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Document And Entity Information - shares	6 Months Ended
Document And Entity Information - shares	Apr. 30, 2017	May 31, 2017
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Apr. 30, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q2
Entity Registrant Name	HURCO COMPANIES INC
Entity Central Index Key	0000315374
Current Fiscal Year End Date	--10-31
Entity Filer Category	Accelerated Filer
Trading Symbol	HURC
Entity Common Stock, Shares Outstanding		6,624,197

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2017	Apr. 30, 2016	Apr. 30, 2017	Apr. 30, 2016
Sales and service fees	$ 58,222	$ 52,029	$ 106,966	$ 108,532
Cost of sales and service	41,154	35,419	77,312	74,224
Gross profit	17,068	16,610	29,654	34,308
Selling, general and administrative expenses	11,714	11,943	22,881	23,904
Operating income	5,354	4,667	6,773	10,404
Interest expense	24	25	45	49
Interest income	7	7	18	22
Investment income	16	4	80	106
Other (income) expense, net	240	(246)	291	(20)
Income before taxes	5,113	4,899	6,535	10,503
Provision for income taxes	1,467	1,225	2,010	2,934
Net income	$ 3,646	$ 3,674	$ 4,525	$ 7,569
Income per common share
Basic (in dollars per share)	$ 0.55	$ 0.56	$ 0.68	$ 1.15
Diluted (in dollars per share)	$ 0.54	$ 0.56	$ 0.67	$ 1.14
Weighted average common shares outstanding
Basic (in shares)	6,617	6,570	6,600	6,564
Diluted (in shares)	6,671	6,641	6,664	6,630
Dividends paid per share	$ 0.1	$ 0.09	$ 0.19	$ 0.17

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2017	Apr. 30, 2016	Apr. 30, 2017	Apr. 30, 2016
Net income	$ 3,646	$ 3,674	$ 4,525	$ 7,569
Other comprehensive income (loss):
Translation of foreign currency financial statements	2,259	3,423	2,156	1,012
(Gain) / loss on derivative instruments reclassified into operations, net of tax of $(174), $(301), $(59) and $(811), respectively	(317)	(546)	(108)	(1,474)
Gain / (loss) on derivative instruments, net of tax of $52, $(405), $233 and $(312), respectively	95	(736)	424	(567)
Total other comprehensive income (loss)	2,037	2,141	2,472	(1,029)
Comprehensive income	$ 5,683	$ 5,815	$ 6,997	$ 6,540

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2017	Apr. 30, 2016	Apr. 30, 2017	Apr. 30, 2016
Realized loss (gains) on derivative instruments reclassified into operations, tax	$ (174)	$ (301)	$ (59)	$ (811)
Unrealized (loss) gains on derivative instruments, tax	$ 52	$ (405)	$ 233	$ (312)

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Apr. 30, 2017	Oct. 31, 2016
Current assets:
Cash and cash equivalents	$ 60,614	$ 41,217
Accounts receivable, net	35,831	48,631
Inventories, net	118,853	117,025
Derivative assets	1,227	1,725
Prepaid assets	8,519	8,207
Other	2,056	1,576
Total current assets	227,100	218,381
Property and equipment:
Land	841	841
Building	7,352	7,352
Machinery and equipment	24,731	23,515
Leasehold improvements	3,590	3,487
Property and equipment, gross	36,514	35,195
Less accumulated depreciation and amortization	(24,375)	(22,898)
Total property and equipment	12,139	12,297
Non-current assets:
Software development costs, less accumulated amortization	5,520	4,926
Goodwill	2,298	2,314
Intangible assets, net	1,087	1,150
Deferred income taxes	6,146	6,138
Investments and other assets, net	7,079	6,743
Total non-current assets	22,130	21,271
Total assets	261,369	251,949
Current liabilities:
Accounts payable	43,957	37,200
Accrued expenses and other	12,691	17,231
Accrued warranty expenses	1,541	1,523
Derivative liabilities	517	538
Short-term debt	1,451	1,476
Total current liabilities	60,157	57,968
Non-current liabilities:
Deferred income taxes	4,492	4,294
Accrued tax liability	1,178	963
Deferred credits and other	3,408	3,249
Total non-current liabilities	9,078	8,506
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, 6,782,006 and 6,720,453 shares issued and 6,624,197 and 6,573,103 shares outstanding, as of April 30, 2017 and October 31, 2016, respectively	663	657
Additional paid-in capital	60,028	59,119
Retained earnings	140,014	136,742
Accumulated other comprehensive loss	(8,571)	(11,043)
Total shareholders’ equity	192,134	185,475
Total liabilities and shareholders’ equity	$ 261,369	$ 251,949

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Apr. 30, 2017	Oct. 31, 2016
Preferred stock, no par value	$ 0	$ 0
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Common stock, stated value per share	$ 0.10	$ 0.10
Common stock, shares authorized	12,500,000	12,500,000
Common stock, shares issued	6,782,006	6,720,453
Common stock, shares outstanding	6,624,197	6,573,103

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2017	Apr. 30, 2016	Apr. 30, 2017	Apr. 30, 2016
Cash flows from operating activities:
Net income	$ 3,646	$ 3,674	$ 4,525	$ 7,569
Adjustments to reconcile net income to net cash provided by (used for) operating activities, net of acquisitions:
Provision for doubtful accounts	(30)	7	(11)	(45)
Deferred income taxes	(170)	440	(547)	909
Equity in (income) loss of affiliates	31	(108)	(192)	(258)
Depreciation and amortization	823	972	1,782	1,934
Foreign currency (gain) loss	437	(1,644)	1,364	(1,208)
Unrealized (gain) loss on derivatives	156	612	(527)	552
Stock-based compensation	298	424	646	759
Change in assets and liabilities:
(Increase) decrease in accounts receivable	(3,519)	(522)	12,975	1,961
(Increase) decrease in inventories	867	(10,017)	393	(16,273)
(Increase) decrease in prepaid expenses	886	(688)	227	(1,705)
Increase (decrease) in accounts payable	2,687	943	5,472	2,400
Increase (decrease) in accrued expenses	60	(288)	(4,634)	(3,175)
Net change in derivative assets and liabilities	173	374	367	707
Other	(131)	(366)	(103)	(1,047)
Net cash provided by (used for) operating activities	6,214	(6,187)	21,737	(6,920)
Cash flows from investing activities:
Purchase of property and equipment	(200)	(510)	(998)	(1,145)
Proceeds from sale of equipment	0	232	0	236
Software development costs	(626)	(645)	(1,108)	(1,122)
Net cash provided by (used for) investing activities	(826)	(923)	(2,106)	(2,031)
Cash flows from financing activities:
Proceeds from exercise of common stock options	269	0	269	0
Dividends paid	(661)	(595)	(1,253)	(1,120)
Net cash provided by (used for) financing activities	(392)	(595)	(984)	(1,120)
Effect of exchange rate changes on cash	478	1,244	750	159
Net increase (decrease) in cash and cash equivalents	5,474	(6,461)	19,397	(9,912)
Cash and cash equivalents at beginning of period	55,140	51,786	41,217	55,237
Cash and cash equivalents at end of period	$ 60,614	$ 45,325	$ 60,614	$ 45,325

