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Document And Entity Information - USD ($)	12 Months Ended
Document And Entity Information - USD ($)	Oct. 31, 2017	Dec. 18, 2017	Apr. 28, 2017
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Oct. 31, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	FY
Entity Registrant Name	HURCO COMPANIES INC
Entity Central Index Key	0000315374
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			$ 192,102,000
Trading Symbol	HURC
Entity Common Stock, Shares Outstanding		6,641,197

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2015
Sales and service fees	$ 243,667	$ 227,289	$ 219,383
Cost of sales and service	173,103	156,849	150,292
Gross profit	70,564	70,440	69,091
Selling, general and administrative expenses	49,661	50,824	45,287
Operating income	20,903	19,616	23,804
Interest expense	91	72	198
Interest income	41	40	76
Investment income	138	149	78
Income from equity investments	505	466	474
Other expense, net	780	1,314	681
Income before income taxes	20,716	18,885	23,553
Provision for income taxes	5,601	5,593	7,339
Net income	$ 15,115	$ 13,292	$ 16,214
Income per common share - basic	$ 2.27	$ 2.01	$ 2.46
Weighted average common shares outstanding - basic	6,615	6,569	6,543
Income per common share - diluted	$ 2.25	$ 1.99	$ 2.44
Weighted average common shares outstanding - diluted	6,680	6,642	6,602
Dividends paid per share	$ 0.39	$ 0.35	$ 0.31

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2015
Net Income	$ 15,115	$ 13,292	$ 16,214
Other comprehensive income (loss):
Translation gain (loss) of foreign currency financial statements	4,916	(1,441)	(6,333)
(Gain) / loss on derivative instruments reclassified into operations, net of tax of $(745), $(906), and $(431), respectively	(1,354)	(1,647)	(784)
Gain / (loss) on derivative instruments, net of tax of $(390), $787, and $712, respectively	(709)	1,431	1,291
Total other comprehensive income (loss)	2,853	(1,657)	(5,826)
Comprehensive income	$ 17,968	$ 11,635	$ 10,388

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2015
Realized loss (gains) on derivative instruments reclassified into operations, tax	$ (745)	$ (906)	$ (431)
Unrealized (loss) gains on derivative instruments, tax	$ (390)	$ 787	$ 712

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Oct. 31, 2017	Oct. 31, 2016
Current assets:
Cash and cash equivalents	$ 66,307	$ 41,217
Accounts receivable, less allowance for doubtful accounts of $639 in 2017 and $664 in 2016	50,094	48,631
Inventories, net	119,948	117,025
Derivative assets	596	1,725
Prepaid assets	7,913	8,207
Other	1,557	1,576
Total current assets	246,415	218,381
Property and equipment:
Land	841	841
Building	7,352	7,352
Machinery and equipment	25,652	23,515
Leasehold improvements	3,503	3,487
Property and equipment, gross	37,348	35,195
Less accumulated depreciation and amortization	(25,167)	(22,898)
Total property and equipment, net	12,181	12,297
Non-current assets:
Software development costs, less accumulated amortization	6,226	4,926
Goodwill	2,440	2,314
Intangible assets, net	1,076	1,150
Deferred income taxes	6,176	6,138
Investments and other assets, net	7,131	6,743
Total non-current assets	23,049	21,271
Total assets	281,645	251,949
Current liabilities:
Accounts payable	45,127	35,210
Accounts payable-related parties	2,511	1,990
Accrued expenses and other	18,240	17,231
Accrued warranty expenses	1,772	1,523
Derivative liabilities	1,732	538
Short-term debt	1,507	1,476
Total current liabilities	70,889	57,968
Non-current liabilities:
Deferred income taxes	3,821	4,294
Accrued tax liability	133	963
Deferred credits and other	3,717	3,249
Total non-current liabilities	7,671	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, 6,799,006 and 6,720,453 shares issued; and 6,641,197 and 6,573,103 shares outstanding, as of October 31, 2017 and October 31, 2016, respectively	664	657
Additional paid-in capital	61,344	59,119
Retained earnings	149,267	136,742
Accumulated other comprehensive loss	(8,190)	(11,043)
Total shareholders' equity	203,085	185,475
Total liabilities and shareholders' equity	$ 281,645	$ 251,949

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Oct. 31, 2017	Oct. 31, 2016
Accounts receivable, allowance for doubtful accounts	$ 639	$ 664
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	6,799,006	6,720,453
Common stock, shares outstanding	6,641,197	6,573,103

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2015
Cash flows from operating activities:
Net income	$ 15,115	$ 13,292	$ 16,214
Adjustments to reconcile net income to net cash provided by (used for) operating activities, net of acquisitions:
Provision for doubtful accounts	(25)	(75)	(139)
Deferred income taxes	1,108	(225)	(1,013)
Equity in income of affiliates	(505)	(466)	(474)
Foreign currency (gain) loss	(851)	1,850	3,223
Unrealized (gain) loss on derivatives	(411)	393	147
Depreciation and amortization	3,616	3,868	3,222
Stock-based compensation	1,698	1,607	1,193
Taxes paid related to net settlement of restricted shares	295	146	239
Change in assets and liabilities, net of acquisitions:
(Increase) decrease in accounts receivable	563	(8,141)	3,666
(Increase) decrease in inventories	1,638	(13,881)	2,852
(Increase) decrease in prepaid expenses	80	809	383
Increase (decrease) in accounts payable	8,529	(6,001)	(1,028)
Increase (decrease) in accrued expenses	627	(90)	(962)
Net change in derivative assets and liabilities	964	(245)	1,081
Other	(2,069)	442	179
Net cash provided by (used for) operating activities	30,372	(6,717)	28,783
Cash flows from investing activities:
Proceeds from sale of property and equipment	0	264	62
Purchase of property and equipment	(2,181)	(1,972)	(3,127)
Software development costs	(2,264)	(2,205)	(1,406)
Other investments	417	0	308
Acquisition of business, net of cash acquired	0	0	(17,650)
Net cash provided by (used for) investing activities	(4,028)	(3,913)	(21,813)
Cash flows from financing activities:
Proceeds from exercise of common stock options	534	0	257
Dividends paid	(2,590)	(2,310)	(2,034)
Tax benefit from exercise of stock options	0	0	119
Taxes paid related to net settlement of restricted shares	(295)	(146)	(239)
Repayment on short-term debt	0	0	(1,605)
Net cash provided by (used for) financing activities	(2,351)	(2,456)	(3,502)
Effect of exchange rate changes on cash and cash equivalents	1,097	(934)	(2,077)
Net increase (decrease) in cash and cash equivalents	25,090	(14,020)	1,391
Cash and cash equivalents at beginning of year	41,217	55,237	53,846
Cash and cash equivalents at end of year	66,307	41,217	55,237
Cash paid for:
Interest	66	56	156
Income taxes, net	$ 4,867	$ 4,328	$ 9,890

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, 2014	$ 164,645	$ 651	$ 55,974	$ 111,580	$ (3,560)
Balances, Beginning (Shares) at Oct. 31, 2014		6,508,880
Net income	16,214	$ 0	0	16,214	0
Other comprehensive income (loss)	(5,826)	0	0	0	(5,826)
Exercise of common stock options	$ 257	$ 1	256	0	0
Exercise of common stock options (Shares)	15,300	15,300
Stock-based compensation expense	$ 1,193	$ 3	1,190	0	0
Stock-based compensation expense (Shares)		27,538
Tax benefit (expense) from stock option activities	119	$ 0	119	0	0
Dividends paid	(2,034)	0	0	(2,034)	0
Balances, Ending at Oct. 31, 2015	174,568	$ 655	57,539	125,760	(9,386)
Balances, Ending (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)
Exercise of common stock options	$ 0	$ 0	0	0	0
Exercise of common stock options (Shares)	0	0
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	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

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Oct. 31, 2017

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Consolidation

. The consolidated financial statements include the accounts of Hurco Companies, Inc. (an Indiana corporation) and its wholly-owned 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 $3.6 million and $3.6 million as of October 31, 2017 and 2016, respectively. That investment is included in Investments and other assets, net on the accompanying Consolidated Balance Sheets. Intercompany accounts and transactions have been eliminated.

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

. All balance sheet accounts of non-U.S. subsidiaries are translated at the exchange rate as of the end of the year and translation adjustments of foreign currency balance sheets are recorded as a component of Accumulated other comprehensive loss in shareholders' equity. Income and expenses are translated at the average exchange rates during the year. Cumulative foreign currency translation adjustments, net of gains related to our net investment hedges, as of October 31, 2017 were a net loss of $7.4 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 inter-company sales and purchases denominated in foreign currencies (the Pound Sterling, Euro and New Taiwan Dollar). The purpose of these instruments is to mitigate the risk that the U.S. Dollar net cash inflows and outflows resulting from sales and purchases denominated in foreign currencies will be adversely affected by changes in exchange rates. These forward contracts have been designated as cash flow hedge instruments, and are recorded in the Consolidated Balance Sheets at fair value in Derivative assets and Derivative liabilities. The effective portion of the gains and losses resulting from the changes in the fair value of these hedge contracts are deferred in Accumulated other comprehensive loss and recognized as an adjustment to Cost of sales and service in the period that the corresponding inventory sold that is the subject of the related hedge contract is recognized, thereby providing an offsetting economic impact against the corresponding change in the U.S. Dollar value of the inter-company sale or purchase being hedged. The ineffective portion of gains and losses resulting from the changes in the fair value of these hedge contracts is reported in Other (income) expense, net immediately. We perform quarterly assessments of hedge effectiveness by verifying and documenting the critical terms of the hedge instrument and determining that forecasted transactions have not changed significantly. We also assess on a quarterly basis whether there have been adverse developments regarding the risk of a counterparty default.

We had forward contracts outstanding as of October 31, 2017, in Euros, Pounds Sterling and New Taiwan Dollars with set maturity dates ranging from November 2017 through October 2018. The contract amount at forward rates in U.S. Dollars at October 31, 2017 for Euros and Pounds Sterling was $31.6 million and $8.5 million, respectively. The contract amount at forward rates in U.S. Dollars for New Taiwan Dollars was $31.2 million at October 31, 2017. At October 31, 2017, we had approximately $790,000 of loss, net of tax, related to cash flow hedges deferred in Accumulated other comprehensive loss. Of this amount, $636,000 represented unrealized loss, net of tax, related to cash flow hedge instruments that remain subject to currency fluctuation risk. The majority of these deferred losses will be recorded as an adjustment to Cost of sales and service in periods through October 2018, 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 2016. 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 2017 and we entered into a new forward contract for the same notional amount that is set to mature in November 2018. As of October 31, 2017, we had a realized gain of $809,000 and an unrealized loss of $140,000, 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 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, 2017, in Euros, Pounds Sterling, South African Rand and New Taiwan Dollars with set maturity dates ranging from November 2017 through October 2018. The contract amounts at forward rates in U.S. Dollars at October 31, 2017 for Euros, Pounds Sterling and South African Rand totaled $28.1 million. The contract amount at forward rates in U.S. Dollars for New Taiwan Dollars was $32.6 million at October 31, 2017.

