Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Apr. 30, 2019 | May 24, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Document Period End Date | Apr. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | COOPER COMPANIES INC | |
Entity Central Index Key | 0000711404 | |
Current Fiscal Year End Date | --10-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 49,487,752 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2019 | Apr. 30, 2018 | |
Income Statement [Abstract] | ||||
Net sales (Note 2) | $ 654.3 | $ 631.3 | $ 1,282.4 | $ 1,221.3 |
Cost of sales | 221.7 | 226.8 | 431.3 | 445.9 |
Gross profit | 432.6 | 404.5 | 851.1 | 775.4 |
Selling, general and administrative expense | 246.8 | 247.9 | 496.8 | 473.8 |
Research and development expense | 21 | 20.8 | 42 | 39.7 |
Amortization of intangibles | 36.9 | 36.7 | 73.5 | 72.7 |
Impairment of intangibles | 0 | 24.4 | 0 | 24.4 |
Gain on sale of an intangible (Note 5) | (19) | 0 | (19) | 0 |
Operating income | 146.9 | 74.7 | 257.8 | 164.8 |
Interest expense | 18.5 | 18.7 | 36.6 | 37.1 |
Other expense (income), net | 0.3 | 2 | (0.7) | (1.1) |
Income before income taxes | 128.1 | 54 | 221.9 | 128.8 |
Provision (benefit) for income taxes (Note 7) | 5.7 | (6.9) | (3.6) | 190.4 |
Net income (loss) | $ 122.4 | $ 60.9 | $ 225.5 | $ (61.6) |
Earnings (loss) per share - basic (in usd per share) (Note 8) | $ 2.48 | $ 1.24 | $ 4.57 | $ (1.26) |
Earnings (loss) per share - diluted (in usd per share) (Note 8) | $ 2.45 | $ 1.23 | $ 4.52 | $ (1.26) |
Number of shares used to compute earnings (loss) per share: | ||||
Basic (shares) | 49.4 | 49.1 | 49.3 | 49 |
Diluted (shares) | 50 | 49.6 | 49.9 | 49 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Millions | Apr. 30, 2019 | Oct. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 104.6 | $ 77.7 |
Trade accounts receivable, net of allowance for doubtful accounts of $17.2 at April 30, 2019 and $19.0 at October 31, 2018 | 396.2 | 374.7 |
Inventories (Note 4) | 493.1 | 468.8 |
Prepaid expense and other current assets | 142.7 | 169.7 |
Total current assets | 1,136.6 | 1,090.9 |
Property, plant and equipment, at cost | 2,038.2 | 1,930.3 |
Less: accumulated depreciation and amortization | 1,005.5 | 954.3 |
Property, plant and equipment, net | 1,032.7 | 976 |
Goodwill (Note 5) | 2,438.5 | 2,392.1 |
Other intangibles, net (Note 5) | 1,474.1 | 1,521.3 |
Deferred tax assets | 60.1 | 58.4 |
Other assets | 61.4 | 74.1 |
Total assets | 6,203.4 | 6,112.8 |
Current liabilities: | ||
Short-term debt (Note 6) | 454.6 | 37.1 |
Accounts payable | 129.2 | 146.4 |
Employee compensation and benefits | 83 | 94 |
Other current liabilities | 274.1 | 259 |
Total current liabilities | 940.9 | 536.5 |
Long-term debt (Note 6) | 1,472.3 | 1,985.7 |
Deferred tax liabilities | 33.3 | 31 |
Long-term tax payable | 124.8 | 141.5 |
Accrued pension liability and other | 89.9 | 110.3 |
Total liabilities | 2,661.2 | 2,805 |
Contingencies (see Note 13) | ||
Stockholders’ equity: | ||
Preferred stock, 10 cents par value, shares authorized: 1.0; zero shares issued or outstanding | 0 | 0 |
Common stock, 10 cents par value, shares authorized: 120.0; issued 53.1 at April 30, 2019 and 52.8 at October 31, 2018 | 5.3 | 5.3 |
Additional paid-in capital | 1,587.7 | 1,572.1 |
Accumulated other comprehensive loss | (416.6) | (430.7) |
Retained earnings | 2,786.8 | 2,576 |
Treasury stock at cost: 3.6 shares at April 30, 2019 and 3.6 shares at October 31, 2018 | (421.2) | (415.1) |
Noncontrolling interests | 0.2 | 0.2 |
Stockholders’ equity (Note 10) | 3,542.2 | 3,307.8 |
Total liabilities and stockholders' equity | $ 6,203.4 | $ 6,112.8 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2019 | Apr. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 122.4 | $ 60.9 | $ 225.5 | $ (61.6) |
Other comprehensive (loss) income: | ||||
Foreign currency translation adjustment, net of tax | (18.6) | (43) | 14.1 | 59.3 |
Comprehensive income (loss) | $ 103.8 | $ 17.9 | $ 239.6 | $ (2.3) |
Consolidated Condensed Balanc_2
Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) $ in Millions | Apr. 30, 2019 | Oct. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Trade accounts receivable, allowance for doubtful accounts | $ 17.2 | $ 19 |
Preferred stock, par value (in dollars per share) | $ 0.1 | $ 0.1 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.1 | $ 0.1 |
Common stock, shares authorized | 120,000,000 | 120,000,000 |
Common stock, shares issued | 53,100,000 | 52,800,000 |
Treasury stock, shares | 3,600,000 | 3,600,000 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common Shares | Treasury Stock | Treasury Stock Par Net Value | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Noncontrolling Interests |
Beginning Balance (in shares) at Oct. 31, 2017 | 48.8 | 3.6 | ||||||
Beginning Balance at Oct. 31, 2017 | $ 3,175.8 | $ 4.9 | $ (415.1) | $ 0.3 | $ 1,526.7 | $ (375.3) | $ 2,434.2 | $ 0.1 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) attributable to Cooper stockholders | (122.5) | (122.5) | ||||||
Other comprehensive income (loss), net of tax | 102.3 | 102.3 | ||||||
Issuance of common stock for stock plans, net (in shares) | 0.2 | |||||||
Issuance of common stock for stock plans, net | (10.5) | $ 0.1 | (10.6) | |||||
Dividends on common stock | (1.4) | (1.4) | ||||||
Share-based compensation expense | 12.7 | 12.7 | ||||||
Ending Balance (in shares) at Jan. 31, 2018 | 49 | 3.6 | ||||||
Ending Balance at Jan. 31, 2018 | 3,156.4 | $ 5 | $ (415.1) | 0.3 | 1,528.8 | (273) | 2,310.3 | 0.1 |
Beginning Balance (in shares) at Oct. 31, 2017 | 48.8 | 3.6 | ||||||
Beginning Balance at Oct. 31, 2017 | 3,175.8 | $ 4.9 | $ (415.1) | 0.3 | 1,526.7 | (375.3) | 2,434.2 | 0.1 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) attributable to Cooper stockholders | (61.6) | |||||||
Ending Balance (in shares) at Apr. 30, 2018 | 49.1 | 3.6 | ||||||
Ending Balance at Apr. 30, 2018 | 3,188 | $ 5 | $ (415.1) | 0.3 | 1,542.5 | (316) | 2,371.2 | 0.1 |
Beginning Balance (in shares) at Jan. 31, 2018 | 49 | 3.6 | ||||||
Beginning Balance at Jan. 31, 2018 | 3,156.4 | $ 5 | $ (415.1) | 0.3 | 1,528.8 | (273) | 2,310.3 | 0.1 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) attributable to Cooper stockholders | 60.9 | 60.9 | ||||||
Other comprehensive income (loss), net of tax | (43) | (43) | ||||||
Issuance of common stock for stock plans, net (in shares) | 0.1 | |||||||
Issuance of common stock for stock plans, net | 0.1 | 0.1 | ||||||
Share-based compensation expense | 13.6 | 13.6 | ||||||
Ending Balance (in shares) at Apr. 30, 2018 | 49.1 | 3.6 | ||||||
Ending Balance at Apr. 30, 2018 | 3,188 | $ 5 | $ (415.1) | 0.3 | 1,542.5 | (316) | 2,371.2 | 0.1 |
Beginning Balance (in shares) at Oct. 31, 2018 | 49.2 | 3.6 | ||||||
Beginning Balance at Oct. 31, 2018 | 3,307.8 | $ 5 | $ (415.1) | 0.3 | 1,572.1 | (430.7) | 2,576 | 0.2 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) attributable to Cooper stockholders | 103.2 | 103.2 | ||||||
Other comprehensive income (loss), net of tax | 32.7 | 32.7 | ||||||
Issuance of common stock for stock plans, net (in shares) | 0.1 | |||||||
Issuance of common stock for stock plans, net | (9) | (9) | ||||||
Dividends on common stock | (1.5) | (1.5) | ||||||
Share-based compensation expense | 11.7 | 11.7 | ||||||
Treasury stock repurchase | (6.1) | $ (6.1) | ||||||
Ending Balance (in shares) at Jan. 31, 2019 | 49.3 | 3.6 | ||||||
Ending Balance at Jan. 31, 2019 | 3,425.5 | $ 5 | $ (421.2) | 0.3 | 1,574.8 | (398) | 2,664.4 | 0.2 |
Beginning Balance (in shares) at Oct. 31, 2018 | 49.2 | 3.6 | ||||||
Beginning Balance at Oct. 31, 2018 | 3,307.8 | $ 5 | $ (415.1) | 0.3 | 1,572.1 | (430.7) | 2,576 | 0.2 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) attributable to Cooper stockholders | 225.5 | |||||||
Ending Balance (in shares) at Apr. 30, 2019 | 49.5 | 3.6 | ||||||
Ending Balance at Apr. 30, 2019 | 3,542.2 | $ 5 | $ (421.2) | 0.3 | 1,587.7 | (416.6) | 2,786.8 | 0.2 |
Beginning Balance (in shares) at Jan. 31, 2019 | 49.3 | 3.6 | ||||||
Beginning Balance at Jan. 31, 2019 | 3,425.5 | $ 5 | $ (421.2) | 0.3 | 1,574.8 | (398) | 2,664.4 | 0.2 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) attributable to Cooper stockholders | 122.4 | 122.4 | ||||||
Other comprehensive income (loss), net of tax | (18.6) | (18.6) | ||||||
Issuance of common stock for stock plans, net (in shares) | 0.2 | |||||||
Issuance of common stock for stock plans, net | 4.5 | 4.5 | ||||||
Share-based compensation expense | 8.4 | 8.4 | ||||||
Ending Balance (in shares) at Apr. 30, 2019 | 49.5 | 3.6 | ||||||
Ending Balance at Apr. 30, 2019 | $ 3,542.2 | $ 5 | $ (421.2) | $ 0.3 | $ 1,587.7 | $ (416.6) | $ 2,786.8 | $ 0.2 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 225.5 | $ (61.6) |
Depreciation and amortization | 139.5 | 135.6 |
Gain on sale of an intangible (Note 5) | (19) | 0 |
Impairment of intangibles | 0 | 24.4 |
Increase in operating capital | (19.7) | (187.6) |
Other non-cash items | (9.7) | 286.3 |
Net cash provided by operating activities | 316.6 | 197.1 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (131.9) | (97.9) |
Acquisitions of businesses and assets, net of cash acquired, and other | (50.8) | (1,320.7) |
Net cash used in investing activities | (182.7) | (1,418.6) |
Cash flows from financing activities: | ||
Proceeds from long-term debt | 424.8 | 1,946.1 |
Repayments of long-term debt | (938.8) | (650.1) |
Net proceeds from short-term debt | 417.4 | 16.4 |
Net payments related to share-based compensation awards | (4.3) | (10.5) |
Dividends on common stock | (1.5) | (1.5) |
Repurchase of common stock | (6.1) | 0 |
Debt acquisition costs | (0.2) | (3.9) |
Payment of contingent consideration | 0 | (0.2) |
Net cash (used in) provided by financing activities | (108.7) | 1,296.3 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (0.5) | 1.3 |
Net increase in cash, cash equivalents and restricted cash | 24.7 | 76.1 |
Cash, cash equivalents and restricted cash at beginning of period | 80.2 | 88.8 |
Cash, cash equivalents and restricted cash at end of period | 104.9 | 164.9 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||
Total cash, cash equivalents, and restricted cash | $ 80.2 | $ 88.8 |
General
General | 6 Months Ended |
Apr. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General The accompanying unaudited interim consolidated condensed financial statements and related notes should be read in conjunction with the audited Consolidated Financial Statements of the Cooper Companies, Inc. and its subsidiaries (the Company) and related notes as contained in the Company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2018. The unaudited interim financial statements include all adjustments (consisting only of normal recurring adjustments) and accruals necessary in the judgment of management for a fair statement of the results for the periods presented. Readers should not assume that the results reported here either indicate or guarantee future performance. The terms "the Company", "we", "us", and "our" are used to refer collectively to the Cooper Companies, Inc. and its subsidiaries. Accounting Pronouncements Recently Adopted In March 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . The ASU requires an entity to disaggregate the service cost component from the other components of net benefit cost. The service cost component is now presented in the same income statement line as other compensation costs arising from services rendered by the pertinent employees during the period and the other components of net benefit costs are presented separately as other income/expense below operating income. The Company adopted this guidance on November 1, 2018, and it did not have a material impact on the Company’s reported financial results. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory , which requires entities to recognize the income tax consequences on an intra-entity transfer of an asset other than inventory when the transfer occurs. The ASU changes the timing of the recognition of the income tax consequences of non-inventory transfers which under current guidance defers the income tax consequences until the asset is sold to an outside party or otherwise recognized. The guidance for the amendments of ASU 2016-16 requires companies to apply a modified retrospective approach with a cumulative catch-up adjustment to opening retained earnings in the period of adoption. The Company adopted ASU 2016-16 in the first quarter of fiscal 2019 on a modified retrospective basis. The Company recorded the cumulative effect of the change as a decrease to retained earnings of approximately $13.3 million . The cumulative effect adjustment represents the recognition of unrecognized income tax effects from intra-entity transfers of assets other than inventory that occurred prior to the date of adoption. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The ASU requires revenue recognition to depict the transfer of goods or services to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments in the ASU can be applied either retrospectively to each prior reporting period presented or alternatively, the modified retrospective transition method whereby the company recognizes the cumulative effect of initially applying the guidance as an opening balance sheet adjustment to equity in the period of initial application. This alternative approach must be supplemented by additional disclosures. We adopted ASU 2014-09 on November 1, 2018, using the modified retrospective transition method. We did not recognize any cumulative effect of initially applying the new revenue standard as an adjustment to our opening balance of retained earnings due to its immaterial impact. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. There was no material impact of ASC 606 to our financial statements during the three and six months ended April 30, 2019. We do not expect the adoption of the new revenue standard to have a material impact to our net income on an ongoing basis. The Company applies the provisions of Accounting Standards Codification (ASC) 606-10 or ASU 2014-09, Revenue from Contracts with Customers , and all related appropriate guidance. The Company recognizes revenue under the core principle to depict the transfer of control to the Company’s customers in an amount reflecting the consideration to which the Company expects to be entitled. In order to achieve that core principle, the Company applies the following five step approach: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied. For a complete discussion of accounting for net product revenue, see Note 2. Revenue Recognition. Accounting Pronouncements Issued Not Yet Adopted In November 2018, the FASB issued ASU 2018-18, Collaborative Arrangements (Topic 808), Clarifying the Interaction between Topic 808 and Topic 606 . This guidance amended ASC 808 and ASC 606 to clarify that transactions in a collaborative arrangement should be accounted for under ASC 606 when the counterparty is a customer for a distinct good or service (i.e., unit of account). The amendments preclude an entity from presenting consideration from a transaction in a collaborative arrangement as revenue from contracts with customers if the counterparty is not a customer for that transaction. We are currently evaluating the impact of ASU 2018-18 which is effective for the Company in our fiscal year and interim periods beginning on November 1, 2020. In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other - Internal Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. This guidance requires companies to apply the internal-use software guidance in ASC 350-40 to implementation costs incurred in a hosting arrangement that is a service contract to determine whether to capitalize certain implementation costs or expense them as incurred. We are currently evaluating the impact of ASU 2018-15 which is effective for the Company in our fiscal year and interim periods beginning on November 1, 2020. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . ASU 2016-02 requires that a lessee recognize the assets and liabilities that arise from operating leases. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use (ROU) asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases and ASU 2018-11, Leases Topic 842 Target improvements , which provides an additional (and optional) transition method whereby the new lease standard is applied at the adoption date and recognized as an adjustment to retained earnings. In March 2019, the FASB issued ASU 2019-01, Leases (Topic 842) Codification Improvements , which further clarifies the determination of fair value of leases and modifies transition disclosure requirements for changes in accounting principles and other technical updates. This standard is effective for the Company in our fiscal year and interim periods beginning on November 1, 2019. We anticipate this standard to have a material impact on our Consolidated Balance Sheets and related disclosures due to the recognition of ROU assets and lease liabilities for operating leases. However, we do not expect adoption to have a material impact on our Consolidated Income Statements. We are continuing to assess and evaluate the potential impacts of the standard as well as the election of transition method and certain practical expedients available within the ASU. We are in the process of documenting and analyzing our lease contracts, assessing business processes and controls, implementing a system solution and completing our analysis of information necessary to determine the impact to the consolidated financial statements. Accounts Receivable Factoring Program We may factor certain designated trade receivables with one or more third party financial institutions pursuant to a factoring agreement. These are non-recourse factoring arrangements to assist us in managing operating cash flow and meet the requirements to be accounted for as sales in accordance with the “Transfers and Servicing” guidance in ASC 860, where the Company’s continuing involvement subsequent to the transfer is limited to providing certain servicing and collection actions on behalf of the purchasers of the designated trade receivables. Proceeds from amounts factored by the Company are recorded as an increase to cash and a reduction to accounts receivable outstanding in the Company's Consolidated Balance Sheets. Cash flows attributable to factoring are reflected as cash flows from operating activities in the Company’s Consolidated Statements of Cash Flows. Factoring fees associated with the sale of factored receivables for the three and six months ended April 30, 2019 were $0.5 million and $0.9 million respectively and were minimal for the three and six months ended April 30, 2018. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Apr. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Product Revenue, Net The Company sells its products principally to a limited number of distributors, group purchasing organizations, eye care or health care professionals including independent practices, corporate retailers, hospitals and clinics or authorized resellers (collectively, its Customers). These Customers subsequently resell the Company’s products to eye care or health care providers and patients. In addition to product supply and distribution agreements with Customers, the Company enters into arrangements with health care providers and payors that provide for government-mandated and/or privately-negotiated rebates, chargebacks and discounts with respect to the purchase of the Company’s products. The Company considers customer purchase orders, which in some cases are governed by master sales agreements, to be contracts with a customer. In situations where sales are to a distributor, the Company has concluded that its contracts are with the distributor. As part of its consideration of the contract, the Company evaluates certain factors including the customer’s ability to pay (or credit risk). For each contract, the Company considers the promise to transfer products, each of which is distinct, to be the identified performance obligations. Revenues from product sales are recognized when the Customer obtains control of the Company’s product, which occurs at a point in time, typically upon shipment or delivery to the Customer. When the Company performs shipping and handling activities after the transfer of control to the Customer (e.g., when control transfers prior to delivery), they are considered as fulfillment activities, and accordingly, the costs are accrued for when the related revenue is recognized. Taxes collected from Customers relating to product sales and remitted to governmental authorities are excluded from revenues. The Company does not have any revenue recognized on payment expected to be received more than one year after the transfer of control of the products. The Company expenses incremental costs of obtaining a contract as and when incurred if the expected amortization period of the asset that the Company would have recognized is one year or less. See Note14. Business Segment Information, for disaggregation of revenue. Reserves for Variable Consideration Revenues from product sales are recorded at the net sales price (transaction price), which includes estimates of variable consideration for which reserves are established and which result from discounts, returns, chargebacks, rebates and other allowances that are offered within contracts between the Company and its Customers, health care providers, payors and other indirect customers relating to the Company’s sales of its products. These reserves are based on the amounts earned or to be claimed on the related sales and are classified primarily in current liability. Variable consideration is estimated based on the most likely amount or expected value approach, depending on which method the Company expects to better predict the amount of consideration to which it will be entitled. Once the Company elects one of the methods to estimate variable consideration for a particular type of performance obligation, the Company applies that method consistently. Where appropriate, these estimates take into consideration a range of possible outcomes which are probability-weighted for relevant factors such as the Company’s historical experience, current contractual and statutory requirements, specific known market events and trends, industry data and forecasted customer buying and payment patterns. Overall, these reserves reflect the Company’s best estimates of the amount of consideration to which it is entitled based on the terms of the contract. Actual amounts of consideration ultimately received may differ from the Company’s estimates. If actual results in the future vary from the Company’s estimates, the Company adjusts these estimates, which would affect net product revenue and earnings in the period such variances become known. Trade Discounts and Allowances The Company generally provides Customers with discounts, which include incentive fees that are stated in the Company’s contracts and are recorded as a reduction of revenue in the period the related product revenue is recognized. In addition, the Company receives sales order management, data and distribution services from certain Customers. To the extent the services received are distinct from the Company’s sale of products to the Customer and have readily determinable fair value, these payments are classified in selling, general and administrative expenses in the consolidated statements of income of the Company. Product Returns Consistent with industry practice, the Company generally offers Customers a limited right of return for a product that has been purchased from the Company. The Company estimates the amount of its product sales that may be returned by its Customers and records this estimate as a reduction of revenue in the period the related product revenue is recognized. There is inherent judgment in estimating future refunds as they are susceptible to factors outside of our influence. However, we have significant experience in estimating the amount of refunds, based primarily on historical data. Our refund liability for product returns was $10.6 million at April 30, 2019 which is included in Accrued liabilities on our Condensed Consolidated Balance Sheets and represents the expected value of the aggregate refunds that will be due to our customers. Rebates and Chargebacks Rebates are estimated based on contractual terms, historical experience, customer mix, trend analysis and projected market conditions in the various markets served. Chargebacks for fees and discounts to providers represent the estimated obligations resulting from contractual commitments to sell products to qualified healthcare providers at prices lower than the list wholesale prices charged to the Company’s direct customers. For certain office and surgical products in CooperSurgical, customers charge the Company for the difference between what they pay for the product and the ultimate selling price to the qualified healthcare providers. These reserves are established in the same period that the related revenue is recognized, resulting in a reduction of product revenue. Chargeback amounts are generally determined at the time of resale to the qualified healthcare provider by Customers. CooperSurgical rebates are predominately related to the Medicaid rebate provision that is estimated based upon contractual terms, historical experience, and trend analysis. Contract balances The timing of billing and revenue recognition primarily occurs simultaneously. The Company does not have material contract assets or liabilities. |
