Operating Segments

6 Months Ended

Apr. 30, 2019

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