10-Q

FORM 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended April 30, 2019

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from           to         

Commission file number   0-7977

NORDSON CORPORATION

(Exact name of registrant as specified in its charter)

Ohio	34-0590250
(State of incorporation)	(I.R.S. Employer Identification No.)
28601 Clemens Road Westlake, Ohio	44145
(Address of principal executive offices)	(Zip Code)

(440) 892-1580

(Telephone Number)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol(s)		Name of Each Exchange On Which Registered
Common Shares, without par value	NDSN	Nasdaq Stock Market LLC

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months, and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to file such files).    Yes  ☒    No  ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.:

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date:  Common Shares, without par value as of May 31, 2019:  57,450,257

Nordson Corporation

Table of Contents

PART I – FINANCIAL INFORMATION	3
ITEM 1.  FINANCIAL STATEMENTS (UNAUDITED)	3
CONDENSED CONSOLIDATED STATEMENTS OF INCOME	3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME	4
CONDENSED CONSOLIDATED BALANCE SHEETS	5
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY	6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS	7
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS	8
ITEM 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	22
Critical Accounting Policies and Estimates	22
Results of Operations	22
Financial Condition	26
ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	28
ITEM 4.  CONTROLS AND PROCEDURES	28
PART II – OTHER INFORMATION	29
ITEM 1.  LEGAL PROCEEDINGS	29
ITEM 1A.  RISK FACTORS	29
ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	29
ITEM 6.  EXHIBITS	30
SIGNATURE	31

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Nordson Corporation

Part I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)

Condensed Consolidated Statements of Income

	Three Months Ended						Six Months Ended
	April 30, 2019			April 30, 2018			April 30, 2019			April 30, 2018
(In thousands, except for per share data)
Sales	$	551,119		$	553,706		$	1,049,029		$	1,104,130
Operating costs and expenses:
Cost of sales		249,590			246,691			478,524			496,142
Selling and administrative expenses		172,633			178,123			357,328			359,746
		422,223			424,814			835,852			855,888
Operating profit		128,896			128,892			213,177			248,242
Other income (expense):
Interest expense		(12,372	)		(12,127	)		(24,738	)		(23,445	)
Interest and investment income		325			219			642			509
Other - net		(568	)		1,135			(4,757	)		(3,669	)
		(12,615	)		(10,773	)		(28,853	)		(26,605	)
Income before income taxes		116,281			118,119			184,324			221,637
Income taxes		24,358			26,884			43,834			25,847
Net income	$	91,923		$	91,235		$	140,490		$	195,790
Average common shares		57,288			57,989			57,498			57,870
Incremental common shares attributable to outstanding    stock options, restricted stock, and deferred stock-based    compensation		768			956			719			1,038
Average common shares and common share equivalents		58,056			58,945			58,217			58,908
Basic earnings per share	$	1.60		$	1.57		$	2.44		$	3.38
Diluted earnings per share	$	1.58		$	1.55		$	2.41		$	3.32
Dividends declared per share	$	0.35		$	0.30		$	0.70		$	0.60

See accompanying notes.

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Nordson Corporation

Condensed Consolidated Statements of Comprehensive Income

	Three Months Ended						Six Months Ended
	April 30, 2019			April 30, 2018			April 30, 2019		April 30, 2018
(In thousands)
Net income	$	91,923		$	91,235		$	140,490	$	195,790
Components of other comprehensive income:
Foreign currency translation adjustments		(9,064	)		(19,284	)		7,399		19,298
Amortization of prior service cost and net actuarial    losses, net of tax		1,598			2,812			2,950		4,321
Total other comprehensive income (loss)		(7,466	)		(16,472	)		10,349		23,619
Total comprehensive income	$	84,457		$	74,763		$	150,839	$	219,409

See accompanying notes.

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Nordson Corporation

Condensed Consolidated Balance Sheets

	April 30, 2019			October 31, 2018
(In thousands)
Assets
Current assets:
Cash and cash equivalents	$	149,183		$	95,678
Receivables - net		489,745			491,423
Inventories - net		280,733			264,477
Prepaid expenses and other current assets		45,276			32,524
Total current assets		964,937			884,102
Property, plant and equipment - net		386,349			386,666
Goodwill		1,607,509			1,608,018
Intangible assets - net		471,207			499,741
Deferred income taxes		11,204			9,780
Other assets		33,882			32,705
Total assets	$	3,475,088		$	3,421,012
Liabilities and shareholders' equity
Current liabilities:
Accounts payable	$	93,039		$	83,590
Income taxes payable		13,711			19,319
Accrued liabilities		139,259			175,085
Customer advanced payments		42,110			38,997
Current maturities of long-term debt		153,734			28,734
Current obligations under capital leases		4,638			4,555
Total current liabilities		446,491			350,280
Long-term debt		1,220,391			1,285,357
Deferred income taxes		102,822			100,704
Pension obligations		108,418			113,222
Postretirement obligations		71,049			70,154
Other long-term liabilities		54,654			50,554
Shareholders' equity:
Common shares		12,253			12,253
Capital in excess of stated value		464,915			446,555
Retained earnings		2,592,955			2,488,375
Accumulated other comprehensive loss		(168,965	)		(179,314	)
Common shares in treasury, at cost		(1,429,895	)		(1,317,128	)
Total shareholders' equity		1,471,263			1,450,741
Total liabilities and shareholders' equity	$	3,475,088		$	3,421,012

See accompanying notes.

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Nordson Corporation

Condensed Consolidated Statements of Shareholders’ Equity

	Three and Six Months Ended April 30, 2019
(In thousands, except for per share data)	Common Shares		Additional Paid-in- Capital		Retained Earnings			AOCI			Common Shares in Treasury, at cost			TOTAL
November 1, 2018	$	12,253	$	446,555	$	2,488,375		$	(179,314	)	$	(1,317,128	)	$	1,450,741
Shares issued under company stock and employee    benefit plans				1,016								2,591			3,607
Stock-based compensation		—		4,359		—			—			—			4,359
Purchase of treasury shares (901,545 shares)		—		—		—			—			(107,667	)		(107,667	)
Dividends declared ($0.35 per share)		—		—		(20,210	)		—			—			(20,210	)
Net Income		—		—		48,567			—			—			48,567
Impact of adoption of ASU 2014-09 (See Note 2)		—		—		4,329			—			—			4,329
Other Comprehensive Income:
Foreign currency translation adjustments		—		—		—			16,463			—			16,463
Defined benefit pension and post-retirement    plans adjustment		—		—		—			1,352			—			1,352
January 31, 2019	$	12,253	$	451,930	$	2,521,061		$	(161,499	)	$	(1,422,204	)	$	1,401,541
Shares issued under company stock and employee    benefit plans		—		8,116		—			—			2,731			10,847
Stock-based compensation		—		4,869		—			—			—			4,869
Purchase of treasury shares (78,957 shares)		—		—		—			—			(10,422	)		(10,422	)
Dividends declared ($0.35 per share)		—		—		(20,029	)		—			—			(20,029	)
Net Income		—		—		91,923			—			—			91,923
Other Comprehensive Income (Loss):
Foreign currency translation adjustments		—		—		—			(9,064	)		—			(9,064	)
Defined benefit pension and post-retirement    plans adjustment		—		—		—			1,598			—			1,598
April 30, 2019	$	12,253	$	464,915	$	2,592,955		$	(168,965	)	$	(1,429,895	)	$	1,471,263

	Three and Six Months Ended April 30, 2018
(In thousands, except for per share data)	Common Shares		Additional Paid-in- Capital		Retained Earnings			AOCI			Common Shares in Treasury, at cost			TOTAL
November 1, 2017	$	12,253	$	412,785	$	2,164,597		$	(134,435	)	$	(1,299,707	)	$	1,155,493
Shares issued under company stock and employee    benefit plans		—		6,526		—			—			3,779			10,305
Stock-based compensation		—		6,987		—			—			—			6,987
Purchase of treasury shares (34,645 shares)		—		—		—			—			(4,989	)		(4,989	)
Dividends declared ($0.30 per share)		—		—		(17,321	)		—			—			(17,321	)
Net Income		—		—		104,555			—			—			104,555
Other Comprehensive Income:
Foreign currency translation adjustments		—		—		—			38,582			—			38,582
Defined benefit pension and post-retirement    plans adjustment		—		—		—			1,509			—			1,509
January 31, 2018	$	12,253	$	426,298	$	2,251,831		$	(94,344	)	$	(1,300,917	)	$	1,295,121
Shares issued under company stock and employee    benefit plans		—		3,645		—			—			1,646			5,291
Stock-based compensation		—		5,127		—			—			—			5,127
Purchase of treasury shares (120 shares)		—		—		—			—			(16	)		(16	)
Dividends declared ($0.30 per share)		—		—		(17,376	)		—			—			(17,376	)
Net Income		—		—		91,235			—			—			91,235
Other Comprehensive Income (Loss):
Foreign currency translation adjustments		—		—		—			(19,284	)		—			(19,284	)
Defined benefit pension and post-retirement    plans adjustment		—		—		—			2,812			—			2,812
April 30, 2018	$	12,253	$	435,070	$	2,325,690		$	(110,816	)	$	(1,299,287	)	$	1,362,910

See accompanying notes.

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Nordson Corporation

Condensed Consolidated Statements of Cash Flows

Six months ended	April 30, 2019			April 30, 2018
(In thousands)
Cash flows from operating activities:
Net income	$	140,490		$	195,790
Depreciation and amortization		55,488			53,716
Non-cash stock compensation		9,228			12,114
Deferred income taxes		(828	)		(46,531	)
Other non-cash expense		1,213			539
Loss on sale of property, plant and equipment		884			675
Changes in operating assets and liabilities		(44,563	)		(3,992	)
Net cash provided by operating activities		161,912			212,311
Cash flows from investing activities:
Additions to property, plant and equipment		(26,603	)		(33,049	)
Proceeds from sale of property, plant and equipment		984			235
Acquisition of businesses, net of cash acquired		(69	)		(44,176	)
Net cash used in investing activities		(25,688	)		(76,990	)
Cash flows from financing activities:
Proceeds from short-term borrowings		—			996
Repayment of short-term borrowings		—			(1,006	)
Proceeds from long-term debt		186,084			125,904
Repayment of long-term debt		(125,807	)		(171,067	)
Repayment of capital lease obligations		(2,963	)		(2,828	)
Issuance of common shares		14,454			15,595
Purchase of treasury shares		(118,089	)		(5,005	)
Dividends paid		(40,239	)		(34,697	)
Net cash used in financing activities		(86,560	)		(72,108	)
Effect of exchange rate changes on cash		3,841			2,350
Increase in cash and cash equivalents		53,505			65,563
Cash and cash equivalents:
Beginning of year		95,678			90,383
End of period	$	149,183		$	155,946

See accompanying notes.

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Nordson Corporation

Notes to Condensed Consolidated Financial Statements

April 30, 2019

NOTE REGARDING AMOUNTS AND FISCAL YEAR REFERENCES

In this quarterly report, all amounts related to United States dollars and foreign currency and to the number of Nordson Corporation’s common shares, except for per share earnings and dividend amounts, are expressed in thousands.

Unless otherwise noted, all references to years relate to our fiscal year ending October 31.

1. Significant accounting policies

Basis of presentation.  The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X.  Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.  In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.  Operating results for the three and six months ended April 30, 2019 are not necessarily indicative of the results that may be expected for the full year.  For further information, refer to the consolidated financial statements and footnotes included in our Annual Report on Form 10-K for the year ended October 31, 2018. Certain reclassifications have been made to the prior year financial statements to conform to current year classifications.

Basis of consolidation.  The consolidated financial statements include the accounts of Nordson Corporation and its majority-owned and controlled subsidiaries.  Investments in affiliates and joint ventures in which our ownership is 50% or less or in which we do not have control but have the ability to exercise significant influence, are accounted for under the equity method.  All significant intercompany accounts and transactions have been eliminated in consolidation.  

Use of estimates.  The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements.  Actual amounts could differ from these estimates.

Earnings per share.  Basic earnings per share are computed based on the weighted-average number of common shares outstanding during each year, while diluted earnings per share are based on the weighted-average number of common shares and common share equivalents outstanding.  Common share equivalents consist of shares issuable upon exercise of stock options computed using the treasury stock method, as well as restricted shares and deferred stock-based compensation.  Options with an exercise price higher than the average market price are excluded from the calculation of diluted earnings per share because the effect would be anti-dilutive.  No options were excluded from the calculation of diluted earnings per share for the three months ended April 30, 2019. Options excluded from the calculation of diluted earnings per share for the six months ended April 30, 2019 were 352. No options were excluded from the calculation of diluted earnings per share for the three and six months ended April 30, 2018.

2. Revenue recognition

Adoption of new accounting standard:

On November 1, 2018, we adopted ASU 2014-09 (“Topic 606”) using the modified retrospective method applied to those contracts which were not completed as of November 1, 2018. Results for reporting periods beginning after November 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting. The cumulative impact of adopting Topic 606 as of November 1, 2018 did not have a material impact to the Consolidated Financial Statements. The Company does not expect the impact of the adoption of Topic 606 to be material to the Consolidated Financial Statements on an ongoing basis.

Accounting policy:

A contract exists when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of the consideration is probable.  Revenue is recognized when performance obligations under the terms of the contract with a customer are satisfied.  Generally, our revenue results from short-term, fixed-price contracts and continues to primarily be recognized as of a point in time when the product is shipped or at a later point when the control of the product transfers to the customer. Revenue for undelivered items is deferred and included within Accrued liabilities in our Consolidated Balance Sheets. Revenues deferred in 2019 and 2018 were not material.

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Nordson Corporation

However, for certain contracts related to the sale of customer-specific product within our Advanced Technology Systems segment, there was a change in revenue recognition upon adoption of the new revenue standard. Previously, these contracts were recognized at the point in time when the shipping terms were satisfied.  Under the new revenue standard, we now recognize revenue for these contracts over time as we satisfy performance obligations because of the continuous transfer of control to the customer. The continuous transfer of control to the customer occurs as we enhance assets that are customer controlled and we are contractually entitled to payment for work performed to date plus a reasonable margin.  

As control transfers over time for these products or services, revenue is recognized based on progress toward completion of the performance obligations.  The selection method to measure progress towards completion requires judgment and is based on the nature of the products or services to be provided.  We have elected to use the input method – costs incurred for these contracts because it best depicts the transfer of products or services to the customer based on incurring costs on the contract.  Under this method, revenues are recorded proportionally as costs are incurred.  Contract assets recognized are recorded in Prepaid expenses and other current assets and contract liabilities are recorded in Accrued liabilities in our Consolidated Balance Sheets and were not material at April 30, 2019.  Revenue recognized over time is not material to our overall Consolidated Financial Statements.

Revenue is measured as the amount of consideration we expect to receive in exchange for transferring products or services.  Sales, value add, and other taxes we collect concurrently with revenue-producing activities are excluded from revenue.  As a practical expedient, we may exclude the assessment of whether goods or services are performance obligations, if they are immaterial in the context of the contract, and combine these with other performance obligations.  While payment terms and conditions vary by contract type, we have determined that our contracts generally do not include a significant financing component.  We have elected to apply the practical expedient to treat all shipping and handling costs as fulfillment costs as a significant portion of these costs are incurred prior to transfer of control to the customer.  We have also elected to apply the practical expedient to expense sales commissions as they are incurred as the amortization period resulting from capitalizing the costs is one year or less. These costs are recorded within Selling, general and administrative expenses in our Consolidated Statements of Income.

We offer assurance type warranties on our products as well as separately sold warranty contracts.  Revenue related to warranty contracts that are sold separately is recognized over the life of the warranty term. See Note 11 for details on our warranties.

Certain arrangements may include installation, installation supervision, training, and spare parts, which tend to be completed in a short period of time, at an insignificant cost, and utilizing skills not unique to us, therefore, are typically regarded as inconsequential or not material.

We disclose disaggregated revenues by operating segment and geography in accordance with the revenue standard and on the same basis used internally by the chief operating decision maker for evaluating performance of operating segments and for allocating resources.  See Note 12 for details on our operating segments.    

3. Recently issued accounting standards

New accounting guidance adopted:

In March 2017, the FASB issued a new standard which requires the presentation of the service cost component of the net periodic benefit cost in the same income statement line item as other employee compensation costs arising from services rendered during the period. All other components of net periodic benefit cost will be presented below operating income. Additionally, only the service cost component will be eligible for capitalization in assets.  We adopted the standard beginning November 1, 2018.  During the three and six months ended April 30, 2018, the reclassification resulted in an increase in Other expense of $2,187 and $3,814, respectively, as a result of a decrease in Cost of goods sold of $187 and $157, respectively, and a decrease in Selling, general & administrative expenses of $2,000 and $3,657, respectively.   

New accounting guidance issued and not yet adopted:

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) which requires a lessee to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases with a lease term of more than twelve months. Leases will be classified as either financing or operating, with classification affecting the recognition, measurement and presentation of expenses and cash flows arising from a lease.  While the Company is currently evaluating the impact that this new guidance will have on its consolidated financial statements, it is expected that the primary impact upon adoption will be the recognition, on a discounted basis, of the Company's minimum commitments under noncancelable operating leases as right of use assets and lease liabilities on the consolidated balance sheets. It is expected that this could result in a substantial increase in assets and liabilities on the consolidated balance sheets 

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We will adopt the new standard on the required effective date of November 1, 2019 using the transition option, established by ASU 2018-11, Leases (Topic 842), Targeted Improvements (ASU 2018-11). This transition option was released by the FASB to reduce the cost and complexity associated with reflecting the new standard in prior periods presented. We will also elect the practical expedient package related to the identification of leases in contracts, lease classification, and accounting for initial direct costs whereby prior conclusions do not have to be reassessed for leases that commenced before the effective date. As we will not reassess such conclusions, we do not plan to adopt the practical expedient to use hindsight to determine the likelihood of whether a lease will be extended, terminated or whether a purchase option will be exercised. We have selected an enterprise-wide lease management system and we are advancing in the implementation process to assist in the related accounting.  A cross-functional implementation team is continuing to identify leases, determine policy elections, gather data, and implement changes to business processes and controls to support recognition and disclosure under the new standard.

In June 2016, the FASB issued a new standard that changes the impairment model for most financial instruments. Current guidance requires the recognition of credit losses based on an incurred loss impairment methodology that reflects losses once the losses are probable.  We will be required to use a current expected credit loss model that will immediately recognize an estimate of credit losses that are expected to occur over the life of the financial instruments that are in the scope of this update, including trade receivables.  ASU 2016-13 does not prescribe a specific method to make an estimate so the application will require significant judgment and should consider historical information, current information, reasonable and supportable forecasts, and includes estimates of prepayment.  This guidance will become effective for us on November 1, 2020. We are currently assessing the impact this standard will have on the Consolidated Financial Statements.

In August 2018, the FASB issued a new standard which removes, modifies, and adds certain disclosure requirements on fair value measurements.  The guidance removes disclosure requirements pertaining to the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels, and the valuation processes for Level 3 fair value measurements. For investments in certain entities that calculate net asset value, an entity is required to disclose the timing of liquidation of an investee’s assets and the date when restrictions from redemption might lapse only if the investee has communicated the timing to the entity or announced the timing publicly.  In addition, the amendment clarifies that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date. The guidance adds disclosure requirements for changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period as well as the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements.  It will be effective for us beginning November 1, 2020.  Early adoption is permitted.  We are currently assessing the impact this standard will have on our Consolidated Financial Statements.

In August 2018, the FASB issued a new standard which addresses defined benefit plans.  The amendments modify the following disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans: the amounts in accumulated other comprehensive income expected to be recognized as components of net period benefit cost over the next fiscal year, amount and timing of plan assets expected to be returned to the employer, related party disclosure about the amount of future annual benefits covered by insurance and annuity contracts and significant transactions between the employer or related parties and the plan, and the effects of a one-percentage point change in assumed health care cost trend rates on the (a) aggregate of the service and interest cost components of net periodic benefit costs and (b) benefit obligation for postretirement health care benefits are removed.  A disclosure requirement was added for the explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period.  Additionally, the standard clarifies disclosure requirement surrounding the projected benefit obligation (PBO) and fair value of plan assets for plans with PBOs in excess of plan assets and the accumulated benefit obligation (ABO) and fair value of plan assets for plans with ABOs in excess of plan assets.  It will be effective for us beginning November 1, 2020.  Early adoption is permitted.  We are currently assessing the impact this standard will have on our Consolidated Financial Statements.

4. Acquisitions

Business acquisitions have been accounted for using the acquisition method, with the acquired assets and liabilities recorded at estimated fair value on the dates of acquisition. The cost in excess of the net assets of the business acquired is included in goodwill. Operating results since the respective dates of acquisitions are included in the Consolidated Statements of Income.

2018 acquisitions

On October 17, 2018, we purchased 100 percent of the outstanding shares of Cladach Nua Teoranta (“Clada”), a Galway, Ireland designer and developer primarily focused on medical balloons and balloon catheters. Clada’s technologies are used in key applications such as angioplasty and the treatment of vascular disease. We acquired Clada for an aggregate purchase price of $5,236, which included an earn-out liability of $1,131. Based on the fair value of the assets acquired and the liabilities

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assumed, goodwill of $3,776 and identifiable intangible assets of $697 were recorded. The identifiable intangible assets consist primarily of $58 of customer relationships (amortized over 6 years), $70 of tradenames (amortized over 9 years), $499 of technology (amortized over 7 years) and $70 of non-compete agreements (amortized over 3 years). Goodwill associated with this acquisition is not tax deductible. This acquisition is being reported in our Advanced Technology Systems segment. As of April 30, 2019, the purchase price allocations remain preliminary as we complete our assessments of income taxes.

On January 2, 2018, we purchased 100 percent of the outstanding shares of Sonoscan, Inc. (“Sonoscan”), an Elk Grove Village, Illinois leading designer and manufacturer of acoustic microscopes and sophisticated acoustic micro imaging systems used in a variety of microelectronic, automotive, aerospace and industrial electronic assembly applications. We acquired Sonoscan for an aggregate purchase price of $46,018, net of $655 of cash. Based on the fair value of the assets acquired and the liabilities assumed, goodwill of $22,775 and identifiable intangible assets of $7,910 were recorded. The identifiable intangible assets consist primarily of $1,700 of customer relationships (amortized over 7 years), $3,300 of tradenames (amortized over 11 years), $2,500 of technology (amortized over 7 years) and $410 of non-compete agreements (amortized over 5 years). Goodwill associated with this acquisition is tax deductible. This acquisition is being reported in our Advanced Technology Systems segment. As of April 30, 2019, the purchase price allocations are complete.

5. Inventories

At April 30, 2019 and October 31, 2018, inventories consisted of the following:

	April 30, 2019			October 31, 2018
Raw materials and component parts	$	102,361		$	112,823
Work-in-process		45,430			47,126
Finished goods		180,394			148,618
		328,185			308,567
Obsolescence and other reserves		(40,984	)		(37,545	)
LIFO reserve		(6,468	)		(6,545	)
	$	280,733		$	264,477

6. Goodwill and other intangible assets  

Changes in the carrying amount of goodwill for the six months ended April 30, 2019 by operating segment are as follows:

	Adhesive Dispensing Systems			Advanced Technology Systems			Industrial Coating Systems		Total
Balance at October 31, 2018	$	388,991		$	1,194,969		$	24,058	$	1,608,018
Acquisitions		—			926			—		926
Currency effect		(937	)		(498	)		—		(1,435	)
Balance at April 30, 2019	$	388,054		$	1,195,397		$	24,058	$	1,607,509

Accumulated impairment losses, which were recorded in 2009, were $232,789 at April 30, 2019 and October 31, 2018.  Of these losses, $229,173 related to the Advanced Technology Systems segment, and $3,616 related to the Industrial Coating Systems segment.

