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Document And Entity Information - shares	3 Months Ended
Document And Entity Information - shares	Jan. 31, 2018	Mar. 01, 2018
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jan. 31, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q1
Entity Registrant Name	HURCO COMPANIES INC
Entity Central Index Key	0000315374
Current Fiscal Year End Date	--10-31
Entity Filer Category	Accelerated Filer
Trading Symbol	HURC
Entity Common Stock, Shares Outstanding		6,692,778

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Jan. 31, 2018	Jan. 31, 2017
Sales and service fees	$ 68,444	$ 48,744
Cost of sales and service	48,323	36,158
Gross profit	20,121	12,586
Selling, general and administrative expenses	12,966	11,167
Operating income	7,155	1,419
Interest expense	20	21
Interest income	18	11
Investment income	116	64
Other income (expense), net	168	(51)
Income before taxes	7,437	1,422
Provision for income taxes	4,500	543
Net income	$ 2,937	$ 879
Income per common share
Basic (in dollars per share)	$ 0.44	$ 0.13
Diluted (in dollars per share)	$ 0.43	$ 0.13
Weighted average common shares outstanding
Basic (in shares)	6,659	6,583
Diluted (in shares)	6,745	6,668
Dividends paid per share	$ 0.10	$ 0.09

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Jan. 31, 2018	Jan. 31, 2017
Net income	$ 2,937	$ 879
Other comprehensive income (loss):
Translation of foreign currency financial statements	5,065	(103)
(Gain) / loss on derivative instruments reclassified into operations, net of tax of $(74) and $115, respectively	(222)	209
Gain / (loss) on derivative instruments, net of tax of $(382) and $181, respectively	(1,142)	329
Total other comprehensive income	3,701	435
Comprehensive income	$ 6,638	$ 1,314

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Jan. 31, 2018	Jan. 31, 2017
Realized loss (gains) on derivative instruments reclassified into operations, tax	$ (74)	$ 115
Unrealized (loss) gains on derivative instruments, tax	$ (382)	$ 181

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jan. 31, 2018	Oct. 31, 2017
Current assets:
Cash and cash equivalents	$ 80,236	$ 66,307
Accounts receivable, net	41,614	50,094
Inventories, net	131,526	119,948
Derivative assets	1,364	596
Prepaid assets	8,105	7,913
Other	2,726	1,557
Total current assets	265,571	246,415
Property and equipment:
Land	868	841
Building	7,352	7,352
Machinery and equipment	26,988	25,652
Leasehold improvements	3,762	3,503
Property and equipment, gross	38,970	37,348
Less accumulated depreciation and amortization	(26,250)	(25,167)
Total property and equipment	12,720	12,181
Non-current assets:
Software development costs, less accumulated amortization	6,595	6,226
Goodwill	2,586	2,440
Intangible assets, net	1,092	1,076
Deferred income taxes	4,571	6,176
Investments and other assets, net	7,658	7,131
Total non-current assets	22,502	23,049
Total assets	300,793	281,645
Current liabilities:
Accounts payable	57,603	47,638
Accrued expenses and other	17,008	18,240
Accrued warranty expenses	2,043	1,772
Derivative liabilities	4,156	1,732
Short-term debt	1,590	1,507
Total current liabilities	82,400	70,889
Non-current liabilities:
Deferred income taxes	1,942	3,821
Accrued tax liability	2,446	133
Deferred credits and other	3,909	3,717
Total non-current liabilities	8,297	7,671
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, 6,866,932 and 6,799,006 shares issued; and 6,692,778 and 6,641,197 shares outstanding, as of January 31, 2018 and October 31, 2017, respectively	669	664
Additional paid-in capital	62,380	61,344
Retained earnings	151,536	149,267
Accumulated other comprehensive loss	(4,489)	(8,190)
Total shareholders’ equity	210,096	203,085
Total liabilities and shareholders’ equity	$ 300,793	$ 281,645

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jan. 31, 2018	Oct. 31, 2017
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	6,866,932	6,799,006
Common stock, shares outstanding	6,692,778	6,641,197

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Jan. 31, 2018	Jan. 31, 2017
Cash flows from operating activities:
Net income	$ 2,937	$ 879
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
Provision for doubtful accounts	158	19
Deferred income taxes	638	(377)
Equity in income of affiliates	(139)	(223)
Depreciation and amortization	888	959
Foreign currency (gain) loss	(1,514)	927
Unrealized (gain) loss on derivatives	885	(683)
Stock-based compensation	549	348
Taxes paid related to net settlement of restricted shares	502	473
Change in assets and liabilities:
(Increase) decrease in accounts receivable	10,437	16,493
(Increase) decrease in inventories	(6,947)	(474)
(Increase) decrease in prepaid expenses	(528)	(659)
Increase (decrease) in accounts payable	7,801	2,785
Increase (decrease) in accrued expenses	(1,680)	(4,694)
Net change in derivative assets and liabilities	40	194
Other	435	29
Net cash provided by (used for) operating activities	14,462	15,996
Cash flows from investing activities:
Purchase of property and equipment	(855)	(798)
Proceeds from sale of equipment	58	0
Software development costs	(625)	(482)
Net cash provided by (used for) investing activities	(1,422)	(1,280)
Cash flows from financing activities:
Dividends paid	(668)	(592)
Taxes paid related to net settlement of restricted shares	(502)	(473)
Proceeds from exercise of common stock options	492	0
Net cash provided by (used for) financing activities	(678)	(1,065)
Effect of exchange rate changes on cash	1,567	272
Net increase (decrease) in cash and cash equivalents	13,929	13,923
Cash and cash equivalents at beginning of period	66,307	41,217
Cash and cash equivalents at end of period	$ 80,236	$ 55,140

