Business Segment Information

12 Months Ended

Oct. 31, 2012

Segment Reporting [Abstract]

Business Segment Information

Business Segment Information

Cooper uses operating income, as presented in our financial reports, as the primary measure of segment profitability. We do not allocate costs from corporate functions to segment operating income. Items below operating income are not considered when measuring the profitability of a segment. We use the same accounting policies to generate segment results as we do for our consolidated results.

Total net sales include sales to customers as reported in our Consolidated Statements of Income and sales between geographic areas that are priced at terms that allow for a reasonable profit for the seller. Operating income (loss) is total net sales less cost of sales, research and development expenses, selling, general and administrative expenses, restructuring costs and amortization of intangible assets. Corporate operating loss is principally corporate headquarters expense. Loss on extinguishment of debt; other income (expense), net and interest expense are not allocated to individual segments. Neither of our business segments relies on any one major customer.

Identifiable assets are those used in continuing operations except cash and cash equivalents, which we include as corporate assets. Long-lived assets are property, plant and equipment.

The following table presents a summary of our business segment net sales:

(In thousands)	2012		2011		2010
CooperVision net sales by category:
Toric lens	$	357,211	$	339,184	$	292,732
Multifocal lens	94,443		74,741		71,603
Single-use sphere lens	267,090		243,624		207,250
Non single-use sphere and other eye care products and other	470,500		463,589		398,898
Total CooperVision net sales	1,189,244		1,121,138		970,483
CooperSurgical net sales	255,892		209,697		188,034
Total net sales	$	1,445,136	$	1,330,835	$	1,158,517

Information by business segment for each of the years in the three-year period ended October 31, 2012, follows:

(In thousands)	CooperVision		CooperSurgical		Corporate & Eliminations			Consolidated
2012
Net sales	$	1,189,244	$	255,892	$	—		$	1,445,136
Operating income (loss)	$	262,806	$	58,956	$	(38,364	)	$	283,398
Other income, net								229
Interest expense								(11,771		)
Gain on insurance proceeds								5,000
Loss on extinguishment of debt								(1,404		)
Income before income taxes								$	275,452
Identifiable assets	$	2,251,476	$	607,673	$	82,235		$	2,941,384
Depreciation expense	$	82,829	$	4,106	$	300		$	87,235
Amortization expense	$	15,578	$	8,401	$	—		$	23,979
Capital expenditures	$	92,459	$	6,647	$	673		$	99,779
2011
Net sales	$	1,121,138	$	209,697	$	—		$	1,330,835
Operating income (loss)	$	207,485	$	52,420	$	(32,349	)	$	227,556
Other expense, net								(963		)
Interest expense								(17,342		)
Loss on extinguishment of debt								(16,487		)
Income before income taxes								$	192,764
Identifiable assets	$	2,206,068	$	354,020	$	64,430		$	2,624,518
Depreciation expense	$	74,146	$	3,264	$	210		$	77,620
Amortization expense	$	14,245	$	6,284	$	—		$	20,529
Capital expenditures	$	97,131	$	6,287	$	247		$	103,665
2010
Net sales	$	970,483	$	188,034	$	—		$	1,158,517
Operating income (loss)	$	171,345	$	47,064	$	(28,497	)	$	189,912
Other expense, net								(1,068		)
Interest expense								(36,668		)
Litigation settlement charges								(27,750		)
Income before income taxes								$	124,426
Identifiable assets	$	2,141,685	$	328,931	$	54,402		$	2,525,018
Depreciation expense	$	72,717	$	2,913	$	315		$	75,945
Amortization expense	$	12,361	$	5,695	$	—		$	18,056
Capital expenditures	$	69,793	$	3,871	$	93		$	73,757

Information by geographical area by country of domicile for each of the years in the three-year period ended October 31, 2012, follows:

(In thousands)	United States		Europe			Rest of World, Other Eliminations & Corporate			Consolidated
2012
Sales to unaffiliated customers	$	680,757	$	408,813		$	355,566		$	1,445,136
Sales between geographic areas	198,593		318,196			(516,789		)	—
Net sales	$	879,350	$	727,009		$	(161,223	)	$	1,445,136
Operating income	$	44,977	$	5,367		$	233,054		$	283,398
Long-lived assets	$	371,314	$	261,269		$	7,672		$	640,255
2011
Sales to unaffiliated customers	$	627,438	$	392,152		$	311,245		$	1,330,835
Sales between geographic areas	172,618		304,585			(477,203		)	—
Net sales	$	800,056	$	696,737		$	(165,958	)	$	1,330,835
Operating income	$	37,113	$	18,703		$	171,740		$	227,556
Long-lived assets	$	373,211	$	226,665		$	9,329		$	609,205
2010
Sales to unaffiliated customers	$	568,786	$	345,970		$	243,761		$	1,158,517
Sales between geographic areas	143,951		300,948			(444,899		)	—
Net sales	$	712,737	$	646,918		$	(201,138	)	$	1,158,517
Operating income	$	57,776	$	(4,935	)	$	137,071		$	189,912
Long-lived assets	$	357,200	$	227,780		$	8,907		$	593,887