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Information regarding our intangible assets subject to amortization is as follows:

	April 30, 2019
	Carrying Amount		Accumulated Amortization		Net Book Value
Customer relationships	$	479,391	$	155,876	$	323,515
Patent/technology costs		153,942		65,845		88,097
Trade name		96,274		38,039		58,235
Non-compete agreements		11,512		10,156		1,356
Other		1,394		1,390		4
Total	$	742,513	$	271,306	$	471,207
	October 31, 2018
	Carrying Amount		Accumulated Amortization		Net Book Value
Customer relationships	$	480,404	$	137,640	$	342,764
Patent/technology costs		153,602		59,845		93,757
Trade name		96,433		34,768		61,665
Non-compete agreements		11,469		9,919		1,550
Other		1,386		1,381		5
Total	$	743,294	$	243,553	$	499,741

Amortization expense for the three months ended April 30, 2019 and 2018 was $14,133 and $14,172, respectively. Amortization expense for the six months ended April 30, 2019 and 2018 was $27,762 and $28,061, respectively.   

7. Pension and other postretirement plans  

The components of net periodic pension cost for the three and six months ended April 30, 2019 and 2018 were:

	U.S.						International
Three Months Ended	2019			2018			2019			2018
Service cost	$	3,577		$	2,944		$	486		$	528
Interest cost		4,492			3,768			424			424
Expected return on plan assets		(5,794	)		(5,489	)		(407	)		(393	)
Amortization of prior service credit		(15	)		(3	)		(76	)		(83	)
Amortization of net actuarial loss		1,544			2,550			428			548
Total benefit cost	$	3,804		$	3,770		$	855		$	1,024
	U.S.						International
Six Months Ended	2019			2018			2019			2018
Service cost	$	7,155		$	6,626		$	970		$	1,027
Interest cost		8,989			7,408			846			844
Expected return on plan assets		(11,597	)		(10,981	)		(807	)		(773	)
Amortization of prior service cost (credit)		(30	)		(11	)		(152	)		(162	)
Amortization of net actuarial loss		3,088			4,706			855			1,077
Total benefit cost	$	7,605		$	7,748		$	1,712		$	2,013

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The components of other postretirement benefit cost for the three and six months ended April 30, 2019 and 2018 were:

	U.S.						International
Three Months Ended	2019			2018			2019			2018
Service cost	$	165		$	144		$	6		$	5
Interest cost		749			658			6			5
Amortization of prior service credit		(6	)		(25	)		—			—
Amortization of net actuarial (gain) loss		152			296			(9	)		(5	)
Total benefit cost	$	1,060		$	1,073		$	3		$	5
	U.S.						International
Six Months Ended	2019			2018			2019			2018
Service cost	$	331		$	356		$	9		$	10
Interest cost		1,497			1,295			11			10
Amortization of prior service credit		(13	)		(50	)		—			—
Amortization of net actuarial (gain) loss		304			545			(16	)		(10	)
Total benefit cost	$	2,119		$	2,146		$	4		$	10

The components of net periodic pension cost other than service cost are included in Other – net in our Consolidated Statements of Income.

8. Income taxes

We record our interim provision for income taxes based on our estimated annual effective tax rate, as well as certain items discrete to the current period. The effective tax rates for the three and six months ended April 30, 2019 were 20.9% and 23.9%, respectively. The effective tax rates for the three and six months ended April 30, 2018 were 22.8% and 11.7%. The effective tax rate for the six months ended April 30, 2019 was higher than the comparable prior year period primarily due to the enacted law commonly referred to as the U.S. Tax Cuts and Jobs Act ("the Act").

On December 22, 2017, the Act was enacted into law which significantly revised U.S. tax law. It reduced the U.S. federal corporate income tax rate from 35% to 21%.  We have an October 31 fiscal year-end, therefore the lower corporate income tax rate was phased in, resulting in a U.S. statutory federal rate of 23.3% for our fiscal year ended October 31, 2018, and 21% for subsequent fiscal years.  The statutory tax rate of 21.0% was applied to earnings in the current quarter.  

Subsequent to the enactment of the Act, the SEC staff issued SAB 118, which provided a measurement period of up to one year after the enactment date for companies to finalize the recognition of the income tax effects of the Act. As of January 31, 2019, our provisional accounting for the effects of the Act are complete. During the six months ended April 30, 2019, and within the one year measurement period provided by SAB 118, a discrete tax expense of $4,866 was recorded to the provisional amounts recognized in 2018 due to changes in interpretations and assumptions and the finalization of estimates. During the six months ended April 30, 2018, we provisionally recorded a discrete tax benefit of $22,089.

In March 2016, the FASB issued a new standard which simplifies the accounting for share-based payment transactions. This guidance required that excess tax benefits and tax deficiencies be recognized as income tax expense or benefit in the Consolidated Statements of Income rather than as additional paid-in capital. As a result, our income tax provision included a discrete tax benefit of $2,149 and $3,017 for the three and six months ended April 30, 2019, respectively. Our income tax provision for the three and six months ended April 30, 2018 included a discrete tax benefit of $2,202 and $6,950, respectively.   

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9. Accumulated other comprehensive loss

The components of accumulated other comprehensive loss, including adjustments for items that are reclassified from accumulated other comprehensive loss to net income, are shown below.

	Cumulative			Pension and			Accumulated
	translation			postretirement benefit			other comprehensive
	adjustments			plan adjustments			loss
Balance at October 31, 2018	$	(57,042	)	$	(122,272	)	$	(179,314	)
Amortization of prior service costs and net    actuarial losses, net of tax of $(912)		—			2,950			2,950
Foreign currency translation adjustments		7,399			—			7,399
Balance at April 30, 2019	$	(49,643	)	$	(119,322	)	$	(168,965	)

10. Stock-based compensation

During the 2018 Annual Meeting of Shareholders, our shareholders approved the Amended and Restated 2012 Stock Incentive and Award Plan (the “2012 Plan”). The 2012 Plan provides for the granting of stock options, stock appreciation rights, restricted shares, restricted share units, performance shares, cash awards and other stock or performance-based incentives. A maximum of 4,525 common shares are available for grant under the 2012 Plan.

Stock Options

Nonqualified or incentive stock options may be granted to our employees and directors.  Generally, options granted to employees may be exercised beginning one year from the date of grant at a rate not exceeding 25 percent per year and expire 10 years from the date of grant.  Vesting accelerates upon a qualified termination in connection with a change in control. In the event of termination of employment due to early retirement or normal retirement at age 65, options granted within 12 months prior to termination are forfeited, and vesting continues post retirement for all other unvested options granted.  In the event of disability or death, all unvested stock options granted within 12 months prior to termination (or at any time prior to December 28, 2017) fully vest.  Termination for any other reason results in forfeiture of unvested options and vested options in certain circumstances.  The amortized cost of options is accelerated if the retirement eligibility date occurs before the normal vesting date.  Option exercises are satisfied through the issuance of treasury shares on a first-in, first-out basis.  We recognized compensation expense related to stock options of $2,527 and $2,454 in the three months ended April 30, 2019 and 2018, respectively. Corresponding amounts for the six months ended April 30, 2019 and 2018 were $5,058 and $5,071, respectively.

The following table summarizes activity related to stock options for the six months ended April 30, 2019:

	Number of Options			Weighted-Average Exercise Price Per Share		Aggregate Intrinsic Value		Weighted Average Remaining Term
Outstanding at October 31, 2018		1,885		$	85.33
Granted		348		$	124.89
Exercised		(251	)	$	57.48
Forfeited or expired		(12	)	$	118.70
Outstanding at April 30, 2019		1,970		$	95.67	$	99,042	7.0 years
Vested or expected to vest at April 30, 2019		1,949		$	95.38	$	98,592	6.9 years
Exercisable at April 30, 2019		1,067		$	78.87	$	71,609	5.6 years

As of April 30, 2019, there was $13,273 of total unrecognized compensation cost related to unvested stock options.  That cost is expected to be amortized over a weighted average period of approximately 1.5 years.

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The fair value of each option grant was estimated at the date of grant using the Black-Scholes option-pricing model with the following assumptions:

Six months ended	April 30, 2019	April 30, 2018
Expected volatility	24.1%-24.5%	24.0%-26.7%
Expected dividend yield	1.04%	0.97%
Risk-free interest rate	2.84%-2.95%	2.09%-2.20%
Expected life of the option (in years)	5.3-6.2	5.4-6.2

The weighted-average expected volatility used to value the 2019 and 2018 options was 24.3% and 25.0%, respectively.

Historical information was the primary basis for the selection of the expected volatility, expected dividend yield and the expected lives of the options.  The risk-free interest rate was selected based upon yields of U.S. Treasury issues with a term equal to the expected life of the option being valued.

The weighted average grant date fair value of stock options granted during the six months ended April 30, 2019 and 2018 was $31.74 and $31.42, respectively.

The total intrinsic value of options exercised during the three months ended April 30, 2019 and 2018 was $14,699 and $11,021, respectively. The total intrinsic value of options exercised during the six months ended April 30, 2019 and 2018 was $19,321 and $29,744, respectively.

Cash received from the exercise of stock options for the six months ended April 30, 2019 and 2018 was $14,454 and $15,595, respectively.

Restricted Shares and Restricted Share Units

We may grant restricted shares and/or restricted share units to our employees and directors.  These shares or units may not be transferred for a designated period of time (generally one to three years) defined at the date of grant.  

For employee recipients, in the event of termination of employment due to early retirement with the consent of the Company, restricted shares granted within 12 months prior to termination are forfeited, and other restricted shares vest on a pro-rata basis.  In the event of termination of employment due to normal retirement at age 65, restricted shares granted within 12 months prior to termination are forfeited, and, for other restricted shares, the restriction period will lapse and the shares will vest and be transferable. For restricted shares granted within 12 months prior to termination (or at any time prior to December 28, 2017), the restrictions lapse in the event of a recipient’s disability or death.  Termination for any other reason prior to the lapse of any restrictions results in forfeiture of the shares.

For non-employee directors, all restrictions lapse in the event of disability or death of the non-employee director.  Termination of service as a director for any other reason within one year of date of grant results in a pro-rata vesting of shares or units.

As shares or units are issued, deferred stock-based compensation equivalent to the fair value on the date of grant is expensed over the vesting period.  

The following table summarizes activity related to restricted shares during the six months ended April 30, 2019:

	Number of Shares			Weighted-Average Grant Date Fair Value
Restricted shares at October 31, 2018		53		$	108.82
Granted		34		$	129.44
Vested		(25	)	$	96.99
Restricted shares at April 30, 2019		62		$	124.86

As of April 30, 2019, there was $5,592 of unrecognized compensation cost related to restricted shares. The cost is expected to be amortized over a weighted average period of 1.9 years.  The amount charged to expense related to restricted shares during the three months ended April 30, 2019 and 2018 was $1,167 and $637, respectively. These amounts included common share dividends for the three months ended April 30, 2019 and 2018 of $18 and $17, respectively. For the six months ended April 30, 2019 and 2018, the amounts charged to expense related to restricted shares were $1,864 and $1,391, respectively. These amounts included common share dividends for the six months ended April 30, 2019 and 2018 of $36 and $34, respectively.     

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The following table summarizes activity related to restricted share units during the six months ended April 30, 2019:

	Number of Units		Weighted-Average Grant Date Fair Value
Restricted share units at October 31, 2018		0	$	—
Granted		8	$	126.83
Restricted share units at April 30, 2019		8	$	126.83

As of April 30, 2019, there was $520 of remaining expense to be recognized related to outstanding restricted share units, which is expected to be recognized over a weighted average period of 0.5 years.  The amount charged to expense related to restricted share units during each of the three months ended April 30, 2019 and 2018 was $263 and $252, respectively. For the six months ended April 30, 2019 and 2018, the corresponding amounts were $526 and $505, respectively.  

Deferred Directors’ Compensation

Non-employee directors may defer all or part of their cash and equity-based compensation until retirement.  Cash compensation may be deferred as cash or as share equivalent units.  Deferred cash amounts are recorded as liabilities, and share equivalent units are recorded as equity.  Additional share equivalent units are earned when common share dividends are declared.

The following table summarizes activity related to director deferred compensation share equivalent units during the six months ended April 30, 2019:

	Number of Shares		Weighted-Average Grant Date Fair Value
Outstanding at October 31, 2018		107	$	51.24
Dividend equivalents		1	$	125.90
Outstanding at April 30, 2019		108	$	51.65

The amount charged to expense related to director deferred compensation for the three months ended April 30, 2019 and 2018 was $38 and $30, respectively. For the six months ended April 30, 2019 and 2018, the corresponding amounts were $75 and $61, respectively.  

Performance Share Incentive Awards

Executive officers and selected other key employees are eligible to receive common share-based incentive awards. Payouts, in the form of unrestricted common shares, vary based on the degree to which corporate financial performance exceeds predetermined threshold, target and maximum performance goals over three-year performance periods.  No payout will occur unless threshold performance is achieved.

The amount of compensation expense is based upon current performance projections for each three-year period and the percentage of the requisite service that has been rendered.  The calculations are also based upon the grant date fair value determined using the closing market price of our common shares at the grant date, reduced by the implied value of dividends not to be paid. The per share values were $120.12 for 2019, $123.45 for 2018, and $103.75 and $104.49 per share for 2017.  During the three months ended April 30, 2019 and 2018, $819 and $1,637 was charged to expense, respectively. For the six months ended April 30, 2019 and 2018, the corresponding amounts were $1,596 and $4,986, respectively. The cumulative amount recorded in shareholders’ equity at April 30, 2019 was $9,065.

Deferred Compensation

Our executive officers and other highly compensated employees may elect to defer up to 100% of their base pay and cash incentive and for executive officers, up to 90% of their share-based performance incentive payout each year.  Additional share units are credited for quarterly dividends paid on our common shares. Expense related to dividends paid under this plan for the three months ended April 30, 2019 and 2018 was $73 and $67, respectively. For the six months ended April 30, 2019 and 2018, the corresponding amounts were $145 and $134, respectively.   

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11. Warranties

We offer warranties to our customers depending on the specific product and terms of the customer purchase agreement.  A typical warranty program requires that we repair or replace defective products within a specified time period (generally one year) from the date of delivery or first use.  We record an estimate for future warranty-related costs based on actual historical return rates.  Based on analysis of return rates and other factors, the adequacy of our warranty provisions are adjusted as necessary.  The liability for warranty costs is included in Accrued liabilities in the Consolidated Balance Sheet.  

Following is a reconciliation of the product warranty liability for the six months ended April 30, 2019 and 2018:

	April 30, 2019			April 30, 2018
Beginning balance at October 31	$	12,195		$	13,377
Accruals for warranties		4,846			5,937
Warranty payments		(5,258	)		(6,642	)
Currency effect		31			227
Ending balance	$	11,814		$	12,899

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 Statements 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, 2018.

The following table presents information about our segments:

	Adhesive Dispensing Systems		Advanced Technology Systems		Industrial Coating Systems		Corporate			Total
Three months ended
April 30, 2019
Net external sales	$	236,722	$	249,295	$	65,102	$	—		$	551,119
Operating profit (loss)		71,012		56,535		14,469		(13,120	)		128,896
Three months ended
April 30, 2018
Net external sales	$	238,775	$	250,839	$	64,092	$	—		$	553,706
Operating profit (loss)(1)		70,337		58,690		12,050		(12,185	)		128,892
Six months ended
April 30, 2019
Net external sales	$	448,240	$	483,752	$	117,037	$	—		$	1,049,029
Operating profit (loss)		118,905		97,320		21,985		(25,033	)		213,177
Six months ended
April 30, 2018
Net external sales	$	459,639	$	522,540	$	121,951	$	—		$	1,104,130
Operating profit (loss)(1)		124,327		126,183		22,595		(24,863	)		248,242

⁽¹⁾ Results for the three and six months ended April 30, 2018 have been revised to reflect the retrospective adoption of Accounting Standards Update No. 2017-07, Compensation — Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Cost ("ASU 2017-07"). Refer to Note 3 for details.

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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, 2019			April 30, 2018			April 30, 2019			April 30, 2018
Total profit for reportable segments	$	128,896		$	128,892		$	213,177		$	248,242
Interest expense		(12,372	)		(12,127	)		(24,738	)		(23,445	)
Interest and investment income		325			219			642			509
Other-net		(568	)		1,135			(4,757	)		(3,669	)
Income before income taxes	$	116,281		$	118,119		$	184,324		$	221,637

We have significant sales in the following geographic regions:

	Three Months Ended				Six Months Ended
	April 30, 2019		April 30, 2018		April 30, 2019		April 30, 2018
United States	$	190,699	$	178,821	$	361,050	$	344,652
Americas		43,682		38,959		76,119		73,238
Europe		149,526		154,736		282,200		296,674
Japan		30,031		33,030		59,078		98,899
Asia Pacific		137,181		148,160		270,582		290,667
Total net external sales	$	551,119	$	553,706	$	1,049,029	$	1,104,130

13. Fair value measurements

The inputs to the valuation techniques used to measure fair value are classified into the following categories:

Level 1: Quoted market prices in active markets for identical assets or liabilities.

Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data.

Level 3: Unobservable inputs that are not corroborated by market data.

The following tables present the classification of our assets and liabilities measured at fair value on a recurring basis:

April 30, 2019	Total		Level 1		Level 2		Level 3
Assets:
Foreign currency forward contracts (a)	$	4,824	$	—	$	4,824	$	—
Total assets at fair value	$	4,824	$	—	$	4,824	$	—
Liabilities:
Deferred compensation plans (b)	$	12,574	$	—	$	12,574	$	—
Foreign currency forward contracts (a)		4,742		—		4,742		—
Total liabilities at fair value	$	17,316	$	—	$	17,316	$	—

April 30, 2018	Total		Level 1		Level 2		Level 3
Assets:
Foreign currency forward contracts (a)	$	3,213	$	—	$	3,213	$	—
Total assets at fair value	$	3,213	$	—	$	3,213	$	—
Liabilities:
Deferred compensation plans (b)	$	11,796	$	—	$	11,796	$	—
Foreign currency forward contracts (a)		5,494		—		5,494		—
Total liabilities at fair value	$	17,290	$	—	$	17,290	$	—

(a) We enter into foreign currency forward contracts to reduce the risk of foreign currency exposures resulting from receivables, payables, intercompany receivables, intercompany payables and loans denominated in foreign currencies. Foreign exchange contracts are valued using market exchange rates. These foreign exchange contracts are not designated as hedges.

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(b) Executive officers and other highly compensated employees may defer up to 100 percent of their salary and annual cash incentive compensation and for executive officers, up to 90 percent of their long-term incentive compensation, into various non-qualified deferred compensation plans. Deferrals can be allocated to various market performance measurement funds. Changes in the value of compensation deferred under these plans are recognized each period based on the fair value of the underlying measurement funds.

The carrying amounts and fair values of financial instruments, other than cash and cash equivalents, receivables, and accounts payable, are shown in the table below. The carrying values of cash and cash equivalents, receivables and accounts payable approximate fair value due to the short-term nature of these instruments.

	2019
	Carrying Amount		Fair Value
Long-term debt (including current portion)		1,374,125		1,381,087

We used the following methods and assumptions in estimating the fair value of financial instruments:

• Long-term debt is valued by discounting future cash flows at currently available rates for borrowing arrangements with similar terms and conditions, which are considered to be Level 2 inputs under the fair value hierarchy.

14. Derivative financial instruments  

We operate internationally and enter into intercompany transactions denominated in foreign currencies. Consequently, we are subject to market risk arising from exchange rate movements between the dates foreign currency transactions occur and the dates they are settled. We regularly use foreign currency forward contracts to reduce our risks related to most of these transactions. These contracts usually have maturities of 90 days or less and generally require us to exchange foreign currencies for U.S. dollars at maturity, at rates stated in the contracts. These contracts are not designated as hedging instruments under U.S. GAAP. Accordingly, the changes in the fair value of the foreign currency forward contracts are recognized in each accounting period in “Other – net” on the Consolidated Statements of Income together with the transaction gain or loss from the related balance sheet position. For the three months ended April 30, 2019, we recognized net losses of $1,236 on foreign currency forward contracts and net gains of $1,863 from the change in fair value of balance sheet positions. For the three months ended April 30, 2018, we recognized losses of $1,607 on foreign currency forward contracts and gains of $2,584 from the change in fair value of balance sheet positions. For the six months ended April 30, 2019, we recognized losses of $206 on foreign currency forward contracts and losses of $140 from the change in fair value of balance sheet positions. For the six months ended April 30, 2018, we recognized losses of $2,571 on foreign currency forward contracts and gains of $1,602 from the change in fair value of balance sheet positions.

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The following table summarizes, by currency, the foreign currency forward contracts outstanding at April 30, 2019 and 2018:

	Notional Amounts
April 30, 2019 contract amounts:	Sell		Buy
Euro	$	401,545	$	279,131
British pound		21,012		44,879
Japanese yen		28,504		46,226
Australian dollar		180		7,771
Hong Kong dollar		1,209		128,710
Singapore dollar		794		15,356
Others		3,128		60,540
Total	$	456,372	$	582,613
	Notional Amounts
April 30, 2018 contract amounts:	Sell		Buy
Euro	$	152,436	$	82,687
British pound		43,914		58,981
Japanese yen		32,610		35,260
Australian dollar		194		8,137
Hong Kong dollar		2,170		110,723
Singapore dollar		616		13,143
Others		4,398		52,468
Total	$	236,338	$	361,399

We are exposed to credit-related losses in the event of nonperformance by counterparties to financial instruments. These financial instruments include cash deposits and foreign currency forward contracts. We periodically monitor the credit ratings of these counterparties in order to minimize our exposure. Our customers represent a wide variety of industries and geographic regions. For the six months ended April 30, 2019 and 2018, there were no significant concentrations of credit risk.

15. Long-term debt

A summary of long-term debt is as follows:

	April 30, 2019		October 31, 2018
Revolving credit agreement, due 2024	$	—	$	52,200
Senior notes, due 2019-2025		156,700		156,700
Senior notes, due 2019-2027		100,000		100,000
Senior notes, due 2023-2030		350,000		350,000
Term loan, due 2020-2024		605,000		605,000
Euro loan, due 2021		128,967		16,967
Private shelf facility, due 2020		36,111		36,111
Development loans, due 2019-2026		1,019		1,086
		1,377,797		1,318,064
Less current maturities		153,734		28,734
Less unamortized debt issuance costs		3,672		3,973
Long-term maturities	$	1,220,391	$	1,285,357

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In April 2019, we amended and restated and extended the term of our existing $605,000 term loan facility with a group of banks. The Term Loan Agreement provides for the following term loans in three tranches: $100,000 due in March 2020, $200,000 due in September 2022, and $305,000 due in March 2024.   The weighted average interest rate for borrowings under this agreement was 3.57% at April 30, 2019. We were in compliance with all covenants at April 30, 2019.

