Hurco Companies (HURC) 10-K 4 Jan 19 2018 FY Annual report Financial data

Document And Entity Information

Document And Entity Information - USD ($)	12 Months Ended
	Oct. 31, 2018	Dec. 18, 2018	Apr. 30, 2018
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Oct. 31, 2018
Document Fiscal Year Focus	2,018
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 Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 296,666,000
Trading Symbol	HURC
Entity Common Stock, Shares Outstanding		6,723,160
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Small Business	false

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2016
Sales and service fees	$ 300,671	$ 243,667	$ 227,289
Cost of sales and service	208,865	173,103	156,849
Gross profit	91,806	70,564	70,440
Selling, general and administrative expenses	58,010	49,661	50,824
Operating income	33,796	20,903	19,616
Interest expense	100	91	72
Interest income	189	41	40
Investment income	339	138	149
Income from equity investments	639	505	466
Other expense, net	2,367	780	1,314
Income before income taxes	32,496	20,716	18,885
Provision for income taxes	11,006	5,601	5,593
Net income	$ 21,490	$ 15,115	$ 13,292
Income per common share - basic	$ 3.19	$ 2.27	$ 2.01
Weighted average common shares outstanding - basic	6,700	6,615	6,569
Income per common share - diluted	$ 3.15	$ 2.25	$ 1.99
Weighted average common shares outstanding - diluted	6,771	6,680	6,642
Dividends paid per share	$ 0.43	$ 0.39	$ 0.35

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2016
Net Income	$ 21,490	$ 15,115	$ 13,292
Other comprehensive income (loss):
Translation gain (loss) of foreign currency financial statements	(3,183)	4,916	(1,441)
(Gain) / loss on derivative instruments reclassified into operations, net of tax of $453, $(745), and $(906), respectively	1,355	(1,354)	(1,647)
Gain / (loss) on derivative instruments, net of tax of $52, $(390), and $787, respectively	155	(709)	1,431
Total other comprehensive income (loss)	(1,673)	2,853	(1,657)
Comprehensive income	$ 19,817	$ 17,968	$ 11,635

CONSOLIDATED STATEMENTS OF CO_2

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2016
Realized loss (gains) on derivative instruments reclassified into operations, tax	$ 453	$ (745)	$ (906)
Unrealized (loss) gains on derivative instruments, tax	$ 52	$ (390)	$ 787

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Oct. 31, 2018	Oct. 31, 2017
Current assets:
Cash and cash equivalents	$ 77,170	$ 66,307
Accounts receivable, less allowance for doubtful accounts of $1,027 in 2018 and $639 in 2017	54,414	50,094
Inventories, net	137,609	119,948
Derivative assets	3,085	596
Prepaid assets	7,332	7,913
Other	1,825	1,557
Total current assets	281,435	246,415
Property and equipment:
Land	868	841
Building	7,352	7,352
Machinery and equipment	26,840	25,652
Leasehold improvements	3,801	3,503
Property and equipment, gross	38,861	37,348
Less accumulated depreciation and amortization	(25,902)	(25,167)
Total property and equipment, net	12,959	12,181
Non–current assets:
Software development costs, less accumulated amortization	7,452	6,226
Goodwill	2,377	2,440
Intangible assets, net	938	1,076
Deferred income taxes	2,234	2,339
Investments and other assets, net	8,012	7,131
Total non–current assets	21,013	19,212
Total assets	315,407	277,808
Current liabilities:
Accounts payable	54,131	45,127
Accounts payable–related parties	3,387	2,511
Accrued payroll and employee benefits	14,032	11,210
Accrued income taxes	5,180	2,362
Accrued expenses and other	4,122	4,668
Accrued warranty expenses	2,497	1,772
Derivative liabilities	2,020	1,732
Short–term debt	1,434	1,507
Total current liabilities	86,803	70,889
Non–current liabilities:
Accrued tax liability	2,194	117
Deferred credits and other	3,557	3,717
Total non–current liabilities	5,751	3,834
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, 6,891,508 and 6,799,006 shares issued; and 6,723,160 and 6,641,197 shares outstanding, as of October 31, 2018 and October 31, 2017, respectively	672	664
Additional paid–in capital	64,185	61,344
Retained earnings	167,859	149,267
Accumulated other comprehensive loss	(9,863)	(8,190)
Total shareholders' equity	222,853	203,085
Total liabilities and shareholders' equity	$ 315,407	$ 277,808

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Oct. 31, 2018	Oct. 31, 2017
Accounts receivable, allowance for doubtful accounts	$ 1,027	$ 639
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, No Par Value	$ 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	6,891,508	6,799,006
Common stock, shares outstanding	6,723,160	6,641,197

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2016
Cash flows from operating activities:
Net income	$ 21,490	$ 15,115	$ 13,292
Adjustments to reconcile net income to net cash provided by (used for) operating activities, net of acquisitions:
Provision for doubtful accounts	388	(25)	(75)
Deferred income taxes	(530)	1,108	(225)
Equity in income of affiliates	(639)	(505)	(466)
Foreign currency (gain) loss	755	(851)	1,850
Unrealized (gain) loss on derivatives	456	(411)	393
Depreciation and amortization	3,713	3,616	3,868
Stock-based compensation	2,504	1,698	1,607
Change in assets and liabilities, net of acquisitions:
(Increase) decrease in accounts receivable	(5,148)	563	(8,141)
(Increase) decrease in inventories	(20,386)	1,638	(13,881)
(Increase) decrease in prepaid expenses	710	80	809
Increase (decrease) in accounts payable	10,788	8,529	(6,001)
Increase (decrease) in accrued expenses	6,024	627	(90)
Increase (decrease) in accrued tax liability	2,061	(844)	0
Net change in derivative assets and liabilities	(1,178)	964	(245)
Other	4	(930)	588
Net cash provided by (used for) operating activities	21,012	30,372	(6,717)
Cash flows from investing activities:
Proceeds from sale of property and equipment	180	0	264
Purchase of property and equipment	(3,537)	(2,181)	(1,972)
Software development costs	(2,326)	(2,264)	(2,205)
Other investments	233	417	0
Acquisition of business	(1,156)	0	0
Net cash provided by (used for) investing activities	(6,606)	(4,028)	(3,913)
Cash flows from financing activities:
Proceeds from exercise of common stock options	847	534	0
Dividends paid	(2,898)	(2,590)	(2,310)
Taxes paid related to net settlement of restricted shares	(502)	(295)	(146)
Net cash provided by (used for) financing activities	(2,553)	(2,351)	(2,456)
Effect of exchange rate changes on cash and cash equivalents	(990)	1,097	(934)
Net increase (decrease) in cash and cash equivalents	10,863	25,090	(14,020)
Cash and cash equivalents at beginning of year	66,307	41,217	55,237
Cash and cash equivalents at end of year	77,170	66,307	41,217
Cash paid for:
Interest	64	66	56
Income taxes, net	$ 6,172	$ 4,867	$ 4,328

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 Loss [Member]
Balances, Beginning at Oct. 31, 2015	$ 174,568	$ 655	$ 57,539	$ 125,760	$ (9,386)
Balances, Beginning (Shares) at Oct. 31, 2015		6,551,718
Net income	13,292	$ 0	0	13,292	0
Other comprehensive income (loss)	(1,657)	0	0	0	(1,657)
Stock–based compensation expense	1,607	$ 2	1,605	0	0
Stock–based compensation expense (Shares)		21,385
Tax benefit (expense) from stock option activities	(25)	$ 0	(25)	0	0
Dividends paid	(2,310)	0	0	(2,310)	0
Balances, Ending at Oct. 31, 2016	185,475	$ 657	59,119	136,742	(11,043)
Balances, Ending (Shares) at Oct. 31, 2016		6,573,103
Net income	15,115	$ 0	0	15,115	0
Other comprehensive income (loss)	2,853	0	0	0	2,853
Exercise of common stock options	534	$ 3	531	0	0
Exercise of common stock options (Shares)		29,164
Stock–based compensation expense	1,698	$ 4	1,694	0	0
Stock–based compensation expense (Shares)		38,930
Dividends paid	(2,590)	$ 0	0	(2,590)	0
Balances, Ending at Oct. 31, 2017	203,085	$ 664	61,344	149,267	(8,190)
Balances, Ending (Shares) at Oct. 31, 2017		6,641,197
Net income	21,490	$ 0	0	21,490	0
Other comprehensive income (loss)	(1,673)	0	0	0	(1,673)
Exercise of common stock options	847	$ 4	843	0	0
Exercise of common stock options (Shares)		41,680
Stock–based compensation expense	$ 2,002	$ 4	1,998	0	0
Stock–based compensation expense (Shares)	40,283	40,283
Dividends paid	$ (2,898)	$ 0	0	(2,898)	0
Balances, Ending at Oct. 31, 2018	$ 222,853	$ 672	$ 64,185	$ 167,859	$ (9,863)
Balances, Ending (Shares) at Oct. 31, 2018		6,723,160

