Operating Segments and Geographic Area Data

12 Months Ended

Oct. 31, 2018

Segment Reporting [Abstract]

Operating Segments and Geographic Area Data

Note 15 — 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 2018, 2017 or 2016.

The following table presents information about our reportable segments:

	Adhesive Dispensing Systems		Advanced Technology Systems		Industrial Coating Systems		Corporate				Total
Year ended October 31, 2018
Net external sales	$	955,192	$	1,039,366	$	260,110	$	—			$	2,254,668
Depreciation and amortization		31,597		62,594		6,166		8,050				108,407
Operating profit (loss)		259,493		243,523		50,638		(59,097	)			494,557
Identifiable assets (b)		829,696		1,713,404		122,088		763,734		(a)		3,428,922
Expenditures for long-lived assets		46,911		16,205		8,546		18,128				89,790
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		228,062		43,991		(67,931	)			457,702
Identifiable assets (b)		794,699		1,718,844		120,458		790,940		(a)		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		159,531		43,511		(43,754	)			388,431
Identifiable assets (b)		751,153		1,080,711		140,169		463,642		(a)		2,435,675
Expenditures for long-lived assets		17,407		18,967		17,357		7,120				60,851

(a) 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.  

(b) 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:

	2018		2017		2016
Net external sales
United States	$	720,832	$	647,657	$	531,117
Americas		158,837		147,026		124,657
Europe		622,108		530,812		503,869
Japan		161,771		147,189		122,054
Asia Pacific		591,120		594,298		527,297
Total net external sales	$	2,254,668	$	2,066,982	$	1,808,994
Long-lived assets
United States	$	279,437	$	266,921	$	209,959
Americas		2,158		2,322		1,730
Europe		41,663		39,102		23,943
Japan		5,492		5,594		6,408
Asia Pacific		57,916		32,472		31,089
Total long-lived assets	$	386,666	$	346,411	$	273,129

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

	2018			2017			2016
Total profit for reportable segments	$	494,557		$	457,702		$	388,431
Interest expense		(49,576	)		(36,601	)		(21,322	)
Interest and investment income		1,384			1,124			728
Other-net		2,154			(1,934	)		657
Income before income taxes	$	448,519		$	420,291		$	368,494

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

	2018			2017			2016
Total assets for reportable segments	$	3,428,922		$	3,424,941		$	2,435,675
Customer advance payments		38,997			34,654			26,175
Eliminations		(46,907	)		(45,056	)		(41,267	)
Total consolidated assets	$	3,421,012		$	3,414,539		$	2,420,583