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Operating Segments
 6 Months Ended
Apr. 30, 2016
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 Statement of Income (interest and investment income, interest expense and other income/expense) are excluded from the measure of segment profitability reviewed by our chief operating decision maker and are not presented by operating segment.  The accounting policies of the segments are generally the same as those described in Note 1, Significant Accounting Policies, of our annual report on Form 10-K for the year ended October 31, 2015.

The following table presents information about our reportable segments:

 

 

 

Adhesive Dispensing Systems

 

 

Advanced Technology Systems

 

 

Industrial Coating Systems

 

 

Corporate

 

 

Total

 

Three months ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

April 30, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net external sales

 

$

221,030

 

 

$

158,555

 

 

$

58,007

 

 

$

—

 

 

$

437,592

 

Operating profit (loss)

 

 

62,977

 

(a)

 

38,731

 

(b)

 

10,292

 

(c)

 

(10,096

)

 

 

101,904

 

Three months ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

April 30, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net external sales

 

$

203,273

 

 

$

129,482

 

 

$

67,972

 

 

$

—

 

 

$

400,727

 

Operating profit (loss)

 

 

50,780

 

 

 

24,770

 

 

 

11,514

 

 

 

(10,650

)

 

 

76,414

 

Six months ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

April 30, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net external sales

 

$

424,469

 

 

$

276,415

 

 

$

108,928

 

 

$

—

 

 

$

809,812

 

Operating profit (loss)

 

 

113,337

 

(a)

 

46,704

 

(b)

 

14,470

 

(c)

 

(20,629

)

 

 

153,882

 

Six months ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

April 30, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net external sales

 

$

397,486

 

 

$

261,700

 

 

$

120,549

 

 

$

—

 

 

$

779,735

 

Operating profit (loss)

 

 

94,109

 

 

 

51,588

 

 

 

15,278

 

 

 

(21,743

)

 

 

139,232

 

 

 

(a)

Includes $991 and $1,471 of severance and restructuring costs in the three and six months ended April 30, 2016, respectively.

 

(b)

Includes $170 and $680 of severance and restructuring costs in the three and six months ended April 30, 2016, respectively.

 

(c)

Includes $472 and $499 of severance and restructuring costs in the three and six months ended April 30, 2016, respectively.

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, 2016

 

 

April 30, 2015

 

 

April 30, 2016

 

 

April 30, 2015

 

Total profit for reportable segments

 

$

101,904

 

 

$

76,414

 

 

$

153,882

 

 

$

139,232

 

Interest expense

 

 

(5,000

)

 

 

(4,313

)

 

 

(10,844

)

 

 

(8,402

)

Interest and investment income

 

 

188

 

 

 

151

 

 

 

326

 

 

 

237

 

Other-net

 

 

1,727

 

 

 

(687

)

 

 

2,529

 

 

 

(789

)

Income before income taxes

 

$

98,819

 

 

$

71,565

 

 

$

145,893

 

 

$

130,278

 

 

We have significant sales in the following geographic regions:

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

April 30, 2016

 

 

April 30, 2015

 

 

April 30, 2016

 

 

April 30, 2015

 

United States

 

$

131,262

 

 

$

140,030

 

 

$

248,653

 

 

$

262,854

 

Americas

 

 

33,582

 

 

 

31,028

 

 

 

60,289

 

 

 

59,296

 

Europe

 

 

125,933

 

 

 

105,097

 

 

 

245,651

 

 

 

213,663

 

Japan

 

 

29,366

 

 

 

28,499

 

 

 

48,869

 

 

 

50,032

 

Asia Pacific

 

 

117,449

 

 

 

96,073

 

 

 

206,350

 

 

 

193,890

 

Total net external sales

 

$

437,592

 

 

$

400,727

 

 

$

809,812

 

 

$

779,735