In April 2019, we entered into a $850,000 unsecured, multicurrency credit facility with a group of banks, which amended and restated and extended our existing syndicated revolving credit agreement that was scheduled to expire in February 2020. This facility has a five-year term and includes a $75,000 subfacility for swing-line loans.  It expires in April 2024. At April 30, 2019, we had no balances outstanding under this facility, compared to $52,200 outstanding at October 31, 2018. We were in compliance with all covenants at April 30, 2019, and the amount we could borrow under the facility would not have been limited by any debt covenants.

In October 2018, we entered into a €150,000 agreement with Bank of America Merrill Lynch International Limited.  The interest rate is variable based on the EUR LIBOR rate.  The weighted average interest rate at April 30, 2019 was 0.88 %.  At April 30, 2019, the balance outstanding was €115,000 $(128,967).  We were in compliance with all covenants at April 30, 2019.

In June 2018, we entered into a Note Purchase Agreement with a group of insurance companies under which we sold $350,000 of Senior Notes to the insurance companies and their affiliates. The notes start to mature in June 2023 and mature through June 2030 and bear interest at fixed rates between 3.71% and 4.17%.   We used the proceeds from the sale of the notes to repay approximately $315,000 of the outstanding balance under our existing syndicated revolving credit facility at that time, and the reminder for general corporate purposes.  We were in compliance with all covenants at April 30, 2019.

We entered into a $150,000 three-year Note Purchase and Private Shelf agreement with New York Life Investment Management LLC in 2011.  In 2015, the amount of the facility was increased to $180,000, and in 2016 it was increased to $200,000. Notes issued under the agreement may have a maturity of up to 12 years, with an average life of up to 10 years, and are unsecured. At April 30, 2019 and October 31, 2018, there was $36,111 outstanding under this facility. Existing notes mature between January 2020 and September 2020.  The interest rate on each borrowing is fixed based on the market rate at the borrowing date or is variable based upon the LIBOR rate.  At April 30, 2019, the amount outstanding under this facility bears interest at fixed rates between 2.21% and 2.56%.  This agreement contains customary events of default and covenants related to limitations on indebtedness and the maintenance of certain financial ratios.  We were in compliance with all covenants at April 30, 2019, and the amount we could borrow would not have been limited by any debt covenants. 

In 2012, we entered into a Note Purchase Agreement with a group of insurance companies under which we sold $200,000 of Senior Notes.  At April 30, 2019 and October 31, 2018, $156,700 was outstanding under this agreement. Existing notes mature between July 2019 and July 2025 and bear interest at fixed rates between 2.62% and 3.13%.  We were in compliance with all covenants at April 30, 2019.

In July 2015, we entered into a Note Purchase Agreement under which $100,000 of Senior Unsecured Notes were purchased primarily by a group of insurance companies.  The notes start to mature in July 2019 and mature through July 2027 and bear interest at fixed rates of 2.89% and 3.19%.  We were in compliance with all covenants at April 30, 2019.  

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following is Management's discussion and analysis of certain significant factors affecting our financial condition and results of operations for the periods included in the accompanying condensed consolidated financial statements.

Overview

Founded in 1954, Nordson Corporation delivers precision technology solutions to help customers succeed worldwide.  We engineer, manufacture and market differentiated products and systems used for precision dispensing, applying and controlling of adhesives, coatings, sealants, biomaterials, polymers, plastics and other materials; fluid management; test and inspection; and UV curing and plasma surface treatment.  These products are supported with extensive application expertise and direct global sales and service.  We serve a wide variety of consumer non-durable, consumer durable and technology end-markets including packaging, nonwovens, electronics, medical, appliances, energy, transportation, building and construction, and general product assembly and finishing. We have approximately 7,600 employees and direct operations in more than 35 countries.

Critical Accounting Policies and Estimates

The preparation and fair presentation of the consolidated unaudited interim financial statements and accompanying notes included in this report are the responsibility of management. The financial statements and footnotes have been prepared in accordance with U.S. generally accepted accounting principles for interim financial statements and contain certain amounts that were based upon management’s best estimates, judgments and assumptions that were believed to be reasonable under the circumstances. On an ongoing basis, we evaluate the accounting policies and estimates used to prepare financial statements.  Estimates are based on historical experience, judgments and assumptions believed to be reasonable under current facts and circumstances.  Actual amounts and results could differ from these estimates used by management.

A comprehensive discussion of the Company’s critical accounting policies and management estimates and significant accounting policies followed in the preparation of the financial statements is included in Item 7 of our Annual Report on Form 10-K for the year ended October 31, 2018. Other than the adoption of the new revenue recognition standard as described in Note 2, there have been no significant changes in critical accounting policies, management estimates or accounting policies followed since the year ended October 31, 2018.

Results of Operations

Sales

Sales – Worldwide sales for the three months ended April 30, 2019 were $551,119, a decrease of 0.5% from sales of $553,706 for the comparable period of 2018. Organic sales volume increased 3.1%, offset by unfavorable currency translation effects which decreased sales by 3.6%.

Sales of the Adhesive Dispensing Systems segment for the three months ended April 30, 2019 were $236,722 compared to $238,775 in the comparable period of 2018, a decrease of $2,053, or 0.9%. The decrease was due to unfavorable currency translation effects that decreased sales 5.0%, offset by organic sales volume growth of 4.1%. Within this segment, sales volume increased in all regions except for Japan. Organic sales volume growth was solid across most all product lines.

Sales of the Advanced Technology Systems segment for the three months ended April 30, 2019 were $249,295 compared to $250,839 in the comparable period of 2018, a decrease of $1,544, or 0.6%. The decrease was due to unfavorable currency translation effects that decreased sales 2.4%, offset by sales volume growth of 1.8%. The sales volume increase consisted primarily of organic volume. Within this segment, sales volume decreased in the Japan and Asia Pacific regions, and was offset by growth in all other regions.  Growth in our fluid management product lines serving industrial and medical end markets was offset by lower demand in our dispensing product lines serving electronics end markets.

Sales of the Industrial Coating Systems segment for the three months ended April 30, 2019 were $65,102 compared to $64,092 in the comparable period of 2018, an increase of $1,010, or 1.6%. The increase was due to organic sales volume growth of 4.3%, offset by unfavorable currency translation effects of 2.7%. Within this segment, sales volume increased in the Americas region, and was offset by weakness in all other regions. Growth in powder and container product lines serving industrial end markets was offset by softness in liquid finishing and cold materials product lines serving industrial and automotive end markets.

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Sales outside the United States accounted for 65.4% of our sales in the three months ended April 30, 2019 compared to 67.7% for the comparable period of 2018. On a geographic basis, sales in the United States were $190,699, an increase of 6.6% from 2018. The 6.6% increase in sales volume consisted solely of organic volume. In the Americas region, sales were $43,682, an increase of 12.1% from 2018, with organic sales volume increasing 14.9%, offset by unfavorable currency effects of 2.8%.  Sales in Europe were $149,526, a decrease of 3.4% from 2018, with unfavorable currency effects of 8.0%, offset by a sales volume increase of 4.6%. The increase in sales volume consisted primarily of organic volume. Sales in Japan were $30,031, a decrease of 9.1% from 2018, with organic sales volume decreasing 5.6%, and unfavorable currency effects of 3.5%.  Sales in the Asia Pacific region were $137,181, a decrease of 7.4% from 2018, with a decrease in organic sales volume of 4.1% and unfavorable currency effects of 3.3%.  

Worldwide sales for the six months ended April 30, 2019 were $1,049,029, a 5.0% decrease from sales of $1,104,130 for the comparable period of 2018.  Sales volume decreased 2.3%, consisting of a 2.9% decrease in organic volume, offset by a 0.6% increase from the first year effect of the Sonoscan and Clada acquisitions.  Unfavorable currency translation effects decreased sales by 2.7%.  

Sales of the Adhesive Dispensing Systems segment for the six months ended April 30, 2019 were $448,240 compared to $459,639 in the comparable period of 2018, a decrease of $11,399, or 2.5%.  The decrease was due to unfavorable currency effects of 3.9%, offset by organic sales volume growth of 1.4%. Within this segment, sales volume increased in the United States, Japan, and Asia Pacific regions, and was offset by decreases in Europe and the Americas regions. Growth in product lines serving packaging, product assembly, and polymer processing end markets was offset by softness in product lines serving nonwoven end markets.

Sales of the Advanced Technology Systems segment for the six months ended April 30, 2019 were $483,752 compared to $522,540 in the comparable period of 2018, a decrease of $38,788, or 7.4%.  The decrease was due to unfavorable currency effects of 1.8%, and a sales volume decrease of 5.6%.  The sales volume decrease consisted of 6.8% in organic volume, offset by 1.2% from the first year effect of acquisitions.  Within this segment, sales volume increased in the United States, Americas, and Europe regions, and was offset by decreases in the Japan and Asia Pacific regions.  Growth in our fluid management product lines serving industrial and medical end markets was offset by lower demand in our dispensing product lines serving electronics end markets.

Sales of the Industrial Coating Systems segment for the six months ended April 30, 2019 were $117,037 compared to $121,951 in the comparable period of 2018, a decrease of $4,914, or 4.0%.  The decrease was due to a sales volume decrease of 1.8%, and unfavorable currency effects that decreased sales by 2.2%.  Within this segment, sales volume increased in the Americas and Asia Pacific regions, and was offset by decreases in the United States, Europe and Japan regions.  Softness in most all product lines contributed to the decrease in sale volume.

Sales outside the United States accounted for 65.6% of sales in the six months ended April 30, 2019 compared to 68.8% in the comparable period of 2018.  On a geographic basis, sales in the United States were $361,050, an increase of 4.8% from 2018.  The increase in sales volume consisted of 4.5% from organic volume, and 0.3% growth from acquisitions. In the Americas region, sales were $76,119, an increase of 3.9% from 2018, with organic sales volume increasing 6.5%, offset by unfavorable currency effects of 2.6%. Sales in Europe were $282,200, a decrease of 4.9% from 2018, with volume increasing 1.4%, offset by unfavorable currency effects of 6.3%.  The increase in sales volume consisted of 0.9% from organic volume, and 0.5% from acquisitions. Sales in Japan were $59,078, a decrease of 40.3% from 2018, with volume decreasing 39.3%, and unfavorable currency effects of 1.0%.  The decrease in sales volume consisted of 40.4% from organic volume and was offset by a 1.1% increase from acquisitions. Sales in the Asia Pacific region were $270,582, a decrease of 6.9% from 2018, with sale volume decreasing 4.1% and unfavorable currency effects of 2.8%. The decrease in sales volume consisted of a 5.1% decrease from organic volume, offset by a 1.0% increase from acquisitions.  

Operating profit – Cost of sales for the three months ended April 30, 2019 were $249,590, up from $246,691 in the comparable period of 2018. Gross profit, expressed as a percentage of sales, decreased slightly to 54.7% for this same period from 55.4% in 2018. Of the 0.7 percentage point decline in gross margin, unfavorable currency translation effects contributed 0.6 percentage points and unfavorable product mix contributed 0.1 percentage points.  

Cost of sales for the six months ended April 30, 2019 were $478,524, down from $496,142 in the comparable period of 2018.  Gross profit, expressed as a percentage of sales, decreased to 54.4% for this same period from 55.1% in 2018.  Of the 0.7 percentage point decline in gross margin, unfavorable currency translation effects contributed 0.5 percentage points and unfavorable product mix contributed 0.2 percentage points.  

Selling and administrative expenses for the three months ended April 30, 2019 were $172,633, down from $178,123 in the comparable period of 2018. The 3.1 percentage point decrease includes 3.0 percentage points due to currency translation effects and 0.6 percentage points due to lower severance and restructuring costs in the current period.  This was offset by an increase of 0.5 percentage points primarily due to expenditures made in support of our base business.

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Selling and administrative expenses for the six months ended April 30, 2019 were $357,328, compared to $359,746 for the comparable period of 2018.  The 0.7 percentage point decrease includes 2.3 percentage points due to currency translation effects and 0.3 percentage points due to lower severance and restructuring costs in the current period.  This was offset by a 1.9 percentage point increase in support of base business.

Selling and administrative expenses as a percentage of sales decreased to 31.3% for the three months ended April 30, 2019 compared to 32.2% in 2018. The 0.9 percentage point improvement was due to lower base business costs; a 0.2 percentage point improvement due to lower severance and restructuring expenses in the current period was partially offset by 0.2 percentage points due to currency translation effects.  

Selling and administrative expenses as a percentage of sales increased to 34.1% for the six months ended April 30, 2019 compared to 32.6% in 2018. Of the 1.5 percentage point increase, 1.4 percentage points was due to higher base business costs and 0.2 percentage points was due to currency translation effects.  This increase was offset by 0.1 percentage points due to lower severance and restructuring expenses in the current period.

During the six months ended April 30, 2019, we recognized severance and restructuring costs of $1,458, which was primarily due to a restructuring initiative to consolidate certain facilities in the U.S. within our Adhesives Dispensing Systems segment. Additional costs related to this initiative are not expected to be material in future periods. All severance and restructuring costs are included in Selling and administrative expenses in the Consolidated Statements of Income.

Operating capacity for each of our segments can support fluctuations in order activity without significant changes in operating costs. Also, currency translation affects reported operating margins. Operating margins for each segment were unfavorably impacted by a stronger dollar primarily against the Euro and British Pound during the first six months of 2019 as compared to the same period in 2018.

Operating profit as a percentage of sales increased to 23.4% for the three months ended April 30, 2019 compared to 23.3% in 2018. Of the 0.1 percentage point increase, 1.2 percentage points were due to favorable leverage of our selling and administrative expenses and 0.2 percentage points were due to lower severance and restructuring costs in the current period. These were offset by 0.9 percentage points due to unfavorable currency translation effects and 0.4 percentage points due to unfavorable product mix.   

Operating profit as a percentage of sales decreased to 20.3% for the six months ended April 30, 2019 compared to 22.5% in 2018. Of the 2.2 percentage point decrease, unfavorable leverage of our selling and administrative expenses contributed 1.1 percentage points, unfavorable currency translation effect contributed 0.7 percentage points, and unfavorable product mix contributed 0.5 percentage points. These were offset by 0.1 percentage point due to lower severance and restructuring costs.

For the Adhesive Dispensing Systems segment, operating profit as a percentage of sales increased to 30.0% for the three months ended April 30, 2019 compared to 29.5% in 2018. Of the 0.5 percentage point increase in operating margin, this increase was due to 0.6 percentage points due to favorable product mix, 0.4 percentage points due to lower severance and restructuring expenses, and 0.4 percentage points due to favorable leverage of our selling and administrative expenses.  These increases were offset by 0.9 percentage points due to unfavorable currency effect.

For the Adhesive Dispensing Systems segment, operating profit as a percentage of sales decreased to 26.5% for the six months ended April 30, 2019 compared to 27.0% for the comparable period of 2018.  Of the 0.5 percentage point decline in operating margin,

unfavorable currency translation effects contributed 0.7 percentage points and unfavorable leverage of selling and administrative expenses contributed 0.6 percentage points. These decreases were offset by 0.6 percentage points due to favorable product mix and 0.2 percentage points due to lower severance and restructuring expenses.  

For the Advanced Technology Systems segment, operating profit as a percentage of sales decreased to 22.7% for the three months ended April 30, 2019 compared to 23.4% in 2018. Of the 0.7 percentage point decline in operating margin, unfavorable product mix contributed 4.4 percentage points and unfavorable currency translation effects contributed 0.5 percentage points.  This decrease was offset by favorable leverage of our selling and administrative expenses of 4.2 percentage points.

For the Advanced Technology Systems segment, operating profit as a percentage of sales decreased to 20.1% for the six months ended April 30, 2019 compared to 24.1% for the comparable period of 2018.  Of the 4.0 percentage point decrease in operating margin, unfavorable product mix contributed 4.2 percentage points and unfavorable currency translation effects contributed 0.4 percentage points.  This decrease was offset by favorable leverage of our selling and administrative expenses of 0.6 percentage points.

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For the Industrial Coating Systems segment, operating profit as a percentage of sales increased to 22.2% for the three months ended April 30, 2019 compared to 18.8% in 2018. Of the 3.4 percentage point increase in operating margin, favorable product mix contributed 2.7 percentage points and favorable leverage of our selling and administrative expenses added 1.3 percentage points.  These increases were offset by 0.6 percentage points due to unfavorable currency translation effects.

For the Industrial Coating Systems segment, operating profit as a percentage of sales increased to 18.8% for the six months ended April 30, 2019 compared to 18.5% in 2018.  Of the 0.3 percentage point increase in operating margin, favorable product mix added 1.5 percentage points. This was offset by unfavorable leverage of selling and administrative expenses of 0.7 percentage points and 0.5 percentage points of unfavorable currency translation effects.

Interest and other income (expense) - Interest expense for the three months ended April 30, 2019 was $12,372, up from $12,127 for the comparable period of 2018.  Interest expense for the six months ended April 30, 2019 was $24,738, up from $23,445 for the comparable period of 2018.  These increases were due primarily to higher interest rates.

Other expense was $568 for the three months ended April 30, 2019, compared to other income of $1,135 for the comparable period of 2018. Included in the current quarter’s other expense were $1,489 of pension costs related to the adoption of a new accounting standard, offset by $627 of foreign currency gains.  Included in the prior quarter’s other income were a non-recurring gain of $2,512 and foreign currency gains of $978, offset by $2,187 of pension costs related to the adoption of a new accounting standard.

Other expense was $4,757 for the six months ended April 30, 2019, compared to $3,669 for the comparable period of 2018. Included in the current year’s other expense were $2,980 of pension costs related to the adoption of a new accounting standard and $346 of foreign currency losses. Included in the prior year’s other expense were $3,814 of pension costs related to the adoption of a new accounting standard, foreign currency losses of $969, and $748 related to the write off of building improvements, offset by a non-recurring gain of $2,512.

Income taxes – We record our interim provision for income taxes based on our estimated annual effective tax rate, as well as certain items discrete to the current period.  Judgment is involved regarding the application of global income tax laws and regulations and when projecting the jurisdictional mix of income. We have considered several factors in determining the probability of realizing deferred income tax assets which include forecasted operating earnings, available tax planning strategies and the time period over which the temporary differences will reverse. We review our tax positions on a regular basis and adjust the balances as new information becomes available. The effective tax rate for the three and six months ended April 30, 2019 was 20.9% and 23.9%, respectively.   The effective tax rate for the three and six months ended April 30, 2018 was 22.8% and 11.7%, respectively.  The effective tax rate for the six months ended April 30, 2019 was higher than the comparable prior year period primarily due to the enacted law commonly referred to as the U.S. Tax Cuts and Jobs Act ("the Act").

On December 22, 2017, the Act was enacted into law which significantly revised U.S. tax law. It reduced the U.S. federal corporate income tax rate from 35% to 21%.  We have an October 31 fiscal year-end, therefore the lower corporate income tax rate was phased in, resulting in a U.S. statutory federal rate of 23.3% for our fiscal year ended October 31, 2018, and 21% for subsequent fiscal years.  The statutory tax rate of 21.0% was applied to earnings in the current year.  

Subsequent to the enactment of the Act, the SEC staff issued SAB 118, which provided a measurement period of up to one year after the enactment date for companies to finalize the recognition of the income tax effects of the Act. As of January 31, 2019, our provisional accounting for the effects of the Act was complete. During the six months ended April 30, 2019, and within the one year measurement period provided by SAB 118, a discrete tax expense of $4,866 was recorded to the provisional amounts recognized in 2018 due to changes in interpretations and assumptions and the finalization of estimates. During the six months ended April 30, 2018, we provisionally recorded a discrete tax benefit of $22,089.

In March 2016, the FASB issued a new standard which simplifies the accounting for share-based payment transactions. This guidance required that excess tax benefits and tax deficiencies be recognized as income tax expense or benefit in the Consolidated Statements of Income rather than as additional paid-in capital. As a result, our income tax provision for the three and six months ended April 30, 2019 included a discrete tax benefit of $2,149 and $3,017 respectively. Our income tax provision for the three and six months ended April 30, 2018 included a discrete tax benefit of $2,202 and $6,950, respectively.

Net income – Net income for the three months ended April 30, 2019 was $91,923, or $1.58 per diluted share, compared to $91,235, or $1.55 per diluted share, in the same period of 2018. This represents an 0.8% increase in net income and a 1.9% increase in diluted earnings per share. For the six months ended April 30, 2019, net income was $140,490, or $2.41 per diluted share, compared to $195,790, or $3.32 per diluted share, in the same period of 2018. This represents a 28.2% decrease in net income and a 27.4% decrease in diluted earnings per share.

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Foreign Currency Effects

In the aggregate, average exchange rates for 2019 used to translate international sales and operating results into U.S. dollars were unfavorable compared with average exchange rates existing during 2018.  It is not possible to precisely measure the impact on operating results arising from foreign currency exchange rate changes, because of changes in selling prices, sales volume, product mix and cost structure in each country in which we operate.  However, if transactions for the three months ended April 30, 2019 were translated at exchange rates in effect during the same period of 2018, sales would have been approximately $19,659 higher while third-party costs and expenses would have been approximately $10,589 higher. If transactions for the six months ended April 30, 2019 were translated at exchange rates in effect during the same period of 2018, sales would have been approximately $29,809 higher while third-party costs and expenses would have been approximately $16,687 higher.  

Financial Condition

Liquidity and Capital Resources

During the six months ended April 30, 2019, cash and cash equivalents increased $53,505.  Cash provided by operations during this period was $161,912, compared to $212,311 for the six months ended April 30, 2018.  Cash of $206,475 was generated from net income adjusted for non-cash income and expenses (consisting of depreciation and amortization, non-cash stock compensation, deferred income taxes, other non-cash expense and loss on sale of property, plant and equipment), compared to $216,303 for the comparable period of 2018.  Changes in operating assets and liabilities reduced cash $44,563 in the six months ended April 30, 2019, compared to $3,992 in the comparable period of 2018.

Cash used in investing activities was $25,688 for the six months ended April 30, 2019, compared to $76,990 in the comparable period of 2018. In the prior period, cash of $44,176 was used for the Sonoscan acquisition. Capital expenditures in the six months ended April 30, 2019 were $26,603, compared to $33,049 in the comparable period of 2018.

Cash used in financing activities was $86,560 for the six months ended April 30, 2019, compared to $72,108 used in the comparable period of the prior year.  Net proceeds of long-term debt and short-term borrowings produced $60,277, compared to net repayments of long-term debt and short-term borrowings of $45,173 in the prior period. Cash of $118,089 was used for the purchase of treasury shares and cash of $40,239 was used for dividend payments, compared to $5,005 and $34,697, respectively, in the comparable period of 2018. Issuance of common shares related to employee benefit plans generated $14,454 compared to $15,595 in the comparable period of 2018.

The following is a summary of significant changes in balance sheet captions from October 31, 2018 to April 30, 2019. The decrease of $35,826 in accrued liabilities was primarily due to compensation adjustments and bonuses paid out in the first quarter. Current maturities of long-term debt increased $125,000 due to a $25,000 reclass of our notes issued under our agreement with New York Life and a $100,000 reclass of our Term Loan Agreement with PNC Bank from long term maturities.  Long-term debt decreased $65,000 primarily due to net borrowings of our long-term debt, offset by the reclasses to current maturities noted above.

In December 2014, the board of directors authorized a $300,000 common share repurchase program. This program replaced the $200,000 program approved by the board in August 2013. In August 2015, the board of directors authorized the repurchase of up to an additional $200,000 of the Company’s common shares.  In August 2018, the board of directors authorized the repurchase of an additional $500,000 of the Company’s common shares.  Approximately $487,628 of the total $1,000,000 authorized remained available for share repurchases at April 30, 2019. Uses for repurchased shares include the funding of benefit programs including stock options, restricted stock and 401(k) matching. Shares purchased are treated as treasury shares until used for such purposes. The repurchase program is being funded using cash from operations and proceeds from borrowings under our credit facilities.

