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<tr style="vertical-align: top;">
<td style="width: 0.25in; font-family: 'times new roman';">2.</td>
<td style="text-align: justify; font-family: 'times new roman';">DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES</td>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;">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 in which we enter into derivative instruments in the form of foreign currency forward exchange contracts with a major financial institution.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;">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 which 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, Canadian Dollars, South African Rand, Singapore Dollars, Indian Rupee, Chinese Yuan, South Korean Won, Polish Zloty, and New Taiwan Dollars. We record all derivative instruments as assets or liabilities at fair value.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"><font style="text-decoration: underline;">Derivatives Designated as Hedging Instruments</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;">We enter into foreign currency forward exchange contracts periodically to hedge certain forecasted inter-company sales and purchases denominated in foreign currencies (the Pound Sterling, Euro and New Taiwan Dollar). The purpose of these instruments is to mitigate the risk that the U.S. Dollar net cash inflows and outflows resulting from sales and purchases denominated in foreign currencies will be adversely affected by changes in exchange rates. These forward contracts have been designated as cash flow hedge instruments, and are recorded in the Condensed Consolidated Balance Sheets at fair value in Derivative assets and Derivative liabilities. The effective portion of the gains and losses resulting from the changes in the fair value of these hedge contracts are deferred in Accumulated other comprehensive loss and recognized as an adjustment to Cost of sales and service in the period that the corresponding inventory sold that is the subject of the related hedge contract is recognized, thereby providing an offsetting economic impact against the corresponding change in the U.S. Dollar value of the inter-company sale or purchase being hedged. The ineffective portion of gains and losses resulting from the changes in the fair value of these hedge contracts is reported in Other expense, net immediately. We perform quarterly assessments of hedge effectiveness by verifying and documenting the critical terms of the hedge instrument and determining that forecasted transactions have not changed significantly. We also assess on a quarterly basis whether there have been adverse developments regarding the risk of a counterparty default.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;">We had forward contracts outstanding as of January 31, 2015, denominated in Euros, Pounds Sterling and New Taiwan Dollars with set maturity dates ranging from <font>February 2015</font> through <font>January 2016</font>. The contract amounts, expressed at forward rates in U.S. Dollars at January 31, 2015, were $<font>25.9</font> million for Euros, $<font>10.8</font> million for Pounds Sterling and $<font>19.1</font> million for New Taiwan Dollars. At January 31, 2015, we had approximately $<font>2.9</font> million of gains, net of tax, related to cash flow hedges deferred in Accumulated other comprehensive loss. Included in this amount were $<font>2.2</font> million of unrealized gains, net of tax, related to cash flow hedge instruments that remain subject to currency fluctuation risk. The majority of these deferred gains will be recorded as an adjustment to Cost of sales and service in periods through January 2016, when the corresponding inventory that is the subject of the related hedge contracts is sold, as described above.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;">We are exposed to foreign currency exchange risk related to our investment in net assets in foreign countries. To manage this risk, we have we entered into a forward contract with a notional amount of €<font>3.0</font> million in November 2014. We designated this forward contract as a hedge of our net investment in Euro denominated assets. We selected the forward method under Financial Accounting Standards Board, or FASB, guidance related to the accounting for derivatives instruments and hedging activities. The forward method requires all changes in the fair value of the contract to be reported as a cumulative translation adjustment in Accumulated other comprehensive loss, net of tax, in the same manner as the underlying hedged net assets. This forward contract matures in November 2015. As of January 31, 2015, we had $<font>452,000</font> of realized gains and $<font>220,000</font> of unrealized gains, net of tax, recorded as cumulative translation adjustments in Accumulated other comprehensive loss related to these forward contracts.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"><font style="text-decoration: underline;">Derivatives Not Designated as Hedging Instruments</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;">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 the FASB guidance and, as a result, changes in their fair value are reported currently as Other 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.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;">We had forward contracts outstanding as of January 31, 2015, in Euros, Pounds Sterling, Canadian Dollars, the South African Rand, and the New Taiwan Dollar with set maturity dates ranging from <font>February 2015</font> through <font>April 2015</font>. The contract amounts at forward rates in U.S. Dollars at January 31, 2015 totaled $<font>49.9</font> million.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0;"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"><font style="text-decoration: underline;">Fair Value of Derivative Instruments</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;">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, 2015 and October 31, 2014, all derivative instruments were recorded at fair value on the balance sheets as follows (in thousands):</p>
<div>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> <br/></p>
<table style="font: 10pt/normal Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; font-size-adjust: none; font-stretch: normal;" cellspacing="0" cellpadding="0" width="100%">
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<td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"> </td>
<td nowrap="nowrap" style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="5">January 31, 2015</td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"> </td>
<td nowrap="nowrap" style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="5">October 31, 2014</td>
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<td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="font-weight: bold;"> </td>
<td nowrap="nowrap" style="text-align: center; font-weight: bold;">Balance Sheet</td>
<td nowrap="nowrap" style="font-weight: bold;"> </td>
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<td nowrap="nowrap" style="font-weight: bold;"> </td>
<td nowrap="nowrap" style="font-weight: bold;"> </td>
<td nowrap="nowrap" style="text-align: center; font-weight: bold;">Balance Sheet</td>
<td nowrap="nowrap" style="font-weight: bold;"> </td>
<td nowrap="nowrap" style="text-align: center; font-weight: bold;" colspan="2">Fair</td>
<td nowrap="nowrap" style="font-weight: bold;"> </td>
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<td nowrap="nowrap" style="font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">Derivatives</td>
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<td nowrap="nowrap" style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">Location</td>
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<td nowrap="nowrap" style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2">Value</td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"> </td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"> </td>
<td nowrap="nowrap" style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">Location</td>
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<td nowrap="nowrap" style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2">Value</td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-decoration: underline;">Designated as hedging instruments:</td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="width: 36%; text-align: left; padding-left: 9pt;">Foreign exchange forward contracts</td>
<td style="width: 1%;"> </td>
<td style="width: 18%; text-align: left;">Derivative assets</td>
<td style="width: 1%;"> </td>
<td style="width: 1%; text-align: left;">$</td>
<td style="width: 10%; text-align: right;"><font>4,738</font></td>
<td style="width: 1%; text-align: left;"> </td>
<td style="width: 1%;"> </td>
<td style="width: 18%; text-align: left;">Derivative assets</td>
<td style="width: 1%;"> </td>
<td style="width: 1%; text-align: left;">$</td>
<td style="width: 10%; text-align: right;"><font>2,596</font></td>
<td style="width: 1%; text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; padding-left: 9pt;">Foreign exchange forward contracts</td>
<td> </td>
<td style="text-align: left;">Derivative liabilities</td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;"><font>954</font></td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;">Derivative liabilities</td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;"><font>401</font></td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-decoration: underline;">Not designated as hedging instruments:</td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; padding-left: 9pt;">Foreign exchange forward contracts</td>
<td> </td>
<td style="text-align: left;">Derivative assets</td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;"><font>2,717</font></td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;">Derivative assets</td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;"><font>531</font></td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; padding-left: 9pt;">Foreign exchange forward contracts</td>
<td> </td>
<td style="text-align: left;">Derivative liabilities</td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;"><font>315</font></td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;">Derivative liabilities</td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;"><font>304</font></td>
<td style="text-align: left;"></td>
</tr>
</table>
</div>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"><font style="text-decoration: underline;"></font><br/></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"><font style="text-decoration: underline;">Effect of Derivative Instruments on the Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Changes in Shareholders' Equity and Condensed Consolidated Statements of Income</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;">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, 2015 and 2014 (in thousands):</p>
<div>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"><br/></p>
<table style="font: 10pt/normal Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; font-size-adjust: none; font-stretch: normal;" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;">
<td nowrap="nowrap" style="font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">Derivatives</td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"> </td>
<td nowrap="nowrap" style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6">Amount of Gain <br/>(Loss) Recognition in <br/>Other Comprehensive <br/>Income</td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"> </td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"> </td>
<td nowrap="nowrap" style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">Location of <br/>Gain (Loss) <br/>Reclassified <br/>from Other <br/>Comprehensive <br/>Income</td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"> </td>
<td nowrap="nowrap" style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6">Amount of Gain <br/>(Loss) Reclassified <br/>from Other <br/>Comprehensive <br/>Income</td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"> </td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap" style="text-align: left; font-size: 1pt;"> </td>
<td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: center;" colspan="6">Three Months Ended <br/>January 31,</td>
<td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="font-size: 1pt;"> </td>
<td nowrap="nowrap" style="text-align: left; font-size: 1pt;"> </td>
<td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: center;" colspan="6">Three Months Ended <br/>January 31,</td>
<td nowrap="nowrap"> </td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap" style="text-align: center; font-weight: bold;"> </td>
<td nowrap="nowrap" style="padding-bottom: 1pt;"> </td>
<td nowrap="nowrap" style="text-align: center; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2">2015</td>
<td nowrap="nowrap" style="padding-bottom: 1pt;"> </td>
<td nowrap="nowrap" style="padding-bottom: 1pt;"> </td>
<td nowrap="nowrap" style="text-align: center; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2">2014</td>
<td nowrap="nowrap" style="padding-bottom: 1pt;"> </td>
<td nowrap="nowrap" style="padding-bottom: 1pt;"> </td>
<td nowrap="nowrap" style="text-align: center;"> </td>
<td nowrap="nowrap" style="padding-bottom: 1pt;"> </td>
<td nowrap="nowrap" style="text-align: center; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2">2015</td>
<td nowrap="nowrap" style="padding-bottom: 1pt;"> </td>
<td nowrap="nowrap" style="padding-bottom: 1pt;"> </td>
<td nowrap="nowrap" style="text-align: center; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2">2014</td>
<td nowrap="nowrap" style="padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; font-style: normal; font-weight: normal; text-decoration: none;"><u>Designated as hedging instruments: </u><font style="font-style: normal; font-weight: normal;"><br/> (Effective portion)</font></td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="width: 35%; text-align: left;">Foreign exchange forward contracts – Intercompany sales/purchases</td>
<td style="width: 1%;"> </td>
<td style="width: 1%; text-align: left;">$</td>
<td style="width: 10%; text-align: right;"><font>1,556</font></td>
<td style="width: 1%; text-align: left;"> </td>
<td style="width: 1%;"> </td>
<td style="width: 1%; text-align: left;">$</td>
<td style="width: 10%; text-align: right;"><font>(441</font></td>
<td style="width: 1%; text-align: left;">)</td>
<td style="width: 1%;"> </td>
<td style="width: 12%; text-align: left;">Cost of sales and service</td>
<td style="width: 1%;"> </td>
<td style="width: 1%; text-align: left;">$</td>
<td style="width: 10%; text-align: right;"><font>(364</font></td>
<td style="width: 1%; text-align: left;">)</td>
<td style="width: 1%;"> </td>
<td style="width: 1%; text-align: left;">$</td>
<td style="width: 10%; text-align: right;"><font>(256</font></td>
