Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Oct. 31, 2023 | Dec. 01, 2023 | Apr. 28, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Oct. 31, 2023 | ||
Current Fiscal Year End Date | --10-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-08597 | ||
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 | NASDAQ | ||
Entity Well-Known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Documents Incorporated by Reference | Document Part of Form 10-K Portions of the Proxy Statement for the Annual Meeting Part III Our independent registered public accounting firm is KPMG LLP, San Francisco, CA, Auditor ID: 185. | ||
Entity Shell Company | false | ||
Entity Public Float | $ 18.8 | ||
Entity Common Stock, Shares Outstanding | 49,525,982 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000711404 | ||
Document Financial Statement Error Correction [Flag] | false |
Audit Information
Audit Information | 12 Months Ended |
Oct. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | San Francisco, CA |
Auditor Firm ID | 185 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Income Statement [Abstract] | |||
Net sales | $ 3,593.2 | $ 3,308.4 | $ 2,922.5 |
Cost of sales | 1,235.3 | 1,168.8 | 966.7 |
Gross profit | 2,357.9 | 2,139.6 | 1,955.8 |
Selling, general and administrative expense | 1,501.2 | 1,342.2 | 1,211.2 |
Research and development expense | 137.4 | 110.3 | 92.7 |
Amortization of intangibles | 186.2 | 179.5 | 146.1 |
Operating income | 533.1 | 507.6 | 505.8 |
Interest expense | 105.3 | 57.3 | 23.1 |
Other expense (income) | 14.9 | (25) | (8.8) |
Income before income taxes | 412.9 | 475.3 | 491.5 |
Provision for income taxes (Note 6) | 118.7 | 89.5 | (2,453.2) |
Net income | $ 294.2 | $ 385.8 | $ 2,944.7 |
Earnings per share (Note 7) | |||
Basic (in dollars per share) | $ 5.94 | $ 7.83 | $ 59.80 |
Diluted (in dollars per share) | $ 5.91 | $ 7.76 | $ 59.16 |
Number of shares used to compute earnings per share: | |||
Basic (in shares) | 49.5 | 49.3 | 49.2 |
Diluted (in shares) | 49.8 | 49.7 | 49.8 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 294.2 | $ 385.8 | $ 2,944.7 |
Other comprehensive income (loss): | |||
Cash flow hedges, net of tax of $(2.4), $26.1 and $8.2, respectively | (7) | 81.3 | 26.1 |
Change in minimum pension liability, net of tax of $1.0, $8.7 and $7.2, respectively | 3 | 27.9 | 22.6 |
Foreign currency translation adjustment | 17 | (234.7) | 82 |
Other comprehensive income (loss) | 13 | (125.5) | 130.7 |
Comprehensive income | $ 307.2 | $ 260.3 | $ 3,075.4 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Cash flow hedges, tax provision (benefit) | $ (2.4) | $ 26.1 | $ 8.2 |
Change in minimum pension liability, tax provision (benefit) | $ 1 | $ 8.7 | $ 7.2 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Oct. 31, 2023 | Oct. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 120.8 | $ 138.2 |
Trade accounts receivable, net of allowance for credit losses of $31.3 at October 31, 2023 and $20.7 at October 31, 2022 | 609.7 | 557.8 |
Inventories (Note 1) | 735.6 | 628.7 |
Prepaid expense and other current assets | 238.8 | 208.9 |
Total current assets | 1,704.9 | 1,533.6 |
Property, plant and equipment, net | 1,632.6 | 1,432.9 |
Goodwill (Note 4) | 3,624.5 | 3,609.7 |
Other intangibles, net (Note 4) | 1,710.3 | 1,885.1 |
Deferred tax assets | 2,349.5 | 2,443.1 |
Other assets | 637.1 | 587.9 |
Total assets | 11,658.9 | 11,492.3 |
Current liabilities: | ||
Short-term debt (Note 5) | 45.4 | 412.6 |
Accounts payable | 261.9 | 248.8 |
Employee compensation and benefits | 174.8 | 152.1 |
Deferred revenue | 123.6 | 93.6 |
Other current liabilities | 363.3 | 373.1 |
Total current liabilities | 969 | 1,280.2 |
Long-term debt | 2,523.8 | 2,350.8 |
Deferred tax liabilities | 101.5 | 149.9 |
Long-term tax payable | 90.2 | 113.2 |
Deferred revenue | 184.2 | 198.3 |
Other liabilities | 239.2 | 225.2 |
Total liabilities | 4,107.9 | 4,317.6 |
Contingencies (Note 11) | ||
Stockholders’ equity: | ||
Preferred stock, $10 cents par value, 1.0 shares authorized, zero shares issued or outstanding | 0 | 0 |
Common stock, $10 cents par value, 120.0 shares authorized, 53.9 issued and 49.5 outstanding at October 31, 2023 and 53.8 issued and 49.3 outstanding at October 31, 2022 | 5.4 | 5.4 |
