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<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <table style="MARGIN-BOTTOM: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-TOP: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0px"> </td> <td style="WIDTH: 0.5in"><strong>4.</strong></td> <td><strong>ACQUISITION OF BUSINESS</strong></td> </tr> </table> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 67.5pt; TEXT-INDENT: -67.5pt"> <strong> </strong></p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> On July 1, 2013, we acquired the machine tool component business of an Italian designer and manufacturer of electro-mechanical components and accessories for machine tools. We are operating this business through our wholly-owned Italian subsidiary, LCM. The purchase price has been preliminarily allocated to the assets acquired and the liabilities assumed based on their fair values. The purchase price for the acquired assets and the assumed liabilities was $5.0 million. The allocation of the opening balance sheet of LCM as of July 1, 2013 is as follows (in thousands):</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <table style="WIDTH: 60%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0" align="center"> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="WIDTH: 80%; TEXT-ALIGN: left">Current Assets</td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 17%; TEXT-ALIGN: right">6,723</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left">Property plant and equipment</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">933</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td>Intangibles</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1,437</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="PADDING-BOTTOM: 1pt">Goodwill</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 2,477</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="TEXT-ALIGN: left; PADDING-LEFT: 0.125in">Total assets</td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">11,570</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="TEXT-ALIGN: left">Current Liabilites</td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">4,821</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left">Short term debt</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">4,643</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="PADDING-BOTTOM: 1pt">Non-current liabilities</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 1,726</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left; PADDING-LEFT: 0.125in"> Total liabilities</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left">$</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 11,190</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left">Cash expended, net of cash acquired</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">380</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">Indebtedness assumed</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 4,643</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="PADDING-BOTTOM: 1pt; PADDING-LEFT: 0.125in">Total purchase price</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left">$</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 5,023</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> Intangible assets of $1.4 million were recorded as a result of the purchase of the LCM assets. The fair value of the intangible assets was based upon a discounted cash flow method that involves inputs that are not observable in the market (Level 3). Intangible assets are amortized primarily using a straight-line methodology. The intangible assets preliminarily consisted of the following (in thousands):</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <table style="WIDTH: 80%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0" align="center"> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap"> </td> <td nowrap="nowrap"> </td> <td style="TEXT-ALIGN: center" colspan="2" nowrap="nowrap"> </td> <td nowrap="nowrap"> </td> <td nowrap="nowrap"> </td> <td style="TEXT-ALIGN: center" nowrap="nowrap">Remaining<br /> Economic<br /> Useful Life</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="WIDTH: 66%">Trademark/name</td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 15%; TEXT-ALIGN: right">274</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 15%; TEXT-ALIGN: center">13 years</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left">Technology and manufacturing know how</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1,111</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: center">13 years</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">Customer relationships</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 52</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: center">16 years</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left">$</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 1,437</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: center"> </td> </tr> </table> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> Intangible asset amortization expense was $31,000 for fiscal 2013. Annual intangible asset amortization expense for the next five fiscal years is estimated to be $119,000 per year.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> The excess purchase price over the fair value of the assets acquired and the liabilities assumed was recorded as goodwill in the amount of $2.5 million. Goodwill recognized in the acquisition relates primarily to advancing our machine tool technology and expanding our current product offering. We expect the amount recorded as goodwill to be fully deductible for tax purposes.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> The results of operations of LCM have been included in the consolidated financial statements from the date of acquisition. We incurred various costs related to the purchase of the LCM assets, including professional fees for due diligence, legal fees and accounting services. These costs totaled approximately $675,000 for the fiscal year ending October 31, 2013, and have been recorded as Selling, general and administrative expenses in the Consolidated Statements of Income.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <!--EndFragment--></div> </div>
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<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> <em>Statements of Cash Flows</em>. We consider all highly liquid investments with a stated maturity at the date of purchase of three months or less to be cash equivalents. Cash flows from hedges are classified consistent with the items being hedged.</p> <!--EndFragment--></div> </div>
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<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> <em>Consolidation</em>. The consolidated financial statements include the accounts of Hurco Companies, Inc. (an Indiana corporation) and its wholly-owned subsidiaries. We have a 35% ownership interest in a Taiwan affiliate that is accounted for using the equity method. Our investment in that affiliate was approximately $2.7 million and $2.4 million as of October 31, 2013 and 2012, respectively. That investment is included in Investments and other assets, net on the accompanying Consolidated Balance Sheets. Intercompany accounts and transactions have been eliminated.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> </p> <!--EndFragment--></div> </div>
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<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <table style="MARGIN-BOTTOM: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-TOP: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.5in"><strong>5.</strong></td> <td><strong>CREDIT AGREEMENTS AND BORROWINGS</strong></td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> At October 31, 2012, we were party to a credit agreement that provided us with a $15.0 million revolving credit facility and maximum outstanding letters of credit of $3.0 million. Borrowings under this agreement could have been used for general corporate purposes and bore interest at a floating rate, based either on LIBOR or the prime rate, plus an applicable margin. The agreement contained financial covenants, including restrictions on incurring additional debt, making acquisitions, or paying dividends if we report a cumulative net loss for four consecutive quarters.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> On December 7, 2012, we entered into a new credit agreement to replace our prior credit agreement. Under the prior credit agreement, we had a $15.0 million unsecured revolving credit facility, a letter of credit facility with a maximum amount for outstanding letters of credit of $3.0 million and a backup letter of credit facility in the amount of 100 million New Taiwan Dollars or approximately $3.4 million. Pursuant to the new credit agreement, the lenders provided us with a $12.5 million unsecured revolving credit and letter of credit facility, with a $3.0 million maximum amount for outstanding letters of credit.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> Borrowings under the new credit agreement bear interest at a LIBOR-based rate or a floating rate of 1% above the prevailing prime rate. The floating rate will not be less than the greatest of (a) a one month LIBOR-based rate plus 1.00% per annum, (b) the federal funds effective rate plus 0.50% per annum, and (c) the prevailing prime rate. The rate we must pay for that portion of the new credit agreement which is not utilized is 0.05% per annum.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> Further, the new credit agreement replaces the financial covenants that were in the prior credit agreement with a minimum working capital requirement of $90.0 million and a minimum tangible net worth requirement of $120.0 million. The new credit agreement also permits us to pay cash dividends in an amount not to exceed $1.0 million per calendar year so long as we are not in default before and after giving effect to such dividends. The remaining covenants in the new credit agreement are substantially the same as those that were in the prior credit agreement.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> We also have a £1.0 million revolving credit facility in the United Kingdom and a €1.5 million revolving credit facility in Germany. As of December 30, 2013, the uncommitted 100.0 million New Taiwan Dollar credit facility expired.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> On March 7, 2011 we entered into an uncommitted credit facility in China in the amount of 20.0 million Chinese Yuan (approximately $3.3 million) and amended our domestic credit agreement to accommodate the new facility. We also have an uncommitted credit facility in China in the amount of 40.0 million Chinese Yuan (approximately $6.6 million) that will expire on February 22, 2014.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> All of our credit facilities are unsecured.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> At October 31, 2013, we had $3.3 million of borrowings outstanding under our credit facility in China and $383,000 of secured borrowings assumed in the LCM acquisition. At October 31, 2012, we had $3.2 million of borrowings outstanding under our credit facility in China, but had no other debt or borrowings under any of our other credit facilities. At October 31, 2013, we were in compliance with all covenants contained in the related credit agreements and, as of that date, we had unutilized credit facilities of $22.8 million.</p> <p style="FONT: 10pt Courier; MARGIN: 0pt 0px"> </p> <!--EndFragment--></div> </div>
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<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="BACKGROUND-COLOR: transparent; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> <em>Hedging.</em> We account for derivative instruments as either assets or liabilities and carry them at fair value. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and the resulting designation. For derivative instruments designated as a fair value hedge, the gain or loss is recognized in earnings in the period of change together with the offsetting loss or gain on the hedged item attributed to the risk being hedged. For a derivative instrument designated as a cash flow hedge, the effective portion of the derivative's gain or loss is initially reported as a component of Accumulated other comprehensive loss in shareholders' equity and subsequently reclassified into earnings when the hedged exposure affects earnings. The ineffective portion of the gain or loss is reported in earnings immediately. For derivative instruments that are not designated as accounting hedges under the Derivatives and Hedging Topic of the Financial Accounting Standards Board (FASB guidance), changes in fair value are recognized in earnings in the period of change. The Company does not hold or issue derivative financial instruments for speculative trading purposes. We only enter into derivatives with one counterparty which is among one of the largest U.S. banks ranked by assets, in order to minimize its credit risk and to date, no such counterparty has failed to meet its financial obligations under such contracts. 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.</p> <p style="BACKGROUND-COLOR: transparent; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="BACKGROUND-COLOR: transparent; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> We operate on a global basis and are exposed to the risk that our financial condition, results of operations and cash flows could be adversely affected by changes in foreign currency exchange rates. To reduce the potential effects of foreign exchange rate movements on our net equity investment in one of our foreign subsidiaries, and the gross profit and net earnings of certain of our foreign subsidiaries, we enter into derivative financial instruments in the form of foreign exchange forward contracts with a major financial institution. We are primarily exposed to foreign currency exchange rate risk with respect to transactions and net assets denominated in Euros, Pounds Sterling, Canadian Dollars, Indian Rupee, South African Rand, Singapore Dollars, Chinese Yuan, Polish Zloty, and New Taiwan Dollars.</p> <p style="BACKGROUND-COLOR: transparent; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="BACKGROUND-COLOR: transparent; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> We account for derivative instruments designated as hedging instruments in accordance with FASB guidance related to accounting for derivative instruments and report all derivative instruments as assets or liabilities at fair value on our consolidated balance sheet.</p> <p style="BACKGROUND-COLOR: transparent; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="BACKGROUND-COLOR: transparent; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> <u>Derivatives Designated as Hedging Instruments</u></p> <p style="BACKGROUND-COLOR: transparent; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="BACKGROUND-COLOR: transparent; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; 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 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="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> We had forward contracts outstanding as of October 31, 2013, in Euros, Pounds Sterling and New Taiwan Dollars with set maturity dates ranging from November 2013 through October 2014. The contract amount at forward rates in U.S. Dollars at October 31, 2013 for Euros and Pounds Sterling was $28.3 million and $9.1 million, respectively. The contract amount at forward rates in U.S. Dollars for New Taiwan Dollars was $19.7 million at October 31, 2013. At October 31, 2013, we had approximately $974,000 of losses, net of tax, related to cash flow hedges deferred in Accumulated Other Comprehensive Loss. Of this amount, $451,000 represents unrealized losses, net of tax, related to cash flow hedge instruments that remain subject to currency fluctuation risk. The majority of these deferred losses will be recorded as an adjustment to Cost of sales and service in periods through October 2014, in which the corresponding inventory that is the subject of the related hedge contract is sold, as described above.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; 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 entered into a forward contract with a notional amount of €3.0 million in November 2012. We designated this forward contract as a hedge of our net investment in Euro denominated assets. We selected the forward method under the FASB guidance related to the accounting for derivatives instruments and hedging activities. The forward method requires all changes in the fair value of the contract to be reported as a cumulative translation adjustment in Accumulated other comprehensive loss, net of tax, in the same manner as the underlying hedged net assets. This forward contract matured in November 2013 and we entered into a new forward contract for the same notional amount that is set to mature in November 2014. As of October 31, 2013, we had a realized gain of $364,000 and an unrealized loss of $138,000, net of tax, recorded as cumulative translation adjustments in Accumulated other comprehensive loss, related to these forward contracts.</p> <p style="COLOR: black; FONT: 10pt Courier; MARGIN: 0pt 0px"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> <u>Derivatives Not Designated as Hedging Instruments</u></p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; 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 FASB guidance and, as a result, changes in their fair value are reported currently as Other expense, net in the Consolidated Statements of Income consistent with the transaction gain or loss on the related receivables and payables denominated in foreign currencies.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> We had forward contracts outstanding as of October 31, 2013, in Euros, Pounds Sterling, Canadian Dollars, South African Rand, and New Taiwan Dollars with set maturity dates ranging from November 2013 through April 2014. The contract amounts at forward rates in U.S. Dollars at October 31, 2013 for Euros, Pounds Sterling, Canadian Dollars, South African Rand and Singapore Dollars totaled $33.5 million. The contract amount at forward rates in U.S. Dollars for New Taiwan Dollars was $10.7 million at October 31, 2013.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> <u>Fair Value of Derivative Instruments</u></p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> We recognize the fair value of derivative instruments as assets and liabilities on a gross basis on our Consolidated Balance Sheets. As of October 31, 2013 and October 31, 2012, all derivative instruments were recorded at fair value on the balance sheets as follows (in thousands):</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <table style="WIDTH: 100%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="4" nowrap="nowrap">2013</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="4" nowrap="nowrap">2012</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: center" nowrap="nowrap"> Balance Sheet</td> <td nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Fair</td> <td nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: center" nowrap="nowrap"> Balance Sheet</td> <td nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Fair</td> <td nowrap="nowrap"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black" nowrap="nowrap">Derivatives</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" nowrap="nowrap">Location</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Value</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" nowrap="nowrap">Location</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Value</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; FONT-WEIGHT: bold; TEXT-ALIGN: left"> Designated as Hedging Instruments:</td> <td><font style="COLOR: black"> </font> </td> <td><font style="COLOR: black"> </font> </td> <td><font style="COLOR: black"> </font> </td> <td style="TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="TEXT-ALIGN: right"><font style="COLOR: black"> </font> </td> <td style="TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td><font style="COLOR: black"> </font> </td> <td><font style="COLOR: black"> </font> </td> <td><font style="COLOR: black"> </font> </td> <td style="TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="TEXT-ALIGN: right"><font style="COLOR: black"> </font> </td> <td style="TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 38%">Foreign exchange forward contracts</td> <td style="WIDTH: 1%"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 19%">Derivative assets</td> <td style="WIDTH: 1%"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 8%">244</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="WIDTH: 1%"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 19%">Derivative assets</td> <td style="WIDTH: 1%"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 8%">705</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; TEXT-ALIGN: left">Foreign exchange forward contracts</td> <td><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left">Derivative liabilities</td> <td><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left">$</td> <td style="COLOR: black; TEXT-ALIGN: right">1,158</td> <td style="TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left">Derivative liabilities</td> <td><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left">$</td> <td style="COLOR: black; TEXT-ALIGN: right">492</td> <td style="TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; FONT-WEIGHT: bold; TEXT-ALIGN: left">Not Designated as Hedging Instruments:</td> <td><font style="COLOR: black"> </font> </td> <td><font style="COLOR: black"> </font> </td> <td><font style="COLOR: black"> </font> </td> <td style="TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="TEXT-ALIGN: right"><font style="COLOR: black"> </font> </td> <td style="TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td><font style="COLOR: black"> </font> </td> <td><font style="COLOR: black"> </font> </td> <td><font style="COLOR: black"> </font> </td> <td style="TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="TEXT-ALIGN: right"><font style="COLOR: black"> </font> </td> <td style="TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; TEXT-ALIGN: left">Foreign exchange forward contracts</td> <td><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left">Derivative assets</td> <td><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left">$</td> <td style="COLOR: black; TEXT-ALIGN: right">455</td> <td style="TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left">Derivative assets</td> <td><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left">$</td> <td style="COLOR: black; TEXT-ALIGN: right">3</td> <td style="TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; TEXT-ALIGN: left">Foreign exchange forward contracts</td> <td><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left">Derivative liabilities</td> <td><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left">$</td> <td style="COLOR: black; TEXT-ALIGN: right">54</td> <td style="TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left">Derivative liabilities</td> <td><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left">$</td> <td style="COLOR: black; TEXT-ALIGN: right">77</td> <td style="TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="BACKGROUND-COLOR: transparent; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> <u>Effect of Derivative Instruments on the Consolidated Balance Sheets, Statements of Changes in Shareholders' Equity and Statements of Operations</u></p> <p style="BACKGROUND-COLOR: transparent; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="BACKGROUND-COLOR: transparent; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> Derivative instruments had the following effects on our Consolidated Balance Sheets, Statements of Changes in Shareholders' Equity and Statements of Income, net of tax during the year ended October 31, 2013 and 2012 (in thousands):</p> <p style="BACKGROUND-COLOR: transparent; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <table style="WIDTH: 100%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black" nowrap="nowrap">Derivatives</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="6" nowrap="nowrap">Amount of Gain (Loss)<br /> Recognized in Other<br /> Comprehensive Income</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" nowrap="nowrap">Location of Gain (Loss)<br /> Reclassified from Other<br /> Comprehensive Income</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="6" nowrap="nowrap">Amount of Gain (Loss)<br /> Reclassified from Other<br /> Comprehensive Income</td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="2">2013</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black" colspan="2">2012</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; PADDING-BOTTOM: 1pt"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: center"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="2">2013</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="2">2012</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; FONT-WEIGHT: bold">Designated as Hedging Instruments:<br /> (Effective Portion)</td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: center" colspan="2"><font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" colspan="2"><font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: center"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: center" colspan="2"><font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: center" colspan="2"><font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black"> <font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 40%">Foreign exchange forward contracts<br /> - Intercompany sales/purchases</td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 8%">(1,445</td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">)</td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 8%">2,946</td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: center; WIDTH: 15%">Cost of sales and service</td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 8%">1,690</td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 8%">(172</td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; TEXT-ALIGN: left">Foreign exchange forward contract<br /> - Net Investment</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left">$</td> <td style="COLOR: black; TEXT-ALIGN: right">(173</td> <td style="COLOR: black; TEXT-ALIGN: left">)</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left">$</td> <td style="COLOR: black; TEXT-ALIGN: right">292</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: center"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: right"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: right"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> </tr> </table> <p style="BACKGROUND-COLOR: transparent; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="BACKGROUND-COLOR: transparent; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> We recognized a loss of $37,000 during the year ended October 31, 2013 and a gain of $482,000 during the year ended October 31, 2012 as a result of contracts closed early that were deemed ineffective for financial reporting purposes and did not qualify as cash flow hedges.</p> <p style="BACKGROUND-COLOR: transparent; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <table style="WIDTH: 85%; BORDER-COLLAPSE: collapse; FONT: 10pt Courier New, Courier, Monospace" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif" nowrap="nowrap">Derivatives</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: center" nowrap="nowrap">Location of Gain (Loss)<br /> Recognized in Operations</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: center" colspan="6" nowrap="nowrap">Amount of Gain (Loss)<br /> Recognized in Operations<br /> (in thousands)</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: center"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: center"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: center"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: center"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: center" colspan="2">2013</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: center"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: center"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: center" colspan="2">2012</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: center"> <font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; FONT-WEIGHT: bold; TEXT-ALIGN: left; WIDTH: 55%"> Not Designated as Hedging Instruments:</td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="WIDTH: 14%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="WIDTH: 12%; COLOR: black; TEXT-ALIGN: right"><font style="COLOR: black"> </font> </td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="WIDTH: 12%; COLOR: black; TEXT-ALIGN: right"><font style="COLOR: black"> </font> </td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> Foreign exchange forward contracts</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> Other income (expense)</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> $</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> (1,786</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> )</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> $</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 1,013</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> The following table presents the changes in the components of Accumulated other comprehensive loss, net of tax, for the fiscal years ended October 31, 2013, 2012 and 2011, respectively.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> <em> </em></p> <table style="WIDTH: 100%; BORDER-COLLAPSE: collapse; FONT: 10pt Courier New, Courier, Monospace" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Foreign<br /> Currency<br /> Translation</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Cash Flow<br /> Hedges</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Total</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black" colspan="2"><font style="COLOR: black"> </font> </td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black" colspan="2"><font style="COLOR: black"> </font> </td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black" colspan="2"><font style="COLOR: black"> </font> </td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; WIDTH: 55%"> Balance, October 31, 2011</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; WIDTH: 1%; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left; WIDTH: 1%"> $</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right; WIDTH: 12%"> (1,070</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left; WIDTH: 1%"> )</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; WIDTH: 1%; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left; WIDTH: 1%"> $</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right; WIDTH: 12%"> (924</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left; WIDTH: 1%"> )</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; WIDTH: 1%; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left; WIDTH: 1%"> $</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right; WIDTH: 12%"> (1,994</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left; WIDTH: 1%"> )</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> Other comprehensive income (loss) before reclassifications</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> (838</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> )</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 1,870</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 1,032</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 1pt"> Reclassifications</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> -</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 109</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 109</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 1pt"> Balance, October 31, 2012</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> (1,908</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> )</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 1,055</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> (853</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> )</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> Other comprehensive income (loss) before reclassifications</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 892</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> (932</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> )</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> (40</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> )</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 1pt"> Reclassifications</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> -</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> (1,091</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> )</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> (1,091</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> )</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 2.5pt"> Balance, October 31, 2013</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 2.5pt"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> (1,016</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> )</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 2.5pt"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> (968</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> )</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 2.5pt"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> (1,984</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> )</td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> <em> </em></p> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <table style="MARGIN-BOTTOM: 0px; FONT: 10pt Times New Roman, Times, Serif; MARGIN-TOP: 0px" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top; TEXT-ALIGN: justify"> <td style="WIDTH: 0in"> </td> <td style="WIDTH: 0.5in; TEXT-ALIGN: left"><strong>9.</strong></td> <td style="TEXT-ALIGN: justify"><strong>STOCK-BASED COMPENSATION</strong></td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> 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 under the 2008 Plan. No stock option may be exercised more than ten years after the date of grant or such shorter period as the Compensation Committee may determine at the date of grant. The total number of shares of our common stock that may be issued as awards under the 2008 Plan is 750,000. 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="TEXT-ALIGN: center; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> During fiscal 2013, 2012 and 2011, we recorded approximately $979,000, $870,000 and $470,000, respectively, of stock-based compensation expense related to grants under the plans. As of October 31, 2013, there was approximately $896,000 of total unrecognized stock-based compensation cost that we expect to recognize by the end of the first quarter of fiscal 2016.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> During fiscal 2013, options to purchase 11,369 shares were exercised, resulting in cash proceeds of approximately $303,000.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> On March 14, 2013, the Compensation Committee granted a total of 6,230 shares of restricted stock to our non-employee directors. The restricted stock vests in full one year from the date of grant provided the recipient remains on the board of directors through that date. The grant date fair value of the restricted stock is based on the closing sales price of our common stock on the grant date which was $28.08 per share.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> On December 12, 2012, the Compensation Committee granted a total of 24,976 stock options under the 2008 Plan to our executive officers. The fair value of the options was estimated on the date of grant using a Black-Scholes valuation model with assumptions for expected volatility based on the historical volatility of our common stock of 62%, expected term of the options of five years, dividend yield rate of 0% and a risk-free interest rate of .66% based upon the five-year U.S. Treasury yield as of the date of grant. The options vest over a three-year period beginning one year from the date of grant. Based upon the foregoing factors, the grant date fair value of the stock options was determined to be $12.11 per share.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> On December 12, 2012, the Compensation Committee granted a total of 12,983 shares of restricted stock to our executive officers. The restricted stock vests in full three years from the date of grant provided the recipient remains employed by us through that date. The grant date fair value of the restricted stock is based on the closing sales price of our common stock on the grant date which was $23.30 per share.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> On March 15, 2012, the Compensation Committee granted a total of 6,475 shares of restricted stock to our non-employee directors. The restricted stock vests in full one year from the date of grant provided the recipient remains on the board of directors through that date. The grant date fair value of the restricted stock is based on the closing sales price of our common stock on the grant date which was $27.00 per share.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> On December 14, 2011, the Compensation Committee granted a total of 45,236 stock options under the 2008 Plan to our executive officers. The fair value of the options was estimated on the date of grant using a Black-Scholes valuation model with assumptions for expected volatility based on the historical volatility of our common stock of 64%, expected term of the options of five years, dividend yield rate of 0% and a risk-free interest rate of .86% based upon the five-year U.S. Treasury yield as of the date of grant. The options vest over a three-year period beginning one year from the date of grant. Based upon the foregoing factors, the grant date fair value of the stock options was determined to be $11.50 per share.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> On December 14, 2011, the Compensation Committee granted a total of 24,243 shares of restricted stock to our executive officers. The restricted stock vests in full three years from the date of grant provided the recipient remains employed by us through that date. The grant date fair value of the restricted stock is based on the closing sales price of our common stock on the grant date which was $21.45 per share.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> During fiscal 2012, options to purchase 500 shares were exercised, resulting in cash proceeds of approximately $1,000.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> On March 17, 2011, the Compensation Committee granted a total of 5,859 shares of restricted stock under the 2008 Plan to our non-employee directors. The restricted stock vests one year from the date of grant provided the recipient remains on the board of directors through that date. The grant date fair value of the restricted stock is based on the closing sales price of our common stock on the grant date which was $29.86 per share.