<td style="width: 1%; text-align: left;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left;">Foreign exchange forward contract – Net investment</td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;"><font>239</font></td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;"><font>20</font></td>
<td style="text-align: left;"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0px; font-size-adjust: none; font-stretch: normal;"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;">We did not recognize gains or losses as a result of hedges deemed ineffective for the three months ended January 31, 2015. We recognized a loss of $<font>19,000</font> for the three months ended January 31, 2014 as a result of contracts closed early that were deemed ineffective for financial reporting purposes and did not qualify as cash flow hedges. We recognized the following gains and losses in our Condensed Consolidated Statements of Income during the three months ended January 31, 2015 and 2014 on derivative instruments not designated as hedging instruments:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font-style: normal; font-variant: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; font-family: 'times new roman', times, serif; width: 100%;">
<tr style="vertical-align: bottom;">
<td nowrap="nowrap" style="font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px;"><strong>Derivatives</strong></td>
<td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td>
<td nowrap="nowrap" style="text-align: center; border-bottom: #000000 1pt solid !important; padding: 0px;"><strong>Location of Gain <br/>(Loss) Recognized <br/>in Operations</strong></td>
<td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td>
<td colspan="6" nowrap="nowrap" style="text-align: center; border-bottom: #000000 1pt solid !important; padding: 0px;"><strong>Amount of Gain (Loss) <br/>Recognized in Operations</strong></td>
<td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td>
</tr>
<tr style="vertical-align: bottom;">
<td style="font-family: 'Times New Roman';" nowrap="nowrap"></td>
<td style="font-family: 'Times New Roman';" nowrap="nowrap"></td>
<td style="font-family: 'Times New Roman';" nowrap="nowrap"></td>
<td style="font-family: 'Times New Roman';" nowrap="nowrap"></td>
<td style="text-align: center; padding: 0px;" colspan="6" nowrap="nowrap">Three Months Ended <br/>January 31,</td>
<td style="font-family: 'Times New Roman';" nowrap="nowrap"></td>
</tr>
<tr style="vertical-align: bottom;">
<td style="font-family: 'Times New Roman';" nowrap="nowrap"></td>
<td style="font-family: 'times new roman'; padding: 0px;" nowrap="nowrap"></td>
<td style="font-family: 'Times New Roman';" nowrap="nowrap"></td>
<td style="font-family: 'times new roman'; padding: 0px;" nowrap="nowrap"></td>
<td style="text-align: center; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px;" colspan="2" nowrap="nowrap">2015</td>
<td style="font-family: 'times new roman'; padding: 0px;" nowrap="nowrap"></td>
<td style="font-family: 'times new roman'; padding: 0px;" nowrap="nowrap"> </td>
<td style="text-align: center; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px;" colspan="6" nowrap="nowrap">2014</td>
<td style="font-family: 'times new roman'; padding: 0px;" nowrap="nowrap"> </td>
</tr>
<tr style="vertical-align: bottom;">
<td style="font-family: 'Times New Roman';"></td>
<td style="font-family: 'Times New Roman';"></td>
<td style="font-family: 'Times New Roman';"></td>
<td style="font-family: 'Times New Roman';"></td>
<td style="text-align: center; font-family: 'times new roman'; padding: 0px;" colspan="6">(in thousands)</td>
<td style="font-family: 'Times New Roman';"></td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-decoration: underline; text-align: left; font-family: 'times new roman'; padding: 0px;">Not Designated as Hedging Instruments:</td>
<td style="font-family: 'Times New Roman';"> </td>
<td style="font-family: 'Times New Roman';"> </td>
<td style="font-family: 'Times New Roman';"> </td>
<td style="text-align: left; font-family: 'times new roman'; padding: 0px;"> </td>
<td style="text-align: right; font-family: 'times new roman'; padding: 0px;"> </td>
<td style="text-align: left; font-family: 'times new roman'; padding: 0px;"> </td>
<td style="font-family: 'Times New Roman';"> </td>
<td style="text-align: left; font-family: 'times new roman'; padding: 0px;"> </td>
<td style="text-align: right; font-family: 'times new roman'; padding: 0px;"> </td>
<td style="text-align: left; font-family: 'times new roman'; padding: 0px;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; font-family: 'times new roman'; padding: 0px;" width="50%">Foreign exchange forward contracts</td>
<td style="font-family: 'times new roman'; padding: 0px;"> </td>
<td style="text-align: left; font-family: 'times new roman'; padding: 0px;">Other expense, net</td>
<td style="font-family: 'times new roman'; padding: 0px;"> </td>
<td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td>
<td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>2,712</font></td>
<td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td>
<td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td>
<td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td>
<td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>(38</font></td>
<td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">)</td>
</tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in;"><i> </i></p>
</div>
<div>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0px; text-align: justify; text-indent: 0in; font-size-adjust: none; font-stretch: normal;"><br/></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0px; text-align: justify; text-indent: 0in; font-size-adjust: none; font-stretch: normal;">The following table presents the changes in the components of Accumulated other comprehensive loss, net of tax, for the three months ended January 31, 2015 (in thousands):</p>
<div>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0px; text-align: justify; text-indent: 0in; font-size-adjust: none; font-stretch: normal;"><br/></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0px; text-align: justify; text-indent: 0in; font-size-adjust: none; font-stretch: normal;"> </p>
<table style="font: 10pt/normal Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; font-size-adjust: none; font-stretch: normal;" cellspacing="0" cellpadding="0" width="100%">
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"> </td>
<td nowrap="nowrap" style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2">Foreign <br/>Currency <br/>Translation</td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"> </td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"> </td>
<td nowrap="nowrap" style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2">Cash <br/>Flow <br/>Hedges</td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"> </td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"> </td>
<td nowrap="nowrap" style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2">Total</td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"> </td>
</tr>
<tr style="vertical-align: bottom;">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="width: 61%;">Balance, October 31, 2014</td>
<td style="width: 1%;"> </td>
<td style="width: 1%; text-align: left;">$</td>
<td style="width: 10%; text-align: right;"><font>(4,551</font></td>
<td style="width: 1%; text-align: left;">)</td>
<td style="width: 1%;"> </td>
<td style="width: 1%; text-align: left;">$</td>
<td style="width: 10%; text-align: right;"><font>991</font></td>
<td style="width: 1%; text-align: left;"> </td>
<td style="width: 1%;"> </td>
<td style="width: 1%; text-align: left;">$</td>
<td style="width: 10%; text-align: right;"><font>(3,560</font></td>
<td style="width: 1%; text-align: left;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left;">Other comprehensive income (loss) before reclassifications</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"><font>(5,056</font></td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"><font>1,556</font></td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"><font>(3,500</font></td>
<td style="text-align: left;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="padding-bottom: 1pt;">Reclassifications</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font>—</font></td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font>364</font></td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font>364</font></td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="padding-bottom: 2.5pt;">Balance, January 31, 2015</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font>(9,607</font></td>
<td style="text-align: left; padding-bottom: 2.5pt;">)</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font>2,911</font></td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font>(6,696</font></td>
<td style="text-align: left; padding-bottom: 2.5pt;">)</td>
</tr>
</table>
</div>
</div>
</div>
<div id='EdgarSAA123457890000' style="font-family : 'Times New Roman';">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> <br/></p>
<table style="font: 10pt/normal Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; font-size-adjust: none; font-stretch: normal;" cellspacing="0" cellpadding="0" width="100%">
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"> </td>
<td nowrap="nowrap" style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="5">January 31, 2015</td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"> </td>
<td nowrap="nowrap" style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="5">October 31, 2014</td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="font-weight: bold;"> </td>
<td nowrap="nowrap" style="text-align: center; font-weight: bold;">Balance Sheet</td>
<td nowrap="nowrap" style="font-weight: bold;"> </td>
<td nowrap="nowrap" style="text-align: center; font-weight: bold;" colspan="2">Fair</td>
<td nowrap="nowrap" style="font-weight: bold;"> </td>
<td nowrap="nowrap" style="font-weight: bold;"> </td>
<td nowrap="nowrap" style="text-align: center; font-weight: bold;">Balance Sheet</td>
<td nowrap="nowrap" style="font-weight: bold;"> </td>
<td nowrap="nowrap" style="text-align: center; font-weight: bold;" colspan="2">Fair</td>
<td nowrap="nowrap" style="font-weight: bold;"> </td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap" style="font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">Derivatives</td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"> </td>
<td nowrap="nowrap" style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">Location</td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"> </td>
<td nowrap="nowrap" style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2">Value</td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"> </td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"> </td>
<td nowrap="nowrap" style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">Location</td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"> </td>
<td nowrap="nowrap" style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2">Value</td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; text-decoration: underline;">Designated as hedging instruments:</td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="width: 36%; text-align: left; padding-left: 9pt;">Foreign exchange forward contracts</td>
<td style="width: 1%;"> </td>
<td style="width: 18%; text-align: left;">Derivative assets</td>
<td style="width: 1%;"> </td>
<td style="width: 1%; text-align: left;">$</td>
<td style="width: 10%; text-align: right;"><font>4,738</font></td>
<td style="width: 1%; text-align: left;"> </td>
<td style="width: 1%;"> </td>
<td style="width: 18%; text-align: left;">Derivative assets</td>
<td style="width: 1%;"> </td>
<td style="width: 1%; text-align: left;">$</td>
<td style="width: 10%; text-align: right;"><font>2,596</font></td>
<td style="width: 1%; text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; padding-left: 9pt;">Foreign exchange forward contracts</td>
<td> </td>
<td style="text-align: left;">Derivative liabilities</td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;"><font>954</font></td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;">Derivative liabilities</td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;"><font>401</font></td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-decoration: underline;">Not designated as hedging instruments:</td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; padding-left: 9pt;">Foreign exchange forward contracts</td>
<td> </td>
<td style="text-align: left;">Derivative assets</td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;"><font>2,717</font></td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;">Derivative assets</td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;"><font>531</font></td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; padding-left: 9pt;">Foreign exchange forward contracts</td>
<td> </td>
<td style="text-align: left;">Derivative liabilities</td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;"><font>315</font></td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;">Derivative liabilities</td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;"><font>304</font></td>
<td style="text-align: left;"></td>
</tr>
</table>
</div>
239000
20000
-364000
<div id='EdgarSAA123457890000' style="font-family : 'Times New Roman';">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"><br/></p>
<table style="font: 10pt/normal Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; font-size-adjust: none; font-stretch: normal;" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;">
<td nowrap="nowrap" style="font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">Derivatives</td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"> </td>
<td nowrap="nowrap" style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6">Amount of Gain <br/>(Loss) Recognition in <br/>Other Comprehensive <br/>Income</td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"> </td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"> </td>
<td nowrap="nowrap" style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">Location of <br/>Gain (Loss) <br/>Reclassified <br/>from Other <br/>Comprehensive <br/>Income</td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"> </td>
<td nowrap="nowrap" style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6">Amount of Gain <br/>(Loss) Reclassified <br/>from Other <br/>Comprehensive <br/>Income</td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"> </td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap" style="text-align: left; font-size: 1pt;"> </td>
<td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: center;" colspan="6">Three Months Ended <br/>January 31,</td>
<td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="font-size: 1pt;"> </td>
<td nowrap="nowrap" style="text-align: left; font-size: 1pt;"> </td>
<td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="text-align: center;" colspan="6">Three Months Ended <br/>January 31,</td>
