Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Oct. 31, 2015 | Dec. 15, 2015 | Apr. 30, 2015 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Oct. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | HURCO COMPANIES INC | ||
Entity Central Index Key | 315,374 | ||
Current Fiscal Year End Date | --10-31 | ||
Entity Filer Category | Accelerated Filer | ||
Trading Symbol | HURC | ||
Entity Common Stock, Shares Outstanding | 6,559,126 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 212,014,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Sales and service fees | $ 219,383 | $ 222,303 | $ 192,804 |
Cost of sales and service | 150,292 | 153,691 | 137,748 |
Gross profit | 69,091 | 68,612 | 55,056 |
Selling, general and administrative expenses | 45,287 | 46,615 | 41,413 |
Operating income | 23,804 | 21,997 | 13,643 |
Interest expense | 198 | 264 | 280 |
Interest income | 76 | 78 | 74 |
Investment income | 78 | 42 | 21 |
Income from equity investments | 474 | 444 | 228 |
Other (income) expense, net | 681 | 936 | 1,244 |
Income before income taxes | 23,553 | 21,361 | 12,442 |
Provision for income taxes | 7,339 | 6,218 | 4,252 |
Net income | $ 16,214 | $ 15,143 | $ 8,190 |
Income per common share - basic | $ 2.46 | $ 2.31 | $ 1.26 |
Weighted average common shares outstanding - basic | 6,543 | 6,497 | 6,455 |
Income per common share - diluted | $ 2.44 | $ 2.30 | $ 1.25 |
Weighted average common shares outstanding - diluted | 6,602 | 6,538 | 6,497 |
Dividends paid per share | $ 0.31 | $ 0.26 | $ 0.10 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Net Income | $ 16,214 | $ 15,143 | $ 8,190 |
Other comprehensive income (loss): | |||
Translation gain (loss) of foreign currency financial statements | (6,333) | (3,535) | 892 |
(Gain) / loss on derivative instruments reclassified into operations, net of tax of $(431), $621, and $(599), respectively | (784) | 1,129 | (1,091) |
Gain / (loss) on derivative instruments, net of tax of $712, $458, and $(512), respectively | 1,291 | 830 | (932) |
Total other comprehensive income (loss) | (5,826) | (1,576) | (1,131) |
Comprehensive income | $ 10,388 | $ 13,567 | $ 7,059 |
CONSOLIDATED STATEMENTS OF COM4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Realized loss (gains) on derivative instruments reclassified into operations, tax | $ (431) | $ 621 | $ (599) |
Unrealized (loss) gains on derivative instruments, tax | $ 712 | $ 458 | $ (512) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Oct. 31, 2015 | Oct. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 55,237 | $ 53,846 |
Accounts receivable, less allowance for doubtful accounts of $739 in 2015 and $878 in 2014 | 41,766 | 45,435 |
Inventories, net | 106,308 | 95,992 |
Deferred income taxes | 1,985 | 2,062 |
Derivative assets | 1,228 | 3,127 |
Prepaid assets | 9,769 | 8,927 |
Other | 1,804 | 1,365 |
Total current assets | 218,097 | 210,754 |
Property and equipment: | ||
Land | 841 | 782 |
Building | 7,314 | 7,314 |
Machinery and equipment | 24,026 | 19,432 |
Leasehold improvements | 3,323 | 3,523 |
Property and equipment, gross | 35,504 | 31,051 |
Less accumulated depreciation and amortization | (22,362) | (19,546) |
Property and equipment, net | 13,142 | 11,505 |
Software development costs, less accumulated amortization | 3,905 | 3,519 |
Goodwill | 2,319 | 2,606 |
Intangible assets, net | 1,289 | 1,635 |
Investments and other assets, net | 7,089 | 6,912 |
Total assets | 245,841 | 236,931 |
Current liabilities: | ||
Accounts payable | 41,678 | 40,464 |
Accounts payable-related parties | 1,780 | 2,254 |
Accrued expenses and other | 16,788 | 18,060 |
Accrued warranty expenses | 2,186 | 2,048 |
Derivative liabilities | 1,071 | 705 |
Short-term debt | 1,583 | 3,272 |
Total current liabilities | 65,086 | 66,803 |
Non-current liabilities: | ||
Deferred income taxes | 1,262 | 993 |
Accrued tax liability | 953 | 1,054 |
Deferred credits and other | 3,972 | 3,436 |
Total non-current liabilities | 6,187 | 5,483 |
Shareholders’ equity: | ||
Preferred stock: no par value per share, 1,000,000 shares authorized, no shares issued | 0 | 0 |
Common stock: no par value, $.10 stated value per share, 12,500,000 shares authorized, 6,650,517 and 6,589,918 shares issued; and 6,551,718 and 6,508,880 shares outstanding, as of October 31, 2015 and October 31, 2014, respectively | 655 | 651 |
Additional paid-in capital | 57,539 | 55,974 |
Retained earnings | 125,760 | 111,580 |
Accumulated other comprehensive loss | (9,386) | (3,560) |
Total shareholders’ equity | 174,568 | 164,645 |
Total liabilities and stockholders' equity | $ 245,841 | $ 236,931 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Oct. 31, 2015 | Oct. 31, 2014 |
Accounts receivable, allowance for doubtful accounts | $ 739 | $ 878 |
Preferred stock, no par value | $ 0 | $ 0 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, stated value per share | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 12,500,000 | 12,500,000 |
Common stock, shares issued | 6,650,517 | 6,589,918 |
Common stock, shares outstanding | 6,551,718 | 6,508,880 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Cash flows from operating activities: | |||
Net income | $ 16,214 | $ 15,143 | $ 8,190 |
Adjustments to reconcile net income to net cash provided by (used for) operating activities, net of acquisitions: | |||
Provision for doubtful accounts | (139) | 338 | 32 |
Deferred income taxes | (1,013) | (874) | 909 |
Equity in income of affiliates | (474) | (444) | (228) |
Foreign currency (gain) loss | 3,223 | 2,260 | (807) |
Unrealized (gain) loss on derivatives | 147 | 208 | (477) |
Depreciation and amortization | 3,222 | 3,309 | 3,392 |
Stock-based compensation | 1,193 | 921 | 979 |
Change in assets and liabilities, net of acquisitions: | |||
(Increase) decrease in accounts receivable | 3,666 | (11,653) | 4,660 |
(Increase) decrease in inventories | 2,852 | (4,971) | (1,020) |
(Increase) decrease in prepaid expenses | 383 | (4,646) | 83 |
Increase (decrease) in accounts payable | (1,028) | 8,642 | 1,768 |
Increase (decrease) in accrued expenses | (962) | 5,257 | (1,885) |
Net change in derivative assets and liabilities | 1,081 | 2,842 | 542 |
Other | 179 | 3 | (1,753) |
Net cash provided by (used for) operating activities | 28,544 | 16,335 | 14,385 |
Cash flows from investing activities: | |||
Proceeds from sale of property and equipment | 62 | 125 | 2 |
Purchase of property and equipment | (3,127) | (1,680) | (1,424) |
Software development costs | (1,406) | (955) | (956) |
Other investments | 308 | (76) | (256) |
Acquisition of business, net of cash acquired | (17,650) | 0 | (380) |
Net cash used for investing activities | (21,813) | (2,586) | (3,014) |
Cash flows from financing activities: | |||
Proceeds from exercise of common stock options | 256 | 357 | 302 |
Dividends paid | (2,034) | (1,693) | (646) |
Restricted shares vested | 1 | 2 | 1 |
Tax benefit from exercise of stock options | 119 | 0 | 2 |
Repayment on short-term debt | (1,605) | (379) | (4,271) |
Net cash provided by (used for) financing activities | (3,263) | (1,713) | (4,612) |
Effect of exchange rate changes on cash and cash equivalents | (2,077) | (994) | 275 |
Net increase (decrease) in cash and cash equivalents | 1,391 | 11,042 | 7,034 |
Cash and cash equivalents at beginning of year | 53,846 | 42,804 | 35,770 |
Cash and cash equivalents at end of year | 55,237 | 53,846 | 42,804 |
Cash paid for: | |||
Interest | 156 | 167 | 176 |
Income taxes, net | $ 9,890 | $ 5,782 | $ 2,537 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Balances at Oct. 31, 2012 | $ 143,793 | $ 645 | $ 53,415 | $ 90,586 | $ (853) |
Balances, Shares at Oct. 31, 2012 | 6,447,210 | ||||
Net income | 8,190 | $ 0 | 0 | 8,190 | 0 |
Other comprehensive loss | (1,131) | 0 | 0 | 0 | (1,131) |
Exercise of common stock options | $ 303 | $ 1 | 302 | 0 | 0 |
Exercise of common stock options, Shares | 11,369 | 11,369 | |||
Stock-based compensation expense | $ 979 | $ 1 | 978 | 0 | 0 |
Stock-based compensation expense, Shares | 6,475 | ||||
Tax benefit from exercise of stock options | 3 | $ 0 | 3 | 0 | 0 |
Dividends paid | (646) | 0 | 0 | (646) | 0 |
Balances at Oct. 31, 2013 | 151,491 | $ 647 | 54,698 | 98,130 | (1,984) |
Balances, Shares at Oct. 31, 2013 | 6,465,054 | ||||
Net income | 15,143 | $ 0 | 0 | 15,143 | 0 |
Other comprehensive loss | (1,576) | 0 | 0 | 0 | (1,576) |
Exercise of common stock options | $ 359 | $ 2 | 357 | 0 | 0 |
Exercise of common stock options, Shares | 20,306 | 20,306 | |||
Stock-based compensation expense | $ 921 | $ 2 | 919 | 0 | 0 |
Stock-based compensation expense, Shares | 23,520 | ||||
Dividends paid | (1,693) | $ 0 | 0 | (1,693) | 0 |
Balances at Oct. 31, 2014 | 164,645 | $ 651 | 55,974 | 111,580 | (3,560) |
Balances, Shares at Oct. 31, 2014 | 6,508,880 | ||||
Net income | 16,214 | $ 0 | 0 | 16,214 | 0 |
Other comprehensive loss | (5,826) | 0 | 0 | 0 | (5,826) |
Exercise of common stock options | $ 257 | $ 1 | 256 | 0 | 0 |
Exercise of common stock options, Shares | 15,300 | 15,300 | |||
Stock-based compensation expense | $ 1,193 | $ 3 | 1,190 | 0 | 0 |
Stock-based compensation expense, Shares | 27,538 | ||||
Tax benefit from exercise of stock options | 119 | $ 0 | 119 | 0 | 0 |
Dividends paid | (2,034) | 0 | 0 | (2,034) | 0 |
Balances at Oct. 31, 2015 | $ 174,568 | $ 655 | $ 57,539 | $ 125,760 | $ (9,386) |
Balances, Shares at Oct. 31, 2015 | 6,551,718 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Oct. 31, 2015 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES . The consolidated financial statements include the accounts of Hurco Companies, Inc. (an Indiana corporation) and its wholly-owned subsidiaries. We have a 35 3.0 3.1 . We consider all highly liquid investments with a stated maturity at the date of purchase of three months or less to be cash equivalents. Cash flows from hedges are classified consistent with the items being hedged. . All balance sheet accounts of non-U.S. subsidiaries are translated at the exchange rate as of the end of the year and translation adjustments of foreign currency balance sheets are recorded as a component of Accumulated other comprehensive loss in shareholders' equity. Income and expenses are translated at the average exchange rates during the year. Cumulative foreign currency translation adjustments, net of gains related to our net investment hedges, as of October 31, 2015 were a net loss of $ 10.9 We are exposed to certain market risks relating to our ongoing business operations, including foreign currency risk, interest rate risk and credit risk. We manage our exposure to these and other market risks through regular operating and financing activities. Currently, the only risk that we manage through the use of derivative instruments is foreign currency risk. We operate on a global basis and are exposed to the risk that our financial condition, results of operations and cash flows could be adversely affected by changes in foreign currency exchange rates. To reduce the potential effects of foreign exchange rate movements on our net equity investment in one of our foreign subsidiaries, and the gross profit and net earnings of certain of our foreign subsidiaries, we enter into derivative financial instruments in the form of foreign exchange forward contracts with a major financial institution. We are primarily exposed to foreign currency exchange rate risk with respect to transactions and net assets denominated in Euros, Pounds Sterling, Canadian Dollars, Indian Rupee, South African Rand, Singapore Dollars, Chinese Yuan, Polish Zloty, and New Taiwan Dollars. We account for derivative instruments as either assets or liabilities and carry them at fair value. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and the resulting designation. For derivative instruments designated as a fair value hedge, the gain or loss is recognized in earnings in the period of change together with the offsetting loss or gain on the hedged item attributed to the risk being hedged. For a derivative instrument designated as a cash flow hedge, the effective portion of the derivative’s gain or loss is initially reported as a component of Accumulated other comprehensive loss in shareholders’ equity and subsequently reclassified into earnings when the hedged exposure affects earnings. The ineffective portion of the gain or loss is reported in earnings immediately. For derivative instruments that are not designated as accounting hedges under the Derivatives and Hedging Topic of the Financial Accounting Standards Board (FASB guidance), changes in fair value are recognized in earnings in the period of change. We do not hold or issue derivative financial instruments for speculative trading purposes. We only enter into derivatives with one counterparty, which is among one of the largest U.S. banks ranked by assets, in order to minimize credit risk and, to date, that counterparty has not failed to meet its financial obligations under such contracts. Derivatives Designated as Hedging Instruments We enter into foreign currency forward exchange contracts periodically to hedge certain forecasted inter-company sales and purchases denominated in foreign currencies (the Pound Sterling, Euro and New Taiwan Dollar). The purpose of these instruments is to mitigate the risk that the U.S. Dollar net cash inflows and outflows resulting from sales and purchases denominated in foreign currencies will be adversely affected by changes in exchange rates. These forward contracts have been designated as cash flow hedge instruments, and are recorded in the Consolidated Balance Sheets at fair value in Derivative assets and Derivative liabilities. The effective portion of the gains and losses resulting from the changes in the fair value of these hedge contracts are deferred in Accumulated other comprehensive loss and recognized as an adjustment to Cost of sales and service in the period that the corresponding inventory sold that is the subject of the related hedge contract is recognized, thereby providing an offsetting economic impact against the corresponding change in the U.S. Dollar value of the inter-company sale or purchase being hedged. The ineffective portion of gains and losses resulting from the changes in the fair value of these hedge contracts is reported in Other (income) expense, net immediately. We perform quarterly assessments of hedge effectiveness by verifying and documenting the critical terms of the hedge instrument and determining that forecasted transactions have not changed significantly. We also assess on a quarterly basis whether there have been adverse developments regarding the risk of a counterparty default. We had forward contracts outstanding as of October 31, 2015, in Euros, Pounds Sterling and New Taiwan Dollars with set maturity dates ranging from November 2015 through October 2016. The contract amount at forward rates in U.S. Dollars at October 31, 2015 for Euros and Pounds Sterling was $ 28.4 8.4 24.8 1.5 118,000 We are exposed to foreign currency exchange risk related to our investment in net assets in foreign countries. To manage this risk, we entered into a forward contract with a notional amount of € 3.0 452,000 285,000 Derivatives Not Designated as Hedging Instruments We enter into foreign currency forward exchange contracts to protect against the effects of foreign currency fluctuations on receivables and payables denominated in foreign currencies. These derivative instruments are not designated as hedges under FASB guidance and, as a result, changes in their fair value are reported currently as Other (income) expense, net in the Consolidated Statements of Income consistent with the transaction gain or loss on the related receivables and payables denominated in foreign currencies. We had forward contracts outstanding as of October 31, 2015, in Euros, Pounds Sterling, Canadian Dollars, South African Rand, and New Taiwan Dollars with set maturity dates ranging from November 2015 through April 2016. The contract amounts at forward rates in U.S. Dollars at October 31, 2015 for Euros, Pounds Sterling, Canadian Dollars, and South African Rand totaled $ 26.7 16.3 Fair Value of Derivative Instruments We recognize the fair value of derivative instruments as assets and liabilities on a gross basis on our Consolidated Balance Sheets. 