Additional paid-in capital | 1,833.4 | 1,765.5 |
Accumulated other comprehensive loss | (453.8) | (466.8) |
Retained earnings | 6,876.1 | 6,584.9 |
Treasury stock at cost: 4.4 shares at October 31, 2023 and 4.5 shares at October 31, 2022 | (710.3) | (714.5) |
Total Cooper stockholders' equity | 7,550.8 | 7,174.5 |
Noncontrolling interests | 0.2 | 0.2 |
Stockholders’ equity (Note 8) | 7,551 | 7,174.7 |
Total liabilities and stockholders’ equity | $ 11,658.9 | $ 11,492.3 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Oct. 31, 2023 | Oct. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Trade accounts receivable, allowance for credit losses | $ 31.3 | $ 20.7 |
Preferred stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
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) | $ 0.10 | $ 0.10 |
Common stock, authorized (in shares) | 120,000,000 | 120,000,000 |
Common stock, issued (in shares) | 53,900,000 | 53,800,000 |
Common stock, outstanding (in shares) | 49,500,000 | 49,300,000 |
Treasury stock (in shares) | 4,400,000 | 4,500,000 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Common Shares | Treasury Stock | Treasury Stock Par Net Value | Additional Paid-In Capital | Accumulated Other Comprehensive Income Loss | Retained Earnings | Noncontrolling Interests | Cumulative Effect, Period of Adoption, Adjustment | Cumulative Effect, Period of Adoption, Adjustment Retained Earnings |
Common stock, beginning balance (in shares) at Oct. 31, 2020 | 49,100,000 | |||||||||
Treasury stock, beginning balance (in shares) at Oct. 31, 2020 | 4,300,000 | |||||||||
Beginning balance at Oct. 31, 2020 | $ 3,824.8 | $ 4.9 | $ (617.3) | $ 0.4 | $ 1,646.8 | $ (472) | $ 3,261.8 | $ 0.2 | $ (1.4) | $ (1.4) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 2,944.7 | 2,944.7 | ||||||||
Other comprehensive income (loss), net of tax | 130.7 | 130.7 | ||||||||
Issuance of common stock for stock plans, net and employee stock purchase plan (in shares) | 300,000 | |||||||||
Issuance of common stock for stock plans, net and employee stock purchase plan | 27.2 | $ 2.5 | 24.6 | |||||||
Treasury stock repurchase (in shares) | 100,000 | 100,000 | ||||||||
Treasury stock repurchase | (24.8) | $ (24.8) | ||||||||
Dividends on common stock ($0.03 per share) | (3) | (3) | ||||||||
Share-based compensation expense | 43.8 | 43.8 | ||||||||
Common stock, ending balance (in shares) at Oct. 31, 2021 | 49,300,000 | |||||||||
Treasury stock, ending balance (in shares) at Oct. 31, 2021 | 4,400,000 | |||||||||
Ending balance at Oct. 31, 2021 | 6,942 | $ 5 | $ (639.6) | 0.4 | 1,715.2 | (341.3) | 6,202.1 | 0.2 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 385.8 | 385.8 | ||||||||
Other comprehensive income (loss), net of tax | (125.5) | (125.5) | ||||||||
Issuance of common stock for stock plans, net and employee stock purchase plan (in shares) | 100,000 | |||||||||
Issuance of common stock for stock plans, net and employee stock purchase plan | $ 1.5 | $ 3.6 | (2.1) | |||||||
Treasury stock repurchase (in shares) | 191,200 | 100,000 | 100,000 | |||||||
Treasury stock repurchase | $ (78.5) | $ (78.5) | ||||||||
Dividends on common stock ($0.03 per share) | (3) | (3) | ||||||||
Share-based compensation expense | $ 52.4 | 52.4 | ||||||||
Common stock, ending balance (in shares) at Oct. 31, 2022 | 49,300,000 | 49,300,000 | ||||||||
Treasury stock, ending balance (in shares) at Oct. 31, 2022 | 4,500,000 | 4,500,000 | ||||||||
Ending balance at Oct. 31, 2022 | $ 7,174.7 | $ 5 | $ (714.5) | 0.4 | 1,765.5 | (466.8) | 6,584.9 | 0.2 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 294.2 | 294.2 | ||||||||
Other comprehensive income (loss), net of tax | 13 | 13 | ||||||||
Issuance of common stock for stock plans, net and employee stock purchase plan (in shares) | 200,000 | 100,000 | ||||||||
Issuance of common stock for stock plans, net and employee stock purchase plan | $ 11.3 | $ 4.2 | 7.1 | |||||||
Treasury stock repurchase (in shares) | 0 | |||||||||
Dividends on common stock ($0.03 per share) | $ (3) | (3) | ||||||||
Share-based compensation expense | $ 60.8 | 60.8 | ||||||||
Common stock, ending balance (in shares) at Oct. 31, 2023 | 49,500,000 | 49,500,000 | ||||||||