<td nowrap="nowrap"> </td>
</tr>
<tr style="vertical-align: bottom;">
<td nowrap="nowrap" style="text-align: center; font-weight: bold;"> </td>
<td nowrap="nowrap" style="padding-bottom: 1pt;"> </td>
<td nowrap="nowrap" style="text-align: center; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2">2015</td>
<td nowrap="nowrap" style="padding-bottom: 1pt;"> </td>
<td nowrap="nowrap" style="padding-bottom: 1pt;"> </td>
<td nowrap="nowrap" style="text-align: center; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2">2014</td>
<td nowrap="nowrap" style="padding-bottom: 1pt;"> </td>
<td nowrap="nowrap" style="padding-bottom: 1pt;"> </td>
<td nowrap="nowrap" style="text-align: center;"> </td>
<td nowrap="nowrap" style="padding-bottom: 1pt;"> </td>
<td nowrap="nowrap" style="text-align: center; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2">2015</td>
<td nowrap="nowrap" style="padding-bottom: 1pt;"> </td>
<td nowrap="nowrap" style="padding-bottom: 1pt;"> </td>
<td nowrap="nowrap" style="text-align: center; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2">2014</td>
<td nowrap="nowrap" style="padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; font-style: normal; font-weight: normal; text-decoration: none;"><u>Designated as hedging instruments: </u><font style="font-style: normal; font-weight: normal;"><br/> (Effective portion)</font></td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="width: 35%; text-align: left;">Foreign exchange forward contracts – Intercompany sales/purchases</td>
<td style="width: 1%;"> </td>
<td style="width: 1%; text-align: left;">$</td>
<td style="width: 10%; text-align: right;"><font>1,556</font></td>
<td style="width: 1%; text-align: left;"> </td>
<td style="width: 1%;"> </td>
<td style="width: 1%; text-align: left;">$</td>
<td style="width: 10%; text-align: right;"><font>(441</font></td>
<td style="width: 1%; text-align: left;">)</td>
<td style="width: 1%;"> </td>
<td style="width: 12%; text-align: left;">Cost of sales and service</td>
<td style="width: 1%;"> </td>
<td style="width: 1%; text-align: left;">$</td>
<td style="width: 10%; text-align: right;"><font>(364</font></td>
<td style="width: 1%; text-align: left;">)</td>
<td style="width: 1%;"> </td>
<td style="width: 1%; text-align: left;">$</td>
<td style="width: 10%; text-align: right;"><font>(256</font></td>
<td style="width: 1%; text-align: left;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left;">Foreign exchange forward contract – Net investment</td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;"><font>239</font></td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;"><font>20</font></td>
<td style="text-align: left;"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0px; font-size-adjust: none; font-stretch: normal;"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;">We did not recognize gains or losses as a result of hedges deemed ineffective for the three months ended January 31, 2015. We recognized a loss of $<font>19,000</font> for the three months ended January 31, 2014 as a result of contracts closed early that were deemed ineffective for financial reporting purposes and did not qualify as cash flow hedges. We recognized the following gains and losses in our Condensed Consolidated Statements of Income during the three months ended January 31, 2015 and 2014 on derivative instruments not designated as hedging instruments:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font-style: normal; font-variant: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; font-family: 'times new roman', times, serif; width: 100%;">
<tr style="vertical-align: bottom;">
<td nowrap="nowrap" style="font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px;"><strong>Derivatives</strong></td>
<td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td>
<td nowrap="nowrap" style="text-align: center; border-bottom: #000000 1pt solid !important; padding: 0px;"><strong>Location of Gain <br/>(Loss) Recognized <br/>in Operations</strong></td>
<td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td>
<td colspan="6" nowrap="nowrap" style="text-align: center; border-bottom: #000000 1pt solid !important; padding: 0px;"><strong>Amount of Gain (Loss) <br/>Recognized in Operations</strong></td>
<td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td>
</tr>
<tr style="vertical-align: bottom;">
<td style="font-family: 'Times New Roman';" nowrap="nowrap"></td>
<td style="font-family: 'Times New Roman';" nowrap="nowrap"></td>
<td style="font-family: 'Times New Roman';" nowrap="nowrap"></td>
<td style="font-family: 'Times New Roman';" nowrap="nowrap"></td>
<td style="text-align: center; padding: 0px;" colspan="6" nowrap="nowrap">Three Months Ended <br/>January 31,</td>
<td style="font-family: 'Times New Roman';" nowrap="nowrap"></td>
</tr>
<tr style="vertical-align: bottom;">
<td style="font-family: 'Times New Roman';" nowrap="nowrap"></td>
<td style="font-family: 'times new roman'; padding: 0px;" nowrap="nowrap"></td>
<td style="font-family: 'Times New Roman';" nowrap="nowrap"></td>
<td style="font-family: 'times new roman'; padding: 0px;" nowrap="nowrap"></td>
<td style="text-align: center; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px;" colspan="2" nowrap="nowrap">2015</td>
<td style="font-family: 'times new roman'; padding: 0px;" nowrap="nowrap"></td>
<td style="font-family: 'times new roman'; padding: 0px;" nowrap="nowrap"> </td>
<td style="text-align: center; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px;" colspan="6" nowrap="nowrap">2014</td>
<td style="font-family: 'times new roman'; padding: 0px;" nowrap="nowrap"> </td>
</tr>
<tr style="vertical-align: bottom;">
<td style="font-family: 'Times New Roman';"></td>
<td style="font-family: 'Times New Roman';"></td>
<td style="font-family: 'Times New Roman';"></td>
<td style="font-family: 'Times New Roman';"></td>
<td style="text-align: center; font-family: 'times new roman'; padding: 0px;" colspan="6">(in thousands)</td>
<td style="font-family: 'Times New Roman';"></td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-decoration: underline; text-align: left; font-family: 'times new roman'; padding: 0px;">Not Designated as Hedging Instruments:</td>
<td style="font-family: 'Times New Roman';"> </td>
<td style="font-family: 'Times New Roman';"> </td>
<td style="font-family: 'Times New Roman';"> </td>
<td style="text-align: left; font-family: 'times new roman'; padding: 0px;"> </td>
<td style="text-align: right; font-family: 'times new roman'; padding: 0px;"> </td>
<td style="text-align: left; font-family: 'times new roman'; padding: 0px;"> </td>
<td style="font-family: 'Times New Roman';"> </td>
<td style="text-align: left; font-family: 'times new roman'; padding: 0px;"> </td>
<td style="text-align: right; font-family: 'times new roman'; padding: 0px;"> </td>
<td style="text-align: left; font-family: 'times new roman'; padding: 0px;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; font-family: 'times new roman'; padding: 0px;" width="50%">Foreign exchange forward contracts</td>
<td style="font-family: 'times new roman'; padding: 0px;"> </td>
<td style="text-align: left; font-family: 'times new roman'; padding: 0px;">Other expense, net</td>
<td style="font-family: 'times new roman'; padding: 0px;"> </td>
<td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td>
<td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>2,712</font></td>
<td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td>
<td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td>
<td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td>
<td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>(38</font></td>
<td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">)</td>
</tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in;"><i> </i></p>
</div>
2015-04-30
2015-02-28
2016-01-31
2015-02-28
4738000
954000
2717000
315000
2596000
401000
-256000
-4551000
-5056000
-9607000
991000
1556000
-364000
2911000
-3500000
<div id='EdgarSAA123457890000' style="font-family : 'Times New Roman';">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0px; text-align: justify; text-indent: 0in; font-size-adjust: none; font-stretch: normal;"><br/></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0px; text-align: justify; text-indent: 0in; font-size-adjust: none; font-stretch: normal;"> </p>
<table style="font: 10pt/normal Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; font-size-adjust: none; font-stretch: normal;" cellspacing="0" cellpadding="0" width="100%">
<tr style="vertical-align: bottom;">
<td nowrap="nowrap"> </td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"> </td>
<td nowrap="nowrap" style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2">Foreign <br/>Currency <br/>Translation</td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"> </td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"> </td>
<td nowrap="nowrap" style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2">Cash <br/>Flow <br/>Hedges</td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"> </td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"> </td>
<td nowrap="nowrap" style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2">Total</td>
<td nowrap="nowrap" style="padding-bottom: 1pt; font-weight: bold;"> </td>
</tr>
<tr style="vertical-align: bottom;">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="width: 61%;">Balance, October 31, 2014</td>
<td style="width: 1%;"> </td>
<td style="width: 1%; text-align: left;">$</td>
<td style="width: 10%; text-align: right;"><font>(4,551</font></td>
<td style="width: 1%; text-align: left;">)</td>
<td style="width: 1%;"> </td>
<td style="width: 1%; text-align: left;">$</td>
<td style="width: 10%; text-align: right;"><font>991</font></td>
<td style="width: 1%; text-align: left;"> </td>
<td style="width: 1%;"> </td>
<td style="width: 1%; text-align: left;">$</td>
<td style="width: 10%; text-align: right;"><font>(3,560</font></td>
<td style="width: 1%; text-align: left;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left;">Other comprehensive income (loss) before reclassifications</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"><font>(5,056</font></td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"><font>1,556</font></td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"><font>(3,500</font></td>
<td style="text-align: left;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="padding-bottom: 1pt;">Reclassifications</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font>—</font></td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font>364</font></td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"><font>364</font></td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="padding-bottom: 2.5pt;">Balance, January 31, 2015</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font>(9,607</font></td>
<td style="text-align: left; padding-bottom: 2.5pt;">)</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font>2,911</font></td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;"><font>(6,696</font></td>
<td style="text-align: left; padding-bottom: 2.5pt;">)</td>
</tr>
</table>
</div>
21.07
115389
108440
P5Y10M24D
P5Y5M8D
<div id='EdgarSAA123457890000' style="font-family : 'Times New Roman';"> <table cellpadding="0" cellspacing="0" style="font-style: normal; font-variant: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; font-family: 'times new roman', times, serif; margin-top: 0px; margin-bottom: 0px; width: 100%;"> <tr style="vertical-align: top;"> <td style="width: 0.25in; font-family: 'times new roman';">3.</td> <td style="font-family: 'Times New Roman';">EQUITY INCENTIVE PLAN</td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;">In March 2008, we adopted the Hurco Companies, Inc. 2008 Equity Incentive Plan (the “2008 Plan”), which allows us to grant awards of stock options, Stock Appreciation Rights settled in stock (SARs), restricted shares, performance shares and performance units. The 2008 Plan replaced the 1997 Stock Option and Incentive Plan, which expired in March 2007. The Compensation Committee of the Board of Directors has authority to determine the officers, directors and key employees who will be granted awards; designate the number of shares subject to each award; determine the terms and conditions upon which awards will be granted; and prescribe the form and terms of award agreements. We have granted stock options under both plans which are currently outstanding, and restricted shares and performance shares under the 2008 Plan. No stock option may be exercised more than <font>ten</font> years after the date of grant or such shorter period as the Compensation Committee may determine at the date of grant. The total number of shares of our common stock that may be issued as awards under the 2008 Plan is <font>750,000</font>. The market value of a share of our common stock, for purposes of the 2008 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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;">A summary of stock option activity for the three-month period ended January 31, 2015, is as follows:</p><div> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p> <table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; font-style: normal; font-variant: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; font-family: 'times new roman', times, serif; width: 100%;"> <tr style="vertical-align: bottom;"> <td style="font-family: 'Times New Roman';" nowrap="nowrap"></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td colspan="2" nowrap="nowrap" style="text-align: center; border-bottom: #000000 1pt solid !important; padding: 0px;"><strong>Stock <br/>Options</strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td colspan="5" nowrap="nowrap" style="text-align: center; border-bottom: #000000 1pt solid !important; padding: 0px;"><strong>Weighted <br/>Average <br/>Exercise <br/>Price</strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> </tr> <tr style="vertical-align: bottom;"> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"></td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top;" colspan="2"></td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top;" colspan="2"> </td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="font-family: 'times new roman'; padding: 0px;" width="100%">Outstanding at October 31, 2014</td> <td style="font-family: 'times new roman'; padding: 0px;"></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px;"></td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>128,189</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>20.45</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="vertical-align: top; text-align: left; white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; font-family: 'times new roman'; padding: 0px;" width="100%">Options granted</td> <td style="font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>—</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>—</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; font-family: 'times new roman'; padding: 0px;" width="100%">Options exercised</td> <td style="font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>(12,800</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">)</td> <td style="white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>14.88</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; font-family: 'times new roman'; padding: 0px;" width="100%">Options cancelled</td> <td style="font-family: 'times new roman'; padding: 0px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px;"> </td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>—</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 1pt solid !important; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>—</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 1pt solid !important; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="vertical-align: top; text-align: left; white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="font-family: 'times new roman'; padding: 0px;" width="100%">Outstanding at January 31, 2015</td> <td style="font-family: 'times new roman'; padding: 0px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 2.80pt double !important; padding: 0px;"> </td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 2.80pt double !