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 Effect of Derivative Instruments on the Consolidated Balance Sheets, Statements of Changes in Shareholders’ Equity and Statements of Income Derivatives Amount of Gain (Loss) Location of Gain Amount of Gain (Loss) 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 16,000 Derivatives Location of Gain (Loss) Amount of Gain (Loss) 2015 2014 (in thousands) Not Designated as Hedging Instruments: Foreign exchange forward contracts Other income (expense) $ 2,571 $ 1,657 Foreign Cash Flow 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) . Inventories are stated at the lower of cost or market, with cost determined using the first-in, first-out method. Provisions are made to reduce excess or obsolete inventories to their estimated realizable value. . Property and equipment are carried at cost. Number of Years Land Indefinite Building 40 Machines 7 10 Shop and office equipment 3 7 Leasehold improvements 3 40 Total depreciation and amortization expense recognized for property and equipment for the fiscal years ended October 31, 2015, 2014 and 2013 was $ 2.2 2.2 2.2 We recognize revenue from sales of our machine tool systems upon delivery of the product to the customer, which is normally at the time of shipment, because persuasive evidence of an arrangement exists, delivery has occurred, the selling price is fixed and determinable and collectability is reasonably assured. In certain foreign locations, we retain title after shipment under a “retention of title” clause solely to protect collectability. The retention of title is similar to Uniform Commercial Code (UCC) filings in the United States and provides the creditor with additional rights to the machine if the customer fails to pay. Revenue recognition at the time of shipment is appropriate in this instance as all risks of ownership have passed to the buyer and collectability is reasonably assured and protected under the “retention of title” clause. Our computerized machine tools are general-purpose computer controlled machine tools that are typically used in stand-alone operations. Transfer of ownership and risk of loss are not contingent upon contractual customer acceptance. Prior to shipment, we test each machine to ensure the machine’s compliance with standard operating specifications. Depending upon geographic location, after shipment, a machine may be installed at the customer’s facilities by a distributor, independent contractor or by one of our service technicians. In most instances where a machine is sold through a distributor, we have no installation involvement. If sales are direct or through sales agents, we will typically complete the machine installation, which consists of the reassembly of certain parts that were removed for shipping and the re-testing of the machine to ensure that it is performing within the standard specifications. We consider the machine installation process to be inconsequential and perfunctory. Service fees from maintenance contracts are deferred and recognized in earnings on a pro rata basis over the term of the contract. . The allowance for doubtful accounts is based on our best estimate of probable credit issues and historical experience. We perform credit evaluations of the financial condition of our customers. No collateral is required for sales made on open account terms. Concentrations of credit risk with respect to accounts receivable are limited due to the large number of customers comprising our customer base and their dispersion across many geographic areas. We consider trade accounts receivable to be past due when payment is not made by the due date as specified on the customer invoice, and charge off uncollectible balances when all reasonable collection efforts have been exhausted. Sales related to software products are recognized when shipped in conformity with FASB guidance related to software revenue recognition that requires at the time of shipment, persuasive evidence of an arrangement exists, delivery has occurred, the selling price is fixed and determinable and collectability is reasonably assured. The software does not require production, modification or customization. . Expected future product warranty claims are recorded to expense when the product is sold. Product warranty estimates are established using historical information about the nature, frequency, and average cost of warranty claims. Warranty claims are influenced by factors such as new product introductions, technological developments, the competitive environment, and the costs of component parts. Actual payments for warranty claims could differ from the amounts estimated requiring adjustments to the liabilities in future periods. See Note 13 of Notes to Consolidated Financial Statements for further discussion of warranties. The costs associated with research and development programs for new products and significant product improvements, other than software development costs which are eligible for capitalization per FASB guidance, are expensed as incurred and are included in Selling, general and administrative expenses. Research and development expenses totaled $ 3.9 3.4 3.0 Software Development Costs. Costs incurred to develop computer software products and significant enhancements to software features of existing products to be sold or otherwise marketed are capitalized, after technological feasibility is established. Software development costs are amortized on a straight-line basis over the estimated product life of the related software, which ranges from three to five years. We capitalized costs of $ 1.4 1.0 1.0 1.0 1.2 1.2 15.3 14.3 Fiscal Year Amortization 2016 $ 1,175 2017 1,175 2018 975 2019 400 2020 150 Goodwill and other separately recognized intangible assets with indefinite lives are not subject to amortization. At least once annually or when indicators of impairment exist, we perform an impairment test for goodwill. Goodwill is allocated to various reporting units. We utilize a two-stepped approach to measuring goodwill impairment. The first step of the test determines if there is potential goodwill impairment. In this step we compare the fair value of the reporting unit to its carrying amount (which includes goodwill). The fair value of the reporting unit is determined by using an estimate of future cash flows utilizing a risk-adjusted discount rate to calculate the net present value of future cash flows (income approach), and by using a market approach based upon an analysis of valuation metrics of comparable peer companies. If the carrying amount exceeds the fair value, we perform the second step of the test, which measures the amount of impairment loss to be recorded, if any. In the second step, we compare the carrying amount of the goodwill to the implied fair value of the goodwill based on the net fair value of the recognized and unrecognized assets and liabilities of the reporting unit. If the implied fair value is less than the carrying value, an impairment loss is recorded to the extent that the fair value of the goodwill is less than its carrying value. For other separately recognized intangible assets with indefinite lives, we use a qualitative approach to test such assets for impairment if certain conditions are met. Intangible assets that are determined to have a finite life are amortized over their estimated useful lives and are also subject to review for impairment, if indicators of impairment are identified. For fiscal 2015, we utilized the qualitative approach to test both goodwill and intangible assets for potential impairment. Balance as of October 31, 2014 $ 2,606 Impact of foreign currency translation (287) Balance as of October 31, 2015 $ 2,319 Weighted Gross Accumulated Net Intangible 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 Gross Accumulated Net Intangible 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 Intangible asset amortization expense was $ 207,000 412,000 342,000 137,000 115,000 115,000 115,000 115,000 We periodically evaluate the carrying value of long-lived assets to be held and used, including property and equipment, software development costs and intangible assets, including goodwill, when events or circumstances warrant such a review. The carrying value of a long-lived asset (or group of assets) to be held and used is considered impaired when the anticipated separately identifiable undiscounted cash flows from such an asset (or group of assets) are less than the carrying value of the asset (or group of assets) in accordance with FASB guidance related to accounting for the impairment or disposal of long-lived assets. Basic earnings per share is calculated by dividing net income by the weighted-average number of common shares actually outstanding during the period. Diluted earnings per share assumes the issuance of additional shares of common stock upon exercise of all outstanding stock options and contingently issuable securities if the effect is dilutive, in accordance with the treasury stock method discussed in FASB issued guidance on “Earnings Per Share”. 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 We account for income taxes and the related accounts under the asset and liability method. Deferred tax assets and liabilities are measured using enacted income tax rates in each jurisdiction in effect for the year in which the temporary differences are expected to be recovered or settled. These deferred tax assets are reduced by a valuation allowance, which is established when it is more likely than not that some portion or all of the deferred tax assets will not be realized. Our judgment regarding the realization of deferred tax assets may change due to future profitability and market conditions, changes in U.S. or foreign tax laws and other factors. These changes, if any, may require material adjustments to these deferred tax assets and an accompanying reduction or increase in net income in the period when such determinations are made. The determination of our provision for income taxes requires judgment, the use of estimates and the interpretation and application of complex tax laws. Our provision for income taxes reflects a combination of income earned and taxed at the federal and state level in the U.S., as well as in various foreign jurisdictions. We have not provided for any U.S. income taxes on the undistributed earnings of our foreign subsidiaries based upon our determination that such earnings will be indefinitely reinvested abroad. In addition to the risks to the effective tax rate described above, the future effective tax rate reflected in forward-looking statements is based on currently effective tax laws. Significant changes in those laws could materially affect these estimates. We recognize uncertain tax positions when it is more likely than not that the tax position will be sustained upon examination by relevant taxing authorities, based on the technical merits of the position. The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. We account for share-based compensation according to FASB guidance relating to share based payments, which requires the measurement and recognition of compensation expense for all share-based awards made to employees and directors based on estimated fair values on the grant date. This guidance requires that we estimate the fair value of share-based awards on the date of grant and recognize as expense the value of the portion of the award that is ultimately expected to vest over the requisite service period. The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles requires us to make estimates and assumptions that affect the reported amounts presented and disclosed in our consolidated financial statements. Significant estimates and assumptions in these consolidated financial statements require the exercise of judgment and are used for, but not limited to, allowance for doubtful accounts, estimates of future cash flows and other assumptions associated with goodwill, intangible and long-lived asset impairment tests, useful lives for depreciation and amortization, warranty programs, stock compensation, income taxes and deferred tax valuation allowances, and contingencies. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be different from these estimates. |
BUSINESS OPERATIONS
BUSINESS OPERATIONS | 12 Months Ended |
Oct. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BUSINESS OPERATIONS | 2. BUSINESS OPERATIONS Nature of Business machine tool industry. The machine tool industry is highly cyclical and declines in demand can and will occur abruptly in the geographic markets we serve. The end market for our products consists primarily of precision tool, die and mold manufacturers, independent job shops, and specialized short-run production applications within large manufacturing operations. Industries served include: aerospace, defense, medical equipment, energy, automotive/transportation, electronics and computer industries. Our products are sold through more than 170 independent agents and distributors throughout North America, Europe and Asia. 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. Credit Risk Manufacturing Risk. At present, our wholly-owned subsidiaries, Hurco Manufacturing Limited (“HML”), Ningbo Hurco Manufacturing Limited (“NHML”) and Milltronics USA, Inc. (“Milltronics”) produce the vast majority of our machine tools for all three brands, Hurco, Milltronics and Takumi. In addition, we manufacture electro-mechanical components and accessories for machine tools through our wholly-owned subsidiary, LCM Precision Technology S.r.l. (“LCM”). HML, NHML, Milltronics and LCM manufacture their products in Taiwan, China, U.S. and Italy, respectively. Any interruption in manufacturing at any of these locations would have an adverse effect on our financial operating results. Interruption in manufacturing at one of these locations could result from a change in the political environment or a natural disaster, such as an earthquake, typhoon, or tsunami. Any interruption with one of our key suppliers may also have an adverse effect on our operating results and our financial condition. |
OUT-OF-PERIOD ERROR CORRECTIONS
OUT-OF-PERIOD ERROR CORRECTIONS | 12 Months Ended |
Oct. 31, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
OUT-OF-PERIOD ERROR CORRECTIONS | 3. OUT-OF-PERIOD ERROR CORRECTIONS During the third quarter of fiscal year 2015, we recorded aggregate out-of-period corrections of $0.4 million, net of tax, which increased net assets and net income for the third quarter and full year of fiscal 2015 by that amount. These corrections were primarily associated with the overstatement of manufacturing overhead expenses, recorded as Cost of sales and service in prior year periods, due to errors in recording employee costs at one of our foreign subsidiaries. In accordance with Accounting Standards Codification (“ASC”) 250, Accounting Changes and Error Corrections Materiality We concluded that these errors were not material, individually or in the aggregate, to any of the prior reporting periods, and therefore, amendments of previously-filed reports were not required. The cumulative amount was recorded as an out-of-period adjustment during the third quarter of fiscal 2015, as it was determined that the cumulative amount would not be material for the fiscal year ending October 31, 2015. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Oct. 31, 2015 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | 4. INVENTORIES 2015 2014 Purchased parts and sub-assemblies $ 25,914 $ 21,703 Work-in-process 20,575 14,236 Finished goods 59,819 60,053 $ 106,308 $ 95,992 Finished goods inventory consigned to our distributors and agents throughout North America, Europe and Asia was $ 6.9 6.2 |
ACQUISITIONS OF BUSINESSES
ACQUISITIONS OF BUSINESSES | 12 Months Ended |
Oct. 31, 2015 | |
Business Combinations [Abstract] | |