Acquisitions
Acquisitions | 6 Months Ended |
Apr. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions The following is a summary of the allocation of the total purchase consideration for business and asset acquisitions that the Company completed during fiscal 2019 and 2018: (In millions) April 30, 2019 October 31, 2018 Technology $ 10.0 $ — Customer relationships 7.5 23.5 Trademarks 9.7 100.0 Composite intangible asset — 1,061.9 Other — 4.2 Total identifiable intangible assets $ 27.2 $ 1,189.6 Goodwill 35.8 70.6 Net tangible assets 1.3 59.6 Total purchase price $ 64.3 $ 1,319.8 All the acquisitions were funded by cash generated from operations or facility borrowings. For business acquisitions, we recorded the tangible and intangible assets acquired and liabilities assumed at their fair values as of the applicable date of acquisition. For assets acquisitions, we recorded the tangible and intangible assets acquired and liabilities assumed at their estimated and relative fair values as of the applicable date of acquisition. We believe these acquisitions strengthen CooperSurgical's and CooperVision's businesses through the addition of new or complementary products and services. Fiscal Year 2019 On December 31, 2018, CooperSurgical completed the acquisition of Incisive Surgical Inc., a privately-held U.S. medical device company that develops mechanical surgical solutions for skin closure. The purchase price allocation is preliminary and we are in the process of finalizing information primarily related to taxes and the corresponding impact on goodwill. On December 28, 2018, CooperVision completed the acquisition of Blanchard Contact Lenses. Blanchard is a privately-held scleral lens company, which expands CooperVision's specialty and scleral lens portfolio. The purchase price allocation is preliminary and we are in the process of finalizing information primarily related to accrued liabilities, other assets, taxes and the corresponding impact on goodwill. The pro forma results of operations of these acquisitions have not been presented because the effects of the business combinations described above, individually and in the aggregate, were not material to our consolidated results of operations. Fiscal Year 2018 PARAGARD On November 1, 2017, CooperSurgical acquired the assets of the PARAGARD Intrauterine Device (IUD) business (PARAGARD) from Teva Pharmaceuticals Industries Limited for $1.1 billion . This asset acquisition broadened and strengthened CooperSurgical's product portfolio. PARAGARD ® is the only hormone-free, long lasting, reversible contraceptive approved by the United States Food and Drug Administration (FDA) available in the United States. The following table summarizes the relative fair values of net assets acquired and liabilities assumed using the cost accumulation and allocation model: (In millions) Relative Fair Value Composite intangible asset (1) $ 1,061.9 Assembled workforce intangible asset (2) 1.2 Property, plant and equipment 2.0 Inventory (3) 47.3 Other assets 9.4 Total assets acquired $ 1,121.8 Less: liabilities assumed 16.4 Total Purchase Price $ 1,105.4 The Company proportionally allocated the acquisition costs to the net assets acquired. The acquisition-related costs included advisory, legal, valuation and other professional fees. (1) Composite Intangible asset consists of technology, trade name, New Drug Application (NDA) approval and physician relationships, which have been valued as a single composite intangible asset as they are inextricably linked. The composite asset was identified as the primary asset acquired, was valued using the Multi-Period Excess Earnings Method and will be amortized over 15 years . (2) An assembled workforce was recognized as a separate acquired intangible asset, given the purchase of assets and will be amortized over 5 years . (3) Inventory relative fair value includes step up of $45.4 million . Other Acquisitions On April 3, 2018, CooperSurgical completed the acquisition of The LifeGlobal Group (LifeGlobal). LifeGlobal was a privately held company that specializes primarily in in-vitro fertilization (IVF) media. LifeGlobal’s product categories include media products as well as IVF laboratory air filtration products and dishware. We have completed the purchase price allocation for this acquisition. On January 4, 2018, CooperVision acquired Blueyes Ltd, a long-standing distribution partner, with a leading position in the distribution of contact lenses to the Optical and Pharmacy sector in Israel. We have completed the purchase price allocation for this acquisition. On December 1, 2017, CooperVision acquired Paragon Vision Sciences, a leading provider of orthokeratology (ortho-k) specialty contact lenses and oxygen permeable rigid contact lens materials. Ortho-k contact lenses are overnight lenses which enable corneal topography correction for myopia (nearsightedness) patients. We have completed the purchase price allocation for this acquisition. |
Inventories
Inventories | 6 Months Ended |
Apr. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories (In millions) April 30, 2019 October 31, 2018 Raw materials $ 122.6 $ 112.5 Work-in-process 12.3 12.6 Finished goods 358.2 343.7 $ 493.1 $ 468.8 Inventories are stated at the lower of cost and net realizable value. Cost is computed using standard cost that approximates actual cost, on a first-in, first-out basis. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Apr. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Goodwill (In millions) CooperVision CooperSurgical Total Balance at October 31, 2017 $ 1,735.7 $ 619.1 $ 2,354.8 Net additions during the year ended October 31, 2018 36.8 34.4 71.2 Translation (29.6 ) (4.3 ) (33.9 ) Balance at October 31, 2018 1,742.9 649.2 2,392.1 Net additions during the six months ended April 30, 2019 13.8 22.0 35.8 Translation 11.2 (0.6 ) 10.6 Balance at April 30, 2019 $ 1,767.9 $ 670.6 $ 2,438.5 During the three months ended April 30, 2019, there was a change in the reporting units as a result of realignment in the internal reporting structure of the business around markets and customers at CooperSurgical. As such, Cooper Surgical has evolved into two reporting units, namely, Office/Surgical and Fertility, which reflects management oversight of operations. These reporting units, including CooperVision, will be tested for potential goodwill impairment annually as of the third quarter of each fiscal year. The change in reporting units did not result in a change in operating segments. We allocated CooperSurgical's goodwill based on relative fair values utilizing the discounted cash flow method and guideline public company method as our allocation base, and the allocated fair values exceeded the carrying values for each of the three reporting units as of April 30, 2019. The Company evaluates goodwill for impairment annually during the fiscal third quarter and when an event occurs, or circumstances change such that it is reasonably possible that impairment may exist. The Company accounts for goodwill and evaluates its goodwill balances and tests them for impairment in accordance with related accounting standards. The Company performs impairment tests of goodwill at the reporting unit level, which is one level below operating segments. Reporting units are identified as components for which discrete financial information is available and is regularly reviewed by management. Under the impairment test, if a reporting unit’s carrying amount exceeds its estimated fair value, goodwill impairment is recognized to the extent that the carrying amount of goodwill exceeds the fair value of the goodwill. The Company performed its annual impairment assessment in its third quarters of fiscal 2018 and fiscal 2017 respectively, and its analysis indicated that the Company had no impairment of goodwill. Other Intangible Assets April 30, 2019 October 31, 2018 (In millions) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Weighted Average Amortization Period (In years) Intangible assets with definite lives: Trademarks $ 147.8 $ 22.0 $ 138.1 $ 16.9 14 Composite intangible asset 1,061.9 106.1 1,061.9 70.8 15 Technology 397.9 206.1 387.2 190.7 11 Customer relationships 357.7 181.3 350.0 168.6 13 License and distribution rights and other (1) 67.3 51.9 74.9 52.7 7 2,032.6 $ 567.4 2,012.1 $ 499.7 14 Less: accumulated amortization and translation 567.4 499.7 Intangible assets with definite lives, net 1,465.2 1,512.4 Intangible assets with indefinite lives, net (2) 8.9 8.9 Total other intangible assets, net $ 1,474.1 $ 1,521.3 (1) In the second quarter of fiscal 2019, CooperSurgical sold an exclusive distribution right to distribute Filshie Clip System in the U.S. for $21.0 million and recognized a gain of $19.0 million . (2) Intangible assets with indefinite lives include trademark and technology intangible assets. Balances include foreign currency translation adjustments. As of April 30, 2019, the estimation of amortization expenses for intangible assets with definite lives is as follows: Fiscal years: (In millions) Remainder of 2019 $ 71.8 2020 135.5 2021 134.2 2022 132.4 2023 130.1 Thereafter 861.2 Total remaining amortization for intangible assets with definite lives $ 1,465.2 |
Debt
Debt | 6 Months Ended |