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]
Balances, 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	7,569	$ 0	0	7,569	0
Other comprehensive loss	(1,029)	0	0	0	(1,029)
Stock-based compensation	759	$ 2	757	0	0
Stock-based compensation (shares)		21,385
Dividends paid	(1,120)	$ 0	0	(1,120)	0
Balances, Ending at Apr. 30, 2016	180,747	$ 657	58,296	132,209	(10,415)
Balances, Ending (Shares) at Apr. 30, 2016		6,573,103
Balances, Beginning at Oct. 31, 2016	185,475	$ 657	59,119	136,742	(11,043)
Balances, Beginning (Shares) at Oct. 31, 2016		6,573,103
Net income	4,525	$ 0	0	4,525	0
Other comprehensive loss	2,472	0	0	0	2,472
Exercise of common stock options	$ 269	$ 1	268	0	0
Exercise of common stock options (Shares)	12,164	12,164
Stock-based compensation	$ 646	$ 5	641	0	0
Stock-based compensation (shares)		38,930
Dividends paid	(1,253)	$ 0	0	(1,253)	0
Balances, Ending at Apr. 30, 2017	$ 192,134	$ 663	$ 60,028	$ 140,014	$ (8,571)
Balances, Ending (Shares) at Apr. 30, 2017		6,624,197

GENERAL

6 Months Ended

Apr. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

GENERAL

The unaudited Condensed Consolidated Financial Statements include the accounts of Hurco Companies, Inc. and its consolidated subsidiaries. As used in this report, unless the context indicates otherwise, the terms “we”, “us”, “our” and similar language refer to Hurco Companies, Inc. and its consolidated subsidiaries as a whole.

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 support.

The condensed financial information as of April 30, 2017 and for the three and six months ended April 30, 2017 and April 30, 2016 is unaudited. However, in our opinion, the interim data includes all adjustments, consisting only of normal recurring adjustments, necessary to present fairly our consolidated financial position, results of operations, changes in shareholders’ equity and cash flows for and at the end of the interim periods. We suggest that you read these condensed consolidated financial statements in conjunction with the financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended October 31, 2016.

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

6 Months Ended

Apr. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

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, for which we enter into derivative instruments in the form of foreign currency forward exchange contracts with a major financial institution.

We enter into these forward exchange contracts to reduce the potential effects of foreign exchange rate movements on our net equity investment in one of our foreign subsidiaries, to reduce the impact on gross profit and net earnings from sales and purchases denominated in foreign currencies, and to reduce the impact on our net earnings of foreign currency fluctuations on receivables and payables denominated in foreign currencies that are different than the subsidiaries’ functional currency. 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 record all derivative instruments as assets or liabilities at fair value.

Derivatives Designated as Hedging Instruments

We enter into foreign currency forward exchange contracts periodically to hedge certain forecasted inter-company sales and purchases denominated in foreign currencies (the Pound Sterling, Euro and New Taiwan Dollar). The purpose of these instruments is to mitigate the risk that the U.S. Dollar net cash inflows and outflows resulting from sales and purchases denominated in foreign currencies will be adversely affected by changes in exchange rates. These forward contracts have been designated as cash flow hedge instruments and are recorded in the Condensed 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 is deferred in Accumulated other comprehensive loss and recognized as an adjustment to Cost of sales and service in the period that the corresponding inventory sold that is the subject of the related hedge contract is recognized, thereby providing an offsetting economic impact against the corresponding change in the U.S. Dollar value of the inter-company sale or purchase being hedged. The ineffective portion of gains and losses resulting from the changes in the fair value of these hedge contracts is reported in Other (income) expense, net immediately. We perform quarterly assessments of hedge effectiveness by verifying and documenting the critical terms of the hedge instrument and determining that forecasted transactions have not changed significantly. We also assess on a quarterly basis whether there have been adverse developments regarding the risk of a counterparty default.

We had forward contracts outstanding as of April 30, 2017, denominated in Euros, Pounds Sterling and New Taiwan Dollars with set maturity dates ranging from May 2017 through April 2018. The contract amounts, expressed at forward rates in U.S. Dollars at April 30, 2017, were $23.7 million for Euros, $7.3 million for Pounds Sterling and $21.5 million for New Taiwan Dollars. At April 30, 2017, we had approximately $1.6 million of gains, net of tax, related to cash flow hedges deferred in Accumulated other comprehensive loss. Included in this amount were $372,000 of 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 April 2018, when the corresponding inventory that is the subject of the related hedge contracts is sold, as described above.

We are also 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 2016. We designated this forward contract as a hedge of our net investment in Euro denominated assets. We selected the forward method under Financial Accounting Standards Board, or 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 in Accumulated other comprehensive loss, net of tax, in the same manner as the underlying hedged net assets. This forward contract matures in November 2017. As of April 30, 2017, we had $809,000 of realized gains and $14,000 of unrealized losses, net of tax, recorded as cumulative translation adjustments in Accumulated other comprehensive loss related to these forward contracts.

Derivatives Not Designated as Hedging Instruments

We also 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 the FASB guidance and, as a result, changes in their fair value are reported currently as Other (income) expense, net in the Condensed 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 April 30, 2017, denominated in Euros, Pounds Sterling, South African Rand, and New Taiwan Dollars with set maturity dates ranging from May 2017 through October 2017. The contract amounts at forward rates in U.S. Dollars at April 30, 2017 totaled $57.7 million.

