Operating segments and geographic area data

12 Months Ended

Oct. 31, 2011

Operating segments and geographic area data [Abstract]

Operating segments and geographic area data

Note 16 — Operating segments and geographic area data

We conduct business in three primary operating 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 and expense in 2011 related to the withdrawal from a multiemployer employee pension fund in Japan. The accounting policies of the segments are generally the same as those described in Note 1, Significant Accounting Policies.

No single customer accounted for five percent or more of sales in 2011, 2010 or 2009.

The following table presents information about our reportable segments:

	Adhesive Dispensing Systems			Advanced Technology Systems			Industrial Coating Systems			Corporate			Total
Year ended October 31, 2011
Net external sales	$	611,911		$	438,634		$	182,614		$	—		$	1,233,159
Depreciation		7,087			7,869			2,837			2,965			20,758
Operating profit		210,350	(a)		114,903			26,977			(36,687	)(b)		315,543
Identifiable assets (c)		286,974			692,295			70,622			270,500			1,320,391
Expenditures for long-lived assets		4,477			4,842			2,428			8,492			20,239
Year ended October 31, 2010
Net external sales	$	525,290		$	369,449		$	146,812		$	—		$	1,041,551
Depreciation		8,014			7,641			2,851			4,119			22,625
Operating profit (loss)		166,255			84,247			14,588			(30,257	)(b)		234,833
Identifiable assets (c)		251,881			477,563			61,256			206,663	(d)		997,363
Expenditures for long-lived assets		1,857			2,792			548			9,120			14,317
Year ended October 31, 2009
Net external sales	$	460,746		$	242,247		$	116,172		$	—		$	819,165
Depreciation		9,087			7,268			3,326			6,629			26,310
Operating profit		127,589			(214,781	)(e)		(6,895	)(e)		(33,720	)(b)		(127,807	)
Identifiable assets (c)		226,904			448,196			53,176			168,686	(d)		896,962
Expenditures for long-lived assets		1,922			7,089			865			2,638			12,514

(a) Includes $1,811 of impairment charges related to write down of assets to fair value, and $1,589 of severance charges and other termination fees.

(b) Includes $3,120 of expense related to the withdrawal from a multiemployer employee pension fund in Japan in 2011 and severance charges of $2,029 and $16,396 in 2010 and 2009, respectively.

(c) Includes notes and accounts receivable net of customer advance payments and allowance for doubtful accounts, inventories net of reserves, property, plant and equipment net of accumulated depreciation and goodwill.

(d) Corporate assets are principally cash and cash equivalents, deferred income taxes, investments, capital leases, headquarter facilities, the major portion of our enterprise management system, and intangible assets.

(e) Includes goodwill and long-lived asset impairments of $239,427 in the Advanced Technology Systems segment and $3,616 in the Industrial Coating Systems segment.

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

	2011		2010		2009
Net external sales
United States	$	312,328	$	273,652	$	234,038
Americas		102,077		78,058		60,632
Europe		390,319		336,119		294,951
Japan		111,003		93,318		81,678
Asia Pacific		317,432		260,404		147,866
Total net external sales	$	1,233,159	$	1,041,551	$	819,165
Long-lived assets
United States	$	90,994	$	80,974	$	79,675
Americas		2,933		1,865		1,703
Europe		16,312		13,401		15,329
Japan		3,496		3,587		3,257
Asia Pacific		17,148		16,568		18,327
Total long-lived assets	$	130,883	$	116,395	$	118,291

Sales in 2010 and 2009 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.

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

	2011			2010			2009
Total profit (loss) for reportable segments	$	315,543		$	234,833		$	(127,807	)
Interest expense		(5,069	)		(6,263	)		(7,771	)
Interest and investment income		569			819			492
Other-net		3,518			1,930			7,895
Income (loss) before income taxes	$	314,561		$	231,319		$	(127,191	)

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

	2011			2010			2009
Total assets for reportable segments	$	1,320,391		$	997,363		$	896,962
Customer advance payments		9,375			10,999			8,807
Eliminations		(25,316	)		(22,008	)		(15,095	)
Total consolidated assets	$	1,304,450		$	986,354		$	890,674