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 2017, 2016 or 2015.

The following table presents information about our reportable segments:

	Adhesive Dispensing Systems			Advanced Technology Systems			Industrial Coating Systems			Corporate					Total
Year ended October 31, 2017
Net external sales	$	916,019		$	897,623		$	253,340			$	—				$	2,066,982
Depreciation and amortization		29,118			49,535			5,559				6,642					90,854
Operating profit (loss)		253,580	(a)		228,062	(b)		43,991				(67,931	)				457,702
Identifiable assets (e)		794,699			1,718,844			120,458				790,940		(d)			3,424,941
Expenditures for long-lived assets		35,310			21,135			9,108				6,005					71,558
Year ended October 31, 2016
Net external sales	$	879,573		$	676,329		$	253,092			$	—				$	1,808,994
Depreciation and amortization		28,294			29,649			5,041				7,320					70,304
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				463,642		(d)			2,435,675
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 and amortization		28,097			25,430			4,973				6,694					65,194
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				484,722		(d)			2,370,509
Expenditures for long-lived assets		12,880			36,182			5,112				7,913					62,087

(a)	Includes $2,618, $7,800 and $7,972 of severance and restructuring costs in 2017, 2016 and 2015, respectively.

(b)	Includes $(180), $1,054 and $3,060 of severance and restructuring costs in 2017, 2016 and 2015, respectively.

(c)	Includes $1,921 and $379 of severance and restructuring costs in 2016 and 2015, 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. Amounts for the years 2015 and 2016 have been adjusted to reflect the retrospective application of our reclassification of debt issuance costs upon the adoption of a new accounting standard, as described in Note 2.

(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:

	2017		2016		2015
Net external sales
United States	$	647,657	$	531,117	$	529,893
Americas		147,026		124,657		129,325
Europe		530,812		503,869		462,565
Japan		147,189		122,054		107,797
Asia Pacific		594,298		527,297		459,086
Total net external sales	$	2,066,982	$	1,808,994	$	1,688,666
Long-lived assets
United States	$	216,352	$	209,959	$	187,212
Americas		1,552		1,730		1,735
Europe		98,921		23,943		21,231
Japan		5,939		6,408		5,876
Asia Pacific		23,647		31,089		33,886
Total long-lived assets	$	346,411	$	273,129	$	249,940

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

	2017			2016			2015
Total profit for reportable segments	$	457,702		$	388,431		$	317,730
Interest expense		(36,601	)		(21,322	)		(18,104	)
Interest and investment income		1,124			728			558
Other-net		(1,934	)		657			678
Income before income taxes	$	420,291		$	368,494		$	300,862

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

	2017			2016			2015
Total assets for reportable segments	$	3,424,941		$	2,435,675		$	2,370,509
Customer advance payments		34,654			26,175			22,884
Eliminations		(45,056	)		(41,267	)		(35,079	)
Total consolidated assets	$	3,414,539		$	2,420,583		$	2,358,314