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> On December 22, 2010, the Compensation Committee granted a total of 25,000 shares of restricted stock under the 2008 Plan to our executive officers. The restricted stock vests in full three years from the date of grant provided the recipient remains employed by us through that date. The grant date fair value of the restricted stock is based on the closing sales price of our common stock on the grant date which was $23.10 per share.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> <strong> </strong></p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> A reconciliation of the Company's restricted stock activity and related information is as follows:</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <table style="WIDTH: 88%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0" align="center"> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Number of<br /> Shares</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Weighted Average<br /> Grant Date<br /> Fair Value</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="WIDTH: 64%">Unvested at October 31, 2012</td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> <td style="WIDTH: 15%; TEXT-ALIGN: right">55,718</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 15%; TEXT-ALIGN: right">22.84</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td>Shares granted</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">19,213</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">24.85</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td>Shares vested</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">(6,475</td> <td style="TEXT-ALIGN: left">)</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">27.00</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td>Shares cancelled</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: rgb(204,255,204)"> <td>Unvested at October 31, 2013</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">68,456</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">23.01</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> A summary of the status of the options as of October 31, 2013, 2012 and 2011 and the related activity for the year is as follows:</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <table style="WIDTH: 92%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0" align="center"> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Shares Under<br /> Option</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Weighted Average<br /> Exercise Price Per Share</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="WIDTH: 58%">Balance October 31, 2010</td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> <td style="WIDTH: 18%; TEXT-ALIGN: right">115,369</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 18%; TEXT-ALIGN: right">20.66</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="PADDING-LEFT: 0.125in">Granted</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: rgb(204,255,204)"> <td style="PADDING-LEFT: 0.125in">Cancelled</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 style="PADDING-LEFT: 0.125in">Expired</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: rgb(204,255,204)"> <td style="PADDING-BOTTOM: 1pt; PADDING-LEFT: 0.125in"> Exercised</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> -</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> -</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td>Balance October 31, 2011</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">115,369</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">20.66</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="PADDING-LEFT: 0.125in">Granted</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">45,236</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">21.45</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="PADDING-LEFT: 0.125in">Cancelled</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">(5,000</td> <td style="TEXT-ALIGN: left">)</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">26.69</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="PADDING-LEFT: 0.125in">Expired</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 style="PADDING-BOTTOM: 1pt; PADDING-LEFT: 0.125in"> Exercised</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> (500</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">)</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 2.15</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td>Balance October 31, 2012</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">155,105</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">20.75</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="PADDING-LEFT: 0.125in">Granted</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">24,976</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">23.30</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="PADDING-LEFT: 0.125in">Cancelled</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 style="PADDING-LEFT: 0.125in">Expired</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: rgb(204,255,204)"> <td style="PADDING-BOTTOM: 1pt; PADDING-LEFT: 0.125in"> Exercised</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> (11,369</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">)</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 26.69</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="PADDING-BOTTOM: 2.5pt">Balance October 31, 2013</td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 168,712</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 20.73</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> </tr> </table> <p style="TEXT-ALIGN: center; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> <strong> </strong></p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> The total intrinsic value of stock options exercised during the twelve months ended October 31, 2013, 2012 and 2011 was approximately $0, $10,000 and $0, respectively.</p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> As of October 31, 2013, the total intrinsic value of outstanding stock options already vested and expected to vest and the intrinsic value of options that are outstanding and exercisable was $786,000. Stock options outstanding and exercisable on October 31, 2013, are as follows:</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <table style="WIDTH: 95%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0" align="center"> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Range of Exercise<br /> Prices Per Share</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Shares Under<br /> Option</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Weighted Average<br /> Exercise Price Per<br /> Share</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Weighted Average<br /> Remaining Contractual<br /> Life in Years</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: left" colspan="2"> Outstanding</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 23%; TEXT-ALIGN: right">14.82</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: 22%; TEXT-ALIGN: right">30,000</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: 22%; TEXT-ALIGN: right">14.82</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: 22%; TEXT-ALIGN: right">6.1</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">14.88</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">21,000</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">14.88</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">5.5</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">18.13</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">20,000</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">18.13</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">6.5</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">21.45</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">45,236</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">21.45</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">8.1</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">23.30</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">24,976</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">23.30</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">9.1</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">26.69</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">17,500</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">26.69</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">3.0</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 35.83</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 10,000</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 35.83</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 4.6</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 14.82 - 35.83</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 168,712</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 20.73</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 6.7</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: left" colspan="2"> Exercisable</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">14.82</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">30,000</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">14.82</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">6.1</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">14.88</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">14,000</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">14.88</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">3.6</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">18.13</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">20,000</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">18.13</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">6.5</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">21.45</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">15,079</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">21.45</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">2.7</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">26.69</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">17,500</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">26.69</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">3.0</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 35.83</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 10,000</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 35.83</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 4.6</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; FONT-SIZE: 10pt; TEXT-ALIGN: right"> 14.82 - 35.83</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 106,579</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 20.31</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 4.7</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> <strong> </strong></p> <!--EndFragment--></div> </div>
1.26
2.41
1.72
0.71
0.46
0.61
0.63
0.35
0.49
0.13
0.29
1.25
2.40
1.71
0.71
0.45
0.61
0.63
0.34
0.48
0.13
0.29
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> <em>Earnings Per Share.</em> Basic earnings per share is calculated by dividing net income by the weighted-average number of common shares actually outstanding during the period. Diluted earnings per share assumes the issuance of additional shares of common stock upon exercise of all outstanding stock options and contingently issuable securities if the effect is dilutive, in accordance with the treasury stock method discussed in FASB issued guidance on "Earnings Per Share". The following table presents a reconciliation of our basic and diluted earnings per share computation:</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <table style="WIDTH: 85%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: center" colspan="22" nowrap="nowrap">Fiscal Year Ended</td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: center" colspan="22" nowrap="nowrap">October 31,</td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black">(in thousands, except per share</font><font style="FONT-FAMILY: Times New Roman, Times, Serif"><br /> <font style="COLOR: black">amount)</font></font></td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: center" colspan="6" nowrap="nowrap">2013</td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: center" colspan="6" nowrap="nowrap">2012</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="6" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black">2011 </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Basic</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Diluted</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Basic</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Diluted</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Basic</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Diluted</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left; WIDTH: 22%"> Net income</td> <td style="WIDTH: 1%; COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left; WIDTH: 1%"> $</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right; WIDTH: 10%"> 8,190</td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="WIDTH: 1%; COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left; WIDTH: 1%"> $</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right; WIDTH: 10%"> 8,190</td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="WIDTH: 1%; COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left; WIDTH: 1%"> $</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right; WIDTH: 10%"> 15,638</td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="WIDTH: 1%; COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left; WIDTH: 1%"> $</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right; WIDTH: 10%"> 15,638</td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="WIDTH: 1%; COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left; WIDTH: 1%"> $</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right; WIDTH: 10%"> 11,124</td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="WIDTH: 1%; COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left; WIDTH: 1%"> $</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right; WIDTH: 10%"> 11,124</td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left; PADDING-LEFT: 0.125in; TEXT-INDENT: -0.125in"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black">Undistributed earnings</font> <font style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif">allocated to participating shares</font></td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> (86</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> )</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> (86</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> )</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> (134</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> )</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> (134</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> )</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> (53</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> )</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> (53</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> )</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-LEFT: 0.125in; TEXT-ALIGN: left; TEXT-INDENT: -0.125in"> Net income applicable to common shareholders</td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> $</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 8,104</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> $</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 8,104</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> $</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 15,504</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> $</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 15,504</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> $</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 11,071</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> $</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 11,071</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; PADDING-LEFT: 0.125in; TEXT-INDENT: -0.125in"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black">Weighted average shares</font> <font style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif">outstanding</font></td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 6,455</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 6,455</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 6,445</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 6,445</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 6,441</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Courier New, Courier, Monospace; TEXT-ALIGN: right"> 6,441</td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> Stock options</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> -</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 42</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> -</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 25</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> -</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 31</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 6,455</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 6,497</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 6,445</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 6,470</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 6,441</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 6,472</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 2.5pt"> Income per share</td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 1.26</td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 1.25</td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 2.41</td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 2.40</td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 1.72</td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 1.71</td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> <em> </em></p> <!--EndFragment--></div> </div>
0.34
0.28
0.29
0.35
0.35
0.35
0.05
0.01
-0.01
-0.06
-0.06
-0.05
0.02
-0.01
0.01
0.01
0.01
0.01
-0.03
-0.02
-0.02
275000
-725000
-67000
896000
0.35
2700000
2400000
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <table style="WIDTH: 90%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="PADDING-BOTTOM: 1pt">(in thousands)</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2">2013</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2">2012</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2">2011</td> <td style="PADDING-BOTTOM: 1pt"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="WIDTH: 55%; TEXT-ALIGN: left">Net Sales</td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">12,312</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">12,252</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">10,938</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left">Gross Profit</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1,949</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1,735</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1,284</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="TEXT-ALIGN: left">Operating Income (Loss)</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">544</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">340</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">(97</td> <td style="TEXT-ALIGN: left">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left">Net Income (Loss)</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">747</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">882</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">202</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <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 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="TEXT-ALIGN: left">Current Assets</td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">8,755</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">7,091</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">8,201</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td>Non-current Assets</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">2,820</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">2,610</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">2,133</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left">Current Liabilities</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">2,846</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1,702</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">3,298</td> <td style="TEXT-ALIGN: left"> </td> </tr> </table> <!--EndFragment--></div> </div>
8755000
7091000
8201000
2846000
1702000
3298000
1949000
1735000
1284000
747000
882000
202000
2820000
2610000
2133000
12312000
12252000
10938000
2000
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <table style="MARGIN-BOTTOM: 0px; FONT: 10pt Times New Roman, Times, Serif; MARGIN-TOP: 0px" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top; TEXT-ALIGN: justify"> <td style="WIDTH: 0.5in; TEXT-ALIGN: left"><strong>6.</strong></td> <td style="TEXT-ALIGN: justify"><strong>FINANCIAL INSTRUMENTS</strong></td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> <em>Estimated Fair Value of Financial Instruments</em></p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> <em> </em></p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> The carrying amounts for cash and cash equivalents approximate their fair values due to the short maturity of these instruments and meet the Level 1 criteria of the three-tier fair value hierarchy discussed below. The carrying amount of short-term debt approximates fair value due to the variable rate of the interest and the short term nature of the instrument. Accordingly, the fair value is based on an internally developed model using current interest rate data for similar issues and there is no active markets for this type of facility and meets the Level 2 criteria of the three-tier fair value hierarchy discussed below.</p> <p style="TEXT-ALIGN: center; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> <strong> </strong></p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> 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="TEXT-ALIGN: justify; FONT: 10pt Courier; MARGIN: 0pt 0px"> </p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> In accordance with this guidance, the following table represents the fair value hierarchy for our financial assets and liabilities measured at fair value as of October 31, 2013 (in thousands):</p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 0.25in; TEXT-INDENT: 0.5in"> </p> <table style="WIDTH: 95%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="6" nowrap="nowrap">Assets</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="6" nowrap="nowrap">Liabilities</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap"> </td> <td nowrap="nowrap"> </td> <td style="TEXT-ALIGN: center" colspan="2" nowrap="nowrap">October 31,</td> <td nowrap="nowrap"> </td> <td nowrap="nowrap"> </td> <td style="TEXT-ALIGN: center" colspan="2" nowrap="nowrap">October 31,</td> <td nowrap="nowrap"> </td> <td nowrap="nowrap"> </td> <td style="TEXT-ALIGN: center" colspan="2" nowrap="nowrap">October 31,</td> <td nowrap="nowrap"> </td> <td nowrap="nowrap"> </td> <td style="TEXT-ALIGN: center" colspan="2" nowrap="nowrap">October 31,</td> <td nowrap="nowrap"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2013</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2012</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2013</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2012</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="TEXT-DECORATION: underline">Level 1</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 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 style="WIDTH: 40%; TEXT-ALIGN: left">Deferred compensation</td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">1,073</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">861</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">-</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">-</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-DECORATION: underline">Level 2</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td>Derivatives</td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">699</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">708</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">1,212</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">569</td> <td style="TEXT-ALIGN: left"> </td> </tr> </table> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> <em>Recurring Fair Value Measurements</em></p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> <em> </em></p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> 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="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> Included as Level 2 fair value measurements are derivative assets and liabilities related to gains and losses on foreign currency forward exchange contracts entered into with a third party. We estimate the fair value of these derivatives on a recurring basis using foreign currency exchange rates obtained from active markets. Derivative instruments are reported in the accompanying consolidated financial statements at fair value. We have derivative financial instruments in the form of foreign currency forward exchange contracts as described in Note 1 of Notes to Consolidated Financial Statements in which the U.S. Dollar equivalent notional amount of these contracts was $105.0 million and $107.3 million at October 31, 2013 and 2012, respectively. The fair value of Derivative assets recorded on our Consolidated Balance Sheets at October 31, 2013 and 2012 was $699,000 and $708,000, respectively. The fair value of Derivative liabilities recorded on our Consolidated Balance Sheets at October 31, 2013 and 2012 was $1.2 million and $569,000, respectively.</p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> <strong> </strong></p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> The fair value of the foreign currency forward exchange contracts and the related currency positions are subject to offsetting market risk resulting from foreign currency exchange rate volatility. The counterparty to the forward exchange contract is a substantial and creditworthy financial institution. We do not consider either the risk of counterparty non-performance or the economic consequences of counterparty non-performance as material risks.</p> <p style="TEXT-ALIGN: center; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> <strong> </strong></p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> <em>Nonrecurring Fair Value Measurements</em></p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> 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. Assets and liabilities acquired in business combinations are recorded at their fair value as of the date of acquisition. Refer to Note 4 for the fair values of assets acquired and liabilities assumed in connection with the LCM acquisition.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> 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 3, in the event that we were required to measure and record such assets at fair value within the consolidated financial statements. See Note 1 for further information on goodwill.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> 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 3, in the event that we were required to measure and record such assets at fair value within the consolidated financial statements.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> <strong> </strong></p> <!--EndFragment--></div> </div>
2657000
2315000
64000
49000
2363000
2111000
7000
21000
202000
155000
422000
1150000
119000
133000
133000
155000
239000
220000
119000
335000
119000
700000
119000
1025000
119000
4812000
3252000
264000
210000
2973000
2662000
285000
831000
399000
320000
200000
161000
610000
551000
278000
810000
197000
165000
P3Y
P5Y
P13Y
P15Y
P15Y
P13Y
P6Y
P5Y
P8Y
P7Y
-451000
699000
708000
699000
708000
1212000
569000
1200000
569000
1811000
-3003000
-311000
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> <em>Translation of Foreign Currencies</em>. All balance sheet accounts of non-U.S. subsidiaries are translated at the exchange rate as of the end of the year and translation adjustments of foreign currency balance sheets are recorded as a component of Accumulated other comprehensive loss in shareholders' equity. Income and expenses are translated at the average exchange rates during the year. Cumulative foreign currency translation adjustments as of October 31, 2013 were a net loss of $1.2 million and are included in Accumulated other comprehensive loss. Foreign currency transaction gains and losses are recorded as income or expense as incurred and are recorded in Other expense, net.</p> <!--EndFragment--></div> </div>
2807000
233000
2574000
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> <em>Goodwill and Intangible Assets.</em> Goodwill and other separately recognized intangible assets with indefinite lives are not subject to amortization. Annually we review these assets for impairment. We conduct this impairment review more frequently if an event occurs or circumstances change that would indicate the carrying amount may be impaired. For goodwill, we first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of the applicable reporting unit is less than its carrying value. If, after assessing these events or circumstances, we determine that it is not more likely than not that the fair value of such reporting unit is less than its carrying amount, we will proceed to perform a two-step impairment analysis. For other separately recognized intangible assets with indefinite lives, we use a qualitative approach to test such assets for impairment if certain conditions are met. Intangible assets that are determined to have a finite life are amortized over their estimated useful lives and are also subject to review for impairment, if indicators of impairment are identified. The changes in the carrying amounts of goodwill for the years ended October 31, 2013 and 2012 were as follows (in thousands):</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <table style="WIDTH: 75%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0" align="center"> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; TEXT-ALIGN: justify; TEXT-INDENT: 0in; WIDTH: 85%"> Balance as of October 31, 2012</td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 12%">233</td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; PADDING-BOTTOM: 1pt; PADDING-LEFT: 9pt; TEXT-ALIGN: left; TEXT-INDENT: 0in"> Goodwill acquired</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> 2,574</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> Balance as of October 31, 2013</td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; TEXT-ALIGN: right"> 2,807</td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> As of October 31, 2013, the balances of intangible assets, other than goodwill, were as follows (in thousands):</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <table style="WIDTH: 100%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" nowrap="nowrap">Weighted<br /> Average<br /> Amortization<br /> Period</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Gross<br /> Intangible<br /> Assets</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Accumulated<br /> Amortization</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Net Intangible<br /> Assets</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"> </td> <td style="COLOR: black" nowrap="nowrap"> </td> <td style="COLOR: black; TEXT-ALIGN: center" nowrap="nowrap"> </td> <td style="COLOR: black" nowrap="nowrap"> </td> <td style="COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap"> </td> <td style="COLOR: black" nowrap="nowrap"> </td> <td style="COLOR: black" nowrap="nowrap"> </td> <td style="COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap"> </td> <td style="COLOR: black" nowrap="nowrap"> </td> <td style="COLOR: black" nowrap="nowrap"> </td> <td style="COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap"> </td> <td style="COLOR: black" nowrap="nowrap"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 40%">Tradenames and trademarks</td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: center; WIDTH: 14%">13 years</td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 12%">285</td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 12%">(7</td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">)</td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 12%">278</td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; TEXT-ALIGN: left">Tradenames and trademarks</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: center">indefinite</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">60</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">60</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; TEXT-ALIGN: left">Customer relationships</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: center">15 years</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">264</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">(64</td> <td style="COLOR: black; TEXT-ALIGN: left">)</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">200</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black">Technology</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: center">13 years</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">831</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">(21</td> <td style="COLOR: black; TEXT-ALIGN: left">)</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">810</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black">Patents</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: center">6 years</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">2,973</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">(2,363</td> <td style="COLOR: black; TEXT-ALIGN: left">)</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">610</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; PADDING-BOTTOM: 1pt">Other</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: center">8 years</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> 399</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> (202</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> )</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> 197</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt; PADDING-LEFT: 0.125in"> Total</td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; PADDING-BOTTOM: 2.5pt"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; PADDING-BOTTOM: 2.5pt"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; TEXT-ALIGN: right"> 4,812</td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; TEXT-ALIGN: right"> (2,657</td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> )</td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; TEXT-ALIGN: right"> 2,155</td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> As of October 31, 2012, the balances of intangible assets, other than goodwill, were as follows (in thousands):</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <table style="WIDTH: 100%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" nowrap="nowrap">Weighted<br /> Average<br /> Amortization<br /> Period</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Gross<br /> Intangible<br /> Assets</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Accumulated<br /> Amortization</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Net Intangible<br /> Assets</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"> </td> <td style="COLOR: black" nowrap="nowrap"> </td> <td style="COLOR: black; TEXT-ALIGN: center" nowrap="nowrap"> </td> <td style="COLOR: black" nowrap="nowrap"> </td> <td style="COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap"> </td> <td style="COLOR: black" nowrap="nowrap"> </td> <td style="COLOR: black" nowrap="nowrap"> </td> <td style="COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap"> </td> <td style="COLOR: black" nowrap="nowrap"> </td> <td style="COLOR: black" nowrap="nowrap"> </td> <td style="COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap"> </td> <td style="COLOR: black" nowrap="nowrap"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 40%">Tradenames and trademarks</td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: center; WIDTH: 14%"> Indefinite</td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 12%">60</td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 12%">-</td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 12%">60</td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; TEXT-ALIGN: left">Customer relationships</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: center">15 years</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">210</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">(49</td> <td style="COLOR: black; TEXT-ALIGN: left">)</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">161</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black">Patents</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: center">5 years</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">2,662</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">(2,111</td> <td style="COLOR: black; TEXT-ALIGN: left">)</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">551</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; PADDING-BOTTOM: 1pt">Other</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: center">7 years</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> 320</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> (155</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> )</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> 165</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt; PADDING-LEFT: 0.125in"> Total</td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; PADDING-BOTTOM: 2.5pt"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; PADDING-BOTTOM: 2.5pt"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; TEXT-ALIGN: right"> 3,252</td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; TEXT-ALIGN: right"> (2,315</td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> )</td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; TEXT-ALIGN: right"> 937</td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> Intangible asset amortization expense was $342,000, $423,000, and $605,000 for fiscal 2013, 2012 and 2011, respectively. Annual intangible asset amortization expense for the next five fiscal years is estimated to be $422,000 in 2014; $239,000 in 2015; $155,000 in 2016; $133,000 in 2017 and $133,000 in 2018.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <!--EndFragment--></div> </div>
55056000
63181000
55874000
16484000
13393000
16084000
17220000
12916000
15283000
11715000
15142000
1600000