Apr. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt (In millions) April 30, 2019 October 31, 2018 Overdraft and other credit facilities $ 54.7 $ 37.1 Term loans 400.0 — Less: unamortized debt issuance cost (0.1 ) — Short-term Debt $ 454.6 $ 37.1 Revolving credit $ — $ 439.0 Term loans 1,475.0 1,550.0 Other 0.2 0.2 Less: unamortized debt issuance cost (2.9 ) (3.5 ) Long-term Debt $ 1,472.3 $ 1,985.7 Total Debt $ 1,926.9 $ 2,022.8 $400 million Term Loan on November 1, 2018 On November 1, 2018, the Company entered into a 364 -day, $400.0 million , senior unsecured term loan agreement by and among the Company, the lenders party thereto and PNC Bank, National Association, as administrative agent which matures on October 31, 2019 (the 2018 Term Loan Agreement). The Company used the funds to partially repay outstanding borrowings under the 2016 Revolving Credit Facility. At April 30, 2019 , we had $400.0 million outstanding under the 2018 Term Loan Agreement. Amounts outstanding under the 2018 Term Loan Agreement will bear interest, at the Company's option, at either the base rate, or the adjusted LIBO rate (each as defined in the 2018 Term Loan Agreement), plus, in each case, an applicable rate of 0.00% in respect of base rate loans and 0.60% in respect of adjusted LIBO rate loans. The weighted average interest rate for the three months and six months ended April 30, 2019 were 3.10% and 3.04% , respectively. The 2018 Term Loan Agreement contains customary restrictive covenants, as well as financial covenants that require the Company to maintain a certain Total Leverage Ratio and Interest Coverage Ratio (each as defined in the 2018 Term Loan Agreement) consistent with the 2016 Credit Agreement discussed below. $1.425 billion Term Loan on November 1, 2017 On November 1, 2017, in connection with the PARAGARD acquisition, we entered into a five -year, $1.425 billion , senior unsecured term loan agreement (the 2017 Term Loan Agreement) by and among the Company, the lenders party thereto and DNB Bank ASA, New York Branch, as administrative agent which matures on November 1, 2022. The Company used part of the facility to fund the PARAGARD acquisition and used the remainder of the funds to partially repay outstanding borrowings under our revolving credit agreement. Amounts outstanding under the 2017 Term Loan Agreement will bear interest, at our option, at either the base rate, or the adjusted LIBO rate (each as defined in the 2017 Term Loan Agreement), plus, in each case, an applicable rate of, between 0.00% and 0.75% in respect of base rate loans and between 1.00% and 1.75% in respect of adjusted LIBO rate loans, in each case in accordance with a pricing grid tied to the Total Leverage Ratio as defined in the 2017 Term Loan Agreement. The 2017 Term Loan Agreement contains customary restrictive covenants, as well as financial covenants that require the Company to maintain a certain Total Leverage Ratio and Interest Coverage Ratio (each as defined in the 2017 Term Loan Agreement) consistent with the 2016 Credit Agreement discussed below. At April 30, 2019 , we had $1.425 billion outstanding under the 2017 Term Loan Agreement. Revolving Credit and Term Loan Agreement on March 1, 2016 On March 1, 2016 , we entered into a Revolving Credit and Term Loan Agreement (the 2016 Credit Agreement), among the Company, CooperVision International Holding Company, LP, the lenders party thereto and KeyBank National Association, as administrative agent. The 2016 Credit Agreement provides for a multicurrency revolving credit facility in an aggregate principal amount of $1.0 billion (the 2016 Revolving Credit Facility) and a term loan facility in an aggregate principal amount of $830.0 million (the 2016 Term Loan Facility), each of which, unless terminated earlier, mature on March 1, 2021 . In addition, we have the ability from time to time to request an increase to the size of the 2016 Revolving Credit Facility or establish one or more new term loans under the 2016 Term Loan Facility in an aggregate amount up to $750.0 million , subject to the discretionary participation of the lenders. Amounts outstanding under the 2016 Credit Agreement will bear interest, at our option, at either the base rate, or the adjusted LIBO rate or adjusted foreign currency rate (each as defined in the 2016 Credit Agreement), plus, in each case, an applicable rate of between 0.00% and 0.75% in respect of base rate loans and between 1.00% and 1.75% in respect of adjusted LIBO rate or adjusted foreign currency rate loans, in each case in accordance with a pricing grid tied to the Total Leverage Ratio, as defined in the 2016 Credit Agreement. We pay an annual commitment fee that ranges from 0.125% to 0.25% of the unused portion of the 2016 Revolving Credit Facility depending on certain financial ratios. In addition to the annual commitment fee described above, we are also required to pay certain letter of credit and related fronting fees and other administrative fees pursuant to the terms of the 2016 Credit Agreement. At April 30, 2019 , we had $50.0 million outstanding under the 2016 Term Loan Facility and $999.5 million available under the 2016 Revolving Credit Facility. The 2016 Credit Agreement contains customary restrictive covenants, as well as financial covenants that require us to maintain a certain Total Leverage Ratio and Interest Coverage Ratio (each as defined in the 2016 Credit Agreement): • Interest Coverage Ratio, as defined, to be at least 3.00 to 1.00 at all times. • Total Leverage Ratio, as defined, to be no higher than 3.75 to 1.00 . At April 30, 2019 , we were in compliance with the Interest Coverage Ratio at 11.17 to 1.00 and the Total Leverage Ratio at 1.99 to 1.00 for 2018 Term Loan Agreement, the 2017 Term Loan Agreement, and the 2016 Credit Agreement. The interest rate on the 2017 and 2016 term loans was 3.75% at April 30, 2019. Refer to our Annual Report on Form 10-K for the fiscal year ended October 31, 2018 for more details. |
Income Taxes
Income Taxes | 6 Months Ended |
Apr. 30, 2019 | |
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | |
Income Taxes | Income Taxes Recent Tax Legislation The 2017 Act was enacted into law on December 22, 2017 and significantly changes existing U.S. tax law. The 2017 Act adopts a territorial tax system, imposes a mandatory one-time transition tax on earnings of foreign subsidiaries that were previously indefinitely reinvested, and reduces the U.S. federal statutory tax rate from 35% to 21%. For second quarter of fiscal 2019, the Company has utilized the enacted U.S. federal statutory tax rate of 21%. The 2017 Act includes several provisions that are effective for our fiscal 2019: (i) tax on global intangible low-taxed income (GILTI) of foreign subsidiaries, (ii) tax on certain payments between a U.S. corporation and its foreign subsidiaries referred to as the base erosion and anti-abuse tax (BEAT), (iii) limitation on the tax deduction for interest payments, and (iv) expanded limitation on the tax deduction for compensation paid to certain executives. The 2017 Act was effective in the first quarter of fiscal 2018. During the first quarter of fiscal 2019, we recorded tax benefit of $4.4 million in our financial statements to finalize the tax effects of the 2017 Act pursuant to SAB 118. The Company is no longer asserting that earnings from our foreign subsidiaries are indefinitely reinvested. The 2017 Act imposes a new tax on foreign earnings and profits in excess of a deemed return on tangible assets of foreign subsidiaries referred to as GILTI which is effective in fiscal 2019. In accordance with FASB Staff Q&A, Topic 740, No. 5, Accounting for Global Intangible Low-Taxed Income , the Company made an accounting policy election to recognize the tax expense related to GILTI in the year the tax is incurred. Effective Tax Rate The Company's effective tax rates were an expense of 4.5% and a benefit of 12.9% for the second quarters of fiscal 2019 and fiscal 2018, respectively, and a benefit of 1.7% and an expense of 147.8% for the first six months of fiscal 2019 and 2018, respectively. The increase in our effective tax rate for the second quarter of fiscal 2019 compared to fiscal 2018 was primarily due to the inclusion of earnings from our foreign subsidiaries pursuant to the GILTI provisions that became effective in fiscal 2019. The decrease in our effective tax rate for the first six months of fiscal 2019 compared to fiscal 2018 was primarily due to the provisional charge of $202.0 million relating to the 2017 Act that was recorded in the first quarter of fiscal 2018. Our effective tax rate for the first six months of fiscal 2019 was lower than the U.S. statutory rate because of discrete tax benefits and a favorable mix of income from our foreign jurisdictions with lower tax rates. Total discrete tax benefits for the first six months of fiscal 2019 were $23.1 million primarily relating to settlement of tax audits, revisions to the provisional tax charges relating to the 2017 Act, and excess tax benefits from share-based compensation. Our effective tax rate for the first six months of fiscal 2018 was higher than the U.S. statutory rate because of the discrete tax expense relating to the 2017 Act, which was partially offset by a favorable mix of income from our foreign jurisdictions with lower tax rates and an excess tax benefit from share-based compensation. We recognize the benefit from a tax position only if it is more likely than not that the position would be sustained upon audit based solely on the technical merits of the tax position. As of April 30, 2019, and October 31, 2018, Cooper had unrecognized tax benefits of $49.1 million and $68.9 million , respectively. The decrease is primarily related to settling prior year tax audits, partially offset by additions to current period transfer pricing reserves. It is our policy to recognize interest and penalties directly related to income taxes as additional income tax expense. It is reasonably possible that $3.1 million of unrecognized tax benefits could be settled during the next twelve months. The Company is subject to U.S. Federal income tax examinations for fiscal 2015 through 2018 and the Internal Revenue Service is currently auditing our U.S. Consolidated Corporation Income Tax Returns for fiscal 2015 and 2016. The Company remains subject to income tax examinations in other significant tax jurisdictions including the United Kingdom, Japan, France and Australia for the tax years 2015 through 2018. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Apr. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings (Loss) Per Share Periods Ended April 30, Three Months Six Months (In millions, except per share amounts) 2019 2018 2019 2018 Net income (loss) $ 122.4 $ 60.9 $ 225.5 $ (61.6 ) Basic: Weighted average common shares 49.4 49.1 49.3 49.0 Basic earnings (loss) per share $ 2.48 $ 1.24 $ 4.57 $ (1.26 ) Diluted: Weighted average common shares 49.4 49.1 49.3 49.0 Effect of potential dilutive shares 0.6 0.5 0.6 — Diluted weighted average common shares* 50.0 49.6 49.9 49.0 Diluted earnings (loss) per share attributable to Cooper stockholders $ 2.45 $ 1.23 $ 4.52 $ (1.26 ) *The number of diluted weighted average common shares used to calculate fiscal 2018 six months diluted loss per share excludes all potentially dilutive instrument because they would be antidilutive due to the net loss position. The following table sets forth stock options to purchase Cooper’s common stock and restricted stock units that were not included in the diluted earnings per share calculation because their effect would have been antidilutive for the periods presented: Periods Ended April 30, Three Months Six Months (In thousands, except exercise prices) 2019 2018 2019 2018 Number of stock option shares excluded 198 199 322 1,145 Range of exercise prices $ 254.77 $ 229.66 $226.30-$254.77 $15.83-$229.66 Numbers of restricted stock units excluded 25 81 26 575 |
Share-Based Compensation Plans
Share-Based Compensation Plans | 6 Months Ended |
Apr. 30, 2019 | |
Share-based Compensation [Abstract] | |
