Operating Segments and Geographic Area Data

12 Months Ended

Oct. 31, 2015

Segment Reporting [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. 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.

No single customer accounted for 10 percent or more of sales in 2015, 2014 or 2013.

The following table presents information about our reportable segments:

	Adhesive Dispensing Systems			Advanced Technology Systems			Industrial Coating Systems			Corporate				Total
Year ended October 31, 2015
Net external sales	$	836,066		$	593,858		$	258,742		$	—			$	1,688,666
Depreciation		14,804			13,015			3,194			6,694				37,707
Operating profit (loss)		195,902	(a)		120,940	(b)		41,458	(c)		(40,570	)			317,730
Identifiable assets (e)		734,145			1,021,221			130,421			486,852		(d)		2,372,639
Expenditures for long-lived assets		12,880			36,182			5,112			7,913				62,087
Year ended October 31, 2014
Net external sales	$	899,696		$	561,784		$	242,541		$	—			$	1,704,021
Depreciation		15,467			10,433			3,368			5,178				34,446
Operating profit (loss)		229,556	(a)		140,240	(b)		38,117	(c)		(40,808	)			367,105
Identifiable assets (e)		747,063			919,052			130,624			495,676		(d)		2,292,415
Expenditures for long-lived assets		15,886			15,163			4,057			8,468				43,574
Year ended October 31, 2013
Net external sales	$	793,488		$	516,266		$	233,167		$	—			$	1,542,921
Depreciation		15,326			9,180			3,084			4,176				31,766
Operating profit (loss)		203,757	(a)		123,403	(b)		33,786			(37,097	)			323,849
Identifiable assets (e)		750,616			721,524			113,835			467,809		(d)		2,053,784
Expenditures for long-lived assets		20,498			10,080			6,239			10,402				47,219

(a) Includes $7,972, $1,731 and $315 of severance and restructuring costs in 2015, 2014 and 2013, respectively.

(b) Includes $3,060, $579 and $811 of severance and restructuring costs 2015, 2014 and 2013, respectively.

(c) Includes $379 and $241 of severance and restructuring costs in 2015 and 2014, respectively.

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

(e) Operating segment identifiable assets include 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.

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

	2015		2014		2013
Net external sales
United States	$	529,893	$	503,776	$	465,789
Americas		129,325		120,993		123,654
Europe		462,565		494,538		416,725
Japan		107,797		127,057		127,945
Asia Pacific		459,086		457,657		408,808
Total net external sales	$	1,688,666	$	1,704,021	$	1,542,921
Long-lived assets
United States	$	187,212	$	159,946	$	136,551
Americas		1,735		2,451		4,154
Europe		21,231		21,039		22,576
Japan		5,876		5,967		4,384
Asia Pacific		33,886		35,036		33,314
Total long-lived assets	$	249,940	$	224,439	$	200,979

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

	2015			2014			2013
Total profit for reportable segments	$	317,730		$	367,105		$	323,849
Interest expense		(18,104	)		(15,035	)		(14,841	)
Interest and investment income		558			581			421
Other-net		678			(138	)		1,694
Income before income taxes	$	300,862		$	352,513		$	311,123

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

	2015			2014			2013
Total assets for reportable segments	$	2,372,639		$	2,292,415		$	2,053,784
Customer advance payments		22,884			25,578			28,341
Eliminations		(35,079	)		(37,863	)		(28,946	)
Total consolidated assets	$	2,360,444		$	2,280,130		$	2,053,179