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Oct. 31, 2018
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Consolidation subsidiaries. We have a 35% ownership interest in a Taiwan affiliate that is accounted for using the equity method. Our investment in that affiliate was approximately $4.0 million and $3.6 million as of October 31, 2018 and 2017, respectively. That investment is included in Investments and other assets, net on the accompanying Consolidated Balance Sheets. Intercompany accounts and transactions have been eliminated. Reclassifications. 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 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, 2018 were a net loss of $10.6 million and are included in Accumulated other comprehensive loss. Foreign currency transaction gains and losses are recorded as income or expense as incurred and are recorded in Other expense, net. 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, 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 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 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, 2018, in Euros, Pounds Sterling and New Taiwan Dollars with set maturity dates ranging from November 2018 through October 2019. The contract amount at forward rates in U.S. Dollars at October 31, 2018 for Euros and Pounds Sterling was $32.9 million and $9.6 million, respectively. The contract amount at forward rates in U.S. Dollars for New Taiwan Dollars was $34.3 million at October 31, 2018. At October 31, 2018, we had approximately $156,000 of gains, net of tax, related to cash flow hedges deferred in Accumulated other comprehensive loss. Of this amount, $605,000 represented unrealized gains, net of tax, related to cash flow hedge instruments that remain subject to currency fluctuation risk. The majority of these deferred gains will be recorded as an adjustment to Cost of sales and service in periods through October 2019, in which the corresponding inventory that is the subject of the related hedge contract is sold, as described above. 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 million in November 2017. We designated this forward contract as a hedge of our net investment in Euro denominated assets. We selected the forward method under the FASB guidance related to the accounting for derivatives instruments and hedging activities. The forward method requires all changes in the fair value of the contract to be reported as a cumulative translation adjustment, net of tax, in Accumulated other comprehensive loss in the same manner as the underlying hedged net assets. This forward contract matured in November 2018 and we entered into a new forward contract for the same notional amount that is set to mature in November 2019. As of October 31, 2018, we had a realized gain of $ 652 153 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 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, 2018, in Euros, South African Rand and New Taiwan Dollars with set maturity dates ranging from November 2018 through July 2019. The contract amounts at forward rates in U.S. Dollars at October 31, 2018 for Euros and South African Rand totaled $22.4 million. The contract amount at forward rates in U.S. Dollars for New Taiwan Dollars was $37.6 million at October 31, 2018. 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. As of October 31, 2018 and October 31, 2017, all derivative instruments were recorded at fair value on the balance sheets as follows (in thousands): 2018 2017 Balance Sheet Fair Balance Sheet Fair Derivatives Location Value Location Value Designated as Hedging Instruments: Foreign exchange forward contracts Derivative assets $ 2,654 Derivative assets $ 305 Foreign exchange forward contracts Derivative liabilities $ 1,616 Derivative liabilities $ 1,508 Not Designated as Hedging Instruments: Foreign exchange forward contracts Derivative assets $ 431 Derivative assets $ 291 Foreign exchange forward contracts Derivative liabilities $ 404 Derivative liabilities $ 224 Effect of Derivative Instruments on the Consolidated Balance Sheets, Statements of Changes in Shareholders’ Equity and Statements of Income Derivative instruments had the following effects on our Consolidated Balance Sheets, Statements of Changes in Shareholders’ Equity and Statements of Income, net of tax, during the fiscal years ended October 31, 2018, 2017, and 2016 (in thousands): Amount of Gain (Loss) Location of Gain (Loss) Amount of Gain (Loss) Recognized in Reclassified from Reclassified from Other Comprehensive Other Comprehensive Other Comprehensive Derivatives Income (Loss) Income (Loss) Income (Loss) 2018 2017 2016 2018 2017 2016 Designated as Hedging Instruments: (Effective Portion) Foreign exchange forward contracts Cost of sales – Intercompany sales/purchases $ 155 $ (709 ) $ 1,431 and service $ (1,355 ) $ 1,354 $ 1,647 Foreign exchange forward contract – Net Investment $ 136 $ (96 ) $ 28 We did not recognize any gains or losses as a result of hedges deemed ineffective during fiscal 2018. We recognized a gain of $18,000 during the fiscal We recognized the following gains and losses in our Consolidated Statements of Income during the fiscal years ended October 31, 2018, 2017, and 2016 on derivative instruments not designated as hedging instruments (in thousands): Location of Gain (Loss) Amount of Gain (Loss) Derivatives Recognized in Operations Recognized in Operations 2018 2017 2016 Not Designated as Hedging Instruments: Foreign exchange forward contracts Other expense, net $ (963 ) $ (1,001 ) $ 536 The following table presents the changes in the components of Accumulated other comprehensive loss, net of tax, for the fiscal years ended October 31, 2018 and 2017 (in thousands): Foreign Cash Currency Flow Translation Hedges Total Balance, October 31, 2016 $ (12,325 ) $ 1,282 $ (11,043 ) Other comprehensive income (loss) before reclassifications 4,916 (709 ) 4,207 Reclassifications – (1,354 ) (1,354 ) Balance, October 31, 2017 $ (7,409 ) $ (781 ) $ (8,190 ) Other comprehensive income (loss) before reclassifications (3,183 ) 155 (3,028 ) Reclassifications – 1,355 1,355 Balance, October 31, 2018 $ (10,592 ) $ 729 $ (9,863 ) Inventories . Inventories are stated at the lower of cost or net realizable value, 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 are carri ed at cost. Depreciation and amortization of assets are provided primarily under the straight–line method over the shorter of the estimated useful lives or the lease terms as follows: Number of Years Land Indefinite Building 40 Machines 7 – 10 Shop and office equipment 3 – 7 Building & leasehold improvements 3 – 40 Total depreciation and amortization expense recognized for propert y and equipment was $2.5 million for each of the fiscal years ended October 31, 2018, 2017 and 2016. Revenue Recognition. We recognize revenue from sales of our machine tool systems upon delivery of the product to the customer or distributor, 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. 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 for our three–axis machines to be inconsequential and perfunctory. We allocate the transaction prices and recognize revenue associated with the installation process for our five–axis machines on a prorata basis over the period of the installation process. Service fees from maintenance contracts are deferred and recognized in earnings on a prorata basis over the term of the contract, and are generally sold on a stand–alone basis. Sales related to software upgrades are recognized when shipped in conformity with U.S. Generally Accepted Accounting Principles as promulgated by 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. 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 we charge off uncollectible balances when all reasonable collection efforts have been exhausted. 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 11 of Notes to Consolidated Financial Statements for further discussion of warranties. 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 $4.7 million, $4.2 million, and $4.9 million, in fiscal 2018, 2017, and 2016, respectively. Software Development Costs. We sell software products that are essential to our machine tools. 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 $2.3 million in fiscal 2018, $2.3 million in fiscal 2017, and $2.2 million in fiscal 2016 related to software development projects. Amortization expense for software development costs was $1.1 million, $1.0 million, and $1.2 million, for the fiscal years ended October 31, 2018, 2017, and 2016, respectively. Accumulated amortization at October 31, 2018 and 2017 was $18.5 million and $17.4 million, respectively. Estimated amortization expense for the remaining unamortized software development costs for the fiscal years ending October 31, is as follows (in thousands): Fiscal Year Amortization Expense 2019 1,000 2020 1,300 2021 1,500 2022 1,400 2023 1,050 Goodwill and Intangible Assets. There were no impairments recognized with respect to the carrying value of goodwill or intangible assets for the years ended October 31, 2018, 2017 or 2016. As of October 31, 2018, the balances of intangible assets, other than goodwill, were as follows (in thousands): Weighted Average Amortization Period Gross Intangible Assets Accumulated Amortization Net Intangible Assets Tradenames and trademarks indefinite $ 60 $ – $ 60 Tradenames and trademarks 13 years 238 (98 ) 140 Customer relationships 15 years 255 (148 ) 107 Technology 13 years 692 (284 ) 408 Patents 6 years 2,973 (2,790 ) 183 Other 8 years 377 (337 ) 40 Total $ 4,595 $ (3,657 ) $ 938 As of October 31, 2017, the balances of intangible assets, other than goodwill, were as follows (in thousands): Weighted Average Amortization Period Gross Intangible Assets Accumulated Amortization Net Intangible Assets Tradenames and trademarks indefinite $ 60 $ – $ 60 Tradenames and trademarks 13 years 245 (81 ) 164 Customer relationships 15 years 257 (132 ) 125 Technology 13 years 713 (239 ) 474 Patents 6 years 2,973 (2,765 ) 208 Other 8 years 378 (333 ) 45 Total $ 4,626 $ (3,550 ) $ 1,076 Intangible asset amortization expense was $107,000, $136,000, and $137,000 for fiscal 2018, 2017 and 2016, respectively. Annual intangible asset amortization expense is estimated to be $117,000 per year for fiscal years 2019 through 2023. Impairment of Long Lived Assets. Annually, or when there are indicators of impairment, we 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. 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 guidance on “Earnings Per Share.” The following table presents a reconciliation of our basic and diluted earnings per share computation: Fiscal Year Ended October 31, (in thousands, except per share amounts) 2018 2017 2016 Basic Diluted Basic Diluted Basic Diluted Net income $ 21,490 $ 21,490 $ 15,115 $ 15,115 $ 13,292 $ 13,292 Undistributed earnings allocated to participating shares (132 ) (132 ) (100 ) (100 ) (76 ) (76 ) Net income applicable to common Shareholders $ 21,358 $ 21,358 $ 15,015 $ 15,015 $ 13,216 $ 13,216 Weighted average shares outstanding 6,700 6,700 6,615 6,615 6,569 6,569 Stock options and contingently issuable securities – 71 – 65 – 73 6,700 6,771 6,615 6,680 6,569 6,642 Income per share $ 3.19 $ 3.15 $ 2.27 $ 2.25 $ 2.01 $ 1.99 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. In December 2017, the Tax Cuts and Jobs Act (the “Tax Reform Act”) was enacted. The Tax Reform Act, among other things, lowered the U.S. corporate tax rate from 35% to 21%, implemented a territorial tax system from a worldwide system and imposed a one–time tax on deemed repatriation of earnings of foreign subsidiaries. As a result of the reduction in the federal corporate income tax rate, we were required to revalue our net deferred tax asset to account for the future impact of lower corporate tax rates on this deferred amount and record any change in the value of such asset as a one–time non–cash charge on its income statement. This resulted in additional expense of $0.6 million. Additionally, the Tax Reform Act required a transition tax on any net accumulated earnings and profits generated by foreign subsidiaries as of the two required measurement dates, November 2, 2017 and December 31, 2017 while providing for future tax–free repatriation of such earnings through a 100% dividends–received deduction. This resulted in a one–time transition tax on the deemed repatriation of net accumulated foreign earnings and profits of $2.2 million, for a total impact of $2.8 million. As such, as of December 31, 2017, all of the Company’s accumulated earnings and profits are deemed repatriated. We have not provided for any U.S. income taxes on the undistributed earnings of our foreign subsidiaries beginning January 1, 2018 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. Estimates.

BUSINESS OPERATIONS

BUSINESS OPERATIONS	12 Months Ended
	Oct. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BUSINESS OPERATIONS	2. BUSINESS OPERATIONS Nature of Business 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 principally through more than 173 independent agents and distributors throughout the Americas, 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.

INVENTORIES

INVENTORIES	12 Months Ended
	Oct. 31, 2018
Inventory Disclosure [Abstract]
INVENTORIES	3. INVENTORIES Inventories as of October 31, 2018 and 2017 are summarized below (in thousands): 2018 2017 Purchased parts and sub–assemblies $ 38,303 $ 33,045 Work–in–process 22,786 20,008 Finished goods 76,520 66,895 $ 137,609 $ 119,948 Finished goods inventory consigned to our distributors and agents throughout the Americas, Europe and Asia was $9.9 million and $12.1 million as of October 31, 2018 and 2017, respectively.

CREDIT AGREEMENTS AND BORROWING

CREDIT AGREEMENTS AND BORROWINGS	12 Months Ended
	Oct. 31, 2018
Debt Disclosure [Abstract]
CREDIT AGREEMENTS AND BORROWINGS	4. CREDIT AGREEMENTS AND BORROWINGS On December 7, 2012, we entered into an agreement, which was subsequently amended on May 9, 2014, June 5, 2014, December 5, 2014 and December 6, 2016 (as amended, the “2012 Credit Agreement”) with JP Morgan Chase Bank, N.A. that provided us with an unsecured revolving credit and letter of credit facility. The 2012 Credit Agreement contained customary financial covenants, including covenants (1) restricting us from making certain investments, loans, advances and acquisitions (but permitting us to make investments in subsidiaries of up to $5.0 million), (2) requiring that we maintain a minimum working capital, and (3) requiring that we maintain a minimum tangible net worth. The 2012 Credit Agreement permitted us to pay certain cash dividends, so long as we were not in default under the 2012 Credit Agreement before and after giving effect to such dividends. Borrowings under our 2012 Credit Agreement bore interest either at a LIBOR based rate or a floating rate, in each case with an interest rate floor of 0.00%. The floating rate equaled the greatest of (a) a one month LIBOR based rate plus 1.00% per annum, (b) the federal funds effective rate plus 0.50% per annum, (c) the prevailing prime rate and (d) 0.00%. The rate we paid for that portion of the 2012 Credit Agreement which was not utilized is 0.05% per annum. On December 6, 2016, we entered into a fourth amendment to our 2012 Credit Agreement to, among other things, increase the unsecured revolving credit facility from $12.5 million to $15.0 million, to increase the cash dividend allowance from $4.0 million per calendar year to $5.0 million per calendar year, and to extend the scheduled maturity date to December 31, 2018. The 2012 Credit Agreement, as amended, provided for the issuance of up to $5.0 million in letters of credit. We also amended the 2012 Credit Agreement to increase the minimum working capital and minimum tangible net worth requirements from $90.0 million to $105.0 million and $120.0 million to $125.0 million, respectively. As of October 31, 2018, we had a £1.0 million revolving credit facility in the United Kingdom and a €1.5 million revolving credit facility in Germany. On February 16, 2017, we amended our credit facility in China to decrease the credit facility from 40.0 million Chinese Yuan to 20.0 million Chinese Yuan (approximately $2.9 million). On February 14, 2018, we renewed this facility with an expiration date of February 13, 2019. We had $1.4 million and $1.5 million of borrowings under our China credit facility as of October 31, 2018 and 2017, respectively. We had no other debt or borrowings under any of our other credit facilities at either of those dates. At October 31, 2018, we had $19.4 million of available borrowing capacity under our credit facilities in effect on that date. Effective as of December 31, 2018, we and our subsidiary Hurco B.V. entered into a new credit agreement (the “2018 Credit Agreement”) with Bank of America, N.A., as the lender. The 2018 Credit Agreement replaced the 2012 Credit Agreement, which terminated on December 31, 2018. The 2018 Credit Agreement provides for an unsecured revolving credit and letter of credit facility in a maximum aggregate amount of $40.0 million. The 2018 Credit Agreement provides that the maximum amount of outstanding letters of credit at any one time may not exceed $10.0 million, the maximum amount of outstanding loans made to our subsidiary Hurco B.V. at any one time may not exceed $20.0 million, and the maximum amount of all outstanding loans denominated in alternative currencies at any one time may not exceed $20.0 million. Under the 2018 Credit Agreement, we and Hurco B.V. are borrowers, and certain of our other subsidiaries are guarantors. The scheduled maturity date of the 2018 Credit Agreement is December 31, 2020. Borrowings under the 2018 Credit Agreement will bear interest at floating rates based on, at our option, either (i) a LIBOR–based rate, or other alternative currency–based rate approved by the lender, plus 0.75% per annum, or (ii) a base rate (which is the highest of (a) the federal funds rate plus 0.50%, (b) the prime rate or (c) the one month LIBOR–based rate plus 1.00%), plus 0.00% per annum. Outstanding letters of credit will carry an annual rate of 0.75%. The 2018 Credit Agreement contains customary affirmative and negative covenants and events of default, including covenants (1) restricting us from making certain investments, loans, advances and acquisitions (but permitting us to make investments in subsidiaries of up to $10.0 million); (2) restricting us from making certain payments, including cash dividends, except that we may pay cash dividends as long as immediately before and after giving effect to such payment, the sum of the unused amount of the commitments under the 2018 Credit Agreement plus our cash on hand is not less than $10.0 million, and as long as we are not in default before and after giving effect to such dividend payments; (3) requiring that we maintain a minimum working capital of $125.0 million; and (4) requiring that we maintain a minimum tangible net worth of $170.0 million. We may use the proceeds from advances under the 2018 Credit Agreement for general corporate purposes. In December 2018, in connection with our entry into the 2018 Credit Agreement, (1) using cash on hand, we repaid in full the $1.4 million outstanding under, and terminated, the China credit facility and (2) we terminated our United Kingdom credit facility. As of December 31, 2018, we retained the €1.5 million revolving credit facility in Germany and the $40 million revolving credit facility under 2018 Credit Agreement. As of December 31, 2018, there were no borrowings under any of our credit facilities and $41.7 million of available borrowing capacity thereunder.