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> <font style="FONT-SIZE: 10pt; COLOR: black"><em>Impairment of Long-Lived Assets.</em></font><font style="COLOR: black; FONT-SIZE: 10pt">We periodically evaluate the carrying value of long-lived assets to be held and used, including property and equipment, software development costs and intangible assets, including goodwill, when events or circumstances warrant such a review. The carrying value of a long-lived asset (or group of assets) to be held and used is considered impaired when the anticipated separately identifiable undiscounted cash flows from such an asset (or group of assets) are less than the carrying value of the asset (or group of assets) in accordance with FASB guidance related to accounting for the impairment or disposal of long-lived assets.</font></p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> <em> </em></p> <!--EndFragment--></div> </div>
4524000
12432000
6098000
7918000
9432000
9521000
12442000
21864000
15619000
228000
276000
53000
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <table style="MARGIN-BOTTOM: 0px; FONT: 10pt Times New Roman, Times, Serif; MARGIN-TOP: 0px" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top; TEXT-ALIGN: justify"> <td style="WIDTH: 0.5in; TEXT-ALIGN: left"><strong>7.</strong></td> <td style="TEXT-ALIGN: justify"><strong>INCOME TAXES</strong></td> </tr> </table> <p style="FONT: 10pt Courier; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> In the fiscal years set forth below, the provision (benefit) for income taxes consisted of the following:</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <table style="WIDTH: 100%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">(in thousands)</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="10" nowrap="nowrap">Year Ended October 31,</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2013</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2012</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2011</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td> </td> <td> </td> <td style="TEXT-ALIGN: center" colspan="2"> </td> <td> </td> <td> </td> <td style="TEXT-ALIGN: center" colspan="2"> </td> <td> </td> <td> </td> <td style="TEXT-ALIGN: center" colspan="2"> </td> <td> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td>Current:</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 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: 55%; TEXT-ALIGN: left; PADDING-LEFT: 0.125in"> U.S. taxes</td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">737</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">5,460</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">3,272</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left; PADDING-LEFT: 0.125in"> Foreign taxes</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 2,606</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 2,612</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 2,595</td> <td style="PADDING-BOTTOM: 1pt; 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">3,343</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">8,072</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">5,867</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td>Deferred:</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 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="TEXT-ALIGN: left; PADDING-LEFT: 0.125in">U.S. taxes</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">855</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">(1,931</td> <td style="TEXT-ALIGN: left">)</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">(1,452</td> <td style="TEXT-ALIGN: left">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left; PADDING-LEFT: 0.125in"> Foreign taxes</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 54</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 85</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 80</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 909</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> (1,846</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">)</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> (1,372</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 4,252</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 6,226</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 4,495</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> </tr> </table> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px">A comparison of income tax expense at the U.S. statutory rate of 35% to the Company's effective tax rate is as follows:</p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <table style="WIDTH: 100%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="PADDING-BOTTOM: 1pt">Income (Loss) before income taxes (in thousands):</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="10">Year Ended October 31,</td> <td style="PADDING-BOTTOM: 1pt"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2">2013</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2">2012</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2">2011</td> <td style="PADDING-BOTTOM: 1pt"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="WIDTH: 55%; PADDING-LEFT: 0.25in">Domestic</td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">4,524</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">12,432</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">6,098</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="PADDING-BOTTOM: 1pt; PADDING-LEFT: 0.25in">Foreign</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 7,918</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 9,432</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 9,521</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left">Earnings (Loss) before taxes on income</td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 12,442</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 21,864</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 15,619</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left">Tax rates:</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 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: rgb(204,255,204)"> <td style="TEXT-ALIGN: left">U.S. statutory rate</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">35</td> <td style="TEXT-ALIGN: left">%</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">35</td> <td style="TEXT-ALIGN: left">%</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">35</td> <td style="TEXT-ALIGN: left">%</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left; PADDING-LEFT: 9pt; TEXT-INDENT: -9pt"> Effect of tax rate of international jurisdictions different than U.S. statutory rates</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">(6</td> <td style="TEXT-ALIGN: left">)%</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">(6</td> <td style="TEXT-ALIGN: left">)%</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">(5</td> <td style="TEXT-ALIGN: left">)%</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="TEXT-ALIGN: left">Valuation allowance</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">5</td> <td style="TEXT-ALIGN: left">%</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1</td> <td style="TEXT-ALIGN: left">%</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">(1</td> <td style="TEXT-ALIGN: left">)%</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left">State taxes</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1</td> <td style="TEXT-ALIGN: left">%</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1</td> <td style="TEXT-ALIGN: left">%</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1</td> <td style="TEXT-ALIGN: left">%</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="TEXT-ALIGN: left">Tax Credits</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">(3</td> <td style="TEXT-ALIGN: left">)%</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">(2</td> <td style="TEXT-ALIGN: left">)%</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">(2</td> <td style="TEXT-ALIGN: left">)%</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="PADDING-BOTTOM: 1pt">Other</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 2</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">%</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> (1</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">)%</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 1</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">%</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left">Effective tax rate</td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 34</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left">%</td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 28</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left">%</td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 29</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left">%</td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> We have not made any provision for U.S. income taxes on the undistributed earnings of our wholly-owned foreign subsidiaries based upon our determination that such earnings will be indefinitely reinvested. Undistributed earnings of our wholly-owned foreign subsidiaries at October 31, 2013 are approximately $63.3 million. In the event these earnings are later distributed to the U.S., such distributions would likely result in additional U.S. tax that may be offset, at least in part by associated foreign tax credits.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-INDENT: 0.5in"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> Deferred income taxes are determined based on the difference between the amounts used for financial reporting purposes and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred taxes are adjusted for changes in tax rates and tax laws when changes are enacted. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> As of October 31, 2013, we have deferred tax assets established for accumulated net operating loss carryforwards of $1.2 million, primarily related to state and foreign jurisdictions. We also have deferred tax assets for research and development tax credits. We have established a valuation allowance against some of these carryforwards due to the uncertainty of their full realization. As of October 31, 2013 and 2012, the balance of this valuation allowance was $1.2 million and $460,000, respectively.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> Significant components of our deferred tax assets and liabilities at October 31, 2013 and 2012 were as follows (in thousands):</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <table style="WIDTH: 100%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="6" nowrap="nowrap">October 31,</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2013</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2012</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="TEXT-ALIGN: left">Deferred Tax Assets:</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="WIDTH: 70%; TEXT-ALIGN: left; PADDING-LEFT: 0.125in">Net derivative instruments</td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">411</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: 12%; TEXT-ALIGN: right">-</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="TEXT-ALIGN: left; PADDING-LEFT: 0.125in">Accrued inventory reserves</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1,002</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">907</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left; PADDING-LEFT: 0.125in">Accrued warranty expenses</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">154</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">171</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="TEXT-ALIGN: left; PADDING-LEFT: 0.125in">Compensation related expenses</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1,572</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1,367</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left; PADDING-LEFT: 0.125in">Other accrued expenses</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">191</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">140</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="TEXT-ALIGN: left; PADDING-LEFT: 0.125in">Net operating loss and credit carryforwards</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1,468</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">922</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="PADDING-BOTTOM: 1pt; PADDING-LEFT: 0.125in">Other</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 409</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 288</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">5,207</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">3,795</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left; PADDING-LEFT: 13.5pt; TEXT-INDENT: -13.5pt"> Less: Valuation allowance on net operating loss and credit carryforwards</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> (1,199</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">)</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> (460</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="TEXT-ALIGN: left; PADDING-LEFT: 0.125in">Deferred tax assets</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">4,008</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">3,335</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> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="TEXT-ALIGN: left">Deferred Tax Liabilities:</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 style="TEXT-ALIGN: left; PADDING-LEFT: 0.125in">Net derivative instruments</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">(799</td> <td style="TEXT-ALIGN: left">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="TEXT-ALIGN: left; PADDING-LEFT: 0.125in">Property and equipment and capitalized software development costs</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">(1,814</td> <td style="TEXT-ALIGN: left">)</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">(1,932</td> <td style="TEXT-ALIGN: left">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left; PADDING-LEFT: 0.125in">Unrealized exchange gain/loss</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">(359</td> <td style="TEXT-ALIGN: left">)</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">(106</td> <td style="TEXT-ALIGN: left">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="PADDING-BOTTOM: 1pt; PADDING-LEFT: 0.125in">Other</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> (498</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">)</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> (219</td> <td style="PADDING-BOTTOM: 1pt; 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> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left">Net deferred tax assets</td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 1,337</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 279</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> As of October 31, 2013, we had deferred tax assets relating to net operating losses carryforwards for international and U.S. income tax purposes of $1.2 million, of which $1.0 million will expire within 5 years and $201,000 will expire between 5 and 20 years. We also had deferred tax assets relating to tax credits of $234,000 which will expire between 10 and 20 years. </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; BACKGROUND-COLOR: white"> A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding the related accrual for interest or penalties, is as follows (in thousands):</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; BACKGROUND-COLOR: white"> </p> <table style="WIDTH: 100%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right" colspan="2">2013</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right" colspan="2">2012</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right" colspan="2">2011</td> <td style="PADDING-BOTTOM: 1pt"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="WIDTH: 55%; TEXT-ALIGN: left">Balance, beginning of year</td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">118</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">244</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">178</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left; PADDING-LEFT: 0.125in">Additions based on tax positions related to the current year</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1,217</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">5</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">66</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="TEXT-ALIGN: left; PADDING-LEFT: 0.125in">Additions (reductions) related to prior years tax positions</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">23</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">(131</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 style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left; PADDING-LEFT: 0.125in"> Reductions due to statute expiration</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> (74</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">)</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> -</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> -</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <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 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="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left">Balance, end of year</td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 1,284</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 118</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 244</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> The entire balance of the unrecognized tax benefits and related interest at October 31, 2013, if recognized, would favorably affect the effective tax rate in future periods.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> We recognize accrued interest and penalties related to unrecognized tax benefits as components of our income tax provision. As of October 31, 2013, the gross amount of interest accrued, reported in other liabilities, was approximately $7,000, which did not include the federal tax benefit of interest deductions. The statute of limitations with respect to unrecognized tax benefits will expire between July 2015 and July 2018.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> Due to the uncertain and complex application of tax regulations, it is possible that the ultimate resolution of future audits may result in liabilities that could be different from this estimate. In such case, we will record additional tax expense or tax benefit in the tax provision (benefit) or reclassify amounts on the consolidated balance sheets in the period in which such the matter is effectively settled with the taxing authority.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-INDENT: 0.5in"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> We file income tax returns in the U.S. federal jurisdiction and various states, local, and non-U.S. jurisdictions. We are under audit by the Internal Revenue Service (IRS) for our federal income tax returns for fiscal years 2011 and 2012. We have been notified by the German taxing authority that they will be auditing the tax returns for fiscal years 2009 to 2012.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-INDENT: 0.5in"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> A summary of open tax years by major jurisdiction is presented below:</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <table style="WIDTH: 100%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top"> <td style="FONT-SIZE: 10pt; PADDING-LEFT: 0.375in; TEXT-ALIGN: justify; WIDTH: 50%"> United States federal</td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: justify; WIDTH: 50%"> Certain fiscal years from 2006 through the current period</td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="FONT-SIZE: 10pt; PADDING-LEFT: 0.375in; TEXT-ALIGN: justify"> Indiana</td> <td style="FONT-SIZE: 10pt; PADDING-LEFT: 0.25in; TEXT-ALIGN: justify"> Fiscal 2008 through the current period</td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="FONT-SIZE: 10pt; PADDING-LEFT: 0.375in; TEXT-ALIGN: justify"> California</td> <td style="FONT-SIZE: 10pt; PADDING-LEFT: 0.25in; TEXT-ALIGN: justify"> Fiscal 2007 through the current period</td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="FONT-SIZE: 10pt; PADDING-LEFT: 0.375in; TEXT-ALIGN: justify"> Germany¹</td> <td style="FONT-SIZE: 10pt; PADDING-LEFT: 0.25in; TEXT-ALIGN: justify"> Fiscal 2009 through the current period</td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="FONT-SIZE: 10pt; PADDING-LEFT: 0.375in; TEXT-ALIGN: justify"> Taiwan</td> <td style="FONT-SIZE: 10pt; PADDING-LEFT: 0.25in; TEXT-ALIGN: justify"> Fiscal 2008 through the current period</td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-INDENT: 0.5in"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> ¹ Includes federal as well as state, provincial or similar local jurisdictions, as applicable.</p> <p style="FONT: 10pt Courier; MARGIN: 0pt 0px"> </p> <!--EndFragment--></div> </div>
2537000
10679000
1381000
2009
2012
4252000
6226000
4495000
2263000
1103000
1641000
1219000
1445000
1329000
263000
1215000
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> <font style="FONT-SIZE: 10pt; COLOR: black"><em>Income Taxes.</em> We account for income taxes and the related accounts under the asset and liability method. Deferred tax assets and liabilities are measured using enacted income tax rates in each jurisdiction in effect for the year in which the temporary differences are expected to be recovered or settled. These deferred tax assets are reduced by a valuation allowance, which is established when it is more likely than not that some portion or all of the deferred tax assets will not be realized.</font> <font style="COLOR: black; FONT-SIZE: 10pt">Our judgment regarding the realization of deferred tax assets may change due to future profitability and market conditions, changes in U.S. or foreign tax laws and other factors. These changes, if any, may require material adjustments to these deferred tax assets and an accompanying reduction or increase in net income in the period when such determinations are made.</font></p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> The determination of our provision for income taxes requires judgment, the use of estimates and the interpretation and application of complex tax laws. Our provision for income taxes reflects a combination of income earned and taxed at the federal and state level in the U.S., as well as in various foreign jurisdictions. We have not provided for any U.S. income taxes on the undistributed earnings of our foreign subsidiaries based upon our determination that such earnings will be indefinitely reinvested abroad. </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> In addition to the risks to the effective tax rate described above, the future effective tax rate reflected in forward-looking statements is based on currently effective tax laws. Significant changes in those laws could materially affect these estimates.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: center"> <strong> </strong></p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> We recognize uncertain tax positions when it is more likely than not that the tax position will be sustained upon examination by relevant taxing authorities, based on the technical merits of the position. The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement.</p> <!--EndFragment--></div> </div>
6000
1459000
1768000
-9594000
8085000
-1885000
343000
5922000
909000
-1846000
-1372000
485000
-68000
330000
1020000
10152000
25702000
-2179000
4495000
2690000
-4660000
8662000
3395000
42000
25000
31000
60000
60000
2155000
937000
280000
168000
143000
176000
127000
23000
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <table style="MARGIN-BOTTOM: 0px; FONT: 10pt Times New Roman, Times, Serif; MARGIN-TOP: 0px" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top; TEXT-ALIGN: justify"> <td style="WIDTH: 0in"> </td> <td style="WIDTH: 0.5in; TEXT-ALIGN: left"><strong>3.</strong></td> <td style="TEXT-ALIGN: justify"><strong>INVENTORIES</strong></td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> Inventories as of October 31, 2013 and 2012 are summarized below (in thousands):</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <table style="WIDTH: 96%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif; MARGIN-LEFT: 0.25in" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2">2013</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2">2012</td> <td style="PADDING-BOTTOM: 1pt"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="WIDTH: 70%; TEXT-ALIGN: left">Purchased parts and sub-assemblies</td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">21,647</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: 12%; TEXT-ALIGN: right">18,780</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td>Work-in-process</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">15,996</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">14,256</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">Finished goods</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 57,617</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 58,284</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 95,260</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 91,320</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> Finished goods inventory consigned to our distributors and agents throughout North America, Europe and Asia was $6.1 million and $4.7 million as of October 31, 2013 and 2012, respectively.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <!--EndFragment--></div> </div>
57617000
58284000
95260000
91320000
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> <em>Inventories</em>. Inventories are stated at the lower of cost or market, with cost determined using the first-in, first-out method. Provisions are made to reduce excess or obsolete inventories to their estimated realizable value.</p> <p style="COLOR: black; FONT: 10pt Courier; FONT-FAMILY: Times New Roman, Times, Serif; MARGIN: 0pt 0px"> <em> </em></p> <!--EndFragment--></div> </div>
21647000
18780000
15996000
14256000
74000
69000
132000
21000
7000
13000
1073000
861000
782000
782000
2016-04-30
3634000
3467000
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> <strong>13. OPERATING LEASES</strong></p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> We lease facilities, certain equipment and vehicles under operating leases that expire at various dates through 2019. Future payments required under operating leases as of October 31, 2013, are summarized as follows (in thousands):</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <table style="WIDTH: 90%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0" align="center"> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="WIDTH: 79%; TEXT-ALIGN: left">2014</td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 18%; TEXT-ALIGN: right">3,013</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left">2015</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1,699</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="TEXT-ALIGN: left">2016</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1,127</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left">2017</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">601</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">2018 and thereafter</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 508</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left">Total</td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 6,948</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> Lease expense for the years ended October 31, 2013, 2012, and 2011 was $3.6 million, $3.3 million, and $3.0 million, respectively.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> We recorded approximately $151,000 of lease income during fiscal 2013 from leasing 45,000 square feet of our Indianapolis facility. The lease expires on April 30, 2016.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <table style="MARGIN-BOTTOM: 0px; FONT: 10pt Times New Roman, Times, Serif; MARGIN-TOP: 0px" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top; TEXT-ALIGN: justify"> <td style="WIDTH: 0in"> </td> <td style="WIDTH: 0.5in; TEXT-ALIGN: left"> <strong>11.</strong></td> <td style="TEXT-ALIGN: justify"><strong>CONTINGENCIES AND LITIGATION</strong></td> </tr> </table> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> We are involved in various claims and lawsuits arising in the normal course of business. 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.</p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <!--EndFragment--></div> </div>
211235000
195312000
55686000
49372000
4058000
2147000
3300000
3200000
383000
2013-12-30
2014-02-22
12500000
3000000
100000000
1000000
1500000
6600000
40000000
15000000
3000000
3400000
100000000
3300000
20000000
22800000
0.0005
19059000
17411000
-4612000
2294000
844000
-3014000
-3773000
-2876000
14385000
-6987000
-1195000
8190000
15638000
11124000
4633000
2962000
3957000
4086000
2254000
3183000
854000
1899000
8190000
15638000
11124000
8104000
15504000
11071000
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="COLOR: #000000; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> <strong>16. NEW ACCOUNTING PRONOUNCEMENTS</strong></p> <p style="COLOR: #000000; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: #000000; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> In February 2013, the FASB issued ASU 2013-02, <em>Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income</em>, which requires companies to provide information about amounts reclassified out of other comprehensive income by component. We are required to present, either on the face of the financial statements or in the notes, the amounts reclassified from other comprehensive income to the respective line items in the Consolidated Statements of Operations. This amendment is effective for interim and annual periods beginning after December 15, 2012. The adoption of this guidance did not have a material impact on our consolidated financial statements.</p> <p style="COLOR: #000000; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <!--EndFragment--></div> </div>
6523000
6633000
7063000
6677000
13586000
13310000
3000000
2006
2008
2007
2009
2008
13643000
22021000
17381000
6754000
4105000
5812000
5350000
3996000
4604000
1703000
3340000
6948000
3013000
508000
601000
1127000
1699000
3600000
3300000
3000000
151000
1200000
1200000
460000
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <table style="MARGIN-BOTTOM: 0px; FONT: 10pt Times New Roman, Times, Serif; MARGIN-TOP: 0px" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top; TEXT-ALIGN: justify"> <td style="WIDTH: 0in"> </td> <td style="WIDTH: 0.5in; TEXT-ALIGN: left"><strong>2.</strong></td> <td style="TEXT-ALIGN: justify"><strong>BUSINESS OPERATIONS</strong></td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> <em>Nature of Business</em>. We design and manufacture computer control systems, software, and computerized machine tools and related components and accessories for machine tools for sale to the worldwide machine tool industry. The machine tool industry is highly cyclical and declines in demand can and will occur abruptly in the geographic markets we serve.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> The end market for our products consists primarily of precision tool, die and mold manufacturers, independent job shops, and specialized short-run production applications within large manufacturing operations. Industries served include: aerospace, defense, medical equipment, energy, automotive/transportation, electronics and computer industries. Our products are sold through independent agents and distributors throughout North America, Europe and Asia. We also have our own direct sales and service organizations in China, France, Germany, India, Italy, Poland, Singapore, South Africa, the United Kingdom, and certain areas of the United States.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> <em>Credit Risk</em>. We sell products to customers located throughout the world. We perform ongoing credit evaluations of customers and generally do not require collateral. Allowances are maintained for potential credit losses. Concentration of credit risk with respect to trade accounts receivable is limited due to the large number of customers and their dispersion across many geographic areas. Although a significant amount of trade receivables are with distributors primarily located in the United States, no single distributor or region represents a significant concentration of credit risk.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> <em>Manufacturing Risk.</em> At present, our wholly-owned subsidiaries, Hurco Manufacturing Ltd. (HML) and Ningbo Hurco Manufacturing Limited (NHML), produce the vast majority of our machine tools. In addition, we manufacture electro-mechanical components and accessories for machine tools through our wholly-owned subsidiary, LCM Precision Technology S.r.l. (LCM). HML, NHML and LCM manufacture their products in Taiwan, China, and Italy, respectively. Any interruption in manufacturing at any of these locations would have an adverse effect on our financial operating results. Interruption in manufacturing at one of these locations could result from a change in the political environment or a natural disaster, such as an earthquake, typhoon, or tsunami. Any interruption with one of our key suppliers may also have an adverse effect on our operating results and our financial condition.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <!--EndFragment--></div> </div>
8014000
7645000
5258000
4713000
-40000
1032000
892000
-838000
-932000
1870000
892000
-838000
363000
-1131000
1141000
-122000
-1131000
1141000
-122000
1091000
-109000
-7000
1091000
-109000
-599000
63000
3000
-932000
1870000
-492000
-512000
1076000
-283000
6100000
4700000
-1244000
-341000
-1817000
256000
42000
34000
646000
646000
380000
380000
1424000
2755000
1745000
956000
977000
1097000
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <table style="MARGIN-BOTTOM: 0px; FONT: 10pt Times New Roman, Times, Serif; MARGIN-TOP: 0px" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top; TEXT-ALIGN: justify"> <td style="WIDTH: 0in"> </td> <td style="WIDTH: 0.5in; TEXT-ALIGN: left"><strong>8.</strong></td> <td style="TEXT-ALIGN: justify"><strong>EMPLOYEE BENEFITS</strong></td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> We have defined contribution plans that include a majority of our employees, under which our matching contributions are primarily discretionary. The purpose of these plans is generally to provide additional financial security during retirement by providing employees with an incentive to save throughout their employment. Our contributions and related expense totaled $787,000, $459,000, and $274,000, for the fiscal years ended October 31, 2013, 2012 and 2011, respectively.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <!--EndFragment--></div> </div>
0.00
0.00
1000000
1000000
0
0
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> <em>Reclassifications.</em> Certain prior year amounts have been reclassified to conform to current year presentation.</p> <!--EndFragment--></div> </div>
2000
1000
2293000
844000
303000
1000
1778000
1623000
1725000
1591000
1778000
1623000
14000
-8000
-15000
3670000
3567000
2993000
3811000
3473000
3142000
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <table style="MARGIN-BOTTOM: 0px; FONT: 10pt Times New Roman, Times, Serif; MARGIN-TOP: 0px" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top; TEXT-ALIGN: justify"> <td style="WIDTH: 0in"> </td> <td style="WIDTH: 0.5in; TEXT-ALIGN: left"> <strong>12.</strong></td> <td style="TEXT-ALIGN: justify"><strong>GUARANTEES AND PRODUCT WARRANTIES</strong></td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> 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="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; FONT: 10pt Times New Roman, Times, Serif; MARGIN-TOP: 0pt"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; BACKGROUND-COLOR: white"> 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 October 31, 2013, we had 20 outstanding third party payment guarantees totaling approximately $1.6 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="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; BACKGROUND-COLOR: white"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; BACKGROUND-COLOR: white"> We provide warranties on our products with respect to defects in material and workmanship. The terms of these warranties are generally one year for machines and shorter periods for service parts. We recognize a reserve with respect to this obligation at the time of product sale, with subsequent warranty claims recorded against the reserve. The amount of the warranty reserve is determined based on historical trend experience and any known warranty issues that could cause future warranty costs to differ from historical experience. A reconciliation of the changes in our warranty reserve is as follows (in thousands):</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <table style="WIDTH: 95%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2">2013</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2">2012</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2">2011</td> <td style="PADDING-BOTTOM: 1pt"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="WIDTH: 55%; TEXT-ALIGN: left">Balance, beginning of year</td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">1,623</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">1,725</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">1,591</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left; PADDING-LEFT: 0.25in; TEXT-INDENT: -9pt"> Provision for warranties during the year</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">3,811</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">3,473</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">3,142</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="TEXT-ALIGN: left; PADDING-LEFT: 0.125in">Charges to the accrual</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">(3,670</td> <td style="TEXT-ALIGN: left">)</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">(3,567</td> <td style="TEXT-ALIGN: left">)</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">(2,993</td> <td style="TEXT-ALIGN: left">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left; PADDING-LEFT: 0.125in"> Impact of foreign currency translation</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 14</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> (8</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">)</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> (15</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left">Balance, end of year</td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 1,778</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 1,623</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 1,725</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> </tr> </table> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> The increase in warranty charges from fiscal 2011 to 2012 is in line with the increased volume of computerized machine tool sales. The warranty accrual increased from fiscal 2012 to 2013 as actual claims for specific warranties accrued in the prior year were more than anticipated resulting in an adjustment to the provision for warranties during the year.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> <strong> </strong></p> <!--EndFragment--></div> </div>
