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Operating Segments
 3 Months Ended
Jan. 31, 2017
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 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 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, 2016.

The following table presents information about our segments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adhesive Dispensing Systems

 

 

Advanced Technology Systems

 

 

Industrial Coating Systems

 

 

Corporate

 

 

Total

 

Three months ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

January 31, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net external sales

 

$

207,837

 

 

$

145,360

 

 

$

54,273

 

 

$

—

 

 

$

407,470

 

Operating profit (loss)

 

 

53,056

 

(a)

 

26,363

 

 

 

7,085

 

 

 

(10,586

)

 

 

75,918

 

Three months ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

January 31, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net external sales

 

$

203,439

 

 

$

117,860

 

 

$

50,921

 

 

$

—

 

 

$

372,220

 

Operating profit (loss)

 

 

50,360

 

(a)

 

7,973

 

(b)

 

4,178

 

(c)

 

(10,533

)

 

 

51,978

 

 

 

(a)

Includes $227 and $480 of severance and restructuring costs in the three months ended January 31, 2017, and January 31, 2016, respectively.

 

(b)

Includes $510 of severance and restructuring costs in the three months ended January 31, 2016.

 

(c)

Includes $27 of severance and restructuring costs in the three months ended January 31, 2016. 

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

 

 

 

Three Months Ended

 

 

 

January 31, 2017

 

 

January 31, 2016

 

Total profit for reportable segments

 

$

75,918

 

 

$

51,978

 

Interest expense

 

 

(5,641

)

 

 

(5,844

)

Interest and investment income

 

 

273

 

 

 

138

 

Other-net

 

 

(157

)

 

 

802

 

Income before income taxes

 

$

70,393

 

 

$

47,074

 

 

 

We have significant sales in the following geographic regions:

 

 

 

Three Months Ended

 

 

 

January 31, 2017

 

 

January 31, 2016

 

United States

 

$

125,521

 

 

$

117,391

 

Americas

 

 

30,042

 

 

 

26,707

 

Europe

 

 

119,159

 

 

 

119,718

 

Japan

 

 

24,177

 

 

 

19,503

 

Asia Pacific

 

 

108,571

 

 

 

88,901

 

Total net external sales

 

$

407,470

 

 

$

372,220