ACQUISITIONS OF BUSINESSES | 5. ACQUISITIONS OF BUSINESSES Milltronics and Takumi On July 14, 2015, we acquired the assets of the machine tool business of Milltronics Manufacturing Company, Inc., a U.S.-based manufacturer of CNC mills, lathes, and vertical and horizontal machining centers. We are operating this U.S. business through our newly-formed subsidiary, Milltronics. Also, on July 28, 2015, we acquired the assets of the machine tool business of Takumi Machinery Co., Ltd. (“Takumi”), a Taiwan-based designer and manufacturer of CNC vertical machining centers, double column machining centers, high speed bridge machines and other machine tools equipped with industrial controls. We are operating this Taiwan business through our subsidiary, Hurco Manufacturing Limited. These acquisitions contribute to our efforts to expand our consolidated product range, customer base and global platform, and accelerate emerging market penetration, particularly in strategic markets such as China and South America. The combined Hurco, Milltronics and Takumi businesses represent a comprehensive product portfolio with more than 150 different models. The combined machine tool product lines also provide benefits from the development of product enhancements, technologies and models due to leverage of shared resources and cross-utilization of proven engineering designs, allowing us to achieve manufacturing cost reductions from economies of scale and manufacturing efficiencies. The acquisitions were accounted for in accordance with ASC Topic 805, Business Combinations. Accordingly, the total purchase price was allocated on a provisional basis to assets acquired and net liabilities assumed in connection with the acquisitions based on their estimated fair values as of the completion of the acquisitions. These allocations reflected various provisional estimates that were available at the time and were subject to change during the purchase price allocation period as valuations were finalized. All valuations are now final. 17.7 12.5 5.1 (in thousands) Initial Adjustments Adjusted Current assets $ 22,091 $ 105 $ 22,196 Property plant and equipment 1,099 (105) 994 Total assets 23,190 23,190 Current liabilities 5,540 5,540 Total purchase price and cash expended $ 17,650 $ $ 17,650 The results of operations of Milltronics and Takumi have been included in our consolidated financial statements from the respective dates of acquisitions. The Milltronics business recorded revenues of $ 6.7 3.3 0.4 732,000 Fiscal Year Ended October 31, 2015 2014 Sales and service fees $ 246,619 $ 265,918 Net income (loss) 11,772 11,345 The unaudited condensed pro forma financial information presented is for information purposes only and is not necessarily indicative of the actual results that would have occurred had the acquisitions been consummated at the beginning of the respective period, nor is it necessarily indicative of future consolidated operating results. The 2015 and 2014 unaudited condensed pro forma financial results reflect Milltronics and Takumi operations for the fiscal years ended October 31, 2015 and 2014. As the unaudited condensed pro forma financial information is presented as if the acquisitions had occurred on November 1, 2013, a net income reduction was reflected in the first quarter of fiscal 2014 related to acquisition costs of $ 0.7 LCM Precision Technology On July 1, 2013, we acquired the machine tool component business of an Italian designer and manufacturer of electro-mechanical components and accessories for machine tools. We are operating this business through our wholly-owned Italian subsidiary, LCM. The purchase price for the acquired assets and the assumed liabilities was $ 5.0 Current Assets $ 6,723 Property plant and equipment 933 Intangibles 1,437 Goodwill 2,477 Total assets $ 11,570 Current Liabilities $ 4,821 Short term debt 4,643 Non-current liabilities 1,726 Total liabilities $ 11,190 Cash expended, net of cash acquired 380 Indebtedness assumed 4,643 Total purchase price $ 5,023 Intangible assets of $ 1.4 Remaining Trademark/name $ 274 13 years Technology and manufacturing know how 1,111 13 years Customer relationships 52 16 years $ 1,437 The excess purchase price over the fair value of the assets acquired and the liabilities assumed was recorded as goodwill in the amount of $ 2.5 The results of operations of LCM have been included in the consolidated financial statements from the date of acquisition. We incurred various costs related to the purchase of the LCM assets, including professional fees for due diligence, legal fees and accounting services. These costs totaled approximately $ 675,000 |
CREDIT AGREEMENTS AND BORROWING
CREDIT AGREEMENTS AND BORROWINGS | 12 Months Ended |
Oct. 31, 2015 | |
Debt Disclosure [Abstract] | |
CREDIT AGREEMENTS AND BORROWINGS | 6. CREDIT AGREEMENTS AND BORROWINGS On December 7, 2012, we entered into an agreement (the “U.S. credit agreement”) with a financial institution that provided us with a $ 12.5 3.0 3.0 5.0 On December 5, 2014, we amended our U.S. credit agreement to increase the cash dividend allowance from $ 3.0 4.0 December 7, 2016 Borrowings under the U.S. credit agreement bear interest at a LIBOR-based rate or a floating rate of 1 1.00 0.50 0.05 The U.S. credit agreement contains customary financial covenants, including a covenant that permits us to make investments in subsidiaries of up to $ 5.0 90.0 120.0 4.0 We have a £ 1.0 1.5 100.0 3.1 May 12, 2015 40.0 6.3 February 17, 2016 All of our credit facilities are unsecured. At October 31, 2015, we had $ 1.6 5.6 3.3 20.4 |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Oct. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
FINANCIAL INSTRUMENTS | 7. FINANCIAL INSTRUMENTS Estimated Fair Value of Financial Instruments The carrying amounts for cash and cash equivalents approximate their fair values due to the short maturity of these instruments and they meet the Level 1 criteria of the three-tier fair value hierarchy discussed below. The carrying amount of short-term debt approximates fair value due to the variable rate of the interest and the short term nature of the instrument. The fair value of Level 2 is based on an internally developed model using current interest rate data for similar issues as there is no active market for this type of instrument. FASB fair value guidance established a three-tier fair value hierarchy, which categorizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs, such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exist, therefore requiring an entity to develop its own assumptions. Assets Liabilities October 31, October 31, October 31, October 31, 2015 2014 2015 2014 Level 1 Deferred compensation $ 1,310 $ 1,232 $ - $ - Level 2 Derivatives $ 1,228 $ 3,127 $ 1,071 $ 705 Recurring Fair Value Measurements Included in Level 1 assets are mutual fund investments under a nonqualified deferred compensation plan. We estimate the fair value of these investments on a recurring basis using market prices which are readily available. Included as Level 2 fair value measurements are derivative assets and liabilities related to gains and losses on foreign currency forward exchange contracts entered into with a third party. We estimate the fair value of these derivatives on a recurring basis using foreign currency exchange rates obtained from active markets. Derivative instruments are reported in the accompanying consolidated financial statements at fair value. We have derivative financial instruments in the form of foreign currency forward exchange contracts as described in Note 1 of Notes to Consolidated Financial Statements in which the U.S. Dollar equivalent notional amount of these contracts was $ 109.6 122.2 1.2 3.1 1.1 705,000 The fair value of the foreign currency forward exchange contracts and the related currency positions are subject to offsetting market risk resulting from foreign currency exchange rate volatility. The counterparty to the forward exchange contract is a substantial and creditworthy financial institution. We do not consider either the risk of counterparty non-performance or the economic consequences of counterparty non-performance as material risks. Nonrecurring Fair Value Measurements Certain nonfinancial assets and liabilities are measured at fair value on a nonrecurring basis and are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment. Assets and liabilities acquired in business combinations are recorded at their fair value as of the date of acquisition. Refer to Note 5 for the fair values of assets acquired and liabilities assumed in connection with the Milltronics, Takumi and LCM acquisitions. We review for goodwill impairment annually and whenever events or changes in circumstances indicate our carrying value may not be recoverable. The fair value of reporting units is determined using the income approach. The income approach focusses on the income-producing capability of an asset, measuring the current value of the asset by calculating the present value of its future economic benefits such as cash earnings, cost savings, corporate tax structure and product offerings. Value indications are developed by discounting expected cash flows to their present value at a rate of return that incorporates the risk-free rate for the use of funds, the expected rate of inflation and risks associated with the reporting unit. These assets would generally be classified within Level 3, in the event that we were required to measure and record such assets at fair value within the consolidated financial statements. See Note 1 for further information on goodwill. We periodically evaluate the carrying value of long-lived assets to be held and used, including definite-lived and indefinite-lived intangible assets and property plant and equipment, when events or circumstances warrant such a review. Fair value is determined primarily using anticipated cash flows assumed by a market participant discounted at a rate commensurate with the risk involved and these assets would generally be classified within Level 3, in the event that we were required to measure and record such assets at fair value within the consolidated financial statements. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Oct. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 8. INCOME TAXES Year Ended October 31, 2015 2014 2013 Current: U.S. taxes $ 4,600 $ 3,498 $ 737 Foreign taxes 3,752 3,594 2,606 8,352 7,092 3,343 Deferred: U.S. taxes (896) (709) 855 Foreign taxes (117) (165) 54 (1,013) (874) 909 $ 7,339 $ 6,218 $ 4,252 35 Year Ended October 31, 2015 2014 2013 Income (Loss) before income taxes (in thousands): Domestic $ 10,806 $ 9,190 $ 4,524 Foreign 12,747 12,171 7,918 Earnings (Loss) before taxes on income $ 23,553 $ 21,361 $ 12,442 Tax rates: U.S. statutory rate 35 % 35 % 35 % Effect of tax rate of international jurisdictions different than U.S. statutory rates (8) % (6) % (6) % Valuation allowance 1 % 0 % 5 % State taxes 1 % 0 % 1 % Tax Credits (1) % (1) % (3) % Other 3 % 1 % 2 % Effective tax rate 31 % 29 % 34 % We have not made any provision for U.S. income taxes on the undistributed earnings of our wholly-owned foreign subsidiaries based upon our determination that such earnings will be indefinitely reinvested. Undistributed earnings of our wholly-owned foreign subsidiaries at October 31, 2015 were approximately $ 67.8 Deferred income taxes are determined based on the difference between the amounts used for financial reporting purposes and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred taxes are adjusted for changes in tax rates and tax laws when changes are enacted. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. As of October 31, 2015, we had deferred tax assets established for accumulated net operating loss carryforwards of $ 1.3 1.5 1.2 October 31, 2015 2014 Deferred Tax Assets: Accrued inventory reserves 1,304 1,015 Accrued warranty expenses 441 397 Compensation related expenses 1,891 1,613 Unrealized exchange gain/loss 186 435 Other accrued expenses 237 167 Net operating loss and credit carryforwards 1,562 1,417 Other 170 118 5,791 5,162 Less: Valuation allowance on net operating loss and credit carryforwards (1,485) (1,225) Deferred tax assets 4,306 3,937 Deferred Tax Liabilities: Net derivative instruments (811) (537) Property and equipment and capitalized software development costs (2,369) (1,950) Other (403) (381) Net deferred tax assets $ 723 $ 1,069 As of October 31, 2015, we had net operating losses carryforwards for international and U.S. income tax purposes of $ 7.1 5.4 5 1.7 5 20 442,000 10 20 2015 2014 2013 Balance, beginning of year $ 1,196 $ 1,284 $ 118 Additions based on tax positions related to the current year 17 5 1,217 Additions (reductions) related to prior year tax positions (51) (4) 23 Reductions due to statute expiration (74) Other (128) (89) Balance, end of year $ 1,034 $ 1,196 $ 1,284 The entire balance of the unrecognized tax benefits and related interest at October 31, 2015, if recognized, would favorably affect the effective tax rate in future periods. We recognize accrued interest and penalties related to unrecognized tax benefits as components of our income tax provision. As of October 31, 2015, the gross amount of interest accrued, reported in other liabilities, was approximately $ 37,000 expire between July 2017 and July 2019 Due to the uncertain and complex application of tax regulations, it is possible that the ultimate resolution of future audits may result in liabilities that could be different from this estimate. In such case, we would record additional tax expense or tax benefit in the tax provision (benefit) or reclassify amounts on the consolidated balance sheets in the period in which the matter is effectively settled with the taxing authority. We file income tax returns in the U.S. federal jurisdiction and various states, local, and non-U.S. jurisdictions. There are currently no open audits in any jurisdictions. United States federal Fiscal 2012 Indiana Fiscal 2011 California Fiscal 2011 Germany¹ Fiscal 2013 Taiwan Fiscal 2012 ¹ Includes federal as well as state, provincial or similar local jurisdictions, as applicable. |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Oct. 31, 2015 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
