Operating segments

9 Months Ended

Jul. 31, 2014

Segment Reporting [Abstract]

Operating segments

10. Operating segments

We conduct business across three primary business segments: Adhesive Dispensing Systems, Advanced Technology Systems, and Industrial Coating Systems. 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, of our annual report on Form 10-K for the year ended October 31, 2013.

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

	Adhesive Dispensing Systems			Advanced Technology Systems			Industrial Coating Systems		Corporate			Total
Three months ended July 31, 2014
Net external sales	$	226,762		$	174,636		$	57,152	$	—		$	458,550
Operating profit (loss)		60,806			56,444			7,471		(10,266	)		114,455
Three months ended July 31, 2013
Net external sales	$	195,992		$	150,280		$	56,688	$	—		$	402,960
Operating profit (loss)		50,998	(a)		42,465	(b)		7,585		(7,832	)		93,216
Nine months ended July 31, 2014
Net external sales	$	668,187		$	399,805		$	167,439	$	—		$	1,235,431
Operating profit (loss)		171,425	(c)		97,664	(d)		21,762		(29,703	)		261,148
Nine months ended July 31, 2013
Net external sales	$	575,750		$	388,990		$	167,363	$	—		$	1,132,103
Operating profit (loss)		146,011	(a)		96,310	(b)		22,896		(28,235	)		236,982

(a) Includes $58 and $315 of severance and restructuring costs in the three and nine months ended July 31, 2013, respectively.

(b) Includes $265 and $712 of severance and restructuring costs in the three and nine months ended July 31, 2013, respectively.

(c) Includes $699 of severance and restructuring costs in the nine months ended July 31, 2014.

(d) Includes $579 of severance and restructuring costs in the nine months ended July 31, 2014.

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

	Three Months Ended						Nine Months Ended
	July 31, 2014			July 31, 2013			July 31, 2014			July 31, 2013
Total profit for reportable segments	$	114,455		$	93,216		$	261,148		$	236,982
Interest expense		(3,810	)		(3,353	)		(10,917	)		(11,045	)
Interest and investment income		137			112			466			304
Other-net		(236	)		2,699			(851	)		934
Income before income taxes	$	110,546		$	92,674		$	249,846		$	227,175

We had significant sales in the following geographic regions:

	Three Months Ended				Nine Months Ended
	July 31, 2014		July 31, 2013		July 31, 2014		July 31, 2013
United States	$	119,705	$	115,809	$	360,904	$	341,926
Americas		31,296		28,017		89,705		91,851
Europe		126,639		103,877		365,172		297,708
Japan		34,593		26,704		89,727		93,914
Asia Pacific		146,317		128,553		329,923		306,704
Total net external sales	$	458,550	$	402,960	$	1,235,431	$	1,132,103