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Document and Entity Information - USD ($) $ in Billions	12 Months Ended
Document and Entity Information - USD ($) $ in Billions	Oct. 31, 2014	Dec. 12, 2014	May 02, 2014
Document and Entity Information
Entity Registrant Name	TORO CO
Entity Central Index Key	0000737758
Document Type	10-K
Document Period End Date	Oct. 31, 2014
Amendment Flag	false
Current Fiscal Year End Date	--10-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 3.6
Entity Common Stock, Shares Outstanding		55,758,612
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	FY

CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Oct. 31, 2014	Oct. 31, 2013	Oct. 31, 2012
Consolidated Statements of Earnings
Net sales	$ 2,172,691	$ 2,041,431	$ 1,958,690
Cost of sales	1,399,420	1,316,634	1,285,596
Gross profit	773,271	724,797	673,094
Selling, general, and administrative expense	510,114	494,135	467,481
Operating earnings	263,157	230,662	205,613
Interest expense	(15,426)	(16,210)	(16,906)
Other income, net	8,714	12,261	7,555
Earnings before income taxes	256,445	226,713	196,262
Provision for income taxes	82,575	71,868	66,721
Net earnings	$ 173,870	$ 154,845	$ 129,541
Basic net earnings per share of common stock (in dollars per share)	$ 3.09	$ 2.67	$ 2.18
Diluted net earnings per share of common stock (in dollars per share)	$ 3.02	$ 2.62	$ 2.14
Weighted-average number of shares of common stock outstanding - Basic (in shares)	56,359	57,922	59,446
Weighted-average number of shares of common stock outstanding - Diluted (in shares)	57,628	59,105	60,618

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2014	Oct. 31, 2013	Oct. 31, 2012
Consolidated Statements of Comprehensive Income
Net earnings	$ 173,870	$ 154,845	$ 129,541
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments, net of tax of $(34), $247, and $0, respectively	(4,758)	(2,342)	(2,532)
Pension and retiree medical benefits, net of tax of $10, $904, and $279, respectively	(1,583)	645	(528)
Derivative instruments, net of tax of $2,350, $(261), and $(239), respectively	3,206	(899)	(88)
Other comprehensive (loss), net	(3,135)	(2,596)	(3,148)
Comprehensive income	$ 170,735	$ 152,249	$ 126,393

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2014	Oct. 31, 2013	Oct. 31, 2012
Consolidated Statements of Comprehensive Income
Foreign currency translation adjustments, tax	$ (34)	$ 247	$ 0
Pension and retiree medical benefits, tax	10	904	279
Derivative instruments, tax	$ 2,350	$ (261)	$ (239)

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Oct. 31, 2014	Oct. 31, 2013
ASSETS
Cash and cash equivalents	$ 314,873	$ 182,993
Receivables, net:
Customers (net of $1,481 and $3,035, respectively, for allowance for doubtful accounts)	151,479	147,475
Other	6,679	9,696
Total receivables, net	158,158	157,171
Inventories, net	274,603	240,089
Prepaid expenses and other current assets	33,580	33,258
Deferred income taxes	42,822	39,756
Total current assets	824,036	653,267
Property, plant, and equipment, net	205,195	185,096
Long-term deferred income taxes	26,075	25,981
Goodwill	91,851	91,914
Other intangible assets, net	23,829	28,308
Other assets	21,429	18,182
Total assets	1,192,415	1,002,748
LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of long-term debt	6,640
Short-term debt	20,818
Accounts payable	124,271	136,158
Accrued liabilities:
Warranty	71,080	72,177
Advertising and marketing programs	66,169	64,191
Compensation and benefit costs	59,724	53,500
Insurance	6,960	18,184
Income taxes	4,699	1,938
Other	40,059	42,697
Total current liabilities	400,420	388,845
Long-term debt, less current portion	347,316	223,544
Deferred revenue	10,947	10,899
Deferred income taxes		5,969
Other long-term liabilities	25,005	14,753
Stockholders' equity:
Preferred stock, par value $1.00 per share, authorized 1,000,000 voting and 850,000 non-voting shares, none issued and outstanding
Common stock, par value $1.00, authorized 175,000,000 shares; issued and outstanding 55,678,419 shares as of October 31, 2014 and 56,788,723 shares as of October 31, 2013	55,678	56,789
Retained earnings	368,754	314,519
Accumulated other comprehensive loss	(15,705)	(12,570)
Total stockholders' equity	408,727	358,738
Total liabilities and stockholders' equity	$ 1,192,415	$ 1,002,748

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Oct. 31, 2014	Oct. 31, 2013
Consolidated Balance Sheets
Customers, allowance for doubtful accounts (in dollars)	$ 1,481	$ 3,035
Preferred stock, par value (in dollars per share)	$ 1.00	$ 1.00
Preferred stock, authorized voting shares	1,000,000	1,000,000
Preferred stock, authorized non-voting shares	850,000	850,000
Preferred stock, issued voting shares	0	0
Preferred stock, issued non-voting shares	0	0
Preferred stock, outstanding voting shares	0	0
Common stock, par value (in dollars per share)	$ 1.00	$ 1.00
Common stock, authorized shares	175,000,000	175,000,000
Common stock, issued shares	55,678,419	56,788,723
Common stock, outstanding shares	55,678,419	56,788,723

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2014	Oct. 31, 2013	Oct. 31, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$ 173,870	$ 154,845	$ 129,541
Adjustments to reconcile net earnings to net cash provided by operating activities:
Provision for depreciation, amortization, and impairment losses	53,138	54,134	53,634
Noncash income from finance affiliate	(7,262)	(7,097)	(5,996)
(Increase) decrease in deferred income taxes	(4,700)	149	(206)
Stock-based compensation expense	11,291	10,237	9,503
Other	28	10	(132)
Changes in operating assets and liabilities, net of effect of acquisitions:
Receivables, net	(5,042)	(11,912)	(495)
Inventories, net	(37,183)	9,373	(21,973)
Prepaid expenses and other assets	(3,245)	(6,825)	(6,741)
Accounts payable, accrued liabilities, deferred revenue, and other long-term liabilities	1,470	18,962	28,663
Net cash provided by operating activities	182,365	221,876	185,798
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant, and equipment	(71,138)	(49,427)	(43,242)
Proceeds from asset disposals	479	413	491
Distributions from finance affiliate, net	5,672	6,342	5,091
Acquisitions, net of cash acquired	(715)	(2,101)	(9,663)
Net cash used in investing activities	(65,702)	(44,773)	(47,323)
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in (repayments) of short-term debt	19,498	(415)	(922)
Increase in (repayments) of long-term debt	129,557	(1,739)	(1,858)
Excess tax benefits from stock-based awards	8,857	6,134	9,017
Proceeds from exercise of stock options	7,192	9,808	20,347
Purchases of Toro common stock	(103,039)	(99,587)	(93,395)
Dividends paid on Toro common stock	(45,048)	(32,499)	(26,230)
Net cash provided by (used in) financing activities	17,017	(118,298)	(93,041)
Effect of exchange rates on cash and cash equivalents	(1,800)	(1,668)	(464)
Net increase in cash and cash equivalents	131,880	57,137	44,970
Cash and cash equivalents as of the beginning of the fiscal year	182,993	125,856	80,886
Cash and cash equivalents as of the end of the fiscal year	314,873	182,993	125,856
Cash paid during the fiscal year for:
Interest	16,925	17,054	17,147
Income taxes	76,325	76,186	58,709
Shares issued in connection with stock-based compensation plans	6,619	6,629	2,986
Payment obligations issued in connection with acquisitions	$ 420	$ 1,395	$ 100

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Retained Earnings	Accumulated Other Comprehensive Loss	Total
Balance at Oct. 31, 2011	$ 59,206	$ 214,387	$ (6,826)	$ 266,767
Increase (Decrease) in Stockholders' Equity
Cash dividends paid on common stock - $0.80, 0.56, and $0.44 per share during 2014, 2013, and 2012, respectively		(26,230)		(26,230)
Issuance of 532,692, 669,426, and 1,664,835 shares under stock-based compensation plans during 2014, 2013, and 2012, respectively	1,665	27,930		29,595
Contribution of stock to a deferred compensation trust		255		255
Purchase of 1,644,230, 2,147,185, and 2,604,525 shares of common stock during 2014, 2013, and 2012, respectively	(2,605)	(90,790)		(93,395)
Excess tax benefits from stock-based awards		9,017		9,017
Other comprehensive loss			(3,148)	(3,148)
Net earnings		129,541		129,541
Balance at Oct. 31, 2012	58,266	264,110	(9,974)	312,402
Increase (Decrease) in Stockholders' Equity
Cash dividends paid on common stock - $0.80, 0.56, and $0.44 per share during 2014, 2013, and 2012, respectively		(32,499)		(32,499)
Issuance of 532,692, 669,426, and 1,664,835 shares under stock-based compensation plans during 2014, 2013, and 2012, respectively	670	17,904		18,574
Contribution of stock to a deferred compensation trust		1,466		1,466
Purchase of 1,644,230, 2,147,185, and 2,604,525 shares of common stock during 2014, 2013, and 2012, respectively	(2,147)	(97,441)		(99,588)
Excess tax benefits from stock-based awards		6,134		6,134
Other comprehensive loss			(2,596)	(2,596)
Net earnings		154,845		154,845
Balance at Oct. 31, 2013	56,789	314,519	(12,570)	358,738
Increase (Decrease) in Stockholders' Equity
Cash dividends paid on common stock - $0.80, 0.56, and $0.44 per share during 2014, 2013, and 2012, respectively		(45,048)		(45,048)
Issuance of 532,692, 669,426, and 1,664,835 shares under stock-based compensation plans during 2014, 2013, and 2012, respectively	533	16,270		16,803
Contribution of stock to a deferred compensation trust		1,681		1,681
Purchase of 1,644,230, 2,147,185, and 2,604,525 shares of common stock during 2014, 2013, and 2012, respectively	(1,644)	(101,395)		(103,039)
Excess tax benefits from stock-based awards		8,857		8,857
Other comprehensive loss			(3,135)	(3,135)
Net earnings		173,870		173,870
Balance at Oct. 31, 2014	$ 55,678	$ 368,754	$ (15,705)	$ 408,727

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Oct. 31, 2014	Oct. 31, 2013	Oct. 31, 2012
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
Cash dividends paid on common stock (in dollars per share)	$ 0.80	$ 0.56	$ 0.44
Issuance of shares under stock-based compensation plans (in shares)	532,692	669,426	1,664,835
Purchase of shares of common stock (in shares)	1,644,230	2,147,185	2,604,525

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RELATED DATA

12 Months Ended

Oct. 31, 2014

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RELATED DATA

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RELATED DATA

Basis of Presentation and Consolidation

The accompanying consolidated financial statements include the accounts of the company and its wholly owned subsidiaries. The company uses the equity method to account for investments over which it has the ability to exercise significant influence over operating and financial policies. Consolidated net earnings include the company's share of the net earnings (losses) of these companies. The cost method is used to account for investments in companies that the company does not control and for which it does not have the ability to exercise significant influence over operating and financial policies. These investments are recorded at cost. All intercompany accounts and transactions have been eliminated from the consolidated financial statements.

Accounting Estimates

In preparing the consolidated financial statements in conformity with United States ("U.S.") generally accepted accounting principles ("GAAP"), management must make decisions that impact the reported amounts of assets, liabilities, revenues, expenses, and the related disclosures, including disclosures of contingent assets and liabilities. Such decisions include the selection of the appropriate accounting principles to be applied and the assumptions on which to base accounting estimates. Estimates are used in determining, among other items, sales promotions and incentives accruals, incentive compensation accruals, inventory valuation, warranty reserves, earnout liabilities, allowance for doubtful accounts, pension and postretirement accruals, self-insurance accruals, useful lives for tangible and intangible assets, and future cash flows associated with impairment testing for goodwill and other long-lived assets. These estimates and assumptions are based on management's best estimates and judgments at the time they are made. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors that management believes to be reasonable under the circumstances, including the current economic environment. Management adjusts such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with certainty, actual amounts could differ significantly from those estimated at the time the consolidated financial statements are prepared. Changes in those estimates will be reflected in the consolidated financial statements in future periods.

Cash and Cash Equivalents

The company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents and are stated at cost, which approximates fair value. As of October 31, 2014, cash and short-term investments held by the company's foreign subsidiaries that are not available to fund domestic operations unless repatriated were $56,418.

Receivables

The company's financial exposure to collection of accounts receivable is reduced due to its Red Iron Acceptance, LLC ("Red Iron") joint venture with TCF Inventory Finance, Inc. ("TCFIF"), as further discussed in Note 3. For receivables not serviced through Red Iron, the company grants credit to customers in the normal course of business and performs on-going credit evaluations of customers. Receivables are recorded at original carrying amount less reserves for estimated uncollectible accounts, as described below.

Allowance for Doubtful Accounts

The company estimates the balance of allowance for doubtful accounts by analyzing the age of accounts and notes receivable balances and applying historical write-off trend rates. The company also estimates separately specific customer balances when it is deemed probable that the balance is uncollectible. Account balances are charged off against the allowance when all collection efforts have been exhausted.

Inventory Valuations

Inventories are valued at the lower of cost or net realizable value, with cost determined by the last-in, first-out ("LIFO") method for a majority of the company's inventories. The first-in, first-out ("FIFO") method is used for all other inventories, constituting 28 and 33 percent of total inventories as of October 31, 2014 and 2013, respectively. The company establishes a reserve for excess, slow-moving, and obsolete inventory that is equal to the difference between the cost and estimated net realizable value for that inventory. These reserves are based on a review and comparison of current inventory levels to planned production, as well as planned and historical sales of the inventory. During fiscal 2014 and 2013, LIFO layers were reduced. This reduction resulted in charging lower inventory costs prevailing in previous years to cost of sales, thus reducing cost of sales by $65 and $122 in fiscal 2014 and 2013, respectively. During fiscal 2012, no LIFO layers were reduced.

Inventories as of October 31 were as follows:


		2014		2013

Raw materials and work in progress	$	95,144	$	87,668
Finished goods and service parts		246,954		217,796

Total FIFO value		342,098		305,464
Less: adjustment to LIFO value		67,495		65,375

Total	$	274,603	$	240,089

Property and Depreciation

Property, plant, and equipment are carried at cost. The company provides for depreciation of plant and equipment utilizing the straight-line method over the estimated useful lives of the assets. Buildings, including leasehold improvements, are generally depreciated over 10 to 45 years, and equipment over two to seven years. Tooling costs are generally depreciated over three to five years using the straight-line method. Software and web site development costs are generally amortized over two to five years utilizing the straight-line method. Expenditures for major renewals and improvements, which substantially increase the useful lives of existing assets, are capitalized, and maintenance and repairs are charged to operating expenses as incurred. Interest is capitalized during the construction period for significant capital projects. During the fiscal years ended October 31, 2014, 2013, and 2012, the company capitalized $1,710, $722, and $256 of interest, respectively.

Property, plant, and equipment as of October 31 was as follows:


		2014		2013

Land and land improvements	$	32,731	$	27,632
Buildings and leasehold improvements		156,374		133,866
Machinery and equipment		305,131		284,492
Tooling		177,704		173,039
Computer hardware and software		77,395		73,302
Construction in process		10,857		29,173

Subtotal		760,192		721,504
Less: accumulated depreciation		554,997		536,408

Total property, plant, and equipment, net	$	205,195	$	185,096

During fiscal years 2014, 2013, and 2012, the company recorded depreciation expense of $47,136, $48,207, and $46,840, respectively.

Goodwill and Indefinite-Life Intangible Assets

Goodwill represents the cost of acquisitions in excess of the fair values assigned to identifiable net assets acquired. Goodwill is assigned to reporting units based upon the expected benefit of the synergies of the acquisition. Goodwill and some trade names, which are considered to have indefinite lives, are not amortized; however, the company reviews them for impairment annually during each fourth fiscal quarter or more frequently if changes in circumstances or occurrence of events suggest the fair value may not be recoverable.

The company reviewed the fair value of its reporting units that have goodwill on their respective balance sheets and compared these fair values to the respective carrying amounts during the fourth quarter of fiscal 2014. The company determined that it has eight reporting units, which are the same as its eight operating segments. Six reporting units contain goodwill on their respective balance sheets. The company's estimate of fair value is determined based on a discounted cash flow model. Where available and as appropriate, comparable market multiples are used to corroborate the results of the discounted cash flow method. Growth rates for sales and profits are determined using inputs from the company's annual plan and long-range planning process. Management also makes estimates of discount rates, perpetuity growth assumptions, market comparables, and other factors. As of August 29, 2014, the company performed its annual impairment analysis and determined there was no impairment of goodwill for any of its reporting units as the fair values exceeded their respective carrying amounts.

As of August 29, 2014, the company also performed an assessment of its indefinite-life intangible assets, which consist of certain trade names. The company's estimate of the fair value of its trade names are based on a discounted cash flow model using inputs which included: projected revenues from the company's forecasting process; assumed royalty rates that could be payable if the company did not own the trade name; and a discount rate. Based on this analysis, which was also performed in the prior fiscal year, the company concluded its indefinite-life intangible assets were not impaired during fiscal 2014 or 2013. In fiscal 2012, the company wrote down $400 of an indefinite-life intangible asset.

Other Long-Lived Assets

Other long-lived assets include property, plant, and equipment and definite-lived intangible assets, which are identifiable assets that arose from purchase acquisitions consisting primarily of patents, non-compete agreements, customer relationships, trade names, and developed technology and are amortized on a straight-line basis over periods ranging from 1.5 to 13 years. The company reviews other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset (or asset group) may not be recoverable. An impairment loss is recognized when estimated undiscounted future cash flows from the operation or disposition of the asset group are less than the carrying amount of the asset group. Asset groups have identifiable cash flows and are largely independent of other asset groups. Measurement of an impairment loss is based on the excess of the carrying amount of the asset group over its fair value. Fair value is measured using a discounted cash flow model or independent appraisals, as appropriate. For long-lived assets to be abandoned, the company tests for potential impairment. If the company commits to a plan to abandon a long-lived asset before the end of its previously estimated useful life, depreciation estimates are revised.

For fiscal 2014 and 2013, the company did not have any impairment losses of other long-lived assets. Based on the company's impairment analysis, the company wrote down $386 of other long-lived assets during fiscal 2012. Additionally, based on the company's analysis of estimated useful lives of property, plant, and equipment, the company did not have any accelerated depreciation expense during fiscal 2014. During fiscal 2013 and 2012, the company had accelerated depreciation expense of $824 and $305, respectively.

Accounts Payable

The company has a customer-managed service agreement with a third party to provide a web-based platform that facilitates participating suppliers' ability to finance payment obligations from the company with a designated third party financial institution. Participating suppliers may, at their sole discretion, make offers to finance one or more payment obligations of the company prior to their scheduled due dates at a discounted price to a participating financial institution.

The company's obligations to its suppliers, including amounts due and scheduled payment dates, are not affected by suppliers' decisions to finance amounts under this arrangement. However, the company's right to offset balances due from suppliers against payment obligations is restricted by this arrangement for those payment obligations that have been financed by suppliers. As of October 31, 2014 and 2013, $12,296 and $16,572, respectively, of the company's outstanding payment obligations had been placed on the accounts payable tracking system.

Insurance

The company is self-insured for certain losses relating to medical, dental, and workers' compensation claims, and product liability occurrences. Specific stop loss coverages are provided for catastrophic claims in order to limit exposure to significant claims. Losses and claims are charged to operations when it is probable a loss has been incurred and the amount can be reasonably estimated. Self-insured liabilities are based on a number of factors, including historical claims experience, an estimate of claims incurred but not reported, demographic and severity factors, and utilizing valuations provided by independent third-party actuaries.

Accrued Warranties

The company provides an accrual for estimated future warranty costs at the time of sale. The company also establishes accruals for major rework campaigns. The amount of warranty accruals is based primarily on the estimated number of products under warranty, historical average costs incurred to service warranty claims, the trend in the historical ratio of claims to sales, and the historical length of time between the sale and resulting warranty claim. The company periodically assesses the adequacy of its warranty accruals based on changes in these factors and records any necessary adjustments if actual claims experience indicates that adjustments are necessary.