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS	12 Months Ended
	Oct. 31, 2018
Fair Value Disclosures [Abstract]
FINANCIAL INSTRUMENTS	5. FINANCIAL INSTRUMENTS Estimated Fair Value of Financial Instruments FASB fair value guidance establishes 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 for which little or no market data exists, therefore requiring an entity to develop its own assumptions. The carrying amounts for cash and cash equivalents approximate their fair values due to the short maturity of these instruments, and such instruments meet the Level 1 criteria of the three tier fair value hierarchy discussed above. 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. 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, 2018 and 2017 (in thousands): Assets Liabilities October 31, October 31, October 31, October 31, 2018 2017 2018 2017 Level 1 Deferred compensation $ 1,723 $ 1,638 $ – $ – Level 2 Derivatives $ 3,085 $ 596 $ 2,020 $ 1,732 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 $145.2 million and $134.3 million at October 31, 2018 and 2017, respectively. 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.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Oct. 31, 2018
Income Tax Disclosure [Abstract]
INCOME TAXES	6. INCOME TAXES In December 2017, the Tax Reform Act was enacted. The Tax Reform Act, among other things, lowered the U.S. corporate tax rate from 35% to 21%, implemented a territorial tax system from a worldwide system and imposed a one time tax on deemed repatriation of accumulated earnings and profits of foreign subsidiaries. In fiscal 2018, our U.S. taxable income was taxed at a 23% federal tax rate; thereafter, the 21% rate will apply. During fiscal 2018, we revalued our deferred tax assets to the lower statutory rate of 21%, which resulted in expense of $596,000. The transition tax, required by the Tax Reform Act was also recorded in fiscal 2018 based on current guidance and available information, adding $2.2 million to income tax expense. The transition tax is eligible to be paid in unequal installments over 8 years. We plan to make that election. On December 22, 2017, the United States Securities and Exchange Commission (“SEC”) issued Staff Accounting Bulletin No. 118 (“SAB 118”), which provides guidance on accounting for the tax effects of the Tax Reform Act. In accordance with ASC Topic 740, Income Taxes, SAB 118 and available guidance from the SEC, FASB and the U.S. Treasury Department as of October 31, 2018, we have completed our accounting for the income tax effects of the Tax Reform Act with the exception of the provisions related to Global Intangible Low Taxed Income (“GILTI”) and Foreign Derived Intangible Income (“FDII”). In the fiscal years set forth below, the provision for income taxes consisted of the following (in thousands): Year Ended October 31, 2018 2017 2016 Current: U.S. taxes $ 6,333 $ 308 $ 1,362 Foreign taxes 5,203 4,185 4,456 11,536 4,493 5,818 Deferred: U.S. taxes (326 ) 1,236 (176 ) Foreign taxes (204 ) (128 ) (49 ) (530 ) 1,108 (225 ) $ 11,006 $ 5,601 $ 5,593 A comparison of income tax expense at the U.S. statutory rate to the Company’s effective tax rate is as follows (dollars in thousands): Year Ended October 31, 2018 2017 2016 Income before income taxes: Domestic $ 14,101 $ 5,477 $ 2,703 Foreign 18,395 15,239 16,182 $ 32,496 $ 20,716 $ 18,885 Tax rates: U.S. statutory rate 23 % 34 % 34 % Effect of tax rate of international jurisdictions different than U.S. statutory rates 2 % (5 )% (7 )% Valuation allowance 0 % 1 % 3 % State taxes 0 % 0 % 0 % Tax Credits (1 )% (3 )% (2 )% Effect of Tax Rate Changes 4 % 0 % 4 % Transition Tax 7 % 0 % 0 % Other (1 )% 0 % (2 )% Effective tax rate 34 % 27 % 30 % We have not provided for any U.S. income taxes on the undistributed earnings of our foreign subsidiaries beginning January 1, 2018 based upon our determination that such earnings will be indefinitely reinvested abroad. Additionally, the Tax Reform Act required a transition tax on any net accumulated earnings and profits generated by foreign subsidiaries as of the two required measurement dates, November 2, 2017 and December 31, 2017 while providing for future tax free repatriation of such earnings through a 100% dividends–received deduction. As such, as of December 31, 2017, all of the Company’s accumulated earnings and profits were deemed repatriated. Deferred income taxes are determined based on the difference between the amounts used for financial reporting purposes and tax bases 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, 2018, we had deferred tax assets established for accumulated net operating loss carryforwards of $1.3 million, primarily related to state and foreign jurisdictions. We also have deferred tax assets for research and development tax credits of $0.7 million. We have established a valuation allowance against some of these carryforwards due to the uncertainty of their full realization. As of October 31, 2018 and 2017, the balance of this valuation allowance was $2.1 million and $2.3 million, respectively. Significant components of our deferred tax assets and liabilities at October 31, 2018 and 2017 were as follows (in thousands): October 31, 2018 2017 Deferred Tax Assets: Accrued inventory reserves $ 1,325 $ 1,965 Accrued warranty expenses 499 438 Compensation related expenses 2,644 2,952 Net derivative instruments – 417 Unrealized exchange gain/loss 159 – Other accrued expenses 170 187 Net operating loss carryforwards 1,316 1,722 Other credit carryforwards 686 517 Other 350 404 7,149 8,602 Less: Valuation allowance – net operating loss and other credit carryforwards (2,106 ) (2,282 ) Deferred tax assets 5,043 6,320 Deferred Tax Liabilities: Net derivative instruments (208 ) – Property and equipment and capitalized software development costs (2,370 ) (3,241 ) Unrealized exchange gain/loss – (116 ) Other (231 ) (624 ) Net deferred tax assets $ 2,234 $ 2,339 As of October 31, 2018, we had net operating losses carryforwards for international and U.S. income tax purposes of $6.1 million, of which $4.9 million will expire within 5 years beginning in fiscal 2019 and $1.2 million will expire between 5 and 20 years. We also had tax credits of $870,000 which will expire between years 2022 and 2029. A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding the related accrual for interest or penalties, is as follows (in thousands): 2018 2017 2016 Balance, beginning of year $ 1,101 $ 1,102 $ 1,034 Additions based on tax positions related to the current year 37 37 52 Additions (reductions) related to prior year tax positions (945 ) (20 ) 19 Reductions due to statute expiration (18 ) (74 ) – Other 5 56 (3 ) Balance, end of year $ 180 $ 1,101 $ 1,102 The entire balance of the unrecognized tax benefits and related interest at October 31, 2018, if recognized, could 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, 2018, the amount of interest accrued, reported in other liabilities, was approximately $25,000, which did not include the federal tax benefit of interest deductions. The statute of limitations with respect to unrecognized tax benefits will expire between July 2019 and July 2022. We file income tax returns in the U.S. federal jurisdiction and various states, local, and non–U.S. jurisdictions. Currently, our Germany subsidiary is under tax audit for the fiscal year 2013 to 2016. A summary of open tax years by major jurisdiction is presented below: United States federal Fiscal 2015 through the current period Germany¹ Fiscal 2013 through the current period Taiwan Fiscal 2015 through the current period ¹ Includes federal as well as state, provincial or similar local jurisdictions, as applicable.

EMPLOYEE BENEFITS

EMPLOYEE BENEFITS	12 Months Ended
	Oct. 31, 2018
Defined Benefit Plan [Abstract]
EMPLOYEE BENEFITS	7. 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 $1.2 million, $1.1 million, and $1.1 million, for the fiscal years ended October 31, 2018, 2017 and 2016, respectively.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	12 Months Ended
	Oct. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK-BASED COMPENSATION	8. STOCK–BASED COMPENSATION In March 2016, we adopted the Hurco Companies, Inc. 2016 Equity Incentive Plan (the “2016 Equity Plan”), which allows us to grant awards of stock options, stock appreciation rights, restricted stock, stock units and other stock based awards. The 2016 Equity Plan replaced the Hurco Companies, Inc. 2008 Equity Incentive Plan (the “2008 Plan”) and is the only active plan under which equity awards may be made by us to our employees and non employee directors. No further awards will be made under our 2008 Plan. The total number of shares of our common stock that may be issued pursuant to awards under the 2016 Equity Plan is 856,048, which includes 386,048 shares remaining available for future grants under the 2008 Plan as of March 10, 2016, the date our shareholders approved the 2016 Equity Plan. The Compensation Committee of our Board of Directors has the authority to determine the officers, directors and key employees who will be granted awards under the 2016 Equity Plan; 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 restricted shares and performance units under the 2016 Equity Plan that are currently outstanding, and we have granted stock options, restricted shares and performance shares under the 2008 Plan that 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 market value of a share of our common stock, for purposes of the 2016 Equity Plan, is the closing sale price as reported by the Nasdaq Global Select Market on the date in question or, if not a trading day, on the last preceding trading date. A summary of the status of the options as of October 31, 2018, 2017 and 2016 and the related activity for the year is as follows: Shares Under Weighted Average Grant Option Date Fair Value Balance October 31, 2015 107,889 $ 20.25 Granted – – Cancelled – – Expired – – Exercised – – Balance October 31, 2016 107,889 $ 20.25 Granted – – Cancelled – – Expired – – Exercised (29,164 ) $ 18.31 Balance October 31, 2017 78,725 $ 20.97 Granted – – Cancelled – – Expired – – Exercised (41,680 ) $ 20.33 Balance October 31, 2018 37,045 $ 21.69 The total intrinsic value of stock options exercised during the twelve months ended October 31, 2018, 2017 and 2016 was approximately $847,000, $771,000 and $0, respectively. As of October 31, 2018, the total intrinsic value of outstanding stock options already vested and the intrinsic value of options that are outstanding and exercisable was $706,000. Stock options outstanding and exercisable on October 31, 2018, were as follows: Range of Exercise Prices Per Share Shares Under Option Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Life in Years Outstanding and Exercisable 18.13 3,738 18.13 1.5 21.45 21,748 21.45 3.1 23.30 11,559 23.30 4.1 $ 18.13 – 23.30 37,045 $ 21.69 3.3 On March 15, 2018, the Compensation Committee granted a total of 9,114 shares of time–based restricted stock to our non employee directors. The restricted shares vest in full one year from the date of grant provided the recipient remains on the board of directors through that date. The grant date fair value of the restricted shares was based on the closing sales price of our common stock on the grant date, which was $46.05 per share. On January 3, 2018, the Compensation Committee determined the degree to which the long–term incentive compensation arrangement approved for the fiscal 2015 2017 performance period was attained, and the resulting payout level relative to the target amount for each of the metrics that were established by the Compensation Committee in 2015. As a result, the Compensation Committee determined that a total of 23,299 performance shares were earned by our executive officers, which performance shares vested on January 3, 2018. The vesting date fair value of the performance shares was based on the closing sales price of our common stock on the vesting date, which was $42.20 per share. All related stock based compensation cost for these vested performance shares was expensed accordingly during the three year performance period ended October 31, 2017. On January 3, 2018, the Compensation Committee also approved a long–term incentive compensation arrangement for our executive officers in the form of restricted shares and performance stock units (“PSUs”) under the 2016 Equity Plan, which will be payable in shares of our common stock if earned and vested. The awards were 25% time based vesting and 75% performance–based vesting. The three year performance period for the PSUs is fiscal 2018 through fiscal 2020. On that date, the Compensation Committee granted a total of 14,810 shares of time based restricted stock to our executive officers. The restricted shares vest in thirds over three years from the date of grant provided the recipient remains employed through that date. The grant date fair value of the restricted shares was based upon the closing sales price of our common stock on the date of grant, which was $42.20 per share. On January 3, 2018, the Compensation Committee also granted a total target number of 21,891 PSUs to our executive officers designated as “PSU – TSR”. These PSUs were weighted as approximately 40% of the overall 2018 executive long–term incentive compensation arrangement and will vest and be paid based upon the total shareholder return of our common stock over the three year period of fiscal 2018–2020, relative to the total shareholder return of the companies in a specified peer group over that period. Participants will have the ability to earn between 50% of the target number of the PSUs – TSR for achieving threshold performance and 200% of the target number of the PSUs – TSR for achieving maximum performance. The grant date fair value of the PSUs – TSR was $45.68 per PSU and was calculated using the Monte Carlo approach. On January 3, 2018, the Compensation Committee also granted a total target number of 20,734 PSUs to our executive officers designated as “PSU – ROIC”. These PSUs were weighted as approximately 35% of the overall 2018 executive long–term incentive compensation arrangement and will vest and be paid based upon the achievement of pre–established goals related to our average return on invested capital over the three–year period of fiscal 2018–2020. Participants will have the ability to earn between 50% of the target number of the PSUs –ROIC for achieving threshold performance and 200% of the target number of the PSUs ROIC for achieving maximum performance. The grant date fair value of the PSUs – ROIC was based on the closing sales price of our common stock on the grant date, which was $42.20 per share. On November 15, 2017, the Compensation Committee granted a total of 2,364 shares of time–based restricted stock to our non executive employees. The restricted shares vest in thirds over three years from the date of grant provided the recipient remains employed through that date. The grant date fair value of the restricted shares was based upon the closing sales price of our common stock on the date of grant, which was $42.30 per share. On March 9, 2017, the Compensation Committee granted a total of 14,920 shares of time based restricted stock to our non employee directors. The restricted shares vest in full one year from the date of grant provided the recipient remains on the board of directors through that date. The grant date fair value of the restricted shares was based on the closing sales price of our common stock on the grant date, which was $26.80 per share. On January 5, 2017, the Compensation Committee determined the degree to which the long term incentive compensation arrangement approved for the fiscal 2014 2016 performance period was attained, and the resulting payout level relative to the target amount for each of the metrics that were established by the Compensation Committee in 2014. As a result, the Compensation Committee determined that a total of 30,683 performance shares were earned by our executive officers, which performance shares vested on January 5, 2017. The vesting date fair value of the performance shares was based on the closing sales price of our common stock on the vesting date, which was $33.90 per share. All related stock–based compensation cost for these vested performance shares was expensed accordingly during the three year performance period ended October 31, 2016. On January 5, 2017, the Compensation Committee also approved a long term incentive compensation arrangement for our executive officers in the form of restricted shares and PSUs under the 2016 Equity Plan, which will be payable in shares of our common stock if earned and vested. The awards were 25% time based vesting and 75% performance based vesting. The three year performance period for the PSUs is fiscal 2017 through fiscal 2019. On that date, the Compensation Committee granted a total of 14,747 shares of time based restricted stock to our executive officers. The restricted shares vest in thirds over three years from the date of grant provided the recipient remains employed through that date. The grant date fair value of the restricted shares was based upon the closing sales price of our common stock on the date of grant, which was $33.90 per share. On January 5, 2017, the Compensation Committee also granted a total target number of 18,496 PSUs to our executive officers designated as “PSU – TSR”. These PSUs were weighted as approximately 40% of the overall 2017 executive long term incentive compensation arrangement and will vest and be paid based upon the total shareholder return of our common stock over the three–year period of fiscal 2017 2019, relative to the total shareholder return of the companies in a specified peer group over that period. Participants will have the ability to earn between 50% of the target number of the PSUs – TSR for achieving threshold performance and 200% of the target number of the PSUs – TSR for achieving maximum performance. The grant date fair value of the PSUs – TSR was $43.25 per PSU and was calculated using the Monte Carlo approach. On January 5, 2017, the Compensation Committee also granted a total target number of 20,647 PSUs to our executive officers designated as “PSU – ROIC”. These PSUs were weighted as approximately 35% of the overall 2017 executive long term incentive compensation arrangement and will vest and be paid based upon the achievement of pre established goals related to our average return on invested capital over the three–year period of fiscal 2017 2019. Participants will have the ability to earn between 50% of the target number of the PSUs ROIC for achieving threshold performance and 200% of the target number of the PSUs ROIC for achieving maximum performance. The grant date fair value of the PSUs – ROIC was based on the closing sales price of our common stock on the grant date, which was $33.90 per share. On March 10, 2016, the Compensation Committee granted a total of 9,170 shares of time based restricted stock to our non employee directors under the 2016 Equity Plan. The restricted shares vest in full one year from the date of grant provided the recipient remains on the board of directors through that date. The grant date fair value of the restricted shares was based on the closing sales price of our common stock on the grant date which was $30.52 per share. On January 4, 2016, 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% time based vesting and 75% performance based vesting. The three–year performance period is fiscal 2016 through fiscal 2018. On that date, the Compensation Committee granted a total of 17,684 shares of time–based restricted stock to our executive officers. The restricted shares vest in thirds over three years from the date of grant provided the recipient remains employed through that date. The grant date fair value of the restricted shares was based upon the closing sales price of our common stock on the date of grant which was $26.04 per share. On January 4, 2016, the Compensation Committee also granted a total target number of 24,023 performance shares to our executive officers designated as “Performance Shares – TSR”. The shares were weighted as 40% of the overall long term incentive compensation arrangement and will vest and be paid based upon the total shareholder return of our common stock over a three year period, relative to the total shareholder return of the companies in a specified peer group over that period. Participants will have the ability to earn between 50% of the target number of shares for achieving threshold performance and 200% of the target number of shares for achieving maximum performance. The grant date fair value of the Performance Shares TSR was $30.67 per share and was calculated using the Monte Carlo approach. On January 4, 2016, the Compensation Committee also granted a total target number of 24,759 performance shares to our executive officers designated as “Performance Shares – ROIC”. These shares were weighted as 35% of the overall long term incentive compensation arrangement and will vest and be paid based upon the achievement of pre–established goals related to our average return on invested capital over the three year period. Participants will have the ability to earn between 50% of the target number of shares for achieving threshold performance and 200% of the target number of shares for achieving maximum performance. The grant date fair value of the Performance Shares ROIC was based on the closing sales price of our common stock on the grant date which was $26.04 per share. A reconciliation of the Company’s restricted stock, performance share and PSU activity and related information is as follows: Number Weighted Average Grant of Shares Date Fair Value Unvested at October 31, 2017 157,809 $ 32.05 Shares or units granted 68,913 43.82 Shares or units vested (40,283 ) 30.20 Shares or units cancelled (6,385 ) 33.67 Shares withheld (11,706 ) 32.19 Unvested at October 31, 2018 168,348 $ 37.24 During fiscal 2018, 2017, and 2016, we recorded approximately $2.5 million, $1.7 million and $1.6 million, respectively, of stock based compensation expense related to grants under the 2008 Plan and the 2016 Equity Plan. As of October 31, 2018, there was an estimated $2.9 million of total unrecognized stock based compensation cost that we expect to recognize by the end of the first quarter of fiscal 2021.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Oct. 31, 2018
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	9. RELATED PARTY TRANSACTIONS As of October 31, 2018, we owned approximately 35% of the outstanding shares of a Taiwanese based contract manufacturer, Hurco Automation, Ltd. (“HAL”). HAL’s scope of activities includes the design, manufacture, sales and distribution of industrial automation products, software systems and related components, including control systems and components produced under contract for sale exclusively to us. We are accounting for this investment using the equity method. The investment of $4.0 million and $3.6 million at October 31, 2018 and 2017, respectively, is included in Investments and other assets, net on the Consolidated Balance Sheets. Purchases of controls from HAL amounted to $11.3 million, $10.0 million and $9.9 million in fiscal 2018, 2017 and 2016, respectively. Sales of control component parts to HAL were $197,000, $139,000 and $623,000 for the fiscal years ended October 31, 2018, 2017 and 2016, respectively. Trade payables to HAL were $3.4 million and $2.5 million at October 31, 2018 and 2017, respectively. Trade receivables from HAL were $68,000 and $30,000 at October 31, 2018 and 2017, respectively. Summary unaudited financial information for HAL’s operations and financial condition is as follows (in thousands): 2018 2017 2016 Net Sales $ 17,841 $ 15,800 $ 13,948 Gross Profit 2,944 2,457 2,240 Operating Income 1,534 1,037 952 Net Income 1,845 1,320 1,323 Current Assets $ 12,870 $ 11,310 $ 10,238 Non current Assets 4,579 4,440 3,733 Current Liabilities 4,666 3,916 2,572

