, net of accumulated amortization11,480 10,624 
Other1,220 1,041 
Total noncurrent assets265,326 256,338 
Total Assets$1,077,871 $946,667 
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable$28,344 $25,644 
Floorplan payable 274,244 135,415 
Current maturities of long-term debt6,650 5,876 
Current operating lease liabilities9,465 9,601 
Deferred revenue91,819 134,146 
Accrued expenses and other42,856 59,339 
Income taxes payable6,289 4,700 
Total current liabilities459,667 374,721 
Long-Term Liabilities
Long-term debt, less current maturities 86,500 74,772 
Operating lease liabilities50,998 55,595 
Deferred income taxes1,991 2,006 
Other long-term liabilities4,438 4,374 
Total long-term liabilities143,927 136,747 
Commitments and Contingencies (Note 15)
Stockholders' Equity
Common stock, par value $.00001 per share, 45,000 shares authorized; 22,695 shares issued and outstanding at July 31, 2022; 22,588 shares issued and outstanding at January 31, 2022
  
Additional paid-in-capital255,188 254,455 
Retained earnings225,415 182,916 
Accumulated other comprehensive loss(6,326)(2,172)
Total stockholders' equity 474,277 435,199 
Total Liabilities and Stockholders' Equity$1,077,871 $946,667 
 See Notes to Condensed Consolidated Financial Statements
3

TITAN MACHINERY INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share data)
 Three Months Ended July 31,Six Months Ended July 31,
 2022202120222021
Revenue
Equipment$375,216 $272,733 $731,582 $548,713 
Parts77,693 65,317 146,255 127,942 
Service33,365 29,676 62,887 57,379 
Rental and other10,269 9,904 16,825 16,300 
Total Revenue496,543 377,630 957,549 750,334 
Cost of Revenue
Equipment323,988 240,332 634,222 484,008 
Parts52,706 46,089 100,015 90,529 
Service11,072 9,771 21,832 19,065 
Rental and other6,078 6,420 10,087 10,737 
Total Cost of Revenue393,844 302,612 766,156 604,339 
Gross Profit102,699 75,018 191,393 145,995 
Operating Expenses68,828 57,074 132,980 113,516 
Impairment of Intangible and Long-Lived Assets 1,498  1,498 
Income from Operations33,871 16,446 58,413 30,981 
Other Income (Expense)
Interest and other income873 654 1,365 1,320 
Floorplan interest expense(245)(350)(499)(768)
Other interest expense(1,349)(1,118)(2,545)(2,222)
Income Before Income Taxes33,150 15,632 56,734 29,311 
Provision for Income Taxes8,191 4,383 14,235 7,515 
Net Income$24,959 $11,249 $42,499 $21,796 
Earnings per Share:
Basic$1.10 $0.50 $1.88 $0.97 
Diluted$1.10 $0.50 $1.88 $0.97 
Weighted Average Common Shares:
Basic22,387 22,261 22,350 22,209 
Diluted22,392 22,276 22,357 22,220 
 
See Notes to Condensed Consolidated Financial Statements

4

TITAN MACHINERY INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
(in thousands)
 
 Three Months Ended July 31,Six Months Ended July 31,
 2022202120222021
Net Income$24,959 $11,249 $42,499 $21,796 
Other Comprehensive Income (Loss)
Foreign currency translation adjustments(2,963)937 (4,153)(1,441)
Comprehensive Income$21,996 $12,186 $38,346 $20,355 
 