The changes in accrued warranties were as follows:


Fiscal years ended October 31		2014			2013

Beginning balance	$	72,177		$	69,848
Warranty provisions		41,608			41,067
Warranty claims		(38,568	)		(35,529	)
Changes in estimates		(4,137	)		(3,209	)

Ending balance	$	71,080		$	72,177

Derivatives

Derivatives, consisting mainly of forward currency contracts, are used to hedge most foreign currency transactions, including forecasted sales and purchases denominated in foreign currencies. The company also utilizes cross currency swaps to offset foreign currency intercompany loan exposures. Derivatives are recognized on the consolidated balance sheet at fair value. If the derivative is designated as a cash flow hedge, the effective portion of the change in the fair value of the derivative is recorded as a component of other comprehensive income within the consolidated statements of comprehensive income and the consolidated statements of stockholders' equity, and recognized in earnings when the hedged item affects earnings. Derivatives that do not meet the requirements for hedge accounting are adjusted to fair value through other income, net in the consolidated statements of earnings.

Foreign Currency Translation and Transactions

The functional currency of the company's foreign operations is generally the applicable local currency. The functional currency is translated into U.S. dollars for balance sheet accounts using current exchange rates in effect as of the balance sheet date and for revenue and expense accounts using a weighted-average exchange rate during the fiscal year. The translation adjustments are deferred as a component of other comprehensive income (loss) within the consolidated statements of comprehensive income and the consolidated statements of stockholders' equity. Gains or losses resulting from transactions denominated in foreign currencies are included in other income, net in the consolidated statements of earnings.

Income Taxes

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years that those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income tax expense in the period that includes the enactment date. A valuation allowance is provided when, in management's judgment, it is more likely than not that some portion or all of the deferred tax asset will not be realized. The company has reflected the necessary deferred tax assets and liabilities in the accompanying consolidated balance sheets. Management believes the future tax deductions will be realized principally through carryback to taxable income in prior years, future reversals of existing taxable temporary differences, and future taxable income.

The company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50 percent likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The company also records interest and penalties related to unrecognized tax benefits in income tax expense.

Revenue Recognition

The company recognizes revenue for product sales when persuasive evidence of an arrangement exists, title and risk of ownership passes to the customer, the sales price is fixed or determinable, and collectability is probable. These criteria are typically met at the time product is shipped, or in the case of certain agreements, when product is delivered. A provision is made at the time the related revenue is recognized for estimated product returns, floor plan costs, rebates, and other sales promotion expenses. Sales, use, value-added, and other excise taxes are not recognized in revenue. Freight revenue billed to customers is included in net sales.

The company ships some of its products to a key retailer's seasonal distribution centers on a consignment basis. The company retains title to its products stored at the seasonal distribution centers. As the company's products are removed from the seasonal distribution centers by the key retailer and shipped to the key retailer's stores, title passes from the company to the key retailer. At that time, the company invoices the key retailer and recognizes revenue for these consignment transactions. The company does not offer a right of return for products shipped to the key retailer's stores from the seasonal distribution centers. From time to time, the company also stores inventory on a consignment basis at other customers' locations. The amount of consignment inventory as of October 31, 2014 and 2013 was $22,080 and $18,283, respectively.

Revenue earned from service and maintenance contracts is recognized ratably over the contractual period. Revenue from extended warranty programs is deferred at the time the contract is sold and amortized into net sales using the straight-line method over the extended warranty period.

Sales Promotions and Incentives

At the time of sale, the company records an estimate for sales promotion and incentive costs. Examples of sales promotion and incentive programs include rebate programs on certain professional products sold to distributors, volume discounts, retail financing support, commissions, and other sales discounts and promotional programs. The estimates of sales promotion and incentive costs are based on the terms of the arrangements with customers, historical payment experience, field inventory levels, volume purchases, and expectations for changes in relevant trends in the future. The expense of each program is classified as a reduction from gross sales.

Cost of Sales

Cost of sales primarily comprises direct materials and supplies consumed in the manufacture of product, as well as manufacturing labor, depreciation expense, and direct overhead expense necessary to convert purchased materials and supplies into finished product. Cost of sales also includes inbound freight costs, outbound freight costs for shipping products to customers, obsolescence expense, cost of services provided, and cash discounts on payments to vendors.

Selling, General, and Administrative Expense

Selling, general, and administrative expense primarily comprises payroll and benefit costs, occupancy and operating costs of distribution and corporate facilities, warranty expense, depreciation and amortization expense on non-manufacturing assets, advertising and marketing expenses, selling expenses, engineering and research costs, information systems costs, incentive and profit sharing expense, and other miscellaneous administrative costs, such as legal costs for internal and outside services that are expensed as incurred.

Cost of Financing Distributor / Dealer Inventory

The company enters into limited inventory repurchase agreements with a third party financing company and Red Iron. The company has repurchased immaterial amounts of inventory under these repurchase agreements over the last three fiscal years. However, an adverse change in retail sales could cause this situation to change, and thereby require the company to repurchase a portion of financed product. See Note 13 for additional information regarding the company's repurchase arrangements.

Included as a reduction to net sales are costs associated with programs under which the company shares the expense of financing distributor and dealer inventories, referred to as floor plan expenses. This charge represents interest for a pre-established length of time based on a predefined rate from a contract with third party financing sources to finance distributor and dealer inventory purchases. These financing arrangements are used by the company as a marketing tool to assist customers to buy inventory. The financing costs for distributor and dealer inventories were $21,080, $19,729, and $19,492 for the fiscal years ended October 31, 2014, 2013, and 2012, respectively.

Advertising

General advertising expenditures are expensed the first time advertising takes place. Production costs associated with advertising are expensed in the period incurred. Cooperative advertising represents expenditures for shared advertising costs that the company reimburses to customers and is classified as a component of selling, general, and administrative expense. These obligations are accrued and expensed when the related revenues are recognized in accordance with the programs established for various product lines. Advertising costs were $43,590, $48,071, and $46,947 for the fiscal years ended October 31, 2014, 2013, and 2012, respectively.

Stock-Based Compensation

The company's stock-based compensation awards are generally granted to executive officers, other employees, and non-employee members of the company's Board of Directors, and include performance share awards that are contingent on the achievement of performance goals of the company, non-qualified stock options, restricted stock units, and restricted stock awards. Compensation expense equal to the grant date fair value is recognized for these awards over the vesting period and is classified in selling, general and administrative expense. See Note 10 for additional information regarding stock-based compensation plans.

Net Earnings Per Share

Basic net earnings per share is calculated using net earnings available to common stockholders divided by the weighted-average number of shares of common stock outstanding during the year plus the assumed issuance of contingent shares. Diluted net earnings per share is similar to basic net earnings per share except that the weighted-average number of shares of common stock outstanding plus the assumed issuance of contingent shares is increased to include the number of additional shares of common stock that would have been outstanding assuming the issuance of all potentially dilutive shares, such as common stock to be issued upon exercise of options, contingently issuable shares, and restricted common stock and units.

Reconciliations of basic and diluted weighted-average shares of common stock outstanding are as follows:

BASIC

(Shares in thousands) Fiscal years ended October 31	2014	2013	2012

Weighted-average number of shares of common stock	56,346	57,898	59,440
Assumed issuance of contingent shares	13	24	6

Weighted-average number of shares of common stock and assumed issuance of contingent shares	56,359	57,922	59,446

DILUTED

(Shares in thousands) Fiscal years ended October 31	2014	2013	2012

Weighted-average number of shares of common stock and assumed issuance of contingent shares	56,359	57,922	59,446
Effect of dilutive securities	1,269	1,183	1,172

Weighted-average number of shares of common stock, assumed issuance of contingent and restricted shares, and effect of dilutive securities	57,628	59,105	60,618

Incremental shares from options, restricted stock, and restricted stock units are computed by the treasury stock method. Options, restricted stock, and restricted stock units of 259,925, 182,868, and 33,427 during fiscal 2014, 2013, and 2012, respectively, were excluded from the computation of diluted net earnings per share because they were anti-dilutive.

Cash Flow Presentation

The consolidated statements of cash flows are prepared using the indirect method, which reconciles net earnings to cash flow from operating activities. The necessary adjustments include the removal of timing differences between the occurrence of operating receipts and payments and their recognition in net earnings. The adjustments also remove from operating activities cash flows arising from investing and financing activities, which are presented separately from operating activities. Cash flows from foreign currency transactions and operations are translated at an average exchange rate for the period. Cash paid for acquisitions is classified as investing activities.

New Accounting Pronouncements Adopted

In December 2011, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2011-11, Disclosures about Offsetting Assets and Liabilities. ASU No. 2011-11 requires entities to disclose gross and net information about both instruments and transactions eligible for offset in the statement of financial position and those subject to an agreement similar to a master netting arrangement. This would include derivatives and other financial securities arrangements. The company adopted this guidance in the first quarter of fiscal 2014, as required. The adoption of this guidance did not have an impact on the company's consolidated financial statements.

In February 2013, the FASB issued ASU No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. ASU No. 2013-02 requires entities to disclose, for items reclassified out of accumulated other comprehensive income (loss) and into net income in their entirety, the effect of the reclassification on each affected net income line item. ASU No. 2013-02 also requires a cross reference to other required U.S. GAAP disclosures for accumulated other comprehensive income (loss) reclassification items that are not reclassified in their entirety into net income. The company adopted this guidance in its fiscal 2013 fourth quarter. The adoption of this guidance did not have an impact on the company's consolidated financial statements.

ACQUISITIONS

12 Months Ended

Oct. 31, 2014

Acquisition

Acquisition

ACQUISITIONS

On November 27, 2013, during the first quarter of fiscal 2014, the company completed the acquisition of certain assets of a quality value-priced line of outdoor lighting fixtures for the landscape lighting market. The purchase price of this acquisition was $1,245, which included cash payments, issuance of a long-term note, and an estimated contingent consideration.

On September 30, 2013, during the fourth quarter of fiscal 2013, the company completed the acquisition of certain assets and assumed certain liabilities for a company in China that manufactures water-efficient drip irrigation products, sprinklers, emitters, and filters for agriculture, landscaping, and green house production. The net purchase price of this acquisition was $3,481, of which $2,101 was paid in cash in fiscal 2013 and $1,380 was paid in cash in fiscal 2014.

On April 25, 2012, during the second quarter of fiscal 2012, the company completed the acquisition of certain assets for an equipment line of concrete and mortar mixers, material handlers, compaction equipment, and other concrete power tools for the rental and specialty construction market. On February 10, 2012, also during the second quarter of fiscal 2012, the company completed the acquisition of certain assets and assumed certain liabilities for an equipment line of vibratory plows, trenchers, and horizontal directional drills for the underground utilities market. On December 9, 2011, during the first quarter of fiscal 2012, the company completed the acquisition of certain assets and assumed certain liabilities for a greens roller product line for the golf course market. The aggregate purchase price of these three acquisitions was $11,112, which included cash payments and issuance of long-term notes.

The purchase price of all of these acquisitions was allocated to the identifiable assets acquired and liabilities assumed based on estimates of their fair value, with the excess purchase price for acquisitions recorded as goodwill. Additional purchase accounting disclosures have been omitted given the immateriality of these acquisitions in relation to the company's consolidated financial condition and results of operations. See Note 5 for further details related to the acquired intangible assets.

On November 14, 2014, subsequent to the end of fiscal 2014, the company acquired substantially all of the assets (excluding accounts receivable) of the BOSS® professional snow and ice management business of privately held Northern Star Industries, Inc. Based in Iron Mountain, Michigan, BOSS designs, manufactures, and sells a broad line of snowplows, salt and sand spreaders, and related parts and accessories for light and medium duty trucks, all terrain vehicles, utility terrain vehicles, skid steers, and front-end loaders. Through this acquisition, the company added another professional contractor brand; a portfolio of counter-seasonal equipment; manufacturing and distribution facilities located in Iron Mountain, Michigan; and a distribution network for these products. Management believes that this acquisition positions the company to strengthen and grow its relationships with professional contractors, municipalities, and other customers by enabling the company to provide them with innovative, durable equipment and high-quality service they need each season.

This acquisition closed for $227,882, subject to certain post-closing adjustments, which included a cash payment of $197,882 and issuance of a long-term note of $30,000. The company funded the acquisition with cash on hand, a $130,000 term loan, and an increase in short-term debt of $20,000 under the company's recently renewed revolving credit facility. During fiscal year 2014, the company expensed $509 of acquisition related costs, which was recorded in selling, general, and administrative expense. The company also capitalized $373 of debt issuance costs in other assets related to the $130,000 term loan, which will be amortized over the term of the loan.

The purchase price of this acquisition will be accounted for as a business combination using the acquisition method, which requires that, among other things, assets acquired and liabilities assumed be recorded at their fair value as of the acquisition date using independent appraisals and other analyses. The excess of the consideration transferred over those fair values is recorded as goodwill, and the company expects the goodwill to be deductible for tax purposes. Due to the timing of the acquisition, the initial valuation and subsequent purchase accounting for this acquisition is incomplete at this time.

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
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Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
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+ Details

INVESTMENT IN JOINT VENTURE

12 Months Ended

Oct. 31, 2014

Investment in Joint Venture

Investment in Joint Venture

INVESTMENT IN JOINT VENTURE

In fiscal 2009, the company and TCFIF, a subsidiary of TCF National Bank, established Red Iron, a joint venture in the form of a Delaware limited liability company that provides inventory financing, including floor plan and open account receivable financing, to distributors and dealers of the company's products in the U.S. and select distributors of the company's products in Canada. The initial term will continue until October 31, 2017, subject to unlimited automatic two-year extensions thereafter. Either the company or TCFIF may elect not to extend the initial term or any subsequent term by giving one-year notice to the other party. Additionally, in connection with the joint venture, the company and an affiliate of TCFIF entered into an arrangement to provide inventory financing to dealers of the company's products in Canada.

The company owns 45 percent of Red Iron and TCFIF owns 55 percent of Red Iron. The company accounts for its investment in Red Iron under the equity method of accounting. Each of the company and TCFIF contributed a specified amount of the estimated cash required to enable Red Iron to purchase the company's inventory financing receivables and to provide financial support for Red Iron's inventory financing programs. Red Iron borrows the remaining requisite estimated cash utilizing a $450,000 secured revolving credit facility established under a credit agreement between Red Iron and TCFIF. The company's total investment in Red Iron as of October 31, 2014 and 2013 was $14,890 and $13,300, respectively. The company has not guaranteed the outstanding indebtedness of Red Iron. The company has agreed to repurchase products repossessed by Red Iron and the TCFIF Canadian affiliate, up to a maximum aggregate amount of $7,500 in a calendar year. In addition, the company has provided recourse to Red Iron for certain outstanding receivables, which amounted to a maximum amount of $470 and $465 as of October 31, 2014 and 2013, respectively.

Under the repurchase agreement between Red Iron and the company, Red Iron provides financing for certain dealers and distributors. These transactions are structured as an advance in the form of a payment by Red Iron to the company on behalf of a distributor or dealer with respect to invoices financed by Red Iron. These payments extinguish the obligation of the dealer or distributor to make payment to the company under the terms of the applicable invoice. Under separate agreements between Red Iron and the dealers and distributors, Red Iron provides loans to the dealers and distributors for the advances paid by Red Iron to the company. The net amount of new receivables financed for dealers and distributors under this arrangement during fiscal 2014, 2013, and 2012 was $1,280,505, $1,211,470, and $1,191,343, respectively.

Summarized financial information for Red Iron is presented as follows:


For the twelve months ended October 31		2014		2013		2012

Revenue	$	22,678	$	22,418	$	19,765
Net income		16,139		15,776		13,326


As of October 31		2014		2013

Finance receivables, net	$	290,927	$	260,319
Other assets		3,659		4,040
Total liabilities		261,527		234,804

OTHER INCOME, NET

12 Months Ended

Oct. 31, 2014

OTHER INCOME, NET

OTHER INCOME, NET

Other income (expense) is as follows:


Fiscal years ended October 31		2014			2013			2012

Interest income	$	465		$	447		$	786
Retail financing revenue		1,077			1,093			1,106
Foreign currency exchange rate loss		(1,006	)		(702	)		(1,786	)
Income from affiliates		7,262			7,097			5,996
Litigation recovery (settlements), net		127			3,071			(36	)
Miscellaneous		789			1,255			1,489

Total other income, net	$	8,714		$	12,261		$	7,555

GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Oct. 31, 2014

GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill – The changes in the net carrying amount of goodwill for fiscal 2014 and 2013 were as follows:


		Professional Segment			Residential Segment			Total

Balance as of October 31, 2012	$	80,984		$	11,016		$	92,000
Translation adjustments		(22	)		(64	)		(86	)

Balance as of October 31, 2013	$	80,962		$	10,952		$	91,914
Translation adjustments		(16	)		(47	)		(63	)

Balance as of October 31, 2014	$	80,946		$	10,905		$	91,851

Other Intangible Assets – The components of other intangible assets were as follows:


October 31, 2014	Estimated Life (Years)		Gross Carrying Amount		Accumulated Amortization			Net

Patents	1.5 - 13	$	10,711	$	(8,942	)	$	1,769
Non-compete agreements	1.5 - 10		7,039		(5,315	)		1,724
Customer-related	1.5 - 13		8,650		(5,517	)		3,133
Developed technology	1.5 - 10		28,841		(16,869	)		11,972
Trade names	1.5 - 5		1,515		(1,165	)		350
Other			800		(800	)		–

Total amortizable			57,556		(38,608	)		18,948

Non-amortizable – trade names			4,881		–			4,881

Total other intangible assets, net		$	62,437	$	(38,608	)	$	23,829


October 31, 2013	Estimated Life (Years)		Gross Carrying Amount		Accumulated Amortization			Net

Patents	1.5 - 13	$	10,213	$	(8,537	)	$	1,676
Non-compete agreements	1.5 - 10		6,849		(4,488	)		2,361
Customer-related	1.5 - 13		8,654		(4,660	)		3,994
Developed technology	1.5 - 10		28,224		(13,478	)		14,746
Trade names	1.5 - 5		1,515		(865	)		650
Other			800		(800	)		–

Total amortizable			56,255		(32,828	)		23,427

Non-amortizable – trade names			4,881		–			4,881

Total other intangible assets, net		$	61,136	$	(32,828	)	$	28,308

The change in gross carrying amount of other intangible assets of $1,301 from October 31, 2014 compared to October 31, 2013 was the result of intangible assets acquired from a company, disclosed in Note 2, and changes in foreign currency exchange rates.

Amortization expense for intangible assets for the fiscal years ended October 31, 2014, 2013, and 2012 was $6,002, $5,769, and $6,008, respectively. Estimated amortization expense for the succeeding fiscal years is as follows: 2015, $5,610; 2016, $5,091; 2017, $4,196; 2018, $2,168; 2019, $1,191; and after 2019, $692.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

SHORT-TERM CAPITAL RESOURCES

12 Months Ended

Oct. 31, 2014

SHORT-TERM CAPITAL RESOURCES

SHORT-TERM CAPITAL RESOURCES

As of October 31, 2014, the company had a $150,000 unsecured senior five-year revolving credit facility that expires in October 2019, which replaced the prior revolving credit facility that was scheduled to mature in July 2015. Included in this $150,000 revolving credit facility is a sublimit of $20,000 for standby letters of credit and a sublimit for swingline loans of $20,000. At the election of the company, and the approval of the named borrowers on the revolving credit facility, the aggregate maximum principal amount available under the facility may be increased by an amount up to $100,000 in aggregate. Funds are available under the revolving credit facility for working capital, capital expenditures, and other lawful purposes, including, but not limited to, acquisitions and stock repurchases. Interest expense on this credit line is determined based on a LIBOR rate (or other rates quoted by the Administrative Agent, Bank of America, N.A.) plus a basis point spread defined in the credit agreement. The company's non-U.S. operations also maintain unsecured short-term lines of credit in the aggregate amount of $13,257. These facilities bear interest at various rates depending on the rates in their respective countries of operation. Under all these lines of credit, the company had $20,818 outstanding as of October 31, 2014. The weighted-average interest rate on outstanding short-term debt as of October 31, 2014 was 1.95%. There was no outstanding debt under the company's lines of credit as of October 31, 2013.