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, 2017 and October 31, 2016, all derivative instruments were recorded at fair value on the balance sheets as follows (in thousands):

	2017			2016
	Balance Sheet	Fair		Balance Sheet	Fair
Derivatives	Location	Value		Location	Value

Designated as Hedging Instruments:
Foreign exchange forward contracts	Derivative assets	$	305	Derivative assets	$	1,721
Foreign exchange forward contracts	Derivative liabilities	$	1,508	Derivative liabilities	$	173

Not Designated as Hedging Instruments:
Foreign exchange forward contracts	Derivative assets	$	291	Derivative assets	$	4
Foreign exchange forward contracts	Derivative liabilities	$	224	Derivative liabilities	$	365

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, 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)
	2017		2016			2017		2016
Designated as Hedging Instruments:
(Effective Portion)

Foreign exchange forward contracts	$	(709)	$	1,431	Cost of sales and service	$	1,354	$	1,647
– Intercompany sales/purchases	$	(709)	$	1,431	Cost of sales and service	$	1,354	$	1,647

Foreign exchange forward contract	$	(96)	$	28
– Net Investment	$	(96)	$	28

We recognized a gain of $18,000 during the fiscal year ended October 31, 2017 and a gain of $18,000 during the fiscal year ended October 31, 2016 as a result of contracts closed early that were deemed ineffective for financial reporting and did not qualify as cash flow hedges.

We recognized the following gains and losses in our Consolidated Statements of Income during the fiscal years ended October 31, 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
		2017		2016
Not Designated as Hedging Instruments:
Foreign exchange forward contracts	Other expense, net	$	(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, 2017 and 2016 (in thousands):

	Foreign		Cash
	Currency		Flow
	Translation		Hedges		Total
Balance, October 31, 2015	$	(10,884)	$	1,498	$	(9,386)
Other comprehensive income (loss) before reclassifications		(1,441)		1,431		(10)
Reclassifications		—		(1,647)		(1,647)
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)

Inventories

. Inventories are stated at the lower of cost or market, with cost determined using the first-in, first-out method. Provisions are made to reduce excess or obsolete inventories to their estimated realizable value.

Property and Equipment

. Property and equipment are carried 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 property and equipment for the fiscal years ended October 31, 2017, 2016 and 2015 was $2.5 million, $2.5 million, and $2.2 million, respectively.

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 to be inconsequential and perfunctory.

Service fees from maintenance contracts are deferred and recognized in earnings on a pro rata basis over the term of the contract, 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 $4.2 million, $4.9 million, and $3.9 million, in fiscal 2017, 2016, and 2015, 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 2017, $2.2 million in fiscal 2016, and $1.4 million in fiscal 2015 related to software development projects. Amortization expense for software development costs was $1.0 million, $1.2 million, and $1.0 million, for the fiscal years ended October 31, 2017, 2016, and 2015, respectively. Accumulated amortization at October 31, 2017 and 2016 was $17.4 million and $16.5 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
2018		1,425
2019		1,250
2020		1,200
2021		1,075
2022		975

Goodwill and Intangible Assets.

Goodwill and other separately recognized intangible assets with indefinite lives are not subject to amortization. At least once annually or when indicators of impairment exist, we perform an impairment test for goodwill. We use a qualitative approach to test goodwill and indefinite-lived assets for impairment annually. Periodically, or when indicators of impairment exist, we also utilize a two-stepped approach to measuring goodwill impairment. The first step of the test determines if there is potential goodwill impairment. In this step we compare the fair value of the reporting unit to its carrying amount (which includes goodwill). The fair value of the reporting unit is determined by using an estimate of future cash flows utilizing a risk-adjusted discount rate to calculate the net present value of future cash flows (income approach), and by using a market approach based upon an analysis of valuation metrics of comparable peer companies. If the carrying amount exceeds the fair value, we perform the second step of the test, which measures the amount of impairment loss to be recorded, if any. In the second step, we compare the carrying amount of the goodwill to the implied fair value of the goodwill based on the net fair value of the recognized and unrecognized assets and liabilities of the reporting unit. If the implied fair value is less than the carrying value, an impairment loss is recorded to the extent that the fair value of the goodwill is less than its carrying value. For other separately recognized intangible assets with indefinite lives, we use a qualitative approach to test such assets for impairment if certain conditions are met. Intangible assets that are determined to have a finite life are amortized over their estimated useful lives and are also subject to review for impairment, if indicators of impairment are identified.

For fiscal 2017, we utilized both the quantitative and qualitative approaches to test for goodwill impairment and a qualitative approach to test intangible assets for potential impairment. For fiscal 2016, we utilized the qualitative approach to test both goodwill and intangible assets for potential impairment. For each of fiscal 2017 and 2016, we concluded that goodwill and other intangible assets were not impaired.

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	13 years	$	245	$	(81)	$	164
Tradenames and trademarks	indefinite		60		-		60
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

As of October 31, 2016, 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	13 years	$	231	$	(59)	$	172
Tradenames and trademarks	indefinite		60		—		60
Customer relationships	15 years		254		(114)		140
Technology	13 years		672		(172)		500
Patents	6 years		2,972		(2,741)		231
Other	8 years		373		(326)		47
Total		$	4,562	$	(3,412)	$	1,150

Intangible asset amortization expense was $136,000, $137,000, and $207,000 for fiscal 2017, 2016 and 2015, respectively. Annual intangible asset amortization expense is estimated to be $120,000 per year for fiscal years 2018 through 2022.

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,
	2017				2016				2015
(in thousands, except per share amounts)	Basic		Diluted		Basic		Diluted		Basic		Diluted
Net income	$	15,115	$	15,115	$	13,292	$	13,292	$	16,214	$	16,214
Undistributed earnings allocated to participating shares		(100)		(100)		(76)		(76)		(93)		(93)
Net income applicable to common shareholders	$	15,015	$	15,015	$	13,216	$	13,216	$	16,121	$	16,121
Weighted average shares outstanding		6,615		6,615		6,569		6,569		6,543		6,543
Stock options and contingently issuable securities		-		65		-		73		-		59
		6,615		6,680		6,569		6,642		6,543		6,602
Income per share	$	2.27	$	2.25	$	2.01	$	1.99	$	2.46	$	2.44

Income Taxes.

We account for income taxes and the related accounts under the asset and liability method. Deferred tax assets and liabilities are measured using enacted income tax rates in each jurisdiction in effect for the year in which the temporary differences are expected to be recovered or settled. These deferred tax assets are reduced by a valuation allowance, which is established when it is more likely than not that some portion or all of the deferred tax assets will not be realized. Our judgment regarding the realization of deferred tax assets may change due to future profitability and market conditions, changes in U.S. or foreign tax laws and other factors. These changes, if any, may require material adjustments to these deferred tax assets and an accompanying reduction or increase in net income in the period when such determinations are made.

The determination of our provision for income taxes requires judgment, the use of estimates and the interpretation and application of complex tax laws. Our provision for income taxes reflects a combination of income earned and taxed at the federal and state level in the U.S., as well as in various foreign jurisdictions. We have not provided for any U.S. income taxes on the undistributed earnings of our foreign subsidiaries based upon our determination that such earnings will be indefinitely reinvested abroad. Undistributed earnings of our wholly-owned foreign subsidiaries at October 31, 2017 were approximately $92.9 million. In the event these earnings are later distributed to the U.S., such distributions would likely result in additional U.S. tax that may be offset, at least in part, by associated foreign tax credits.

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.

We account for share-based compensation according to FASB guidance relating to share-based payments, which requires the measurement and recognition of compensation expense for all share-based awards made to employees and directors based on estimated fair values on the grant date. This guidance requires that we estimate the fair value of share-based awards on the date of grant and recognize as expense the value of the portion of the award that is ultimately expected to vest over the requisite service period.

Estimates.

The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles requires us to make estimates and assumptions that affect the reported amounts presented and disclosed in our consolidated financial statements. Significant estimates and assumptions in these consolidated financial statements require the exercise of judgment and are used for, but not limited to, allowance for doubtful accounts, estimates of future cash flows and other assumptions associated with goodwill, intangible and long-lived asset impairment tests, useful lives for depreciation and amortization, warranty programs, stock compensation, income taxes and deferred tax valuation allowances, and contingencies. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be different from these estimates.

BUSINESS OPERATIONS

12 Months Ended

Oct. 31, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BUSINESS OPERATIONS

Nature of Business

. We design, manufacture and sell computerized CNC machine tools, computer control systems and software products, machine tool components, software options, control upgrades, accessories and replacement parts for our products, as well as customer service and training support, to companies in the metal cutting industry through a worldwide sales, service and distribution network. The machine tool industry is highly cyclical and changes in demand can occur abruptly in the geographic markets we serve. As a result of this cyclicality, we have experienced significant fluctuations in our sales, which, in periods of reduced demand, have adversely affected our results of operations and financial condition.

The end market for our products consists primarily of precision tool, die and mold manufacturers, independent job shops, and specialized short-run production applications within large manufacturing operations. Industries served include: aerospace, defense, medical equipment, energy, automotive/transportation, electronics and computer industries. Our products are sold through more than 193 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

. We sell products to customers located throughout the world. We perform ongoing credit evaluations of customers and generally do not require collateral. Allowances are maintained for potential credit losses. Concentration of credit risk with respect to trade accounts receivable is limited due to the large number of customers and their dispersion across many geographic areas. Although a significant amount of trade receivables are with distributors primarily located in the United States, no single distributor or region represents a significant concentration of credit risk.

Manufacturing Risk.

At present, our wholly-owned subsidiaries, Hurco Manufacturing Limited (“HML”), Ningbo Hurco Manufacturing Limited (“NHML”) and Milltronics USA, Inc. (“Milltronics”) produce the vast majority of our machine tools for all three brands, Hurco, Milltronics and Takumi. In addition, we manufacture electro-mechanical components and accessories for machine tools through our wholly-owned subsidiary, LCM Precision Technology S.r.l. (“LCM”). HML, NHML, Milltronics and LCM manufacture their products in Taiwan, China, the U.S. and Italy, respectively. Any interruption in manufacturing at any of these locations would have an adverse effect on our financial operating results. Interruption in manufacturing at one of these locations could result from a change in the political environment or a natural disaster, such as an earthquake, typhoon, or tsunami. Any interruption with one of our key suppliers may also have an adverse effect on our operating results and our financial condition.