Treasury stock, ending balance (in shares) at Oct. 31, 2023 | 4,400,000 | 4,400,000 | ||||||||
Ending balance at Oct. 31, 2023 | $ 7,551 | $ 5 | $ (710.3) | $ 0.4 | $ 1,833.4 | $ (453.8) | $ 6,876.1 | $ 0.2 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 6 Months Ended | 12 Months Ended | |||||
Oct. 31, 2023 | Apr. 30, 2023 | Oct. 31, 2022 | Apr. 30, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||||||
Dividends on common stock (in dollars per share) | $ 0.03 | $ 0.03 | $ 0.03 | $ 0.03 | $ 0.03 | $ 0.03 | $ 0.03 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Cash flows from operating activities: | |||
Net income | $ 294.2 | $ 385.8 | $ 2,944.7 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 367.7 | 346.1 | 309.3 |
Share-based compensation expense | 62.1 | 54.2 | 43.8 |
Non-cash operating lease expense | 40 | 32.2 | 31.8 |
Asset impairment charges, and other | 49.4 | 4.5 | (5) |
Change in fair value of contingent consideration | (31.8) | (10.3) | 66.1 |
Deferred income taxes | 44.7 | 53.9 | (2,502.2) |
Change in assets and liabilities: | |||
Accounts receivable | (60.2) | (33.8) | (75.5) |
Inventories | (105.4) | (40.4) | (9.2) |
Other assets | (89.4) | (16.9) | (69.1) |
Operating lease right-of-use assets and liabilities, net | (34.2) | (51.3) | (27.5) |
Accounts payable | 5.5 | 49.9 | (16) |
Accrued liabilities | 71.8 | 32.4 | 59.1 |
Accrued income taxes | (0.5) | (27.4) | 10 |
Other long-term liabilities | (6.4) | (34.2) | (21.7) |
Settlement of contingent consideration | 0 | (52.3) | 0 |
Net cash provided by operating activities | 607.5 | 692.4 | 738.6 |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (392.5) | (242) | (214.4) |
Acquisitions of businesses and assets, net of cash acquired | (56.5) | (1,641.3) | (235.9) |
Proceeds from sale of interest in a subsidiary | 0 | 52.1 | 0 |
Net cash used in investing activities | (449) | (1,831.2) | (450.3) |
Cash flows from financing activities: | |||
Proceeds from long-term debt, net of issuance costs | 2,124.2 | 1,511 | 1,427.4 |
Repayments of long-term debt | (1,953.9) | (561.5) | (1,416) |
Net proceeds from (repayments of) short-term debt, other | (351.1) | 329.3 | (321.3) |
Repurchase of common stock | 0 | (78.5) | (24.8) |
Proceeds related to share-based compensation awards | 15.1 | 8.9 | 33.7 |
Payments related to share-based compensation awards | (13.1) | (16.8) | (13.2) |
Dividends on common stock | (3) | (3) | (3) |
Issuance of common stock for employee stock purchase plan | 7.9 | 7.2 | 5.8 |
Settlement of contingent consideration | 0 | (2.9) | 0 |
Net cash (used in) provided by financing activities | (173.9) | 1,193.7 | (311.4) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (2.3) | (12.9) | 2.9 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (17.7) | 42 | (20.2) |
Cash, cash equivalents, restricted cash and cash held for sale at beginning of year | 138.6 | 96.6 | 116.8 |
Cash, cash equivalents and restricted cash at end of year | 120.9 | 138.6 | 96.6 |
Supplemental disclosures of cash flow information: | |||
Interest | 117.5 | 49.1 | 28.4 |
Income taxes | 67.8 | 66.6 | 63.2 |
Operating lease liabilities | 47.5 | 45.3 | 37.4 |
Operating lease ROU assets obtained in exchange for lease obligations | 42.6 | 29.8 | 26.5 |
Reconciliation of cash flow information: | |||
Cash and cash equivalents | 120.8 | 138.2 | 95.9 |
Restricted cash included in other current assets | 0.1 | 0.4 | 0.4 |
Cash held for sale | 0 | 0 | 0.3 |
Total cash, cash equivalents, restricted cash and cash held for sale | $ 120.9 | $ 138.6 | $ 96.6 |
Organization and Significant Ac
Organization and Significant Accounting Policies | 12 Months Ended |