Fair Value of Derivative Instruments

We recognize the fair value of derivative instruments as assets and liabilities on a gross basis on our Condensed Consolidated Balance Sheets. As of April 30, 2017 and October 31, 2016, all derivative instruments were recorded at fair value on the balance sheets as follows (in thousands):

	April 30, 2017			October 31, 2016
	Balance Sheet			Balance Sheet
Derivatives	Location	Fair Value		Location	Fair Value
Designated as Hedging Instruments:
Foreign exchange forward contracts	Derivative assets	$	997	Derivative assets	$	1,721
Foreign exchange forward contracts	Derivative liabilities	$	442	Derivative liabilities	$	173
Not Designated as Hedging Instruments:
Foreign exchange forward contracts	Derivative assets	$	230	Derivative assets	$	4
Foreign exchange forward contracts	Derivative liabilities	$	75	Derivative liabilities	$	365

Effect of Derivative Instruments on the Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Changes in Shareholders’ Equity and Condensed Consolidated Statements of Income

Derivative instruments had the following effects on our Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Changes in Shareholders’ Equity and Condensed Consolidated Statements of Income, net of tax, during the three months ended April 30, 2017 and 2016 (in thousands):

Derivatives	Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss)				Location of Gain (Loss) Reclassified from Other Comprehensive Income (Loss)	Amount of Gain (Loss) Reclassified from Other Comprehensive Income (Loss)
	Three Months Ended April 30,					Three Months Ended April 30,
	2017		2016			2017		2016
Designated as Hedging Instruments:
(Effective portion)
Foreign exchange forward contracts – Intercompany sales/purchases	$	95	$	(736)	Cost of sales and service	$	317	$	546

Foreign exchange forward contract – Net investment	$	(9)	$	(116)

We recognized a gain of $32,000 for each of the three months ended April 30, 2017 and April 30, 2016 as a result of contracts closed early that were deemed ineffective for financial reporting purposes and did not qualify as cash flow hedges.

We recognized the following losses and gains in our Condensed Consolidated Statements of Income during the three months ended April 30, 2017 and 2016 on derivative instruments not designated as hedging instruments (in thousands):

	Location of Gain
	(Loss) Recognized	Amount of Gain (Loss)
Derivatives	in Operations	Recognized in Operations
		Three Months Ended
		April 30,
Not Designated as Hedging Instruments:		2017		2016
Foreign exchange forward contracts	Other (income) expense, net	$	165	$	(1,239)

The following table presents the changes in the components of Accumulated other comprehensive loss, net of tax, for the three months ended April 30, 2017 (in thousands:)

	Foreign Currency Translation		Cash Flow Hedges		Total
Balance, January 31, 2017	$	(12,428)	$	1,820	$	(10,608)
Other comprehensive income before reclassifications		2,259		95		2,354
Reclassifications		—		(317)		(317)
Balance, April 30, 2017	$	(10,169)	$	1,598	$	(8,571)

Derivative instruments had the following effects on our Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Changes in Shareholders’ Equity and Condensed Consolidated Statements of Income, net of tax, during the six months ended April 30, 2017 and 2016 (in thousands):

Location of

Gain (Loss)

Amount of Gain

Reclassified

(Loss) Reclassified

(Loss) Recognized in

from Other

Other Comprehensive

Comprehensive

Derivatives

Income (Loss)

Six Months Ended

April 30,

2017

2016

2017

2016

Designated as Hedging Instruments:

(Effective portion)

Foreign exchange forward contracts – Intercompany sales/purchases

424

(567)

Cost of sales and service

108

1,474

Foreign exchange forward contract – Net investment

(80)

We recognized a gain of $168,000 for the six months ended April 30, 2017 and a gain of $32,000 for the six months ended April 30, 2016 as a result of contracts closed early that were deemed ineffective for financial reporting purposes and did not qualify as cash flow hedges.

We recognized the following losses and gains in our Condensed Consolidated Statements of Income during the six months ended April 30, 2017 and 2016 on derivative instruments not designated as hedging instruments (in thousands):

	Location of Gain
	(Loss) Recognized	Amount of Gain (Loss)
Derivatives	in Operations	Recognized in Operations
		Six Months Ended
		April 30,
		2017		2016
Not Designated as Hedging Instruments:
Foreign exchange forward contracts	Other (income) expense, net	$	955	$	(1,100)

The following table presents the changes in the components of Accumulated other comprehensive loss, net of tax, for the six months ended April 30, 2017 (in thousands:)

	Foreign		Cash
	Currency		Flow
	Translation		Hedges		Total
Balance, October 31, 2016	$	(12,325)	$	1,282	$	(11,043)
Other comprehensive income before reclassifications		2,156		424		2,580
Reclassifications		—		(108)		(108)
Balance, April 30, 2017	$	(10,169)	$	1,598	$	(8,571)

- Definition

The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.

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+ Details

EQUITY INCENTIVE PLAN

6 Months Ended

Apr. 30, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

EQUITY INCENTIVE PLAN

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 (“SARs”), 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 the 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 stock option activity for the six-month period ended April 30, 2017, is as follows:

	Stock Options		Weighted Average Exercise Price

Outstanding at October 31, 2016		107,889	$	20.25

Options granted		—		—
Options exercised		(12,164)		22.11
Options cancelled		—		—

Outstanding at April 30, 2017		95,725	$	20.01

Summarized information about outstanding stock options as of April 30, 2017, that have already vested and those that are expected to vest, as well as stock options that are currently exercisable, are as follows:

	Options Already Vested and Currently Exercisable

Number of outstanding options		95,725
Weighted average remaining contractual life (years)		3.73
Weighted average exercise price per share	$	20.01
Intrinsic value of outstanding options	$	894,000

The intrinsic value of an outstanding stock option is calculated as the difference between the stock price as of April 30, 2017 and the exercise price of the option.

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 years performance period ending 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 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 2017 through fiscal 2019.

On that date, the Compensation Committee granted a total of 14,747 shares of time-based restricted shares 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 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 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.

A reconciliation of the Company’s restricted stock activity, performance share and PSU and related information for the six-month period ended April 30, 2017 is as follows:

			Weighted Average
	Number of		Grant Date
	Shares		Fair Value
Unvested at October 31, 2016		147,350	$	28.79
Shares or units granted		71,011		34.61
Shares or units vested		(38,930)		26.98
Shares or units cancelled		(7,678)		29.98
Shares withheld		(13,944)		25.89
Unvested at April 30, 2017		157,809	$	32.05

During the first six months of fiscal 2017 and 2016, we recorded $646,000 and $759,000, respectively, as stock-based compensation expense related to grants under our equity plans. As of April 30, 2017, 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 2020.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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EARNINGS PER SHARE

6 Months Ended

Apr. 30, 2017

Earnings Per Share [Abstract]

EARNINGS PER SHARE

4.	EARNINGS PER SHARE

Per share results have been computed based on the average number of common shares outstanding over the period in question. The computation of basic and diluted net income per share is determined using net income applicable to common shareholders as the numerator and the number of shares outstanding as the denominator as follows (in thousands, except per share amounts):

	Three Months Ended								Six Months Ended
	April 30,								April 30,
	2017				2016				2017				2016

