SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Oct. 31, 2015

Schedule of Fair Value of Derivative Instruments

As of October 31, 2015 and October 31, 2014, all derivative instruments were recorded at fair value on the balance sheets as follows (in thousands):

	2015			2014
	Balance Sheet	Fair		Balance Sheet	Fair
Derivatives	Location	Value		Location	Value

Designated as Hedging Instruments:
Foreign exchange forward contracts	Derivative assets	$	1,079	Derivative assets	$	2,596
Foreign exchange forward contracts	Derivative liabilities	$	1,027	Derivative liabilities	$	401

Not Designated as Hedging Instruments:
Foreign exchange forward contracts	Derivative assets	$	149	Derivative assets	$	531
Foreign exchange forward contracts	Derivative liabilities	$	44	Derivative liabilities	$	304

Schedule of Effect of Derivative Instruments on the Consolidated Balance Sheets, Statements of Changes in Shareholders' Equity and Statements of Operations

Derivative instruments had the following effects on our Consolidated Balance Sheets, Statements of Changes in Shareholders’ Equity and Statements of Income, net of tax, during the fiscal years ended October 31, 2015 and 2014 (in thousands):

Derivatives	Amount of Gain (Loss) Recognized in Other Comprehensive Income				Location of Gain (Loss) Reclassified from Other Comprehensive Income	Amount of Gain (Loss) Reclassified from Other Comprehensive Income
	2015		2014			2015		2014
Designated as Hedging Instruments:
(Effective Portion)

Foreign exchange forward contracts – Intercompany sales/purchases	$	1,291	$	830	Cost of sales and service	$	784	$	(1,129)

Foreign exchange forward contract – Net Investment	$	304	$	207

We recognized a gain of $14,000 during the fiscal year ended October 31, 2015 and a gain of $16,000 during the fiscal year ended October 31, 2014 as a result of contracts closed early that were deemed ineffective for financial reporting and did not quality for cash flow hedges.

Derivatives	Location of Gain (Loss) Recognized in Operations	Amount of Gain (Loss) Recognized in Operations
		2015		2014
		(in thousands)
Not Designated as Hedging Instruments:
Foreign exchange forward contracts	Other income (expense)	$	2,571	$	1,657

Schedule of Accumulated Other Comprehensive Loss

The following table presents the changes in the components of Accumulated other comprehensive loss, net of tax, for the fiscal years ended October 31, 2015 and 2014 (in thousands):

	Foreign Currency Translation		Cash Flow Hedges		Total

Balance, October 31, 2013		(1,016)		(968)		(1,984)
Other comprehensive income (loss) before reclassifications		(3,535)		830		(2,705)
Reclassifications		—		1,129		1,129
Balance, October 31, 2014	$	(4,551)	$	991	$	(3,560)
Other comprehensive income (loss) before reclassifications		(6,333)		1,291		(5,042)
Reclassifications		—		(784)		(784)
Balance, October 31, 2015	$	(10,884)	$	1,498	$	(9,386)

Schedule of Property and Equipment Estimated Useful Lives

Depreciation and amortization of assets are provided primarily under the straight-line method over the shorter of the estimated useful lives or the lease terms as follows:

		Number of Years
Land		Indefinite
Building		40
Machines		7 – 10
Shop and office equipment		3 – 7
Leasehold improvements		3 – 40

Schedule of Estimated Amortization Expense

Estimated amortization expense for the existing amortizable intangible assets for the fiscal years ending October 31, is as follows (in thousands):

Fiscal Year	Amortization Expense
2016	$	1,175
2017		1,175
2018		975
2019		400
2020		150

Schedule of Goodwill

The changes in the carrying amounts of goodwill for the years ended October 31, 2015 and 2014 were as follows (in thousands):

Balance as of October 31, 2014	$	2,606
Impact of foreign currency translation		(287)
Balance as of October 31, 2015	$	2,319

Schedule of Intangible Assets

As of October 31, 2015, the balances of intangible assets, other than goodwill, were as follows (in thousands):

	Weighted Average Amortization Period	Gross Intangible Assets		Accumulated Amortization		Net Intangible Assets

Tradenames and trademarks	13 years	$	231	$	(41)	$	190
Tradenames and trademarks	indefinite		60		—		60
Customer relationships	15 years		254		(97)		157
Technology	13 years		674		(121)		553
Patents	6 years		2,972		(2,717)		255
Other	8 years		373		(299)		74
Total		$	4,564	$	(3,275)	$	1,289

As of October 31, 2014, the balances of intangible assets, other than goodwill, were as follows (in thousands):

	Weighted Average Amortization Period	Gross Intangible Assets		Accumulated Amortization		Net Intangible Assets

Tradenames and trademarks	13 years	$	263	$	(27)	$	236
Tradenames and trademarks	indefinite		60		—		60
Customer relationships	15 years		260		(81)		179
Technology	13 years		766		(78)		688
Patents	6 years		2,972		(2,632)		340
Other	8 years		383		(251)		132
Total		$	4,704	$	(3,069)	$	1,635

Reconciliation of Basic and Diluted Earnings Per Share

The following table presents a reconciliation of our basic and diluted earnings per share computation:

	Fiscal Year Ended October 31,
	2015				2014				2013
(in thousands, except per share amount)	Basic		Diluted		Basic		Diluted		Basic		Diluted

Net income	$	16,214	$	16,214	$	15,143	$	15,143	$	8,190	$	8,190
Undistributed earnings allocated to participating shares		(93)		(93)		(121)		(121)		(86)		(86)
Net income applicable to common shareholders	$	16,121	$	16,121	$	15,022	$	15,022	$	8,104	$	8,104
Weighted average shares outstanding		6,543		6,543		6,497		6,497		6,455		6,455
Stock options and contingently issuable securities		—		59		—		41		—		42
		6,543		6,602		6,497		6,538		6,455		6,497
Income per share	$	2.46	$	2.44	$	2.31	$	2.30	$	1.26	$	1.25