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>115,389</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 2.80pt double !important; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 2.80pt double !important; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 2.80pt double !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>21.07</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 2.80pt double !important; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> </table></div> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;">Summarized information about outstanding stock options as of January 31, 2015, that have already vested and those that are expected to vest, as well as stock options that are currently exercisable, are as follows:</p><div> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0;"> </p> <table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; font-style: normal; font-variant: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; font-family: 'times new roman', times, serif; width: 100%;"> <tr style="vertical-align: bottom;"> <td style="text-align: justify; font-family: 'times new roman'; padding: 0px;" nowrap="nowrap"></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td colspan="2" nowrap="nowrap" style="text-align: center; border-bottom: #000000 1pt solid !important; padding: 0px;"><strong>Options Already <br/>Vested and <br/>Expected to Vest</strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td colspan="6" nowrap="nowrap" style="text-align: center; border-bottom: #000000 1pt solid !important; padding: 0px;"><strong>Options Currently <br/>Exercisable</strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top;"></td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top;" colspan="2"></td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top;" colspan="2"> </td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; font-family: 'times new roman'; padding: 0px;" width="100%">Number of outstanding options</td> <td style="font-family: 'times new roman'; padding: 0px;"></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>115,389</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>108,440</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="vertical-align: top; text-align: left; white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; font-family: 'times new roman'; padding: 0px;" width="100%">Weighted average remaining contractual life (years)</td> <td style="font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>5.90</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>5.44</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="font-family: 'Times New Roman';" width="100%">Weighted average exercise price per share</td> <td style="font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>21.07</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>20.92</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="vertical-align: top; text-align: left; white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="font-family: 'Times New Roman';" width="100%">Intrinsic value of outstanding options</td> <td style="font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>1,625,000</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>1,543,000</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> </table></div> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0;">The intrinsic value of an outstanding stock option is calculated as the difference between the stock price as of January 31, 2015 and the exercise price of the option.<b><i> </i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;">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 <font>2008</font> Plan. The awards were <font>25</font>% time-based vesting and <font>75</font>% performance-based vesting. The three-year performance period is fiscal 2015 through fiscal 2017.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;">On this date, the Compensation Committee granted a total of <font>11,174</font> 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 $<font>32.22</font>.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;">The Compensation Committee also granted a total target number of <font>16,740</font> performance shares to our executive officers designated as “Performance Shares – TSR”. The shares were weighted as <font>40</font>% of the overall long-term incentive compensation arrangement and will vest and be paid based upon our total shareholder return of our common stock over a three-year period, relative to the total shareholder of the companies in a specified peer group over that period. Participants will have the ability to earn between <font>50</font>% of the target number of shares for achieving threshold performance and <font>200</font>% of the target number of shares for achieving maximum performance. The fair value of the market-based performance shares was $<font>34.41</font> per share and was calculated using the Monte Carlo approach.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;">The Compensation Committee also granted a total target number of <font>15,643</font> performance shares to our executive officers designated as “Performance Shares – ROIC”. These shares were weighted as <font>35</font>% 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 <font>50</font>% of the target number of shares for achieving threshold performance and <font>200</font>% of the target number of shares for achieving maximum performance. The grant date fair value of the ROIC performance shares was based on the closing sales price of our common stock on the grant date which was $<font>32.22</font> per share.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0;">A reconciliation of the activity relating to outstanding restricted share awards made under the 2008 Plan and related information is as follows:</p><div> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0;"> </p> <table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; font-style: normal; font-variant: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; font-family: 'times new roman', times, serif; width: 100%;"> <tr style="vertical-align: bottom;"> <td style="font-family: 'Times New Roman';" nowrap="nowrap"></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td colspan="2" nowrap="nowrap" style="text-align: center; border-bottom: #000000 1pt solid !important; padding: 0px;"><strong>Number of<br/> Shares</strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td colspan="5" nowrap="nowrap" style="text-align: center; border-bottom: #000000 1pt solid !important; padding: 0px;"><strong>Weighted Average<br/> Grant  Date<br/> Fair Value</strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-indent: 12pt; font-family: 'times new roman'; padding: 0px;" width="100%">Unvested at October 31, 2014</td> <td style="font-family: 'times new roman'; padding: 0px;"></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>81,038</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>23.83</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-indent: 12pt; font-family: 'times new roman'; padding: 0px;" width="100%">Shares granted</td> <td style="font-family: 'Times New Roman';"></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>43,557</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>33.06</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-indent: 12pt; font-family: 'times new roman'; padding: 0px;" width="100%">Shares vested</td> <td style="font-family: 'Times New Roman';"></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>(16,303</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">)</td> <td style="white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>21.81</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-indent: 12pt; font-family: 'times new roman'; padding: 0px;" width="100%">Shares withheld</td> <td style="font-family: 'times new roman'; padding: 0px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px;"> </td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>(7,344</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 1pt solid !important; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">)</td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>21.82</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 1pt solid !important; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-indent: 12pt; font-family: 'times new roman'; padding: 0px;" width="100%">Unvested at January 31, 2015</td> <td style="font-family: 'times new roman'; padding: 0px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 2.80pt double !important; padding: 0px;"> </td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 2.80pt double !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>100,948</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 2.80pt double !important; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 2.80pt double !important; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 2.80pt double !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>28.28</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 2.80pt double !important; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p></div> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;">During the first three months of fiscal 2015 and 2014, we recorded $<font>257,000</font> and $<font>246,000</font>, respectively, as stock-based compensation expense related to grants under the plans. As of January 31, 2015, there was an estimated $<font>2.2</font> million of total unrecognized stock-based compensation cost that we expect to recognize by the end of the first quarter of fiscal 2018.</p> </div>
P10Y
750000
128189
20.45
12800
14.88
115389
21.07
20.92
1625000
1543000
0.25
0.75
11174
32.22
16740
0.40
0.50
2.00
34.41
15643
0.35
0.50
2.00
32.22
81038
23.83
43557
33.06
16303
21.81
7344
21.82
100948
28.28
257000
246000
2200000
<div id='EdgarSAA123457890000' style="font-family : 'Times New Roman';"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p> <table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; font-style: normal; font-variant: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; font-family: 'times new roman', times, serif; width: 100%;"> <tr style="vertical-align: bottom;"> <td style="font-family: 'Times New Roman';" nowrap="nowrap"></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td colspan="2" nowrap="nowrap" style="text-align: center; border-bottom: #000000 1pt solid !important; padding: 0px;"><strong>Stock <br/>Options</strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td colspan="5" nowrap="nowrap" style="text-align: center; border-bottom: #000000 1pt solid !important; padding: 0px;"><strong>Weighted <br/>Average <br/>Exercise <br/>Price</strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> </tr> <tr style="vertical-align: bottom;"> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"></td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top;" colspan="2"></td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top;" colspan="2"> </td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="font-family: 'times new roman'; padding: 0px;" width="100%">Outstanding at October 31, 2014</td> <td style="font-family: 'times new roman'; padding: 0px;"></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px;"></td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>128,189</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>20.45</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="vertical-align: top; text-align: left; white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; font-family: 'times new roman'; padding: 0px;" width="100%">Options granted</td> <td style="font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>—</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>—</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; font-family: 'times new roman'; padding: 0px;" width="100%">Options exercised</td> <td style="font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>(12,800</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">)</td> <td style="white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>14.88</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; font-family: 'times new roman'; padding: 0px;" width="100%">Options cancelled</td> <td style="font-family: 'times new roman'; padding: 0px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px;"> </td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>—</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 1pt solid !important; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>—</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 1pt solid !important; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="vertical-align: top; text-align: left; white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="font-family: 'times new roman'; padding: 0px;" width="100%">Outstanding at January 31, 2015</td> <td style="font-family: 'times new roman'; padding: 0px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 2.80pt double !important; padding: 0px;"> </td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 2.80pt double !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>115,389</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 2.80pt double !important; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 2.80pt double !important; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 2.80pt double !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>21.07</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 2.80pt double !important; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> </table></div>
