Cover Page
Cover Page - shares | 9 Months Ended | |
Jul. 31, 2020 | Aug. 28, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jul. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-8597 | |
Entity Registrant Name | The Cooper Companies, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 94-2657368 | |
Entity Address, Address Line One | 6101 Bollinger Canyon Road | |
Entity Address, Address Line Two | Suite 500 | |
Entity Address, City or Town | San Ramon | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94583 | |
City Area Code | 925 | |
Local Phone Number | 460-3600 | |
Title of 12(b) Security | Common Stock, $.10 par value | |
Trading Symbol | COO | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 53,340,401 | |
Entity Central Index Key | 0000711404 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --10-31 | |
Amendment Flag | false |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | |
Income Statement [Abstract] | ||||
Net sales | $ 578.2 | $ 679.4 | $ 1,749.3 | $ 1,961.8 |
Cost of sales | 217.4 | 228.7 | 638.5 | 660 |
Gross profit | 360.8 | 450.7 | 1,110.8 | 1,301.8 |
Selling, general and administrative expense | 232.8 | 249.8 | 728.3 | 746.6 |
Research and development expense | 21.8 | 21.5 | 67.8 | 63.4 |
Amortization of intangibles | 34.2 | 37.2 | 103 | 110.7 |
Gain on sale of an intangible | 0 | 0 | 0 | (19) |
Operating income | 72 | 142.2 | 211.7 | 400.1 |
Interest expense | 5.7 | 16.7 | 30.1 | 53.3 |
Other (income) expense, net | (0.1) | (1.5) | 8.8 | (2.1) |
Income before income taxes | 66.4 | 127 | 172.8 | 348.9 |
Provision for income taxes (Note 7) | 11.2 | 6.9 | 15.6 | 3.2 |
Net income | $ 55.2 | $ 120.1 | $ 157.2 | $ 345.7 |
Earnings per share (Note 8): | ||||
Basic (in dollars per share) | $ 1.13 | $ 2.43 | $ 3.20 | $ 7 |
Diluted (in dollars per share) | $ 1.12 | $ 2.40 | $ 3.17 | $ 6.91 |
Number of shares used to compute earnings per share: | ||||
Basic (in shares) | 49.1 | 49.5 | 49.1 | 49.4 |
Diluted (in shares) | 49.5 | 50.1 | 49.6 | 50 |
Other comprehensive income, net of tax: | ||||
Cash flow hedges | $ (4.6) | $ 0 | $ (18.1) | $ 0 |
Foreign currency translation adjustment, net of tax | 72.7 | (65.2) | 20.5 | (51.1) |
Comprehensive income | $ 123.3 | $ 54.9 | $ 159.6 | $ 294.6 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Millions | Jul. 31, 2020 | Oct. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 127.4 | $ 89 |
Trade accounts receivable, net of allowance for doubtful accounts of $11.9 at July 31, 2020 and $16.4 at October 31, 2019 | 450.5 | 435.3 |
Inventories (Note 4) | 594.9 | 506.9 |
Prepaid expense and other current assets | 148.5 | 132.2 |
Total current assets | 1,321.3 | 1,163.4 |
Property, plant and equipment, at cost | 2,401.8 | 2,193.9 |
Less: accumulated depreciation and amortization | 1,164.1 | 1,061.8 |
Property, plant and equipment, net | 1,237.7 | 1,132.1 |
Operating lease right-of-use assets (Note 2) | 258.9 | |
Goodwill (Note 5) | 2,445 | 2,428.9 |
Other intangibles, net (Note 5) | 1,311.4 | 1,405.3 |
Deferred tax assets | 80.1 | 78 |
Other assets | 94 | 66.8 |
Total assets | 6,748.4 | 6,274.5 |
Current liabilities: | ||
Short-term debt (Note 6) | 552.6 | 563.7 |
Accounts payable | 180.2 | 150.1 |
Employee compensation and benefits | 108.4 | 104.7 |
Operating lease liabilities | 32.3 | |
Other current liabilities | 255.2 | 292.1 |
Total current liabilities | 1,128.7 | 1,110.6 |
Long-term debt (Note 6) | 1,327.8 | 1,262.6 |
Deferred tax liabilities | 28.5 | 28 |
Long-term tax payable | 162.1 | 124.8 |
Operating lease liabilities | 236.6 | |
Accrued pension liability and other | 104.3 | 119.9 |
Total liabilities | 2,988 | 2,645.9 |
Contingencies (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 53.4 at July 31, 2020 and 53.2 at October 31, 2019 | 5.3 | 5.3 |
Additional paid-in capital | 1,637 | 1,615 |
Accumulated other comprehensive loss | (444.7) | (447.1) |
Retained earnings | 3,180.6 | 3,026.4 |
Treasury stock at cost: 4.3 shares at July 31, 2020 and 4.1 shares at October 31, 2019 | (618) | (571.2) |
Total Cooper stockholders’ equity | 3,760.2 | 3,628.4 |
Noncontrolling interests | 0.2 | 0.2 |
Stockholders’ equity (Note 10) | 3,760.4 | 3,628.6 |
Total liabilities and stockholders’ equity | $ 6,748.4 | $ 6,274.5 |
Consolidated Condensed Balanc_2
Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jul. 31, 2020 | Oct. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Trade accounts receivable, allowance for doubtful accounts | $ 11.9 | $ 16.4 |
Preferred stock, par value (in dollars per share) | $ 0.1 | $ 0.1 |
Preferred stock, authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.1 | $ 0.1 |
Common stock, authorized (in shares) | 120,000,000 | 120,000,000 |
Common stock, issued (in shares) | 53,400,000 | 53,200,000 |
Treasury stock (in shares) | 4,300,000 | 4,100,000 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Shares | Treasury Stock | Treasury Stock Par Net Value | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Noncontrolling Interests |
Beginning balance (in shares) at Oct. 31, 2018 | 49,200,000 | 3,600,000 | ||||||||
Beginning balance at Oct. 31, 2018 | $ 3,307.8 | $ (13.3) | $ 5 | $ (415.1) | $ 0.3 | $ 1,572.1 | $ (430.7) | $ 2,576 | $ (13.3) | $ 0.2 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 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) | 100,000 | |||||||||
Issuance of common stock for stock plans, net | (9) | (9) | ||||||||
Treasury stock repurchase | (6.1) | $ (6.1) | ||||||||
Dividends on common stock ($0.03 per share) | (1.5) | (1.5) | ||||||||
Share-based compensation expense | 11.7 | 11.7 | ||||||||
Ending balance (in shares) at Jan. 31, 2019 | 49,300,000 | 3,600,000 | ||||||||
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 | 49,200,000 | 3,600,000 | ||||||||
Beginning balance at Oct. 31, 2018 | 3,307.8 | $ (13.3) | $ 5 | $ (415.1) | 0.3 | 1,572.1 | (430.7) | 2,576 | $ (13.3) | 0.2 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | $ 345.7 | |||||||||
Treasury stock repurchase (in shares) | 24,500 | |||||||||
Treasury stock repurchase | $ (6.1) | |||||||||
Ending balance (in shares) at Jul. 31, 2019 | 49,600,000 | 3,600,000 | ||||||||
Ending balance at Jul. 31, 2019 | 3,615.5 | $ 5 | $ (421.2) | 0.3 | 1,607.6 | (481.8) | 2,905.4 | 0.2 | ||
Beginning balance (in shares) at Jan. 31, 2019 | 49,300,000 | 3,600,000 | ||||||||
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 | 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) | 200,000 | |||||||||
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 | 49,500,000 | 3,600,000 | ||||||||
Ending balance at Apr. 30, 2019 | 3,542.2 | $ 5 | $ (421.2) | 0.3 | 1,587.7 | (416.6) | 2,786.8 | 0.2 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 120.1 | 120.1 | ||||||||
Other comprehensive income (loss), net of tax | (65.2) | (65.2) | ||||||||
Issuance of common stock for stock plans, net (in shares) | 100,000 | |||||||||
Issuance of common stock for stock plans, net | $ 12.2 | 12.2 | ||||||||
Treasury stock repurchase (in shares) | 0 | |||||||||
Dividends on common stock ($0.03 per share) | $ (1.5) | (1.5) | ||||||||
Share-based compensation expense | 7.7 | 7.7 | ||||||||
Ending balance (in shares) at Jul. 31, 2019 | 49,600,000 | 3,600,000 | ||||||||
Ending balance at Jul. 31, 2019 | 3,615.5 | $ 5 | $ (421.2) | 0.3 | 1,607.6 | (481.8) | 2,905.4 | 0.2 | ||
Beginning balance (in shares) at Oct. 31, 2019 | 49,100,000 | 4,100,000 | ||||||||
Beginning balance at Oct. 31, 2019 | 3,628.6 | $ 4.9 | $ (571.2) | 0.4 | 1,615 | (447.1) | 3,026.4 | 0.2 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 90.5 | 90.5 | ||||||||
Other comprehensive income (loss), net of tax | 16.7 | 16.7 | ||||||||
Issuance of common stock for stock plans, net (in shares) | 100,000 | |||||||||
Issuance of common stock for stock plans, net | (13.1) | (13.2) | ||||||||
Dividends on common stock ($0.03 per share) | (1.5) | (1.5) | ||||||||
Share-based compensation expense | 9.7 | 9.7 | ||||||||
Ending balance (in shares) at Jan. 31, 2020 | 49,200,000 | 4,100,000 | ||||||||
Ending balance at Jan. 31, 2020 | 3,730.9 | $ 4.9 | $ (571.2) | 0.4 | 1,611.6 | (430.4) | 3,115.4 | 0.2 | ||
Beginning balance (in shares) at Oct. 31, 2019 | 49,100,000 | 4,100,000 | ||||||||
Beginning balance at Oct. 31, 2019 | 3,628.6 | $ 4.9 | $ (571.2) | 0.4 | 1,615 | (447.1) | 3,026.4 | 0.2 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | $ 157.2 | |||||||||
Treasury stock repurchase (in shares) | 160,850 | |||||||||
Treasury stock repurchase | $ (47.8) | |||||||||
Ending balance (in shares) at Jul. 31, 2020 | 49,100,000 | 4,300,000 | ||||||||
Ending balance at Jul. 31, 2020 | 3,760.4 | $ 4.9 | $ (618) | 0.4 | 1,637 | (444.7) | 3,180.6 | 0.2 | ||
Beginning balance (in shares) at Jan. 31, 2020 | 49,200,000 | 4,100,000 | ||||||||
Beginning balance at Jan. 31, 2020 | 3,730.9 | $ 4.9 | $ (571.2) | 0.4 | 1,611.6 | (430.4) | 3,115.4 | 0.2 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 11.5 | 11.5 | ||||||||
Other comprehensive income (loss), net of tax | (82.4) | (82.4) | ||||||||
Issuance of common stock for stock plans, net (in shares) | 100,000 | |||||||||
Issuance of common stock for stock plans, net | 5 | 5 | ||||||||
Treasury stock repurchase (in shares) | 200,000 | 200,000 | ||||||||
Treasury stock repurchase | (47.8) | $ (47.8) | ||||||||
Issuance of common stock for employee stock purchase plan | 1 | $ 0.4 | 0.6 | |||||||
Share-based compensation expense | 9.3 | 9.3 | ||||||||
Ending balance (in shares) at Apr. 30, 2020 | 49,100,000 | 4,300,000 | ||||||||
Ending balance at Apr. 30, 2020 | 3,627.5 | $ 4.9 | $ (618.6) | 0.4 | 1,626.5 | (512.8) | 3,126.9 | 0.2 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 55.2 | 55.2 | ||||||||
Other comprehensive income (loss), net of tax | 68.1 | 68.1 | ||||||||
Issuance of common stock for stock plans, net | $ 0.4 | 0.4 | ||||||||
Treasury stock repurchase (in shares) | 0 | |||||||||
Issuance of common stock for employee stock purchase plan | $ 1 | $ 0.6 | 0.4 | |||||||
Dividends on common stock ($0.03 per share) | (1.5) | (1.5) | ||||||||
Share-based compensation expense | 9.7 | 9.7 | ||||||||
Ending balance (in shares) at Jul. 31, 2020 | 49,100,000 | 4,300,000 | ||||||||
Ending balance at Jul. 31, 2020 | $ 3,760.4 | $ 4.9 | $ (618) | $ 0.4 | $ 1,637 | $ (444.7) | $ 3,180.6 | $ 0.2 |
Consolidated Condensed Statem_2
Consolidated Condensed Statements of Stockholders' Equity (Parenthetical) - $ / shares | Feb. 10, 2020 | Jul. 31, 2020 | Jan. 31, 2020 | Jul. 31, 2019 | Jan. 31, 2019 |
Statement of Stockholders' Equity [Abstract] | |||||
Dividends on common stock (in dollars per share) | $ 0.03 | $ 0.03 | $ 0.03 | $ 0.03 | $ 0.03 |
Consolidated Condensed Statem_3
Consolidated Condensed Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 157.2 | $ 345.7 |
Depreciation and amortization | 210 | 210.2 |
Gain on sale of an intangible | 0 | (19) |
Increase in operating capital | (155.9) | (22.1) |
Other non-cash items | 57 | (1.5) |
Net cash provided by operating activities | 268.3 | 513.3 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (203.4) | (207.3) |
Acquisitions of businesses and assets, net of cash acquired, and other | (17.9) | (59.1) |
Net cash used in investing activities | (221.3) | (266.4) |
Cash flows from financing activities: | ||
Proceeds from long-term debt | 2,086.4 | 576.8 |
Repayments of long-term debt | (2,022.8) | (1,140.8) |
Net (repayments) proceeds from short-term debt | (13) | 351.8 |
Net (payments) proceeds related to share-based compensation awards | (7.8) | |
Net (payments) proceeds related to share-based compensation awards | 7.7 | |
Dividends on common stock | (1.5) | (1.5) |
Repurchase of common stock | (47.8) | (6.1) |
Issuance of common stock for employee stock purchase plan | 1.8 | 0 |
Debt issuance costs | (5.5) | (0.2) |
Net cash used in financing activities | (10.2) | (212.3) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 2 | (1.6) |
Net increase in cash, cash equivalents and restricted cash | 38.8 | 33 |
Cash, cash equivalents and restricted cash at beginning of period | 89.5 | 80.2 |
Cash, cash equivalents and restricted cash at end of period | 128.3 | 113.2 |
Reconciliation of cash flow information: | ||
Total cash, cash equivalents and restricted cash | $ 128.3 | $ 113.2 |
General
General | 9 Months Ended |
