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Document and Entity Information	3 Months Ended
Document and Entity Information	Oct. 31, 2019 shares
Entity Information
Entity Registrant Name	Oil-Dri Corp of America
Entity Central Index Key	0000074046
Current Fiscal Year End Date	--07-31
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Document Type	10-Q
Document Period End Date	Oct. 31, 2019
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Amendment Flag	false
Common Stock
Entity Information
Entity Common Stock, Shares Outstanding	5,413,839
Common Class B
Entity Information
Entity Common Stock, Shares Outstanding	2,197,759

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Oct. 31, 2019	Jul. 31, 2019
Current Assets
Cash and cash equivalents	$ 19,260	$ 21,862
Accounts receivable, less allowance of $825 and $644 at October 31, 2019 and July 31, 2019, respectively	36,269	35,459
Inventories	23,803	24,163
Prepaid repairs expense	4,662	4,708
Prepaid expenses and other assets	1,551	3,084
Total Current Assets	85,545	89,276
Property, Plant and Equipment
Cost	251,370	249,834
Less accumulated depreciation and amortization	(161,164)	(159,036)
Total Property, Plant and Equipment, Net	90,206	90,798
Other Assets
Goodwill	9,262	9,262
Other intangibles, net of accumulated amortization of $371 and $299 at October 31, 2019 and July 31, 2019, respectively	1,551	1,599
Customer list, net of accumulated amortization of $6,444 and $6,297 at October 31, 2019 and July 31, 2019, respectively	1,341	1,488
Deferred income taxes	7,786	7,755
Operating lease right-of-use assets	8,967	0
Other	5,084	5,049
Total Other Assets	33,991	25,153
Total Assets	209,742	205,227
Current Liabilities
Current maturities of notes payable, net of unamortized debt issuance costs of $24 at October 31, 2019	3,059	3,083
Accounts payable	7,942	8,092
Dividends payable	1,766	1,761
Operating lease liabilities	1,603	0
Accrued expenses:
Salaries, wages and commissions	4,724	6,740
Trade promotions and advertising	1,198	1,588
Freight	1,818	2,635
Other	7,892	8,707
Total Current Liabilities	30,002	32,606
Noncurrent Liabilities
Notes payable, net of unamortized debt issuance costs of $31 at July 31, 2019	0	3,052
Deferred compensation	6,155	6,014
Pension and postretirement benefits	24,071	23,721
Long-term operating lease liabilities	8,906	0
Other	2,672	4,288
Total Noncurrent Liabilities	41,804	37,075
Total Liabilities	71,806	69,681
Stockholders’ Equity
Additional paid-in capital	42,327	41,300
Retained earnings	166,526	164,756
Noncontrolling interest	(90)	(14)
Accumulated Other Comprehensive Loss:
Pension and postretirement benefits	(14,620)	(14,891)
Cumulative translation adjustment	(192)	(148)
Total Accumulated Other Comprehensive Loss	(14,812)	(15,039)
Less Treasury Stock, at cost (2,932,241 Common and 335,816 Class B shares at October 31, 2019 and 2,926,547 Common and 324,741 Class B shares at July 31, 2019)	(57,103)	(56,543)
Total Stockholders' Equity	137,936	135,546
Total Liabilities & Stockholders’ Equity	209,742	205,227
Common Stock
Stockholders’ Equity
Common Stock, Value, Issued	835	828
Common Class B
Stockholders’ Equity
Common Stock, Value, Issued	$ 253	$ 258

Condensed Consolidated Balance Sheet Parenthetical - USD ($) $ in Thousands	Oct. 31, 2019	Jul. 31, 2019
Current Assets
Allowance for doubtful accounts	$ 825	$ 644
Other Assets
Accumulated amortization of other intangibles	371	299
Accumulated amortization of customer lists	6,444	6,297
Current Liabilities
Net unamortized debt issuance costs	$ 24
Noncurrent Liabilities
Net unamortized debt issuance costs		$ 31
Common Stock
Stockholder's Equity
Common stock, par value (in dollars per share)	$ 0.10	$ 0.10
Common stock, shares issued	8,346,080	8,284,199
Treasury stock, common shares	2,932,241	2,926,547
Common Class B
Stockholder's Equity
Common stock, par value (in dollars per share)	$ 0.10	$ 0.10
Common stock, shares issued	2,533,575	2,576,479
Treasury stock, common shares	335,816	324,741

Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Oct. 31, 2019	Oct. 31, 2018
Net Sales	$ 71,122	$ 66,143
Cost of Sales	(51,187)	(50,133)
Gross Profit	19,935	16,010
Selling, General and Administrative Expenses	(15,814)	(15,007)
Income from Operations	4,121	1,003
Other Income (Expense)
Interest expense	(103)	(151)
Interest income	98	49
Other, net	(39)	(17)
Total Other Expense, Net	(44)	(119)
Income Before Income Taxes	4,077	884
Income Tax (Expense) Benefit	(617)	50
Net Income	3,460	934
Net (Loss) Income Attributable to Noncontrolling Interest	(76)	28
Net Income Attributable to Oil-Dri	$ 3,536	$ 906
Net Income Per Share
Diluted Common (in dollars per share)	$ 0.46	$ 0.12
Average Shares Outstanding
Diluted Common (in shares)	7,306	7,243
Common Stock
Net Income Per Share
Basic Common (in dollars per share)	$ 0.51	$ 0.13
Average Shares Outstanding
Basic Common (in shares)	5,149	5,076
Dividends Declared Per Share (in dollars per share)	$ 0.2500	$ 0.2400
Common Class B
Net Income Per Share
Basic Common (in dollars per share)	$ 0.38	$ 0.10
Average Shares Outstanding
Basic Common (in shares)	2,050	2,069
Dividends Declared Per Share (in dollars per share)	$ 0.1875	$ 0.1800

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2019	Oct. 31, 2018
Net Income Attributable to Oil-Dri	$ 3,536	$ 906
Other Comprehensive Income:
Pension and postretirement benefits (net of tax)	271	167
Cumulative translation adjustment	(44)	(64)
Other Comprehensive Income	227	103
Total Comprehensive Income	$ 3,763	$ 1,009