<div id='EdgarSAA123457890000' style="font-family : 'Times New Roman';"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0;"> </p> <table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; font-style: normal; font-variant: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; font-family: 'times new roman', times, serif; width: 100%;"> <tr style="vertical-align: bottom;"> <td style="text-align: justify; font-family: 'times new roman'; padding: 0px;" nowrap="nowrap"></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td colspan="2" nowrap="nowrap" style="text-align: center; border-bottom: #000000 1pt solid !important; padding: 0px;"><strong>Options Already <br/>Vested and <br/>Expected to Vest</strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td colspan="6" nowrap="nowrap" style="text-align: center; border-bottom: #000000 1pt solid !important; padding: 0px;"><strong>Options Currently <br/>Exercisable</strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top;"></td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top;" colspan="2"></td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top;" colspan="2"> </td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; font-family: 'times new roman'; padding: 0px;" width="100%">Number of outstanding options</td> <td style="font-family: 'times new roman'; padding: 0px;"></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>115,389</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>108,440</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="vertical-align: top; text-align: left; white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; font-family: 'times new roman'; padding: 0px;" width="100%">Weighted average remaining contractual life (years)</td> <td style="font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>5.90</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>5.44</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="font-family: 'Times New Roman';" width="100%">Weighted average exercise price per share</td> <td style="font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>21.07</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>20.92</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="vertical-align: top; text-align: left; white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="font-family: 'Times New Roman';" width="100%">Intrinsic value of outstanding options</td> <td style="font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>1,625,000</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>1,543,000</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> </table></div>
<div id='EdgarSAA123457890000' style="font-family : 'Times New Roman';"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0;"> </p> <table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; font-style: normal; font-variant: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; font-family: 'times new roman', times, serif; width: 100%;"> <tr style="vertical-align: bottom;"> <td style="font-family: 'Times New Roman';" nowrap="nowrap"></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td colspan="2" nowrap="nowrap" style="text-align: center; border-bottom: #000000 1pt solid !important; padding: 0px;"><strong>Number of<br/> Shares</strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td colspan="5" nowrap="nowrap" style="text-align: center; border-bottom: #000000 1pt solid !important; padding: 0px;"><strong>Weighted Average<br/> Grant  Date<br/> Fair Value</strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-indent: 12pt; font-family: 'times new roman'; padding: 0px;" width="100%">Unvested at October 31, 2014</td> <td style="font-family: 'times new roman'; padding: 0px;"></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>81,038</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>23.83</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-indent: 12pt; font-family: 'times new roman'; padding: 0px;" width="100%">Shares granted</td> <td style="font-family: 'Times New Roman';"></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>43,557</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>33.06</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-indent: 12pt; font-family: 'times new roman'; padding: 0px;" width="100%">Shares vested</td> <td style="font-family: 'Times New Roman';"></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>(16,303</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">)</td> <td style="white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>21.81</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-indent: 12pt; font-family: 'times new roman'; padding: 0px;" width="100%">Shares withheld</td> <td style="font-family: 'times new roman'; padding: 0px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px;"> </td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>(7,344</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 1pt solid !important; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">)</td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>21.82</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 1pt solid !important; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-indent: 12pt; font-family: 'times new roman'; padding: 0px;" width="100%">Unvested at January 31, 2015</td> <td style="font-family: 'times new roman'; padding: 0px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 2.80pt double !important; padding: 0px;"> </td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 2.80pt double !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>100,948</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 2.80pt double !important; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 2.80pt double !important; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 2.80pt double !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>28.28</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 2.80pt double !important; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p></div>
23000
20000
3743000
2349000
46000
37000
13699000
14236000
57216000
60053000
<div id='EdgarSAA123457890000' style="font-family : 'Times New Roman';"> <table cellpadding="0" cellspacing="0" style="font-style: normal; font-variant: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; font-family: 'times new roman', times, serif; margin-top: 0px; margin-bottom: 0px; width: 100%;"> <tr style="vertical-align: top;"> <td width="0px"></td> <td style="width: 0.25in; font-family: 'times new roman';">4.</td> <td style="text-align: justify; font-family: 'times new roman';">EARNINGS PER SHARE</td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;">Per share results have been computed based on the average number of common shares outstanding. 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):</p><div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font-style: normal; font-variant: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; font-family: 'times new roman', times, serif; width: 100%;"> <tr style="vertical-align: bottom;"> <td style="color: red; text-align: justify; font-family: 'times new roman'; padding: 0px;" nowrap="nowrap"></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td colspan="14" nowrap="nowrap" style="text-align: center; font-family: 'times new roman'; padding: 0px;"><strong>Three Months Ended</strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: 'Times New Roman';" nowrap="nowrap"></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td colspan="14" nowrap="nowrap" style="text-align: center; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px;"><strong>January 31,</strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: 'Times New Roman';" nowrap="nowrap"></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td colspan="6" nowrap="nowrap" style="text-align: center; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px;"><strong>2015</strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td colspan="14" nowrap="nowrap" style="text-align: center; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px;"><strong>2014</strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: 'Times New Roman';" nowrap="nowrap"></td> <td style="font-family: 'times new roman'; padding: 0px;" nowrap="nowrap"></td> <td style="text-align: center; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px;" colspan="2" nowrap="nowrap">Basic</td> <td style="font-family: 'times new roman'; padding: 0px;" nowrap="nowrap"></td> <td style="font-family: 'times new roman'; padding: 0px;" nowrap="nowrap"></td> <td style="text-align: center; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px;" colspan="2" nowrap="nowrap">Diluted</td> <td style="font-family: 'times new roman'; padding: 0px;" nowrap="nowrap"> </td> <td style="font-family: 'times new roman'; padding: 0px;" nowrap="nowrap"> </td> <td style="text-align: center; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px;" colspan="2" nowrap="nowrap">Basic</td> <td style="font-family: 'times new roman'; padding: 0px;" nowrap="nowrap"> </td> <td style="font-family: 'times new roman'; padding: 0px;" nowrap="nowrap"> </td> <td style="text-align: center; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px;" colspan="2" nowrap="nowrap">Diluted</td> <td style="font-family: 'times new roman'; padding: 0px;" nowrap="nowrap"> </td> </tr> <tr style="vertical-align: bottom;"> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top;" colspan="2"> </td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top;" colspan="2"> </td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top;" colspan="2"> </td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top;" colspan="2"> </td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; font-family: 'times new roman'; padding: 0px;" width="100%">Net income</td> <td style="font-family: 'times new roman'; padding: 0px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>3,766</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>3,766</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>2,369</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>2,369</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; text-indent: 0.125in; font-family: 'times new roman'; padding: 0px;" width="100%">Undistributed earnings allocated to participating shares</td> <td style="font-family: 'times new roman'; padding: 0px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>(23</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 1pt solid !important; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">)</td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>(23</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 1pt solid !important; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">)</td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>(20</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 1pt solid !important; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">)</td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>(20</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 1pt solid !important; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">)</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; font-family: 'times new roman'; padding: 0px;" width="100%">Net income applicable to common shareholders</td> <td style="font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>3,743</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>3,743</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>2,349</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>2,349</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="font-family: 'times new roman'; padding: 0px;" width="100%">Weighted average shares outstanding</td> <td style="font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>6,523</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>6,523</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>6,477</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>6,477</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; font-family: 'times new roman'; padding: 0px;" width="100%">Stock options</td> <td style="font-family: 'times new roman'; padding: 0px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>—</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 1pt solid !important; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>46</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 1pt solid !important; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>—</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 1pt solid !important; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>37</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 1pt solid !important; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="font-family: 'times new roman'; padding: 0px;"> </td> <td style="font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>6,523</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>6,569</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>6,477</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>6,514</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="font-family: 'times new roman'; padding: 0px; vertical-align: top; text-align: left;"> </td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="vertical-align: top; text-align: left; white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="vertical-align: top; text-align: left; white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="vertical-align: top; text-align: left; white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="font-family: 'times new roman'; padding: 0px;" width="100%">Income per share</td> <td style="font-family: 'times new roman'; padding: 0px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 2.80pt double !important; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 2.80pt double !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>0.57</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 2.80pt double !important; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 2.80pt double !important; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 2.80pt double !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>0.57</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 2.80pt double !important; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 2.80pt double !important; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 2.80pt double !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>0.36</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 2.80pt double !important; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 2.80pt double !important; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 2.80pt double !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>0.36</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 2.80pt double !important; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> </table></div> </div>