Share-Based Compensation Plans | Share-Based Compensation Plans Cooper has several share-based compensation plans that are described in the Company’s Annual Report on Form 10‑K for the fiscal year ended October 31, 2018 . The compensation expense and related income tax benefit recognized in our consolidated condensed financial statements for share-based awards were as follows: Periods Ended April 30, Three Months Six Months (In millions) 2019 2018 2019 2018 Selling, general and administrative expense $ 6.1 $ 12.8 $ 15.3 $ 23.6 Cost of sales 1.4 0.3 2.9 1.6 Research and development expense 0.9 0.5 1.9 1.1 Total share-based compensation expense $ 8.4 $ 13.6 $ 20.1 $ 26.3 Related income tax benefit $ 1.1 $ 3.1 $ 2.9 $ 5.6 Employee Stock Purchase Plan On March 18, 2019, the Company received stockholder approval of the Employee Stock Purchase Plan (“ESPP”). The first offering period is for U.S. employees and is expected to begin on November 4, 2019. The purpose of the ESPP is to provide eligible employees of the Company with the opportunity to acquire shares of common stock at 85% of the market price on the last business day of each offering period by means of accumulated payroll deductions. Payroll deductions will be limited to maximum of 15% of the employee’s eligible compensation, not to exceed $21,250 in any one calendar year. The ESPP would initially authorize the issuance of 1,000,000 shares of common stock. These shares will be made available from shares of common stock reacquired by the Company as Treasury Stock. At April 30, 2019, there were approximately 3.6 million Treasury shares. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Apr. 30, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Analysis of Changes in Accumulated Other Comprehensive (Loss) Income: (In millions) Foreign Currency Translation Adjustment Minimum Pension Liability Total Balance at October 31, 2017 $ (353.7 ) $ (21.6 ) $ (375.3 ) Gross change in value during the year ended October 31, 2018 (58.5 ) 11.0 (47.5 ) Tax effect for the period — (3.1 ) (3.1 ) ASU 2018-02 adoption (1) — (4.8 ) (4.8 ) Balance at October 31, 2018 $ (412.2 ) $ (18.5 ) $ (430.7 ) Gross change in value during the six months ended April 30, 2019 14.1 — 14.1 Balance at April 30, 2019 $ (398.1 ) $ (18.5 ) $ (416.6 ) (1) Represents reclassification to retained earnings from adoption of ASU 2018-02. Refer to our Annual Report on Form 10-K for the fiscal year ended October 31, 2018 for more details. Share Repurchases In December 2011, our Board of Directors authorized the 2012 Share Repurchase Program and through subsequent amendments, the most recent in March 2017, the total repurchase authorization was increased from $500.0 million to $1.0 billion of the Company's common stock. This program has no expiration date and may be discontinued at any time. Purchases under the 2012 Share Repurchase Program are subject to a review of the circumstances in place at the time and may be made from time to time as permitted by securities laws and other legal requirements. We did no t repurchase shares in the second quarter of fiscal 2019. During the first quarter of fiscal 2019, we repurchased 24.5 thousand shares of the Company's common stock for $6.1 million , at an average purchase price of $248.70 per share. We did no t repurchase shares during the fiscal year ended October 31, 2018. At April 30, 2019 , $557.4 million remains authorized for repurchase under the program. Dividends We paid a semiannual dividend of approximately $1.5 million or 3 cents per share on February 8, 2019, to stockholders of record on January 22, 2019 . |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Apr. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value. An asset’s or liability’s level is based on the lowest level of input that is significant to the fair value measurement. Assets and liabilities carried at fair value are valued and disclosed in one of the following three levels of the valuation hierarchy: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs reflecting the reporting entity’s own assumptions. At April 30, 2019 and October 31, 2018 , the carrying value of cash and cash equivalents, accounts receivable, prepaid expense and other current assets, lines of credit, accounts payable and other current liabilities approximate fair value due to the short-term nature of such instruments and the ability to obtain financing on similar terms. The carrying value of our revolving credit facility and term loans approximates fair value estimated based on current market rates (Level 2). The Company did not have any derivative assets or liabilities that may include interest rate swaps, cross currency swaps or foreign currency forward contracts as of April 30, 2019 and October 31, 2018 . Nonrecurring fair value measurements The Company uses fair value measures when determining assets and liabilities acquired in an acquisition as described in Note 3. Acquisitions which are considered a Level 3 measurement. The Company also used fair value measures to allocate goodwill upon the split of our reporting units as discussed in Note 5. Intangible Assets which was considered a Level 3 measurement. |
Employee Benefits
Employee Benefits | 6 Months Ended |
Apr. 30, 2019 | |
Retirement Benefits, Description [Abstract] | |
Employee Benefits | Employee Benefits Cooper’s Retirement Income Plan (the Plan), a defined benefit plan, covers substantially all full-time United States employees. Our contributions are designed to fund normal cost on a current basis and to fund the estimated prior service cost of benefit improvements. The unit credit actuarial cost method is used to determine the annual cost. Cooper pays the entire cost of the Plan and funds such costs as they accrue. Virtually all of the assets of the Plan are comprised of equities and participation in equity and fixed income funds. Our results of operations for the three and six months ended April 30, 2019 and 2018 , reflect the following components of net periodic pension costs: Periods Ended April 30, Three Months Six Months (In millions) 2019 2018 2019 2018 Service cost $ 2.7 $ 2.7 $ 5.4 $ 5.4 Interest cost 1.3 1.3 2.5 2.5 Expected return on plan assets (2.3 ) (2.3 ) (4.6 ) (4.6 ) Recognized net actuarial loss 0.4 0.4 0.8 0.8 Net periodic pension cost $ 2.1 $ 2.1 $ 4.1 $ 4.1 We contributed $2.5 million to the Plan in the first half of fiscal 2019 and expect to contribute $7.5 million during the remainder of fiscal 2019. We contributed $2.5 million to the Plan in the first half of fiscal 2018. The expected rate of return on Plan assets for determining net periodic pension cost is 8% . |
Contingencies
Contingencies | 6 Months Ended |
Apr. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Since March 2015, over 50 putative class action complaints were filed by contact lens consumers alleging that contact lens manufacturers, in conjunction with their respective Unilateral Pricing Policy (UPP), conspired to reach agreements between each other and certain distributors and retailers regarding the prices at which certain contact lenses could be sold to consumers. The plaintiffs are seeking damages against CooperVision, Inc., other contact lens manufacturers, distributors and retailers, in various courts around the United States. In June 2015, all of the class action cases were consolidated and transferred to the United States District Court for the Middle District of Florida. In August 2017, CooperVision entered into a settlement agreement with the plaintiffs, without any admission of liability, to settle all claims against CooperVision. In July 2018, the Court approved the plaintiffs’ motion for preliminary approval of the settlement, and the Company paid the $3.0 million settlement amount into an escrow account. The settlement remains subject to final Court approval at a future hearing to be set by the Court. The Company is involved in various lawsuits, claims and other legal matters from time to time that arise in the ordinary course of conducting business, including matters involving our products, intellectual property, supplier relationships, distributors, competitor relationships, employees and other matters. The Company does not believe that the ultimate resolution of these proceedings or claims pending against it could have a material adverse effect on its financial condition or results of operations. At each reporting period, the Company evaluates whether or not a potential loss amount or a potential range of loss is probable and reasonably estimable under ASC 450, Contingencies . Legal fees are expensed as incurred. |
Business Segment Information
Business Segment Information | 6 Months Ended |
Apr. 30, 2019 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information Cooper uses operating income, as presented in our financial reports, as the primary measure of segment profitability. We do not allocate costs from corporate functions to segment operating income. Items below operating income are not considered when measuring the profitability of a segment. We use the same accounting policies to generate segment results as we do for our consolidated results. Total identifiable assets are those used in continuing operations except cash and cash equivalents, which we include as corporate assets. Segment information: Periods Ended April 30, Three Months Six Months (In millions) 2019 2018 2019 2018 CooperVision net sales by category: Toric lens $ 155.3 $ 150.8 301.3 288.6 Multifocal lens 49.7 49.1 98.7 96.1 Single-use sphere lens 135.3 124.4 267.3 240.7 Non single-use sphere and other 143.9 143.2 287.0 286.9 Total CooperVision net sales 484.2 467.5 954.3 912.3 CooperSurgical net sales by category: Office and surgical procedures 105.7 97.9 201.4 186.0 Fertility 64.4 65.9 126.7 123.0 CooperSurgical net sales 170.1 163.8 328.1 309.0 Total net sales $ 654.3 $ 631.3 $ 1,282.4 $ 1,221.3 Operating income: CooperVision $ 125.5 $ 123.5 $ 241.7 $ 235.8 CooperSurgical 31.1 (29.8 ) 38.3 (39.2 ) Corporate (9.7 ) (19.0 ) (22.2 ) (31.8 ) Total operating income 146.9 74.7 257.8 164.8 Interest expense 18.5 18.7 36.6 37.1 Other expense (income), net 0.3 2.0 (0.7 ) (1.1 ) Income before income taxes $ 128.1 $ 54.0 $ 221.9 $ 128.8 (In millions) April 30, 2019 October 31, 2018 Total identifiable assets: CooperVision $ 3,833.3 $ 3,746.0 CooperSurgical 2,191.4 2,201.7 Corporate 178.7 165.1 Total $ 6,203.4 $ 6,112.8 Geographic information: Periods Ended April 30, Three Months Six Months (In millions) 2019 2018 2019 2018 Net sales to unaffiliated customers by country of domicile: United States $ 305.9 $ 293.2 $ 584.9 $ 554.6 Europe 209.5 210.4 419.2 413.8 Rest of world 138.9 127.7 278.3 252.9 Total $ 654.3 $ 631.3 $ 1,282.4 $ 1,221.3 (In millions) April 30, 2019 October 31, 2018 Net property, plant and equipment by country of domicile: United States $ 558.7 $ 516.7 Europe 345.6 340.7 Rest of world 128.4 118.6 Total $ 1,032.7 $ 976.0 |
General (Policies)
General (Policies) | 6 Months Ended |
Apr. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Accounting Pronouncements Issued Not Yet Adopted and Accounting Pronouncements Recently Adopted | Accounts Receivable Factoring Program We may factor certain designated trade receivables with one or more third party financial institutions pursuant to a factoring agreement. These are non-recourse factoring arrangements to assist us in managing operating cash flow and meet the requirements to be accounted for as sales in accordance with the “Transfers and Servicing” guidance in ASC 860, where the Company’s continuing involvement subsequent to the transfer is limited to providing certain servicing and collection actions on behalf of the purchasers of the designated trade receivables. Proceeds from amounts factored by the Company are recorded as an increase to cash and a reduction to accounts receivable outstanding in the Company's Consolidated Balance Sheets. Cash flows attributable to factoring are reflected as cash flows from operating activities in the Company’s Consolidated Statements of Cash Flows. Factoring fees associated with the sale of factored receivables for the three and six months ended April 30, 2019 were $0.5 million and $0.9 million respectively and were minimal for the three and six months ended April 30, 2018. |