EMPLOYEE BENEFITS | 9. EMPLOYEE BENEFITS We have defined contribution plans that include a majority of our employees, under which our matching contributions are primarily discretionary. The purpose of these plans is generally to provide additional financial security during retirement by providing employees with an incentive to save throughout their employment. Our contributions and related expense totaled $ 933,000 884,000 787,000 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Oct. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | 10. STOCK-BASED COMPENSATION In March 2008, we adopted the Hurco Companies, Inc. 2008 Equity Incentive Plan (the “2008 Plan”), which allows us to grant awards of stock options, Stock Appreciation Rights settled in stock (SARs), restricted shares, performance shares and performance units. The Compensation Committee of the Board of Directors has authority to determine the officers, directors and key employees who will be granted awards; designate the number of shares subject to each award; determine the terms and conditions upon which awards will be granted; and prescribe the form and terms of award agreements. We have granted stock options, restricted shares and performance shares under the 2008 Plan which are currently outstanding. No stock option may be exercised more than ten years after the date of grant or such shorter period as the Compensation Committee may determine at the date of grant. The total number of shares of our common stock that may be issued as awards under the 2008 Plan is 750,000 During fiscal 2015, 2014 and 2013, we recorded approximately $ 1.2 921,000 979,000 1.5 During fiscal 2015, options to purchase 15,300 On March 12, 2015, the Compensation Committee granted a total of 9,086 30.80 On January 6, 2015, the Compensation Committee approved a long-term incentive compensation arrangement for our executive officers in the form of restricted shares and performance shares awarded under the 2008 Plan. The awards were 25 75 The Compensation Committee granted a total of 11,174 32.22 The Compensation Committee also granted a total target number of 16,740 40 50 200 34.41 The Compensation Committee also granted a total target number of 15,643 35 50 200 32.22 During fiscal 2014, options to purchase 20,306 On March 13, 2014, the Compensation Committee granted a total of 11,235 24.92 On January 10, 2014, the Compensation Committee approved a long-term incentive compensation arrangement for our executive officers in the form of restricted shares and performance shares awarded under the 2008 Plan. The awards were 25 75 The Compensation Committee granted a total 12,182 24.01 The Compensation Committee also granted a total target number of 16,948 40 50 200 26.43 The Compensation Committee also granted a total target number of 17,056 35 50 200 24.01 During fiscal 2013, options to purchase 11,369 On March 14, 2013, the Compensation Committee granted a total of 6,230 28.08 On December 12, 2012, the Compensation Committee granted a total of 24,976 62 0 0.66 12.11 On December 12, 2012, the Compensation Committee granted a total of 12,983 23.30 Number of Weighted Average Unvested at October 31, 2014 81,038 $ 23.83 Shares granted 52,643 32.67 Shares vested (27,538) 23.08 Shares withheld (7,344) 21.82 Unvested at October 31, 2015 98,799 $ 28.89 Shares Under Weighted Balance October 31, 2012 155,105 $ 20.75 Granted 24,976 23.30 Cancelled Expired Exercised (11,369) 26.69 Balance October 31, 2013 168,712 $ 20.73 Granted Cancelled (20,217) 25.59 Expired Exercised (20,306) 17.67 Balance October 31, 2014 128,189 $ 20.45 Granted Cancelled (5,000) 35.83 Expired Exercised (15,300) 16.81 Balance October 31, 2015 107,889 $ 20.25 The total intrinsic value of stock options exercised during the twelve months ended October 31, 2015, 2014 and 2013 was approximately $ 154,000 424,000 0 As of October 31, 2015, the total intrinsic value of outstanding stock options already vested and expected to vest and the intrinsic value of options that are outstanding and exercisable was $ 759,000 Range of Exercise Shares Under Weighted Weighted Average Outstanding $ 14.82 24,000 $ 14.82 4.1 14.88 4,200 14.88 3.5 18.13 16,000 18.13 4.5 21.45 37,841 21.45 6.1 23.30 20,848 23.30 7.1 35.83 5,000 35.83 2.6 $ 14.82 35.83 107,889 $ 20.25 5.4 Exercisable $ 14.82 24,000 $ 14.82 4.1 14.88 4,200 14.88 3.5 18.13 16,000 18.13 4.5 21.45 37,841 21.45 6.1 23.30 13,899 23.30 4.7 35.83 5,000 35.83 2.6 $ 14.82 35.83 100,940 $ 20.04 4.9 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Oct. 31, 2015 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS As of October 31, 2015, we owned approximately 35 3.0 3.1 8.9 9.3 9.8 723,000 1.4 1.5 1.8 2.3 55,000 255,000 2015 2014 2013 Net Sales $ 12,852 $ 12,063 $ 12,312 Gross Profit 2,041 1,759 1,949 Operating Income (Loss) 665 468 544 Net Income (Loss) 1,546 1,264 747 Current Assets $ 10,262 $ 10,469 $ 8,755 Non-current Assets 3,087 3,065 2,820 Current Liabilities 3,472 3,637 2,846 |
CONTINGENCIES AND LITIGATION
CONTINGENCIES AND LITIGATION | 12 Months Ended |
Oct. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES AND LITIGATION | 12. CONTINGENCIES AND LITIGATION We are involved in various claims and lawsuits arising in the normal course of business. Pursuant to applicable accounting rules, we accrue the minimum liability for each known claim when the estimated outcome is a range of possible loss and no one amount within that range is more likely than another. We maintain insurance policies for such matters, and we record insurance recoveries when we determine such recovery to be probable. We do not expect any of these claims, individually or in the aggregate, to have a material adverse effect on our consolidated financial position or results of operations. We believe that the ultimate resolution of claims for any losses will not exceed our insurance policy coverages. |
GUARANTEES AND PRODUCT WARRANTI
GUARANTEES AND PRODUCT WARRANTIES | 12 Months Ended |
Oct. 31, 2015 | |
Standard Product Warranty Disclosure [Abstract] | |
GUARANTEES AND PRODUCT WARRANTIES | GUARANTEES AND PRODUCT WARRANTIES From time to time, our subsidiaries guarantee third party payment obligations in connection with the sale of machines to customers that use financing. We follow FASB guidance for accounting for guarantees (codified in ASC 460). As of October 31, 2015, we had 17 1.2 We provide warranties on our products with respect to defects in material and workmanship. The terms of these warranties are generally one year for machines and shorter periods for service parts. We recognize a reserve with respect to this obligation at the time of product sale, with subsequent warranty claims recorded against the reserve. 2015 2014 2013 Balance, beginning of year $ 2,048 $ 1,778 $ 1,623 Provision for warranties during the year 3,736 3,846 3,811 Charges to the accrual (3,495) (3,529) (3,670) Impact of foreign currency translation (103) (47) 14 Balance, end of year $ 2,186 $ 2,048 $ 1,778 The increase in the warranty reserve from fiscal 2014 to 2015 included $ 241,000 |
OPERATING LEASES
OPERATING LEASES | 12 Months Ended |
Oct. 31, 2015 | |
Leases, Operating [Abstract] | |
OPERATING LEASES | OPERATING LEASES We lease facilities, certain equipment and vehicles under operating leases that expire at various dates through 2024. 2016 $ 2,976 2017 1,911 2018 966 2019 524 2020 and thereafter 843 Total $ 7,220 Lease expense for the years ended October 31, 2015, 2014, and 2013 was $ 3.8 4.0 3.6 We recorded approximately $ 66,000 April 30, 2016 |
QUARTERLY FINANCIAL INFORMATION
QUARTERLY FINANCIAL INFORMATION | 12 Months Ended |
Oct. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL INFORMATION | 15. QUARTERLY FINANCIAL INFORMATION (Unaudited) First Second Third Fourth 2015 (In thousands, except per share data) Sales and service fees $ 50,972 $ 50,183 $ 52,535 $ 65,693 Gross profit 16,547 16,559 16,630 19,355 Gross profit margin 32 % 33 % 32 % 29 % Selling, general and administrative expenses 10,454 10,850 11,351 12,632 Operating income 6,093 5,709 5,279 6,723 Provision for income taxes 2,037 1,878 1,573 1,851 Net income 3,766 3,961 3,683 4,804 Income per common share basic $ 0.57 $ 0.60 $ 0.56 $ 0.73 Income per common share diluted $ 0.57 $ 0.60 $ 0.55 $ 0.72 First Second Third Fourth 2014 (In thousands, except per share data) Sales and service fees $ 50,970 $ 53,731 $ 55,379 $ 62,223 Gross profit 13,919 16,629 18,012 20,052 Gross profit margin 27 % 31 % 33 % 32 % Selling, general and administrative expenses 10,600 11,206 11,869 12,940 Operating income 3,319 5,423 6,143 7,112 Provision for income taxes 904 1,585 1,684 2,045 Net income 2,369 3,536 4,375 4,863 Income per common share basic $ 0.36 $ 0.54 $ 0.67 $ 0.74 Income per common share diluted $ 0.36 $ 0.54 $ 0.66 $ 0.74 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Oct. 31, 2015 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION We operate in a single segment: industrial automation equipment. We design and produce interactive computer control systems and software, computerized machine tools, and machine tool components and accessories for sale through our own distribution network to the worldwide metal working market. We also provide software options, control upgrades, accessories and replacement parts for our products, as well as customer service and training support. We sell our products through more than 170 68 Net Sales and Service Fees by Product Category Year ended October 31, 2015 2014 2013 Computerized Machine Tools * $ 189,712 $ 193,937 $ 166,896 Computer Control Systems and Software 3,085 3,407 3,066 Service Parts 19,375 17,391 16,474 Service Fees 7,211 7,568 6,368 Total $ 219,383 $ 222,303 $ 192,804 * Amounts shown include sales of Milltronics and Takumi computerized machine tools and LCM electro-mechanical components to third parties since the respective dates of acquisitions. Amounts shown do not include computer control systems and software sold as an integrated component of computerized machine systems. Year Ended October 31, 2015 2014 2013 North America $ 70,604 $ 62,247 $ 60,660 Germany 43,727 51,581 43,597 United Kingdom 28,384 32,557 27,343 Italy 11,768 13,456 8,738 France 13,162 9,972 10,918 Other Europe 26,598 24,728 22,738 Total Europe 123,639 132,294 113,334 Asia Pacific 20,265 23,766 17,401 Other Foreign 4,875 3,996 1,409 Total Foreign 148,779 160,056 132,144 $ 219,383 $ 222,303 $ 192,804 As of October 31, 2015 2014 United States $ 8,658 $ 6,815 Foreign countries 5,893 6,017 $ 14,551 $ 12,832 Net assets by geographic area were (in thousands): As of October 31, 2015 2014 North America $ 83,236 $ 79,121 Europe 59,468 61,186 Asia Pacific 31,864 24,338 $ 174,568 $ 164,645 |
NEW ACCOUNTING PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Oct. 31, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS | 17. NEW ACCOUNTING PRONOUNCEMENTS In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) Deferral of the Effective Date In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes deferred income tax assets and deferred income tax liabilities as noncurrent in a classified balance sheet instead of the current requirement to separate deferred income tax liabilities and assets into current and noncurrent amounts. ASU 2015-17 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early application is permitted either prospectively or retrospectively. We do not expect that the adoption of this accounting standard update will have a material effect on our consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN26
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Oct. 31, 2015 | |
Accounting Policies [Abstract] | |
Consolidation | Consolidation . The consolidated financial statements include the accounts of Hurco Companies, Inc. (an Indiana corporation) and its wholly-owned subsidiaries. We have a 35 3.0 3.1 |
Statements of Cash Flows | Statements of Cash Flows . We consider all highly liquid investments with a stated maturity at the date of purchase of three months or less to be cash equivalents. Cash flows from hedges are classified consistent with the items being hedged. |
Translation of Foreign Currencies | Translation of Foreign Currencies . All balance sheet accounts of non-U.S. subsidiaries are translated at the exchange rate as of the end of the year and translation adjustments of foreign currency balance sheets are recorded as a component of Accumulated other comprehensive loss in shareholders' equity. Income and expenses are translated at the average exchange rates during the year. Cumulative foreign currency translation adjustments, net of gains related to our net investment hedges, as of October 31, 2015 were a net loss of $ 10.9 |
Hedging | Hedging. We are exposed to certain market risks relating to our ongoing business operations, including foreign currency risk, interest rate risk and credit risk. We manage our exposure to these and other market risks through regular operating and financing activities. Currently, the only risk that we manage through the use of derivative instruments is foreign currency risk. We operate on a global basis and are exposed to the risk that our financial condition, results of operations and cash flows could be adversely affected by changes in foreign currency exchange rates. To reduce the potential effects of foreign exchange rate movements on our net equity investment in one of our foreign subsidiaries, and the gross profit and net earnings of certain of our foreign subsidiaries, we enter into derivative financial instruments in the form of foreign exchange forward contracts with a major financial institution. We are primarily exposed to foreign currency exchange rate risk with respect to transactions and net assets denominated in Euros, Pounds Sterling, Canadian Dollars, Indian Rupee, South African Rand, Singapore Dollars, Chinese Yuan, Polish Zloty, and New Taiwan Dollars. We account for derivative instruments as either assets or liabilities and carry them at fair value. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and the resulting designation. For derivative instruments designated as a fair value hedge, the gain or loss is recognized in earnings in the period of change together with the offsetting loss or gain on the hedged item attributed to the risk being hedged. For a derivative instrument designated as a cash flow hedge, the effective portion of the derivative’s gain or loss is initially reported as a component of Accumulated other comprehensive loss in shareholders’ equity and subsequently reclassified into earnings when the hedged exposure affects earnings. The ineffective portion of the gain or loss is reported in earnings immediately. For derivative instruments that are not designated as accounting hedges under the Derivatives and Hedging Topic of the Financial Accounting Standards Board (FASB guidance), changes in fair value are recognized in earnings in the period of change. We do not hold or issue derivative financial instruments for speculative trading purposes. We only enter into derivatives with one counterparty, which is among one of the largest U.S. banks ranked by assets, in order to minimize credit risk and, to date, that counterparty has not failed to meet its financial obligations under such contracts. Derivatives Designated as Hedging Instruments We enter into foreign currency forward exchange contracts periodically to hedge certain forecasted inter-company sales and purchases denominated in foreign currencies (the Pound Sterling, Euro and New Taiwan Dollar). The purpose of these instruments is to mitigate the risk that the U.S. Dollar net cash inflows and outflows resulting from sales and purchases denominated in foreign currencies will be adversely affected by changes in exchange rates. These forward contracts have been designated as cash flow hedge instruments, and are recorded in the Consolidated Balance Sheets at fair value in Derivative assets and Derivative liabilities. The effective portion of the gains and losses resulting from the changes in the fair value of these hedge contracts are deferred in Accumulated other comprehensive loss and recognized as an adjustment to Cost of sales and service in the period that the corresponding inventory sold that is the subject of the related hedge contract is recognized, thereby providing an offsetting economic impact against the corresponding change in the U.S. Dollar value of the inter-company sale or purchase being hedged. The ineffective portion of gains and losses resulting from the changes in the fair value of these hedge contracts is reported in Other (income) expense, net immediately. We perform quarterly assessments of hedge effectiveness by verifying and documenting the critical terms of the hedge instrument and determining that forecasted transactions have not changed significantly. We also assess on a quarterly basis whether there have been adverse developments regarding the risk of a counterparty default. We had forward contracts outstanding as of October 31, 2015, in Euros, Pounds Sterling and New Taiwan Dollars with set maturity dates ranging from November 2015 through October 2016. The contract amount at forward rates in U.S. Dollars at October 31, 2015 for Euros and Pounds Sterling was $ 28.4 8.4 24.8 1.5 118,000 We are exposed to foreign currency exchange risk related to our investment in net assets in foreign countries. To manage this risk, we entered into a forward contract with a notional amount of € 3.0 452,000 285,000 Derivatives Not Designated as Hedging Instruments We enter into foreign currency forward exchange contracts to protect against the effects of foreign currency fluctuations on receivables and payables denominated in foreign currencies. These derivative instruments are not designated as hedges under FASB guidance and, as a result, changes in their fair value are reported currently as Other (income) expense, net in the Consolidated Statements of Income consistent with the transaction gain or loss on the related receivables and payables denominated in foreign currencies. We had forward contracts outstanding as of October 31, 2015, in Euros, Pounds Sterling, Canadian Dollars, South African Rand, and New Taiwan Dollars with set maturity dates ranging from November 2015 through April 2016. The contract amounts at forward rates in U.S. Dollars at October 31, 2015 for Euros, Pounds Sterling, Canadian Dollars, and South African Rand totaled $ 26.7 16.3 Fair Value of Derivative Instruments We recognize the fair value of derivative instruments as assets and liabilities on a gross basis on our Consolidated Balance Sheets. 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 Effect of Derivative Instruments on the Consolidated Balance Sheets, Statements of Changes in Shareholders’ Equity and Statements of Income Derivatives Amount of Gain (Loss) Location of Gain Amount of Gain (Loss) 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 16,000 Derivatives Location of Gain (Loss) Amount of Gain (Loss) 2015 2014 (in thousands) Not Designated as Hedging Instruments: Foreign exchange forward contracts Other income (expense) $ 2,571 $ 1,657 Foreign Cash Flow 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) |