Jul. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General The accompanying Consolidated Condensed Financial Statements of the Cooper Companies, Inc. and its subsidiaries (the Company) have been prepared in accordance with U.S. GAAP for interim financial information and with the requirements of Regulation S-X, Rule 10-01 for financial statements required to be filed as a part of this Quarterly Report on Form 10-Q. Unless the context requires otherwise, terms "the Company", "we", "us", and "our" are used to refer collectively to the Cooper Companies, Inc. and its subsidiaries. The accompanying 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, 2019 . The Consolidated Condensed 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. Accounting Policies There have been no material changes to our significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended October 31, 2019 , except as it relates to the adoption of Accounting Standards Update (ASU) 2016-02, Leases (Topic 842) , which is described below. Leases We consider an arrangement a lease if the arrangement transfers the right to control the use of an identified asset in exchange for consideration. We have operating leases, but do not have material financing leases. Lease right-of-use assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make payments arising from the lease agreement. These assets and liabilities are recognized at the commencement of the lease based upon the present value of the future minimum lease payments over the lease term. The lease term reflects the noncancelable period of the lease together with periods covered by an option to extend or terminate the lease when management is reasonably certain that it will exercise such option. Changes in the lease term assumption could impact the right-of-use assets and lease liabilities recognized on the balance sheet. As our leases typically do not contain a readily determinable implicit rate, we determine the present value of the lease liability using our incremental borrowing rate at the lease commencement date based on the lease term on a collateralized basis. Estimates The World Health Organization categorized the Coronavirus disease 2019 (COVID-19) as a pandemic. The COVID-19 pandemic has caused a severe global health crisis, along with economic and societal disruptions and uncertainties, which have negatively impacted business and healthcare activity globally. As a result of healthcare systems responding to the demands of managing the pandemic, governments around the world imposing measures designed to reduce the transmission of the COVID-19 virus, and individuals responding to the concerns of contracting the COVID-19 virus, many optical practitioners & retailers, hospitals, medical offices and fertility clinics closed their facilities, restricted access, or delayed or canceled patient visits, exams and elective medical procedures, and many customers that have reopened are experiencing reduced patient visits. This has had, and we believe will continue to have, an adverse effect on our sales, operating results and cash flows. The preparation of Consolidated Condensed Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of net sales and expenses during the reporting period. Actual results could differ from those estimates particularly as it relates to estimates reliant on forecasts and other assumptions reasonably available to the Company and the uncertain future impacts of the COVID-19 pandemic and related economic disruptions. The extent to which the COVID-19 pandemic and related economic disruptions impact our business and financial results will depend on future developments including, but not limited to, the continued spread, duration and severity of the COVID-19 pandemic; the occurrence, spread, duration and severity of any subsequent wave or waves of outbreaks; the actions taken by the U.S. and foreign governments to contain the COVID-19 pandemic, address its impact or respond to the reduction in global and local economic activity; the occurrence, duration and severity of a global, regional or national recession, depression or other sustained adverse market event; the impact of the developments described above on our customers and suppliers; and how quickly and to what extent normal economic and operating conditions can resume. The accounting matters assessed included, but were not limited to: • allowance for doubtful accounts and credit losses • carrying value of inventory • the carrying value of goodwill and other long-lived assets. There was not a material impact to the above estimates in the Company’s Consolidated Condensed Financial Statements for the three and nine months ended July 31, 2020. The Company continually monitors and evaluates the estimates used as additional information becomes available. Adjustments will be made to these provisions periodically to reflect new facts and circumstances that may indicate that historical experience may not be indicative of current and/or future results. The Company’s future assessment of the magnitude and duration of COVID-19, as well as other factors, could result in material changes to the estimates and material impacts to the Company’s Consolidated Condensed Financial Statements in future reporting periods. Accounting Pronouncements Recently Adopted In May 2020, the SEC adopted the final rule under SEC release No. 33-10786, Amendments to Financial Disclosures about Acquired and Disposed Businesses , amending Rule 1-02(w)(2) which includes amendments to certain of its rules and forms related to the disclosure of financial information regarding acquired or disposed businesses. Among other changes, the amendments impact SEC rules relating to (1) the definition of “significant” subsidiaries, (2) requirements to provide financial statements for “significant” acquisitions, and (3) revisions to the formulation and usage of pro forma financial information. The final rule is effective on January 1, 2021; however, voluntary early adoption is permitted. The Company early adopted the provisions of the final rule in the third quarter of fiscal 2020. The guidance did not have a material impact on the Company’s consolidated financial statements and disclosures. I n February 2016, the Financial Accounting Standards Board (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 the underlying asset by lessors that are not manufacturers or dealers and modifies transition disclosure requirements for changes in accounting principles and other technical updates. We adopted this standard using the optional transition method and recorded an adjustment to the Consolidated Condensed Balance Sheet on November 1, 2019. We have implemented changes to certain business processes, systems and internal controls to support adoption of the new standard and the related disclosure requirements, including the implementation of a third-party leasing software solution. We elected the package of transition expedients, which allows us to keep our existing lease classifications and not reassess whether any existing contracts as of the date of adoption are leases or contain leases and not reassess initial direct costs. In addition, we elected the practical expedients to combine lease and non-lease components for our leases, and for leases with an initial term of 12 months or less to recognize the associated lease payments in the Consolidated Statements of Income and Comprehensive Income on a straight-line basis over the lease term. As of July 31, 2020 , the aggregate balances of lease right-of-use assets and lease liabilities were $ 258.9 million and $ 271.0 million, respectively. The standard did not affect our Consolidated Statements of Income and Comprehensive Income or Consolidated Condensed Statements of Cash Flows. We will continue to disclose comparative reporting periods prior to November 1, 2019 under the previous accounting guidance, ASC 840 Leases. Accounting Pronouncements Issued Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ” and subsequent amendments to the initial guidance: ASU 2018-19 “Codification Improvements to Topic 326, Financial Instruments-Credit Losses ”, ASU 2019-04 “ Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments” , ASU 2019-05 “ Financial Instruments-Credit Losses ”, ASU 2019-11 “ Codification Improvements to Topic 326, Financial Instruments - Credit Losses” (collectively, “Topic 326”), ASU 2020-02 Financial Instruments—Credit Losses (Topic 326) and Leases (Topic 842) and ASU 2020-03 Codification Improvements to Financial Instruments. Topic 326 requires measurement and recognition of expected credit losses for financial assets held. Topic 326 is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2019, which means it will be effective for our fiscal year beginning November 01, 2020. Early adoption is permitted. We are currently evaluating the impact of Topic 326 on our Consolidated Condensed Financial Statements. The Company's exposure to credit losses may increase if our customers are adversely affected by changes in healthcare laws, coverage or governmental and insurance reimbursement, economic pressures or uncertainty associated with local or global economic recessions, disruption associated with the current COVID-19 pandemic, or other customer-specific factors. Although the Company has historically not experienced significant credit losses, it is possible that there could be an adverse impact as cash flows are impacted by responses of customers to the COVID-19 pandemic. 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 Topic 808 and Topic 606 to clarify that transactions in a collaborative arrangement should be accounted for under Topic 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. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, which means it will be effective for our fiscal year beginning November 1, 2020. Early adoption is permitted. The adoption of this guidance will not have a material impact on our Consolidated Condensed Financial Statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This guidance removes certain exceptions to the general principles in Topic 740 and enhances and simplifies various aspects of the income tax accounting guidance, including requirements such as tax basis step-up in goodwill obtained in a transaction that is not a business combination, ownership changes in investments, and interim-period accounting for enacted changes in tax law. This standard is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2020. Early adoption is permitted. We are currently evaluating the impact of ASU 2019-12 on our Consolidated Condensed Financial Statements, which is effective for the Company in our fiscal year and interim periods beginning on November 1, 2021. In January 2020, the FASB issued ASU 2020-01 Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) - Clarifying the Interactions between Topic 321, Topic 323, and Topic 815. This guidance addresses accounting for the transition into and out of the equity method and provides clarification of the interaction of rules for equity securities, the equity method of accounting, and forward contracts and purchase options on certain types of securities. This standard is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2020. Early adoption is permitted. We are currently evaluating the impact of ASU 2020-01 on our Consolidated Condensed Financial Statements, which is effective for the Company in our fiscal year and interim periods beginning on November 1, 2021. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform ( Topic 848 ): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . This guidance provides optional expedients and exceptions for applying generally accepted accounting principles (GAAP) to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. This guidance is effective for all entities as of March 12, 2020 through December 31, 2022. We are currently evaluating the impact of ASU 2020-04 on our Consolidated Condensed Financial Statements. In August 2020, the FASB issued ASU 2020-06, Debt— Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40) . This update amends the guidance on convertible instruments and the derivatives scope exception for contracts in an entity's own equity and improves and amends the related EPS guidance for both Subtopics. This standard is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2021, which means it will be effective for our fiscal year beginning November 1, 2022. Early adoption is permitted but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. We are currently evaluating the impact of ASU 2020-06 on our Consolidated Condensed Financial Statements. |
Leases
Leases | 9 Months Ended |
Jul. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases The Company primarily has operating leases for office, manufacturing and warehouse space, vehicles, and office equipment. Our leases expire on various dates between 2020 and 2045, some of which could include options to extend the lease. Lease right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As these leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the lease's commencement date in determining the present value of lease payments. We consider information including, but not limited to, the lease term, our credit rating and interest rates of similar debt instruments with comparable credit ratings and security interests. The lease right-of-use assets are increased by any lease prepayments made and reduced by any lease incentives such as tenant improvement allowances. Options to extend the lease term are included in the lease term when it is reasonably certain that we will exercise the extension option. The Company’s operating leases typically include non-lease components such as common-area maintenance costs. We have elected to include non-lease components with lease payments for the purpose of calculating lease right-of-use assets and liabilities, to the extent that they are fixed. Non-lease components that are not fixed are expensed as incurred as variable lease payments. Leases with a term of one year or less are not recognized on our Consolidated Condensed Balance Sheet, while the associated lease payments are recorded in the Consolidated Statements of Income and Comprehensive Income on a straight-line basis over the lease term. Commitments under finance lease arrangements of $ 2.1 million as of July 31, 2020 are not significant and are not included in the disclosure tables below. The following table presents information about leases on the Consolidated Condensed Balance Sheet: (In millions) July 31, 2020 Operating Leases Operating lease right-of-use assets $ 258.9 Operating lease liabilities, current 32.3 Operating lease liabilities, non-current 236.6 Total operating lease liabilities $ 268.9 Weighted average remaining lease term (in years) 11.3 Weighted average discount rate 3 % The following table presents information about lease expense in our Consolidated Statements of Income and Comprehensive Income: Periods Ended July 31, Three Months Nine Months (In millions) 2020 2020 Operating lease expense $ 10.6 $ 30.2 Short-term lease expense 1.1 3.3 Variable lease expense $ 0.5 $ 1.3 The following table presents supplemental cash flow information about the Company’s leases: Periods Ended July 31, Three Months Nine Months (In millions) 2020 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 10.5 $ 30.1 Maturity of Lease Liabilities The minimum rental payments required under operating leases that have initial or remaining noncancelable lease terms in excess of one year as of July 31, 2020 are: (In millions) Remainder of 2020 $ 10.1 2021 38.8 2022 35.0 2023 31.1 2024 28.8 2025 and thereafter 179.5 Total lease payments 323.3 Less: interest 54.4 Present value of lease liabilities $ 268.9 As previously disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2019 , and under previous lease accounting standard ASC 840, Leases, the aggregate future noncancelable minimum rental payments on its operating leases, as of October 31, 2019 , were as follows: (In millions) 2020 $ 38.5 2021 34.9 2022 31.2 2023 28.0 2024 26.5 2025 and thereafter 173.6 Total future minimum lease payments $ 332.7 |
