Business Segment Information

12 Months Ended

Oct. 31, 2019

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 and intangible impairments. Corporate operating loss is principally corporate headquarters expense. Interest expense, and other income and expenses are not allocated to individual segments.

No customers accounted for 10% or more of our consolidated net revenue in the fiscal 2019 and 2018. One customer, a CooperVision contact lens distributor, accounted for approximately 10% of our consolidated net revenue in the fiscal 2017.

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

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



(In millions)	2019		2018		2017
CooperVision net sales by category:
Toric lens	$	620.0	$	591.4	$	526.8
Multifocal lens	202.9		196.6		177.2
Single-use sphere lens	568.2		520.1		438.3
Non single-use sphere and other	581.8		573.9		531.8
Total CooperVision net sales	1,972.9		1,882.0		1,674.1
CooperSurgical net sales by category:
Office and surgical products	422.4		400.4		214.7
Fertility	258.1		250.4		250.2
Total CooperSurgical net sales	680.5		650.8		464.9
Total net sales	$	2,653.4	$	2,532.8	$	2,139.0

Information by business segment for each of the years in the three-year period ended October 31, 2019, follows:



(In millions)	CooperVision		CooperSurgical			Corporate			Consolidated
2019
Net sales	$	1,972.9	$	680.5		$	—		$	2,653.4
Operating income (loss)	$	506.4	$	87.9		$	(47.6	)	$	546.7
Interest expense									68.0
Other expense, net									1.3
Income before income taxes									$	477.4
Identifiable assets	$	3,911.6	$	2,189.8		$	173.1		$	6,274.5
Depreciation expense	$	125.8	$	9.0		$	0.2		$	135.0
Amortization expense	$	40.9	$	104.9		$	—		$	145.8
Capital expenditures	$	259.0	$	33.1		$	—		$	292.1
2018
Net sales	$	1,882.0	$	650.8		$	—		$	2,532.8
Operating income (loss)	$	479.8	$	(19.9	)	$	(56.8	)	$	403.1
Interest expense									82.7
Other (income), net									(11.5		)
Income before income taxes									$	331.9
Identifiable assets	$	3,746.0	$	2,201.7		$	165.1		$	6,112.8
Depreciation expense	$	120.1	$	8.1		$	0.2		$	128.4
Amortization expense	$	43.6	$	103.1		$	—		$	146.7
Capital expenditures	$	178.4	$	15.1		$	0.1		$	193.6
2017
Net sales	$	1,674.1	$	464.9		$	—		$	2,139.0
Operating income (loss)	$	418.4	$	58.5		$	(47.8	)	$	429.1
Interest expense									33.4
Other expense, net									1.7
Income before income taxes									$	394.0
Identifiable assets	$	3,562.6	$	1,107.5		$	188.6		$	4,858.7
Depreciation expense	$	115.0	$	4.7		$	0.3		$	120.0
Amortization expense	$	36.7	$	31.7		$	—		$	68.4
Capital expenditures	$	108.2	$	18.9		$	0.1		$	127.2

Information by geographical area by country of domicile for each of the years in the three-year period ended October 31, 2019, follows:



(In millions)	United States			Europe			Rest of World, Other Eliminations & Corporate			Consolidated
2019
Net sales to unaffiliated customers	$	1,211.8		$	854.8		$	586.8		$	2,653.4
Sales between geographic areas	650.7			300.8			(951.5		)	—
Net sales	$	1,862.5		$	1,155.6		$	(364.7	)	$	2,653.4
Operating income	$	83.2		$	29.3		$	434.2		$	546.7
Property, plant and equipment, net	$	626.5		$	358.8		$	146.8		$	1,132.1
2018
Sales to unaffiliated customers	$	1,162.2		$	846.5		$	524.1		$	2,532.8
Sales between geographic areas	274.3			407.1			(681.4		)	—
Net sales	$	1,436.5		$	1,253.6		$	(157.3	)	$	2,532.8
Operating (loss) income	$	(39.3	)	$	(16.8	)	$	459.2		$	403.1
Property, plant and equipment, net	$	516.7		$	340.7		$	118.6		$	976.0
2017
Sales to unaffiliated customers	$	931.1		$	746.2		$	461.7		$	2,139.0
Sales between geographic areas	255.7			440.5			(696.2		)	—
Net sales	$	1,186.8		$	1,186.7		$	(234.5	)	$	2,139.0
Operating income	$	37.8		$	1.6		$	389.7		$	429.1
Property, plant and equipment, net	$	472.8		$	352.3		$	85.0		$	910.1