Inventories | Inventories . Inventories are stated at the lower of cost or market, with cost determined using the first-in, first-out method. Provisions are made to reduce excess or obsolete inventories to their estimated realizable value. |
Property and Equipment | Property and Equipment . Property and equipment are carried at cost. Number of Years Land Indefinite Building 40 Machines 7 10 Shop and office equipment 3 7 Leasehold improvements 3 40 Total depreciation and amortization expense recognized for property and equipment for the fiscal years ended October 31, 2015, 2014 and 2013 was $ 2.2 2.2 2.2 |
Revenue Recognition | Revenue Recognition. We recognize revenue from sales of our machine tool systems upon delivery of the product to the customer, which is normally at the time of shipment, because persuasive evidence of an arrangement exists, delivery has occurred, the selling price is fixed and determinable and collectability is reasonably assured. In certain foreign locations, we retain title after shipment under a “retention of title” clause solely to protect collectability. The retention of title is similar to Uniform Commercial Code (UCC) filings in the United States and provides the creditor with additional rights to the machine if the customer fails to pay. Revenue recognition at the time of shipment is appropriate in this instance as all risks of ownership have passed to the buyer and collectability is reasonably assured and protected under the “retention of title” clause. Our computerized machine tools are general-purpose computer controlled machine tools that are typically used in stand-alone operations. Transfer of ownership and risk of loss are not contingent upon contractual customer acceptance. Prior to shipment, we test each machine to ensure the machine’s compliance with standard operating specifications. Depending upon geographic location, after shipment, a machine may be installed at the customer’s facilities by a distributor, independent contractor or by one of our service technicians. In most instances where a machine is sold through a distributor, we have no installation involvement. If sales are direct or through sales agents, we will typically complete the machine installation, which consists of the reassembly of certain parts that were removed for shipping and the re-testing of the machine to ensure that it is performing within the standard specifications. We consider the machine installation process to be inconsequential and perfunctory. Service fees from maintenance contracts are deferred and recognized in earnings on a pro rata basis over the term of the contract. |
Allowance for Doubtful Accounts | . The allowance for doubtful accounts is based on our best estimate of probable credit issues and historical experience. We perform credit evaluations of the financial condition of our customers. No collateral is required for sales made on open account terms. Concentrations of credit risk with respect to accounts receivable are limited due to the large number of customers comprising our customer base and their dispersion across many geographic areas. We consider trade accounts receivable to be past due when payment is not made by the due date as specified on the customer invoice, and charge off uncollectible balances when all reasonable collection efforts have been exhausted. |
Software Revenue Recognition | Software Revenue Recognition. Sales related to software products are recognized when shipped in conformity with FASB guidance related to software revenue recognition that requires at the time of shipment, persuasive evidence of an arrangement exists, delivery has occurred, the selling price is fixed and determinable and collectability is reasonably assured. The software does not require production, modification or customization. |
Product Warranty | Product Warranty . Expected future product warranty claims are recorded to expense when the product is sold. Product warranty estimates are established using historical information about the nature, frequency, and average cost of warranty claims. Warranty claims are influenced by factors such as new product introductions, technological developments, the competitive environment, and the costs of component parts. Actual payments for warranty claims could differ from the amounts estimated requiring adjustments to the liabilities in future periods. See Note 13 of Notes to Consolidated Financial Statements for further discussion of warranties. |
Research and Development Costs | Research and Development Costs. The costs associated with research and development programs for new products and significant product improvements, other than software development costs which are eligible for capitalization per FASB guidance, are expensed as incurred and are included in Selling, general and administrative expenses. Research and development expenses totaled $ 3.9 3.4 3.0 |
Software Development Costs | Costs incurred to develop computer software products and significant enhancements to software features of existing products to be sold or otherwise marketed are capitalized, after technological feasibility is established. Software development costs are amortized on a straight-line basis over the estimated product life of the related software, which ranges from three to five years. We capitalized costs of $ 1.4 1.0 1.0 1.0 1.2 1.2 15.3 14.3 Fiscal Year Amortization 2016 $ 1,175 2017 1,175 2018 975 2019 400 2020 150 |
Goodwill and Intangible Assets | Goodwill and Intangible Assets. Goodwill and other separately recognized intangible assets with indefinite lives are not subject to amortization. At least once annually or when indicators of impairment exist, we perform an impairment test for goodwill. Goodwill is allocated to various reporting units. We utilize a two-stepped approach to measuring goodwill impairment. The first step of the test determines if there is potential goodwill impairment. In this step we compare the fair value of the reporting unit to its carrying amount (which includes goodwill). The fair value of the reporting unit is determined by using an estimate of future cash flows utilizing a risk-adjusted discount rate to calculate the net present value of future cash flows (income approach), and by using a market approach based upon an analysis of valuation metrics of comparable peer companies. If the carrying amount exceeds the fair value, we perform the second step of the test, which measures the amount of impairment loss to be recorded, if any. In the second step, we compare the carrying amount of the goodwill to the implied fair value of the goodwill based on the net fair value of the recognized and unrecognized assets and liabilities of the reporting unit. If the implied fair value is less than the carrying value, an impairment loss is recorded to the extent that the fair value of the goodwill is less than its carrying value. For other separately recognized intangible assets with indefinite lives, we use a qualitative approach to test such assets for impairment if certain conditions are met. Intangible assets that are determined to have a finite life are amortized over their estimated useful lives and are also subject to review for impairment, if indicators of impairment are identified. For fiscal 2015, we utilized the qualitative approach to test both goodwill and intangible assets for potential impairment. Balance as of October 31, 2014 $ 2,606 Impact of foreign currency translation (287) Balance as of October 31, 2015 $ 2,319 Weighted Gross Accumulated Net Intangible 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 Gross Accumulated Net Intangible 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 Intangible asset amortization expense was $ 207,000 412,000 342,000 137,000 115,000 115,000 115,000 115,000 |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets. We periodically evaluate the carrying value of long-lived assets to be held and used, including property and equipment, software development costs and intangible assets, including goodwill, when events or circumstances warrant such a review. The carrying value of a long-lived asset (or group of assets) to be held and used is considered impaired when the anticipated separately identifiable undiscounted cash flows from such an asset (or group of assets) are less than the carrying value of the asset (or group of assets) in accordance with FASB guidance related to accounting for the impairment or disposal of long-lived assets. |
Earnings Per Share | Earnings Per Share. Basic earnings per share is calculated by dividing net income by the weighted-average number of common shares actually outstanding during the period. Diluted earnings per share assumes the issuance of additional shares of common stock upon exercise of all outstanding stock options and contingently issuable securities if the effect is dilutive, in accordance with the treasury stock method discussed in FASB issued guidance on “Earnings Per Share”. 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 |
Income Taxes | Income Taxes. We account for income taxes and the related accounts under the asset and liability method. Deferred tax assets and liabilities are measured using enacted income tax rates in each jurisdiction in effect for the year in which the temporary differences are expected to be recovered or settled. These deferred tax assets are reduced by a valuation allowance, which is established when it is more likely than not that some portion or all of the deferred tax assets will not be realized. Our judgment regarding the realization of deferred tax assets may change due to future profitability and market conditions, changes in U.S. or foreign tax laws and other factors. These changes, if any, may require material adjustments to these deferred tax assets and an accompanying reduction or increase in net income in the period when such determinations are made. The determination of our provision for income taxes requires judgment, the use of estimates and the interpretation and application of complex tax laws. Our provision for income taxes reflects a combination of income earned and taxed at the federal and state level in the U.S., as well as in various foreign jurisdictions. We have not provided for any U.S. income taxes on the undistributed earnings of our foreign subsidiaries based upon our determination that such earnings will be indefinitely reinvested abroad. In addition to the risks to the effective tax rate described above, the future effective tax rate reflected in forward-looking statements is based on currently effective tax laws. Significant changes in those laws could materially affect these estimates. We recognize uncertain tax positions when it is more likely than not that the tax position will be sustained upon examination by relevant taxing authorities, based on the technical merits of the position. The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. |
Stock Compensation | Stock Compensation. We account for share-based compensation according to FASB guidance relating to share based payments, which requires the measurement and recognition of compensation expense for all share-based awards made to employees and directors based on estimated fair values on the grant date. This guidance requires that we estimate the fair value of share-based awards on the date of grant and recognize as expense the value of the portion of the award that is ultimately expected to vest over the requisite service period. |
Estimates | Estimates. The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles requires us to make estimates and assumptions that affect the reported amounts presented and disclosed in our consolidated financial statements. Significant estimates and assumptions in these consolidated financial statements require the exercise of judgment and are used for, but not limited to, allowance for doubtful accounts, estimates of future cash flows and other assumptions associated with goodwill, intangible and long-lived asset impairment tests, useful lives for depreciation and amortization, warranty programs, stock compensation, income taxes and deferred tax valuation allowances, and contingencies. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be different from these estimates. |
SUMMARY OF SIGNIFICANT ACCOUN27
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Oct. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule of Fair Value of Derivative Instruments | 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 | Derivatives Amount of Gain (Loss) Location of Gain Amount of Gain (Loss) 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 16,000 Derivatives Location of Gain (Loss) Amount of Gain (Loss) 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 | Foreign Cash Flow 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 | 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 | Fiscal Year Amortization 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 Gross Accumulated Net Intangible 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 Gross Accumulated Net Intangible 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 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Oct. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories as of October 31, 2015 and 2014 are summarized below (in thousands): 2015 2014 Purchased parts and sub-assemblies $ 25,914 $ 21,703 Work-in-process 20,575 14,236 Finished goods 59,819 60,053 $ 106,308 $ 95,992 |
ACQUISITIONS OF BUSINESSES (Tab
ACQUISITIONS OF BUSINESSES (Tables) | 12 Months Ended |
Oct. 31, 2015 | |
Business Acquisition [Line Items] | |
Schedule of Pro Forma Results | The following unaudited condensed pro forma financial information is presented as if the acquisitions were completed as of November 1, 2013 (in thousands): Fiscal Year Ended October 31, 2015 2014 Sales and service fees $ 246,619 $ 265,918 Net income (loss) 11,772 11,345 |
Schedule of Intangible Assets | The intangible assets consisted of the following (in thousands): Remaining Trademark/name $ 274 13 years Technology and manufacturing know how 1,111 13 years Customer relationships 52 16 years $ 1,437 |
Milltronics And Takumi [Member] | |
Business Acquisition [Line Items] | |
Schedule of Opening Balance Sheet | The following table summarizes the fair value of assets acquired and liabilities assumed as of the closing dates. The adjustments were due to the step-up in inventory and final valuation of property, plant and equipment. The total fair value of the net assets acquired was approximately $ 17.7 12.5 5.1 (in thousands) Initial Adjustments Adjusted Current assets $ 22,091 $ 105 $ 22,196 Property plant and equipment 1,099 (105) 994 Total assets 23,190 23,190 Current liabilities 5,540 5,540 Total purchase price and cash expended $ 17,650 $ $ 17,650 |
LCM Precision Technology [Member] | |
Business Acquisition [Line Items] | |