- Definition

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

+ References + Details

Consolidated Statements of Stockholders Equity Statement - USD ($) $ in Thousands	Total	Common & Class B Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Loss	Noncontrolling Interest
Total, Beginning of Period at Jul. 31, 2018	$ 131,885	$ 1,056	$ 38,473	$ 158,935	$ (55,946)	$ (10,615)	$ (18)
Common & Class B Stock, Beginning of Period (in shares) at Jul. 31, 2018		10,555,828
Treasury Stock, Beginning of Period (in shares) at Jul. 31, 2018					(3,238,833)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	934
Net income	935
Net Income Attributable to Oil-Dri	906	$ 0	0	906	$ 0	0
Net (Loss) Income Attributable to Noncontrolling Interest	28						29
Other comprehensive income	103	0	0	0	0	103	0
Dividends declared	(1,656)	0	0	(1,656)	0	0	0
Purchases of treasury stock	(135)	0	0	0	$ (135)	0	0
Purchases of treasury stock (in shares)					(4,545)
Net issuance of stock under long-term incentive plans	0	$ 15	58	0	$ (73)	0	0
Net issuance of stock under long-term incentive plans (in shares)		149,500			(2,100)
Amortization of restricted stock	655	$ 0	655	0	$ 0	0	0
Total, End of Period at Oct. 31, 2018	131,787	$ 1,071	39,186	158,185	$ (56,154)	(10,512)	11
Common Stock & Class B Stock, End of Period (in shares) at Oct. 31, 2018		10,705,328
Treasury Stock, End of Period (in shares) at Oct. 31, 2018					(3,245,478)
Total, Beginning of Period at Jul. 31, 2019	135,546	$ 1,086	41,300	164,756	$ (56,543)	(15,039)	(14)
Common & Class B Stock, Beginning of Period (in shares) at Jul. 31, 2019		10,860,678
Treasury Stock, Beginning of Period (in shares) at Jul. 31, 2019					(3,251,288)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	3,460
Net Income Attributable to Oil-Dri	3,536	$ 0	0	3,536	$ 0	0
Net (Loss) Income Attributable to Noncontrolling Interest	(76)						(76)
Other comprehensive income	227	0	0	0	0	227	0
Dividends declared	(1,766)	0	0	(1,766)	0	0	0
Purchases of treasury stock	(500)	0	0	0	$ (500)	0	0
Purchases of treasury stock (in shares)					(15,019)
Net issuance of stock under long-term incentive plans	0	$ 2	58	0	$ (60)	0	0
Net issuance of stock under long-term incentive plans (in shares)		18,977			(1,750)
Amortization of restricted stock	969	$ 0	969	0	$ 0	0	0
Total, End of Period at Oct. 31, 2019	$ 137,936	$ 1,088	$ 42,327	$ 166,526	$ (57,103)	$ (14,812)	$ (90)
Common Stock & Class B Stock, End of Period (in shares) at Oct. 31, 2019		10,879,655
Treasury Stock, End of Period (in shares) at Oct. 31, 2019					(3,268,057)

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2019	Oct. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$ 3,460	$ 934
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	3,469	3,305
Amortization of investment net discount	0	(10)
Stock-based compensation	969	652
Deferred income taxes	(31)	53
Provision for bad debts and cash discounts	189	(43)
Loss on the sale of fixed assets	40	0
(Increase) Decrease in assets:
Accounts receivable	(980)	(6,367)
Inventories	371	(2,933)
Prepaid expenses	1,578	(1,196)
Other assets	316	(81)
Increase (Decrease) in liabilities:
Accounts payable	835	7,290
Accrued expenses	(3,812)	(1,780)
Deferred compensation	141	198
Pension and postretirement benefits	621	479
Other liabilities	(474)	183
Total Adjustments	3,232	(250)
Net Cash Provided by Operating Activities	6,692	684
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(3,900)	(4,058)
Purchases of short-term investments	0	(3,948)
Dispositions of short-term investments	0	8,430
Net Cash (Used in) Provided by Investing Activities	(3,900)	424
CASH FLOWS FROM FINANCING ACTIVITIES
Principal payments on notes payable	(3,083)	(3,083)
Dividends paid	(1,761)	(1,627)
Purchase of treasury stock	(500)	(135)
Net Cash Used in Financing Activities	(5,344)	(4,845)
Effect of exchange rate changes on Cash and Cash Equivalents	(50)	(1)
Net Decrease in Cash and Cash Equivalents	(2,602)	(3,738)
Cash and Cash Equivalents, Beginning of Period	21,862	12,757
Cash and Cash Equivalents, End of Period	19,260	9,019
Supplemental disclosure of non-cash investing and financing activities:
Capital expenditures accrued, but not paid	1,043	681
Cash dividends declared and accrued, but not paid	$ 1,766	$ 1,656

Basis of Statement Presentation	3 Months Ended
Basis of Statement Presentation	Oct. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Statement Presentation	BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and in compliance with instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The financial statements and the related notes are condensed and should be read in conjunction with the Consolidated Financial Statements and related notes for the fiscal year ended July 31, 2019 included in our Annual Report on Form 10-K filed with the SEC. The unaudited Condensed Consolidated Financial Statements include the accounts of Oil-Dri Corporation of America and its subsidiaries. All significant intercompany transactions are eliminated. Except as otherwise indicated herein or as the context otherwise requires, references to “Oil-Dri,” the “Company,” “we,” “us” or “our” refer to Oil-Dri Corporation of America and its subsidiaries. The unaudited Condensed Consolidated Financial Statements reflect all adjustments, consisting of normal recurring accruals and reclassifications which are, in the opinion of management, necessary for a fair presentation of the statements contained herein. In addition, certain prior year reclassifications were made to conform to the current year presentation. Operating results for the three months ended October 31, 2019 are not necessarily an indication of the results that may be expected for the fiscal year ending July 31, 2020. Management Use of Estimates The preparation of the unaudited Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires the use of estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses during the reporting period, as well as the related disclosures. All of our estimates and assumptions are revised periodically. Actual results could differ from these estimates. Summary of Significant Accounting Policies Our significant accounting policies, which are detailed in our Annual Report on Form 10-K for the fiscal year ended July 31, 2019 have not materially changed, except as described herein, including policies associated with the August 1, 2019 adoption of Accounting Standards Codification (“ASC”) 842, Leases. Changes to our accounting policies as a result of the ASC 842 adoption are discussed below and further information is also provided in Note 2 of the Notes to unaudited Condensed Consolidated Financial Statements. Following is a description of certain of our significant accounting policies. Leases. ASC 842 provides that a contract is, or contains, a lease if it conveys the right to control the use of an identified asset and, accordingly, a lease liability and a related right-of-use (“ROU”) asset is recognized at the commencement date on our consolidated balance sheets. As provided in ASC 842, we have elected not to apply these measurement and recognition requirements to short-term leases (i.e., leases with a term of 12 months or less). Short-term leases will not be recorded as ROU assets or lease liabilities on our consolidated balance sheets, and the related lease payments will be recognized in net earnings on a straight-line basis over the lease term. For leases other than short-term leases, the lease liability is equal to the present value of unpaid lease payments over the remaining lease term. The lease term may reflect options to extend or terminate the lease when it is reasonably certain that such options will be exercised. To determine the present value of the lease liability, we used an incremental borrowing rate, which is defined as the rate of interest we would have to pay to borrow (on a collateralized basis over a similar term) an amount equal to the lease payments in similar economic environments. The ROU asset is based on the corresponding lease liability adjusted for certain costs such as initial direct costs, prepaid lease payments and lease incentives received. Both operating and finance lease ROU assets are reviewed for impairment, consistent with other long-lived assets, whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. After a ROU asset is impaired, any remaining balance of the ROU asset is amortized on a straight-line basis over the shorter of the remaining lease term or the estimated useful life. After the lease commencement date, we evaluate lease modifications, if any, that could result in a change in the accounting for leases. Certain of our leases provide for variable lease payments that vary due to changes in facts and circumstances occurring after the commencement date, other than the passage of time. Variable lease payments that are dependent on an index or rate (e.g., Consumer Price Index) are included in the initial measurement of the lease liability and the ROU asset. Variable lease payments that are not known at the commencement date and are determinable based on the performance or use of the underlying asset, are expensed as incurred. Our variable lease payments primarily include common area maintenance charges based on the percentage of the total square footage leased and the usage of assets, such as photocopiers. Some of our contracts may contain lease components as well as non-lease components, such as an agreement to purchase services. As allowed under ASC 842, we have elected not to separate the lease components from non-lease components for all asset classes and we will not allocate the contract consideration to these components. This policy was applied to all existing leases upon adoption of ASC 842 and will be applied to new leases on an on-going basis. Revenue Recognition. We recognize revenue when performance obligations under the terms of the contracts with customers are satisfied. Our performance obligation generally consists of the promise to sell finished products to wholesalers, distributors and retailers or consumers and our obligations have an original duration of one year or less. Control of the finished products are transferred upon shipment to, or receipt at, customers' locations, as determined by the specific terms of the contract. We have completed our performance obligation when control is transferred and we recognize revenue accordingly. We have an unconditional right to consideration under the payment terms specified in the contract upon completion of the performance obligation. We may require certain customers to provide payment in advance of product shipment. We recorded a liability for these advance payments of $182,000 and $259,000 as of October 31, 2019 and July 31, 2019, respectively. This liability is reported in Other Accrued Expenses on the unaudited Condensed Consolidated Balance Sheet. Revenue recognized during the three months ended October 31, 2019 that was included in the liability for advance payments at the beginning of the period was $214,000. We routinely commit to one-time or ongoing trade promotion programs directly with consumers, such as coupon programs, and with customers, such as volume discounts, cooperative marketing and other arrangements. We estimate and accrue the expected costs of these programs. These costs are considered variable consideration under ASC 606, Revenue from Contracts with Customers, and are netted against sales when revenue is recorded. The accruals are based on our best estimate of the amounts necessary to settle future and existing obligations on products sold as of the balance sheet date. To estimate these accruals, we rely on our historical experience of trade spending patterns and that of the industry, current trends and forecasted data. Selling, General and Administrative Expenses. Selling, general and administrative expenses (“SG&A”) include salaries, wages and benefits associated with staff outside the manufacturing and distribution functions, all marketing related costs, any miscellaneous trade spending expenses not required to be included in net sales, research and development costs, depreciation and amortization related to assets outside the manufacturing and distribution process and all other non-manufacturing and non-distribution expenses. Trade Receivables. We record an allowance for doubtful accounts based on our historical experience and a periodic review of our accounts receivable, including a review of the overall aging of accounts, consideration of customer credit risk and analysis of facts and circumstances about specific customer accounts. A customer account is determined to be uncollectible when it is probable that a loss will be incurred after we have completed our internal collection procedures, including termination of shipments, direct customer contact and formal demand of payment. Overburden Removal and Mining Costs. We mine sorbent materials on property that we either own or lease as part of our overall operations. A significant part of our overall mining cost is incurred during the process of removing the overburden (non-usable material) from the mine site, thus exposing the sorbent material used in a majority of our production processes. These stripping costs are treated as a variable inventory production cost and are included in cost of sales in the period they are incurred. We defer and amortize the pre-production overburden removal costs associated with opening a new mine. Additionally, it is our policy to capitalize the purchase cost of land and mineral rights, including associated legal fees, survey fees and real estate fees. The costs of obtaining mineral patents, including legal fees and drilling expenses, are also capitalized. Pre-production development costs on new mines and any prepaid royalties that may be offset against future royalties due upon extraction of the minerals are also capitalized. All exploration related costs are expensed as incurred. We perform ongoing reclamation activities during the normal course of our overburden removal. As overburden is removed from a mine site, it is hauled to previously mined sites and is used to refill older sites. This process allows us to continuously reclaim older mine sites and dispose of overburden simultaneously, therefore minimizing the costs associated with the reclamation process.

