false --10-31 Q3 2014 2014-07-31 10-Q 0000315374 6504880 Accelerated Filer HURCO COMPANIES INC 4643000 2477000 1184000 1073000 2402000 2212000 1000000 3000000 19 -3000 -27000 48000 31000 7710 23.10 P10Y 0.4 0.35 0.5 2 0.5 2 P1Y 2015-07-01 2018-07-01 129200000 105000000 3000000 33500000 12700000 23900000 53800000 41819000 35527000 37620000 36145000 14538000 13504000 19490000 18502000 -838000 -2224000 -1984000 -2200000 -1388000 -1016000 -502000 -836000 -968000 -1698000 P13Y P13Y P16Y 55651000 54698000 655000 740000 2000 1000 657000 741000 657000 741000 492000 540000 227698000 211235000 201758000 185002000 7314000 7326000 5023000 <!--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">&nbsp;</td> <td style="WIDTH: 0.25in">7.</td> <td style="TEXT-ALIGN: justify">ACQUISITION OF BUSINESS</td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 0.5in"> &nbsp;</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 Precision Technologies, or LCM. The purchase price was 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 $5.0 million. The allocation of the opening balance sheet of LCM as of July 1, 2013 is as follows (in thousands):</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <table style="WIDTH: 60%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif; MARGIN-LEFT: 0.75in" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="WIDTH: 77%; TEXT-ALIGN: left">Current assets</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 20%; TEXT-ALIGN: right">6,723</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left">Property plant and equipment</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">933</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td>Intangibles</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">1,437</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="PADDING-BOTTOM: 1pt">Goodwill</td> <td style="PADDING-BOTTOM: 1pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> &nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 2,477</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="TEXT-ALIGN: left; PADDING-LEFT: 9pt">Total assets</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">11,570</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="TEXT-ALIGN: left">Current liabilities</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">4,821</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left">Short term debt</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">4,643</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="PADDING-BOTTOM: 1pt">Non-current liabilities</td> <td style="PADDING-BOTTOM: 1pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> &nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 1,726</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left; PADDING-LEFT: 9pt"> Total Liabilities</td> <td style="PADDING-BOTTOM: 1pt">&nbsp;</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">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left">Cash expended, net of cash acquired</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">380</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">Indebtedness assumed</td> <td style="PADDING-BOTTOM: 1pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> &nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 4,643</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="PADDING-BOTTOM: 2.5pt; PADDING-LEFT: 9pt">Total purchase price</td> <td style="PADDING-BOTTOM: 2.5pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 5,023</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left">&nbsp;</td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> <font style="FONT-SIZE: 10pt">Intangible assets of $1.4 million were recorded as a result of the transaction. The fair value of the intangible assets was based upon a discounted cash flow method that involves inputs that are not observable in the market (Level 3).</font> <font style="FONT-SIZE: 10pt">Intangible assets are amortized primarily using a straight-line methodology.</font> <font style="FONT-SIZE: 10pt">The intangible assets consisted of the following (in thousands):</font></p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <table style="WIDTH: 85%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif; MARGIN-LEFT: 0.5in" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td colspan="2" nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" nowrap="nowrap">Remaining<br /> Economic</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td colspan="2" nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" nowrap="nowrap">Useful Life</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="WIDTH: 60%; TEXT-ALIGN: justify">Trademark/name</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 18%; TEXT-ALIGN: right">274</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 18%; TEXT-ALIGN: center">13 years</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: justify">Technology and manufacturing know how</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">1,111</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: center">13 years</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: justify">Customer relationships</td> <td style="PADDING-BOTTOM: 1pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> &nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 52</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt">&nbsp;</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: 2.5pt">&nbsp;</td> <td style="PADDING-BOTTOM: 2.5pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 1,437</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left">&nbsp;</td> <td style="PADDING-BOTTOM: 2.5pt">&nbsp;</td> <td style="PADDING-BOTTOM: 2.5pt">&nbsp;</td> </tr> </table> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</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"> &nbsp;</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 our consolidated financial statements since July 1, 2013.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <!--EndFragment--></div> </div> 11570000 6723000 4821000 4643000 1437000 274000 1111000 52000 11190000 1726000 933000 3625000 3714000 51345000 42804000 44612000 35770000 46674000 43277000 4671000 1335000 8541000 8842000 0.07 0.05 0.19 0.05 0.10 0.10 12500000 12500000 6585918 6533510 6504880 6465054 651000 647000 4351000 -145000 10040000 3886000 37367000 33443000 111520000 98948000 <!--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">&nbsp;</td> <td style="WIDTH: 0.25in">10.</td> <td style="TEXT-ALIGN: justify">DEBT AGREEMENTS</td> </tr> </table> <p style="TEXT-ALIGN: left; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 0.5in"> &nbsp;</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> On December 7, 2012, we entered into an agreement with a financial institution that 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 on the credit facility. On May 9, 2014, the maximum amount for outstanding letters of credit under our U.S. credit facility was increased from $3.0 million to $5.0 million in order to guarantee a new revolving credit facility in Taiwan. Borrowings under the U.S. credit facility bear interest at a LIBOR-based rate or a floating rate of 1% above the prevailing prime rate. The floating rate is not less than the greatest of (a)&nbsp;a one month LIBOR-based rate plus 1.00% per annum, (b)&nbsp;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 U.S. credit facility which is not utilized is 0.05% per annum. On June 5, 2014, the maximum amount of cash dividends we are permitted to pay was increased from $1.0 million to $3.0 million per calendar year, and we can pay cash dividends up to this amount so long as we are not in default before and after giving effect to such dividends.&nbsp;&nbsp;</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> We have a &pound;1.0&nbsp;million revolving credit facility in the United Kingdom and a &euro;1.5 million revolving credit facility in Germany. On May 12, 2014, we established a Taiwan credit facility in the amount of 100.0 million New Taiwan Dollars (approximately $3.3 million) with an expiration date of May 12, 2015. Our Taiwan credit facility is backed by letters of credit under our U.S. credit facility. We also have a 40.0 million Chinese Yuan credit facility in China.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> All of our credit facilities are unsecured except that borrowings under our Taiwan credit facility are backed by letters of credit drawn on our unsecured U.S. credit facility.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> We had $3.2 million and $3.3 million of borrowings outstanding under our China credit facility at July 31, 2014 and October 31, 2013, respectively.&nbsp; We had no other debt or borrowings under any of our other credit facilities. At July 31, 2014 we were in compliance with all covenants contained in our credit agreements and, as of that date, we had total unutilized credit facilities of approximately $18.8 million.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <!--EndFragment--></div> </div> 0.01 0.01 0.005 -71000 -107000 -57000 -692000 2096000 2080000 804000 743000 808000 791000 2359000 2506000 1189000 699000 603000 244000 586000 455000 971000 -561000 -2000 -1148000 <!--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; font-size-adjust: none; font-stretch: normal" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0px">&nbsp;</td> <td style="WIDTH: 0.25in">2.</td> <td style="TEXT-ALIGN: justify">DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES</td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; font-size-adjust: none; font-stretch: normal"> &nbsp;</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; font-size-adjust: none; font-stretch: normal"> We are exposed to certain market risks relating to our ongoing business operations, including foreign currency risk, interest rate risk and credit risk. We manage our exposure to these and other market risks through regular operating and financing activities. Currently, the only risk that we manage through the use of derivative instruments is foreign currency risk for which we enter into derivative instruments in the form of foreign currency forward exchange contracts with a major financial institution.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; font-size-adjust: none; font-stretch: normal"> &nbsp;</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; font-size-adjust: none; font-stretch: normal"> We enter into these forward exchange contracts to reduce the potential effects of foreign exchange rate movements on our net equity investment in one of our foreign subsidiaries, to reduce the impact on gross profit and net earnings from sales and purchases denominated in foreign currencies, and to reduce the impact on our net earnings of foreign currency fluctuations on receivables and payables denominated in foreign currencies that are different than our subsidiaries&#39; functional currency. We are primarily exposed to foreign currency exchange rate risk with respect to transactions and net assets denominated in Euros, Pounds Sterling, Canadian Dollars, South African Rand, Singapore Dollars, Indian Rupee, Chinese Yuan, South Korean Won, Polish Zloty, and New Taiwan Dollars. We record all derivative instruments as assets or liabilities at fair value.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; font-size-adjust: none; font-stretch: normal"> &nbsp;</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; font-size-adjust: none; font-stretch: normal"> <u>Derivatives Designated as Hedging Instruments</u></p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; font-size-adjust: none; font-stretch: normal"> &nbsp;</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; font-size-adjust: none; font-stretch: normal"> We enter into foreign currency forward exchange contracts periodically to hedge certain forecasted inter-company sales and purchases denominated in foreign currencies (the Pound Sterling, Euro and New Taiwan Dollar). The purpose of these instruments is to mitigate the risk that the U.S. Dollar net cash inflows and outflows resulting from sales and purchases denominated in foreign currencies will be adversely affected by changes in exchange rates. These forward contracts have been designated as cash flow hedge instruments, and are recorded in the Condensed Consolidated Balance Sheets at fair value in Derivative assets and Derivative liabilities. The effective portion of the gains and losses resulting from the changes in the fair value of these hedge contracts are deferred in Accumulated other comprehensive loss and recognized as an adjustment to Cost of sales and service in the period that the corresponding inventory that is the subject of the related hedge contract is sold, thereby providing an offsetting economic impact against the corresponding change in the U.S. Dollar value of the inter-company sale or purchase being hedged. The ineffective portion of gains and losses resulting from the changes in the fair value of these hedge contracts is reported in Other (income) expense, net, immediately. We perform quarterly assessments of hedge effectiveness by verifying and documenting the critical terms of the hedge instrument and determining that forecasted transactions have not changed significantly. We also assess on a quarterly basis whether there have been adverse developments regarding the risk of a counterparty default.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; font-size-adjust: none; font-stretch: normal"> &nbsp;</p> <!-- Field: Page; Sequence: 8; Value: 2 --> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; font-size-adjust: none; font-stretch: normal"> We had forward contracts outstanding as of July 31, 2014, denominated in Euros, Pounds Sterling and New Taiwan Dollars with set maturity dates ranging from August 2014 through July 2015. The contract amounts, expressed at forward rates in U.S. Dollars at July 31, 2014, were $33.5 million for Euros, $12.7 million for Pounds Sterling and $23.9 million for New Taiwanese Dollars. At July 31, 2014, we had approximately $838,000 of losses, net of tax, related to cash flow hedges deferred in Accumulated other comprehensive loss. Included in this amount were $36,000 of unrealized gains, net of tax, related to cash flow hedge instruments that remain subject to currency fluctuation risk. The majority of these deferred losses will be recorded as an adjustment to Cost of sales and service in periods through July 2015, when the corresponding inventory that is the subject of the related hedge contracts is sold, as described above.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; font-size-adjust: none; font-stretch: normal"> &nbsp;</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; font-size-adjust: none; font-stretch: normal"> We are also exposed to foreign currency exchange risk related to our investment in net assets in foreign countries. To manage this risk, we have maintained a forward contract with a notional amount of &euro;3.0 million. We designated this forward contract as a hedge of our net investment in Euro denominated assets. We selected the forward method under Financial Accounting Standards Board, or FASB, guidance related to the accounting for derivatives instruments and hedging activities. The forward method requires all changes in the fair value of the contract to be reported as a cumulative translation adjustment in Accumulated other comprehensive loss, net of tax, in the same manner as the underlying hedged net assets. This forward contract matures in November 2014. At July 31, 2014, we had $238,000 of realized gains and $27,000 of unrealized gains, net of tax, recorded as cumulative translation adjustments in Accumulated other comprehensive loss related to these forward contracts.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; font-size-adjust: none; font-stretch: normal"> &nbsp;</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; font-size-adjust: none; font-stretch: normal"> <u>Derivatives Not Designated as Hedging Instruments</u></p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; font-size-adjust: none; font-stretch: normal"> &nbsp;</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; font-size-adjust: none; font-stretch: normal"> We also enter into foreign currency forward exchange contracts to protect against the effects of foreign currency fluctuations on receivables and payables denominated in foreign currencies. These derivative instruments are not designated as hedges under the FASB guidance and, as a result, changes in their fair value are reported currently as Other (income) expense, net, in the Condensed Consolidated Statements of Income consistent with the transaction gain or loss on the related receivables and payables denominated in foreign currencies.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; font-size-adjust: none; font-stretch: normal"> &nbsp;</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; font-size-adjust: none; font-stretch: normal"> We had forward contracts outstanding as of July 31, 2014, in Euros, Pounds Sterling, Canadian Dollars, the South African Rand, and the New Taiwan Dollar with set maturity dates ranging from August 2014 through October 2014. The contract amounts at forward rates in U.S. Dollars at July 31, 2014 totaled $53.8 million.