Acquisitions
Acquisitions | 9 Months Ended |
Jul. 31, 2020 | |
Business Combination And Asset Acquisition [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 2020 and 2019 : (In millions) July 31, 2020 October 31, 2019 Customer relationships $ 6.5 $ 7.5 Technology — 12.3 Trademarks — 10.2 Other — 0.1 Total identifiable intangible assets $ 6.5 $ 30.1 Goodwill 1.8 29.8 Net tangible assets 0.8 7.3 Total purchase price $ 9.1 $ 67.2 All acquisitions were funded by cash generated from operations or facility borrowings. For business acquisitions, we recorded tangible and intangible assets acquired and liabilities assumed at their fair values as of the applicable date of acquisition. For asset acquisitions, we recorded 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 distributors or complementary products and services. The pro forma results of operations have not been presented because the effect of the business combinations described below were not material to our consolidated results of operations. Fiscal Year 2020 On December 13, 2019, CooperSurgical completed the acquisition of a privately-held distributor of in vitro fertilization (IVF) medical devices and systems. The purchase price allocation is preliminary and we are in the process of finalizing information and the corresponding impact on goodwill. Fiscal Year 2019 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. |
Inventories
Inventories | 9 Months Ended |
Jul. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories (In millions) July 31, 2020 October 31, 2019 Raw materials $ 156.1 $ 131.4 Work-in-process 13.4 13.3 Finished goods 425.4 362.2 Total inventories $ 594.9 $ 506.9 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 | 9 Months Ended |
Jul. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Goodwill (In millions) CooperVision CooperSurgical Total Balance at October 31, 2019 $ 1,765.4 $ 663.5 $ 2,428.9 Current period additions — 1.8 1.8 Foreign currency translation adjustment 10.0 4.3 14.3 Balance at July 31, 2020 $ 1,775.4 $ 669.6 $ 2,445.0 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, evaluates and tests goodwill balances for impairment in accordance with related accounting standards. The Company performed an annual impairment assessment in third quarter of fiscal 2020 and 2019 , and its analysis indicated that there was no impairment of goodwill in reporting units. Qualitative factors considered in the assessment include industry and market considerations, overall financial performance and other relevant events and factors affecting each reporting unit. Based on our qualitative assessment, if we determine that the fair value of a reporting unit is more likely than not to be less than its carrying amount, the fair value of a reporting unit will be compared with its carrying amount and an impairment charge will be recognized for the amount that the carrying value exceeds the fair value of the reporting unit. A reporting unit is the level of reporting at which goodwill is tested for impairment. Our reporting units are CooperVision, Office/Surgical and Fertility, reflecting the current way we manage our business. Goodwill impairment analysis and measurement is a process that requires significant judgment. If our common stock price trades below book value per share, there are changes in market conditions or a future downturn in our business, or a future goodwill impairment test indicates an impairment of our goodwill, we may have to recognize a non-cash impairment of goodwill that could be material and could adversely affect our results of operations in the period recognized and also adversely affect our total assets and stockholders' equity. Given the general deterioration in economic and market conditions surrounding the COVID-19 pandemic, the Company considered the impact that the COVID-19 pandemic may have on its near and long-term forecasts and determined that it was not more likely than not that the fair value of reporting units or relevant asset groups was below carrying amounts, and therefore the Company determined that there was no impairment to either its goodwill, definite-lived or indefinite-lived intangible assets at July 31, 2020. Other Intangible Assets July 31, 2020 October 31, 2019 (In millions) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Weighted Average Amortization Period (in years) Intangible assets with definite lives: Trademarks $ 148.4 $ 35.1 $ 148.5 $ 27.3 14 Composite intangible asset 1,061.9 194.7 1,061.9 141.6 15 Technology 401.3 244.4 399.9 221.2 11 Customer relationships 365.1 211.6 357.6 194.0 13 License and distribution rights and other 27.9 17.4 27.9 15.3 11 2,004.6 $ 703.3 1,995.8 $ 599.4 14 Less: accumulated amortization and translation 703.3 599.4 Intangible assets with definite lives, net 1,301.3 1,396.4 Intangible assets with indefinite lives, net (1) 10.1 8.9 Total other intangibles, net $ 1,311.4 $ 1,405.3 (1) Intangible assets with indefinite lives include technology and trademarks. 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 . Balances include foreign currency translation adjustments. As of July 31, 2020 , the estimation of amortization expenses for intangible assets with definite lives is as follows: Fiscal years: (In millions) Remainder of 2020 $ 33.9 2021 135.4 2022 133.5 2023 131.3 2024 127.0 Thereafter 740.2 Total remaining amortization for intangible assets with definite lives $ 1,301.3 The Company assesses definite-lived intangible assets whenever events or changes in circumstances indicate that the carrying amount of a definite-lived intangible asset (asset group) may not be recoverable. When events or changes in circumstances indicate that the carrying amount of a definite-lived intangible asset may not be recoverable, the Company evaluates whether the definite-lived intangible asset is impaired by comparing its carrying value to its undiscounted future cash flows. The Company assesses indefinite-lived intangible assets annually in the third quarter of the fiscal year, or whenever events or circumstances indicate that the carrying amount of an indefinite-lived intangible asset (asset group) may not be recoverable. The Company evaluates whether the indefinite-lived intangible asset is impaired by comparing its carrying value to its fair value. If the carrying value of a definite-lived or indefinite-lived intangible asset is not recoverable, an impairment loss is recognized based on the amount by which the carrying value exceeds the fair value. The Company performed an annual impairment assessment in third quarter of fiscal 2020 and 2019 and did not recognize any intangible asset impairment charges. |
Debt
Debt | 9 Months Ended |
Jul. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt (In millions) July 31, 2020 October 31, 2019 Overdraft and other credit facilities $ 52.7 $ 63.7 Term loan 500.0 500.0 Less: unamortized debt issuance cost (0.1 ) — Short-term debt $ 552.6 $ 563.7 Revolving credit 478.0 264.0 Term loans 850.0 1,000.0 Other 0.1 0.2 Less: unamortized debt issuance cost (0.3 ) (1.6 ) Long-term debt 1,327.8 1,262.6 Total debt $ 1,880.4 $ 1,826.3 Revolving Credit and Term Loan Agreement on April 1, 2020 On April 1, 2020, the Company entered into a Revolving Credit and Term Loan Agreement (the 2020 Credit Agreement), among the Company, CooperVision International Holding Company, LP, CooperSurgical Netherlands B.V., CooperVision Holding Kft. the lenders from time to time party thereto, and KeyBank National Association, as administrative agent. The 2020 Credit Agreement provides for (a) a multicurrency revolving credit facility (the 2020 Revolving Credit Facility) in an aggregate principal amount of $1.29 billion and (b) a term loan facility (the 2020 Term Loan Facility) in an aggregate principal amount of $850.0 million , each of which, unless terminated earlier, mature on April 1, 2025. In addition, the Company has the ability from time to time to request an increase to the size of the revolving credit facility or establish one or more new term loans under the term loan facility in an aggregate amount up to $1.605 billion , subject to the discretionary participation of the lenders. Amounts outstanding under the 2020 Credit Agreement will bear interest, at the Company’s option, at either the base rate, or the adjusted LIBO rate or adjusted foreign currency rate, plus, in each case, an applicable rate of between 0.00 % and 0.50% in respect of base rate loans, and between 0.75% and 1.50% 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 2020 Credit Agreement. During the term of the 2020 Revolving Credit Facility, the Borrowers may borrow, repay and re-borrow amounts available under the Revolving Credit Facility, subject to voluntary reduction of the revolving commitment. The Company pays an annual commitment fee that ranges from 0.10% to 0.20% of the unused portion of the 2020 Revolving Credit Facility based upon the Company’s Total Leverage Ratio, as defined in the 2020 Credit Agreement. In addition to the annual commitment fee, the Company is also required to pay certain letter of credit and related fronting fees and other administrative fees pursuant to the terms of the 2020 Credit Agreement. On April 1, 2020, the Company borrowed $850.0 million under the 2020 Term Loan Facility and $445.0 million under the 2020 Revolving Credit Facility and used the proceeds to fully repay all borrowings outstanding under the 2017 Term Loan Agreement (as defined below) and transfer all letters of credit and borrowings outstanding under the 2016 Credit Agreement (as defined below) to the 2020 Credit Agreement, as further described below. At July 31, 2020, the Company had $850.0 million outstanding under the 2020 Term Loan Facility and $478.0 million outstanding under the 2020 Revolving Credit Facility. The interest rate on the 2020 Term Loan Facility was 1.17% at July 31, 2020. During the three and nine months ended July 31, 2020, the Company expensed $0.1 million and $1.8 million , respectively, related to the debt issuance costs of the 2020 Term Loan Facility. The 2020 Credit 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 2020 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 July 31, 2020, the Company was in compliance with the Interest Coverage Ratio at 17.60 to 1.00 and the Total Leverage Ratio at 2.23 to 1.00 for 2020 Credit Agreement and 2019 Term Loan Agreement discussed below. The Company, after considering the potential impacts of the COVID-19 pandemic, expects to remain in compliance with its financial maintenance covenant and meet its debt service obligations for at least the twelve months following the date of issuance of these financial statements. $500 million Term Loan on September 27, 2019, amended on April 1, 2020 On September 27, 2019 , the Company amended its existing senior unsecured term loan agreement entered into on November 1, 2018 (the 2018 Term Loan Agreement) to establish a new 364 -day senior unsecured term loan (the 2019 Term Loan Agreement) with the same parties as the 2018 Term Loan Agreement. The 2019 Term Loan Agreement modifies certain provisions of the 2018 Term Loan Agreement which, among other things, extended the maturity date to September 25, 2020 and increased the aggregate principal amount of the term loan facility from an original amount of $400 million to $500 million . The Company used the additional funds to partially repay outstanding borrowings. On April 1, 2020, the Company entered into Amendment No. 2 to the 2018 Term Loan Agreement (the Second Amendment to the 2018 Term Loan Agreement). The Second Amendment to the 2018 Term Loan Agreement further modifies the 2018 Term Loan Agreement by, among other things, conforming certain provisions therein to those contained in the 2020 Credit Agreement discussed above. At July 31, 2020 , the Company had $500.0 million outstanding under the 2019 Term Loan Agreement (including the Second Amendment to the 2018 Term Loan Agreement). Amounts outstanding under the 2019 Term Loan Agreement will bear interest, at the Company's option, at either the base rate, or the adjusted LIBOR (each as defined in the Second Amendment to 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 LIBOR loans. The weighted average interest rates for the three months and nine months ended July 31, 2020 were 0.84% and 1.73% , respectively. The 2019 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 Second Amendment to the 2018 Term Loan Agreement) consistent with the 2020 Credit Agreement discussed above. Refer to our Annual Report on Form 10-K for the fiscal year ended October 31, 2019 for more details. The following is a summary of the maximum commitments and the net amounts available to us under credit facilities discussed above as of July 31, 2020: (In millions) Facility Limit Outstanding Borrowings Outstanding Letters of Credit Total Amount Available Maturity Date 2020 Revolving Credit Facility $ 1,290.0 $ 478.0 $ 1.4 $ 810.6 April 1, 2025 2020 Term Loan Facility 850.0 850.0 n/a — April 1, 2025 2019 Term Loan 500.0 500.0 n/a — September 25, 2020 Total $ 2,640 $ 1,828 $ 1.4 $ 810.6 |
Income Taxes
Income Taxes | 9 Months Ended |
Jul. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Recent Tax Legislation Coronavirus Aid, Relief and Economic Security Act On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act) was enacted and signed into law in response to the market volatility and instability resulting from the COVID-19 pandemic. It includes a significant number of tax provisions and lifts certain deduction limitations originally imposed by the Tax Cuts and Jobs Act of 2017. The changes are mainly related to: (1) the business interest expense disallowance rules for 2019 and 2020; (2) net operating loss rules; (3) charitable contribution limitations; (4) employee retention credit; and (5) the realization of corporate alternative minimum tax credits. The Company continues to assess the impact and future implications of these provisions; however, it does not anticipate any amounts that could give rise to a material impact to the overall Consolidated Condensed Financial Statements. Effective Tax Rate The Company's income tax provision for the three and nine months ended July 31, 2020 and 2019 , were as follows: Periods Ended July 31, Three Months Nine Months (In millions) 2020 2019 2020 2019 Income tax (benefit) provision $ 11.2 $ 6.9 $ 15.6 $ 3.2 The Company's effective tax rates were 16.9% and 5.4% for the third quarter of fiscal 2020 and 2019, respectively, and 9.0% and 0.9% for the nine months ended July 31, 2020 and 2019, respectively. The increase in the effective tax rate for the third quarter of fiscal 2020 compared to fiscal 2019 was primarily due to the significant drop of profit before tax due to market volatility as a result of COVID-19 pandemic, tax expense from prior period tax return filings and a decrease of excess tax benefits from share-based compensation. The Company’s effective tax rate for the nine months ended July 31, 2020 was higher compared to the prior year period, primarily due to settlement of tax audits in fiscal 2019, revisions to the provisional tax charges relating to the 2017 Act in fiscal 2019, a decrease of excess tax benefits from share-based compensation, the significant drop of profit before tax due to market volatility as a result of COVID-19 pandemic and tax expense from prior period tax return filings. The Company’s effective tax rate for the third quarter of fiscal 2020 was lower than the U.S. statutory tax rate primarily due to excess tax benefits from share-based compensation and a favorable mix of income from foreign jurisdictions with preferential tax rates. 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 July 31, 2020, and October 31, 2019, Cooper had unrecognized tax benefits of $56.8 million and $49.7 million , respectively. The increase is primarily related to additions to current and prior period tax positions, partially offset by lapses of statute of limitations. It is our policy to recognize interest and penalties directly related to income taxes as additional income tax expense. It is reasonably possible that $19.5 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 2019 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 United Kingdom, Japan, France and Australia for the tax years 2014 through 2019. The Company is currently under audit in the United Kingdom for 2015 through 2018. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Jul. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Periods Ended July 31, Three Months Nine Months (In millions, except per share amounts) 2020 2019 2020 2019 Net income $ 55.2 $ 120.1 $ 157.2 $ 345.7 Basic: Weighted average common shares 49.1 49.5 49.1 49.4 Basic earnings per share $ 1.13 $ 2.43 $ 3.20 $ 7.00 Diluted: Weighted average common shares 49.1 49.5 49.1 49.4 Effect of dilutive stock options 0.4 0.6 0.5 0.6 Diluted weighted average common shares 49.5 50.1 49.6 50.0 Diluted earnings per share $ 1.12 $ 2.40 $ 3.17 $ 6.91 The following table sets forth stock options to purchase our 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 July 31, Three Months Nine Months (In thousands, except exercise prices) 2020 2019 2020 2019 Stock option shares excluded 392 — 207 198 Range of exercise prices $254.77-$304.54 n/a $ 304.54 $ 254.77 Restricted stock units excluded 1 18 1 19 |
Share-Based Compensation Plans
Share-Based Compensation Plans | 9 Months Ended |
Jul. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation Plans | Share-Based Compensation Plans The Company 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, 2019 . The compensation expense and related income tax benefit recognized in our Consolidated Statements of Income and Comprehensive Income for share-based awards were as follows: Periods Ended July 31, Three Months Nine Months (In millions) 2020 2019 2020 2019 Selling, general and administrative expense $ 8.1 $ 6.8 $ 25.0 $ 22.1 Cost of sales 0.9 1.0 3.1 3.9 Research and development expense 0.6 0.5 1.8 2.4 Total share-based compensation expense $ 9.6 $ 8.3 $ 29.9 $ 28.4 Related income tax benefit $ 1.2 $ 1.1 $ 3.8 $ 4.0 |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Jul. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Analysis of Changes in Accumulated Other Comprehensive (Loss) Income: (In millions) Foreign Currency Translation Adjustment Minimum Pension Liability Derivative Instruments Total Balance at October 31, 2018 $ (412.2 ) $ (18.5 ) $ — $ (430.7 ) Gross change in value 9.0 (33.4 ) — (24.4 ) Tax effect for the period — 8.0 — 8.0 Balance at October 31, 2019 $ (403.2 ) $ (43.9 ) $ — $ (447.1 ) Gross change in value 20.5 — (23.8 ) (3.3 ) Tax effect for the period — — 5.7 5.7 Balance at July 31, 2020 $ (382.7 ) $ (43.9 ) $ (18.1 ) $ (444.7 ) 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. At July 31, 2020 , $359.7 million remained authorized for repurchase under the program. There were no share repurchases under the program during the three months ended July 31, 2020 and 2019. For the nine months ended July 31, 2020 and 2019, the Company's share repurchases were as follows: Periods Ended July 31, Nine Months 2020 2019 Number of shares 160,850 24,500 Average repurchase price per share $ 296.9 $ 248.7 Total costs of shares repurchased (in millions) $ 47.8 $ 6.1 Dividends We paid a semiannual dividend of approximately $1.5 million or 3 cents per share, on February 10, 2020, to stockholders of record on January 23, 2020 . We paid another semiannual dividend of approximately $1.5 million or 3 cents |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Jul. 31, 2020 | |
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 July 31, 2020 and October 31, 2019 , 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 approximate fair value based on current market rates (Level 2). On April 6, 2020 the Company entered into six interest rate swap contracts which are used to hedge the Company’s exposure to changes in cash flows associated with its variable rate term loans and are designated as derivatives in a cash flow hedge. The payment streams are based on a total notional amount of $1.5 billion at the inception of the contracts. The interest rate swap contracts have maturities of seven years or less. The gain or loss on the derivatives is recorded as a component of accumulated other comprehensive income and subsequently reclassified into interest expense in the same period during which the hedged transaction affects earnings. The fair value of the interest rate swap contracts is measured on a recurring basis by netting the discounted future fixed cash payments and the discounted expected variable cash receipts. The variable cash receipts are based on the expectation of future interest rates (forward curves) derived from observable market interest rate curves. The interest rate swap contracts were categorized as Level 2 in the fair value hierarchy, as the inputs to the derivative pricing model are generally observable and do not contain a high level of subjectivity. Refer to Note 15. Financial Derivatives and Hedging for further information. The Company did no t have any derivative assets or liabilities including interest rate swaps, cross currency swaps or foreign currency forward contracts as of October 31, 2019 . Nonrecurring fair value measurements |
Employee Benefits
Employee Benefits | 9 Months Ended |
Jul. 31, 2020 | |
Retirement Benefits [Abstract] | |
Employee Benefits | Employee Benefits Cooper’s Retirement Income Plan (the Plan), a defined benefit plan, covers substantially all full-time United States employees. Cooper's 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 nine months ended July 31, 2020 and 2019 , reflect the following components of net periodic defined benefit costs: Periods Ended July 31, Three Months Nine Months (In millions) 2020 2019 2020 2019 Service cost $ 5.2 $ 2.2 $ 12.1 $ 7.6 Interest cost 0.9 2.1 3.5 4.6 Expected return on plan assets (3.6 ) (2.8 ) (9.0 ) (7.4 ) Recognized net actuarial gain (loss) 1.8 (0.2 ) 3.8 0.6 Net periodic defined benefit plan cost $ 4.3 $ 1.3 $ 10.4 $ 5.4 We did no t contribute to the Plan in the first nine months of fiscal 2020 and expect to contribute $23.4 million during the remainder of the year. We contributed $5.0 million to the Plan in the first nine months of fiscal 2019 . The expected rate of return on Plan assets for determining net periodic benefit plan cost is 8% . |
Contingencies
Contingencies | 9 Months Ended |
Jul. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies 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 | 9 Months Ended |
Jul. 31, 2020 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information The Company discloses information about its operating segments, which were established based on the way that management organizes segments within the Company for making operating decisions and assessing financial performance. The Company's two operating segments are described below. • CooperVision. Competes in the worldwide contact lens market by developing, manufacturing and marketing a broad range of products for contact lens wearers, featuring advanced materials and optics. CooperVision designs its products to solve vision challenges such as astigmatism, presbyopia, myopia, ocular dryness and eye fatigues, with a broad collection of spherical, toric and multifocal contact lenses. • CooperSurgical. Competes in the general health care market with a focus on advancing the health of women, babies and families through a diversified portfolio of products and services focusing on women's health and fertility. 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 July 31, Three Months Nine Months (In millions) 2020 2019 2020 2019 CooperVision net sales by category: Toric lens $ 147.6 $ 163.1 $ 436.3 $ 464.4 Multifocal lens 46.9 52.4 143.8 151.1 Single-use sphere lens 126.5 146.3 380.7 413.6 Non single-use sphere, other 128.3 147.3 375.9 434.2 Total CooperVision net sales $ 449.3 $ 509.1 $ 1,336.7 $ 1,463.3 CooperSurgical net sales by category: Office and surgical products $ 81.7 $ 106.3 $ 249.7 $ 307.7 Fertility 47.2 64.0 162.9 190.8 CooperSurgical net sales 128.9 170.3 412.6 498.5 Total net sales $ 578.2 $ 679.4 $ 1,749.3 $ 1,961.8 Operating income: CooperVision $ 93.7 $ 134.2 $ 284.4 $ 375.9 CooperSurgical (9.3 ) 20.6 (33.3 ) 59.0 Corporate (12.4 ) (12.6 ) (39.4 ) (34.8 ) Total operating income 72.0 142.2 211.7 400.1 Interest expense 5.7 16.7 30.1 53.3 Other (income) expense, net (0.1 ) (1.5 ) 8.8 (2.1 ) Income before income taxes $ 66.4 $ 127.0 $ 172.8 $ 348.9 (In millions) July 31, 2020 October 31, 2019 Total identifiable assets: CooperVision $ 4,240.8 $ 3,911.6 CooperSurgical 2,290.7 2,189.8 Corporate 216.9 173.1 Total $ 6,748.4 $ 6,274.5 Geographic information: Periods Ended July 31, Three Months Nine Months (In millions) 2020 2019 2020 2019 Net sales to unaffiliated customers by country of domicile: United States $ 263.7 $ 306.2 $ 779.6 $ 891.1 Europe 185.2 222.7 577.3 642.0 Rest of world 129.3 150.5 392.4 428.7 Total $ 578.2 $ 679.4 $ 1,749.3 $ 1,961.8 (In millions) July 31, 2020 October 31, 2019 Net property, plant and equipment by country of domicile: United States $ 686.2 $ 626.5 Europe 367.6 358.8 Rest of world 183.9 146.8 Total $ 1,237.7 $ 1,132.1 |
Financial Derivatives and Hedgi
Financial Derivatives and Hedging | 9 Months Ended |
