Summary of Significant Accounting Policies

9 Months Ended

Jul. 31, 2021

Summary of Significant Accounting Policies

Comprehensive Income (Loss)

Comprehensive income (loss) represents all changes in a company’s net assets, except changes resulting from transactions with stockholders. Other comprehensive income or loss primarily includes foreign currency translation items and defined benefit pension items. Accumulated other comprehensive (loss) income is reported as a component of the Company's stockholders' equity.

The following tables summarizes the changes in other comprehensive (loss) income by component (in thousands):


	Three Months Ended July 31,
	2021						2020
	Pre-tax Amount		Tax Expense		Net Amount		Pre-tax Amount		Tax Expense		Net Amount
Foreign currency translation adjustments	$	(1,042)	$	—	$	(1,042)	$	1,410	$	—	$	1,410
Minimum pension liability adjustments:
Other comprehensive gain before reclassifications	185		(50)		135		185		(50)		135


Other comprehensive (loss) income	$	(857)	$	(50)	$	(907)	$	1,595	$	(50)	$	1,545

2. Summary of Significant Accounting Policies (continued)


	Nine Months Ended July 31,
	2021						2020
	Pre-tax Amount		Tax Expense		Net Amount		Pre-tax Amount		Tax Expense		Net Amount
Foreign currency translation adjustments	$	330	$	—	$	330	$	(476)	$	—	$	(476)
Minimum pension liability adjustments:
Other comprehensive gain before reclassifications	553		(150)		403		480		(150)		330
Available-for-sale securities:
Amounts reclassified to earnings included in "Selling, general and administrative"	—		—		—		—		140		140
Other comprehensive income (loss)	$	883	$	(150)	$	733	$	4	$	(10)	$	(6)

The following table summarizes the changes in accumulated other comprehensive (loss) income by component (in thousands):


	Foreign Currency Translation (Loss) Income		Defined Benefit Pension Plan		Available-for-Sale Securities		Accumulated Other Comprehensive (Loss) Income
Balance as of October 31, 2020	$	(3,069)	$	(4,479)	$	—	$	(7,548)
Other comprehensive income	330		403		—		733
Balance as of July 31, 2021	$	(2,739)	$	(4,076)	$	—	$	(6,815)


	Foreign Currency Translation Loss		Defined Benefit Pension Plan		Available-for-Sale Securities		Accumulated Other Comprehensive Loss
Balance as of October 31, 2019	$	(2,362)	$	(4,753)	$	(140)	$	(7,255)
Other comprehensive (loss) income	(476)		330		140		(6)
Balance as of July 31, 2020	$	(2,838)	$	(4,423)	$	—	$	(7,261)

Recent Accounting Pronouncements

FASB ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, and related ASUs

This amendment requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses.

ASU 2016-13 is effective for SEC filers for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company adopted this ASU effective November 1, 2020 and the adoption did not have a material impact on its consolidated financial statements.

FASB ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity

This amendment simplifies accounting for convertible instruments by removing major separation models currently required under GAAP. Consequently, more convertible debt instruments will be reported as a single liability instrument and more convertible preferred stock as a single equity instrument with no separate accounting for embedded conversion features. The ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, which will permit more equity contracts to qualify for it. The ASU also simplifies the diluted earnings per share (EPS) calculation in certain areas.

ASU 2020-06 is effective for public business entities that meet the definition of a SEC filer for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2020. The Company is evaluating the effect this ASU may have on its consolidated financial statements.