See Notes to Condensed Consolidated Financial Statements

5

TITAN MACHINERY INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED)
(in thousands)
Common StockAdditional Paid-In CapitalRetained EarningsAccumulated Other Comprehensive Income (Loss)Total Stockholders' Equity
Shares OutstandingAmount
BALANCE, January 31, 202122,553 $— $252,913 $116,869 $1,499 $371,281 
Common stock issued on grant of restricted stock and exercise of stock options, net of restricted stock forfeitures and restricted stock withheld for employee withholding tax(33)— (975)— — (975)
Stock-based compensation expense— — 609 — — 609 
Net Income— — — 10,547 — 10,547 
Other comprehensive loss— — — — (2,379)(2,379)
BALANCE, April 30, 202122,520 $— $252,547 $127,416 $(880)$379,083 
Common stock issued on grant of restricted stock and exercise of stock options, net of restricted stock forfeitures and restricted stock withheld for employee withholding tax76 — (2)— — (2)
Stock-based compensation expense— — 584 — — 584 
Net Income— — — 11,249 — 11,249 
Other comprehensive income— — — — 938 938 
BALANCE, July 31, 202122,596 — 253,129 138,665 58 391,852 
Common StockAdditional Paid-In CapitalRetained EarningsAccumulated Other Comprehensive Income (Loss)Total Stockholders' Equity
Shares OutstandingAmount
BALANCE, January 31, 202222,588 $— $254,455 $182,916 $(2,172)$435,199 
Common stock issued on grant of restricted stock, net of restricted stock forfeitures and restricted stock withheld for employee withholding tax(19)— (685)— — (685)
Stock-based compensation expense— — 620 — — 620 
Net income— — — 17,540 — 17,540 
Other comprehensive loss— — — — (1,191)(1,191)
BALANCE, April 30, 202222,569 $— $254,390 $200,456 $(3,363)$451,483 
Common stock issued on grant of restricted stock, net of restricted stock forfeitures and restricted stock withheld for employee withholding tax126 — (5)— — (5)
Stock-based compensation expense— — 803 — — 803 
Net income— — — 24,959 — 24,959 
Other comprehensive income— — — — (2,963)(2,963)
BALANCE, July 31, 202222,695 — 255,188 225,415 (6,326)474,277 
See Notes to Condensed Consolidated Financial Statements
6


TITAN MACHINERY INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands)
 Six Months Ended July 31,
 20222021
Operating Activities
Net income$42,499 $21,796 
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization10,987 10,602 
Impairment— 1,498 
Deferred income taxes(1,005)(1,645)
Stock-based compensation expense1,423 1,193 
Noncash interest expense121 110 
Other, net4,583 5,235 
Changes in assets and liabilities
Receivables, prepaid expenses and other assets5,444 (12,384)
Inventories(137,708)(17,166)
Manufacturer floorplan payable105,415 56,436 
Deferred Revenue(43,530)(21,063)
Accounts payable, accrued expenses and other and other long-term liabilities(9,182)(16,051)
Net Cash Provided by (Used for) Operating Activities(20,953)28,561 
Investing Activities
Rental fleet purchases(6,020)(8,946)
Property and equipment purchases (excluding rental fleet)(8,487)(10,888)
Proceeds from sale of property and equipment1,628 420 
Acquisition consideration, net of cash acquired(7,675) 
Other, net(182)12 
Net Cash Used for Investing Activities(20,736)(19,402)
Financing Activities
Net change in non-manufacturer floorplan payable35,716 (22,731)
Proceeds from long-term debt borrowings8,415 6,451 
Principal payments on long-term debt and finance leases(3,879)(5,117)
Payment of debt issuance costs  
Other, net(689)(976)
Net Cash Provided by (Used for) Financing Activities39,563 (22,373)
Effect of Exchange Rate Changes on Cash(1,966)(192)
Net Change in Cash(4,092)(13,406)
Cash at Beginning of Period146,149 78,990 
Cash at End of Period$142,057 $65,584 
Supplemental Disclosures of Cash Flow Information
Cash paid during the period
Income taxes, net of refunds$11,116 $17,378 
Interest$2,851 $2,797 
Supplemental Disclosures of Noncash Investing and Financing Activities
Net property and equipment financed with long-term debt, finance leases, accounts payable and accrued liabilities$2,667 $9,014 
Long-term debt to acquire finance leases$6,776 $7,454 
Net transfer of assets from (to) property and equipment to (from) inventories$(2,849)$1,269 