	Basic		Diluted		Basic		Diluted		Basic		Diluted		Basic		Diluted

Net income	$	3,646	$	3,646	$	3,674	$	3,674	$	4,525	$	4,525	$	7,569	$	7,569
Undistributed earnings allocated to participating shares		(24)		(24)		(21)		(21)		(30)		(30)		(43)		(43)
Net income applicable to common shareholders	$	3,622	$	3,622	$	3,653	$	3,653	$	4,495	$	4,495	$	7,526	$	7,526
Weighted average shares outstanding		6,617		6,617		6,570		6,570		6,600		6,600		6,564		6,564
Stock options and contingently issuable shares		—		54		—		71		—		64		—		66
		6,617		6,671		6,570		6,641		6,600		6,664		6,564		6,630

Income per share	$	0.55	$	0.54	$	0.56	$	0.56	$	0 .68	$	0.67	$	1.15	$	1.14

ACCOUNTS RECEIVABLE

6 Months Ended

Apr. 30, 2017

Receivables [Abstract]

ACCOUNTS RECEIVABLE

Accounts receivable are net of allowances for doubtful accounts of $653,000 as of April 30, 2017 and $664,000 as of October 31, 2016.

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

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INVENTORIES

6 Months Ended

Apr. 30, 2017

Inventory Disclosure [Abstract]

INVENTORIES

Inventories, priced at the lower of cost (first-in, first-out method) or market, are summarized below (in thousands):

	April 30, 2017		October 31, 2016
Purchased parts and sub-assemblies	$	28,430	$	25,661
Work-in-process		18,065		17,724
Finished goods		72,358		73,640
	$	118,853	$	117,025

SEGMENT INFORMATION

6 Months Ended

Apr. 30, 2017

Segment Reporting [Abstract]

SEGMENT INFORMATION

We operate in a single segment: industrial automation equipment. We design, manufacture and sell computerized 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. 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 support.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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+ Details

GUARANTEES AND PRODUCT WARRANTIES

6 Months Ended

Apr. 30, 2017

Standard Product Warranty Disclosure [Abstract]

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 April 30, 2017, we had 24 outstanding third party payment guarantees totaling approximately $1.1 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 the customer 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 certain components 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):

	Six Months Ended April 30,
	2017		2016
Balance, beginning of period	$	1,523	$	2,186
Provision for warranties during the period		1,614		1,414
Charges to the reserve		(1,605)		(1,755)
Impact of foreign currency translation		9		8
Balance, end of period	$	1,541	$	1,853

The year-over-year decrease in our warranty reserve was primarily due to a reduction in average warranty cost per machine as our machines under warranty shifted from more complex, higher-performance machines.

DEBT AGREEMENTS

6 Months Ended

Apr. 30, 2017

Debt Disclosure [Abstract]

DEBT AGREEMENTS

On December 7, 2012, we entered into an agreement (the “U.S. credit agreement”) with a financial institution that provided us with an unsecured revolving credit and letter of credit facility. The U.S. credit agreement contains 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 U.S. credit agreement permits us to pay certain cash dividends, so long as we are not in default before and after giving effect to such dividends.

Borrowings under our U.S. credit agreement bear 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 equals 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 must pay for that portion of the U.S. credit agreement which is not utilized is 0.05% per annum.

On December 6, 2016, we entered into a fourth amendment to our U.S. 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 U.S. credit agreement, as amended, provides for the issuance of up to $5.0 million in letters of credit. We also amended the U.S. 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.

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) and renewed the facility with an expiration date of February 15, 2018. We had $1.5 million of borrowings under our China credit facility at each of April 30, 2017 and October 31, 2016, which bears interest at variable rates of 4.4% and 4.6% annually, respectively. We also have a £1.0 million revolving credit facility in the United Kingdom and a €1.5 million revolving credit facility in Germany. We had no other debt or borrowings under any of our other credit facilities at either of those dates.

All of our credit facilities are unsecured. At April 30, 2017, we were in compliance with all covenants contained in the related credit agreements and, as of that date, we had unutilized credit facilities of $19.4 million.

INCOME TAXES

6 Months Ended

Apr. 30, 2017

Income Tax Disclosure [Abstract]

INCOME TAXES

10.

INCOME TAXES

Our effective tax rate for the first six months of fiscal 2017 was 31% compared to 28% for the same period in fiscal 2016. The increase in the effective income tax rate was primarily due to changes in the geographic mix of income and loss among tax jurisdictions. We recorded income tax expense during the first six months of fiscal 2017 of $2.0 million, compared to $2.9 million for the same period in fiscal 2016, primarily as a result of a decrease in income period-over-period. We have not provided for any U.S. income taxes on the undistributed earnings of our wholly-owned foreign subsidiaries based upon our determination that such earnings will be indefinitely reinvested. In the event these earnings are later distributed to our U.S. operations, such distributions would likely result in additional U.S. tax that may be offset, at least in part, by associated foreign tax credits.

Our unrecognized tax benefits were $1.2 million as of April 30, 2017 and $1.1 million as of October 31, 2016, and in each case included accrued interest.

We recognize accrued interest and penalties related to unrecognized tax benefits as components of income tax expense. As of April 30, 2017, the gross amount of interest accrued, reported in Accrued expenses and other, was approximately $62,000, which did not include the federal tax benefit of interest deductions.

We file U.S. federal and state income tax returns, as well as tax returns in several foreign jurisdictions. The statutes of limitations with respect to unrecognized tax benefits will expire between July 2017 and July 2019. We are under audit by the Internal Revenue Service (IRS) for our federal income tax return for fiscal year 2015.

FINANCIAL INSTRUMENTS

6 Months Ended

Apr. 30, 2017

Fair Value Disclosures [Abstract]

FINANCIAL INSTRUMENTS

11.

FINANCIAL INSTRUMENTS

FASB fair value guidance established a three-tier fair value hierarchy, which categorizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs, such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exist, therefore, requiring an entity to develop its own assumptions.

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 April 30, 2017 and October 31, 2016 (in thousands):

	Assets				Liabilities
	April 30,		October 31,		April 30,		October 31,
	2017		2016		2017		2016

Level 1
Deferred Compensation	$	1,508	$	1,363	$	-	$	-

Level 2
Derivatives	$	1,227	$	1,725	$	517	$	538

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 that are readily available.

Included in 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 condensed consolidated financial statements at fair value. We have derivative financial instruments in the form of foreign currency forward exchange contracts as described in Note 2 of Notes to the Condensed Consolidated Financial Statements. The U.S. Dollar equivalent notional amounts of these contracts was $112.5 million and $125.6 million at April 30, 2017 and October 31, 2016, respectively. The fair value of Derivative assets recorded on our Condensed Consolidated Balance Sheets was $1.2 million at April 30, 2017 and $1.7 million at October 31, 2016. The fair value of Derivative liabilities recorded on our Condensed Consolidated Balance Sheets was $0.5 million at April 30, 2017 and $0.5 million at October 31, 2016.