Oct. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Significant Accounting Policies | Note 1. Organization and Significant Accounting Policies Organization The Cooper Companies, Inc. (Cooper, we or the Company) is a global medical device company publicly traded on the Nasdaq (Nasdaq: COO). Prior to September 26, 2023, Cooper's common stock traded on the New York Stock Exchange under the symbol "COO". Cooper operates through two business units, CooperVision and CooperSurgical. • CooperVision primarily develops, manufactures and markets a broad range of soft contact lenses for the worldwide vision correction market. • CooperSurgical primarily develops, manufactures, markets medical devices and procedures solutions, and provides services to improve health care delivery to women, babies and families. Principles of Consolidation The financial statements in this report include the results of all of Cooper's consolidated entities. All significant intercompany transactions and balances are eliminated on consolidation. Use of Estimates The preparation of Consolidated 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. 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. Revenue Recognition Net Sales The Company sells its products principally to a limited number of distributors, group purchasing organizations, eye care or health care professionals including independent practices, corporate retailers, hospitals and clinics or authorized resellers (collectively, its Customers). These Customers may subsequently resell the Company’s products to eye care or health care providers and patients. In addition to product supply and distribution agreements with Customers, the Company enters into arrangements with health care providers and payors that provide for government-mandated and/or privately negotiated rebates, chargebacks and discounts with respect to the purchase of the Company’s products. The Company considers purchase orders, which in some cases are governed by master sales agreements, to be contracts with a customer. As part of its consideration of the contract, the Company evaluates certain factors including the customer’s ability to pay (or credit risk). For each contract, the Company considers the promise to transfer products, each of which is distinct, to be the identified performance obligations. Revenues from product sales are recognized when the Customer obtains control of the Company’s product, which occurs at a point in time, typically upon shipment or delivery to the Customer. Taxes collected from Customers relating to product sales and remitted to governmental authorities are excluded from revenues. The Company expenses incremental costs of obtaining a contract as and when incurred if the expected amortization period of the asset that the Company would have recognized is one year or less. See Note 12. Business Segment Information for disaggregation of revenue. Reserves for Variable Consideration Revenues from product sales are recorded at the net sales price (transaction price), which includes estimates of variable consideration for which reserves are established and which result from discounts, returns, chargebacks, rebates and other allowances that are offered within contracts between the Company and its Customers, health care providers, payors and other indirect customers relating to the Company’s sales of its products. These reserves are based on the amounts earned or to be claimed on the related sales and are classified primarily in current liabilities. Variable consideration is estimated based on the most likely amount or expected value approach, depending on which method the Company expects to better predict the amount of consideration to which it will be entitled. Once the Company elects one of the methods to estimate variable consideration for a particular type of performance obligation, the Company applies that method consistently. Where appropriate, these estimates take into consideration a range of possible outcomes which are probability-weighted for relevant factors such as the Company’s historical experience, current contractual and statutory requirements, specific known market events and trends, industry data and forecasted customer buying and payment patterns. Overall, these reserves reflect the Company’s best estimates of the amount of consideration to which it is entitled based on the terms of the contract. Trade Discounts and Allowances The Company generally provides Customers with discounts, which include incentive fees that are stated in the Company’s contracts and are recorded as a reduction of revenue in the period the related product revenue is recognized. Product Returns Consistent with industry practice, the Company generally offers Customers a limited right of return for a product that has been purchased from the Company. The Company estimates the amount of its product sales that may be returned by its Customers and records this estimate as a reduction of revenue in the period the related product revenue is recognized. Historically, returns have been infrequent and insignificant relative to our total sales. Our refund liability for product returns is included in "Other current liabilities" in our Consolidated Balance Sheets and represents the expected value of the aggregate refunds that will be due to our customers. Rebates and Chargebacks Rebates are estimated based on contractual terms, historical experience, customer mix, trend analysis and projected market conditions in the various markets served. Chargebacks for fees and discounts to providers represent the estimated obligations resulting from contractual commitments to sell products to qualified healthcare providers at prices lower than the list wholesale prices charged to the Company’s direct customers. For certain office and surgical portfolio in CooperSurgical, customers charge the Company for the difference between what they pay for the product and the ultimate selling price to the qualified healthcare providers. These reserves are established in the same period that the related revenue is recognized, resulting in a reduction of product revenue. Chargeback amounts are generally determined at the time of resale to the qualified healthcare provider by customers. CooperSurgical rebates are predominately related to the Medicaid rebate provision that is estimated based upon contractual terms, historical experience, and trend analysis. Contract Liabilities Deferred revenue primarily represents prepaid stem cell storage as part of the CooperSurgical business unit. Revenue related to stem cell storage is recognized over the service period, which can range from one year to the lifetime of a customer. The current portion of the deferred revenue balances at the beginning of each year presented were generally fully recognized in the subsequent 12-month period. Share-Based Compensation We grant various share-based compensation awards, including stock options, performance unit shares, restricted stock and restricted stock units. The Company accounts for share-based compensation expense based on estimated grant-date fair value, and expenses the amount over the vesting period of the award. Determining the fair value of share-based awards at the grant date requires judgment, including estimating Cooper's stock price volatility, employee exercise behaviors and related employee forfeiture rates. The expected life of the share-based awards is based on the expected time to post-vesting forfeiture and/or exercise. Groups of employees that have similar historical exercise behavior are considered separately for valuation purposes. In determining the expected volatility, management considers implied volatility from publicly-traded options on Cooper's common stock at the date of grant, historical volatility and other factors. The risk-free interest rate is based on the continuous rates provided by the United States Treasury with a term equal to the expected life of the award. The dividend yield is based on the projected annual dividend payment per share, divided by the stock price at the date of grant. Forfeitures are estimated at the time of grant, based on historical experience, and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Foreign Currency Translation Most of our operations outside the United States use their local currency as their functional currency. We translate these assets and liabilities into U.S. dollars at year-end exchange rates. We translate income and expense accounts at average exchange rates for the period. We record gains and losses from the translation of financial statements in foreign currencies into U.S. dollars in other comprehensive income. We record gains and losses from changes in exchange rates on transactions denominated in currencies other than each reporting location's functional currency in net income for each period . Financial Derivatives and Hedging Derivatives are recorded on the Consolidated Balance Sheets at fair value. Accounting for gains or losses resulting from changes in the values of those derivatives depends on the use of the derivative instrument and whether it qualifies for 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 Balance Sheets for presentation purposes. Fair Value Measurements 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. 