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Segment Information
 12 Months Ended
Oct. 31, 2020
Segment Reporting [Abstract]  
Segment Information
16. Segment Information
We present three reportable business segments: (1) NA Fenestration, comprising three operating segments primarily focused on the fenestration market in North America including vinyl profiles, insulating glass spacers, screens & other fenestration components; (2) EU Fenestration, comprising our U.K.-based vinyl extrusion business, manufacturing vinyl profiles & conservatories, and the European insulating glass business manufacturing insulating glass spacers; and (3) NA Cabinet Components, comprising our cabinet door and components segment. We maintain a grouping called Unallocated Corporate & Other, which includes transaction expenses, stock-based compensation, long-term incentive awards based on the performance of our common stock and other factors, certain severance and legal costs not deemed to be allocable to all segments, depreciation of corporate assets, interest expense, other, net, income taxes and inter-segment eliminations, and executive incentive compensation and medical expense fluctuations relative to planned costs as determined during the annual planning process. Other general and administrative costs associated with the corporate office are allocated to the reportable segments, based upon a relative measure of profitability in order to more accurately reflect each reportable business segment's administrative costs. We allocate corporate expenses to businesses acquired mid-year from the date of acquisition. The accounting policies of our operating segments are the same as those used to prepare the accompanying consolidated financial statements. Corporate general and administrative expenses allocated during the years ended October 31, 2020, 2019 and 2018 were $21.7 million, $18.3 million and $18.7 million, respectively.
ASC Topic 280-10-50, “Segment Reporting” (ASC 280) permits aggregation of operating segments based on factors including, but not limited to: (1) similar nature of products serving the building products industry, primarily the fenestration business; (2) similar production processes, although there are some differences in the amount of automation amongst operating plants; (3) similar types or classes of customers, namely the primary OEMs; (4) similar distribution methods for product delivery, although the extent of the use of third-party distributors will vary amongst the businesses; (5) similar regulatory environment; and (6) converging long-term economic similarities.
Segment information for the years ended October 31, 2020, 2019 and 2018 was as follows (in thousands):
NA FenestrationEU FenestrationNA Cabinet Comp.Unallocated Corp. & OtherTotal
Year Ended October 31, 2020
Net sales$483,415 $161,054 $210,099 $(2,995)$851,573 
Depreciation and amortization23,555 9,468 13,732 474 47,229 
Operating income (loss)39,909 20,076 (2,502)(2,218)55,265 
Capital expenditures15,761 5,435 4,423 107 25,726 
Total assets$252,703 $223,248 $174,713 $40,921 $691,585 
Year Ended October 31, 2019
Net sales$503,837 $164,997 $229,644 $(4,637)$893,841 
Depreciation and amortization27,054 8,845 13,178 509 49,586 
Operating income (loss)39,765 19,040 (74,236)(10,996)(26,427)
Capital expenditures12,984 6,365 5,383 151 24,883 
Total assets$226,243 $212,239 $181,416 $25,212 $645,110 
Year Ended October 31, 2018
Net sales$485,366 $159,973 $249,813 $(5,367)$889,785 
Depreciation and amortization27,248 9,607 14,401 566 51,822 
Operating income (loss)30,633 12,702 3,167 (10,805)35,697 
Capital expenditures$13,929 $5,450 $6,965 $140 $26,484 
The following table summarizes the change in the carrying amount of goodwill by segment for the years ended October 31, 2020 and 2019 (in thousands):
NA FenestrationEU FenestrationNA Cabinet Comp.Unallocated Corp. & OtherTotal
Balance as of October 31, 2018$38,712 $67,168 $113,747 $— $219,627 
Asset impairment charge— — (74,600)— (74,600)
Foreign currency translation adjustment— 536 — — 536 
Balance as of October 31, 2019$38,712 $67,704 $39,147 $— $145,563 
Foreign currency translation adjustment— 591 — — 591 
Balance as of October 31, 2020$38,712 $68,295 $39,147 $— $146,154 
For further details of Goodwill, see Note 6, "Goodwill and Intangible Assets", located herewith.
We did not allocate non-operating expense or income tax expense to the reportable segments. The following table reconciles operating income (loss) as reported above to net income (loss) for the years ended October 31, 2020, 2019 and 2018 (in thousands):
Year Ended October 31,
202020192018
Operating income (loss)$55,265 $(26,427)$35,697 
Interest expense(5,245)(9,643)(11,100)
Other, net280 116 1,156 
Income tax (expense) benefit(11,804)(10,776)800 
Net income (loss)$38,496 $(46,730)$26,553 
Geographic Information
Our manufacturing facilities and all long-lived assets are located in the U.S., U.K. and Germany. We attribute our net sales to a geographic region based on the location of the customer. The following tables provide information concerning our net sales for the years ended October 31, 2020, 2019 and 2018, and our long-lived assets as of October 31, 2020 and 2019 (in thousands):
Year Ended October 31,
Net sales202020192018
United States$654,802 $683,204 $676,776 
Europe158,829 162,106 159,652 
Canada18,213 20,088 23,610 
Asia11,504 18,360 18,584 
Other foreign countries8,223 10,083 11,163 
Total net sales$851,573 $893,841 $889,785 

October 31,
Long-lived assets, net20202019
United States$307,534 $288,722 
Germany25,519 16,899 
United Kingdom142,097 140,839 
Total long-lived assets, net$475,150 $446,460 
Long-lived assets, net includes: property, plant and equipment, net; goodwill; and intangible assets, net. Beginning in the year ended October 31, 2020, this amount also includes operating lease right-of-use assets.