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]
Balances at Oct. 31, 2016	$ 185,475	$ 657	$ 59,119	$ 136,742	$ (11,043)
Balances (in shares) at Oct. 31, 2016		6,573,103
Net income	879	$ 0	0	879	0
Other comprehensive income	435	0	0	0	435
Stock-based compensation	351	$ 3	348	0	0
Stock-based compensation (in shares)		29,760
Dividends paid	(592)	$ 0	0	(592)	0
Balances at Jan. 31, 2017	186,548	$ 660	59,467	137,029	(10,608)
Balances (in shares) at Jan. 31, 2017		6,602,863
Balances at Oct. 31, 2017	203,085	$ 664	61,344	149,267	(8,190)
Balances (in shares) at Oct. 31, 2017		6,641,197
Net income	2,937	$ 0	0	2,937	0
Other comprehensive income	3,701	0	0	0	3,701
Exercise of common stock options	492	$ 3	489	0	0
Exercise of common stock options (in shares)		26,218
Stock-based compensation	549	$ 2	547	0	0
Stock-based compensation (in shares)		25,363
Dividends paid	(668)	$ 0	0	(668)	0
Balances at Jan. 31, 2018	$ 210,096	$ 669	$ 62,380	$ 151,536	$ (4,489)
Balances (in shares) at Jan. 31, 2018		6,692,778

GENERAL

3 Months Ended

Jan. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

GENERAL

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

We design, manufacture and sell computerized (i.e., Computer Numeric Control) machine tools, consisting primarily of vertical machining centers (mills) and turning centers (lathes), to companies in the metal cutting industry through a worldwide sales, service and distribution network. Although the majority of our computer control systems and software products are proprietary, they predominantly use industry standard personal computer components. Our computer control systems and software products are primarily sold as integral components of our computerized machine tool products. We also provide machine tool components, software options, control upgrades, accessories and replacement parts for our products, as well as customer service and training support.

The condensed financial information as of January 31, 2018 and for the three months ended January 31, 2018 and January 31, 2017 is unaudited. However, in our opinion, the interim data includes all adjustments, consisting only of normal recurring adjustments, necessary to present fairly our consolidated financial position, results of operations, changes in shareholders’ equity and cash flows for and at the end of the interim periods. We suggest that you read these condensed consolidated financial statements in conjunction with the financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended October 31, 2017.

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

3 Months Ended

Jan. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

We are exposed to certain market risks relating to our ongoing business operations, including foreign currency risk, interest rate risk and credit risk. We manage our exposure to these and other market risks through regular operating and financing activities. Currently, the only risk that we manage through the use of derivative instruments is foreign currency risk for which we enter into derivative instruments in the form of foreign currency forward exchange contracts with a major financial institution.

We enter into these forward exchange contracts to reduce the potential effects of foreign exchange rate movements on our net equity investment in one of our foreign subsidiaries, to reduce the impact on gross profit and net earnings from sales and purchases denominated in foreign currencies, and to reduce the impact on our net earnings of foreign currency fluctuations on receivables and payables denominated in foreign currencies that are different than the subsidiaries’ functional currency. We are primarily exposed to foreign currency exchange rate risk with respect to transactions and net assets denominated in Euros, Pounds Sterling, Indian Rupee, South African Rand, Singapore Dollars, Chinese Yuan, Polish Zloty, and New Taiwan Dollars. We record all derivative instruments as assets or liabilities at fair value.

Derivatives Designated as Hedging Instruments

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

We had forward contracts outstanding as of January 31, 2018, denominated in Euros, Pounds Sterling and New Taiwan Dollars with set maturity dates ranging from February 2018 through January 2019. The contract amounts, expressed at forward rates in U.S. Dollars at January 31, 2018, were $40.1 million for Euros, $9.8 million for Pounds Sterling and $37.4 million for New Taiwan Dollars. At January 31, 2018, we had approximately $2.2 million of losses, net of tax, related to cash flow hedges deferred in Accumulated other comprehensive loss. Included in this amount were $1.2 million of unrealized losses, 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 January 2019, when the corresponding inventory that is the subject of the related hedge contracts is sold, as described above.

We are also exposed to foreign currency exchange risk related to our investment in net assets in foreign countries. To manage this risk, we entered into a forward contract with a notional amount of €3.0 million in November 2017. We designated this forward contract as a hedge of our net investment in Euro denominated assets. We selected the forward method under Financial Accounting Standards Board, or FASB, guidance related to the accounting for derivative instruments and hedging activities. The forward method requires all changes in the fair value of the contract to be reported as a cumulative translation adjustment in Accumulated other comprehensive loss, net of tax, in the same manner as the underlying hedged net assets. This forward contract matures in November 2018. As of January 31, 2018, we had $609,000 of realized gains and $106,000 of unrealized losses, net of tax, recorded as cumulative translation adjustments in Accumulated other comprehensive loss related to this forward contract.

Derivatives Not Designated as Hedging Instruments

We also enter into foreign currency forward exchange contracts to protect against the effects of foreign currency fluctuations on receivables and payables denominated in foreign currencies. These derivative instruments are not designated as hedges under the FASB guidance and, as a result, changes in their fair value are reported currently as Other income (expense), net in the Condensed Consolidated Statements of Income consistent with the transaction gain or loss on the related receivables and payables denominated in foreign currencies.

We had forward contracts outstanding as of January 31, 2018, denominated in Euros, Pounds Sterling, South African Rand, and New Taiwan Dollar with set maturity dates ranging from February 2018 through October 2018. The contract amounts, expressed at forward rates in U.S. Dollars at January 31, 2018 totaled $63.3 million.