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; font-size-adjust: none; font-stretch: normal"> &nbsp;</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; font-size-adjust: none; font-stretch: normal"> <u>Fair Value of Derivative Instruments</u></p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; font-size-adjust: none; font-stretch: normal"> &nbsp;</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; font-size-adjust: none; font-stretch: normal"> We recognize the fair value of derivative instruments as assets and liabilities on a gross basis on our Condensed Consolidated Balance Sheets. As of July 31, 2014 and October 31, 2013, all derivative instruments were recorded at fair value on the balance sheets as follows (in thousands):</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; font-size-adjust: none; font-stretch: normal"> &nbsp;</p> <table style="WIDTH: 100%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="5" nowrap="nowrap">July 31, 2014</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="5" nowrap="nowrap">October 31, 2013</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" nowrap="nowrap">Balance sheet</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="2" nowrap="nowrap"> Fair</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" nowrap="nowrap">Balance sheet</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="2" nowrap="nowrap"> Fair</td> <td nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid" nowrap="nowrap"> Derivatives</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" nowrap="nowrap">location</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">value</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" nowrap="nowrap">location</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">value</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2">&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2">&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: left">Designated as hedging instruments:</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="WIDTH: 36%; TEXT-ALIGN: left">Foreign exchange forward contracts</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 18%; TEXT-ALIGN: left">Derivative assets</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">603</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 18%; TEXT-ALIGN: left">Derivative assets</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">244</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="TEXT-ALIGN: left">Foreign exchange forward contracts</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">Derivative liabilities</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">505</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">Derivative liabilities</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">1,158</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: left">Not designated as hedging instruments:</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left">Foreign exchange forward contracts</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">Derivative assets</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">586</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">Derivative assets</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">455</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="TEXT-ALIGN: left">Foreign exchange forward&nbsp;&nbsp;contracts</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">Derivative liabilities</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">163</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">Derivative liabilities</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">54</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; font-size-adjust: none; font-stretch: normal"> &nbsp;</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; font-size-adjust: none; font-stretch: normal"> &nbsp;</p> <!-- Field: Page; Sequence: 9; Value: 2 --> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; font-size-adjust: none; font-stretch: normal"> <u>Effect of Derivative Instruments on the Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Changes in Shareholders&#39; Equity and Condensed Consolidated Statements of Income</u></p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; font-size-adjust: none; font-stretch: normal"> &nbsp;</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; font-size-adjust: none; font-stretch: normal"> Derivative instruments had the following effects on our Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Changes in Shareholders&#39; Equity and Condensed Consolidated Statements of Income during the three months ended July 31, 2014 and 2013 (in thousands):</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-INDENT: 0.5in; font-size-adjust: none; font-stretch: normal"> &nbsp;</p> <table style="WIDTH: 100%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="6" nowrap="nowrap">Amount of Gain (Loss)</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" nowrap="nowrap">Location of Gain</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="6" nowrap="nowrap">Amount of Gain (Loss)</td> <td nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="6" nowrap="nowrap"> Recognized in Other</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" nowrap="nowrap">(Loss) Reclassified from Other</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="6" nowrap="nowrap"> Reclassified from Other</td> <td nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid" nowrap="nowrap"> Derivatives</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="6" nowrap="nowrap">Comprehensive Income</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" nowrap="nowrap">Comprehensive Income</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="6" nowrap="nowrap">Comprehensive Income</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="6" nowrap="nowrap">Three months ended</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="6" nowrap="nowrap">Three months ended</td> <td nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="6" nowrap="nowrap">July 31,</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="6" nowrap="nowrap">July 31,</td> <td nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2014</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2013</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2014</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2013</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: left">Designated as hedging instruments:</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left">(Effective portion)</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="WIDTH: 35%; TEXT-ALIGN: left">Foreign exchange forward contracts&nbsp;&nbsp;- Intercompany sales/purchases</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">959</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">(675</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">)</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 12%; TEXT-ALIGN: left">&nbsp;Cost of sales and service</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">(377</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">)</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">77</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left">Foreign exchange forward contract - Net investment</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">143</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">(49</td> <td style="TEXT-ALIGN: left">)</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; font-size-adjust: none; font-stretch: normal"> &nbsp;</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; font-size-adjust: none; font-stretch: normal"> We recognized a gain of $19,000 for the three months ended July 31, 2014 as a result of contracts closed early that were deemed ineffective for financial reporting purposes and did not qualify as cash flow hedges. We did not recognize gains or losses as a result of hedges deemed ineffective for the three months ended July 31, 2013. We recognized the following gains and losses in our Condensed Consolidated Statements of Income during the three months ended July 31, 2014 and 2013 (in thousands) on derivative instruments not designated as hedging instruments:</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; font-size-adjust: none; font-stretch: normal"> &nbsp;</p> <table style="WIDTH: 100%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid" nowrap="nowrap"> Derivatives</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" nowrap="nowrap">Location of gain (loss)<br /> recognized in operations</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="6" nowrap="nowrap">Amount of gain (loss) recognized in<br /> operations</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="6" nowrap="nowrap">Three months ended July 31,</td> <td nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2014</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2013</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="WIDTH: 45%; FONT-WEIGHT: bold; TEXT-ALIGN: left">Not designated as hedging instruments:</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 28%">&nbsp;</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="TEXT-ALIGN: left">Foreign exchange forward contracts</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">Other (income) expense, net</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">971</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">(561</td> <td style="TEXT-ALIGN: left">)</td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-INDENT: 0.5in; font-size-adjust: none; font-stretch: normal"> &nbsp;</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; font-size-adjust: none; font-stretch: normal"> The following table presents the changes in the components of Accumulated other comprehensive loss, net of tax, for the three months ended July 31, 2014 (in thousands):</p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; font-size-adjust: none; font-stretch: normal"> &nbsp;</p> <table style="WIDTH: 100%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="2" nowrap="nowrap"> Foreign</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td colspan="2" nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td colspan="2" nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="2" nowrap="nowrap"> Currency</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Cash Flow</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td colspan="2" nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Translation</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Hedges</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Total</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: right" colspan="2">&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: right" colspan="2">&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: right" colspan="2">&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="WIDTH: 61%">Balance, April 30, 2014</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">(502</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">)</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">(1,698</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">)</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">(2,200</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="TEXT-ALIGN: left">Other comprehensive income (loss) before reclassifications</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">(886</td> <td style="TEXT-ALIGN: left">)</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">619</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">(267</td> <td style="TEXT-ALIGN: left">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="PADDING-BOTTOM: 1pt">Reclassifications</td> <td style="PADDING-BOTTOM: 1pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> &nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> -</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> &nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 243</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> &nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 243</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="PADDING-BOTTOM: 2.5pt">Balance, July 31, 2014</td> <td style="PADDING-BOTTOM: 2.5pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> (1,388</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left">)</td> <td style="PADDING-BOTTOM: 2.5pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> (836</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left">)</td> <td style="PADDING-BOTTOM: 2.5pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> (2,224</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; font-size-adjust: none; font-stretch: normal"> &nbsp;</p> <!-- Field: Page; Sequence: 10; Value: 2 --> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; font-size-adjust: none; font-stretch: normal"> Derivative instruments had the following effects on our Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Changes in Shareholders&#39; Equity and Condensed Consolidated Statements of Income during the nine months ended July 31, 2014 and 2013 (in thousands):</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-INDENT: 0.5in; font-size-adjust: none; font-stretch: normal"> &nbsp;</p> <table style="WIDTH: 100%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="6" nowrap="nowrap">Amount of Gain (Loss)</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" nowrap="nowrap">Location of Gain</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="6" nowrap="nowrap">Amount of Gain (Loss)</td> <td nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="6" nowrap="nowrap"> Recognized in Other</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" nowrap="nowrap">(Loss) Reclassified from Other</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="6" nowrap="nowrap"> Reclassified from Other</td> <td nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid" nowrap="nowrap"> Derivatives</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="6" nowrap="nowrap">Comprehensive Income</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" nowrap="nowrap">Comprehensive Income</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="6" nowrap="nowrap">Comprehensive Income</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="6" nowrap="nowrap">Nine months ended</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="6" nowrap="nowrap">Nine months ended</td> <td nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="6" nowrap="nowrap">July 31,</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="6" nowrap="nowrap">July 31,</td> <td nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2014</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2013</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2014</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2013</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: left">Designated as hedging instruments:</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left">(Effective portion)</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="WIDTH: 35%; TEXT-ALIGN: left">Foreign exchange forward contracts&nbsp;&nbsp;- Intercompany sales/purchases</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">(918</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">)</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">(1,088</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">)</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 12%; TEXT-ALIGN: left">&nbsp;Cost of sales and service</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">(1,122</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">)</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">1,723</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left">Foreign exchange forward contract - Net investment</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">61</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">(100</td> <td style="TEXT-ALIGN: left">)</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; font-size-adjust: none; font-stretch: normal"> &nbsp;</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; font-size-adjust: none; font-stretch: normal"> We recognized a loss of $10,000 for the nine months ended July 31, 2014, and a loss of $32,000 for the nine months ended July 31, 2013 as a result of contracts closed early that were deemed ineffective for financial reporting purposes and did not qualify as cash flow hedges. We recognized the following gains and losses in our Condensed Consolidated Statements of Income during the nine months ended July 31, 2014 and 2013 (in thousands) on derivative instruments not designated as hedging instruments:</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; font-size-adjust: none; font-stretch: normal"> &nbsp;</p> <table style="WIDTH: 100%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid" nowrap="nowrap"> Derivatives</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" nowrap="nowrap">Location of gain (loss)<br /> recognized