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RELATED PARTY TRANSACTIONS
 12 Months Ended
Oct. 31, 2015
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS
11.
RELATED PARTY TRANSACTIONS
 
As of October 31, 2015, 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 $3.0 million and $3.1 million at October 31, 2015 and 2014 is included in Investments and other assets, net on the Consolidated Balance Sheets. Purchases of product from HAL amounted to $8.9 million, $9.3 million and $9.8 million in 2015, 2014 and 2013, respectively. Sales of product to HAL were $723,000, $1.4 million and $1.5 million for the years ended October 31, 2015, 2014 and 2013, respectively. Trade payables to HAL were $1.8 million and $2.3 million at October 31, 2015 and 2014, respectively. Trade receivables from HAL were $55,000 and $255,000 at October 31, 2015 and 2014, respectively.
 
Summary unaudited financial information for HAL’s operations and financial conditions is as follows (in thousands):
 
 
 
2015
 
2014
 
2013
 
 
 
 
 
 
 
 
 
 
 
 
Net Sales
 
$
12,852
 
$
12,063
 
$
12,312
 
Gross Profit
 
 
2,041
 
 
1,759
 
 
1,949
 
Operating Income (Loss)
 
 
665
 
 
468
 
 
544
 
Net Income (Loss)
 
 
1,546
 
 
1,264
 
 
747
 
 
 
 
 
 
 
 
 
 
 
 
Current Assets
 
$
10,262
 
$
10,469
 
$
8,755
 
Non-current Assets
 
 
3,087
 
 
3,065
 
 
2,820
 
Current Liabilities
 
 
3,472
 
 
3,637
 
 
2,846