Fair Value of Derivative Instruments

We recognize the fair value of derivative instruments as assets and liabilities on a gross basis on our Condensed Consolidated Balance Sheets. As of January 31, 2018 and October 31, 2017, all derivative instruments were recorded at fair value on our Consolidated Balance Sheets as follows (in thousands):

January 31, 2018

October 31, 2017

Balance Sheet

Fair

Balance Sheet

Fair

Derivatives

Location

Value

Location

Value

Designated as Hedging Instruments:

Foreign exchange forward contracts

Derivative assets

768

Derivative assets

305

Foreign exchange forward contracts

Derivative liabilities

2,677

Derivative liabilities

1,508

Not Designated as Hedging Instruments:

Foreign exchange forward contracts

Derivative assets

596

Derivative assets

291

Foreign exchange forward contracts

Derivative liabilities

1,479

Derivative liabilities

224

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

Derivative instruments had the following effects on our Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Changes in Shareholders’ Equity and Condensed Consolidated Statements of Income, net of tax, during the three months ended January 31, 2018 and 2017 (in thousands):

Location of

Amount of Gain

Gain (Loss)

Amount of Gain

(Loss) Recognized in

Reclassified

(Loss) Reclassified

Other

from Other

Comprehensive

Derivatives

Income (Loss)

Three Months Ended

January 31,

2018

2017

2018

2017

Designated as Hedging Instruments:

(Effective portion)

Foreign exchange forward contracts – Intercompany sales/purchases

(1,142)

329

Cost of sales
and service

222

(209)

Foreign exchange forward contract – Net investment

(166)

We did not recognize any gains or losses as a result of hedges deemed ineffective for the three months ended January 31, 2018. We recognized a loss of $136,000 as a result of hedges deemed ineffective for the three months ended January 31, 2017. We recognized the following losses and gains in our Condensed Consolidated Statements of Income during the three months ended January 31, 2018 and 2017 on derivative instruments not designated as hedging instruments (in thousands):

	Location of Gain
	(Loss) Recognized	Amount of Gain (Loss)
Derivatives	in Operations	Recognized in Operations
		Three Months Ended
		January 31,
		2018		2017
Not Designated as Hedging Instruments:
Foreign exchange forward contracts	Other income (expense), net	$	(1,256)	$	790

The following table presents the changes in the components of Accumulated other comprehensive loss, net of tax, for the three months ended January 31, 2018 (in thousands):

	Foreign
	Currency		Cash Flow
	Translation		Hedges		Total
Balance, October 31, 2017	$	(7,409)	$	(781)	$	(8,190)
Other comprehensive income (loss) before reclassifications		5,065		(1,142)		3,923
Reclassifications		—		(222)		(222)
Balance, January 31, 2018	$	(2,344)	$	(2,145)	$	(4,489)

EQUITY INCENTIVE PLAN

3 Months Ended

Jan. 31, 2018

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

EQUITY INCENTIVE PLAN

In March 2016, we adopted the Hurco Companies, Inc. 2016 Equity Incentive Plan (the “2016 Equity Plan”), which allows us to grant awards of stock options, stock appreciation rights, 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 stock option activity for the three-month period ended January 31, 2018, is as follows:

			Weighted Average
	Stock		Exercise
	Options		Price
Outstanding at October 31, 2017		78,725	$	20.97

Options granted		—		—
Options exercised		(26,218)	$	18.76
Options cancelled		—		—

Outstanding at January 31, 2018		52,507	$	22.07

The total intrinsic value of stock options exercised during the three months ended January 31, 2018 was approximately $492,000.

Summarized information about outstanding stock options as of January 31, 2018, that have already vested and are currently exercisable, are as follows:

	Options Already Vested and
	Currently Exercisable
Number of outstanding options		52,507
Weighted average remaining contractual life (years)		3.24
Weighted average exercise price per share	$	22.07
Intrinsic value of outstanding options	$	1,211,926

The intrinsic value of an outstanding stock option is calculated as the difference between the stock price as of January 31, 2018 and the exercise price of the option.

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 November 15, 2017, the Compensation Committee granted a total of 2,364 shares of time-based restricted stock to our non-executive employees. The restricted shares vest in thirds over three years from the date of grant provided the recipient remains employed through that date. The grant date fair value of the restricted shares was based upon the closing sales price of our common stock on the date of grant which was $42.30 per share.

On January 3, 2018, the Compensation Committee determined the degree to which the long-term incentive compensation arrangement approved for the fiscal 2015-2017 performance period was attained, and the resulting payout level relative to the target amount for each of the metrics that were established by the Compensation Committee in 2015. As a result, the Compensation Committee determined that a total of 23,299 performance shares were earned by our executive officers, which performance shares vested on January 3, 2018. The vesting date fair value of the performance shares was based on the closing sales price of our common stock on the vesting date, which was $42.20 per share.

On January 3, 2018, the Compensation Committee also approved a long-term incentive compensation arrangement for our executive officers in the form of restricted shares and performance stock units (“PSUs”) under the 2016 Equity Plan, which will be payable in shares of our common stock if earned and vested. The awards were 25% time-based vesting and 75% performance-based vesting. The three-year performance period for the PSUs is fiscal 2018 through fiscal 2020.

On that date, the Compensation Committee granted a total of 14,810 shares of time-based restricted stock to our executive officers. The restricted shares vest in thirds over three years from the date of grant provided the recipient remains employed through that date. The grant date fair value of the restricted shares was based upon the closing sales price of our common stock on the date of grant which was $42.20 per share.

On January 3, 2018, the Compensation Committee also granted a total target number of 20,734 PSUs to our executive officers designated as “PSU – TSR”. These PSUs were weighted as approximately 40% of the overall 2018 executive long-term incentive compensation arrangement and will vest and be paid based upon the total shareholder return of our common stock over the three-year period of fiscal 2018-2020, relative to the total shareholder return of the companies in a specified peer group over that period. Participants will have the ability to earn between 50% of the target number of the PSUs – TSR for achieving threshold performance and 200% of the target number of the PSUs – TSR for achieving maximum performance. The grant date fair value of the PSUs – TSR was $45.68 per PSU and was calculated using the Monte Carlo approach.

On January 3, 2018, the Compensation Committee also granted a total target number of 21,891 PSUs to our executive officers designated as “PSU – ROIC”. These PSUs were weighted as approximately 35% of the overall 2018 executive long-term incentive compensation arrangement and will vest and be paid based upon the achievement of pre-established goals related to our average return on invested capital over the three-year period of fiscal 2018-2020. Participants will have the ability to earn between 50% of the target number of the PSUs - ROIC for achieving threshold performance and 200% of the target number of the PSUs - ROIC for achieving maximum performance. The grant date fair value of the PSUs – ROIC was based on the closing sales price of our common stock on the grant date, which was $42.20 per share.