Contractual Obligations

In April 2019, we amended and restated and extended the term of our existing $605,000 term loan facility with a group of banks. The Term Loan Agreement provides for the following term loans in three tranches: $100,000 due in March 2020, $200,000 due in September 2022, and $305,000 due in March 2024.  The weighted average interest rate for borrowings under this agreement was 3.57% at April 30, 2019.  We were in compliance with all covenants at April 30, 2019.

In April 2019, we entered into a $850,000 unsecured, multicurrency credit facility with a group of banks, which amended and restated and extended the term of our existing syndicated revolving credit agreement that was scheduled to expire in February 2020. This facility has a five-year term and includes a $75,000 subfacility for swing-line loans.  It expires in April 2024.  At April 30, 2019, we had no balances outstanding under this facility, compared to $52,200 outstanding at October 31, 2018. We were in compliance with all covenants at April 30, 2019, and the amount we could borrow under the facility would not have been limited by any debt covenants.

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In October 2018, we entered into a €150,000 agreement with Bank of America Merrill Lynch International Limited.  The interest rate is variable based on the EUR LIBOR rate.  The weighted average interest rate at April 30, 2019 was 0.88%.  At April 30, 2019, the balance outstanding was €115,000 ($128,967).  We were in compliance with all covenants at April 30, 2019.

In June 2018, we entered into a Note Purchase Agreement with a group of insurance companies under which we sold $350,000 of Senior Notes to the insurance companies and their affiliates. The notes start to mature in June 2023 and mature through June 2030 and bear interest at fixed rates between 3.71% and 4.17%.   We used the proceeds from the sale of the notes to repay approximately $315,000 of the outstanding balance under our existing syndicated revolving credit facility at that time, and the reminder for general corporate purposes.  We were in compliance with all covenants at April 30, 2019.

We entered into a $150,000 three-year Note Purchase and Private Shelf agreement with New York Life Investment Management LLC in 2011.  In 2015, the amount of the facility was increased to $180,000, and in 2016 it was increased to $200,000. Notes issued under the agreement may have a maturity of up to 12 years, with an average life of up to 10 years, and are unsecured. At April 30, 2019 and October 31, 2018 $36,111 was outstanding under this facility. Existing notes mature between January 2020 and September 2020.  The interest rate on each borrowing is fixed based on the market rate at the borrowing date or is variable based upon the LIBOR rate.  At April 30, 2019, the amount outstanding under this facility bears interest at fixed rates between 2.21% and 2.56%.  This agreement contains customary events of default and covenants related to limitations on indebtedness and the maintenance of certain financial ratios.  We were in compliance with all covenants at April 30, 2019, and the amount we could borrow would not have been limited by any debt covenants.

In 2012, we entered into a Note Purchase Agreement with a group of insurance companies under which we sold $200,000 of Senior Notes.  At April 30, 2019 and October 31, 2018, $156,700 was outstanding under this agreement. Existing notes mature between July 2019 and July 2025 and bear interest at fixed rates between 2.62% and 3.13%.  We were in compliance with all covenants at April 30, 2019.

In July 2015, we entered into a Note Purchase Agreement under which $100,000 of Senior Unsecured Notes were purchased primarily by a group of insurance companies.  The notes start to mature in July 2019 and mature through July 2027 and bear interest at fixed rates of 2.89% and 3.19%.  We were in compliance with all covenants at April 30, 2019.  

Outlook

For the balance of the year, we are optimistic about longer term growth opportunities in the diverse consumer durable, non-durable, medical, and industrial end markets we serve. For 2019, considering the impact of recent macroeconomic trends, organic sales are now expected to increase in the low single digits compared to the prior year, offset by an unfavorable currency effect of 2 percent based on the current exchange rate environment as compared to the prior year. We move forward with caution given continued slower growth in emerging markets than previous years, expectations for global GDP indicating a low-growth macroeconomic environment, tariffs and other international trade uncertainties, and marketplace effects of political instability in certain areas of the world.  Though the pace of improvement in the global economy remains unclear, our growth potential has been demonstrated over time from our capacity to build and enhance our core businesses by entering emerging markets, pursuing market adjacencies and driving growth initiatives.  We drive value for our customers through our application expertise, differentiated technology, and direct sales and service support.  Our priorities also are focused on operational efficiencies by employing continuous improvement methodologies in our business processes.  We expect our efforts will continue to provide more than sufficient cash from operations for meeting our liquidity needs and paying dividends to common shareholders, as well as enabling us to invest in the development of new applications and markets for our technologies.

Safe Harbor Statements Under The Private Securities Litigation Reform Act Of 1995

This Form 10-Q, particularly the “Management’s Discussion and Analysis”, contains forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995.  Such statements relate to, among other things, income, earnings, cash flows, changes in operations, operating improvements, businesses in which we operate and the U.S. and global economies.  Statements in this Form 10-Q that are not historical are hereby identified as “forward-looking statements” and may be indicated by words or phrases such as “anticipates”, “supports”, “plans”, “projects”, “expects”, “believes”, “should”, “would”, “could”, “hope”, “forecast”, “management is of the opinion”, use of the future tense and similar words or phrases.

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Nordson Corporation

In light of these risks and uncertainties, actual events and results may vary significantly from those included in or contemplated or implied by such statements.  Readers are cautioned not to place undue reliance on such forward-looking statements.  These forward-looking statements speak only as of the date made.  We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Factors that could cause actual results to differ materially from the expected results are discussed in Item 1A, Risk Factors in our Form 10-K for the year ended October 31, 2018.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Information regarding our financial instruments that are sensitive to changes in interest rates and foreign currency exchange rates was disclosed in our Form 10-K for the year ended October 31, 2018.  The information disclosed has not changed materially in the interim period since then.

ITEM 4. CONTROLS AND PROCEDURES

Our management with the participation of the principal executive officer (President and Chief Executive Officer) and principal financial officer (Executive Vice President, Chief Financial Officer) has reviewed and evaluated our disclosure controls and procedures (as defined in the Securities Exchange Act Rule 13a-15(e)) as of April 30, 2019.  Based on that evaluation, our management, including the principal executive and financial officers, has concluded that our disclosure controls and procedures were effective as of April 30, 2019 in ensuring that information required to be disclosed in the reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms and is accumulated and communicated to management, including the principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

There were no changes in our internal controls over financial reporting that occurred during the three months ended April 30, 2019 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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Nordson Corporation

Part II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We are involved in pending or potential litigation regarding environmental, product liability, patent, contract, employee and other matters arising from the normal course of business.  Including the matters discussed below, it is our opinion, after consultation with legal counsel, that resolutions of these matters are not expected to result in a material adverse effect on our financial condition, quarterly or annual operating results or cash flows.

We have voluntarily agreed with the City of New Richmond, Wisconsin and other Potentially Responsible Parties to share costs associated with the remediation of the City of New Richmond municipal landfill (the “Site”) and the construction of a potable water delivery system serving the impacted area down gradient of the Site.  At April 30, 2019 and October 31, 2018, our accrual for the ongoing operation, maintenance and monitoring obligation at the Site was $439. The liability for environmental remediation represents management’s best estimate of the probable and reasonably estimable undiscounted costs related to known remediation obligations.  The accuracy of our estimate of environmental liability is affected by several uncertainties such as additional requirements that may be identified in connection with remedial activities, the complexity and evolution of environmental laws and regulations, and the identification of presently unknown remediation requirements. Consequently, our liability could be greater than our current estimate.  However, we do not expect that the costs associated with remediation will have a material adverse effect on our financial condition or results of operations.

On February 22, 2019, a former employee, Mr. Ortiz, filed a purported class action lawsuit in the San Diego County Superior Court, California, against Nordson Asymtek, Inc. and Nordson Corporation, alleging various violations of the California Labor Code.  Plaintiff seeks, among other things, an unspecified amount for unpaid wages, actual, consequential and incidental losses, penalties, and attorneys’ fees and costs.  Management believes, based on currently available information, that the ultimate outcome of the proceeding described above will not have a material adverse effect on the Company’s financial condition or results of operations.

ITEM 1A. RISK FACTORS

Information regarding our risk factors was disclosed in our Form 10-K filed for the year ended October 31, 2018.  The information disclosed has not changed materially in 2019.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following table summarizes common stock repurchased by the Company during the three months ended April 30, 2019:

					Total Number of		Maximum Value
					Shares Purchased		of Shares that
	Total Number		Average		as Part of Publicly		May Yet Be Purchased
	of Shares		Price Paid		Announced Plans		Under the Plans
	Purchased(1)		per Share		or Programs(2)		or Programs(2)
February 1, 2019 to February 28, 2019		76		131.81		76	$	487,628
March 1, 2019 to March 31, 2019		—		—		—	$	487,628
April 1, 2019 to April 30, 2019		3		136.45		—	$	487,628
Total		79				76

(1) Includes 3 shares tendered for taxes related to vesting of restricted stock.

(2) In December 2014, the board of directors authorized a $300,000 common share repurchase program.  In August 2015, the board of directors authorized the repurchase of up to an additional $200,000 of the Company’s common shares. In August 2018, the board of directors authorized the repurchase of an additional $500,000 of the Company’s common shares. Approximately $487,628 of the total $1,000,000 authorized remained available for share repurchases at April 30, 2019. Uses for repurchased shares include the funding of benefit programs including stock options, restricted stock and 401(k) matching. Shares purchased are treated as treasury shares until used for such purposes. The repurchase program is being funded using cash from operations and proceeds from borrowings under our credit facilities.

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Nordson Corporation

ITEM 6. EXHIBITS

4.1	Third Amended and Restated Credit Agreement, dated April  30, 2019, among Nordson Corporation, various financial institutions named therein, and KeyBank, National Association, as administrative agent (incorporated herein by reference to Exhibit 4.1 to Registrant’s Current Report on Form 8-K filed on May 6, 2019)**
4.2	Amended and Restated Term Loan Agreement, dated April 30, 2019, among Nordson Corporation, various financial institutions named therein, and PNC Bank, National Association, as administrative agent (incorporated herein by reference to Exhibit 4.2 to Registrant’s Current Report on Form 8-K filed on May 6, 2019)**
31.1	Certification pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934 by the Chief Executive Officer, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934 by the Chief Financial Officer, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
101	The following financial information from Nordson Corporation’s Quarterly Report on Form 10-Q for the three and six months ended April 30, 2019, formatted in inline Extensible Business Reporting Language (iXBRL): (i) the Condensed Consolidated Statements of Income for the three and six months ended April 30, 2019 and 2018, (ii) the Condensed Consolidated Statements of Comprehensive Income for the three and six months ended April 30, 2019 and 2018, (iii) the Condensed Consolidated Balance Sheets at April 30, 2019 and October 31, 2018, (iv) the Condensed Consolidated Statements of Changes in Shareholders’ Equity for the three and six months ended April 30, 2019 and 2019, (v) the Condensed Consolidated Statements of Cash Flows for the six months ended April 30, 2019 and 2018, and (vi) the Notes to Condensed Consolidated Financial Statements.

* Furnished herewith.

** Schedules and attachments to this exhibit have been omitted pursuant to Regulation S-K, Item 601(a)(5).

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Nordson Corporation

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date:  June 6, 2019	Nordson Corporation
	By: /s/     GREGORY A. THAXTON
	Gregory A. Thaxton
	Executive Vice President, Chief Financial Officer
	(Principal Financial Officer)

Page 31

EX-31.1

Exhibit 31.1

CERTIFICATIONS

CERTIFICATION PURSUANT TO RULE 13a-14(a)/15d-14(a) OF THE SECURITIES EXCHANGE ACT OF 1934, AS
ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Michael F. Hilton, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Nordson Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: June 6, 2019
	/s/ Michael F. Hilton
	Michael F. Hilton
	President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO RULE 13a-14(a)/15d-14(a) OF THE SECURITIES EXCHANGE ACT OF 1934, AS
ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Gregory A. Thaxton, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Nordson Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: June 6, 2019
	/s/ Gregory A. Thaxton
	Gregory A. Thaxton
	Executive Vice President, Chief Financial Officer

EX-32.1

Exhibit 32.1

Certification

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

(Section 1350, Chapter 63 of Title 18, United States Code)

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Section 1350, Chapter 63 of Title 18, United States Code), I, Michael F. Hilton, President and Chief Executive Officer of Nordson Corporation, an Ohio corporation (the “Company”), do hereby certify that:

1. The Quarterly Report on Form 10-Q for the quarter ended April 30, 2019 of the Company (the “Form 10-Q”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. Information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:  June 6, 2019	/s/ Michael F. Hilton
	Michael F. Hilton
	President and Chief Executive Officer

EX-32.2

Exhibit 32.2

Certification

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

(Section 1350, Chapter 63 of Title 18, United States Code)

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Section 1350, Chapter 63 of Title 18, United States Code), I, Gregory A. Thaxton, Senior Vice President, Chief Financial Officer of Nordson Corporation, an Ohio corporation (the “Company”), do hereby certify that:

1. The Quarterly Report on Form 10-Q for the quarter ended April 30, 2019 of the Company (the “Form 10-Q”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. Information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:  June 6, 2019	/s/ Gregory A. Thaxton
	Gregory A. Thaxton
	Executive Vice President, Chief Financial Officer

XML

Document and Entity Information - shares	6 Months Ended
	Apr. 30, 2019	May 31, 2019
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Apr. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Trading Symbol	NDSN
Entity Registrant Name	NORDSON CORP
Entity Central Index Key	0000072331
Current Fiscal Year End Date	--10-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		57,450,257
Entity Small Business	false
Entity Emerging Growth Company	false

XML

Condensed Consolidated Statements of Income (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2019	Apr. 30, 2018	Apr. 30, 2019	Apr. 30, 2018
Income Statement [Abstract]
Sales	$ 551,119	$ 553,706	$ 1,049,029	$ 1,104,130
Operating costs and expenses:
Cost of sales	249,590	246,691	478,524	496,142
Selling and administrative expenses	172,633	178,123	357,328	359,746
Total operating costs and expenses	422,223	424,814	835,852	855,888
Operating profit	128,896	128,892	213,177	248,242
Other income (expense):
Interest expense	(12,372)	(12,127)	(24,738)	(23,445)
Interest and investment income	325	219	642	509
Other - net	(568)	1,135	(4,757)	(3,669)
Total other income (expense)	(12,615)	(10,773)	(28,853)	(26,605)
Income before income taxes	116,281	118,119	184,324	221,637
Income taxes	24,358	26,884	43,834	25,847
Net income	$ 91,923	$ 91,235	$ 140,490	$ 195,790
Average common shares	57,288	57,989	57,498	57,870
Incremental common shares attributable to outstanding stock options, restricted stock, and deferred stock-based compensation	768	956	719	1,038
Average common shares and common share equivalents	58,056	58,945	58,217	58,908
Basic earnings per share	$ 1.60	$ 1.57	$ 2.44	$ 3.38
Diluted earnings per share	1.58	1.55	2.41	3.32
Dividends declared per share	$ 0.35	$ 0.30	$ 0.70	$ 0.60

XML

Condensed Consolidated Statements of Comprehensive Income (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2019	Apr. 30, 2018	Apr. 30, 2019	Apr. 30, 2018
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 91,923	$ 91,235	$ 140,490	$ 195,790
Components of other comprehensive income:
Foreign currency translation adjustments	(9,064)	(19,284)	7,399	19,298
Amortization of prior service cost and net actuarial losses, net of tax	1,598	2,812	2,950	4,321
Total other comprehensive income (loss)	(7,466)	(16,472)	10,349	23,619
Total comprehensive income	$ 84,457	$ 74,763	$ 150,839	$ 219,409

XML

Condensed Consolidated Balance Sheets (UNAUDITED) - USD ($) $ in Thousands	Apr. 30, 2019	Oct. 31, 2018
Current assets:
Cash and cash equivalents	$ 149,183	$ 95,678
Receivables - net	489,745	491,423
Inventories - net	280,733	264,477
Prepaid expenses and other current assets	45,276	32,524
Total current assets	964,937	884,102
Property, plant and equipment - net	386,349	386,666
Goodwill	1,607,509	1,608,018
Intangible assets - net	471,207	499,741
Deferred income taxes	11,204	9,780
Other assets	33,882	32,705
Total assets	3,475,088	3,421,012
Current liabilities:
Accounts payable	93,039	83,590
Income taxes payable	13,711	19,319
Accrued liabilities	139,259	175,085
Customer advanced payments	42,110	38,997
Current maturities of long-term debt	153,734	28,734
Current obligations under capital leases	4,638	4,555
Total current liabilities	446,491	350,280
Long-term debt	1,220,391	1,285,357
Deferred income taxes	102,822	100,704
Pension obligations	108,418	113,222
Postretirement obligations	71,049	70,154
Other long-term liabilities	54,654	50,554
Shareholders' equity:
Common shares	12,253	12,253
Capital in excess of stated value	464,915	446,555
Retained earnings	2,592,955	2,488,375
Accumulated other comprehensive loss	(168,965)	(179,314)
Common shares in treasury, at cost	(1,429,895)	(1,317,128)
Total shareholders' equity	1,471,263	1,450,741
Total liabilities and shareholders' equity	$ 3,475,088	$ 3,421,012

XML

Condensed Consolidated Statements of Shareholders' Equity (UNAUDITED) - USD ($) $ in Thousands	Total	Common Shares [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI [Member]	Common Shares in Treasury, At Cost [Member]
Balance at Oct. 31, 2017	$ 1,155,493	$ 12,253	$ 412,785	$ 2,164,597	$ (134,435)	$ (1,299,707)
Shares issued under company stock and employee benefit plans	10,305		6,526			3,779
Stock-based compensation	6,987		6,987
Purchase of treasury shares, value	(4,989)					(4,989)
Dividends declared	(17,321)			(17,321)
Net income	104,555			104,555
Other Comprehensive Income (Loss):
Foreign currency translation adjustments	38,582				38,582
Defined benefit pension and post-retirement plans adjustment	1,509				1,509
Balance at Jan. 31, 2018	1,295,121	12,253	426,298	2,251,831	(94,344)	(1,300,917)
Balance at Oct. 31, 2017	1,155,493	12,253	412,785	2,164,597	(134,435)	(1,299,707)
Net income	195,790
Other Comprehensive Income (Loss):
Foreign currency translation adjustments	19,298
Balance at Apr. 30, 2018	1,362,910	12,253	435,070	2,325,690	(110,816)	(1,299,287)
Balance at Jan. 31, 2018	1,295,121	12,253	426,298	2,251,831	(94,344)	(1,300,917)
Shares issued under company stock and employee benefit plans	5,291		3,645			1,646
Stock-based compensation	5,127		5,127
Purchase of treasury shares, value	(16)					(16)
Dividends declared	(17,376)			(17,376)
Net income	91,235			91,235
Other Comprehensive Income (Loss):
Foreign currency translation adjustments	(19,284)				(19,284)
Defined benefit pension and post-retirement plans adjustment	2,812				2,812
Balance at Apr. 30, 2018	1,362,910	12,253	435,070	2,325,690	(110,816)	(1,299,287)
Balance at Oct. 31, 2018	1,450,741	12,253	446,555	2,488,375	(179,314)	(1,317,128)
Shares issued under company stock and employee benefit plans	3,607		1,016			2,591
Stock-based compensation	4,359		4,359
Purchase of treasury shares, value	(107,667)					(107,667)
Dividends declared	(20,210)			(20,210)
Net income	48,567			48,567
Impact of adoption of ASU 2014-09 (See Note 2)	4,329			4,329
Other Comprehensive Income (Loss):
Foreign currency translation adjustments	16,463				16,463
Defined benefit pension and post-retirement plans adjustment	1,352				1,352
Balance at Jan. 31, 2019	1,401,541	12,253	451,930	2,521,061	(161,499)	(1,422,204)
Balance at Oct. 31, 2018	1,450,741	12,253	446,555	2,488,375	(179,314)	(1,317,128)
Net income	140,490
Other Comprehensive Income (Loss):
Foreign currency translation adjustments	7,399
Balance at Apr. 30, 2019	1,471,263	12,253	464,915	2,592,955	(168,965)	(1,429,895)
Balance at Jan. 31, 2019	1,401,541	12,253	451,930	2,521,061	(161,499)	(1,422,204)
Shares issued under company stock and employee benefit plans	10,847		8,116			2,731
Stock-based compensation	4,869		4,869
Purchase of treasury shares, value	(10,422)					(10,422)
Dividends declared	(20,029)			(20,029)
Net income	91,923			91,923
Other Comprehensive Income (Loss):
Foreign currency translation adjustments	(9,064)				(9,064)
Defined benefit pension and post-retirement plans adjustment	1,598				1,598
Balance at Apr. 30, 2019	$ 1,471,263	$ 12,253	$ 464,915	$ 2,592,955	$ (168,965)	$ (1,429,895)

XML

Condensed Consolidated Statements of Shareholders' Equity (UNAUDITED) (Parenthetical) - $ / shares shares in Thousands	3 Months Ended
	Apr. 30, 2019	Jan. 31, 2019	Apr. 30, 2018	Jan. 31, 2018
Statement Of Stockholders Equity [Abstract]
Purchase of treasury shares, shares	78,957	901,545	120	34,645
Dividends declared per share	$ 0.35	$ 0.35	$ 0.30	$ 0.30

XML

Condensed Consolidated Statements of Cash Flows (UNAUDITED) - USD ($) $ in Thousands	6 Months Ended
	Apr. 30, 2019	Apr. 30, 2018
Cash flows from operating activities:
Net income	$ 140,490	$ 195,790
Depreciation and amortization	55,488	53,716
Non-cash stock compensation	9,228	12,114
Deferred income taxes	(828)	(46,531)
Other non-cash expense	1,213	539
Loss on sale of property, plant and equipment	884	675
Changes in operating assets and liabilities	(44,563)	(3,992)
Net cash provided by operating activities	161,912	212,311
Cash flows from investing activities:
Additions to property, plant and equipment	(26,603)	(33,049)
Proceeds from sale of property, plant and equipment	984	235
Acquisition of businesses, net of cash acquired	(69)	(44,176)
Net cash used in investing activities	(25,688)	(76,990)
Cash flows from financing activities:
Proceeds from short-term borrowings		996
Repayment of short-term borrowings		(1,006)
Proceeds from long-term debt	186,084	125,904
Repayment of long-term debt	(125,807)	(171,067)
Repayment of capital lease obligations	(2,963)	(2,828)
Issuance of common shares	14,454	15,595
Purchase of treasury shares	(118,089)	(5,005)
Dividends paid	(40,239)	(34,697)
Net cash used in financing activities	(86,560)	(72,108)
Effect of exchange rate changes on cash	3,841	2,350
Increase in cash and cash equivalents	53,505	65,563
Cash and cash equivalents:
Beginning of year	95,678	90,383
End of period	$ 149,183	$ 155,946

XML

Significant Accounting Policies

6 Months Ended

Apr. 30, 2019

Accounting Policies [Abstract]

Significant Accounting Policies

1. Significant accounting policies

Basis of presentation.  The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X.  Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.  In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.  Operating results for the three and six months ended April 30, 2019 are not necessarily indicative of the results that may be expected for the full year.  For further information, refer to the consolidated financial statements and footnotes included in our Annual Report on Form 10-K for the year ended October 31, 2018. Certain reclassifications have been made to the prior year financial statements to conform to current year classifications.

