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Segment Information
 6 Months Ended
Apr. 30, 2022
Segment Reporting [Abstract]  
Segment Information 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 operations. We maintain an 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, legal, and other 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 condensed consolidated financial statements. Corporate general and administrative expense allocated during the three and six month period ended April 30, 2022 was $5.5 million and $11.3 million, respectively, and $5.4 million and $10.7 million for the comparable prior year periods.
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 three and six months ended April 30, 2022 and 2021, and total assets as of April 30, 2022 and October 31, 2021 are summarized in the following table (in thousands):
NA FenestrationEU FenestrationNA Cabinet Comp.Unallocated Corp. & OtherTotal
Three Months Ended April 30, 2022
Net sales$177,908 $73,427 $72,878 $(1,320)$322,893 
Depreciation and amortization4,038 2,522 3,917 86 10,563 
Operating income (loss)22,221 12,597 568 (836)34,550 
Capital expenditures3,632 1,252 1,499 32 6,415 
Three Months Ended April 30, 2021
Net sales$146,143 $61,657 $63,562 $(1,005)$270,357 
Depreciation and amortization4,846 2,607 3,305 87 10,845 
Operating income (loss)15,783 10,250 (284)(4,369)21,380 
Capital expenditures2,001 1,268 1,160 124 4,553 
Six Months Ended April 30, 2022
Net sales$324,539 $132,341 $135,231 $(2,178)$589,933 
Depreciation and amortization8,177 5,091 7,380 172 20,820 
Operating income (loss)34,372 20,412 (885)(5,223)48,676 
Capital expenditures8,937 2,206 2,572 70 13,785 
Six Months Ended April 30, 2021
Net sales$274,259 $110,748 $117,556 $(2,059)$500,504 
Depreciation and amortization9,957 5,125 6,575 203 21,860 
Operating income (loss)26,986 18,437 (297)(11,911)33,215 
Capital expenditures4,821 1,740 3,113 125 9,799 
As of April 30, 2022
Total assets$295,186 $225,703 $186,940 $32,661 $740,490 
As of October 31, 2021
Total assets$268,773 $236,755 $178,671 $33,124 $717,323 
The following table summarizes the change in the carrying amount of goodwill by reportable business segment for the six months ended April 30, 2022 (in thousands):
NA FenestrationEU FenestrationNA Cabinet Comp.Unallocated Corp. & OtherTotal
Balance as of October 31, 2021$38,712 $71,346 $39,147 $— $149,205 
Foreign currency translation adjustment— (5,937)— — (5,937)
Balance as of April 30, 2022$38,712 $65,409 $39,147 $— $143,268 
For further details of Goodwill, see Note 3, “Goodwill & Intangible Assets”, located herewith.
We did not allocate non-operating loss or income tax benefit to the reportable segments. The following table reconciles operating income as reported above to net income for the three and six months ended April 30, 2022 and 2021 (in thousands):
Three Months EndedSix Months Ended
April 30,April 30,
2022202120222021
Operating income$34,550 $21,380 $48,676 $33,215 
Interest expense(602)(640)(1,125)(1,391)
Other, net453 265 507 457 
Income tax expense(7,879)(6,454)(10,297)(9,878)
Net income$26,522 $14,551 $37,761 $22,403