The fair value of our 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 contracts 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.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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CONTINGENCIES AND LITIGATION

6 Months Ended

Apr. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

CONTINGENCIES AND LITIGATION

12.

CONTINGENCIES AND LITIGATION

We are involved in various claims and lawsuits arising in the normal course of business. Pursuant to applicable accounting rules, we accrue the minimum liability for each known claim when the estimated outcome is a range of possible loss and no one amount within that range is more likely than another. We maintain insurance policies for such matters, and we record insurance recoveries when we determine such recovery to be probable. We do not expect any of these claims, individually or in the aggregate, to have a material adverse effect on our consolidated financial position or results of operations. We believe that the ultimate resolution of claims for any losses will not exceed our insurance policy coverages.

NEW ACCOUNTING PRONOUNCEMENTS

6 Months Ended

Apr. 30, 2017

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

NEW ACCOUNTING PRONOUNCEMENTS

13.

NEW ACCOUNTING PRONOUNCEMENTS

In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606), establishing a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. This standard provides a five-step analysis in determining when and how revenue is recognized. The new model will require revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods or services and will supersede most of the existing revenue recognition guidance, including industry-specific guidance. Between August 2015 and December 2016, the FASB issued five additional updates to Topic 606 to provide further guidance and clarification in accounting for revenue arising from contracts with customers under ASU 2014-09. We have the option of applying this new standard retrospectively to each prior period presented (“full retrospective approach”) or retrospectively with the cumulative effect recognized in retained earnings as of the date of adoption (“modified retrospective approach”). We expect to adopt the new standard using the modified retrospective approach in the first quarter of our fiscal year 2019. We are in the process of evaluating the impact of the adoption of this guidance on our consolidated financial statements, our business processes and our internal controls.

In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which provides guidance to assist companies in evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendment provides a more robust framework to use in determining when a set of transferred assets and activities (“set”) is a business. ASU 2017-01 is effective for our fiscal year 2019, including interim periods within the fiscal year. We do not expect that the adoption of this accounting standard update will have a material effect on our consolidated financial statements.

In January 2017, the FASB issued ASU No. 2017-04, Intangibles–Goodwill and Other (Topic 350): Simplifying the Test of Goodwill Impairment, which eliminates Step 2 from the goodwill impairment test, (i.e., the requirement for an entity to calculate the implied fair value of goodwill in measuring a goodwill impairment loss. ASU 2017-04 provides that a company should perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying value and should recognize an impairment charge if the carrying value exceeds the fair value of the reporting unit, but only to the extent of the goodwill amount allocated to that reporting unit. Companies will still have the option to perform a qualitative assessment to determine if the quantitative impairment test is necessary. ASU 2017-04 is effective for our fiscal year 2021, including interim periods within the fiscal year. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates on or after January 1, 2017. We do not expect that the adoption of this accounting standard update will have a material effect on our consolidated financial statements.

In May 2017, the FASB issued ASU No. 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting, to provide clarity and to reduce diversity in practice and cost and complexity when applying the guidance in Topic 718 to the modification of the terms and conditions of a share-based payment award. ASU 2017-09 includes guidance on determining which changes to the terms and conditions of share-based payment awards require a company to apply modification accounting under Topic 718. This update requires the entity to account for the effects of a modification unless specific conditions are met. ASU 2017-09 applies to entities that change the terms or conditions of a share-based payment award and is effective for our fiscal year 2019. Early adoption is permitted, including adoption in any interim period. We do not expect that the adoption of this accounting standard update will have a material effect on our consolidated financial statements.

- Definition

The entire disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-URI http://asc.fasb.org/extlink&oid=64853466&loc=d3e22583-107794

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Indirect Effects of a Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6515603

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=64853466&loc=d3e22580-107794

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.10-01.(b)(6))
-URI http://asc.fasb.org/extlink&oid=27015980&loc=d3e46468-122699

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Accounting Change
-URI http://asc.fasb.org/extlink&oid=6503790

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=64853466&loc=d3e22499-107794

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Retrospective Application
-URI http://asc.fasb.org/extlink&oid=6523989

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section 45
-Paragraph 13
-URI http://asc.fasb.org/extlink&oid=68064558&loc=d3e765-108305

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section 45
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=68064558&loc=d3e725-108305

+ Details

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

6 Months Ended

Apr. 30, 2017

Schedule of Fair Value of Derivative Instruments

	April 30, 2017			October 31, 2016
	Balance Sheet			Balance Sheet
Derivatives	Location	Fair Value		Location	Fair Value
Designated as Hedging Instruments:
Foreign exchange forward contracts	Derivative assets	$	997	Derivative assets	$	1,721
Foreign exchange forward contracts	Derivative liabilities	$	442	Derivative liabilities	$	173
Not Designated as Hedging Instruments:
Foreign exchange forward contracts	Derivative assets	$	230	Derivative assets	$	4
Foreign exchange forward contracts	Derivative liabilities	$	75	Derivative liabilities	$	365

Period One [Member]

Schedule of Changes in Components of Accumulated Other Comprehensive Loss

	Foreign Currency Translation		Cash Flow Hedges		Total
Balance, January 31, 2017	$	(12,428)	$	1,820	$	(10,608)
Other comprehensive income before reclassifications		2,259		95		2,354
Reclassifications		—		(317)		(317)
Balance, April 30, 2017	$	(10,169)	$	1,598	$	(8,571)

	Foreign		Cash
	Currency		Flow
	Translation		Hedges		Total
Balance, October 31, 2016	$	(12,325)	$	1,282	$	(11,043)
Other comprehensive income before reclassifications		2,156		424		2,580
Reclassifications		—		(108)		(108)
Balance, April 30, 2017	$	(10,169)	$	1,598	$	(8,571)

Period One [Member] | Designated as Hedging Instrument [Member]

Schedule of Effect of Derivative Instruments on the Balance Sheets, Statements of Changes in Shareholders' Equity and Statements of Operations

Derivatives	Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss)				Location of Gain (Loss) Reclassified from Other Comprehensive Income (Loss)	Amount of Gain (Loss) Reclassified from Other Comprehensive Income (Loss)
	Three Months Ended April 30,					Three Months Ended April 30,
	2017		2016			2017		2016
Designated as Hedging Instruments:
(Effective portion)
Foreign exchange forward contracts – Intercompany sales/purchases	$	95	$	(736)	Cost of sales and service	$	317	$	546

