Operating Segments

6 Months Ended

Apr. 30, 2017

Segment Reporting [Abstract]

Operating Segments

12. 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 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, 2016.

The following table presents information about our segments:

	Adhesive Dispensing Systems			Advanced Technology Systems			Industrial Coating Systems			Corporate			Total
Three months ended
April 30, 2017
Net external sales	$	226,943		$	210,142		$	59,052		$	—		$	496,137
Operating profit (loss)		65,719	(a)		54,306			10,252	(d)		(26,746	)		103,531
Three months ended
April 30, 2016
Net external sales	$	221,030		$	158,555		$	58,007		$	—		$	437,592
Operating profit (loss)		62,977	(b)		38,731	(c)		10,292			(10,096	)		101,904
Six months ended
April 30, 2017
Net external sales	$	434,780		$	355,502		$	113,325		$	—		$	903,607
Operating profit (loss)		118,775	(a)		80,669			17,337			(37,332	)		179,449
Six months ended
April 30, 2016
Net external sales	$	424,469		$	276,415		$	108,928		$	—		$	809,812
Operating profit (loss)		113,337	(b)		46,704	(c)		14,470	(d)		(20,629	)		153,882

(a) Includes $491 and $718 of severance and restructuring costs in the three and six months ended April 30, 2017, respectively.

(b) Includes $991 and $1,471 of severance and restructuring costs in the three and six months ended April 30, 2016, respectively.

(c) Includes $170 and $680 of severance and restructuring costs in the three and six months ended April 30, 2016, respectively.

(d) Includes $472 and $499 of severance and restructuring costs in the three and six months ended April 30, 2016, respectively.  

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

	Three Months Ended						Six Months Ended
	April 30, 2017			April 30, 2016			April 30, 2017			April 30, 2016
Total profit for reportable segments	$	103,531		$	101,904		$	179,449		$	153,882
Interest expense		(7,907	)		(5,000	)		(13,548	)		(10,844	)
Interest and investment income		272			188			545			326
Other-net		(1,323	)		1,727			(1,480	)		2,529
Income before income taxes	$	94,573		$	98,819		$	164,966		$	145,893

We have significant sales in the following geographic regions:

	Three Months Ended				Six Months Ended
	April 30, 2017		April 30, 2016		April 30, 2017		April 30, 2016
United States	$	156,095	$	131,262	$	281,616	$	248,653
Americas		36,326		33,582		66,368		60,289
Europe		128,468		125,933		247,627		245,651
Japan		30,855		29,366		55,032		48,869
Asia Pacific		144,393		117,449		252,964		206,350
Total net external sales	$	496,137	$	437,592	$	903,607	$	809,812

Total assets for our Advanced Technology Systems reportable segment increased to $1,682,181 at April 30, 2017 as compared to $1,080,711 at October 31, 2016 primarily as a result of our acquisition of businesses in 2017 as described in Note 4, Acquisitions. There have been no material changes in total assets of our other reportable segments from October 31, 2016.