SEGMENT INFORMATION

12 Months Ended

Oct. 31, 2018

14.

SEGMENT INFORMATION

We operate in a single segment: industrial automation equipment. We design, manufacture and sell computerized (i.e., Computer Numeric Control) machine tools, consisting primarily of vertical machining centers (mills) and turning centers (lathes), to companies in the metal cutting industry through a worldwide sales, service and distribution network. Although the majority of our computer control systems and software products are proprietary, they predominantly use industry standard personal computer components. Our computer control systems and software products are primarily sold as integral components of our computerized machine tool products. We also provide machine tool components, software options, control upgrades, accessories and replacement parts for our products, as well as customer service and training and applications support.

We principally sell our products through more than 173 independent agents and distributors throughout the Americas, Europe and Asia. Our line is the primary line for the majority of our distributors globally even though some may carry competitive products. We also have our own direct sales and service organizations in China, France, Germany, India, Italy, Poland, Singapore, South Africa, Taiwan, the United Kingdom, and certain areas of the United States, which are among the world's principal machine tool consuming countries. During fiscal 2018, no distributor accounted for more than 5% of our sales and service fees. In fiscal 2018, approximately 71% of our revenues were from customers located outside of the U.S. and no single end

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user of our products accounted for more than 5% of our total sales and service fees.

The following table sets forth the contribution of each of our product groups to our total sales and service fees during each of the past three fiscal years (in thousands):

Net Sales and Service Fees by Product Category

	Year ended October 31,
	2018		2017		2016

Computerized Machine Tools	$	261,710	$	209,311	$	195,618
Computer Control Systems and Software †		2,870		2,324		2,078
Service Parts		27,501		24,255		21,908
Service Fees		8,590		7,777		7,685
Total	$	300,671	$	243,667	$	227,289

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Amounts shown do not include computer control systems and software sold as an integrated component of computerized machine systems.

The following table sets forth revenues by geographic area, based on customer location, for each of the past three fiscal years (in thousands):

Revenues by Geographic Area
	Year Ended October 31,
	2018		2017		2016
United States of America	$	87,231	$	70,912	$	70,630
Canada		2,915		3,801		3,881
Central & South Americas		2,194		1,844		1,950
Total Americas		92,340		76,557		76,461

Germany		62,346		48,786		44,411
United Kingdom		34,216		28,019		25,313
Italy		16,691		13,416		12,947
France		15,815		13,917		13,787
Other Europe		32,034		27,583		27,150
Total Europe		161,102		131,721		123,608

China		27,748		22,456		16,644
Other Asia Pacific		17,937		10,238		8,989
Total Asia Pacific		45,685		32,694		25,633

Other Foreign		1,544		2,695		1,587
Grand Total	$	300,671	$	243,667	$	227,289

Long

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lived tangible assets, net by geographic area, were (in thousands):

	As of October 31,
	2018		2017		2016
United States of America	$	8,375	$	7,599	$	7,846
Foreign countries		6,617		6,185		5,911
	$	14,992	$	13,784	$	13,757

Net assets by geographic area were (in thousands):

	As of October 31,
	2018		2017		2016
Americas	$	96,348	$	86,432	$	84,040
Europe		74,558		70,536		60,861
Asia Pacific		51,947		46,117		40,574
	$	222,853	$	203,085	$	185,475