INVENTORIES

12 Months Ended

Oct. 31, 2017

Inventory Disclosure [Abstract]

INVENTORIES

Inventories as of October 31, 2017 and 2016 are summarized below (in thousands):

	2017		2016
Purchased parts and sub-assemblies	$	33,045	$	25,661
Work-in-process		20,008		17,724
Finished goods		66,895		73,640
	$	119,948	$	117,025

Finished goods inventory consigned to our distributors and agents throughout the Americas, Europe and Asia was $12.1 million and $11.6 million as of October 31, 2017 and 2016, respectively.

CREDIT AGREEMENTS AND BORROWINGS

12 Months Ended

Oct. 31, 2017

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 “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 under the U.S. credit agreement 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 $3.0 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 October 31, 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 October 31, 2017, we had unutilized credit facilities of $19.6 million.

FINANCIAL INSTRUMENTS

12 Months Ended

Oct. 31, 2017

Fair Value Disclosures [Abstract]

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, 2017 and 2016 (in thousands):

	Assets				Liabilities
	October 31,		October 31,		October 31,		October 31,
	2017		2016		2017		2016
Level 1
Deferred compensation	$	1,638	$	1,363	$	—	$	—
Level 2
Derivatives	$	596	$	1,725	$	1,732	$	538

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 $134.3 million and $125.6 million at October 31, 2017 and 2016, 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.

- 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.

+ References + Details

INCOME TAXES

12 Months Ended

Oct. 31, 2017

Income Tax Disclosure [Abstract]

INCOME TAXES

In the fiscal years set forth below, the provision for income taxes consisted of the following (in thousands):

	Year Ended October 31,
	2017		2016		2015
Current:
U.S. taxes	$	308	$	1,362	$	4,600
Foreign taxes		4,185		4,456		3,752
		4,493		5,818		8,352
Deferred:
U.S. taxes		1,236		(176)		(896)
Foreign taxes		(128)		(49)		(117)
		1,108		(225)		(1,013)
	$	5,601	$	5,593	$	7,339

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,
	2017			2016			2015
Income before income taxes:
Domestic	$	5,477		$	2,703		$	10,806
Foreign		15,239			16,182			12,747
Earnings (Loss) before taxes on income	$	20,716		$	18,885		$	23,553
Tax rates:
U.S. statutory rate		34	%		34	%		35	%
Effect of tax rate of international jurisdictions different than U.S. statutory rates		(5	%)		(7	%)		(5	%)
Valuation allowance.		1	%		3	%		1	%
State taxes		0	%		0	%		1	%
Tax Credits		(3	%)		(2	%)		(1	%)
Effect of Tax Rate Changes		0	%		4	%		0	%
Other		0	%		(2	%)		0	%
Effective tax rate		27	%		30	%		31	%

We have not made any provision for U.S. income taxes on the undistributed earnings of our wholly-owned foreign subsidiaries based upon our determination that such earnings will be indefinitely reinvested. Undistributed earnings of our wholly-owned foreign subsidiaries at October 31, 2017 were approximately $92.9 million. In the event these earnings are later distributed to the U.S., such distributions would likely result in additional U.S. tax that may be offset, at least in part, by associated foreign tax credits.

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, 2017, we had deferred tax assets established for accumulated net operating loss carryforwards of $1.7 million, primarily related to state and foreign jurisdictions. We also have deferred tax assets for research and development tax credits of $0.5 million. We have established a valuation allowance against some of these carryforwards due to the uncertainty of their full realization. As of October 31, 2017 and 2016, the balance of this valuation allowance was $2.3 million and $2.1 million, respectively.

Significant components of our deferred tax assets and liabilities at October 31, 2017 and 2016 were as follows (in thousands):

	October 31,
	2017		2016
Deferred Tax Assets:
Accrued inventory reserves	$	1,965	$	1,824
Accrued warranty expenses		438		312
Compensation related expenses		2,952		2,664
Net derivative instruments		417		—
Unrealized exchange gain/loss		—		370
Other accrued expenses		187		194
Net operating loss carryforwards		1,722		1,616
Other credit carryforwards		517		474
Other		404		331
		8,602		7,785
Less: Valuation allowance - net operating loss and other credit carryforwards		(2,282)		(2,067)
Deferred tax assets		6,320		5,718

Deferred Tax Liabilities:
Net derivative instruments		—		(701)
Property and equipment and capitalized software development costs		(3,241)		(2,717)
Unrealized exchange gain/loss		(116)		—
Other		(624)		(456)

Net deferred tax assets	$	2,339	$	1,844

As of October 31, 2017, we had net operating losses carryforwards for international and U.S. income tax purposes of $8.1 million, of which $6.7 million will expire within 5 years beginning in 2018 and $1.4 million will expire between 5 and 20 years. We also had tax credits of $784,000 which will expire between year

2022 and 2027.

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):

	2017		2016		2015
Balance, beginning of year	$	1,102	$	1,034	$	1,196
Additions based on tax positions related to the current year		37		52		17
Additions (reductions) related to prior year tax positions		(20)		19		(51)
Reductions due to statute expiration		(74)		—		—
Other		56		(3)		(128)

Balance, end of year	$	1,101	$	1,102	$	1,034

The entire balance of the unrecognized tax benefits and related interest at October 31, 2017, if recognized, would affect the effective tax rate in future periods. This balance will be reduced by $1.0 million during the next fiscal year due to statute of limitations expiration.

We recognize accrued interest and penalties related to unrecognized tax benefits as components of our income tax provision. As of October 31, 2017, the amount of interest accrued, reported in other liabilities, was approximately $65,000, 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 2018 and July 2020.

We file income tax returns in the U.S. federal jurisdiction and various states, local, and non-U.S. jurisdictions.

A summary of open tax years by major jurisdiction is presented below:

United States federal	Fiscal 2014 through the current period
Germany¹	Fiscal 2013 through the current period
Taiwan	Fiscal 2014 through the current period

¹ Includes federal as well as state, provincial or similar local jurisdictions, as applicable.

EMPLOYEE BENEFITS

12 Months Ended

Oct. 31, 2017

Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [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 $1.1 million, $1.1 million, and $933,000, for the fiscal years ended October 31, 2017, 2016 and 2015, respectively.

STOCK-BASED COMPENSATION

12 Months Ended

Oct. 31, 2017

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, 2017, 2016 and 2015 and the related activity for the year is as follows:

	Shares Under		Weighted Average Grant
	Option		Date Fair Value
Balance October 31, 2014		128,189	$	20.45
Granted		—		—
Cancelled		(5,000)	$	35.83
Expired		—		—
Exercised		(15,300)	$	16.81
Balance October 31, 2015		107,889	$	20.25
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

The total intrinsic value of stock options exercised during the twelve months ended October 31, 2017, 2016 and 2015 was approximately $771,000, $0 and $154,000, respectively.

As of October 31, 2017, the total intrinsic value of outstanding stock options already vested and the intrinsic value of options that are outstanding and exercisable was $1.8 million. Stock options outstanding and exercisable on October 31, 2017,

were

as follows:

				Weighted Average		Weighted Average
Range of Exercise		Shares Under		Exercise Price Per		Remaining Contractual
Prices Per Share		Option		Share		Life in Years
Outstanding
$	14.82		11,000	$	14.82		2.1
	14.88		4,200		14.88		1.5
	18.13		12,000		18.13		2.5
	21.45		30,012		21.45		4.1
	23.30		16,513		23.30		5.1
	35.83		5,000		35.83		0.6
$	14.82 – 35.83		78,725	$	20.25		3.4
Exercisable
$	14.82		11,000	$	14.82		2.1
	14.88		4,200		14.88		1.5
	18.13		12,000		18.13		2.5
	21.45		30,012		21.45		4.1
	23.30		16,513		23.30		5.1
	35.83		5,000		35.83		0.6
$	14.82 – 35.83		78,725	$	20.25		3.4

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 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 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 s

tock

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.

On March 12, 2015, the Compensation Committee granted a total of 9,086 shares of restricted stock to our non-employee directors. The restricted stock vests 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 restricted stock was based on the closing sales price of our common stock on the grant date which was $30.80 per share.

On January 6, 2015, the Compensation Committee approved a long-term incentive compensation arrangement for our executive officers in the form of restricted shares and performance shares awarded under the 2008 Plan. The awards were 25% time-based vesting and 75% performance-based vesting. The three-year performance period is fiscal 2015 through fiscal 2017.

On that date, the Compensation Committee granted a total of 11,174 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 $32.22 per share.

 
On January 6, 2015, the Compensation Committee also granted a total target number of 16,740 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 $34.41 per share and was calculated using the Monte Carlo approach.

On January 6, 2015, the Compensation Committee also granted a total target number of 15,643 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 $32.22 per share.

A reconciliation of the Company’s restricted stock activity and related information is as follows:

	Number		Weighted Average Grant
	of Shares		Date 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 October 31, 2017		157,809	$	32.05

During fiscal 2017 and 2016, we recorded approximately $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. We recorded approximately $1.2 million of stock-based compensation expense related to grants under the 2008 Plan for fiscal 2015. As of October 31, 2017, there was an estimated $2.1 million of total unrecognized stock-based compensation cost that we expect to recognize by the end of the first quarter of fiscal 2020.

RELATED PARTY TRANSACTIONS

12 Months Ended

Oct. 31, 2017

RELATED PARTY TRANSACTIONS

9. RELATED PARTY TRANSACTIONS

As of October 31, 2017, 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 $3.6 million and $3.6 million at October 31, 2017 and 2016, respectively, is included in Investments and other assets, net on the Consolidated Balance Sheets. Purchases of controls from HAL amounted to $10.0 million, $9.9 million and $8.9 million in fiscal 2017, 2016 and 2015, respectively. Sales of control component parts to HAL were $139,000, $623,000 and $723,000 for the fiscal years ended October 31, 2017, 2016 and 2015, respectively. Trade payables to HAL were $2.5 million and $2.0 million at October 31, 2017 and 2016, respectively. Trade receivables from HAL were $30,000 and $94,000 at October 31, 2017 and 2016, respectively.

Summary unaudited financial information for HAL’s operations and financial condition is as follows (in thousands):

	2017		2016		2015

Net Sales	$	15,800	$	13,948	$	12,852
Gross Profit		2,457		2,240		2,041
Operating Income		1,037		952		665
Net Income		1,320		1,323		1,546

Current Assets	$	11,310	$	10,238	$	10,262
Non-current Assets		4,440		3,733		3,087
Current Liabilities		3,916		2,572		3,472

CONTINGENCIES AND LITIGATION

12 Months Ended

Oct. 31, 2017

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 WARRANTIES

12 Months Ended

Oct. 31, 2017

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, 2017, we had 27 outstanding third party payment guarantees totaling approximately $1.0 million. The terms of these guarantees are consistent with the underlying customer financing terms. Upon shipment of a machine, the customer has 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):

	2017		2016		2015
Balance, beginning of year	$	1,523	$	2,186	$	2,048
Provision for warranties during the year		3,379		2,715		3,736
Charges to the accrual		(3,203)		(3,349)		(3,495)
Impact of foreign currency translation		73		(29)		(103)
Balance, end of year	$	1,772	$	1,523	$	2,186

The increase in our warranty reserve from fiscal 2016 to fiscal 2017 was primarily due to

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. The decrease in our warranty reserve in fiscal 2016 compared to fiscal 2015 was primarily due to

decrease in unit sales volume, as well as a reduction in average warranty cost per machine as our product mix of machines under warranty shifted to less complex machines. The fiscal 2016 reduction in warranty reserve was also attributable to reductions in warranty obligations assumed as part of the acquisition of Milltronics and Takumi, as actual claims were less than anticipated, resulting in adjustments to the provision for warranties during the year.