Revenue Recognition | Product Revenue, Net The Company sells its products principally to a limited number of distributors, group purchasing organizations, eye care or health care professionals including independent practices, corporate retailers, hospitals and clinics or authorized resellers (collectively, its Customers). These Customers subsequently resell the Company’s products to eye care or health care providers and patients. In addition to product supply and distribution agreements with Customers, the Company enters into arrangements with health care providers and payors that provide for government-mandated and/or privately-negotiated rebates, chargebacks and discounts with respect to the purchase of the Company’s products. The Company considers customer purchase orders, which in some cases are governed by master sales agreements, to be contracts with a customer. In situations where sales are to a distributor, the Company has concluded that its contracts are with the distributor. As part of its consideration of the contract, the Company evaluates certain factors including the customer’s ability to pay (or credit risk). For each contract, the Company considers the promise to transfer products, each of which is distinct, to be the identified performance obligations. Revenues from product sales are recognized when the Customer obtains control of the Company’s product, which occurs at a point in time, typically upon shipment or delivery to the Customer. When the Company performs shipping and handling activities after the transfer of control to the Customer (e.g., when control transfers prior to delivery), they are considered as fulfillment activities, and accordingly, the costs are accrued for when the related revenue is recognized. Taxes collected from Customers relating to product sales and remitted to governmental authorities are excluded from revenues. The Company does not have any revenue recognized on payment expected to be received more than one year after the transfer of control of the products. The Company expenses incremental costs of obtaining a contract as and when incurred if the expected amortization period of the asset that the Company would have recognized is one year or less. See Note14. Business Segment Information, for disaggregation of revenue. Reserves for Variable Consideration Revenues from product sales are recorded at the net sales price (transaction price), which includes estimates of variable consideration for which reserves are established and which result from discounts, returns, chargebacks, rebates and other allowances that are offered within contracts between the Company and its Customers, health care providers, payors and other indirect customers relating to the Company’s sales of its products. These reserves are based on the amounts earned or to be claimed on the related sales and are classified primarily in current liability. Variable consideration is estimated based on the most likely amount or expected value approach, depending on which method the Company expects to better predict the amount of consideration to which it will be entitled. Once the Company elects one of the methods to estimate variable consideration for a particular type of performance obligation, the Company applies that method consistently. Where appropriate, these estimates take into consideration a range of possible outcomes which are probability-weighted for relevant factors such as the Company’s historical experience, current contractual and statutory requirements, specific known market events and trends, industry data and forecasted customer buying and payment patterns. Overall, these reserves reflect the Company’s best estimates of the amount of consideration to which it is entitled based on the terms of the contract. Actual amounts of consideration ultimately received may differ from the Company’s estimates. If actual results in the future vary from the Company’s estimates, the Company adjusts these estimates, which would affect net product revenue and earnings in the period such variances become known. Trade Discounts and Allowances The Company generally provides Customers with discounts, which include incentive fees that are stated in the Company’s contracts and are recorded as a reduction of revenue in the period the related product revenue is recognized. In addition, the Company receives sales order management, data and distribution services from certain Customers. To the extent the services received are distinct from the Company’s sale of products to the Customer and have readily determinable fair value, these payments are classified in selling, general and administrative expenses in the consolidated statements of income of the Company. Product Returns Consistent with industry practice, the Company generally offers Customers a limited right of return for a product that has been purchased from the Company. The Company estimates the amount of its product sales that may be returned by its Customers and records this estimate as a reduction of revenue in the period the related product revenue is recognized. There is inherent judgment in estimating future refunds as they are susceptible to factors outside of our influence. However, we have significant experience in estimating the amount of refunds, based primarily on historical data. Our refund liability for product returns was $10.6 million at April 30, 2019 which is included in Accrued liabilities on our Condensed Consolidated Balance Sheets and represents the expected value of the aggregate refunds that will be due to our customers. Rebates and Chargebacks Rebates are estimated based on contractual terms, historical experience, customer mix, trend analysis and projected market conditions in the various markets served. Chargebacks for fees and discounts to providers represent the estimated obligations resulting from contractual commitments to sell products to qualified healthcare providers at prices lower than the list wholesale prices charged to the Company’s direct customers. For certain office and surgical products in CooperSurgical, customers charge the Company for the difference between what they pay for the product and the ultimate selling price to the qualified healthcare providers. These reserves are established in the same period that the related revenue is recognized, resulting in a reduction of product revenue. Chargeback amounts are generally determined at the time of resale to the qualified healthcare provider by Customers. CooperSurgical rebates are predominately related to the Medicaid rebate provision that is estimated based upon contractual terms, historical experience, and trend analysis. Contract balances The timing of billing and revenue recognition primarily occurs simultaneously. The Company does not have material contract assets or liabilities. |
Acquisitions Acquisitions (Tabl
Acquisitions Acquisitions (Tables) | 6 Months Ended |
Apr. 30, 2019 | |
Business Combinations [Abstract] | |
Schedule of Acquisitions | The following table summarizes the relative fair values of net assets acquired and liabilities assumed using the cost accumulation and allocation model: (In millions) Relative Fair Value Composite intangible asset (1) $ 1,061.9 Assembled workforce intangible asset (2) 1.2 Property, plant and equipment 2.0 Inventory (3) 47.3 Other assets 9.4 Total assets acquired $ 1,121.8 Less: liabilities assumed 16.4 Total Purchase Price $ 1,105.4 The Company proportionally allocated the acquisition costs to the net assets acquired. The acquisition-related costs included advisory, legal, valuation and other professional fees. (1) Composite Intangible asset consists of technology, trade name, New Drug Application (NDA) approval and physician relationships, which have been valued as a single composite intangible asset as they are inextricably linked. The composite asset was identified as the primary asset acquired, was valued using the Multi-Period Excess Earnings Method and will be amortized over 15 years . (2) An assembled workforce was recognized as a separate acquired intangible asset, given the purchase of assets and will be amortized over 5 years . (3) Inventory relative fair value includes step up of $45.4 million . The following is a summary of the allocation of the total purchase consideration for business and asset acquisitions that the Company completed during fiscal 2019 and 2018: (In millions) April 30, 2019 October 31, 2018 Technology $ 10.0 $ — Customer relationships 7.5 23.5 Trademarks 9.7 100.0 Composite intangible asset — 1,061.9 Other — 4.2 Total identifiable intangible assets $ 27.2 $ 1,189.6 Goodwill 35.8 70.6 Net tangible assets 1.3 59.6 Total purchase price $ 64.3 $ 1,319.8 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Apr. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | (In millions) April 30, 2019 October 31, 2018 Raw materials $ 122.6 $ 112.5 Work-in-process 12.3 12.6 Finished goods 358.2 343.7 $ 493.1 $ 468.8 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Apr. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Goodwill (In millions) CooperVision CooperSurgical Total Balance at October 31, 2017 $ 1,735.7 $ 619.1 $ 2,354.8 Net additions during the year ended October 31, 2018 36.8 34.4 71.2 Translation (29.6 ) (4.3 ) (33.9 ) Balance at October 31, 2018 1,742.9 649.2 2,392.1 Net additions during the six months ended April 30, 2019 13.8 22.0 35.8 Translation 11.2 (0.6 ) 10.6 Balance at April 30, 2019 $ 1,767.9 $ 670.6 $ 2,438.5 |
Schedule of Other Intangible Assets | Other Intangible Assets April 30, 2019 October 31, 2018 (In millions) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Weighted Average Amortization Period (In years) Intangible assets with definite lives: Trademarks $ 147.8 $ 22.0 $ 138.1 $ 16.9 14 Composite intangible asset 1,061.9 106.1 1,061.9 70.8 15 Technology 397.9 206.1 387.2 190.7 11 Customer relationships 357.7 181.3 350.0 168.6 13 License and distribution rights and other (1) 67.3 51.9 74.9 52.7 7 2,032.6 $ 567.4 2,012.1 $ 499.7 14 Less: accumulated amortization and translation 567.4 499.7 Intangible assets with definite lives, net 1,465.2 1,512.4 Intangible assets with indefinite lives, net (2) 8.9 8.9 Total other intangible assets, net $ 1,474.1 $ 1,521.3 |
Finite-lived Intangible Assets Amortization Expense | As of April 30, 2019, the estimation of amortization expenses for intangible assets with definite lives is as follows: Fiscal years: (In millions) Remainder of 2019 $ 71.8 2020 135.5 2021 134.2 2022 132.4 2023 130.1 Thereafter 861.2 Total remaining amortization for intangible assets with definite lives $ 1,465.2 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Apr. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | (In millions) April 30, 2019 October 31, 2018 Overdraft and other credit facilities $ 54.7 $ 37.1 Term loans 400.0 — Less: unamortized debt issuance cost (0.1 ) — Short-term Debt $ 454.6 $ 37.1 Revolving credit $ — $ 439.0 Term loans 1,475.0 1,550.0 Other 0.2 0.2 Less: unamortized debt issuance cost (2.9 ) (3.5 ) Long-term Debt $ 1,472.3 $ 1,985.7 Total Debt $ 1,926.9 $ 2,022.8 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Apr. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Periods Ended April 30, Three Months Six Months (In millions, except per share amounts) 2019 2018 2019 2018 Net income (loss) $ 122.4 $ 60.9 $ 225.5 $ (61.6 ) Basic: Weighted average common shares 49.4 49.1 49.3 49.0 Basic earnings (loss) per share $ 2.48 $ 1.24 $ 4.57 $ (1.26 ) Diluted: Weighted average common shares 49.4 49.1 49.3 49.0 Effect of potential dilutive shares 0.6 0.5 0.6 — Diluted weighted average common shares* 50.0 49.6 49.9 49.0 Diluted earnings (loss) per share attributable to Cooper stockholders $ 2.45 $ 1.23 $ 4.52 $ (1.26 ) *The number of diluted weighted average common shares used to calculate fiscal 2018 six months diluted loss per share excludes all potentially dilutive instrument because they would be antidilutive due to the net loss position. |
Schedule of Stock Options to Purchase Common Stock Not Included in Diluted Net Income Per Share Calculation | The following table sets forth stock options to purchase Cooper’s common stock and restricted stock units that were not included in the diluted earnings per share calculation because their effect would have been antidilutive for the periods presented: Periods Ended April 30, Three Months Six Months (In thousands, except exercise prices) 2019 2018 2019 2018 Number of stock option shares excluded 198 199 322 1,145 Range of exercise prices $ 254.77 $ 229.66 $226.30-$254.77 $15.83-$229.66 Numbers of restricted stock units excluded 25 81 26 575 |
Share-Based Compensation Plans
Share-Based Compensation Plans (Tables) | 6 Months Ended |
Apr. 30, 2019 | |
Share-based Compensation [Abstract] | |
Schedule of Compensation Expense and Related Income Tax Benefit for Share-Based Awards | The compensation expense and related income tax benefit recognized in our consolidated condensed financial statements for share-based awards were as follows: Periods Ended April 30, Three Months Six Months (In millions) 2019 2018 2019 2018 Selling, general and administrative expense $ 6.1 $ 12.8 $ 15.3 $ 23.6 Cost of sales 1.4 0.3 2.9 1.6 Research and development expense 0.9 0.5 1.9 1.1 Total share-based compensation expense $ 8.4 $ 13.6 $ 20.1 $ 26.3 Related income tax benefit $ 1.1 $ 3.1 $ 2.9 $ 5.6 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Apr. 30, 2019 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Analysis of Changes in Accumulated Other Comprehensive (Loss) Income: (In millions) Foreign Currency Translation Adjustment Minimum Pension Liability Total Balance at October 31, 2017 $ (353.7 ) $ (21.6 ) $ (375.3 ) Gross change in value during the year ended October 31, 2018 (58.5 ) 11.0 (47.5 ) Tax effect for the period — (3.1 ) (3.1 ) ASU 2018-02 adoption (1) — (4.8 ) (4.8 ) Balance at October 31, 2018 $ (412.2 ) $ (18.5 ) $ (430.7 ) Gross change in value during the six months ended April 30, 2019 14.1 — 14.1 Balance at April 30, 2019 $ (398.1 ) $ (18.5 ) $ (416.6 ) (1) Represents reclassification to retained earnings from adoption of ASU 2018-02. Refer to our Annual Report on Form 10-K for the fiscal year ended October 31, 2018 for more details. |