30801000
29012000
12299000
12079000
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> <em>Property and Equipment</em>. Property and equipment are carried at cost. Depreciation and amortization of assets are provided primarily under the straight-line method over the shorter of the estimated useful lives or the lease terms as follows:</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <table style="WIDTH: 75%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0" align="center"> <tr style="VERTICAL-ALIGN: top"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; WIDTH: 50%; PADDING-BOTTOM: 1pt"> <font style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; FONT-FAMILY: Courier New, Courier, Monospace; TEXT-ALIGN: center; WIDTH: 50%"> Number of Years</td> </tr> <tr style="VERTICAL-ALIGN: top; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; FONT-FAMILY: Courier New, Courier, Monospace"> Land</td> <td style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; FONT-FAMILY: Courier New, Courier, Monospace; TEXT-ALIGN: center"> Indefinite</td> </tr> <tr style="VERTICAL-ALIGN: top; BACKGROUND-COLOR: white"> <td style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; FONT-FAMILY: Courier New, Courier, Monospace"> Building</td> <td style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; FONT-FAMILY: Courier New, Courier, Monospace; TEXT-ALIGN: center"> 40</td> </tr> <tr style="VERTICAL-ALIGN: top; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; FONT-FAMILY: Courier New, Courier, Monospace"> Machines</td> <td style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; FONT-FAMILY: Courier New, Courier, Monospace; TEXT-ALIGN: center"> 7 - 10</td> </tr> <tr style="VERTICAL-ALIGN: top; BACKGROUND-COLOR: white"> <td style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; FONT-FAMILY: Courier New, Courier, Monospace"> Shop and office equipment</td> <td style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; FONT-FAMILY: Courier New, Courier, Monospace; TEXT-ALIGN: center"> 3 - 7</td> </tr> <tr style="VERTICAL-ALIGN: top; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; FONT-FAMILY: Courier New, Courier, Monospace"> Leasehold improvements</td> <td style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; FONT-FAMILY: Courier New, Courier, Monospace; TEXT-ALIGN: center"> 3 - 40</td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: left; TEXT-INDENT: 0in"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> Total depreciation and amortization expense recognized for property and equipment for the years ended October 31, 2013, 2012 and 2011 was $2.2 million, $2.2 million, and $2.1 million, respectively.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> </p> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <table style="WIDTH: 75%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0" align="center"> <tr style="VERTICAL-ALIGN: top"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; WIDTH: 50%; PADDING-BOTTOM: 1pt"> <font style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; FONT-FAMILY: Courier New, Courier, Monospace; TEXT-ALIGN: center; WIDTH: 50%"> Number of Years</td> </tr> <tr style="VERTICAL-ALIGN: top; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; FONT-FAMILY: Courier New, Courier, Monospace"> Land</td> <td style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; FONT-FAMILY: Courier New, Courier, Monospace; TEXT-ALIGN: center"> Indefinite</td> </tr> <tr style="VERTICAL-ALIGN: top; BACKGROUND-COLOR: white"> <td style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; FONT-FAMILY: Courier New, Courier, Monospace"> Building</td> <td style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; FONT-FAMILY: Courier New, Courier, Monospace; TEXT-ALIGN: center"> 40</td> </tr> <tr style="VERTICAL-ALIGN: top; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; FONT-FAMILY: Courier New, Courier, Monospace"> Machines</td> <td style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; FONT-FAMILY: Courier New, Courier, Monospace; TEXT-ALIGN: center"> 7 - 10</td> </tr> <tr style="VERTICAL-ALIGN: top; BACKGROUND-COLOR: white"> <td style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; FONT-FAMILY: Courier New, Courier, Monospace"> Shop and office equipment</td> <td style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; FONT-FAMILY: Courier New, Courier, Monospace; TEXT-ALIGN: center"> 3 - 7</td> </tr> <tr style="VERTICAL-ALIGN: top; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; FONT-FAMILY: Courier New, Courier, Monospace"> Leasehold improvements</td> <td style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; FONT-FAMILY: Courier New, Courier, Monospace; TEXT-ALIGN: center"> 3 - 40</td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: left; TEXT-INDENT: 0in"> </p> <!--EndFragment--></div> </div>
P7Y
P10Y
P3Y
P7Y
P3Y
P40Y
P40Y
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> <strong>14. QUARTERLY HIGHLIGHTS (Unaudited)</strong></p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <table style="WIDTH: 100%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">First<br /> Quarter</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Second<br /> Quarter</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Third<br /> Quarter</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Fourth<br /> Quarter</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="TEXT-DECORATION: underline; FONT-WEIGHT: bold; TEXT-ALIGN: left"> 2013 (In thousands, except per share data)</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 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 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: rgb(204,255,204)"> <td style="WIDTH: 40%; TEXT-ALIGN: left">Sales and service fees</td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">44,085</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">49,619</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">45,158</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: 12%; TEXT-ALIGN: right">53,942</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 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: rgb(204,255,204)"> <td style="TEXT-ALIGN: left">Gross profit</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">12,916</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">15,283</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">11,715</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">15,142</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 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: rgb(204,255,204)"> <td style="TEXT-ALIGN: left">Gross profit margin</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">29</td> <td style="TEXT-ALIGN: left">%</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">31</td> <td style="TEXT-ALIGN: left">%</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">26</td> <td style="TEXT-ALIGN: left">%</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">28</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 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: rgb(204,255,204)"> <td style="TEXT-ALIGN: left">Selling, general and administrative expenses</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">8,920</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">10,679</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">10,012</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">11,802</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 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: rgb(204,255,204)"> <td style="TEXT-ALIGN: left">Operating income</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">3,996</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">4,604</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1,703</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">3,340</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 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: rgb(204,255,204)"> <td style="TEXT-ALIGN: left">Provision for income taxes</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1,445</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1,329</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">263</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1,215</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 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: rgb(204,255,204)"> <td style="TEXT-ALIGN: left">Net income</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">2,254</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">3,183</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">854</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1,899</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 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: rgb(204,255,204)"> <td>Income per common share - basic</td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">0.35</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">0.49</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">0.13</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">0.29</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td>Income per common share - diluted</td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">0.34</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">0.48</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">0.13</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">0.29</td> <td style="TEXT-ALIGN: left"> </td> </tr> </table> <p style="FONT: 10pt Courier; MARGIN: 0pt 0px"> </p> <table style="WIDTH: 100%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">First<br /> Quarter</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Second<br /> Quarter</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Third<br /> Quarter</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Fourth<br /> Quarter</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="TEXT-DECORATION: underline; FONT-WEIGHT: bold; TEXT-ALIGN: left"> 2012 (In thousands, except per share data)</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 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 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: rgb(204,255,204)"> <td style="WIDTH: 40%; TEXT-ALIGN: left">Sales and service fees</td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">51,126</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">45,965</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">49,959</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: 12%; TEXT-ALIGN: right">56,067</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 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: rgb(204,255,204)"> <td style="TEXT-ALIGN: left">Gross profit</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">16,484</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">13,393</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">16,084</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">17,220</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 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: rgb(204,255,204)"> <td style="TEXT-ALIGN: left">Gross profit margin</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">32</td> <td style="TEXT-ALIGN: left">%</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">29</td> <td style="TEXT-ALIGN: left">%</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">32</td> <td style="TEXT-ALIGN: left">%</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">31</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 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: rgb(204,255,204)"> <td style="TEXT-ALIGN: left">Selling, general and administrative expenses</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">9,730</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">9,288</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">10,272</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">11,870</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 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: rgb(204,255,204)"> <td style="TEXT-ALIGN: left">Operating income</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">6,754</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">4,105</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">5,812</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">5,350</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 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: rgb(204,255,204)"> <td style="TEXT-ALIGN: left">Provision for income taxes</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">2,263</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1,103</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1,641</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1,219</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 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: rgb(204,255,204)"> <td style="TEXT-ALIGN: left">Net income</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">4,633</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">2,962</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">3,957</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">4,086</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 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: rgb(204,255,204)"> <td>Income per common share - basic</td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">0.71</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">0.46</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">0.61</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">0.63</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td>Income per common share - diluted</td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">0.71</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">0.45</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">0.61</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">0.63</td> <td style="TEXT-ALIGN: left"> </td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <!--EndFragment--></div> </div>
9800000
10200000
9100000
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <table style="MARGIN-BOTTOM: 0px; FONT: 10pt Times New Roman, Times, Serif; MARGIN-TOP: 0px" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top; TEXT-ALIGN: justify"> <td style="WIDTH: 0in"> </td> <td style="WIDTH: 0.5in; TEXT-ALIGN: left"> <strong>10.</strong></td> <td style="TEXT-ALIGN: justify"><strong>RELATED PARTY TRANSACTIONS</strong></td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> As of October 31, 2013, we owned approximately 35% of the outstanding shares of a Taiwanese-based contract manufacturer, Hurco Automation, Ltd. (HAL). HAL's scope of activities includes the design, manufacture, sales and distribution of industrial automation products, software systems and related components, including control systems and components produced under contract for sale exclusively to us. We are accounting for this investment using the equity method. The investment of $2.7 million and $2.4 million at October 31, 2013 and 2012 is included in Investments and other assets, net on the Consolidated Balance Sheets. Purchases of product from HAL amounted to $9.8 million, $10.2 million and $9.1 million in 2013, 2012 and 2011, respectively. Sales of product to HAL were $1.5 million, $1.8 million and $1.9 million for the years ended October 31, 2013, 2012 and 2011, respectively. Trade payables to HAL were $1.3 million and $1.2 million at October 31, 2013 and 2012, respectively. Trade receivables from HAL were $287,000 and $146,000 at October 31, 2013 and 2012, respectively.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> Summary unaudited financial information for HAL's operations and financial conditions is as follows:</p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <table style="WIDTH: 90%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="PADDING-BOTTOM: 1pt">(in thousands)</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2">2013</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2">2012</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2">2011</td> <td style="PADDING-BOTTOM: 1pt"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="WIDTH: 55%; TEXT-ALIGN: left">Net Sales</td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">12,312</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">12,252</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">10,938</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left">Gross Profit</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1,949</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1,735</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1,284</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="TEXT-ALIGN: left">Operating Income (Loss)</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">544</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">340</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">(97</td> <td style="TEXT-ALIGN: left">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left">Net Income (Loss)</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">747</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">882</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">202</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <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 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="TEXT-ALIGN: left">Current Assets</td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">8,755</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">7,091</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">8,201</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td>Non-current Assets</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">2,820</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">2,610</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">2,133</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left">Current Liabilities</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">2,846</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1,702</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">3,298</td> <td style="TEXT-ALIGN: left"> </td> </tr> </table> <!--EndFragment--></div> </div>
4271000
3000000
2600000
2500000
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> <em>Research and Development Costs.</em> The costs associated with research and development programs for new products and significant product improvements, other than software development costs which are eligible for capitalization per FASB guidance, are expensed as incurred and are included in Selling, general and administrative expenses. Research and development expenses totaled $3.0 million, $2.6 million, and $2.5 million, in fiscal 2013, 2012, and 2011, respectively.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> Costs incurred to develop computer software products and significant enhancements to software features of existing products to be sold or otherwise marketed are capitalized, after technological feasibility is established. Software development costs are amortized on a straight-line basis over the estimated product life of the related software, which ranges from three to five years. We capitalized costs of $1.0 million in 2013, $1.0 million in 2012, and $1.1 million in 2011 related to software development projects. Amortization expense for software development costs was $1.2 million, $1.9 million, and $2.2 million, for the years ended October 31, 2013, 2012, and 2011, respectively. Accumulated amortization at October 31, 2013 and 2012 was $13.1 million and $11.9 million, respectively. Estimated amortization expense for the existing amortizable intangible assets for the years ending October 31, is as follows (in thousands):</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <table style="WIDTH: 65%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0" align="center"> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center"> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: center"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: center"> Fiscal Year</p> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="2"><font style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif">Amortization</font><font style="COLOR: black"><br /> <font style="FONT: 10pt Times New Roman, Times, Serif">Expense</font></font></td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; TEXT-ALIGN: center; WIDTH: 82%">2014</td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 15%">1,150</td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; TEXT-ALIGN: center">2015</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">1,025</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; TEXT-ALIGN: center">2016</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">700</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; TEXT-ALIGN: center">2017</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">335</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; TEXT-ALIGN: center">2018</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">220</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <!--EndFragment--></div> </div>
98130000
90586000
1500000
1800000
1900000
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> <em>Revenue Recognition.</em> We recognize revenue from sales of our machine tool systems upon delivery of the product to the customer, which is normally at the time of shipment, because persuasive evidence of an arrangement exists, delivery has occurred, the selling price is fixed and determinable and collectability is reasonably assured. In certain foreign locations, we retain title after shipment under a "retention of title" clause solely to protect collectability. The retention of title is similar to Uniform Commercial Code (UCC) filings in the United States and provides the creditor with additional rights to the machine if the customer fails to pay. Revenue recognition at the time of shipment is appropriate in this instance as long as all risks of ownership have passed to the buyer. Our computerized machine tools are general-purpose computer controlled machine tools that are typically used in stand-alone operations. Transfer of ownership and risk of loss are not contingent upon contractual customer acceptance. Prior to shipment, we test each machine to ensure the machine's compliance with standard operating specifications as listed in our sales literature.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> Depending upon geographic location, after shipment, a machine may be installed at the customer's facilities by a distributor, independent contractor or by one of our service technicians. In most instances where a machine is sold through a distributor, we have no installation involvement. If sales are direct or through sales agents, we will typically complete the machine installation, which consists of the reassembly of certain parts that were removed for shipping and the re-testing of the machine to ensure that it is performing within the standard specifications. We consider the machine installation process to be inconsequential and perfunctory.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> Service fees from maintenance contracts are deferred and recognized in earnings on a pro rata basis over the term of the contract.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> </p> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> <em>Software Revenue Recognition.</em> Sales related to software products are recognized when shipped in conformity with FASB guidance related to software revenue recognition that requires at the time of shipment, persuasive evidence of an arrangement exists, delivery has occurred, the selling price is fixed and determinable and collectability is reasonably assured. The software does not require production, modification or customization.</p> <!--EndFragment--></div> </div>
166896000
179337000
156736000
3066000
2947000
3322000
16474000
15299000
14836000
6368000
5534000
5506000
60660000
60500000
47599000
132144000
142617000
132801000
113334000
118046000
108249000
17401000
23216000
21552000
1409000
1355000
3000000
43597000
49979000
47162000
27343000
28914000
22463000
8738000
6038000
5192000
10918000
9970000
10227000
22738000
23145000
23205000
192804000
203117000
180400000
192804000
203117000
180400000
51126000
45965000
49959000
56067000
44085000
49619000
45158000
53942000
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> <em> </em></p> <table style="WIDTH: 100%; BORDER-COLLAPSE: collapse; FONT: 10pt Courier New, Courier, Monospace" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Foreign<br /> Currency<br /> Translation</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Cash Flow<br /> Hedges</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Total</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black" colspan="2"><font style="COLOR: black"> </font> </td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black" colspan="2"><font style="COLOR: black"> </font> </td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black" colspan="2"><font style="COLOR: black"> </font> </td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; WIDTH: 55%"> Balance, October 31, 2011</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; WIDTH: 1%; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left; WIDTH: 1%"> $</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right; WIDTH: 12%"> (1,070</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left; WIDTH: 1%"> )</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; WIDTH: 1%; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left; WIDTH: 1%"> $</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right; WIDTH: 12%"> (924</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left; WIDTH: 1%"> )</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; WIDTH: 1%; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left; WIDTH: 1%"> $</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right; WIDTH: 12%"> (1,994</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left; WIDTH: 1%"> )</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> Other comprehensive income (loss) before reclassifications</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> (838</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> )</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 1,870</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 1,032</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 1pt"> Reclassifications</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> -</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 109</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 109</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 1pt"> Balance, October 31, 2012</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> (1,908</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> )</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 1,055</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> (853</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> )</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> Other comprehensive income (loss) before reclassifications</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 892</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> (932</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> )</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> (40</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> )</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 1pt"> Reclassifications</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> -</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> (1,091</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> )</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> (1,091</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> )</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 2.5pt"> Balance, October 31, 2013</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 2.5pt"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> (1,016</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> )</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 2.5pt"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> (968</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> )</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 2.5pt"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> (1,984</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> )</td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> <em> </em></p> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <table style="WIDTH: 80%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0" align="center"> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap"> </td> <td nowrap="nowrap"> </td> <td style="TEXT-ALIGN: center" colspan="2" nowrap="nowrap"> </td> <td nowrap="nowrap"> </td> <td nowrap="nowrap"> </td> <td style="TEXT-ALIGN: center" nowrap="nowrap">Remaining<br /> Economic<br /> Useful Life</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="WIDTH: 66%">Trademark/name</td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 15%; TEXT-ALIGN: right">274</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 15%; TEXT-ALIGN: center">13 years</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left">Technology and manufacturing know how</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1,111</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: center">13 years</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">Customer relationships</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 52</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: center">16 years</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left">$</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 1,437</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: center"> </td> </tr> </table> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <table style="WIDTH: 100%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">(in thousands)</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="10" nowrap="nowrap">Year Ended October 31,</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2013</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2012</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2011</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td> </td> <td> </td> <td style="TEXT-ALIGN: center" colspan="2"> </td> <td> </td> <td> </td> <td style="TEXT-ALIGN: center" colspan="2"> </td> <td> </td> <td> </td> <td style="TEXT-ALIGN: center" colspan="2"> </td> <td> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td>Current:</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 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: 55%; TEXT-ALIGN: left; PADDING-LEFT: 0.125in"> U.S. taxes</td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">737</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">5,460</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">3,272</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left; PADDING-LEFT: 0.125in"> Foreign taxes</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 2,606</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 2,612</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 2,595</td> <td style="PADDING-BOTTOM: 1pt; 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">3,343</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">8,072</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">5,867</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td>Deferred:</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 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="TEXT-ALIGN: left; PADDING-LEFT: 0.125in">U.S. taxes</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">855</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">(1,931</td> <td style="TEXT-ALIGN: left">)</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">(1,452</td> <td style="TEXT-ALIGN: left">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left; PADDING-LEFT: 0.125in"> Foreign taxes</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 54</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 85</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 80</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 909</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> (1,846</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">)</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> (1,372</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 4,252</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 6,226</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 4,495</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> </tr> </table> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <table style="WIDTH: 100%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="6" nowrap="nowrap">October 31,</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2013</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2012</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="TEXT-ALIGN: left">Deferred Tax Assets:</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 style="WIDTH: 70%; TEXT-ALIGN: left; PADDING-LEFT: 0.125in">Net derivative instruments</td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">411</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: 12%; TEXT-ALIGN: right">-</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="TEXT-ALIGN: left; PADDING-LEFT: 0.125in">Accrued inventory reserves</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1,002</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">907</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left; PADDING-LEFT: 0.125in">Accrued warranty expenses</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">154</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">171</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="TEXT-ALIGN: left; PADDING-LEFT: 0.125in">Compensation related expenses</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1,572</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1,367</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left; PADDING-LEFT: 0.125in">Other accrued expenses</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">191</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">140</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="TEXT-ALIGN: left; PADDING-LEFT: 0.125in">Net operating loss and credit carryforwards</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1,468</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">922</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="PADDING-BOTTOM: 1pt; PADDING-LEFT: 0.125in">Other</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 409</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 288</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">5,207</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">3,795</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left; PADDING-LEFT: 13.5pt; TEXT-INDENT: -13.5pt"> Less: Valuation allowance on net operating loss and credit carryforwards</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> (1,199</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">)</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> (460</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="TEXT-ALIGN: left; PADDING-LEFT: 0.125in">Deferred tax assets</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">4,008</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">3,335</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> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="TEXT-ALIGN: left">Deferred Tax Liabilities:</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 style="TEXT-ALIGN: left; PADDING-LEFT: 0.125in">Net derivative instruments</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">(799</td> <td style="TEXT-ALIGN: left">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="TEXT-ALIGN: left; PADDING-LEFT: 0.125in">Property and equipment and capitalized software development costs</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">(1,814</td> <td style="TEXT-ALIGN: left">)</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">(1,932</td> <td style="TEXT-ALIGN: left">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left; PADDING-LEFT: 0.125in">Unrealized exchange gain/loss</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">(359</td> <td style="TEXT-ALIGN: left">)</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">(106</td> <td style="TEXT-ALIGN: left">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="PADDING-BOTTOM: 1pt; PADDING-LEFT: 0.125in">Other</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> (498</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">)</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> (219</td> <td style="PADDING-BOTTOM: 1pt; 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> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left">Net deferred tax assets</td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 1,337</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 279</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="BACKGROUND-COLOR: transparent; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> <u>Effect of Derivative Instruments on the Consolidated Balance Sheets, Statements of Changes in Shareholders' Equity and Statements of Operations</u></p> <p style="BACKGROUND-COLOR: transparent; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="BACKGROUND-COLOR: transparent; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> Derivative instruments had the following effects on our Consolidated Balance Sheets, Statements of Changes in Shareholders' Equity and Statements of Income, net of tax during the year ended October 31, 2013 and 2012 (in thousands):</p> <p style="BACKGROUND-COLOR: transparent; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <table style="WIDTH: 100%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black" nowrap="nowrap">Derivatives</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="6" nowrap="nowrap">Amount of Gain (Loss)<br /> Recognized in Other<br /> Comprehensive Income</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" nowrap="nowrap">Location of Gain (Loss)<br /> Reclassified from Other<br /> Comprehensive Income</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="6" nowrap="nowrap">Amount of Gain (Loss)<br /> Reclassified from Other<br /> Comprehensive Income</td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="2">2013</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black" colspan="2">2012</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; PADDING-BOTTOM: 1pt"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: center"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="2">2013</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="2">2012</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; FONT-WEIGHT: bold">Designated as Hedging Instruments:<br /> (Effective Portion)</td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: center" colspan="2"><font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" colspan="2"><font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: center"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: center" colspan="2"><font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: center" colspan="2"><font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black"> <font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 40%">Foreign exchange forward contracts<br /> - Intercompany sales/purchases</td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 8%">(1,445</td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">)</td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 8%">2,946</td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: center; WIDTH: 15%">Cost of sales and service</td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 8%">1,690</td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 8%">(172</td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; TEXT-ALIGN: left">Foreign exchange forward contract<br /> - Net Investment</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left">$</td> <td style="COLOR: black; TEXT-ALIGN: right">(173</td> <td style="COLOR: black; TEXT-ALIGN: left">)</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left">$</td> <td style="COLOR: black; TEXT-ALIGN: right">292</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: center"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: right"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: right"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> </tr> </table> <p style="BACKGROUND-COLOR: transparent; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="BACKGROUND-COLOR: transparent; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> We recognized a loss of $37,000 during the year ended October 31, 2013 and a gain of $482,000 during the year ended October 31, 2012 as a result of contracts closed early that were deemed ineffective for financial reporting purposes and did not qualify as cash flow hedges.