New Accounting Pronouncements	3 Months Ended
New Accounting Pronouncements	Oct. 31, 2019
NEW ACCOUNTING PRONOUNCEMENTS [Abstract]
New Accounting Pronouncements	NEW ACCOUNTING PRONOUNCEMENTS AND REGULATIONS Recently Adopted Pronouncements On August 1, 2019, we adopted ASC 842, Leases, using the modified retrospective transition approach and, accordingly, we did not restate prior comparative period financial statements. As of the date of adoption, we elected the package of practical expedients that allowed us to forgo assessment under the ASC 842 guidance whether existing or expired contracts contained leases, the classification of expired or existing leases and the accounting for previously incurred initial direct costs. We also elected the practical expedient to forgo assessment under ASC 842 whether existing or expired land easements not previously accounted for under legacy leasing GAAP contain leases. The adoption of ASC 842 on August 1, 2019, resulted in the recognition of additional ROU assets and lease liabilities related to operating leases of $9,348,000 and $10,910,000, respectively, on our unaudited Condensed Consolidated Balance Sheets. There was no material impact to any of our other unaudited consolidated financial statements. Recently Issued Pronouncements In June 2016, the FASB issued guidance under ASC 326, Financial Instruments-Credit Losses, which requires companies to utilize an impairment model for most financial assets measured at amortized cost and certain other financial instruments, which include trade and other receivables, loans and held-to-maturity debt securities, to record an allowance for credit risk based on expected losses rather than incurred losses. In addition, this new guidance changes the recognition method for credit losses on available-for-sale debt securities, which can occur as a result of market and credit risk, as well as additional disclosures. In general, this guidance will require modified retrospective adoption for all outstanding instruments that fall under this guidance. This guidance is effective for our first quarter of fiscal year 2021. We are currently evaluating the impact of the adoption of this requirement on our Consolidated Financial Statements. There have been no other accounting pronouncements issued but not yet adopted by us which are expected to have a material impact on our Consolidated Financial Statements.

Inventories

3 Months Ended

Oct. 31, 2019

Inventory Disclosure [Abstract]

Inventories

INVENTORIES

The composition of inventories is as follows (in thousands):



	October 31, 2019		July 31, 2019
Finished goods	$	14,361	$	13,957
Packaging	5,556		5,681
Other	3,886		4,525
Total Inventories	$	23,803	$	24,163

Inventories are valued at the lower of cost (first-in, first-out) or net realizable value. Inventory costs include the cost of raw materials, packaging supplies, labor and other overhead costs. We performed a detailed review of our inventory items to determine if an obsolescence reserve adjustment was necessary. The review surveyed all of our operating facilities and sales groups to ensure that both historical issues and new market trends were considered. The obsolescence reserve not only considered specific items, but also took into consideration the overall value of the inventory as of the balance sheet date. The inventory obsolescence reserve values at October 31, 2019 and July 31, 2019 were $1,049,000 and $704,000, respectively.

Fair Value Measurements	3 Months Ended
Fair Value Measurements	Oct. 31, 2019
Fair Value Disclosures [Abstract]
Fair Value Measurements	FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The inputs used to measure fair value are prioritized into categories based on the lowest level of input that is significant to the fair value measurement. The categories in the fair value hierarchy are as follows: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs for similar assets or liabilities or valuation models whose inputs are observable, directly or indirectly. Level 3: Unobservable inputs. Cash equivalents are primarily money market mutual funds classified as Level 1. We had $26,000 cash equivalents as of both October 31, 2019 and July 31, 2019, which are included in Cash and cash equivalents on the unaudited Condensed Consolidated Balance Sheets. Balances of accounts receivable and accounts payable approximated their fair values at October 31, 2019 and July 31, 2019 due to the short maturity and nature of those balances. Notes payable are reported at the face amount of future maturities. The estimated fair value of notes payable, including current maturities, was $3,158,000 and $6,357,000 as of October 31, 2019 and July 31, 2019, respectively, and are classified as Level 2. The fair value as of October 31, 2019, was estimated using the exit price notion of fair value. We apply fair value techniques on at least an annual basis associated with: (1) valuing potential impairment loss related to goodwill, trademarks and other indefinite-lived intangible assets and (2) valuing potential impairment loss related to long-lived assets. See Note 5 of the Notes to unaudited Condensed Consolidated Financial Statements for further information about goodwill and other intangible assets.