The credit agreement that contains the revolving credit facility and term loan, which is described in more detail in Note 7, contains standard covenants, including, without limitation, financial covenants, such as the maintenance of minimum interest coverage and maximum debt to earnings ratios; and negative covenants, which among other things, limit loans and investments, disposition of assets, consolidations and mergers, transactions with affiliates, restricted payments, contingent obligations, liens, and other matters customarily restricted in such agreements. Most of these restrictions are subject to certain minimum thresholds and exceptions. Under the revolving credit facility the company entered into in October 2014, the company is not limited in the amount for payments of cash dividends and stock repurchases as long as the debt to earnings before interest, tax, depreciation, and amortization ("EBITDA") ratio from the previous quarter compliance certificate is less than or equal to 3.25, provided that immediately after giving effect of any such proposed action, no default or event of default would exist. Under the prior revolving credit facility that was scheduled to mature in July 2015, the company was not limited in the amounts for payments of cash dividends and stock repurchases as long as the debt to EBITDA ratio from the previous quarter compliance certificate is less than or equal to 2.75; however, the company was limited to $50,000 per fiscal year if the debt to EBITDA ratio from the previous quarter compliance certificate was greater than 2.75. In fiscal 2014, 2013 and 2012, the company was not limited in the amount for payments of cash dividends and stock repurchases as its debt to EBITDA ratio was below the thresholds. The company was in compliance with all covenants related to the lines of credit described above as of October 31, 2014 and 2013.

LONG-TERM DEBT

12 Months Ended

Oct. 31, 2014

LONG-TERM DEBT.

LONG-TERM DEBT

A summary of long-term debt as of October 31 is as follows:


		2014		2013

Term loan, due October 25, 2019	$	130,000	$	–
7.800% Debentures, due June 15, 2027		100,000		100,000
6.625% Senior Notes, due May 1, 2037		123,606		123,544
Other		350		–

Total long-term debt		353,956		223,544
Less current portion		6,640		–

Long-term debt, less current portion	$	347,316	$	223,544

In October 2014, the company obtained a $130,000 term loan with various banks, which was a part of the new credit agreement that included the new revolving credit facility. Under the credit agreement, the term loan bears interest based on a LIBOR rate (or other rates quoted by the Administrative Agent, Bank of America, N.A.) plus a basis point spread defined in the credit agreement. The term loan can be repaid in part or in full at any time without penalty, but in any event must be paid in full by October 2019.

On April 26, 2007, the company issued $125,000 in aggregate principal amount of 6.625% senior notes due May 1, 2037. The senior notes were priced at 98.513% of par value, and the resulting discount of $1,859 associated with the issuance of these senior notes is being amortized over the term of the notes using the effective interest rate method. The underwriting fee and direct debt issue costs totaling $1,524 will be amortized over the life of the notes. Although the coupon rate of the senior notes is 6.625%, the effective interest rate is 6.741% after taking into account the issuance discount. Interest on the senior notes is payable semi-annually on May 1 and November 1 of each year. The senior notes are unsecured senior obligations of the company and rank equally with the company's other unsecured and unsubordinated indebtedness. The indentures under which the senior notes were issued contain customary covenants and event of default provisions. The company may redeem some or all of the senior notes at any time at the greater of the full principal amount of the senior notes being redeemed or the present value of the remaining scheduled payments of principal and interest discounted to the redemption date on a semi-annual basis at the treasury rate plus 30 basis points, plus, in both cases, accrued and unpaid interest. In the event of the occurrence of both (i) a change of control of the company, and (ii) a downgrade of the notes below an investment grade rating by both Moody's Investors Service, Inc. and Standard & Poor's Ratings Services within a specified period, the company would be required to make an offer to purchase the senior notes at a price equal to 101% of the principal amount of the senior notes plus accrued and unpaid interest to the date of repurchase.

In connection with the issuance in June 1997 of $175,000 in long-term debt securities, the company paid $23,688 to terminate three forward-starting interest rate swap agreements with notional amounts totaling $125,000. These swap agreements had been entered into to reduce exposure to interest rate risk prior to the issuance of the new long-term debt securities. As of the inception of one of the swap agreements, the company had received payments that were recorded as deferred income to be recognized as an adjustment to interest expense over the term of the new debt securities. As of the date the swaps were terminated, this deferred income totaled $18,710. The excess termination fees over the deferred income recorded has been deferred and is being recognized as an adjustment to interest expense over the term of the debt securities issued. As of October 31, 2014, the company had $1,995 remaining in other assets for the excess termination fees over deferred income.

Principal payments required on long-term debt in each of the next five fiscal years ending October 31 are as follows: 2015, $6,640; 2016, $13,140; 2017, $13,070; 2018, $13,000; 2019, $84,500; and after 2019, $225,000.

STOCKHOLDERS' EQUITY

12 Months Ended

Oct. 31, 2014

Stockholders' Equity

Stockholders' Equity

STOCKHOLDERS' EQUITY

Common Shares Authorized. On March 12, 2013, following the approval by the company's shareholders at its 2013 annual meeting of shareholders, the company amended its Restated Certificate of Incorporation by filing a Certificate of Amendment to Restated Certificate of Incorporation to increase the number of authorized shares from 100 million to 175 million.

Stock Repurchase Program. On December 11, 2012, the company's Board of Directors authorized the repurchase of 5 million shares of the company's common stock in open-market or in privately negotiated transactions. This program has no expiration date but may be terminated by the Board at any time. During fiscal 2014, 2013, and 2012, the company paid $101,674, $98,842, and $92,719 to repurchase an aggregate of 1,622,569 shares, 2,131,615 shares, and 2,591,039 shares, respectively. As of October 31, 2014, 2,720,493 shares remained authorized for repurchase.

Treasury Shares. As of October 31, 2014, the company had 22,386,021 treasury shares at a cost of $1,163,706. As of October 31, 2013, the company had 21,275,717 treasury shares at a cost of $1,081,086.

Accumulated Other Comprehensive Loss.

Components of accumulated other comprehensive loss ("AOCL"), net of tax, within the consolidated statements of stockholders' equity are as follows:


As of October 31		2014			2013		2012

Foreign currency translation adjustments	$	12,536		$	7,778	$	5,436
Pension and postretirement benefits		5,266			3,683		4,328
Derivative instruments		(2,097	)		1,109		210

Total accumulated other comprehensive loss	$	15,705		$	12,570	$	9,974

The components and activity of AOCL are as follows:


		Foreign Currency Translation Adjustments		Pension and Post- retirement Benefits			Cash Flow Derivative Instruments			Total

AOCL as of October 31, 2012	$	5,436	$	4,328		$	210		$	9,974
Other comprehensive loss before reclassifications		2,342		–			1,870			4,212
Amounts reclassified from AOCL		–		(645	)		(971	)		(1,616	)

Net current period other comprehensive loss (income)	$	2,342	$	(645	)	$	899		$	2,596

AOCL as of October 31, 2013	$	7,778	$	3,683		$	1,109		$	12,570

Other comprehensive loss before reclassifications	$	4,758	$	–		$	(1,644	)	$	3,114
Amounts reclassified from AOCL		–		1,583			(1,562	)		21

Net current period other comprehensive loss (income)	$	4,758	$	1,583		$	(3,206	)	$	3,135

AOCL as of October 31, 2014	$	12,536	$	5,266		$	(2,097	)	$	15,705

AOCL associated with pension and postretirement benefits are included in Note 11. Details of amounts reclassified from accumulated other comprehensive loss to the respective line items in net earnings for cash flow derivative instruments are included in Note 14.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(d),(e))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB TOPIC 4.E)
-URI http://asc.fasb.org/extlink&oid=27010918&loc=d3e74512-122707

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.29-31)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-Subparagraph (SAB TOPIC 4.C)
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187085-122770

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23285-112656

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph d
-Article 4

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 29, 30, 31
-Article 5

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section E

Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Article 4

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section C

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 3

+ Details

INCOME TAXES

12 Months Ended

Oct. 31, 2014

INCOME TAXES

INCOME TAXES

A reconciliation of the statutory federal income tax rate to the company's consolidated effective tax rate is summarized as follows:


Fiscal years ended October 31	2014		2013		2012

Statutory federal income tax rate	35.0	%	35.0	%	35.0	%
Increase (reduction) in income taxes resulting from:
Domestic manufacturer's deduction	(1.9	)	(2.0	)	(2.0	)
State and local income taxes, net of federal income tax benefit	1.5		1.5		1.5
Effect of foreign source income	(1.2	)	(0.3	)	0.2
Domestic research tax credit	(0.2	)	(2.4	)	(0.2	)
Other, net	(1.0	)	(0.1	)	(0.5	)

Consolidated effective tax rate	32.2	%	31.7	%	34.0	%

Components of the provision for income taxes were as follows:


Fiscal years ended October 31		2014			2013			2012

Provision for income taxes:
Current –
Federal	$	75,815		$	61,388		$	59,405
State		5,997			5,108			4,609
Non-U.S.		3,672			5,734			3,854

Current provision	$	85,484		$	72,230		$	67,868

Deferred –
Federal	$	(3,047	)	$	824		$	(685	)
State		(81	)		91			(132	)
Non-U.S.		219			(1,277	)		(330	)

Deferred benefit		(2,909	)		(362	)		(1,147	)

Total provision for income taxes	$	82,575		$	71,868		$	66,721

Earnings before income taxes were as follows:


Fiscal years ended October 31		2014		2013		2012

Earnings before income taxes:
U.S.	$	239,501	$	213,509	$	189,206
Non-U.S.		16,944		13,204		7,056

Total	$	256,445	$	226,713	$	196,262

During the fiscal years ended October 31, 2014, 2013, and 2012, respectively, $8,857, $6,134, and $9,017 was added to stockholders' equity reflecting the permanent book to tax difference in accounting for tax benefits related to employee stock-based award transactions.

The tax effects of temporary differences that give rise to the net deferred income tax assets are presented below:


October 31		2014			2013

Deferred tax assets (liabilities):
Allowance for doubtful accounts	$	858		$	1,635
Inventory items		3,918			3,969
Compensation and other accruals		40,932			38,168
Employee benefits		20,374			18,315
Depreciation		3,093			(2,467	)
Other		3,734			5,550

Deferred tax assets	$	72,909		$	65,170
Valuation allowance		(4,012	)		(5,572	)

Net deferred tax assets	$	68,897		$	59,598

The valuation allowance as of October 31, 2014 and 2013 principally applies to capital loss carryforwards and foreign net operating loss carryforwards that are expected to expire prior to utilization.

As of October 31, 2014, the company had net operating loss carryforwards of approximately $23,786 in foreign jurisdictions. The carryforward periods on the company's foreign loss carryforwards are as follows: $10,740 that do not expire; none that expire in fiscal years 2015 thru 2018; and $13,046 that expire between fiscal years 2019 and 2022.

As of October 31, 2014, the company had approximately $64,513 of accumulated undistributed earnings from subsidiaries outside the U.S. that are considered to be reinvested indefinitely. No deferred tax liability has been provided for such earnings.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:


Balance as of October 31, 2013	$	4,506
Decrease as a result of tax positions taken during a prior period		(164	)
Increase as a result of tax positions taken during the current period		726
Decrease relating to settlements with taxing authorities		(26	)

Balance as of October 31, 2014	$	5,042

Included in the balance of unrecognized tax benefits as of October 31, 2014 are potential benefits of $3,655 that, if recognized, would affect the effective tax rate from continuing operations.

The company recognizes potential accrued interest and penalties related to unrecognized tax benefits as a component of the provision for income taxes. In addition to the liability of $5,042 for unrecognized tax benefits as of October 31, 2014 was an amount of approximately $134 for accrued interest and penalties. To the extent interest and penalties are not assessed with respect to uncertain tax positions, the amounts accrued will be revised and reflected as an adjustment to the provision for income taxes.

The company anticipates that total unrecognized tax benefits will not change significantly within the next 12 months.

The company is subject to U.S. federal income tax as well as income tax of numerous state and foreign jurisdictions. The company is generally no longer subject to U.S. federal tax examinations for taxable years before fiscal 2010 and with limited exceptions, state and foreign income tax examinations for fiscal years before 2009.

STOCK-BASED COMPENSATION PLANS

12 Months Ended

Oct. 31, 2014

Stock-Based Compensation

Stock-Based Compensation

STOCK-BASED COMPENSATION PLANS

The company maintains The Toro Company 2010 Equity and Incentive Plan, as amended ("the plan"), for officers, other employees, and non-employee members of the company's Board of Directors. This plan allows the company to grant equity-based compensation awards, including stock options, restricted stock and restricted stock units, and performance share awards.

The compensation costs related to stock-based awards were as follows:


Fiscal years ended October 31		2014		2013		2012

Stock option awards	$	5,142	$	4,710	$	4,200
Restricted stock and restricted stock units		1,653		1,694		1,721
Performance share awards		4,496		3,833		3,582

Total compensation cost for stock-based awards	$	11,291	$	10,237	$	9,503

Tax benefit realized for tax deductions from stock-based awards	$	12,988	$	10,614	$	13,266

The number of unissued shares of common stock available for future equity-based grants under the company's equity-based compensation plan was 3,474,967 as of October 31, 2014. Shares of common stock issued upon exercise or settlement of stock options, restricted stock and restricted stock units, and performance shares are issued from treasury shares.

Stock Option Awards. Under the plan, stock options are granted with an exercise price equal to the closing price of the company's common stock on the date of grant, as reported by the New York Stock Exchange. Options are generally granted to executive officers, other employees, and non-employee members of the company's Board of Directors on an annual basis in the first quarter of the company's fiscal year. Options generally vest one-third each year over a three-year period and have a ten-year term. Other options granted to certain non-officer employees vest in full on the three-year anniversary of the date of grant and have a ten-year term. Compensation expense equal to the grant date fair value is generally recognized for these awards over the vesting period. Stock options granted to officers and other employees are subject to accelerated expensing if the option holder meets the retirement definition set forth in the plan. In that case, the fair value of the options is expensed in the fiscal year of grant because the option holder must be employed as of the end of the fiscal year in which the options are granted in order for the options to continue to vest following retirement. Similarly, if a non-employee director has served on the company's Board of Directors for ten full fiscal years or more, the fair value of the options granted is fully expensed on the date of the grant.

The table below presents stock option activity for fiscal 2014:


	Stock Option Awards			Weighted- Average Exercise Price	Weighted- Average Contractual Life(years)		Intrinsic Value

Outstanding as of October 31, 2013	3,069,778		$	25.55	5.9	$	102,493
Granted	288,832			59.45	—		—
Exercised	(302,266	)		22.19	—		—
Cancelled	(6,692	)		59.50	—		—

Outstanding as of October 31, 2014	3,049,652		$	29.04	5.4	$	99,713

Exercisable as of October 31, 2014	2,338,853		$	23.98	4.6	$	88,289

As of October 31, 2014, there was $1,855 of total unrecognized compensation expense related to unvested stock options. That cost is expected to be recognized over a weighted-average period of 1.9 years.

The table below presents the total market value of stock options exercised and the total intrinsic value of options exercised during the following fiscal years:


Fiscal years ended October 31		2014		2013		2012

Market value of stock options exercised	$	19,017	$	23,160	$	35,901
Intrinsic value of options exercised		12,311		13,875		16,061

The fair value of each stock option is estimated on the date of grant using the Black-Scholes valuation method with the assumptions noted in the table below. The expected life is a significant assumption as it determines the period for which the risk-free interest rate, volatility, and dividend yield must be applied. The expected life is the average length of time in which officers, other employees, and non-employee directors are expected to exercise their stock options, which is primarily based on historical experience. Separate groups of employees that have similar historical exercise behavior are considered separately for valuation purposes. Expected volatilities are based on the movement of the company's common stock over the most recent historical period equivalent to the expected life of the option. The risk-free interest rate for periods within the contractual life of the option is based on the U.S. Treasury rate over the expected life at the time of grant. Dividend yield is estimated over the expected life based on the company's historical cash dividends paid, expected future cash dividends and dividend yield, and expected changes in the company's stock price.

The table below illustrates the valuation assumptions of stock-based compensation for the following fiscal years:


Fiscal years ended October 31	2014	2013	2012

Expected life of option in years	6	6	6
Expected volatility	34.28% – 34.42%	35.18% – 35.19%	34.87% – 35.02%
Weighted-average volatility	34.29%	35.19%	35.01%
Risk-free interest rate	1.92%	0.88%	1.20%
Expected dividend yield	1.25% – 1.27%	1.04% – 1.07%	1.31% – 1.40%
Weighted-average dividend yield	1.25%	1.07%	1.32%

Weighted-average fair value at date of grant	$18.69	$13.03	$8.56

Restricted Stock and Restricted Stock Units. Under the plan, restricted stock and restricted stock units are generally granted to certain non-officer employees. Occasionally, restricted stock or restricted stock unit awards may be granted, including to executive officers, in connection with hiring, mid-year promotions, leadership transition, or retention. Restricted stock and restricted stock units generally vest one-third each year over a three-year period, or vest in full on the three-year anniversary of the date of grant. Such awards may have performance-based rather than time-based vesting requirements. Compensation expense equal to the grant date fair value, which is equal to the closing price of the company's common stock on the date of grant multiplied by the number of shares subject to the restricted stock and restricted stock units, is recognized for these awards over the vesting period.

The company granted restricted stock and restricted stock units during the following fiscal years as follows:


Fiscal years ended October 31		2014		2013		2012

Weighted-average fair value at date of grant	$	63.05	$	46.10	$	33.61
Fair value of restricted stock and restricted stock units vested		1,890		1,207		967

The table below summarizes the activity during fiscal 2014 for unvested restricted stock and restricted stock units:


	Restricted Stock and Units			Weighted- Average Fair Value at Date of Grant

Unvested as of October 31, 2013	109,288		$	36.32
Granted	29,975			63.05
Vested	(58,047	)		32.43
Forfeited	(2,687	)		41.93

Unvested as of October 31, 2014	78,529		$	49.22

As of October 31, 2014, there was $2,019 of total unrecognized compensation expense related to unvested restricted stock and restricted stock units. That cost is expected to be recognized over a weighted-average period of 2.2 years.

Performance Share Awards. The company grants performance share awards to executive officers and other employees under which they are entitled to receive shares of the company's common stock contingent on the achievement of performance goals of the company and businesses of the company, which are generally measured over a three-year period. The number of shares of common stock a participant receives will be increased (up to 200 percent of target levels) or reduced (down to zero) based on the level of achievement of performance goals and vest at the end of a three-year period. Performance share awards are generally granted on an annual basis in the first quarter of the company's fiscal year. Compensation expense is recognized for these awards on a straight-line basis over the vesting period based on the per share fair value as of the date of grant and the probability of achieving each performance goal.

The company granted performance share awards as follows:


Fiscal years ended October 31		2014		2013		2012

Weighted-average fair value at date of grant	$	59.31	$	42.06	$	28.24
Fair value of performance share awards vested		7,926		9,057		1,828

The table below summarizes the activity during fiscal 2014 for unvested performance share awards:


	Performance Shares			Weighted- Average Fair Value at Date of Grant

Unvested as of October 31, 2013	520,800		$	33.41
Granted	121,600			60.19
Vested	(133,640	)		31.76
Cancelled	(31,960	)		31.76

Unvested as of October 31, 2014	476,800		$	40.82

As of October 31, 2014, there was $4,293 of total unrecognized compensation expense related to unvested performance share awards. That cost is expected to be recognized over a weighted-average period of 1.7 years.

EMPLOYEE RETIREMENT PLANS

12 Months Ended

Oct. 31, 2014

EMPLOYEE RETIREMENT PLANS

EMPLOYEE RETIREMENT PLANS

The company maintains The Toro Company Investment, Savings, and Employee Stock Ownership Plan for eligible employees. The company's expenses under this plan were $15,550, $14,931, and $14,304 for the fiscal years ended October 31, 2014, 2013, and 2012, respectively.

In addition, the company and its subsidiaries have defined benefit, supplemental, and other retirement plans covering certain employees in the U.S. and the United Kingdom. The projected benefit obligation of these plans as of October 31, 2014 and 2013 was $45,420 and $42,034, respectively, and the net liability amount recognized in the consolidated balance sheets as of October 31, 2014 and 2013 was $3,432 and $3,982, respectively. The accumulated benefit obligation of these plans as of October 31, 2014 and 2013 was $42,431 and $39,967, respectively. The funded status of these plans as of October 31, 2014 and 2013 was $10,085 and $9,063, respectively. The fair value of the plan assets as of October 31, 2014 and 2013 was $35,335 and $32,971, respectively. The net expense recognized in the consolidated financial statements for these plans was $1,092, $1,149, and $703 for the fiscal years ended October 31, 2014, 2013, and 2012, respectively.