Basis of consolidation.  The consolidated financial statements include the accounts of Nordson Corporation and its majority-owned and controlled subsidiaries.  Investments in affiliates and joint ventures in which our ownership is 50% or less or in which we do not have control but have the ability to exercise significant influence, are accounted for under the equity method.  All significant intercompany accounts and transactions have been eliminated in consolidation.  

Use of estimates.  The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements.  Actual amounts could differ from these estimates.

Earnings per share.  Basic earnings per share are computed based on the weighted-average number of common shares outstanding during each year, while diluted earnings per share are based on the weighted-average number of common shares and common share equivalents outstanding.  Common share equivalents consist of shares issuable upon exercise of stock options computed using the treasury stock method, as well as restricted shares and deferred stock-based compensation.  Options with an exercise price higher than the average market price are excluded from the calculation of diluted earnings per share because the effect would be anti-dilutive.  No options were excluded from the calculation of diluted earnings per share for the three months ended April 30, 2019. Options excluded from the calculation of diluted earnings per share for the six months ended April 30, 2019 were 352. No options were excluded from the calculation of diluted earnings per share for the three and six months ended April 30, 2018.

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Revenue Recognition

6 Months Ended

Apr. 30, 2019

Revenue From Contract With Customer [Abstract]

Revenue Recognition

2. Revenue recognition

Adoption of new accounting standard:

On November 1, 2018, we adopted ASU 2014-09 (“Topic 606”) using the modified retrospective method applied to those contracts which were not completed as of November 1, 2018. Results for reporting periods beginning after November 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting. The cumulative impact of adopting Topic 606 as of November 1, 2018 did not have a material impact to the Consolidated Financial Statements. The Company does not expect the impact of the adoption of Topic 606 to be material to the Consolidated Financial Statements on an ongoing basis.

Accounting policy:

A contract exists when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of the consideration is probable.  Revenue is recognized when performance obligations under the terms of the contract with a customer are satisfied.  Generally, our revenue results from short-term, fixed-price contracts and continues to primarily be recognized as of a point in time when the product is shipped or at a later point when the control of the product transfers to the customer. Revenue for undelivered items is deferred and included within Accrued liabilities in our Consolidated Balance Sheets. Revenues deferred in 2019 and 2018 were not material.

However, for certain contracts related to the sale of customer-specific product within our Advanced Technology Systems segment, there was a change in revenue recognition upon adoption of the new revenue standard. Previously, these contracts were recognized at the point in time when the shipping terms were satisfied.  Under the new revenue standard, we now recognize revenue for these contracts over time as we satisfy performance obligations because of the continuous transfer of control to the customer. The continuous transfer of control to the customer occurs as we enhance assets that are customer controlled and we are contractually entitled to payment for work performed to date plus a reasonable margin.  

As control transfers over time for these products or services, revenue is recognized based on progress toward completion of the performance obligations.  The selection method to measure progress towards completion requires judgment and is based on the nature of the products or services to be provided.  We have elected to use the input method – costs incurred for these contracts because it best depicts the transfer of products or services to the customer based on incurring costs on the contract.  Under this method, revenues are recorded proportionally as costs are incurred.  Contract assets recognized are recorded in Prepaid expenses and other current assets and contract liabilities are recorded in Accrued liabilities in our Consolidated Balance Sheets and were not material at April 30, 2019.  Revenue recognized over time is not material to our overall Consolidated Financial Statements.

Revenue is measured as the amount of consideration we expect to receive in exchange for transferring products or services.  Sales, value add, and other taxes we collect concurrently with revenue-producing activities are excluded from revenue.  As a practical expedient, we may exclude the assessment of whether goods or services are performance obligations, if they are immaterial in the context of the contract, and combine these with other performance obligations.  While payment terms and conditions vary by contract type, we have determined that our contracts generally do not include a significant financing component.  We have elected to apply the practical expedient to treat all shipping and handling costs as fulfillment costs as a significant portion of these costs are incurred prior to transfer of control to the customer.  We have also elected to apply the practical expedient to expense sales commissions as they are incurred as the amortization period resulting from capitalizing the costs is one year or less. These costs are recorded within Selling, general and administrative expenses in our Consolidated Statements of Income.

We offer assurance type warranties on our products as well as separately sold warranty contracts.  Revenue related to warranty contracts that are sold separately is recognized over the life of the warranty term. See Note 11 for details on our warranties.

Certain arrangements may include installation, installation supervision, training, and spare parts, which tend to be completed in a short period of time, at an insignificant cost, and utilizing skills not unique to us, therefore, are typically regarded as inconsequential or not material.

We disclose disaggregated revenues by operating segment and geography in accordance with the revenue standard and on the same basis used internally by the chief operating decision maker for evaluating performance of operating segments and for allocating resources.  See Note 12 for details on our operating segments.    

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Recently Issued Accounting Standards

6 Months Ended

Apr. 30, 2019

Accounting Changes And Error Corrections [Abstract]

Recently Issued Accounting Standards

3. Recently issued accounting standards

New accounting guidance adopted:

In March 2017, the FASB issued a new standard which requires the presentation of the service cost component of the net periodic benefit cost in the same income statement line item as other employee compensation costs arising from services rendered during the period. All other components of net periodic benefit cost will be presented below operating income. Additionally, only the service cost component will be eligible for capitalization in assets.  We adopted the standard beginning November 1, 2018.  During the three and six months ended April 30, 2018, the reclassification resulted in an increase in Other expense of $2,187 and $3,814, respectively, as a result of a decrease in Cost of goods sold of $187 and $157, respectively, and a decrease in Selling, general & administrative expenses of $2,000 and $3,657, respectively.   

New accounting guidance issued and not yet adopted:

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) which requires a lessee to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases with a lease term of more than twelve months. Leases will be classified as either financing or operating, with classification affecting the recognition, measurement and presentation of expenses and cash flows arising from a lease.  While the Company is currently evaluating the impact that this new guidance will have on its consolidated financial statements, it is expected that the primary impact upon adoption will be the recognition, on a discounted basis, of the Company's minimum commitments under noncancelable operating leases as right of use assets and lease liabilities on the consolidated balance sheets. It is expected that this could result in a substantial increase in assets and liabilities on the consolidated balance sheets 

We will adopt the new standard on the required effective date of November 1, 2019 using the transition option, established by ASU 2018-11, Leases (Topic 842), Targeted Improvements (ASU 2018-11). This transition option was released by the FASB to reduce the cost and complexity associated with reflecting the new standard in prior periods presented. We will also elect the practical expedient package related to the identification of leases in contracts, lease classification, and accounting for initial direct costs whereby prior conclusions do not have to be reassessed for leases that commenced before the effective date. As we will not reassess such conclusions, we do not plan to adopt the practical expedient to use hindsight to determine the likelihood of whether a lease will be extended, terminated or whether a purchase option will be exercised. We have selected an enterprise-wide lease management system and we are advancing in the implementation process to assist in the related accounting.  A cross-functional implementation team is continuing to identify leases, determine policy elections, gather data, and implement changes to business processes and controls to support recognition and disclosure under the new standard.

In June 2016, the FASB issued a new standard that changes the impairment model for most financial instruments. Current guidance requires the recognition of credit losses based on an incurred loss impairment methodology that reflects losses once the losses are probable.  We will be required to use a current expected credit loss model that will immediately recognize an estimate of credit losses that are expected to occur over the life of the financial instruments that are in the scope of this update, including trade receivables.  ASU 2016-13 does not prescribe a specific method to make an estimate so the application will require significant judgment and should consider historical information, current information, reasonable and supportable forecasts, and includes estimates of prepayment.  This guidance will become effective for us on November 1, 2020. We are currently assessing the impact this standard will have on the Consolidated Financial Statements.

In August 2018, the FASB issued a new standard which removes, modifies, and adds certain disclosure requirements on fair value measurements.  The guidance removes disclosure requirements pertaining to the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels, and the valuation processes for Level 3 fair value measurements. For investments in certain entities that calculate net asset value, an entity is required to disclose the timing of liquidation of an investee’s assets and the date when restrictions from redemption might lapse only if the investee has communicated the timing to the entity or announced the timing publicly.  In addition, the amendment clarifies that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date. The guidance adds disclosure requirements for changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period as well as the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements.  It will be effective for us beginning November 1, 2020.  Early adoption is permitted.  We are currently assessing the impact this standard will have on our Consolidated Financial Statements.

In August 2018, the FASB issued a new standard which addresses defined benefit plans.  The amendments modify the following disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans: the amounts in accumulated other comprehensive income expected to be recognized as components of net period benefit cost over the next fiscal year, amount and timing of plan assets expected to be returned to the employer, related party disclosure about the amount of future annual benefits covered by insurance and annuity contracts and significant transactions between the employer or related parties and the plan, and the effects of a one-percentage point change in assumed health care cost trend rates on the (a) aggregate of the service and interest cost components of net periodic benefit costs and (b) benefit obligation for postretirement health care benefits are removed.  A disclosure requirement was added for the explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period.  Additionally, the standard clarifies disclosure requirement surrounding the projected benefit obligation (PBO) and fair value of plan assets for plans with PBOs in excess of plan assets and the accumulated benefit obligation (ABO) and fair value of plan assets for plans with ABOs in excess of plan assets.  It will be effective for us beginning November 1, 2020.  Early adoption is permitted.  We are currently assessing the impact this standard will have on our Consolidated Financial Statements.

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Acquisitions

6 Months Ended

Apr. 30, 2019

Business Combinations [Abstract]

Acquisitions

4. Acquisitions

Business acquisitions have been accounted for using the acquisition method, with the acquired assets and liabilities recorded at estimated fair value on the dates of acquisition. The cost in excess of the net assets of the business acquired is included in goodwill. Operating results since the respective dates of acquisitions are included in the Consolidated Statements of Income.

2018 acquisitions

On October 17, 2018, we purchased 100 percent of the outstanding shares of Cladach Nua Teoranta (“Clada”), a Galway, Ireland designer and developer primarily focused on medical balloons and balloon catheters. Clada’s technologies are used in key applications such as angioplasty and the treatment of vascular disease. We acquired Clada for an aggregate purchase price of $5,236, which included an earn-out liability of $1,131. Based on the fair value of the assets acquired and the liabilities

assumed, goodwill of $3,776 and identifiable intangible assets of $697 were recorded. The identifiable intangible assets consist primarily of $58 of customer relationships (amortized over 6 years), $70 of tradenames (amortized over 9 years), $499 of technology (amortized over 7 years) and $70 of non-compete agreements (amortized over 3 years). Goodwill associated with this acquisition is not tax deductible. This acquisition is being reported in our Advanced Technology Systems segment. As of April 30, 2019, the purchase price allocations remain preliminary as we complete our assessments of income taxes.

On January 2, 2018, we purchased 100 percent of the outstanding shares of Sonoscan, Inc. (“Sonoscan”), an Elk Grove Village, Illinois leading designer and manufacturer of acoustic microscopes and sophisticated acoustic micro imaging systems used in a variety of microelectronic, automotive, aerospace and industrial electronic assembly applications. We acquired Sonoscan for an aggregate purchase price of $46,018, net of $655 of cash. Based on the fair value of the assets acquired and the liabilities assumed, goodwill of $22,775 and identifiable intangible assets of $7,910 were recorded. The identifiable intangible assets consist primarily of $1,700 of customer relationships (amortized over 7 years), $3,300 of tradenames (amortized over 11 years), $2,500 of technology (amortized over 7 years) and $410 of non-compete agreements (amortized over 5 years). Goodwill associated with this acquisition is tax deductible. This acquisition is being reported in our Advanced Technology Systems segment. As of April 30, 2019, the purchase price allocations are complete.

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Inventories

6 Months Ended

Apr. 30, 2019

Inventory Disclosure [Abstract]

Inventories

5. Inventories

At April 30, 2019 and October 31, 2018, inventories consisted of the following:

	April 30, 2019			October 31, 2018
Raw materials and component parts	$	102,361		$	112,823
Work-in-process		45,430			47,126
Finished goods		180,394			148,618
		328,185			308,567
Obsolescence and other reserves		(40,984	)		(37,545	)
LIFO reserve		(6,468	)		(6,545	)
	$	280,733		$	264,477

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Goodwill and Other Intangible Assets

6 Months Ended

Apr. 30, 2019

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

6. Goodwill and other intangible assets  

Changes in the carrying amount of goodwill for the six months ended April 30, 2019 by operating segment are as follows:

	Adhesive Dispensing Systems			Advanced Technology Systems			Industrial Coating Systems		Total
Balance at October 31, 2018	$	388,991		$	1,194,969		$	24,058	$	1,608,018
Acquisitions		—			926			—		926
Currency effect		(937	)		(498	)		—		(1,435	)
Balance at April 30, 2019	$	388,054		$	1,195,397		$	24,058	$	1,607,509

Accumulated impairment losses, which were recorded in 2009, were $232,789 at April 30, 2019 and October 31, 2018.  Of these losses, $229,173 related to the Advanced Technology Systems segment, and $3,616 related to the Industrial Coating Systems segment.

Information regarding our intangible assets subject to amortization is as follows:

	April 30, 2019
	Carrying Amount		Accumulated Amortization		Net Book Value
Customer relationships	$	479,391	$	155,876	$	323,515
Patent/technology costs		153,942		65,845		88,097
Trade name		96,274		38,039		58,235
Non-compete agreements		11,512		10,156		1,356
Other		1,394		1,390		4
Total	$	742,513	$	271,306	$	471,207
	October 31, 2018
	Carrying Amount		Accumulated Amortization		Net Book Value
Customer relationships	$	480,404	$	137,640	$	342,764
Patent/technology costs		153,602		59,845		93,757
Trade name		96,433		34,768		61,665
Non-compete agreements		11,469		9,919		1,550
Other		1,386		1,381		5
Total	$	743,294	$	243,553	$	499,741

Amortization expense for the three months ended April 30, 2019 and 2018 was $14,133 and $14,172, respectively. Amortization expense for the six months ended April 30, 2019 and 2018 was $27,762 and $28,061, respectively.   

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Pension and Other Postretirement Plans

6 Months Ended

Apr. 30, 2019

Compensation And Retirement Disclosure [Abstract]

Pension and Other Postretirement Plans

7. Pension and other postretirement plans  

The components of net periodic pension cost for the three and six months ended April 30, 2019 and 2018 were:

	U.S.						International
Three Months Ended	2019			2018			2019			2018
Service cost	$	3,577		$	2,944		$	486		$	528
Interest cost		4,492			3,768			424			424
Expected return on plan assets		(5,794	)		(5,489	)		(407	)		(393	)
Amortization of prior service credit		(15	)		(3	)		(76	)		(83	)
Amortization of net actuarial loss		1,544			2,550			428			548
Total benefit cost	$	3,804		$	3,770		$	855		$	1,024
	U.S.						International
Six Months Ended	2019			2018			2019			2018
Service cost	$	7,155		$	6,626		$	970		$	1,027
Interest cost		8,989			7,408			846			844
Expected return on plan assets		(11,597	)		(10,981	)		(807	)		(773	)
Amortization of prior service cost (credit)		(30	)		(11	)		(152	)		(162	)
Amortization of net actuarial loss		3,088			4,706			855			1,077
Total benefit cost	$	7,605		$	7,748		$	1,712		$	2,013

The components of other postretirement benefit cost for the three and six months ended April 30, 2019 and 2018 were:

	U.S.						International
Three Months Ended	2019			2018			2019			2018
Service cost	$	165		$	144		$	6		$	5
Interest cost		749			658			6			5
Amortization of prior service credit		(6	)		(25	)		—			—
Amortization of net actuarial (gain) loss		152			296			(9	)		(5	)
Total benefit cost	$	1,060		$	1,073		$	3		$	5
	U.S.						International
Six Months Ended	2019			2018			2019			2018
Service cost	$	331		$	356		$	9		$	10
Interest cost		1,497			1,295			11			10
Amortization of prior service credit		(13	)		(50	)		—			—
Amortization of net actuarial (gain) loss		304			545			(16	)		(10	)
Total benefit cost	$	2,119		$	2,146		$	4		$	10

The components of net periodic pension cost other than service cost are included in Other – net in our Consolidated Statements of Income.

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Income Taxes

6 Months Ended

Apr. 30, 2019

Income Tax Disclosure [Abstract]

Income Taxes

8. Income taxes

We record our interim provision for income taxes based on our estimated annual effective tax rate, as well as certain items discrete to the current period. The effective tax rates for the three and six months ended April 30, 2019 were 20.9% and 23.9%, respectively. The effective tax rates for the three and six months ended April 30, 2018 were 22.8% and 11.7%. The effective tax rate for the six months ended April 30, 2019 was higher than the comparable prior year period primarily due to the enacted law commonly referred to as the U.S. Tax Cuts and Jobs Act ("the Act").

On December 22, 2017, the Act was enacted into law which significantly revised U.S. tax law. It reduced the U.S. federal corporate income tax rate from 35% to 21%.  We have an October 31 fiscal year-end, therefore the lower corporate income tax rate was phased in, resulting in a U.S. statutory federal rate of 23.3% for our fiscal year ended October 31, 2018, and 21% for subsequent fiscal years.  The statutory tax rate of 21.0% was applied to earnings in the current quarter.  

Subsequent to the enactment of the Act, the SEC staff issued SAB 118, which provided a measurement period of up to one year after the enactment date for companies to finalize the recognition of the income tax effects of the Act. As of January 31, 2019, our provisional accounting for the effects of the Act are complete. During the six months ended April 30, 2019, and within the one year measurement period provided by SAB 118, a discrete tax expense of $4,866 was recorded to the provisional amounts recognized in 2018 due to changes in interpretations and assumptions and the finalization of estimates. During the six months ended April 30, 2018, we provisionally recorded a discrete tax benefit of $22,089.

In March 2016, the FASB issued a new standard which simplifies the accounting for share-based payment transactions. This guidance required that excess tax benefits and tax deficiencies be recognized as income tax expense or benefit in the Consolidated Statements of Income rather than as additional paid-in capital. As a result, our income tax provision included a discrete tax benefit of $2,149 and $3,017 for the three and six months ended April 30, 2019, respectively. Our income tax provision for the three and six months ended April 30, 2018 included a discrete tax benefit of $2,202 and $6,950, respectively.   

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Accumulated Other Comprehensive Loss

6 Months Ended

Apr. 30, 2019

Equity [Abstract]

Accumulated Other Comprehensive Loss

9. Accumulated other comprehensive loss

The components of accumulated other comprehensive loss, including adjustments for items that are reclassified from accumulated other comprehensive loss to net income, are shown below.

	Cumulative			Pension and			Accumulated
	translation			postretirement benefit			other comprehensive
	adjustments			plan adjustments			loss
Balance at October 31, 2018	$	(57,042	)	$	(122,272	)	$	(179,314	)
Amortization of prior service costs and net    actuarial losses, net of tax of $(912)		—			2,950			2,950
Foreign currency translation adjustments		7,399			—			7,399
Balance at April 30, 2019	$	(49,643	)	$	(119,322	)	$	(168,965	)

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Stock-Based Compensation

6 Months Ended

Apr. 30, 2019

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-Based Compensation

10. Stock-based compensation

During the 2018 Annual Meeting of Shareholders, our shareholders approved the Amended and Restated 2012 Stock Incentive and Award Plan (the “2012 Plan”). The 2012 Plan provides for the granting of stock options, stock appreciation rights, restricted shares, restricted share units, performance shares, cash awards and other stock or performance-based incentives. A maximum of 4,525 common shares are available for grant under the 2012 Plan.

Stock Options

Nonqualified or incentive stock options may be granted to our employees and directors.  Generally, options granted to employees may be exercised beginning one year from the date of grant at a rate not exceeding 25 percent per year and expire 10 years from the date of grant.  Vesting accelerates upon a qualified termination in connection with a change in control. In the event of termination of employment due to early retirement or normal retirement at age 65, options granted within 12 months prior to termination are forfeited, and vesting continues post retirement for all other unvested options granted.  In the event of disability or death, all unvested stock options granted within 12 months prior to termination (or at any time prior to December 28, 2017) fully vest.  Termination for any other reason results in forfeiture of unvested options and vested options in certain circumstances.  The amortized cost of options is accelerated if the retirement eligibility date occurs before the normal vesting date.  Option exercises are satisfied through the issuance of treasury shares on a first-in, first-out basis.  We recognized compensation expense related to stock options of $2,527 and $2,454 in the three months ended April 30, 2019 and 2018, respectively. Corresponding amounts for the six months ended April 30, 2019 and 2018 were $5,058 and $5,071, respectively.

The following table summarizes activity related to stock options for the six months ended April 30, 2019:

	Number of Options			Weighted-Average Exercise Price Per Share		Aggregate Intrinsic Value		Weighted Average Remaining Term
Outstanding at October 31, 2018		1,885		$	85.33
Granted		348		$	124.89
Exercised		(251	)	$	57.48
Forfeited or expired		(12	)	$	118.70
Outstanding at April 30, 2019		1,970		$	95.67	$	99,042	7.0 years
Vested or expected to vest at April 30, 2019		1,949		$	95.38	$	98,592	6.9 years
Exercisable at April 30, 2019		1,067		$	78.87	$	71,609	5.6 years

As of April 30, 2019, there was $13,273 of total unrecognized compensation cost related to unvested stock options.  That cost is expected to be amortized over a weighted average period of approximately 1.5 years.

The fair value of each option grant was estimated at the date of grant using the Black-Scholes option-pricing model with the following assumptions:

Six months ended	April 30, 2019	April 30, 2018
Expected volatility	24.1%-24.5%	24.0%-26.7%
Expected dividend yield	1.04%	0.97%
Risk-free interest rate	2.84%-2.95%	2.09%-2.20%
Expected life of the option (in years)	5.3-6.2	5.4-6.2

The weighted-average expected volatility used to value the 2019 and 2018 options was 24.3% and 25.0%, respectively.

Historical information was the primary basis for the selection of the expected volatility, expected dividend yield and the expected lives of the options.  The risk-free interest rate was selected based upon yields of U.S. Treasury issues with a term equal to the expected life of the option being valued.

The weighted average grant date fair value of stock options granted during the six months ended April 30, 2019 and 2018 was $31.74 and $31.42, respectively.

The total intrinsic value of options exercised during the three months ended April 30, 2019 and 2018 was $14,699 and $11,021, respectively. The total intrinsic value of options exercised during the six months ended April 30, 2019 and 2018 was $19,321 and $29,744, respectively.

Cash received from the exercise of stock options for the six months ended April 30, 2019 and 2018 was $14,454 and $15,595, respectively.

Restricted Shares and Restricted Share Units

We may grant restricted shares and/or restricted share units to our employees and directors.  These shares or units may not be transferred for a designated period of time (generally one to three years) defined at the date of grant.  

For employee recipients, in the event of termination of employment due to early retirement with the consent of the Company, restricted shares granted within 12 months prior to termination are forfeited, and other restricted shares vest on a pro-rata basis.  In the event of termination of employment due to normal retirement at age 65, restricted shares granted within 12 months prior to termination are forfeited, and, for other restricted shares, the restriction period will lapse and the shares will vest and be transferable. For restricted shares granted within 12 months prior to termination (or at any time prior to December 28, 2017), the restrictions lapse in the event of a recipient’s disability or death.  Termination for any other reason prior to the lapse of any restrictions results in forfeiture of the shares.