CONTINGENCIES AND LITIGATION

CONTINGENCIES AND LITIGATION	12 Months Ended
	Oct. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
CONTINGENCIES AND LITIGATION	10. 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, 2018
Standard Product Warranty Disclosure [Abstract]
GUARANTEES AND PRODUCT WARRANTIES	11. 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, 2018, we had 23 outstanding third party payment guarantees totaling approximately $0.6 million. The terms of these guarantees are consistent with the underlying customer financing terms. Upon shipment of a machine, the customer assumes the risk of ownership. The customer does not obtain title, however, until it has paid for the machine. A retention of title clause allows us to recover the machine if the customer defaults on the financing. We accrue liabilities under these guarantees at fair value, which amounts are insignificant. 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. 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): 2018 2017 2016 Balance, beginning of year $ 1,772 $ 1,523 $ 2,186 Provision for warranties during the year 4,121 3,379 2,715 Charges to the accrual (3,326 ) (3,203 ) (3,349 ) Impact of foreign currency translation (68 ) 73 (29 ) Balance, end of year $ 2,499 $ 1,772 $ 1,523 The increase in our warranty reserve from fiscal 2017 to fiscal 2018 was primarily due to an increase in the number of machines under warranty resulting from increased sales volume. The increase in our warranty reserve from fiscal 2016 to fiscal 2017 was primarily due to an increase in unit sales volume, as well as an increase in average warranty cost per machine as our product mix of machines under warranty shifted to more complex, higher-performance machines.

OPERATING LEASES

OPERATING LEASES	12 Months Ended
	Oct. 31, 2018
Leases, Operating [Abstract]
OPERATING LEASES	12. OPERATING LEASES We lease facilities, certain equipment and vehicles under operating leases that expire at various dates through 2025. Future payments required under operating leases as of October 31, 2018, are summarized as follows (in thousands): 2019 $ 3,504 2020 2,320 2021 1,543 2022 1,312 2023 and thereafter 1,180 Total $ 9,859 Lease expense for the fiscal years ended October 31, 2018, 2017, and 2016 was $4.5 million, $4.4 million, and $4.5 million, respectively.

QUARTERLY FINANCIAL INFORMATION

QUARTERLY FINANCIAL INFORMATION	12 Months Ended
	Oct. 31, 2018
Quarterly Financial Information Disclosure [Abstract]
QUARTERLY FINANCIAL INFORMATION	13. QUARTERLY FINANCIAL INFORMATION (Unaudited) First Second Third Fourth Quarter Quarter Quarter Quarter 2018 (In thousands, except per share data) Sales and service fees $ 68,444 $ 70,424 $ 78,752 $ 83,051 Gross profit 20,121 19,313 24,521 27,851 Gross profit margin 29 % 27 % 31 % 34 % Selling, general and administrative expenses 12,966 13,320 15,160 16,564 Operating income 7,155 5,993 9,361 11,287 Provision for income taxes 4,500 1,656 2,511 2,339 Net income 2,937 3,751 6,500 8,302 Income per common share – basic $ 0.44 $ 0.55 $ 0.96 $ 1.24 Income per common share – diluted $ 0.43 $ 0.55 $ 0.95 $ 1.22 First Second Third Fourth Quarter Quarter Quarter Quarter 2017 (In thousands, except per share data) Sales and service fees $ 48,744 $ 58,222 $ 60,770 $ 75,931 Gross profit 12,586 17,068 17,540 23,370 Gross profit margin 26 % 29 % 29 % 31 % Selling, general and administrative expenses 11,167 11,714 12,395 14,385 Operating income 1,419 5,354 5,145 8,985 Provision for income taxes 543 1,467 1,353 2,238 Net income 879 3,646 3,888 6,702 Income per common share – basic $ 0.13 $ 0.55 $ 0.58 $ 1.01 Income per common share – diluted $ 0.13 $ 0.54 $ 0.58 $ 1.00

SEGMENT INFORMATION

SEGMENT INFORMATION	12 Months Ended
	Oct. 31, 2018
Segment Reporting [Abstract]
SEGMENT INFORMATION	14. SEGMENT INFORMATION We operate in a single segment: industrial automation equipment. We design, manufacture and sell computerized (i.e., Computer Numeric Control) machine tools, consisting primarily of vertical machining centers (mills) and turning centers (lathes), to companies in the metal cutting industry through a worldwide sales, service and distribution network. Although the majority of our computer control systems and software products are proprietary, they predominantly use industry standard personal computer components. Our computer control systems and software products are primarily sold as integral components of our computerized machine tool products. We also provide machine tool components, software options, control upgrades, accessories and replacement parts for our products, as well as customer service and training and applications support. We principally sell our products through more than 173 independent agents and distributors throughout the Americas, Europe and Asia. Our line is the primary line for the majority of our distributors globally even though some may carry competitive products. We also have our own direct sales and service organizations in China, France, Germany, India, Italy, Poland, Singapore, South Africa, Taiwan, the United Kingdom, and certain areas of the United States, which are among the world's principal machine tool consuming countries. During fiscal 2018, no distributor accounted for more than 5% of our sales and service fees. In fiscal 2018, approximately 71% of our revenues were from customers located outside of the U.S. and no single end user of our products accounted for more than 5% of our total sales and service fees. The following table sets forth the contribution of each of our product groups to our total sales and service fees during each of the past three fiscal years (in thousands): Net Sales and Service Fees by Product Category Year ended October 31, 2018 2017 2016 Computerized Machine Tools $ 261,710 $ 209,311 $ 195,618 Computer Control Systems and Software † 2,870 2,324 2,078 Service Parts 27,501 24,255 21,908 Service Fees 8,590 7,777 7,685 Total $ 300,671 $ 243,667 $ 227,289 † The following table sets forth revenues by geographic area, based on customer location, for each of the past three fiscal years (in thousands): Revenues by Geographic Area Year Ended October 31, 2018 2017 2016 United States of America $ 87,231 $ 70,912 $ 70,630 Canada 2,915 3,801 3,881 Central & South Americas 2,194 1,844 1,950 Total Americas 92,340 76,557 76,461 Germany 62,346 48,786 44,411 United Kingdom 34,216 28,019 25,313 Italy 16,691 13,416 12,947 France 15,815 13,917 13,787 Other Europe 32,034 27,583 27,150 Total Europe 161,102 131,721 123,608 China 27,748 22,456 16,644 Other Asia Pacific 17,937 10,238 8,989 Total Asia Pacific 45,685 32,694 25,633 Other Foreign 1,544 2,695 1,587 Grand Total $ 300,671 $ 243,667 $ 227,289 Long lived tangible assets, net by geographic area, were (in thousands): As of October 31, 2018 2017 2016 United States of America $ 8,375 $ 7,599 $ 7,846 Foreign countries 6,617 6,185 5,911 $ 14,992 $ 13,784 $ 13,757 Net assets by geographic area were (in thousands): As of October 31, 2018 2017 2016 Americas $ 96,348 $ 86,432 $ 84,040 Europe 74,558 70,536 60,861 Asia Pacific 51,947 46,117 40,574 $ 222,853 $ 203,085 $ 185,475

NEW ACCOUNTING PRONOUNCEMENTS

NEW ACCOUNTING PRONOUNCEMENTS	12 Months Ended
	Oct. 31, 2018
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
NEW ACCOUNTING PRONOUNCEMENTS	15. NEW ACCOUNTING PRONOUNCEMENTS Recently Adopted Accounting Pronouncements: In March 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016–09, Compensation – Stock Compensation (Topic 718), which simplifies several areas of accounting for share–based compensation arrangements, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016–09 is effective for our fiscal year 2018, including interim periods within the fiscal year. Early adoption is permitted. We elected to early adopt the new guidance in the fourth quarter of fiscal 2017 which required us to reflect any adjustments as of November 1, 2016, the beginning of the annual period that includes the interim period of adoption. Upon adoption, excess tax benefits or deficiencies from share–based award activity are reflected in the consolidated statements of income as a component of the provision for income taxes, whereas they previously were recognized in equity. We also elected to account for forfeitures as they occur, rather than estimate expected forfeitures. The adoption of ASU 2016–09 resulted in a net cumulative–effect adjustment of a $0.2 million increase to retained earnings as of November 1, 2017, mostly related to the recognition of the previously unrecognized excess tax benefits using the modified retrospective method. The previously unrecognized excess tax effects were recorded as a reduction to tax liability or an increase to deferred tax asset. We adopted the aspects of the standard affecting the cash flow presentation retrospectively, and accordingly, to conform to the current year presentation, we reclassified $146,000 of employee taxes paid for withheld shares under operating activities to financing activities for the years ended October 31, 2016 on our consolidated statements of cash flows. In August 2014, the FASB issued ASU No. 2014–15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In July 2015, the FASB issued ASU No. 2015–11, Inventory (Topic 330): Simplifying the Measurement of Inventory In August 2016, the FASB issued ASU No. 2016–15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments New Accounting Pronouncements: Between May 2014 and December 2016, the FASB issued ASU No. 2014–09, Revenue from Contracts with Customers (Topic 606) Between February 2016 and July 2018, the FASB issued ASU No. 2016–02, Leases (Topic 842) In August 2017, the FASB issued ASU No. 2017–12, Derivatives and Hedging (Topic 815) Targeted Improvements to Accounting for Hedging Activities . In February 2018, the FASB issued ASU No. 2018–02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the FASB issued ASU No. 2018–03, Technical Corrections and Improvements to Financial Instruments–Overall (Subtopic 825–10): Recognition and Measurement of Financial Assets and Financial Liabilities, Financial Instruments – Overall (Subtopic 825–10) Between May 2017 and June 2018, the FASB issued ASU No. 2017–09 and ASU No. 2018–07, Compensation – Stock Compensation (Topic 718) There have been no other significant changes in the Company’s critical accounting policies and estimates during the fiscal year ended October 31, 2018.

