Note 12 - Other Income (Expense) and Gain (Loss) on Early Extinguishment of Debt

12 Months Ended

Oct. 31, 2011

Other Income and Other Expense Disclosure [Text Block]

12. OTHER INCOME (EXPENSE) AND GAIN (LOSS) ON EARLY EXTINGUISHMENT OF DEBT

	Year Ended October 31,
	2011			2010			2009
	(In thousands)
Other income (expense):
Interest income	$	635		$	577		$	860
Interest expense		(2,636	)		(4,015	)		(6,047	)
Other, net		(997	)		282			731
Total other income (expense)	$	(2,998	)	$	(3,156	)	$	(4,456	)
Gain (loss) on early extinguishment of debt	$	-		$	(1,123	)	$	1,841

Interest income relates primarily to our investment in sales-type leases, notes receivable portfolio and cash on hand. Interest expense for fiscal 2011 primarily relates to interest on our Revolver. Interest expense for fiscal 2010 and 2009 primarily relates to interest on our Deutsche Bank Senior Secured Credit Facility and Term Loan. For fiscal 2011, amortization of debt issuance costs of $0.5 million related to our Revolver.  For fiscal 2010, amortization of debt issuance costs of $1.0 million related to our Deutsche Bank Senior Secured Credit Facility and for fiscal 2009, amortization of debt issue costs of $1.1 million related to Deutsche Bank Senior Secured Credit Facility and our Term Loan.  

Other, net primarily relates to foreign currency gains or losses caused by fluctuations of the U.S. dollar, the Euro and the Australian dollar. Net foreign currency loss of $0.9 million in fiscal 2011 and net foreign currency gain of $0.3 million and $0.8 million were recognized in 2010 and 2009, respectively. Our foreign subsidiaries engage in activities with us and certain customers in U.S. dollar and other foreign denominated contracts.

Loss on early extinguishment of debt for fiscal 2010 consisted of debt issuance costs of $1.1 million related to Deutsche Bank Senior Secured Credit Facility were charged off when the underlying facility was terminated.

Gain on early extinguishment of debt for fiscal 2009 related to agreements entered into with PGIC/IGT of $1.8 million and the gain realized from the early extinguishment of our Notes of $0.04 million. We wrote-off the net book value of approximately $0.2 million related to the covenants not to compete between us and PGIC. In addition, the prepaid royalty related to the Software Distribution License Agreement was re-characterized as a lifetime license to be amortized over a 10 year life. The acquired SMI Patents were fair valued at $0.5 million.  The remaining discounted minimum consideration due under the Purchase Agreement of approximately $2.2 million was relieved resulting in a net gain on early extinguishment of $1.8 million.