Jul. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Derivatives and Hedging | Financial Derivatives and Hedging As part of the Company’s overall risk management practices the Company enters into financial derivatives, interest rate swaps designated as cash flow hedges, to hedge the floating interest rate on its debt. The Company records all derivatives on its consolidated condensed balance sheets at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting, and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. All of the Company's derivatives have satisfied the criteria necessary to apply hedge accounting. The gain or loss on derivative instruments designated and qualifying for cash flow hedge accounting is deferred in other comprehensive income. The changes in fair value for all trades that are not designated for hedge accounting are recognized in current period earnings. Deferred gains or losses from designated cash flow hedges are reclassified into earnings in the period that the hedged interest expense affects earnings. The effectiveness of cash flow hedges is assessed at inception and quarterly thereafter. The Company does not offset fair value amounts recognized for derivative instruments in its consolidated condensed balance sheet for presentation purposes. Credit risk related to derivative transactions reflects the risk that a party to the transaction could fail to meet its obligation under the derivative contracts. Therefore, the Company’s exposure to the counterparty’s credit risk is generally limited to the amounts, if any, by which the counterparty’s obligations to the Company exceed the Company’s obligations to the counterparty. The Company’s policy is to enter into contracts only with financial institutions which meet certain minimum credit ratings to help mitigate counterparty credit risk. As of July 31, 2020, the Company had the following outstanding derivatives designated as hedging instruments: (In millions, except for number of instruments) Number of Instruments Notional Value Interest Rate Swap Contracts 6 $ 1,500 These contracts have maturities of seven years or less. The pre-tax impact of loss on derivatives designated for hedge accounting recognized in other comprehensive income (loss) was $23.8 million ( $18.1 million , net of tax) as of July 31, 2020. The Company did not have any derivatives designated as hedging instruments for the period ended July 31, 2019. The following table summarizes the fair values of derivative instruments as of the periods indicated and the line items in the accompanying condensed consolidated balance sheets where the instruments are recorded: Derivative Liabilities (In millions) July 31, 2020 July 31, 2019 Derivatives designated as cash flow hedges Balance sheet location Interest rate swap contracts Other current liabilities $ 0.7 $ — Interest rate swap contracts Other non-current liabilities 23.1 — $ 23.8 $ — The following table summarizes the amounts recognized with respect to our derivative instruments within the accompanying condensed consolidated statements of income: Periods Ended July 31, Three Months Nine Months (In millions) 2020 2019 2020 2019 Derivatives designated as cash flow hedges Location of Loss Recognized on Derivatives Interest rate swap contracts Interest expense $ 1.8 $ — $ 1.6 $ — The Company expects that $7.0 million recorded as a component of accumulated other comprehensive income (loss) will be realized in the statements of earnings over the next twelve months and the amount will vary depending on prevailing interest rates. The following table details the changes in accumulated other comprehensive income: (In millions) Amount Beginning balance gain / (loss) as of October 31, 2019 $ — Amount recognized in other comprehensive income on interest rate swap contracts, gross (25.4 ) Amount reclassified from other comprehensive income into earnings, gross 1.6 Ending balance gain / (loss) as of July 31, 2020 $ (23.8 ) |
General (Policies)
General (Policies) | 9 Months Ended |
Jul. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Leases | Leases We consider an arrangement a lease if the arrangement transfers the right to control the use of an identified asset in exchange for consideration. We have operating leases, but do not have material financing leases. Lease right-of-use assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make payments arising from the lease agreement. These assets and liabilities are recognized at the commencement of the lease based upon the present value of the future minimum lease payments over the lease term. The lease term reflects the noncancelable period of the lease together with periods covered by an option to extend or terminate the lease when management is reasonably certain that it will exercise such option. Changes in the lease term assumption could impact the right-of-use assets and lease liabilities recognized on the balance sheet. As our leases typically do not contain a readily determinable implicit rate, we determine the present value of the lease liability using our incremental borrowing rate at the lease commencement date based on the lease term on a collateralized basis. |
Estimates | Estimates The World Health Organization categorized the Coronavirus disease 2019 (COVID-19) as a pandemic. The COVID-19 pandemic has caused a severe global health crisis, along with economic and societal disruptions and uncertainties, which have negatively impacted business and healthcare activity globally. As a result of healthcare systems responding to the demands of managing the pandemic, governments around the world imposing measures designed to reduce the transmission of the COVID-19 virus, and individuals responding to the concerns of contracting the COVID-19 virus, many optical practitioners & retailers, hospitals, medical offices and fertility clinics closed their facilities, restricted access, or delayed or canceled patient visits, exams and elective medical procedures, and many customers that have reopened are experiencing reduced patient visits. This has had, and we believe will continue to have, an adverse effect on our sales, operating results and cash flows. The preparation of Consolidated Condensed Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of net sales and expenses during the reporting period. Actual results could differ from those estimates particularly as it relates to estimates reliant on forecasts and other assumptions reasonably available to the Company and the uncertain future impacts of the COVID-19 pandemic and related economic disruptions. The extent to which the COVID-19 pandemic and related economic disruptions impact our business and financial results will depend on future developments including, but not limited to, the continued spread, duration and severity of the COVID-19 pandemic; the occurrence, spread, duration and severity of any subsequent wave or waves of outbreaks; the actions taken by the U.S. and foreign governments to contain the COVID-19 pandemic, address its impact or respond to the reduction in global and local economic activity; the occurrence, duration and severity of a global, regional or national recession, depression or other sustained adverse market event; the impact of the developments described above on our customers and suppliers; and how quickly and to what extent normal economic and operating conditions can resume. The accounting matters assessed included, but were not limited to: • allowance for doubtful accounts and credit losses • carrying value of inventory • the carrying value of goodwill and other long-lived assets. |
Accounting Pronouncements Recently Adopted and Accounting Pronouncements Issued Not Yet Adopted | Accounting Pronouncements Recently Adopted In May 2020, the SEC adopted the final rule under SEC release No. 33-10786, Amendments to Financial Disclosures about Acquired and Disposed Businesses , amending Rule 1-02(w)(2) which includes amendments to certain of its rules and forms related to the disclosure of financial information regarding acquired or disposed businesses. Among other changes, the amendments impact SEC rules relating to (1) the definition of “significant” subsidiaries, (2) requirements to provide financial statements for “significant” acquisitions, and (3) revisions to the formulation and usage of pro forma financial information. The final rule is effective on January 1, 2021; however, voluntary early adoption is permitted. The Company early adopted the provisions of the final rule in the third quarter of fiscal 2020. The guidance did not have a material impact on the Company’s consolidated financial statements and disclosures. I n February 2016, the Financial Accounting Standards Board (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 the underlying asset by lessors that are not manufacturers or dealers and modifies transition disclosure requirements for changes in accounting principles and other technical updates. We adopted this standard using the optional transition method and recorded an adjustment to the Consolidated Condensed Balance Sheet on November 1, 2019. We have implemented changes to certain business processes, systems and internal controls to support adoption of the new standard and the related disclosure requirements, including the implementation of a third-party leasing software solution. We elected the package of transition expedients, which allows us to keep our existing lease classifications and not reassess whether any existing contracts as of the date of adoption are leases or contain leases and not reassess initial direct costs. In addition, we elected the practical expedients to combine lease and non-lease components for our leases, and for leases with an initial term of 12 months or less to recognize the associated lease payments in the Consolidated Statements of Income and Comprehensive Income on a straight-line basis over the lease term. As of July 31, 2020 , the aggregate balances of lease right-of-use assets and lease liabilities were $ 258.9 million and $ 271.0 million, respectively. The standard did not affect our Consolidated Statements of Income and Comprehensive Income or Consolidated Condensed Statements of Cash Flows. We will continue to disclose comparative reporting periods prior to November 1, 2019 under the previous accounting guidance, ASC 840 Leases. Accounting Pronouncements Issued Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ” and subsequent amendments to the initial guidance: ASU 2018-19 “Codification Improvements to Topic 326, Financial Instruments-Credit Losses ”, ASU 2019-04 “ Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments” , ASU 2019-05 “ Financial Instruments-Credit Losses ”, ASU 2019-11 “ Codification Improvements to Topic 326, Financial Instruments - Credit Losses” (collectively, “Topic 326”), ASU 2020-02 Financial Instruments—Credit Losses (Topic 326) and Leases (Topic 842) and ASU 2020-03 Codification Improvements to Financial Instruments. Topic 326 requires measurement and recognition of expected credit losses for financial assets held. Topic 326 is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2019, which means it will be effective for our fiscal year beginning November 01, 2020. Early adoption is permitted. We are currently evaluating the impact of Topic 326 on our Consolidated Condensed Financial Statements. The Company's exposure to credit losses may increase if our customers are adversely affected by changes in healthcare laws, coverage or governmental and insurance reimbursement, economic pressures or uncertainty associated with local or global economic recessions, disruption associated with the current COVID-19 pandemic, or other customer-specific factors. Although the Company has historically not experienced significant credit losses, it is possible that there could be an adverse impact as cash flows are impacted by responses of customers to the COVID-19 pandemic. 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 Topic 808 and Topic 606 to clarify that transactions in a collaborative arrangement should be accounted for under Topic 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. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, which means it will be effective for our fiscal year beginning November 1, 2020. Early adoption is permitted. The adoption of this guidance will not have a material impact on our Consolidated Condensed Financial Statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This guidance removes certain exceptions to the general principles in Topic 740 and enhances and simplifies various aspects of the income tax accounting guidance, including requirements such as tax basis step-up in goodwill obtained in a transaction that is not a business combination, ownership changes in investments, and interim-period accounting for enacted changes in tax law. This standard is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2020. Early adoption is permitted. We are currently evaluating the impact of ASU 2019-12 on our Consolidated Condensed Financial Statements, which is effective for the Company in our fiscal year and interim periods beginning on November 1, 2021. In January 2020, the FASB issued ASU 2020-01 Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) - Clarifying the Interactions between Topic 321, Topic 323, and Topic 815. This guidance addresses accounting for the transition into and out of the equity method and provides clarification of the interaction of rules for equity securities, the equity method of accounting, and forward contracts and purchase options on certain types of securities. This standard is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2020. Early adoption is permitted. We are currently evaluating the impact of ASU 2020-01 on our Consolidated Condensed Financial Statements, which is effective for the Company in our fiscal year and interim periods beginning on November 1, 2021. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform ( Topic 848 ): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . This guidance provides optional expedients and exceptions for applying generally accepted accounting principles (GAAP) to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. This guidance is effective for all entities as of March 12, 2020 through December 31, 2022. We are currently evaluating the impact of ASU 2020-04 on our Consolidated Condensed Financial Statements. In August 2020, the FASB issued ASU 2020-06, Debt— Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40) . This update amends the guidance on convertible instruments and the derivatives scope exception for contracts in an entity's own equity and improves and amends the related EPS guidance for both Subtopics. This standard is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2021, which means it will be effective for our fiscal year beginning November 1, 2022. Early adoption is permitted but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. We are currently evaluating the impact of ASU 2020-06 on our Consolidated Condensed Financial Statements. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Jul. 31, 2020 | |
Leases [Abstract] | |
Leases on the Consolidated Condensed Balance Sheet | The following table presents information about leases on the Consolidated Condensed Balance Sheet: (In millions) July 31, 2020 Operating Leases Operating lease right-of-use assets $ 258.9 Operating lease liabilities, current 32.3 Operating lease liabilities, non-current 236.6 Total operating lease liabilities $ 268.9 Weighted average remaining lease term (in years) 11.3 Weighted average discount rate 3 % |
