Operating segments

6 Months Ended

Apr. 30, 2011

12.		Operating segments. We conduct business across three primary business segments: Adhesive Dispensing Systems, Advanced Technology Systems, and Industrial Coating Systems. Effective November 1, 2010, the Industrial Coating Systems segment includes our industrial UV Curing product line that had previously been reported in the Advanced Technology Systems segment, where it was combined with our former UV Curing graphic arts and lamps product lines that were sold in 2010. This change more closely reflects the change in management of this product line and its related growth opportunities. Prior year results have been reclassified to reflect the segment change.

		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. In addition, the measure of segment operating profit that is reported to and reviewed by the chief operating decision maker excludes severance costs associated with the cost reduction program that began in 2008. The accounting policies of the segments are generally the same as those described in Note 1, Significant Accounting Policies, of our annual report on Form 10-K for the year ended October 31, 2010.

The following table presents sales and operating profits of our reportable segments:


	Adhesive			Advanced		Industrial
	Dispensing			Technology		Coating
	Systems			Systems		Systems		Corporate			Total


Three months ended April 30, 2011
Net external sales	$	159,432		$	113,013	$	46,479	$	—		$	318,924
Operating profit (loss)		59,649	^a		33,649		7,576		(8,446	)		92,428

Three months ended April 30, 2010
Net external sales	$	130,151		$	90,068	$	31,440	$	—		$	251,659
Operating profit (loss)		43,611			19,402		1,713		(7,136	)^b		57,590

Six months ended April 30, 2011
Net external sales	$	296,408		$	209,687	$	83,791	$	—		$	589,886
Operating profit (loss)		105,845	^a		56,842		10,708		(15,443	)		157,952

Six months ended April 30, 2010
Net external sales	$	247,164		$	164,908	$	60,176	$	—		$	472,248
Operating profit (loss)		75,898			32,368		1,830		(16,236	)^b		93,860

^a		— Includes $1,322 of impairment charges related to write down of assets to fair value.

^b		— Includes $571 of severance costs in the three months ended April 30, 2010 and $1,102 in the six months ended April 30, 2010.

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


Three months ended	April 30, 2011			April 30, 2010


Total profit for reportable segments	$	92,428		$	57,590
Interest expense		(1,338	)		(1,625	)
Interest and investment income		115			204
Other-net		1,791			204

Income before income taxes	$	92,996		$	56,373


Six months ended	April 30, 2011			April 30, 2010


Total profit for reportable segments	$	157,952		$	93,860
Interest expense		(2,733	)		(3,081	)
Interest and investment income		240			479
Other-net		2,727			523

Income before income taxes	$	158,186		$	91,781

We had significant sales in the following geographic regions:


Three months ended	April 30, 2011		April 30, 2010


United States	$	79,300	$	66,638
Americas		26,158		18,766
Europe		98,049		82,806
Japan		30,159		22,585
Asia Pacific		85,258		60,864

Total net sales	$	318,924	$	251,659


Six months ended	April 30, 2011		April 30, 2010


United States	$	149,573	$	125,384
Americas		46,018		35,410
Europe		188,307		161,449
Japan		55,232		40,177
Asia Pacific		150,756		109,828

Total net sales	$	589,886	$	472,248

Prior year sales include reclassification adjustments primarily into Asia Pacific from the United States based on more accurate end-user destination information for products sold by our Advanced Technology Systems segment to certain global customers.