Business Segment Information

12 Months Ended

Oct. 31, 2015

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 and expenses 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 millions)	2015		2014		2013
CooperVision net sales by category:
Toric lens	$	440.1	$	428.6	$	388.1
Multifocal lens	162.1		147.0		121.7
Single-use sphere lens	357.2		306.6		271.0
Non single-use sphere and other eye care products and other	528.4		510.4		487.5
Total CooperVision net sales	1,487.8		1,392.6		1,268.3
CooperSurgical net sales	309.3		325.2		319.4
Total net sales	$	1,797.1	$	1,717.8	$	1,587.7

Information by business segment for each of the years in the three-year period ended October 31, 2015, follows:

(In millions)	CooperVision		CooperSurgical		Corporate			Consolidated
2015
Net sales	$	1,487.8	$	309.3	$	—		$	1,797.1
Operating income (loss)	$	229.8	$	56.1	$	(49.2	)	$	236.7
Other expense, net								3.1
Interest expense								18.1
Income before income taxes								$	215.5
Identifiable assets	$	3,714.6	$	674.8	$	71.2		$	4,460.6
Depreciation expense	$	134.0	$	5.6	$	0.3		$	139.9
Amortization expense	$	36.6	$	14.9	$	—		$	51.5
Capital expenditures	$	238.3	$	4.6	$	0.1		$	243.0
2014
Net sales	$	1,392.6	$	325.2	$	—		$	1,717.8
Operating income (loss)	$	289.0	$	69.0	$	(51.5	)	$	306.5
Other expense, net								2.0
Interest expense								8.0
Income before income taxes								$	296.5
Identifiable assets	$	3,699.6	$	646.2	$	112.5		$	4,458.3
Depreciation expense	$	95.5	$	6.5	$	0.5		$	102.5
Amortization expense	$	22.7	$	13.0	$	—		$	35.7
Capital expenditures	$	233.6	$	4.2	$	0.3		$	238.1
2013
Net sales	$	1,268.3	$	319.4	$	—		$	1,587.7
Operating income (loss)	$	289.3	$	60.6	$	(44.0	)	$	305.9
Other income, net								1.4
Interest expense								9.2
Gain on insurance proceeds								14.1
Income before income taxes								$	312.3
Identifiable assets	$	2,376.0	$	632.8	$	128.5		$	3,137.3
Depreciation expense	$	88.4	$	6.3	$	0.4		$	95.1
Amortization expense	$	16.7	$	13.5	$	—		$	30.2
Capital expenditures	$	170.7	$	6.9	$	0.5		$	178.1

Information by geographical area by country of domicile for each of the years in the three-year period ended October 31, 2015, follows:

(In millions)	United States		Europe			Rest of World, Other Eliminations & Corporate			Consolidated
2015
Sales to unaffiliated customers	$	811.9	$	647.3		$	337.9		$	1,797.1
Sales between geographic areas	250.0		493.1			(743.1		)	—
Net sales	$	1,061.9	$	1,140.4		$	(405.2	)	$	1,797.1
Operating income (loss)	$	30.7	$	(37.6	)	$	243.6		$	236.7
Long-lived assets	$	494.2	$	407.9		$	65.0		$	967.1
2014
Sales to unaffiliated customers	$	773.8	$	582.4		$	361.6		$	1,717.8
Sales between geographic areas	230.6		346.0			(576.6		)	—
Net sales	$	1,004.4	$	928.4		$	(215.0	)	$	1,717.8
Operating income (loss)	$	47.8	$	(10.3	)	$	269.0		$	306.5
Long-lived assets	$	499.2	$	406.4		$	31.7		$	937.3
2013
Sales to unaffiliated customers	$	742.2	$	479.1		$	366.4		$	1,587.7
Sales between geographic areas	230.4		326.3			(556.7		)	—
Net sales	$	972.6	$	805.4		$	(190.3	)	$	1,587.7
Operating income	$	49.7	$	(5.4	)	$	261.6		$	305.9
Long-lived assets	$	427.6	$	297.2		$	15.1		$	739.9