Lease Cost | The following table presents information about lease expense in our Consolidated Statements of Income and Comprehensive Income: Periods Ended July 31, Three Months Nine Months (In millions) 2020 2020 Operating lease expense $ 10.6 $ 30.2 Short-term lease expense 1.1 3.3 Variable lease expense $ 0.5 $ 1.3 The following table presents supplemental cash flow information about the Company’s leases: Periods Ended July 31, Three Months Nine Months (In millions) 2020 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 10.5 $ 30.1 |
Minimum Rental Payments required under Operating Leases | The minimum rental payments required under operating leases that have initial or remaining noncancelable lease terms in excess of one year as of July 31, 2020 are: (In millions) Remainder of 2020 $ 10.1 2021 38.8 2022 35.0 2023 31.1 2024 28.8 2025 and thereafter 179.5 Total lease payments 323.3 Less: interest 54.4 Present value of lease liabilities $ 268.9 |
Future Minimum Lease Payments for Operating Leases under ASC 840 | As previously disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2019 , and under previous lease accounting standard ASC 840, Leases, the aggregate future noncancelable minimum rental payments on its operating leases, as of October 31, 2019 , were as follows: (In millions) 2020 $ 38.5 2021 34.9 2022 31.2 2023 28.0 2024 26.5 2025 and thereafter 173.6 Total future minimum lease payments $ 332.7 |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Jul. 31, 2020 | |
Business Combination And Asset Acquisition [Abstract] | |
Total purchase consideration for business and asset 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 2020 and 2019 : (In millions) July 31, 2020 October 31, 2019 Customer relationships $ 6.5 $ 7.5 Technology — 12.3 Trademarks — 10.2 Other — 0.1 Total identifiable intangible assets $ 6.5 $ 30.1 Goodwill 1.8 29.8 Net tangible assets 0.8 7.3 Total purchase price $ 9.1 $ 67.2 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Jul. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | (In millions) July 31, 2020 October 31, 2019 Raw materials $ 156.1 $ 131.4 Work-in-process 13.4 13.3 Finished goods 425.4 362.2 Total inventories $ 594.9 $ 506.9 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Jul. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | Goodwill (In millions) CooperVision CooperSurgical Total Balance at October 31, 2019 $ 1,765.4 $ 663.5 $ 2,428.9 Current period additions — 1.8 1.8 Foreign currency translation adjustment 10.0 4.3 14.3 Balance at July 31, 2020 $ 1,775.4 $ 669.6 $ 2,445.0 |
Schedule of finite-lived intangible assets | Other Intangible Assets July 31, 2020 October 31, 2019 (In millions) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Weighted Average Amortization Period (in years) Intangible assets with definite lives: Trademarks $ 148.4 $ 35.1 $ 148.5 $ 27.3 14 Composite intangible asset 1,061.9 194.7 1,061.9 141.6 15 Technology 401.3 244.4 399.9 221.2 11 Customer relationships 365.1 211.6 357.6 194.0 13 License and distribution rights and other 27.9 17.4 27.9 15.3 11 2,004.6 $ 703.3 1,995.8 $ 599.4 14 Less: accumulated amortization and translation 703.3 599.4 Intangible assets with definite lives, net 1,301.3 1,396.4 Intangible assets with indefinite lives, net (1) 10.1 8.9 Total other intangibles, net $ 1,311.4 $ 1,405.3 (1) Intangible assets with indefinite lives include technology and trademarks. |
Schedule of indefinite-lived intangible assets | Other Intangible Assets July 31, 2020 October 31, 2019 (In millions) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Weighted Average Amortization Period (in years) Intangible assets with definite lives: Trademarks $ 148.4 $ 35.1 $ 148.5 $ 27.3 14 Composite intangible asset 1,061.9 194.7 1,061.9 141.6 15 Technology 401.3 244.4 399.9 221.2 11 Customer relationships 365.1 211.6 357.6 194.0 13 License and distribution rights and other 27.9 17.4 27.9 15.3 11 2,004.6 $ 703.3 1,995.8 $ 599.4 14 Less: accumulated amortization and translation 703.3 599.4 Intangible assets with definite lives, net 1,301.3 1,396.4 Intangible assets with indefinite lives, net (1) 10.1 8.9 Total other intangibles, net $ 1,311.4 $ 1,405.3 (1) Intangible assets with indefinite lives include technology and trademarks. |
Remaining amortization expenses for intangible assets with definite lives | As of July 31, 2020 , the estimation of amortization expenses for intangible assets with definite lives is as follows: Fiscal years: (In millions) Remainder of 2020 $ 33.9 2021 135.4 2022 133.5 2023 131.3 2024 127.0 Thereafter 740.2 Total remaining amortization for intangible assets with definite lives $ 1,301.3 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Jul. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of debt | The following is a summary of the maximum commitments and the net amounts available to us under credit facilities discussed above as of July 31, 2020: (In millions) Facility Limit Outstanding Borrowings Outstanding Letters of Credit Total Amount Available Maturity Date 2020 Revolving Credit Facility $ 1,290.0 $ 478.0 $ 1.4 $ 810.6 April 1, 2025 2020 Term Loan Facility 850.0 850.0 n/a — April 1, 2025 2019 Term Loan 500.0 500.0 n/a — September 25, 2020 Total $ 2,640 $ 1,828 $ 1.4 $ 810.6 (In millions) July 31, 2020 October 31, 2019 Overdraft and other credit facilities $ 52.7 $ 63.7 Term loan 500.0 500.0 Less: unamortized debt issuance cost (0.1 ) — Short-term debt $ 552.6 $ 563.7 Revolving credit 478.0 264.0 Term loans 850.0 1,000.0 Other 0.1 0.2 Less: unamortized debt issuance cost (0.3 ) (1.6 ) Long-term debt 1,327.8 1,262.6 Total debt $ 1,880.4 $ 1,826.3 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Jul. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax (benefit) provision | The Company's income tax provision for the three and nine months ended July 31, 2020 and 2019 , were as follows: Periods Ended July 31, Three Months Nine Months (In millions) 2020 2019 2020 2019 Income tax (benefit) provision $ 11.2 $ 6.9 $ 15.6 $ 3.2 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Jul. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | Periods Ended July 31, Three Months Nine Months (In millions, except per share amounts) 2020 2019 2020 2019 Net income $ 55.2 $ 120.1 $ 157.2 $ 345.7 Basic: Weighted average common shares 49.1 49.5 49.1 49.4 Basic earnings per share $ 1.13 $ 2.43 $ 3.20 $ 7.00 Diluted: Weighted average common shares 49.1 49.5 49.1 49.4 Effect of dilutive stock options 0.4 0.6 0.5 0.6 Diluted weighted average common shares 49.5 50.1 49.6 50.0 Diluted earnings per share $ 1.12 $ 2.40 $ 3.17 $ 6.91 |
Schedule of stock options and restricted stock units that were not included in the diluted earnings per share calculation | The following table sets forth stock options to purchase our 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 July 31, Three Months Nine Months (In thousands, except exercise prices) 2020 2019 2020 2019 Stock option shares excluded 392 — 207 198 Range of exercise prices $254.77-$304.54 n/a $ 304.54 $ 254.77 Restricted stock units excluded 1 18 1 19 |
Share-Based Compensation Plans
Share-Based Compensation Plans (Tables) | 9 Months Ended |
Jul. 31, 2020 | |
Share-based Payment Arrangement [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 Statements of Income and Comprehensive Income for share-based awards were as follows: Periods Ended July 31, Three Months Nine Months (In millions) 2020 2019 2020 2019 Selling, general and administrative expense $ 8.1 $ 6.8 $ 25.0 $ 22.1 Cost of sales 0.9 1.0 3.1 3.9 Research and development expense 0.6 0.5 1.8 2.4 Total share-based compensation expense $ 9.6 $ 8.3 $ 29.9 $ 28.4 Related income tax benefit $ 1.2 $ 1.1 $ 3.8 $ 4.0 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Jul. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Schedule of changes in accumulated other comprehensive (loss) income | Analysis of Changes in Accumulated Other Comprehensive (Loss) Income: (In millions) Foreign Currency Translation Adjustment Minimum Pension Liability Derivative Instruments Total Balance at October 31, 2018 $ (412.2 ) $ (18.5 ) $ — $ (430.7 ) Gross change in value 9.0 (33.4 ) — (24.4 ) Tax effect for the period — 8.0 — 8.0 Balance at October 31, 2019 $ (403.2 ) $ (43.9 ) $ — $ (447.1 ) Gross change in value 20.5 — (23.8 ) (3.3 ) Tax effect for the period — — 5.7 5.7 Balance at July 31, 2020 $ (382.7 ) $ (43.9 ) $ (18.1 ) $ (444.7 ) The following table details the changes in accumulated other comprehensive income: (In millions) Amount Beginning balance gain / (loss) as of October 31, 2019 $ — Amount recognized in other comprehensive income on interest rate swap contracts, gross (25.4 ) Amount reclassified from other comprehensive income into earnings, gross 1.6 Ending balance gain / (loss) as of July 31, 2020 $ (23.8 ) |
Schedule of share repurchases | For the nine months ended July 31, 2020 and 2019, the Company's share repurchases were as follows: Periods Ended July 31, Nine Months 2020 2019 Number of shares 160,850 24,500 Average repurchase price per share $ 296.9 $ 248.7 Total costs of shares repurchased (in millions) $ 47.8 $ 6.1 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 9 Months Ended |
Jul. 31, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Net Periodic Pension Costs | Our results of operations for the three and nine months ended July 31, 2020 and 2019 , reflect the following components of net periodic defined benefit costs: Periods Ended July 31, Three Months Nine Months (In millions) 2020 2019 2020 2019 Service cost $ 5.2 $ 2.2 $ 12.1 $ 7.6 Interest cost 0.9 2.1 3.5 4.6 Expected return on plan assets (3.6 ) (2.8 ) (9.0 ) (7.4 ) Recognized net actuarial gain (loss) 1.8 (0.2 ) 3.8 0.6 Net periodic defined benefit plan cost $ 4.3 $ 1.3 $ 10.4 $ 5.4 |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Jul. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of segment information | Segment information: Periods Ended July 31, Three Months Nine Months (In millions) 2020 2019 2020 2019 CooperVision net sales by category: Toric lens $ 147.6 $ 163.1 $ 436.3 $ 464.4 Multifocal lens 46.9 52.4 143.8 151.1 Single-use sphere lens 126.5 146.3 380.7 413.6 Non single-use sphere, other 128.3 147.3 375.9 434.2 Total CooperVision net sales $ 449.3 $ 509.1 $ 1,336.7 $ 1,463.3 CooperSurgical net sales by category: Office and surgical products $ 81.7 $ 106.3 $ 249.7 $ 307.7 Fertility 47.2 64.0 162.9 190.8 CooperSurgical net sales 128.9 170.3 412.6 498.5 Total net sales $ 578.2 $ 679.4 $ 1,749.3 $ 1,961.8 Operating income: CooperVision $ 93.7 $ 134.2 $ 284.4 $ 375.9 CooperSurgical (9.3 ) 20.6 (33.3 ) 59.0 Corporate (12.4 ) (12.6 ) (39.4 ) (34.8 ) Total operating income 72.0 142.2 211.7 400.1 Interest expense 5.7 16.7 30.1 53.3 Other (income) expense, net (0.1 ) (1.5 ) 8.8 (2.1 ) Income before income taxes $ 66.4 $ 127.0 $ 172.8 $ 348.9 |
Schedule of identifiable assets by segment | (In millions) July 31, 2020 October 31, 2019 Total identifiable assets: CooperVision $ 4,240.8 $ 3,911.6 CooperSurgical 2,290.7 2,189.8 Corporate 216.9 173.1 Total $ 6,748.4 $ 6,274.5 |
Schedule of net sales to unaffiliated customers by country of domicile | Geographic information: Periods Ended July 31, Three Months Nine Months (In millions) 2020 2019 2020 2019 Net sales to unaffiliated customers by country of domicile: United States $ 263.7 $ 306.2 $ 779.6 $ 891.1 Europe 185.2 222.7 577.3 642.0 Rest of world 129.3 150.5 392.4 428.7 Total $ 578.2 $ 679.4 $ 1,749.3 $ 1,961.8 |
Schedule of net property, plant and equipment by country of domicile | (In millions) July 31, 2020 October 31, 2019 Net property, plant and equipment by country of domicile: United States $ 686.2 $ 626.5 Europe 367.6 358.8 Rest of world 183.9 146.8 Total $ 1,237.7 $ 1,132.1 |
Financial Derivatives and Hed_2
Financial Derivatives and Hedging (Tables) | 9 Months Ended |
Jul. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of outstanding derivatives designated as hedging instruments | As of July 31, 2020, the Company had the following outstanding derivatives designated as hedging instruments: (In millions, except for number of instruments) Number of Instruments Notional Value Interest Rate Swap Contracts 6 $ 1,500 |
Schedule of fair values of derivative instruments in condensed consolidated balance sheets | The following table summarizes the fair values of derivative instruments as of the periods indicated and the line items in the accompanying condensed consolidated balance sheets where the instruments are recorded: Derivative Liabilities (In millions) July 31, 2020 July 31, 2019 Derivatives designated as cash flow hedges Balance sheet location Interest rate swap contracts Other current liabilities $ 0.7 $ — Interest rate swap contracts Other non-current liabilities 23.1 — $ 23.8 $ — |
Schedule of derivative instruments recognized in condensed consolidated statements of income | The following table summarizes the amounts recognized with respect to our derivative instruments within the accompanying condensed consolidated statements of income: Periods Ended July 31, Three Months Nine Months (In millions) 2020 2019 2020 2019 Derivatives designated as cash flow hedges Location of Loss Recognized on Derivatives Interest rate swap contracts Interest expense $ 1.8 $ — $ 1.6 $ — |