</p> <p style="BACKGROUND-COLOR: transparent; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <table style="WIDTH: 85%; BORDER-COLLAPSE: collapse; FONT: 10pt Courier New, Courier, Monospace" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif" nowrap="nowrap">Derivatives</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: center" nowrap="nowrap">Location of Gain (Loss)<br /> Recognized in Operations</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: center" colspan="6" nowrap="nowrap">Amount of Gain (Loss)<br /> Recognized in Operations<br /> (in thousands)</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: center"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: center"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: center"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: center"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: center" colspan="2">2013</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: center"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: center"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: center" colspan="2">2012</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: center"> <font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; FONT-WEIGHT: bold; TEXT-ALIGN: left; WIDTH: 55%"> Not Designated as Hedging Instruments:</td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="WIDTH: 14%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="WIDTH: 12%; COLOR: black; TEXT-ALIGN: right"><font style="COLOR: black"> </font> </td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="WIDTH: 12%; COLOR: black; TEXT-ALIGN: right"><font style="COLOR: black"> </font> </td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> Foreign exchange forward contracts</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> Other income (expense)</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> $</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> (1,786</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> )</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> $</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 1,013</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> </p> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <table style="WIDTH: 100%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="4" nowrap="nowrap">2013</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="4" nowrap="nowrap">2012</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: center" nowrap="nowrap"> Balance Sheet</td> <td nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Fair</td> <td nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: center" nowrap="nowrap"> Balance Sheet</td> <td nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Fair</td> <td nowrap="nowrap"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black" nowrap="nowrap">Derivatives</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" nowrap="nowrap">Location</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Value</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" nowrap="nowrap">Location</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Value</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; FONT-WEIGHT: bold; TEXT-ALIGN: left"> Designated as Hedging Instruments:</td> <td><font style="COLOR: black"> </font> </td> <td><font style="COLOR: black"> </font> </td> <td><font style="COLOR: black"> </font> </td> <td style="TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="TEXT-ALIGN: right"><font style="COLOR: black"> </font> </td> <td style="TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td><font style="COLOR: black"> </font> </td> <td><font style="COLOR: black"> </font> </td> <td><font style="COLOR: black"> </font> </td> <td style="TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="TEXT-ALIGN: right"><font style="COLOR: black"> </font> </td> <td style="TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 38%">Foreign exchange forward contracts</td> <td style="WIDTH: 1%"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 19%">Derivative assets</td> <td style="WIDTH: 1%"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 8%">244</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="WIDTH: 1%"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 19%">Derivative assets</td> <td style="WIDTH: 1%"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 8%">705</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; TEXT-ALIGN: left">Foreign exchange forward contracts</td> <td><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left">Derivative liabilities</td> <td><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left">$</td> <td style="COLOR: black; TEXT-ALIGN: right">1,158</td> <td style="TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left">Derivative liabilities</td> <td><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left">$</td> <td style="COLOR: black; TEXT-ALIGN: right">492</td> <td style="TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; FONT-WEIGHT: bold; TEXT-ALIGN: left">Not Designated as Hedging Instruments:</td> <td><font style="COLOR: black"> </font> </td> <td><font style="COLOR: black"> </font> </td> <td><font style="COLOR: black"> </font> </td> <td style="TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="TEXT-ALIGN: right"><font style="COLOR: black"> </font> </td> <td style="TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td><font style="COLOR: black"> </font> </td> <td><font style="COLOR: black"> </font> </td> <td><font style="COLOR: black"> </font> </td> <td style="TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="TEXT-ALIGN: right"><font style="COLOR: black"> </font> </td> <td style="TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; TEXT-ALIGN: left">Foreign exchange forward contracts</td> <td><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left">Derivative assets</td> <td><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left">$</td> <td style="COLOR: black; TEXT-ALIGN: right">455</td> <td style="TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left">Derivative assets</td> <td><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left">$</td> <td style="COLOR: black; TEXT-ALIGN: right">3</td> <td style="TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; TEXT-ALIGN: left">Foreign exchange forward contracts</td> <td><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left">Derivative liabilities</td> <td><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left">$</td> <td style="COLOR: black; TEXT-ALIGN: right">54</td> <td style="TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left">Derivative liabilities</td> <td><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left">$</td> <td style="COLOR: black; TEXT-ALIGN: right">77</td> <td style="TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <table style="WIDTH: 85%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: center" colspan="22" nowrap="nowrap">Fiscal Year Ended</td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: center" colspan="22" nowrap="nowrap">October 31,</td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black">(in thousands, except per share</font><font style="FONT-FAMILY: Times New Roman, Times, Serif"><br /> <font style="COLOR: black">amount)</font></font></td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: center" colspan="6" nowrap="nowrap">2013</td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: center" colspan="6" nowrap="nowrap">2012</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="6" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black">2011 </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Basic</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Diluted</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Basic</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Diluted</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Basic</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Diluted</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left; WIDTH: 22%"> Net income</td> <td style="WIDTH: 1%; COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left; WIDTH: 1%"> $</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right; WIDTH: 10%"> 8,190</td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="WIDTH: 1%; COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left; WIDTH: 1%"> $</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right; WIDTH: 10%"> 8,190</td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="WIDTH: 1%; COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left; WIDTH: 1%"> $</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right; WIDTH: 10%"> 15,638</td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="WIDTH: 1%; COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left; WIDTH: 1%"> $</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right; WIDTH: 10%"> 15,638</td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="WIDTH: 1%; COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left; WIDTH: 1%"> $</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right; WIDTH: 10%"> 11,124</td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="WIDTH: 1%; COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left; WIDTH: 1%"> $</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right; WIDTH: 10%"> 11,124</td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left; PADDING-LEFT: 0.125in; TEXT-INDENT: -0.125in"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black">Undistributed earnings</font> <font style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif">allocated to participating shares</font></td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> (86</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> )</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> (86</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> )</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> (134</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> )</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> (134</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> )</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> (53</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> )</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> (53</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> )</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-LEFT: 0.125in; TEXT-ALIGN: left; TEXT-INDENT: -0.125in"> Net income applicable to common shareholders</td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> $</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 8,104</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> $</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 8,104</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> $</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 15,504</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> $</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 15,504</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> $</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 11,071</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> $</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 11,071</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; PADDING-LEFT: 0.125in; TEXT-INDENT: -0.125in"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black">Weighted average shares</font> <font style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif">outstanding</font></td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 6,455</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 6,455</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 6,445</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 6,445</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 6,441</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Courier New, Courier, Monospace; TEXT-ALIGN: right"> 6,441</td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> Stock options</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> -</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 42</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> -</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 25</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> -</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 31</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 6,455</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 6,497</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 6,445</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 6,470</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 6,441</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 6,472</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 2.5pt"> Income per share</td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 1.26</td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 1.25</td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 2.41</td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 2.40</td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 1.72</td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 1.71</td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> <em> </em></p> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <table style="WIDTH: 100%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="10">Year Ended October 31,</td> <td style="PADDING-BOTTOM: 1pt"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2">2013</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2">2012</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2">2011</td> <td style="PADDING-BOTTOM: 1pt"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="WIDTH: 55%; PADDING-LEFT: 0.25in">Domestic</td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">4,524</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">12,432</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">6,098</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="PADDING-BOTTOM: 1pt; PADDING-LEFT: 0.25in">Foreign</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 7,918</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 9,432</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 9,521</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left">Earnings (Loss) before taxes on income</td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 12,442</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 21,864</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 15,619</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left">Tax rates:</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 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: rgb(204,255,204)"> <td style="TEXT-ALIGN: left">U.S. statutory rate</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">35</td> <td style="TEXT-ALIGN: left">%</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">35</td> <td style="TEXT-ALIGN: left">%</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">35</td> <td style="TEXT-ALIGN: left">%</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left; PADDING-LEFT: 9pt; TEXT-INDENT: -9pt"> Effect of tax rate of international jurisdictions different than U.S. statutory rates</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">(6</td> <td style="TEXT-ALIGN: left">)%</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">(6</td> <td style="TEXT-ALIGN: left">)%</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">(5</td> <td style="TEXT-ALIGN: left">)%</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="TEXT-ALIGN: left">Valuation allowance</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">5</td> <td style="TEXT-ALIGN: left">%</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1</td> <td style="TEXT-ALIGN: left">%</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">(1</td> <td style="TEXT-ALIGN: left">)%</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left">State taxes</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1</td> <td style="TEXT-ALIGN: left">%</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1</td> <td style="TEXT-ALIGN: left">%</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1</td> <td style="TEXT-ALIGN: left">%</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="TEXT-ALIGN: left">Tax Credits</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">(3</td> <td style="TEXT-ALIGN: left">)%</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">(2</td> <td style="TEXT-ALIGN: left">)%</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">(2</td> <td style="TEXT-ALIGN: left">)%</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="PADDING-BOTTOM: 1pt">Other</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 2</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">%</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> (1</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">)%</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 1</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">%</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left">Effective tax rate</td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 34</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left">%</td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 28</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left">%</td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 29</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left">%</td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="COLOR: #000000; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> Long-lived tangible assets, net by geographic area were (in thousands):</p> <p style="COLOR: #000000; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> </p> <table style="WIDTH: 85%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left" nowrap="nowrap"> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: center" colspan="6" nowrap="nowrap">As of October 31,</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: #000000; TEXT-ALIGN: left" nowrap="nowrap"> </td> <td style="COLOR: #000000" nowrap="nowrap"> </td> <td style="COLOR: #000000; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2013</td> <td style="COLOR: #000000" nowrap="nowrap"> </td> <td style="COLOR: #000000" nowrap="nowrap"> </td> <td style="COLOR: #000000; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2012</td> <td style="COLOR: #000000" nowrap="nowrap"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="WIDTH: 74%; COLOR: #000000; TEXT-ALIGN: left; TEXT-INDENT: 0in"> United States</td> <td style="WIDTH: 1%; COLOR: #000000"> </td> <td style="WIDTH: 1%; COLOR: #000000; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; COLOR: #000000; TEXT-ALIGN: right"> 6,523</td> <td style="WIDTH: 1%; COLOR: #000000; TEXT-ALIGN: left"> </td> <td style="WIDTH: 1%; COLOR: #000000"> </td> <td style="WIDTH: 1%; COLOR: #000000; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; COLOR: #000000; TEXT-ALIGN: right"> 6,633</td> <td style="WIDTH: 1%; COLOR: #000000; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left; TEXT-INDENT: 0in"> Foreign countries</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: right"> 7,063</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: right"> 6,677</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: #000000; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left; TEXT-INDENT: 0in"> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: #000000; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: #000000; TEXT-ALIGN: right"> 13,586</td> <td style="COLOR: #000000; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: #000000; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: #000000; TEXT-ALIGN: right"> 13,310</td> <td style="COLOR: #000000; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> </tr> </table> <p style="COLOR: #000000; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> <strong> </strong></p> <p style="COLOR: #000000; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> Net assets by geographic area were (in thousands):</p> <p style="COLOR: #000000; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> </p> <table style="WIDTH: 85%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: #000000; TEXT-ALIGN: left" nowrap="nowrap"> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: center" colspan="6" nowrap="nowrap">As of October 31,</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: #000000; TEXT-ALIGN: left" nowrap="nowrap"> </td> <td style="COLOR: #000000" nowrap="nowrap"> </td> <td style="COLOR: #000000; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2013</td> <td style="COLOR: #000000" nowrap="nowrap"> </td> <td style="COLOR: #000000" nowrap="nowrap"> </td> <td style="COLOR: #000000; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2012</td> <td style="COLOR: #000000" nowrap="nowrap"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="WIDTH: 74%; COLOR: #000000; TEXT-ALIGN: left; TEXT-INDENT: 0in"> North America</td> <td style="WIDTH: 1%; COLOR: #000000"> </td> <td style="WIDTH: 1%; COLOR: #000000; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; COLOR: #000000; TEXT-ALIGN: right"> 69,450</td> <td style="WIDTH: 1%; COLOR: #000000; TEXT-ALIGN: left"> </td> <td style="WIDTH: 1%; COLOR: #000000"> </td> <td style="WIDTH: 1%; COLOR: #000000; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; COLOR: #000000; TEXT-ALIGN: right"> 73,449</td> <td style="WIDTH: 1%; COLOR: #000000; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: #000000; TEXT-ALIGN: left; TEXT-INDENT: 0in"> Europe</td> <td style="COLOR: #000000"> </td> <td style="COLOR: #000000; TEXT-ALIGN: left"> </td> <td style="COLOR: #000000; TEXT-ALIGN: right">59,498</td> <td style="COLOR: #000000; TEXT-ALIGN: left"> </td> <td style="COLOR: #000000"> </td> <td style="COLOR: #000000; TEXT-ALIGN: left"> </td> <td style="COLOR: #000000; TEXT-ALIGN: right">48,571</td> <td style="COLOR: #000000; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left; TEXT-INDENT: 0in"> Asia</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: right"> 22,543</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: right"> 21,773</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: #000000; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left; TEXT-INDENT: 0in"> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: #000000; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: #000000; TEXT-ALIGN: right"> 151,491</td> <td style="COLOR: #000000; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: #000000; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: #000000; TEXT-ALIGN: right"> 143,793</td> <td style="COLOR: #000000; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> </tr> </table> <p style="COLOR: #000000; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> <strong> </strong></p> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="COLOR: red; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> </p> <table style="WIDTH: 95%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0" align="center"> <tr style="VERTICAL-ALIGN: bottom"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000" nowrap="nowrap"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt" nowrap="nowrap"> <font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: center" colspan="10" nowrap="nowrap">Year ended October 31,</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt" nowrap="nowrap"> <font style="COLOR: #000000"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000" nowrap="nowrap"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt" nowrap="nowrap"> <font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2013</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt" nowrap="nowrap"> <font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt" nowrap="nowrap"> <font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2012</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt" nowrap="nowrap"> <font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt" nowrap="nowrap"> <font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2011</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt" nowrap="nowrap"> <font style="COLOR: #000000"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000; TEXT-ALIGN: center" colspan="2"><font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000; TEXT-ALIGN: center" colspan="2"><font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000; TEXT-ALIGN: center" colspan="2"><font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000"> <font style="COLOR: #000000"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: #000000; TEXT-ALIGN: left; WIDTH: 61%"> Computerized Machine Tools</td> <td style="WIDTH: 1%; COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: #000000; TEXT-ALIGN: right; WIDTH: 10%"> 166,896</td> <td style="WIDTH: 1%; COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="WIDTH: 1%; COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: #000000; TEXT-ALIGN: right; WIDTH: 10%"> 179,337</td> <td style="WIDTH: 1%; COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="WIDTH: 1%; COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: #000000; TEXT-ALIGN: right; WIDTH: 10%"> 156,736</td> <td style="WIDTH: 1%; COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: #000000; TEXT-ALIGN: left">Computer Control Systems and Software *</td> <td style="COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: right">3,066</td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: right">2,947</td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: right">3,322</td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: #000000; TEXT-ALIGN: left">Service Parts</td> <td style="COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: right">16,474</td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: right">15,299</td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: right">14,836</td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> Service Fees</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt"><font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: right"> 6,368</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt"><font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: right"> 5,534</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt"><font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: right"> 5,506</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: #000000; PADDING-BOTTOM: 2.5pt; PADDING-LEFT: 9pt"> Total</td> <td style="COLOR: #000000; PADDING-BOTTOM: 2.5pt"><font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: #000000; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: #000000; TEXT-ALIGN: right"> 192,804</td> <td style="COLOR: #000000; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 2.5pt"><font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: #000000; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: #000000; TEXT-ALIGN: right"> 203,117</td> <td style="COLOR: #000000; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 2.5pt"><font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: #000000; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: #000000; TEXT-ALIGN: right"> 180,400</td> <td style="COLOR: #000000; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> </tr> </table> <p style="COLOR: #000000; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="COLOR: #000000; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> *Amounts shown do not include computer control systems and software sold as an integrated component of computerized machine systems.</p> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 0.25in; TEXT-INDENT: 0.5in"> </p> <table style="WIDTH: 95%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="6" nowrap="nowrap">Assets</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="6" nowrap="nowrap">Liabilities</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap"> </td> <td nowrap="nowrap"> </td> <td style="TEXT-ALIGN: center" colspan="2" nowrap="nowrap">October 31,</td> <td nowrap="nowrap"> </td> <td nowrap="nowrap"> </td> <td style="TEXT-ALIGN: center" colspan="2" nowrap="nowrap">October 31,</td> <td nowrap="nowrap"> </td> <td nowrap="nowrap"> </td> <td style="TEXT-ALIGN: center" colspan="2" nowrap="nowrap">October 31,</td> <td nowrap="nowrap"> </td> <td nowrap="nowrap"> </td> <td style="TEXT-ALIGN: center" colspan="2" nowrap="nowrap">October 31,</td> <td nowrap="nowrap"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2013</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2012</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2013</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2012</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="TEXT-DECORATION: underline">Level 1</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 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 style="WIDTH: 40%; TEXT-ALIGN: left">Deferred compensation</td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">1,073</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">861</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">-</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">-</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-DECORATION: underline">Level 2</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td>Derivatives</td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">699</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">708</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">1,212</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">569</td> <td style="TEXT-ALIGN: left"> </td> </tr> </table> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <table style="WIDTH: 65%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0" align="center"> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center"> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: center"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: center"> Fiscal Year</p> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="2"><font style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif">Amortization</font><font style="COLOR: black"><br /> <font style="FONT: 10pt Times New Roman, Times, Serif">Expense</font></font></td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; TEXT-ALIGN: center; WIDTH: 82%">2014</td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 15%">1,150</td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; TEXT-ALIGN: center">2015</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">1,025</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; TEXT-ALIGN: center">2016</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">700</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; TEXT-ALIGN: center">2017</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">335</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; TEXT-ALIGN: center">2018</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">220</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> As of October 31, 2013, the balances of intangible assets, other than goodwill, were as follows (in thousands):</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <table style="WIDTH: 100%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" nowrap="nowrap">Weighted<br /> Average<br /> Amortization<br /> Period</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Gross<br /> Intangible<br /> Assets</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Accumulated<br /> Amortization</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Net Intangible<br /> Assets</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"> </td> <td style="COLOR: black" nowrap="nowrap"> </td> <td style="COLOR: black; TEXT-ALIGN: center" nowrap="nowrap"> </td> <td style="COLOR: black" nowrap="nowrap"> </td> <td style="COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap"> </td> <td style="COLOR: black" nowrap="nowrap"> </td> <td style="COLOR: black" nowrap="nowrap"> </td> <td style="COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap"> </td> <td style="COLOR: black" nowrap="nowrap"> </td> <td style="COLOR: black" nowrap="nowrap"> </td> <td style="COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap"> </td> <td style="COLOR: black" nowrap="nowrap"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 40%">Tradenames and trademarks</td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: center; WIDTH: 14%">13 years</td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 12%">285</td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 12%">(7</td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">)</td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 12%">278</td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; TEXT-ALIGN: left">Tradenames and trademarks</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: center">indefinite</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">60</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">60</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; TEXT-ALIGN: left">Customer relationships</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: center">15 years</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">264</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">(64</td> <td style="COLOR: black; TEXT-ALIGN: left">)</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">200</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black">Technology</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: center">13 years</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">831</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">(21</td> <td style="COLOR: black; TEXT-ALIGN: left">)</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">810</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black">Patents</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: center">6 years</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">2,973</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">(2,363</td> <td style="COLOR: black; TEXT-ALIGN: left">)</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">610</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; PADDING-BOTTOM: 1pt">Other</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: center">8 years</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> 399</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> (202</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> )</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> 197</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt; PADDING-LEFT: 0.125in"> Total</td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; PADDING-BOTTOM: 2.5pt"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; PADDING-BOTTOM: 2.5pt"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; TEXT-ALIGN: right"> 4,812</td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; TEXT-ALIGN: right"> (2,657</td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> )</td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; TEXT-ALIGN: right"> 2,155</td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> As of October 31, 2012, the balances of intangible assets, other than goodwill, were as follows (in thousands):</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <table style="WIDTH: 100%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" nowrap="nowrap">Weighted<br /> Average<br /> Amortization<br /> Period</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Gross<br /> Intangible<br /> Assets</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Accumulated<br /> Amortization</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Net Intangible<br /> Assets</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"> </td> <td style="COLOR: black" nowrap="nowrap"> </td> <td style="COLOR: black; TEXT-ALIGN: center" nowrap="nowrap"> </td> <td style="COLOR: black" nowrap="nowrap"> </td> <td style="COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap"> </td> <td style="COLOR: black" nowrap="nowrap"> </td> <td style="COLOR: black" nowrap="nowrap"> </td> <td style="COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap"> </td> <td style="COLOR: black" nowrap="nowrap"> </td> <td style="COLOR: black" nowrap="nowrap"> </td> <td style="COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap"> </td> <td style="COLOR: black" nowrap="nowrap"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 40%">Tradenames and trademarks</td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: center; WIDTH: 14%"> Indefinite</td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 12%">60</td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 12%">-</td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 12%">60</td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; TEXT-ALIGN: left">Customer relationships</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: center">15 years</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">210</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">(49</td> <td style="COLOR: black; TEXT-ALIGN: left">)</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">161</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black">Patents</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: center">5 years</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">2,662</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">(2,111</td> <td style="COLOR: black; TEXT-ALIGN: left">)</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">551</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; PADDING-BOTTOM: 1pt">Other</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: center">7 