Employee Benefits (Tables)
Employee Benefits (Tables) | 6 Months Ended |
Apr. 30, 2019 | |
Retirement Benefits, Description [Abstract] | |
Schedule of Components of Net Periodic Pension Costs | Our results of operations for the three and six months ended April 30, 2019 and 2018 , reflect the following components of net periodic pension costs: Periods Ended April 30, Three Months Six Months (In millions) 2019 2018 2019 2018 Service cost $ 2.7 $ 2.7 $ 5.4 $ 5.4 Interest cost 1.3 1.3 2.5 2.5 Expected return on plan assets (2.3 ) (2.3 ) (4.6 ) (4.6 ) Recognized net actuarial loss 0.4 0.4 0.8 0.8 Net periodic pension cost $ 2.1 $ 2.1 $ 4.1 $ 4.1 |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
Apr. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | Segment information: Periods Ended April 30, Three Months Six Months (In millions) 2019 2018 2019 2018 CooperVision net sales by category: Toric lens $ 155.3 $ 150.8 301.3 288.6 Multifocal lens 49.7 49.1 98.7 96.1 Single-use sphere lens 135.3 124.4 267.3 240.7 Non single-use sphere and other 143.9 143.2 287.0 286.9 Total CooperVision net sales 484.2 467.5 954.3 912.3 CooperSurgical net sales by category: Office and surgical procedures 105.7 97.9 201.4 186.0 Fertility 64.4 65.9 126.7 123.0 CooperSurgical net sales 170.1 163.8 328.1 309.0 Total net sales $ 654.3 $ 631.3 $ 1,282.4 $ 1,221.3 Operating income: CooperVision $ 125.5 $ 123.5 $ 241.7 $ 235.8 CooperSurgical 31.1 (29.8 ) 38.3 (39.2 ) Corporate (9.7 ) (19.0 ) (22.2 ) (31.8 ) Total operating income 146.9 74.7 257.8 164.8 Interest expense 18.5 18.7 36.6 37.1 Other expense (income), net 0.3 2.0 (0.7 ) (1.1 ) Income before income taxes $ 128.1 $ 54.0 $ 221.9 $ 128.8 |
Schedule of Identifiable Assets by Segment | (In millions) April 30, 2019 October 31, 2018 Total identifiable assets: CooperVision $ 3,833.3 $ 3,746.0 CooperSurgical 2,191.4 2,201.7 Corporate 178.7 165.1 Total $ 6,203.4 $ 6,112.8 |
Schedule of Net Sales to External Customers by Country of Domicile | Geographic information: Periods Ended April 30, Three Months Six Months (In millions) 2019 2018 2019 2018 Net sales to unaffiliated customers by country of domicile: United States $ 305.9 $ 293.2 $ 584.9 $ 554.6 Europe 209.5 210.4 419.2 413.8 Rest of world 138.9 127.7 278.3 252.9 Total $ 654.3 $ 631.3 $ 1,282.4 $ 1,221.3 |
Schedule of Long-Lived Assets by Country of Domicile | (In millions) April 30, 2019 October 31, 2018 Net property, plant and equipment by country of domicile: United States $ 558.7 $ 516.7 Europe 345.6 340.7 Rest of world 128.4 118.6 Total $ 1,032.7 $ 976.0 |
General (Details)
General (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Apr. 30, 2019 | Apr. 30, 2019 | Nov. 01, 2018 | Nov. 01, 2017 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative effect, decrease to retained earnings | $ 13.3 | [1] | $ (4.8) | |||
Factoring fees associated with sale of factored receivables | $ 0.5 | $ 0.9 | ||||
Accounting Standards Update 2016-16 | Retained Earnings | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative effect, decrease to retained earnings | [1] | $ 13.3 | ||||
[1] | We adopted ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory in the first quarter of fiscal 2019. Refer to “Note 1. General" for further information. |
Revenue Recognition (Details)
Revenue Recognition (Details) $ in Millions | Apr. 30, 2019USD ($) |
Revenue from Contract with Customer [Abstract] | |
Refund liability for product returns | $ 10.6 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Millions | Nov. 01, 2017 | Apr. 30, 2019 | Oct. 31, 2018 | Oct. 31, 2017 |
Business Acquisition [Line Items] | ||||
Goodwill (Note 5) | $ 2,438.5 | $ 2,392.1 | $ 2,354.8 | |
Series of Individually Immaterial Business Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Business combination, recognized identifiable assets acquired and liabilities assumed, finite-lived intangibles | 27.2 | 1,189.6 | ||
Net tangible assets | 1.3 | 59.6 | ||
Total purchase consideration | 64.3 | 1,319.8 | ||
Goodwill (Note 5) | 35.8 | 70.6 | ||
Paragard | ||||
Business Acquisition [Line Items] | ||||
Property, plant and equipment | $ 2 | |||
Inventory | 47.3 | |||
Other assets | 9.4 | |||
Total assets acquired | 1,121.8 | |||
Less: liabilities assumed | 16.4 | |||
Net tangible assets | 1,105.4 | |||
Total purchase consideration | 1,100 | |||
Inventory step up | 45.4 | |||
Technology | Series of Individually Immaterial Business Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Business combination, recognized identifiable assets acquired and liabilities assumed, finite-lived intangibles | 10 | 0 | ||
Customer relationships | Series of Individually Immaterial Business Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Business combination, recognized identifiable assets acquired and liabilities assumed, finite-lived intangibles | 7.5 | 23.5 | ||
Trademarks | Series of Individually Immaterial Business Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Business combination, recognized identifiable assets acquired and liabilities assumed, finite-lived intangibles | 9.7 | 100 | ||
Composite intangible asset | Series of Individually Immaterial Business Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Business combination, recognized identifiable assets acquired and liabilities assumed, finite-lived intangibles | 0 | 1,061.9 | ||
Composite intangible asset | Paragard | ||||
Business Acquisition [Line Items] | ||||
Business combination, recognized identifiable assets acquired and liabilities assumed, finite-lived intangibles | $ 1,061.9 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years | |||
Other | Series of Individually Immaterial Business Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Business combination, recognized identifiable assets acquired and liabilities assumed, finite-lived intangibles | $ 0 | $ 4.2 | ||
Assembled Workforce | Paragard | ||||
Business Acquisition [Line Items] | ||||
Business combination, recognized identifiable assets acquired and liabilities assumed, finite-lived intangibles | $ 1.2 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years |
Inventories (Schedule of Invent
Inventories (Schedule of Inventories) (Details) - USD ($) $ in Millions | Apr. 30, 2019 | Oct. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 122.6 | $ 112.5 |
Work-in-process | 12.3 | 12.6 |
Finished goods | 358.2 | 343.7 |
Inventories, net | $ 493.1 | $ 468.8 |
Intangible Assets (Schedule of
Intangible Assets (Schedule of Goodwill) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Apr. 30, 2019 | Oct. 31, 2018 | |
Goodwill [Roll Forward] | ||
Balance, beginning | $ 2,392.1 | $ 2,354.8 |
Net additions during the six months ended April 30, 2019 | 35.8 | 71.2 |
Translation | 10.6 | (33.9) |
Balance, ending | 2,438.5 | 2,392.1 |
CooperVision | ||
Goodwill [Roll Forward] | ||
Balance, beginning | 1,742.9 | 1,735.7 |
Net additions during the six months ended April 30, 2019 | 13.8 | 36.8 |
Translation | 11.2 | (29.6) |
Balance, ending | 1,767.9 | 1,742.9 |
CooperSurgical | ||
Goodwill [Roll Forward] | ||
Balance, beginning | 649.2 | 619.1 |
Net additions during the six months ended April 30, 2019 | 22 | 34.4 |
Translation | (0.6) | (4.3) |
Balance, ending | $ 670.6 | $ 649.2 |
Intangible Assets (Schedule o_2
Intangible Assets (Schedule of Other Intangible Assets) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2019 | Apr. 30, 2018 | Oct. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | $ 2,032.6 | $ 2,032.6 | $ 2,012.1 | ||
Accumulated Amortization | 567.4 | 567.4 | 499.7 | ||
Intangible assets with definite lives, net | 1,465.2 | 1,465.2 | 1,512.4 | ||
Intangible assets with indefinite lives, net | 8.9 | 8.9 | 8.9 | ||
Total other intangible assets, net | 1,474.1 | $ 1,474.1 | 1,521.3 | ||
Finite-Lived Intangible Asset, Useful Life | 14 years | ||||
Proceeds from sale of exclusive distribution right to distribute Filshie Clip System in the U.S. | 21 | ||||
Gain on sale of exclusive distribution right to distribute Filshie Clip System in the U.S. | 19 | $ 0 | $ 19 | $ 0 | |
Trademarks | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 147.8 | 147.8 | 138.1 | ||
Accumulated Amortization | 22 | $ 22 | 16.9 | ||
Finite-Lived Intangible Asset, Useful Life | 14 years | ||||
Composite intangible asset | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 1,061.9 | $ 1,061.9 | 1,061.9 | ||
Accumulated Amortization | 106.1 | $ 106.1 | 70.8 | ||
Finite-Lived Intangible Asset, Useful Life | 15 years | ||||
Technology | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 397.9 | $ 397.9 | 387.2 | ||
Accumulated Amortization | 206.1 | $ 206.1 | 190.7 | ||
Finite-Lived Intangible Asset, Useful Life | 11 years | ||||
Customer relationships | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 357.7 | $ 357.7 | 350 | ||
Accumulated Amortization | 181.3 | $ 181.3 | 168.6 | ||
Finite-Lived Intangible Asset, Useful Life | 13 years | ||||
License and distribution rights and other(1) | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 67.3 | $ 67.3 | 74.9 | ||
Accumulated Amortization | $ 51.9 | $ 51.9 | $ 52.7 | ||
Finite-Lived Intangible Asset, Useful Life | 7 years |
Intangible Assets (Narrative) (
Intangible Assets (Narrative) (Details) | 3 Months Ended | |||
Apr. 30, 2019USD ($)reporting_unit | Jul. 31, 2018USD ($) | Jul. 31, 2017USD ($) | Oct. 31, 2018USD ($) | |
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill, Impairment Loss | $ 0 | $ 0 | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||
Remainder of 2019 | $ 71,800,000 | |||
2020 | 135,500,000 | |||
2021 | 134,200,000 | |||
2022 | 132,400,000 | |||
2023 | 130,100,000 | |||
Thereafter | 861,200,000 | |||
Intangible assets with definite lives, net | $ 1,465,200,000 | $ 1,512,400,000 | ||
CooperSurgical | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Number of reporting units | reporting_unit | 2 |
Debt (Schedule of Debt) (Detail
Debt (Schedule of Debt) (Details) - USD ($) $ in Millions | Apr. 30, 2019 | Oct. 31, 2018 |
Short-term: | ||
Overdraft and other credit facilities | $ 54.7 | $ 37.1 |
Term loans | 400 | 0 |
Less: unamortized debt issuance cost | (0.1) | 0 |
Short-term Debt | 454.6 | 37.1 |
Short-term Debt | ||
Revolving credit | 0 | 439 |
Term loans | 1,475 | 1,550 |
Other | 0.2 | 0.2 |
Less: unamortized debt issuance cost | (2.9) | (3.5) |
Long-term debt | 1,472.3 | 1,985.7 |
Total Debt | $ 1,926.9 | $ 2,022.8 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) | Nov. 01, 2018USD ($) | Nov. 01, 2017USD ($) | Mar. 01, 2016USD ($) | Apr. 30, 2019USD ($) | Apr. 30, 2019USD ($) | Oct. 31, 2018USD ($) |
Line of Credit Facility [Line Items] | ||||||
Short-term debt (Note 6) | $ 454,600,000 | $ 454,600,000 | $ 37,100,000 | |||
Term loans | $ 1,475,000,000 | $ 1,475,000,000 | $ 1,550,000,000 | |||
Required minimum Interest coverage ratio | 3 | |||||
Required maximum total leverage ratio | 3.75 | |||||
Interest coverage ratio | 11.17 | 11.17 | ||||
Total leverage ratio | 1.99 | 1.99 | ||||
Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Commitment fee percentage | 0.125% | |||||
Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Commitment fee percentage | 0.25% | |||||
2016 Credit Agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, potential additional borrowing capacity | $ 750,000,000 | |||||
Revolving Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Aggregate commitment amount of credit facility | $ 1,000,000,000 | |||||
2017 Term Loan | Base Rate | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 0.00% | |||||
2017 Term Loan | Base Rate | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 0.75% | |||||
2017 Term Loan | London Interbank Offered Rate (LIBOR) | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 1.00% | |||||
2017 Term Loan | London Interbank Offered Rate (LIBOR) | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 1.75% | |||||
2016 Credit Agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, initiation date | Mar. 1, 2016 | |||||
