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 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, 2017.

The following table presents information about our segments:

	Adhesive Dispensing Systems			Advanced Technology Systems		Industrial Coating Systems		Corporate			Total
Three months ended
April 30, 2018
Net external sales	$	238,775		$	250,839	$	64,092	$	—		$	553,706
Operating profit (loss)		69,514	(a)		58,306		11,572		(12,687	)		126,705
Three months ended
April 30, 2017
Net external sales	$	226,943		$	210,142	$	59,052	$	—		$	496,137
Operating profit (loss)		65,719	(b)		54,306		10,252		(26,746	)		103,531
Six months ended
April 30, 2018
Net external sales	$	459,639		$	522,540	$	121,951	$	—		$	1,104,130
Operating profit (loss)		122,829	(a)		125,574		21,732		(25,707	)		244,428
Six months ended
April 30, 2017
Net external sales	$	434,780		$	355,502	$	113,325	$	—		$	903,607
Operating profit (loss)		118,775	(b)		80,669		17,337		(37,332	)		179,449

(a)

Includes $1,082 and $2,149 of severance and restructuring costs in the three and six months ended April 30, 2018, respectively.

(b)

Includes $491 and $718 of severance and restructuring costs in the three and six months ended April 30, 2017, 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, 2018			April 30, 2017			April 30, 2018			April 30, 2017
Total profit for reportable segments	$	126,705		$	103,531		$	244,428		$	179,449
Interest expense		(12,127	)		(7,907	)		(23,445	)		(13,548	)
Interest and investment income		219			272			509			545
Other-net		3,322			(1,323	)		145			(1,480	)
Income before income taxes	$	118,119		$	94,573		$	221,637		$	164,966

We have significant sales in the following geographic regions:

	Three Months Ended				Six Months Ended
	April 30, 2018		April 30, 2017		April 30, 2018		April 30, 2017
United States	$	178,821	$	156,095	$	344,652	$	281,616
Americas		38,959		36,326		73,238		66,368
Europe		154,736		128,468		296,674		247,627
Japan		33,030		30,855		98,899		55,032
Asia Pacific		148,160		144,393		290,667		252,964
Total net external sales	$	553,706	$	496,137	$	1,104,130	$	903,607