Schedule of changes in accumulated other comprehensive income | Analysis of Changes in Accumulated Other Comprehensive (Loss) Income: (In millions) Foreign Currency Translation Adjustment Minimum Pension Liability Derivative Instruments Total Balance at October 31, 2018 $ (412.2 ) $ (18.5 ) $ — $ (430.7 ) Gross change in value 9.0 (33.4 ) — (24.4 ) Tax effect for the period — 8.0 — 8.0 Balance at October 31, 2019 $ (403.2 ) $ (43.9 ) $ — $ (447.1 ) Gross change in value 20.5 — (23.8 ) (3.3 ) Tax effect for the period — — 5.7 5.7 Balance at July 31, 2020 $ (382.7 ) $ (43.9 ) $ (18.1 ) $ (444.7 ) The following table details the changes in accumulated other comprehensive income: (In millions) Amount Beginning balance gain / (loss) as of October 31, 2019 $ — Amount recognized in other comprehensive income on interest rate swap contracts, gross (25.4 ) Amount reclassified from other comprehensive income into earnings, gross 1.6 Ending balance gain / (loss) as of July 31, 2020 $ (23.8 ) |
General (Details)
General (Details) $ in Millions | Jul. 31, 2020USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Operating lease right-of-use assets | $ 258.9 |
Lease liability | $ 271 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | Jul. 31, 2020USD ($) |
Leases [Abstract] | |
Commitments under finance lease arrangements | $ 2.1 |
Leases - Leases on the Consolid
Leases - Leases on the Consolidated Condensed Balance Sheet (Details) $ in Millions | Jul. 31, 2020USD ($) |
Operating Leases | |
Operating lease right-of-use assets | $ 258.9 |
Operating lease liabilities, current | 32.3 |
Operating lease liabilities, non-current | 236.6 |
Total operating lease liabilities | $ 268.9 |
Operating lease, weighted average remaining lease term | 11 years 3 months 18 days |
Operating lease, weighted average discount rate | 3.00% |
Leases - Lease Expense on Conso
Leases - Lease Expense on Consolidated Statements of Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Jul. 31, 2020 | Jul. 31, 2020 | |
Leases [Abstract] | ||
Operating lease expense | $ 10.6 | $ 30.2 |
Short-term lease expense | 1.1 | 3.3 |
Variable lease expense | $ 0.5 | $ 1.3 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Jul. 31, 2020 | Jul. 31, 2020 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 10.5 | $ 30.1 |
Leases - Minimum Rental Payment
Leases - Minimum Rental Payments required under Operating Leases (Details) $ in Millions | Jul. 31, 2020USD ($) |
Leases [Abstract] | |
Remainder of 2020 | $ 10.1 |
2021 | 38.8 |
2022 | 35 |
2023 | 31.1 |
2024 | 28.8 |
2025 and thereafter | 179.5 |
Total lease payments | 323.3 |
Less: interest | 54.4 |
Present value of lease liabilities | $ 268.9 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments for Operating Leases under ASC 840 (Details) $ in Millions | Oct. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 38.5 |
2021 | 34.9 |
2022 | 31.2 |
2023 | 28 |
2024 | 26.5 |
2025 and thereafter | 173.6 |
Total future minimum lease payments | $ 332.7 |
Acquisitions - Total Purchase C
Acquisitions - Total Purchase Consideration for Business and Asset Acquisitions (Details) - USD ($) $ in Millions | Jul. 31, 2020 | Oct. 31, 2019 |
Schedule Of Business Acquisitions And Asset Acquisition, By Acquisition [Line Items] | ||
Goodwill | $ 2,445 | $ 2,428.9 |
Series Of Individually Immaterial Business Acquisitions And Asset Acquisitions | ||
Schedule Of Business Acquisitions And Asset Acquisition, By Acquisition [Line Items] | ||
Total identifiable intangible assets | 6.5 | 30.1 |
Goodwill | 1.8 | 29.8 |
Net tangible assets | 0.8 | 7.3 |
Total purchase price | 9.1 | 67.2 |
Series Of Individually Immaterial Business Acquisitions And Asset Acquisitions | Customer relationships | ||
Schedule Of Business Acquisitions And Asset Acquisition, By Acquisition [Line Items] | ||
Total identifiable intangible assets | 6.5 | 7.5 |
Series Of Individually Immaterial Business Acquisitions And Asset Acquisitions | Technology | ||
Schedule Of Business Acquisitions And Asset Acquisition, By Acquisition [Line Items] | ||
Total identifiable intangible assets | 0 | 12.3 |
Series Of Individually Immaterial Business Acquisitions And Asset Acquisitions | Trademarks | ||
Schedule Of Business Acquisitions And Asset Acquisition, By Acquisition [Line Items] | ||
Total identifiable intangible assets | 0 | 10.2 |
Series Of Individually Immaterial Business Acquisitions And Asset Acquisitions | Other | ||
Schedule Of Business Acquisitions And Asset Acquisition, By Acquisition [Line Items] | ||
Total identifiable intangible assets | $ 0 | $ 0.1 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jul. 31, 2020 | Oct. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 156.1 | $ 131.4 |
Work-in-process | 13.4 | 13.3 |
Finished goods | 425.4 | 362.2 |
Inventories, net | $ 594.9 | $ 506.9 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Goodwill (Details) $ in Millions | 9 Months Ended |
Jul. 31, 2020USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 2,428.9 |
Net additions | 1.8 |
Translation | 14.3 |
Ending balance | 2,445 |
CooperVision | |
Goodwill [Roll Forward] | |
Beginning balance | 1,765.4 |
Net additions | 0 |
Translation | 10 |
Ending balance | 1,775.4 |
CooperSurgical | |
Goodwill [Roll Forward] | |
Beginning balance | 663.5 |
Net additions | 1.8 |
Translation | 4.3 |
Ending balance | $ 669.6 |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2020 | Jul. 31, 2019 | Apr. 30, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment of goodwill in reporting units | $ 0 | $ 0 | |||
Asset impairments | $ 0 | ||||
Gain on sale of an intangible | $ 0 | $ 0 | $ 0 | $ 19,000,000 | |
CooperSurgical | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Proceeds from sale of exclusive distribution right to distribute Filshie Clip System in the U.S. | $ 21,000,000 | ||||
Gain on sale of an intangible | $ 19,000,000 |
Intangible Assets - Schedule _2
Intangible Assets - Schedule of Other Intangible Assets (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jul. 31, 2020 | Oct. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 2,004.6 | $ 1,995.8 |
Accumulated Amortization | 703.3 | 599.4 |
Intangible assets with definite lives, net | $ 1,301.3 | 1,396.4 |
Weighted Average Amortization Period (in years) | 14 years | |
Intangible assets with indefinite lives, net | $ 10.1 | 8.9 |
Total other intangibles, net | 1,311.4 | 1,405.3 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 148.4 | 148.5 |
Accumulated Amortization | $ 35.1 | 27.3 |
Weighted Average Amortization Period (in years) | 14 years | |
Composite intangible asset | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,061.9 | 1,061.9 |
Accumulated Amortization | $ 194.7 | 141.6 |
Weighted Average Amortization Period (in years) | 15 years | |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 401.3 | 399.9 |
Accumulated Amortization | $ 244.4 | 221.2 |
Weighted Average Amortization Period (in years) | 11 years | |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 365.1 | 357.6 |
Accumulated Amortization | $ 211.6 | 194 |
Weighted Average Amortization Period (in years) | 13 years | |
License and distribution rights and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 27.9 | 27.9 |
Accumulated Amortization | $ 17.4 | $ 15.3 |
Weighted Average Amortization Period (in years) | 11 years |
Intangible Assets - Remaining A
Intangible Assets - Remaining Amortization Expenses for Intangible Assets with Definite Lives (Details) - USD ($) $ in Millions | Jul. 31, 2020 | Oct. 31, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2020 | $ 33.9 | |
2021 | 135.4 | |
2022 | 133.5 | |
2023 | 131.3 | |
2024 | 127 | |
Thereafter | 740.2 | |
Intangible assets with definite lives, net | $ 1,301.3 | $ 1,396.4 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Millions | Jul. 31, 2020 | Oct. 31, 2019 |
Short-term Debt | ||
Short-term debt | $ 552.6 | $ 563.7 |
Less: unamortized debt issuance cost | (0.1) | 0 |
Long-term Debt | ||
Less: unamortized debt issuance cost | (0.3) | (1.6) |
Long-term debt | 1,327.8 | 1,262.6 |
Total debt | 1,880.4 | 1,826.3 |
Term loans | ||
Long-term Debt | ||
Long-term debt, gross | 850 | 1,000 |
Other | ||
Long-term Debt | ||
Long-term debt, gross | 0.1 | 0.2 |
Revolving credit | Line of credit | ||
Long-term Debt | ||
Long-term debt, gross | 478 | 264 |
Overdraft and other credit facilities | ||
Short-term Debt | ||
Short-term debt | 52.7 | 63.7 |
Term loan | ||
Short-term Debt | ||
Short-term debt | $ 500 | $ 500 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | Apr. 01, 2020 | Sep. 27, 2019 | Jul. 31, 2020 | Jul. 31, 2020 | Oct. 31, 2019 | Nov. 01, 2018 |
Schedule of Long Term And Short Term Debt Instruments [Line Items] | ||||||
Short-term debt | $ 552,600,000 | $ 552,600,000 | $ 563,700,000 | |||
Term loan | ||||||
Schedule of Long Term And Short Term Debt Instruments [Line Items] | ||||||
Short-term debt | 500,000,000 | 500,000,000 | $ 500,000,000 | |||
Credit Agreement 2020 | Line of Credit | Revolving Credit Facility | ||||||
Schedule of Long Term And Short Term Debt Instruments [Line Items] | ||||||
Aggregate principal amount | $ 1,290,000,000 | 1,290,000,000 | 1,290,000,000 | |||
Proceeds from line of credit | $ 445,000,000 | |||||
Debt outstanding | 478,000,000 | 478,000,000 | ||||
Credit Agreement 2020 | Line of Credit | Revolving Credit Facility | Minimum | ||||||
Schedule of Long Term And Short Term Debt Instruments [Line Items] | ||||||
Commitment fee percentage | 0.10% | |||||
Credit Agreement 2020 | Line of Credit | Revolving Credit Facility | Maximum | ||||||
Schedule of Long Term And Short Term Debt Instruments [Line Items] | ||||||
Commitment fee percentage | 0.20% | |||||
Credit Agreement 2020 | Line of Credit | Term Loan Facility 2020 | ||||||
Schedule of Long Term And Short Term Debt Instruments [Line Items] | ||||||
Aggregate principal amount | $ 850,000,000 | 850,000,000 | 850,000,000 | |||
Proceeds from line of credit | 850,000,000 | |||||
Debt outstanding | $ 850,000,000 | $ 850,000,000 | ||||
Interest rate | 1.17% | 1.17% | ||||
Expensed debt issuance costs | $ 100,000 | $ 1,800,000 | ||||
Credit Agreement 2020 | Line of Credit | Revolving Credit Facility And Term Loan Facility 2020 | ||||||
Schedule of Long Term And Short Term Debt Instruments [Line Items] | ||||||
Potential additional borrowing capacity | $ 1,605,000,000 | |||||
Required minimum interest coverage ratio | 3 | |||||
Required maximum total leverage ratio | 3.75 | |||||
Credit Agreement 2020 | Line of Credit | Revolving Credit Facility And Term Loan Facility 2020 | Base Rate | Minimum | ||||||
Schedule of Long Term And Short Term Debt Instruments [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 0.00% | |||||
Credit Agreement 2020 | Line of Credit | Revolving Credit Facility And Term Loan Facility 2020 | Base Rate | Maximum | ||||||
Schedule of Long Term And Short Term Debt Instruments [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 0.50% | |||||
Credit Agreement 2020 | Line of Credit | Revolving Credit Facility And Term Loan Facility 2020 | London Interbank Offered Rate (LIBOR) | Minimum | ||||||
Schedule of Long Term And Short Term Debt Instruments [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 0.75% | |||||
Credit Agreement 2020 | Line of Credit | Revolving Credit Facility And Term Loan Facility 2020 | London Interbank Offered Rate (LIBOR) | Maximum | ||||||
Schedule of Long Term And Short Term Debt Instruments [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 1.50% | |||||
Credit Agreement 2020 and Term Loan Agreement 2019 | ||||||
Schedule of Long Term And Short Term Debt Instruments [Line Items] | ||||||
Interest coverage ratio | 17.60 | 17.60 | ||||
Total leverage ratio | 2.23 | 2.23 | ||||
Interest coverage ratio and total leverage ratio, expected minimum compliance period | 12 months | |||||
Term Loan Agreement 2019 | Term loan | ||||||
Schedule of Long Term And Short Term Debt Instruments [Line Items] | ||||||
Debt instrument, face amount | $ 500,000,000 | $ 500,000,000 | $ 500,000,000 | |||
Debt term | 364 days | |||||
Short-term debt | $ 500,000,000 | $ 500,000,000 | ||||
Weighted average interest rate | 0.84% | 1.73% | ||||
Term Loan Agreement 2019 | Term loan | Base Rate | ||||||
Schedule of Long Term And Short Term Debt Instruments [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 0.00% | |||||
Term Loan Agreement 2019 | Term loan | London Interbank Offered Rate (LIBOR) | ||||||
Schedule of Long Term And Short Term Debt Instruments [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 0.60% | |||||
Term Loan Agreement 2018 | Term loan | ||||||
Schedule of Long Term And Short Term Debt Instruments [Line Items] | ||||||
Debt instrument, face amount | $ 400,000,000 |
Debt - Schedule of Maximum Comm
Debt - Schedule of Maximum Commitments and Net Amounts Available under Credit Facilities (Details) - USD ($) | Jul. 31, 2020 | Apr. 01, 2020 | Oct. 31, 2019 | Sep. 27, 2019 |
Line of Credit Facility [Line Items] | ||||
Short-term debt | $ 552,600,000 | $ 563,700,000 | ||
Total debt | 1,880,400,000 | 1,826,300,000 | ||
Credit Agreement 2020 | Line of Credit | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Facility Limit | 1,290,000,000 | $ 1,290,000,000 | ||
Outstanding Borrowings | 478,000,000 | |||
Outstanding Letters of Credit | 1,400,000 | |||
Total Amount Available | 810,600,000 | |||
Credit Agreement 2020 | Line of Credit | Term Loan Facility 2020 | ||||
Line of Credit Facility [Line Items] | ||||
Facility Limit | 850,000,000 | $ 850,000,000 | ||
Outstanding Borrowings | 850,000,000 | |||
Credit Agreement 2020 and Term Loan Agreement 2019 | ||||
Line of Credit Facility [Line Items] | ||||
Total | 2,640,000,000 | |||
Total debt | 1,828,000,000 | |||
Term loan | ||||
Line of Credit Facility [Line Items] | ||||
Short-term debt | 500,000,000 | $ 500,000,000 | ||
Term loan | Term Loan Agreement 2019 | ||||
Line of Credit Facility [Line Items] | ||||
Facility Limit | 500,000,000 | $ 500,000,000 | ||
Short-term debt | $ 500,000,000 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax (Benefit) Provision (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Income tax (benefit) provision | $ 11.2 | $ 6.9 | $ 15.6 | $ 3.2 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | Oct. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||||
