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Operating Segments and Geographic Area Data
 12 Months Ended
Oct. 31, 2020
Segment Reporting [Abstract]  
Operating Segments and Geographic Area Data Operating segments and geographic area data
We conduct business in two primary operating segments: Industrial Precision Solutions and Advanced Technology Solutions. 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.
Effective in the second quarter of 2020, we made changes to realign our management team and our operating segments. This realignment will enable us to better serve global customers and markets, to more efficiently leverage technology synergies, to operate divisions of significant size in a consistent and focused way and to position ourselves for our next chapter of profitable growth. The revised operating segments better reflect how we manage the Company, allocate resources, and assess performance of the businesses.
We realigned our former three operating segments into two: Industrial Precision Solutions and Advanced Technology Solutions. Existing product lines were unchanged as part of this new structure.
Industrial Precision Solutions: This segment combines our former Adhesive Dispensing Systems (ADS) and Industrial Coating Systems (ICS) businesses. IPS enhances the technology synergies between ADS and ICS to deliver proprietary dispensing and processing technology to diverse end markets. Product lines reduce material consumption, increase line efficiency and enhance product brand and appearance. Components are used for dispensing adhesives, coatings, paint, finishes, sealants and other materials. This segment primarily serves the industrial, consumer durables and non-durables markets.
Advanced Technology Solutions: This segment integrates our proprietary product technologies found in progressive stages of a customer’s production processes, such as surface treatment, precisely controlled dispensing of material and post-dispense test and inspection to ensure quality. Related single-use plastic molded syringes, cartridges, tips, fluid connection components, tubing, balloons and catheters are used to dispense or control fluids in production processes or within customers’ end products. This segment predominantly serves customers in the electronics, medical and related high-tech industrial markets.
The financial information presented herein reflects the impact of the preceding changes and prior periods have been revised to reflect these changes.
No single customer accounted for 10 percent or more of sales in 2020, 2019 or 2018.
The following table presents information about our reportable segments:
Industrial Precision SolutionsAdvanced Technology SolutionsCorporateTotal
Year ended October 31, 2020
Net external sales$1,143,423 $977,677 $— $2,121,100 
Depreciation and amortization38,939 64,543 9,820 113,302 
Operating profit (loss)208,028 191,602 (50,085)349,545 
Identifiable assets (b)
882,946 1,849,391 948,048 
(a)
3,680,385 
Property, plant and equipment expenditures18,798 31,737 — 50,535 
Year ended October 31, 2019
Net external sales$1,208,376 $985,850 $— $2,194,226 
Depreciation and amortization38,333 62,836 9,075 110,244 
Operating profit (loss)329,054 205,609 (51,550)483,113 
Identifiable assets (b)
997,460 1,740,259 782,188 
(a)
3,519,907 
Property, plant and equipment expenditures30,400 26,010 7,834 64,244 
Year ended October 31, 2018
Net external sales$1,215,302 $1,039,366 $— $2,254,668 
Depreciation and amortization37,763 62,594 8,050 108,407 
Operating profit (loss)315,048 244,880 (57,349)502,579 
Identifiable assets (b)
951,784 1,713,404 763,734 
(a)
3,428,922 
Property, plant and equipment expenditures55,457 16,205 18,128 89,790 
(a)Corporate assets are principally cash and cash equivalents, deferred income taxes, leases, headquarter facilities, the major portion of our enterprise management system, and intangible assets. Includes assets held for sale, see Note 4.
(b)Operating segment identifiable assets include notes and accounts receivable net of customer advance payments and allowance for doubtful accounts, inventories net of reserves, property, plant and equipment net of accumulated depreciation and goodwill.
We have significant sales and long-lived assets in the following geographic areas:
202020192018
Net external sales
United States$755,642 $758,383 $720,832 
Americas141,473 167,661 158,837 
Europe536,636 571,596 622,108 
Japan126,601 126,756 161,771 
Asia Pacific560,748 569,830 591,120 
Total net external sales$2,121,100 $2,194,226 $2,254,668 
Long-lived assets
United States$329,390 $286,894 $279,437 
Americas2,307 1,948 2,158 
Europe69,854 44,041 41,663 
Japan22,733 6,169 5,492 
Asia Pacific56,459 59,843 57,916 
Total long-lived assets$480,743 $398,895 $386,666 
Long-lived assets includes property, plant and equipment - net and operating right of use lease assets, which were recorded as a result of the new lease standard as codified in ASC 842 and excludes amounts held for sale, see Note 4. The increase in 2020 was driven primarily by the recording of the operating right of use lease assets.
A reconciliation of total segment operating profit to total consolidated income before income taxes is as follows:
202020192018
Total profit for reportable segments$349,545 $483,113 $502,579 
Interest expense(32,160)(47,145)(49,576)
Interest and investment income1,681 1,844 1,384 
Other-net(17,577)(6,708)(5,868)
Income before income taxes$301,489 $431,104 $448,519 
A reconciliation of total assets for reportable segments to total consolidated assets is as follows:
202020192018
Total assets for reportable segments$3,680,385 $3,519,907 $3,428,922 
Customer advance payments42,323 41,131 38,997 
Eliminations(48,052)(44,591)(46,907)
Total consolidated assets$3,674,656 $3,516,447 $3,421,012