- 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

Goodwill and Other Intangibles (Notes)

3 Months Ended

Oct. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

GOODWILL AND OTHER INTANGIBLE ASSETS

Intangible assets, other than goodwill, include trademarks, patents, customer lists and product registrations. Intangible amortization expense was $167,000 and $210,000 in the first quarter of fiscal years 2020 and 2019, respectively. Estimated intangible amortization for the remainder of fiscal year 2020 is $501,000. Estimated intangible amortization for the next five fiscal years is as follows (in thousands):



2021	$	484
2022	$	334
2023	$	202
2024	$	69
2025	$	47

We have one acquired trademark recorded at a cost of $376,000 that was determined to have an indefinite life and is not amortized.

We performed our annual goodwill impairment analysis in the fourth quarter of fiscal year 2019 and no impairment was identified. There have been no triggering events that would indicate a new impairment analysis is needed.

Leases (Notes)

3 Months Ended

Oct. 31, 2019

Leases [Abstract]

Lessee, Operating Leases

LEASES

We have operating leases primarily for real estate properties, including corporate headquarters, customer service and sales offices, manufacturing and packaging facilities, warehouses, and research and development facilities, as well as for rail tracks, railcars and office equipment. Certain of our leases for a shared warehouse and office facility, rail track and railcars have options to extend which we are reasonably certain we will exercise and, accordingly, have been considered in the lease term used to recognize our ROU assets and lease liabilities. Further information about our accounting policy for leases is included in Note 1 of the Notes to unaudited Condensed Consolidated Financial Statements.

We have no material finance leases, and variable costs for operating leases are immaterial for the first quarter of fiscal year 2020. Operating lease costs are included in Cost of Sales or SG&A expenses based on the nature of the lease. The following table summarizes total lease costs for our operating leases (in thousands):



	For the Three Months Ended October 31, 2019
Operating lease cost
Operating lease cost	$	517
Short-term operating lease cost	$	205

Supplemental cash flow information related to leases was as follows (in thousands):



	For the Three Months Ended October 31, 2019
Other Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used for operating leases	$	432

Operating lease ROU assets and operating lease liabilities are separately presented on the unaudited Condensed Consolidated Balance Sheets, excluding leases with an initial term of twelve months or less. Other supplemental balance sheet information related to leases was as follows:



	For the Three Months Ended October 31, 2019
Weighted-average remaining lease term - operating leases	10.7 years
Weighted-average discount rate - operating leases	3.99%

The following table summarizes scheduled minimum future lease payments due within twelve months for operating leases with terms longer than one year for which cash flows are fixed and determinable as of October 31, (in thousands):



2019	$	1,953
2020	1,545
2021	1,268
2022	867
2023	777
Thereafter	6,716
Total	13,126
Less: imputed interest	(2,617		)
Net lease obligation	$	10,509

Pension and Other Postretirement Benefits

3 Months Ended

Oct. 31, 2019

Defined Benefit Plan [Abstract]

Pension and Other Postretirement Benefits Disclosure

PENSION AND OTHER POSTRETIREMENT BENEFITS

The components of net periodic pension and postretirement health benefit costs were as follows:



	Pension Benefits
	(in thousands)
	For the Three Months Ended October 31,
	2019			2018
Service cost	$	488		$	422
Interest cost	509			540
Expected return on plan assets	(698		)	(702		)
Amortization of:
Other actuarial loss	357			221
Net periodic benefit cost	$	656		$	481

	Postretirement Health Benefits
	(in thousands)
	For the Three Months Ended October 31,
	2019			2018
Service cost	$	30		$	27
Interest cost	21			25
Amortization of:
Prior service costs	(1		)	(1		)
Net periodic benefit cost	$	50		$	51

The non-service cost components of net periodic benefit cost are included in Other Income (Expense) in the line item Other, net on the unaudited Condensed Consolidated Statements of Income and Retained Earnings.

The pension plan is funded based upon actuarially determined contributions that take into account the amount deductible for income tax purposes, the normal cost and the minimum contribution required and the maximum contribution allowed under applicable regulations. We were not required to make, and did not make, a contribution to the pension plan during the first three months of fiscal year 2020. We have no minimum funding requirements for the remainder of fiscal year 2020.

The postretirement health plan is an unfunded plan. We pay insurance premiums and claims from our assets.

Assumptions used in the previous calculations were as follows:



	Pension Benefits				Postretirement Health Benefits
	For the Three Months Ended October 31,
	2019		2018		2019		2018
Discount rate for net periodic benefit cost	3.35	%	4.04	%	2.93	%	3.81	%
Rate of increase in compensation levels	3.50	%	3.50	%	—		—
Long-term expected rate of return on assets	7.00	%	7.00	%	—		—

The medical cost trend assumption for postretirement health benefits was 7.35%. The graded trend rate is expected to decrease to an ultimate rate of 4.50% in fiscal year 2038.

Operating Segments

3 Months Ended

Oct. 31, 2019

Segment Reporting [Abstract]

Operating Segment Disclosure

OPERATING SEGMENTS

We have two operating segments: (1) Business to Business Products Group and (2) Retail and Wholesale Products Group. These operating segments are managed separately and each segment's major customers have different characteristics. The Retail and Wholesale Products Group customers include: mass merchandisers; wholesale clubs; drugstore chains; pet specialty retail outlets; dollar stores; retail grocery stores; distributors of industrial cleanup and automotive products; environmental service companies; and sports field product users. The Business to Business Products Group customers include: processors and refiners of edible oils, petroleum-based oils and biodiesel fuel; manufacturers of animal feed and agricultural chemicals; distributors of animal health and nutrition products; and marketers of consumer products. Our operating segments are also our reportable segments. The accounting policies of the segments are the same as those described in Note 1 of the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended July 31, 2019.

Net sales for our principal products by segment are as follows (in thousands):



	Business to Business Products Group				Retail and Wholesale Products Group
	For the Three Months Ended October 31,
Product	2019		2018		2019		2018
Cat Litter	$	3,697	$	3,215	$	36,379	$	32,395
Industrial and Sports	—		—		7,600		7,777
Agricultural and Horticultural	5,719		6,052		—		—
Bleaching Clay and Fluids Purification	12,223		11,895		665		645
Animal Health and Nutrition	4,839		4,164		—		—
Net Sales	$	26,478	$	25,326	$	44,644	$	40,817

We do not rely on any segment asset allocations and we do not consider them meaningful because of the shared nature of our production facilities; however, we have estimated the segment asset allocations below for those assets for which we can reasonably determine. The unallocated asset category is the remainder of our total assets. We have refined the basis of allocation for certain of our assets as of October 31, 2019 and we have restated the allocation of assets as of July 31, 2019 presented below to enhance comparability. The asset allocation is estimated and is not a measure used by our chief operating decision maker about allocating resources to the operating segments or in assessing their performance.



	Assets
	October 31, 2019		July 31, 2019
	(in thousands)
Business to Business Products Group	$	65,074	$	66,655
Retail and Wholesale Products Group	95,782		95,593
Unallocated Assets	48,886		42,979
Total Assets	$	209,742	$	205,227

Net sales and operating income for each segment are provided below. The corporate expenses line includes certain unallocated expenses, including primarily salaries, wages and benefits, purchased services, rent, utilities and depreciation and amortization associated with corporate functions such as research and development, information systems, finance, legal, human resources and customer service. Corporate expenses also include the estimated annual incentive plan bonus accrual.