Effective income tax rate | 16.90% | 5.40% | 9.00% | 0.90% | |
Unrecognized tax benefits | $ 56.8 | $ 56.8 | $ 49.7 | ||
Unrecognized tax benefits that could be settled during the next twelve months | $ 19.5 | $ 19.5 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Jul. 31, 2020 | Apr. 30, 2020 | Jan. 31, 2020 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | |
Earnings Per Share [Abstract] | ||||||||
Net income | $ 55.2 | $ 11.5 | $ 90.5 | $ 120.1 | $ 122.4 | $ 103.2 | $ 157.2 | $ 345.7 |
Basic: | ||||||||
Weighted average common shares (in shares) | 49.1 | 49.5 | 49.1 | 49.4 | ||||
Basic earnings per share (in dollars per share) | $ 1.13 | $ 2.43 | $ 3.20 | $ 7 | ||||
Diluted: | ||||||||
Weighted average common shares (in shares) | 49.1 | 49.5 | 49.1 | 49.4 | ||||
Effect of potential dilutive shares (in shares) | 0.4 | 0.6 | 0.5 | 0.6 | ||||
Diluted weighted average common shares (in shares) | 49.5 | 50.1 | 49.6 | 50 | ||||
Diluted earnings per share attributable to Cooper stockholders (in dollars per share) | $ 1.12 | $ 2.40 | $ 3.17 | $ 6.91 |
Earnings Per Share - Schedule_2
Earnings Per Share - Schedule of Stock Options and Restricted Stock Units that were not Included in the Diluted Earnings Per Share Calculation (Details) - $ / shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of stock option shares and restricted stock units excluded (in shares) | 19 | |||
Range of exercise prices, lower limit | $ 254.77 | $ 304.54 | $ 254.77 | |
Range of exercise prices, upper limit | $ 304.54 | $ 304.54 | $ 254.77 | |
Stock Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of stock option shares and restricted stock units excluded (in shares) | 392 | 0 | 207 | 198 |
Restricted Stock Units (RSUs) | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of stock option shares and restricted stock units excluded (in shares) | 1 | 18 | 1 |
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 | 9 Months Ended | ||
Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | $ 9.6 | $ 8.3 | $ 29.9 | $ 28.4 |
Related income tax benefit | 1.2 | 1.1 | 3.8 | 4 |
Selling, general and administrative expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | 8.1 | 6.8 | 25 | 22.1 |
Cost of sales | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | 0.9 | 1 | 3.1 | 3.9 |
Research and development expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | $ 0.6 | $ 0.5 | $ 1.8 | $ 2.4 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Changes in Accumulated Other Comprehensive Income (Loss) Income (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Jul. 31, 2020 | Oct. 31, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 3,628.6 | |
Gross change in value | (3.3) | $ (24.4) |
Tax effect for the period | 5.7 | 8 |
Ending balance | 3,760.4 | 3,307.8 |
Foreign Currency Translation Adjustment | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (403.2) | |
Gross change in value | 20.5 | 9 |
Tax effect for the period | 0 | 0 |
Ending balance | (382.7) | (412.2) |
Minimum Pension Liability | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (43.9) | |
Gross change in value | 0 | (33.4) |
Tax effect for the period | 0 | 8 |
Ending balance | (43.9) | (18.5) |
Derivative Instruments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 0 | |
Gross change in value | (23.8) | 0 |
Tax effect for the period | 5.7 | 0 |
Ending balance | (18.1) | 0 |
Accumulated Other Comprehensive Income (Loss) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (447.1) | |
Ending balance | $ (444.7) | $ (430.7) |
Stockholders' Equity - Share Re
Stockholders' Equity - Share Repurchases (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | Mar. 31, 2017 | Dec. 31, 2011 | |
Stockholders' Equity Note [Abstract] | ||||||
Share repurchase program, authorized amount for repurchase | $ 1,000,000,000 | $ 500,000,000 | ||||
Share repurchase program, remaining authorized amount for repurchase | $ 359,700,000 | $ 359,700,000 | ||||
Treasury stock repurchase (in shares) | 0 | 0 | 160,850 | 24,500 |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Share Repurchases (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Jul. 31, 2020 | Apr. 30, 2020 | Jul. 31, 2019 | Jan. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | |
Stockholders' Equity Note [Abstract] | ||||||
Number of shares (in shares) | 0 | 0 | 160,850 | 24,500 | ||
Average repurchase price per share (in dollars per share) | $ 296.9 | $ 248.7 | ||||
Total costs of shares repurchased (in millions) | $ 47.8 | $ 6.1 | $ 47.8 | $ 6.1 |
Stockholders' Equity - Dividend
Stockholders' Equity - Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | Aug. 07, 2020 | Feb. 10, 2020 | Jul. 31, 2020 | Jan. 31, 2020 | Jul. 31, 2019 | Jan. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 |
Class of Stock [Line Items] | ||||||||
Dividends on common stock | $ 1.5 | $ 1.5 | $ 1.5 | |||||
Dividends on common stock (in dollars per share) | $ 0.03 | $ 0.03 | $ 0.03 | $ 0.03 | $ 0.03 | |||
Subsequent Event | ||||||||
Class of Stock [Line Items] | ||||||||
Dividends on common stock | $ 1.5 | |||||||
Dividends on common stock (in dollars per share) | $ 0.03 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) | Apr. 06, 2020USD ($)interest_rate_swap_contract | Jul. 31, 2020 | Oct. 31, 2019USD ($) |
Derivative [Line Items] | |||
Derivative asset | $ 0 | ||
Derivative liability | $ 0 | ||
Interest Rate Swap | |||
Derivative [Line Items] | |||
Number of interest rate swap contracts held | interest_rate_swap_contract | 6 | ||
Interest rate swap contracts, notional amount | $ 1,500,000,000 | ||
Interest rate swap contracts, contract term (or less) | 7 years | 7 years |
Employee Benefits - Schedule of
Employee Benefits - Schedule of Components of Net Periodic Defined Benefit Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | |
Retirement Benefits [Abstract] | ||||
Service cost | $ 5.2 | $ 2.2 | $ 12.1 | $ 7.6 |
Interest cost | 0.9 | 2.1 | 3.5 | 4.6 |
Expected return on plan assets | (3.6) | (2.8) | (9) | (7.4) |
Recognized net actuarial gain (loss) | 1.8 | (0.2) | 3.8 | 0.6 |
Net periodic defined benefit plan cost | $ 4.3 | $ 1.3 | $ 10.4 | $ 5.4 |
Employee Benefits - Narrative (
Employee Benefits - Narrative (Details) - USD ($) | 9 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Retirement Benefits [Abstract] | ||
Defined benefit plan, contributions by employer | $ 0 | $ 5,000,000 |
Defined benefit plan, expected future employer contributions, remainder of fiscal year | $ 23,400,000 | |
Expected rate of return on plan assets for determining net periodic pension cost | 8.00% |
Business Segment Information -
Business Segment Information - Narrative (Details) | 9 Months Ended |
Jul. 31, 2020segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Business Segment Information _2
Business Segment Information - Schedule of Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | |
Segment Reporting Information [Line Items] | ||||
Total net sales | $ 578.2 | $ 679.4 | $ 1,749.3 | $ 1,961.8 |
Total operating income | 72 | 142.2 | 211.7 | 400.1 |
Interest expense | 5.7 | 16.7 | 30.1 | 53.3 |
Other (income) expense, net | (0.1) | (1.5) | 8.8 | (2.1) |
Income before income taxes | 66.4 | 127 | 172.8 | 348.9 |
Operating Segments | CooperVision | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 449.3 | 509.1 | 1,336.7 | 1,463.3 |
Total operating income | 93.7 | 134.2 | 284.4 | 375.9 |
Operating Segments | CooperSurgical | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 128.9 | 170.3 | 412.6 | 498.5 |
Total operating income | (9.3) | 20.6 | (33.3) | 59 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Total operating income | (12.4) | (12.6) | (39.4) | (34.8) |
Toric lens | Operating Segments | CooperVision | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 147.6 | 163.1 | 436.3 | 464.4 |
Multifocal lens | Operating Segments | CooperVision | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 46.9 | 52.4 | 143.8 | 151.1 |
Single-use sphere lens | Operating Segments | CooperVision | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 126.5 | 146.3 | 380.7 | 413.6 |
Non single-use sphere, other | Operating Segments | CooperVision | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 128.3 | 147.3 | 375.9 | 434.2 |
Office and surgical products | Operating Segments | CooperSurgical | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 81.7 | 106.3 | 249.7 | 307.7 |
Fertility | Operating Segments | CooperSurgical | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | $ 47.2 | $ 64 | $ 162.9 | $ 190.8 |
Business Segment Information _3
Business Segment Information - Schedule of Identifiable Assets by Segment (Details) - USD ($) $ in Millions | Jul. 31, 2020 | Oct. 31, 2019 |
Segment Reporting Information [Line Items] | ||
Total Identifiable assets | $ 6,748.4 | $ 6,274.5 |
Operating Segments | CooperVision | ||
Segment Reporting Information [Line Items] | ||
Total Identifiable assets | 4,240.8 | 3,911.6 |
Operating Segments | CooperSurgical | ||
Segment Reporting Information [Line Items] | ||
Total Identifiable assets | 2,290.7 | 2,189.8 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Total Identifiable assets | $ 216.9 | $ 173.1 |
Business Segment Information _4
Business Segment Information - Schedule of Net Sales to Unaffiliated Customers by Country of Domicile (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total net sales | $ 578.2 | $ 679.4 | $ 1,749.3 | $ 1,961.8 |
United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total net sales | 263.7 | 306.2 | 779.6 | 891.1 |
Europe | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total net sales | 185.2 | 222.7 | 577.3 | 642 |
Rest of world | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total net sales | $ 129.3 | $ 150.5 | $ 392.4 | $ 428.7 |
Business Segment Information _5
Business Segment Information - Schedule of Net Property, Plant and Equipment By Country of Domicile (Details) - USD ($) $ in Millions | Jul. 31, 2020 | Oct. 31, 2019 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net property, plant and equipment | $ 1,237.7 | $ 1,132.1 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net property, plant and equipment | 686.2 | 626.5 |
Europe | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net property, plant and equipment | 367.6 | 358.8 |
Rest of world | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net property, plant and equipment | $ 183.9 | $ 146.8 |
Financial Derivatives and Hed_3
Financial Derivatives and Hedging - Narrative (Details) - USD ($) $ in Millions | Apr. 06, 2020 | Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Pre-tax impact of loss on derivatives recognized in other comprehensive income (loss) | $ 23.8 | ||||
After tax impact of loss on derivatives recognized in other comprehensive income (loss) | $ 4.6 | $ 0 | 18.1 | $ 0 | |
Derivative loss expected to be realized in earnings over the next twelve months | $ (7) | ||||
Interest Rate Swap | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Interest rate swap contracts, contract term (or less) | 7 years | 7 years |
Financial Derivatives and Hed_4
Financial Derivatives and Hedging - Schedule of Outstanding Derivatives Designated as Hedging Instruments (Details) - Interest Rate Swap | Jul. 31, 2020USD ($)interest_rate_swap_contract |
Derivative [Line Items] | |
Number of Instruments | interest_rate_swap_contract | 6 |
Notional Value | $ | $ 1,500,000,000 |
Financial Derivatives and Hed_5
Financial Derivatives and Hedging - Schedule of Fair Values of Derivative Instruments in Condensed Consolidated Balance Sheets (Details) - Designated as Hedging Instrument - Interest Rate Swap - USD ($) | Jul. 31, 2020 | Jul. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Interest rate swap contracts | $ 23,800,000 | $ 0 |
Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Interest rate swap contracts | 700,000 | 0 |
Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Interest rate swap contracts | $ 23,100,000 | $ 0 |
Financial Derivatives and Hed_6
Financial Derivatives and Hedging - Schedule of Derivative Instruments Recognized in Condensed Consolidated Statements of Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | |
Interest expense | Interest Rate Swap | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Loss recognized on derivatives within interest expense | $ 1.8 | $ 0 | $ 1.6 | $ 0 |
Financial Derivatives and Hed_7
Financial Derivatives and Hedging - Schedule of Changes in Accumulated Other Comprehensive Income (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | |
AOCI Attributable To Parent, Before Reclassification And Tax [Roll Forward] | ||||
Beginning balance | $ 3,627,500,000 | $ 3,542,200,000 | $ 3,628,600,000 | $ 3,307,800,000 |
Ending balance | 3,760,400,000 | $ 3,615,500,000 | 3,760,400,000 | 3,615,500,000 |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Before Tax, Parent | ||||
AOCI Attributable To Parent, Before Reclassification And Tax [Roll Forward] | ||||
Beginning balance | 0 | |||
Ending balance | (23,800,000) | (23,800,000) | ||
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||||
AOCI Attributable To Parent, Before Reclassification And Tax [Roll Forward] | ||||
Beginning balance | 0 | $ 0 | ||
Amount recognized in other comprehensive income on interest rate swap contracts, gross | (25,400,000) | |||
Amount reclassified from other comprehensive income into earnings, gross | 1,600,000 | |||
Ending balance | $ (18,100,000) | $ (18,100,000) |
Uncategorized Items - coo10-q32
Label | Element | Value |
Accounting Standards Update [Extensible List] | us-gaap_AccountingStandardsUpdateExtensibleList | us-gaap:AccountingStandardsUpdate201616Member |
Restricted Cash and Cash Equivalents, Current | us-gaap_RestrictedCashAndCashEquivalentsAtCarryingValue | $ 900,000 |
Restricted Cash and Cash Equivalents, Current | us-gaap_RestrictedCashAndCashEquivalentsAtCarryingValue | $ 500,000 |