Foreign exchange forward contract – Net investment	$	(9)	$	(116)

Location of

Gain (Loss)

Amount of Gain

Reclassified

(Loss) Reclassified

(Loss) Recognized in

from Other

Other Comprehensive

Comprehensive

Derivatives

Income (Loss)

Six Months Ended

April 30,

2017

2016

2017

2016

Designated as Hedging Instruments:

(Effective portion)

Foreign exchange forward contracts – Intercompany sales/purchases

424

(567)

Cost of sales and service

108

1,474

Foreign exchange forward contract – Net investment

(80)

Period One [Member] | Not Designated as Hedging Instrument [Member]

Schedule of Derivatives Not Designated as Hedging Instruments

	Location of Gain
	(Loss) Recognized	Amount of Gain (Loss)
Derivatives	in Operations	Recognized in Operations
		Three Months Ended
		April 30,
Not Designated as Hedging Instruments:		2017		2016
Foreign exchange forward contracts	Other (income) expense, net	$	165	$	(1,239)

	Location of Gain
	(Loss) Recognized	Amount of Gain (Loss)
Derivatives	in Operations	Recognized in Operations
		Six Months Ended
		April 30,
		2017		2016
Not Designated as Hedging Instruments:
Foreign exchange forward contracts	Other (income) expense, net	$	955	$	(1,100)

EQUITY INCENTIVE PLAN (Tables)

6 Months Ended

Apr. 30, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Summary of Stock Option Activity

	Stock Options		Weighted Average Exercise Price

Outstanding at October 31, 2016		107,889	$	20.25

Options granted		—		—
Options exercised		(12,164)		22.11
Options cancelled		—		—

Outstanding at April 30, 2017		95,725	$	20.01

Schedule of Information about Outstanding Stock Options that have Already Vested and those that are Expected to Vest

	Options Already Vested and Currently Exercisable

Number of outstanding options		95,725
Weighted average remaining contractual life (years)		3.73
Weighted average exercise price per share	$	20.01
Intrinsic value of outstanding options	$	894,000

Reconciliation of Restricted Stock Activity and Related Information

			Weighted Average
	Number of		Grant Date
	Shares		Fair Value
Unvested at October 31, 2016		147,350	$	28.79
Shares or units granted		71,011		34.61
Shares or units vested		(38,930)		26.98
Shares or units cancelled		(7,678)		29.98
Shares withheld		(13,944)		25.89
Unvested at April 30, 2017		157,809	$	32.05

EARNINGS PER SHARE (Tables)

6 Months Ended

Apr. 30, 2017

Earnings Per Share [Abstract]

Reconciliation of Basic and Diluted Earnings Per Share

	Three Months Ended								Six Months Ended
	April 30,								April 30,
	2017				2016				2017				2016

	Basic		Diluted		Basic		Diluted		Basic		Diluted		Basic		Diluted

Net income	$	3,646	$	3,646	$	3,674	$	3,674	$	4,525	$	4,525	$	7,569	$	7,569
Undistributed earnings allocated to participating shares		(24)		(24)		(21)		(21)		(30)		(30)		(43)		(43)
Net income applicable to common shareholders	$	3,622	$	3,622	$	3,653	$	3,653	$	4,495	$	4,495	$	7,526	$	7,526
Weighted average shares outstanding		6,617		6,617		6,570		6,570		6,600		6,600		6,564		6,564
Stock options and contingently issuable shares		—		54		—		71		—		64		—		66
		6,617		6,671		6,570		6,641		6,600		6,664		6,564		6,630

Income per share	$	0.55	$	0.54	$	0.56	$	0.56	$	0 .68	$	0.67	$	1.15	$	1.14

INVENTORIES (Tables)

6 Months Ended

Apr. 30, 2017

Inventory Disclosure [Abstract]

Schedule of Inventories

Inventories, priced at the lower of cost (first-in, first-out method) or market, are summarized below (in thousands):

	April 30, 2017		October 31, 2016
Purchased parts and sub-assemblies	$	28,430	$	25,661
Work-in-process		18,065		17,724
Finished goods		72,358		73,640
	$	118,853	$	117,025

GUARANTEES AND PRODUCT WARRANTIES (Tables)

6 Months Ended

Apr. 30, 2017

Standard Product Warranty Disclosure [Abstract]

Reconciliation of Warranty Reserve

A reconciliation of the changes in our warranty reserve is as follows (in thousands):

	Six Months Ended April 30,
	2017		2016
Balance, beginning of period	$	1,523	$	2,186
Provision for warranties during the period		1,614		1,414
Charges to the reserve		(1,605)		(1,755)
Impact of foreign currency translation		9		8
Balance, end of period	$	1,541	$	1,853

FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Apr. 30, 2017

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Fair Value

	Assets				Liabilities
	April 30,		October 31,		April 30,		October 31,
	2017		2016		2017		2016

Level 1
Deferred Compensation	$	1,508	$	1,363	$	-	$	-

Level 2
Derivatives	$	1,227	$	1,725	$	517	$	538

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Schedule of Fair Value of Derivative Instruments) (Details) - USD ($) $ in Thousands	Apr. 30, 2017	Oct. 31, 2016
Derivatives, Fair Value [Line Items]
Derivative assets	$ 1,227	$ 1,725
Derivative liabilities	517	538
Foreign Exchange Forward [Member] \| Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Derivative assets	997	1,721
Derivative liabilities	442	173
Foreign Exchange Forward [Member] \| Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Derivative assets	230	4
Derivative liabilities	$ 75	$ 365

- Definition

Fair value, after the effects of master netting arrangements, of a financial liability or contract with one or more underlyings, notional amount or payment provision or both, and the contract can be net settled by means outside the contract or delivery of an asset, expected to be settled within one year or normal operating cycle, if longer. Includes assets not subject to a master netting arrangement and not elected to be offset.