Amounts recognized in accumulated other comprehensive loss consisted of:


Fiscal years ended October 31		Defined Benefit Pension Plans		Postretirement Benefit Plan			Total

2014
Net actuarial loss	$	4,521	$	513		$	5,034
Net prior service cost (credit)		257		(25	)		232

Accumulated other comprehensive loss	$	4,778	$	488		$	5,266

2013
Net actuarial loss	$	2,915	$	611		$	3,526
Net prior service cost (credit)		289		(132	)		157

Accumulated other comprehensive loss	$	3,204	$	479		$	3,683

The following amounts are included in accumulated other comprehensive loss as of October 31, 2014 and are expected to be recognized as components of net periodic benefit cost during fiscal 2015.


		Defined Benefit Pension Plans		Postretirement Benefit Plan			Total

Net actuarial loss	$	570	$	2		$	572
Net prior service cost (credit)		51		(41	)		10

Total	$	621	$	(39	)	$	582

Amounts recognized in net periodic benefit cost and other comprehensive loss consisted of:


Fiscal years ended October 31		Defined Benefit Pension Plans			Postretirement Benefit Plan			Total

2014
Net actuarial gain	$	88		$	(89	)	$	(1	)
Amortization of unrecognized prior service (credit) cost		(32	)		106			74
Amortization of unrecognized actuarial loss (gain)		1,519			(9	)		1,510

Total recognized in other comprehensive loss	$	1,575		$	8		$	1,583

Total recognized in net periodic benefit cost and other comprehensive loss	$	2,110		$	565		$	2,675

2013
Net actuarial gain	$	(1,170	)	$	(283	)	$	(1,453	)
Amortization of unrecognized prior service (credit) cost		(34	)		106			72
Amortization of unrecognized actuarial loss (gain)		768			(32	)		736

Total recognized in other comprehensive loss (income)	$	(436	)	$	(209	)	$	(645	)

Total recognized in net periodic benefit cost and other comprehensive loss	$	117		$	387		$	504

The company has omitted the remaining disclosures for its defined benefit plans and postretirement healthcare plan as the company deems these plans to be immaterial to its consolidated financial position and results of operations.

SEGMENT DATA

12 Months Ended

Oct. 31, 2014

Segment Data

Segment Data

SEGMENT DATA

The company's businesses are organized, managed, and internally grouped into segments based on differences in products and services. Segment selection was based on the manner in which management organizes segments for making operating and investment decisions and assessing performance. The company has identified eight operating segments and has aggregated those segments into three reportable segments: Professional, Residential, and Distribution. The aggregation of the company's segments is based on the segments having the following similarities: economic characteristics, types of products and services, types of production processes, type or class of customers, and method of distribution. The company's Distribution segment, which consists of company-owned domestic distributorships, has been combined with the company's corporate activities and elimination of intersegment revenues and expenses and is shown as "Other" due to the insignificance of the segment.

The Professional business segment consists of turf and landscape equipment and irrigation products. Beginning in fiscal 2015, the Professional business segment will also include professional snow and ice removal equipment as a result of the acquisition of the BOSS business, as discussed in Note 2. Turf and landscape equipment products include sports fields and grounds maintenance equipment, golf course mowing and maintenance equipment, landscape contractor mowing equipment, landscape creation and renovation equipment, rental and specialty construction equipment, and other maintenance equipment. Irrigation and lighting products consist of sprinkler heads, electric and hydraulic valves, controllers, computer irrigation central control systems, and micro-irrigation drip tape and hose products, as well as professionally installed lighting products offered through distributors and landscape contractors that also purchase irrigation products. Professional business segment products are sold mainly through a network of distributors and dealers to professional users engaged in maintaining golf courses, sports fields, municipal properties, agricultural fields, residential and commercial landscapes, and removing snow, as well as directly to government customers, rental companies, and large retailers.

The Residential business segment consists of walk power mowers, riding mowers, snow throwers, replacement parts, and home solutions products, including trimmers, blowers, blower-vacuums, and underground and hose-end retail irrigation products sold in Australia. Residential business segment products are sold to homeowners through a network of distributors and dealers, and through a broad array of home centers, hardware retailers, and mass retailers, as well as over the Internet.

The Other segment consists of the company's Distribution segment and corporate activities and elimination of intersegment revenues and expenses. Corporate activities include general corporate expenditures (finance, human resources, legal, information services, public relations, and similar activities) and other unallocated corporate assets and liabilities, such as corporate facilities, parts inventory, and deferred tax assets.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies in Note 1. The company evaluates the performance of its Professional and Residential business segment results based on earnings from operations plus other income, net. Operating loss for the Other segment includes earnings (loss) from domestic wholly owned distribution companies, corporate activities, other income, and interest expense. The business segment's operating profits or losses include direct costs incurred at the segment's operating level plus allocated expenses, such as profit sharing and manufacturing expenses. The allocated expenses represent costs that these operations would have incurred otherwise, but do not include general corporate expenses, interest expense, and income taxes. The company accounts for intersegment gross sales at current market prices.

The following table shows summarized financial information concerning the company's reportable segments:


Fiscal years ended October 31		Professional		Residential		Other			Total

2014
Net sales	$	1,477,578	$	672,443	$	22,670		$	2,172,691
Intersegment gross sales		41,376		424		(41,800	)		–
Earnings (loss) before income taxes		276,305		76,916		(96,776	)		256,445
Total assets		573,086		172,984		446,345			1,192,415
Capital expenditures		25,226		12,417		33,495			71,138
Depreciation and amortization		34,228		8,883		10,027			53,138

2013
Net sales	$	1,425,259	$	594,411	$	21,761		$	2,041,431
Intersegment gross sales		40,416		402		(40,818	)		–
Earnings (loss) before income taxes		254,424		62,033		(89,744	)		226,713
Total assets		528,926		167,918		305,904			1,002,748
Capital expenditures		32,362		7,838		9,227			49,427
Depreciation and amortization		34,706		10,321		9,107			54,134

2012
Net sales	$	1,329,504	$	607,435	$	21,751		$	1,958,690
Intersegment gross sales		37,324		26		(37,350	)		–
Earnings (loss) before income taxes		232,104		57,889		(93,731	)		196,262
Total assets		527,159		169,899		238,141			935,199
Capital expenditures		29,313		4,164		9,765			43,242
Depreciation and amortization		34,876		10,919		7,839			53,634

The following table presents the details of the Other segment operating loss before income taxes:


Fiscal years ended October 31		2014			2013			2012

Corporate expenses	$	(88,539	)	$	(85,359	)	$	(81,376	)
Interest expense		(15,426	)		(16,210	)		(16,906	)
Other income		7,189			11,825			4,551

Total	$	(96,776	)	$	(89,744	)	$	(93,731	)

The following table presents net sales for groups of similar products and services:


Fiscal years ended October 31		2014		2013		2012

Equipment	$	1,765,845	$	1,649,489	$	1,586,864
Irrigation and lighting		406,846		391,942		371,826

Total	$	2,172,691	$	2,041,431	$	1,958,690

Sales to one customer in the Residential segment accounted for 11 percent, 10 percent, and 11 percent of total consolidated gross sales in fiscal 2014, 2013, and 2012, respectively.

Geographic Data

The following geographic area data includes net sales based on product shipment destination. Long-lived assets consist of net property, plant, and equipment, which is determined based on physical location in addition to allocated capital tooling from U.S. plant facilities.


Fiscal years ended October 31		United States		Foreign Countries		Total

2014
Net sales	$	1,550,077	$	622,614	$	2,172,691
Long-lived assets		169,797		35,398		205,195

2013
Net sales	$	1,426,060	$	615,371	$	2,041,431
Long-lived assets		143,547		41,549		185,096

2012
Net sales	$	1,364,377	$	594,313	$	1,958,690
Long-lived assets		137,708		42,815		180,523

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
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-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
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-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
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-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599

+ Details

COMMITMENTS AND CONTINGENT LIABILITIES

12 Months Ended

Oct. 31, 2014

COMMITMENTS AND CONTINGENT LIABILITIES

COMMITMENTS AND CONTINGENT LIABILITIES

Leases

Total rental expense for operating leases was $24,329, $24,399, and $22,166 for the fiscal years ended October 31, 2014, 2013, and 2012, respectively. As of October 31, 2014, future minimum lease payments under noncancelable operating leases amounted to $67,522 as follows: 2015, $15,308; 2016, $11,427; 2017, $7,353; 2018, $5,344; 2019, $4,204 and after 2019, $23,886.

Customer Financing

Wholesale Financing. In fiscal 2009, Toro Credit Company sold its receivable portfolio to Red Iron, the company's joint venture with TCFIF. See Note 3 for additional information related to Red Iron. Some products sold to independent dealers in Australia are financed by a third party finance company. This third party financing company purchased $18,693 of receivables from the company during fiscal 2014. As of October 31, 2014, $10,945 of receivables financed by the third party financing company, excluding Red Iron, was outstanding.

The company also enters into limited inventory repurchase agreements with third party financing companies and Red Iron for receivables financed by third party financing companies and Red Iron. As of October 31, 2014, the company was contingently liable to repurchase up to a maximum amount of $9,369 of inventory related to receivables under these financing arrangements. The company has repurchased only immaterial amounts of inventory under these repurchase agreements since inception.

End-User Financing. The company has agreements with third party financing companies to provide lease-financing options to golf course and sports fields and grounds equipment customers in the U.S. and select countries in Europe. The company has no contingent liabilities for residual value or credit collection risk under these agreements with third party financing companies.

From time to time, the company enters into agreements where it provides recourse to third party finance companies in the event of default by the customer for lease payments to the third party finance company. The company's maximum exposure for credit collection as of October 31, 2014 was $1,893.

Purchase Commitments

As of October 31, 2014, the company had $18,921 of noncancelable purchase commitments with some suppliers for materials and supplies as part of the normal course of business. The company also entered into a construction agreement for the renovation of its original corporate facility located at Bloomington, Minnesota, to accommodate needs for expansion of product development and test capacities, for a maximum obligation, subject to certain exceptions, of $15,291.

Letters of Credit

Letters of credit are issued by the company during the normal course of business, as required by some vendor contracts. As of October 31, 2014 and 2013, the company had $16,220 and $12,681, respectively, in outstanding letters of credit.

Litigation

The company is party to litigation in the ordinary course of business. Such matters are generally subject to uncertainties and to outcomes that are not predictable with assurance and that may not be known for extended periods of time. Litigation occasionally involves claims for punitive, as well as compensatory, damages arising out of the use of the company's products. Although the company is self-insured to some extent, the company maintains insurance against certain product liability losses. The company is also subject to litigation and administrative and judicial proceedings with respect to claims involving asbestos and the discharge of hazardous substances into the environment. Some of these claims assert damages and liability for personal injury, remedial investigations or clean up and other costs and damages. The company is also typically involved in commercial disputes, employment disputes, and patent litigation cases in which it is asserting or defending against patent infringement claims. To prevent possible infringement of the company's patents by others, the company periodically reviews competitors' products. To avoid potential liability with respect to others' patents, the company regularly reviews certain patents issued by the United States Patent and Trademark Office and foreign patent offices. Management believes these activities help minimize its risk of being a defendant in patent infringement litigation. The company records a liability in its consolidated financial statements for costs related to claims, including future legal costs, settlements and judgments, where the company has assessed that a loss is probable and an amount can be reasonably estimated. If the reasonable estimate of a probable loss is a range, the company records the most probable estimate of the loss or the minimum amount when no amount within the range is a better estimate than any other amount. The company discloses a contingent liability even if the liability is not probable or the amount is not estimable, or both, if there is a reasonable possibility that a material loss may have been incurred. In the opinion of management, the amount of liability, if any, with respect to these matters, individually or in the aggregate, will not materially affect its consolidated results of operations, financial position, or cash flows.

FINANCIAL INSTRUMENTS

12 Months Ended

Oct. 31, 2014

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS

Concentrations of Credit Risk

Financial instruments, which potentially subject the company to concentrations of credit risk, consist principally of accounts receivable that are concentrated in the Professional and Residential business segments. The credit risk associated with these segments is limited because of the large number of customers in the company's customer base and their geographic dispersion, except for the Residential segment that has significant sales to The Home Depot.

Derivative Instruments and Hedging Activities

The company is exposed to foreign currency exchange rate risk arising from transactions in the normal course of business, such as sales to third party customers, sales and loans to wholly owned foreign subsidiaries, foreign plant operations, and purchases from suppliers. The company actively manages the exposure of its foreign currency exchange rate market risk by entering into various hedging instruments, authorized under company policies that place controls on these activities, with counterparties that are highly rated financial institutions. The company's hedging activities primarily involve the use of forward currency contracts, as well as cross currency swaps that are intended to offset intercompany loan exposures. The company uses derivative instruments only in an attempt to limit underlying exposure from foreign currency exchange rate fluctuations and to minimize earnings and cash flow volatility associated with foreign currency exchange rate changes. Decisions on whether to use such contracts are primarily based on the amount of exposure to the currency involved and an assessment of the near-term market value for each currency. The company's policy does not allow the use of derivatives for trading or speculative purposes. The company also made an accounting policy election to use the portfolio exception with respect to measuring counterparty credit risk for derivative instruments, and to measure the fair value of a portfolio of financial assets and financial liabilities on the basis of the net open risk position with each counterparty. The company's primary currency exchange rate exposures are with the Euro, the Australian dollar, the Canadian dollar, the British pound, the Mexican peso, the Japanese yen, the Chinese Renminbi, and the Romanian New Leu against the U.S. dollar, as well as the Romanian New Leu against the Euro.

Cash Flow Hedges. The company recognizes all derivative instruments as either assets or liabilities at fair value on the consolidated balance sheet and formally documents relationships between cash flow hedging instruments and hedged transactions, as well as its risk-management objective and strategy for undertaking hedge transactions. This process includes linking all derivatives to the forecasted transactions, such as sales to third parties and foreign plant operations. Changes in fair values of outstanding cash flow hedge derivatives, except the ineffective portion, are recorded in other comprehensive income ("OCI"), until net earnings is affected by the variability of cash flows of the hedged transaction. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in net earnings. The consolidated statement of earnings classification of effective hedge results is the same as that of the underlying exposure. Results of hedges of sales and foreign plant operations are recorded in net sales and cost of sales, respectively, when the underlying hedged transaction affects net earnings. The maximum amount of time the company hedges its exposure to the variability in future cash flows for forecasted trade sales and purchases is two years. Results of hedges of intercompany loans are recorded in other income, net as an offset to the remeasurement of the foreign loan balance.

The company formally assesses, at a hedge's inception and on an ongoing basis, whether the derivatives that are designated as hedges have been highly effective in offsetting changes in the cash flows of the hedged transactions and whether those derivatives may be expected to remain highly effective in future periods. When it is determined that a derivative is not, or has ceased to be, highly effective as a hedge, the company discontinues hedge accounting prospectively. When the company discontinues hedge accounting because it is no longer probable, but it is still reasonably possible that the forecasted transaction will occur by the end of the originally expected period or within an additional two-month period of time thereafter, the gain or loss on the derivative remains in AOCL and is reclassified to net earnings when the forecasted transaction affects net earnings. However, if it is probable that a forecasted transaction will not occur by the end of the originally specified time period or within an additional two-month period of time thereafter, the gains and losses that were in AOCL are recognized immediately in net earnings. In all situations in which hedge accounting is discontinued and the derivative remains outstanding, the company carries the derivative at its fair value on the consolidated balance sheet, recognizing future changes in the fair value in other income, net. For the fiscal years ended October 31, 2014 and 2013, there were immaterial losses on contracts reclassified into earnings as a result of the discontinuance of cash flow hedges. As of October 31, 2014, the notional amount of outstanding forward contracts designated as cash flow hedges was $106,906. Additionally, the company has one cross currency interest rate swap instrument outstanding as of October 31, 2014 for a fixed pay notional of 36,593 Romanian New Leu and receive floating notional of 8,500 Euro.

Derivatives Not Designated as Hedging Instruments. The company also enters into foreign currency contracts that include forward currency contracts and cross currency swaps to mitigate the remeasurement of specific assets and liabilities on the consolidated balance sheet. These contracts are not designated as hedging instruments. Accordingly, changes in the fair value of hedges of recorded balance sheet positions, such as cash, receivables, payables, intercompany notes, and other various contractual claims to pay or receive foreign currencies other than the functional currency, are recognized immediately in other income, net, on the consolidated statements of earnings together with the transaction gain or loss from the hedged balance sheet position.

The following table presents the fair value of the company's derivatives and consolidated balance sheet location.

Asset Derivatives

Liability Derivatives

October 31, 2014

October 31, 2013

October 31, 2014

October 31, 2013

Balance
Sheet
Location

Fair
Value

Balance
Sheet
Location

Fair
Value

Balance
Sheet
Location

Fair
Value

Balance
Sheet
Location

Fair
Value

Derivatives Designated as Hedging Instruments

Forward currency contracts

Prepaid expenses

4,626

Prepaid expenses

558

Accrued liabilities

1,381

Cross currency contract

Prepaid expenses

831

Prepaid expenses

–

Accrued liabilities

–

Accrued liabilities

326

Derivatives Not Designated as Hedging Instruments

Forward currency contracts

Prepaid expenses

1,404

Prepaid expenses

708

Accrued liabilities

–

Accrued liabilities

550

Cross currency contract

Prepaid expenses

–

Prepaid expenses

–

Accrued liabilities

536

Accrued liabilities

117

Total Derivatives

6,861

1,266

545

2,374

The following table presents the impact of derivative instruments on the consolidated statements of earnings and the consolidated statements of comprehensive income for the company's derivatives designated as cash flow hedging instruments for the fiscal years ended October 31, 2014 and 2013, respectively.


	Gain (Loss) Recognized in OCI on Derivatives, net of tax (Effective Portion)						Location of Gain (Loss) Reclassified from AOCL into Income (Effective Portion)	Gain (Loss) Reclassified from AOCL into Income (Effective Portion)						Location of Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion and excluded from Effectiveness Testing)	Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion and Excluded from Effectiveness Testing)
Fiscal years ended		October 31, 2014			October 31, 2013				October 31, 2014			October 31, 2013				October 31, 2014		October 31, 2013

Forward currency contracts	$	4,150		$	7		Net sales	$	(1,128	)	$	(805	)	Other income, net	$	120	$	648

Forward currency contracts		(712	)		(231	)	Cost of sales		103			473
Cross currency contracts		(238	)		(680	)	Other income, net		(537	)		(639	)

Total	$	3,200		$	(904	)	Total	$	(1,562	)	$	(971	)

As of October 31, 2014, the company anticipates to reclassify approximately $3,736 of gains from AOCL to earnings during the next twelve months.

The following table presents the impact of derivative instruments on the consolidated statements of earnings for the company's derivatives not designated as hedging instruments.


		Gain (Loss) Recognized in Net Earnings Fiscal Year Ended
	Location of Gain (Loss) Recognized in Net Earnings		October 31, 2014		October 31, 2013

Forward currency contracts	Other income, net	$	3,555	$	(1,402	)
Cross currency contracts	Other income, net		951		(483	)

Total		$	4,506	$	(1,885	)

The company entered into an International Swap Dealers Association ("ISDA") Master Agreement with each counterparty that permits the net settlement of amounts owed under their respective contracts. The ISDA Master Agreement is an industry standardized contract that governs all derivative contracts entered into between the company and the respective counterparty. Under these master netting agreements, net settlement generally permits the company or the counterparty to determine the net amount payable or receivable for contracts due on the same date or in the same currency for similar types of derivative transactions. The company records the fair value of its derivative contracts at the net amount in its consolidated balance sheets.

The following tables show the effects of the master netting arrangements on the fair value of the company's derivative contracts that are recorded in the consolidated balance sheets:


	Assets							Liabilities
October 31, 2014		Gross Amounts of Recognized Assets		Gross Liabilities Offset in the Balance Sheet			Net Amount of Assets Presented in the Balance Sheet		Gross Amounts of Recognized Liabilities		Gross Assets offset in the Balance Sheet		Net Amount of Liabilities Presented in the Balance Sheet

Forward currency contracts	$	6,265	$	(235	)	$	6,030	$	(9	)	–	$	(9	)
Cross currency contracts		831		–			831		(536	)	–		(536	)

Total	$	7,096	$	(235	)	$	6,861	$	(545	)	–	$	(545	)


	Assets					Liabilities
October 31, 2013		Gross Amounts of Recognized Assets	Gross Liabilities Offset in the Balance Sheet		Net Amount of Assets Presented in the Balance Sheet		Gross Amounts of Recognized Liabilities			Gross Assets offset in the Balance Sheet		Net Amount of Liabilities Presented in the Balance Sheet

Forward currency contracts	$	1,266	–	$	1,266	$	(1,968	)	$	37	$	(1,931	)
Cross currency contracts		–	–		–		(443	)		–		(443	)

Total	$	1,266	–	$	1,266	$	(2,411	)	$	37	$	(2,374	)

During the second quarter of fiscal 2007, the company entered into three treasury lock agreements based on a 30-year U.S. Treasury security with a principal balance of $30,000 each for two of the agreements and $40,000 for the third agreement. These treasury lock agreements provided for a single payment at maturity, which was April 23, 2007, based on the change in value of the reference treasury security. These agreements were designated as cash flow hedges and resulted in a net settlement of $182, which was recorded in AOCL, and will be amortized to interest expense over the 30-year term of the senior notes. The unrecognized loss portion of the fair value of these agreements in AOCL as of October 31, 2014 and 2013 was $137 and $143, respectively.