A reconciliation of the Company’s restricted stock, performance share and PSU activity and related information for the three-month period ended January 31, 2018 is as follows:

			Weighted Average
	Number of		Grant Date
	Shares		Fair Value
Unvested at October 31, 2017		157,809	$	32.05
Shares or units granted		59,799		43.41
Shares or units vested		(25,363)		32.19
Shares or units cancelled		(6,385)		33.67
Shares or units withheld		(11,706)		32.19
Unvested at January 31, 2018		174,154	$	35.86

During the first three months of fiscal 2018 and 2017, we recorded $549,000 and $351,000, respectively, as stock-based compensation expense related to grants under our equity plans. As of January 31, 2018, there was an estimated $4.2 million of total unrecognized stock-based compensation cost that we expect to recognize by the end of the first quarter of fiscal 2021.

EARNINGS PER SHARE

3 Months Ended

Jan. 31, 2018

Earnings Per Share [Abstract]

EARNINGS PER SHARE

4.	EARNINGS PER SHARE

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

	Three Months Ended
	January 31,
	2018				2017
	Basic		Diluted		Basic		Diluted
Net income	$	2,937	$	2,937	$	879	$	879
Undistributed earnings allocated to participating shares		(21)		(21)		(5)		(5)
Net income applicable to common shareholders	$	2,916	$	2,916	$	874	$	874

Weighted average shares outstanding		6,659		6,659		6,583		6,583
Stock options and contingently issuable securities		—		86		—		85
		6,659		6,745		6,583		6,668

Income per share	$	0.44	$	0.43	$	0.13	$	0.13

ACCOUNTS RECEIVABLE

3 Months Ended

Jan. 31, 2018

Receivables [Abstract]

ACCOUNTS RECEIVABLE

5.	ACCOUNTS RECEIVABLE

Accounts receivable are net of allowances for doubtful accounts of $797,000 as of January 31, 2018 and $639,000 as of October 31, 2017.

- Definition

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

+ References + Details

INVENTORIES

3 Months Ended

Jan. 31, 2018

Inventory Disclosure [Abstract]

INVENTORIES

6. INVENTORIES

In July 2015, the FASB issued guidance on simplifying the measurement of inventory. The guidance, which applies to inventory that is measured using any method other than the last-in, first-out (“LIFO”) or retail inventory method, requires that entities measure inventory at the lower of cost or net realizable value. The Company adopted the provisions of this guidance prospectively in the first quarter of fiscal 2018. The adoption of this guidance did not have a material impact on the Company’s consolidated results of operations, financial position, or cash flows.

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

	January 31,		October 31,
	2018		2017
Purchased parts and sub-assemblies	$	38,315	$	33,045
Work-in-process		22,040		20,008
Finished goods		71,171		66,895
	$	131,526	$	119,948

SEGMENT INFORMATION

3 Months Ended

Jan. 31, 2018

Segment Reporting [Abstract]

SEGMENT INFORMATION

7. SEGMENT INFORMATION

We operate in a single segment: industrial automation equipment. We design, manufacture and sell computerized machine tools, consisting primarily of vertical machining centers (mills) and turning centers (lathes), to companies in the metal cutting industry through a worldwide sales, service and distribution network. Our computer control systems and software products are primarily sold as integral components of our computerized machine tool products. We also provide machine tool components, software options, control upgrades, accessories and replacement parts for our products, as well as customer service and training support.

GUARANTEES AND PRODUCT WARRANTIES

3 Months Ended

Jan. 31, 2018

Standard Product Warranty Disclosure [Abstract]

GUARANTEES AND PRODUCT WARRANTIES

8. 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 January 31, 2018, 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 assumes the risk of ownership. The customer does not obtain title, however, until the customer has paid for the machine. A retention of title clause allows us to recover the machine if the customer defaults on the financing. We accrue liabilities under these guarantees at fair value, which amounts are insignificant.

We provide warranties on our products with respect to defects in material and workmanship. The terms of these warranties are generally one year for machines and certain components and shorter periods for service parts. We recognize a reserve with respect to this obligation at the time of product sale, with subsequent warranty claims recorded against the reserve. The amount of the warranty reserve is determined based on historical trend experience and any known warranty issues that could cause future warranty costs to differ from historical experience. A reconciliation of the changes in our warranty reserve is as follows (in thousands):

	Three Months Ended
	January 31,
	2018		2017
Balance, beginning of period	$	1,772	$	1,523
Provision for warranties during the period		980		806
Charges to the reserve		(771)		(790)
Impact of foreign currency translation		62		(6)
Balance, end of period	$	2,043	$	1,533

The year-over-year increase in our warranty reserve was primarily due to an increase in unit sales volume, as well as an increase in average warranty cost per machine as our product mix of machines under warranty shifted to more complex, higher-performance machines.

DEBT AGREEMENTS

3 Months Ended

Jan. 31, 2018

Debt Disclosure [Abstract]

DEBT AGREEMENTS

9.	DEBT AGREEMENTS

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 $3.2 million). On February 14, 2018, we renewed this facility with an expiration date of February 13, 2019. We had $1.6 million and $1.5 million of borrowings under our China credit facility at January 31, 2018 and October 31, 2017, respectively, which bears interest at variable rates of 4.4% and 4.4% 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 January 31, 2018, we had unutilized credit facilities of $19.9 million.

INCOME TAXES

3 Months Ended

Jan. 31, 2018

Income Tax Disclosure [Abstract]

INCOME TAXES

10.	INCOME TAXES

In December 2017, the Tax Cuts and Jobs Act (the “Tax Reform Act”) was enacted. The Tax Reform Act among other things, lowered the U.S. corporate tax rate from 35% to 21%, implemented a territorial tax system from a worldwide system and imposed a tax on deemed repatriation of earnings of foreign subsidiaries, all of which were effective for our first quarter of fiscal 2018. Other provisions to the Tax Reform Act, such as elimination of domestic production deductions and limitation on other business deductions, will be effective for us beginning in fiscal 2019. We recognized the income tax effects of the Tax Reform Act in our 2018 financial statements in accordance with Staff Accounting Bulletin No. 118, which provides SEC staff guidance for the application of ASC Topic 740, Income Taxes, in the reporting period in which the 2017 Tax Act was signed into law. As such, our financial results reflect the income tax effects of the Tax Reform Act for which the accounting under ASC Topic 740 is complete and provisional amounts for those specific income tax effects of the Tax Reform Act for which the accounting under ASC Topic 740 is incomplete but a reasonable estimate could be determined.