Schedule II - Valuation and Qua

Schedule II - Valuation and Qualifying Accounts and Reserves	12 Months Ended
	Oct. 31, 2018
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]
Schedule II - Valuation and Qualifying Accounts and Reserves	Schedule II – Valuation and Qualifying Accounts and Reserves for the Years Ended October 31, 2018, 2017 and 2016 Description Balance at Charged to/ Charged Deductions Balance Allowance for doubtful accounts for the year ended: October 31, 2018 $ 639 $ 394 $ – $ 6 (1) $ 1,027 October 31, 2017 $ 664 $ 46 $ – $ 71 (1) $ 639 October 31, 2016 $ 739 $ (15 ) $ – $ 60 (1) $ 664 Income tax valuation allowance for the year ended: October 31, 2018 $ 2,282 $ 253 $ – $ 429 $ 2,106 October 31, 2017 $ 2,067 $ 515 $ – $ 300 $ 2,282 October 31, 2016 $ 1,485 $ 587 $ – $ 5 $ 2,067 (1)

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Oct. 31, 2018
Accounting Policies [Abstract]
Consolidation	Consolidation subsidiaries. We have a 35% ownership interest in a Taiwan affiliate that is accounted for using the equity method. Our investment in that affiliate was approximately $4.0 million and $3.6 million as of October 31, 2018 and 2017, respectively. That investment is included in Investments and other assets, net on the accompanying Consolidated Balance Sheets. Intercompany accounts and transactions have been eliminated.
Reclassifications	Reclassifications.
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 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, 2018 were a net loss of $10.6 million and are included in Accumulated other comprehensive loss. Foreign currency transaction gains and losses are recorded as income or expense as incurred and are recorded in Other expense, net.
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, 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 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 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, 2018, in Euros, Pounds Sterling and New Taiwan Dollars with set maturity dates ranging from November 2018 through October 2019. The contract amount at forward rates in U.S. Dollars at October 31, 2018 for Euros and Pounds Sterling was $32.9 million and $9.6 million, respectively. The contract amount at forward rates in U.S. Dollars for New Taiwan Dollars was $34.3 million at October 31, 2018. At October 31, 2018, we had approximately $156,000 of gains, net of tax, related to cash flow hedges deferred in Accumulated other comprehensive loss. Of this amount, $605,000 represented unrealized gains, net of tax, related to cash flow hedge instruments that remain subject to currency fluctuation risk. The majority of these deferred gains will be recorded as an adjustment to Cost of sales and service in periods through October 2019, in which the corresponding inventory that is the subject of the related hedge contract is sold, as described above. 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 million in November 2017. We designated this forward contract as a hedge of our net investment in Euro denominated assets. We selected the forward method under the FASB guidance related to the accounting for derivatives instruments and hedging activities. The forward method requires all changes in the fair value of the contract to be reported as a cumulative translation adjustment, net of tax, in Accumulated other comprehensive loss in the same manner as the underlying hedged net assets. This forward contract matured in November 2018 and we entered into a new forward contract for the same notional amount that is set to mature in November 2019. As of October 31, 2018, we had a realized gain of $ 652 153 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 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, 2018, in Euros, South African Rand and New Taiwan Dollars with set maturity dates ranging from November 2018 through July 2019. The contract amounts at forward rates in U.S. Dollars at October 31, 2018 for Euros and South African Rand totaled $22.4 million. The contract amount at forward rates in U.S. Dollars for New Taiwan Dollars was $37.6 million at October 31, 2018. 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. As of October 31, 2018 and October 31, 2017, all derivative instruments were recorded at fair value on the balance sheets as follows (in thousands): 2018 2017 Balance Sheet Fair Balance Sheet Fair Derivatives Location Value Location Value Designated as Hedging Instruments: Foreign exchange forward contracts Derivative assets $ 2,654 Derivative assets $ 305 Foreign exchange forward contracts Derivative liabilities $ 1,616 Derivative liabilities $ 1,508 Not Designated as Hedging Instruments: Foreign exchange forward contracts Derivative assets $ 431 Derivative assets $ 291 Foreign exchange forward contracts Derivative liabilities $ 404 Derivative liabilities $ 224 Effect of Derivative Instruments on the Consolidated Balance Sheets, Statements of Changes in Shareholders’ Equity and Statements of Income Derivative instruments had the following effects on our Consolidated Balance Sheets, Statements of Changes in Shareholders’ Equity and Statements of Income, net of tax, during the fiscal years ended October 31, 2018, 2017, and 2016 (in thousands): Amount of Gain (Loss) Location of Gain (Loss) Amount of Gain (Loss) Recognized in Reclassified from Reclassified from Other Comprehensive Other Comprehensive Other Comprehensive Derivatives Income (Loss) Income (Loss) Income (Loss) 2018 2017 2016 2018 2017 2016 Designated as Hedging Instruments: (Effective Portion) Foreign exchange forward contracts Cost of sales – Intercompany sales/purchases $ 155 $ (709 ) $ 1,431 and service $ (1,355 ) $ 1,354 $ 1,647 Foreign exchange forward contract – Net Investment $ 136 $ (96 ) $ 28 We did not recognize any gains or losses as a result of hedges deemed ineffective during fiscal 2018. We recognized a gain of $18,000 during the fiscal We recognized the following gains and losses in our Consolidated Statements of Income during the fiscal years ended October 31, 2018, 2017, and 2016 on derivative instruments not designated as hedging instruments (in thousands): Location of Gain (Loss) Amount of Gain (Loss) Derivatives Recognized in Operations Recognized in Operations 2018 2017 2016 Not Designated as Hedging Instruments: Foreign exchange forward contracts Other expense, net $ (963 ) $ (1,001 ) $ 536 The following table presents the changes in the components of Accumulated other comprehensive loss, net of tax, for the fiscal years ended October 31, 2018 and 2017 (in thousands): Foreign Cash Currency Flow Translation Hedges Total Balance, October 31, 2016 $ (12,325 ) $ 1,282 $ (11,043 ) Other comprehensive income (loss) before reclassifications 4,916 (709 ) 4,207 Reclassifications – (1,354 ) (1,354 ) Balance, October 31, 2017 $ (7,409 ) $ (781 ) $ (8,190 ) Other comprehensive income (loss) before reclassifications (3,183 ) 155 (3,028 ) Reclassifications – 1,355 1,355 Balance, October 31, 2018 $ (10,592 ) $ 729 $ (9,863 )
Inventories	Inventories . Inventories are stated at the lower of cost or net realizable value, 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 carri ed at cost. Depreciation and amortization of assets are provided primarily under the straight–line method over the shorter of the estimated useful lives or the lease terms as follows: Number of Years Land Indefinite Building 40 Machines 7 – 10 Shop and office equipment 3 – 7 Building & leasehold improvements 3 – 40 Total depreciation and amortization expense recognized for propert y and equipment was $2.5 million for each of the fiscal years ended October 31, 2018, 2017 and 2016.
Revenue Recognition	Revenue Recognition. We recognize revenue from sales of our machine tool systems upon delivery of the product to the customer or distributor, 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. 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 for our three–axis machines to be inconsequential and perfunctory. We allocate the transaction prices and recognize revenue associated with the installation process for our five–axis machines on a prorata basis over the period of the installation process. Service fees from maintenance contracts are deferred and recognized in earnings on a prorata basis over the term of the contract, and are generally sold on a stand–alone basis. Sales related to software upgrades are recognized when shipped in conformity with U.S. Generally Accepted Accounting Principles as promulgated by 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.
Allowance for Doubtful Accounts	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 we charge off uncollectible balances when all reasonable collection efforts have been exhausted.
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 11 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 $4.7 million, $4.2 million, and $4.9 million, in fiscal 2018, 2017, and 2016, respectively.
Software Development Costs	Software Development Costs. We sell software products that are essential to our machine tools. 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 $2.3 million in fiscal 2018, $2.3 million in fiscal 2017, and $2.2 million in fiscal 2016 related to software development projects. Amortization expense for software development costs was $1.1 million, $1.0 million, and $1.2 million, for the fiscal years ended October 31, 2018, 2017, and 2016, respectively. Accumulated amortization at October 31, 2018 and 2017 was $18.5 million and $17.4 million, respectively. Estimated amortization expense for the remaining unamortized software development costs for the fiscal years ending October 31, is as follows (in thousands): Fiscal Year Amortization Expense 2019 1,000 2020 1,300 2021 1,500 2022 1,400 2023 1,050
Goodwill and Intangible Assets	Goodwill and Intangible Assets. There were no impairments recognized with respect to the carrying value of goodwill or intangible assets for the years ended October 31, 2018, 2017 or 2016. As of October 31, 2018, the balances of intangible assets, other than goodwill, were as follows (in thousands): Weighted Average Amortization Period Gross Intangible Assets Accumulated Amortization Net Intangible Assets Tradenames and trademarks indefinite $ 60 $ – $ 60 Tradenames and trademarks 13 years 238 (98 ) 140 Customer relationships 15 years 255 (148 ) 107 Technology 13 years 692 (284 ) 408 Patents 6 years 2,973 (2,790 ) 183 Other 8 years 377 (337 ) 40 Total $ 4,595 $ (3,657 ) $ 938 As of October 31, 2017, the balances of intangible assets, other than goodwill, were as follows (in thousands): Weighted Average Amortization Period Gross Intangible Assets Accumulated Amortization Net Intangible Assets Tradenames and trademarks indefinite $ 60 $ – $ 60 Tradenames and trademarks 13 years 245 (81 ) 164 Customer relationships 15 years 257 (132 ) 125 Technology 13 years 713 (239 ) 474 Patents 6 years 2,973 (2,765 ) 208 Other 8 years 378 (333 ) 45 Total $ 4,626 $ (3,550 ) $ 1,076 Intangible asset amortization expense was $107,000, $136,000, and $137,000 for fiscal 2018, 2017 and 2016, respectively. Annual intangible asset amortization expense is estimated to be $117,000 per year for fiscal years 2019 through 2023.
Impairment of Long-Lived Assets	Impairment of Long Lived Assets. Annually, or when there are indicators of impairment, we 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 guidance on “Earnings Per Share.” The following table presents a reconciliation of our basic and diluted earnings per share computation: Fiscal Year Ended October 31, (in thousands, except per share amounts) 2018 2017 2016 Basic Diluted Basic Diluted Basic Diluted Net income $ 21,490 $ 21,490 $ 15,115 $ 15,115 $ 13,292 $ 13,292 Undistributed earnings allocated to participating shares (132 ) (132 ) (100 ) (100 ) (76 ) (76 ) Net income applicable to common Shareholders $ 21,358 $ 21,358 $ 15,015 $ 15,015 $ 13,216 $ 13,216 Weighted average shares outstanding 6,700 6,700 6,615 6,615 6,569 6,569 Stock options and contingently issuable securities – 71 – 65 – 73 6,700 6,771 6,615 6,680 6,569 6,642 Income per share $ 3.19 $ 3.15 $ 2.27 $ 2.25 $ 2.01 $ 1.99
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. In December 2017, the Tax Cuts and Jobs Act (the “Tax Reform Act”) was enacted. The Tax Reform Act, among other things, lowered the U.S. corporate tax rate from 35% to 21%, implemented a territorial tax system from a worldwide system and imposed a one–time tax on deemed repatriation of earnings of foreign subsidiaries. As a result of the reduction in the federal corporate income tax rate, we were required to revalue our net deferred tax asset to account for the future impact of lower corporate tax rates on this deferred amount and record any change in the value of such asset as a one–time non–cash charge on its income statement. This resulted in additional expense of $0.6 million. Additionally, the Tax Reform Act required a transition tax on any net accumulated earnings and profits generated by foreign subsidiaries as of the two required measurement dates, November 2, 2017 and December 31, 2017 while providing for future tax–free repatriation of such earnings through a 100% dividends–received deduction. This resulted in a one–time transition tax on the deemed repatriation of net accumulated foreign earnings and profits of $2.2 million, for a total impact of $2.8 million. As such, as of December 31, 2017, all of the Company’s accumulated earnings and profits are deemed repatriated. We have not provided for any U.S. income taxes on the undistributed earnings of our foreign subsidiaries beginning January 1, 2018 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.
Estimates	Estimates.

