Operating Segments

3 Months Ended

Jan. 31, 2020

Segment Reporting [Abstract]

Operating Segments

11. Operating segments  

We conduct business across three primary business segments:  Adhesive Dispensing Systems, Advanced Technology Systems, and Industrial Coating Systems.  The composition of segments and measure of segment profitability is consistent with that used by our chief operating decision maker.  The primary measure used by the chief operating decision maker for purposes of making decisions about allocating resources to the segments and assessing performance is operating profit, which equals sales less cost of sales and certain operating expenses.  Items below the operating profit line of the Consolidated 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, 2019.

The following table presents information about our segments:

	Adhesive Dispensing Systems		Advanced Technology Systems		Industrial Coating Systems		Corporate			Total
Three months ended
January 31, 2020
Net external sales	$	207,225	$	231,117	$	56,574	$	—		$	494,916
Operating profit (loss)		48,618		32,287		7,786		(13,598	)		75,093
Three months ended
January 31, 2019
Net external sales	$	211,517	$	234,458	$	51,935	$	—		$	497,910
Operating profit (loss)		47,892		40,785		7,516		(11,912	)		84,281

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

	Three Months Ended
	January 31, 2020			January 31, 2019
Total profit for reportable segments	$	75,093		$	84,281
Interest expense		(9,740	)		(12,365	)
Interest and investment income		588			316
Other-net		(2,846	)		(4,189	)
Income before income taxes	$	63,095		$	68,043

We have significant sales in the following geographic regions:

	Three Months Ended
	January 31, 2020		January 31, 2019
United States	$	188,500	$	170,350
Americas		31,083		32,437
Europe		126,391		132,675
Japan		27,552		29,047
Asia Pacific		121,390		133,401
Total net external sales	$	494,916	$	497,910