	For the Three Months Ended October 31,
	Net Sales				Income
	2019		2018		2019			2018
	(in thousands)
Business to Business Products Group	$	26,478	$	25,326	$	8,296		$	7,032
Retail and Wholesale Products Group	44,644		40,817		3,360			9
Net Sales	$	71,122	$	66,143
Corporate Expenses					(7,535		)	(6,038		)
Income from Operations					4,121			1,003
Total Other Expense, Net					(44		)	(119		)
Income before Income Taxes					4,077			884
Income Tax (Expense) Benefit					(617		)	50
Net Income					3,460			934
Net (Loss) Income Attributable to Noncontrolling Interest					(76		)	28
Net Income Attributable to Oil-Dri					$	3,536		$	906

Stock-Based Compensation

3 Months Ended

Oct. 31, 2019

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

Disclosure of Compensation Related Costs, Share-based Payments

STOCK-BASED COMPENSATION

The Oil-Dri Corporation of America 2006 Long Term Incentive Plan, as amended (the “2006 Plan”) permits the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards and other stock-based and cash-based awards. Our employees and outside directors are eligible to receive grants under the 2006 Plan. The total number of shares of stock subject to grants under the 2006 Plan may not exceed 937,500 as of October 31, 2019.

Restricted Stock

All of our non-vested restricted stock as of October 31, 2019 was issued under the 2006 Plan with vesting periods generally between one and five years. We determined the fair value of restricted stock as of the grant date. We recognize the related compensation expense over the period from the date of grant to the date the shares vest.

There were 19,000 and 23,000 restricted shares of Common Stock granted during the first quarter of fiscal years 2020 and 2019, respectively. There were no restricted shares of Class B Stock granted during the first quarter of fiscal year 2020 and 126,000 restricted shares of Class B Stock granted during the first quarter of fiscal year 2019. Stock-based compensation expense related to non-vested restricted stock was $969,000 and $660,000 for the first quarter of fiscal years 2020 and 2019, respectively.

A summary of restricted stock transactions is shown below:



	Restricted Shares (in thousands)		Weighted Average Grant Date Fair Value
Non-vested restricted stock outstanding at July 31, 2019	414		$	33.09
Granted	19		$	33.29
Vested	(39	)	$	32.26
Forfeitures	(1	)	$	34.35
Non-vested restricted stock outstanding at October 31, 2019	393		$	33.17

Accumulated Other Comprehensive (Loss) Income (Notes)

3 Months Ended

Oct. 31, 2019

Accumulated Other Comprehensive Income [Abstract]

Accumulated Other Comprehensive (Loss) Income

ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME

The following table summarizes the changes in accumulated other comprehensive (loss) income by component as of October 31, 2019 (in thousands):



	Pension and Postretirement Health Benefits				Cumulative Translation Adjustment			Total Accumulated Other Comprehensive (Loss) Income
Balance as of July 31, 2019	$	(14,891	)		$	(148	)	$	(15,039	)
Other comprehensive loss before reclassifications, net of tax	—				(44		)	(44		)
Amounts reclassified from accumulated other comprehensive income, net of tax	271			(a)	—			271
Net current-period other comprehensive income (loss), net of tax	271				(44		)	227
Balance as of October 31, 2019	$	(14,620	)		$	(192	)	$	(14,812	)

(a) Amount is net of tax expense of $85,440. Amount is included in the components of net periodic benefit cost for the pension and postretirement health plans. See Note 7 of the Notes to unaudited Condensed Consolidated Financial Statements for further information.

Related Party Transactions (Notes)	3 Months Ended
Related Party Transactions (Notes)	Oct. 31, 2019
Related Party Transactions [Abstract]
Related Party Transactions Disclosure	RELATED PARTY TRANSACTIONS One member of our Board of Directors, and our Lead Independent Director, retired from the role of President and Chief Executive Officer of a customer of ours in September 2019. That company was a customer of ours before the board member joined that company and before he became a member of our Board of Directors. Total net sales to that customer, including sales to subsidiaries of that customer, were $111,000 and $97,000 for the first three months of fiscal years 2020 and 2019, respectively. Outstanding accounts receivable from that customer, and its subsidiaries, were $8,000 and $10,000 as of October 31, 2019 and July 31, 2019, respectively. One member of our Board of Directors, and of the Compensation Committee of our Board of Directors, is the President and Chief Executive Officer as well as a director and shareholder of a law firm that regularly provides services to us. Total payments to that vendor for fees and cost reimbursements were $38,000 and $46,000 for the first three months of fiscal years 2020 and 2019, respectively. There were no outstanding accounts payable to that vendor as of October 31, 2019 or July 31, 2019.

Basis of Statement Presentation Level 2 (Policies)	3 Months Ended
Basis of Statement Presentation Level 2 (Policies)	Oct. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Leases	ASC 842 provides that a contract is, or contains, a lease if it conveys the right to control the use of an identified asset and, accordingly, a lease liability and a related right-of-use (“ROU”) asset is recognized at the commencement date on our consolidated balance sheets. As provided in ASC 842, we have elected not to apply these measurement and recognition requirements to short-term leases (i.e., leases with a term of 12 months or less). Short-term leases will not be recorded as ROU assets or lease liabilities on our consolidated balance sheets, and the related lease payments will be recognized in net earnings on a straight-line basis over the lease term. For leases other than short-term leases, the lease liability is equal to the present value of unpaid lease payments over the remaining lease term. The lease term may reflect options to extend or terminate the lease when it is reasonably certain that such options will be exercised. To determine the present value of the lease liability, we used an incremental borrowing rate, which is defined as the rate of interest we would have to pay to borrow (on a collateralized basis over a similar term) an amount equal to the lease payments in similar economic environments. The ROU asset is based on the corresponding lease liability adjusted for certain costs such as initial direct costs, prepaid lease payments and lease incentives received. Both operating and finance lease ROU assets are reviewed for impairment, consistent with other long-lived assets, whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. After a ROU asset is impaired, any remaining balance of the ROU asset is amortized on a straight-line basis over the shorter of the remaining lease term or the estimated useful life. After the lease commencement date, we evaluate lease modifications, if any, that could result in a change in the accounting for leases. Certain of our leases provide for variable lease payments that vary due to changes in facts and circumstances occurring after the commencement date, other than the passage of time. Variable lease payments that are dependent on an index or rate (e.g., Consumer Price Index) are included in the initial measurement of the lease liability and the ROU asset. Variable lease payments that are not known at the commencement date and are determinable based on the performance or use of the underlying asset, are expensed as incurred. Our variable lease payments primarily include common area maintenance charges based on the percentage of the total square footage leased and the usage of assets, such as photocopiers. Some of our contracts may contain lease components as well as non-lease components, such as an agreement to purchase services. As allowed under ASC 842, we have elected not to separate the lease components from non-lease components for all asset classes and we will not allocate the contract consideration to these components. This policy was applied to all existing leases upon adoption of ASC 842 and will be applied to new leases on an on-going basis.
Revenue Recognition	We recognize revenue when performance obligations under the terms of the contracts with customers are satisfied. Our performance obligation generally consists of the promise to sell finished products to wholesalers, distributors and retailers or consumers and our obligations have an original duration of one year or less. Control of the finished products are transferred upon shipment to, or receipt at, customers' locations, as determined by the specific terms of the contract. We have completed our performance obligation when control is transferred and we recognize revenue accordingly. We have an unconditional right to consideration under the payment terms specified in the contract upon completion of the performance obligation. We may require certain customers to provide payment in advance of product shipment. We recorded a liability for these advance payments of $182,000 and $259,000 as of October 31, 2019 and July 31, 2019, respectively. This liability is reported in Other Accrued Expenses on the unaudited Condensed Consolidated Balance Sheet. Revenue recognized during the three months ended October 31, 2019 that was included in the liability for advance payments at the beginning of the period was $214,000. We routinely commit to one-time or ongoing trade promotion programs directly with consumers, such as coupon programs, and with customers, such as volume discounts, cooperative marketing and other arrangements. We estimate and accrue the expected costs of these programs. These costs are considered variable consideration under ASC 606, Revenue from Contracts with Customers, and are netted against sales when revenue is recorded. The accruals are based on our best estimate of the amounts necessary to settle future and existing obligations on products sold as of the balance sheet date. To estimate these accruals, we rely on our historical experience of trade spending patterns and that of the industry, current trends and forecasted data.
Selling, General and Administrative Expenses	Selling, general and administrative expenses (“SG&A”) include salaries, wages and benefits associated with staff outside the manufacturing and distribution functions, all marketing related costs, any miscellaneous trade spending expenses not required to be included in net sales, research and development costs, depreciation and amortization related to assets outside the manufacturing and distribution process and all other non-manufacturing and non-distribution expenses.
Trade Receivables	We record an allowance for doubtful accounts based on our historical experience and a periodic review of our accounts receivable, including a review of the overall aging of accounts, consideration of customer credit risk and analysis of facts and circumstances about specific customer accounts. A customer account is determined to be uncollectible when it is probable that a loss will be incurred after we have completed our internal collection procedures, including termination of shipments, direct customer contact and formal demand of payment.
Overburden Removal and Mining Costs	We mine sorbent materials on property that we either own or lease as part of our overall operations. A significant part of our overall mining cost is incurred during the process of removing the overburden (non-usable material) from the mine site, thus exposing the sorbent material used in a majority of our production processes. These stripping costs are treated as a variable inventory production cost and are included in cost of sales in the period they are incurred. We defer and amortize the pre-production overburden removal costs associated with opening a new mine. Additionally, it is our policy to capitalize the purchase cost of land and mineral rights, including associated legal fees, survey fees and real estate fees. The costs of obtaining mineral patents, including legal fees and drilling expenses, are also capitalized. Pre-production development costs on new mines and any prepaid royalties that may be offset against future royalties due upon extraction of the minerals are also capitalized. All exploration related costs are expensed as incurred.
Reclamation	We perform ongoing reclamation activities during the normal course of our overburden removal. As overburden is removed from a mine site, it is hauled to previously mined sites and is used to refill older sites. This process allows us to continuously reclaim older mine sites and dispose of overburden simultaneously, therefore minimizing the costs associated with the reclamation process.