<div id='EdgarSAA123457890000' style="font-family : 'Times New Roman';"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font-style: normal; font-variant: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; font-family: 'times new roman', times, serif; width: 100%;"> <tr style="vertical-align: bottom;"> <td style="color: red; text-align: justify; font-family: 'times new roman'; padding: 0px;" nowrap="nowrap"></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td colspan="14" nowrap="nowrap" style="text-align: center; font-family: 'times new roman'; padding: 0px;"><strong>Three Months Ended</strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: 'Times New Roman';" nowrap="nowrap"></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td colspan="14" nowrap="nowrap" style="text-align: center; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px;"><strong>January 31,</strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: 'Times New Roman';" nowrap="nowrap"></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td colspan="6" nowrap="nowrap" style="text-align: center; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px;"><strong>2015</strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td colspan="14" nowrap="nowrap" style="text-align: center; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px;"><strong>2014</strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: 'Times New Roman';" nowrap="nowrap"></td> <td style="font-family: 'times new roman'; padding: 0px;" nowrap="nowrap"></td> <td style="text-align: center; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px;" colspan="2" nowrap="nowrap">Basic</td> <td style="font-family: 'times new roman'; padding: 0px;" nowrap="nowrap"></td> <td style="font-family: 'times new roman'; padding: 0px;" nowrap="nowrap"></td> <td style="text-align: center; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px;" colspan="2" nowrap="nowrap">Diluted</td> <td style="font-family: 'times new roman'; padding: 0px;" nowrap="nowrap"> </td> <td style="font-family: 'times new roman'; padding: 0px;" nowrap="nowrap"> </td> <td style="text-align: center; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px;" colspan="2" nowrap="nowrap">Basic</td> <td style="font-family: 'times new roman'; padding: 0px;" nowrap="nowrap"> </td> <td style="font-family: 'times new roman'; padding: 0px;" nowrap="nowrap"> </td> <td style="text-align: center; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px;" colspan="2" nowrap="nowrap">Diluted</td> <td style="font-family: 'times new roman'; padding: 0px;" nowrap="nowrap"> </td> </tr> <tr style="vertical-align: bottom;"> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top;" colspan="2"> </td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top;" colspan="2"> </td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top;" colspan="2"> </td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top;" colspan="2"> </td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; font-family: 'times new roman'; padding: 0px;" width="100%">Net income</td> <td style="font-family: 'times new roman'; padding: 0px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>3,766</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>3,766</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>2,369</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>2,369</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; text-indent: 0.125in; font-family: 'times new roman'; padding: 0px;" width="100%">Undistributed earnings allocated to participating shares</td> <td style="font-family: 'times new roman'; padding: 0px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>(23</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 1pt solid !important; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">)</td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>(23</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 1pt solid !important; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">)</td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>(20</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 1pt solid !important; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">)</td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>(20</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 1pt solid !important; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">)</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; font-family: 'times new roman'; padding: 0px;" width="100%">Net income applicable to common shareholders</td> <td style="font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>3,743</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>3,743</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>2,349</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>2,349</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="font-family: 'times new roman'; padding: 0px;" width="100%">Weighted average shares outstanding</td> <td style="font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>6,523</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>6,523</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>6,477</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>6,477</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: left; font-family: 'times new roman'; padding: 0px;" width="100%">Stock options</td> <td style="font-family: 'times new roman'; padding: 0px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>—</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 1pt solid !important; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>46</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 1pt solid !important; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>—</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 1pt solid !important; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>37</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 1pt solid !important; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="font-family: 'times new roman'; padding: 0px;"> </td> <td style="font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>6,523</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>6,569</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>6,477</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>6,514</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="font-family: 'times new roman'; padding: 0px; vertical-align: top; text-align: left;"> </td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="vertical-align: top; text-align: left; white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="vertical-align: top; text-align: left; white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="vertical-align: top; text-align: left; white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="font-family: 'times new roman'; padding: 0px;" width="100%">Income per share</td> <td style="font-family: 'times new roman'; padding: 0px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 2.80pt double !important; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 2.80pt double !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>0.57</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 2.80pt double !important; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 2.80pt double !important; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 2.80pt double !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>0.57</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 2.80pt double !important; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 2.80pt double !important; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 2.80pt double !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>0.36</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 2.80pt double !important; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 2.80pt double !important; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 2.80pt double !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>0.36</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 2.80pt double !important; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> </table></div>
826000
878000
<div id='EdgarSAA123457890000' style="font-family : 'Times New Roman';"> <table cellpadding="0" cellspacing="0" style="font-style: normal; font-variant: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; font-family: 'times new roman', times, serif; margin-top: 0px; margin-bottom: 0px; width: 100%;"> <tr style="vertical-align: top;"> <td style="width: 0.25in; font-family: 'times new roman';">5.</td> <td style="text-align: justify; font-family: 'times new roman';">ACCOUNTS RECEIVABLE</td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;">Accounts receivable are net of allowances for doubtful accounts of $<font>826,000</font> as of January 31, 2015 and $<font>878,000</font> as of October 31, 2014.</p> </div>
20189000
21703000
<div id='EdgarSAA123457890000' style="font-family : 'Times New Roman';"> <div class="CursorPointer"><table cellpadding="0" cellspacing="0" style="font-style: normal; font-variant: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; font-family: 'times new roman', times, serif; margin-top: 0px; margin-bottom: 0px; width: 100%;"> <tr style="vertical-align: top;"> <td style="width: 0.25in; font-family: 'times new roman';">6.</td> <td style="text-align: justify; font-family: 'times new roman';">INVENTORIES</td> </tr> </table></div> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;">Inventories, priced at the lower of cost (first-in, first-out method) or market, are summarized below (in thousands):</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0;"> </p> <div><table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; font-style: normal; font-variant: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; font-family: 'times new roman', times, serif; width: 100%;"> <tr style="vertical-align: bottom;"> <td style="text-align: justify; font-family: 'times new roman'; padding: 0px;" nowrap="nowrap"></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td colspan="2" nowrap="nowrap" style="text-align: center; border-bottom: #000000 1pt solid !important; padding: 0px;"><strong>January 31, <br/>2015</strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td colspan="6" nowrap="nowrap" style="text-align: center; border-bottom: #000000 1pt solid !important; padding: 0px;"><strong>October 31, <br/>2014</strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: justify; font-family: 'times new roman'; padding: 0px;" width="100%">Purchased parts and sub-assemblies</td> <td style="font-family: 'times new roman'; padding: 0px;"></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>20,189</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>21,703</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: justify; font-family: 'times new roman'; padding: 0px;" width="100%">Work-in-process</td> <td style="font-family: 'Times New Roman';"></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>13,699</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>14,236</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: justify; font-family: 'times new roman'; padding: 0px;" width="100%">Finished goods</td> <td style="font-family: 'times new roman'; padding: 0px;"></td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>57,216</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 1pt solid !important; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>60,053</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 1pt solid !important; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: justify; font-family: 'times new roman'; padding: 0px;"> </td> <td style="font-family: 'times new roman'; padding: 0px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 2.80pt double !important; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 2.80pt double !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>91,104</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 2.80pt double !important; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 2.80pt double !important; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 2.80pt double !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>95,992</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 2.80pt double !important; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> </table></div> </div>
<div id='EdgarSAA123457890000' style="font-family : 'Times New Roman';"><table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; font-style: normal; font-variant: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; font-family: 'times new roman', times, serif; width: 100%;"> <tr style="vertical-align: bottom;"> <td style="text-align: justify; font-family: 'times new roman'; padding: 0px;" nowrap="nowrap"></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td colspan="2" nowrap="nowrap" style="text-align: center; border-bottom: #000000 1pt solid !important; padding: 0px;"><strong>January 31, <br/>2015</strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td colspan="6" nowrap="nowrap" style="text-align: center; border-bottom: #000000 1pt solid !important; padding: 0px;"><strong>October 31, <br/>2014</strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: justify; font-family: 'times new roman'; padding: 0px;" width="100%">Purchased parts and sub-assemblies</td> <td style="font-family: 'times new roman'; padding: 0px;"></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>20,189</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>21,703</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: justify; font-family: 'times new roman'; padding: 0px;" width="100%">Work-in-process</td> <td style="font-family: 'Times New Roman';"></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>13,699</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>14,236</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: justify; font-family: 'times new roman'; padding: 0px;" width="100%">Finished goods</td> <td style="font-family: 'times new roman'; padding: 0px;"></td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>57,216</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 1pt solid !important; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>60,053</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 1pt solid !important; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: justify; font-family: 'times new roman'; padding: 0px;"> </td> <td style="font-family: 'times new roman'; padding: 0px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 2.80pt double !important; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 2.80pt double !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>91,104</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 2.80pt double !important; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 2.80pt double !important; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 2.80pt double !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>95,992</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 2.80pt double !important; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> </table></div>
