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
July 31, 2018
Net external sales	$	244,728		$	266,595	$	69,920	$	—		$	581,243
Operating profit (loss)		68,490	(a)		67,158		15,179		(15,251	)		135,576
Three months ended
July 31, 2017
Net external sales	$	233,367		$	290,406	$	65,665	$	—		$	589,438
Operating profit (loss)		66,451	(b)		87,385		13,192		(13,562	)		153,466
Nine months ended
July 31, 2018
Net external sales	$	704,367		$	789,135	$	191,871	$	—		$	1,685,373
Operating profit (loss)		191,319	(a)		192,732		36,911		(40,958	)		380,004
Nine months ended
July 31, 2017
Net external sales	$	668,146		$	645,907	$	178,991	$	—		$	1,493,044
Operating profit (loss)		185,226	(b)		168,054		30,529		(50,895	)		332,914

(a)

Includes $1,490 and $3,639 of severance and restructuring costs in the three and nine months ended July 31, 2018, respectively.

(b)

Includes $703 and $1,421 of severance and restructuring costs in the three and nine months ended July 31, 2017, 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, 2018			July 31, 2017			July 31, 2018			July 31, 2017
Total profit for reportable segments	$	135,576		$	153,466		$	380,004		$	332,914
Interest expense		(13,765	)		(11,306	)		(37,210	)		(24,854	)
Interest and investment income		356			268			865			813
Other-net		528			27			673			(1,452	)
Income before income taxes	$	122,695		$	142,455		$	344,332		$	307,421

We have significant sales in the following geographic regions:

	Three Months Ended				Nine Months Ended
	July 31, 2018		July 31, 2017		July 31, 2018		July 31, 2017
United States	$	191,512	$	182,953	$	536,164	$	464,569
Americas		38,911		41,604		112,149		107,971
Europe		150,710		133,846		447,384		381,473
Japan		28,367		41,472		127,266		96,504
Asia Pacific		171,743		189,563		462,410		442,527
Total net external sales	$	581,243	$	589,438	$	1,685,373	$	1,493,044