years</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> 320</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> (155</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> )</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> 165</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt; PADDING-LEFT: 0.125in"> Total</td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; PADDING-BOTTOM: 2.5pt"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; PADDING-BOTTOM: 2.5pt"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; TEXT-ALIGN: right"> 3,252</td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; TEXT-ALIGN: right"> (2,315</td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> )</td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; TEXT-ALIGN: right"> 937</td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <table style="WIDTH: 90%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0" align="center"> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="WIDTH: 79%; TEXT-ALIGN: left">2014</td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 18%; TEXT-ALIGN: right">3,013</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left">2015</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1,699</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="TEXT-ALIGN: left">2016</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1,127</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left">2017</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">601</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">2018 and thereafter</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 508</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left">Total</td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 6,948</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <table style="WIDTH: 75%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0" align="center"> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; TEXT-ALIGN: justify; TEXT-INDENT: 0in; WIDTH: 85%"> Balance as of October 31, 2012</td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 12%">233</td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; PADDING-BOTTOM: 1pt; PADDING-LEFT: 9pt; TEXT-ALIGN: left; TEXT-INDENT: 0in"> Goodwill acquired</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> 2,574</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> Balance as of October 31, 2013</td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; TEXT-ALIGN: right"> 2,807</td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <table style="WIDTH: 96%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif; MARGIN-LEFT: 0.25in" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2">2013</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2">2012</td> <td style="PADDING-BOTTOM: 1pt"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="WIDTH: 70%; TEXT-ALIGN: left">Purchased parts and sub-assemblies</td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">21,647</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: 12%; TEXT-ALIGN: right">18,780</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td>Work-in-process</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">15,996</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">14,256</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">Finished goods</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 57,617</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 58,284</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 95,260</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 91,320</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <table style="WIDTH: 95%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2">2013</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2">2012</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2">2011</td> <td style="PADDING-BOTTOM: 1pt"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="WIDTH: 55%; TEXT-ALIGN: left">Balance, beginning of year</td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">1,623</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">1,725</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">1,591</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left; PADDING-LEFT: 0.25in; TEXT-INDENT: -9pt"> Provision for warranties during the year</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">3,811</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">3,473</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">3,142</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="TEXT-ALIGN: left; PADDING-LEFT: 0.125in">Charges to the accrual</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">(3,670</td> <td style="TEXT-ALIGN: left">)</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">(3,567</td> <td style="TEXT-ALIGN: left">)</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">(2,993</td> <td style="TEXT-ALIGN: left">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left; PADDING-LEFT: 0.125in"> Impact of foreign currency translation</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 14</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> (8</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">)</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> (15</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left">Balance, end of year</td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 1,778</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 1,623</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 1,725</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> </tr> </table> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <table style="WIDTH: 100%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">First<br /> Quarter</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Second<br /> Quarter</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Third<br /> Quarter</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Fourth<br /> Quarter</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="TEXT-DECORATION: underline; FONT-WEIGHT: bold; TEXT-ALIGN: left"> 2013 (In thousands, except per share data)</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 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 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: rgb(204,255,204)"> <td style="WIDTH: 40%; TEXT-ALIGN: left">Sales and service fees</td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">44,085</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">49,619</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">45,158</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: 12%; TEXT-ALIGN: right">53,942</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 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: rgb(204,255,204)"> <td style="TEXT-ALIGN: left">Gross profit</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">12,916</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">15,283</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">11,715</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">15,142</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 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: rgb(204,255,204)"> <td style="TEXT-ALIGN: left">Gross profit margin</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">29</td> <td style="TEXT-ALIGN: left">%</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">31</td> <td style="TEXT-ALIGN: left">%</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">26</td> <td style="TEXT-ALIGN: left">%</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">28</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 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: rgb(204,255,204)"> <td style="TEXT-ALIGN: left">Selling, general and administrative expenses</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">8,920</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">10,679</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">10,012</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">11,802</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 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: rgb(204,255,204)"> <td style="TEXT-ALIGN: left">Operating income</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">3,996</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">4,604</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1,703</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">3,340</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 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: rgb(204,255,204)"> <td style="TEXT-ALIGN: left">Provision for income taxes</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1,445</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1,329</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">263</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1,215</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 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: rgb(204,255,204)"> <td style="TEXT-ALIGN: left">Net income</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">2,254</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">3,183</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">854</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1,899</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 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: rgb(204,255,204)"> <td>Income per common share - basic</td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">0.35</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">0.49</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">0.13</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">0.29</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td>Income per common share - diluted</td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">0.34</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">0.48</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">0.13</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">0.29</td> <td style="TEXT-ALIGN: left"> </td> </tr> </table> <p style="FONT: 10pt Courier; MARGIN: 0pt 0px"> </p> <table style="WIDTH: 100%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">First<br /> Quarter</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Second<br /> Quarter</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Third<br /> Quarter</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Fourth<br /> Quarter</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="TEXT-DECORATION: underline; FONT-WEIGHT: bold; TEXT-ALIGN: left"> 2012 (In thousands, except per share data)</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 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 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: rgb(204,255,204)"> <td style="WIDTH: 40%; TEXT-ALIGN: left">Sales and service fees</td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">51,126</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">45,965</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">49,959</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: 12%; TEXT-ALIGN: right">56,067</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 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: rgb(204,255,204)"> <td style="TEXT-ALIGN: left">Gross profit</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">16,484</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">13,393</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">16,084</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">17,220</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 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: rgb(204,255,204)"> <td style="TEXT-ALIGN: left">Gross profit margin</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">32</td> <td style="TEXT-ALIGN: left">%</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">29</td> <td style="TEXT-ALIGN: left">%</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">32</td> <td style="TEXT-ALIGN: left">%</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">31</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 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: rgb(204,255,204)"> <td style="TEXT-ALIGN: left">Selling, general and administrative expenses</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">9,730</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">9,288</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">10,272</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">11,870</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 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: rgb(204,255,204)"> <td style="TEXT-ALIGN: left">Operating income</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">6,754</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">4,105</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">5,812</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">5,350</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 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: rgb(204,255,204)"> <td style="TEXT-ALIGN: left">Provision for income taxes</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">2,263</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1,103</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1,641</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1,219</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 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: rgb(204,255,204)"> <td style="TEXT-ALIGN: left">Net income</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">4,633</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">2,962</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">3,957</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">4,086</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 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: rgb(204,255,204)"> <td>Income per common share - basic</td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">0.71</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">0.46</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">0.61</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">0.63</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td>Income per common share - diluted</td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">0.71</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">0.45</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">0.61</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">0.63</td> <td style="TEXT-ALIGN: left"> </td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <table style="WIDTH: 60%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0" align="center"> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="WIDTH: 80%; TEXT-ALIGN: left">Current Assets</td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 17%; TEXT-ALIGN: right">6,723</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left">Property plant and equipment</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">933</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td>Intangibles</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1,437</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="PADDING-BOTTOM: 1pt">Goodwill</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 2,477</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="TEXT-ALIGN: left; PADDING-LEFT: 0.125in">Total assets</td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">11,570</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="TEXT-ALIGN: left">Current Liabilites</td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">4,821</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left">Short term debt</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">4,643</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="PADDING-BOTTOM: 1pt">Non-current liabilities</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 1,726</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left; PADDING-LEFT: 0.125in"> Total liabilities</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left">$</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 11,190</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left">Cash expended, net of cash acquired</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">380</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">Indebtedness assumed</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 4,643</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="PADDING-BOTTOM: 1pt; PADDING-LEFT: 0.125in">Total purchase price</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left">$</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 5,023</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="COLOR: #000000; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <table style="WIDTH: 100%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000" nowrap="nowrap"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt" nowrap="nowrap"> <font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: center" colspan="10" nowrap="nowrap">Year Ended October 31,</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt" nowrap="nowrap"> <font style="COLOR: #000000"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000" nowrap="nowrap"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt" nowrap="nowrap"> <font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2013</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt" nowrap="nowrap"> <font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt" nowrap="nowrap"> <font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2012</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt" nowrap="nowrap"> <font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt" nowrap="nowrap"> <font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2011</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt" nowrap="nowrap"> <font style="COLOR: #000000"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000; TEXT-ALIGN: center" colspan="2"><font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000; TEXT-ALIGN: center" colspan="2"><font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000; TEXT-ALIGN: center" colspan="2"><font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000"> <font style="COLOR: #000000"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left; WIDTH: 61%"> North America</td> <td style="WIDTH: 1%; COLOR: #000000; PADDING-BOTTOM: 1pt"><font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: left; WIDTH: 1%"> $</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: right; WIDTH: 10%"> 60,660</td> <td style="WIDTH: 1%; COLOR: #000000; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="WIDTH: 1%; COLOR: #000000; PADDING-BOTTOM: 1pt"><font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: left; WIDTH: 1%"> $</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: right; WIDTH: 10%"> 60,500</td> <td style="WIDTH: 1%; COLOR: #000000; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="WIDTH: 1%; COLOR: #000000; PADDING-BOTTOM: 1pt"><font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: left; WIDTH: 1%"> $</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: right; WIDTH: 10%"> 47,599</td> <td style="WIDTH: 1%; COLOR: #000000; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000; TEXT-ALIGN: right"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000; TEXT-ALIGN: right"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000; TEXT-ALIGN: right"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: #000000">Germany</td> <td style="COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: right">43,597</td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: right">49,979</td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: right">47,162</td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: #000000; TEXT-ALIGN: left">United Kingdom</td> <td style="COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: right">27,343</td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: right">28,914</td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: right">22,463</td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: #000000">Italy</td> <td style="COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: right">8,738</td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: right">6,038</td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: right">5,192</td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: #000000">France</td> <td style="COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: right">10,918</td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: right">9,970</td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: right">10,227</td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> Other Europe</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt"><font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: right"> 22,738</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt"><font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: right"> 23,145</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt"><font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: right"> 23,205</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: #000000; PADDING-LEFT: 9pt; TEXT-ALIGN: left"> Total Europe</td> <td style="COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: right">113,334</td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: right">118,046</td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: right">108,249</td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000; TEXT-ALIGN: right"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000; TEXT-ALIGN: right"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000; TEXT-ALIGN: right"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: #000000">Asia</td> <td style="COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: right">17,401</td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: right">23,216</td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: right">21,552</td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> Other Foreign</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt"><font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: right"> 1,409</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt"><font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: right"> 1,355</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt"><font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: right"> 3,000</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt; PADDING-LEFT: 9pt; TEXT-ALIGN: left"> Total Foreign</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt"><font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: right"> 132,144</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt"><font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: right"> 142,617</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt"><font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: right"> 132,801</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000; PADDING-BOTTOM: 2.5pt"> <font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 2.5pt"><font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: #000000; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: #000000; TEXT-ALIGN: right"> 192,804</td> <td style="COLOR: #000000; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 2.5pt"><font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: #000000; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: #000000; TEXT-ALIGN: right"> 203,117</td> <td style="COLOR: #000000; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 2.5pt"><font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: #000000; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: #000000; TEXT-ALIGN: right"> 180,400</td> <td style="COLOR: #000000; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> </tr> </table> <p style="COLOR: #000000; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <table style="WIDTH: 88%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0" align="center"> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Number of<br /> Shares</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Weighted Average<br /> Grant Date<br /> Fair Value</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="WIDTH: 64%">Unvested at October 31, 2012</td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> <td style="WIDTH: 15%; TEXT-ALIGN: right">55,718</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 15%; TEXT-ALIGN: right">22.84</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td>Shares granted</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">19,213</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">24.85</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td>Shares vested</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">(6,475</td> <td style="TEXT-ALIGN: left">)</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">27.00</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td>Shares cancelled</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: rgb(204,255,204)"> <td>Unvested at October 31, 2013</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">68,456</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">23.01</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> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <table style="WIDTH: 95%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0" align="center"> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Range of Exercise<br /> Prices Per Share</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Shares Under<br /> Option</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Weighted Average<br /> Exercise Price Per<br /> Share</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Weighted Average<br /> Remaining Contractual<br /> Life in Years</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: left" colspan="2"> Outstanding</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 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 style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 23%; TEXT-ALIGN: right">14.82</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: 22%; TEXT-ALIGN: right">30,000</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: 22%; TEXT-ALIGN: right">14.82</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: 22%; TEXT-ALIGN: right">6.1</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">14.88</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">21,000</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">14.88</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">5.5</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">18.13</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">20,000</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">18.13</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">6.5</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">21.45</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">45,236</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">21.45</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">8.1</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">23.30</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">24,976</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">23.30</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">9.1</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">26.69</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">17,500</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">26.69</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">3.0</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 35.83</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 10,000</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 35.83</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 4.6</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 14.82 - 35.83</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 168,712</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 20.73</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 6.7</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: left" colspan="2"> Exercisable</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">14.82</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">30,000</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">14.82</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">6.1</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">14.88</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">14,000</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">14.88</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">3.6</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">18.13</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">20,000</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">18.13</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">6.5</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">21.45</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">15,079</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">21.45</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">2.7</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">26.69</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">17,500</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">26.69</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">3.0</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 35.83</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 10,000</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 35.83</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 4.6</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; FONT-SIZE: 10pt; TEXT-ALIGN: right"> 14.82 - 35.83</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 106,579</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 20.31</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 4.7</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> <strong> </strong></p> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <table style="WIDTH: 92%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0" align="center"> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Shares Under<br /> Option</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Weighted Average<br /> Exercise Price Per Share</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="WIDTH: 58%">Balance October 31, 2010</td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> <td style="WIDTH: 18%; TEXT-ALIGN: right">115,369</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 18%; TEXT-ALIGN: right">20.66</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="PADDING-LEFT: 0.125in">Granted</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: rgb(204,255,204)"> <td style="PADDING-LEFT: 0.125in">Cancelled</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 style="PADDING-LEFT: 0.125in">Expired</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: rgb(204,255,204)"> <td style="PADDING-BOTTOM: 1pt; PADDING-LEFT: 0.125in"> Exercised</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> -</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> -</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td>Balance October 31, 2011</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">115,369</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">20.66</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="PADDING-LEFT: 0.125in">Granted</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">45,236</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">21.45</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="PADDING-LEFT: 0.125in">Cancelled</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">(5,000</td> <td style="TEXT-ALIGN: left">)</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">26.69</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="PADDING-LEFT: 0.125in">Expired</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 style="PADDING-BOTTOM: 1pt; PADDING-LEFT: 0.125in"> Exercised</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> (500</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">)</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 2.15</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td>Balance October 31, 2012</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">155,105</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">20.75</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="PADDING-LEFT: 0.125in">Granted</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">24,976</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">23.30</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="PADDING-LEFT: 0.125in">Cancelled</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 style="PADDING-LEFT: 0.125in">Expired</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: rgb(204,255,204)"> <td style="PADDING-BOTTOM: 1pt; PADDING-LEFT: 0.125in"> Exercised</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> (11,369</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">)</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 26.69</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="PADDING-BOTTOM: 2.5pt">Balance October 31, 2013</td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 168,712</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 20.73</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> </tr> </table> <p style="TEXT-ALIGN: center; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> <strong> </strong></p> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; BACKGROUND-COLOR: white"> </p> <table style="WIDTH: 100%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right" colspan="2">2013</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right" colspan="2">2012</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right" colspan="2">2011</td> <td style="PADDING-BOTTOM: 1pt"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="WIDTH: 55%; TEXT-ALIGN: left">Balance, beginning of year</td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">118</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">244</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> <td style="WIDTH: 1%"> </td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 12%; TEXT-ALIGN: right">178</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left; PADDING-LEFT: 0.125in">Additions based on tax positions related to the current year</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1,217</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">5</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">66</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="TEXT-ALIGN: left; PADDING-LEFT: 0.125in">Additions (reductions) related to prior years tax positions</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">23</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">(131</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 style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left; PADDING-LEFT: 0.125in"> Reductions due to statute expiration</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> (74</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">)</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> -</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> -</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <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 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="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left">Balance, end of year</td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 1,284</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 118</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> <td style="PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 244</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <table style="MARGIN-BOTTOM: 0px; FONT: 10pt Times New Roman, Times, Serif; MARGIN-TOP: 0px" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top; TEXT-ALIGN: justify"> <td style="WIDTH: 0.5in; TEXT-ALIGN: left"> <strong>15.</strong></td> <td style="TEXT-ALIGN: justify"><strong>SEGMENT INFORMATION</strong></td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> We operate in a single segment: industrial automation equipment. We design and produce interactive computer control systems and software, computerized machine tools, and machine tool components and accessories 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. The results related to the business being operated by LCM from the date we acquired the business, July 1, 2013, are included within the industrial automation systems segment.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="COLOR: #000000; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> We sell our products through more than 100 independent agents and distributors throughout North America, Europe and Asia. Our line is the primary line for the majority of our distributors globally even though some may carry competitive products. We also have our own direct sales and service organizations in China, France, Germany, India, Italy, Poland, Singapore, South Africa, the United Kingdom, and certain areas of the United States, which are among the world's principal machine tool consuming countries. During fiscal 2013, no distributor accounted for more than 5% of our sales and service fees. In fiscal 2013, approximately 68% of our revenues were from overseas customers and no single end-user of our products accounted for more than 5% of our total sales and service fees.