OPERATING LEASES

12 Months Ended

Oct. 31, 2017

Leases, Operating [Abstract]

OPERATING LEASES

12. OPERATING LEASES

We lease facilities, certain equipment and vehicles under operating leases that expire at various dates through 2024. Future payments required under operating leases as of October 31, 2017, are summarized as follows (in thousands):

2018	$	3,316
2019		2,077
2020		902
2021		706
2022 and thereafter		967
Total	$	7,968

Lease expense for the fiscal years ended October 31, 2017, 2016, and 2015 was $4.4 million, $4.5 million, and $3.8 million, respectively.

QUARTERLY FINANCIAL INFORMATION

12 Months Ended

Oct. 31, 2017

Quarterly Financial Information Disclosure [Abstract]

QUARTERLY FINANCIAL INFORMATION

13. QUARTERLY FINANCIAL INFORMATION (Unaudited)

	First			Second			Third			Fourth
2017 (In thousands, except per share data)	Quarter			Quarter			Quarter			Quarter
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

	First			Second			Third			Fourth
2016 (In thousands, except per share data)	Quarter			Quarter			Quarter			Quarter
Sales and service fees	$	56,503		$	52,029		$	52,403		$	66,354
Gross profit		17,698			16,610			16,135			19,997
Gross profit margin		31	%		32	%		31	%		30	%
Selling, general and administrative expenses		11,961			11,943			12,042			14,878
Operating income		5,737			4,667			4,093			5,119
Provision for income taxes		1,709			1,225			1,120			1,539
Net income		3,895			3,674			2,720			3,003
Income per common share – basic	$	0.59		$	0.56		$	0.41		$	0.45
Income per common share – diluted	$	0.58		$	0.56		$	0.40		$	0.45

SEGMENT INFORMATION

12 Months Ended

Oct. 31, 2017

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 support.

We sell our products through more than 193 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 2017, no distributor accounted for more than 5% of our sales and service fees. In fiscal 2017, 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,
	2017		2016		2015

Computerized Machine Tools *	$	209,311	$	195,618	$	189,712
Computer Control Systems and Software †		2,324		2,078		3,085
Service Parts		24,255		21,908		19,375
Service Fees		7,777		7,685		7,211
Total	$	243,667	$	227,289	$	219,383

*  
Amounts shown include sales of Milltronics and Takumi computerized machine tools to third parties since the respective dates of acquisitions.
†  
Amounts shown do not include computer control systems and software sold as an integrated component of computerized machine systems.

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,
	2017		2016		2015
United States of America	$	70,912	$	70,630	$	66,781
Canada		3,801		3,881		3,114
Central & South Americas		1,844		1,950		1,930
Total Americas		76,557		76,461		71,825

Germany		48,786		44,411		43,727
United Kingdom		28,019		25,313		30,235
Italy		13,416		12,947		11,768
France		13,917		13,787		13,162
Other Europe		27,583		27,150		26,598
Total Europe		131,721		123,608		125,490

Asia Pacific		32,694		25,633		20,265
Other Foreign		2,695		1,587		1,803
Total Europe, Asia Pacific and Other Foreign		167,110		150,828		147,558
	$	243,667	$	227,289	$	219,383

Long-lived tangible assets, net by geographic area, were (in thousands):

	As of October 31,
	2017		2016		2015
United States of America	$	7,599	$	7,846	$	8,658
Foreign countries		6,185		5,911		5,893
	$	13,784	$	13,757	$	14,551

Net assets by geographic area were (in thousands):

	As of October 31,
	2017		2016		2015
Americas	$	86,432	$	84,040	$	83,236
Europe		70,536		60,861		59,468
Asia Pacific		46,117		40,574		31,864
	$	203,085	$	185,475	$	174,568

NEW ACCOUNTING PRONOUNCEMENTS

12 Months Ended

Oct. 31, 2017

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

NEW ACCOUNTING PRONOUNCEMENTS

15. NEW ACCOUNTING PRONOUNCEMENTS

Recently Adopted Accounting Pronouncement:

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

fisc

2017 which required us to reflect any adjustments as of November 1, 201

, 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

net cumulative-effect adjustment of

$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 $

46,000

and $

239,000

of employee taxes paid for withheld shares under operating activities to financing activities for the years ended October 31, 2016 and 2015, respectively, on our consolidated statements of cash flows.

New Accounting Pronouncements:

In May 2014, the FASB issued 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. 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”). Between August 2015 and December 2016, the FASB issued five additional updates to Topic 606: 1) ASU No. 2015-14,

Deferral of the Effective Date

, 2) ASU No. 2016-08,

Principal versus Agent Considerations (Reporting Revenue Gross versus Net),

3) ASU No. 2016-10,

Identifying Performance Obligations and Licensing,

4) ASU No. 2016-12,

Narrow-Scope Improvements and Practical Expedients

and 5) ASU No. 2016-20,

Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers

to provide further guidance and clarification in accounting for revenue arising from contracts with customers. All these updates will be effective for our fiscal year 2019, including interim periods within the fiscal year. We have not yet determined the impact this new accounting standard may have on our consolidated financial statements. During the second and third quarters of fiscal 2017, we developed a project plan and timeline to complete an assessment of the potential impact that this accounting standard will have on our consolidated financial statements. During the third and fourth quarters of fiscal 2017, this assessment included training of our key personnel, sampling of our customer contracts and revenue stream evaluation. At this time, we expect to use the modified retrospective approach upon adoption. In fiscal 2018, we expect to implement and test any changes in policy, processes, systems and internal controls and to compute required transition adjustments and disclosures related to our implementation of this new accounting standard.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which establishes a comprehensive new lease accounting model. ASU 2016-02 clarifies the definition of a lease, requires a dual approach to lease classification similar to current lease classifications, and requires lessees to recognize leases on the balance sheet as a lease liability with a corresponding right-of-use asset for leases with a lease-term of more than twelve months. ASU 2016-02 is effective for our fiscal year 2020, including interim periods within the fiscal year, and requires modified retrospective application. Early adoption is permitted. We are assessing the impact this new accounting guidance will have on our consolidated financial statements.

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 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.

There have been no other significant changes in the Company’s critical accounting policies and estimates during the fiscal year ended October 31, 2017.

Schedule II - Valuation and Qualifying Accounts and Reserves

12 Months Ended

Oct. 31, 2017

Valuation and Qualifying Accounts [Abstract]

Schedule II - Valuation and Qualifying Accounts and Reserves

for the Years Ended October 31, 2017, 2016, and 2015

(Dollars in thousands)

Description	Balance at Beginning of Period		Charged to/ (Recovered from) Costs and Expenses		Charged to Other Accounts		Deductions			Balance at End of Period
Allowance for doubtful accounts for the year ended:

October 31, 2017	$	664	$	(123)	$	—	$	98	(1)	$	639

October 31, 2016	$	739	$	(15)	$	—	$	60	(1)	$	664

October 31, 2015	$	878	$	(13)	$	—	$	126	(1)	$	739

Income tax valuation allowance for the year ended:

October 31, 2017	$	2,067	$	515	$	—	$	300		$	2,282

October 31, 2016	$	1,485	$	587	$	—	$	5		$	2,067

October 31, 2015	$	1,225	$	402	$	—	$	142		$	1,485

(1)	Receivable write-offs.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Oct. 31, 2017

Accounting Policies [Abstract]

Consolidation

Statements of Cash Flows

Translation of Foreign Currencies

Hedging

Hedging.

Derivatives Designated as Hedging Instruments

Derivatives Not Designated as Hedging Instruments

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, 2017 and October 31, 2016, all derivative instruments were recorded at fair value on the balance sheets as follows (in thousands):

	2017			2016
	Balance Sheet	Fair		Balance Sheet	Fair
Derivatives	Location	Value		Location	Value

Designated as Hedging Instruments:
Foreign exchange forward contracts	Derivative assets	$	305	Derivative assets	$	1,721
Foreign exchange forward contracts	Derivative liabilities	$	1,508	Derivative liabilities	$	173

Not Designated as Hedging Instruments:
Foreign exchange forward contracts	Derivative assets	$	291	Derivative assets	$	4
Foreign exchange forward contracts	Derivative liabilities	$	224	Derivative liabilities	$	365

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

	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)
	2017		2016			2017		2016
Designated as Hedging Instruments:
(Effective Portion)

Foreign exchange forward contracts	$	(709)	$	1,431	Cost of sales and service	$	1,354	$	1,647
– Intercompany sales/purchases	$	(709)	$	1,431	Cost of sales and service	$	1,354	$	1,647

Foreign exchange forward contract	$	(96)	$	28
– Net Investment	$	(96)	$	28

	Location of Gain (Loss)	Amount of Gain (Loss)
Derivatives	Recognized in Operations	Recognized in Operations
		2017		2016
Not Designated as Hedging Instruments:
Foreign exchange forward contracts	Other expense, net	$	(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, 2017 and 2016 (in thousands):

	Foreign		Cash
	Currency		Flow
	Translation		Hedges		Total
Balance, October 31, 2015	$	(10,884)	$	1,498	$	(9,386)
Other comprehensive income (loss) before reclassifications		(1,441)		1,431		(10)
Reclassifications		—		(1,647)		(1,647)
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)

Inventories

Property and Equipment

. Property and equipment are carried 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

Revenue Recognition

Revenue Recognition.

Service fees from maintenance contracts are deferred and recognized in earnings on a pro rata basis over the term of the contract, and are generally sold on a stand-alone basis.

Allowance for Doubtful Accounts

Product Warranty

Research and Development Costs

Research and Development Costs.

Software Development Costs

Software Development Costs.

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
2018		1,425
2019		1,250
2020		1,200
2021		1,075
2022		975

Goodwill and Intangible Assets

Goodwill and Intangible Assets.