in operations</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="6" nowrap="nowrap">Amount of gain (loss) recognized in<br /> operations</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="6" nowrap="nowrap">Nine months ended July 31,</td> <td nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td>&nbsp;</td> <td style="PADDING-BOTTOM: 1pt">&nbsp;</td> <td>&nbsp;</td> <td style="PADDING-BOTTOM: 1pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2">2014</td> <td style="PADDING-BOTTOM: 1pt">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2">2013</td> <td style="PADDING-BOTTOM: 1pt">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="WIDTH: 45%; FONT-WEIGHT: bold; TEXT-ALIGN: left">Not designated as hedging instruments:</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 28%">&nbsp;</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="TEXT-ALIGN: left">Foreign exchange forward contracts</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">Other (income) expense, net</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">(2</td> <td style="TEXT-ALIGN: left">)</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">(1,148</td> <td style="TEXT-ALIGN: left">)</td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-INDENT: 0.5in; font-size-adjust: none; font-stretch: normal"> &nbsp;</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; font-size-adjust: none; font-stretch: normal"> The following table presents the changes in the components of Accumulated other comprehensive loss, net of tax, for the nine months ended July 31, 2014 (in thousands):</p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; font-size-adjust: none; font-stretch: normal"> &nbsp;</p> <table style="WIDTH: 100%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif; font-size-adjust: none; font-stretch: normal" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="2" nowrap="nowrap"> Foreign</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td colspan="2" nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td colspan="2" nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="2" nowrap="nowrap"> Currency</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Cash Flow</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td colspan="2" nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Translation</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Hedges</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Total</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: right" colspan="2">&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: right" colspan="2">&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: right" colspan="2">&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="WIDTH: 61%">Balance, October 31, 2013</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">(1,016</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">)</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">(968</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">)</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">(1,984</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="TEXT-ALIGN: left">Other comprehensive income (loss) before reclassifications</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">(372</td> <td style="TEXT-ALIGN: left">)</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">(592</td> <td style="TEXT-ALIGN: left">)</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">(964</td> <td style="TEXT-ALIGN: left">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="PADDING-BOTTOM: 1pt">Reclassifications</td> <td style="PADDING-BOTTOM: 1pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> &nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> -</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> &nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 724</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> &nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 724</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="PADDING-BOTTOM: 2.5pt">Balance, July 31, 2014</td> <td style="PADDING-BOTTOM: 2.5pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> (1,388</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left">)</td> <td style="PADDING-BOTTOM: 2.5pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> (836</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left">)</td> <td style="PADDING-BOTTOM: 2.5pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> (2,224</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; font-size-adjust: none; font-stretch: normal"> &nbsp;</p> <!-- Field: Page; Sequence: 11; Value: 2 --> <!--EndFragment--></div> </div> -377000 77000 -1122000 1723000 959000 -675000 -918000 -1088000 143000 -49000 61000 -100000 668000 1212000 505000 1158000 163000 54000 2014-11-30 2014-08-31 2015-07-31 2014-08-31 2014-10-31 19000 -10000 -32000 <!--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">&nbsp;</td> <td style="WIDTH: 0.25in">3.</td> <td>EQUITY INCENTIVE PLAN</td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</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, or 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 which are outstanding. No stock option may be exercised more than ten years after the date of grant or such shorter period as the Compensation Committee may determine at the date of grant. The 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: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> A summary of stock option activity for the nine-month period ended July 31, 2014, is as follows:</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <table style="WIDTH: 70%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif; MARGIN-LEFT: 0.75in" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td colspan="2" nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="2" nowrap="nowrap"> Weighted<br /> Average</td> <td nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="2" nowrap="nowrap"> Stock</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="2" nowrap="nowrap"> Exercise</td> <td nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Options</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Price</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2">&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2">&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="WIDTH: 58%; TEXT-ALIGN: justify">Outstanding at October 31, 2013</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> <td style="WIDTH: 18%; TEXT-ALIGN: right">168,712</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 18%; TEXT-ALIGN: right">20.73</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="TEXT-ALIGN: justify">Options granted</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">-</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">-</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: justify">Options exercised</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">(16,306</td> <td style="TEXT-ALIGN: left">)</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">(18.35</td> <td style="TEXT-ALIGN: left">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: justify">Options cancelled</td> <td style="PADDING-BOTTOM: 1pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> &nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> (20,217</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">)</td> <td style="PADDING-BOTTOM: 1pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> &nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> (25.59</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: justify">Outstanding at July 31, 2014</td> <td style="PADDING-BOTTOM: 2.5pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> &nbsp;</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 132,189</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left">&nbsp;</td> <td style="PADDING-BOTTOM: 2.5pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 20.28</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left">&nbsp;</td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> Summarized information about outstanding stock options as of July 31, 2014, that have already vested and those that are expected to vest, as well as stock options that are currently exercisable, are as follows:</p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <table style="WIDTH: 98%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif; MARGIN-LEFT: 0.1in" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Options already vested</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Options currently</td> <td nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">and expected to vest</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">exercisable</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2">&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2">&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="WIDTH: 74%; TEXT-ALIGN: justify">Number of outstanding options</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">132,189</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">105,677</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="TEXT-ALIGN: left">Weighted average remaining contractual life (years)</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">6.19</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">4.81</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="TEXT-ALIGN: justify">Weighted average exercise price per share</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">20.28</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">19.74</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="TEXT-ALIGN: justify">Intrinsic value of outstanding options</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">1,601,000</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">1,344,000</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> The intrinsic value of an outstanding stock option is calculated as the difference between the stock price as of July 31, 2014 and the exercise price of the option.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> On January 10, 2014, the Compensation Committee approved a long-term incentive compensation arrangement for our executive officers in the form of restricted shares and performance shares awarded under the 2008 Plan. The awards were 25% time-based vesting and 75% performance-based vesting. The three-year performance period is fiscal 2014 through fiscal 2016.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> The Compensation Committee granted a total 12,182 shares of time-based restricted shares to our executive officers. The restricted shares vest in thirds over three years from the date of grant provided the recipient remains employed through that date. The grant date fair value of the restricted shares was based upon the closing sales price of our common stock on the date of grant.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> The Compensation Committee also granted a total of 16,948 performance shares to our executive officers designated as "Performance Shares -TSR". The shares were weighted as 40% of the overall long-term incentive compensation arrangement and will vest based upon the total shareholder return of our common stock over a three-year period, relative to the total shareholder return of the companies in a specified peer group over that period. Participants will have the ability to earn between 50% of the target number of shares for achieving threshold performance and 200% of the target number of shares for achieving maximum performance. The fair value of the market-based performance shares was calculated using the Monte Carlo approach.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> The Compensation Committee also granted a total of 17,056 performance shares to our executive officers designated as "Performance Shares -ROIC". These shares were weighted as 35% of the overall long-term incentive compensation arrangement and will vest based upon the achievement of pre-established goals related to our average return on invested capital over the three-year period. Participants will have the ability to earn between 50% of the target number of shares for achieving threshold performance and 200% of the target number of shares for achieving maximum performance. The grant date fair value of the ROIC performance shares was based on the closing sales price of our common stock on the grant date.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> On March 13, 2014, the Compensation Committee granted a total of 11,235 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 was based on the closing sales price of our common stock on the grant date which was $24.92 per share.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> A reconciliation of the activity relating to outstanding share awards made under the 2008 Plan and related information is as follows:</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <table style="WIDTH: 85%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0" align="center"> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="2" nowrap="nowrap"> Number&nbsp;of</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="2" nowrap="nowrap"> Grant&nbsp; Date</td> <td nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Shares</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Fair&nbsp;Value</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="WIDTH: 74%">Unvested at October 31, 2013</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">68,456</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">23.01</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td>Shares granted</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">57,421</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">24.90</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td>Shares vested</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">(23,520</td> <td style="TEXT-ALIGN: left">)</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">(24.42</td> <td style="TEXT-ALIGN: left">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td>Shares cancelled</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">(13,609</td> <td style="TEXT-ALIGN: left">)</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">(23.64</td> <td style="TEXT-ALIGN: left">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="PADDING-BOTTOM: 1pt">Shares withheld</td> <td style="PADDING-BOTTOM: 1pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> &nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> (7,710</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">)</td> <td style="PADDING-BOTTOM: 1pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> &nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> (23.10</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">Unvested at July 31, 2014</td> <td style="PADDING-BOTTOM: 2.5pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> &nbsp;</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 81,038</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left">&nbsp;</td> <td style="PADDING-BOTTOM: 2.5pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 23.83</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left">&nbsp;</td> </tr> </table> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-INDENT: 0.5in"> &nbsp;</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> During the first nine months of fiscal 2014 and 2013, we recorded $657,000 and $741,000, respectively, as stock-based compensation expense attributable to stock option and share awards. As of July 31, 2014, there was an estimated $1.3 million of total unrecognized stock-based compensation expense that we expect to recognize by the end of the first quarter of fiscal 2017.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <!--EndFragment--></div> </div> 0.67 0.13 1.57 0.96 0.66 0.13 1.56 0.96 <!--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">&nbsp;</td> <td style="WIDTH: 0.25in">4.