</p> <p style="COLOR: #000000; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> </p> <p style="COLOR: #000000; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> The following table sets forth the contribution of each of our product groups to our total sales and service fees during each of the past three fiscal years (in thousands):</p> <p style="COLOR: #000000; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> </p> <p style="COLOR: #000000; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> <strong>Net Sales and Service Fees by Product Category</strong></p> <p style="COLOR: #000000; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> </p> <table style="WIDTH: 95%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0" align="center"> <tr style="VERTICAL-ALIGN: bottom"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000" nowrap="nowrap"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt" nowrap="nowrap"> <font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: center" colspan="10" nowrap="nowrap">Year ended October 31,</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt" nowrap="nowrap"> <font style="COLOR: #000000"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000" nowrap="nowrap"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt" nowrap="nowrap"> <font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2013</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt" nowrap="nowrap"> <font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt" nowrap="nowrap"> <font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2012</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt" nowrap="nowrap"> <font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt" nowrap="nowrap"> <font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2011</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt" nowrap="nowrap"> <font style="COLOR: #000000"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000; TEXT-ALIGN: center" colspan="2"><font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000; TEXT-ALIGN: center" colspan="2"><font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000; TEXT-ALIGN: center" colspan="2"><font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000"> <font style="COLOR: #000000"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: #000000; TEXT-ALIGN: left; WIDTH: 61%"> Computerized Machine Tools</td> <td style="WIDTH: 1%; COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: #000000; TEXT-ALIGN: right; WIDTH: 10%"> 166,896</td> <td style="WIDTH: 1%; COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="WIDTH: 1%; COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: #000000; TEXT-ALIGN: right; WIDTH: 10%"> 179,337</td> <td style="WIDTH: 1%; COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="WIDTH: 1%; COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: #000000; TEXT-ALIGN: right; WIDTH: 10%"> 156,736</td> <td style="WIDTH: 1%; COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: #000000; TEXT-ALIGN: left">Computer Control Systems and Software *</td> <td style="COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: right">3,066</td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: right">2,947</td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: right">3,322</td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: #000000; TEXT-ALIGN: left">Service Parts</td> <td style="COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: right">16,474</td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: right">15,299</td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: right">14,836</td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> Service Fees</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt"><font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: right"> 6,368</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt"><font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: right"> 5,534</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt"><font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: right"> 5,506</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: #000000; PADDING-BOTTOM: 2.5pt; PADDING-LEFT: 9pt"> Total</td> <td style="COLOR: #000000; PADDING-BOTTOM: 2.5pt"><font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: #000000; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: #000000; TEXT-ALIGN: right"> 192,804</td> <td style="COLOR: #000000; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 2.5pt"><font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: #000000; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: #000000; TEXT-ALIGN: right"> 203,117</td> <td style="COLOR: #000000; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 2.5pt"><font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: #000000; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: #000000; TEXT-ALIGN: right"> 180,400</td> <td style="COLOR: #000000; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> </tr> </table> <p style="COLOR: #000000; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="COLOR: #000000; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> *Amounts shown do not include computer control systems and software sold as an integrated component of computerized machine systems.</p> <p style="COLOR: #000000; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> <strong> </strong></p> <p style="COLOR: #000000; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> The following table sets forth revenues by geographic area, based on customer location, for each of the past three fiscal years (in thousands):</p> <p style="COLOR: #000000; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: #000000; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> <strong>Revenues by Geographic Area</strong></p> <p style="COLOR: #000000; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <table style="WIDTH: 100%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000" nowrap="nowrap"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt" nowrap="nowrap"> <font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: center" colspan="10" nowrap="nowrap">Year Ended October 31,</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt" nowrap="nowrap"> <font style="COLOR: #000000"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000" nowrap="nowrap"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt" nowrap="nowrap"> <font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2013</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt" nowrap="nowrap"> <font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt" nowrap="nowrap"> <font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2012</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt" nowrap="nowrap"> <font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt" nowrap="nowrap"> <font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2011</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt" nowrap="nowrap"> <font style="COLOR: #000000"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000; TEXT-ALIGN: center" colspan="2"><font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000; TEXT-ALIGN: center" colspan="2"><font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000; TEXT-ALIGN: center" colspan="2"><font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000"> <font style="COLOR: #000000"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left; WIDTH: 61%"> North America</td> <td style="WIDTH: 1%; COLOR: #000000; PADDING-BOTTOM: 1pt"><font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: left; WIDTH: 1%"> $</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: right; WIDTH: 10%"> 60,660</td> <td style="WIDTH: 1%; COLOR: #000000; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="WIDTH: 1%; COLOR: #000000; PADDING-BOTTOM: 1pt"><font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: left; WIDTH: 1%"> $</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: right; WIDTH: 10%"> 60,500</td> <td style="WIDTH: 1%; COLOR: #000000; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="WIDTH: 1%; COLOR: #000000; PADDING-BOTTOM: 1pt"><font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: left; WIDTH: 1%"> $</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: right; WIDTH: 10%"> 47,599</td> <td style="WIDTH: 1%; COLOR: #000000; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000; TEXT-ALIGN: right"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000; TEXT-ALIGN: right"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000; TEXT-ALIGN: right"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: #000000">Germany</td> <td style="COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: right">43,597</td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: right">49,979</td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: right">47,162</td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: #000000; TEXT-ALIGN: left">United Kingdom</td> <td style="COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: right">27,343</td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: right">28,914</td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: right">22,463</td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: #000000">Italy</td> <td style="COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: right">8,738</td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: right">6,038</td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: right">5,192</td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: #000000">France</td> <td style="COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: right">10,918</td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: right">9,970</td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: right">10,227</td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> Other Europe</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt"><font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: right"> 22,738</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt"><font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: right"> 23,145</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt"><font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: right"> 23,205</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: #000000; PADDING-LEFT: 9pt; TEXT-ALIGN: left"> Total Europe</td> <td style="COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: right">113,334</td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: right">118,046</td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: right">108,249</td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000; TEXT-ALIGN: right"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000; TEXT-ALIGN: right"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000; TEXT-ALIGN: right"> <font style="COLOR: #000000"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: #000000">Asia</td> <td style="COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: right">17,401</td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: right">23,216</td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; TEXT-ALIGN: right">21,552</td> <td style="COLOR: #000000; TEXT-ALIGN: left"><font style="COLOR: #000000"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> Other Foreign</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt"><font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: right"> 1,409</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt"><font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: right"> 1,355</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt"><font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: right"> 3,000</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt; PADDING-LEFT: 9pt; TEXT-ALIGN: left"> Total Foreign</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt"><font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: right"> 132,144</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt"><font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: right"> 142,617</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt"><font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: right"> 132,801</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: #000000; PADDING-BOTTOM: 2.5pt"> <font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 2.5pt"><font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: #000000; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: #000000; TEXT-ALIGN: right"> 192,804</td> <td style="COLOR: #000000; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 2.5pt"><font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: #000000; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: #000000; TEXT-ALIGN: right"> 203,117</td> <td style="COLOR: #000000; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 2.5pt"><font style="COLOR: #000000"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: #000000; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: #000000; TEXT-ALIGN: right"> 180,400</td> <td style="COLOR: #000000; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> <font style="COLOR: #000000"> </font> </td> </tr> </table> <p style="COLOR: #000000; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: #000000; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> Long-lived tangible assets, net by geographic area were (in thousands):</p> <p style="COLOR: #000000; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> </p> <table style="WIDTH: 85%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left" nowrap="nowrap"> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: center" colspan="6" nowrap="nowrap">As of October 31,</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: #000000; TEXT-ALIGN: left" nowrap="nowrap"> </td> <td style="COLOR: #000000" nowrap="nowrap"> </td> <td style="COLOR: #000000; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2013</td> <td style="COLOR: #000000" nowrap="nowrap"> </td> <td style="COLOR: #000000" nowrap="nowrap"> </td> <td style="COLOR: #000000; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2012</td> <td style="COLOR: #000000" nowrap="nowrap"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="WIDTH: 74%; COLOR: #000000; TEXT-ALIGN: left; TEXT-INDENT: 0in"> United States</td> <td style="WIDTH: 1%; COLOR: #000000"> </td> <td style="WIDTH: 1%; COLOR: #000000; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; COLOR: #000000; TEXT-ALIGN: right"> 6,523</td> <td style="WIDTH: 1%; COLOR: #000000; TEXT-ALIGN: left"> </td> <td style="WIDTH: 1%; COLOR: #000000"> </td> <td style="WIDTH: 1%; COLOR: #000000; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; COLOR: #000000; TEXT-ALIGN: right"> 6,633</td> <td style="WIDTH: 1%; COLOR: #000000; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left; TEXT-INDENT: 0in"> Foreign countries</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: right"> 7,063</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: right"> 6,677</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: #000000; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left; TEXT-INDENT: 0in"> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: #000000; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: #000000; TEXT-ALIGN: right"> 13,586</td> <td style="COLOR: #000000; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: #000000; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: #000000; TEXT-ALIGN: right"> 13,310</td> <td style="COLOR: #000000; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> </tr> </table> <p style="COLOR: #000000; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> <strong> </strong></p> <p style="COLOR: #000000; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> Net assets by geographic area were (in thousands):</p> <p style="COLOR: #000000; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> </p> <table style="WIDTH: 85%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: #000000; TEXT-ALIGN: left" nowrap="nowrap"> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: center" colspan="6" nowrap="nowrap">As of October 31,</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: #000000; TEXT-ALIGN: left" nowrap="nowrap"> </td> <td style="COLOR: #000000" nowrap="nowrap"> </td> <td style="COLOR: #000000; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2013</td> <td style="COLOR: #000000" nowrap="nowrap"> </td> <td style="COLOR: #000000" nowrap="nowrap"> </td> <td style="COLOR: #000000; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2012</td> <td style="COLOR: #000000" nowrap="nowrap"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="WIDTH: 74%; COLOR: #000000; TEXT-ALIGN: left; TEXT-INDENT: 0in"> North America</td> <td style="WIDTH: 1%; COLOR: #000000"> </td> <td style="WIDTH: 1%; COLOR: #000000; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; COLOR: #000000; TEXT-ALIGN: right"> 69,450</td> <td style="WIDTH: 1%; COLOR: #000000; TEXT-ALIGN: left"> </td> <td style="WIDTH: 1%; COLOR: #000000"> </td> <td style="WIDTH: 1%; COLOR: #000000; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; COLOR: #000000; TEXT-ALIGN: right"> 73,449</td> <td style="WIDTH: 1%; COLOR: #000000; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: #000000; TEXT-ALIGN: left; TEXT-INDENT: 0in"> Europe</td> <td style="COLOR: #000000"> </td> <td style="COLOR: #000000; TEXT-ALIGN: left"> </td> <td style="COLOR: #000000; TEXT-ALIGN: right">59,498</td> <td style="COLOR: #000000; TEXT-ALIGN: left"> </td> <td style="COLOR: #000000"> </td> <td style="COLOR: #000000; TEXT-ALIGN: left"> </td> <td style="COLOR: #000000; TEXT-ALIGN: right">48,571</td> <td style="COLOR: #000000; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left; TEXT-INDENT: 0in"> Asia</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: right"> 22,543</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: #000000; TEXT-ALIGN: right"> 21,773</td> <td style="COLOR: #000000; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: #000000; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left; TEXT-INDENT: 0in"> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: #000000; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: #000000; TEXT-ALIGN: right"> 151,491</td> <td style="COLOR: #000000; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> <td style="COLOR: #000000; PADDING-BOTTOM: 2.5pt"> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: #000000; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: #000000; TEXT-ALIGN: right"> 143,793</td> <td style="COLOR: #000000; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> </td> </tr> </table> <p style="COLOR: #000000; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> <strong> </strong></p> <!--EndFragment--></div> </div>
41413000
41160000
38493000
9730000
9288000
10272000
11870000
8920000
10679000
10012000
11802000
979000
870000
470000
P3Y
P3Y
P1Y
P3Y
P1Y
P1Y
P3Y
P3Y
0.00
19213
6475
24243
5859
6230
12983
25000
24.85
68456
55718
23.01
22.84
6475
27.00
0
0
P5Y
P5Y
0.64
0.62
0.0086
0.0066
750000
0
10000
0
5000
24976
45236
45236
24976
11.50
12.11
168712
155105
115369
115369
20.73
20.75
20.66
20.66
786000
26.69
2.15
0.00
0.00
0.00
0.00
0.00
26.69
0.00
23.30
21.45
0.00
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> <em>Stock Compensation.</em> We account for share-based compensation according to FASB guidance relating to share based payments, which requires the measurement and recognition of compensation expense for all share-based awards made to employees and directors based on estimated fair values on the grant date. This guidance requires that we estimate the fair value of share-based awards on the date of grant and recognize as expense the value of the portion of the award that is ultimately expected to vest over the requisite service period.</p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> <strong> </strong></p> <!--EndFragment--></div> </div>
14.82
14.88
18.13
21.45
26.69
35.83
20.31
P6Y1M6D
P3Y7M6D
P6Y6M
P2Y8M12D
P3Y
P4Y7M6D
P4Y8M12D
14.82
30000
14000
20000
15079
17500
10000
106579
30000
21000
20000
45236
17500
10000
24976
168712
14.82
14.88
18.13
21.45
26.69
35.83
23.30
20.73
P6Y1M6D
P5Y6M
P6Y6M
P8Y1M6D
P3Y
P4Y7M6D
P6Y8M12D
P9Y1M6D
35.83
27.0
21.45
29.86
28.08
23.30
23.10
6465054
6447210
6440851
6440851
3665000
3206000
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <table style="MARGIN-BOTTOM: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-TOP: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="COLOR: black; WIDTH: 0.5in"><strong>1.</strong></td> <td style="COLOR: black"><strong>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</strong></td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> <em>Consolidation</em>. The consolidated financial statements include the accounts of Hurco Companies, Inc. (an Indiana corporation) and its wholly-owned subsidiaries. We have a 35% ownership interest in a Taiwan affiliate that is accounted for using the equity method. Our investment in that affiliate was approximately $2.7 million and $2.4 million as of October 31, 2013 and 2012, respectively. That investment is included in Investments and other assets, net on the accompanying Consolidated Balance Sheets. Intercompany accounts and transactions have been eliminated.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> <em>Reclassifications.</em> Certain prior year amounts have been reclassified to conform to current year presentation.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> <em> </em></p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> <em>Statements of Cash Flows</em>. We consider all highly liquid investments with a stated maturity at the date of purchase of three months or less to be cash equivalents. Cash flows from hedges are classified consistent with the items being hedged.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> <em>Translation of Foreign Currencies</em>. All balance sheet accounts of non-U.S. subsidiaries are translated at the exchange rate as of the end of the year and translation adjustments of foreign currency balance sheets are recorded as a component of Accumulated other comprehensive loss in shareholders' equity. Income and expenses are translated at the average exchange rates during the year. Cumulative foreign currency translation adjustments as of October 31, 2013 were a net loss of $1.2 million and are included in Accumulated other comprehensive loss. Foreign currency transaction gains and losses are recorded as income or expense as incurred and are recorded in Other expense, net.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> </p> <p style="BACKGROUND-COLOR: transparent; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> <em>Hedging.</em> We account for derivative instruments as either assets or liabilities and carry them at fair value. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and the resulting designation. For derivative instruments designated as a fair value hedge, the gain or loss is recognized in earnings in the period of change together with the offsetting loss or gain on the hedged item attributed to the risk being hedged. For a derivative instrument designated as a cash flow hedge, the effective portion of the derivative's gain or loss is initially reported as a component of Accumulated other comprehensive loss in shareholders' equity and subsequently reclassified into earnings when the hedged exposure affects earnings. The ineffective portion of the gain or loss is reported in earnings immediately. For derivative instruments that are not designated as accounting hedges under the Derivatives and Hedging Topic of the Financial Accounting Standards Board (FASB guidance), changes in fair value are recognized in earnings in the period of change. The Company does not hold or issue derivative financial instruments for speculative trading purposes. We only enter into derivatives with one counterparty which is among one of the largest U.S. banks ranked by assets, in order to minimize its credit risk and to date, no such counterparty has failed to meet its financial obligations under such contracts. 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.</p> <p style="BACKGROUND-COLOR: transparent; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="BACKGROUND-COLOR: transparent; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> We operate on a global basis and are exposed to the risk that our financial condition, results of operations and cash flows could be adversely affected by changes in foreign currency exchange rates. To reduce the potential effects of foreign exchange rate movements on our net equity investment in one of our foreign subsidiaries, and the gross profit and net earnings of certain of our foreign subsidiaries, we enter into derivative financial instruments in the form of foreign exchange forward contracts with a major financial institution. We are primarily exposed to foreign currency exchange rate risk with respect to transactions and net assets denominated in Euros, Pounds Sterling, Canadian Dollars, Indian Rupee, South African Rand, Singapore Dollars, Chinese Yuan, Polish Zloty, and New Taiwan Dollars.</p> <p style="BACKGROUND-COLOR: transparent; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="BACKGROUND-COLOR: transparent; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> We account for derivative instruments designated as hedging instruments in accordance with FASB guidance related to accounting for derivative instruments and report all derivative instruments as assets or liabilities at fair value on our consolidated balance sheet.</p> <p style="BACKGROUND-COLOR: transparent; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="BACKGROUND-COLOR: transparent; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> <u>Derivatives Designated as Hedging Instruments</u></p> <p style="BACKGROUND-COLOR: transparent; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="BACKGROUND-COLOR: transparent; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; 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 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="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> We had forward contracts outstanding as of October 31, 2013, in Euros, Pounds Sterling and New Taiwan Dollars with set maturity dates ranging from November 2013 through October 2014. The contract amount at forward rates in U.S. Dollars at October 31, 2013 for Euros and Pounds Sterling was $28.3 million and $9.1 million, respectively. The contract amount at forward rates in U.S. Dollars for New Taiwan Dollars was $19.7 million at October 31, 2013. At October 31, 2013, we had approximately $974,000 of losses, net of tax, related to cash flow hedges deferred in Accumulated Other Comprehensive Loss. Of this amount, $451,000 represents unrealized losses, net of tax, related to cash flow hedge instruments that remain subject to currency fluctuation risk. The majority of these deferred losses will be recorded as an adjustment to Cost of sales and service in periods through October 2014, in which the corresponding inventory that is the subject of the related hedge contract is sold, as described above.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; 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 entered into a forward contract with a notional amount of €3.0 million in November 2012. We designated this forward contract as a hedge of our net investment in Euro denominated assets. We selected the forward method under the FASB guidance related to the accounting for derivatives instruments and hedging activities. The forward method requires all changes in the fair value of the contract to be reported as a cumulative translation adjustment in Accumulated other comprehensive loss, net of tax, in the same manner as the underlying hedged net assets. This forward contract matured in November 2013 and we entered into a new forward contract for the same notional amount that is set to mature in November 2014. As of October 31, 2013, we had a realized gain of $364,000 and an unrealized loss of $138,000, net of tax, recorded as cumulative translation adjustments in Accumulated other comprehensive loss, related to these forward contracts.</p> <p style="COLOR: black; FONT: 10pt Courier; MARGIN: 0pt 0px"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> <u>Derivatives Not Designated as Hedging Instruments</u></p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; 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 FASB guidance and, as a result, changes in their fair value are reported currently as Other expense, net in the Consolidated Statements of Income consistent with the transaction gain or loss on the related receivables and payables denominated in foreign currencies.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> We had forward contracts outstanding as of October 31, 2013, in Euros, Pounds Sterling, Canadian Dollars, South African Rand, and New Taiwan Dollars with set maturity dates ranging from November 2013 through April 2014. The contract amounts at forward rates in U.S. Dollars at October 31, 2013 for Euros, Pounds Sterling, Canadian Dollars, South African Rand and Singapore Dollars totaled $33.5 million. The contract amount at forward rates in U.S. Dollars for New Taiwan Dollars was $10.7 million at October 31, 2013.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> <u>Fair Value of Derivative Instruments</u></p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> We recognize the fair value of derivative instruments as assets and liabilities on a gross basis on our Consolidated Balance Sheets. As of October 31, 2013 and October 31, 2012, all derivative instruments were recorded at fair value on the balance sheets as follows (in thousands):</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <table style="WIDTH: 100%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="4" nowrap="nowrap">2013</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="4" nowrap="nowrap">2012</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: center" nowrap="nowrap"> Balance Sheet</td> <td nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Fair</td> <td nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: center" nowrap="nowrap"> Balance Sheet</td> <td nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Fair</td> <td nowrap="nowrap"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black" nowrap="nowrap">Derivatives</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" nowrap="nowrap">Location</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Value</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" nowrap="nowrap">Location</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Value</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; FONT-WEIGHT: bold; TEXT-ALIGN: left"> Designated as Hedging Instruments:</td> <td><font style="COLOR: black"> </font> </td> <td><font style="COLOR: black"> </font> </td> <td><font style="COLOR: black"> </font> </td> <td style="TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="TEXT-ALIGN: right"><font style="COLOR: black"> </font> </td> <td style="TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td><font style="COLOR: black"> </font> </td> <td><font style="COLOR: black"> </font> </td> <td><font style="COLOR: black"> </font> </td> <td style="TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="TEXT-ALIGN: right"><font style="COLOR: black"> </font> </td> <td style="TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 38%">Foreign exchange forward contracts</td> <td style="WIDTH: 1%"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 19%">Derivative assets</td> <td style="WIDTH: 1%"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 8%">244</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="WIDTH: 1%"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 19%">Derivative assets</td> <td style="WIDTH: 1%"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 8%">705</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; TEXT-ALIGN: left">Foreign exchange forward contracts</td> <td><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left">Derivative liabilities</td> <td><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left">$</td> <td style="COLOR: black; TEXT-ALIGN: right">1,158</td> <td style="TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left">Derivative liabilities</td> <td><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left">$</td> <td style="COLOR: black; TEXT-ALIGN: right">492</td> <td style="TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; FONT-WEIGHT: bold; TEXT-ALIGN: left">Not Designated as Hedging Instruments:</td> <td><font style="COLOR: black"> </font> </td> <td><font style="COLOR: black"> </font> </td> <td><font style="COLOR: black"> </font> </td> <td style="TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="TEXT-ALIGN: right"><font style="COLOR: black"> </font> </td> <td style="TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td><font style="COLOR: black"> </font> </td> <td><font style="COLOR: black"> </font> </td> <td><font style="COLOR: black"> </font> </td> <td style="TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="TEXT-ALIGN: right"><font style="COLOR: black"> </font> </td> <td style="TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; TEXT-ALIGN: left">Foreign exchange forward contracts</td> <td><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left">Derivative assets</td> <td><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left">$</td> <td style="COLOR: black; TEXT-ALIGN: right">455</td> <td style="TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left">Derivative assets</td> <td><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left">$</td> <td style="COLOR: black; TEXT-ALIGN: right">3</td> <td style="TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; TEXT-ALIGN: left">Foreign exchange forward contracts</td> <td><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left">Derivative liabilities</td> <td><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left">$</td> <td style="COLOR: black; TEXT-ALIGN: right">54</td> <td style="TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left">Derivative liabilities</td> <td><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left">$</td> <td style="COLOR: black; TEXT-ALIGN: right">77</td> <td style="TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="BACKGROUND-COLOR: transparent; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> <u>Effect of Derivative Instruments on the Consolidated Balance Sheets, Statements of Changes in Shareholders' Equity and Statements of Operations</u></p> <p style="BACKGROUND-COLOR: transparent; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="BACKGROUND-COLOR: transparent; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> Derivative instruments had the following effects on our Consolidated Balance Sheets, Statements of Changes in Shareholders' Equity and Statements of Income, net of tax during the year ended October 31, 2013 and 2012 (in thousands):</p> <p style="BACKGROUND-COLOR: transparent; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <table style="WIDTH: 100%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black" nowrap="nowrap">Derivatives</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="6" nowrap="nowrap">Amount of Gain (Loss)<br /> Recognized in Other<br /> Comprehensive Income</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" nowrap="nowrap">Location of Gain (Loss)<br /> Reclassified from Other<br /> Comprehensive Income</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="6" nowrap="nowrap">Amount of Gain (Loss)<br /> Reclassified from Other<br /> Comprehensive Income</td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="2">2013</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black" colspan="2">2012</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; PADDING-BOTTOM: 1pt"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: center"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="2">2013</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="2">2012</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; FONT-WEIGHT: bold">Designated as Hedging Instruments:<br /> (Effective Portion)</td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: center" colspan="2"><font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" colspan="2"><font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: center"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: center" colspan="2"><font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: center" colspan="2"><font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black"> <font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 40%">Foreign exchange forward contracts<br /> - Intercompany sales/purchases</td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 8%">(1,445</td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">)</td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 8%">2,946</td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: center; WIDTH: 15%">Cost of sales and service</td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 8%">1,690</td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 8%">(172</td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; TEXT-ALIGN: left">Foreign exchange forward contract<br /> - Net Investment</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left">$</td> <td style="COLOR: black; TEXT-ALIGN: right">(173</td> <td style="COLOR: black; TEXT-ALIGN: left">)</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left">$</td> <td style="COLOR: black; TEXT-ALIGN: right">292</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: center"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: right"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: right"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> </tr> </table> <p style="BACKGROUND-COLOR: transparent; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="BACKGROUND-COLOR: transparent; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> We recognized a loss of $37,000 during the year ended October 31, 2013 and a gain of $482,000 during the year ended October 31, 2012 as a result of contracts closed early that were deemed ineffective for financial reporting purposes and did not qualify as cash flow hedges.</p> <p style="BACKGROUND-COLOR: transparent; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <table style="WIDTH: 85%; BORDER-COLLAPSE: collapse; FONT: 10pt Courier New, Courier, Monospace" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif" nowrap="nowrap">Derivatives</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: center" nowrap="nowrap">Location of Gain (Loss)<br /> Recognized in Operations</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: center" colspan="6" nowrap="nowrap">Amount of Gain (Loss)<br /> Recognized in Operations<br /> (in thousands)</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: center"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: center"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: center"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: center"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: center" colspan="2">2013</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: center"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: center"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: center" colspan="2">2012</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: center"> <font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; FONT-WEIGHT: bold; TEXT-ALIGN: left; WIDTH: 55%"> Not Designated as Hedging Instruments:</td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="WIDTH: 14%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="WIDTH: 12%; COLOR: black; TEXT-ALIGN: right"><font style="COLOR: black"> </font> </td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="WIDTH: 12%; COLOR: black; TEXT-ALIGN: right"><font style="COLOR: black"> </font> </td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> Foreign exchange forward contracts</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> Other income (expense)</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> $</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> (1,786</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> )</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> $</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 1,013</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> The following table presents the changes in the components of Accumulated other comprehensive loss, net of tax, for the fiscal years ended October 31, 2013, 2012 and 2011, respectively.