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Segment Data
 12 Months Ended
Oct. 31, 2021
Segment Reporting [Abstract]  
Segment Data
3Segment Data
The company's businesses are organized, managed, and internally grouped into segments based on similarities in products and services. Segment selection is based on the manner in which the company's chief operating decision maker organizes segments for making operating and investment decisions and assessing performance. The company has identified eleven operating segments and has aggregated certain of those operating segments into two
reportable segments: Professional and Residential. The aggregation of the company's segments is based on the segments having the following similarities: economic characteristics, types of products and services, types of production processes, type or class of customers, and method of distribution. The company's remaining activities are presented as "Other" due to their insignificance.
The Professional reportable business segment consists of turf and landscape equipment; rental, specialty, and underground construction equipment; snow and ice management equipment; and irrigation and lighting products. Turf and landscape equipment products include sports fields and grounds mowing and maintenance equipment, golf course mowing and maintenance equipment, landscape contractor mowing equipment, landscape creation and renovation equipment, and other maintenance equipment. Rental, specialty, and underground construction equipment products include horizontal directional drills, walk and ride trenchers, stand-on skid steers, vacuum excavators, stump grinders, turf renovation products, asset locators, pipe rehabilitation solutions, materials handling equipment, and other after-market tools. Snow and ice management equipment products primarily include snowplows; stand-on snow and ice removal equipment, including the related snowplow, snow brush, and snow thrower attachments; salt and sand spreaders; and related parts and accessories for light and medium duty trucks, utility task vehicles, skid steers, and front-end loaders. Irrigation and lighting products consist of sprinkler heads, electric and hydraulic valves, controllers, computer irrigation central control systems, coupling systems, and ag-irrigation drip tape and hose products, as well as professionally installed landscape lighting products offered through distributors and landscape contractors that also purchase irrigation products. Professional reportable business segment products are marketed and sold mainly through a network of distributors and dealers to professional users engaged in maintaining golf courses, sports fields, municipal properties, agricultural fields, residential and commercial landscapes, and removing snow and ice, as well as directly to government customers, rental companies, and large retailers.
The Residential reportable business segment primarily consists of walk power mowers, zero-turn riding mowers, snow throwers, replacement parts, and home solutions products, including grass trimmers, hedge trimmers, leaf blowers, blower-vacuums, chainsaws, string trimmers, and underground, hose, and hose-end retail irrigation products sold in Australia and New Zealand. Residential reportable business segment products are marketed and sold to homeowners through a network of distributors and dealers, and through a broad array of home centers, hardware retailers, and mass retailers, as well as online.
As further described in Note 7, Management Actions, during the first quarter of fiscal 2021, the company completed the sale of its Northeastern U.S. distribution company. As a result, for the fiscal year ended October 31, 2021, the company's Other activities consisted of the company's wholly-owned domestic distribution company, the company's
corporate activities, and the elimination of intersegment revenues and expenses. For the fiscal year ended October 31, 2020, the company's Other activities consisted of the company's wholly-owned domestic distribution companies, the company's corporate activities, and the elimination of intersegment revenues and expenses. Corporate activities include general corporate expenditures (finance, human resources, legal, information services, public relations, business development, and similar activities) and other unallocated corporate assets and liabilities, such as corporate facilities and deferred tax assets and liabilities.
The accounting policies of the reportable business segments are the same as those described in the summary of significant accounting policies in Note 1, Summary of Significant Accounting Policies and Related Data. The company evaluates the performance of its Professional and Residential reportable business segment results based on earnings from operations plus other income, net. The reportable business segment's operating profits or losses include direct costs incurred at the reportable business segment's operating level plus allocated expenses, such as profit sharing and manufacturing expenses. The allocated expenses represent costs that these operations would have incurred otherwise, but do not include general corporate expenses, interest expense, and income taxes. Operating loss for the company's Other activities includes earnings (loss) from the company's domestic wholly-owned distribution companies, corporate activities, other income, and interest expense. The company accounts for intersegment gross sales at current market prices.
The following tables present summarized financial information concerning the company's reportable business segments and Other activities (in thousands):
Fiscal Year Ended October 31, 2021ProfessionalResidentialOtherTotal
Net sales$2,929,600 $1,010,077 $19,907 $3,959,584 
Intersegment gross sales (eliminations)30,530 44 (30,574)— 
Earnings (loss) before income taxes507,327 121,516 (129,025)499,818 
Total assets2,032,350 388,246 515,544 2,936,140 
Capital expenditures79,515 16,730 7,767 104,012 
Depreciation and amortization$73,747 $13,470 $12,099 $99,316 
Fiscal Year Ended October 31, 2020ProfessionalResidentialOtherTotal
Net sales$2,523,452 $820,745 $34,613 $3,378,810 
Intersegment gross sales (eliminations)46,703 80 (46,783)— 
Earnings (loss) before income taxes426,560 113,669 (133,159)407,070 
Total assets1,940,844 282,061 630,323 2,853,228 
Capital expenditures49,975 13,669 14,424 78,068 
Depreciation and amortization$70,460 $12,607 $12,548 $95,615 
Fiscal Year Ended October 31, 2019ProfessionalResidentialOtherTotal
Net sales$2,443,448 $661,274 $33,362 $3,138,084 
Intersegment gross sales (eliminations)59,453 310 (59,763)— 
Earnings (loss) before income taxes380,914 65,151 (123,932)322,133 
Total assets1,592,065 430,495 307,987 2,330,547 
Capital expenditures57,246 16,970 18,665 92,881 
Depreciation and amortization$63,885 $11,897 $11,916 $87,698 
During fiscal 2021, sales to one customer in the Residential segment accounted for 10.6 percent of total consolidated gross sales. During fiscal 2020 and 2019, no customer accounted for 10.0 percent or more of total consolidated gross sales.
The following table presents the details of operating loss before income taxes for the company's Other activities (in thousands):
Fiscal Years Ended October 31202120202019
Corporate expenses$(112,419)$(108,396)$(124,422)
Interest expense(28,659)(33,156)(28,835)
Earnings from wholly-owned domestic distribution companies and other income, net12,053 8,393 29,325 
Total operating loss$(129,025)$(133,159)$(123,932)
The following geographic area data includes net sales based on product shipment destination and long-lived assets, which consist of property, plant and equipment, net, and is based on physical location in addition to allocated capital tooling from U.S. plant facilities (in thousands):
Fiscal Years Ended October 31United StatesInternational CountriesTotal
2021   
Net sales$3,131,954 $827,630 $3,959,584 
Long-lived assets$440,555 $47,176 $487,731 
2020   
Net sales$2,700,694 $678,116 $3,378,810 
Long-lived assets$426,378 $41,541 $467,919 
2019   
Net sales$2,413,153 $724,931 $3,138,084 
Long-lived assets$395,937 $41,380 $437,317