SUMMARY OF SIGNIFICANT ACCOUN_3

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

INVENTORIES (Tables)

INVENTORIES (Tables)	12 Months Ended
	Oct. 31, 2018
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories as of October 31, 2018 and 2017 are summarized below (in thousands): 2018 2017 Purchased parts and sub–assemblies $ 38,303 $ 33,045 Work–in–process 22,786 20,008 Finished goods 76,520 66,895 $ 137,609 $ 119,948

FINANCIAL INSTRUMENTS (Tables)

FINANCIAL INSTRUMENTS (Tables)	12 Months Ended
	Oct. 31, 2018
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, 2018 and 2017 (in thousands): Assets Liabilities October 31, October 31, October 31, October 31, 2018 2017 2018 2017 Level 1 Deferred compensation $ 1,723 $ 1,638 $ – $ – Level 2 Derivatives $ 3,085 $ 596 $ 2,020 $ 1,732

INCOME TAXES (Tables)

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

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	12 Months Ended
	Oct. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of Stock Option Activity	A summary of the status of the options as of October 31, 2018, 2017 and 2016 and the related activity for the year is as follows: Shares Under Weighted Average Grant Option Date Fair Value Balance October 31, 2015 107,889 $ 20.25 Granted – – Cancelled – – Expired – – Exercised – – Balance October 31, 2016 107,889 $ 20.25 Granted – – Cancelled – – Expired – – Exercised (29,164 ) $ 18.31 Balance October 31, 2017 78,725 $ 20.97 Granted – – Cancelled – – Expired – – Exercised (41,680 ) $ 20.33 Balance October 31, 2018 37,045 $ 21.69
Schedule of Stock Options Outstanding and Exercisable	Stock options outstanding and exercisable on October 31, 2018, were as follows: Range of Exercise Prices Per Share Shares Under Option Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Life in Years Outstanding and Exercisable 18.13 3,738 18.13 1.5 21.45 21,748 21.45 3.1 23.30 11,559 23.30 4.1 $ 18.13 – 23.30 37,045 $ 21.69 3.3
Schedule of Restricted Stock Activity	A reconciliation of the Company’s restricted stock, performance share and PSU activity and related information is as follows: Number Weighted Average Grant of Shares Date Fair Value Unvested at October 31, 2017 157,809 $ 32.05 Shares or units granted 68,913 43.82 Shares or units vested (40,283 ) 30.20 Shares or units cancelled (6,385 ) 33.67 Shares withheld (11,706 ) 32.19 Unvested at October 31, 2018 168,348 $ 37.24

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	12 Months Ended
	Oct. 31, 2018
Related Party Transactions [Abstract]
Schedule of Financial Information	Summary unaudited financial information for HAL’s operations and financial condition is as follows (in thousands): 2018 2017 2016 Net Sales $ 17,841 $ 15,800 $ 13,948 Gross Profit 2,944 2,457 2,240 Operating Income 1,534 1,037 952 Net Income 1,845 1,320 1,323 Current Assets $ 12,870 $ 11,310 $ 10,238 Non current Assets 4,579 4,440 3,733 Current Liabilities 4,666 3,916 2,572

GUARANTEES AND PRODUCT WARRAN_2

GUARANTEES AND PRODUCT WARRANTIES (Tables)	12 Months Ended
	Oct. 31, 2018
Standard Product Warranty Disclosure [Abstract]
Reconciliation of Warranty Reserve	A reconciliation of the changes in our warranty reserve is as follows (in thousands): 2018 2017 2016 Balance, beginning of year $ 1,772 $ 1,523 $ 2,186 Provision for warranties during the year 4,121 3,379 2,715 Charges to the accrual (3,326 ) (3,203 ) (3,349 ) Impact of foreign currency translation (68 ) 73 (29 ) Balance, end of year $ 2,499 $ 1,772 $ 1,523

OPERATING LEASES (Tables)

OPERATING LEASES (Tables)	12 Months Ended
	Oct. 31, 2018
Leases, Operating [Abstract]
Schedule of Future Minimum Payments under Operating Leases	We lease facilities, certain equipment and vehicles under operating leases that expire at various dates through 2025. Future payments required under operating leases as of October 31, 2018, are summarized as follows (in thousands): 2019 $ 3,504 2020 2,320 2021 1,543 2022 1,312 2023 and thereafter 1,180 Total $ 9,859

QUARTERLY FINANCIAL INFORMATI_2

QUARTERLY FINANCIAL INFORMATION (Tables)	12 Months Ended
	Oct. 31, 2018
Quarterly Financial Information Disclosure [Abstract]
Schedule of Selected Quarterly Financial Information	First Second Third Fourth Quarter Quarter Quarter Quarter 2018 (In thousands, except per share data) Sales and service fees $ 68,444 $ 70,424 $ 78,752 $ 83,051 Gross profit 20,121 19,313 24,521 27,851 Gross profit margin 29 % 27 % 31 % 34 % Selling, general and administrative expenses 12,966 13,320 15,160 16,564 Operating income 7,155 5,993 9,361 11,287 Provision for income taxes 4,500 1,656 2,511 2,339 Net income 2,937 3,751 6,500 8,302 Income per common share – basic $ 0.44 $ 0.55 $ 0.96 $ 1.24 Income per common share – diluted $ 0.43 $ 0.55 $ 0.95 $ 1.22 First Second Third Fourth Quarter Quarter Quarter Quarter 2017 (In thousands, except per share data) Sales and service fees $ 48,744 $ 58,222 $ 60,770 $ 75,931 Gross profit 12,586 17,068 17,540 23,370 Gross profit margin 26 % 29 % 29 % 31 % Selling, general and administrative expenses 11,167 11,714 12,395 14,385 Operating income 1,419 5,354 5,145 8,985 Provision for income taxes 543 1,467 1,353 2,238 Net income 879 3,646 3,888 6,702 Income per common share – basic $ 0.13 $ 0.55 $ 0.58 $ 1.01 Income per common share – diluted $ 0.13 $ 0.54 $ 0.58 $ 1.00

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	12 Months Ended
	Oct. 31, 2018
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, 2018 2017 2016 Computerized Machine Tools $ 261,710 $ 209,311 $ 195,618 Computer Control Systems and Software † 2,870 2,324 2,078 Service Parts 27,501 24,255 21,908 Service Fees 8,590 7,777 7,685 Total $ 300,671 $ 243,667 $ 227,289 †
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): Revenues by Geographic Area Year Ended October 31, 2018 2017 2016 United States of America $ 87,231 $ 70,912 $ 70,630 Canada 2,915 3,801 3,881 Central & South Americas 2,194 1,844 1,950 Total Americas 92,340 76,557 76,461 Germany 62,346 48,786 44,411 United Kingdom 34,216 28,019 25,313 Italy 16,691 13,416 12,947 France 15,815 13,917 13,787 Other Europe 32,034 27,583 27,150 Total Europe 161,102 131,721 123,608 China 27,748 22,456 16,644 Other Asia Pacific 17,937 10,238 8,989 Total Asia Pacific 45,685 32,694 25,633 Other Foreign 1,544 2,695 1,587 Grand Total $ 300,671 $ 243,667 $ 227,289
Schedule of Assets by Geographic Area	Long lived tangible assets, net by geographic area, were (in thousands): As of October 31, 2018 2017 2016 United States of America $ 8,375 $ 7,599 $ 7,846 Foreign countries 6,617 6,185 5,911 $ 14,992 $ 13,784 $ 13,757 Net assets by geographic area were (in thousands): As of October 31, 2018 2017 2016 Americas $ 96,348 $ 86,432 $ 84,040 Europe 74,558 70,536 60,861 Asia Pacific 51,947 46,117 40,574 $ 222,853 $ 203,085 $ 185,475

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Fair Value of Derivative Instruments) (Details) - USD ($) $ in Thousands	Oct. 31, 2018	Oct. 31, 2017
Derivatives, Fair Value [Line Items]
Derivative assets	$ 3,085	$ 596
Derivative liabilities	2,020	1,732
Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Derivative assets	2,654	305
Derivative liabilities	1,616	1,508
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Derivative assets	431	291
Derivative liabilities	$ 404	$ 224

SUMMARY OF SIGNIFICANT ACCOUN_5

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) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2016
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss)	$ 155	$ (709)	$ 1,431
Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | Intercompany sales/purchases [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss)	155	(709)	1,431
Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | Cost of Sales [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Reclassified from Other Comprehensive Income (Loss)	(1,355)	1,354	1,647
Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | Net Investment Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss)	136	(96)	28
Not Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | Other expenses, net [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Operations	$ (963)	$ (1,001)	$ 536

SUMMARY OF SIGNIFICANT ACCOUN_6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Changes in Components of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2016
Derivative [Line Items]
Beginning Balance	$ (8,190)	$ (11,043)
Other comprehensive income (loss) before reclassifications	(3,028)	4,207
Reclassifications	1,355	(1,354)	$ (1,647)
Ending Balance	(9,863)	(8,190)	(11,043)
Foreign Currency Translation [Member]
Derivative [Line Items]
Beginning Balance	(7,409)	(12,325)
Other comprehensive income (loss) before reclassifications	(3,183)	4,916
Reclassifications	0	0
Ending Balance	(10,592)	(7,409)	(12,325)
Cash Flow Hedges [Member]
Derivative [Line Items]
Beginning Balance	(781)	1,282
Other comprehensive income (loss) before reclassifications	155	(709)
Reclassifications	1,355	(1,354)
Ending Balance	$ 729	$ (781)	$ 1,282

SUMMARY OF SIGNIFICANT ACCOUN_7

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Estimated Useful Lives) (Details)	12 Months Ended
	Oct. 31, 2018
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
Building And Leasehold Improvements [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	3 years
Building And Leasehold Improvements [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	40 years

SUMMARY OF SIGNIFICANT ACCOUN_8

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Estimated Amortization Expense) (Details) $ in Thousands	Oct. 31, 2018USD ($)
Finite-Lived Intangible Assets [Line Items]
2,018	$ 1,000
2,019	1,300
2,020	1,500
2,021	1,400
2,022	$ 1,050

SUMMARY OF SIGNIFICANT ACCOUN_9

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Intangible Assets) (Details) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2018	Oct. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Gross Intangible Assets	$ 4,595	$ 4,626
Accumulated Amortization	(3,657)	(3,550)
Net Intangible Assets	938	1,076
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Intangible Assets	255	257
Accumulated Amortization	(148)	(132)
Net Intangible Assets	$ 107	$ 125
Weighted Average Amortization Period	15 years	15 years
Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Intangible Assets	$ 692	$ 713
Accumulated Amortization	(284)	(239)
Net Intangible Assets	$ 408	$ 474
Weighted Average Amortization Period	13 years	13 years
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Intangible Assets	$ 2,973	$ 2,973
Accumulated Amortization	(2,790)	(2,765)
Net Intangible Assets	$ 183	$ 208
Weighted Average Amortization Period	6 years	6 years
Other [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Intangible Assets	$ 377	$ 378
Accumulated Amortization	(337)	(333)
Net Intangible Assets	$ 40	$ 45
Weighted Average Amortization Period	8 years	8 years
Tradenames and trademarks [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Intangible Assets	$ 238	$ 245
Accumulated Amortization	(98)	(81)
Net Intangible Assets	140	164
Indefinite tradenames and trademarks	$ 60	$ 60
Weighted Average Amortization Period	13 years	13 years

SUMMARY OF SIGNIFICANT ACCOU_10

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Reconciliation of Basic and Diluted Earnings (Loss) Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Oct. 31, 2018	Jul. 31, 2018	Apr. 30, 2018	Jan. 31, 2018	Oct. 31, 2017	Jul. 31, 2017	Apr. 30, 2017	Jan. 31, 2017	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2016
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income	$ 8,302	$ 6,500	$ 3,751	$ 2,937	$ 6,702	$ 3,888	$ 3,646	$ 879	$ 21,490	$ 15,115	$ 13,292
Undistributed earnings allocated to participating shares - Basic									(132)	(100)	(76)
Undistributed earnings allocated to participating shares - Diluted									(132)	(100)	(76)
Net income applicable to common shareholders - Basic									21,358	15,015	13,216
Net income applicable to common shareholders - Diluted									$ 21,358	$ 15,015	$ 13,216
Weighted average shares outstanding - Basic									6,700	6,615	6,569
Weighted average shares outstanding -Diluted									6,771	6,680	6,642
Stock options and contingently issuable securities									71	65	73
Income per share -Basic	$ 1.24	$ 0.96	$ 0.55	$ 0.44	$ 1.01	$ 0.58	$ 0.55	$ 0.13	$ 3.19	$ 2.27	$ 2.01
Income per share - Diluted	$ 1.22	$ 0.95	$ 0.55	$ 0.43	$ 1	$ 0.58	$ 0.54	$ 0.13	$ 3.15	$ 2.25	$ 1.99

SUMMARY OF SIGNIFICANT ACCOU_11

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) € in Millions	Jan. 02, 2018	Dec. 31, 2017USD ($)	Dec. 31, 2018	Oct. 31, 2018USD ($)	Oct. 31, 2017USD ($)	Oct. 31, 2016USD ($)	Nov. 30, 2017EUR (€)
Translation of Foreign Currencies
Cumulative foreign currency translation adjustments				$ 10,600,000
Derivative financial instruments:
Notional principal of foreign exchange contracts				145,200,000	$ 134,300,000
(Losses) gains, net of tax, related to cash flow hedges deferred in Accumulated Other Comprehensive Loss				156,000
Unrealized gain (loss), net of tax, to be reclassified in next 12 months				605,000
Gain (loss) on hedge ineffectiveness					18,000	$ 18,000
Property and Equipment
Depreciation and amortization expense				2,500,000	2,500,000	2,500,000
Research and Development Costs
Research and development expenses				4,700,000	4,200,000	4,900,000
Software Development Costs
Capitalized costs				2,300,000	2,300,000	2,200,000
Accumulated amortization				18,500,000	17,400,000
Capitalized Computer Software, Amortization				1,100,000	1,000,000	1,200,000
Goodwill and Intangible Assets
Intangible assets amortization expense				107,000	$ 136,000	$ 137,000
Expected future amortization expense, 2019				117,000
Expected future amortization expense, 2020				117,000
Expected future amortization expense, 2021				117,000
Expected future amortization expense, 2022				117,000
Expected future amortization expense, 2023				$ 117,000
Income Tax
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%	35.00%		23.00%	34.00%	34.00%
Tax Cuts and Jobs Act Of 2017, effect of change in tax rate		$ 600,000		$ 596,000
Tax Cuts and Jobs Act Of 2017, effect of transition tax on deemed repatriation of accumulated foreign earnings		2,200,000
Tax Cuts and Jobs Act 2017, total impact on income tax expense (benefit)		$ 2,800,000
Subsequent Event [Member]
Income Tax
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent			21.00%
Forward Contracts NOT Designated as Hedging Instrument [Member]
Derivative financial instruments:
Derivative maturity date				November 2018 through July 2019.
Forward Contracts Designated as Net Investment Hedge [Member] | Designated as Hedging Instrument [Member]
Derivative financial instruments:
Notional principal of foreign exchange contracts | €							€ 3
Realized gain on net investment hedge				$ 652,000
Unrealized gain (loss), net of tax, recorded as cumulative translation adjustments in Accumulated Other Comprehensive Loss				$ 153,000
Derivative maturity date				November 2,019
Euros [Member] | Designated as Hedging Instrument [Member]
Derivative financial instruments:
Notional principal of foreign exchange contracts				$ 32,900,000
Pounds Sterling [Member] | Designated as Hedging Instrument [Member]
Derivative financial instruments:
Notional principal of foreign exchange contracts				9,600,000
New Taiwan Dollars [Member] | Designated as Hedging Instrument [Member]
Derivative financial instruments:
Notional principal of foreign exchange contracts				34,300,000
New Taiwan Dollars [Member] | Forward Contracts NOT Designated as Hedging Instrument [Member]
Derivative financial instruments:
Notional principal of foreign exchange contracts				37,600,000
Forward Contracts Denominated In Euros Pounds Sterling and South African Rand [Member] | Forward Contracts NOT Designated as Hedging Instrument [Member]
Derivative financial instruments:
Notional principal of foreign exchange contracts				$ 22,400,000
Forward Contracts Designated as Hedging Instrument [Member]
Derivative financial instruments:
Derivative maturity date				November 2018 through November 2019
Hurco Automation Ltd [Member]
Consolidation
Ownership interest				35.00%
Equity investment in affiliate				$ 4,000,000	$ 3,600,000