Schedule of Opening Balance Sheet | The allocation of the opening balance sheet of LCM as of July 1, 2013 is as follows (in thousands): Current Assets $ 6,723 Property plant and equipment 933 Intangibles 1,437 Goodwill 2,477 Total assets $ 11,570 Current Liabilities $ 4,821 Short term debt 4,643 Non-current liabilities 1,726 Total liabilities $ 11,190 Cash expended, net of cash acquired 380 Indebtedness assumed 4,643 Total purchase price $ 5,023 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Oct. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Fair Value | In accordance with this guidance, the following table represents the fair value hierarchy for our financial assets and liabilities measured at fair value as of October 31 (in thousands): Assets Liabilities October 31, October 31, October 31, October 31, 2015 2014 2015 2014 Level 1 Deferred compensation $ 1,310 $ 1,232 $ - $ - Level 2 Derivatives $ 1,228 $ 3,127 $ 1,071 $ 705 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Oct. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Taxes Provision (Benefit) | Year Ended October 31, 2015 2014 2013 Current: U.S. taxes $ 4,600 $ 3,498 $ 737 Foreign taxes 3,752 3,594 2,606 8,352 7,092 3,343 Deferred: U.S. taxes (896) (709) 855 Foreign taxes (117) (165) 54 (1,013) (874) 909 $ 7,339 $ 6,218 $ 4,252 |
Schedule of Reconciliation of Statutory Tax Rate to Effective Tax Rate | A comparison of income tax expense at the U.S. statutory rate of 35 Year Ended October 31, 2015 2014 2013 Income (Loss) before income taxes (in thousands): Domestic $ 10,806 $ 9,190 $ 4,524 Foreign 12,747 12,171 7,918 Earnings (Loss) before taxes on income $ 23,553 $ 21,361 $ 12,442 Tax rates: U.S. statutory rate 35 % 35 % 35 % Effect of tax rate of international jurisdictions different than U.S. statutory rates (8) % (6) % (6) % Valuation allowance 1 % 0 % 5 % State taxes 1 % 0 % 1 % Tax Credits (1) % (1) % (3) % Other 3 % 1 % 2 % Effective tax rate 31 % 29 % 34 % |
Schedule of Deferred Tax Assets and Liabilities | Significant components of our deferred tax assets and liabilities at October 31, 2015 and 2014 were as follows (in thousands): October 31, 2015 2014 Deferred Tax Assets: Accrued inventory reserves 1,304 1,015 Accrued warranty expenses 441 397 Compensation related expenses 1,891 1,613 Unrealized exchange gain/loss 186 435 Other accrued expenses 237 167 Net operating loss and credit carryforwards 1,562 1,417 Other 170 118 5,791 5,162 Less: Valuation allowance on net operating loss and credit carryforwards (1,485) (1,225) Deferred tax assets 4,306 3,937 Deferred Tax Liabilities: Net derivative instruments (811) (537) Property and equipment and capitalized software development costs (2,369) (1,950) Other (403) (381) Net deferred tax assets $ 723 $ 1,069 |
Schedule of Unrecognized Tax Benefits | 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): 2015 2014 2013 Balance, beginning of year $ 1,196 $ 1,284 $ 118 Additions based on tax positions related to the current year 17 5 1,217 Additions (reductions) related to prior year tax positions (51) (4) 23 Reductions due to statute expiration (74) Other (128) (89) Balance, end of year $ 1,034 $ 1,196 $ 1,284 |
Summary of open tax years by major jurisdiction | A summary of open tax years by major jurisdiction is presented below: United States federal Fiscal 2012 Indiana Fiscal 2011 California Fiscal 2011 Germany¹ Fiscal 2013 Taiwan Fiscal 2012 ¹ Includes federal as well as state, provincial or similar local jurisdictions, as applicable. |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Oct. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Restricted Stock Activity | A reconciliation of the Company’s restricted stock activity and related information is as follows: Number of Weighted Average Unvested at October 31, 2014 81,038 $ 23.83 Shares granted 52,643 32.67 Shares vested (27,538) 23.08 Shares withheld (7,344) 21.82 Unvested at October 31, 2015 98,799 $ 28.89 |
Schedule of Stock Option Activity | A summary of the status of the options as of October 31, 2015, 2014 and 2013 and the related activity for the year is as follows: Shares Under Weighted Balance October 31, 2012 155,105 $ 20.75 Granted 24,976 23.30 Cancelled Expired Exercised (11,369) 26.69 Balance October 31, 2013 168,712 $ 20.73 Granted Cancelled (20,217) 25.59 Expired Exercised (20,306) 17.67 Balance October 31, 2014 128,189 $ 20.45 Granted Cancelled (5,000) 35.83 Expired Exercised (15,300) 16.81 Balance October 31, 2015 107,889 $ 20.25 |
Schedule of Stock Options Outstanding and Exercisable | Stock options outstanding and exercisable on October 31, 2015, are as follows: Range of Exercise Shares Under Weighted Weighted Average Outstanding $ 14.82 24,000 $ 14.82 4.1 14.88 4,200 14.88 3.5 18.13 16,000 18.13 4.5 21.45 37,841 21.45 6.1 23.30 20,848 23.30 7.1 35.83 5,000 35.83 2.6 $ 14.82 35.83 107,889 $ 20.25 5.4 Exercisable $ 14.82 24,000 $ 14.82 4.1 14.88 4,200 14.88 3.5 18.13 16,000 18.13 4.5 21.45 37,841 21.45 6.1 23.30 13,899 23.30 4.7 35.83 5,000 35.83 2.6 $ 14.82 35.83 100,940 $ 20.04 4.9 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Oct. 31, 2015 | |
Related Party Transactions [Abstract] | |
Schedule of Financial Information | Summary unaudited financial information for HAL’s operations and financial conditions is as follows (in thousands): 2015 2014 2013 Net Sales $ 12,852 $ 12,063 $ 12,312 Gross Profit 2,041 1,759 1,949 Operating Income (Loss) 665 468 544 Net Income (Loss) 1,546 1,264 747 Current Assets $ 10,262 $ 10,469 $ 8,755 Non-current Assets 3,087 3,065 2,820 Current Liabilities 3,472 3,637 2,846 |
GUARANTEES AND PRODUCT WARRAN34
GUARANTEES AND PRODUCT WARRANTIES (Tables) | 12 Months Ended |
Oct. 31, 2015 | |
Standard Product Warranty Disclosure [Abstract] | |
Reconciliation of Warranty Reserve | The amount of the warranty reserve is determined based on historical trend experience and any known warranty issues that could cause future warranty costs to differ from historical experience. A reconciliation of the changes in our warranty reserve is as follows (in thousands): 2015 2014 2013 Balance, beginning of year $ 2,048 $ 1,778 $ 1,623 Provision for warranties during the year 3,736 3,846 3,811 Charges to the accrual (3,495) (3,529) (3,670) Impact of foreign currency translation (103) (47) 14 Balance, end of year $ 2,186 $ 2,048 $ 1,778 |
OPERATING LEASES (Tables)
OPERATING LEASES (Tables) | 12 Months Ended |
Oct. 31, 2015 | |
Leases, Operating [Abstract] | |
Schedule of Future Minimum Payments under Operating Leases | Future payments required under operating leases as of October 31, 2015, are summarized as follows (in thousands): 2016 $ 2,976 2017 1,911 2018 966 2019 524 2020 and thereafter 843 Total $ 7,220 |
QUARTERLY FINANCIAL INFORMATI36
QUARTERLY FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Oct. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Selected Quarterly Financial Information | First Second Third Fourth 2015 (In thousands, except per share data) Sales and service fees $ 50,972 $ 50,183 $ 52,535 $ 65,693 Gross profit 16,547 16,559 16,630 19,355 Gross profit margin 32 % 33 % 32 % 29 % Selling, general and administrative expenses 10,454 10,850 11,351 12,632 Operating income 6,093 5,709 5,279 6,723 Provision for income taxes 2,037 1,878 1,573 1,851 Net income 3,766 3,961 3,683 4,804 Income per common share basic $ 0.57 $ 0.60 $ 0.56 $ 0.73 Income per common share diluted $ 0.57 $ 0.60 $ 0.55 $ 0.72 First Second Third Fourth 2014 (In thousands, except per share data) Sales and service fees $ 50,970 $ 53,731 $ 55,379 $ 62,223 Gross profit 13,919 16,629 18,012 20,052 Gross profit margin 27 % 31 % 33 % 32 % Selling, general and administrative expenses 10,600 11,206 11,869 12,940 Operating income 3,319 5,423 6,143 7,112 Provision for income taxes 904 1,585 1,684 2,045 Net income 2,369 3,536 4,375 4,863 Income per common share basic $ 0.36 $ 0.54 $ 0.67 $ 0.74 Income per common share diluted $ 0.36 $ 0.54 $ 0.66 $ 0.74 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Oct. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Net Sales and Service Fees by Product Category | 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, 2015 2014 2013 Computerized Machine Tools * $ 189,712 $ 193,937 $ 166,896 Computer Control Systems and Software 3,085 3,407 3,066 Service Parts 19,375 17,391 16,474 Service Fees 7,211 7,568 6,368 Total $ 219,383 $ 222,303 $ 192,804 * Amounts shown include sales of Milltronics and Takumi computerized machine tools and LCM electro-mechanical components to third parties since the respective dates of acquisitions. Amounts shown do not include computer control systems and software sold as an integrated component of computerized machine systems. |
Schedule of Revenues by Geographic Area | The following table sets forth revenues by geographic area, based on customer location, for each of the past three fiscal years (in thousands): Year Ended October 31, 2015 2014 2013 North America $ 70,604 $ 62,247 $ 60,660 Germany 43,727 51,581 43,597 United Kingdom 28,384 32,557 27,343 Italy 11,768 13,456 8,738 France 13,162 9,972 10,918 Other Europe 26,598 24,728 22,738 Total Europe 123,639 132,294 113,334 Asia Pacific 20,265 23,766 17,401 Other Foreign 4,875 3,996 1,409 Total Foreign 148,779 160,056 132,144 $ 219,383 $ 222,303 $ 192,804 |
Schedule of Assets by Geographic Area | As of October 31, 2015 2014 United States $ 8,658 $ 6,815 Foreign countries 5,893 6,017 $ 14,551 $ 12,832 Net assets by geographic area were (in thousands): As of October 31, 2015 2014 North America $ 83,236 $ 79,121 Europe 59,468 61,186 Asia Pacific 31,864 24,338 $ 174,568 $ 164,645 |
SUMMARY OF SIGNIFICANT ACCOUN38
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Fair Value of Derivative Instruments) (Details) - USD ($) $ in Thousands | Oct. 31, 2015 | Oct. 31, 2014 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 1,228 | $ 3,127 |
Derivative liabilities | 1,071 | 705 |
Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 1,079 | 2,596 |
Derivative liabilities | 1,027 | 401 |
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 149 | 531 |
Derivative liabilities | $ 44 | $ 304 |
SUMMARY OF SIGNIFICANT ACCOUN39
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Effect of Derivative Instruments on Consolidated Balance Sheets, Statements of Changes in Shareholders' Equity and Statements of Operations) (Details) - Foreign Exchange Forward [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2015 | Oct. 31, 2014 | |
Designated as Hedging Instrument [Member] | Cost of Sales [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Reclassified from Other Comprehensive Income | $ 784 | $ (1,129) |
Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Other Comprehensive Income | 304 | 207 |
Not Designated as Hedging Instrument [Member] | Other Income And Expense [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Operations | 2,571 | 1,657 |
Intercompany [Member] | Designated as Hedging Instrument [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Other Comprehensive Income | $ 1,291 | $ 830 |
SUMMARY OF SIGNIFICANT ACCOUN40
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Beginning Balance | $ (3,560) | $ (1,984) | |
Other comprehensive income (loss) before reclassifications | (5,042) | (2,705) | |
Reclassifications | 784 | (1,129) | $ 1,091 |
Ending Balance | (9,386) | (3,560) | (1,984) |
Cash Flow Hedges [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Beginning Balance | 991 | (968) | |
Other comprehensive income (loss) before reclassifications | 1,291 | 830 | |
Reclassifications | (784) | 1,129 | |
Ending Balance | 1,498 | 991 | (968) |
Foreign Currency Translation [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Beginning Balance | (4,551) | (1,016) | |
Other comprehensive income (loss) before reclassifications | (6,333) | (3,535) | |
Reclassifications | 0 | 0 | |
Ending Balance | $ (10,884) | $ (4,551) | $ (1,016) |
SUMMARY OF SIGNIFICANT ACCOUN41
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Estimated Useful Lives) (Details) | 12 Months Ended |
Oct. 31, 2015 | |
Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 40 years |
Machines [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 7 years |
Machines [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 years |
Shop and Office Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Shop and Office Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 7 years |
Leasehold Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Leasehold Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 40 years |
SUMMARY OF SIGNIFICANT ACCOUN42
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Estimated Amortization Expense) (Details) $ in Thousands | Oct. 31, 2015USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
2,016 | $ 1,175 |
2,017 | 1,175 |
2,018 | 975 |
2,019 | 400 |
2,020 | $ 150 |
SUMMARY OF SIGNIFICANT ACCOUN43
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Goodwill) (Details) $ in Thousands | 12 Months Ended |
Oct. 31, 2015USD ($) | |
Goodwill [Line Items] | |
Balance as of October 31, 2014 | $ 2,606 |
Impact of foreign currency translation | (287) |
Balance as of October 31, 2015 | $ 2,319 |
SUMMARY OF SIGNIFICANT ACCOUN44
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2015 | Oct. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | $ 4,564 | $ 4,704 |
Accumulated Amortization | (3,275) | (3,069) |
Net Intangible Assets | 1,289 | 1,635 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | 254 | 260 |
Accumulated Amortization | (97) | (81) |
Net Intangible Assets | $ 157 | $ 179 |
Weighted Average Amortization Period | 15 years | 15 years |
Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | $ 674 | $ 766 |
Accumulated Amortization | (121) | (78) |
Net Intangible Assets | $ 553 | $ 688 |
Weighted Average Amortization Period | 13 years | 13 years |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | $ 2,972 | $ 2,972 |
Accumulated Amortization | (2,717) | (2,632) |
Net Intangible Assets | $ 255 | $ 340 |
Weighted Average Amortization Period | 6 years | 6 years |
Other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | $ 373 | $ 383 |
Accumulated Amortization | (299) | (251) |
Net Intangible Assets | $ 74 | $ 132 |
Weighted Average Amortization Period | 8 years | 8 years |
Tradenames and trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | $ 231 | $ 263 |
Accumulated Amortization | (41) | (27) |
Net Intangible Assets | 190 | 236 |
Indefinite tradenames and trademarks | $ 60 | $ 60 |
Weighted Average Amortization Period | 13 years | 13 years |
SUMMARY OF SIGNIFICANT ACCOUN45
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Reconciliation of Basic and Diluted Earnings (Loss) Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Net income | $ 4,804 | $ 3,683 | $ 3,961 | $ 3,766 | $ 4,863 | $ 4,375 | $ 3,536 | $ 2,369 | $ 16,214 | $ 15,143 | $ 8,190 |
Undistributed earnings allocated to participating shares - Basic | (93) | (121) | (86) | ||||||||
Undistributed earnings allocated to participating shares - Diluted | (93) | (121) | (86) | ||||||||
Net income applicable to common shareholders - Basic | 16,121 | 15,022 | 8,104 | ||||||||
Net income applicable to common shareholders - Diluted | $ 16,121 | $ 15,022 | $ 8,104 | ||||||||
Weighted average shares outstanding - Basic | 6,543 | 6,497 | 6,455 | ||||||||
Stock options and contingently issuable securities | 59 | 41 | 42 | ||||||||
Weighted average shares outstanding -Diluted | 6,602 | 6,538 | 6,497 | ||||||||
Income per share -Basic | $ 0.73 | $ 0.56 | $ 0.60 | $ 0.57 | $ 0.74 | $ 0.67 | $ 0.54 | $ 0.36 | $ 2.46 | $ 2.31 | $ 1.26 |
Income per share - Diluted | $ 0.72 | $ 0.55 | $ 0.60 | $ 0.57 | $ 0.74 | $ 0.66 | $ 0.54 | $ 0.36 | $ 2.44 | $ 2.30 | $ 1.25 |
SUMMARY OF SIGNIFICANT ACCOUN46
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) € in Millions | 12 Months Ended | |||
Oct. 31, 2015USD ($) | Oct. 31, 2015EUR (€) | Oct. 31, 2014USD ($) | Oct. 31, 2013USD ($) | |
Translation of Foreign Currencies | ||||
Cumulative foreign currency translation adjustments | $ 10,900,000 | |||
Derivative financial instruments: | ||||
Notional principal of foreign exchange contracts | 109,600,000 | $ 122,200,000 | ||
(Losses) gains, net of tax, related to cash flow hedges deferred in Accumulated Other Comprehensive Loss | 1,500,000 | |||
Unrealized gains, net of tax, to be reclassified in next 12 months | 118,000 | |||
Gain (loss) on hedge ineffectiveness | 14,000 | 16,000 | ||
Property and Equipment | ||||
Depreciation and amortization expense | 2,200,000 | 2,200,000 | $ 2,200,000 | |
Research and Development Costs | ||||