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	13 years	$	245	$	(81)	$	164
Tradenames and trademarks	indefinite		60		-		60
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

As of October 31, 2016, 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	13 years	$	231	$	(59)	$	172
Tradenames and trademarks	indefinite		60		—		60
Customer relationships	15 years		254		(114)		140
Technology	13 years		672		(172)		500
Patents	6 years		2,972		(2,741)		231
Other	8 years		373		(326)		47
Total		$	4,562	$	(3,412)	$	1,150

Impairment of Long-Lived Assets

Impairment of Long-Lived Assets.

Earnings Per Share

Earnings Per Share.

The following table presents a reconciliation of our basic and diluted earnings per share computation:

	Fiscal Year Ended October 31,
	2017				2016				2015
(in thousands, except per share amounts)	Basic		Diluted		Basic		Diluted		Basic		Diluted
Net income	$	15,115	$	15,115	$	13,292	$	13,292	$	16,214	$	16,214
Undistributed earnings allocated to participating shares		(100)		(100)		(76)		(76)		(93)		(93)
Net income applicable to common shareholders	$	15,015	$	15,015	$	13,216	$	13,216	$	16,121	$	16,121
Weighted average shares outstanding		6,615		6,615		6,569		6,569		6,543		6,543
Stock options and contingently issuable securities		-		65		-		73		-		59
		6,615		6,680		6,569		6,642		6,543		6,602
Income per share	$	2.27	$	2.25	$	2.01	$	1.99	$	2.46	$	2.44

Income Taxes

Income Taxes.

Stock Compensation

Stock Compensation.

Estimates

Estimates.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Oct. 31, 2017

Accounting Policies [Abstract]

Schedule of Fair Value of Derivative Instruments

	2017			2016
	Balance Sheet	Fair		Balance Sheet	Fair
Derivatives	Location	Value		Location	Value

Designated as Hedging Instruments:
Foreign exchange forward contracts	Derivative assets	$	305	Derivative assets	$	1,721
Foreign exchange forward contracts	Derivative liabilities	$	1,508	Derivative liabilities	$	173

Not Designated as Hedging Instruments:
Foreign exchange forward contracts	Derivative assets	$	291	Derivative assets	$	4
Foreign exchange forward contracts	Derivative liabilities	$	224	Derivative liabilities	$	365

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

	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)
	2017		2016			2017		2016
Designated as Hedging Instruments:
(Effective Portion)

Foreign exchange forward contracts	$	(709)	$	1,431	Cost of sales and service	$	1,354	$	1,647
– Intercompany sales/purchases	$	(709)	$	1,431	Cost of sales and service	$	1,354	$	1,647

Foreign exchange forward contract	$	(96)	$	28
– Net Investment	$	(96)	$	28

	Location of Gain (Loss)	Amount of Gain (Loss)
Derivatives	Recognized in Operations	Recognized in Operations
		2017		2016
Not Designated as Hedging Instruments:
Foreign exchange forward contracts	Other expense, net	$	(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, 2017 and 2016 (in thousands):

	Foreign		Cash
	Currency		Flow
	Translation		Hedges		Total
Balance, October 31, 2015	$	(10,884)	$	1,498	$	(9,386)
Other comprehensive income (loss) before reclassifications		(1,441)		1,431		(10)
Reclassifications		—		(1,647)		(1,647)
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)

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
2018		1,425
2019		1,250
2020		1,200
2021		1,075
2022		975

Schedule of Intangible Assets

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	13 years	$	245	$	(81)	$	164
Tradenames and trademarks	indefinite		60		-		60
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

As of October 31, 2016, 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	13 years	$	231	$	(59)	$	172
Tradenames and trademarks	indefinite		60		—		60
Customer relationships	15 years		254		(114)		140
Technology	13 years		672		(172)		500
Patents	6 years		2,972		(2,741)		231
Other	8 years		373		(326)		47
Total		$	4,562	$	(3,412)	$	1,150

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,
	2017				2016				2015
(in thousands, except per share amounts)	Basic		Diluted		Basic		Diluted		Basic		Diluted
Net income	$	15,115	$	15,115	$	13,292	$	13,292	$	16,214	$	16,214
Undistributed earnings allocated to participating shares		(100)		(100)		(76)		(76)		(93)		(93)
Net income applicable to common shareholders	$	15,015	$	15,015	$	13,216	$	13,216	$	16,121	$	16,121
Weighted average shares outstanding		6,615		6,615		6,569		6,569		6,543		6,543
Stock options and contingently issuable securities		-		65		-		73		-		59
		6,615		6,680		6,569		6,642		6,543		6,602
Income per share	$	2.27	$	2.25	$	2.01	$	1.99	$	2.46	$	2.44

INVENTORIES (Tables)

12 Months Ended

Oct. 31, 2017

Inventory Disclosure [Abstract]

Schedule of Inventories

Inventories as of October 31, 2017 and 2016 are summarized below (in thousands):

	2017		2016
Purchased parts and sub-assemblies	$	33,045	$	25,661
Work-in-process		20,008		17,724
Finished goods		66,895		73,640
	$	119,948	$	117,025

FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Oct. 31, 2017

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Fair Value

	Assets				Liabilities
	October 31,		October 31,		October 31,		October 31,
	2017		2016		2017		2016
Level 1
Deferred compensation	$	1,638	$	1,363	$	—	$	—
Level 2
Derivatives	$	596	$	1,725	$	1,732	$	538

INCOME TAXES (Tables)

12 Months Ended

Oct. 31, 2017

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,
	2017		2016		2015
Current:
U.S. taxes	$	308	$	1,362	$	4,600
Foreign taxes		4,185		4,456		3,752
		4,493		5,818		8,352
Deferred:
U.S. taxes		1,236		(176)		(896)
Foreign taxes		(128)		(49)		(117)
		1,108		(225)		(1,013)
	$	5,601	$	5,593	$	7,339

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,
	2017			2016			2015
Income before income taxes:
Domestic	$	5,477		$	2,703		$	10,806
Foreign		15,239			16,182			12,747
Earnings (Loss) before taxes on income	$	20,716		$	18,885		$	23,553
Tax rates:
U.S. statutory rate		34	%		34	%		35	%
Effect of tax rate of international jurisdictions different than U.S. statutory rates		(5	%)		(7	%)		(5	%)
Valuation allowance.		1	%		3	%		1	%
State taxes		0	%		0	%		1	%
Tax Credits		(3	%)		(2	%)		(1	%)
Effect of Tax Rate Changes		0	%		4	%		0	%
Other		0	%		(2	%)		0	%
Effective tax rate		27	%		30	%		31	%

Schedule of Deferred Tax Assets and Liabilities

Significant components of our deferred tax assets and liabilities at October 31, 2017 and 2016 were as follows (in thousands):

	October 31,
	2017		2016
Deferred Tax Assets:
Accrued inventory reserves	$	1,965	$	1,824
Accrued warranty expenses		438		312
Compensation related expenses		2,952		2,664
Net derivative instruments		417		—
Unrealized exchange gain/loss		—		370
Other accrued expenses		187		194
Net operating loss carryforwards		1,722		1,616
Other credit carryforwards		517		474
Other		404		331
		8,602		7,785
Less: Valuation allowance - net operating loss and other credit carryforwards		(2,282)		(2,067)
Deferred tax assets		6,320		5,718

Deferred Tax Liabilities:
Net derivative instruments		—		(701)
Property and equipment and capitalized software development costs		(3,241)		(2,717)
Unrealized exchange gain/loss		(116)		—
Other		(624)		(456)

Net deferred tax assets	$	2,339	$	1,844

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):

	2017		2016		2015
Balance, beginning of year	$	1,102	$	1,034	$	1,196
Additions based on tax positions related to the current year		37		52		17
Additions (reductions) related to prior year tax positions		(20)		19		(51)
Reductions due to statute expiration		(74)		—		—
Other		56		(3)		(128)

Balance, end of year	$	1,101	$	1,102	$	1,034

Summary of open tax years by major jurisdiction

A summary of open tax years by major jurisdiction is presented below:

United States federal	Fiscal 2014 through the current period
Germany¹	Fiscal 2013 through the current period
Taiwan	Fiscal 2014 through the current period

¹ Includes federal as well as state, provincial or similar local jurisdictions, as applicable.

STOCK-BASED COMPENSATION (Tables)

12 Months Ended

Oct. 31, 2017

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, 2017, 2016 and 2015 and the related activity for the year is as follows:

	Shares Under		Weighted Average Grant
	Option		Date Fair Value
Balance October 31, 2014		128,189	$	20.45
Granted		—		—
Cancelled		(5,000)	$	35.83
Expired		—		—
Exercised		(15,300)	$	16.81
Balance October 31, 2015		107,889	$	20.25
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

Schedule of Stock Options Outstanding and Exercisable

Stock options outstanding and exercisable on October 31, 2017,

were

as follows:

				Weighted Average		Weighted Average
Range of Exercise		Shares Under		Exercise Price Per		Remaining Contractual
Prices Per Share		Option		Share		Life in Years
Outstanding
$	14.82		11,000	$	14.82		2.1
	14.88		4,200		14.88		1.5
	18.13		12,000		18.13		2.5
	21.45		30,012		21.45		4.1
	23.30		16,513		23.30		5.1
	35.83		5,000		35.83		0.6
$	14.82 – 35.83		78,725	$	20.25		3.4
Exercisable
$	14.82		11,000	$	14.82		2.1
	14.88		4,200		14.88		1.5
	18.13		12,000		18.13		2.5
	21.45		30,012		21.45		4.1
	23.30		16,513		23.30		5.1
	35.83		5,000		35.83		0.6
$	14.82 – 35.83		78,725	$	20.25		3.4

Schedule of Restricted Stock Activity

A reconciliation of the Company’s restricted stock activity and related information is as follows:

	Number		Weighted Average Grant
	of Shares		Date 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 October 31, 2017		157,809	$	32.05

RELATED PARTY TRANSACTIONS (Tables)

12 Months Ended

Oct. 31, 2017

Schedule of Financial Information

Summary unaudited financial information for HAL’s operations and financial condition is as follows (in thousands):

	2017		2016		2015

Net Sales	$	15,800	$	13,948	$	12,852
Gross Profit		2,457		2,240		2,041
Operating Income		1,037		952		665
Net Income		1,320		1,323		1,546

Current Assets	$	11,310	$	10,238	$	10,262
Non-current Assets		4,440		3,733		3,087
Current Liabilities		3,916		2,572		3,472

GUARANTEES AND PRODUCT WARRANTIES (Tables)

12 Months Ended

Oct. 31, 2017

Standard Product Warranty Disclosure [Abstract]

Reconciliation of Warranty Reserve

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

	2017		2016		2015
Balance, beginning of year	$	1,523	$	2,186	$	2,048
Provision for warranties during the year		3,379		2,715		3,736
Charges to the accrual		(3,203)		(3,349)		(3,495)
Impact of foreign currency translation		73		(29)		(103)
Balance, end of year	$	1,772	$	1,523	$	2,186

