RELATED PARTY TRANSACTIONS

12 Months Ended

Oct. 31, 2014

10. RELATED PARTY TRANSACTIONS

As of October 31, 2014, we owned approximately 35% of the outstanding shares of a Taiwanese-based contract manufacturer, Hurco Automation, Ltd. (HAL). HAL's scope of activities includes the design, manufacture, sales and distribution of industrial automation products, software systems and related components, including control systems and components produced under contract for sale exclusively to us. We are accounting for this investment using the equity method. The investment of $3.1 million and $2.7 million at October 31, 2014 and 2013 is included in Investments and other assets, net on the Consolidated Balance Sheets. Purchases of product from HAL amounted to $9.3 million, $9.8 million and $10.2 million in 2014, 2013 and 2012, respectively. Sales of product to HAL were $1.4 million, $1.5 million and $1.8 million for the years ended October 31, 2014, 2013 and 2012, respectively. Trade payables to HAL were $2.3 million and $1.3 million at October 31, 2014 and 2013, respectively. Trade receivables from HAL were $255,000 and $287,000 at October 31, 2014 and 2013, respectively.

Summary unaudited financial information for HAL's operations and financial conditions is as follows (in thousands):

	2014		2013		2012

Net Sales	$	12,063	$	12,312	$	12,252
Gross Profit		1,759		1,949		1,735
Operating Income (Loss)		468		544		340
Net Income (Loss)		1,264		747		882

Current Assets	$	10,469	$	8,755	$	7,091
Non-current Assets		3,065		2,820		2,610
Current Liabilities		3,637		2,846		1,702

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

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