<div id='EdgarSAA123457890000' style="font-family : 'Times New Roman';"> <table style="font: 10pt times new roman, times, serif; margin-top: 0; margin-bottom: 0;" cellpadding="0" cellspacing="0"> <tr style="vertical-align: top; text-align: justify;"> <td style="width: 0.25in; text-align: left; font-family: 'times new roman';">7.</td> <td style="text-align: justify; font-family: 'times new roman';">SEGMENT INFORMATION</td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;">We operate in a single segment: industrial automation systems. We design and produce interactive computer control systems and software, computerized machine tools and machine tool components for sale through our own distribution network to the worldwide metal-working market. We also provide software options, control upgrades, accessories and replacement parts for our products, as well as customer service and training support.</p> </div>
12500000
3000000
5000000
3000000
4000000
0.01
0.0100
0.0050
0.0005
5000000
90000000
120000000
4000000
1000000
1500000
100000000
3200000
40000000
6400000
3200000
3300000
0.056
18300000
<div id='EdgarSAA123457890000' style="font-family : 'Times New Roman';"> <table style="font: 10pt times new roman, times, serif; margin-top: 0; margin-bottom: 0;" cellpadding="0" cellspacing="0"> <tr style="vertical-align: top; text-align: justify;"> <td style="width: 0.25in; text-align: left; font-family: 'times new roman';">9.</td> <td style="text-align: justify; font-family: 'times new roman';">DEBT AGREEMENTS</td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;">On December 7, 2012, we entered into an agreement (the “U.S. credit agreement”) with a financial institution that provided us with a $<font>12.5</font> million unsecured revolving credit and letter of credit facility. The U.S. credit agreement permitted the issuance of up to $<font>3.0</font> million in letters of credit. On May 9, 2014, the maximum amount for outstanding letters of credit under our U.S. credit agreement was increased from $<font>3.0</font> million to $<font>5.0</font> million in order to guarantee a new revolving credit facility in Taiwan.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;">On December 5, 2014, we amended our U.S. credit agreement to increase the cash dividend allowance from $<font>3.0</font> million per calendar year to $<font>4.0</font> million per calendar year and to extend the scheduled maturity date to December 7, 2016.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;">Borrowings under the U.S. credit agreement bear interest at a LIBOR-based rate or a floating rate of <font>1</font>% above the prevailing prime rate. The floating rate will not less than the greatest of (a) a one month LIBOR-based rate plus <font>1.00</font>% per annum, (b) the federal funds effective rate plus <font>0.50</font>% per annum, and (c) the prevailing prime rate. The rate we must pay for that portion of the U.S. credit agreement which is not utilized is <font>0.05</font>% per annum.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;">The U.S. credit agreement contains customary financial covenants, including a covenant that permits us to make investments in subsidiaries of up to $<font>5.0</font> million and a minimum working capital of $<font>90.0</font> million and a minimum tangible net worth of $<font>120.0</font> million. The U.S. credit agreement permits us to pay cash dividends in an amount not to exceed $<font>4.0</font> million per calendar year, so long as we are not in default before and after giving effect to such dividends.  </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;">We have a £<font>1.0</font> million revolving credit facility in the United Kingdom and a €<font>1.5</font> million revolving credit facility in Germany. On May 12, 2014, we established a Taiwan credit facility in the amount of <font>100.0</font> million New Taiwan Dollars (approximately $<font>3.2</font> million) with an expiration date of May 12, 2015. Our Taiwan credit facility is backed by letters of credit under our U.S. credit facility. We also have a <font>40.0</font> million Chinese Yuan (approximately $<font>6.4</font> million) credit facility in China that was renewed on February 17, 2015 with an expiration date of February 17, 2016.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;">All of our credit facilities are unsecured.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;">We had $<font>3.2</font> million and $<font>3.3</font> million of borrowings under our China credit facility, which bears interest at <font>5.6</font>% annually (variable rate), at January 31, 2015 and October 31, 2014, respectively. We had no other debt or borrowings under any of our other credit facilities at either of those dates. At January 31, 2015, we were in compliance with all covenants contained in the related credit agreements and, as of that date, we had unutilized credit facilities of $<font>18.3</font> million.</p> </div>
2016-02-17
2015-05-12
2016-12-07
0.35
0.28
1100000
1200000
30000
<div id='EdgarSAA123457890000' style="font-family : 'Times New Roman';"> <table style="font: 10pt times new roman, times, serif; margin-top: 0; margin-bottom: 0;" cellpadding="0" cellspacing="0"> <tr style="vertical-align: top; text-align: justify;"> <td style="width: 0.25in; text-align: left; font-family: 'times new roman';">10.</td> <td style="text-align: justify; font-family: 'times new roman';">INCOME TAXES</td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;">Our effective tax rate for the first three months of fiscal 2015 was <font>35</font>% in comparison to <font>28</font>% for the same period in fiscal 2014. The increase in the effective income tax rate was primarily due to changes in the geographic mix of income or loss between tax jurisdictions.  We recorded income tax expense during the first three months of fiscal 2015 of $<font>2.0</font> million compared to $<font>904,000</font> for the same period in fiscal 2014, primarily as a result of an increase in pre-tax income period-over-period.  We have not provided any U.S. income taxes on the undistributed earnings of our wholly-owned foreign subsidiaries based upon our determination that such earnings will be indefinitely reinvested.  In the event these earnings are later distributed to our U.S. operations, such distributions would likely result in additional U.S. tax that may be offset, at least in part, by associated foreign tax credits.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;">Our unrecognized tax benefits were $<font>1.1</font> million as of January 31, 2015 and $<font>1.2</font> million as of October 31, 2014, and in each case included accrued interest.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;">We recognize accrued interest and penalties related to unrecognized tax benefits as components of income tax expense.   As of January 31, 2015, the gross amount of interest accrued, reported in Accrued expenses and other, was approximately $<font>30,000</font>, which did not include the federal tax benefit of interest deductions.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;">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 2015 and July 2018.</p> </div>
2018-07-01
2015-07-01
1259000
1232000
7455000
3127000
1269000
705000
117800000
122200000
7500000
3100000
1300000
705000
<div id='EdgarSAA123457890000' style="font-family : 'Times New Roman';"> <table style="font: 10pt times new roman, times, serif; margin-top: 0; margin-bottom: 0;" cellpadding="0" cellspacing="0"> <tr style="vertical-align: top; text-align: justify;"> <td style="width: 0.25in; text-align: left; font-family: 'times new roman';">11.</td> <td style="text-align: justify; font-family: 'times new roman';">FINANCIAL INSTRUMENTS</td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"><i>Estimated Fair Value Measurements of Financial Instruments</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;">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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;">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, 2015 and October 31, 2014 (in thousands):</p><div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in;"><b> </b></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font-style: normal; font-variant: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; font-family: 'times new roman', times, serif; width: 100%;"> <tr style="vertical-align: bottom;"> <td style="font-family: 'Times New Roman';" nowrap="nowrap"></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td colspan="6" nowrap="nowrap" style="text-align: center; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px;"><strong>Assets</strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td colspan="14" nowrap="nowrap" style="text-align: center; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px;"><strong>Liabilities</strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: 'Times New Roman';" nowrap="nowrap"></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td colspan="2" nowrap="nowrap" style="text-align: center; border-bottom: #000000 1pt solid !important; padding: 0px;"><strong>January 31, <br/>2015</strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td colspan="2" nowrap="nowrap" style="text-align: center; border-bottom: #000000 1pt solid !important; padding: 0px;"><strong>October 31, <br/>2014</strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td colspan="2" nowrap="nowrap" style="text-align: center; border-bottom: #000000 1pt solid !important; padding: 0px;"><strong>January 31, <br/>2015</strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td colspan="2" nowrap="nowrap" style="text-align: center; border-bottom: #000000 1pt solid !important; padding: 0px;"><strong>October 31, <br/>2014</strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> </tr> <tr style="vertical-align: bottom;"> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"></td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top;" colspan="2"></td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"></td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top;" colspan="2"> </td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top;" colspan="2"> </td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top;" colspan="2"> </td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-decoration: underline; font-family: 'times new roman'; padding: 0px;">Level 1</td> <td style="font-family: 'Times New Roman';"></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px;"></td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px;"></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px;"></td> <td style="font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px;"> </td> <td style="font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px;"> </td> <td style="font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; font-family: 'times new roman'; padding: 0px;" width="100%">Deferred Compensation</td> <td style="font-family: 'times new roman'; padding: 0px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>1,259</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>1,232</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>-</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>-</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="vertical-align: top; text-align: left; white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="vertical-align: top; text-align: left; white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="vertical-align: top; text-align: left; white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-decoration: underline; font-family: 'times new roman'; padding: 0px;" width="100%">Level 2</td> <td style="font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="font-family: 'Times New Roman';" width="100%">Derivatives</td> <td style="font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>7,455</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>3,127</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>1,269</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>705</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> </table></div> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"><i>Recurring Fair Value Measurements</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;">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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;">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 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 in which the U.S. Dollar equivalent notional amounts of these contracts was $<font>117.8</font> million and $<font>122.2</font> million at January 31, 2015 and October 31, 2014, respectively. The fair value of Derivative assets recorded on our Condensed Consolidated Balance Sheets was $<font>7.5</font> million at January 31, 2015 and $<font>3.1</font> million at October 31, 2014. The fair value of Derivative liabilities recorded on our Condensed Consolidated Balance Sheets was $<font>1.3</font> million at January 31, 2015 and $<font>705,000</font> at October 31, 2014.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;">The fair value of our foreign currency forward exchange contracts and the related currency positions are subject to offsetting market risk resulting from foreign currency exchange rate volatility. The counterparty to the forward exchange contracts is a substantial and creditworthy financial institution. We do not consider either the risk of counterparty non-performance or the economic consequences of counterparty non-performance as material risks.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"><i>Nonrecurring Fair Value Measurements</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;">Certain nonfinancial assets and liabilities are measured at fair value on a nonrecurring basis and are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0in;"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;">We review for goodwill impairment annually and whenever events or changes in circumstances indicate our carrying value may not be recoverable. The fair value of reporting units is determined using the income approach. The income approach focusses on the income-producing capability of an asset, measuring the current value of the asset by calculating the present value of its future economic benefits such as cash earnings, cost savings, corporate tax structure and product offerings. Value indications are developed by discounting expected cash flows to their present value at a rate of return that incorporates the risk-free rate for the use of funds, the expected rate of inflation and risks associated with the reporting unit. These assets would generally be classified within Level <font>3</font>, in the event that we were required to measure and record such assets at fair value within the consolidated financial statements.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;">We periodically evaluate the carrying value of long-lived assets to be held and used, including definite-lived and indefinite-lived intangible assets and property plant and equipment, when events or circumstances warrant such a review. Fair value is determined primarily using anticipated cash flows assumed by a market participant discounted at a rate commensurate with the risk involved and these assets would generally be classified within Level <font>3</font>, in the event that we were required to measure and record such assets at fair value within the consolidated financial statements.</p> </div>
