SELECTED FINANCIAL STATEMENT INFORMATION

6 Months Ended

Apr. 30, 2022

Selected Financial Statement Information [Abstract]

Selected Financial Statement Information [Text Block]

SELECTED FINANCIAL STATEMENT INFORMATION

Accounts Receivable

(in thousands)	April 30, 2022	October 31, 2021
Accounts receivable	$282,088	$255,793
Less: Allowance for doubtful accounts	(12,238)	(10,874)
Accounts receivable, net	$269,850	$244,919

Inventories

(in thousands)	April 30, 2022	October 31, 2021
Finished products	$260,130	$238,867
Work in process	48,798	44,887
Materials, parts, assemblies and supplies	210,570	194,296
Inventories, net of valuation reserves	$519,498	$478,050

Property, Plant and Equipment

(in thousands)	April 30, 2022	October 31, 2021
Land	$11,065	$11,363
Buildings and improvements	134,970	134,150
Machinery, equipment and tooling	301,558	297,297
Construction in progress	12,940	7,784
	460,533	450,594
Less: Accumulated depreciation and amortization	(266,975)	(256,956)
Property, plant and equipment, net	$193,558	$193,638

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 $15.9 million as of April 30, 2022 and $13.2 million as of October 31, 2021. The total customer rebates and credits deducted within net sales for the six months ended April 30, 2022 and 2021 was $3.7 million and $1.8 million, respectively. The total customer rebates and credits deducted within net sales for the three months ended April 30, 2022 and 2021 was $2.0 million and $1.0 million, respectively.

Research and Development Expenses

The amount of new product research and development ("R&D") expenses included in cost of sales for the six and three months ended April 30, 2022 and 2021 is as follows (in thousands):

	Six months ended April 30,		Three months ended April 30,
	2022	2021	2022	2021
R&D expenses	$37,147	$34,203	$18,751	$18,022

Redeemable Noncontrolling Interests

The holders of equity interests in certain of the Company's subsidiaries have rights ("Put Rights") that may be exercised on varying dates causing the Company to purchase their equity interests through fiscal 2032. The Put Rights, all of which relate either to common shares or membership interests in limited liability companies, provide that the cash consideration to be paid for their equity interests (the "Redemption Amount") be at 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 is as follows (in thousands):

	April 30, 2022	October 31, 2021
Redeemable at fair value	$270,107	$217,416
Redeemable based on a multiple of future earnings	33,820	35,171
Redeemable noncontrolling interests	$303,927	$252,587

As discussed in Note 2, Acquisitions, the Company, through a subsidiary of HFSC, acquired 74% of the membership interests of Pioneer in March 2022. As part of the operating agreement, the noncontrolling interest holders have the right to cause the Company to purchase their membership interest over a four-year period beginning in fiscal 2029, or sooner under certain conditions, and the Company has the right to purchase the same membership interest over the same period.

During fiscal 2022, the Company sold a 3% equity interest in a subsidiary of the FSG that was acquired in fiscal 2015, which decreased the Company's ownership interest in the subsidiary to 82%. As part of the operating agreement, the noncontrolling interest holder has the right to cause the Company to purchase its equity interest over a five-year period beginning in fiscal 2028, or sooner under certain conditions, and the Company has the right to purchase the same equity interest over the same period.

During fiscal 2022, the Company sold 10% of the membership interests of a subsidiary of the FSG that was acquired in fiscal 2018, which decreased the Company's ownership interest in the subsidiary to 90%. As part of the operating agreement, the noncontrolling interest holder has the right to cause the Company to purchase its membership interest over a four-year period beginning in fiscal 2027, or sooner under certain conditions, and the Company has the right to purchase the same membership interest over the same period.

Accumulated Other Comprehensive Loss

Changes in the components of accumulated other comprehensive loss for the six months ended April 30, 2022 are as follows (in thousands):

	Foreign Currency Translation	Defined Benefit Pension Plan	Accumulated Other Comprehensive Loss
Balances as of October 31, 2021	($6,989)	($1,563)	($8,552)
Unrealized loss	(22,035)	—	(22,035)
Amortization of unrealized loss	—	33	33
Balances as of April 30, 2022	($29,024)	($1,530)	($30,554)