</td> <td style="TEXT-ALIGN: justify">EARNINGS PER SHARE</td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> <strong>&nbsp;</strong></p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> Per share results have been computed based on the average number of common shares outstanding. The computation of basic and diluted net income per share is determined using net income applicable to common shareholders as the numerator and the number of shares outstanding as the denominator as follows (in thousands, except per share amounts):</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</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="FONT-SIZE: 8pt">&nbsp;</font> </td> <td nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: center" colspan="14" nowrap="nowrap">Three months ended</td> <td nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: center" colspan="14" nowrap="nowrap">Nine months ended</td> <td nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: center" colspan="14" nowrap="nowrap">July 31,</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: center" colspan="14" nowrap="nowrap">July 31,</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: center" colspan="6" nowrap="nowrap">2014</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: center" colspan="6" nowrap="nowrap">2013</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: center" colspan="6" nowrap="nowrap">2014</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: center" colspan="6" nowrap="nowrap">2013</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Basic</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Diluted</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Basic</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Diluted</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Basic</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Diluted</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Basic</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Diluted</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: right" colspan="2"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: right" colspan="2"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: right" colspan="2"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: right" colspan="2"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: right" colspan="2"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: right" colspan="2"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: right" colspan="2"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: right" colspan="2"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: justify; WIDTH: 36%">Net income</td> <td style="WIDTH: 1%"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right; WIDTH: 5%">4,375</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="WIDTH: 1%"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right; WIDTH: 5%">4,375</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="WIDTH: 1%"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right; WIDTH: 5%">854</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="WIDTH: 1%"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right; WIDTH: 5%">854</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="WIDTH: 1%"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right; WIDTH: 5%"> 10,280</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="WIDTH: 1%"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right; WIDTH: 5%"> 10,280</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="WIDTH: 1%"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right; WIDTH: 5%">6,291</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="WIDTH: 1%"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right; WIDTH: 5%">6,291</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="FONT-SIZE: 8pt; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> Undistributed earnings allocated to participating shares</td> <td style="PADDING-BOTTOM: 1pt"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: right"> (35</td> <td style="FONT-SIZE: 8pt; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> )</td> <td style="PADDING-BOTTOM: 1pt"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: right"> (35</td> <td style="FONT-SIZE: 8pt; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> )</td> <td style="PADDING-BOTTOM: 1pt"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: right"> (9</td> <td style="FONT-SIZE: 8pt; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> )</td> <td style="PADDING-BOTTOM: 1pt"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: right"> (9</td> <td style="FONT-SIZE: 8pt; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> )</td> <td style="PADDING-BOTTOM: 1pt"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: right"> (83</td> <td style="FONT-SIZE: 8pt; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> )</td> <td style="PADDING-BOTTOM: 1pt"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: right"> (83</td> <td style="FONT-SIZE: 8pt; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> )</td> <td style="PADDING-BOTTOM: 1pt"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: right"> (66</td> <td style="FONT-SIZE: 8pt; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> )</td> <td style="PADDING-BOTTOM: 1pt"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: right"> (66</td> <td style="FONT-SIZE: 8pt; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> )</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: left">Net income applicable to common shareholders</td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: left">$</td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right">4,340</td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: left">$</td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right">4,340</td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: left">$</td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right">845</td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: left">$</td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right">845</td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: left">$</td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right">10,197</td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: left">$</td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right">10,197</td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: left">$</td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right">6,225</td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: left">$</td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right">6,225</td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="FONT-SIZE: 8pt">Weighted average shares outstanding</td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right">6,505</td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right">6,505</td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right">6,458</td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right">6,458</td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right">6,493</td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right">6,493</td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right">6,452</td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right">6,452</td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="FONT-SIZE: 8pt; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> Stock options</td> <td style="PADDING-BOTTOM: 1pt"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: right"> -</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 1pt"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: right"> 43</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 1pt"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: right"> -</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 1pt"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: right"> 49</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 1pt"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: right"> -</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 1pt"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: right"> 36</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 1pt"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: right"> -</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 1pt"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: right"> 43</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right">6,505</td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right">6,548</td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right">6,458</td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right">6,507</td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right">6,493</td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right">6,529</td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right">6,452</td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right">6,495</td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: right"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: right"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: right"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: right"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: right"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: right"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: right"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: right"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="FONT-SIZE: 8pt; PADDING-BOTTOM: 2.5pt">Income per share</td> <td style="PADDING-BOTTOM: 2.5pt"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; FONT-SIZE: 8pt; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; FONT-SIZE: 8pt; TEXT-ALIGN: right"> 0.67</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 2.5pt"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; FONT-SIZE: 8pt; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; FONT-SIZE: 8pt; TEXT-ALIGN: right"> 0.66</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 2.5pt"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; FONT-SIZE: 8pt; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; FONT-SIZE: 8pt; TEXT-ALIGN: right"> 0.13</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 2.5pt"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; FONT-SIZE: 8pt; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; FONT-SIZE: 8pt; TEXT-ALIGN: right"> 0.13</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 2.5pt"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; FONT-SIZE: 8pt; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; FONT-SIZE: 8pt; TEXT-ALIGN: right"> 1.57</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 2.5pt"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; FONT-SIZE: 8pt; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; FONT-SIZE: 8pt; TEXT-ALIGN: right"> 1.56</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 2.5pt"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; FONT-SIZE: 8pt; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; FONT-SIZE: 8pt; TEXT-ALIGN: right"> 0.96</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 2.5pt"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; FONT-SIZE: 8pt; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; FONT-SIZE: 8pt; TEXT-ALIGN: right"> 0.96</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> </tr> </table> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <!--EndFragment--></div> </div> 0.29 0.33 -313000 -75000 -175000 -63000 1300000 10000 10000 10000 <!--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">&nbsp;</td> <td style="WIDTH: 0.25in">12.</td> <td style="TEXT-ALIGN: justify">FINANCIAL INSTRUMENTS</td> </tr> </table> <p style="TEXT-ALIGN: left; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> <em>&nbsp;</em></p> <p style="TEXT-ALIGN: left; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> <em>Fair Value Measurement of Financial Instruments</em></p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> FASB guidance establishes a three-tier fair value hierarchy, which categorizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs 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 Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <p style="TEXT-ALIGN: justify; 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 July 31, 2014 and October 31, 2013 (in thousands):</p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 0.25in"> &nbsp;</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">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="6" nowrap="nowrap">Assets</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="6" nowrap="nowrap">Liabilities</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">July 31, 2014</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">October 31, 2013</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">July 31, 2014</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">October 31, 2013</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2">&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2">&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2">&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2">&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="TEXT-DECORATION: underline">Level 1</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="WIDTH: 48%; TEXT-ALIGN: left">Deferred Compensation</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">1,184</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">1,073</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">-</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">-</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-DECORATION: underline">Level 2</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td>Derivatives</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">1,189</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">699</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">668</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">1,212</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</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 readily available market prices.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</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 2 of Notes to the Condensed Consolidated Financial Statements in which the U.S. Dollar equivalent notional amounts of these contracts was $129.2 million and $105.0 million at July 31, 2014 and October 31, 2013, respectively. The fair value of Derivative assets recorded on our Condensed Consolidated Balance Sheets was $1.2 million at July 31, 2014 and $699,000 at October 31, 2013. The fair value of Derivative liabilities recorded on our Condensed Consolidated Balance Sheets was $668,000 at July 31, 2014 and $1.2 million at October 31, 2013.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> The fair value of our foreign currency forward exchange contracts and the related currency positions are subject to offsetting market risk resulting from foreign currency exchange rate volatility. The counterparty to the forward exchange contracts is a substantial and creditworthy financial institution. We do not consider either the risk of counterparty non-performance or the economic consequences of counterparty non-performance as material risks.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <!--EndFragment--></div> </div> 36000 1189000 699000 1189000 699000 668000 1212000 668000 1212000 -2031000 -366000 -664000 -142000 2771000 2807000 18012000 11715000 48560000 39914000 1700000 6059000 1117000 14453000 9328000 82000 117000 247000 231000 <!--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">&nbsp;</td> <td style="WIDTH: 0.25in">11.</td> <td style="TEXT-ALIGN: justify">INCOME TAXES</td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 0.5in"> &nbsp;</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; BACKGROUND-COLOR: white"> Our effective income tax rate for the first nine months of fiscal 2014 was 29% in comparison to 33% for the same period in fiscal 2013. The decrease in the effective rate was primarily due to changes in the geographic mix of income or loss between tax jurisdictions.&nbsp; We recorded income tax expense during the first nine months of fiscal 2014 of $4.2 million compared to $3.0 million for the same period in fiscal 2013, primarily as a result of the increase in pre-tax income period-over-period.&nbsp; We have not provided any U.S. income taxes on the undistributed earnings of our wholly-owned foreign subsidiaries based upon our determination that such earnings will be indefinitely reinvested in our foreign operations.&nbsp; In the event these earnings are later distributed to our U.S. operations, such distributions would likely result in additional U.S. tax that may be offset, at least in part by associated foreign tax credits.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; BACKGROUND-COLOR: white"> &nbsp;</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; BACKGROUND-COLOR: white"> Our unrecognized tax benefits were $1.3 million as of July 31, 2014 and as of October 31, 2013, and in each case included accrued interest.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</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 income tax expense.&nbsp;&nbsp; As of July 31, 2014, the gross amount of interest accrued, reported in Accrued expenses and other, was approximately $10,000, which did not include the federal tax benefit of interest deductions.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> We file U.S. federal and state income tax returns, as well as tax returns in several foreign jurisdictions.&nbsp; The statutes of limitations with respect to unrecognized tax benefits will expire between July 2015 and July 2018.</p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <!--EndFragment--></div> </div> 1684000 263000 4173000 3037000 4965000 -279000 6633000 3046000 1681000 846000 1125000 -3522000 510000 -82000 -121000 529000 5182000 3778000 5205000 3519000 448000 1104000 434000 727000 783000 379000 2107000 456000 364000 -6663000 1520000 -9720000 43000 49000 36000 43000 1811000 2155000 65000 74000 196000 194000 <!--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">&nbsp;</td> <td style="WIDTH: 0.25in">6.