OPERATING LEASES (Tables)

12 Months Ended

Oct. 31, 2017

Leases, Operating [Abstract]

Schedule of Future Minimum Payments under Operating Leases

2018	$	3,316
2019		2,077
2020		902
2021		706
2022 and thereafter		967
Total	$	7,968

QUARTERLY FINANCIAL INFORMATION (Tables)

12 Months Ended

Oct. 31, 2017

Quarterly Financial Information Disclosure [Abstract]

Schedule of Selected Quarterly Financial Information

	First			Second			Third			Fourth
2017 (In thousands, except per share data)	Quarter			Quarter			Quarter			Quarter
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

	First			Second			Third			Fourth
2016 (In thousands, except per share data)	Quarter			Quarter			Quarter			Quarter
Sales and service fees	$	56,503		$	52,029		$	52,403		$	66,354
Gross profit		17,698			16,610			16,135			19,997
Gross profit margin		31	%		32	%		31	%		30	%
Selling, general and administrative expenses		11,961			11,943			12,042			14,878
Operating income		5,737			4,667			4,093			5,119
Provision for income taxes		1,709			1,225			1,120			1,539
Net income		3,895			3,674			2,720			3,003
Income per common share – basic	$	0.59		$	0.56		$	0.41		$	0.45
Income per common share – diluted	$	0.58		$	0.56		$	0.40		$	0.45

SEGMENT INFORMATION (Tables)

12 Months Ended

Oct. 31, 2017

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,
	2017		2016		2015

Computerized Machine Tools *	$	209,311	$	195,618	$	189,712
Computer Control Systems and Software †		2,324		2,078		3,085
Service Parts		24,255		21,908		19,375
Service Fees		7,777		7,685		7,211
Total	$	243,667	$	227,289	$	219,383

*  
Amounts shown include sales of Milltronics and Takumi computerized machine tools to third parties since the respective dates of acquisitions.
†  
Amounts shown do not include computer control systems and software sold as an integrated component of computerized machine systems.

Schedule of Revenues by Geographic Area

The following table sets forth revenues by geographic area, based on customer location, for each of the past three fiscal years (in thousands):

Revenues by Geographic Area

	Year Ended October 31,
	2017		2016		2015
United States of America	$	70,912	$	70,630	$	66,781
Canada		3,801		3,881		3,114
Central & South Americas		1,844		1,950		1,930
Total Americas		76,557		76,461		71,825

Germany		48,786		44,411		43,727
United Kingdom		28,019		25,313		30,235
Italy		13,416		12,947		11,768
France		13,917		13,787		13,162
Other Europe		27,583		27,150		26,598
Total Europe		131,721		123,608		125,490

Asia Pacific		32,694		25,633		20,265
Other Foreign		2,695		1,587		1,803
Total Europe, Asia Pacific and Other Foreign		167,110		150,828		147,558
	$	243,667	$	227,289	$	219,383

Schedule of Assets by Geographic Area

Long-lived tangible assets, net by geographic area, were (in thousands):

	As of October 31,
	2017		2016		2015
United States of America	$	7,599	$	7,846	$	8,658
Foreign countries		6,185		5,911		5,893
	$	13,784	$	13,757	$	14,551

Net assets by geographic area were (in thousands):

	As of October 31,
	2017		2016		2015
Americas	$	86,432	$	84,040	$	83,236
Europe		70,536		60,861		59,468
Asia Pacific		46,117		40,574		31,864
	$	203,085	$	185,475	$	174,568

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Fair Value of Derivative Instruments) (Details) - USD ($) $ in Thousands	Oct. 31, 2017	Oct. 31, 2016
Derivatives, Fair Value [Line Items]
Derivative assets	$ 596	$ 1,725
Derivative liabilities	1,732	538
Foreign Exchange Forward [Member] \| Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Derivative assets	305	1,721
Derivative liabilities	1,508	173
Foreign Exchange Forward [Member] \| Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Derivative assets	291	4
Derivative liabilities	$ 224	$ 365

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Effect of Derivative Instruments on Consolidated Balance Sheets, Statements of Changes in Shareholders' Equity and Statements of Operations) (Details) - Foreign Exchange Forward [Member] - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2017	Oct. 31, 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)	$ (709)	$ 1,431
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)	1,354	1,647
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)	(96)	28
Not Designated as Hedging Instrument [Member] \| Other Income And Expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Operations	$ (1,001)	$ 536

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Changes in Components of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2015
Derivative [Line Items]
Beginning Balance	$ (11,043)	$ (9,386)
Other comprehensive income (loss) before reclassifications	4,207	(10)
Reclassifications	(1,354)	(1,647)	$ (784)
Ending Balance	(8,190)	(11,043)	(9,386)
Foreign Currency Translation [Member]
Derivative [Line Items]
Beginning Balance	(12,325)	(10,884)
Other comprehensive income (loss) before reclassifications	4,916	(1,441)
Reclassifications	0	0
Ending Balance	(7,409)	(12,325)	(10,884)
Cash Flow Hedges [Member]
Derivative [Line Items]
Beginning Balance	1,282	1,498
Other comprehensive income (loss) before reclassifications	(709)	1,431
Reclassifications	(1,354)	(1,647)
Ending Balance	$ (781)	$ 1,282	$ 1,498

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Estimated Useful Lives) (Details)	12 Months Ended
	Oct. 31, 2017
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 ACCOUNTING POLICIES (Schedule of Estimated Amortization Expense) (Details) $ in Thousands	Oct. 31, 2017 USD ($)
Finite-Lived Intangible Assets [Line Items]
2018	$ 1,425
2019	1,250
2020	1,200
2021	1,075
2022	$ 975

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Intangible Assets) (Details) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2017	Oct. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Gross Intangible Assets	$ 4,626	$ 4,562
Accumulated Amortization	(3,550)	(3,412)
Net Intangible Assets	1,076	1,150
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Intangible Assets	257	254
Accumulated Amortization	(132)	(114)
Net Intangible Assets	$ 125	$ 140
Weighted Average Amortization Period	15 years	15 years
Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Intangible Assets	$ 713	$ 672
Accumulated Amortization	(239)	(172)
Net Intangible Assets	$ 474	$ 500
Weighted Average Amortization Period	13 years	13 years
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Intangible Assets	$ 2,973	$ 2,972
Accumulated Amortization	(2,765)	(2,741)
Net Intangible Assets	$ 208	$ 231
Weighted Average Amortization Period	6 years	6 years
Other [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Intangible Assets	$ 378	$ 373
Accumulated Amortization	(333)	(326)
Net Intangible Assets	$ 45	$ 47
Weighted Average Amortization Period	8 years	8 years
Tradenames and trademarks [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Intangible Assets	$ 245	$ 231
Accumulated Amortization	(81)	(59)
Net Intangible Assets	164	172
Indefinite tradenames and trademarks	$ 60	$ 60
Weighted Average Amortization Period	13 years	13 years

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, 2017	Jul. 31, 2017	Apr. 30, 2017	Jan. 31, 2017	Oct. 31, 2016	Jul. 31, 2016	Apr. 30, 2016	Jan. 31, 2016	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2015
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income	$ 6,702	$ 3,888	$ 3,646	$ 879	$ 3,003	$ 2,720	$ 3,674	$ 3,895	$ 15,115	$ 13,292	$ 16,214
Undistributed earnings allocated to participating shares - Basic									(100)	(76)	(93)
Undistributed earnings allocated to participating shares - Diluted									(100)	(76)	(93)
Net income applicable to common shareholders - Basic									15,015	13,216	16,121
Net income applicable to common shareholders - Diluted									$ 15,015	$ 13,216	$ 16,121
Weighted average shares outstanding - Basic									6,615	6,569	6,543
Weighted average shares outstanding -Diluted									6,680	6,642	6,602
Stock options and contingently issuable securities									65	73	59
Income per share -Basic	$ 1.01	$ 0.58	$ 0.55	$ 0.13	$ 0.45	$ 0.41	$ 0.56	$ 0.59	$ 2.27	$ 2.01	$ 2.46
Income per share - Diluted	$ 1.00	$ 0.58	$ 0.54	$ 0.13	$ 0.45	$ 0.4	$ 0.56	$ 0.58	$ 2.25	$ 1.99	$ 2.44

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) € in Millions	12 Months Ended
	Oct. 31, 2017 USD ($)	Oct. 31, 2016 USD ($)	Oct. 31, 2015 USD ($)	Nov. 30, 2016 EUR (€)
Translation of Foreign Currencies
Cumulative foreign currency translation adjustments	$ 7,400,000
Derivative financial instruments:
Notional principal of foreign exchange contracts	134,300,000	$ 125,600,000
(Losses) gains, net of tax, related to cash flow hedges deferred in Accumulated Other Comprehensive Loss	(790,000)
Unrealized gain (loss), net of tax, to be reclassified in next 12 months	(636,000)
Gain (loss) on hedge ineffectiveness	18,000	18,000
Property and Equipment
Depreciation and amortization expense	2,500,000	2,500,000	$ 2,200,000
Research and Development Costs
Research and development expenses	4,200,000	4,900,000	3,900,000
Software Development Costs
Capitalized costs	2,300,000	2,200,000	1,400,000
Accumulated amortization	17,400,000	16,500,000
Capitalized Computer Software, Amortization	1,000,000	1,200,000	1,000,000
Goodwill and Intangible Assets
Intangible assets amortization expense	136,000	137,000	$ 207,000
Expected future amortization expense, 2018	120,000
Expected future amortization expense, 2019	120,000
Expected future amortization expense, 2020	120,000
Expected future amortization expense, 2021	120,000
Expected future amortization expense, 2022	120,000
Undistributed Earnings of Foreign Subsidiaries	92,900,000
Forward Contracts [Member] \| Designated as Hedging Instrument [Member]
Derivative financial instruments:
Notional principal of foreign exchange contracts \| €				€ 3.0
Realized gain on net investment hedge	809,000
Unrealized gain (loss), net of tax, recorded as cumulative translation adjustments in Accumulated Other Comprehensive Loss	$ (140,000)
Derivative maturity date	November 2017 through October 2018
Forward Contracts [Member] \| Not Designated as Hedging Instrument [Member]
Derivative financial instruments:
Derivative maturity date	November 2017 through October 2018
Euros [Member] \| Designated as Hedging Instrument [Member]
Derivative financial instruments:
Notional principal of foreign exchange contracts	$ 31,600,000
Pounds Sterling [Member] \| Designated as Hedging Instrument [Member]
Derivative financial instruments:
Notional principal of foreign exchange contracts	8,500,000
New Taiwan Dollars [Member] \| Designated as Hedging Instrument [Member]
Derivative financial instruments:
Notional principal of foreign exchange contracts	31,200,000
New Taiwan Dollars [Member] \| Not Designated as Hedging Instrument [Member]
Derivative financial instruments:
Notional principal of foreign exchange contracts	32,600,000
Forward Contracts Denominated In Euros Pounds Sterling and South African Rand [Member] \| Not Designated as Hedging Instrument [Member]
Derivative financial instruments:
Notional principal of foreign exchange contracts	$ 28,100,000
Hurco Automation Ltd [Member]
Consolidation
Ownership interest	35.00%
Equity investment in affiliate	$ 3,600,000	$ 3,600,000

