COMMITMENTS AND CONTINGENCIES

12 Months Ended

Oct. 31, 2012

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

COMMITMENTS AND CONTINGENCIES

Lease Commitments

The Company leases certain property and equipment, including manufacturing facilities and office equipment under operating leases.  Some of these leases provide the Company with the option after the initial lease term either to purchase the property at the then fair market value or renew the lease at the then fair rental value.  Generally, management expects that leases will be renewed or replaced by other leases in the normal course of business.

Future minimum payments under non-cancelable operating leases for the next five fiscal years and thereafter are estimated to be as follows (in thousands):

Year ending October 31,
2013		$7,320
2014	6,477
2015	6,259
2016	5,461
2017	4,178
Thereafter	5,406
Total minimum lease commitments		$35,101

Total rent expense charged to operations for operating leases in fiscal 2012, 2011 and 2010 amounted to $7.9 million, $7.6 million and $7.0 million, respectively.

Guarantees

The Company has arranged for a standby letter of credit for $1.5 million to meet the security requirement of its insurance company for potential workers’ compensation claims, which is supported by the Company’s revolving credit facility.

Product Warranty

Changes in the Company’s product warranty liability in fiscal 2012 and 2011 are as follows (in thousands):

	Year ended October 31,
	2012			2011
Balances as of beginning of year		$2,231			$1,636
Accruals for warranties	1,621			1,693
Warranty claims settled	(1,299		)	(1,098		)
Acquired warranty liabilities	18			—
Balances as of end of year		$2,571			$2,231

Litigation

The Company is involved in various legal actions arising in the normal course of business.  Based upon the Company’s and its legal counsel’s evaluations of any claims or assessments, management is of the opinion that the outcome of these matters will not have a material effect on the Company’s results of operations, financial position or cash flows.