Operating Segments and Geographic Area Data

12 Months Ended

Oct. 31, 2021

Segment Reporting [Abstract]

Operating Segments and Geographic Area Data

Operating segments and geographic area data

We conduct business in two primary operating segments: Industrial Precision Solutions and Advanced Technology Solutions. The composition of segments and measure of segment profitability is consistent with that used by our chief operating decision maker. The primary measure used by the chief operating decision maker for purposes of making decisions about allocating resources to the segments and assessing performance is operating profit, which equals sales less cost of sales and certain operating expenses. Items below the operating profit line of the Consolidated Statement of Income (interest and investment income, interest expense and other income/expense) are excluded from the measure of segment profitability reviewed by our chief operating decision maker and are not presented by operating segment. The accounting policies of the segments are generally the same as those described in Note 1, Significant Accounting Policies.

Effective in the second quarter of 2020, we made changes to realign our management team and our operating segments. This realignment will enable us to better serve global customers and markets, to more efficiently leverage technology synergies, to operate divisions of significant size in a consistent and focused way and to position ourselves for our next chapter of profitable growth. The revised operating segments better reflect how we manage the Company, allocate resources, and assess performance of the businesses.

We realigned our former three operating segments into two: Industrial Precision Solutions and Advanced Technology Solutions. Existing product lines were unchanged as part of this new structure.

Industrial Precision Solutions: This segment combines our former Adhesive Dispensing Systems (ADS) and Industrial Coating Systems (ICS) businesses. IPS enhances the technology synergies between ADS and ICS to deliver proprietary dispensing and processing technology to diverse end markets. Product lines reduce material consumption, increase line efficiency and enhance product brand and appearance. Components are used for dispensing adhesives, coatings, paint, finishes, sealants and other materials. This segment primarily serves the industrial, consumer durables and non-durables markets.

Advanced Technology Solutions: This segment integrates our proprietary product technologies found in progressive stages of a customer’s production processes, such as surface treatment, precisely controlled dispensing of material and post-dispense test

and inspection to ensure quality. Related single-use plastic molded syringes, cartridges, tips, fluid connection components, tubing, balloons and catheters are used to dispense or control fluids in production processes or within customers’ end products. This segment predominantly serves customers in the electronics, medical and related high-tech industrial markets.

The financial information presented herein reflects the impact of the preceding changes and prior periods have been revised to reflect these changes.

No single customer accounted for 10 percent or more of sales in 2021, 2020 or 2019.

The following table presents information about our reportable segments:

	Industrial Precision Solutions		Advanced Technology Solutions		Corporate			Total
Year ended October 31, 2021
Net external sales	$	1,246,947	$	1,115,262	$	—		$	2,362,209
Depreciation and amortization	25,673		68,426		9,784			103,883
Operating profit (loss)	414,192		271,660		(70,725)			615,127
Identifiable assets (b)	898,051		1,902,637		967,796		(a)	3,768,484
Property, plant and equipment expenditures	9,009		23,064		6,230			38,303
Year ended October 31, 2020
Net external sales	$	1,143,423	$	977,677	$	—		$	2,121,100
Depreciation and amortization	38,939		64,543		9,820			113,302
Operating profit (loss)	208,028		191,602		(50,085)			349,545
Identifiable assets (b)	882,946		1,849,391		948,048		(a)	3,680,385
Property, plant and equipment expenditures	18,545		31,520		470			50,535
Year ended October 31, 2019
Net external sales	$	1,208,376	$	985,850	$	—		$	2,194,226
Depreciation and amortization	38,333		62,836		9,075			110,244
Operating profit (loss)	329,054		205,609		(51,550)			483,113
Identifiable assets (b)	997,460		1,740,259		782,188		(a)	3,519,907
Property, plant and equipment expenditures	30,400		26,010		7,834			64,244

(a)Corporate assets are principally cash and cash equivalents, deferred income taxes, leases, headquarter facilities, the major portion of our enterprise management system, and intangible assets. Includes assets held for sale in 2020, see Note 4.

(b)Operating segment identifiable assets include notes and accounts receivable net of allowance for doubtful accounts, inventories net of reserves, property, plant and equipment net of accumulated depreciation and goodwill.

We have significant sales and long-lived assets in the following geographic areas:

	2021		2020		2019
Net external sales
United States	$	789,303	$	755,642	$	758,383
Americas	179,807		141,473		167,661
Europe	617,492		536,636		571,596
Japan	107,572		126,601		126,756
Asia Pacific	668,035		560,748		569,830
Total net external sales	$	2,362,209	$	2,121,100	$	2,194,226
Long-lived assets
United States	$	311,254	$	329,390	$	286,894
Americas	11,624		2,307		1,948
Europe	67,776		69,854		44,041
Japan	18,318		22,733		6,169
Asia Pacific	57,444		56,459		59,843
Total long-lived assets	$	466,416	$	480,743	$	398,895

Long-lived assets includes property, plant and equipment - net and operating right of use lease assets, which were recorded as a result of the new lease standard as codified in ASC 842 and excludes amounts held for sale in 2020, see Note 4. The increase in 2020 was driven primarily by the recording of the operating right of use lease assets.

A reconciliation of total segment operating profit to total consolidated income before income taxes is as follows:

	2021		2020		2019
Total profit for reportable segments	$	615,127	$	349,545	$	483,113
Interest expense	(25,491)		(32,160)		(47,145)
Interest and investment income	2,150		1,681		1,844
Other-net	(17,610)		(17,577)		(6,708)
Income before income taxes	$	574,176	$	301,489	$	431,104

A reconciliation of total assets for reportable segments to total consolidated assets is as follows:

	2021		2020		2019
Total identifiable assets for reportable segments	$	3,768,484	$	3,680,385	$	3,519,907
Customer advance payments	77,868		42,323		41,131
Eliminations	(55,391)		(48,052)		(44,591)
Total consolidated assets	$	3,790,961	$	3,674,656	$	3,516,447