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> <em> </em></p> <table style="WIDTH: 100%; BORDER-COLLAPSE: collapse; FONT: 10pt Courier New, Courier, Monospace" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Foreign<br /> Currency<br /> Translation</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Cash Flow<br /> Hedges</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Total</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black" colspan="2"><font style="COLOR: black"> </font> </td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black" colspan="2"><font style="COLOR: black"> </font> </td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black" colspan="2"><font style="COLOR: black"> </font> </td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; WIDTH: 55%"> Balance, October 31, 2011</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; WIDTH: 1%; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left; WIDTH: 1%"> $</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right; WIDTH: 12%"> (1,070</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left; WIDTH: 1%"> )</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; WIDTH: 1%; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left; WIDTH: 1%"> $</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right; WIDTH: 12%"> (924</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left; WIDTH: 1%"> )</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; WIDTH: 1%; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left; WIDTH: 1%"> $</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right; WIDTH: 12%"> (1,994</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left; WIDTH: 1%"> )</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> Other comprehensive income (loss) before reclassifications</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> (838</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> )</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 1,870</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 1,032</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 1pt"> Reclassifications</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> -</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 109</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 109</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 1pt"> Balance, October 31, 2012</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> (1,908</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> )</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 1,055</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> (853</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> )</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> Other comprehensive income (loss) before reclassifications</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 892</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> (932</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> )</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> (40</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> )</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 1pt"> Reclassifications</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> -</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> (1,091</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> )</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 1pt"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> (1,091</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> )</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 2.5pt"> Balance, October 31, 2013</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 2.5pt"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> (1,016</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> )</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 2.5pt"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> (968</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> )</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black; PADDING-BOTTOM: 2.5pt"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> (1,984</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> )</td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> <em> </em></p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> <em>Inventories</em>. Inventories are stated at the lower of cost or market, with cost determined using the first-in, first-out method. Provisions are made to reduce excess or obsolete inventories to their estimated realizable value.</p> <p style="COLOR: black; FONT: 10pt Courier; FONT-FAMILY: Times New Roman, Times, Serif; MARGIN: 0pt 0px"> <em> </em></p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> <em>Property and Equipment</em>. Property and equipment are carried at cost. Depreciation and amortization of assets are provided primarily under the straight-line method over the shorter of the estimated useful lives or the lease terms as follows:</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <table style="WIDTH: 75%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0" align="center"> <tr style="VERTICAL-ALIGN: top"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; WIDTH: 50%; PADDING-BOTTOM: 1pt"> <font style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; FONT-FAMILY: Courier New, Courier, Monospace; TEXT-ALIGN: center; WIDTH: 50%"> Number of Years</td> </tr> <tr style="VERTICAL-ALIGN: top; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; FONT-FAMILY: Courier New, Courier, Monospace"> Land</td> <td style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; FONT-FAMILY: Courier New, Courier, Monospace; TEXT-ALIGN: center"> Indefinite</td> </tr> <tr style="VERTICAL-ALIGN: top; BACKGROUND-COLOR: white"> <td style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; FONT-FAMILY: Courier New, Courier, Monospace"> Building</td> <td style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; FONT-FAMILY: Courier New, Courier, Monospace; TEXT-ALIGN: center"> 40</td> </tr> <tr style="VERTICAL-ALIGN: top; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; FONT-FAMILY: Courier New, Courier, Monospace"> Machines</td> <td style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; FONT-FAMILY: Courier New, Courier, Monospace; TEXT-ALIGN: center"> 7 - 10</td> </tr> <tr style="VERTICAL-ALIGN: top; BACKGROUND-COLOR: white"> <td style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; FONT-FAMILY: Courier New, Courier, Monospace"> Shop and office equipment</td> <td style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; FONT-FAMILY: Courier New, Courier, Monospace; TEXT-ALIGN: center"> 3 - 7</td> </tr> <tr style="VERTICAL-ALIGN: top; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; FONT-FAMILY: Courier New, Courier, Monospace"> Leasehold improvements</td> <td style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; FONT-FAMILY: Courier New, Courier, Monospace; TEXT-ALIGN: center"> 3 - 40</td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: left; TEXT-INDENT: 0in"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> Total depreciation and amortization expense recognized for property and equipment for the years ended October 31, 2013, 2012 and 2011 was $2.2 million, $2.2 million, and $2.1 million, respectively.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> <em>Revenue Recognition.</em> We recognize revenue from sales of our machine tool systems upon delivery of the product to the customer, which is normally at the time of shipment, because persuasive evidence of an arrangement exists, delivery has occurred, the selling price is fixed and determinable and collectability is reasonably assured. In certain foreign locations, we retain title after shipment under a "retention of title" clause solely to protect collectability. The retention of title is similar to Uniform Commercial Code (UCC) filings in the United States and provides the creditor with additional rights to the machine if the customer fails to pay. Revenue recognition at the time of shipment is appropriate in this instance as long as all risks of ownership have passed to the buyer. Our computerized machine tools are general-purpose computer controlled machine tools that are typically used in stand-alone operations. Transfer of ownership and risk of loss are not contingent upon contractual customer acceptance. Prior to shipment, we test each machine to ensure the machine's compliance with standard operating specifications as listed in our sales literature.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> Depending upon geographic location, after shipment, a machine may be installed at the customer's facilities by a distributor, independent contractor or by one of our service technicians. In most instances where a machine is sold through a distributor, we have no installation involvement. If sales are direct or through sales agents, we will typically complete the machine installation, which consists of the reassembly of certain parts that were removed for shipping and the re-testing of the machine to ensure that it is performing within the standard specifications. We consider the machine installation process to be inconsequential and perfunctory.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> Service fees from maintenance contracts are deferred and recognized in earnings on a pro rata basis over the term of the contract.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> <em>Allowance for Doubtful Accounts</em>. The allowance for doubtful accounts is based on our best estimate of probable credit issues and historical experience. We perform credit evaluations of the financial condition of our customers. No collateral is required for sales made on open account terms. Concentrations of credit risk with respect to accounts receivable are limited due to the large number of customers comprising our customer base. We consider trade accounts receivable to be past due when payment is not made by the due date as specified on the customer invoice, and charge off uncollectible balances when all reasonable collection efforts have been exhausted.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> <em>Software Revenue Recognition.</em> Sales related to software products are recognized when shipped in conformity with FASB guidance related to software revenue recognition that requires at the time of shipment, persuasive evidence of an arrangement exists, delivery has occurred, the selling price is fixed and determinable and collectability is reasonably assured. The software does not require production, modification or customization.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> <em>Product Warranty</em>. Expected future product warranty claims are recorded to expense when the product is sold. Product warranty estimates are established using historical information about the nature, frequency, and average cost of warranty claims. Warranty claims are influenced by factors such as new product introductions, technological developments, the competitive environment, and the costs of component parts. Actual payments for warranty claims could differ from the amounts estimated requiring adjustments to the liabilities in future periods. See Note 12 of Notes to Consolidated Financial Statements for further discussion of warranties.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> <em>Research and Development Costs.</em> The costs associated with research and development programs for new products and significant product improvements, other than software development costs which are eligible for capitalization per FASB guidance, are expensed as incurred and are included in Selling, general and administrative expenses. Research and development expenses totaled $3.0 million, $2.6 million, and $2.5 million, in fiscal 2013, 2012, and 2011, respectively.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> Costs incurred to develop computer software products and significant enhancements to software features of existing products to be sold or otherwise marketed are capitalized, after technological feasibility is established. Software development costs are amortized on a straight-line basis over the estimated product life of the related software, which ranges from three to five years. We capitalized costs of $1.0 million in 2013, $1.0 million in 2012, and $1.1 million in 2011 related to software development projects. Amortization expense for software development costs was $1.2 million, $1.9 million, and $2.2 million, for the years ended October 31, 2013, 2012, and 2011, respectively. Accumulated amortization at October 31, 2013 and 2012 was $13.1 million and $11.9 million, respectively. Estimated amortization expense for the existing amortizable intangible assets for the years ending October 31, is as follows (in thousands):</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <table style="WIDTH: 65%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0" align="center"> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center"> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: center"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: center"> Fiscal Year</p> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="2"><font style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif">Amortization</font><font style="COLOR: black"><br /> <font style="FONT: 10pt Times New Roman, Times, Serif">Expense</font></font></td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; TEXT-ALIGN: center; WIDTH: 82%">2014</td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 15%">1,150</td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; TEXT-ALIGN: center">2015</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">1,025</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; TEXT-ALIGN: center">2016</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">700</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; TEXT-ALIGN: center">2017</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">335</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; TEXT-ALIGN: center">2018</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">220</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> <em>Goodwill and Intangible Assets.</em> Goodwill and other separately recognized intangible assets with indefinite lives are not subject to amortization. Annually we review these assets for impairment. We conduct this impairment review more frequently if an event occurs or circumstances change that would indicate the carrying amount may be impaired. For goodwill, we first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of the applicable reporting unit is less than its carrying value. If, after assessing these events or circumstances, we determine that it is not more likely than not that the fair value of such reporting unit is less than its carrying amount, we will proceed to perform a two-step impairment analysis. For other separately recognized intangible assets with indefinite lives, we use a qualitative approach to test such assets for impairment if certain conditions are met. Intangible assets that are determined to have a finite life are amortized over their estimated useful lives and are also subject to review for impairment, if indicators of impairment are identified. The changes in the carrying amounts of goodwill for the years ended October 31, 2013 and 2012 were as follows (in thousands):</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <table style="WIDTH: 75%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0" align="center"> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; TEXT-ALIGN: justify; TEXT-INDENT: 0in; WIDTH: 85%"> Balance as of October 31, 2012</td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 12%">233</td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; PADDING-BOTTOM: 1pt; PADDING-LEFT: 9pt; TEXT-ALIGN: left; TEXT-INDENT: 0in"> Goodwill acquired</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> 2,574</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> Balance as of October 31, 2013</td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; TEXT-ALIGN: right"> 2,807</td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> As of October 31, 2013, the balances of intangible assets, other than goodwill, were as follows (in thousands):</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <table style="WIDTH: 100%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" nowrap="nowrap">Weighted<br /> Average<br /> Amortization<br /> Period</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Gross<br /> Intangible<br /> Assets</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Accumulated<br /> Amortization</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Net Intangible<br /> Assets</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"> </td> <td style="COLOR: black" nowrap="nowrap"> </td> <td style="COLOR: black; TEXT-ALIGN: center" nowrap="nowrap"> </td> <td style="COLOR: black" nowrap="nowrap"> </td> <td style="COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap"> </td> <td style="COLOR: black" nowrap="nowrap"> </td> <td style="COLOR: black" nowrap="nowrap"> </td> <td style="COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap"> </td> <td style="COLOR: black" nowrap="nowrap"> </td> <td style="COLOR: black" nowrap="nowrap"> </td> <td style="COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap"> </td> <td style="COLOR: black" nowrap="nowrap"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 40%">Tradenames and trademarks</td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: center; WIDTH: 14%">13 years</td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 12%">285</td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 12%">(7</td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">)</td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 12%">278</td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; TEXT-ALIGN: left">Tradenames and trademarks</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: center">indefinite</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">60</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">60</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; TEXT-ALIGN: left">Customer relationships</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: center">15 years</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">264</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">(64</td> <td style="COLOR: black; TEXT-ALIGN: left">)</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">200</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black">Technology</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: center">13 years</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">831</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">(21</td> <td style="COLOR: black; TEXT-ALIGN: left">)</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">810</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black">Patents</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: center">6 years</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">2,973</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">(2,363</td> <td style="COLOR: black; TEXT-ALIGN: left">)</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">610</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; PADDING-BOTTOM: 1pt">Other</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: center">8 years</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> 399</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> (202</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> )</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> 197</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt; PADDING-LEFT: 0.125in"> Total</td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; PADDING-BOTTOM: 2.5pt"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; PADDING-BOTTOM: 2.5pt"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; TEXT-ALIGN: right"> 4,812</td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; TEXT-ALIGN: right"> (2,657</td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> )</td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; TEXT-ALIGN: right"> 2,155</td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> As of October 31, 2012, the balances of intangible assets, other than goodwill, were as follows (in thousands):</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <table style="WIDTH: 100%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" nowrap="nowrap">Weighted<br /> Average<br /> Amortization<br /> Period</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Gross<br /> Intangible<br /> Assets</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Accumulated<br /> Amortization</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Net Intangible<br /> Assets</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"> </td> <td style="COLOR: black" nowrap="nowrap"> </td> <td style="COLOR: black; TEXT-ALIGN: center" nowrap="nowrap"> </td> <td style="COLOR: black" nowrap="nowrap"> </td> <td style="COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap"> </td> <td style="COLOR: black" nowrap="nowrap"> </td> <td style="COLOR: black" nowrap="nowrap"> </td> <td style="COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap"> </td> <td style="COLOR: black" nowrap="nowrap"> </td> <td style="COLOR: black" nowrap="nowrap"> </td> <td style="COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap"> </td> <td style="COLOR: black" nowrap="nowrap"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 40%">Tradenames and trademarks</td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: center; WIDTH: 14%"> Indefinite</td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 12%">60</td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 12%">-</td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="WIDTH: 1%; COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 12%">60</td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; TEXT-ALIGN: left">Customer relationships</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: center">15 years</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">210</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">(49</td> <td style="COLOR: black; TEXT-ALIGN: left">)</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">161</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black">Patents</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: center">5 years</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">2,662</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">(2,111</td> <td style="COLOR: black; TEXT-ALIGN: left">)</td> <td style="COLOR: black"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right">551</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; PADDING-BOTTOM: 1pt">Other</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: center">7 years</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> 320</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> (155</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> )</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> 165</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt; PADDING-LEFT: 0.125in"> Total</td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; PADDING-BOTTOM: 2.5pt"> <font style="COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; PADDING-BOTTOM: 2.5pt"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; TEXT-ALIGN: right"> 3,252</td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; TEXT-ALIGN: right"> (2,315</td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> )</td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt"><font style="COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; TEXT-ALIGN: right"> 937</td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> <font style="COLOR: black"> </font> </td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> Intangible asset amortization expense was $342,000, $423,000, and $605,000 for fiscal 2013, 2012 and 2011, respectively. Annual intangible asset amortization expense for the next five fiscal years is estimated to be $422,000 in 2014; $239,000 in 2015; $155,000 in 2016; $133,000 in 2017 and $133,000 in 2018.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> <font style="FONT-SIZE: 10pt; COLOR: black"><em>Impairment of Long-Lived Assets.</em></font><font style="COLOR: black; FONT-SIZE: 10pt">We periodically evaluate the carrying value of long-lived assets to be held and used, including property and equipment, software development costs and intangible assets, including goodwill, when events or circumstances warrant such a review. The carrying value of a long-lived asset (or group of assets) to be held and used is considered impaired when the anticipated separately identifiable undiscounted cash flows from such an asset (or group of assets) are less than the carrying value of the asset (or group of assets) in accordance with FASB guidance related to accounting for the impairment or disposal of long-lived assets.</font></p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> <em> </em></p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> <em>Earnings Per Share.</em> Basic earnings per share is calculated by dividing net income by the weighted-average number of common shares actually outstanding during the period. Diluted earnings per share assumes the issuance of additional shares of common stock upon exercise of all outstanding stock options and contingently issuable securities if the effect is dilutive, in accordance with the treasury stock method discussed in FASB issued guidance on "Earnings Per Share". The following table presents a reconciliation of our basic and diluted earnings per share computation:</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <table style="WIDTH: 85%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: center" colspan="22" nowrap="nowrap">Fiscal Year Ended</td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: center" colspan="22" nowrap="nowrap">October 31,</td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black">(in thousands, except per share</font><font style="FONT-FAMILY: Times New Roman, Times, Serif"><br /> <font style="COLOR: black">amount)</font></font></td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: center" colspan="6" nowrap="nowrap">2013</td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: center" colspan="6" nowrap="nowrap">2012</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="6" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black">2011 </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Basic</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Diluted</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Basic</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Diluted</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Basic</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Diluted</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left; WIDTH: 22%"> Net income</td> <td style="WIDTH: 1%; COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left; WIDTH: 1%"> $</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right; WIDTH: 10%"> 8,190</td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="WIDTH: 1%; COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left; WIDTH: 1%"> $</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right; WIDTH: 10%"> 8,190</td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="WIDTH: 1%; COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left; WIDTH: 1%"> $</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right; WIDTH: 10%"> 15,638</td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="WIDTH: 1%; COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left; WIDTH: 1%"> $</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right; WIDTH: 10%"> 15,638</td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="WIDTH: 1%; COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left; WIDTH: 1%"> $</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right; WIDTH: 10%"> 11,124</td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="WIDTH: 1%; COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left; WIDTH: 1%"> $</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right; WIDTH: 10%"> 11,124</td> <td style="WIDTH: 1%; COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: right"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left; PADDING-LEFT: 0.125in; TEXT-INDENT: -0.125in"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black">Undistributed earnings</font> <font style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif">allocated to participating shares</font></td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> (86</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> )</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> (86</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> )</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> (134</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> )</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> (134</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> )</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> (53</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> )</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> (53</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> )</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-LEFT: 0.125in; TEXT-ALIGN: left; TEXT-INDENT: -0.125in"> Net income applicable to common shareholders</td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> $</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 8,104</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> $</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 8,104</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> $</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 15,504</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> $</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 15,504</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> $</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 11,071</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> $</td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 11,071</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="COLOR: black; PADDING-LEFT: 0.125in; TEXT-INDENT: -0.125in"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black">Weighted average shares</font> <font style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif">outstanding</font></td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 6,455</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 6,455</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 6,445</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 6,445</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 6,441</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Courier New, Courier, Monospace; TEXT-ALIGN: right"> 6,441</td> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> Stock options</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> -</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 42</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> -</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 25</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> -</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 1pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 31</td> <td style="COLOR: black; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,255,204)"> <td style="FONT-FAMILY: Courier New, Courier, Monospace; COLOR: black"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 6,455</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 6,497</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 6,445</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 6,470</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 6,441</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 6,472</td> <td style="COLOR: black; TEXT-ALIGN: left"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; PADDING-BOTTOM: 2.5pt"> Income per share</td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 1.26</td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 1.25</td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 2.41</td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 2.40</td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 1.72</td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt"><font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; COLOR: black; FONT-FAMILY: Times New Roman, Times, Serif; TEXT-ALIGN: right"> 1.71</td> <td style="COLOR: black; PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"> <font style="FONT-FAMILY: Times New Roman, Times, Serif; COLOR: black"> </font> </td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> <em> </em></p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> <font style="FONT-SIZE: 10pt; COLOR: black"><em>Income Taxes.</em> We account for income taxes and the related accounts under the asset and liability method. Deferred tax assets and liabilities are measured using enacted income tax rates in each jurisdiction in effect for the year in which the temporary differences are expected to be recovered or settled. These deferred tax assets are reduced by a valuation allowance, which is established when it is more likely than not that some portion or all of the deferred tax assets will not be realized.</font> <font style="COLOR: black; FONT-SIZE: 10pt">Our judgment regarding the realization of deferred tax assets may change due to future profitability and market conditions, changes in U.S. or foreign tax laws and other factors. These changes, if any, may require material adjustments to these deferred tax assets and an accompanying reduction or increase in net income in the period when such determinations are made.</font></p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> The determination of our provision for income taxes requires judgment, the use of estimates and the interpretation and application of complex tax laws. Our provision for income taxes reflects a combination of income earned and taxed at the federal and state level in the U.S., as well as in various foreign jurisdictions. We have not provided for any U.S. income taxes on the undistributed earnings of our foreign subsidiaries based upon our determination that such earnings will be indefinitely reinvested abroad. </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> In addition to the risks to the effective tax rate described above, the future effective tax rate reflected in forward-looking statements is based on currently effective tax laws. Significant changes in those laws could materially affect these estimates.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: center"> <strong> </strong></p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> We recognize uncertain tax positions when it is more likely than not that the tax position will be sustained upon examination by relevant taxing authorities, based on the technical merits of the position. The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> <em>Stock Compensation.</em> We account for share-based compensation according to FASB guidance relating to share based payments, which requires the measurement and recognition of compensation expense for all share-based awards made to employees and directors based on estimated fair values on the grant date. This guidance requires that we estimate the fair value of share-based awards on the date of grant and recognize as expense the value of the portion of the award that is ultimately expected to vest over the requisite service period.</p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> <strong> </strong></p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> <em>Estimates.</em> The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles requires us to make estimates and assumptions that affect the reported amounts presented and disclosed in our consolidated financial statements. Significant estimates and assumptions in these consolidated financial statements require the exercise of judgment and are used for, but not limited to, allowance for doubtful accounts, estimates of future cash flows and other assumptions associated with goodwill, intangible and long-lived asset impairment tests, useful lives for depreciation and amortization, warranty programs, stock compensation, income taxes and deferred tax valuation allowances, lease classification, and contingencies. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be different from these estimates.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> <em>Product Warranty</em>. Expected future product warranty claims are recorded to expense when the product is sold. Product warranty estimates are established using historical information about the nature, frequency, and average cost of warranty claims. Warranty claims are influenced by factors such as new product introductions, technological developments, the competitive environment, and the costs of component parts. Actual payments for warranty claims could differ from the amounts estimated requiring adjustments to the liabilities in future periods. See Note 12 of Notes to Consolidated Financial Statements for further discussion of warranties.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> </p> <!--EndFragment--></div> </div>
151491000
143793000
126212000
114740000
647000
645000
644000
644000
54698000
53415000
52614000
52144000
98130000
90586000
74948000
63824000
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11369
500
11369
500
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1000
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303000
1000
302000
1000
1000
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> <em>Allowance for Doubtful Accounts</em>. The allowance for doubtful accounts is based on our best estimate of probable credit issues and historical experience. We perform credit evaluations of the financial condition of our customers. No collateral is required for sales made on open account terms. Concentrations of credit risk with respect to accounts receivable are limited due to the large number of customers comprising our customer base. We consider trade accounts receivable to be past due when payment is not made by the due date as specified on the customer invoice, and charge off uncollectible balances when all reasonable collection efforts have been exhausted.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify; TEXT-INDENT: 0in"> </p> <!--EndFragment--></div> </div>
364000
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86000
134000
53000
63300000
477000
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720000
1284000
118000
244000
178000
-23000
131000
1217000
5000
66000
7000
74000
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> <em>Estimates.</em> The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles requires us to make estimates and assumptions that affect the reported amounts presented and disclosed in our consolidated financial statements. Significant estimates and assumptions in these consolidated financial statements require the exercise of judgment and are used for, but not limited to, allowance for doubtful accounts, estimates of future cash flows and other assumptions associated with goodwill, intangible and long-lived asset impairment tests, useful lives for depreciation and amortization, warranty programs, stock compensation, income taxes and deferred tax valuation allowances, lease classification, and contingencies. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be different from these estimates.</p> <!--EndFragment--></div> </div>
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6470000
6472000
6455000
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6441000
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Includes federal as well as state, provincial or similar local jurisdictions, as applicable.
Amounts shown do not include computer control systems and software sold as an integrated component of computerized machine systems.