For non-employee directors, all restrictions lapse in the event of disability or death of the non-employee director.  Termination of service as a director for any other reason within one year of date of grant results in a pro-rata vesting of shares or units.

As shares or units are issued, deferred stock-based compensation equivalent to the fair value on the date of grant is expensed over the vesting period.  

The following table summarizes activity related to restricted shares during the six months ended April 30, 2019:

	Number of Shares			Weighted-Average Grant Date Fair Value
Restricted shares at October 31, 2018		53		$	108.82
Granted		34		$	129.44
Vested		(25	)	$	96.99
Restricted shares at April 30, 2019		62		$	124.86

As of April 30, 2019, there was $5,592 of unrecognized compensation cost related to restricted shares. The cost is expected to be amortized over a weighted average period of 1.9 years.  The amount charged to expense related to restricted shares during the three months ended April 30, 2019 and 2018 was $1,167 and $637, respectively. These amounts included common share dividends for the three months ended April 30, 2019 and 2018 of $18 and $17, respectively. For the six months ended April 30, 2019 and 2018, the amounts charged to expense related to restricted shares were $1,864 and $1,391, respectively. These amounts included common share dividends for the six months ended April 30, 2019 and 2018 of $36 and $34, respectively.     

The following table summarizes activity related to restricted share units during the six months ended April 30, 2019:

	Number of Units		Weighted-Average Grant Date Fair Value
Restricted share units at October 31, 2018		0	$	—
Granted		8	$	126.83
Restricted share units at April 30, 2019		8	$	126.83

As of April 30, 2019, there was $520 of remaining expense to be recognized related to outstanding restricted share units, which is expected to be recognized over a weighted average period of 0.5 years.  The amount charged to expense related to restricted share units during each of the three months ended April 30, 2019 and 2018 was $263 and $252, respectively. For the six months ended April 30, 2019 and 2018, the corresponding amounts were $526 and $505, respectively.  

Deferred Directors’ Compensation

Non-employee directors may defer all or part of their cash and equity-based compensation until retirement.  Cash compensation may be deferred as cash or as share equivalent units.  Deferred cash amounts are recorded as liabilities, and share equivalent units are recorded as equity.  Additional share equivalent units are earned when common share dividends are declared.

The following table summarizes activity related to director deferred compensation share equivalent units during the six months ended April 30, 2019:

	Number of Shares		Weighted-Average Grant Date Fair Value
Outstanding at October 31, 2018		107	$	51.24
Dividend equivalents		1	$	125.90
Outstanding at April 30, 2019		108	$	51.65

The amount charged to expense related to director deferred compensation for the three months ended April 30, 2019 and 2018 was $38 and $30, respectively. For the six months ended April 30, 2019 and 2018, the corresponding amounts were $75 and $61, respectively.  

Performance Share Incentive Awards

Executive officers and selected other key employees are eligible to receive common share-based incentive awards. Payouts, in the form of unrestricted common shares, vary based on the degree to which corporate financial performance exceeds predetermined threshold, target and maximum performance goals over three-year performance periods.  No payout will occur unless threshold performance is achieved.

The amount of compensation expense is based upon current performance projections for each three-year period and the percentage of the requisite service that has been rendered.  The calculations are also based upon the grant date fair value determined using the closing market price of our common shares at the grant date, reduced by the implied value of dividends not to be paid. The per share values were $120.12 for 2019, $123.45 for 2018, and $103.75 and $104.49 per share for 2017.  During the three months ended April 30, 2019 and 2018, $819 and $1,637 was charged to expense, respectively. For the six months ended April 30, 2019 and 2018, the corresponding amounts were $1,596 and $4,986, respectively. The cumulative amount recorded in shareholders’ equity at April 30, 2019 was $9,065.

Deferred Compensation

Our executive officers and other highly compensated employees may elect to defer up to 100% of their base pay and cash incentive and for executive officers, up to 90% of their share-based performance incentive payout each year.  Additional share units are credited for quarterly dividends paid on our common shares. Expense related to dividends paid under this plan for the three months ended April 30, 2019 and 2018 was $73 and $67, respectively. For the six months ended April 30, 2019 and 2018, the corresponding amounts were $145 and $134, respectively.   

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Warranties

6 Months Ended

Apr. 30, 2019

Guarantees [Abstract]

Warranties

11. Warranties

We offer warranties to our customers depending on the specific product and terms of the customer purchase agreement.  A typical warranty program requires that we repair or replace defective products within a specified time period (generally one year) from the date of delivery or first use.  We record an estimate for future warranty-related costs based on actual historical return rates.  Based on analysis of return rates and other factors, the adequacy of our warranty provisions are adjusted as necessary.  The liability for warranty costs is included in Accrued liabilities in the Consolidated Balance Sheet.  

Following is a reconciliation of the product warranty liability for the six months ended April 30, 2019 and 2018:

	April 30, 2019			April 30, 2018
Beginning balance at October 31	$	12,195		$	13,377
Accruals for warranties		4,846			5,937
Warranty payments		(5,258	)		(6,642	)
Currency effect		31			227
Ending balance	$	11,814		$	12,899

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Operating Segments

6 Months Ended

Apr. 30, 2019

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 Statements 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, 2018.

The following table presents information about our segments:

	Adhesive Dispensing Systems		Advanced Technology Systems		Industrial Coating Systems		Corporate			Total
Three months ended
April 30, 2019
Net external sales	$	236,722	$	249,295	$	65,102	$	—		$	551,119
Operating profit (loss)		71,012		56,535		14,469		(13,120	)		128,896
Three months ended
April 30, 2018
Net external sales	$	238,775	$	250,839	$	64,092	$	—		$	553,706
Operating profit (loss)(1)		70,337		58,690		12,050		(12,185	)		128,892
Six months ended
April 30, 2019
Net external sales	$	448,240	$	483,752	$	117,037	$	—		$	1,049,029
Operating profit (loss)		118,905		97,320		21,985		(25,033	)		213,177
Six months ended
April 30, 2018
Net external sales	$	459,639	$	522,540	$	121,951	$	—		$	1,104,130
Operating profit (loss)(1)		124,327		126,183		22,595		(24,863	)		248,242

^{(1) Results for the three and six months ended April 30, 2018 have been revised to reflect the retrospective adoption of Accounting Standards Update No. 2017-07, Compensation — Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Cost ("ASU 2017-07"). Refer to Note 3 for details.}

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, 2019			April 30, 2018			April 30, 2019			April 30, 2018
Total profit for reportable segments	$	128,896		$	128,892		$	213,177		$	248,242
Interest expense		(12,372	)		(12,127	)		(24,738	)		(23,445	)
Interest and investment income		325			219			642			509
Other-net		(568	)		1,135			(4,757	)		(3,669	)
Income before income taxes	$	116,281		$	118,119		$	184,324		$	221,637

We have significant sales in the following geographic regions:

	Three Months Ended				Six Months Ended
	April 30, 2019		April 30, 2018		April 30, 2019		April 30, 2018
United States	$	190,699	$	178,821	$	361,050	$	344,652
Americas		43,682		38,959		76,119		73,238
Europe		149,526		154,736		282,200		296,674
Japan		30,031		33,030		59,078		98,899
Asia Pacific		137,181		148,160		270,582		290,667
Total net external sales	$	551,119	$	553,706	$	1,049,029	$	1,104,130

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Fair Value Measurements

6 Months Ended

Apr. 30, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements

13. Fair value measurements

The inputs to the valuation techniques used to measure fair value are classified into the following categories:

Level 1: Quoted market prices in active markets for identical assets or liabilities.

Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data.

Level 3: Unobservable inputs that are not corroborated by market data.

The following tables present the classification of our assets and liabilities measured at fair value on a recurring basis:

April 30, 2019	Total		Level 1		Level 2		Level 3
Assets:
Foreign currency forward contracts (a)	$	4,824	$	—	$	4,824	$	—
Total assets at fair value	$	4,824	$	—	$	4,824	$	—
Liabilities:
Deferred compensation plans (b)	$	12,574	$	—	$	12,574	$	—
Foreign currency forward contracts (a)		4,742		—		4,742		—
Total liabilities at fair value	$	17,316	$	—	$	17,316	$	—

April 30, 2018	Total		Level 1		Level 2		Level 3
Assets:
Foreign currency forward contracts (a)	$	3,213	$	—	$	3,213	$	—
Total assets at fair value	$	3,213	$	—	$	3,213	$	—
Liabilities:
Deferred compensation plans (b)	$	11,796	$	—	$	11,796	$	—
Foreign currency forward contracts (a)		5,494		—		5,494		—
Total liabilities at fair value	$	17,290	$	—	$	17,290	$	—

(a) We enter into foreign currency forward contracts to reduce the risk of foreign currency exposures resulting from receivables, payables, intercompany receivables, intercompany payables and loans denominated in foreign currencies. Foreign exchange contracts are valued using market exchange rates. These foreign exchange contracts are not designated as hedges.

(b) Executive officers and other highly compensated employees may defer up to 100 percent of their salary and annual cash incentive compensation and for executive officers, up to 90 percent of their long-term incentive compensation, into various non-qualified deferred compensation plans. Deferrals can be allocated to various market performance measurement funds. Changes in the value of compensation deferred under these plans are recognized each period based on the fair value of the underlying measurement funds.

The carrying amounts and fair values of financial instruments, other than cash and cash equivalents, receivables, and accounts payable, are shown in the table below. The carrying values of cash and cash equivalents, receivables and accounts payable approximate fair value due to the short-term nature of these instruments.

	2019
	Carrying Amount		Fair Value
Long-term debt (including current portion)		1,374,125		1,381,087

We used the following methods and assumptions in estimating the fair value of financial instruments:

• Long-term debt is valued by discounting future cash flows at currently available rates for borrowing arrangements with similar terms and conditions, which are considered to be Level 2 inputs under the fair value hierarchy.

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Derivative Financial Instruments

6 Months Ended

Apr. 30, 2019

Investments All Other Investments [Abstract]

Derivative Financial Instruments

14. Derivative financial instruments  

We operate internationally and enter into intercompany transactions denominated in foreign currencies. Consequently, we are subject to market risk arising from exchange rate movements between the dates foreign currency transactions occur and the dates they are settled. We regularly use foreign currency forward contracts to reduce our risks related to most of these transactions. These contracts usually have maturities of 90 days or less and generally require us to exchange foreign currencies for U.S. dollars at maturity, at rates stated in the contracts. These contracts are not designated as hedging instruments under U.S. GAAP. Accordingly, the changes in the fair value of the foreign currency forward contracts are recognized in each accounting period in “Other – net” on the Consolidated Statements of Income together with the transaction gain or loss from the related balance sheet position. For the three months ended April 30, 2019, we recognized net losses of $1,236 on foreign currency forward contracts and net gains of $1,863 from the change in fair value of balance sheet positions. For the three months ended April 30, 2018, we recognized losses of $1,607 on foreign currency forward contracts and gains of $2,584 from the change in fair value of balance sheet positions. For the six months ended April 30, 2019, we recognized losses of $206 on foreign currency forward contracts and losses of $140 from the change in fair value of balance sheet positions. For the six months ended April 30, 2018, we recognized losses of $2,571 on foreign currency forward contracts and gains of $1,602 from the change in fair value of balance sheet positions.

The following table summarizes, by currency, the foreign currency forward contracts outstanding at April 30, 2019 and 2018:

	Notional Amounts
April 30, 2019 contract amounts:	Sell		Buy
Euro	$	401,545	$	279,131
British pound		21,012		44,879
Japanese yen		28,504		46,226
Australian dollar		180		7,771
Hong Kong dollar		1,209		128,710
Singapore dollar		794		15,356
Others		3,128		60,540
Total	$	456,372	$	582,613
	Notional Amounts
April 30, 2018 contract amounts:	Sell		Buy
Euro	$	152,436	$	82,687
British pound		43,914		58,981
Japanese yen		32,610		35,260
Australian dollar		194		8,137
Hong Kong dollar		2,170		110,723
Singapore dollar		616		13,143
Others		4,398		52,468
Total	$	236,338	$	361,399

We are exposed to credit-related losses in the event of nonperformance by counterparties to financial instruments. These financial instruments include cash deposits and foreign currency forward contracts. We periodically monitor the credit ratings of these counterparties in order to minimize our exposure. Our customers represent a wide variety of industries and geographic regions. For the six months ended April 30, 2019 and 2018, there were no significant concentrations of credit risk.

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Long-Term Debt

6 Months Ended

Apr. 30, 2019

Debt Disclosure [Abstract]

Long-Term Debt

15. Long-term debt

A summary of long-term debt is as follows:

	April 30, 2019		October 31, 2018
Revolving credit agreement, due 2024	$	—	$	52,200
Senior notes, due 2019-2025		156,700		156,700
Senior notes, due 2019-2027		100,000		100,000
Senior notes, due 2023-2030		350,000		350,000
Term loan, due 2020-2024		605,000		605,000
Euro loan, due 2021		128,967		16,967
Private shelf facility, due 2020		36,111		36,111
Development loans, due 2019-2026		1,019		1,086
		1,377,797		1,318,064
Less current maturities		153,734		28,734
Less unamortized debt issuance costs		3,672		3,973
Long-term maturities	$	1,220,391	$	1,285,357

In April 2019, we amended and restated and extended the term of our existing $605,000 term loan facility with a group of banks. The Term Loan Agreement provides for the following term loans in three tranches: $100,000 due in March 2020, $200,000 due in September 2022, and $305,000 due in March 2024.   The weighted average interest rate for borrowings under this agreement was 3.57% at April 30, 2019. We were in compliance with all covenants at April 30, 2019.

In April 2019, we entered into a $850,000 unsecured, multicurrency credit facility with a group of banks, which amended and restated and extended our existing syndicated revolving credit agreement that was scheduled to expire in February 2020. This facility has a five-year term and includes a $75,000 subfacility for swing-line loans.  It expires in April 2024. At April 30, 2019, we had no balances outstanding under this facility, compared to $52,200 outstanding at October 31, 2018. We were in compliance with all covenants at April 30, 2019, and the amount we could borrow under the facility would not have been limited by any debt covenants.

In October 2018, we entered into a €150,000 agreement with Bank of America Merrill Lynch International Limited.  The interest rate is variable based on the EUR LIBOR rate.  The weighted average interest rate at April 30, 2019 was 0.88 %.  At April 30, 2019, the balance outstanding was €115,000 $(128,967).  We were in compliance with all covenants at April 30, 2019.

In June 2018, we entered into a Note Purchase Agreement with a group of insurance companies under which we sold $350,000 of Senior Notes to the insurance companies and their affiliates. The notes start to mature in June 2023 and mature through June 2030 and bear interest at fixed rates between 3.71% and 4.17%.   We used the proceeds from the sale of the notes to repay approximately $315,000 of the outstanding balance under our existing syndicated revolving credit facility at that time, and the reminder for general corporate purposes.  We were in compliance with all covenants at April 30, 2019.

We entered into a $150,000 three-year Note Purchase and Private Shelf agreement with New York Life Investment Management LLC in 2011.  In 2015, the amount of the facility was increased to $180,000, and in 2016 it was increased to $200,000. Notes issued under the agreement may have a maturity of up to 12 years, with an average life of up to 10 years, and are unsecured. At April 30, 2019 and October 31, 2018, there was $36,111 outstanding under this facility. Existing notes mature between January 2020 and September 2020.  The interest rate on each borrowing is fixed based on the market rate at the borrowing date or is variable based upon the LIBOR rate.  At April 30, 2019, the amount outstanding under this facility bears interest at fixed rates between 2.21% and 2.56%.  This agreement contains customary events of default and covenants related to limitations on indebtedness and the maintenance of certain financial ratios.  We were in compliance with all covenants at April 30, 2019, and the amount we could borrow would not have been limited by any debt covenants. 

In 2012, we entered into a Note Purchase Agreement with a group of insurance companies under which we sold $200,000 of Senior Notes.  At April 30, 2019 and October 31, 2018, $156,700 was outstanding under this agreement. Existing notes mature between July 2019 and July 2025 and bear interest at fixed rates between 2.62% and 3.13%.  We were in compliance with all covenants at April 30, 2019.

In July 2015, we entered into a Note Purchase Agreement under which $100,000 of Senior Unsecured Notes were purchased primarily by a group of insurance companies.  The notes start to mature in July 2019 and mature through July 2027 and bear interest at fixed rates of 2.89% and 3.19%.  We were in compliance with all covenants at April 30, 2019.  

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Significant Accounting Policies (Policies)

6 Months Ended

Apr. 30, 2019

Accounting Policies [Abstract]

Basis of Presentation

Basis of presentation.  The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X.  Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.  In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.  Operating results for the three and six months ended April 30, 2019 are not necessarily indicative of the results that may be expected for the full year.  For further information, refer to the consolidated financial statements and footnotes included in our Annual Report on Form 10-K for the year ended October 31, 2018. Certain reclassifications have been made to the prior year financial statements to conform to current year classifications.

Basis of Consolidation

Basis of consolidation.  The consolidated financial statements include the accounts of Nordson Corporation and its majority-owned and controlled subsidiaries.  Investments in affiliates and joint ventures in which our ownership is 50% or less or in which we do not have control but have the ability to exercise significant influence, are accounted for under the equity method.  All significant intercompany accounts and transactions have been eliminated in consolidation.  

Use of Estimates

Use of estimates.  The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements.  Actual amounts could differ from these estimates.

Earnings Per Share

Earnings per share.  Basic earnings per share are computed based on the weighted-average number of common shares outstanding during each year, while diluted earnings per share are based on the weighted-average number of common shares and common share equivalents outstanding.  Common share equivalents consist of shares issuable upon exercise of stock options computed using the treasury stock method, as well as restricted shares and deferred stock-based compensation.  Options with an exercise price higher than the average market price are excluded from the calculation of diluted earnings per share because the effect would be anti-dilutive.  No options were excluded from the calculation of diluted earnings per share for the three months ended April 30, 2019. Options excluded from the calculation of diluted earnings per share for the six months ended April 30, 2019 were 352. No options were excluded from the calculation of diluted earnings per share for the three and six months ended April 30, 2018.

Revenue Recognition

Revenue recognition

Adoption of new accounting standard:

On November 1, 2018, we adopted ASU 2014-09 (“Topic 606”) using the modified retrospective method applied to those contracts which were not completed as of November 1, 2018. Results for reporting periods beginning after November 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting. The cumulative impact of adopting Topic 606 as of November 1, 2018 did not have a material impact to the Consolidated Financial Statements. The Company does not expect the impact of the adoption of Topic 606 to be material to the Consolidated Financial Statements on an ongoing basis.

Accounting policy:

A contract exists when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of the consideration is probable.  Revenue is recognized when performance obligations under the terms of the contract with a customer are satisfied.  Generally, our revenue results from short-term, fixed-price contracts and continues to primarily be recognized as of a point in time when the product is shipped or at a later point when the control of the product transfers to the customer. Revenue for undelivered items is deferred and included within Accrued liabilities in our Consolidated Balance Sheets. Revenues deferred in 2019 and 2018 were not material.

However, for certain contracts related to the sale of customer-specific product within our Advanced Technology Systems segment, there was a change in revenue recognition upon adoption of the new revenue standard. Previously, these contracts were recognized at the point in time when the shipping terms were satisfied.  Under the new revenue standard, we now recognize revenue for these contracts over time as we satisfy performance obligations because of the continuous transfer of control to the customer. The continuous transfer of control to the customer occurs as we enhance assets that are customer controlled and we are contractually entitled to payment for work performed to date plus a reasonable margin.  

As control transfers over time for these products or services, revenue is recognized based on progress toward completion of the performance obligations.  The selection method to measure progress towards completion requires judgment and is based on the nature of the products or services to be provided.  We have elected to use the input method – costs incurred for these contracts because it best depicts the transfer of products or services to the customer based on incurring costs on the contract.  Under this method, revenues are recorded proportionally as costs are incurred.  Contract assets recognized are recorded in Prepaid expenses and other current assets and contract liabilities are recorded in Accrued liabilities in our Consolidated Balance Sheets and were not material at April 30, 2019.  Revenue recognized over time is not material to our overall Consolidated Financial Statements.

Revenue is measured as the amount of consideration we expect to receive in exchange for transferring products or services.  Sales, value add, and other taxes we collect concurrently with revenue-producing activities are excluded from revenue.  As a practical expedient, we may exclude the assessment of whether goods or services are performance obligations, if they are immaterial in the context of the contract, and combine these with other performance obligations.  While payment terms and conditions vary by contract type, we have determined that our contracts generally do not include a significant financing component.  We have elected to apply the practical expedient to treat all shipping and handling costs as fulfillment costs as a significant portion of these costs are incurred prior to transfer of control to the customer.  We have also elected to apply the practical expedient to expense sales commissions as they are incurred as the amortization period resulting from capitalizing the costs is one year or less. These costs are recorded within Selling, general and administrative expenses in our Consolidated Statements of Income.

We offer assurance type warranties on our products as well as separately sold warranty contracts.  Revenue related to warranty contracts that are sold separately is recognized over the life of the warranty term. See Note 11 for details on our warranties.

Certain arrangements may include installation, installation supervision, training, and spare parts, which tend to be completed in a short period of time, at an insignificant cost, and utilizing skills not unique to us, therefore, are typically regarded as inconsequential or not material.

We disclose disaggregated revenues by operating segment and geography in accordance with the revenue standard and on the same basis used internally by the chief operating decision maker for evaluating performance of operating segments and for allocating resources.  See Note 12 for details on our operating segments.    

