XML 53 R18.htm IDEA: XBRL DOCUMENT
v3.20.1

Operating Segments | 6 Months Ended
--- | ---
Apr. 30, 2020
Segment Reporting [Abstract] |
Operating Segments |
11. | Operating segments
We conduct business across two primary operating segments: Industrial Precision Solutions (IPS) and Advanced Technology Solutions (ATS). 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. 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. The following table presents information about our segments:
|  | Industrial Precision Solutions |  |  | Advanced Technology Solutions |  |  | Corporate |  |  | Total |
Three months ended |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
April 30, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net external sales |  | $ | 282,274 |  |  | $ | 247,204 |  |  | $ | — |  |  | $ | 529,478 |
Operating profit (loss) |  |  | 76,454 |  |  |  | 58,689 |  |  |  | (10,114 | ) |  |  | 125,029 |
Three months ended |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
April 30, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net external sales |  | $ | 301,824 |  |  | $ | 249,295 |  |  | $ | — |  |  | $ | 551,119 |
Operating profit (loss) |  |  | 85,481 |  |  |  | 56,535 |  |  |  | (13,120 | ) |  |  | 128,896 |
Six months ended |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
April 30, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net external sales |  | $ | 546,073 |  |  | $ | 478,321 |  |  | $ | — |  |  | $ | 1,024,394 |
Operating profit (loss) |  |  | 132,858 |  |  |  | 90,976 |  |  |  | (23,712 | ) |  |  | 200,122 |
Six months ended |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
April 30, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net external sales |  | $ | 565,277 |  |  | $ | 483,752 |  |  | $ | — |  |  | $ | 1,049,029 |
Operating profit (loss) |  |  | 140,890 |  |  |  | 97,320 |  |  |  | (25,033 | ) |  |  | 213,177 |
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, 2020 |  |  | April 30, 2019 |  |  | April 30, 2020 |  |  | April 30, 2019 |
Total profit for reportable segments |  | $ | 125,029 |  |  | $ | 128,896 |  |  | $ | 200,122 |  |  | $ | 213,177 |
Interest expense |  |  | (8,293 | ) |  |  | (12,372 | ) |  |  | (18,034 | ) |  |  | (24,738 | )
Interest and investment income |  |  | 278 |  |  |  | 325 |  |  |  | 867 |  |  |  | 642 |
Other-net |  |  | (429 | ) |  |  | (568 | ) |  |  | (3,275 | ) |  |  | (4,757 | )
Income before income taxes |  | $ | 116,585 |  |  | $ | 116,281 |  |  | $ | 179,680 |  |  | $ | 184,324 |
We have significant sales in the following geographic regions:
|  | Three Months Ended |  |  | Six Months Ended |
|  | April 30, 2020 |  |  | April 30, 2019 |  |  | April 30, 2020 |  |  | April 30, 2019 |
United States |  | $ | 188,933 |  |  | $ | 190,699 |  |  | $ | 377,433 |  |  | $ | 361,050 |
Americas |  |  | 36,673 |  |  |  | 43,682 |  |  |  | 67,756 |  |  |  | 76,119 |
Europe |  |  | 136,056 |  |  |  | 149,526 |  |  |  | 262,447 |  |  |  | 282,200 |
Japan |  |  | 31,575 |  |  |  | 30,031 |  |  |  | 59,127 |  |  |  | 59,078 |
Asia Pacific |  |  | 136,241 |  |  |  | 137,181 |  |  |  | 257,631 |  |  |  | 270,582 |
Total net external sales |  | $ | 529,478 |  |  | $ | 551,119 |  |  | $ | 1,024,394 |  |  | $ | 1,049,029 |

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration