Operating Segments and Geographic Area Data

12 Months Ended

Oct. 31, 2016

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 2016, 2015 or 2014.

The following table presents information about our reportable segments:

	Adhesive Dispensing Systems			Advanced Technology Systems			Industrial Coating Systems			Corporate				Total
Year ended October 31, 2016
Net external sales	$	879,573		$	676,329		$	253,092		$	—			$	1,808,994
Depreciation		15,229			15,386			3,308			7,320				41,243
Operating profit (loss)		229,143	(a)		159,531	(b)		43,511	(c)		(43,754	)			388,431
Identifiable assets (e)		751,153			1,080,711			140,169			465,424		(d)		2,437,457
Expenditures for long-lived assets		17,407			18,967			17,357			7,120				60,851
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

(a) Includes $7,800, $7,972 and $1,731 of severance and restructuring costs in 2016, 2015 and 2014, respectively.

(b) Includes $1,054, $3,060 and $579 of severance and restructuring costs 2016, 2015 and 2014, respectively.

(c) Includes $1,921, $379 and $241 of severance and restructuring costs in 2016, 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:

	2016		2015		2014
Net external sales
United States	$	531,117	$	529,893	$	503,776
Americas		124,657		129,325		120,993
Europe		503,869		462,565		494,538
Japan		122,054		107,797		127,057
Asia Pacific		527,297		459,086		457,657
Total net external sales	$	1,808,994	$	1,688,666	$	1,704,021
Long-lived assets
United States	$	209,959	$	187,212	$	159,946
Americas		1,730		1,735		2,451
Europe		23,943		21,231		21,039
Japan		6,408		5,876		5,967
Asia Pacific		31,089		33,886		35,036
Total long-lived assets	$	273,129	$	249,940	$	224,439

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

	2016			2015			2014
Total profit for reportable segments	$	388,431		$	317,730		$	367,105
Interest expense		(21,322	)		(18,104	)		(15,035	)
Interest and investment income		728			558			581
Other-net		657			678			(138	)
Income before income taxes	$	368,494		$	300,862		$	352,513

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

	2016			2015			2014
Total assets for reportable segments	$	2,437,457		$	2,372,639		$	2,292,415
Customer advance payments		26,175			22,884			25,578
Eliminations		(41,267	)		(35,079	)		(37,863	)
Total consolidated assets	$	2,422,365		$	2,360,444		$	2,280,130