See Notes to Condensed Consolidated Financial Statements
7

TITAN MACHINERY INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
 
NOTE 1 - BUSINESS ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
    The unaudited consolidated financial statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim reporting. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements. In the opinion of management, all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation have been included. The quarterly operating results for Titan Machinery Inc. (the “Company”) are subject to fluctuation due to varying weather patterns, which may impact the timing and amount of equipment purchases, rentals, and after-sales parts and service purchases by the Company’s agriculture, construction and international customers. Therefore, operating results for the six-months ended July 31, 2022 are not necessarily indicative of the results that may be expected for the fiscal year ending January 31, 2023. The information contained in the consolidated balance sheet as of January 31, 2022 was derived from the audited consolidated financial statements of the Company for the fiscal year then ended. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2022 as filed with the SEC.
Nature of Business
    The Company is engaged in the retail sale, service and rental of agricultural and construction machinery through its stores in the United States and Europe. The Company’s North American stores are located in Colorado, Idaho, Iowa, Kansas, Minnesota, Missouri, Montana, Nebraska, North Dakota, South Dakota, Washington, Wisconsin, and Wyoming and its European stores are located in Bulgaria, Germany, Romania, and Ukraine. 
Russia/Ukraine Geopolitical Conflict
In February, 2022, the ongoing Russia/Ukraine conflict significantly intensified, and the sustained conflict and disruption in the region is ongoing. Titan Machinery Ukraine, LLC ("Titan Machinery Ukraine"), the Company's wholly owned Ukrainian subsidiary, has ten locations throughout Ukraine primarily in western and central Ukraine. The conflict has caused disruptions in our Ukrainian operations, with our revenues for the six-months ended July 31, 2022 down 37.7% from the prior year period. These disruptions have not been material to the Company's consolidated financial statements. However, if the conflict intensifies in western and central Ukraine, it could significantly increase the adverse effect on the Company in future periods.
Estimates
    The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates, particularly related to realization of inventory, impairment of long-lived assets, goodwill, or indefinite lived intangible assets, collectability of receivables, and income taxes.
Principles of Consolidation
    The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All material accounts, transactions and profits between the consolidated companies have been eliminated in consolidation.

8

NOTE 2 - EARNINGS PER SHARE
    The following table sets forth the calculation of basic and diluted earnings per share (EPS):
 Three Months Ended July 31,Six Months Ended July 31,
 2022202120222021
 (in thousands, except per share data)
Numerator:
Net income$24,959 $11,249 $42,499 $21,796 
Allocation to participating securities(291)(156)(502)(334)
Net income attributable to Titan Machinery Inc. common stockholders$24,668 $11,093 $41,997 $21,462 
Denominator:
Basic weighted-average common shares outstanding22,387 22,261 22,350 22,209 
Plus: incremental shares from vesting of restricted stock units5 15 7 11 
Diluted weighted-average common shares outstanding22,392 22,276 22,357 22,220 
Earnings Per Share:
Basic$1.10 $0.50 $1.88 $0.97 
Diluted$1.10 $0.50 $1.88 $0.97 

NOTE 3 - REVENUE
    Revenues are recognized when control of the promised goods or services is transferred to the customer, in an amount that reflects the consideration we expect to collect in exchange for those goods or services. Sales, value added and other taxes collected from our customers concurrent with our revenue activities are excluded from revenue.
    The following tables present our revenue disaggregated by revenue source and segment:
Three Months Ended July 31, 2022Six Months Ended July 31, 2022
AgricultureConstructionInternationalTotalAgricultureConstructionInternationalTotal
(in thousands)(in thousands)
Equipment$270,472 $43,184 $61,560 $375,216 $521,565 $87,002 $123,015 $731,582 
Parts52,548 11,816 13,329 77,693 97,054 23,879 25,322 146,255 
Service24,730 6,302 2,333 33,365 46,683 12,125 4,079 62,887 
Other880 500 246 1,626 1,679 803 451 2,933 
Revenue from contracts with customers
348,630 61,802 77,468 487,900 666,981 123,809 152,867 943,657 
Rental326 8,220 97 8,643 522 13,177 193 13,892 
Total revenues$348,956 $70,022 $77,565 $496,543 $667,503 $136,986 $153,060 $957,549 
Three Months Ended July 31, 2021Six Months Ended July 31, 2021
AgricultureConstructionInternationalTotalAgricultureConstructionInternationalTotal
(in thousands)(in thousands)
Equipment$156,408 $54,020 $62,305 $272,733 $325,664 $98,832 $124,217 $548,713 
Parts40,742 11,928 12,647 65,317 80,425 24,036 23,481 127,942 
Service21,150 6,585 1,941 29,676 40,904 12,954 3,521 57,379 
Other758 490 188 1,436 1,478 855 281 2,614 
Revenue from contracts with customers
219,058 73,023 77,081 369,162 448,471 136,677 151,500 736,648 
Rental306 7,920 242 8,468 444 12,873 369 13,686 
Total revenues$219,364 $80,943 $77,323 $377,630 $448,915 $149,550 $151,869 $750,334 
9

