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v3.19.3.a.u2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended
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Oct. 31, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Schedule of Fair Value of Derivative Instruments |
|  | 2019 |  | 2018
|  | Balance Sheet |  | Fair |  | Balance Sheet |  | Fair
Derivatives |  | Location |  | Value |  | Location |  | Value
Designated as Hedging Instruments: |  |  |  |  |  |  |  |  |  |
Foreign exchange forward contracts |  | Derivative assets |  | $ | 751 |  | Derivative assets |  | $ | 2,654
Foreign exchange forward contracts |  | Derivative liabilities |  | $ | 99 |  | Derivative liabilities |  | $ | 1,616
Not Designated as Hedging Instruments: |  |  |  |  |  |  |  |  |  |
Foreign exchange forward contracts |  | Derivative assets |  | $ | 640 |  | Derivative assets |  | $ | 431
Foreign exchange forward contracts |  | Derivative liabilities |  | $ | 289 |  | Derivative liabilities |  | $ | 404
Schedule of Effect of Derivative Instruments on the 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, 2019, 2018, and 2017 (in thousands):
|  |  |  |  |  |  |  |  |  |  | Location of |  |  |  |  |  |  |  |  |
|  | Amount of Gain (Loss) |  | Gain (Loss) |  | Amount of Gain (Loss)
|  | Recognized in |  | Reclassified |  | Reclassified from
|  | Other Comprehensive |  | From Other |  | Other Comprehensive
|  | Income (Loss) |  | Comprehensive |  | Income (Loss)
Derivatives |  | 2019 |  | 2018 |  | 2017 |  | Income (Loss) |  | 2019 |  | 2018 |  | 2017
Designated as Hedging Instruments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(Effective Portion) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange forward contracts |  |  |  |  |  |  |  |  |  |  | Cost of sales |  |  |  |  |  |  |  |  |
– Intercompany sales/purchases |  | $ | 615 |  | $ | 155 |  | $ | (709) |  | and service |  | $ | 235 |  | $ | (1,355) |  | $ | 1,354
– Net Investment |  | $ | 128 |  | $ | 136 |  | $ | (96) |  |  |  |  |  |  |  |  |  |  |
Schedule of Derivatives Not Designated as Hedging Instruments | We recognized the following gains and losses in our Consolidated Statements of Income during the fiscal years ended October 31, 2019, 2018, and 2017 on derivative instruments not designated as hedging instruments (in thousands):
|  |  |  | Amount of Gain (Loss)
|  | Location of Gain (Loss) |  | Recognized in Operations
Derivatives |  | Recognized in Operations |  | 2019 |  | 2018 |  | 2017
Not Designated as Hedging Instruments: |  |  |  |  |  |  |  |  |  |  |
Foreign exchange forward contracts |  | Other expense, net |  | $ | 514 |  | $ | (963) |  | $ | (1,001)
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, 2019 and 2018 (in thousands):
|  | Foreign |  | Cash |  |  |
|  | Currency |  | Flow |  |  |
|  | Translation |  | Hedges |  | Total
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)
Other comprehensive income (loss) before reclassifications |  |  | 550 |  |  | 615 |  |  | 1,165
Reclassifications |  |  | — |  |  | (235) |  |  | (235)
Balance, October 31, 2019 |  | $ | (10,042) |  | $ | 1,109 |  | $ | (8,933)
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
2020 |  | $ | 1,500
2021 |  |  | 1,950
2022 |  |  | 1,900
2023 |  |  | 1,550
2024 |  |  | 1,000
Schedule of changes in the carrying amount of goodwill |
Balance as of October 31, 2018 |  | $ | 2,377
Goodwill acquired |  |  | 3,500
Impact of foreign currency translation |  |  | (30)
Balance as of October 31, 2019 |  | $ | 5,847
Schedule of Intangible Assets | As of October 31, 2019, the balances of intangible assets, other than goodwill, were as follows (in thousands):
|  | Weighted |  |  |  |  |  |  |  |  |
|  | Average |  | Gross |  |  |  |  |  |
|  | Amortization |  | Intangible |  | Accumulated |  | Net Intangible
|  | Period |  | Assets |  | Amortization |  | Assets
Tradenames and trademarks |  | indefinite |  | $ | 60 |  | $ | — |  | $ | 60
Tradenames and trademarks |  | 13 | years |  |  | 408 |  |  | (114) |  |  | 294
Customer relationships |  | 15 | years |  |  | 372 |  |  | (173) |  |  | 199
Technology |  | 13 | years |  |  | 683 |  |  | (333) |  |  | 350
Patents |  | 6 | years |  |  | 2,972 |  |  | (2,813) |  |  | 159
Other |  | 8 | years |  |  | 375 |  |  | (341) |  |  | 34
Total |  |  |  |  | $ | 4,870 |  | $ | (3,774) |  | $ | 1,096
As of October 31, 2018, the balances of intangible assets, other than goodwill, were as follows (in thousands):
|  | Weighted |  |  |  |  |  |  |  |  |
|  | Average |  | Gross |  |  |  |  |  |
|  | Amortization |  | Intangible |  | Accumulated |  | Net Intangible
|  | Period |  | Assets |  | Amortization |  | 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
Schedule of computation of basic and diluted net income per share | The following table presents a reconciliation of our basic and diluted earnings per share computation:
|  | Fiscal Year Ended October 31,
|  | 2019 |  | 2018 |  | 2017
(in thousands, except per share amounts) |  | Basic |  | Diluted |  | Basic |  | Diluted |  | Basic |  | Diluted
Net income |  | $ | 17,495 |  | $ | 17,495 |  | $ | 21,490 |  | $ | 21,490 |  | $ | 15,115 |  | $ | 15,115
Undistributed earnings allocated to participating shares |  |  | (147) |  |  | (147) |  |  | (132) |  |  | (132) |  |  | (100) |  |  | (100)
Net income applicable to common Shareholders |  | $ | 17,348 |  | $ | 17,348 |  | $ | 21,358 |  | $ | 21,358 |  | $ | 15,015 |  | $ | 15,015
Weighted average shares outstanding |  |  | 6,759 |  |  | 6,759 |  |  | 6,700 |  |  | 6,700 |  |  | 6,615 |  |  | 6,615
Stock options and contingently issuable securities |  |  | — |  |  | 56 |  |  | — |  |  | 71 |  |  | — |  |  | 65
|  |  | 6,759 |  |  | 6,815 |  |  | 6,700 |  |  | 6,771 |  |  | 6,615 |  |  | 6,680
Income per share |  | $ | 2.57 |  | $ | 2.55 |  | $ | 3.19 |  | $ | 3.15 |  | $ | 2.27 |  | $ | 2.25

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