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INCOME TAXES (Tables) | 12 Months Ended
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Oct. 31, 2018
Income Tax Disclosure [Abstract] |
Schedule of Income Taxes Provision (Benefit) | In the fiscal years set forth below, the provision for income taxes consisted of the following (in thousands):
|  | Year Ended October 31, |
|  | 2018 |  |  | 2017 |  |  | 2016 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
U.S. taxes |  | $ | 6,333 |  |  | $ | 308 |  |  | $ | 1,362 |
Foreign taxes |  |  | 5,203 |  |  |  | 4,185 |  |  |  | 4,456 |
|  |  | 11,536 |  |  |  | 4,493 |  |  |  | 5,818 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
U.S. taxes |  |  | (326 | ) |  |  | 1,236 |  |  |  | (176 | )
Foreign taxes |  |  | (204 | ) |  |  | (128 | ) |  |  | (49 | )
|  |  | (530 | ) |  |  | 1,108 |  |  |  | (225 | )
|  | $ | 11,006 |  |  | $ | 5,601 |  |  | $ | 5,593 |
Schedule of Reconciliation of Statutory Tax Rate to Effective Tax Rate | A comparison of income tax expense at the U.S. statutory rate to the Company’s effective tax rate is as follows (dollars in thousands):
|  | Year Ended October 31, |
|  | 2018 |  |  | 2017 |  |  | 2016 |
Income before income taxes: |  |  |  |  |  |  |  |  |  |  |  |
Domestic |  | $ | 14,101 |  |  | $ | 5,477 |  |  | $ | 2,703 |
Foreign |  |  | 18,395 |  |  |  | 15,239 |  |  |  | 16,182 |
|  | $ | 32,496 |  |  | $ | 20,716 |  |  | $ | 18,885 |
Tax rates: |  |  |  |  |  |  |  |  |  |  |  |
U.S. statutory rate |  |  | 23 | % |  |  | 34 | % |  |  | 34 | %
Effect of tax rate of international jurisdictions different than U.S. statutory rates |  |  | 2 | % |  |  | (5 | )% |  |  | (7 | )%
Valuation allowance |  |  | 0 | % |  |  | 1 | % |  |  | 3 | %
State taxes |  |  | 0 | % |  |  | 0 | % |  |  | 0 | %
Tax Credits |  |  | (1 | )% |  |  | (3 | )% |  |  | (2 | )%
Effect of Tax Rate Changes |  |  | 4 | % |  |  | 0 | % |  |  | 4 | %
Transition Tax |  |  | 7 | % |  |  | 0 | % |  |  | 0 | %
Other |  |  | (1 | )% |  |  | 0 | % |  |  | (2 | )%
Effective tax rate |  |  | 34 | % |  |  | 27 | % |  |  | 30 | %
Schedule of Deferred Tax Assets and Liabilities | Significant components of our deferred tax assets and liabilities at October 31, 2018 and 2017 were as follows (in thousands):
|  | October 31, |
|  | 2018 |  |  | 2017 |
Deferred Tax Assets: |  |  |  |  |  |  |  |
Accrued inventory reserves |  | $ | 1,325 |  |  | $ | 1,965 |
Accrued warranty expenses |  |  | 499 |  |  |  | 438 |
Compensation related expenses |  |  | 2,644 |  |  |  | 2,952 |
Net derivative instruments |  |  | – |  |  |  | 417 |
Unrealized exchange gain/loss |  |  | 159 |  |  |  | – |
Other accrued expenses |  |  | 170 |  |  |  | 187 |
Net operating loss carryforwards |  |  | 1,316 |  |  |  | 1,722 |
Other credit carryforwards |  |  | 686 |  |  |  | 517 |
Other |  |  | 350 |  |  |  | 404 |
|  |  | 7,149 |  |  |  | 8,602 |
Less: Valuation allowance – net operating loss and other credit carryforwards |  |  | (2,106 | ) |  |  | (2,282 | )
Deferred tax assets |  |  | 5,043 |  |  |  | 6,320 |
Deferred Tax Liabilities: |  |  |  |  |  |  |  |
Net derivative instruments |  |  | (208 | ) |  |  | – |
Property and equipment and capitalized software development costs |  |  | (2,370 | ) |  |  | (3,241 | )
Unrealized exchange gain/loss |  |  | – |  |  |  | (116 | )
Other |  |  | (231 | ) |  |  | (624 | )
Net deferred tax assets |  | $ | 2,234 |  |  | $ | 2,339 |
Schedule of Income Tax Expense | A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding the related accrual for interest or penalties, is as follows (in thousands):
|  | 2018 |  |  | 2017 |  |  | 2016 |
Balance, beginning of year |  | $ | 1,101 |  |  | $ | 1,102 |  |  | $ | 1,034 |
Additions based on tax positions related to the current year |  |  | 37 |  |  |  | 37 |  |  |  | 52 |
Additions (reductions) related to prior year tax positions |  |  | (945 | ) |  |  | (20 | ) |  |  | 19 |
Reductions due to statute expiration |  |  | (18 | ) |  |  | (74 | ) |  |  | – |
Other |  |  | 5 |  |  |  | 56 |  |  |  | (3 | )
Balance, end of year |  | $ | 180 |  |  | $ | 1,101 |  |  | $ | 1,102 |
Summary of open tax years by major jurisdiction | A summary of open tax years by major jurisdiction is presented below:
United States federal |  | Fiscal 2015 through the current period
Germany¹ |  | Fiscal 2013 through the current period
Taiwan |  | Fiscal 2015 through the current period
¹ Includes federal as well as state, provincial or similar local jurisdictions, as applicable.

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