Unbilled Receivables and Deferred Revenue
    Unbilled receivables from contracts with customers amounted to $24.4 million and $17.1 million as of July 31, 2022 and January 31, 2022, respectively. This increase in unbilled receivables is primarily the result of a seasonal increase in the volume of our service transactions in which we recognize revenue as our work is performed and prior to customer invoicing.
    Deferred revenue from contracts with customers amounted to $90.7 million and $132.2 million as of July 31, 2022 and January 31, 2022, respectively. Our deferred revenue most often increases in the fourth quarter of each fiscal year due to a higher level of customer down payments or prepayments and longer time periods between customer payment and delivery of the equipment asset, and the related recognition of equipment revenue, prior to its seasonal use. During the six months ended July 31, 2022 and 2021, the Company recognized $105.1 million and $50.8 million, respectively, of revenue that was included in the deferred revenue balance as of January 31, 2022 and January 31, 2021, respectively. No material amount of revenue was recognized during the six months ended July 31, 2022 or 2021 from performance obligations satisfied in previous periods.
    The Company has elected as a practical expedient to not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of service of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for parts installed and services performed. The contracts for which the practical expedient has been applied include (i) equipment revenue transactions, which do not have a stated contractual term but are short-term in nature, and (ii) service revenue transactions, which also do not have a stated contractual term but are generally completed within 30 days. For such service contracts, we recognize revenue at the time we perform the work, in the amount for which we have the right to invoice for services completed to date.
NOTE 4 - RECEIVABLES
    The Company provides an allowance for expected credit losses on its nonrental receivables. To measure the expected credit losses, receivables have been grouped based on shared credit risk characteristics as shown in the table below.
    Trade and unbilled receivables from contracts with customers have credit risk and the allowance is determined by applying expected credit loss percentages to aging categories based on historical experience that are updated each quarter. The rates may also be adjusted to the extent future events are expected to differ from historical results. In addition, the allowance is adjusted based on information obtained by continued monitoring of individual customer credit.
    Trade receivables from finance companies, other receivables due from manufacturers, and other receivables have not historically resulted in any credit losses to the Company. These receivables are short-term in nature and deemed to be of good credit quality and have no need for any allowance for expected credit losses. Management continually monitors these receivables and should information be obtained that identifies potential credit risk, an adjustment to the allowance would be made if deemed appropriate.
    Trade and unbilled receivables from rental contracts are primarily in the United States and are specifically excluded from the accounting guidance in determining an allowance for expected losses. The Company provides an allowance for these receivables based on historical experience and using credit information obtained from continued monitoring of customer accounts.
10

July 31, 2022January 31, 2022
(in thousands)
Trade and unbilled receivables from contracts with customers
Trade receivables due from customers$37,271 $30,041 
Unbilled receivables24,435 17,129 
Less allowance for expected credit losses2,722 1,979 
58,984 45,191 
Trade receivables due from finance companies15,096 17,937 
Trade and unbilled receivables from rental contracts
Trade receivables3,832 3,055 
Unbilled receivables1,057 538 
Less allowance for expected credit losses375 469 
4,514 3,124 
Other receivables
Due from manufacturers14,556 22,979 
Other3,219 5,056 
17,775 28,035 
Receivables, net of allowance for expected credit losses$96,369 $94,287 
11

    Following is a summary of allowance for credit losses on trade and unbilled accounts receivable by segment:
AgricultureConstructionInternationalTotal
(in thousands)
Balance at January 31, 2022$244 $193 $1,542 $1,979 
Current expected credit loss provision79 35 846 960 
Write-offs charged against allowance30 97 61 188 
Credit loss recoveries collected16 4  20 
Foreign exchange impact— — (49)(49)
Balance at July 31, 2022$309 $135 $2,278 $2,722 
AgricultureConstructionInternationalTotal
(in thousands)
Balance at January 31, 2021$228 $1,074 $1,690 $2,992 
Current expected credit loss provision114 118 (227)5 
Write-offs charged against allowance50 147 60 257 
Credit loss recoveries collected7 5  12 
Foreign exchange impact— — (31)(31)
Balance at July 31, 2021$299 $1,050 $1,372 $2,721 
    The increase in the credit loss provision in the International segment, during the six months ended July 31, 2022, was driven by a $0.7 million bad debt provision placed on the accounts receivables due from customers of Titan Machinery Ukraine, primarily due to the ongoing Russia-Ukraine conflict.
The following table presents impairment losses (recoveries) on receivables arising from sales contracts with customers and receivables arising from rental contracts:
Three Months Ended July 31,Six Months Ended July 31,
2022202120222021
(in thousands)
Impairment losses (recoveries) on:
Receivables from sales contracts$186 $222 $999 $320 
Receivables from rental contracts43 3 32 (30)
$229 $225 $1,031 $290 
NOTE 5 - INVENTORIES
July 31, 2022January 31, 2022
 (in thousands)
New equipment$325,641 $195,775 
Used equipment118,757 128,047 
Parts and attachments109,061 95,890 
Work in process2,924 2,046 
$556,383 $421,758 