Fair Value

The company categorizes its assets and liabilities into one of three levels based on the assumptions (inputs) used in valuing the asset or liability. Estimates of fair value for financial assets and financial liabilities are based on the framework established in the accounting guidance for fair value measurements. The framework defines fair value, provides guidance for measuring fair value, and requires certain disclosures. The framework discusses valuation techniques such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost). The framework utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. Level 1 provides the most reliable measure of fair value, while Level 3 generally requires significant management judgment. The three levels are defined as follows:

Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 – Unobservable inputs reflecting management's assumptions about the inputs used in pricing the asset or liability.

Cash balances are valued at their carrying amounts in the consolidated balance sheets, which are reasonable estimates of their fair value due to their short-term nature. Forward currency contracts are valued based on observable market transactions of forward currency prices and spot currency rates as of the reporting date. The fair value of cross currency contracts is determined using discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs such as interest rates and foreign currency exchange rates. In addition, credit valuation adjustments, which consider the impact of any credit enhancements to the contracts, such as collateral postings, thresholds, mutual puts, and guarantees, are incorporated in the fair values to account for potential nonperformance risk. The unfunded deferred compensation liability is primarily subject to changes in fixed-income investment contracts based on current yields. For accounts receivable and accounts payable, carrying amounts are a reasonable estimate of fair value given their short-term nature.

Assets and liabilities measured at fair value on a recurring basis, as of October 31, 2014 and 2013, respectively, are summarized below:


October 31, 2014		Fair Value		Level 1		Level 2	Level 3

Assets:
Cash and cash equivalents	$	314,873	$	314,873	$	–	–
Forward currency contracts		6,030		–		6,030	–
Cross currency contracts		831		–		831	–

Total assets	$	321,734	$	314,873	$	6,861	–

Liabilities:
Forward currency contracts	$	9		–	$	9	–
Cross currency contracts		536		–		536	–
Deferred compensation liabilities		2,141		–		2,141	–

Total liabilities	$	2,686		–	$	2,686	–


October 31, 2013		Fair Value		Level 1		Level 2	Level 3

Assets:
Cash and cash equivalents	$	182,993	$	182,993	$	–	–
Forward currency contracts		1,266		–		1,266	–

Total assets	$	184,259	$	182,993	$	1,266	–

Liabilities:
Forward currency contracts	$	1,931		–	$	1,931	–
Cross currency contracts		443		–		443	–
Deferred compensation liabilities		2,777		–		2,777	–

Total liabilities	$	5,151		–	$	5,151	–

There were no transfers between Level 1 and Level 2 during the fiscal years ended October 31, 2014 and 2013.

As of October 31, 2014, the estimated fair value of long-term debt with fixed interest rates was $260,970 compared to its carrying amount of $223,956. As of October 31, 2013, the estimated fair value of long-term debt with fixed interest rates was $243,074 compared to its carrying amount of $223,544. The fair value is estimated by discounting the projected cash flows using the rate at which similar amounts of debt could currently be borrowed. Long-term debt is a Level 2 liability in the fair value hierarchy.

SUBSEQUENT EVENTS

12 Months Ended

Oct. 31, 2014

Subsequent Events

Subsequent Events

SUBSEQUENT EVENTS

On November 14, 2014, subsequent to fiscal 2014 year end and during the first quarter of fiscal 2015, the company acquired the BOSS professional snow and ice management business from privately held Northern Star Industries, Inc. Further information regarding this acquisition is presented in Note 2. The company evaluated all other subsequent events and concluded that no other subsequent events have occurred that would require recognition in the financial statements or disclosure in the notes to the financial statements.

QUARTERLY FINANCIAL DATA (unaudited)

12 Months Ended

Oct. 31, 2014

QUARTERLY FINANCIAL DATA (unaudited)

QUARTERLY FINANCIAL DATA (unaudited)

Summarized quarterly financial data for fiscal 2014 and 2013 are as follows:


Fiscal year ended October 31, 2014 Quarter		First		Second		Third		Fourth

Net sales	$	445,981	$	745,030	$	567,540	$	414,140
Gross profit		163,514		264,540		202,080		143,137
Net earnings		25,869		87,086		50,013		10,902
Basic net earnings per share1		0.45		1.54		0.89		0.19
Diluted net earnings per share1		0.44		1.51		0.87		0.19


Fiscal year ended October 31, 2013 Quarter		First		Second		Third		Fourth

Net sales	$	444,661	$	704,486	$	509,918	$	382,366
Gross profit		165,817		252,301		178,031		128,648
Net earnings		31,396		78,402		40,097		4,950
Basic net earnings per share1		0.54		1.35		0.70		0.09
Diluted net earnings per share1		0.53		1.32		0.68		0.08

1	Net earnings per share amounts do not sum to equal full year total due to changes in the number of shares outstanding during the periods and rounding.

SCHEDULE II Valuation and Qualifying Accounts

12 Months Ended

Oct. 31, 2014

SCHEDULE II Valuation and Qualifying Accounts

SCHEDULE II Valuation and Qualifying Accounts

SCHEDULE II

THE TORO COMPANY AND SUBSIDIARIES
Valuation and Qualifying Accounts


(Dollars in thousands)		Balance as of the beginning of the fiscal year		Charged to costs and expenses1			Other2		Deductions3		Balance as of the end of the fiscal year

Fiscal year ended October 31, 2014
Allowance for doubtful accounts and notes receivable reserves	$	3,425	$	(79	)	$	–	$	1,865	$	1,481

Fiscal year ended October 31, 2013
Allowance for doubtful accounts and notes receivable reserves		3,733		123			–		431		3,425

Fiscal year ended October 31, 2012
Allowance for doubtful accounts and notes receivable reserves		2,040		2,160			12		479		3,733

1	Provision/(recovery).
2	Addition due to acquisitions.
3	Uncollectible accounts charged off.


(Dollars in thousands)		Balance as of the beginning of the fiscal year		Charged to costs and expenses1		Deductions2		Balance as of the end of the fiscal year

Fiscal year ended October 31, 2014
Accrued advertising and marketing programs	$	64,191	$	306,650	$	304,672	$	66,169

Fiscal year ended October 31, 2013
Accrued advertising and marketing programs		56,264		287,217		279,290		64,191

Fiscal year ended October 31, 2012
Accrued advertising and marketing programs		47,161		214,474		205,371		56,264

1	Provision consists of rebates, cooperative advertising, floor planning costs, commissions, and other promotional program expenses. The expense of each program is classified either as a reduction of net sales or as a component of selling, general, and administrative expense.
2	Claims paid.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RELATED DATA (Policies)

12 Months Ended

Oct. 31, 2014

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RELATED DATA

Basis of Presentation and Consolidation

Accounting Estimates

Cash and Cash Equivalents

Receivables

Allowance for Doubtful Accounts

Inventory Valuations

Inventories as of October 31 were as follows:


		2014		2013

Raw materials and work in progress	$	95,144	$	87,668
Finished goods and service parts		246,954		217,796

Total FIFO value		342,098		305,464
Less: adjustment to LIFO value		67,495		65,375

Total	$	274,603	$	240,089

Property and Depreciation

Property, plant, and equipment as of October 31 was as follows:


		2014		2013

Land and land improvements	$	32,731	$	27,632
Buildings and leasehold improvements		156,374		133,866
Machinery and equipment		305,131		284,492
Tooling		177,704		173,039
Computer hardware and software		77,395		73,302
Construction in process		10,857		29,173

Subtotal		760,192		721,504
Less: accumulated depreciation		554,997		536,408

Total property, plant, and equipment, net	$	205,195	$	185,096

During fiscal years 2014, 2013, and 2012, the company recorded depreciation expense of $47,136, $48,207, and $46,840, respectively.

Goodwill and Indefinite-Life Intangible Assets

Other Long-Lived Assets

Accounts Payable

Insurance

Accrued Warranties

The changes in accrued warranties were as follows:


Fiscal years ended October 31		2014			2013

Beginning balance	$	72,177		$	69,848
Warranty provisions		41,608			41,067
Warranty claims		(38,568	)		(35,529	)
Changes in estimates		(4,137	)		(3,209	)

Ending balance	$	71,080		$	72,177

Derivatives

Foreign Currency Translation and Transactions

Income Taxes

Revenue Recognition

Sales Promotions and Incentives

Cost of Sales

Selling, General, and Administrative Expense

Cost of Financing Distributor/Dealer Inventory

Cost of Financing Distributor / Dealer Inventory

Advertising

Stock-Based Compensation

Net Earnings Per Share

Reconciliations of basic and diluted weighted-average shares of common stock outstanding are as follows:

BASIC

(Shares in thousands) Fiscal years ended October 31	2014	2013	2012

Weighted-average number of shares of common stock	56,346	57,898	59,440
Assumed issuance of contingent shares	13	24	6

Weighted-average number of shares of common stock and assumed issuance of contingent shares	56,359	57,922	59,446

DILUTED

(Shares in thousands) Fiscal years ended October 31	2014	2013	2012

Weighted-average number of shares of common stock and assumed issuance of contingent shares	56,359	57,922	59,446
Effect of dilutive securities	1,269	1,183	1,172

Weighted-average number of shares of common stock, assumed issuance of contingent and restricted shares, and effect of dilutive securities	57,628	59,105	60,618

Cash Flow Presentation

New Accounting Pronouncement Policy Adopted

New Accounting Pronouncements Adopted

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RELATED DATA (Tables)

12 Months Ended

Oct. 31, 2014

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RELATED DATA

Schedule of Inventories


		2014		2013

Raw materials and work in progress	$	95,144	$	87,668
Finished goods and service parts		246,954		217,796

Total FIFO value		342,098		305,464
Less: adjustment to LIFO value		67,495		65,375

Total	$	274,603	$	240,089

Schedule of property, plant and equipment


		2014		2013

Land and land improvements	$	32,731	$	27,632
Buildings and leasehold improvements		156,374		133,866
Machinery and equipment		305,131		284,492
Tooling		177,704		173,039
Computer hardware and software		77,395		73,302
Construction in process		10,857		29,173

Subtotal		760,192		721,504
Less: accumulated depreciation		554,997		536,408

Total property, plant, and equipment, net	$	205,195	$	185,096

Schedule of changes in accrued warranties


Fiscal years ended October 31		2014			2013

Beginning balance	$	72,177		$	69,848
Warranty provisions		41,608			41,067
Warranty claims		(38,568	)		(35,529	)
Changes in estimates		(4,137	)		(3,209	)

Ending balance	$	71,080		$	72,177

Reconciliations of basic and diluted weighted-average shares of common stock outstanding

BASIC

(Shares in thousands) Fiscal years ended October 31	2014	2013	2012

Weighted-average number of shares of common stock	56,346	57,898	59,440
Assumed issuance of contingent shares	13	24	6

Weighted-average number of shares of common stock and assumed issuance of contingent shares	56,359	57,922	59,446

DILUTED

(Shares in thousands) Fiscal years ended October 31	2014	2013	2012

Weighted-average number of shares of common stock and assumed issuance of contingent shares	56,359	57,922	59,446
Effect of dilutive securities	1,269	1,183	1,172

Weighted-average number of shares of common stock, assumed issuance of contingent and restricted shares, and effect of dilutive securities	57,628	59,105	60,618

INVESTMENT IN JOINT VENTURE (Tables)

12 Months Ended

Oct. 31, 2014

Investment in Joint Venture

INVESTMENT IN JOINT VENTURE


For the twelve months ended October 31		2014		2013		2012

Revenue	$	22,678	$	22,418	$	19,765
Net income		16,139		15,776		13,326


As of October 31		2014		2013

Finance receivables, net	$	290,927	$	260,319
Other assets		3,659		4,040
Total liabilities		261,527		234,804

OTHER INCOME, NET (Tables)

12 Months Ended

Oct. 31, 2014

OTHER INCOME, NET

Schedule of other income (expense)


Fiscal years ended October 31		2014			2013			2012

Interest income	$	465		$	447		$	786
Retail financing revenue		1,077			1,093			1,106
Foreign currency exchange rate loss		(1,006	)		(702	)		(1,786	)
Income from affiliates		7,262			7,097			5,996
Litigation recovery (settlements), net		127			3,071			(36	)
Miscellaneous		789			1,255			1,489

Total other income, net	$	8,714		$	12,261		$	7,555

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)

12 Months Ended

Oct. 31, 2014

Goodwill.

Changes in the net carrying amount of goodwill


		Professional Segment			Residential Segment			Total

Balance as of October 31, 2012	$	80,984		$	11,016		$	92,000
Translation adjustments		(22	)		(64	)		(86	)

Balance as of October 31, 2013	$	80,962		$	10,952		$	91,914
Translation adjustments		(16	)		(47	)		(63	)

Balance as of October 31, 2014	$	80,946		$	10,905		$	91,851

Components of other amortizable intangible assets


October 31, 2014	Estimated Life (Years)		Gross Carrying Amount		Accumulated Amortization			Net

Patents	1.5 - 13	$	10,711	$	(8,942	)	$	1,769
Non-compete agreements	1.5 - 10		7,039		(5,315	)		1,724
Customer-related	1.5 - 13		8,650		(5,517	)		3,133
Developed technology	1.5 - 10		28,841		(16,869	)		11,972
Trade names	1.5 - 5		1,515		(1,165	)		350
Other			800		(800	)		–

Total amortizable			57,556		(38,608	)		18,948

Non-amortizable – trade names			4,881		–			4,881

Total other intangible assets, net		$	62,437	$	(38,608	)	$	23,829


October 31, 2013	Estimated Life (Years)		Gross Carrying Amount		Accumulated Amortization			Net

Patents	1.5 - 13	$	10,213	$	(8,537	)	$	1,676
Non-compete agreements	1.5 - 10		6,849		(4,488	)		2,361
Customer-related	1.5 - 13		8,654		(4,660	)		3,994
Developed technology	1.5 - 10		28,224		(13,478	)		14,746
Trade names	1.5 - 5		1,515		(865	)		650
Other			800		(800	)		–

Total amortizable			56,255		(32,828	)		23,427

Non-amortizable – trade names			4,881		–			4,881

Total other intangible assets, net		$	61,136	$	(32,828	)	$	28,308

LONG-TERM DEBT (Tables)

12 Months Ended

Oct. 31, 2014

LONG-TERM DEBT.

Schedule of long-term debt


		2014		2013

Term loan, due October 25, 2019	$	130,000	$	–
7.800% Debentures, due June 15, 2027		100,000		100,000
6.625% Senior Notes, due May 1, 2037		123,606		123,544
Other		350		–

Total long-term debt		353,956		223,544
Less current portion		6,640		–

Long-term debt, less current portion	$	347,316	$	223,544

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6479336&loc=d3e64711-112823

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=34725769&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=6451184&loc=d3e28541-108399

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6451184&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21521-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 22
-Article 5

+ Details

STOCKHOLDERS' EQUITY (Tables)

12 Months Ended

Oct. 31, 2014

Stockholders' Equity

Schedule of components of accumulated other comprehensive loss ("AOCL"), net of tax, within the consolidated statements of stockholders' equity


As of October 31		2014			2013		2012

Foreign currency translation adjustments	$	12,536		$	7,778	$	5,436
Pension and postretirement benefits		5,266			3,683		4,328
Derivative instruments		(2,097	)		1,109		210

Total accumulated other comprehensive loss	$	15,705		$	12,570	$	9,974

Schedule of components and activity of accumulated other comprehensive loss


		Foreign Currency Translation Adjustments		Pension and Post- retirement Benefits			Cash Flow Derivative Instruments			Total

AOCL as of October 31, 2012	$	5,436	$	4,328		$	210		$	9,974
Other comprehensive loss before reclassifications		2,342		–			1,870			4,212
Amounts reclassified from AOCL		–		(645	)		(971	)		(1,616	)

Net current period other comprehensive loss (income)	$	2,342	$	(645	)	$	899		$	2,596

AOCL as of October 31, 2013	$	7,778	$	3,683		$	1,109		$	12,570

Other comprehensive loss before reclassifications	$	4,758	$	–		$	(1,644	)	$	3,114
Amounts reclassified from AOCL		–		1,583			(1,562	)		21

Net current period other comprehensive loss (income)	$	4,758	$	1,583		$	(3,206	)	$	3,135

AOCL as of October 31, 2014	$	12,536	$	5,266		$	(2,097	)	$	15,705

INCOME TAXES (Tables)

12 Months Ended

Oct. 31, 2014

INCOME TAXES

Schedule of reconciliation of the statutory federal income tax rate to the company's consolidated effective tax rate


Fiscal years ended October 31	2014		2013		2012

Statutory federal income tax rate	35.0	%	35.0	%	35.0	%
Increase (reduction) in income taxes resulting from:
Domestic manufacturer's deduction	(1.9	)	(2.0	)	(2.0	)
State and local income taxes, net of federal income tax benefit	1.5		1.5		1.5
Effect of foreign source income	(1.2	)	(0.3	)	0.2
Domestic research tax credit	(0.2	)	(2.4	)	(0.2	)
Other, net	(1.0	)	(0.1	)	(0.5	)

Consolidated effective tax rate	32.2	%	31.7	%	34.0	%

Schedule of components of the provision for income taxes


Fiscal years ended October 31		2014			2013			2012

Provision for income taxes:
Current –
Federal	$	75,815		$	61,388		$	59,405
State		5,997			5,108			4,609
Non-U.S.		3,672			5,734			3,854

Current provision	$	85,484		$	72,230		$	67,868

Deferred –
Federal	$	(3,047	)	$	824		$	(685	)
State		(81	)		91			(132	)
Non-U.S.		219			(1,277	)		(330	)

Deferred benefit		(2,909	)		(362	)		(1,147	)

Total provision for income taxes	$	82,575		$	71,868		$	66,721

Schedule of earnings before income taxes


Fiscal years ended October 31		2014		2013		2012

Earnings before income taxes:
U.S.	$	239,501	$	213,509	$	189,206
Non-U.S.		16,944		13,204		7,056

Total	$	256,445	$	226,713	$	196,262

Schedule of tax effects of temporary differences that give rise to the net deferred income tax assets


October 31		2014			2013

Deferred tax assets (liabilities):
Allowance for doubtful accounts	$	858		$	1,635
Inventory items		3,918			3,969
Compensation and other accruals		40,932			38,168
Employee benefits		20,374			18,315
Depreciation		3,093			(2,467	)
Other		3,734			5,550

Deferred tax assets	$	72,909		$	65,170
Valuation allowance		(4,012	)		(5,572	)

Net deferred tax assets	$	68,897		$	59,598

Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits


Balance as of October 31, 2013	$	4,506
Decrease as a result of tax positions taken during a prior period		(164	)
Increase as a result of tax positions taken during the current period		726
Decrease relating to settlements with taxing authorities		(26	)

Balance as of October 31, 2014	$	5,042

STOCK-BASED COMPENSATION PLANS (Tables)

12 Months Ended

Oct. 31, 2014

Stock-Based Compensation

Schedule of compensation costs related to stock-based awards


Fiscal years ended October 31		2014		2013		2012

Stock option awards	$	5,142	$	4,710	$	4,200
Restricted stock and restricted stock units		1,653		1,694		1,721
Performance share awards		4,496		3,833		3,582

Total compensation cost for stock-based awards	$	11,291	$	10,237	$	9,503

Tax benefit realized for tax deductions from stock-based awards	$	12,988	$	10,614	$	13,266

Schedule of stock options activity


	Stock Option Awards			Weighted- Average Exercise Price	Weighted- Average Contractual Life(years)		Intrinsic Value

Outstanding as of October 31, 2013	3,069,778		$	25.55	5.9	$	102,493
Granted	288,832			59.45	—		—
Exercised	(302,266	)		22.19	—		—
Cancelled	(6,692	)		59.50	—		—

