Operating Segments and Geographic Area Data

12 Months Ended

Oct. 31, 2022

Segment Reporting [Abstract]

Operating Segments and Geographic Area Data

Operating segments and geographic area data

We conduct business in three primary operating segments: Industrial Precision Solutions, Medical and Fluid 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 the same as those described in Note 1, Significant Accounting Policies.

Effective in the fourth quarter of 2022, we realigned our former two operating segments into three: Industrial Precision Solutions, Medical and Fluid Solutions, and Advanced Technology Solutions. Existing product lines were unchanged as part of this new structure. We made changes to realign our management team and our operating segments. This realignment gives us better visibility into our medical and electronics platforms, which have grown significantly through both organic and acquisitive opportunities. The revised operating segments better reflect how we now manage the Company, allocate resources and assess performance of the businesses. Certain reclassifications have been made to our segment disclosures, principally related to this segment change. We also revised our geographic regions, such that the United States and Japan are now included in the Americas and Asia Pacific, respectively. As such, our geographical regions as used throughout this report include the Americas (United States, Canada, Mexico and Central and South America), Asia Pacific (including Japan) and Europe.

Industrial Precision Solutions: This segment is focused on delivering proprietary dispensing and processing technology, both standard and highly customized equipment, to diverse end markets. Product lines commonly reduce material consumption, increase line efficiency through precision dispense and measurement and control, 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.

Medical and Fluid Solutions: This segment includes the Company’s fluid management solutions for medical, high-tech industrial and other diverse end markets. Related plastic tubing, balloons, catheters, syringes, cartridges, tips and fluid connection components are used to dispense or control fluids within customers’ medical devices or products, as well as production processes.

Advanced Technology Solutions: This segment is focused on products serving electronics end markets. Advanced Technology Solutions products integrate our proprietary product technologies found in progressive stages of an electronics customer’s production processes, such as surface treatment, precisely controlled dispensing of material and test and inspection to ensure quality and reliability. Applications include, but are not limited to, semiconductors, printed circuit boards, electronic components and automotive electronics.

No single customer accounted for 10 percent or more of sales in 2022, 2021 or 2020.

The following table presents information about our reportable segments:

	Industrial Precision Solutions		Medical and Fluid Solutions		Advanced Technology Solutions		Corporate			Total
Year ended October 31, 2022
Net external sales	$	1,337,242	$	690,177	$	562,859	$	—		$	2,590,278
Depreciation and amortization	27,891		54,674		8,780		8,578			99,923
Operating profit (loss)	434,476		217,199		133,253		(82,568)			702,360
Identifiable assets (b)	1,112,825		1,558,861		397,250		812,964		(a)	3,881,900
Property, plant and equipment expenditures	9,490		31,009		2,383		8,546			51,428
Year ended October 31, 2021
Net external sales	$	1,246,947	$	641,654	$	473,608	$	—		$	2,362,209
Depreciation and amortization	25,673		56,600		11,826		9,784			103,883
Operating profit (loss)	414,192		198,194		73,466		(70,725)			615,127
Identifiable assets (b)	964,840		1,519,144		394,572		967,796		(a)	3,846,352
Property, plant and equipment expenditures	9,009		21,115		1,949		6,230			38,303
Year ended October 31, 2020
Net external sales	$	1,143,423	$	564,899	$	412,778	$	—		$	2,121,100
Depreciation and amortization	38,939		53,588		10,955		9,820			113,302
Operating profit (loss)	208,028		150,296		41,306		(50,085)			349,545
Identifiable assets (b)	915,148		1,482,585		396,617		928,358		(a)	3,722,708
Property, plant and equipment expenditures	18,545		27,892		3,628		470			50,535

(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:

	2022		2021		2020
Net external sales
Americas	$	1,096,596	$	969,110	$	897,115
Europe	645,603		617,492		536,636
Asia Pacific	848,079		775,607		687,349
Total net external sales	$	2,590,278	$	2,362,209	$	2,121,100
Long-lived assets
Americas	$	332,709	$	322,878	$	331,697
Europe	62,039		67,776		69,854
Asia Pacific	60,973		75,762		79,192
Total long-lived assets	$	455,721	$	466,416	$	480,743

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.

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

	2022		2021		2020
Total identifiable assets for reportable segments	$	3,881,900	$	3,846,352	$	3,722,708
Eliminations	(61,525)		(55,391)		(48,052)
Total consolidated assets	$	3,820,375	$	3,790,961	$	3,674,656