Research and development expenses | 3,900,000 | 3,400,000 | 3,000,000 | |
Software Development Costs | ||||
Capitalized costs | 1,400,000 | 1,000,000 | 1,000,000 | |
Amortization expense | 1,000,000 | 1,200,000 | 1,200,000 | |
Accumulated amortization | 15,300,000 | 14,300,000 | ||
Goodwill and Intangible Assets | ||||
Intangible assets amortization expense | 207,000 | 412,000 | $ 342,000 | |
Expected future amortization expense, 2016 | 137,000 | |||
Expected future amortization expense, 2017 | 115,000 | |||
Expected future amortization expense, 2018 | 115,000 | |||
Expected future amortization expense, 2019 | 115,000 | |||
Expected future amortization expense, 2020 | $ 115,000 | |||
Minimum [Member] | ||||
Software Development Costs | ||||
Weighted Average Amortization Period | 3 years | 3 years | ||
Maximum [Member] | ||||
Software Development Costs | ||||
Weighted Average Amortization Period | 5 years | 5 years | ||
Forward Contracts [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative financial instruments: | ||||
Derivative maturity date | Nov. 30, 2016 | Nov. 30, 2016 | ||
Notional amount of derivatives designated as net investment hedge | € | € 3 | |||
Realized gain on net investment hedge | $ 452,000 | |||
Unrealized gain, net of tax, recorded as cumulative translation adjustments in Accumulated Other Comprehensive Loss | $ 285,000 | |||
Forward Contracts [Member] | Designated as Hedging Instrument [Member] | Minimum [Member] | ||||
Derivative financial instruments: | ||||
Derivative maturity date | Nov. 30, 2015 | Nov. 30, 2015 | ||
Forward Contracts [Member] | Designated as Hedging Instrument [Member] | Maximum [Member] | ||||
Derivative financial instruments: | ||||
Derivative maturity date | Oct. 31, 2016 | Oct. 31, 2016 | ||
Forward Contracts [Member] | Not Designated as Hedging Instrument [Member] | Minimum [Member] | ||||
Derivative financial instruments: | ||||
Derivative maturity date | Nov. 30, 2015 | Nov. 30, 2015 | ||
Forward Contracts [Member] | Not Designated as Hedging Instrument [Member] | Maximum [Member] | ||||
Derivative financial instruments: | ||||
Derivative maturity date | Apr. 30, 2016 | Apr. 30, 2016 | ||
Euros [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative financial instruments: | ||||
Notional principal of foreign exchange contracts | $ 28,400,000 | |||
Pounds Sterling [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative financial instruments: | ||||
Notional principal of foreign exchange contracts | 8,400,000 | |||
Forward Contracts Denominated In Euros Pounds Sterling Canadian Dollars South African Rand And Singapore Dollars [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative financial instruments: | ||||
Notional principal of foreign exchange contracts | 26,700,000 | |||
Forward Contracts Denominated In New Taiwan Dollars [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative financial instruments: | ||||
Notional principal of foreign exchange contracts | 24,800,000 | |||
Forward Contracts Denominated In New Taiwan Dollars [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative financial instruments: | ||||
Notional principal of foreign exchange contracts | $ 16,300,000 | |||
Hurco Automation Ltd [Member] | ||||
Consolidation | ||||
Ownership interest | 35.00% | |||
Equity investment in affiliate | $ 3,000,000 | $ 3,100,000 |
OUT-OF-PERIOD ERROR CORRECTIO47
OUT-OF-PERIOD ERROR CORRECTIONS (Narrative) (Details) $ in Millions | 3 Months Ended |
Jul. 31, 2015USD ($) | |
Out-of-period corrections | $ 0.4 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Oct. 31, 2015 | Oct. 31, 2014 |
Inventory [Line Items] | ||
Purchased parts and sub-assemblies | $ 25,914 | $ 21,703 |
Work-in-process | 20,575 | 14,236 |
Finished goods | 59,819 | 60,053 |
Inventories | $ 106,308 | $ 95,992 |
INVENTORIES (Narrative) (Detail
INVENTORIES (Narrative) (Details) - USD ($) $ in Millions | Oct. 31, 2015 | Oct. 31, 2014 |
Inventory [Line Items] | ||
Finished goods inventory consigned to distributors and agents | $ 6.9 | $ 6.2 |
ACQUISITIONS OF BUSINESSES (The
ACQUISITIONS OF BUSINESSES (The Fair Value of Assets Acquired and Liabilities Assumed As Of The Closing Dates) (Details) $ in Thousands | Oct. 31, 2015USD ($) |
Business Acquisition [Line Items] | |
Total purchase price and cash expended, Adjusted Values | $ 17,700 |
Milltronics And Takumi [Member] | |
Business Acquisition [Line Items] | |
Current assets, Initial Valuation | 22,091 |
Property plant and equipment, Initial Valuation | 1,099 |
Total assets, Initial Valuation | 23,190 |
Current liabilities, Initial Valuation | 5,540 |
Total purchase price and cash expended, Initial Valuation | 17,650 |
Current assets, Adjustments | 105 |
Property plant and equipment, Adjustments | (105) |
Total assets, Adjustments | 0 |
Current liabilities, Adjustments | 0 |
Total purchase price and cash expended, Adjustments | 0 |
Current assets, Adjusted Values | 22,196 |
Property plant and equipment, Adjusted Values | 994 |
Total assets, Adjusted Values | 23,190 |
Current liabilities, Adjusted Values | 5,540 |
Total purchase price and cash expended, Adjusted Values | $ 17,650 |
ACQUISITIONS OF BUSINESSES (Pro
ACQUISITIONS OF BUSINESSES (Pro Forma Financial Information) (Details) - Milltronics And Takumi [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2015 | Oct. 31, 2014 | |
Business Acquisition [Line Items] | ||
Sales and service fees | $ 246,619 | $ 265,918 |
Net income (loss) | $ 11,772 | $ 11,345 |
ACQUISITIONS OF BUSINESSES (Sch
ACQUISITIONS OF BUSINESSES (Schedule of Opening Balance Sheet) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jul. 01, 2013 | Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Business Acquisition [Line Items] | ||||
Intangibles | $ 1,400 | |||
Goodwill | 2,500 | |||
Cash expended, net of cash acquired | $ 17,650 | $ 0 | $ 380 | |
Total purchase price | 5,000 | |||
LCM Precision Technology [Member] | ||||
Business Acquisition [Line Items] | ||||
Current Assets | 6,723 | |||
Property plant and equipment | 933 | |||
Intangibles | 1,437 | |||
Goodwill | 2,477 | |||
Total assets, Adjusted Values | 11,570 | |||
Current Liabilities | 4,821 | |||
Short term debt | 4,643 | |||
Non-current liabilities | 1,726 | |||
Total liabilities | 11,190 | |||
Cash expended, net of cash acquired | 380 | |||
Indebtedness assumed | 4,643 | |||
Total purchase price | $ 5,023 |
ACQUISITIONS OF BUSINESSES (S53
ACQUISITIONS OF BUSINESSES (Schedule of Intangible Assets) (Details) $ in Thousands | 1 Months Ended |
Jul. 01, 2013USD ($) | |
Business Acquisition [Line Items] | |
Intangibles | $ 1,400 |
LCM Precision Technology [Member] | |
Business Acquisition [Line Items] | |
Intangibles | 1,437 |
LCM Precision Technology [Member] | Trademark/name [Member] | |
Business Acquisition [Line Items] | |
Intangibles | $ 274 |
Remaining Economic Useful Life | 13 years |
LCM Precision Technology [Member] | Technology and manufacturing know how [Member] | |
Business Acquisition [Line Items] | |
Intangibles | $ 1,111 |
Remaining Economic Useful Life | 13 years |
LCM Precision Technology [Member] | Customer relationships [Member] | |
Business Acquisition [Line Items] | |
Intangibles | $ 52 |
Remaining Economic Useful Life | 16 years |
ACQUISITIONS OF BUSINESSES (Nar
ACQUISITIONS OF BUSINESSES (Narrative) (Details) - USD ($) | Jul. 14, 2015 | Jul. 28, 2015 | Jul. 01, 2013 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 |
Business Acquisition [Line Items] | ||||||||||||||
Acquired assets and assumed liabilities | $ 17,700,000 | $ 17,700,000 | ||||||||||||
Revenue Sales and Service Fees, Net, Attributable to Parent, Total | 65,693,000 | $ 52,535,000 | $ 50,183,000 | $ 50,972,000 | $ 62,223,000 | $ 55,379,000 | $ 53,731,000 | $ 50,970,000 | 219,383,000 | $ 222,303,000 | $ 192,804,000 | |||
Net income (loss) | 4,804,000 | $ 3,683,000 | $ 3,961,000 | $ 3,766,000 | $ 4,863,000 | $ 4,375,000 | $ 3,536,000 | 2,369,000 | 16,214,000 | $ 15,143,000 | 8,190,000 | |||
Business acquisition costs | $ 700,000 | $ 732,000 | $ 675,000 | |||||||||||
Total purchase price | $ 5,000,000 | |||||||||||||
Intangibles | 1,400,000 | |||||||||||||
Goodwill | $ 2,500,000 | |||||||||||||
Milltronics Manufacturing Company [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Revenue Sales and Service Fees, Net, Attributable to Parent, Total | 6,700,000 | |||||||||||||
Net income (loss) | (100,000) | |||||||||||||
Total purchase price | $ 12,500,000 | |||||||||||||
Takumi Machinery [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Revenue Sales and Service Fees, Net, Attributable to Parent, Total | 3,300,000 | |||||||||||||
Net income (loss) | $ 400,000 | |||||||||||||
Total purchase price | $ 5,100,000 |
CREDIT AGREEMENTS AND BORROWI55
CREDIT AGREEMENTS AND BORROWINGS (Narrative) (Details) € in Millions, ¥ in Millions, £ in Millions, TWD in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||||||||||
May. 12, 2015USD ($) | Oct. 31, 2015USD ($) | Oct. 31, 2015GBP (£) | Oct. 31, 2015EUR (€) | Oct. 31, 2015TWD | Oct. 31, 2015CNY (¥) | Dec. 05, 2014USD ($) | Dec. 04, 2014USD ($) | Oct. 31, 2014USD ($) | May. 09, 2014USD ($) | May. 08, 2014USD ($) | Oct. 31, 2013USD ($) | |
Line of Credit Facility [Line Items] | ||||||||||||
Borrowings available under credit facility | $ 20.4 | |||||||||||
New Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Interest rate spread | 1.00% | |||||||||||
New Credit Facility [Member] | Federal Funds Rate [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Interest rate spread | 0.50% | |||||||||||
Revolving Credit Facility [Member] | New Credit Facility [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Line of credit, maximum borrowing capacity | $ 12.5 | |||||||||||
Line of credit, maturity date | Dec. 7, 2016 | |||||||||||
Interest rate spread | 1.00% | |||||||||||
Percentage fee on portion that is not utilized | 0.05% | |||||||||||
Allowable investments in subsidiaries | $ 5 | |||||||||||
Minimum working capital requirement | 90 | |||||||||||
Minimum tangible net worth requirement | 120 | |||||||||||
Maximum dividends allowable | 4 | $ 4 | $ 3 | |||||||||
Revolving Credit Facility [Member] | Taiwan [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Line of credit, maximum borrowing capacity | $ 3.1 | TWD 100 | ||||||||||
Line of credit, maturity date | May 12, 2015 | |||||||||||
Revolving Credit Facility [Member] | United Kingdom [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Line of credit, maximum borrowing capacity | £ | £ 1 | |||||||||||
Revolving Credit Facility [Member] | Germany [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Line of credit, maximum borrowing capacity | € | € 1.5 | |||||||||||
Revolving Credit Facility [Member] | China [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Line of credit, maximum borrowing capacity | $ 6.3 | ¥ 40 | ||||||||||
Line of credit, maturity date | Feb. 17, 2016 | |||||||||||
Line of credit amount outstanding | $ 1.6 | $ 3.3 | ||||||||||
Interest rate | 5.60% | 5.60% | 5.60% | 5.60% | 5.60% | |||||||
Letter of Credit [Member] | Prior Credit Facility [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Line of credit, maximum borrowing capacity | $ 3 | |||||||||||
Letter of Credit [Member] | New Credit Facility [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Line of credit, maximum borrowing capacity | $ 5 | $ 3 |
FINANCIAL INSTRUMENTS (Fair val
FINANCIAL INSTRUMENTS (Fair value hierarchy) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Oct. 31, 2015 | Oct. 31, 2014 |
Level 1 [Member] | ||
Assets | ||
Deferred compensation | $ 1,310 | $ 1,232 |
Liabilities | ||
Deferred compensation | 0 | 0 |
Level 2 [Member] | ||
Assets | ||
Derivatives | 1,228 | 3,127 |
Liabilities | ||
Derivatives | $ 1,071 | $ 705 |
FINANCIAL INSTRUMENTS (Narrativ
FINANCIAL INSTRUMENTS (Narrative) (Details) - USD ($) $ in Thousands | Oct. 31, 2015 | Oct. 31, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notional amount of contracts | $ 109,600 | $ 122,200 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets | ||
Derivatives | 1,228 | 3,127 |
Liabilities | ||
Derivatives | $ 1,071 | $ 705 |
INCOME TAXES (Schedule of Provi
INCOME TAXES (Schedule of Provision (Benefit) for Income Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Current: | |||||||||||
U.S. taxes | $ 4,600 | $ 3,498 | $ 737 | ||||||||
Foreign taxes | 3,752 | 3,594 | 2,606 | ||||||||
Current provision (benefit) for income taxes | 8,352 | 7,092 | 3,343 | ||||||||
Deferred: | |||||||||||
U.S. taxes | (896) | (709) | 855 | ||||||||
Foreign taxes | (117) | (165) | 54 | ||||||||
Deferred provision (benefit) for income taxes | (1,013) | (874) | 909 | ||||||||
Provision (benefit) for income taxes | $ 1,851 | $ 1,573 | $ 1,878 | $ 2,037 | $ 2,045 | $ 1,684 | $ 1,585 | $ 904 | $ 7,339 | $ 6,218 | $ 4,252 |
INCOME TAXES (Schedule of Compa
INCOME TAXES (Schedule of Comparison of Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Income (Loss) before income taxes (in thousands): | |||
Domestic | $ 10,806 | $ 9,190 | $ 4,524 |
Foreign | 12,747 | 12,171 | 7,918 |
Earnings (Loss) before taxes on income | $ 23,553 | $ 21,361 | $ 12,442 |
Tax rates: | |||
U.S. statutory rate | 35.00% | 35.00% | 35.00% |
Effect of tax rate of international jurisdictions different than U.S. statutory rates | (8.00%) | (6.00%) | (6.00%) |
Valuation allowance | 1.00% | 0.00% | 5.00% |
State taxes | 1.00% | 0.00% | 1.00% |
Tax Credits | (1.00%) | (1.00%) | (3.00%) |
Other | 3.00% | 1.00% | 2.00% |
Effective tax rate | 31.00% | 29.00% | 34.00% |
INCOME TAXES (Schedule of Defer
INCOME TAXES (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Oct. 31, 2015 | Oct. 31, 2014 |
Deferred Tax Assets: | ||
Accrued inventory reserves | $ 1,304 | $ 1,015 |
Accrued warranty expenses | 441 | 397 |
Compensation related expenses | 1,891 | 1,613 |
Unrealized exchange gain/loss | 186 | 435 |
Other accrued expenses | 237 | 167 |
Net operating loss and credit carryforwards | 1,562 | 1,417 |
Other | 170 | 118 |
Deferred tax assets, gross | 5,791 | 5,162 |
Less: Valuation allowance on net operating loss and credit carryforwards | (1,485) | (1,225) |
Deferred tax assets | 4,306 | 3,937 |
Deferred Tax Liabilities: | ||
Net derivative instruments | (811) | (537) |
Property and equipment and capitalized software development costs | (2,369) | (1,950) |
Other | (403) | (381) |
Net deferred tax assets | $ 723 | $ 1,069 |
INCOME TAXES (Schedule of Unrec
INCOME TAXES (Schedule of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Balance, beginning of year | $ 1,196 | $ 1,284 | $ 118 |
Additions based on tax positions related to the current year | 17 | 5 | 1,217 |
Additions (reductions) related to prior year tax positions | (51) | (4) | 23 |
Reductions due to statute expiration | 0 | 0 | (74) |
Other | (128) | (89) | 0 |
Balance, end of year | $ 1,034 | $ 1,196 | $ 1,284 |
INCOME TAXES (Summary of Open T
INCOME TAXES (Summary of Open Tax Years) (Details) | 12 Months Ended | |
Oct. 31, 2015 | ||
United States federal [Member] | ||
Income Tax Contingency [Line Items] | ||
Open tax years | 2,012 | |
Indiana [Member] | ||
Income Tax Contingency [Line Items] | ||
Open tax years | 2,011 | |
California [Member] | ||
Income Tax Contingency [Line Items] | ||
Open tax years | 2,011 | |
Germany [Member] | ||
Income Tax Contingency [Line Items] | ||
Open tax years | 2,013 | [1] |
Taiwan [Member] | ||
Income Tax Contingency [Line Items] | ||
Open tax years | 2,012 | |
[1] | Includes federal as well as state, provincial or similar local jurisdictions, as applicable. |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Income Tax Contingency [Line Items] | |||
Undistributed Earnings of Foreign Subsidiaries | $ 67,800,000 | ||
Operating Loss Carryforwards | 1,300,000 | ||
Operating Loss Carryforwards, Valuation Allowance | 1,500,000 | $ 1,200,000 | |
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | 7,100,000 | ||
Income Tax Examination, Interest Accrued | $ 37,000 | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 35.00% | 35.00% |
Unrecognized Tax Benefits Expiration Term | expire between July 2017 and July 2019 | ||
Expirations Within Five Years [Member] | |||
Income Tax Contingency [Line Items] | |||