We recorded income tax expense during the first three months of fiscal 2018 of $4.5 million compared to $0.5 million for the same period in fiscal 2017. Our effective tax rate for the first three months of fiscal 2018 was 61% in comparison to 38% for the same period in fiscal 2017. The effective tax rate for the three months ended January 31, 2018 is a blended rate reflecting the estimated benefit of approximately one month of the federal tax rate reductions for fiscal 2018, a one-time provisional adjustment of $2.5 million related to the transition tax on deemed repatriation of accumulated foreign income and a one-time non-cash tax charge of $0.4 million related to the revaluation of net deferred tax assets.

The $2.5 million transition tax on deemed repatriation of accumulated foreign income is subject to adjustment during the measurement period of up to one year following the December 2017 enactment date, as provided by recent SEC guidance. We measure deferred tax assets and liabilities using enacted tax rates that will apply in the years in which the temporary differences are expected to be recovered or paid. Accordingly, our deferred tax assets and liabilities were re-measured to reflect the reduction in the U.S. corporate income tax rate from 35% to 21%, resulting in an increase of $0.4 million in income tax expense for the first quarter ended January 31, 2018 and a corresponding decrease of $0.4 million in net deferred tax assets as of January 31, 2018.

Both of these tax adjustments represent provisional amounts based upon our current interpretation of the Tax Reform Act and may change as we receive additional clarification and implementation guidance. We will continue to analyze the effects of the Tax Reform Act on our financial statements and operations. Any additional impacts from the enactment of the Tax Reform Act will be recorded as they are identified during the measurement period as provided for in accordance with Staff Accounting Bulletin No. 118.

Our unrecognized tax benefits were $1.2 million as of January 31, 2018 and as of October 31, 2017, and in each case included accrued interest.

We recognize accrued interest and penalties related to unrecognized tax benefits as components of income tax expense. As of January 31, 2018, the gross amount of interest accrued, reported in Accrued expenses and other, was approximately $58,000, which did not include the federal tax benefit of interest deductions.

We file U.S. federal and state income tax returns, as well as tax returns in several foreign jurisdictions. The statutes of limitations with respect to unrecognized tax benefits will expire between July 2018 and July 2020.

FINANCIAL INSTRUMENTS

3 Months Ended

Jan. 31, 2018

Fair Value Disclosures [Abstract]

FINANCIAL INSTRUMENTS

11.	FINANCIAL INSTRUMENTS

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

In accordance with this guidance, the following table represents the fair value hierarchy for our financial assets and liabilities measured at fair value as of January 31, 2018 and October 31, 2017 (in thousands):

	Assets				Liabilities
	January 31,		October 31,		January 31,		October 31,
	2018		2017		2018		2017

Level 1
Deferred Compensation	$	1,739	$	1,638	$	-	$	-

Level 2
Derivatives	$	1,364	$	596	$	4,156	$	1,732

Included in Level 1 assets are mutual fund investments under a nonqualified deferred compensation plan. We estimate the fair value of these investments on a recurring basis using market prices that are readily available.

Included in Level 2 fair value measurements are derivative assets and liabilities related to gains and losses on foreign currency forward exchange contracts entered into with a third party. We estimate the fair value of these derivatives on a recurring basis using foreign currency exchange rates obtained from active markets. Derivative instruments are reported in the accompanying condensed consolidated financial statements at fair value. We have derivative financial instruments in the form of foreign currency forward exchange contracts as described in Note 2 of Notes to the Condensed Consolidated Financial Statements. The U.S. Dollar equivalent notional amounts of these contracts was $149.1 million and $134.3 million at January 31, 2018 and October 31, 2017, respectively.

The fair value of our foreign currency forward exchange contracts and the related currency positions are subject to offsetting market risk resulting from foreign currency exchange rate volatility. The counterparty to the forward exchange contracts is a substantial and creditworthy financial institution. We do not consider either the risk of counterparty non-performance or the economic consequences of counterparty non-performance to be 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

CONTINGENCIES AND LITIGATION

3 Months Ended

Jan. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

CONTINGENCIES AND LITIGATION

12.	CONTINGENCIES AND LITIGATION

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

NEW ACCOUNTING PRONOUNCEMENTS

3 Months Ended

Jan. 31, 2018

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

NEW ACCOUNTING PRONOUNCEMENTS

13.	NEW ACCOUNTING PRONOUNCEMENTS

Recently Adopted Accounting Pronouncements:

In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, which requires management to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and provide related footnote disclosures. ASU No. 2014-15 is effective for our fiscal year 2018, including interim periods within the fiscal year. As such, we adopted this standard in the first quarter of fiscal 2018. This standard did not have a significant effect on our accounting policies or on our condensed consolidated financial statements and related disclosures.

In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory, which requires companies to measure inventory at lower of cost and net realizable value, versus lower of cost or market. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. ASU 2015-11 is effective for our fiscal year 2018, with early adoption permitted and should be applied prospectively. As such, we adopted this standard in the first quarter of fiscal 2018 on a prospective basis. This standard did not have a significant effect on our accounting policies or on our condensed consolidated financial statements and related disclosures. For additional information, see Note 6: Inventories.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This standard is intended to address eight classification issues related to the statement of cash flows to reduce diversity in practice in how certain transactions are classified. ASU 2016-15 is effective for our fiscal year 2019, with early adoption permitted. This standard requires adoption based upon a retrospective transition method. We elected to early adopt this standard in the first quarter of fiscal 2018. This standard did not have a significant effect on our accounting policies or on our condensed consolidated financial statements and related disclosures.

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. At this time, we expect to use the modified retrospective approach upon adoption and expect this standard will have an overall immaterial impact on our consolidated financial statements. 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 August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815) Targeted Improvements to Accounting for Hedging Activities, which simplifies the application of hedge accounting and enables companies to better portray the economics of their risk management activities in their financial statements. ASU 2017-12 is effective for our fiscal year 2020, including interim periods within the fiscal year, and requires modified retrospective application. Early adoption is permitted. We do not anticipate that the adoption of this ASU will have a material impact on our consolidated financial statements and disclosures.