12

NOTE 6 - PROPERTY AND EQUIPMENT
July 31, 2022January 31, 2022
 (in thousands)
Rental fleet equipment$73,014 $65,117 
Machinery and equipment23,769 22,819 
Vehicles62,251 58,650 
Furniture and fixtures51,400 50,228 
Land, buildings, and leasehold improvements129,102 123,323 
339,536 320,137 
Less accumulated depreciation150,572 141,894 
$188,964 $178,243 
    The Company includes depreciation expense related to its rental fleet and its trucking fleet, for hauling equipment, in Cost of Revenue, which was $2.0 million and $2.1 million for the three months ended July 31, 2022 and 2021, and $3.5 million and $3.8 million for the six months ended July 31, 2022 and 2021, respectively. All other depreciation expense is included in Operating Expenses, which was $3.6 million and $3.0 million for the three months ended July 31, 2022 and 2021 and $7.1 million and $6.0 million for the six months ended July 31, 2022 and 2021, respectively.
    The Company reviews its long-lived assets for potential impairment whenever events or circumstances indicate that the carrying value of the long-lived asset (or asset group) may not be recoverable. During the three months ended July 31, 2022, the Company identified two such asset groups in the Agriculture segment, and performed an impairment test, and concluded that no impairment was present, thus the Company did not recognize any impairment for the three and six months ended July 31, 2022. The Company did recognize impairment of long-lived assets of $0.4 million in its International segment for the three and six months ended July 31, 2021.
NOTE 7 - INTANGIBLE ASSETS AND GOODWILL
Indefinite-Lived Intangible Assets
    The Company's indefinite-lived intangible assets consist of distribution rights assets. The following is a summary of the changes in indefinite-lived intangible assets, by segment, for the six months ended July 31, 2022:
AgricultureConstructionTotal
(in thousands)
January 31, 2022$10,136 $72 $10,208 
Arising from business combinations842 — 842 
July 31, 2022$10,978 $72 $11,050 
Goodwill
    The following presents changes in the carrying amount of goodwill, by segment, for the six months ended July 31, 2022:
AgricultureTotal
(in thousands)
January 31, 2022$8,952 $8,952 
Arising from business combinations583 583 
July 31, 2022$9,535 $9,535 



13

NOTE 8 - FLOORPLAN PAYABLE/LINES OF CREDIT
    As of July 31, 2022, the Company had floorplan lines of credit totaling $743.0 million, which is primarily comprised of three floorplan lines of credit: (i) a $450.0 million credit facility with CNH Industrial, (ii) a $185.0 million line of credit under the Third Amended and Restated Credit Agreement (the "Bank Syndicate Agreement"), and (iii) a $50.0 million credit facility with DLL Finance LLC. Additionally, the Company amended its CNH Industrial floorplan line of credit as of August 1, 2022, increasing the total available domestic limit to $410 million and overall limit to $500 million.
    The Company's outstanding balances of floorplan lines of credit as of July 31, 2022 and January 31, 2022, consisted of the following:
July 31, 2022January 31, 2022
(in thousands)
CNH Industrial$177,983 $94,054 
Bank Syndicate Agreement Floorplan Loan41,000 — 
DLL Finance9,187 8,558 
Other outstanding balances with manufacturers and non-manufacturers46,074 32,803 
$274,244 $135,415 
    In anticipation of closing the Heartland acquisition on August 1, 2022, the Company drew $41.0 million on its Bank Syndicate Floorplan Loan, which had a variable interest rate of 3.21% as of July 31, 2022. Generally, all U.S. CNH Industrial and DLL Finance amounts outstanding are non-interest bearing. As of July 31, 2022, foreign floorplan payables carried v