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Inventories (Tables)

6 Months Ended

Apr. 30, 2019

Inventory Disclosure [Abstract]

Schedule of Inventories

At April 30, 2019 and October 31, 2018, inventories consisted of the following:

	April 30, 2019			October 31, 2018
Raw materials and component parts	$	102,361		$	112,823
Work-in-process		45,430			47,126
Finished goods		180,394			148,618
		328,185			308,567
Obsolescence and other reserves		(40,984	)		(37,545	)
LIFO reserve		(6,468	)		(6,545	)
	$	280,733		$	264,477

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Goodwill and Other Intangible Assets (Tables)

6 Months Ended

Apr. 30, 2019

Goodwill And Intangible Assets Disclosure [Abstract]

Summary of Changes in Carrying Amount of Goodwill

Changes in the carrying amount of goodwill for the six months ended April 30, 2019 by operating segment are as follows:

	Adhesive Dispensing Systems			Advanced Technology Systems			Industrial Coating Systems		Total
Balance at October 31, 2018	$	388,991		$	1,194,969		$	24,058	$	1,608,018
Acquisitions		—			926			—		926
Currency effect		(937	)		(498	)		—		(1,435	)
Balance at April 30, 2019	$	388,054		$	1,195,397		$	24,058	$	1,607,509

Summary of Intangible Assets Subject to Amortization

Information regarding our intangible assets subject to amortization is as follows:

	April 30, 2019
	Carrying Amount		Accumulated Amortization		Net Book Value
Customer relationships	$	479,391	$	155,876	$	323,515
Patent/technology costs		153,942		65,845		88,097
Trade name		96,274		38,039		58,235
Non-compete agreements		11,512		10,156		1,356
Other		1,394		1,390		4
Total	$	742,513	$	271,306	$	471,207
	October 31, 2018
	Carrying Amount		Accumulated Amortization		Net Book Value
Customer relationships	$	480,404	$	137,640	$	342,764
Patent/technology costs		153,602		59,845		93,757
Trade name		96,433		34,768		61,665
Non-compete agreements		11,469		9,919		1,550
Other		1,386		1,381		5
Total	$	743,294	$	243,553	$	499,741

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Pension and Other Postretirement Plans (Tables)

6 Months Ended

Apr. 30, 2019

Pension Cost [Member]

Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]

Components of Net Periodic Benefits Cost

The components of net periodic pension cost for the three and six months ended April 30, 2019 and 2018 were:

	U.S.						International
Three Months Ended	2019			2018			2019			2018
Service cost	$	3,577		$	2,944		$	486		$	528
Interest cost		4,492			3,768			424			424
Expected return on plan assets		(5,794	)		(5,489	)		(407	)		(393	)
Amortization of prior service credit		(15	)		(3	)		(76	)		(83	)
Amortization of net actuarial loss		1,544			2,550			428			548
Total benefit cost	$	3,804		$	3,770		$	855		$	1,024
	U.S.						International
Six Months Ended	2019			2018			2019			2018
Service cost	$	7,155		$	6,626		$	970		$	1,027
Interest cost		8,989			7,408			846			844
Expected return on plan assets		(11,597	)		(10,981	)		(807	)		(773	)
Amortization of prior service cost (credit)		(30	)		(11	)		(152	)		(162	)
Amortization of net actuarial loss		3,088			4,706			855			1,077
Total benefit cost	$	7,605		$	7,748		$	1,712		$	2,013

Postretirement Benefit Costs [Member]

Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]

Components of Net Periodic Benefits Cost

The components of other postretirement benefit cost for the three and six months ended April 30, 2019 and 2018 were:

	U.S.						International
Three Months Ended	2019			2018			2019			2018
Service cost	$	165		$	144		$	6		$	5
Interest cost		749			658			6			5
Amortization of prior service credit		(6	)		(25	)		—			—
Amortization of net actuarial (gain) loss		152			296			(9	)		(5	)
Total benefit cost	$	1,060		$	1,073		$	3		$	5
	U.S.						International
Six Months Ended	2019			2018			2019			2018
Service cost	$	331		$	356		$	9		$	10
Interest cost		1,497			1,295			11			10
Amortization of prior service credit		(13	)		(50	)		—			—
Amortization of net actuarial (gain) loss		304			545			(16	)		(10	)
Total benefit cost	$	2,119		$	2,146		$	4		$	10

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Accumulated Other Comprehensive Loss (Tables)

6 Months Ended

Apr. 30, 2019

Equity [Abstract]

Summary of Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss, including adjustments for items that are reclassified from accumulated other comprehensive loss to net income, are shown below.

	Cumulative			Pension and			Accumulated
	translation			postretirement benefit			other comprehensive
	adjustments			plan adjustments			loss
Balance at October 31, 2018	$	(57,042	)	$	(122,272	)	$	(179,314	)
Amortization of prior service costs and net    actuarial losses, net of tax of $(912)		—			2,950			2,950
Foreign currency translation adjustments		7,399			—			7,399
Balance at April 30, 2019	$	(49,643	)	$	(119,322	)	$	(168,965	)

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Stock-Based Compensation (Tables)

6 Months Ended

Apr. 30, 2019

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Summarized Activity Related to Stock Options

The following table summarizes activity related to stock options for the six months ended April 30, 2019:

	Number of Options			Weighted-Average Exercise Price Per Share		Aggregate Intrinsic Value		Weighted Average Remaining Term
Outstanding at October 31, 2018		1,885		$	85.33
Granted		348		$	124.89
Exercised		(251	)	$	57.48
Forfeited or expired		(12	)	$	118.70
Outstanding at April 30, 2019		1,970		$	95.67	$	99,042	7.0 years
Vested or expected to vest at April 30, 2019		1,949		$	95.38	$	98,592	6.9 years
Exercisable at April 30, 2019		1,067		$	78.87	$	71,609	5.6 years

Fair Value Assumptions of Stock Options

The fair value of each option grant was estimated at the date of grant using the Black-Scholes option-pricing model with the following assumptions:

Six months ended	April 30, 2019	April 30, 2018
Expected volatility	24.1%-24.5%	24.0%-26.7%
Expected dividend yield	1.04%	0.97%
Risk-free interest rate	2.84%-2.95%	2.09%-2.20%
Expected life of the option (in years)	5.3-6.2	5.4-6.2

Summarized Activity Related to Restricted Stock

The following table summarizes activity related to restricted shares during the six months ended April 30, 2019:

	Number of Shares			Weighted-Average Grant Date Fair Value
Restricted shares at October 31, 2018		53		$	108.82
Granted		34		$	129.44
Vested		(25	)	$	96.99
Restricted shares at April 30, 2019		62		$	124.86

Summarized Activity Related to Restricted Stock Units

The following table summarizes activity related to restricted share units during the six months ended April 30, 2019:

	Number of Units		Weighted-Average Grant Date Fair Value
Restricted share units at October 31, 2018		0	$	—
Granted		8	$	126.83
Restricted share units at April 30, 2019		8	$	126.83

Summarized Activity Related to Director Deferred Compensation Shares

The following table summarizes activity related to director deferred compensation share equivalent units during the six months ended April 30, 2019:

	Number of Shares		Weighted-Average Grant Date Fair Value
Outstanding at October 31, 2018		107	$	51.24
Dividend equivalents		1	$	125.90
Outstanding at April 30, 2019		108	$	51.65

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Warranties (Tables)

6 Months Ended

Apr. 30, 2019

Guarantees [Abstract]

Reconciliation of Product Warranty Liability

Following is a reconciliation of the product warranty liability for the six months ended April 30, 2019 and 2018:

	April 30, 2019			April 30, 2018
Beginning balance at October 31	$	12,195		$	13,377
Accruals for warranties		4,846			5,937
Warranty payments		(5,258	)		(6,642	)
Currency effect		31			227
Ending balance	$	11,814		$	12,899

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Operating Segments (Tables)

6 Months Ended

Apr. 30, 2019

Segment Reporting [Abstract]

Segments

The following table presents information about our segments:

	Adhesive Dispensing Systems		Advanced Technology Systems		Industrial Coating Systems		Corporate			Total
Three months ended
April 30, 2019
Net external sales	$	236,722	$	249,295	$	65,102	$	—		$	551,119
Operating profit (loss)		71,012		56,535		14,469		(13,120	)		128,896
Three months ended
April 30, 2018
Net external sales	$	238,775	$	250,839	$	64,092	$	—		$	553,706
Operating profit (loss)(1)		70,337		58,690		12,050		(12,185	)		128,892
Six months ended
April 30, 2019
Net external sales	$	448,240	$	483,752	$	117,037	$	—		$	1,049,029
Operating profit (loss)		118,905		97,320		21,985		(25,033	)		213,177
Six months ended
April 30, 2018
Net external sales	$	459,639	$	522,540	$	121,951	$	—		$	1,104,130
Operating profit (loss)(1)		124,327		126,183		22,595		(24,863	)		248,242

^{(1) Results for the three and six months ended April 30, 2018 have been revised to reflect the retrospective adoption of Accounting Standards Update No. 2017-07, Compensation — Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Cost ("ASU 2017-07"). Refer to Note 3 for details.}

Reconciliation of Segment Operating Income to Consolidated Income Before Income Taxes

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, 2019			April 30, 2018			April 30, 2019			April 30, 2018
Total profit for reportable segments	$	128,896		$	128,892		$	213,177		$	248,242
Interest expense		(12,372	)		(12,127	)		(24,738	)		(23,445	)
Interest and investment income		325			219			642			509
Other-net		(568	)		1,135			(4,757	)		(3,669	)
Income before income taxes	$	116,281		$	118,119		$	184,324		$	221,637

Sales and Long-lived Asset Information by Geographic Regions

We have significant sales in the following geographic regions:

	Three Months Ended				Six Months Ended
	April 30, 2019		April 30, 2018		April 30, 2019		April 30, 2018
United States	$	190,699	$	178,821	$	361,050	$	344,652
Americas		43,682		38,959		76,119		73,238
Europe		149,526		154,736		282,200		296,674
Japan		30,031		33,030		59,078		98,899
Asia Pacific		137,181		148,160		270,582		290,667
Total net external sales	$	551,119	$	553,706	$	1,049,029	$	1,104,130

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Fair Value Measurements (Tables)

6 Months Ended

Apr. 30, 2019

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

The following tables present the classification of our assets and liabilities measured at fair value on a recurring basis:

April 30, 2019	Total		Level 1		Level 2		Level 3
Assets:
Foreign currency forward contracts (a)	$	4,824	$	—	$	4,824	$	—
Total assets at fair value	$	4,824	$	—	$	4,824	$	—
Liabilities:
Deferred compensation plans (b)	$	12,574	$	—	$	12,574	$	—
Foreign currency forward contracts (a)		4,742		—		4,742		—
Total liabilities at fair value	$	17,316	$	—	$	17,316	$	—

April 30, 2018	Total		Level 1		Level 2		Level 3
Assets:
Foreign currency forward contracts (a)	$	3,213	$	—	$	3,213	$	—
Total assets at fair value	$	3,213	$	—	$	3,213	$	—
Liabilities:
Deferred compensation plans (b)	$	11,796	$	—	$	11,796	$	—
Foreign currency forward contracts (a)		5,494		—		5,494		—
Total liabilities at fair value	$	17,290	$	—	$	17,290	$	—

(a) We enter into foreign currency forward contracts to reduce the risk of foreign currency exposures resulting from receivables, payables, intercompany receivables, intercompany payables and loans denominated in foreign currencies. Foreign exchange contracts are valued using market exchange rates. These foreign exchange contracts are not designated as hedges.

(b) Executive officers and other highly compensated employees may defer up to 100 percent of their salary and annual cash incentive compensation and for executive officers, up to 90 percent of their long-term incentive compensation, into various non-qualified deferred compensation plans. Deferrals can be allocated to various market performance measurement funds. Changes in the value of compensation deferred under these plans are recognized each period based on the fair value of the underlying measurement funds.

Carrying Amounts and Fair Values of Financial Instruments, Other than Cash and Cash Equivalents, Receivables and Accounts Payable

The carrying values of cash and cash equivalents, receivables and accounts payable approximate fair value due to the short-term nature of these instruments.

	2019
	Carrying Amount		Fair Value
Long-term debt (including current portion)		1,374,125		1,381,087

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Derivative Financial Instruments (Tables)

6 Months Ended

Apr. 30, 2019

Investments All Other Investments [Abstract]

Outstanding Currency, Forward Exchange Contracts

The following table summarizes, by currency, the foreign currency forward contracts outstanding at April 30, 2019 and 2018:

	Notional Amounts
April 30, 2019 contract amounts:	Sell		Buy
Euro	$	401,545	$	279,131
British pound		21,012		44,879
Japanese yen		28,504		46,226
Australian dollar		180		7,771
Hong Kong dollar		1,209		128,710
Singapore dollar		794		15,356
Others		3,128		60,540
Total	$	456,372	$	582,613
	Notional Amounts
April 30, 2018 contract amounts:	Sell		Buy
Euro	$	152,436	$	82,687
British pound		43,914		58,981
Japanese yen		32,610		35,260
Australian dollar		194		8,137
Hong Kong dollar		2,170		110,723
Singapore dollar		616		13,143
Others		4,398		52,468
Total	$	236,338	$	361,399

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Long-Term Debt (Tables)

6 Months Ended

Apr. 30, 2019

Debt Disclosure [Abstract]

Long-Term Debt

A summary of long-term debt is as follows:

	April 30, 2019		October 31, 2018
Revolving credit agreement, due 2024	$	—	$	52,200
Senior notes, due 2019-2025		156,700		156,700
Senior notes, due 2019-2027		100,000		100,000
Senior notes, due 2023-2030		350,000		350,000
Term loan, due 2020-2024		605,000		605,000
Euro loan, due 2021		128,967		16,967
Private shelf facility, due 2020		36,111		36,111
Development loans, due 2019-2026		1,019		1,086
		1,377,797		1,318,064
Less current maturities		153,734		28,734
Less unamortized debt issuance costs		3,672		3,973
Long-term maturities	$	1,220,391	$	1,285,357

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Significant Accounting Policies - Additional Information (Detail) - shares	3 Months Ended		6 Months Ended
	Apr. 30, 2019	Apr. 30, 2018	Apr. 30, 2019	Apr. 30, 2018
Significant Accounting Policies [Line Items]
Ownership percentage in affiliates and joint ventures	50.00%		50.00%
Stock Options [Member]
Significant Accounting Policies [Line Items]
Options for common shares excluded from computation of diluted earning per share	0	0	352,000	0

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Recently Issued Accounting Standards - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Apr. 30, 2018	Apr. 30, 2018	Aug. 31, 2018
New Accounting Guidance Issued and Not Yet Adopted [Member]
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Defined benefit plan effect of percentage change in assumed health care cost trend rates			1.00%
Other Expense [Member] | Accounting Standards Update 2017-07 [Member]
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Reclassification due to change in accounting principles	$ 2,187	$ 3,814
Cost of Goods Sold [Member] | Accounting Standards Update 2017-07 [Member]
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Reclassification due to change in accounting principles	(187)	(157)
Selling, General and Administrative Expenses [Member] | Accounting Standards Update 2017-07 [Member]
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Reclassification due to change in accounting principles	$ (2,000)	$ (3,657)

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Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands			6 Months Ended
	Oct. 17, 2018	Jan. 02, 2018	Apr. 30, 2019	Apr. 30, 2018	Oct. 31, 2018
Business Acquisition [Line Items]
Acquisition of businesses, net of cash acquired			$ 69	$ 44,176
Goodwill			$ 1,607,509		$ 1,608,018
Cladach Nua Teoranta [Member] | 2018 Acquisition [Member]
Business Acquisition [Line Items]
Acquired percent of the outstanding shares	100.00%
Acquisition of businesses, net of cash acquired	$ 5,236
Acquisition of business, earn-out liability	1,131
Goodwill	3,776
Identifiable intangible assets	697
Cladach Nua Teoranta [Member] | Customer Relationships [Member] | 2018 Acquisition [Member]
Business Acquisition [Line Items]
Identifiable intangible assets	$ 58
Intangible assets amortization period	6 years
Cladach Nua Teoranta [Member] | Trade Names [Member] | 2018 Acquisition [Member]
Business Acquisition [Line Items]
Identifiable intangible assets	$ 70
Intangible assets amortization period	9 years
Cladach Nua Teoranta [Member] | Technology-Based Intangible Assets [Member] | 2018 Acquisition [Member]
Business Acquisition [Line Items]
Identifiable intangible assets	$ 499
Intangible assets amortization period	7 years
Cladach Nua Teoranta [Member] | Non-compete Agreements [Member] | 2018 Acquisition [Member]
Business Acquisition [Line Items]
Identifiable intangible assets	$ 70
Intangible assets amortization period	3 years
Sonoscan, Inc. [Member] | 2018 Acquisition [Member]
Business Acquisition [Line Items]
Acquired percent of the outstanding shares		100.00%
Acquisition of businesses, net of cash acquired		$ 46,018
Goodwill		22,775
Identifiable intangible assets		7,910
Cash acquired from business acquisition		655
Sonoscan, Inc. [Member] | Customer Relationships [Member] | 2018 Acquisition [Member]
Business Acquisition [Line Items]
Identifiable intangible assets		$ 1,700
Intangible assets amortization period		7 years
Sonoscan, Inc. [Member] | Trade Names [Member] | 2018 Acquisition [Member]
Business Acquisition [Line Items]
Identifiable intangible assets		$ 3,300
Intangible assets amortization period		11 years
Sonoscan, Inc. [Member] | Technology-Based Intangible Assets [Member] | 2018 Acquisition [Member]
Business Acquisition [Line Items]
Identifiable intangible assets		$ 2,500
Intangible assets amortization period		7 years
Sonoscan, Inc. [Member] | Non-compete Agreements [Member] | 2018 Acquisition [Member]
Business Acquisition [Line Items]
Identifiable intangible assets		$ 410
Intangible assets amortization period		5 years

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Inventories - Schedule of Inventories (Detail) - USD ($) $ in Thousands	Apr. 30, 2019	Oct. 31, 2018
Inventory Disclosure [Abstract]
Raw materials and component parts	$ 102,361	$ 112,823
Work-in-process	45,430	47,126
Finished goods	180,394	148,618
Inventories - gross	328,185	308,567
Obsolescence and other reserves	(40,984)	(37,545)
LIFO reserve	(6,468)	(6,545)
Inventories - net	$ 280,733	$ 264,477

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Goodwill and Other Intangible Assets - Summary of Changes in Carrying Amount of Goodwill (Detail) $ in Thousands	6 Months Ended
	Apr. 30, 2019 USD ($)
Goodwill [Line Items]
Beginning balance	$ 1,608,018
Acquisitions	926
Currency effect	(1,435)
Ending balance	1,607,509
Adhesive Dispensing Systems [Member]
Goodwill [Line Items]
Beginning balance	388,991
Currency effect	(937)
Ending balance	388,054
Advanced Technology Systems [Member]
Goodwill [Line Items]
Beginning balance	1,194,969
Acquisitions	926
Currency effect	(498)
Ending balance	1,195,397
Industrial Coating Systems [Member]
Goodwill [Line Items]
Beginning balance	24,058
Ending balance	$ 24,058

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Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2019	Apr. 30, 2018	Apr. 30, 2019	Apr. 30, 2018	Oct. 31, 2018
Goodwill [Line Items]
Goodwill accumulated impairment loss	$ 232,789		$ 232,789		$ 232,789
Intangible assets, amortization expense	14,133	$ 14,172	27,762	$ 28,061
Advanced Technology Systems [Member]
Goodwill [Line Items]
Goodwill accumulated impairment loss	229,173		229,173		229,173
Industrial Coating Systems [Member]
Goodwill [Line Items]
Goodwill accumulated impairment loss	$ 3,616		$ 3,616		$ 3,616

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Goodwill and Other Intangible Assets - Summary of Intangible Assets Subject to Amortization (Detail) - USD ($) $ in Thousands	Apr. 30, 2019	Oct. 31, 2018
Finite Lived Intangible Assets [Line Items]
Carrying Amount	$ 742,513	$ 743,294
Accumulated Amortization	271,306	243,553
Net Book Value	471,207	499,741
Customer Relationships [Member]
Finite Lived Intangible Assets [Line Items]
Carrying Amount	479,391	480,404
Accumulated Amortization	155,876	137,640
Net Book Value	323,515	342,764
Patent/Technology Costs [Member]
Finite Lived Intangible Assets [Line Items]
Carrying Amount	153,942	153,602
Accumulated Amortization	65,845	59,845
Net Book Value	88,097	93,757
Trade Names [Member]
Finite Lived Intangible Assets [Line Items]
Carrying Amount	96,274	96,433
Accumulated Amortization	38,039	34,768
Net Book Value	58,235	61,665
Non-compete Agreements [Member]
Finite Lived Intangible Assets [Line Items]
Carrying Amount	11,512	11,469
Accumulated Amortization	10,156	9,919
Net Book Value	1,356	1,550
Other [Member]
Finite Lived Intangible Assets [Line Items]
Carrying Amount	1,394	1,386
Accumulated Amortization	1,390	1,381
Net Book Value	$ 4	$ 5

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Pension and Other Postretirement Plans - Net Periodic Benefit Cost (Detail) - Pension Plans [Member] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2019	Apr. 30, 2018	Apr. 30, 2019	Apr. 30, 2018
United States [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 3,577	$ 2,944	$ 7,155	$ 6,626
Interest cost	4,492	3,768	8,989	7,408
Expected return on plan assets	(5,794)	(5,489)	(11,597)	(10,981)
Amortization of prior service credit	(15)	(3)	(30)	(11)
Amortization of net actuarial loss	1,544	2,550	3,088	4,706
Total benefit cost	3,804	3,770	7,605	7,748
International [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	486	528	970	1,027
Interest cost	424	424	846	844
Expected return on plan assets	(407)	(393)	(807)	(773)
Amortization of prior service credit	(76)	(83)	(152)	(162)
Amortization of net actuarial loss	428	548	855	1,077
Total benefit cost	$ 855	$ 1,024	$ 1,712	$ 2,013

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Pension and Other Postretirement Plans - Other Postretirement Benefit Cost (Detail) - Postretirement Benefit Costs [Member] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2019	Apr. 30, 2018	Apr. 30, 2019	Apr. 30, 2018
United States [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 165	$ 144	$ 331	$ 356
Interest cost	749	658	1,497	1,295
Amortization of prior service credit	(6)	(25)	(13)	(50)
Amortization of net actuarial (gain) loss	152	296	304	545
Total benefit cost	1,060	1,073	2,119	2,146
International [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	6	5	9	10
Interest cost	6	5	11	10
Amortization of net actuarial (gain) loss	(9)	(5)	(16)	(10)
Total benefit cost	$ 3	$ 5	$ 4	$ 10

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Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	2 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	Dec. 31, 2017	Apr. 30, 2019	Apr. 30, 2018	Apr. 30, 2019	Apr. 30, 2018	Oct. 31, 2018
Income Tax [Line Items]
Effective tax rates		20.90%	22.80%	23.90%	11.70%
U.S. federal corporate income tax rate	35.00%			21.00%		23.30%
Provisional discrete tax (benefit) expense				$ 4,866	$ (22,089)
Discrete tax benefit		$ 2,149	$ 2,202	$ 3,017	$ 6,950
Maximum [Member]
Income Tax [Line Items]
Measurement period				1 year

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Accumulated Other Comprehensive Loss - Summary of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Apr. 30, 2019	Jan. 31, 2019	Apr. 30, 2018	Jan. 31, 2018	Apr. 30, 2019	Apr. 30, 2018
Accumulated Other Comprehensive Income Loss [Line Items]
Accumulated other comprehensive income (loss), Beginning balance		$ (179,314)			$ (179,314)
Amortization of prior service cost and net actuarial losses, net of tax	$ 1,598		$ 2,812		2,950	$ 4,321
Foreign currency translation adjustments	(9,064)	16,463	$ (19,284)	$ 38,582	7,399	$ 19,298
Accumulated other comprehensive loss, Ending balance	(168,965)				(168,965)
Cumulative Translation Adjustments [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Accumulated other comprehensive income (loss), Beginning balance		(57,042)			(57,042)
Foreign currency translation adjustments					7,399
Accumulated other comprehensive loss, Ending balance	(49,643)				(49,643)
Pension And Postretirement Benefit Plan Adjustments [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Accumulated other comprehensive income (loss), Beginning balance		$ (122,272)			(122,272)
Amortization of prior service cost and net actuarial losses, net of tax					2,950
Accumulated other comprehensive loss, Ending balance	$ (119,322)				$ (119,322)

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Accumulated Other Comprehensive Loss - Summary of Accumulated Other Comprehensive Loss (Parenthetical) (Detail) $ in Thousands	6 Months Ended
	Apr. 30, 2019 USD ($)
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract]
Amortization of prior service costs and net actuarial losses, tax	$ 912

