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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 12 Months Ended
Oct. 31, 2018
Accounting Policies [Abstract]  
Schedule of Fair Value of Derivative Instruments
 
 
2018
 
 
2017
 
 
 
Balance Sheet
 
Fair
 
 
Balance Sheet
 
Fair
 
Derivatives
 
Location
 
Value
 
 
Location
 
Value
 
Designated as Hedging Instruments:
 
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange forward contracts
 
Derivative assets
 
$
2,654
 
 
Derivative assets
 
$
305
 
Foreign exchange forward contracts
 
Derivative liabilities
 
$
1,616
 
 
Derivative liabilities
 
$
1,508
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Not Designated as Hedging Instruments:
 
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange forward contracts
 
Derivative assets
 
$
431
 
 
Derivative assets
 
$
291
 
Foreign exchange forward contracts
 
Derivative liabilities
 
$
404
 
 
Derivative liabilities
 
$
224
 
Schedule of Effect of Derivative Instruments on the Consolidated Balance Sheets, Statements of Changes in Shareholders' Equity and Statements of Income
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, 2018, 2017, and 2016 (in thousands):
 
 
 
Amount of Gain (Loss)
 
 
Location of Gain (Loss)
 
 
Amount of Gain (Loss)
 
 
 
Recognized in
 
 
Reclassified from
 
 
Reclassified from
 
 
 
Other Comprehensive
 
 
Other Comprehensive
 
 
Other Comprehensive
 
Derivatives
 
Income (Loss)
 
 
Income (Loss)
 
 
Income (Loss)
 
 
 
2018
 
 
2017
 
 
2016
 
 
 
 
 
 
2018
 
 
2017
 
 
2016
 
 
Designated as Hedging Instruments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Effective Portion)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange forward contracts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of sales
Cost of sales
 
 
 
 
 
 
 
 
 
 
 
 
 
 
– Intercompany sales/purchases
 
$
155
 
 
$
(709
)
 
$1,431
 
 
 
and service
 
 
$
(1,355
)
 
$
1,354
 
 
$
 
1,647
 
Foreign exchange forward contract
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
– Net Investment
 
$
136
 
 
$
(96
)
 
$
28
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Schedule of Effect of Derivative Instruments Not Designated as Hedging Instrument on the Statements of Income
We recognized the following gains and losses in our Consolidated Statements of Income during the fiscal years ended October 31, 2018, 2017, and 2016 on derivative instruments not designated as hedging instruments (in thousands):
 
 
 
Location of Gain (Loss)
 
 
Amount of Gain (Loss)
 
Derivatives
 
Recognized in Operations
 
 
Recognized in Operations
 
 
 
 
 
 
2018
 
 
2017
 
 
2016 
 
Not Designated as Hedging Instruments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange forward contracts
 
Other expense, net
 
 
$
(963
)
 
$
(1,001
)
 
$
536
 
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, 2018 and 2017 (in thousands):
 
 
 
Foreign
 
 
Cash
 
 
 
 
 
 
Currency
 
 
Flow
 
 
 
 
 
 
Translation
 
 
Hedges
 
 
Total
 
Balance, October 31, 2016
 
$
(12,325
)
 
$
1,282
 
 
$
(11,043
)
Other comprehensive income (loss) before reclassifications
 
 
4,916
 
 
 
(709
)
 
 
4,207
 
Reclassifications
 
 
–
 
 
 
(1,354
)
 
 
(1,354
)
Balance, October 31, 2017
 
$
(7,409
)
 
$
(781
)
 
$
(8,190
)
Other comprehensive income (loss) before reclassifications
 
 
(3,183
)
 
 
155
 
 
 
(3,028
)
Reclassifications
 
 
–
 
 
 
1,355
 
 
 
1,355
 
Balance, October 31, 2018
 
$
(10,592
)
 
$
729
 
 
$
(9,863
)
Schedule of Property and Equipment Estimated Useful Lives
 
Number of Years
Land
Indefinite
Building
40
Machines
7
–
10
Shop and office equipment
3
–
7
Building & leasehold improvements
3
–
40
Schedule of Estimated Amortization Expense
Estimated amortization expense for the remaining unamortized software development costs for the fiscal years ending October 31, is as follows (in thousands):
 
Fiscal Year
 
Amortization Expense
 
2019
 
 
1,000
 
2020
 
 
1,300
 
2021
 
 
1,500
 
2022
 
 
1,400
 
2023
 
 
1,050
 
Schedule of Intangible Assets
As of October 31, 2018, 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
 
indefinite
 
$
60
 
 
$
–
 
 
$
60
 
Tradenames and trademarks
 
13 years
 
 
238
 
 
 
(98
)
 
 
140
 
Customer relationships
 
15 years
 
 
255
 
 
 
(148
)
 
 
107
 
Technology
 
13 years
 
 
692
 
 
 
(284
)
 
 
408
 
Patents
 
6 years
 
 
2,973
 
 
 
(2,790
)
 
 
183
 
Other
 
8 years
 
 
377
 
 
 
(337
)
 
 
40
 
Total
 
 
 
$
4,595
 
 
$
(3,657
)
 
$
938
 
 
As of October 31, 2017, 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
 
indefinite
 
$
60
 
 
$
–
 
 
$
60
 
Tradenames and trademarks
 
13 years
 
 
245
 
 
 
(81
)
 
 
164
 
Customer relationships
 
15 years
 
 
257
 
 
 
(132
)
 
 
125
 
Technology
 
13 years
 
 
713
 
 
 
(239
)
 
 
474
 
Patents
 
6 years
 
 
2,973
 
 
 
(2,765
)
 
 
208
 
Other
 
8 years
 
 
378
 
 
 
(333
)
 
 
45
 
Total
 
 
 
$
4,626
 
 
$
(3,550
)
 
$
1,076
 
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,
 
(in thousands, except per share amounts)
 
2018
 
 
2017
 
 
2016
 
 
 
Basic
 
 
Diluted
 
 
Basic
 
 
Diluted
 
 
Basic
 
 
Diluted
 
Net income
 
$
21,490
 
 
$
21,490
 
 
$
15,115
 
 
$
15,115
 
 
$
13,292
 
 
$
13,292
 
Undistributed earnings allocated to participating shares
 
 
(132
)
 
 
(132
)
 
 
(100
)
 
 
(100
)
 
 
(76
)
 
 
(76
)
Net income applicable to common  Shareholders
 
$
21,358
 
 
$
21,358
 
 
$
15,015
 
 
$
15,015
 
 
$
13,216
 
 
$
13,216
 
Weighted average shares outstanding
 
 
6,700
 
 
 
6,700
 
 
 
6,615
 
 
 
6,615
 
 
 
6,569
 
 
 
6,569
 
Stock options and contingently issuable securities
 
 
–
 
 
 
71
 
 
 
–
 
 
 
65
 
 
 
–
 
 
 
73
 
 
 
 
6,700
 
 
 
6,771
 
 
 
6,615
 
 
 
6,680
 
 
 
6,569
 
 
 
6,642
 
Income per share
 
$
3.19
 
 
$
3.15
 
 
$
2.27
 
 
$
2.25
 
 
$
2.01
 
 
$
1.99