SELECTED FINANCIAL STATEMENT INFORMATION

Accounts Receivable



(in thousands)	July 31, 2014			October 31, 2013
Accounts receivable		$151,504			$160,118
Less: Allowance for doubtful accounts	(2,344		)	(3,096		)
Accounts receivable, net		$149,160			$157,022

Costs and Estimated Earnings on Uncompleted Percentage-of-Completion Contracts



(in thousands)	July 31, 2014			October 31, 2013
Costs incurred on uncompleted contracts		$28,198			$22,548
Estimated earnings	14,605			25,391
	42,803			47,939
Less: Billings to date	(37,305		)	(40,676		)
		$5,498			$7,263
Included in the accompanying Condensed Consolidated Balance Sheets under the following captions:
Accounts receivable, net (costs and estimated earnings in excess of billings)		$7,469			$9,540
Accrued expenses and other current liabilities (billings in excess of costs and estimated earnings)	(1,971		)	(2,277		)
		$5,498			$7,263

Changes in estimates pertaining to percentage-of-completion contracts did not have a material effect on net income from consolidated operations for the nine and three months ended July 31, 2014 and 2013.

Inventories



(in thousands)	July 31, 2014		October 31, 2013
Finished products		$108,072		$103,234
Work in process	29,057		26,810
Materials, parts, assemblies and supplies	80,135		79,863
Contracts in process	3,865		9,941
Less: Billings to date	—		(955		)
Inventories, net of valuation reserves		$221,129		$218,893

Contracts in process represents accumulated capitalized costs associated with fixed price contracts for which revenue is recognized on the completed-contract method. Related progress billings and customer advances (“billings to date”) are classified as a reduction to contracts in process, if any, and any excess is included in accrued expenses and other current liabilities.

Property, Plant and Equipment



(in thousands)	July 31, 2014			October 31, 2013
Land		$4,510			$4,515
Buildings and improvements	60,547			60,105
Machinery, equipment and tooling	140,659			131,855
Construction in progress	5,843			4,932
	211,559			201,407
Less: Accumulated depreciation and amortization	(116,429		)	(103,670		)
Property, plant and equipment, net		$95,130			$97,737

Accrued Customer Rebates and Credits

The aggregate amount of accrued customer rebates and credits included within accrued expenses and other current liabilities in the accompanying Condensed Consolidated Balance Sheets was $8.8 million and $14.8 million as of July 31, 2014 and October 31, 2013, respectively. The total customer rebates and credits deducted within net sales for the nine months ended July 31, 2014 and 2013 was $5.3 million and $6.0 million, respectively. The total customer rebates and credits deducted within net sales for the three months ended July 31, 2014 and 2013 was $1.9 million and $2.5 million, respectively. The decrease in the amount of accrued customer rebates and credits since October 31, 2013 principally reflects the payments made in the second quarter of fiscal 2014.

Employee Retirement Plan

In connection with an acquisition during the third quarter of fiscal 2013, the Company assumed a frozen qualified defined benefit pension plan. The components of net pension income for the nine and three months ended July 31, 2014 and 2013 that were recorded within the Company's Condensed Consolidated Statements of Operations are as follows (in thousands):



	Nine months ended July 31,				Three months ended July 31,
	2014		2013		2014		2013
Expected return on plan assets		$555		$128		$185		$128
Interest cost	459		95		153		95
Net pension income		$96		$33		$32		$33

Research and Development Expenses

The amount of new product research and development expenses (R&D expenses) included in costs of sales for the nine and three months ended July 31, 2014 and 2013 is as follows (in thousands):



	Nine months ended July 31,				Three months ended July 31,
	2014		2013		2014		2013
R&D expenses		$28,278		$23,547		$9,862		$8,550

Redeemable Noncontrolling Interests

The holders of equity interests in certain of the Company's subsidiaries have put rights that may be exercised on varying dates causing the Company to give cash consideration to purchase their equity interests based on fair value or a formula that management intended to reasonably approximate fair value based solely on a multiple of future earnings over a measurement period. Management's estimate of the aggregate redemption amount of all put rights that the Company could be required to pay at varying dates through fiscal 2022 is as follows (in thousands):



	July 31, 2014		October 31, 2013
Redeemable at fair value		$27,969		$47,839
Redeemable based on a multiple of future earnings	10,136		11,379
Redeemable noncontrolling interests		$38,105		$59,218

The decrease in the aggregate redemption amount of put rights redeemable at fair value since the prior fiscal year end principally reflects a reclassification of the redemption amount pertaining to the equity interest in one of the Company's subsidiaries from redeemable noncontrolling interests (temporary equity) to noncontrolling interests (permanent equity) upon the expiration of the holder's put right in the second quarter of fiscal 2014.

Accumulated Other Comprehensive Income (Loss)

Changes in the components of accumulated other comprehensive income (loss) for the nine months ended July 31, 2014 are as follows (in thousands):



	Foreign Currency Translation			Pension Benefit Obligation		Accumulated Other Comprehensive Income (Loss)
Balances at October 31, 2013		($466	)		$610		$144
Unrealized loss	(2,715		)	—		(2,715		)
Balances at July 31, 2014		($3,181	)		$610		($2,571	)