- Definition

Disclosure of accounting policy for trade and other accounts receivables. This disclosure may include the basis at which such receivables are carried in the entity's statements of financial position (for example, net realizable value), how the entity determines the level of its allowance for doubtful accounts, when impairments, charge-offs or recoveries are recognized, and the entity's income recognition policies for such receivables, including its treatment of related fees and costs, its treatment of premiums, discounts or unearned income, when accrual of interest is discontinued, how the entity records payments received on nonaccrual receivables and its policy for resuming accrual of interest on such receivables. If the enterprise holds a large number of similar loans, disclosure may include the accounting policy for the anticipation of prepayments and significant assumptions underlying prepayment estimates for amortization of premiums, discounts, and nonrefundable fees and costs.

+ References

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-Topic 310
-SubTopic 10
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Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-03(a)(5))
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Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
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-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-03(9))
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Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=84158767&loc=d3e18780-107790

Reference 9: 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(4))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

+ Details

Inventories Level 2 (Policies)	3 Months Ended
Inventories Level 2 (Policies)	Oct. 31, 2019
Inventory Disclosure [Abstract]
Inventories	Inventories are valued at the lower of cost (first-in, first-out) or net realizable value. Inventory costs include the cost of raw materials, packaging supplies, labor and other overhead costs. We performed a detailed review of our inventory items to determine if an obsolescence reserve adjustment was necessary. The review surveyed all of our operating facilities and sales groups to ensure that both historical issues and new market trends were considered. The obsolescence reserve not only considered specific items, but also took into consideration the overall value of the inventory as of the balance sheet date.

Fair Value Measurements Fair Value Measurements (Policies)	3 Months Ended
	Oct. 31, 2019
Fair Value Disclosures [Abstract]
Fair Value Measurement, Policy	Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The inputs used to measure fair value are prioritized into categories based on the lowest level of input that is significant to the fair value measurement. The categories in the fair value hierarchy are as follows: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs for similar assets or liabilities or valuation models whose inputs are observable, directly or indirectly. Level 3: Unobservable inputs.

Operating Segments Level 2 (Policies)	3 Months Ended
Operating Segments Level 2 (Policies)	Oct. 31, 2019
Segment Reporting [Abstract]
Operating Segments	We have two operating segments: (1) Business to Business Products Group and (2) Retail and Wholesale Products Group. These operating segments are managed separately and each segment's major customers have different characteristics. The Retail and Wholesale Products Group customers include: mass merchandisers; wholesale clubs; drugstore chains; pet specialty retail outlets; dollar stores; retail grocery stores; distributors of industrial cleanup and automotive products; environmental service companies; and sports field product users. The Business to Business Products Group customers include: processors and refiners of edible oils, petroleum-based oils and biodiesel fuel; manufacturers of animal feed and agricultural chemicals; distributors of animal health and nutrition products; and marketers of consumer products. Our operating segments are also our reportable segments. The accounting policies of the segments are the same as those described in Note 1 of the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended July 31, 2019.

Inventories Level 3 (Tables)

3 Months Ended

Oct. 31, 2019

Inventory Disclosure [Abstract]

Inventories

The composition of inventories is as follows (in thousands):



	October 31, 2019		July 31, 2019
Finished goods	$	14,361	$	13,957
Packaging	5,556		5,681
Other	3,886		4,525
Total Inventories	$	23,803	$	24,163

Goodwill and Other Intangibles (Tables)

3 Months Ended

Oct. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

Estimated intangible amortization for the next five fiscal years is as follows (in thousands):



2021	$	484
2022	$	334
2023	$	202
2024	$	69
2025	$	47

Leases (Tables)

3 Months Ended

Oct. 31, 2019

Leases [Abstract]

Lease cost



	For the Three Months Ended October 31, 2019
Operating lease cost
Operating lease cost	$	517
Short-term operating lease cost	$	205

Supplemental cash flow information related to leases was as follows (in thousands):



	For the Three Months Ended October 31, 2019
Other Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used for operating leases	$	432



	For the Three Months Ended October 31, 2019
Weighted-average remaining lease term - operating leases	10.7 years
Weighted-average discount rate - operating leases	3.99%

Operating lease payments due within next twelve months as of October 31,



2019	$	1,953
2020	1,545
2021	1,268
2022	867
2023	777
Thereafter	6,716
Total	13,126
Less: imputed interest	(2,617		)
Net lease obligation	$	10,509

Pension and Other Postretirement Benefits (Tables)

3 Months Ended

Oct. 31, 2019

Defined Benefit Plan [Abstract]

Schedule of Net Benefit Costs

The components of net periodic pension and postretirement health benefit costs were as follows:



	Pension Benefits
	(in thousands)
	For the Three Months Ended October 31,
	2019			2018
Service cost	$	488		$	422
Interest cost	509			540
Expected return on plan assets	(698		)	(702		)
Amortization of:
Other actuarial loss	357			221
Net periodic benefit cost	$	656		$	481

	Postretirement Health Benefits
	(in thousands)
	For the Three Months Ended October 31,
	2019			2018
Service cost	$	30		$	27
Interest cost	21			25
Amortization of:
Prior service costs	(1		)	(1		)
Net periodic benefit cost	$	50		$	51

Schedule of Assumptions Used

Assumptions used in the previous calculations were as follows:



	Pension Benefits				Postretirement Health Benefits
	For the Three Months Ended October 31,
	2019		2018		2019		2018
Discount rate for net periodic benefit cost	3.35	%	4.04	%	2.93	%	3.81	%
Rate of increase in compensation levels	3.50	%	3.50	%	—		—
Long-term expected rate of return on assets	7.00	%	7.00	%	—		—

The medical cost trend assumption for postretirement health benefits was 7.35%. The graded trend rate is expected to decrease to an ultimate rate of 4.50% in fiscal year 2038.