</td> <td style="TEXT-ALIGN: justify">INVENTORIES</td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> <strong>&nbsp;</strong></p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> Inventories, priced at the lower of cost (first-in, first-out method) or market, are summarized below (in thousands):</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-INDENT: 0.5in"> &nbsp;</p> <table style="WIDTH: 85%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif; MARGIN-LEFT: 0.5in" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">July 31, 2014</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">October 31, 2013</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="WIDTH: 74%; TEXT-ALIGN: justify">Purchased parts and sub-assemblies</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">21,550</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">21,647</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: justify">Work-in-process</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">16,470</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">15,996</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: justify">Finished goods</td> <td style="PADDING-BOTTOM: 1pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> &nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 61,318</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> &nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 57,617</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="PADDING-BOTTOM: 2.5pt">&nbsp;</td> <td style="PADDING-BOTTOM: 2.5pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 99,338</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left">&nbsp;</td> <td style="PADDING-BOTTOM: 2.5pt">&nbsp;</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">&nbsp;</td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 0.5in"> &nbsp;</p> <!--EndFragment--></div> </div> 61318000 57617000 99338000 95260000 21550000 21647000 16470000 15996000 23000 14000 55000 61000 4000 4000 40000 19000 782000 782000 3594000 3634000 <!--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"> 13. CONTINGENCIES AND LITIGATION</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</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="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <!--EndFragment--></div> </div> 66446000 59744000 227698000 211235000 62113000 55686000 1127000 1103000 3200000 3300000 2015-05-12 12500000 3300000 100000000 1000000 1500000 40000000 5000000 3000000 18800000 0.0005 <!--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">&nbsp;</td> <td style="WIDTH: 0.25in">5.</td> <td style="TEXT-ALIGN: justify">ACCOUNTS RECEIVABLE</td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> Accounts receivable are net of allowances for doubtful accounts of $492,000 as of July 31, 2014 and $540,000 as of October 31, 2013.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <!--EndFragment--></div> </div> 19787000 19059000 -456000 -2215000 -1322000 -2214000 -614000 -996000 -2077000 -2325000 6054000 4621000 12115000 13444000 4375000 854000 10280000 6291000 10280000 6291000 4340000 845000 10197000 6225000 <!--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"> 14. NEW ACCOUNTING PRONOUNCEMENTS</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> In July 2013, the FASB issued ASU 2013-11<em>, Presentation of an Unrecognized Tax Benefit When a Net</em> <em>Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists,</em> providing guidance on the presentation of unrecognized tax benefits, reflecting the manner in which an entity would settle, at the reporting date, any additional income taxes that would result from the disallowance of a tax position when net operating loss carryforwards, similar tax losses, or tax credit carryforwards exist. The amendments in this update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. We do not expect that the adoption of this accounting standard update will have a material effect on our consolidated financial statements.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> In May 2014, the FASB issued ASU 2014-09, <em>Revenue from Contracts with Customers (Topic 606)</em>, establishing a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. This update provides a five-step analysis in determining when and how revenue is recognized. The new model will require revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods or services and will supersede most of the existing revenue recognition guidance, including industry-specific guidance. The amendments in this update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption is not permitted. We have the option of using either a full retrospective or modified approach to adopt this guidance. We are assessing the method of adoption and the impact this new accounting guidance will have on our consolidated financial statements.</p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <!--EndFragment--></div> </div> 6143000 1703000 14885000 10303000 <!--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">&nbsp;</td> <td style="WIDTH: 0.25in">1.</td> <td style="TEXT-ALIGN: justify">GENERAL</td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 0.25in"> &nbsp;</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> The unaudited Condensed Consolidated Financial Statements include the accounts of Hurco Companies, Inc. and its consolidated subsidiaries. As used in this report, unless the context indicates otherwise, the terms "we", "us", "our" and similar language refer to Hurco Companies, Inc. and its consolidated subsidiaries as a whole.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 0.5in"> &nbsp;</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> We design and produce computerized machine tools, interactive computer control systems, machine tool components, and software for sale through our distribution network to the worldwide metal cutting market. We also provide software options, computer control upgrades, accessories and replacement parts for our products, as well as customer service and training support.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 0.5in"> &nbsp;</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> The condensed financial information as of July 31, 2014 and for the three and nine months ended July 31, 2014 and July 31, 2013 is unaudited. However, in our opinion, the interim data includes all adjustments, consisting only of normal recurring adjustments, necessary to present fairly our consolidated financial position, results of operations, changes in shareholders&#39; equity and cash flows at the end of the interim periods. We suggest that you read these condensed consolidated financial statements in conjunction with the financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended October 31, 2013.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <!--EndFragment--></div> </div> 1479000 1430000 5746000 5258000 -886000 -372000 619000 -592000 -267000 -964000 -886000 -520000 -372000 -614000 -24000 -999000 -240000 -2405000 -240000 -2405000 -243000 49000 -724000 1098000 -243000 -724000 134000 -28000 398000 -625000 619000 -430000 -592000 -693000 340000 -245000 -326000 -395000 -46000 -530000 -331000 -861000 -147000 8000 68000 48000 456000 323000 1236000 323000 1236000 323000 380000 380000 380000 476000 375000 1427000 1147000 285000 233000 708000 750000 0.00 0.00 1000000 1000000 0 0 8691000 6584000 126000 303000 298000 303000 1849000 1778000 1650000 1623000 1849000 1778000 -9000 -11000 2745000 2705000 2825000 2743000 <!--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">&nbsp;</td> <td style="WIDTH: 0.25in">9.</td> <td style="TEXT-ALIGN: justify">GUARANTEES AND WARRANTIES</td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 0.5in"> &nbsp;</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&#39;s accounting for, and disclosures of, the issuance of certain types of guarantees.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-INDENT: 0.5in"> &nbsp;</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. As of July 31, 2014, we had 19 outstanding third party payment guarantees totaling approximately $1.7 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"> &nbsp;</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> We provide warranties on our products with respect to defects in material and workmanship. The terms of these warranties are generally one year for machines and certain components and shorter periods for service parts. We recognize a reserve with respect to this obligation at the time of product sale, with subsequent warranty claims recorded against the reserve. The amount of the warranty reserve is determined based on historical trend experience and any known warranty issues that could cause future warranty costs to differ from historical experience. A reconciliation of the changes in our warranty reserve is as follows (in thousands):</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <table style="WIDTH: 75%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif; MARGIN-LEFT: 0.75in" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="6" nowrap="nowrap">Nine months ended</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">July 31, 2014</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">July 31, 2013</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="WIDTH: 74%; TEXT-ALIGN: justify">Balance, beginning of period</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">1,778</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">1,623</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: justify">Provision for warranties during the period</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">2,825</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">2,743</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="TEXT-ALIGN: justify">Charges to the reserve</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">(2,745</td> <td style="TEXT-ALIGN: left">)</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">(2,705</td> <td style="TEXT-ALIGN: left">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: justify">Impact of foreign currency translation</td> <td style="PADDING-BOTTOM: 1pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> &nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> (9</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">)</td> <td style="PADDING-BOTTOM: 1pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> &nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> (11</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: justify">Balance, end of period</td> <td style="PADDING-BOTTOM: 2.5pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 1,849</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left">&nbsp;</td> <td style="PADDING-BOTTOM: 2.5pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 1,650</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left">&nbsp;</td> </tr> </table> <p style="TEXT-ALIGN: left; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> The year-over-year increase in the warranty reserve reflects higher sales volumes and anticipated claims for machines under warranty as well as the sale of a greater number of our higher-performance machines which have a higher cost per claim.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <!--EndFragment--></div> </div> 31477000 30801000 11987000 12299000 2205000 386000 2205000 107174000 98130000 55379000 45158000 160080000 138862000 <!--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"> &nbsp;</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">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="2" nowrap="nowrap"> Foreign</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td colspan="2" nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td colspan="2" nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="2" nowrap="nowrap"> Currency</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Cash Flow</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td colspan="2" nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Translation</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Hedges</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Total</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: right" colspan="2">&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: right" colspan="2">&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: right" colspan="2">&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="WIDTH: 61%">Balance, April 30, 2014</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">(502</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">)</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">(1,698</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">)</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">(2,200</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="TEXT-ALIGN: left">Other comprehensive income (loss) before reclassifications</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">(886</td> <td style="TEXT-ALIGN: left">)</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">619</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">(267</td> <td style="TEXT-ALIGN: left">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="PADDING-BOTTOM: 1pt">Reclassifications</td> <td style="PADDING-BOTTOM: 1pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> &nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> -</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> &nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 243</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> &nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 243</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="PADDING-BOTTOM: 2.5pt">Balance, July 31, 2014</td> <td style="PADDING-BOTTOM: 2.5pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> (1,388</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left">)</td> <td style="PADDING-BOTTOM: 2.5pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> (836</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left">)</td> <td style="PADDING-BOTTOM: 2.5pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> (2,224</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"> &nbsp;</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"> &nbsp;</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">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="2" nowrap="nowrap"> Foreign</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td colspan="2" nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td colspan="2" nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="2" nowrap="nowrap"> Currency</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Cash Flow</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td colspan="2" nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Translation</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Hedges</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Total</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: right" colspan="2">&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: right" colspan="2">&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: right" colspan="2">&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="WIDTH: 61%">Balance, October 31, 2013</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">(1,016</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">)</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">(968</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">)</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">(1,984</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="TEXT-ALIGN: left">Other comprehensive income (loss) before reclassifications</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">(372</td> <td style="TEXT-ALIGN: left">)</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">(592</td> <td style="TEXT-ALIGN: left">)</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">(964</td> <td style="TEXT-ALIGN: left">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="PADDING-BOTTOM: 1pt">Reclassifications</td> <td style="PADDING-BOTTOM: 1pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> &nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> -</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> &nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 724</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> &nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 724</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="PADDING-BOTTOM: 2.5pt">Balance, July 31, 2014</td> <td style="PADDING-BOTTOM: 2.5pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> (1,388</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left">)</td> <td style="PADDING-BOTTOM: 2.5pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> (836</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left">)</td> <td style="PADDING-BOTTOM: 2.5pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> (2,224</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left">)</td> </tr> </table> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <!--EndFragment--></div> </div> <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <table style="WIDTH: 85%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif; MARGIN-LEFT: 0.5in" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td colspan="2" nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" nowrap="nowrap">Remaining<br /> Economic</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td colspan="2" nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" nowrap="nowrap">Useful Life</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="WIDTH: 60%; TEXT-ALIGN: justify">Trademark/name</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 18%; TEXT-ALIGN: right">274</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 18%; TEXT-ALIGN: center">13 years</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: justify">Technology and manufacturing know how</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">1,111</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: center">13 years</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: justify">Customer relationships</td> <td style="PADDING-BOTTOM: 1pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> &nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 52</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt">&nbsp;</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: 2.5pt">&nbsp;</td> <td style="PADDING-BOTTOM: 2.5pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 1,437</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left">&nbsp;</td> <td style="PADDING-BOTTOM: 2.5pt">&nbsp;</td> <td style="PADDING-BOTTOM: 2.5pt">&nbsp;</td> </tr> </table> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</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"> &nbsp;</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> Derivative instruments had the following effects on our Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Changes in Shareholders&#39; Equity and Condensed Consolidated Statements of Income during the three months ended July 31, 2014 and 2013 (in thousands):</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-INDENT: 0.5in"> &nbsp;</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">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="6" nowrap="nowrap">Amount of Gain (Loss)</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" nowrap="nowrap">Location of Gain</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="6" nowrap="nowrap">Amount of Gain (Loss)</td> <td nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="6" nowrap="nowrap"> Recognized in Other</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" nowrap="nowrap">(Loss) Reclassified from Other</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="6" nowrap="nowrap"> Reclassified from Other</td> <td nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid" nowrap="nowrap"> Derivatives</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="6" nowrap="nowrap">Comprehensive Income</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" nowrap="nowrap">Comprehensive Income</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="6" nowrap="nowrap">Comprehensive Income</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="6" nowrap="nowrap">Three months ended</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="6" nowrap="nowrap">Three months ended</td> <td nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="6" nowrap="nowrap">July 31,</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="6" nowrap="nowrap">July 31,</td> <td nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2014</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2013</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2014</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2013</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: left">Designated as hedging instruments:</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left">(Effective portion)</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="WIDTH: 35%; TEXT-ALIGN: left">Foreign exchange forward contracts&nbsp;&nbsp;- Intercompany sales/purchases</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">959</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">(675</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">)</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 12%; TEXT-ALIGN: left">&nbsp;Cost of sales and service</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">(377</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">)</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">77</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left">Foreign exchange forward contract - Net investment</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">143</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">(49</td> <td style="TEXT-ALIGN: left">)</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> We recognized a gain of $19,000 for the three months ended July 31, 2014 as a result of contracts closed early that were deemed ineffective for financial reporting purposes and did not qualify as cash flow hedges. We did not recognize gains or losses as a result of hedges deemed ineffective for the three months ended July 31, 2013. We recognized the following gains and losses in our Condensed Consolidated Statements of Income during the three months ended July 31, 2014 and 2013 (in thousands) on derivative instruments not designated as hedging instruments:</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</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" nowrap="nowrap"> Derivatives</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" nowrap="nowrap">Location of gain (loss)<br /> recognized in operations</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="6" nowrap="nowrap">Amount of gain (loss) recognized in<br /> operations</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="6" nowrap="nowrap">Three months ended July 31,</td> <td nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2014</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2013</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="WIDTH: 45%; FONT-WEIGHT: bold; TEXT-ALIGN: left">Not designated as hedging instruments:</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 28%">&nbsp;</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="TEXT-ALIGN: left">Foreign exchange forward contracts</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">Other (income) expense, net</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">971</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">(561</td> <td style="TEXT-ALIGN: left">)</td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-INDENT: 0.5in"> &nbsp;</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"> Derivative instruments had the following effects on our Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Changes in Shareholders&#39; Equity and Condensed Consolidated Statements of Income during the nine months ended July 31, 2014 and 2013 (in thousands):</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-INDENT: 0.5in"> &nbsp;</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">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="6" nowrap="nowrap">Amount of Gain (Loss)</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" nowrap="nowrap">Location of Gain</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="6" nowrap="nowrap">Amount of Gain (Loss)</td> <td nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="6" nowrap="nowrap"> Recognized in Other</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" nowrap="nowrap">(Loss) Reclassified from Other</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="6" nowrap="nowrap"> Reclassified from Other</td> <td nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid" nowrap="nowrap"> Derivatives</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="6" nowrap="nowrap">Comprehensive Income</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" nowrap="nowrap">Comprehensive Income</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="6" nowrap="nowrap">Comprehensive Income</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="6" nowrap="nowrap">Nine months ended</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="6" nowrap="nowrap">Nine months ended</td> <td nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="6" nowrap="nowrap">July 31,</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="6" nowrap="nowrap">July 31,</td> <td nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2014</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2013</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2014</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2013</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: left">Designated as hedging instruments:</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left">(Effective portion)</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="WIDTH: 35%; TEXT-ALIGN: left">Foreign exchange forward contracts&nbsp;&nbsp;- Intercompany sales/purchases</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">(918</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">)</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">(1,088</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">)</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 12%; TEXT-ALIGN: left">&nbsp;Cost of sales and service</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">(1,122</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">)</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">1,723</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left">Foreign exchange forward contract - Net investment</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">61</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">(100</td> <td style="TEXT-ALIGN: left">)</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> We recognized a loss of $10,000 for the nine months ended July 31, 2014, and a loss of $32,000 for the nine months ended July 31, 2013 as a result of contracts closed early that were deemed ineffective for financial reporting purposes and did not qualify as cash flow hedges. We recognized the following gains and losses in our Condensed Consolidated Statements of Income during the nine months ended July 31, 2014 and 2013 (in thousands) on derivative instruments not designated as hedging instruments:</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</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" nowrap="nowrap"> Derivatives</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" nowrap="nowrap">Location of gain (loss)<br /> recognized in operations</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="6" nowrap="nowrap">Amount of gain (loss) recognized in<br /> operations</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="6" nowrap="nowrap">Nine months ended July 31,</td> <td nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td>&nbsp;</td> <td style="PADDING-BOTTOM: 1pt">&nbsp;</td> <td>&nbsp;</td> <td style="PADDING-BOTTOM: 1pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2">2014</td> <td style="PADDING-BOTTOM: 1pt">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2">2013</td> <td style="PADDING-BOTTOM: 1pt">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="WIDTH: 45%; FONT-WEIGHT: bold; TEXT-ALIGN: left">Not designated as hedging instruments:</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 28%">&nbsp;</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="TEXT-ALIGN: left">Foreign exchange forward contracts</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">Other (income) expense, net</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">(2</td> <td style="TEXT-ALIGN: left">)</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">(1,148</td> <td style="TEXT-ALIGN: left">)</td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-INDENT: 0.5in"> &nbsp;</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"> &nbsp;</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">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="5" nowrap="nowrap">July 31, 2014</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="5" nowrap="nowrap">October 31, 2013</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" nowrap="nowrap">Balance sheet</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="2" nowrap="nowrap"> Fair</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" nowrap="nowrap">Balance sheet</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="2" nowrap="nowrap"> Fair</td> <td nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid" nowrap="nowrap"> Derivatives</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" nowrap="nowrap">location</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">value</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" nowrap="nowrap">location</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">value</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2">&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2">&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: left">Designated as hedging instruments:</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="WIDTH: 36%; TEXT-ALIGN: left">Foreign exchange forward contracts</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 18%; TEXT-ALIGN: left">Derivative assets</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">603</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 18%; TEXT-ALIGN: left">Derivative assets</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">244</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="TEXT-ALIGN: left">Foreign exchange forward contracts</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">Derivative liabilities</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">505</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">Derivative liabilities</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">1,158</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: left">Not designated as hedging instruments:</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left">Foreign exchange forward contracts</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">Derivative assets</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">586</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">Derivative assets</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">455</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="TEXT-ALIGN: left">Foreign exchange forward&nbsp;&nbsp;contracts</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">Derivative liabilities</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">163</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">Derivative liabilities</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">54</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</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"> &nbsp;</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="FONT-SIZE: 8pt">&nbsp;</font> </td> <td nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: center" colspan="14" nowrap="nowrap">Three months ended</td> <td nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: center" colspan="14" nowrap="nowrap">Nine months ended</td> <td nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: center" colspan="14" nowrap="nowrap">July 31,</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: center" colspan="14" nowrap="nowrap">July 31,</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: center" colspan="6" nowrap="nowrap">2014</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: center" colspan="6" nowrap="nowrap">2013</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: center" colspan="6" nowrap="nowrap">2014</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: center" colspan="6" nowrap="nowrap">2013</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Basic</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Diluted</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Basic</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Diluted</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Basic</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Diluted</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Basic</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Diluted</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: right" colspan="2"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: right" colspan="2"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: right" colspan="2"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: right" colspan="2"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: right" colspan="2"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: right" colspan="2"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: right" colspan="2"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: right" colspan="2"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: justify; WIDTH: 36%">Net income</td> <td style="WIDTH: 1%"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right; WIDTH: 5%">4,375</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="WIDTH: 1%"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right; WIDTH: 5%">4,375</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="WIDTH: 