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Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2019	Apr. 30, 2018	Apr. 30, 2019	Apr. 30, 2018	Apr. 30, 2017
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Maximum number of common shares available for grant	4,525		4,525
Executive officers and other highly compensated employees salary and annual cash incentive compensation deferrals percentage, maximum			100.00%
Executive officers share-based long-term incentive compensation deferrals percentage, maximum			90.00%
Directors [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expense related to director deferred compensation	$ 38	$ 30	$ 75	$ 61
Stock Options [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Maximum rate of stock option, description			Not exceeding 25 percent per year
Option expiring period			10 years
Compensation expense recognized	2,527	2,454	$ 5,058	$ 5,071
Options exercisable beginning period			1 year
Normal retirement age			65 years
Period for options considered to be forfeited for retirees			12 months
Termination period on death or disability of option holder			12 months
Options grants in period vesting period			Dec. 28, 2017
Unrecognized compensation cost related to unvested stock option	13,273		$ 13,273
Weighted average period expected to be amortized, non vested shares			1 year 6 months
Weighted-average expected volatility used			24.30%	25.00%
Weighted average grant date fair value of stock options granted			$ 31.74	$ 31.42
Total intrinsic value of options exercised	14,699	11,021	$ 19,321	$ 29,744
Cash received from the exercise of stock options			$ 14,454	15,595
Stock Options [Member] | Maximum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Maximum rate of stock option			25.00%
Restricted Shares and Restricted Share Units [Member] | Maximum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Grant restricted shares transferred period			3 years
Restricted Shares and Restricted Share Units [Member] | Minimum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Grant restricted shares transferred period			1 year
Restricted Stock [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Normal retirement age			65 years
Weighted average period expected to be amortized, non vested shares			1 year 10 months 24 days
Period for restricted shares and share units considered to be forfeited for retirees			12 months
Restricted shares termination period for disability or death			12 months
Restriction period for restricted shares granted			Dec. 28, 2017
Unrecognized compensation cost related to nonvested restricted stock	5,592		$ 5,592
Expense related to nonvested common shares	1,167	637	1,864	1,391
Common share dividends amount included in compensation cost	18	17	$ 36	34
Restricted Stock Unit [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted average period expected to be amortized, non vested shares			6 months
Period for pro-rata vesting of shares or units for non-employee directors			1 year
Unrecognized compensation cost related to nonvested restricted stock	520		$ 520
Expense related to nonvested common shares	263	252	$ 526	$ 505
Performance Share Incentive Awards [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted average grant date fair value			$ 120.12	$ 123.45
Compensation expense	819	1,637	$ 1,596	$ 4,986
Cumulative amount recorded in shareholders' equity related to Long-Term Incentive Plan	9,065		$ 9,065
Periods of performance considered for calculating compensation expense			3 years
Performance Share Incentive Awards [Member] | November 28, 2016 [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted average grant date fair value					$ 104.49
Performance Share Incentive Awards [Member] | November 21, 2016 [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted average grant date fair value					$ 103.75
Deferred Compensation [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common share dividends amount included in compensation cost	$ 73	$ 67	$ 145	$ 134
Executive officers and other highly compensated employees salary and annual cash incentive compensation deferrals percentage, maximum			100.00%
Executive officers share-based long-term incentive compensation deferrals percentage, maximum			90.00%

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Stock-Based Compensation - Summarized Activity Related to Stock Options (Detail) - Stock Options [Member] $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Apr. 30, 2019 USD ($) $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Options, Outstanding, Beginning balance | shares	1,885
Number of Options, Granted | shares	348
Number of Options, Exercised | shares	(251)
Number of Options, Forfeited or expired | shares	(12)
Number of Options, Outstanding, Ending balance | shares	1,970
Number of Options, Vested or expected to vest | shares	1,949
Number of Options, Exercisable | shares	1,067
Weighted-Average Exercise Price Per Share, Outstanding, Beginning balance | $ / shares	$ 85.33
Weighted-Average Exercise Price Per Share, Granted | $ / shares	124.89
Weighted-Average Exercise Price Per Share, Exercised | $ / shares	57.48
Weighted-Average Exercise Price Per Share, Forfeited or expired | $ / shares	118.70
Weighted-Average Exercise Price Per Share, Outstanding, Ending balance | $ / shares	95.67
Weighted-Average Exercise Price Per Share, Vested or expected to vest | $ / shares	95.38
Weighted-Average Exercise Price Per Share, Exercisable | $ / shares	$ 78.87
Aggregate Intrinsic Value, Outstanding | $	$ 99,042
Aggregate Intrinsic Value, Vested or expected to vest | $	98,592
Aggregate Intrinsic Value, Exercisable | $	$ 71,609
Weighted Average Remaining Term, Outstanding	7 years
Weighted Average Remaining Term, Vested or expected to vest	6 years 10 months 24 days
Weighted Average Remaining Term, Exercisable	5 years 7 months 6 days

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Stock-Based Compensation - Fair Value Assumptions of Stock Options (Detail) - Stock Options [Member]	6 Months Ended
	Apr. 30, 2019	Apr. 30, 2018
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected volatility, Minimum	24.10%	24.00%
Expected volatility, Maximum	24.50%	26.70%
Expected dividend yield	1.04%	0.97%
Risk-free interest rate, Minimum	2.84%	2.09%
Risk-free interest rate, Maximum	2.95%	2.20%
Minimum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected life of the option (in years)	5 years 3 months 18 days	5 years 4 months 24 days
Maximum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected life of the option (in years)	6 years 2 months 12 days	6 years 2 months 12 days

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Stock-Based Compensation - Summarized Activity Related to Restricted Stock (Detail) - Restricted Stock [Member] shares in Thousands	6 Months Ended
	Apr. 30, 2019 $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Restricted Shares, Beginning balance | shares	53
Number of Restricted Shares, Granted | shares	34
Number of Restricted Shares, Vested | shares	(25)
Number of Restricted Shares, Ending balance | shares	62
Weighted-Average Grant Date Fair Value, Restricted Shares, Beginning balance | $ / shares	$ 108.82
Weighted-Average Grant Date Fair Value, Granted | $ / shares	129.44
Weighted-Average Grant Date Fair Value, Vested | $ / shares	96.99
Weighted-Average Grant Date Fair Value, Restricted Shares, Ending balance | $ / shares	$ 124.86

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Stock-Based Compensation - Summarized Activity Related to Restricted Stock Units (Detail) - Restricted Stock Unit [Member] shares in Thousands	6 Months Ended
	Apr. 30, 2019 $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Restricted Shares, Beginning balance	0
Number of Restricted Share Units, Granted	8
Number of Restricted Shares, Ending balance	8
Weighted-Average Grant Date Fair Value, Granted | $ / shares	$ 126.83
Weighted-Average Grant Date Fair Value, Restricted Shares, Ending balance | $ / shares	$ 126.83

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Stock-Based Compensation - Summarized Activity Related to Director Deferred Compensation Shares (Detail) - Directors [Member] - Deferred Compensation Share Equivalent Units [Member] shares in Thousands	6 Months Ended
	Apr. 30, 2019 $ / shares shares
Deferred Compensation Arrangement With Individual Share Based Payments [Line Items]
Number of Shares, Outstanding, Beginning balance | shares	107
Number of Shares, Dividend equivalents | shares	1
Number of Shares, Outstanding, Ending balance | shares	108
Weighted-Average Grant Date Fair Value, Beginning balance | $ / shares	$ 51.24
Weighted-Average Grant Date Fair Value, Dividend equivalents | $ / shares	125.90
Weighted-Average Grant Date Fair Value, Ending balance | $ / shares	$ 51.65

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Warranties - Additional Information (Detail)	6 Months Ended
	Apr. 30, 2019
Guarantees [Abstract]
Product warranty period	1 year

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Warranties - Reconciliation of Product Warranty Liability (Detail) - USD ($) $ in Thousands	6 Months Ended
	Apr. 30, 2019	Apr. 30, 2018
Guarantees [Abstract]
Beginning balance at October 31	$ 12,195	$ 13,377
Accruals for warranties	4,846	5,937
Warranty payments	(5,258)	(6,642)
Currency effect	31	227
Ending balance	$ 11,814	$ 12,899

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Operating Segments - Additional Information (Detail)	6 Months Ended
	Apr. 30, 2019 Segment
Segment Reporting [Abstract]
Number of operating segments	3

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Operating Segments - Segments (Detail) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Apr. 30, 2019	Apr. 30, 2018		Apr. 30, 2019	Apr. 30, 2018
Segment Reporting Information [Line Items]
Net external sales	$ 551,119	$ 553,706		$ 1,049,029	$ 1,104,130
Operating profit (loss)	128,896	128,892		213,177	248,242
Operating Segments [Member]
Segment Reporting Information [Line Items]
Net external sales	551,119	553,706		1,049,029	1,104,130
Operating profit (loss)	128,896	128,892	[1]	213,177	248,242	[1]
Operating Segments [Member] | Adhesive Dispensing Systems [Member]
Segment Reporting Information [Line Items]
Net external sales	236,722	238,775		448,240	459,639
Operating profit (loss)	71,012	70,337	[1]	118,905	124,327	[1]
Operating Segments [Member] | Advanced Technology Systems [Member]
Segment Reporting Information [Line Items]
Net external sales	249,295	250,839		483,752	522,540
Operating profit (loss)	56,535	58,690	[1]	97,320	126,183	[1]
Operating Segments [Member] | Industrial Coating Systems [Member]
Segment Reporting Information [Line Items]
Net external sales	65,102	64,092		117,037	121,951
Operating profit (loss)	14,469	12,050	[1]	21,985	22,595	[1]
Corporate [Member]
Segment Reporting Information [Line Items]
Operating profit (loss)	$ (13,120)	$ (12,185)	[1]	$ (25,033)	$ (24,863)	[1]

[1] ^{Results for the three and six months ended April 30, 2018 have been revised to reflect the retrospective adoption of Accounting Standards Update No. 2017-07, Compensation — Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Cost ("ASU 2017-07"). Refer to Note 3 for details.}

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Operating Segments - Reconciliation of Segment Operating Income to Consolidated Income Before Income Taxes (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2019	Apr. 30, 2018	Apr. 30, 2019	Apr. 30, 2018
Segment Reporting [Abstract]
Total profit for reportable segments	$ 128,896	$ 128,892	$ 213,177	$ 248,242
Interest expense	(12,372)	(12,127)	(24,738)	(23,445)
Interest and investment income	325	219	642	509
Other - net	(568)	1,135	(4,757)	(3,669)
Income before income taxes	$ 116,281	$ 118,119	$ 184,324	$ 221,637

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Operating Segments - Sales Information by Geographic Regions (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2019	Apr. 30, 2018	Apr. 30, 2019	Apr. 30, 2018
Net external sales
Net external sales	$ 551,119	$ 553,706	$ 1,049,029	$ 1,104,130
United States [Member]
Net external sales
Net external sales	190,699	178,821	361,050	344,652
Americas [Member]
Net external sales
Net external sales	43,682	38,959	76,119	73,238
Europe [Member]
Net external sales
Net external sales	149,526	154,736	282,200	296,674
Japan [Member]
Net external sales
Net external sales	30,031	33,030	59,078	98,899
Asia Pacific [Member]
Net external sales
Net external sales	$ 137,181	$ 148,160	$ 270,582	$ 290,667

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Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Recurring [Member] - USD ($) $ in Thousands		Apr. 30, 2019	Apr. 30, 2018
Assets:
Foreign currency forward contracts	[1]	$ 4,824	$ 3,213
Total assets at fair value		4,824	3,213
Liabilities:
Deferred compensation plans	[2]	12,574	11,796
Foreign currency forward contracts	[1]	4,742	5,494
Total liabilities at fair value		17,316	17,290
Level 2 [Member]
Assets:
Foreign currency forward contracts	[1]	4,824	3,213
Total assets at fair value		4,824	3,213
Liabilities:
Deferred compensation plans	[2]	12,574	11,796
Foreign currency forward contracts	[1]	4,742	5,494
Total liabilities at fair value		$ 17,316	$ 17,290

[1] We enter into foreign currency forward contracts to reduce the risk of foreign currency exposures resulting from receivables, payables, intercompany receivables, intercompany payables and loans denominated in foreign currencies. Foreign exchange contracts are valued using market exchange rates. These foreign exchange contracts are not designated as hedges.

[2] Executive officers and other highly compensated employees may defer up to 100 percent of their salary and annual cash incentive compensation and for executive officers, up to 90 percent of their long-term incentive compensation, into various non-qualified deferred compensation plans. Deferrals can be allocated to various market performance measurement funds. Changes in the value of compensation deferred under these plans are recognized each period based on the fair value of the underlying measurement funds.

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Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Parenthetical) (Detail)	6 Months Ended
	Apr. 30, 2019
Fair Value Disclosures [Abstract]
Executive officers and other highly compensated employees salary and annual cash incentive compensation deferrals percentage, maximum	100.00%
Executive officers share-based long-term incentive compensation deferrals percentage, maximum	90.00%

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Fair Value Measurements - Carrying Amounts and Fair Values of Financial Instruments, Other than Cash and Cash Equivalents, Receivables and Accounts Payable (Detail) $ in Thousands	Apr. 30, 2019 USD ($)
Schedule Of Carrying Amounts And Fair Values Of Financial Instruments [Abstract]
Long-term debt (including current portion), Carrying Amount	$ 1,374,125
Long-term debt (including current portion), Fair Value	$ 1,381,087

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Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2019	Apr. 30, 2018	Apr. 30, 2019	Apr. 30, 2018
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Maturity of foreign currency forward contracts			90 days
Gains (losses) on foreign currency forward contracts	$ (1,236)	$ (1,607)	$ (206)	$ (2,571)
Gains (losses) in fair value of balance sheet positions denominated in foreign currencies	$ 1,863	$ 2,584	$ (140)	$ 1,602

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Derivative Financial Instruments - Outstanding Currency, Forward Exchange Contracts (Detail) - Foreign Currency Forward Contracts [Member] - USD ($) $ in Thousands	Apr. 30, 2019	Apr. 30, 2018
Sell [Member]
Derivative [Line Items]
Notional Amounts of foreign currency derivative contracts	$ 456,372	$ 236,338
Buy [Member]
Derivative [Line Items]
Notional Amounts of foreign currency derivative contracts	582,613	361,399
Euro [Member] | Sell [Member]
Derivative [Line Items]
Notional Amounts of foreign currency derivative contracts	401,545	152,436
Euro [Member] | Buy [Member]
Derivative [Line Items]
Notional Amounts of foreign currency derivative contracts	279,131	82,687
British Pound [Member] | Sell [Member]
Derivative [Line Items]
Notional Amounts of foreign currency derivative contracts	21,012	43,914
British Pound [Member] | Buy [Member]
Derivative [Line Items]
Notional Amounts of foreign currency derivative contracts	44,879	58,981
Japanese Yen [Member] | Sell [Member]
Derivative [Line Items]
Notional Amounts of foreign currency derivative contracts	28,504	32,610
Japanese Yen [Member] | Buy [Member]
Derivative [Line Items]
Notional Amounts of foreign currency derivative contracts	46,226	35,260
Australian Dollar [Member] | Sell [Member]
Derivative [Line Items]
Notional Amounts of foreign currency derivative contracts	180	194
Australian Dollar [Member] | Buy [Member]
Derivative [Line Items]
Notional Amounts of foreign currency derivative contracts	7,771	8,137
Hong Kong Dollar [Member] | Sell [Member]
Derivative [Line Items]
Notional Amounts of foreign currency derivative contracts	1,209	2,170
Hong Kong Dollar [Member] | Buy [Member]
Derivative [Line Items]
Notional Amounts of foreign currency derivative contracts	128,710	110,723
Singapore Dollar [Member] | Sell [Member]
Derivative [Line Items]
Notional Amounts of foreign currency derivative contracts	794	616
Singapore Dollar [Member] | Buy [Member]
Derivative [Line Items]
Notional Amounts of foreign currency derivative contracts	15,356	13,143
Others [Member] | Sell [Member]
Derivative [Line Items]
Notional Amounts of foreign currency derivative contracts	3,128	4,398
Others [Member] | Buy [Member]
Derivative [Line Items]
Notional Amounts of foreign currency derivative contracts	$ 60,540	$ 52,468

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Long-Term Debt - Long-Term Debt (Detail) - USD ($) $ in Thousands	Apr. 30, 2019	Oct. 31, 2018
Debt Instrument [Line Items]
Revolving credit agreement, due 2024		$ 52,200
Private shelf facility, due 2020	$ 36,111	36,111
Development loans, due 2019-2026	1,019	1,086
Long-term Debt	1,377,797	1,318,064
Less current maturities	153,734	28,734
Less unamortized debt issuance costs	3,672	3,973
Long-term maturities	1,220,391	1,285,357
Senior Notes, Due 2019-2025 [Member]
Debt Instrument [Line Items]
Senior notes	156,700	156,700
Senior Notes, Due 2019-2027 [Member]
Debt Instrument [Line Items]
Senior notes	100,000	100,000
Senior Notes, Due 2023-2030 [Member]
Debt Instrument [Line Items]
Senior notes	350,000	350,000
Term Loan, Due 2020-2024 [Member]
Debt Instrument [Line Items]
Term loan	605,000	605,000
Euro Loan, Due 2021 [Member]
Debt Instrument [Line Items]
Euro loan	$ 128,967	$ 16,967

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Long-term Debt - Additional Information (Detail) € in Thousands			1 Months Ended			6 Months Ended	12 Months Ended
	Jun. 30, 2018 USD ($)	Oct. 31, 2011	Apr. 30, 2019 USD ($)	Jun. 30, 2018 USD ($)	Jul. 31, 2015 USD ($)	Apr. 30, 2019 USD ($)	Oct. 31, 2016 USD ($)	Oct. 31, 2015 USD ($)	Oct. 31, 2012 USD ($)	Apr. 30, 2019 EUR (€)	Oct. 31, 2018 USD ($)	Oct. 31, 2018 EUR (€)
Debt Instrument [Line Items]
Outstanding balance											$ 52,200,000
Outstanding balance			$ 36,111,000			$ 36,111,000					36,111,000
Term loan facility			$ 1,374,125,000			$ 1,374,125,000
Revolving Credit Agreement [Member]
Debt Instrument [Line Items]
Debt instrument, covenant compliance description						We were in compliance with all covenants at April 30, 2019, and the amount we could borrow under the facility would not have been limited by any debt covenants.
Revolving credit facility expiration			2024-04
Revolving credit facility			$ 850,000,000			$ 850,000,000
Credit facility, term			5 years
Outstanding balance			$ 0			0					52,200,000
Revolving Credit Agreement [Member] | Swing Line Loans [Member]
Debt Instrument [Line Items]
Revolving credit facility			$ 75,000,000			$ 75,000,000
Syndicated Revolving Credit Agreement [Member]
Debt Instrument [Line Items]
Revolving credit facility expiration			2020-02
Three-year Note Purchase and Private Shelf Agreement [Member]
Debt Instrument [Line Items]
Debt instrument, covenant compliance description						We were in compliance with all covenants at April 30, 2019, and the amount we could borrow would not have been limited by any debt covenants.
Debt instrument, face amount			$ 150,000,000			$ 150,000,000
Period of agreement						3 years
Maximum credit facility							$ 200,000,000	$ 180,000,000
Maximum life of borrowings						12 years
Maximum average life of borrowings						10 years
Outstanding balance			36,111,000			$ 36,111,000					36,111,000
Three-year Note Purchase and Private Shelf Agreement [Member] | Minimum [Member]
Debt Instrument [Line Items]
Revolving credit facility expiration		2020-01
Three-year Note Purchase and Private Shelf Agreement [Member] | Maximum [Member]
Debt Instrument [Line Items]
Revolving credit facility expiration		2020-09
Term Loan Facility [Member] | Group of Banks [Member]
Debt Instrument [Line Items]
Term loan			$ 605,000,000			$ 605,000,000
Weighted average interest rate for borrowings			3.57%			3.57%				3.57%
Debt instrument, covenant compliance description						We were in compliance with all covenants at April 30, 2019.
Term Loan Due in March 2020 [Member] | Group of Banks [Member]
Debt Instrument [Line Items]
Term loan			$ 100,000,000			$ 100,000,000
Term Loan Due in September 2022 [Member] | Group of Banks [Member]
Debt Instrument [Line Items]
Term loan			200,000,000			200,000,000
Term Loan Due in March 2024 [Member] | Group of Banks [Member]
Debt Instrument [Line Items]
Term loan			305,000,000			305,000,000
Euro Loan, Due 2021 [Member]
Debt Instrument [Line Items]
Euro loan			$ 128,967,000			$ 128,967,000					16,967,000
Euro Loan, Due 2021 [Member] | Bank of America [Member]
Debt Instrument [Line Items]
Weighted average interest rate for borrowings			0.88%			0.88%				0.88%
Debt instrument, covenant compliance description						We were in compliance with all covenants at April 30, 2019.
Debt instrument, face amount | €												€ 150,000
Euro loan			$ 128,967,000			$ 128,967,000				€ 115,000
Senior Notes, Due 2023-2030 [Member]
Debt Instrument [Line Items]
Debt instrument, covenant compliance description						We were in compliance with all covenants at April 30, 2019.
Debt instrument, face amount	$ 350,000,000			$ 350,000,000
Repayments of outstanding balance under syndicated revolving credit facility				$ 315,000,000
Outstanding balance			$ 350,000,000			$ 350,000,000					350,000,000
Senior Notes, Due 2023-2030 [Member] | Minimum [Member]
Debt Instrument [Line Items]
Revolving credit facility expiration	2023-06
Debt instrument, fixed interest rates	3.71%			3.71%
Senior Notes, Due 2023-2030 [Member] | Maximum [Member]
Debt Instrument [Line Items]
Revolving credit facility expiration	2030-06
Debt instrument, fixed interest rates	4.17%			4.17%
Note A and B [Member] | Three-year Note Purchase and Private Shelf Agreement [Member] | Minimum [Member]
Debt Instrument [Line Items]
Debt instrument, fixed interest rates			2.21%			2.21%				2.21%
Note C [Member] | Three-year Note Purchase and Private Shelf Agreement [Member] | Maximum [Member]
Debt Instrument [Line Items]
Debt instrument, fixed interest rates			2.56%			2.56%				2.56%
Senior Notes, Due 2019-2025 [Member]
Debt Instrument [Line Items]
Debt instrument, covenant compliance description						We were in compliance with all covenants at April 30, 2019.
Debt instrument, face amount									$ 200,000,000
Outstanding balance			$ 156,700,000			$ 156,700,000					156,700,000
Senior Notes, Due 2019-2025 [Member] | Minimum [Member]
Debt Instrument [Line Items]
Revolving credit facility expiration									2019-07
Debt instrument, fixed interest rates									2.62%
Senior Notes, Due 2019-2025 [Member] | Maximum [Member]
Debt Instrument [Line Items]
Revolving credit facility expiration									2025-07
Debt instrument, fixed interest rates									3.13%
Senior Notes, Due 2019-2027 [Member]
Debt Instrument [Line Items]
Outstanding balance			$ 100,000,000			$ 100,000,000					$ 100,000,000
Senior Notes, Due 2019-2027 [Member] | Senior Unsecured Notes [Member]
Debt Instrument [Line Items]
Debt instrument, covenant compliance description					We were in compliance with all covenants at April 30, 2019.
Term loan facility					$ 100,000,000
Senior Notes, Due 2019-2027 [Member] | Senior Unsecured Notes [Member] | Minimum [Member]
Debt Instrument [Line Items]
Revolving credit facility expiration					2019-07
Debt instrument, fixed interest rates					2.89%
Senior Notes, Due 2019-2027 [Member] | Senior Unsecured Notes [Member] | Maximum [Member]
Debt Instrument [Line Items]
Revolving credit facility expiration					2027-07
Debt instrument, fixed interest rates					3.19%