INVENTORIES (Schedule Of Inventory Current) (Details) - USD ($) $ in Thousands	Oct. 31, 2017	Oct. 31, 2016
Inventory [Line Items]
Purchased parts and sub-assemblies	$ 33,045	$ 25,661
Work-in-process	20,008	17,724
Finished goods	66,895	73,640
Inventories	$ 119,948	$ 117,025

INVENTORIES (Narrative) (Details) - USD ($) $ in Millions	Oct. 31, 2017	Oct. 31, 2016
Inventory [Line Items]
Finished goods inventory consigned to distributors and agents	$ 12.1	$ 11.6

CREDIT AGREEMENTS AND BORROWINGS (Narrative) (Details) € in Millions, ¥ in Millions, £ in Millions, $ in Millions			1 Months Ended	12 Months Ended
	Dec. 06, 2016 USD ($)	Dec. 07, 2012 USD ($)	Feb. 16, 2017 USD ($)	Oct. 31, 2017 USD ($)	Oct. 31, 2017 EUR (€)	Oct. 31, 2017 GBP (£)	Feb. 16, 2017 CNY (¥)	Feb. 15, 2017 CNY (¥)	Dec. 05, 2016 USD ($)	Oct. 31, 2016 USD ($)
Line of Credit Facility [Line Items]
Borrowings available under credit facility				$ 19.6
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			$ 3.0				¥ 20.0	¥ 40.0
Line of credit, maturity date			Feb. 15, 2018
Line of credit amount outstanding				$ 1.5						$ 1.5
Interest rate				4.40%	4.40%	4.40%				4.60%

FINANCIAL INSTRUMENTS (Fair value hierarchy) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	Oct. 31, 2017	Oct. 31, 2016
Level 1 [Member]
Assets
Deferred Compensation	$ 1,638	$ 1,363
Liabilities
Deferred Compensation	0	0
Level 2 [Member]
Assets
Derivatives	596	1,725
Liabilities
Derivatives	$ 1,732	$ 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 + Details

FINANCIAL INSTRUMENTS (Narrative) (Details) - USD ($)	Oct. 31, 2017	Oct. 31, 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notional amount of contracts	$ 134,300,000	$ 125,600,000

INCOME TAXES (Schedule of Provision for Income Taxes) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Oct. 31, 2017	Jul. 31, 2017	Apr. 30, 2017	Jan. 31, 2017	Oct. 31, 2016	Jul. 31, 2016	Apr. 30, 2016	Jan. 31, 2016	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2015
Current:
U.S. taxes									$ 308	$ 1,362	$ 4,600
Foreign taxes									4,185	4,456	3,752
Current provision for income taxes									4,493	5,818	8,352
Deferred:
U.S. taxes									1,236	(176)	(896)
Foreign taxes									(128)	(49)	(117)
Deferred provision for income taxes									1,108	(225)	(1,013)
Provision for income taxes	$ 2,238	$ 1,353	$ 1,467	$ 543	$ 1,539	$ 1,120	$ 1,225	$ 1,709	$ 5,601	$ 5,593	$ 7,339

INCOME TAXES (Schedule of Comparison of Income Tax Expense) (Details) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2015
Income before income taxes:
Domestic	$ 5,477	$ 2,703	$ 10,806
Foreign	15,239	16,182	12,747
Earnings (Loss) before taxes on income	$ 20,716	$ 18,885	$ 23,553
Tax rates:
U.S. statutory rate	34.00%	34.00%	35.00%
Effect of tax rate of international jurisdictions different than U.S. statutory rates	(5.00%)	(7.00%)	(5.00%)
Valuation allowance.	1.00%	3.00%	1.00%
State taxes	0.00%	0.00%	1.00%
Tax Credits	(3.00%)	(2.00%)	(1.00%)
Effect of Tax Rate Changes	0.00%	4.00%	0.00%
Other	0.00%	(2.00%)	0.00%
Effective tax rate	27.00%	30.00%	31.00%

INCOME TAXES (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands	Oct. 31, 2017	Oct. 31, 2016
Deferred Tax Assets:
Accrued inventory reserves	$ 1,965	$ 1,824
Accrued warranty expenses	438	312
Compensation related expenses	2,952	2,664
Net derivative instruments	417	0
Unrealized exchange gain/loss	0	370
Other accrued expenses	187	194
Net operating loss carryforwards	1,722	1,616
Other credit carryforwards	517	474
Other	404	331
Deferred tax assets, gross	8,602	7,785
Less: Valuation allowance - net operating loss and other credit carryforwards	(2,282)	(2,067)
Deferred tax assets	6,320	5,718
Deferred Tax Liabilities:
Net derivative instruments	0	(701)
Property and equipment and capitalized software development costs	(3,241)	(2,717)
Unrealized exchange gain/loss	(116)	0
Other	(624)	(456)
Net deferred tax assets	$ 2,339	$ 1,844

INCOME TAXES (Schedule of Income Tax Expense) (Details) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2015
Balance, beginning of year	$ 1,102	$ 1,034	$ 1,196
Additions based on tax positions related to the current year	37	52	17
Additions (reductions) related to prior year tax positions	(20)	19	(51)
Reductions due to statute expiration	(74)	0	0
Other	56	(3)	(128)
Balance, end of year	$ 1,101	$ 1,102	$ 1,034

INCOME TAXES (Summary of Open Tax Years) (Details)

12 Months Ended

Oct. 31, 2017

United States federal [Member]

Income Tax Contingency [Line Items]

Open tax years

Fiscal 2014 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 2014 through the current period

[1]	Includes federal as well as state, provincial or similar local jurisdictions, as applicable.

INCOME TAXES (Narrative) (Details) - USD ($)	12 Months Ended
INCOME TAXES (Narrative) (Details) - USD ($)	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2015
Income Tax Contingency [Line Items]
Undistributed Earnings of Foreign Subsidiaries		$ 92,900,000
Operating Loss Carryforwards, Valuation Allowance		2,282,000	$ 2,067,000
Deferred Tax Assets, Operating Loss Carryforwards, Total		1,722,000	1,616,000
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration		$ 8,100,000
Unrecognized Tax Benefits Expiration Term		expire between July 2018 and July 2020
Unrecognized tax benefits, interest accrued		$ 65,000
Deferred Tax Assets for Research and Development Tax Credits		500,000
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations		74,000	$ 0	$ 0
Scenario, Forecast [Member]
Income Tax Contingency [Line Items]
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations	$ 1,000,000
Expirations Within Five Years [Member]
Income Tax Contingency [Line Items]
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration		$ 6,700,000
Operating Loss Carryforwards Expiration Term Maximum		5 years
Expirations After Six Years [Member]
Income Tax Contingency [Line Items]
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration		$ 1,400,000
Operating Loss Carryforwards Expiration Term Minimum		5 years
Operating Loss Carryforwards Expiration Term Maximum		20 years
Tax Credits [Member]
Income Tax Contingency [Line Items]
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration		$ 784,000
Tax Credits Expiration Term		expire between years 2022 and 2027

EMPLOYEE BENEFITS (Narrative) (Details) - USD ($)	12 Months Ended
EMPLOYEE BENEFITS (Narrative) (Details) - USD ($)	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2015
Contributions to defined contribution plans	$ 1,100,000	$ 1,100,000	$ 933,000

STOCK-BASED COMPENSATION (Summary of Stock Option Activity and Related Information) (Details) - $ / shares	12 Months Ended
	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2015
Shares Under Option
Outstanding	107,889	107,889	128,189
Options granted	0	0	0
Options cancelled	0	0	(5,000)
Options Expired	0	0	0
Options exercised	(29,164)	0	(15,300)
Outstanding	78,725	107,889	107,889
Weighted Average Exercise Price
Outstanding	$ 20.25	$ 20.25	$ 20.45
Options granted	0	0	0
Options cancelled	0	0	35.83
Options Expired	0	0	0
Options exercised	18.31	0	16.81
Outstanding	$ 20.97	$ 20.25	$ 20.25

STOCK-BASED COMPENSATION (Schedule of Options Outstanding and Exercisable) (Details)	12 Months Ended
	Oct. 31, 2017 $ / shares shares
Outstanding
Shares Under Option \| shares	78,725
Weighted Average Exercise Price Per Share \| $ / shares	$ 20.25
Weighted Average Remaining Contractual Life in Years	3 years 4 months 24 days
Exercisable
Shares Under Option \| shares	78,725
Weighted Average Exercise Price Per Share \| $ / shares	$ 20.25
Weighted Average Remaining Contractual Life in Years	3 years 4 months 24 days
$ 14.82 [Member]
Outstanding
Shares Under Option \| shares	11,000
Weighted Average Exercise Price Per Share \| $ / shares	$ 14.82
Weighted Average Remaining Contractual Life in Years	2 years 1 month 6 days
Exercisable
Shares Under Option \| shares	11,000
Weighted Average Exercise Price Per Share \| $ / shares	$ 14.82
Weighted Average Remaining Contractual Life in Years	2 years 1 month 6 days
$ 14.88 [Member]
Outstanding
Shares Under Option \| shares	4,200
Weighted Average Exercise Price Per Share \| $ / shares	$ 14.88
Weighted Average Remaining Contractual Life in Years	1 year 6 months
Exercisable
Shares Under Option \| shares	4,200
Weighted Average Exercise Price Per Share \| $ / shares	$ 14.88
Weighted Average Remaining Contractual Life in Years	1 year 6 months
$ 18.13 [Member]
Outstanding
Shares Under Option \| shares	12,000
Weighted Average Exercise Price Per Share \| $ / shares	$ 18.13
Weighted Average Remaining Contractual Life in Years	2 years 6 months
Exercisable
Shares Under Option \| shares	12,000
Weighted Average Exercise Price Per Share \| $ / shares	$ 18.13
Weighted Average Remaining Contractual Life in Years	2 years 6 months
$ 21.45 [Member]
Outstanding
Shares Under Option \| shares	30,012
Weighted Average Exercise Price Per Share \| $ / shares	$ 21.45
Weighted Average Remaining Contractual Life in Years	4 years 1 month 6 days
Exercisable
Shares Under Option \| shares	30,012
Weighted Average Exercise Price Per Share \| $ / shares	$ 21.45
Weighted Average Remaining Contractual Life in Years	4 years 1 month 6 days
$ 23.30 [Member]
Outstanding
Shares Under Option \| shares	16,513
Weighted Average Exercise Price Per Share \| $ / shares	$ 23.30
Weighted Average Remaining Contractual Life in Years	5 years 1 month 6 days
Exercisable
Shares Under Option \| shares	16,513
Weighted Average Exercise Price Per Share \| $ / shares	$ 23.30
Weighted Average Remaining Contractual Life in Years	5 years 1 month 6 days
$ 35.83 [Member]
Outstanding
Shares Under Option \| shares	5,000
Weighted Average Exercise Price Per Share \| $ / shares	$ 35.83
Weighted Average Remaining Contractual Life in Years	7 months 6 days
Exercisable
Shares Under Option \| shares	5,000
Weighted Average Exercise Price Per Share \| $ / shares	$ 35.83
Weighted Average Remaining Contractual Life in Years	7 months 6 days