782000
938000
693000
971000
<div id='EdgarSAA123457890000' style="font-family : 'Times New Roman';"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in;"><b> </b></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font-style: normal; font-variant: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; font-family: 'times new roman', times, serif; width: 100%;"> <tr style="vertical-align: bottom;"> <td style="font-family: 'Times New Roman';" nowrap="nowrap"></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td colspan="6" nowrap="nowrap" style="text-align: center; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px;"><strong>Assets</strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td colspan="14" nowrap="nowrap" style="text-align: center; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px;"><strong>Liabilities</strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: 'Times New Roman';" nowrap="nowrap"></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td colspan="2" nowrap="nowrap" style="text-align: center; border-bottom: #000000 1pt solid !important; padding: 0px;"><strong>January 31, <br/>2015</strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td colspan="2" nowrap="nowrap" style="text-align: center; border-bottom: #000000 1pt solid !important; padding: 0px;"><strong>October 31, <br/>2014</strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td colspan="2" nowrap="nowrap" style="text-align: center; border-bottom: #000000 1pt solid !important; padding: 0px;"><strong>January 31, <br/>2015</strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td colspan="2" nowrap="nowrap" style="text-align: center; border-bottom: #000000 1pt solid !important; padding: 0px;"><strong>October 31, <br/>2014</strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> </tr> <tr style="vertical-align: bottom;"> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"></td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top;" colspan="2"></td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"></td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top;" colspan="2"> </td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top;" colspan="2"> </td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top;" colspan="2"> </td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-decoration: underline; font-family: 'times new roman'; padding: 0px;">Level 1</td> <td style="font-family: 'Times New Roman';"></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px;"></td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px;"></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px;"></td> <td style="font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px;"> </td> <td style="font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px;"> </td> <td style="font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: left; font-family: 'times new roman'; padding: 0px;" width="100%">Deferred Compensation</td> <td style="font-family: 'times new roman'; padding: 0px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>1,259</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>1,232</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>-</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>-</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="vertical-align: top; text-align: left; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="vertical-align: top; text-align: left; white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="vertical-align: top; text-align: left; white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="vertical-align: top; text-align: left; white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: top; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-decoration: underline; font-family: 'times new roman'; padding: 0px;" width="100%">Level 2</td> <td style="font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="font-family: 'Times New Roman';" width="100%">Derivatives</td> <td style="font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>7,455</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>3,127</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>1,269</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>705</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> </table></div>
<div id='EdgarSAA123457890000' style="font-family : 'Times New Roman';"> <table style="font: 10pt times new roman, times, serif; margin-top: 0; margin-bottom: 0;" cellpadding="0" cellspacing="0"> <tr style="vertical-align: top; text-align: justify;"> <td style="width: 0.25in; text-align: left; font-family: 'times new roman';">12.</td> <td style="text-align: justify; font-family: 'times new roman';">CONTINGENCIES AND LITIGATION</td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in;">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.</p> </div>
HURCO COMPANIES INC
0000315374
10-Q
2015-01-31
false
--10-31
Accelerated Filer
6537983
2015
Q1
17
1400000
P1Y
2048000
1778000
-75000
-10000
2062000
1735000
<div id='EdgarSAA123457890000' style="font-family : 'Times New Roman';"> <table style="font: 10pt times new roman, times, serif; margin-top: 0; margin-bottom: 0;" cellpadding="0" cellspacing="0"> <tr style="vertical-align: top; text-align: justify;"> <td style="width: 0.25in; text-align: left; font-family: 'times new roman';">8.</td> <td style="text-align: justify; font-family: 'times new roman';">GUARANTEES AND PRODUCT WARRANTIES</td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;">We follow FASB guidance for accounting for contingencies relating to the guarantor's accounting for, and disclosures of, the issuance of certain types of guarantees.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;">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 contingencies with respect to these guarantees. As of January 31, 2015, we had <font>17</font> outstanding third party payment guarantees totaling approximately $<font>1.4</font> 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 for potential liabilities under these guarantees when we believe a loss is probable and can be estimated.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;">We provide warranties on our products with respect to defects in material and workmanship. The terms of these warranties are generally <font>one</font> 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):</p><div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p> <table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; font-style: normal; font-variant: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; font-family: 'times new roman', times, serif; width: 100%;"> <tr style="vertical-align: bottom;"> <td style="text-align: justify; font-family: 'times new roman'; padding: 0px;" nowrap="nowrap"></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td colspan="6" nowrap="nowrap" style="text-align: center; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px;"><strong>Three Months Ended</strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: justify; font-family: 'times new roman'; padding: 0px;" nowrap="nowrap"></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td colspan="2" nowrap="nowrap" style="text-align: center; border-bottom: #000000 1pt solid !important; padding: 0px;"><strong>January 31, <br/>2015</strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td colspan="6" nowrap="nowrap" style="text-align: center; border-bottom: #000000 1pt solid !important; padding: 0px;"><strong>January 31, <br/>2014</strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: justify; font-family: 'times new roman'; padding: 0px;" width="100%">Balance, beginning of period</td> <td style="font-family: 'times new roman'; padding: 0px;"></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>2,048</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>1,778</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: justify; /* text-indent: 2pt; */ font-family: 'times new roman'; padding: 0px;" width="100%">Provision for warranties during the period</td> <td style="font-family: 'Times New Roman';"></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>782</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>938</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: justify; font-family: 'times new roman'; padding: 0px;" width="100%">Charges to the reserve</td> <td style="font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>(693</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">)</td> <td style="white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>(971</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">)</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: justify; font-family: 'times new roman'; padding: 0px;" width="100%">Impact of foreign currency translation</td> <td style="font-family: 'times new roman'; padding: 0px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>(75</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 1pt solid !important; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">)</td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>(10</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 1pt solid !important; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">)</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: justify; font-family: 'times new roman'; padding: 0px;" width="100%">Balance, end of period</td> <td style="font-family: 'times new roman'; padding: 0px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 2.80pt double !important; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 2.80pt double !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>2,062</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 2.80pt double !important; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 2.80pt double !important; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 2.80pt double !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>1,735</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 2.80pt double !important; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> </table></div> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;">The year-over-year increase in our warranty reserve reflected higher sales volumes and anticipated claims of machines under warranty as well as the sale of a greater number of our higher-performance machines which have a higher cost per claim.</p> </div>
<div id='EdgarSAA123457890000' style="font-family : 'Times New Roman';"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify;"> </p> <table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; font-style: normal; font-variant: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; font-family: 'times new roman', times, serif; width: 100%;"> <tr style="vertical-align: bottom;"> <td style="text-align: justify; font-family: 'times new roman'; padding: 0px;" nowrap="nowrap"></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td colspan="6" nowrap="nowrap" style="text-align: center; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px;"><strong>Three Months Ended</strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: justify; font-family: 'times new roman'; padding: 0px;" nowrap="nowrap"></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td colspan="2" nowrap="nowrap" style="text-align: center; border-bottom: #000000 1pt solid !important; padding: 0px;"><strong>January 31, <br/>2015</strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> <td colspan="6" nowrap="nowrap" style="text-align: center; border-bottom: #000000 1pt solid !important; padding: 0px;"><strong>January 31, <br/>2014</strong></td> <td nowrap="nowrap" style="font-family: 'times new roman'; padding: 0px;"><strong> </strong></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: justify; font-family: 'times new roman'; padding: 0px;" width="100%">Balance, beginning of period</td> <td style="font-family: 'times new roman'; padding: 0px;"></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>2,048</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>1,778</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: justify; /* text-indent: 2pt; */ font-family: 'times new roman'; padding: 0px;" width="100%">Provision for warranties during the period</td> <td style="font-family: 'Times New Roman';"></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>782</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>938</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: justify; font-family: 'times new roman'; padding: 0px;" width="100%">Charges to the reserve</td> <td style="font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>(693</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">)</td> <td style="white-space: nowrap; padding-right: 5px; padding-left: 5px; font-family: 'Times New Roman';"> </td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>(971</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">)</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="text-align: justify; font-family: 'times new roman'; padding: 0px;" width="100%">Impact of foreign currency translation</td> <td style="font-family: 'times new roman'; padding: 0px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>(75</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 1pt solid !important; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">)</td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 1pt solid !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>(10</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 1pt solid !important; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">)</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="text-align: justify; font-family: 'times new roman'; padding: 0px;" width="100%">Balance, end of period</td> <td style="font-family: 'times new roman'; padding: 0px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 2.80pt double !important; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 2.80pt double !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>2,062</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 2.80pt double !important; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="font-family: 'times new roman'; padding: 0px; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> <td style="text-align: left; font-family: 'times new roman'; border-bottom: #000000 2.80pt double !important; padding: 0px; vertical-align: bottom; padding-right: 10px; white-space: nowrap;">$</td> <td style="text-align: right; font-family: 'times new roman'; border-bottom: #000000 2.80pt double !important; padding: 0px; vertical-align: bottom; white-space: nowrap;"><font>1,735</font></td> <td style="text-align: left; font-family: 'times new roman'; padding: 0px; border-bottom: #000000 2.80pt double !important; white-space: nowrap; padding-right: 5px; padding-left: 5px;"> </td> </tr> </table></div>