Outstanding as of October 31, 2014	3,049,652		$	29.04	5.4	$	99,713

Exercisable as of October 31, 2014	2,338,853		$	23.98	4.6	$	88,289

Schedule of total market value and the intrinsic value of options exercised


Fiscal years ended October 31		2014		2013		2012

Market value of stock options exercised	$	19,017	$	23,160	$	35,901
Intrinsic value of options exercised		12,311		13,875		16,061

Schedule of valuation assumptions of stock-based compensation


Fiscal years ended October 31	2014	2013	2012

Expected life of option in years	6	6	6
Expected volatility	34.28% – 34.42%	35.18% – 35.19%	34.87% – 35.02%
Weighted-average volatility	34.29%	35.19%	35.01%
Risk-free interest rate	1.92%	0.88%	1.20%
Expected dividend yield	1.25% – 1.27%	1.04% – 1.07%	1.31% – 1.40%
Weighted-average dividend yield	1.25%	1.07%	1.32%

Weighted-average fair value at date of grant	$18.69	$13.03	$8.56

Schedule of restricted stock and restricted stock unit awards granted


Fiscal years ended October 31		2014		2013		2012

Weighted-average fair value at date of grant	$	63.05	$	46.10	$	33.61
Fair value of restricted stock and restricted stock units vested		1,890		1,207		967

Schedule of unvested restricted stock shares and the weighted average fair value at the date of grant


	Restricted Stock and Units			Weighted- Average Fair Value at Date of Grant

Unvested as of October 31, 2013	109,288		$	36.32
Granted	29,975			63.05
Vested	(58,047	)		32.43
Forfeited	(2,687	)		41.93

Unvested as of October 31, 2014	78,529		$	49.22

Schedule of performance share awards granted


Fiscal years ended October 31		2014		2013		2012

Weighted-average fair value at date of grant	$	59.31	$	42.06	$	28.24
Fair value of performance share awards vested		7,926		9,057		1,828

Schedule of unvested performance share awards and the weighted average fair value at the date of grant


	Performance Shares			Weighted- Average Fair Value at Date of Grant

Unvested as of October 31, 2013	520,800		$	33.41
Granted	121,600			60.19
Vested	(133,640	)		31.76
Cancelled	(31,960	)		31.76

Unvested as of October 31, 2014	476,800		$	40.82

EMPLOYEE RETIREMENT PLANS (Tables)

12 Months Ended

Oct. 31, 2014

EMPLOYEE RETIREMENT PLANS

Schedule of amounts recognized in accumulated other comprehensive loss


Fiscal years ended October 31		Defined Benefit Pension Plans		Postretirement Benefit Plan			Total

2014
Net actuarial loss	$	4,521	$	513		$	5,034
Net prior service cost (credit)		257		(25	)		232

Accumulated other comprehensive loss	$	4,778	$	488		$	5,266

2013
Net actuarial loss	$	2,915	$	611		$	3,526
Net prior service cost (credit)		289		(132	)		157

Accumulated other comprehensive loss	$	3,204	$	479		$	3,683

Schedule of amounts included in accumulated other comprehensive loss and are expected to be recognized as components of net periodic benefit cost during next fiscal year


		Defined Benefit Pension Plans		Postretirement Benefit Plan			Total

Net actuarial loss	$	570	$	2		$	572
Net prior service cost (credit)		51		(41	)		10

Total	$	621	$	(39	)	$	582

Schedule of amounts recognized in net periodic benefit cost and other comprehensive income


Fiscal years ended October 31		Defined Benefit Pension Plans			Postretirement Benefit Plan			Total

2014
Net actuarial gain	$	88		$	(89	)	$	(1	)
Amortization of unrecognized prior service (credit) cost		(32	)		106			74
Amortization of unrecognized actuarial loss (gain)		1,519			(9	)		1,510

Total recognized in other comprehensive loss	$	1,575		$	8		$	1,583

Total recognized in net periodic benefit cost and other comprehensive loss	$	2,110		$	565		$	2,675

2013
Net actuarial gain	$	(1,170	)	$	(283	)	$	(1,453	)
Amortization of unrecognized prior service (credit) cost		(34	)		106			72
Amortization of unrecognized actuarial loss (gain)		768			(32	)		736

Total recognized in other comprehensive loss (income)	$	(436	)	$	(209	)	$	(645	)

Total recognized in net periodic benefit cost and other comprehensive loss	$	117		$	387		$	504

SEGMENT DATA (Tables)

12 Months Ended

Oct. 31, 2014

Segment Data

Summarized financial information concerning the company's reportable segments


Fiscal years ended October 31		Professional		Residential		Other			Total

2014
Net sales	$	1,477,578	$	672,443	$	22,670		$	2,172,691
Intersegment gross sales		41,376		424		(41,800	)		–
Earnings (loss) before income taxes		276,305		76,916		(96,776	)		256,445
Total assets		573,086		172,984		446,345			1,192,415
Capital expenditures		25,226		12,417		33,495			71,138
Depreciation and amortization		34,228		8,883		10,027			53,138

2013
Net sales	$	1,425,259	$	594,411	$	21,761		$	2,041,431
Intersegment gross sales		40,416		402		(40,818	)		–
Earnings (loss) before income taxes		254,424		62,033		(89,744	)		226,713
Total assets		528,926		167,918		305,904			1,002,748
Capital expenditures		32,362		7,838		9,227			49,427
Depreciation and amortization		34,706		10,321		9,107			54,134

2012
Net sales	$	1,329,504	$	607,435	$	21,751		$	1,958,690
Intersegment gross sales		37,324		26		(37,350	)		–
Earnings (loss) before income taxes		232,104		57,889		(93,731	)		196,262
Total assets		527,159		169,899		238,141			935,199
Capital expenditures		29,313		4,164		9,765			43,242
Depreciation and amortization		34,876		10,919		7,839			53,634

Summary of the components of the loss before income taxes included in "Other"


Fiscal years ended October 31		2014			2013			2012

Corporate expenses	$	(88,539	)	$	(85,359	)	$	(81,376	)
Interest expense		(15,426	)		(16,210	)		(16,906	)
Other income		7,189			11,825			4,551

Total	$	(96,776	)	$	(89,744	)	$	(93,731	)

Schedule of net sales for groups of similar products and services


Fiscal years ended October 31		2014		2013		2012

Equipment	$	1,765,845	$	1,649,489	$	1,586,864
Irrigation and lighting		406,846		391,942		371,826

Total	$	2,172,691	$	2,041,431	$	1,958,690

Schedule of geographic area data


Fiscal years ended October 31		United States		Foreign Countries		Total

2014
Net sales	$	1,550,077	$	622,614	$	2,172,691
Long-lived assets		169,797		35,398		205,195

2013
Net sales	$	1,426,060	$	615,371	$	2,041,431
Long-lived assets		143,547		41,549		185,096

2012
Net sales	$	1,364,377	$	594,313	$	1,958,690
Long-lived assets		137,708		42,815		180,523

FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Oct. 31, 2014

FINANCIAL INSTRUMENTS

Fair value of the company's derivatives and consolidated balance sheet location

Asset Derivatives

Liability Derivatives

October 31, 2014

October 31, 2013

October 31, 2014

October 31, 2013

Balance
Sheet
Location

Fair
Value

Balance
Sheet
Location

Fair
Value

Balance
Sheet
Location

Fair
Value

Balance
Sheet
Location

Fair
Value

Derivatives Designated as Hedging Instruments

Forward currency contracts

Prepaid expenses

4,626

Prepaid expenses

558

Accrued liabilities

1,381

Cross currency contract

Prepaid expenses

831

Prepaid expenses

–

Accrued liabilities

–

Accrued liabilities

326

Derivatives Not Designated as Hedging Instruments

Forward currency contracts

Prepaid expenses

1,404

Prepaid expenses

708

Accrued liabilities

–

Accrued liabilities

550

Cross currency contract

Prepaid expenses

–

Prepaid expenses

–

Accrued liabilities

536

Accrued liabilities

117

Total Derivatives

6,861

1,266

545

2,374

Impact of derivative instruments on the consolidated statements of earnings for the company's derivatives designated as cash flow hedging instruments


	Gain (Loss) Recognized in OCI on Derivatives, net of tax (Effective Portion)						Location of Gain (Loss) Reclassified from AOCL into Income (Effective Portion)	Gain (Loss) Reclassified from AOCL into Income (Effective Portion)						Location of Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion and excluded from Effectiveness Testing)	Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion and Excluded from Effectiveness Testing)
Fiscal years ended		October 31, 2014			October 31, 2013				October 31, 2014			October 31, 2013				October 31, 2014		October 31, 2013

Forward currency contracts	$	4,150		$	7		Net sales	$	(1,128	)	$	(805	)	Other income, net	$	120	$	648

Forward currency contracts		(712	)		(231	)	Cost of sales		103			473
Cross currency contracts		(238	)		(680	)	Other income, net		(537	)		(639	)

Total	$	3,200		$	(904	)	Total	$	(1,562	)	$	(971	)

Impact of derivative instruments on the consolidated statements of earnings for the company's derivatives not designated as hedging instruments


		Gain (Loss) Recognized in Net Earnings Fiscal Year Ended
	Location of Gain (Loss) Recognized in Net Earnings		October 31, 2014		October 31, 2013

Forward currency contracts	Other income, net	$	3,555	$	(1,402	)
Cross currency contracts	Other income, net		951		(483	)

Total		$	4,506	$	(1,885	)

Schedule of effects of the master netting arrangements on the fair value of the company's derivative contracts that are recorded in the Consolidated Balance Sheets


	Assets							Liabilities
October 31, 2014		Gross Amounts of Recognized Assets		Gross Liabilities Offset in the Balance Sheet			Net Amount of Assets Presented in the Balance Sheet		Gross Amounts of Recognized Liabilities		Gross Assets offset in the Balance Sheet		Net Amount of Liabilities Presented in the Balance Sheet

Forward currency contracts	$	6,265	$	(235	)	$	6,030	$	(9	)	–	$	(9	)
Cross currency contracts		831		–			831		(536	)	–		(536	)

Total	$	7,096	$	(235	)	$	6,861	$	(545	)	–	$	(545	)


	Assets					Liabilities
October 31, 2013		Gross Amounts of Recognized Assets	Gross Liabilities Offset in the Balance Sheet		Net Amount of Assets Presented in the Balance Sheet		Gross Amounts of Recognized Liabilities			Gross Assets offset in the Balance Sheet		Net Amount of Liabilities Presented in the Balance Sheet

Forward currency contracts	$	1,266	–	$	1,266	$	(1,968	)	$	37	$	(1,931	)
Cross currency contracts		–	–		–		(443	)		–		(443	)

Total	$	1,266	–	$	1,266	$	(2,411	)	$	37	$	(2,374	)

Assets and liabilities measured at fair value on a recurring basis


October 31, 2014		Fair Value		Level 1		Level 2	Level 3

Assets:
Cash and cash equivalents	$	314,873	$	314,873	$	–	–
Forward currency contracts		6,030		–		6,030	–
Cross currency contracts		831		–		831	–

Total assets	$	321,734	$	314,873	$	6,861	–

Liabilities:
Forward currency contracts	$	9		–	$	9	–
Cross currency contracts		536		–		536	–
Deferred compensation liabilities		2,141		–		2,141	–

Total liabilities	$	2,686		–	$	2,686	–


October 31, 2013		Fair Value		Level 1		Level 2	Level 3

Assets:
Cash and cash equivalents	$	182,993	$	182,993	$	–	–
Forward currency contracts		1,266		–		1,266	–

Total assets	$	184,259	$	182,993	$	1,266	–

Liabilities:
Forward currency contracts	$	1,931		–	$	1,931	–
Cross currency contracts		443		–		443	–
Deferred compensation liabilities		2,777		–		2,777	–

Total liabilities	$	5,151		–	$	5,151	–

QUARTERLY FINANCIAL DATA (Tables)

12 Months Ended

Oct. 31, 2014

QUARTERLY FINANCIAL DATA (unaudited)

Summary of quarterly financial data


Fiscal year ended October 31, 2014 Quarter		First		Second		Third		Fourth

Net sales	$	445,981	$	745,030	$	567,540	$	414,140
Gross profit		163,514		264,540		202,080		143,137
Net earnings		25,869		87,086		50,013		10,902
Basic net earnings per share1		0.45		1.54		0.89		0.19
Diluted net earnings per share1		0.44		1.51		0.87		0.19


Fiscal year ended October 31, 2013 Quarter		First		Second		Third		Fourth

Net sales	$	444,661	$	704,486	$	509,918	$	382,366
Gross profit		165,817		252,301		178,031		128,648
Net earnings		31,396		78,402		40,097		4,950
Basic net earnings per share1		0.54		1.35		0.70		0.09
Diluted net earnings per share1		0.53		1.32		0.68		0.08

1	Net earnings per share amounts do not sum to equal full year total due to changes in the number of shares outstanding during the periods and rounding.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RELATED DATA (Details) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2014	Oct. 31, 2013	Oct. 31, 2012
Cash and Cash Equivalents
Restricted cash and short-term investments	$ 56,418
Inventory Valuations
Percentage of total inventory valued under FIFO method	28.00%	33.00%
Effect of LIFO inventory layers reduction on cost of sales	$ 65	$ 122	$ 0
Inventories
Raw materials and work in process	95,144	87,668
Finished goods and service parts	246,954	217,796
Total FIFO value	342,098	305,464
Less: adjustment to LIFO value	67,495	65,375
Total	$ 274,603	$ 240,089

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RELATED DATA (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2014	Oct. 31, 2013	Oct. 31, 2012
Property and Depreciation
Capitalized interest amount	$ 1,710	$ 722	$ 256
Subtotal	760,192	721,504
Less: accumulated depreciation	554,997	536,408
Property, plant, and equipment, net	205,195	185,096	180,523
Depreciation expense	47,136	48,207	$ 46,840
Buildings including leasehold improvements
Property and Depreciation
Subtotal	$ 156,374	133,866
Buildings including leasehold improvements \| Minimum
Property and Depreciation
Estimated useful life	10 years
Buildings including leasehold improvements \| Maximum
Property and Depreciation
Estimated useful life	45 years
Equipment \| Minimum
Property and Depreciation
Estimated useful life	2 years
Equipment \| Maximum
Property and Depreciation
Estimated useful life	7 years
Tooling costs
Property and Depreciation
Subtotal	$ 177,704	173,039
Tooling costs \| Minimum
Property and Depreciation
Estimated useful life	3 years
Tooling costs \| Maximum
Property and Depreciation
Estimated useful life	5 years
Software and website development costs \| Minimum
Property and Depreciation
Estimated useful life	2 years
Software and website development costs \| Maximum
Property and Depreciation
Estimated useful life	5 years
Land and land improvements
Property and Depreciation
Subtotal	$ 32,731	27,632
Machinery and equipment
Property and Depreciation
Subtotal	305,131	284,492
Computer hardware and software
Property and Depreciation
Subtotal	77,395	73,302
Construction in process
Property and Depreciation
Subtotal	$ 10,857	$ 29,173

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RELATED DATA (Details 3) shares in Thousands, $ in Thousands	12 Months Ended
	Oct. 31, 2014 USD ($) segment item shares	Oct. 31, 2013 USD ($) shares	Oct. 31, 2012 USD ($) shares
Goodwill and Indefinite-Life Intangible Assets
Number of operating segment \| segment	8
Number of reporting units containing goodwill \| item	6
Impairment charges write down of indefinite-life intangible asset			$ 400
Other Long-Lived Assets
Impairment of Long-Lived Assets Held-for-use			386
Accelerated depreciation expense		$ 824	305
Accounts Payable
Minimum number of payment obligations to be financed \| item	1
Outstanding payment obligations placed on the accounts payable tracking system	$ 12,296	16,572
Changes in accrued warranties
Beginning balance	72,177	69,848
Warranty Provisions	41,608	41,067
Warranty Claims	(38,568)	(35,529)
Changes in estimates	(4,137)	(3,209)
Ending balance	71,080	72,177	69,848
Revenue Recognition
Consignment inventory amount	$ 22,080	18,283
Cost of Financing Distributor/Dealer Inventory
Number of fiscal years the entity has repurchased immaterial amounts of inventory under repurchase agreements	3 years
Financing costs for distributor and dealer inventories	$ 21,800	19,729	19,492
Advertising
Advertising costs	$ 43,590	$ 48,071	$ 46,947
Basic
Weighted-average number of shares of common stock \| shares	56,346	57,898	59,440
Assumed issuance of contingent shares \| shares	13	24	6
Weighted-average number of shares of common stock and assumed issuance of contingent shares \| shares	56,359	57,922	59,446
Diluted
Weighted-average number of shares of common stock and assumed issuance of contingent shares \| shares	56,359	57,922	59,446
Effect of dilutive securities (in shares) \| shares	1,269	1,183	1,172
Weighted-average number of shares of common stock, assumed issuance of contingent shares and effect of dilutive securities \| shares	57,628	59,105	60,618
Options, restricted stock, and restricted stock units, excluded from the diluted earnings per share \| shares	259,925	182,868	33,427
Minimum
Finite-Lived Intangible Assets
Estimated life	1 year 6 months
Maximum
Finite-Lived Intangible Assets
Estimated life	13 years

ACQUITIONS (Details) - USD ($) $ in Thousands		12 Months Ended
ACQUITIONS (Details) - USD ($) $ in Thousands	Nov. 14, 2014	Oct. 31, 2014	Oct. 31, 2013	Oct. 31, 2012
Acquisition
Term loan		$ 223,956	$ 223,544
Short-term debt		20,818
Fiscal 2015 Acquisitions \| Subsequent Event
Acquisition
Purchase price	$ 227,882
Cash consideration	197,882
Long-term loan	30,000
Term loan	130,000
Short-term debt	20,000
Acquisition related costs	509
Deferred Finance Costs, Noncurrent, Gross	$ 373
Fiscal 2014 Acquisitions
Acquisition
Purchase price		1,245
Fiscal 2013 Acquisitions
Acquisition
Purchase price			3,481
Cash consideration		$ 1,380	$ 2,101
Fiscal 2012 Acquisitions
Acquisition
Purchase price				$ 11,112

INVESTMENT IN JOINT VENTURE (Details) - Red Iron Acceptance, LLC - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2014	Oct. 31, 2013	Oct. 31, 2012
Schedule of Equity Method Investments
Period of unlimited automatic extensions after the initial term of joint venture	2 years
Period of notice to be given by parties under the joint venture for not extending the initial term or any subsequent term of joint venture	1 year
Portion owned by Toro (as a percent)	45.00%
Portion owned by TCFIF (as a percent)	55.00%
Secured revolving credit facility	$ 450,000
Investment in joint venture	14,890	$ 13,300
Maximum aggregate amount of products repossessed by Red Iron and the TCFIF Canadian affiliate, entity has agreed to repurchase in a calendar year	7,500
Maximum amount of recourse provided to joint venture for outstanding receivables	470	465
Net amount of new receivables financed for dealers and distributors	1,280,505	1,211,470	$ 1,191,343
Summarized financial information for Red Iron
Revenue	22,678	22,418	19,765
Net income	16,139	15,776	$ 13,326
Finance receivables, net	290,927	260,319
Other assets	3,659	4,040
Total liabilities	$ 261,527	$ 234,804

OTHER INCOME, NET (Details) - USD ($) $ in Thousands	12 Months Ended
OTHER INCOME, NET (Details) - USD ($) $ in Thousands	Oct. 31, 2014	Oct. 31, 2013	Oct. 31, 2012
OTHER INCOME, NET
Interest income	$ 465	$ 447	$ 786
Retail financing revenue	1,077	1,093	1,106
Foreign currency exchange rate loss	(1,006)	(702)	(1,786)
Income from affiliates	7,262	7,097	5,996
Litigation recovery (settlements), net	127	3,071	(36)
Miscellaneous	789	1,255	1,489
Total other income	$ 8,714	$ 12,261	$ 7,555

GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2014	Oct. 31, 2013
Changes in Goodwill
Goodwill at the beginning of the period	$ 91,914	$ 92,000
Translation adjustments	(63)	(86)
Goodwill at the end of the period	91,851	91,914
Professional
Changes in Goodwill
Goodwill at the beginning of the period	80,962	80,984
Translation adjustments	(16)	(22)
Goodwill at the end of the period	80,946	80,962
Residential
Changes in Goodwill
Goodwill at the beginning of the period	10,952	11,016
Translation adjustments	(47)	(64)
Goodwill at the end of the period	$ 10,905	$ 10,952