STOCK-BASED COMPENSATION (Reconciliation of Restricted Stock Activity and Related Information) (Details)	12 Months Ended
	Oct. 31, 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 October 31, 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 October 31, 2017 \| $ / shares	$ 32.05

STOCK-BASED COMPENSATION (Narrative) (Details) - USD ($)							12 Months Ended
	Mar. 09, 2017	Jan. 05, 2017	Mar. 10, 2016	Jan. 04, 2016	Mar. 12, 2015	Jan. 06, 2015	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized Stock-based compensation expense							$ 2,100,000
Shares or units granted							71,011
Grant date fair value of restricted stock							$ 32.05	$ 28.79
Total intrinsic value of stock options exercised							$ 771,000	$ 0	$ 154,000
Total intrinsic value of outstanding stock options vested and expected to vest and intrinsic value of options outstanding and exercisable							1,800,000
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]
Stock-based compensation expense									$ 1,200,000
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							$ 1,700,000	$ 1,600,000
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%		25.00%
Time Based [Member] \| 2016 Equity Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares or units granted	14,920	14,747	9,170
Grant date fair value of restricted stock	$ 26.80	$ 33.90	$ 30.52
Vesting period	1 year	3 years	1 year
Time Based [Member] \| 2008 Equity Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares or units granted				17,684	9,086	11,174
Grant date fair value of restricted stock				$ 26.04	$ 30.80	$ 32.22
Vesting period				3 years	1 year	3 years
Performance Based [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares or units granted		30,683
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		18,496
Grant date fair value of restricted stock		$ 43.25
Vesting period		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		16,740
Grant date fair value of restricted stock				$ 30.67		$ 34.41
Vesting period				3 years		3 years
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%		50.00%
Performance Based [Member] \| Performance Shares ROIC [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares or units granted		20,647		24,759		15,643
Grant date fair value of restricted stock		$ 33.90		$ 26.04
Vesting period		3 years		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 (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, 2017	Oct. 31, 2016	Oct. 31, 2015
Related Party Transaction [Line Items]
Net Sales	$ 15,800	$ 13,948	$ 12,852
Gross Profit	2,457	2,240	2,041
Operating Income	1,037	952	665
Net Income	1,320	1,323	1,546
Current Assets	11,310	10,238	10,262
Non-current Assets	4,440	3,733	3,087
Current Liabilities	$ 3,916	$ 2,572	$ 3,472

RELATED PARTY TRANSACTIONS (Narrative) (Details) - USD ($)	12 Months Ended
	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2015
Related Party Transaction [Line Items]
Accounts Payable, Related Parties, Current	$ 2,511,000	$ 1,990,000
Hurco Automation Ltd [Member]
Related Party Transaction [Line Items]
Equity Method Investment, Ownership Percentage	35.00%
Equity Method Investments	$ 3,600,000	3,600,000
Related Party Transaction, Purchases from Related Party	10,000,000	9,900,000	$ 8,900,000
Revenue from Related Parties	139,000	623,000	$ 723,000
Accounts Payable, Related Parties, Current	2,500,000	2,000,000
Accounts Receivable, Related Parties, Current	$ 30,000	$ 94,000

GUARANTEES AND PRODUCT WARRANTIES (Reconciliation of the changes in our warranty reserve) (Details) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2015
Product Warranty Liability [Line Items]
Balance, beginning of year	$ 1,523	$ 2,186	$ 2,048
Provision for warranties during the year	3,379	2,715	3,736
Charges to the accrual	(3,203)	(3,349)	(3,495)
Impact of foreign currency translation	73	(29)	(103)
Balance, end of year	$ 1,772	$ 1,523	$ 2,186

GUARANTEES AND PRODUCT WARRANTIES (Narrative) (Details) $ in Millions	12 Months Ended
	Oct. 31, 2017 USD ($)
Product Warranty Liability [Line Items]
Number Of Guarantees	27
Guarantor Obligations, Maximum Exposure, Undiscounted	$ 1.0
Term of Product Warranty	1 year

OPERATING LEASES (Schedule of future payments required under operating leases) (Details) $ in Thousands	Oct. 31, 2017 USD ($)
2018	$ 3,316
2019	2,077
2020	902
2021	706
2022 and thereafter	967
Total	$ 7,968

OPERATING LEASES (Narrative) (Details) - USD ($) $ in Millions	12 Months Ended
	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2015
Lease expense	$ 4.4	$ 4.5	$ 3.8

QUARTERLY FINANCIAL INFORMATION (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Oct. 31, 2017	Jul. 31, 2017	Apr. 30, 2017	Jan. 31, 2017	Oct. 31, 2016	Jul. 31, 2016	Apr. 30, 2016	Jan. 31, 2016	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2015
Sales and service fees	$ 75,931	$ 60,770	$ 58,222	$ 48,744	$ 66,354	$ 52,403	$ 52,029	$ 56,503	$ 243,667	$ 227,289	$ 219,383
Gross profit	$ 23,370	$ 17,540	$ 17,068	$ 12,586	$ 19,997	$ 16,135	$ 16,610	$ 17,698	70,564	70,440	69,091
Gross profit margin	31.00%	29.00%	29.00%	26.00%	30.00%	31.00%	32.00%	31.00%
Selling, general and administrative expenses	$ 14,385	$ 12,395	$ 11,714	$ 11,167	$ 14,878	$ 12,042	$ 11,943	$ 11,961	49,661	50,824	45,287
Operating income	8,985	5,145	5,354	1,419	5,119	4,093	4,667	5,737	20,903	19,616	23,804
Provision for income taxes	2,238	1,353	1,467	543	1,539	1,120	1,225	1,709	5,601	5,593	7,339
Net income	$ 6,702	$ 3,888	$ 3,646	$ 879	$ 3,003	$ 2,720	$ 3,674	$ 3,895	$ 15,115	$ 13,292	$ 16,214
Income per common share - basic (in dollars per share)	$ 1.01	$ 0.58	$ 0.55	$ 0.13	$ 0.45	$ 0.41	$ 0.56	$ 0.59	$ 2.27	$ 2.01	$ 2.46
Income per common share - diluted (in dollars per share)	$ 1.00	$ 0.58	$ 0.54	$ 0.13	$ 0.45	$ 0.4	$ 0.56	$ 0.58	$ 2.25	$ 1.99	$ 2.44

SEGMENT INFORMATION (Schedule of Net Sales and Service Fees by Product Category) (Details) - USD ($)
$ in Thousands

3 Months Ended

12 Months Ended

Oct. 31, 2017

Jul. 31, 2017

Apr. 30, 2017

Jan. 31, 2017

Oct. 31, 2016

Jul. 31, 2016

Apr. 30, 2016

Jan. 31, 2016

Oct. 31, 2017

Oct. 31, 2016

Oct. 31, 2015

Revenue from External Customer [Line Items]

Net Sales and Service Fees

$ 75,931

$ 60,770

$ 58,222

$ 48,744

$ 66,354

$ 52,403

$ 52,029

$ 56,503

$ 243,667

$ 227,289

$ 219,383

Computerized Machine Tools [Member]

Revenue from External Customer [Line Items]

Net Sales and Service Fees

^[1]

209,311

195,618

189,712

Computer Control Systems and Software [Member]

Revenue from External Customer [Line Items]

Net Sales and Service Fees

^[2]

2,324

2,078

3,085

Service Parts [Member]

Revenue from External Customer [Line Items]

Net Sales and Service Fees

24,255

21,908

19,375

Service Fees [Member]

Revenue from External Customer [Line Items]

Net Sales and Service Fees

$ 7,777

$ 7,685

$ 7,211

[1]	Amounts shown include sales of Milltronics and Takumi computerized machine tools to third parties since the respective dates of acquisitions.
[2]	Amounts shown do not include computer control systems and software sold as an integrated component of computerized machine systems.

SEGMENT INFORMATION (Schedule of Revenues by Geographic Area) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Oct. 31, 2017	Jul. 31, 2017	Apr. 30, 2017	Jan. 31, 2017	Oct. 31, 2016	Jul. 31, 2016	Apr. 30, 2016	Jan. 31, 2016	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2015
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 75,931	$ 60,770	$ 58,222	$ 48,744	$ 66,354	$ 52,403	$ 52,029	$ 56,503	$ 243,667	$ 227,289	$ 219,383
United States of America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues									70,912	70,630	66,781
Canada [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues									3,801	3,881	3,114
Central & South America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues									1,844	1,950	1,930
Total Americas [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues									76,557	76,461	71,825
Germany [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues									48,786	44,411	43,727
United Kingdom [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues									28,019	25,313	30,235
Italy [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues									13,416	12,947	11,768
France [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues									13,917	13,787	13,162
Other Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues									27,583	27,150	26,598
Total Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues									131,721	123,608	125,490
Asia Pacific [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues									32,694	25,633	20,265
Other Foreign [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues									2,695	1,587	1,803
Foreign [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues									$ 167,110	$ 150,828	$ 147,558

SEGMENT INFORMATION (Schedule of Long-Lived Tangible Assets and net assets, Net by Geographic Area) (Details) - USD ($) $ in Thousands	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2015
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-Lived Assets	$ 13,784	$ 13,757	$ 14,551
Net Assets	203,085	185,475	174,568
United States of America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-Lived Assets	7,599	7,846	8,658
Foreign Countries [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-Lived Assets	6,185	5,911	5,893
Americas [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net Assets	86,432	84,040	83,236
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net Assets	70,536	60,861	59,468
Asia Pacific [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net Assets	$ 46,117	$ 40,574	$ 31,864

NEW ACCOUNTING PRONOUNCEMENTS (Narrative) (Details) - USD ($) $ in Thousands		12 Months Ended
	Nov. 01, 2017	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2015
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Payments Related to Tax Withholding for Share-based Compensation		$ 295	$ 146	$ 239
Accounting Standards Update 2016-09 [Member] \| Subsequent Event [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Prior Period Reclassification Adjustment	$ 200