1%"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right; WIDTH: 5%">854</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="WIDTH: 1%"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right; WIDTH: 5%">854</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="WIDTH: 1%"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right; WIDTH: 5%"> 10,280</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="WIDTH: 1%"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right; WIDTH: 5%"> 10,280</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="WIDTH: 1%"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right; WIDTH: 5%">6,291</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="WIDTH: 1%"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right; WIDTH: 5%">6,291</td> <td style="WIDTH: 1%; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="FONT-SIZE: 8pt; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> Undistributed earnings allocated to participating shares</td> <td style="PADDING-BOTTOM: 1pt"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: right"> (35</td> <td style="FONT-SIZE: 8pt; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> )</td> <td style="PADDING-BOTTOM: 1pt"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: right"> (35</td> <td style="FONT-SIZE: 8pt; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> )</td> <td style="PADDING-BOTTOM: 1pt"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: right"> (9</td> <td style="FONT-SIZE: 8pt; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> )</td> <td style="PADDING-BOTTOM: 1pt"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: right"> (9</td> <td style="FONT-SIZE: 8pt; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> )</td> <td style="PADDING-BOTTOM: 1pt"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: right"> (83</td> <td style="FONT-SIZE: 8pt; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> )</td> <td style="PADDING-BOTTOM: 1pt"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: right"> (83</td> <td style="FONT-SIZE: 8pt; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> )</td> <td style="PADDING-BOTTOM: 1pt"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: right"> (66</td> <td style="FONT-SIZE: 8pt; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> )</td> <td style="PADDING-BOTTOM: 1pt"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: right"> (66</td> <td style="FONT-SIZE: 8pt; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> )</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: left">Net income applicable to common shareholders</td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: left">$</td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right">4,340</td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: left">$</td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right">4,340</td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: left">$</td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right">845</td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: left">$</td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right">845</td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: left">$</td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right">10,197</td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: left">$</td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right">10,197</td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: left">$</td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right">6,225</td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: left">$</td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right">6,225</td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="FONT-SIZE: 8pt">Weighted average shares outstanding</td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right">6,505</td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right">6,505</td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right">6,458</td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right">6,458</td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right">6,493</td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right">6,493</td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right">6,452</td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right">6,452</td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="FONT-SIZE: 8pt; PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"> Stock options</td> <td style="PADDING-BOTTOM: 1pt"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: right"> -</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 1pt"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: right"> 43</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 1pt"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: right"> -</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 1pt"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: right"> 49</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 1pt"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: right"> -</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 1pt"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: right"> 36</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 1pt"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: right"> -</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 1pt"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-SIZE: 8pt; TEXT-ALIGN: right"> 43</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right">6,505</td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right">6,548</td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right">6,458</td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right">6,507</td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right">6,493</td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right">6,529</td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right">6,452</td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: right">6,495</td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: right"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: right"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: right"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: right"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: right"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: right"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: right"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: right"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="FONT-SIZE: 8pt; PADDING-BOTTOM: 2.5pt">Income per share</td> <td style="PADDING-BOTTOM: 2.5pt"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; FONT-SIZE: 8pt; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; FONT-SIZE: 8pt; TEXT-ALIGN: right"> 0.67</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 2.5pt"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; FONT-SIZE: 8pt; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; FONT-SIZE: 8pt; TEXT-ALIGN: right"> 0.66</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 2.5pt"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; FONT-SIZE: 8pt; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; FONT-SIZE: 8pt; TEXT-ALIGN: right"> 0.13</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 2.5pt"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; FONT-SIZE: 8pt; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; FONT-SIZE: 8pt; TEXT-ALIGN: right"> 0.13</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 2.5pt"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; FONT-SIZE: 8pt; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; FONT-SIZE: 8pt; TEXT-ALIGN: right"> 1.57</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 2.5pt"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; FONT-SIZE: 8pt; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; FONT-SIZE: 8pt; TEXT-ALIGN: right"> 1.56</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 2.5pt"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; FONT-SIZE: 8pt; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; FONT-SIZE: 8pt; TEXT-ALIGN: right"> 0.96</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="PADDING-BOTTOM: 2.5pt"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> <td style="BORDER-BOTTOM: black 2.5pt double; FONT-SIZE: 8pt; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; FONT-SIZE: 8pt; TEXT-ALIGN: right"> 0.96</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left"><font style="FONT-SIZE: 8pt">&nbsp;</font> </td> </tr> </table> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</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"> &nbsp;</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">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="6" nowrap="nowrap">Assets</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="6" nowrap="nowrap">Liabilities</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">July 31, 2014</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">October 31, 2013</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">July 31, 2014</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">October 31, 2013</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2">&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2">&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2">&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2">&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="TEXT-DECORATION: underline">Level 1</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="WIDTH: 48%; TEXT-ALIGN: left">Deferred Compensation</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">1,184</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">1,073</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">-</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">-</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-DECORATION: underline">Level 2</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td>Derivatives</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">1,189</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">699</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">668</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">1,212</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <!--EndFragment--></div> </div> <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-INDENT: 0.5in"> &nbsp;</p> <table style="WIDTH: 85%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif; MARGIN-LEFT: 0.5in" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">July 31, 2014</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">October 31, 2013</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="WIDTH: 74%; TEXT-ALIGN: justify">Purchased parts and sub-assemblies</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">21,550</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">21,647</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: justify">Work-in-process</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">16,470</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">15,996</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: justify">Finished goods</td> <td style="PADDING-BOTTOM: 1pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> &nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 61,318</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> &nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 57,617</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="PADDING-BOTTOM: 2.5pt">&nbsp;</td> <td style="PADDING-BOTTOM: 2.5pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 99,338</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left">&nbsp;</td> <td style="PADDING-BOTTOM: 2.5pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 95,260</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left">&nbsp;</td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 0.5in"> &nbsp;</p> <!--EndFragment--></div> </div> <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <table style="WIDTH: 75%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif; MARGIN-LEFT: 0.75in" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="6" nowrap="nowrap">Nine months ended</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">July 31, 2014</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">July 31, 2013</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="WIDTH: 74%; TEXT-ALIGN: justify">Balance, beginning of period</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">1,778</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">1,623</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: justify">Provision for warranties during the period</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">2,825</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">2,743</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="TEXT-ALIGN: justify">Charges to the reserve</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">(2,745</td> <td style="TEXT-ALIGN: left">)</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">(2,705</td> <td style="TEXT-ALIGN: left">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: justify">Impact of foreign currency translation</td> <td style="PADDING-BOTTOM: 1pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> &nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> (9</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">)</td> <td style="PADDING-BOTTOM: 1pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> &nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> (11</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: justify">Balance, end of period</td> <td style="PADDING-BOTTOM: 2.5pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 1,849</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left">&nbsp;</td> <td style="PADDING-BOTTOM: 2.5pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 1,650</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left">&nbsp;</td> </tr> </table> <p style="TEXT-ALIGN: left; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <!--EndFragment--></div> </div> <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <table style="WIDTH: 60%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif; MARGIN-LEFT: 0.75in" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="WIDTH: 77%; TEXT-ALIGN: left">Current assets</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 20%; TEXT-ALIGN: right">6,723</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left">Property plant and equipment</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">933</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td>Intangibles</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">1,437</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="PADDING-BOTTOM: 1pt">Goodwill</td> <td style="PADDING-BOTTOM: 1pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> &nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 2,477</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="TEXT-ALIGN: left; PADDING-LEFT: 9pt">Total assets</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">11,570</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="TEXT-ALIGN: left">Current liabilities</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">4,821</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left">Short term debt</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">4,643</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="PADDING-BOTTOM: 1pt">Non-current liabilities</td> <td style="PADDING-BOTTOM: 1pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> &nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 1,726</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left; PADDING-LEFT: 9pt"> Total Liabilities</td> <td style="PADDING-BOTTOM: 1pt">&nbsp;</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">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: left">Cash expended, net of cash acquired</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">380</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">Indebtedness assumed</td> <td style="PADDING-BOTTOM: 1pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> &nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 4,643</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="PADDING-BOTTOM: 2.5pt; PADDING-LEFT: 9pt">Total purchase price</td> <td style="PADDING-BOTTOM: 2.5pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 5,023</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left">&nbsp;</td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <!--EndFragment--></div> </div> <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <table style="WIDTH: 85%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0" align="center"> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="2" nowrap="nowrap"> Number&nbsp;of</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="2" nowrap="nowrap"> Grant&nbsp; Date</td> <td nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Shares</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Fair&nbsp;Value</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="WIDTH: 74%">Unvested at October 31, 2013</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">68,456</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">23.01</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td>Shares granted</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">57,421</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">24.90</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td>Shares vested</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">(23,520</td> <td style="TEXT-ALIGN: left">)</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">(24.42</td> <td style="TEXT-ALIGN: left">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td>Shares cancelled</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">(13,609</td> <td style="TEXT-ALIGN: left">)</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">(23.64</td> <td style="TEXT-ALIGN: left">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="PADDING-BOTTOM: 1pt">Shares withheld</td> <td style="PADDING-BOTTOM: 1pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> &nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> (7,710</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">)</td> <td style="PADDING-BOTTOM: 1pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> &nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> (23.10</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">Unvested at July 31, 2014</td> <td style="PADDING-BOTTOM: 2.5pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> &nbsp;</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 81,038</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left">&nbsp;</td> <td style="PADDING-BOTTOM: 2.5pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 23.83</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left">&nbsp;</td> </tr> </table> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-INDENT: 0.5in"> &nbsp;</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"> &nbsp;</p> <table style="WIDTH: 70%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif; MARGIN-LEFT: 0.75in" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td colspan="2" nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="2" nowrap="nowrap"> Weighted<br /> Average</td> <td nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="2" nowrap="nowrap"> Stock</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="2" nowrap="nowrap"> Exercise</td> <td nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Options</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Price</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2">&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2">&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="WIDTH: 58%; TEXT-ALIGN: justify">Outstanding at October 31, 2013</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> <td style="WIDTH: 18%; TEXT-ALIGN: right">168,712</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">$</td> <td style="WIDTH: 18%; TEXT-ALIGN: right">20.73</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="TEXT-ALIGN: justify">Options granted</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">-</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">-</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td style="TEXT-ALIGN: justify">Options exercised</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">(16,306</td> <td style="TEXT-ALIGN: left">)</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">(18.35</td> <td style="TEXT-ALIGN: left">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: justify">Options cancelled</td> <td style="PADDING-BOTTOM: 1pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> &nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> (20,217</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">)</td> <td style="PADDING-BOTTOM: 1pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> &nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> (25.59</td> <td style="PADDING-BOTTOM: 1pt; TEXT-ALIGN: left">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: justify">Outstanding at July 31, 2014</td> <td style="PADDING-BOTTOM: 2.5pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> &nbsp;</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 132,189</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left">&nbsp;</td> <td style="PADDING-BOTTOM: 2.5pt">&nbsp;</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> $</td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> 20.28</td> <td style="PADDING-BOTTOM: 2.5pt; TEXT-ALIGN: left">&nbsp;</td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</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: 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">&nbsp;</td> <td style="WIDTH: 0.25in">8.</td> <td style="TEXT-ALIGN: justify">SEGMENT INFORMATION</td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 0.5in"> &nbsp;</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> We operate in a single segment: industrial automation systems. We design and produce computerized machine tools, machine tool components, interactive computer control systems and software 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 of our subsidiary LCM are included within the industrial automation systems segment.</p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <!--EndFragment--></div> </div> 11869000 10012000 33675000 29611000 265000 238000 657000 741000 P1Y P3Y P3Y P3Y 0.25 0.75 13609 23.64 57421 11235 12182 16948 17056 24.90 81038 68456 23.83 23.01 23520 24.42 750000 1344000 105677 19.74 P4Y9M22D 20217 132189 168712 20.28 20.73 1601000 <!--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"> &nbsp;</p> <table style="WIDTH: 98%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif; MARGIN-LEFT: 0.1in" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Options already vested</td> <td nowrap="nowrap">&nbsp;</td> <td nowrap="nowrap">&nbsp;</td> <td style="TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Options currently</td> <td nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">and expected to vest</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">exercisable</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2">&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2">&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="WIDTH: 74%; TEXT-ALIGN: justify">Number of outstanding options</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">132,189</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> <td style="WIDTH: 1%">&nbsp;</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> <td style="WIDTH: 10%; TEXT-ALIGN: right">105,677</td> <td style="WIDTH: 1%; TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="TEXT-ALIGN: left">Weighted average remaining contractual life (years)</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">6.19</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">4.81</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="TEXT-ALIGN: justify">Weighted average exercise price per share</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">20.28</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">19.74</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: white"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td style="TEXT-ALIGN: right">&nbsp;</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> <tr style="VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: rgb(204,238,255)"> <td style="TEXT-ALIGN: justify">Intrinsic value of outstanding options</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">1,601,000</td> <td style="TEXT-ALIGN: left">&nbsp;</td> <td>&nbsp;</td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">1,344,000</td> <td style="TEXT-ALIGN: left">&nbsp;</td> </tr> </table> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <!--EndFragment--></div> </div> 132189 20.28 P6Y2M9D 18.35 25.59 0.00 24.92 6504880 6465054 6465054 6447210 3239000 3665000 161252000 151491000 148411000 143793000 651000 647000 647000 645000 55651000 54698000 54468000 53415000 107174000 98130000 96554000 90586000 -2224000 -1984000 -3258000 -853000 23520 6475 16306 11369 16306 11369 -2000 -1000 2000 1000 298000 303000 300000 304000 238000 27000 35000 9000 83000 66000 634000 -518000 106000 -705000 1300000 1300000 10000 6548000 6507000 6529000 6495000 6505000 6458000 6493000 6452000 xbrli:shares iso4217:USD xbrli:pure iso4217:USD xbrli:shares iso4217:EUR iso4217:TWD iso4217:GBP iso4217:CNY 0000315374 us-gaap:CashFlowHedgingMember 2014-05-01 2014-07-31 0000315374 us-gaap:AccumulatedTranslationAdjustmentMember 2014-05-01 2014-07-31 0000315374 us-gaap:NetInvestmentHedgingMember us-gaap:ForeignExchangeForwardMember us-gaap:DesignatedAsHedgingInstrumentMember 2014-05-01 2014-07-31 0000315374 hurc:IntercompanyMember us-gaap:ForeignExchangeForwardMember us-gaap:DesignatedAsHedgingInstrumentMember 2014-05-01 2014-07-31 0000315374 us-gaap:ForeignExchangeForwardMember us-gaap:NondesignatedMember hurc:OtherIncomeAndExpenseMember 2014-05-01 2014-07-31 0000315374 us-gaap:ForeignExchangeForwardMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:CostOfSalesMember 2014-05-01 2014-07-31 0000315374 2014-05-01 2014-07-31 0000315374 2014-02-13 2014-03-13 0000315374 hurc:TimeBasedMember 2013-12-10 2014-01-10 0000315374 hurc:PerformanceSharesTSRMember us-gaap:MinimumMember hurc:PerformanceBasedMember 2013-12-10 2014-01-10 0000315374 hurc:PerformanceSharesTSRMember us-gaap:MaximumMember hurc:PerformanceBasedMember 2013-12-10 2014-01-10 0000315374 hurc:PerformanceSharesTSRMember hurc:PerformanceBasedMember 2013-12-10 2014-01-10 0000315374 hurc:PerformanceSharesROICMember us-gaap:MinimumMember hurc:PerformanceBasedMember 2013-12-10 2014-01-10 0000315374 hurc:PerformanceSharesROICMember us-gaap:MaximumMember hurc:PerformanceBasedMember 2013-12-10 2014-01-10 0000315374 hurc:PerformanceSharesROICMember hurc:PerformanceBasedMember 2013-12-10 2014-01-10 0000315374 hurc:PerformanceBasedMember 2013-12-10 2014-01-10 0000315374 us-gaap:CashFlowHedgingMember 2013-11-01 2014-07-31 0000315374 us-gaap:AdditionalPaidInCapitalMember 2013-11-01 2014-07-31 0000315374 us-gaap:AccumulatedTranslationAdjustmentMember 2013-11-01 2014-07-31 0000315374 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2013-11-01 2014-07-31 0000315374 us-gaap:RevolvingCreditFacilityMember us-gaap:LondonInterbankOfferedRateLIBORMember 2013-11-01 2014-07-31 0000315374 us-gaap:RevolvingCreditFacilityMember hurc:FederalFundsRateMember 2013-11-01 2014-07-31 0000315374 us-gaap:RevolvingCreditFacilityMember country:TW 2013-11-01 2014-07-31 0000315374 us-gaap:RevolvingCreditFacilityMember 2013-11-01 2014-07-31 0000315374 us-gaap:RetainedEarningsMember 2013-11-01 2014-07-31 0000315374 us-gaap:NetInvestmentHedgingMember us-gaap:ForeignExchangeForwardMember us-gaap:DesignatedAsHedgingInstrumentMember 2013-11-01 2014-07-31 0000315374 us-gaap:MinimumMember 2013-11-01 2014-07-31 0000315374 us-gaap:MaximumMember 2013-11-01 2014-07-31 0000315374 hurc:PeriodTwoMember 2013-11-01 2014-07-31 0000315374 hurc:PeriodOneMember 2013-11-01 2014-07-31 0000315374 hurc:IntercompanyMember us-gaap:ForeignExchangeForwardMember us-gaap:DesignatedAsHedgingInstrumentMember 2013-11-01 2014-07-31 0000315374 us-gaap:ForwardContractsMember us-gaap:NondesignatedMember us-gaap:MinimumMember 2013-11-01 2014-07-31 0000315374 us-gaap:ForwardContractsMember us-gaap:NondesignatedMember us-gaap:MaximumMember 2013-11-01 2014-07-31 0000315374 us-gaap:ForwardContractsMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:MinimumMember 2013-11-01 2014-07-31 0000315374 us-gaap:ForwardContractsMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:MaximumMember 2013-11-01 2014-07-31 0000315374 us-gaap:ForwardContractsMember us-gaap:DesignatedAsHedgingInstrumentMember 2013-11-01 2014-07-31 0000315374 us-gaap:ForeignExchangeForwardMember us-gaap:NondesignatedMember hurc:OtherIncomeAndExpenseMember 2013-11-01 2014-07-31 0000315374 us-gaap:ForeignExchangeForwardMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:CostOfSalesMember 2013-11-01 2014-07-31 0000315374 us-gaap:CommonStockMember 2013-11-01 2014-07-31 0000315374 2013-11-01 2014-07-31 0000315374 us-gaap:TrademarksAndTradeNamesMember 2013-06-01 2013-07-01 0000315374 us-gaap:TechnologyBasedIntangibleAssetsMember 2013-06-01 2013-07-01 0000315374 us-gaap:CustomerRelationshipsMember 2013-06-01 2013-07-01 0000315374 2013-06-01 2013-07-01 0000315374 us-gaap:NetInvestmentHedgingMember us-gaap:ForeignExchangeForwardMember us-gaap:DesignatedAsHedgingInstrumentMember 2013-05-01 2013-07-31 0000315374 hurc:IntercompanyMember us-gaap:ForeignExchangeForwardMember us-gaap:DesignatedAsHedgingInstrumentMember 2013-05-01 2013-07-31 0000315374 us-gaap:ForeignExchangeForwardMember us-gaap:NondesignatedMember hurc:OtherIncomeAndExpenseMember 2013-05-01 2013-07-31 0000315374 us-gaap:ForeignExchangeForwardMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:CostOfSalesMember 2013-05-01 2013-07-31 0000315374 2013-05-01 2013-07-31 0000315374 us-gaap:AdditionalPaidInCapitalMember 2012-11-01 2013-07-31 0000315374 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2012-11-01 2013-07-31 0000315374 us-gaap:RetainedEarningsMember 2012-11-01 2013-07-31 0000315374 us-gaap:NetInvestmentHedgingMember us-gaap:ForeignExchangeForwardMember us-gaap:DesignatedAsHedgingInstrumentMember 2012-11-01 2013-07-31 0000315374 hurc:IntercompanyMember us-gaap:ForeignExchangeForwardMember us-gaap:DesignatedAsHedgingInstrumentMember 2012-11-01 2013-07-31 0000315374 us-gaap:ForeignExchangeForwardMember us-gaap:NondesignatedMember hurc:OtherIncomeAndExpenseMember 2012-11-01 2013-07-31 0000315374 us-gaap:ForeignExchangeForwardMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:CostOfSalesMember 2012-11-01 2013-07-31 0000315374 us-gaap:CommonStockMember 2012-11-01 2013-07-31 0000315374 2012-11-01 2013-07-31 0000315374 2014-09-02 0000315374 us-gaap:CashFlowHedgingMember 2014-07-31 0000315374 us-gaap:AdditionalPaidInCapitalMember 2014-07-31 0000315374 us-gaap:AccumulatedTranslationAdjustmentMember 2014-07-31 0000315374 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2014-07-31 0000315374 us-gaap:RevolvingCreditFacilityMember country:TW 2014-07-31 0000315374 us-gaap:RevolvingCreditFacilityMember country:GB 2014-07-31 0000315374 us-gaap:RevolvingCreditFacilityMember country:DE 2014-07-31 0000315374 us-gaap:RevolvingCreditFacilityMember country:CN 2014-07-31 0000315374 us-gaap:RevolvingCreditFacilityMember 2014-07-31 0000315374 us-gaap:RetainedEarningsMember 2014-07-31 0000315374 us-gaap:ForwardContractsMember us-gaap:NondesignatedMember 2014-07-31 0000315374 us-gaap:ForwardContractsMember us-gaap:DesignatedAsHedgingInstrumentMember 2014-07-31 0000315374 us-gaap:ForeignExchangeForwardMember us-gaap:NondesignatedMember 2014-07-31 0000315374 us-gaap:ForeignExchangeForwardMember us-gaap:DesignatedAsHedgingInstrumentMember 2014-07-31 0000315374 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2014-07-31 0000315374 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2014-07-31 0000315374 currency:TWD us-gaap:DesignatedAsHedgingInstrumentMember 2014-07-31 0000315374 currency:GBP us-gaap:DesignatedAsHedgingInstrumentMember 2014-07-31 0000315374 currency:EUR us-gaap:DesignatedAsHedgingInstrumentMember 2014-07-31 0000315374 us-gaap:CommonStockMember 2014-07-31 0000315374 2014-07-31 0000315374 us-gaap:RevolvingCreditFacilityMember 2014-06-05 0000315374 us-gaap:RevolvingCreditFacilityMember 2014-06-04 0000315374 us-gaap:LetterOfCreditMember 2014-05-09 0000315374 us-gaap:LetterOfCreditMember 2014-05-08 0000315374 us-gaap:CashFlowHedgingMember 2014-04-30 0000315374 us-gaap:AccumulatedTranslationAdjustmentMember 2014-04-30 0000315374 2014-04-30 0000315374 2014-03-13 0000315374 us-gaap:CashFlowHedgingMember 2013-10-31 0000315374 us-gaap:AdditionalPaidInCapitalMember 2013-10-31 0000315374 us-gaap:AccumulatedTranslationAdjustmentMember 2013-10-31 0000315374 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2013-10-31 0000315374 us-gaap:RevolvingCreditFacilityMember country:CN 2013-10-31 0000315374 us-gaap:RetainedEarningsMember 2013-10-31 0000315374 us-gaap:ForeignExchangeForwardMember us-gaap:NondesignatedMember 2013-10-31 0000315374 us-gaap:ForeignExchangeForwardMember us-gaap:DesignatedAsHedgingInstrumentMember 2013-10-31 0000315374 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2013-10-31 0000315374 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2013-10-31 0000315374 us-gaap:CommonStockMember 2013-10-31 0000315374 2013-10-31 0000315374 us-gaap:AdditionalPaidInCapitalMember 2013-07-31 0000315374 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2013-07-31 0000315374 us-gaap:RetainedEarningsMember 2013-07-31 0000315374 us-gaap:CommonStockMember 2013-07-31 0000315374 2013-07-31 0000315374 us-gaap:TrademarksAndTradeNamesMember 2013-07-01 0000315374 us-gaap:TechnologyBasedIntangibleAssetsMember 2013-07-01 0000315374 us-gaap:CustomerRelationshipsMember 2013-07-01 0000315374 2013-07-01 0000315374 2013-04-30 0000315374 us-gaap:AdditionalPaidInCapitalMember 2012-10-31 0000315374 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2012-10-31 0000315374 us-gaap:RetainedEarningsMember 2012-10-31 0000315374 us-gaap:CommonStockMember 2012-10-31 0000315374 2012-10-31