GOODWILL AND OTHER INTANGIBLE ASSETS (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2014	Oct. 31, 2013	Oct. 31, 2012
Other Intangible Assets
Gross Carrying Amount	$ 57,556	$ 56,255
Accumulated Amortization	(38,608)	(32,828)
Net	18,948	23,427
Non-amortizable - trade names	4,881	4,881
Total other intangible assets, gross	62,437	61,136
Total other intangible assets, net	23,829	28,308
Change in gross carrying amount of other intangible assets	1,301
Amortization of Intangible Assets	6,002	5,769	$ 6,008
Fiscal 2015	5,610
Fiscal 2016	5,091
Fiscal 2017	4,196
Fiscal 2017	2,168
Fiscal 2019	1,191
After fiscal 2019	692
Patents
Other Intangible Assets
Gross Carrying Amount	10,711	10,213
Accumulated Amortization	(8,942)	(8,537)
Net	$ 1,769	$ 1,676
Patents \| Minimum
Other Intangible Assets
Estimated life	1 year 6 months	1 year 6 months
Patents \| Maximum
Other Intangible Assets
Estimated life	13 years	13 years
Non-compete agreements
Other Intangible Assets
Gross Carrying Amount	$ 7,039	$ 6,849
Accumulated Amortization	(5,315)	(4,488)
Net	$ 1,724	$ 2,361
Non-compete agreements \| Minimum
Other Intangible Assets
Estimated life	1 year 6 months	1 year 6 months
Non-compete agreements \| Maximum
Other Intangible Assets
Estimated life	10 years	10 years
Customer-related
Other Intangible Assets
Gross Carrying Amount	$ 8,650	$ 8,654
Accumulated Amortization	(5,517)	(4,660)
Net	$ 3,133	$ 3,994
Customer-related \| Minimum
Other Intangible Assets
Estimated life	1 year 6 months	1 year 6 months
Customer-related \| Maximum
Other Intangible Assets
Estimated life	13 years	13 years
Developed technology
Other Intangible Assets
Gross Carrying Amount	$ 28,841	$ 28,224
Accumulated Amortization	(16,869)	(13,478)
Net	$ 11,972	$ 14,746
Developed technology \| Minimum
Other Intangible Assets
Estimated life	1 year 6 months	1 year 6 months
Developed technology \| Maximum
Other Intangible Assets
Estimated life	10 years	10 years
Trade names
Other Intangible Assets
Gross Carrying Amount	$ 1,515	$ 1,515
Accumulated Amortization	(1,165)	(865)
Net	$ 350	$ 650
Trade names \| Minimum
Other Intangible Assets
Estimated life	1 year 6 months	1 year 6 months
Trade names \| Maximum
Other Intangible Assets
Estimated life	5 years	5 years
Other
Other Intangible Assets
Gross Carrying Amount	$ 800	$ 800
Accumulated Amortization	$ (800)	$ (800)

SHORT-TERM CAPITAL RESOURCES (Details) $ in Thousands	1 Months Ended	12 Months Ended
SHORT-TERM CAPITAL RESOURCES (Details) $ in Thousands	Oct. 31, 2014 USD ($)	Oct. 31, 2014 USD ($)	Oct. 31, 2013
Short-term capital resources
Outstanding short-term debt	$ 20,818	$ 20,818
Ratio of debt to EBITDA, maximum		2.75	2.75
Limit to cash dividends paid and stock repurchased (per fiscal year) if debt to EBITDA ratio exceeds 2.75	$ 50,000	$ 50,000
Weighted-average interest rate	1.95%	1.95%
Unsecured senior five-year revolving credit facility
Short-term capital resources
Line of Credit Facility, Maximum Borrowing Capacity	$ 150,000	$ 150,000
Credit facility term (in years)		5 years
Increase in the credit agreement's borrowing capacity available under the approval of named borrowers	$ 100,000	$ 100,000
Description of variable base interest rate		LIBOR
Ratio of debt to EBITDA, maximum	3.25
Standby letters of credit
Short-term capital resources
Line of Credit Facility, Maximum Borrowing Capacity	$ 20,000	$ 20,000
Swingline loans
Short-term capital resources
Line of Credit Facility, Maximum Borrowing Capacity	20,000	20,000
Non-U.S.Operations \| Non-U.S. operations, unsecured short-term lines of credit
Short-term capital resources
Line of Credit Facility, Maximum Borrowing Capacity	$ 13,257	$ 13,257

LONG-TERM DEBT (Details) $ in Thousands	1 Months Ended		12 Months Ended
LONG-TERM DEBT (Details) $ in Thousands	Oct. 31, 2014 USD ($)	Jun. 30, 1997 USD ($) item	Oct. 31, 2014 USD ($)	Oct. 31, 2013 USD ($)	Apr. 26, 2007 USD ($)
LONG-TERM DEBT
Total long-term debt	$ 353,956		$ 353,956	$ 223,544
Current portion of long-term debt	6,640		6,640
Long-term debt, less current portion	347,316		347,316	223,544
Other assets, excess termination fees over deferred income	1,995		1,995
Principal payments on long-term debt in fiscal years
2015	6,640		6,640
2016	13,140		13,140
2017	13,070		13,070
2018	13,000		13,000
2019	84,500		84,500
After 2019	225,000		225,000
Term loan
LONG-TERM DEBT
Total long-term debt	$ 130,000		130,000
Debt Instrument, Description of Variable Rate Basis	LIBOR
7.800% Debentures, due June 15, 2027
LONG-TERM DEBT
Total long-term debt	$ 100,000		$ 100,000	100,000
Aggregate principal amount of notes issued		$ 175,000
Interest rate percentage	7.80%		7.80%
Amount paid to terminate forward-starting interest rate swap agreements		$ 23,688
Number of terminated forward-starting interest rate swap agreements \| item		3
Derivative, Notional Amount		$ 125,000
Deferred income amount at the time of swap termination		$ 18,710
6.625% Senior Notes, due May 1, 2037
LONG-TERM DEBT
Total long-term debt	$ 123,606		$ 123,606	$ 123,544
Aggregate principal amount of notes issued					$ 125,000
Interest rate percentage	6.625%		6.625%		6.625%
Percentage of par value at which debt was issued					98.513%
Debt discount, unamortized					$ 1,859
Total underwriting fee and direct debt issue costs					$ 1,524
Effective interest rate (as a percent)	6.741%		6.741%
Redemption value, basis points added to the treasury rate (as a percent)			0.30%
Redemption price as a percentage of the principal amount upon the occurrence of both a change of control and downgrade of rating (as a percent)			101.00%
Other.
LONG-TERM DEBT
Total long-term debt	$ 350		$ 350

STOCKHOLDERS' EQUITY (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Oct. 31, 2014	Oct. 31, 2013	Oct. 31, 2012	Mar. 12, 2013	Dec. 11, 2012
Stockholders' Equity
Common stock, par value (in dollars per share)	$ 1.00	$ 1.00
Common stock, authorized shares before amendment to Restated Certificate of Incorporation				100,000,000
Common stock, authorized shares	175,000,000	175,000,000		175,000,000
Stock repurchase program
Amount paid to repurchase the shares (in dollars)	$ 103,039	$ 99,588	$ 93,395
Repurchase of shares	1,644,230	2,147,185	2,604,525
Treasury shares held	22,386,021	21,275,717
Cost of treasury shares (in dollars)	$ 1,163,706	$ 1,081,086
Stock repurchase program
Stock repurchase program
Number of shares authorized to be repurchased					5,000,000
Amount paid to repurchase the shares (in dollars)	$ 101,674	$ 98,842	$ 92,719
Repurchase of shares	1,622,569	2,131,615	2,591,039
Number of shares remained authorized for repurchase	2,720,493

STOCKHOLDERS' EQUITY (Details 2) - USD ($) $ in Thousands	Oct. 31, 2014	Oct. 31, 2013	Oct. 31, 2012
Accumulated other comprehensive loss (AOCL)
Foreign currency translation adjustments	$ 12,536	$ 7,778	$ 5,436
Pension and postretirement benefits	5,266	3,683	4,328
Derivative instruments	(2,097)	1,109	210
Total accumulated other comprehensive loss	$ 15,705	$ 12,570	$ 9,974

- Definition

Accumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at period end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, unrealized gains and losses on certain investments in debt and equity securities, other than temporary impairment (OTTI) losses related to factors other than credit losses on available-for-sale and held-to-maturity debt securities that an entity does not intend to sell and it is not more likely than not that the entity will be required to sell before recovery of the amortized cost basis, as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge.

+ References + Details

STOCKHOLDERS' EQUITY (Details 3) - USD ($) $ in Thousands	12 Months Ended
STOCKHOLDERS' EQUITY (Details 3) - USD ($) $ in Thousands	Oct. 31, 2014	Oct. 31, 2013
Components and activity of accumulated other comprehensive loss
Balance at the beginning of the period	$ 12,570	$ 9,974
Other comprehensive loss before reclassifications	3,114	4,212
Amounts reclassified from AOCL	21	(1,616)
Net current period other comprehensive loss (income)	3,135	2,596
Balance at the end of the period	15,705	12,570
Foreign Currency Translation Adjustments
Components and activity of accumulated other comprehensive loss
Balance at the beginning of the period	7,778	5,436
Other comprehensive loss before reclassifications	4,758	2,342
Net current period other comprehensive loss (income)	4,758	2,342
Balance at the end of the period	12,536	7,778
Pension and Post-retirement Benefits
Components and activity of accumulated other comprehensive loss
Balance at the beginning of the period	3,683	4,328
Amounts reclassified from AOCL	1,583	(645)
Net current period other comprehensive loss (income)	1,583	(645)
Balance at the end of the period	5,266	3,683
Cash Flow Derivative Instruments
Components and activity of accumulated other comprehensive loss
Balance at the beginning of the period	1,109	210
Other comprehensive loss before reclassifications	(1,644)	1,870
Amounts reclassified from AOCL	(1,562)	(971)
Net current period other comprehensive loss (income)	(3,206)	899
Balance at the end of the period	$ (2,097)	$ 1,109

- Definition

+ References + Details

INCOME TAXES (Details) - USD ($) $ in Thousands	12 Months Ended
INCOME TAXES (Details) - USD ($) $ in Thousands	Oct. 31, 2014	Oct. 31, 2013	Oct. 31, 2012
Reconciliation of the statutory federal income tax rate to consolidated effective tax rate
Statutory federal income tax rate (as a percent)	35.00%	35.00%	35.00%
Increase (reduction) in income taxes resulting from:
Domestic manufacturer's deduction (as a percent)	(1.90%)	(2.00%)	(2.00%)
State and local income taxes, net of federal income tax benefit (as a percent)	1.50%	1.50%	1.50%
Effect of foreign source income (as a percent)	(1.20%)	(0.30%)	0.20%
Domestic research tax credit (as a percent)	(0.20%)	(2.40%)	(0.20%)
Other, net (as a percent)	(1.00%)	(0.10%)	(0.50%)
Consolidated effective tax rate (as a percent)	32.20%	31.70%	34.00%
Current
Federal	$ 75,815	$ 61,388	$ 59,405
State	5,997	5,108	4,609
Non-U.S.	3,672	5,734	3,854
Current provision	85,484	72,230	67,868
Deferred
Federal	(3,047)	824	(685)
State	(81)	91	(132)
Non-U.S.	219	(1,277)	(330)
Deferred benefit	(2,909)	(362)	(1,147)
Total provision for income taxes	82,575	71,868	66,721
Earnings before income taxes:
U.S.	239,501	213,509	189,206
Non-U.S.	16,944	13,204	7,056
Earnings before income taxes	256,445	226,713	196,262
Adjustment to stockholders' equity for tax benefits related to employee stock-based award transactions	8,857	6,134	$ 9,017
Deferred tax assets (liabilities):
Allowance for doubtful accounts	858	1,635
Inventory items	3,918	3,969
Compensation and other accruals	40,932	38,168
Employee benefits	20,374	18,315
Depreciation	3,093	(2,467)
Other	3,734	5,550
Deferred tax assets	72,909	65,170
Valuation allowance	(4,012)	(5,572)
Net deferred tax assets	68,897	59,598
Accumulated undistributed earnings attributable to foreign subsidiaries considered to be indefinitely invested	64,513
Deferred tax liability provided for undistributed earnings from subsidiaries outside the United States	0
Reconciliation of unrecognized tax benefits
Balance at the beginning of the period	4,506
Decrease as a result of tax positions taken during a prior period	(164)
Increase as a result of tax positions taken during the current period	726
Decrease relating to settlements with taxing authorities	(26)
Balance at the end of the period	5,042	$ 4,506
Potential benefits that would affect the effective tax rate	3,655
Accrued interest and penalties for unrecognized tax benefits	134
Foreign Jurisdictions
Net operating loss
Net operating loss carryforwards in foreign jurisdictions	23,786
Net operating loss carryforwards in foreign jurisdictions not subject to expiration	10,740
Net operating loss carryforwards in foreign jurisdictions subject to expiration in fiscal years 2015 through 2018	0
Net operating loss carryforwards in foreign jurisdictions subject to expiration between fiscal years 2019 and 2022	$ 13,046

STOCK-BASED COMPENSATION PLANS (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Oct. 31, 2014 USD ($) $ / shares shares	Oct. 31, 2013 USD ($) $ / shares shares	Oct. 31, 2012 USD ($) $ / shares
Stock-Based Compensation
Total compensation cost for stock-based awards	$ 11,291	$ 10,237	$ 9,503
Tax benefit realized for tax deductions from stock-based awards	$ 12,988	10,614	13,266
Common stock available for future grants (in shares) \| shares	3,474,967
Stock Option Awards
Stock-Based Compensation
Total compensation cost for stock-based awards	$ 5,142	$ 4,710	4,200
Stock option awards
Outstanding at the beginning of the period (in shares) \| shares	3,069,778
Granted (in shares) \| shares	288,832
Exercised (in shares) \| shares	(302,266)
Cancelled (in shares) \| shares	(6,692)
Outstanding at the end of the period (in shares) \| shares	3,049,652	3,069,778
Exercisable at the end of the period (in shares) \| shares	2,338,853
Stock options, weighted-average exercise price
Outstanding at the beginning of the period (in dollars per share) \| $ / shares	$ 25.55
Granted (in dollars per share) \| $ / shares	59.45
Exercised (in dollars per share) \| $ / shares	22.19
Cancelled (in dollars per share) \| $ / shares	59.50
Outstanding at the end of the period (in dollars per share) \| $ / shares	29.04	$ 25.55
Exercisable at the end of the period (in dollars per share) \| $ / shares	$ 23.98
Stock options, weighted-average contractual life
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2	5 years 4 months 24 days	5 years 10 months 24 days
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2	5 years 4 months 24 days	5 years 10 months 24 days
Exercisable at the end of the period	4 years 7 months 6 days
Aggregate intrinsic value
Outstanding at the beginning of the period	$ 102,493
Outstanding at the end of the period	99,713	$ 102,493
Exercisable at the end of the period	88,289
Other stock-based compensation plan disclosures
Total unrecognized compensation cost related to unvested awards	$ 1,855
Weighted-average period for recognition of compensation cost related to unvested awards	1 year 10 months 24 days
Total market value, intrinsic value and fair value of stock options exercised and vested
Market value of stock options exercised	$ 19,017	23,160	35,901
Intrinsic value of options exercised	$ 12,311	$ 13,875	$ 16,061
Valuation assumptions of stock-based compensation
Expected life of option	6 years	6 years	6 years
Expected volatility, low end of range (as a percent)	34.28%	35.18%	34.87%
Expected volatility, high end of range (as a percent)	34.42%	35.19%	35.02%
Weighted-average volatility (as a percent)	34.29%	35.19%	35.01%
Risk-free interest rate (as a percent)	1.92%	0.88%	1.20%
Expected dividend yield, low end of range (as a percent)	1.25%	1.04%	1.31%
Expected dividend yield, high end of range (as a percent)	1.27%	1.07%	1.40%
Weighted-average dividend yield (as a percent)	1.25%	1.07%	1.32%
Grant date per share weighted-average fair value (in dollars per share) \| $ / shares	$ 18.69	$ 13.03	$ 8.56
Stock Option Awards \| Other employees
Stock-Based Compensation
Frequency of grants	On an annual basis in the first quarter of the company's fiscal year
Portion of stock-based award that generally vest per year for employees and non-employee directors	0.333
Award vesting period	3 years
Term of award	10 years
Stock Option Awards \| Non-employee directors
Stock-Based Compensation
Frequency of grants	On an annual basis in the first quarter of the company's fiscal year
Portion of stock-based award that generally vest per year for employees and non-employee directors	0.333
Award vesting period	3 years
Term of award	10 years
Requisite service period for non-employee director based upon which fair value of options granted is expensed on the date of grant	10 years
Stock Option Awards \| Non-officer employees
Stock-Based Compensation
Award vesting period	3 years
Term of award	10 years
Stock Option Awards \| Officers
Stock-Based Compensation
Frequency of grants	On an annual basis in the first quarter of the company's fiscal year
Portion of stock-based award that generally vest per year for employees and non-employee directors	0.333
Award vesting period	3 years
Term of award	10 years
Restricted Stock and Restricted Stock Unit Awards
Stock-Based Compensation
Total compensation cost for stock-based awards	$ 1,653	$ 1,694	$ 1,721
Portion of stock-based award that generally vest per year for employees and non-employee directors	0.333
Award vesting period	3 years
Other stock-based compensation plan disclosures
Total unrecognized compensation cost related to unvested awards	$ 2,019
Weighted-average period for recognition of compensation cost related to unvested awards	2 years 2 months 12 days
Performance Share Awards
Stock-Based Compensation
Total compensation cost for stock-based awards	$ 4,496	$ 3,833	$ 3,582
Frequency of grants	On an annual basis in the first quarter of the company's fiscal year
Award vesting period	3 years
Other stock-based compensation plan disclosures
Total unrecognized compensation cost related to unvested awards	$ 4,293
Weighted-average period for recognition of compensation cost related to unvested awards	1 year 8 months 12 days
Valuation assumptions of stock-based compensation
Performance goal period	3 years
Maximum increase in the number of shares of common stock a participant receives based on the achievement of performance goals (as a percent)	200.00%
Potential lowest number of shares of common stock that could be received based on the achievement level of performance goals \| shares	0

STOCK-BASED COMPENSATION PLANS (Details 2) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Oct. 31, 2014	Oct. 31, 2013	Oct. 31, 2012
Restricted Stock and Restricted Stock Unit Awards
Granted shares of awards
Weighted-average fair value at date of grant (in dollars per share)	$ 63.05	$ 46.10	$ 33.61
Fair value of awards vested	$ 1,890	$ 1,207	$ 967
Unvested awards
Unvested at the beginning of the period (in shares)	109,288
Granted (in shares)	29,975
Vested (in shares)	(58,047)
Forfeited (in shares)	(2,687)
Unvested at the end of the period (in shares)	78,529	109,288
Weighted-Average Fair Value at Date of Grant
Unvested at the beginning of the period (in dollars per share)	$ 36.32
Granted (in dollars per share)	63.05	$ 46.10	$ 33.61
Vested (in dollars per share)	32.43
Forfeited (in dollars per share)	41.93
Unvested at the end of the period (in dollars per share)	49.22	$ 36.32
Performance Share Awards
Granted shares of awards
Weighted-average fair value at date of grant (in dollars per share)	$ 60.19
Fair value of awards vested	$ 7,926	$ 9,057	$ 1,828
Unvested awards
Unvested at the beginning of the period (in shares)	520,800
Granted (in shares)	121,600
Vested (in shares)	(133,640)
Forfeited (in shares)	(31,960)
Unvested at the end of the period (in shares)	476,800	520,800
Weighted-Average Fair Value at Date of Grant
Unvested at the beginning of the period (in dollars per share)	$ 33.41
Granted (in dollars per share)	60.19
Vested (in dollars per share)	31.76
Forfeited (in dollars per share)	31.76
Unvested at the end of the period (in dollars per share)	$ 40.82	$ 33.41