In February 2018, FASB issued ASU No. 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which will allow a reclassification from accumulated other comprehensive income to retained earnings for the tax effects resulting from the Tax Reform Act that are stranded in accumulated other comprehensive income. This standard also requires certain disclosures about stranded tax effects. This ASU, however, does not change the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations. ASU 2018-02 will be effective for our fiscal year 2020, with the option to early adopt at any time prior to the effective date. It must be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Reform Act is recognized. We are assessing the impact this new accounting guidance will have on our consolidated financial statements.

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

3 Months Ended

Jan. 31, 2018

Schedule of Fair Value of Derivative Instruments

As of January 31, 2018 and October 31, 2017, all derivative instruments were recorded at fair value on our Consolidated Balance Sheets as follows (in thousands):

January 31, 2018

October 31, 2017

Balance Sheet

Fair

Balance Sheet

Fair

Derivatives

Location

Value

Location

Value

Designated as Hedging Instruments:

Foreign exchange forward contracts

Derivative assets

768

Derivative assets

305

Foreign exchange forward contracts

Derivative liabilities

2,677

Derivative liabilities

1,508

Not Designated as Hedging Instruments:

Foreign exchange forward contracts

Derivative assets

596

Derivative assets

291

Foreign exchange forward contracts

Derivative liabilities

1,479

Derivative liabilities

224

Period One [Member]

Schedule of Changes in Components of Accumulated Other Comprehensive Loss

The following table presents the changes in the components of Accumulated other comprehensive loss, net of tax, for the three months ended January 31, 2018 (in thousands):

	Foreign
	Currency		Cash Flow
	Translation		Hedges		Total
Balance, October 31, 2017	$	(7,409)	$	(781)	$	(8,190)
Other comprehensive income (loss) before reclassifications		5,065		(1,142)		3,923
Reclassifications		—		(222)		(222)
Balance, January 31, 2018	$	(2,344)	$	(2,145)	$	(4,489)

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

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

Location of

Amount of Gain

Gain (Loss)

Amount of Gain

(Loss) Recognized in

Reclassified

(Loss) Reclassified

Other

from Other

Comprehensive

Derivatives

Income (Loss)

Three Months Ended

January 31,

2018

2017

2018

2017

Designated as Hedging Instruments:

(Effective portion)

Foreign exchange forward contracts – Intercompany sales/purchases

(1,142)

329

Cost of sales
and service

222

(209)

Foreign exchange forward contract – Net investment

(166)

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

Schedule of Derivatives Not Designated as Hedging Instruments

We recognized the following losses and gains in our Condensed Consolidated Statements of Income during the three months ended January 31, 2018 and 2017 on derivative instruments not designated as hedging instruments (in thousands):

	Location of Gain
	(Loss) Recognized	Amount of Gain (Loss)
Derivatives	in Operations	Recognized in Operations
		Three Months Ended
		January 31,
		2018		2017
Not Designated as Hedging Instruments:
Foreign exchange forward contracts	Other income (expense), net	$	(1,256)	$	790

EQUITY INCENTIVE PLAN (Tables)

3 Months Ended

Jan. 31, 2018

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

Summary of Stock Option Activity

A summary of stock option activity for the three-month period ended January 31, 2018, is as follows:

			Weighted Average
	Stock		Exercise
	Options		Price
Outstanding at October 31, 2017		78,725	$	20.97

Options granted		—		—
Options exercised		(26,218)	$	18.76
Options cancelled		—		—

Outstanding at January 31, 2018		52,507	$	22.07

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

Summarized information about outstanding stock options as of January 31, 2018, that have already vested and are currently exercisable, are as follows:

	Options Already Vested and
	Currently Exercisable
Number of outstanding options		52,507
Weighted average remaining contractual life (years)		3.24
Weighted average exercise price per share	$	22.07
Intrinsic value of outstanding options	$	1,211,926

Reconciliation of Restricted Stock Activity and Related Information

A reconciliation of the Company’s restricted stock, performance share and PSU activity and related information for the three-month period ended January 31, 2018 is as follows:

			Weighted Average
	Number of		Grant Date
	Shares		Fair Value
Unvested at October 31, 2017		157,809	$	32.05
Shares or units granted		59,799		43.41
Shares or units vested		(25,363)		32.19
Shares or units cancelled		(6,385)		33.67
Shares or units withheld		(11,706)		32.19
Unvested at January 31, 2018		174,154	$	35.86

EARNINGS PER SHARE (Tables)

3 Months Ended

Jan. 31, 2018

Earnings Per Share [Abstract]

Reconciliation of Basic and Diluted Earnings Per Share

The computation of basic and diluted net income per share is determined using net income applicable to common shareholders as the numerator and the number of shares outstanding as the denominator as follows (in thousands, except per share amounts):

	Three Months Ended
	January 31,
	2018				2017
	Basic		Diluted		Basic		Diluted
Net income	$	2,937	$	2,937	$	879	$	879
Undistributed earnings allocated to participating shares		(21)		(21)		(5)		(5)
Net income applicable to common shareholders	$	2,916	$	2,916	$	874	$	874

Weighted average shares outstanding		6,659		6,659		6,583		6,583
Stock options and contingently issuable securities		—		86		—		85
		6,659		6,745		6,583		6,668

Income per share	$	0.44	$	0.43	$	0.13	$	0.13

INVENTORIES (Tables)

3 Months Ended

Jan. 31, 2018

Inventory Disclosure [Abstract]

Schedule of Inventories

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

	January 31,		October 31,
	2018		2017
Purchased parts and sub-assemblies	$	38,315	$	33,045
Work-in-process		22,040		20,008
Finished goods		71,171		66,895
	$	131,526	$	119,948

GUARANTEES AND PRODUCT WARRANTIES (Tables)

3 Months Ended

Jan. 31, 2018

Standard Product Warranty Disclosure [Abstract]