Operating Segments (Tables)

3 Months Ended

Oct. 31, 2019

Segment Reporting [Abstract]

Revenue by Principal Product by Operating Segment

Net sales for our principal products by segment are as follows (in thousands):



	Business to Business Products Group				Retail and Wholesale Products Group
	For the Three Months Ended October 31,
Product	2019		2018		2019		2018
Cat Litter	$	3,697	$	3,215	$	36,379	$	32,395
Industrial and Sports	—		—		7,600		7,777
Agricultural and Horticultural	5,719		6,052		—		—
Bleaching Clay and Fluids Purification	12,223		11,895		665		645
Animal Health and Nutrition	4,839		4,164		—		—
Net Sales	$	26,478	$	25,326	$	44,644	$	40,817

Operating Segments Information



	Assets
	October 31, 2019		July 31, 2019
	(in thousands)
Business to Business Products Group	$	65,074	$	66,655
Retail and Wholesale Products Group	95,782		95,593
Unallocated Assets	48,886		42,979
Total Assets	$	209,742	$	205,227



	For the Three Months Ended October 31,
	Net Sales				Income
	2019		2018		2019			2018
	(in thousands)
Business to Business Products Group	$	26,478	$	25,326	$	8,296		$	7,032
Retail and Wholesale Products Group	44,644		40,817		3,360			9
Net Sales	$	71,122	$	66,143
Corporate Expenses					(7,535		)	(6,038		)
Income from Operations					4,121			1,003
Total Other Expense, Net					(44		)	(119		)
Income before Income Taxes					4,077			884
Income Tax (Expense) Benefit					(617		)	50
Net Income					3,460			934
Net (Loss) Income Attributable to Noncontrolling Interest					(76		)	28
Net Income Attributable to Oil-Dri					$	3,536		$	906

Stock-Based Compensation (Tables)

3 Months Ended

Oct. 31, 2019

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

Schedule of Restricted Stock Transactions

A summary of restricted stock transactions is shown below:



	Restricted Shares (in thousands)		Weighted Average Grant Date Fair Value
Non-vested restricted stock outstanding at July 31, 2019	414		$	33.09
Granted	19		$	33.29
Vested	(39	)	$	32.26
Forfeitures	(1	)	$	34.35
Non-vested restricted stock outstanding at October 31, 2019	393		$	33.17

Accumulated Other Comprehensive (Loss) Income (Tables)

3 Months Ended

Oct. 31, 2019

Accumulated Other Comprehensive Income [Abstract]

Accumulated Other Comprehensive (Loss) Income by Component

The following table summarizes the changes in accumulated other comprehensive (loss) income by component as of October 31, 2019 (in thousands):



	Pension and Postretirement Health Benefits				Cumulative Translation Adjustment			Total Accumulated Other Comprehensive (Loss) Income
Balance as of July 31, 2019	$	(14,891	)		$	(148	)	$	(15,039	)
Other comprehensive loss before reclassifications, net of tax	—				(44		)	(44		)
Amounts reclassified from accumulated other comprehensive income, net of tax	271			(a)	—			271
Net current-period other comprehensive income (loss), net of tax	271				(44		)	227
Balance as of October 31, 2019	$	(14,620	)		$	(192	)	$	(14,812	)

Basis of Statement Presentation Revenue Recognition (Details) - Payments In Advance - USD ($)	3 Months Ended
	Oct. 31, 2019	Jul. 31, 2019
Deferred Revenue Arrangement
Liability for Payments in Advance	$ 182,000	$ 259,000
Payments in Advance, Revenue Recognized	$ 214,000

New Accounting Pronouncements Adjustment for New Accounting Pronouncement (Details) - USD ($)	Oct. 31, 2019	Aug. 01, 2019	Jul. 31, 2019
New Accounting Pronouncements or Change in Accounting Principle
Operating lease right-of-use assets	$ 8,967,000		$ 0
Net lease obligation	$ 10,509,000
ASC 842 Leases
New Accounting Pronouncements or Change in Accounting Principle
Operating lease right-of-use assets		$ 9,348,000
Net lease obligation		$ 10,910,000

Inventories (Details) - USD ($) $ in Thousands	Oct. 31, 2019	Jul. 31, 2019
Inventory
Finished goods	$ 14,361	$ 13,957
Packaging	5,556	5,681
Other	3,886	4,525
Total Inventories	$ 23,803	$ 24,163

Inventories Narrative (Details) - USD ($)	Oct. 31, 2019	Jul. 31, 2019
Inventory
Inventory obsolescence reserve	$ 1,049,000	$ 704,000

Fair Value Measurements Narrative (Details) - USD ($)	Oct. 31, 2019	Jul. 31, 2019
Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Cash Equivalents	$ 26,000	$ 26,000
Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Notes Payable, Fair Value	$ 3,158,000	$ 6,357,000

Goodwill and Other Intangibles (Details) $ in Thousands	Oct. 31, 2019 USD ($)
Finite-Lived Intangible Assets, Future Amortization Expense
2021	$ 484
2022	334
2023	202
2024	69
2025	$ 47

Goodwill and Other Intangibles Narrative (Details) - USD ($)	3 Months Ended		12 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Jul. 31, 2019
Finite-Lived Intangible Assets
Amortization of intangible assets	$ 167,000	$ 210,000
Amortization expense for remainder of current fiscal year	501,000
Indefinite-lived trademarks	$ 376,000
Goodwill impairment loss			$ 0

Leases (Details) $ in Thousands	3 Months Ended
Leases (Details) $ in Thousands	Oct. 31, 2019 USD ($)
Leases [Abstract]
Operating lease cost	$ 517
Short-term operating lease cost	205
Operating cash flows used for operating leases	$ 432
Weighted-average remaining lease term - operating leaes	10 years 8 months 12 days
Weighted-average discount rate - operating leases	3.99%
2019	$ 1,953
2020	1,545
2021	1,268
2022	867
2023	777
Thereafter	6,716
Total	13,126
Less: imputed interest	(2,617)
Net lease obligation	$ 10,509

Pension and Other Postretirement Benefits (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2019	Oct. 31, 2018
Pension Plan
Defined Benefit Plans and Other Postretirement Benefit Plans
Service cost	$ 488	$ 422
Interest cost	509	540
Expected return on plan assets	(698)	(702)
Amortization of Other actuarial loss	357	221
Net periodic benefit cost	656	481
Postretirement Health Plan
Defined Benefit Plans and Other Postretirement Benefit Plans
Service cost	30	27
Interest cost	21	25
Amortization of Prior service costs	(1)	(1)
Net periodic benefit cost	$ 50	$ 51

