XML 39 R23.htm IDEA: XBRL DOCUMENT v3.6.0.2
COMMITMENTS AND CONTINGENCIES
12 Months Ended
Oct. 31, 2016
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,
 
2017

$11,787

2018
8,577

2019
6,491

2020
6,063

2021
5,932

Thereafter
18,002

Total minimum lease commitments

$56,852



Total rent expense charged to operations for operating leases in fiscal 2016, 2015 and 2014 amounted to $14.7 million, $11.9 million and $11.2 million, respectively.

Guarantees

As of October 31, 2016, the Company has arranged for standby letters of credit aggregating $2.4 million, which are supported by its revolving credit facility. One letter of credit in the amount of $1.5 million is to satisfy the security requirement of the insurance company used by the Company for potential workers' compensation claims and the remainder pertain to performance guarantees related to customer contracts entered into by certain of the Company's subsidiaries.

Product Warranty

Changes in the Company’s product warranty liability in fiscal 2016 and 2015 are as follows (in thousands):
 
Year ended October 31,
 
2016
 
2015
Balances as of beginning of year

$3,203

 

$4,079

Accruals for warranties
3,025

 
1,215

Acquired warranty liabilities

 
35

Warranty claims settled
(2,877
)
 
(2,126
)
Balances as of end of year

$3,351

 

$3,203



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 adverse effect on the Company’s results of operations, financial position or cash flows.