Reconciliation of Warranty Reserve

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

	Three Months Ended
	January 31,
	2018		2017
Balance, beginning of period	$	1,772	$	1,523
Provision for warranties during the period		980		806
Charges to the reserve		(771)		(790)
Impact of foreign currency translation		62		(6)
Balance, end of period	$	2,043	$	1,533

FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Jan. 31, 2018

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Fair Value

	Assets				Liabilities
	January 31,		October 31,		January 31,		October 31,
	2018		2017		2018		2017

Level 1
Deferred Compensation	$	1,739	$	1,638	$	-	$	-

Level 2
Derivatives	$	1,364	$	596	$	4,156	$	1,732

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Schedule of Fair Value of Derivative Instruments) (Details) - USD ($) $ in Thousands	Jan. 31, 2018	Oct. 31, 2017
Derivatives, Fair Value [Line Items]
Derivative assets	$ 1,364	$ 596
Derivative liabilities	4,156	1,732
Foreign Exchange Forward [Member] \| Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Derivative assets	768	305
Derivative liabilities	2,677	1,508
Foreign Exchange Forward [Member] \| Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Derivative assets	596	291
Derivative liabilities	$ 1,479	$ 224

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Schedule of Effect of Derivative Instruments on Consolidated Balance Sheets, Statements of Changes in Shareholders' Equity and Statements of Operations) (Details) - Foreign Exchange Forward [Member] - USD ($) $ in Thousands	3 Months Ended
	Jan. 31, 2018	Jan. 31, 2017
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)	$ (1,142)	$ 329
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)	222	(209)
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)	(166)	39
Not Designated as Hedging Instrument [Member] \| Other Income And Expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Operations	$ (1,256)	$ 790

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Schedule of Changes in Components of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Jan. 31, 2018	Jan. 31, 2017
Derivative [Line Items]
Beginning Balance	$ (8,190)
Other comprehensive income (loss) before reclassifications	3,923
Reclassifications	(222)	$ 209
Ending Balance	(4,489)
Foreign Currency Translation [Member]
Derivative [Line Items]
Beginning Balance	(7,409)
Other comprehensive income (loss) before reclassifications	5,065
Reclassifications	0
Ending Balance	(2,344)
Cash Flow Hedges [Member]
Derivative [Line Items]
Beginning Balance	(781)
Other comprehensive income (loss) before reclassifications	(1,142)
Reclassifications	(222)
Ending Balance	$ (2,145)

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Narrative) (Details) € in Millions	1 Months Ended	3 Months Ended
	Nov. 30, 2017 EUR (€)	Jan. 31, 2018 USD ($)	Jan. 31, 2017 USD ($)	Oct. 31, 2017 USD ($)
Derivative financial instruments:
Notional principal of foreign exchange contracts		$ 149,100,000		$ 134,300,000
(Losses) gains, net of tax, related to cash flow hedges deferred in Accumulated Other Comprehensive Loss		2,200,000
Unrealized gain (loss), net of tax, to be reclassified in next 12 months		1,200,000
Gain (loss) on hedge ineffectiveness			$ (136,000)
Not Designated as Hedging Instrument [Member]
Derivative financial instruments:
Notional principal of foreign exchange contracts		63,300,000
Forward Contracts [Member] \| Designated as Hedging Instrument [Member]
Derivative financial instruments:
Realized gain on net investment hedge		609,000
Notional amount of derivatives designated as net investment hedge \| €	€ 3.0
Unrealized gain (loss), net of tax, recorded as cumulative translation adjustments in Accumulated Other Comprehensive Loss		(106,000)
Euros [Member] \| Designated as Hedging Instrument [Member]
Derivative financial instruments:
Notional principal of foreign exchange contracts		40,100,000
Pounds Sterling [Member] \| Designated as Hedging Instrument [Member]
Derivative financial instruments:
Notional principal of foreign exchange contracts		9,800,000
New Taiwan Dollars [Member] \| Designated as Hedging Instrument [Member]
Derivative financial instruments:
Notional principal of foreign exchange contracts		$ 37,400,000

EQUITY INCENTIVE PLAN (Summary of Stock Option Activity and Related Information) (Details) - Employee Stock Option [Member]	3 Months Ended
	Jan. 31, 2018 $ / shares shares
Stock Options
Outstanding at October 31, 2016 \| shares	78,725
Options granted \| shares	0
Options exercised \| shares	(26,218)
Options cancelled \| shares	0
Outstanding at July 31, 2017 \| shares	52,507
Weighted Average Exercise Price
Outstanding at October 31, 2016 \| $ / shares	$ 20.97
Options granted \| $ / shares	0
Options exercised \| $ / shares	18.76
Options cancelled \| $ / shares	0
Outstanding at July 31, 2017 \| $ / shares	$ 22.07

EQUITY INCENTIVE PLAN (Schedule of Information about Outstanding Stock Options Vested and Currently Exercisable) (Details)	3 Months Ended
	Jan. 31, 2018 USD ($) $ / shares shares
Options Currently Exercisable
Number of outstanding options \| shares	52,507
Weighted average remaining contractual life (years)	3 years 2 months 26 days
Weighted average exercise price per share \| $ / shares	$ 22.07
Intrinsic value of outstanding options \| $	$ 1,211,926

EQUITY INCENTIVE PLAN (Reconciliation of Restricted Stock Activity and Related Information) (Details)	3 Months Ended
	Jan. 31, 2018 $ / shares shares
Number of Shares
Unvested at October 31, 2016 \| shares	157,809
Shares or units granted \| shares	59,799
Shares or units vested \| shares	(25,363)
Shares or units cancelled \| shares	(6,385)
Shares withheld \| shares	(11,706)
Unvested at July 31, 2017 \| shares	174,154
Weighted Average Grant Date Fair Value
Unvested at October 31, 2016 \| $ / shares	$ 32.05
Shares or units granted \| $ / shares	43.41
Shares or units vested \| $ / shares	32.19
Shares or units cancelled \| $ / shares	33.67
Shares withheld \| $ / shares	32.19
Unvested at July 31, 2017 \| $ / shares	$ 35.86