Pension and Other Postretirement Benefits Assumptions (Details)	3 Months Ended
	Oct. 31, 2019	Oct. 31, 2018
Pension Plan
Defined Benefit Plans and Other Postretirement Benefit Plans
Discount rate for net periodic benefit cost	3.35%	4.04%
Rate of increase in compensation levels	3.50%	3.50%
Long-term expected rate of return on assets	7.00%	7.00%
Postretirement Health Plan
Defined Benefit Plans and Other Postretirement Benefit Plans
Discount rate for net periodic benefit cost	2.93%	3.81%
Rate of increase in compensation levels	0.00%	0.00%
Long-term expected rate of return on assets	0.00%	0.00%

Pension and Other Postretirement Benefits Narrative (Details)	3 Months Ended
	Oct. 31, 2019 USD ($)
Pension Plan
Defined Benefit Plans and Other Postretirement Benefit Plans
Employer contributions	$ 0
Estimated contributions in remainder of current fiscal year	$ 0
Postretirement Health Plan
Defined Benefit Plans and Other Postretirement Benefit Plans
Medical Cost Trend Assumption	7.35%
Ultimate Health Care Cost Trend Rate	4.50%
Year that Rate Reaches Ultimate Trend Rate	2038

Operating Segments Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2019	Oct. 31, 2018
Revenue by Principal Product
Net Sales	$ 71,122	$ 66,143
Business to Business Products
Revenue by Principal Product
Net Sales	26,478	25,326
Business to Business Products \| Cat Litter
Revenue by Principal Product
Net Sales	3,697	3,215
Business to Business Products \| Industrial and Sports
Revenue by Principal Product
Net Sales	0	0
Business to Business Products \| Agricultural and Horticultural
Revenue by Principal Product
Net Sales	5,719	6,052
Business to Business Products \| Bleaching Clay and Fluids Purification
Revenue by Principal Product
Net Sales	12,223	11,895
Business to Business Products \| Animal Health and Nutrition
Revenue by Principal Product
Net Sales	4,839	4,164
Retail and Wholesale Products
Revenue by Principal Product
Net Sales	44,644	40,817
Retail and Wholesale Products \| Cat Litter
Revenue by Principal Product
Net Sales	36,379	32,395
Retail and Wholesale Products \| Industrial and Sports
Revenue by Principal Product
Net Sales	7,600	7,777
Retail and Wholesale Products \| Agricultural and Horticultural
Revenue by Principal Product
Net Sales	0	0
Retail and Wholesale Products \| Bleaching Clay and Fluids Purification
Revenue by Principal Product
Net Sales	665	645
Retail and Wholesale Products \| Animal Health and Nutrition
Revenue by Principal Product
Net Sales	$ 0	$ 0

Operating Segments (Details) - USD ($) $ in Thousands	3 Months Ended
Operating Segments (Details) - USD ($) $ in Thousands	Oct. 31, 2019	Oct. 31, 2018	Jul. 31, 2019
Segment Reporting Information
Assets	$ 209,742		$ 205,227
Net Sales	71,122	$ 66,143
Corporate Expenses	(7,535)	(6,038)
Income from Operations	4,121	1,003
Total Other Expense, Net	(44)	(119)
Income before Income Taxes	4,077	884
Income Tax (Expense) Benefit	(617)	50
Net Income	3,460	934
Net (Loss) Income Attributable to Noncontrolling Interest	(76)	28
Net Income Attributable to Oil-Dri	3,536	906
Business to Business Products
Segment Reporting Information
Assets	65,074		66,655
Segment Income	8,296	7,032
Net Sales	26,478	25,326
Retail and Wholesale Products
Segment Reporting Information
Assets	95,782		95,593
Segment Income	3,360	9
Net Sales	44,644	$ 40,817
Unallocated Assets
Segment Reporting Information
Assets	$ 48,886		$ 42,979

Operating Segments Narrative (Details)	3 Months Ended
Operating Segments Narrative (Details)	Oct. 31, 2019 segment
Segment Reporting Information
Number of Reportable Segments	2

Stock-Based Compensation Summary of Restricted Stock Transactions (Details) - Restricted Stock shares in Thousands	3 Months Ended
	Oct. 31, 2019 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award
Non-vested restricted stock outstanding, beginning balance \| shares	414
Granted, number of shares \| shares	19
Vested, number of shares \| shares	(39)
Forfeitures, number of shares \| shares	(1)
Non-vested restricted stock outstanding, ending balance \| shares	393
Non-vested restricted stock outstanding, weighted average grant date fair value, beginning balance \| $ / shares	$ 33.09
Granted, weighted average grant date fair value \| $ / shares	33.29
Vested, weighted average grant date fair value \| $ / shares	32.26
Forfeitures, weighted average grant date fair value \| $ / shares	34.35
Non-vested restricted stock outstanding, weighted average grant date fair value, ending balance \| $ / shares	$ 33.17

Stock-Based Compensation Narrative (Details) - USD ($)	3 Months Ended
Stock-Based Compensation Narrative (Details) - USD ($)	Oct. 31, 2019	Oct. 31, 2018
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award
Granted, number of shares	19,000
2006 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Number Authorized (shares)	937,500
2006 Plan \| Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award
Award Vesting Period, Minimum (years)	1
Award Vesting Period, Maximum (years)	5 years
Share-based Compensation Expense	$ 969,000	$ 660,000
2006 Plan \| Restricted Stock \| Common Stock
Share-based Compensation Arrangement by Share-based Payment Award
Granted, number of shares	19,000	23,000
2006 Plan \| Restricted Stock \| Common Class B
Share-based Compensation Arrangement by Share-based Payment Award
Granted, number of shares	0	126,000

Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2019	Oct. 31, 2018
Accumulated Other Comprehensive (Loss) Income
Accumulated Other Comprehensive (Loss) Income, Balance, beginning	$ (15,039)
Other comprehensive loss before reclassifications, net of tax	(44)
Amounts reclassified from accumulated other comprehensive income, net of tax	271
Net current-period other comprehensive income (loss), net of tax	(227)	$ (103)
Accumulated Other Comprehensive (Loss) Income, Balance, ending	(14,812)
Pension and Postretirement Health Benefits
Accumulated Other Comprehensive (Loss) Income
Accumulated Other Comprehensive (Loss) Income, Balance, beginning	(14,891)
Other comprehensive loss before reclassifications, net of tax	0
Amounts reclassified from accumulated other comprehensive income, net of tax	271
Net current-period other comprehensive income (loss), net of tax	(271)
Accumulated Other Comprehensive (Loss) Income, Balance, ending	(14,620)
Cumulative Translation Adjustment
Accumulated Other Comprehensive (Loss) Income
Accumulated Other Comprehensive (Loss) Income, Balance, beginning	(148)
Other comprehensive loss before reclassifications, net of tax	(44)
Amounts reclassified from accumulated other comprehensive income, net of tax	0
Net current-period other comprehensive income (loss), net of tax	44
Accumulated Other Comprehensive (Loss) Income, Balance, ending	$ (192)

Accumulated Other Comprehensive (Loss) Income Narrative (Details)	3 Months Ended
	Oct. 31, 2019 USD ($)
Accumulated Other Comprehensive (Loss) Income
Tax for reclassification adjustment from AOCI for pension and other postretirement benefits	$ 85,440

Related Party Transactions (Details) - Director - USD ($)	3 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Jul. 31, 2019
Related Party Transaction
Net sales to related party	$ 111,000	$ 97,000
Accounts receivable from related party	8,000		$ 10,000
Payments to related party	38,000	$ 46,000
Accounts payable to related party	$ 0		$ 0