Operating Segments

3 Months Ended

Jan. 31, 2019

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 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, 2018.

The following table presents information about our segments:

	Adhesive Dispensing Systems		Advanced Technology Systems		Industrial Coating Systems		Corporate			Total
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
Three months ended
January 31, 2018
Net external sales	$	220,864	$	271,701	$	57,859	$	—		$	550,424
Operating profit (loss)⁽¹⁾		53,990		67,493		10,545		(12,678	)		119,350

⁽¹⁾

Results for the three months ended January 31, 2018 have been revised to reflect the retrospective adoption of Accounting Standards Update No. 2017-07, Compensation — Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Cost ("ASU 2017-07"). Refer to Note 3 for details.

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

	Three Months Ended
	January 31, 2019			January 31, 2018
Total profit for reportable segments	$	84,281		$	119,350
Interest expense		(12,365	)		(11,317	)
Interest and investment income		316			289
Other-net		(4,189	)		(4,804	)
Income before income taxes	$	68,043		$	103,518

We have significant sales in the following geographic regions:

	Three Months Ended
	January 31, 2019		January 31, 2018
United States	$	170,350	$	165,831
Americas		32,437		34,279
Europe		132,675		141,938
Japan		29,047		65,869
Asia Pacific		133,401		142,507
Total net external sales	$	497,910	$	550,424