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
July 31, 2017
Net external sales	$	233,367		$	290,406		$	65,665		$	—		$	589,438
Operating profit (loss)		66,451	(a)		87,385			13,192			(13,562	)		153,466
Three months ended
July 31, 2016
Net external sales	$	220,800		$	205,372		$	63,727		$	—		$	489,899
Operating profit (loss)		60,423	(b)		63,115			10,612	(d)		(10,464	)		123,686
Nine months ended
July 31, 2017
Net external sales	$	668,146		$	645,907		$	178,991		$	—		$	1,493,044
Operating profit (loss)		185,226	(a)		168,054			30,529			(50,895	)		332,914
Nine months ended
July 31, 2016
Net external sales	$	645,269		$	481,787		$	172,655		$	—		$	1,299,711
Operating profit (loss)		173,760	(b)		109,819	(c)		25,082	(d)		(31,093	)		277,568

(a)

Includes $703 and $1,421 of severance and restructuring costs in the three and nine months ended July 31, 2017, respectively.

(b)

Includes $759 and $2,230 of severance and restructuring costs in the three and nine months ended July 31, 2016, respectively.

(c)

Includes $680 of severance and restructuring costs in the nine months ended July 31, 2016.

(d)

Includes $955 and $1,454 of severance and restructuring costs in the three and nine months ended July 31, 2016, respectively.

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

	Three Months Ended						Nine Months Ended
	July 31, 2017			July 31, 2016			July 31, 2017			July 31, 2016
Total profit for reportable segments	$	153,466		$	123,686		$	332,914		$	277,568
Interest expense		(11,306	)		(4,647	)		(24,854	)		(15,490	)
Interest and investment income		268			176			813			501
Other-net		27			(1,978	)		(1,452	)		551
Income before income taxes	$	142,455		$	117,237		$	307,421		$	263,130

We have significant sales in the following geographic regions:

	Three Months Ended				Nine Months Ended
	July 31, 2017		July 31, 2016		July 31, 2017		July 31, 2016
United States	$	182,953	$	135,067	$	464,569	$	383,720
Americas		41,604		30,534		107,971		90,823
Europe		133,846		128,583		381,473		374,234
Japan		41,472		34,709		96,504		83,578
Asia Pacific		189,563		161,006		442,527		367,356
Total net external sales	$	589,438	$	489,899	$	1,493,044	$	1,299,711

Total assets for our Advanced Technology Systems reportable segment increased to $1,712,243 at July 31, 2017 as compared to $1,080,711 at October 31, 2016 primarily as a result of our acquisition of businesses in 2017 as described in Note 4, Acquisitions. There have been no material changes in total assets of our other reportable segments from October 31, 2016.