Term loans | $ 830,000,000 | |||||
Line of credit facility interest rate margin on base rate loans percentage | 1.00% | |||||
Line of credit facility interest rate margin on foreign currency loans percentage | 1.75% | |||||
Amount available under the credit agreement | $ 999,500,000 | $ 999,500,000 | ||||
2016 Credit Agreement | Federal Funds Rate | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 0.00% | |||||
2016 Credit Agreement | Eurodollar | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 0.75% | |||||
Line of Credit | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, maturity date | Mar. 1, 2021 | |||||
Term Loan Agreement 2019 | Senior Notes | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt term | 364 days | |||||
Debt instrument, face amount | $ 400,000,000 | |||||
Short-term debt (Note 6) | $ 400,000,000 | $ 400,000,000 | ||||
Weighted average interest rate | 3.10% | 3.04% | ||||
Term Loan Agreement 2019 | Senior Notes | Base Rate | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 0.00% | |||||
Term Loan Agreement 2019 | Senior Notes | London Interbank Offered Rate (LIBOR) | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 0.60% | |||||
Senior Unsecured Term Loan Agreement | Senior Notes | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt term | 5 years | |||||
Debt instrument, face amount | $ 1,425,000,000 | |||||
Interest rate | 3.75% | 3.75% | ||||
Term loans | $ 1,425,000,000 | $ 1,425,000,000 | ||||
Amount outstanding on credit agreement | $ 50,000,000 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Apr. 30, 2019 | Apr. 30, 2018 | Jan. 31, 2018 | Apr. 30, 2019 | Apr. 30, 2018 | Oct. 31, 2018 | |
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||||||
Income tax expense (benefit) to finalize tax effects of 2017 Act | $ (4.4) | |||||
Effective income tax rate expense (benefit) | 4.50% | (12.90%) | (1.70%) | 147.80% | ||
Change of provisional tax expenses related to 2017 Act | $ 202 | |||||
Discrete tax benefits | $ 23.1 | |||||
Unrecognized tax benefits | 49.1 | $ 49.1 | $ 68.9 | |||
Unrecognized tax benefits that could be settled | $ 3.1 | $ 3.1 |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Apr. 30, 2019 | Jan. 31, 2019 | Apr. 30, 2018 | Jan. 31, 2018 | Apr. 30, 2019 | Apr. 30, 2018 | |
Earnings Per Share [Abstract] | ||||||
Net income (loss) | $ 122.4 | $ 103.2 | $ 60.9 | $ (122.5) | $ 225.5 | $ (61.6) |
Basic: | ||||||
Weighted average common shares | 49.4 | 49.1 | 49.3 | 49 | ||
Basic earnings (loss) per share | $ 2.48 | $ 1.24 | $ 4.57 | $ (1.26) | ||
Diluted: | ||||||
Effect of potential dilutive shares | 0.6 | 0.5 | 0.6 | 0 | ||
Diluted weighted average common shares | 50 | 49.6 | 49.9 | 49 | ||
Diluted earnings (loss) per share attributable to Cooper stockholders | $ 2.45 | $ 1.23 | $ 4.52 | $ (1.26) |
Earnings Per Share (Schedule _2
Earnings Per Share (Schedule of Stock Options to Purchase Common Stock Not Included in Diluted Net Income Per Share Calculation) (Details) - $ / shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2019 | Apr. 30, 2018 | |
Stock Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Numbers of stock option shares excluded | 198 | 199 | 322 | 1,145 |
Range of exercise prices, lower limit | $ 254.77 | $ 229.66 | $ 226.3 | $ 15.83 |
Range of exercise prices, upper limit | $ 254.77 | $ 229.66 | $ 254.77 | $ 229.66 |
Restricted Stock Units (RSUs) | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Numbers of stock option shares excluded | 25 | 81 | 26 | 575 |
Share-Based Compensation Plan_2
Share-Based Compensation Plans - Schedule of Compensation Expense And Related Income Tax Benefit For Share-Based Awards (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2019 | Apr. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | $ 8.4 | $ 13.6 | $ 20.1 | $ 26.3 |
Related income tax benefit | 1.1 | 3.1 | 2.9 | 5.6 |
Selling, general and administrative expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 6.1 | 12.8 | 15.3 | 23.6 |
Cost of sales | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 1.4 | 0.3 | 2.9 | 1.6 |
Research and development expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 0.9 | $ 0.5 | $ 1.9 | $ 1.1 |
Share-Based Compensation Plan_3
Share-Based Compensation Plans - Narrative (Details) - shares | Mar. 18, 2019 | Apr. 30, 2019 | Oct. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Treasury stock (in shares) | 3,600,000 | 3,600,000 | |
Employee Stock Purchase Plan | Employee Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
ESPP purchase price of common stock, percent of market price | 85.00% | ||
ESPP shares authorized (in shares) | 1,000,000 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |||
Apr. 30, 2019 | Oct. 31, 2018 | Nov. 01, 2018 | [1] | Nov. 01, 2017 | |
Class of Stock [Line Items] | |||||
ASU 2016-16 adoption | $ (13.3) | $ 4.8 | |||
Foreign Currency Translation Adjustment [Roll Forward] | |||||
Foreign Currency Translation Adjustment, Beginning Balance | $ (412.2) | $ (353.7) | |||
Foreign Currency Translation Adjustment, Gross change in value for the period | 14.1 | (58.5) | |||
Foreign Currency Translation Adjustment, tax effect | 0 | ||||
Foreign Currency Translation Adjustment, Ending Balance | (398.1) | (412.2) | |||
Minimum Pension Liability [Roll Forward] | |||||
Minimum Pension Liability, Beginning Balance | (18.5) | (21.6) | |||
Minimum Pension Liability, Gross change in value for the period | 0 | 11 | |||
Minimum Pension Liability, tax effect | (3.1) | ||||
Minimum Pension Liability, Ending Balance | (18.5) | (18.5) | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Total, Beginning balance | (430.7) | (375.3) | |||
Gross change in value for the period | 14.1 | (47.5) | |||
Tax effect for the period | (3.1) | ||||
Total, Ending balance | $ (416.6) | $ (430.7) | |||
Foreign Currency Translation Adjustment | |||||
Class of Stock [Line Items] | |||||
ASU 2016-16 adoption | 0 | ||||
Minimum Pension Liability | |||||
Class of Stock [Line Items] | |||||
ASU 2016-16 adoption | $ 4.8 | ||||
[1] | We adopted ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory in the first quarter of fiscal 2019. Refer to “Note 1. General" for further information. |
Stockholders' Equity (Share Rep
Stockholders' Equity (Share Repurchases) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Mar. 01, 2017 | Feb. 28, 2017 | |
Equity [Abstract] | |||||
Share Repurchase Program, maximum amount authorized | $ 1,000,000,000 | $ 500,000,000 | |||
Average purchase price (in usd per share) | $ 248.70 | ||||
Number of common stock repurchased, shares | 0 | 24,500 | 0 | ||
Treasury Stock, Value, Acquired, Cost Method | $ 6,100,000 | ||||
Share Repurchase Program, remaining authorized amount | $ 557,400,000 |
Stockholders' Equity (Dividends
Stockholders' Equity (Dividends) (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 08, 2019 | Apr. 30, 2019 | Apr. 30, 2018 |
Equity [Abstract] | |||
Dividends on common stock | $ 1.5 | $ 1.5 | $ 1.5 |
Cash dividend, per share | $ 0.03 | ||
Dividends payable, date of record | Jan. 22, 2019 |
Employee Benefits (Schedule of
Employee Benefits (Schedule of Components of Net Periodic Pension Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2019 | Apr. 30, 2018 | |
Retirement Benefits, Description [Abstract] | ||||
Service cost | $ 2.7 | $ 2.7 | $ 5.4 | $ 5.4 |
Interest cost | 1.3 | 1.3 | 2.5 | 2.5 |
Expected return on plan assets | (2.3) | (2.3) | (4.6) | (4.6) |
Recognized net actuarial loss | 0.4 | 0.4 | 0.8 | 0.8 |
Net periodic pension cost | $ 2.1 | $ 2.1 | $ 4.1 | $ 4.1 |
Employee Benefits (Narrative) (
Employee Benefits (Narrative) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Retirement Benefits, Description [Abstract] | ||
Defined benefit plan, contributions by employer | $ 2,500 | $ 2,500 |
Defined benefit plan, estimated future employer contributions in current fiscal year | $ 7,500 | |
Expected rate of return on plan assets for determining net periodic pension cost | 8.00% |
Contingencies (Details)
Contingencies (Details) $ in Millions | 26 Months Ended | |
Apr. 30, 2017action | Jul. 31, 2018USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||
Number of putative class action complaints filed (over) | action | 50 | |
Litigation Settlement, Amount | $ | $ 3 |
Business Segment Information (S
Business Segment Information (Schedule of Segment Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2019 | Apr. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Net sales (Note 2) | $ 654.3 | $ 631.3 | $ 1,282.4 | $ 1,221.3 |
Operating income (loss) | 146.9 | 74.7 | 257.8 | 164.8 |
Interest expense | 18.5 | 18.7 | 36.6 | 37.1 |
Other expense (income), net | 0.3 | 2 | (0.7) | (1.1) |
Income before income taxes | 128.1 | 54 | 221.9 | 128.8 |
CooperVision | ||||
Segment Reporting Information [Line Items] | ||||
Net sales (Note 2) | 484.2 | 467.5 | 954.3 | 912.3 |
Operating income (loss) | 125.5 | 123.5 | 241.7 | 235.8 |
CooperSurgical | ||||
Segment Reporting Information [Line Items] | ||||
Net sales (Note 2) | 170.1 | 163.8 | 328.1 | 309 |
Operating income (loss) | 31.1 | (29.8) | 38.3 | (39.2) |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | (9.7) | (19) | (22.2) | (31.8) |
Toric lens | CooperVision | ||||
Segment Reporting Information [Line Items] | ||||
Net sales (Note 2) | 155.3 | 150.8 | 301.3 | 288.6 |
Multifocal lens | CooperVision | ||||
Segment Reporting Information [Line Items] | ||||
Net sales (Note 2) | 49.7 | 49.1 | 98.7 | 96.1 |
Single-use sphere lens | CooperVision | ||||
Segment Reporting Information [Line Items] | ||||
Net sales (Note 2) | 135.3 | 124.4 | 267.3 | 240.7 |
Non single-use sphere and other | CooperVision | ||||
Segment Reporting Information [Line Items] | ||||
Net sales (Note 2) | 143.9 | 143.2 | 287 | 286.9 |
Office and surgical procedures | CooperSurgical | ||||
Segment Reporting Information [Line Items] | ||||
Net sales (Note 2) | 105.7 | 97.9 | 201.4 | 186 |
Fertility | CooperSurgical | ||||
Segment Reporting Information [Line Items] | ||||
Net sales (Note 2) | $ 64.4 | $ 65.9 | $ 126.7 | $ 123 |
Business Segment Information _2
Business Segment Information (Schedule of Identifiable Assets By Segment Information) (Details) - USD ($) $ in Millions | Apr. 30, 2019 | Oct. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Total Identifiable assets | $ 6,203.4 | $ 6,112.8 |
CooperVision | ||
Segment Reporting Information [Line Items] | ||
Total Identifiable assets | 3,833.3 | 3,746 |
CooperSurgical | ||
Segment Reporting Information [Line Items] | ||
Total Identifiable assets | 2,191.4 | 2,201.7 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Total Identifiable assets | $ 178.7 | $ 165.1 |
Business Segment Information _3
Business Segment Information (Schedule of Net Sales To External Customers By Country Of Domicile) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2019 | Apr. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Total net sales to external customers | $ 654.3 | $ 631.3 | $ 1,282.4 | $ 1,221.3 |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales to external customers | 305.9 | 293.2 | 584.9 | 554.6 |
Europe | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales to external customers | 209.5 | 210.4 | 419.2 | 413.8 |
Rest of world | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales to external customers | $ 138.9 | $ 127.7 | $ 278.3 | $ 252.9 |
Business Segment Information _4
Business Segment Information (Schedule of Long-Lived Assets By Country Of Domicile) (Details) - USD ($) $ in Millions | Apr. 30, 2019 | Oct. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Total long-lived assets | $ 1,032.7 | $ 976 |
United States | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 558.7 | 516.7 |
Europe | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 345.6 | 340.7 |
Rest of world | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | $ 128.4 | $ 118.6 |
Uncategorized Items - coo-20190
Label | Element | Value |
Restricted Cash and Cash Equivalents, Current | us-gaap_RestrictedCashAndCashEquivalentsAtCarryingValue | $ 400,000 |
Restricted Cash and Cash Equivalents, Current | us-gaap_RestrictedCashAndCashEquivalentsAtCarryingValue | $ 300,000 |