+ References + Details

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Schedule of Effect of Derivative Instruments on Consolidated Balance Sheets, Statements of Changes in Shareholders' Equity and Statements of Operations) (Details) - Foreign Exchange Forward [Member] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2017	Apr. 30, 2016	Apr. 30, 2017	Apr. 30, 2016
Designated as Hedging Instrument [Member] \| Intercompany sales/purchases [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss)	$ 95	$ (736)	$ 424	$ (567)
Designated as Hedging Instrument [Member] \| Cost of Sales [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Reclassified from Other Comprehensive Income (Loss)	317	546	108	1,474
Designated as Hedging Instrument [Member] \| Net Investment Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss)	(9)	(116)	30	(80)
Not Designated as Hedging Instrument [Member] \| Other Income And Expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Operations	$ 165	$ (1,239)	$ 955	$ (1,100)

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Schedule of Changes in Components of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2017	Apr. 30, 2016	Apr. 30, 2017	Apr. 30, 2016
Derivative [Line Items]
Beginning Balance	$ (10,608)		$ (11,043)
Other comprehensive income before reclassifications	2,354		2,580
Reclassifications	(317)	$ (546)	(108)	$ (1,474)
Ending Balance	(8,571)		(8,571)
Foreign Currency Translation [Member]
Derivative [Line Items]
Beginning Balance	(12,428)		(12,325)
Other comprehensive income before reclassifications	2,259		2,156
Reclassifications	0		0
Ending Balance	(10,169)		(10,169)
Cash Flow Hedges [Member]
Derivative [Line Items]
Beginning Balance	1,820		1,282
Other comprehensive income before reclassifications	95		424
Reclassifications	(317)		(108)
Ending Balance	$ 1,598		$ 1,598

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Narrative) (Details) € in Millions	1 Months Ended	3 Months Ended		6 Months Ended
	Nov. 30, 2016 EUR (€)	Apr. 30, 2017 USD ($)	Apr. 30, 2016 USD ($)	Apr. 30, 2017 USD ($)	Apr. 30, 2016 USD ($)	Oct. 31, 2016 USD ($)
Derivative financial instruments:
Notional principal of foreign exchange contracts		$ 112,500,000		$ 112,500,000		$ 125,600,000
(Losses) gains, net of tax, related to cash flow hedges deferred in Accumulated Other Comprehensive Loss		1,600,000		1,600,000
Unrealized gain (loss), net of tax, to be reclassified in next 12 months		372,000		372,000
Gain (loss) on hedge ineffectiveness		32,000	$ 32,000	168,000	$ 32,000
Not Designated as Hedging Instrument [Member]
Derivative financial instruments:
Notional principal of foreign exchange contracts		57,700,000		57,700,000
Forward Contracts [Member] \| Designated as Hedging Instrument [Member]
Derivative financial instruments:
Realized gain on net investment hedge				809,000
Notional amount of derivatives designated as net investment hedge \| €	€ 3.0
Unrealized gain (loss), net of tax, recorded as cumulative translation adjustments in Accumulated Other Comprehensive Loss		(14,000)		$ (14,000)
Derivative maturity date				May 2017 through April 2018
Forward Contracts [Member] \| Not Designated as Hedging Instrument [Member]
Derivative financial instruments:
Derivative maturity date				May 2017 through October 2017
Euros [Member] \| Designated as Hedging Instrument [Member]
Derivative financial instruments:
Notional principal of foreign exchange contracts		23,700,000		$ 23,700,000
Pounds Sterling [Member] \| Designated as Hedging Instrument [Member]
Derivative financial instruments:
Notional principal of foreign exchange contracts		7,300,000		7,300,000
New Taiwan Dollars [Member] \| Designated as Hedging Instrument [Member]
Derivative financial instruments:
Notional principal of foreign exchange contracts		$ 21,500,000		$ 21,500,000

EQUITY INCENTIVE PLAN (Summary of Stock Option Activity and Related Information) (Details)	6 Months Ended
	Apr. 30, 2017 $ / shares shares
Stock Options
Outstanding \| shares	107,889
Options granted \| shares	0
Options exercised \| shares	(12,164)
Options cancelled \| shares	0
Outstanding \| shares	95,725
Weighted Average Exercise Price
Outstanding \| $ / shares	$ 20.25
Options granted \| $ / shares	0
Options exercised \| $ / shares	22.11
Options cancelled \| $ / shares	0
Outstanding \| $ / shares	$ 20.01

EQUITY INCENTIVE PLAN (Schedule of Information about Outstanding Stock Options Vested and Expected to Vest) (Details)	6 Months Ended
	Apr. 30, 2017 USD ($) $ / shares shares
Options Currently Exercisable
Number of outstanding options \| shares	95,725
Weighted average remaining contractual life (years)	3 years 8 months 23 days
Weighted average exercise price per share \| $ / shares	$ 20.01
Intrinsic value of outstanding options \| $	$ 894,000

EQUITY INCENTIVE PLAN (Reconciliation of Restricted Stock Activity and Related Information) (Details)	6 Months Ended
	Apr. 30, 2017 $ / shares shares
Number of Shares
Unvested at October 31, 2016 \| shares	147,350
Shares or units granted \| shares	71,011
Shares or units vested \| shares	(38,930)
Shares or units cancelled \| shares	(7,678)
Shares withheld \| shares	(13,944)
Unvested at April 30, 2017 \| shares	157,809
Weighted Average Grant Date Fair Value
Unvested at October 31, 2016 \| $ / shares	$ 28.79
Shares or units granted \| $ / shares	34.61
Shares or units vested \| $ / shares	26.98
Shares or units cancelled \| $ / shares	29.98
Shares withheld \| $ / shares	25.89
Unvested at April 30, 2017 \| $ / shares	$ 32.05

EQUITY INCENTIVE PLAN (Narrative) (Details) - USD ($)				6 Months Ended
EQUITY INCENTIVE PLAN (Narrative) (Details) - USD ($)	Mar. 10, 2017	Mar. 09, 2017	Jan. 05, 2017	Apr. 30, 2017	Apr. 30, 2016	Oct. 31, 2016	Mar. 10, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense				$ 646,000	$ 759,000
Unrecognized Stock-based compensation expense				$ 2,900,000
Restricted stock granted				71,011
Grant date fair value of restricted stock				$ 32.05		$ 28.79
Weighted Average Grant Date Fair Value				$ 26.98
2016 Equity Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period of options granted	10 years
Total number of shares of common stock that may be issued as awards under 2016 Plan							856,048
2008 Equity Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares Available for Grant under the 2008 Plan							386,048
Long-term Incentive Compensation [Member] \| Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted			30,683
Vesting Date			Jan. 05, 2017
Weighted Average Grant Date Fair Value			$ 33.90
Time Based [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted			14,747
Grant date fair value of restricted stock			$ 33.90
Vesting period		1 year
Percentage of incentive compensation arrangement			25.00%
Time Based [Member] \| 2016 Equity Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted		14,920
Grant date fair value of restricted stock		$ 26.80
Performance Based [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			3 years
Percentage of incentive compensation arrangement			75.00%
Performance Based [Member] \| PSU TSR [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted			18,496
Grant date fair value of restricted stock			$ 43.25
Percentage of incentive compensation arrangement			40.00%
Performance Based [Member] \| PSU TSR [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of incentive compensation arrangement			200.00%
Performance Based [Member] \| PSU TSR [Member] \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of incentive compensation arrangement			50.00%
Performance Based [Member] \| PSU ROIC [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted			20,647
Grant date fair value of restricted stock			$ 33.90
Percentage of incentive compensation arrangement			35.00%
Performance Based [Member] \| PSU ROIC [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of incentive compensation arrangement			200.00%
Performance Based [Member] \| PSU ROIC [Member] \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of incentive compensation arrangement			50.00%

EARNINGS PER SHARE (Reconciliation of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2017	Apr. 30, 2016	Apr. 30, 2017	Apr. 30, 2016
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income	$ 3,646	$ 3,674	$ 4,525	$ 7,569
Undistributed earnings allocated to participating shares	(24)	(21)	(30)	(43)
Net income applicable to common shareholders	$ 3,622	$ 3,653	$ 4,495	$ 7,526
Weighted average shares outstanding, Basic	6,617	6,570	6,600	6,564
Stock options and contingently issuable shares	54	71	64	66
Weighted average shares outstanding, Diluted	6,671	6,641	6,664	6,630
Income per share, Basic	$ 0.55	$ 0.56	$ 0.68	$ 1.15
Income per share, Diluted	$ 0.54	$ 0.56	$ 0.67	$ 1.14

ACCOUNTS RECEIVABLE (Narrative) (Details) - USD ($)	Apr. 30, 2017	Oct. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for Doubtful Accounts Receivable	$ 653,000	$ 664,000

INVENTORIES (Schedule Of Inventory Current) (Details) - USD ($) $ in Thousands	Apr. 30, 2017	Oct. 31, 2016
Inventory [Line Items]
Purchased parts and sub-assemblies	$ 28,430	$ 25,661
Work-in-process	18,065	17,724
Finished goods	72,358	73,640
Inventories	$ 118,853	$ 117,025

GUARANTEES AND PRODUCT WARRANTIES (Reconciliation of the changes in our warranty reserve) (Details) - USD ($) $ in Thousands	6 Months Ended
	Apr. 30, 2017	Apr. 30, 2016
Product Warranty Liability [Line Items]
Balance, beginning of period	$ 1,523	$ 2,186
Provision for warranties during the period	1,614	1,414
Charges to the reserve	(1,605)	(1,755)
Impact of foreign currency translation	9	8
Balance, end of period	$ 1,541	$ 1,853

GUARANTEES AND PRODUCT WARRANTIES (Narrative) (Details) $ in Millions	6 Months Ended
	Apr. 30, 2017 USD ($)
Product Warranty Liability [Line Items]
Number Of Guarantees	24
Guarantor Obligations, Maximum Exposure, Undiscounted	$ 1.1
Term of Product Warranty	1 year

DEBT AGREEMENTS (Narrative) (Details) € in Millions, ¥ in Millions, £ in Millions, $ in Millions			1 Months Ended	6 Months Ended
	Dec. 06, 2016 USD ($)	Dec. 07, 2012 USD ($)	Feb. 16, 2017 USD ($)	Apr. 30, 2017 USD ($)	Apr. 30, 2017 EUR (€)	Apr. 30, 2017 GBP (£)	Feb. 16, 2017 CNY (¥)	Feb. 15, 2017 CNY (¥)	Dec. 05, 2016 USD ($)	Oct. 31, 2016
Line of Credit Facility [Line Items]
Borrowings available under credit facility				$ 19.4
Letter of Credit [Member]
Line of Credit Facility [Line Items]
Line of credit, maximum borrowing capacity	$ 5.0
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of credit, maximum borrowing capacity	15.0								$ 12.5
Maximum dividends allowable	5.0								4.0
Minimum working capital requirement	105.0								90.0
Minimum tangible net worth requirement	$ 125.0								$ 120.0
Line of Credit, interest rate description				Borrowings under our U.S. credit agreement bear 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 equals 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 must pay for that portion of the U.S. credit agreement which is not utilized is 0.05% per annum.
Line of credit, maturity date	Dec. 31, 2018
Allowable investments in subsidiaries		$ 5.0
Revolving Credit Facility [Member] \| United Kingdom [Member]
Line of Credit Facility [Line Items]
Line of credit, maximum borrowing capacity \| £						£ 1.0
Revolving Credit Facility [Member] \| Germany [Member]
Line of Credit Facility [Line Items]
Line of credit, maximum borrowing capacity \| €					€ 1.5
Revolving Credit Facility [Member] \| China [Member]
Line of Credit Facility [Line Items]
Line of credit, maximum borrowing capacity			$ 2.9				¥ 20.0	¥ 40.0
Line of credit, maturity date			Feb. 15, 2018
Interest rate				4.40%	4.40%	4.40%				4.60%
Long-term Line of Credit				$ 1.5

INCOME TAXES (Narrative) (Details) - USD ($)	3 Months Ended		6 Months Ended
INCOME TAXES (Narrative) (Details) - USD ($)	Apr. 30, 2017	Apr. 30, 2016	Apr. 30, 2017	Apr. 30, 2016	Oct. 31, 2016
Income Tax Contingency [Line Items]
Unrecognized tax benefits, interest accrued	$ 62,000		$ 62,000
Effective Income Tax Rate Reconciliation, Percent, Total			31.00%	28.00%
Unrecognized Tax Benefits Expiration Term			expire between July 2017 and July 2019.
Income Tax Expense (Benefit)	1,467,000	$ 1,225,000	$ 2,010,000	$ 2,934,000
Unrecognized Tax Benefits, Ending Balance	$ 1,200,000		$ 1,200,000		$ 1,100,000

FINANCIAL INSTRUMENTS (Fair value hierarchy) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	Apr. 30, 2017	Oct. 31, 2016
Level 1 [Member]
Assets
Deferred Compensation	$ 1,508	$ 1,363
Liabilities
Deferred Compensation	0	0
Level 2 [Member]
Assets
Derivatives	1,227	1,725
Liabilities
Derivatives	$ 517	$ 538

- Definition

Fair value portion of investment securities, including, but not limited to, marketable securities, derivative financial instruments, and investments accounted for under the equity method.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(12))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Trading Securities
-URI http://asc.fasb.org/extlink&oid=6526789

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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+ Details

FINANCIAL INSTRUMENTS (Narrative) (Details) - USD ($) $ in Thousands	Apr. 30, 2017	Oct. 31, 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notional amount of contracts	$ 112,500	$ 125,600
Fair Value, Inputs, Level 2 [Member] \| Fair Value, Measurements, Recurring [Member]
Assets
Derivatives	1,227	1,725
Liabilities
Derivatives	$ 517	$ 538