XML 34 R18.htm IDEA: XBRL DOCUMENT v3.20.4
RELATED PARTY TRANSACTIONS
12 Months Ended
Oct. 31, 2020
RELATED PARTY TRANSACTIONS  
RELATED PARTY TRANSACTIONS

10.     RELATED PARTY TRANSACTIONS

As of October 31, 2020, we owned approximately 35% of the outstanding shares of a Taiwanese–based contract manufacturer, Hurco Automation, Ltd. (“HAL”). HAL’s scope of activities includes the design, manufacture, sales, and distribution of industrial automation products, software systems, and related components, including control systems and components produced under contract for sale exclusively to us. We are accounting for this investment using the equity method. The investment of $4.4 million and $4.2 million at October 31, 2020 and 2019, respectively, is included in Investments and other assets, net on the Consolidated Balance Sheets. Purchases of controls from HAL amounted to $6.2 million, $8.5 million, and $11.3 million in fiscal 2020, 2019 and 2018, respectively. Sales of control component parts to HAL were $265,000, $198,000 and $197,000 for the fiscal years ended October 31, 2020, 2019, and 2018, respectively. Trade payables to HAL were $1.3 million and $938,000 at October 31, 2020 and 2019, respectively. Trade receivables from HAL were $25,000 and $22,000 at October 31, 2020 and 2019, respectively.

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

    

2020

    

2019

    

2018

Net Sales

$

10,096

  

$

15,957

$

17,841

Gross Profit

 

1,418

 

2,322

 

2,944

Operating Income

 

160

 

992

 

1,534

Net Income

 

265

 

1,490

 

1,845

 

  

 

  

 

  

Current Assets

$

12,436

  

$

12,019

$

12,870

Non–current Assets

 

6,152

 

5,560

 

4,579

Current Liabilities

 

3,708

 

3,674

 

4,666