INVENTORIES (Schedule Of Invent

INVENTORIES (Schedule Of Inventory Current) (Details) - USD ($) $ in Thousands	Oct. 31, 2018	Oct. 31, 2017
Inventory [Line Items]
Purchased parts and sub–assemblies	$ 38,303	$ 33,045
Work–in–process	22,786	20,008
Finished goods	76,520	66,895
Inventories	$ 137,609	$ 119,948

INVENTORIES (Narrative) (Detail

INVENTORIES (Narrative) (Details) - USD ($) $ in Millions	Oct. 31, 2018	Oct. 31, 2017
Inventory [Line Items]
Finished goods inventory consigned to distributors and agents	$ 9.9	$ 12.1

CREDIT AGREEMENTS AND BORROWI_2

CREDIT AGREEMENTS AND BORROWINGS (Narrative) (Details) € in Millions, ¥ in Millions, £ in Millions, $ in Millions

Dec. 06, 2016USD ($)

Dec. 07, 2012USD ($)

Dec. 31, 2018USD ($)

Feb. 14, 2018

Oct. 31, 2018USD ($)

Dec. 31, 2018EUR (€)

Oct. 31, 2018EUR (€)

Oct. 31, 2018CNY (¥)

Oct. 31, 2018GBP (£)

Oct. 31, 2017USD ($)

Feb. 16, 2017CNY (¥)

Dec. 05, 2016USD ($)

Line of Credit Agreement 2012 [Member]

Line of Credit Facility [Line Items]

Line of credit, maximum borrowing capacity

$ 15

$ 12.5

Maximum dividends allowable

5

4

Minimum working capital requirement

105

90

Minimum tangible net worth requirement

$ 125

$ 120

Line of Credit, interest rate description

Borrowings under our 2012 Credit Agreement bore interest either at a LIBOR–based rate or a floating rate, in each case with an interest rate floor of 0.00%. The floating rate equaled the greatest of (a) a one month LIBOR–based rate plus 1.00% per annum, (b) the federal funds effective rate plus 0.50% per annum, (c) the prevailing prime rate and (d) 0.00%. The rate we paid for that portion of the 2012 Credit Agreement which was not utilized is 0.05% per annum.

Line of credit, maturity date

Dec. 31, 2018

Line of Credit Facility, Current Borrowing Capacity

$ 19.4

Line Of Credit Agreement 2018 [Member]

Line of Credit Facility [Line Items]

Line of Credit, interest rate description

Borrowings under the 2018 Credit Agreement will bear interest at floating rates based on, at our option, either (i) a LIBOR–based rate, or other alternative currency–based rate approved by the lender, plus 0.75% per annum, or (ii) a base rate (which is the highest of (a) the federal funds rate plus 0.50%, (b) the prime rate or (c) the one month LIBOR–based rate plus 1.00%), plus 0.00% per annum. Outstanding letters of credit will carry an annual rate of 0.75%.

Scenario, Forecast [Member] | Line Of Credit Agreement 2018 [Member]

Line of Credit Facility [Line Items]

Borrowings available under credit facility

$ 41.7

Line of Credit Facility, Maximum Amount Outstanding During Period

$ 40

Line of Credit Facility, Covenant Terms

The 2018 Credit Agreement contains customary affirmative and negative covenants and events of default, including covenants (1) restricting us from making certain investments, loans, advances and acquisitions (but permitting us to make investments in subsidiaries of up to $10.0 million); (2) restricting us from making certain payments, including cash dividends, except that we may pay cash dividends as long as immediately before and after giving effect to such payment, the sum of the unused amount of the commitments under the 2018 Credit Agreement plus our cash on hand is not less than $10.0 million, and as long as we are not in default before and after giving effect to such dividend payments; (3) requiring that we maintain a minimum working capital of $125.0 million; and (4) requiring that we maintain a minimum tangible net worth of $170.0 million.

Hurco B V [Member] | Scenario, Forecast [Member] | Line Of Credit Agreement 2018 [Member]

Line of Credit Facility [Line Items]

Line of Credit Facility, Description

Effective as of December 31, 2018, we and our subsidiary Hurco B.V. entered into a new credit agreement (the “2018 Credit Agreement”) with Bank of America, N.A., as the lender. The 2018 Credit Agreement replaced the 2012 Credit Agreement, which terminated on December 31, 2018. The 2018 Credit Agreement provides for an unsecured revolving credit and letter of credit facility in a maximum aggregate amount of $40.0 million. The 2018 Credit Agreement provides that the maximum amount of outstanding letters of credit at any one time may not exceed $10.0 million, the maximum amount of outstanding loans made to our subsidiary Hurco B.V. at any one time may not exceed $20.0 million, and the maximum amount of all outstanding loans denominated in alternative currencies at any one time may not exceed $20.0 million.

Germany [Member]

Line of Credit Facility [Line Items]

Revolving Credit Facility | €

€ 1.5

Germany [Member] | Scenario, Forecast [Member]

Line of Credit Facility [Line Items]

Revolving Credit Facility | €

€ 1.5

China [Member]

Line of Credit Facility [Line Items]

Line of credit, maximum borrowing capacity

$ 2.9

¥ 20

¥ 40

Line of credit, maturity date

Feb. 13, 2019

Line of credit amount outstanding

$ 1.4

$ 1.5

Terminated Credit Facility

Dec. 31, 2018

China [Member] | Scenario, Forecast [Member]

Line of Credit Facility [Line Items]

Repayments of Credit Facility

$ 1.4

Subsequent Event [Member] | Line Of Credit Agreement 2018 [Member]

Line of Credit Facility [Line Items]

Line of credit, maturity date

Dec. 31, 2020

Letter of Credit [Member]

Line of Credit Facility [Line Items]

Line of credit, maximum borrowing capacity

$ 5

Revolving Credit Facility [Member]

Line of Credit Facility [Line Items]

Allowable investments in subsidiaries

$ 5

Revolving Credit Facility [Member] | United Kingdom [Member]

Line of Credit Facility [Line Items]

Line of credit amount outstanding | £

£ 1

FINANCIAL INSTRUMENTS (Fair val

FINANCIAL INSTRUMENTS (Fair value hierarchy) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	Oct. 31, 2018	Oct. 31, 2017
Level 1 [Member]
Assets
Deferred Compensation	$ 1,723	$ 1,638
Liabilities
Deferred Compensation	0	0
Level 2 [Member]
Assets
Derivatives	3,085	596
Liabilities
Derivatives	$ 2,020	$ 1,732

FINANCIAL INSTRUMENTS (Narrativ

FINANCIAL INSTRUMENTS (Narrative) (Details) - USD ($) $ in Millions	Oct. 31, 2018	Oct. 31, 2017
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notional amount of contracts	$ 145.2	$ 134.3

INCOME TAXES (Schedule of Provi

INCOME TAXES (Schedule of Provision for Income Taxes) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Oct. 31, 2018	Jul. 31, 2018	Apr. 30, 2018	Jan. 31, 2018	Oct. 31, 2017	Jul. 31, 2017	Apr. 30, 2017	Jan. 31, 2017	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2016
Current:
U.S. taxes									$ 6,333	$ 308	$ 1,362
Foreign taxes									5,203	4,185	4,456
Current provision for income taxes									11,536	4,493	5,818
Deferred:
U.S. taxes									(326)	1,236	(176)
Foreign taxes									(204)	(128)	(49)
Deferred provision for income taxes									(530)	1,108	(225)
Provision for income taxes	$ 2,339	$ 2,511	$ 1,656	$ 4,500	$ 2,238	$ 1,353	$ 1,467	$ 543	$ 11,006	$ 5,601	$ 5,593

INCOME TAXES (Schedule of Compa

INCOME TAXES (Schedule of Comparison of Income Tax Expense) (Details) - USD ($) $ in Thousands	Jan. 02, 2018	Dec. 31, 2017	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2016
Income before income taxes:
Domestic			$ 14,101	$ 5,477	$ 2,703
Foreign			18,395	15,239	16,182
Earnings (Loss) before taxes on income			$ 32,496	$ 20,716	$ 18,885
Tax rates:
U.S. statutory rate	21.00%	35.00%	23.00%	34.00%	34.00%
Effect of tax rate of international jurisdictions different than U.S. statutory rates			2.00%	(5.00%)	(7.00%)
Valuation allowance			0.00%	1.00%	3.00%
State taxes			0.00%	0.00%	0.00%
Tax Credits			(1.00%)	(3.00%)	(2.00%)
Effect of Tax Rate Changes			4.00%	0.00%	4.00%
Transition Tax			7.00%	0.00%	0.00%
Other			(1.00%)	0.00%	(2.00%)
Effective tax rate			34.00%	27.00%	30.00%

INCOME TAXES (Schedule of Defer

INCOME TAXES (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands	Oct. 31, 2018	Oct. 31, 2017
Deferred Tax Assets:
Accrued inventory reserves	$ 1,325	$ 1,965
Accrued warranty expenses	499	438
Compensation related expenses	2,644	2,952
Net derivative instruments	0	417
Unrealized exchange gain/loss	159	0
Other accrued expenses	170	187
Net operating loss carryforwards	1,316	1,722
Other credit carryforwards	686	517
Other	350	404
Deferred tax assets, gross	7,149	8,602
Less: Valuation allowance - net operating loss and other credit carryforwards	(2,106)	(2,282)
Deferred tax assets	5,043	6,320
Deferred Tax Liabilities:
Net derivative instruments	(208)	0
Property and equipment and capitalized software development costs	(2,370)	(3,241)
Unrealized exchange gain/loss	0	(116)
Other	(231)	(624)
Net deferred tax assets	$ 2,234	$ 2,339

INCOME TAXES (Schedule of Incom

INCOME TAXES (Schedule of Income Tax Expense) (Details) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2016
Balance, beginning of year	$ 1,101	$ 1,102	$ 1,034
Additions based on tax positions related to the current year	37	37	52
Additions (reductions) related to prior year tax positions	(945)	(20)	19
Reductions due to statute expiration	(18)	(74)	0
Other	5	56	(3)
Balance, end of year	$ 180	$ 1,101	$ 1,102

INCOME TAXES (Summary of Open T

INCOME TAXES (Summary of Open Tax Years) (Details)	12 Months Ended
	Oct. 31, 2018
United States federal [Member]
Income Tax Contingency [Line Items]
Open tax years	Fiscal 2015 through the current period
Germany [Member]
Income Tax Contingency [Line Items]
Open tax years	Fiscal 2013 through the current period	[1]
Taiwan [Member]
Income Tax Contingency [Line Items]
Open tax years	Fiscal 2015 through the current period
[1]	Includes federal as well as state, provincial or similar local jurisdictions, as applicable.

INCOME TAXES (Narrative) (Detai

INCOME TAXES (Narrative) (Details) - USD ($)	Jan. 02, 2018	Dec. 31, 2017	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2016
Income Tax Contingency [Line Items]
Operating Loss Carryforwards, Valuation Allowance			$ 2,106,000	$ 2,282,000
Deferred Tax Assets, Operating Loss Carryforwards			1,316,000	$ 1,722,000
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration			$ 6,100,000
Unrecognized Tax Benefits Expiration Term			expire between July 2019 and July 2022
Unrecognized tax benefits, interest accrued			$ 25,000
Deferred Tax Assets for Research and Development Tax Credits			$ 700,000
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%	35.00%	23.00%	34.00%	34.00%
Effective Income Tax Rate Reconciliation, Percent			34.00%	27.00%	30.00%
Tax Cuts and Jobs Act Of 2017, effect of change in tax rate		$ 600,000	$ 596,000
Tax Cuts And Jobs Act 2017 Total Impact Of Tax Rate Change And Transition Tax Accumulated Foreign Earnings		$ 2,800,000
Expirations Within Five Years [Member]
Income Tax Contingency [Line Items]
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration			$ 4,900,000
Expiration maximum term			5 years
Expirations After Six Years [Member]
Income Tax Contingency [Line Items]
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration			$ 1,200,000
Expiration minimum term			5 years
Expiration maximum term			20 years
Tax Credits [Member]
Income Tax Contingency [Line Items]
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration			$ 870,000
Tax Credits Expiration Term			expire between years 2022 and 2029
Transition Tax Payable Term			8 years
Tax Cuts And Jobs Act 2017 Total Impact Of Tax Rate Change And Transition Tax Accumulated Foreign Earnings			$ 2,200,000

EMPLOYEE BENEFITS (Narrative) (

EMPLOYEE BENEFITS (Narrative) (Details) - USD ($) $ in Millions	12 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2016
Contributions to defined contribution plans	$ 1.2	$ 1.1	$ 1.1

STOCK-BASED COMPENSATION (Summa

STOCK-BASED COMPENSATION (Summary of Stock Option Activity and Related Information) (Details) - $ / shares	12 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2016
Shares Under Option
Outstanding	78,725	107,889	107,889
Outstanding	37,045	78,725	107,889
Stock Option [Member]
Shares Under Option
Options granted	0	0	0
Options cancelled	0	0	0
Options Expired	0	0	0
Options exercised	(41,680)	(29,164)	0
Weighted Average Exercise Price
Outstanding	$ 20.97	$ 20.25	$ 20.25
Options granted	0	0	0
Options cancelled	0	0	0
Options Expired	0	0	0
Options exercised	20.33	18.31	0
Outstanding	$ 21.69	$ 20.97	$ 20.25

