COMMITMENTS AND CONTINGENCIES

6 Months Ended

Apr. 30, 2012

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

12. COMMITMENTS AND CONTINGENCIES

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 for the six months ended April 30, 2012 and 2011, respectively, are as follows (in thousands):

	Six months ended April 30,
	2012			2011
Balances as of beginning of fiscal year	$	2,231		$	1,636
Accruals for warranties		779			602
Warranty claims settled		(611	)		(414	)
Balances as of April 30	$	2,399		$	1,824

Additional Contingent Purchase Consideration

As part of the agreement to acquire a subsidiary by the ETG in fiscal 2007, the Company may have been obligated to pay additional purchase consideration of up to 73 million Canadian dollars in aggregate, which translates to approximately $74 million U.S. dollars based on the April 30, 2012 exchange rate, should the subsidiary meet certain earnings objectives through June 2012. Based on the current level of earnings during the measurement period, the Company does not expect to pay any additional purchase consideration.

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.