Operating Segments

9 Months Ended

Jul. 31, 2016

Segment Reporting [Abstract]

Operating Segments

11. 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, 2015.

The following table presents information about our reportable segments:

	AdhesiveDispensing Systems			AdvancedTechnology Systems			IndustrialCoating Systems			Corporate			Total
Three months ended
July 31, 2016
Net external sales	$	220,800		$	205,372		$	63,727		$	—		$	489,899
Operating profit (loss)		60,423	(a)		63,115			10,612	(c)		(10,464	)		123,686
Three months ended
July 31, 2015
Net external sales	$	211,649		$	184,888		$	66,194		$	—		$	462,731
Operating profit (loss)		54,854			44,633	(d)		12,326			(8,963	)		102,850
Nine months ended
July 31, 2016
Net external sales	$	645,269		$	481,787		$	172,655		$	—		$	1,299,711
Operating profit (loss)		173,760	(a)		109,819	(b)		25,082	(c)		(31,093	)		277,568
Nine months ended
July 31, 2015
Net external sales	$	609,135		$	446,588		$	186,743		$	—		$	1,242,466
Operating profit (loss)		148,963			96,221	(d)		27,604			(30,706	)		242,082

(a) Includes $759 and $2,230 of severance and restructuring costs in the three and nine months ended July 31, 2016, respectively.

(b) Includes$680 of severance and restructuring costs in the nine months ended July 31, 2016, respectively.

(c) Includes $955 and $1,454 of severance and restructuring costs in the three and nine months ended July 31, 2016, respectively.

(d) Includes $2,319 of severance and restructuring costs in the three and nine months ended July 31, 2015, respectively.

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, 2016			July 31, 2015			July 31, 2016			July 31, 2015
Total profit for reportable segments	$	123,686		$	102,850		$	277,568		$	242,082
Interest expense		(4,647	)		(4,504	)		(15,490	)		(12,907	)
Interest and investment income		176			111			501			349
Other-net		(1,978	)		2			551			(787	)
Income before income taxes	$	117,237		$	98,459		$	263,130		$	228,737

We have significant sales in the following geographic regions:

	Three Months Ended				Nine Months Ended
	July 31, 2016		July 31, 2015		July 31, 2016		July 31, 2015
United States	$	135,067	$	129,290	$	383,720	$	392,144
Americas		30,534		34,929		90,823		94,225
Europe		128,583		120,580		374,234		334,244
Japan		34,709		26,647		83,578		76,679
Asia Pacific		161,006		151,285		367,356		345,174
Total net external sales	$	489,899	$	462,731	$	1,299,711	$	1,242,466