STOCK-BASED COMPENSATION (Sched

STOCK-BASED COMPENSATION (Schedule of Options Outstanding and Exercisable) (Details)	12 Months Ended
	Oct. 31, 2018shares
Outstanding and Exercisable
Shares Under Option	37,045
Weighted Average Exercise Price Per Share	21.69
Weighted Average Remaining Contractual Life in Years	3 years 3 months 18 days
$ 18.13 [Member]
Outstanding and Exercisable
Shares Under Option	3,738
Weighted Average Exercise Price Per Share	18.13
Weighted Average Remaining Contractual Life in Years	1 year 6 months
$ 21.45 [Member]
Outstanding and Exercisable
Shares Under Option	21,748
Weighted Average Exercise Price Per Share	21.45
Weighted Average Remaining Contractual Life in Years	3 years 1 month 6 days
$ 23.30 [Member]
Outstanding and Exercisable
Shares Under Option	11,559
Weighted Average Exercise Price Per Share	23.30
Weighted Average Remaining Contractual Life in Years	4 years 1 month 6 days

STOCK-BASED COMPENSATION (Recon

STOCK-BASED COMPENSATION (Reconciliation of Restricted Stock Activity and Related Information) (Details)	12 Months Ended
	Oct. 31, 2018$ / sharesshares
Number of Shares
Unvested at October 31, 2017 | shares	157,809
Shares or units granted | shares	68,913
Shares or units vested | shares	(40,283)
Shares or units cancelled | shares	(6,385)
Shares withheld | shares	(11,706)
Unvested at October 31, 2018 | shares	168,348
Weighted Average Grant Date Fair Value
Unvested at October 31, 2017 | $ / shares	$ 32.05
Shares or units granted | $ / shares	43.82
Shares or units vested | $ / shares	30.20
Shares or units cancelled | $ / shares	33.67
Shares withheld | $ / shares	32.19
Unvested at October 31, 2018 | $ / shares	$ 37.24

STOCK-BASED COMPENSATION (Narra

STOCK-BASED COMPENSATION (Narrative) (Details) - USD ($)

Mar. 15, 2018

Jan. 05, 2018

Jan. 04, 2018

Jan. 03, 2018

Nov. 15, 2017

Mar. 09, 2017

Jan. 05, 2017

Mar. 10, 2016

Jan. 04, 2016

Oct. 31, 2018

Oct. 31, 2017

Oct. 31, 2016

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Total number of shares of common stock that may be issued as awards under 2016 Plan

856,048

Unrecognized Stock-based compensation expense

$ 2,900,000

Shares or units granted

68,913

Grant date fair value of restricted stock

$ 37.24

$ 32.05

Total intrinsic value of stock options exercised

$ 847,000

$ 771,000

$ 0

Total intrinsic value of outstanding stock options vested and expected to vest and intrinsic value of options outstanding and exercisable

$ 706,000

Grant date fair value of restricted stock

$ 43.82

2016 Equity Plan [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Expiration period of options granted

10 years

2008 Equity Plan [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant

386,048

2008 and 2016 Equity Plans [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Stock-based compensation expense

$ 2,500,000

$ 1,700,000

$ 1,600,000

Performance Shares TSR [Member] | 2008 Equity Plan [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Shares or units granted

24,759

Grant date fair value of restricted stock

$ 26.04

Vesting period

3 years

Time Based [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Vesting period

3 years

3 years

3 years

Percentage of incentive compensation arrangement

25.00%

25.00%

Time Based [Member] | 2016 Equity Plan [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Shares or units granted

9,114

14,810

2,364

14,920

14,747

9,170

Vesting period

1 year

3 years

3 years

1 year

3 years

1 year

Grant date fair value of restricted stock

$ 46.05

$ 42.20

$ 42.30

$ 26.80

$ 33.90

$ 30.52

Time Based [Member] | 2008 Equity Plan [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Shares or units granted

17,684

Grant date fair value of restricted stock

$ 26.04

Vesting period

3 years

Performance Based [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Shares or units granted

23,299

30,683

Grant date fair value of restricted stock

$ 42.20

$ 33.90

Vesting period

3 years

3 years

3 years

Percentage of incentive compensation arrangement

75.00%

75.00%

75.00%

Performance Based [Member] | Performance Shares TSR [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Percentage of incentive compensation arrangement

40.00%

40.00%

40.00%

Performance Based [Member] | Performance Shares TSR [Member] | 2016 Equity Plan [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Shares or units granted

21,891

18,496

Grant date fair value of restricted stock

$ 45.68

$ 43.25

Vesting period

3 years

3 years

Performance Based [Member] | Performance Shares TSR [Member] | 2008 Equity Plan [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Shares or units granted

24,023

Vesting period

3 years

Grant date fair value of restricted stock

$ 30.67

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%

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] | 2016 Equity Plan [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Shares or units granted

20,734

20,647

Grant date fair value of restricted stock

$ 26.04

$ 42.20

$ 33.90

Vesting period

3 years

3 years

Percentage of incentive compensation arrangement

35.00%

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%

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%

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, 2018	Oct. 31, 2017	Oct. 31, 2016
Related Party Transaction [Line Items]
Net Sales	$ 17,841	$ 15,800	$ 13,948
Gross Profit	2,944	2,457	2,240
Operating Income	1,534	1,037	952
Net Income	1,845	1,320	1,323
Current Assets	12,870	11,310	10,238
Non–current Assets	4,579	4,440	3,733
Current Liabilities	$ 4,666	$ 3,916	$ 2,572

RELATED PARTY TRANSACTIONS (Nar

RELATED PARTY TRANSACTIONS (Narrative) (Details) - USD ($)	12 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2016
Related Party Transaction [Line Items]
Accounts Payable, Related Parties, Current	$ 3,387,000	$ 2,511,000
Hurco Automation Ltd [Member]
Related Party Transaction [Line Items]
Equity Method Investment, Ownership Percentage	35.00%
Equity Method Investments	$ 4,000,000	3,600,000
Related Party Transaction, Purchases from Related Party	11,300,000	10,000,000	$ 9,900,000
Revenue from Related Parties	197,000	139,000	$ 623,000
Accounts Payable, Related Parties, Current	3,400,000	2,500,000
Accounts Receivable, Related Parties, Current	$ 68,000	$ 30,000

GUARANTEES AND PRODUCT WARRAN_3

GUARANTEES AND PRODUCT WARRANTIES (Reconciliation of the changes in our warranty reserve) (Details) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2016
Product Warranty Liability [Line Items]
Balance, beginning of year	$ 1,772	$ 1,523	$ 2,186
Provision for warranties during the year	4,121	3,379	2,715
Charges to the accrual	(3,326)	(3,203)	(3,349)
Impact of foreign currency translation	(68)	73	(29)
Balance, end of year	$ 2,499	$ 1,772	$ 1,523

GUARANTEES AND PRODUCT WARRAN_4

GUARANTEES AND PRODUCT WARRANTIES (Narrative) (Details) $ in Millions	12 Months Ended
	Oct. 31, 2018USD ($)
Product Warranty Liability [Line Items]
Number Of Guarantees	23
Guarantor Obligations, Maximum Exposure, Undiscounted	$ 0.6
Term of Product Warranty	1 year

OPERATING LEASES (Schedule of f

OPERATING LEASES (Schedule of future payments required under operating leases) (Details) $ in Thousands	Oct. 31, 2018USD ($)
2,019	$ 3,504
2,020	2,320
2,021	1,543
2,022	1,312
2023 and thereafter	1,180
Total	$ 9,859

OPERATING LEASES (Narrative) (D

OPERATING LEASES (Narrative) (Details) - USD ($) $ in Millions	12 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2016
Lease expense	$ 4.5	$ 4.4	$ 4.5

QUARTERLY FINANCIAL INFORMATI_3

QUARTERLY FINANCIAL INFORMATION (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Oct. 31, 2018	Jul. 31, 2018	Apr. 30, 2018	Jan. 31, 2018	Oct. 31, 2017	Jul. 31, 2017	Apr. 30, 2017	Jan. 31, 2017	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2016
Sales and service fees	$ 83,051	$ 78,752	$ 70,424	$ 68,444	$ 75,931	$ 60,770	$ 58,222	$ 48,744	$ 300,671	$ 243,667	$ 227,289
Gross profit	$ 27,851	$ 24,521	$ 19,313	$ 20,121	$ 23,370	$ 17,540	$ 17,068	$ 12,586	91,806	70,564	70,440
Gross profit margin	34.00%	31.00%	27.00%	29.00%	31.00%	29.00%	29.00%	26.00%
Selling, general and administrative expenses	$ 16,564	$ 15,160	$ 13,320	$ 12,966	$ 14,385	$ 12,395	$ 11,714	$ 11,167	58,010	49,661	50,824
Operating income	11,287	9,361	5,993	7,155	8,985	5,145	5,354	1,419	33,796	20,903	19,616
Provision for income taxes	2,339	2,511	1,656	4,500	2,238	1,353	1,467	543	11,006	5,601	5,593
Net income	$ 8,302	$ 6,500	$ 3,751	$ 2,937	$ 6,702	$ 3,888	$ 3,646	$ 879	$ 21,490	$ 15,115	$ 13,292
Income per common share - basic (in dollars per share)	$ 1.24	$ 0.96	$ 0.55	$ 0.44	$ 1.01	$ 0.58	$ 0.55	$ 0.13	$ 3.19	$ 2.27	$ 2.01
Income per common share - diluted (in dollars per share)	$ 1.22	$ 0.95	$ 0.55	$ 0.43	$ 1	$ 0.58	$ 0.54	$ 0.13	$ 3.15	$ 2.25	$ 1.99

SEGMENT INFORMATION (Schedule o

SEGMENT INFORMATION (Schedule of Net Sales and Service Fees by Product Category) (Details) - USD ($) $ in Thousands		3 Months Ended								12 Months Ended
		Oct. 31, 2018	Jul. 31, 2018	Apr. 30, 2018	Jan. 31, 2018	Oct. 31, 2017	Jul. 31, 2017	Apr. 30, 2017	Jan. 31, 2017	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2016
Revenue from External Customer [Line Items]
Net Sales and Service Fees		$ 83,051	$ 78,752	$ 70,424	$ 68,444	$ 75,931	$ 60,770	$ 58,222	$ 48,744	$ 300,671	$ 243,667	$ 227,289
Computerized Machine Tools [Member]
Revenue from External Customer [Line Items]
Net Sales and Service Fees										261,710	209,311	195,618
Computer Control Systems and Software [Member]
Revenue from External Customer [Line Items]
Net Sales and Service Fees	[1]									2,870	2,324	2,078
Service Parts [Member]
Revenue from External Customer [Line Items]
Net Sales and Service Fees										27,501	24,255	21,908
Service Fees [Member]
Revenue from External Customer [Line Items]
Net Sales and Service Fees										$ 8,590	$ 7,777	$ 7,685
[1]	Amounts shown do not include computer control systems and software sold as an integrated component of computerized machine systems.

SEGMENT INFORMATION (Schedule_2

SEGMENT INFORMATION (Schedule of Revenues by Geographic Area) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Oct. 31, 2018	Jul. 31, 2018	Apr. 30, 2018	Jan. 31, 2018	Oct. 31, 2017	Jul. 31, 2017	Apr. 30, 2017	Jan. 31, 2017	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2016
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 83,051	$ 78,752	$ 70,424	$ 68,444	$ 75,931	$ 60,770	$ 58,222	$ 48,744	$ 300,671	$ 243,667	$ 227,289
United States of America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues									87,231	70,912	70,630
Canada [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues									2,915	3,801	3,881
Central & South America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues									2,194	1,844	1,950
Total Americas [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues									92,340	76,557	76,461
Germany [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues									62,346	48,786	44,411
United Kingdom [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues									34,216	28,019	25,313
Italy [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues									16,691	13,416	12,947
France [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues									15,815	13,917	13,787
Other Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues									32,034	27,583	27,150
Total Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues									161,102	131,721	123,608
China [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues									27,748	22,456	16,644
Other Asia Pacific [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues									17,937	10,238	8,989
Asia Pacific [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues									45,685	32,694	25,633
Foreign [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues									$ 1,544	$ 2,695	$ 1,587

SEGMENT INFORMATION (Schedule_3

SEGMENT INFORMATION (Schedule of Long-Lived Tangible Assets and net assets, Net by Geographic Area) (Details) - USD ($) $ in Thousands	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2016
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-Lived Assets	$ 14,992	$ 13,784	$ 13,757
Net Assets	222,853	203,085	185,475
United States of America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-Lived Assets	8,375	7,599	7,846
Foreign Countries [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-Lived Assets	6,617	6,185	5,911
Americas [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net Assets	96,348	86,432	84,040
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net Assets	74,558	70,536	60,861
Asia Pacific [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net Assets	$ 51,947	$ 46,117	$ 40,574

NEW ACCOUNTING PRONOUNCEMENTS (

NEW ACCOUNTING PRONOUNCEMENTS (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2016	Nov. 01, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Payments Related to Tax Withholding for Share-based Compensation	$ 502	$ 295	$ 146
Accounting Standards Update 2016-09 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption				$ 200

Schedule II - Valuation and Q_2

Schedule II - Valuation and Qualifying Accounts and Reserves (Details) - USD ($) $ in Thousands		12 Months Ended
		Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2016
Balance at Beginning of Period		$ 639	$ 664	$ 739
Charged to Costs and Expenses		394	46
Recovered from Costs and Expenses				(15)
Charged to Other Accounts		0	0	0
Deductions	[1]	6	71	60
Balance at End of Period		1,027	639	664
Balance at Beginning of Period		2,282	2,067	1,485
Charged to/ (Recovered from) Costs and Expenses		253	515	587
Charged to Other Accounts		0	0	0
Deductions	[1]	429	300	5
Balance at End of Period		$ 2,106	$ 2,282	$ 2,067
[1]	Receivable write-offs.