EQUITY INCENTIVE PLAN (Narrative) (Details) - USD ($)			1 Months Ended	3 Months Ended
EQUITY INCENTIVE PLAN (Narrative) (Details) - USD ($)	Jan. 03, 2018	Mar. 09, 2017	Nov. 15, 2017	Jan. 31, 2018	Jan. 31, 2017	Oct. 31, 2017	Mar. 10, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense				$ 549,000	$ 351,000
Unrecognized Stock-based compensation expense				$ 4,200,000
Restricted stock granted				59,799
Grant date fair value of restricted stock				$ 35.86		$ 32.05
Total intrinsic value of stock options exercised				$ 492,000
2016 Equity Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total number of shares of common stock that may be issued as awards under 2016 Plan							856,048
2008 Equity Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares Available for Grant under the 2008 Plan							386,048
Non-Executive Employees [Member] \| TwoThousandSixteenEquityIncentivePlan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted			2,364
Grant date fair value of restricted stock			$ 42.30
Vesting period			3 years
Time Based [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted	14,810
Grant date fair value of restricted stock	$ 42.20
Percentage of incentive compensation arrangement	25.00%
Time Based [Member] \| 2016 Equity Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted	21,891	14,920
Grant date fair value of restricted stock	$ 42.20	$ 26.80
Vesting period		1 year
Performance Based [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted	23,299
Grant date fair value of restricted stock	$ 42.20
Percentage of incentive compensation arrangement	75.00%
Performance Based [Member] \| PSU TSR [Member] \| 2016 Equity Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant date fair value of restricted stock	$ 45.68
Performance Based [Member] \| PSU ROIC [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted	20,734
Percentage of incentive compensation arrangement	40.00%
Performance Based [Member] \| PSU 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%
Performance Based [Member] \| PSU 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%

EARNINGS PER SHARE (Reconciliation of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Jan. 31, 2018	Jan. 31, 2017
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income	$ 2,937	$ 879
Undistributed earnings allocated to participating shares	(21)	(5)
Net income applicable to common shareholders	$ 2,916	$ 874
Weighted average shares outstanding, Basic	6,659	6,583
Stock options and contingently issuable shares	86	85
Weighted average shares outstanding, Diluted	6,745	6,668
Income per share, Basic	$ 0.44	$ 0.13
Income per share, Diluted	$ 0.43	$ 0.13

ACCOUNTS RECEIVABLE (Narrative) (Details) - USD ($)	Jan. 31, 2018	Oct. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for Doubtful Accounts Receivable	$ 797,000	$ 639,000

INVENTORIES (Schedule Of Inventory Current) (Details) - USD ($) $ in Thousands	Jan. 31, 2018	Oct. 31, 2017
Inventory [Line Items]
Purchased parts and sub-assemblies	$ 38,315	$ 33,045
Work-in-process	22,040	20,008
Finished goods	71,171	66,895
Inventories	$ 131,526	$ 119,948

GUARANTEES AND PRODUCT WARRANTIES (Reconciliation of the changes in our warranty reserve) (Details) - USD ($) $ in Thousands	3 Months Ended
	Jan. 31, 2018	Jan. 31, 2017
Product Warranty Liability [Line Items]
Balance, beginning of period	$ 1,772	$ 1,523
Provision for warranties during the period	980	806
Charges to the reserve	(771)	(790)
Impact of foreign currency translation	62	(6)
Balance, end of period	$ 2,043	$ 1,533

GUARANTEES AND PRODUCT WARRANTIES (Narrative) (Details) $ in Millions	3 Months Ended
	Jan. 31, 2018 USD ($)
Product Warranty Liability [Line Items]
Number Of Guarantees	27
Guarantor Obligations, Maximum Exposure, Undiscounted	$ 1.0
Term of Product Warranty	1 year

DEBT AGREEMENTS (Narrative) (Details) € in Millions, ¥ in Millions, £ in Millions, $ in Millions			1 Months Ended	3 Months Ended
	Dec. 06, 2016 USD ($)	Dec. 07, 2012 USD ($)	Feb. 16, 2017 USD ($)	Jan. 31, 2018 USD ($)	Jan. 31, 2018 GBP (£)	Jan. 31, 2018 EUR (€)	Oct. 31, 2017	Feb. 16, 2017 CNY (¥)	Feb. 15, 2017 CNY (¥)	Dec. 05, 2016 USD ($)
Line of Credit Facility [Line Items]
Borrowings available under credit facility				$ 19.9
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										90.0
Minimum tangible net worth requirement										$ 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			$ 3.2					¥ 20.0	¥ 40.0
Line of credit, maturity date			Feb. 13, 2019
Interest rate				4.40%	4.40%	4.40%	4.40%
Line of credit amount outstanding				$ 1.6

INCOME TAXES (Narrative) (Details) - USD ($)	3 Months Ended		12 Months Ended
INCOME TAXES (Narrative) (Details) - USD ($)	Jan. 31, 2018	Jan. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Oct. 31, 2017
Income Tax Contingency [Line Items]
Unrecognized tax benefits, interest accrued	$ 58,000
Effective Income Tax Rate Reconciliation, Percent, Total	61.00%	38.00%
Income Tax Expense (Benefit)	$ 4,500,000	$ 543,000
Unrecognized Tax Benefits, Ending Balance	1,200,000				$ 1,200,000
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent				35.00%
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount	2,500,000
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount	400,000
Increase (Decrease) in Income Taxes	400,000
Increase Decrease In Net Deferred Tax Assets	$ 400,000
Scenario, Plan [Member]
Income Tax Contingency [Line Items]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent			21.00%

FINANCIAL INSTRUMENTS (Fair value hierarchy) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	Jan. 31, 2018	Oct. 31, 2017
Level 1 [Member]
Assets
Deferred Compensation	$ 1,739	$ 1,638
Liabilities
Deferred Compensation	0	0
Level 2 [Member]
Assets
Derivatives	1,364	596
Liabilities
Derivatives	$ 4,156	$ 1,732

- 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 ($) $ in Millions	Jan. 31, 2018	Oct. 31, 2017
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notional amount of contracts	$ 149.1	$ 134.3