SELECTED FINANCIAL STATEMENT INFORMATION

Accounts Receivable



(in thousands)	January 31, 2015			October 31, 2014
Accounts receivable		$155,315			$151,812
Less: Allowance for doubtful accounts	(2,449		)	(2,143		)
Accounts receivable, net		$152,866			$149,669

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



(in thousands)	January 31, 2015			October 31, 2014
Costs incurred on uncompleted contracts		$17,505			$24,437
Estimated earnings	11,652			11,747
	29,157			36,184
Less: Billings to date	(29,237		)	(29,829		)
		($80	)		$6,355
Included in the accompanying Condensed Consolidated Balance Sheets under the following captions:
Accounts receivable, net (costs and estimated earnings in excess of billings)		$7,602			$8,161
Accrued expenses and other current liabilities (billings in excess of costs and estimated earnings)	(7,682		)	(1,806		)
		($80	)		$6,355

Changes in estimates pertaining to percentage-of-completion contracts did not have a material effect on net income from consolidated operations for the three months ended January 31, 2015 and 2014.

Inventories



(in thousands)	January 31, 2015			October 31, 2014
Finished products		$110,865			$106,229
Work in process	28,648			30,056
Materials, parts, assemblies and supplies	86,102			79,163
Contracts in process	2,453			2,594
Less: Billings to date	(98		)	—
Inventories, net of valuation reserves		$227,970			$218,042

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 liabilities.

Property, Plant and Equipment



(in thousands)	January 31, 2015			October 31, 2014
Land		$4,716			$4,501
Buildings and improvements	66,445			60,332
Machinery, equipment and tooling	146,140			139,963
Construction in progress	8,056			6,905
	225,357			211,701
Less: Accumulated depreciation and amortization	(121,134		)	(117,836		)
Property, plant and equipment, net		$104,223			$93,865

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 $11.4 million and $10.9 million as of January 31, 2015 and October 31, 2014, respectively. The total customer rebates and credits deducted within net sales for the three months ended January 31, 2015 and 2014 was $1.6 million and $1.7 million, respectively.

Employee Retirement Plan

The components of net pension income for the three months ended January 31, 2015 and 2014 that were recorded within the Company's Condensed Consolidated Statements of Operations are as follows (in thousands):



	Three months ended January 31,
	2015		2014
Expected return on plan assets		$185		$185
Interest cost	140		153
Net pension income		$45		$32

Research and Development Expenses

The amount of new product research and development ("R&D") expenses included in cost of sales for the three months ended January 31, 2015 and 2014 is as follows (in thousands):



	Three months ended January 31,
	2015		2014
R&D expenses		$9,302		$9,116

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 (inclusive of the fiscal 2015 transactions described below) that the Company could be required to pay at varying dates through fiscal 2023 is as follows (in thousands):



	January 31, 2015		October 31, 2014
Redeemable at fair value		$52,109		$27,666
Redeemable based on a multiple of future earnings	12,300		12,300
Redeemable noncontrolling interests		$64,409		$39,966

As discussed in Note 2, Acquisitions, the Company, through the FSG, acquired interests of 80% and 80.1% in Aeroworks and Harter, respectively, in January 2015. As part of the Aeroworks purchase agreement, the Company has the right to purchase the noncontrolling interest over a four-year period beginning in fiscal 2019, or sooner under certain conditions, and the noncontrolling interest holder has the right to cause the Company to purchase the same equity interest over the same period. As part of the Harter purchase agreement, the Company has the right to purchase the noncontrolling interests over a four-year period beginning in fiscal 2020, or sooner under certain conditions, and the noncontrolling interest holders have the right to cause the Company to purchase the same equity interests over the same period.

Accumulated Other Comprehensive Loss

Changes in the components of accumulated other comprehensive loss for the three months ended January 31, 2015 are as follows (in thousands):



	Foreign Currency Translation			Pension Benefit Obligation		Accumulated Other Comprehensive Loss
Balances as of October 31, 2014		($8,348	)		$59		($8,289	)
Unrealized loss, net	(10,943		)	—		(10,943		)
Balances as of January 31, 2015		($19,291	)		$59		($19,232	)