EMPLOYEE RETIREMENT PLANS (Details) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2014	Oct. 31, 2013	Oct. 31, 2012
EMPLOYEE RETIREMENT PLANS
Investments, Savings, Employee Stock Ownership Plan, expenses	$ 15,550	$ 14,931	$ 14,304
Projected benefit obligation	45,420	42,034
Amount of net liability recognized	3,432	3,982
Accumulated benefit obligation	42,431	39,967
Funded status of plans	10,085	9,063
Fair value of the plan assets	35,335	32,971
Net expense recognized	1,092	1,149	703
Amounts recognized in accumulated other comprehensive loss
Net actuarial loss	5,034	3,526
Net prior service cost (credit)	232	157
Accumulated other comprehensive loss	5,266	3,683	$ 4,328
Amounts included in accumulated other comprehensive loss, expected to be recognized as components of net periodic benefit cost
Net actuarial loss	572
Net prior service cost (credit)	10
Total	582
Amounts recognized in net periodic benefit cost and other comprehensive income
Net actuarial loss (gain)	(1)	(1,453)
Amortization of unrecognized prior service (credit) cost	74	72
Amortization of unrecognized actuarial loss (gain)	1,510	736
Total recognized in other comprehensive loss (income)	1,583	(645)
Total recognized in net periodic benefit cost and other comprehensive loss (income)	2,675	504
Defined Benefit Pension Plans
Amounts recognized in accumulated other comprehensive loss
Net actuarial loss	4,521	2,915
Net prior service cost (credit)	257	289
Accumulated other comprehensive loss	4,778	3,204
Amounts included in accumulated other comprehensive loss, expected to be recognized as components of net periodic benefit cost
Net actuarial loss	570
Net prior service cost (credit)	51
Total	621
Amounts recognized in net periodic benefit cost and other comprehensive income
Net actuarial loss (gain)	88	(1,170)
Amortization of unrecognized prior service (credit) cost	(32)	(34)
Amortization of unrecognized actuarial loss (gain)	1,519	768
Total recognized in other comprehensive loss (income)	1,575	(436)
Total recognized in net periodic benefit cost and other comprehensive loss (income)	2,110	117
Other Postretirement Benefit Plans
Amounts recognized in accumulated other comprehensive loss
Net actuarial loss	513	611
Net prior service cost (credit)	(25)	(132)
Accumulated other comprehensive loss	488	479
Amounts included in accumulated other comprehensive loss, expected to be recognized as components of net periodic benefit cost
Net actuarial loss	2
Net prior service cost (credit)	(41)
Total	(39)
Amounts recognized in net periodic benefit cost and other comprehensive income
Net actuarial loss (gain)	(89)	(283)
Amortization of unrecognized prior service (credit) cost	106	106
Amortization of unrecognized actuarial loss (gain)	(9)	(32)
Total recognized in other comprehensive loss (income)	8	(209)
Total recognized in net periodic benefit cost and other comprehensive loss (income)	$ 565	$ 387

SEGMENT DATA (Details) $ in Thousands	3 Months Ended								12 Months Ended
SEGMENT DATA (Details) $ in Thousands	Oct. 31, 2014 USD ($)	Aug. 01, 2014 USD ($)	May 02, 2014 USD ($)	Jan. 31, 2014 USD ($)	Oct. 31, 2013 USD ($)	Aug. 02, 2013 USD ($)	May 03, 2013 USD ($)	Feb. 01, 2013 USD ($)	Oct. 31, 2014 USD ($) segment	Oct. 31, 2013 USD ($)	Oct. 31, 2012 USD ($)
Segment Data
Number of operating segment \| segment									8
Number of reportable business segments \| segment									3
Financial information concerning the company's reportable segments
Net sales	$ 414,140	$ 567,540	$ 745,030	$ 445,981	$ 382,366	$ 509,918	$ 704,486	$ 444,661	$ 2,172,691	$ 2,041,431	$ 1,958,690
Earnings (loss) before income taxes									256,445	226,713	196,262
Total assets	1,192,415				1,002,748				1,192,415	1,002,748	935,199
Capital expenditures									71,138	49,427	43,242
Depreciation and amortization									53,138	54,134	53,634
Components of the loss before income taxes included in "Other"
Interest expense, net									(15,426)	(16,210)	(16,906)
Other									8,714	12,261	7,555
Earnings before income taxes									256,445	226,713	196,262
Professional
Financial information concerning the company's reportable segments
Net sales									1,477,578	1,425,259	1,329,504
Earnings (loss) before income taxes									276,305	254,424	232,104
Total assets	573,086				528,926				573,086	528,926	527,159
Capital expenditures									25,226	32,362	29,313
Depreciation and amortization									34,228	34,706	34,876
Components of the loss before income taxes included in "Other"
Earnings before income taxes									276,305	254,424	232,104
Residential
Financial information concerning the company's reportable segments
Net sales									672,443	594,411	607,435
Earnings (loss) before income taxes									76,916	62,033	57,889
Total assets	172,984				167,918				172,984	167,918	169,899
Capital expenditures									12,417	7,838	4,164
Depreciation and amortization									8,883	10,321	10,919
Components of the loss before income taxes included in "Other"
Earnings before income taxes									76,916	62,033	57,889
Other
Financial information concerning the company's reportable segments
Net sales									22,670	21,761	21,751
Earnings (loss) before income taxes									(96,776)	(89,744)	(93,731)
Total assets	$ 446,345				$ 305,904				446,345	305,904	238,141
Capital expenditures									33,495	9,227	9,765
Depreciation and amortization									10,027	9,107	7,839
Components of the loss before income taxes included in "Other"
Corporate expenses									(88,539)	(85,359)	(81,376)
Interest expense, net									(15,426)	(16,210)	(16,906)
Other									7,189	11,825	4,551
Earnings before income taxes									(96,776)	(89,744)	(93,731)
Intersegment \| Professional
Financial information concerning the company's reportable segments
Gross sales									41,376	40,416	37,324
Intersegment \| Residential
Financial information concerning the company's reportable segments
Gross sales									424	402	26
Intersegment \| Other
Financial information concerning the company's reportable segments
Gross sales									$ (41,800)	$ (40,818)	$ (37,350)

SEGMENT DATA (Details 2) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
SEGMENT DATA (Details 2) - USD ($) $ in Thousands	Oct. 31, 2014	Aug. 01, 2014	May 02, 2014	Jan. 31, 2014	Oct. 31, 2013	Aug. 02, 2013	May 03, 2013	Feb. 01, 2013	Oct. 31, 2014	Oct. 31, 2013	Oct. 31, 2012
Net sales for groups of similar products and services
Net sales	$ 414,140	$ 567,540	$ 745,030	$ 445,981	$ 382,366	$ 509,918	$ 704,486	$ 444,661	$ 2,172,691	$ 2,041,431	$ 1,958,690
Equipment
Net sales for groups of similar products and services
Net sales									1,765,845	1,649,489	1,586,864
Irrigation and lighting
Net sales for groups of similar products and services
Net sales									$ 406,846	$ 391,942	$ 371,826

SEGMENT DATA (Details 3) - Sales - Customer concentration - Single customer - Residential - customer	12 Months Ended
	Oct. 31, 2014	Oct. 31, 2013	Oct. 31, 2012
Concentration Risk
Number of customers	1	1	1
Percentage of consolidated gross sales accounted for by one customer (as a percent)	11.00%	10.00%	11.00%

SEGMENT DATA (Details 4) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
SEGMENT DATA (Details 4) - USD ($) $ in Thousands	Oct. 31, 2014	Aug. 01, 2014	May 02, 2014	Jan. 31, 2014	Oct. 31, 2013	Aug. 02, 2013	May 03, 2013	Feb. 01, 2013	Oct. 31, 2014	Oct. 31, 2013	Oct. 31, 2012
Geographic Data
Net sales	$ 414,140	$ 567,540	$ 745,030	$ 445,981	$ 382,366	$ 509,918	$ 704,486	$ 444,661	$ 2,172,691	$ 2,041,431	$ 1,958,690
Long-lived assets	205,195				185,096				205,195	185,096	180,523
United States
Geographic Data
Net sales									1,550,077	1,426,060	1,364,377
Long-lived assets	169,797				143,547				169,797	143,547	137,708
Foreign Countries
Geographic Data
Net sales									622,614	615,371	594,313
Long-lived assets	$ 35,398				$ 41,549				$ 35,398	$ 41,549	$ 42,815

COMMITMENTS AND CONTINGENT LIABILITIES (Details) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2014	Oct. 31, 2013	Oct. 31, 2012
Leases
Rental expense for operating leases	$ 24,329	$ 24,399	$ 22,166
Future minimum lease payments under noncancelable operating leases
Total future minimum lease payments	67,522
2015	15,308
2016	11,427
2017	7,353
2018	5,344
2019	4,204
After 2019	23,886
Purchase Commitments
Amount of noncancelable purchase commitments	18,921
Maximum obligation for the construction of a new corporate headquarters facility	15,291
Letters of Credit
Letters of credit outstanding	16,220	$ 12,681
Wholesale Financing
Customer Financing
Receivables purchased by third party financing company from the company	18,693
Receivables financed by third party financing company, excluding Red Iron, outstanding	10,945
Maximum amount of contingent liability to repurchase inventory related receivables under limited inventory repurchase agreements	9,369
End-User Financing
Customer Financing
Contingent liabilities for residual value or credit collection risk	0
Maximum exposure for credit collection	$ 1,893

FINANCIAL INSTRUMENTS (Details) € in Thousands, $ in Thousands, in Thousands	12 Months Ended
	Oct. 31, 2014 RON ( ) item	Oct. 31, 2014 EUR (€) item	Oct. 31, 2014 USD ($) item	Oct. 31, 2013 USD ($)
Summary of cash flow hedge activity
Maximum time limit for cash flow hedge	2 years
Cash flow hedge effectiveness testing, grace period	2 months
Fair value of derivatives
Asset Derivatives			$ 6,861	$ 1,266
Liability Derivatives			545	2,374
Forward currency contracts
Fair value of derivatives
Notional amount			106,906
Asset Derivatives			6,030	1,266
Liability Derivatives			9	1,931
Forward currency contracts \| Derivatives Designated as Hedging Instruments \| Prepaid expenses
Fair value of derivatives
Asset Derivatives			4,626	558
Forward currency contracts \| Derivatives Designated as Hedging Instruments \| Accrued liabilities
Fair value of derivatives
Liability Derivatives			9	1,381
Forward currency contracts \| Derivatives Not Designated as Hedging Instruments \| Prepaid expenses
Fair value of derivatives
Asset Derivatives			$ 1,404	708
Forward currency contracts \| Derivatives Not Designated as Hedging Instruments \| Accrued liabilities
Fair value of derivatives
Liability Derivatives				550
Cross currency contract
Fair value of derivatives
Notional amount	36,593	€ 8,500
Number of foreign currency contracts held \| item	1	1	1
Asset Derivatives			$ 831
Liability Derivatives			536	443
Cross currency contract \| Derivatives Designated as Hedging Instruments \| Prepaid expenses
Fair value of derivatives
Asset Derivatives			831
Cross currency contract \| Derivatives Designated as Hedging Instruments \| Accrued liabilities
Fair value of derivatives
Liability Derivatives				326
Cross currency contract \| Derivatives Not Designated as Hedging Instruments \| Accrued liabilities
Fair value of derivatives
Liability Derivatives			$ 536	$ 117

FINANCIAL INSTRUMENTS (Details 2) - USD ($) $ in Thousands	12 Months Ended
FINANCIAL INSTRUMENTS (Details 2) - USD ($) $ in Thousands	Oct. 31, 2014	Oct. 31, 2013
Derivative Instruments and Hedging Activities
Gain (Loss) Recognized in OCI on Derivatives (Effective Portion)	$ 3,200	$ (904)
Gain (Loss) Reclassified from AOCL into Income (Effective Portion)	(1,562)	(971)
Gain (Loss) Recognized in Net Earnings	4,506	(1,885)
Reclassification of gains from AOCI to earnings during the next 12 months on foreign currency contracts	3,736
Forward currency contracts \| Net sales
Derivative Instruments and Hedging Activities
Gain (Loss) Recognized in OCI on Derivatives (Effective Portion)	4,150	7
Gain (Loss) Reclassified from AOCL into Income (Effective Portion)	(1,128)	(805)
Forward currency contracts \| Cost of sales
Derivative Instruments and Hedging Activities
Gain (Loss) Recognized in OCI on Derivatives (Effective Portion)	(712)	(231)
Gain (Loss) Reclassified from AOCL into Income (Effective Portion)	103	473
Forward currency contracts \| Other income, net.
Derivative Instruments and Hedging Activities
Gain (Loss) recognized in Income on Derivatives (Ineffective Portion and Excluded from Effectiveness Testing)	120	648
Gain (Loss) Recognized in Net Earnings	3,555	(1,402)
Cross currency contract \| Other income, net.
Derivative Instruments and Hedging Activities
Gain (Loss) Recognized in OCI on Derivatives (Effective Portion)	(238)	(680)
Gain (Loss) Reclassified from AOCL into Income (Effective Portion)	(537)	(639)
Gain (Loss) Recognized in Net Earnings	$ 951	$ (483)

FINANCIAL INSTRUMENTS (Details 3) - USD ($) $ in Thousands	Oct. 31, 2014	Oct. 31, 2013
Derivative Asset, Fair Value, Amount Not Offset Against Collateral [Abstract]
Derivative Asset, Fair Value, Gross Asset	$ 7,096	$ 1,266
Derivative Asset, Fair Value, Gross Liability	235
Derivative Asset	6,861	1,266
Derivative Liability, Fair Value, Amount Not Offset Against Collateral [Abstract]
Derivative Liability, Fair Value, Gross Liability	545	2,411
Derivative Liability, Fair Value, Gross Asset		37
Derivative Liability	545	2,374
Forward currency contracts
Derivative Asset, Fair Value, Amount Not Offset Against Collateral [Abstract]
Derivative Asset, Fair Value, Gross Asset	6,265	1,266
Derivative Asset, Fair Value, Gross Liability	235
Derivative Asset	6,030	1,266
Derivative Liability, Fair Value, Amount Not Offset Against Collateral [Abstract]
Derivative Liability, Fair Value, Gross Liability	9	1,968
Derivative Liability, Fair Value, Gross Asset		37
Derivative Liability	9	1,931
Cross currency contract
Derivative Asset, Fair Value, Amount Not Offset Against Collateral [Abstract]
Derivative Asset, Fair Value, Gross Asset	831
Derivative Asset	831
Derivative Liability, Fair Value, Amount Not Offset Against Collateral [Abstract]
Derivative Liability, Fair Value, Gross Liability	536	443
Derivative Liability	$ 536	$ 443

FINANCIAL INSTRUMENTS (Details 4) $ in Thousands		3 Months Ended
FINANCIAL INSTRUMENTS (Details 4) $ in Thousands	Apr. 23, 2007 USD ($)	Apr. 30, 2007 USD ($) item	Oct. 31, 2014 USD ($)	Oct. 31, 2013 USD ($)	Oct. 31, 2012 USD ($)
Treasury lock agreements
Amount of unrecognized loss portion in accumulated other comprehensive loss			$ 2,097	$ (1,109)	$ (210)
Treasury lock agreement based on U.S. Treasury security \| Cash flow hedges.
Treasury lock agreements
Number of treasury lock agreements \| item		3
Net settlement of unrecognized loss portion recorded in accumulated other comprehensive loss	$ 182
Amount of unrecognized loss portion in accumulated other comprehensive loss			$ 137	$ 143
Treasury lock agreement based on U.S. Treasury security, one and two
Treasury lock agreements
Principal balance		$ 30,000
Treasury lock agreement based on U.S. Treasury security, one and two \| Cash flow hedges.
Treasury lock agreements
Amortization period		30 years
Treasury lock agreement based on U.S. Treasury security, three \| Cash flow hedges.
Treasury lock agreements
Principal balance		$ 40,000

FINANCIAL INSTRUMENTS (Details 5) - USD ($) $ in Thousands	Oct. 31, 2014	Oct. 31, 2013
Assets
Gross Amounts of Recognized Assets	$ 7,096	$ 1,266
Gross Liabilities Offset in the Balance Sheet	(235)
Net Amounts of Assets Presented in the Balance Sheet	6,861	1,266
Liabilities
Gross Amounts of Recognized Liabilities	(545)	(2,411)
Gross Assets Offset in the Balance Sheet		37
Net Amounts of Liabilities Presented in the Balance Sheet	(545)	(2,374)
Forward currency contracts
Assets
Gross Amounts of Recognized Assets	6,265	1,266
Gross Liabilities Offset in the Balance Sheet	(235)
Net Amounts of Assets Presented in the Balance Sheet	6,030	1,266
Liabilities
Gross Amounts of Recognized Liabilities	(9)	(1,968)
Gross Assets Offset in the Balance Sheet		37
Net Amounts of Liabilities Presented in the Balance Sheet	(9)	(1,931)
Cross currency contract
Assets
Gross Amounts of Recognized Assets	831
Net Amounts of Assets Presented in the Balance Sheet	831
Liabilities
Gross Amounts of Recognized Liabilities	(536)	(443)
Net Amounts of Liabilities Presented in the Balance Sheet	$ (536)	$ (443)

FINANCIAL INSTRUMENTS (Details 6) - USD ($) $ in Thousands	Oct. 31, 2014	Oct. 31, 2013
Liabilities:
Transfer of asset from level 1 to level 2	$ 0	$ 0
Transfer of asset from level 2 to level 1	0	0
Transfer of liabilities from level 1 to level 2	0	0
Transfer of liabilities from level 2 to level 1	0	0
Long-term debt with fixed interest rates	260,970	243,074
Carrying amount of long-term debt	223,956	223,544
Measured on a recurring basis \| Fair Value
Assets:
Cash and cash equivalents	314,873	182,993
Forward currency contracts	6,030	1,266
Cross currency contracts	831
Total assets	321,734	184,259
Liabilities:
Forward currency contracts	9	1,931
Cross currency contracts	536	443
Deferred compensation liabilities	2,141	2,777
Total liabilities	2,686	5,151
Measured on a recurring basis \| Level 1
Assets:
Cash and cash equivalents	314,873	182,993
Total assets	314,873	182,993
Measured on a recurring basis \| Level 2
Assets:
Forward currency contracts	6,030	1,266
Cross currency contracts	831
Total assets	6,861	1,266
Liabilities:
Forward currency contracts	9	1,931
Cross currency contracts	536	443
Deferred compensation liabilities	2,141	2,777
Total liabilities	$ 2,686	$ 5,151

QUARTERLY FINANCIAL DATA (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Oct. 31, 2014	Aug. 01, 2014	May 02, 2014	Jan. 31, 2014	Oct. 31, 2013	Aug. 02, 2013	May 03, 2013	Feb. 01, 2013	Oct. 31, 2014	Oct. 31, 2013	Oct. 31, 2012
Consolidated Statements of Earnings
Net sales	$ 414,140	$ 567,540	$ 745,030	$ 445,981	$ 382,366	$ 509,918	$ 704,486	$ 444,661	$ 2,172,691	$ 2,041,431	$ 1,958,690
Gross profit	143,137	202,080	264,540	163,514	128,648	178,031	252,301	165,817	773,271	724,797	673,094
Net earnings	$ 10,902	$ 50,013	$ 87,086	$ 25,869	$ 4,950	$ 40,097	$ 78,402	$ 31,396	$ 173,870	$ 154,845	$ 129,541
Basic net earnings per share of common stock (in dollars per share)	$ 0.19	$ 0.89	$ 1.54	$ 0.45	$ 0.09	$ 0.70	$ 1.35	$ 0.54	$ 3.09	$ 2.67	$ 2.18
Diluted net earnings per share of common stock (in dollars per share)	$ 0.19	$ 0.87	$ 1.51	$ 0.44	$ 0.08	$ 0.68	$ 1.32	$ 0.53	$ 3.02	$ 2.62	$ 2.14

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References + Details

SCHEDULE II Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2014	Oct. 31, 2013	Oct. 31, 2012
Allowance for doubtful accounts and notes receivable reserves
Movement in allowance for doubtful accounts and notes receivable reserves and accrued advertising and marketing programs
Balance at the beginning of the period	$ 3,425	$ 3,733	$ 2,040
Charged to costs and expense	(79)	123	2,160
Other			12
Deductions	1,865	431	479
Balance at the end of the period	1,481	3,425	3,733
Accrued advertising and marketing programs
Movement in allowance for doubtful accounts and notes receivable reserves and accrued advertising and marketing programs
Balance at the beginning of the period	64,191	56,264	47,161
Charged to costs and expense	306,650	287,217	214,474
Deductions	304,672	279,290	205,371
Balance at the end of the period	$ 66,169	$ 64,191	$ 56,264