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | $ 5,400,000 | ||
Operating Loss Carryforwards Expiration Term Minimum | 5 years | ||
Expirations After Six Years [Member] | |||
Income Tax Contingency [Line Items] | |||
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | $ 1,700,000 | ||
Operating Loss Carryforwards Expiration Term Minimum | 5 years | ||
Operating Loss Carryforwards Expiration Term Maximum | 20 years | ||
Tax Credits [Member] | |||
Income Tax Contingency [Line Items] | |||
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | $ 442,000 | ||
Operating Loss Carryforwards Expiration Term Minimum | 10 years | ||
Operating Loss Carryforwards Expiration Term Maximum | 20 years |
EMPLOYEE BENEFITS (Narrative) (
EMPLOYEE BENEFITS (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Contributions to defined contribution plans | $ 933,000 | $ 884,000 | $ 787,000 |
STOCK-BASED COMPENSATION (Recon
STOCK-BASED COMPENSATION (Reconciliation of Restricted Stock Activity and Related Information) (Details) | 12 Months Ended |
Oct. 31, 2015$ / sharesshares | |
Number of Shares | |
Unvested at October 31, 2014 | shares | 81,038 |
Shares granted | shares | 52,643 |
Shares vested | shares | (27,538) |
Shares withheld | shares | (7,344) |
Unvested at October 31, 2015 | shares | 98,799 |
Weighted Average Grant Date Fair Value | |
Unvested at October 31, 2014 | $ / shares | $ 23.83 |
Shares granted | $ / shares | 32.67 |
Shares vested | $ / shares | 23.08 |
Shares withheld | $ / shares | 21.82 |
Unvested at October 31, 2015 | $ / shares | $ 28.89 |
STOCK-BASED COMPENSATION (Summa
STOCK-BASED COMPENSATION (Summary of Stock Option Activity and Related Information) (Details) - $ / shares | Dec. 12, 2012 | Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 |
Shares Under Option | ||||
Balance | 128,189 | 168,712 | 155,105 | |
Granted | 24,976 | 0 | 0 | 24,976 |
Cancelled | (5,000) | (20,217) | 0 | |
Expired | 0 | 0 | 0 | |
Exercised | (15,300) | (20,306) | (11,369) | |
Balance | 107,889 | 128,189 | 168,712 | |
Weighted Average Exercise Price Per Share | ||||
Balance | $ 20.45 | $ 20.73 | $ 20.75 | |
Granted | 0 | 0 | 23.30 | |
Cancelled | 35.83 | 25.59 | 0 | |
Expired | 0 | 0 | 0 | |
Exercised | 16.81 | 17.67 | 26.69 | |
Balance | $ 20.25 | $ 20.45 | $ 20.73 |
STOCK-BASED COMPENSATION (Sched
STOCK-BASED COMPENSATION (Schedule of Options Outstanding and Exercisable) (Details) | 12 Months Ended |
Oct. 31, 2015$ / sharesshares | |
Outstanding | |
Shares Under Option | shares | 107,889 |
Weighted Average Exercise Price Per Share | $ 20.25 |
Weighted Average Remaining Contractual Life in Years | 5 years 4 months 24 days |
Exercisable | |
Shares Under Option | shares | 100,940 |
Weighted Average Exercise Price Per Share | $ 20.04 |
Weighted Average Remaining Contractual Life in Years | 4 years 10 months 24 days |
Exercise price, minimum | $ 14.82 |
Exercise price, maximum | $ 35.83 |
$ 14.82 [Member] | |
Outstanding | |
Shares Under Option | shares | 24,000 |
Weighted Average Exercise Price Per Share | $ 14.82 |
Weighted Average Remaining Contractual Life in Years | 4 years 1 month 6 days |
Exercisable | |
Shares Under Option | shares | 24,000 |
Weighted Average Exercise Price Per Share | $ 14.82 |
Weighted Average Remaining Contractual Life in Years | 4 years 1 month 6 days |
$ 14.88 [Member] | |
Outstanding | |
Shares Under Option | shares | 4,200 |
Weighted Average Exercise Price Per Share | $ 14.88 |
Weighted Average Remaining Contractual Life in Years | 3 years 6 months |
Exercisable | |
Shares Under Option | shares | 4,200 |
Weighted Average Exercise Price Per Share | $ 14.88 |
Weighted Average Remaining Contractual Life in Years | 3 years 6 months |
$ 18.13 [Member] | |
Outstanding | |
Shares Under Option | shares | 16,000 |
Weighted Average Exercise Price Per Share | $ 18.13 |
Weighted Average Remaining Contractual Life in Years | 4 years 6 months |
Exercisable | |
Shares Under Option | shares | 16,000 |
Weighted Average Exercise Price Per Share | $ 18.13 |
Weighted Average Remaining Contractual Life in Years | 4 years 6 months |
$ 21.45 [Member] | |
Outstanding | |
Shares Under Option | shares | 37,841 |
Weighted Average Exercise Price Per Share | $ 21.45 |
Weighted Average Remaining Contractual Life in Years | 6 years 1 month 6 days |
Exercisable | |
Shares Under Option | shares | 37,841 |
Weighted Average Exercise Price Per Share | $ 21.45 |
Weighted Average Remaining Contractual Life in Years | 6 years 1 month 6 days |
$ 23.30 [Member] | |
Outstanding | |
Shares Under Option | shares | 20,848 |
Weighted Average Exercise Price Per Share | $ 23.30 |
Weighted Average Remaining Contractual Life in Years | 7 years 1 month 6 days |
Exercisable | |
Shares Under Option | shares | 13,899 |
Weighted Average Exercise Price Per Share | $ 23.30 |
Weighted Average Remaining Contractual Life in Years | 4 years 8 months 12 days |
$ 35.83 [Member] | |
Outstanding | |
Shares Under Option | shares | 5,000 |
Weighted Average Exercise Price Per Share | $ 35.83 |
Weighted Average Remaining Contractual Life in Years | 2 years 7 months 6 days |
Exercisable | |
Shares Under Option | shares | 5,000 |
Weighted Average Exercise Price Per Share | $ 35.83 |
Weighted Average Remaining Contractual Life in Years | 2 years 7 months 6 days |
STOCK-BASED COMPENSATION (Narra
STOCK-BASED COMPENSATION (Narrative) (Details) - USD ($) | Mar. 12, 2015 | Jan. 06, 2015 | Mar. 13, 2014 | Jan. 10, 2014 | Mar. 14, 2013 | Dec. 12, 2012 | Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Expiration period of options granted | 10 years | ||||||||
Total number of shares of common stock that may be issued as awards under 2008 Plan | 750,000 | ||||||||
Stock-based compensation expense | $ 1,200,000 | $ 921,000 | $ 979,000 | ||||||
Unrecognized Stock-based compensation expense | $ 1,500,000 | ||||||||
Restricted stock granted | 52,643 | ||||||||
Grant date fair value of restricted stock | $ 28.89 | $ 23.83 | |||||||
Options granted | 24,976 | 0 | 0 | 24,976 | |||||
Expected volatility | 62.00% | ||||||||
Expected term | 5 years | ||||||||
Dividend yield rate | 0.00% | ||||||||
Risk free interest rate | 0.66% | ||||||||
Grant date fair value of stock options | $ 12.11 | ||||||||
Exercise of common stock options, shares | 15,300 | 20,306 | 11,369 | ||||||
Proceeds from exercise of common stock options | $ 256,000 | $ 357,000 | $ 302,000 | ||||||
Total intrinsic value of stock options exercised | 154,000 | $ 424,000 | $ 0 | ||||||
Total intrinsic value of outstanding stock options vested and expected to vest and intrinsic value of options outstanding and exercisable | $ 759,000 | ||||||||
Director [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Restricted stock granted | 9,086 | 11,235 | 6,230 | ||||||
Grant date fair value of restricted stock | $ 30.80 | $ 24.92 | $ 28.08 | ||||||
Executive Officer [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Restricted stock granted | 12,983 | ||||||||
Grant date fair value of restricted stock | $ 23.30 | ||||||||
Time Based [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Restricted stock granted | 11,174 | 12,182 | |||||||
Grant date fair value of restricted stock | $ 32.22 | $ 24.01 | |||||||
Vesting period | 3 years | 3 years | |||||||
Vesting percentage | 25.00% | 25.00% | |||||||
Performance Based [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 75.00% | 75.00% | |||||||
Performance Based [Member] | Performance Shares TSR [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Restricted stock granted | 16,740 | 16,948 | |||||||
Grant date fair value of restricted stock | $ 34.41 | $ 26.43 | |||||||
Vesting period | 3 years | 3 years | |||||||
Percentage of incentive compensation arrangement | 40.00% | 40.00% | |||||||
Performance Based [Member] | Performance Shares TSR [Member] | Maximum [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Percentage of target number of shares to be earned | 200.00% | 200.00% | |||||||
Performance Based [Member] | Performance Shares TSR [Member] | Minimum [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Percentage of target number of shares to be earned | 50.00% | 50.00% | |||||||
Performance Based [Member] | Performance Shares ROIC [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Restricted stock granted | 15,643 | 17,056 | |||||||
Grant date fair value of restricted stock | $ 32.22 | $ 24.01 | |||||||
Vesting period | 3 years | 3 years | |||||||
Percentage of incentive compensation arrangement | 35.00% | 35.00% | |||||||
Performance Based [Member] | Performance Shares ROIC [Member] | Maximum [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Percentage of target number of shares to be earned | 200.00% | 200.00% | |||||||
Performance Based [Member] | Performance Shares ROIC [Member] | Minimum [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Percentage of target number of shares to be earned | 50.00% | 50.00% |
RELATED PARTY TRANSACTIONS (Sch
RELATED PARTY TRANSACTIONS (Schedule of unaudited financial information for HAL’s operations and financial conditions ) (Details) - Hurco Automation Ltd [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Related Party Transaction [Line Items] | |||
Net Sales | $ 12,852 | $ 12,063 | $ 12,312 |
Gross Profit | 2,041 | 1,759 | 1,949 |
Operating Income (Loss) | 665 | 468 | 544 |
Net Income (Loss) | 1,546 | 1,264 | 747 |
Current Assets | 10,262 | 10,469 | 8,755 |
Non-current Assets | 3,087 | 3,065 | 2,820 |
Current Liabilities | $ 3,472 | $ 3,637 | $ 2,846 |
RELATED PARTY TRANSACTIONS (Nar
RELATED PARTY TRANSACTIONS (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Related Party Transaction [Line Items] | |||
Accounts Payable, Related Parties, Current | $ 1,780,000 | $ 2,254,000 | |
Hurco Automation Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Equity Method Investment, Ownership Percentage | 35.00% | ||
Equity Method Investments | $ 3,000,000 | 3,100,000 | |
Related Party Transaction, Purchases from Related Party | 8,900,000 | 9,300,000 | $ 9,800,000 |
Revenue from Related Parties | 723,000 | 1,400,000 | $ 1,500,000 |
Accounts Payable, Related Parties, Current | 1,800,000 | 2,300,000 | |
Accounts Receivable, Related Parties, Current | $ 55,000 | $ 255,000 |
GUARANTEES AND PRODUCT WARRAN71
GUARANTEES AND PRODUCT WARRANTIES (Reconciliation of the changes in our warranty reserve) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Balance, beginning of year | $ 2,048 | $ 1,778 | $ 1,623 |
Provision for warranties during the year | 3,736 | 3,846 | 3,811 |
Charges to the accrual | (3,495) | (3,529) | (3,670) |
Impact of foreign currency translation | (103) | (47) | 14 |
Balance, end of year | $ 2,186 | $ 2,048 | $ 1,778 |
GUARANTEES AND PRODUCT WARRAN72
GUARANTEES AND PRODUCT WARRANTIES (Narrative) (Details) | 12 Months Ended |
Oct. 31, 2015USD ($) | |
Number Of Guarantees | 17 |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 1,200,000 |
Term of Product Warranty | 1 year |
Product Warranty Accrual, Additions from Business Acquisition | $ 241,000 |
OPERATING LEASES (Schedule of f
OPERATING LEASES (Schedule of future payments required under operating leases) (Details) $ in Thousands | Oct. 31, 2015USD ($) |
2,016 | $ 2,976 |
2,017 | 1,911 |
2,018 | 966 |
2,019 | 524 |
2020 and thereafter | 843 |
Total | $ 7,220 |
OPERATING LEASES (Narrative) (D
OPERATING LEASES (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Lease expense | $ 3,800,000 | $ 4,000,000 | $ 3,600,000 |
Lease income | $ 66,000 | ||
Lease Expiration Date | Apr. 30, 2016 |
QUARTERLY FINANCIAL INFORMATI75
QUARTERLY FINANCIAL INFORMATION (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Sales and service fees | $ 65,693 | $ 52,535 | $ 50,183 | $ 50,972 | $ 62,223 | $ 55,379 | $ 53,731 | $ 50,970 | $ 219,383 | $ 222,303 | $ 192,804 |
Gross profit | $ 19,355 | $ 16,630 | $ 16,559 | $ 16,547 | $ 20,052 | $ 18,012 | $ 16,629 | $ 13,919 | 69,091 | 68,612 | 55,056 |
Gross profit margin | 29.00% | 32.00% | 33.00% | 32.00% | 32.00% | 33.00% | 31.00% | 27.00% | |||
Selling, general and administrative expenses | $ 12,632 | $ 11,351 | $ 10,850 | $ 10,454 | $ 12,940 | $ 11,869 | $ 11,206 | $ 10,600 | 45,287 | 46,615 | 41,413 |
Operating income | 6,723 | 5,279 | 5,709 | 6,093 | 7,112 | 6,143 | 5,423 | 3,319 | 23,804 | 21,997 | 13,643 |
Provision for income taxes | 1,851 | 1,573 | 1,878 | 2,037 | 2,045 | 1,684 | 1,585 | 904 | 7,339 | 6,218 | 4,252 |
Net income | $ 4,804 | $ 3,683 | $ 3,961 | $ 3,766 | $ 4,863 | $ 4,375 | $ 3,536 | $ 2,369 | $ 16,214 | $ 15,143 | $ 8,190 |
Income per common share - basic (in dollars per share) | $ 0.73 | $ 0.56 | $ 0.60 | $ 0.57 | $ 0.74 | $ 0.67 | $ 0.54 | $ 0.36 | $ 2.46 | $ 2.31 | $ 1.26 |
Income per common share - diluted (in dollars per share) | $ 0.72 | $ 0.55 | $ 0.60 | $ 0.57 | $ 0.74 | $ 0.66 | $ 0.54 | $ 0.36 | $ 2.44 | $ 2.30 | $ 1.25 |
SEGMENT INFORMATION (Schedule o
SEGMENT INFORMATION (Schedule of Net Sales and Service Fees by Product Category) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | ||
Revenue from External Customer [Line Items] | ||||
Net Sales and Service Fees | $ 219,383 | $ 222,303 | $ 192,804 | |
Computerized Machine Tools [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Net Sales and Service Fees | [1] | 189,712 | 193,937 | 166,896 |
Computer Control Systems and Software [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Net Sales and Service Fees | [2] | 3,085 | 3,407 | 3,066 |
Service Parts [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Net Sales and Service Fees | 19,375 | 17,391 | 16,474 | |
Service Fees [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Net Sales and Service Fees | $ 7,211 | $ 7,568 | $ 6,368 | |
[1] | Amounts shown include sales of Milltronics and Takumi computerized machine tools and LCM electro-mechanical components to third parties since the respective dates of acquisitions. | |||
[2] | Amounts shown do not include computer control systems and software sold as an integrated component of computerized machine systems. |
SEGMENT INFORMATION (Schedule77
SEGMENT INFORMATION (Schedule of Revenues by Geographic Area) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 219,383 | $ 222,303 | $ 192,804 |
North America [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 70,604 | 62,247 | 60,660 |
Germany [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 43,727 | 51,581 | 43,597 |
United Kingdom [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 28,384 | 32,557 | 27,343 |
Italy [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 11,768 | 13,456 | 8,738 |
France [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 13,162 | 9,972 | 10,918 |
Other Europe [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 26,598 | 24,728 | 22,738 |
Europe [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 123,639 | 132,294 | 113,334 |
Asia Pacific [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 20,265 | 23,766 | 17,401 |
Other Foreign [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 4,875 | 3,996 | 1,409 |
Foreign [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 148,779 | $ 160,056 | $ 132,144 |
SEGMENT INFORMATION (Schedule78
SEGMENT INFORMATION (Schedule of Long-Lived Tangible Assets and net assets, Net by Geographic Area) (Details) - USD ($) $ in Thousands | Oct. 31, 2015 | Oct. 31, 2014 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | $ 14,551 | $ 12,832 |
Net Assets | 174,568 | 164,645 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | 8,658 | 6,815 |
Foreign Countries [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | 5,893 | 6,017 |
North America [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net Assets | 83,236 | 79,121 |
Europe [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net Assets | 59,468 | 61,186 |
Asia Pacific [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net Assets | $ 31,864 | $ 24,338 |
SEGMENT INFORMATION (Narrative)
SEGMENT INFORMATION (Narrative) (Details) | 12 Months Ended |
Oct. 31, 2015 | |
Segment Reporting Information [Line Items] | |
Number Of Customers Agents And Distributors | 170 |
Geographic Concentration Risk [Member] | Sales Revenue, Segment [Member] | |
Segment Reporting Information [Line Items] | |
Percentage of revenues | 68.00% |