Business Segment Information

12 Months Ended

Oct. 31, 2013

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, selling, general and administrative expenses, research and development expenses, amortization of intangible assets and the loss on divestiture of Aime. Corporate operating loss is principally corporate headquarters expense. Interest expense, gain on insurance proceeds, loss on extinguishment of debt and other income (expense), net 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)	2013		2012		2011
CooperVision net sales by category:
Toric lens	$	388,066	$	357,211	$	339,184
Multifocal lens	121,734		94,443		74,741
Single-use sphere lens	271,000		267,090		243,624
Non single-use sphere and other eye care products and other	487,519		470,500		463,589
Total CooperVision net sales	1,268,319		1,189,244		1,121,138
CooperSurgical net sales	319,406		255,892		209,697
Total net sales	$	1,587,725	$	1,445,136	$	1,330,835

Information by business segment for each of the years in the three-year period ended October 31, 2013, follows:

(In thousands)	CooperVision		CooperSurgical		Corporate			Consolidated
2013
Net sales	$	1,268,319	$	319,406	$	—		$	1,587,725
Operating income (loss)	$	289,272	$	60,685	$	(44,012	)	$	305,945
Other income, net								1,410
Interest expense								(9,168		)
Gain on insurance proceeds								14,084
Income before income taxes								$	312,271
Identifiable assets	$	2,376,022	$	632,844	$	128,395		$	3,137,261
Depreciation expense	$	88,350	$	6,316	$	444		$	95,110
Amortization expense	$	16,710	$	13,529	$	—		$	30,239
Capital expenditures	$	170,739	$	6,888	$	500		$	178,127
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

Information by geographical area by country of domicile for each of the years in the three-year period ended October 31, 2013, follows:

(In thousands)	United States		Europe			Rest of World, Other Eliminations & Corporate			Consolidated
2013
Sales to unaffiliated customers	$	742,216	$	479,144		$	366,365		$	1,587,725
Sales between geographic areas	230,382		326,338			(556,720		)	—
Net sales	$	972,598	$	805,482		$	(190,355	)	$	1,587,725
Operating income (loss)	$	49,712	$	(5,388	)	$	261,621		$	305,945
Long-lived assets	$	427,560	$	297,157		$	15,150		$	739,867
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