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 the Company's revolving credit facility and term loans approximates fair value based on current market rates (Level 2). Refer to Note 5. Financing Arrangements for further information. The fair value of the Company's 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. The fair value of derivative instruments is included in "Other assets" in our Consolidated Balance Sheets. On our Consolidated Financial Statements. the gain or loss on the derivatives is recorded as a component of "Accumulated other comprehensive loss" and subsequently reclassified into "Interest expense" in the same period during which the hedged transaction affects earnings. Refer to Note 13. Financial Derivatives and Hedging for further information. The Company uses fair value measures for assets and liabilities acquired in an acquisition, which are considered a Level 3 measurement. C ontingent consideration for which a liability is recorded and the initial measurement of the joint venture interest are also categorized as Level 3 in the fair value hierarchy; and the change in fair value is recognized in "Selling, general and administrative expense" in the Consolidated Statements of Income. The fair value is measured by discounting expected future cash flows. The discount rate used for cash flows reflects capital market conditions and the specific risks associated with the business. Refer to Note 3. Acquisitions and Joint Venture for further information. Income Taxes Income taxes are estimated based on enacted income tax laws and the results of operations in each jurisdiction. Deferred tax assets and liabilities are estimated based on temporary differences between the financial reporting basis and income tax basis of assets and liabilities. Deferred tax assets are also estimated based on net operating loss and tax credit carryforwards. Deferred tax assets are reduced by a valuation allowance to the extent it is more likely than not they are not expected to be realized. Adjustments to deferred tax assets and liabilities due to changes in tax laws, changes in jurisdiction from intra-group transfers of assets, and changes in judgment regarding a valuation allowance are recognized in provision for income taxes in the quarter in which such changes occur. Long-term tax payable is estimated income tax to be paid for unrecognized tax benefits. A tax benefit is recognized if it is more likely than not a tax position will be sustained based on its technical merits in a tax authority examination, based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority. Adjustments to unrecognized tax benefits due to changes in judgment are recognized in provision for income taxes in the quarter in which such changes occur. Interest and penalties related to unrecognized tax benefits are recognized in provision for income taxes. Earnings Per Share We determine basic earnings per share (EPS) by using the weighted-average number of shares outstanding. We determine diluted EPS by increasing the weighted-average number of shares outstanding in the denominator by the number of outstanding dilutive equity awards using the treasury stock method. Cash and Cash Equivalents The Company considers all short-term, highly liquid investments purchased with maturities of three months or less to be cash equivalents. Inventories Inventories are stated at the lower of cost or net realizable value. Cost is computed using standard cost that approximates actual cost, on a first-in, first-out basis. October 31, (In millions) 2023 2022 Raw materials $ 207.3 $ 173.7 Work-in-process 19.0 15.2 Finished goods 509.3 439.8 $ 735.6 $ 628.7 In assessing the value of inventories, we make estimates and judgments regarding aging of inventories and other relevant issues potentially affecting the salable condition of products and estimated prices at which those products will sell. On an ongoing basis, we review the carrying value of our inventory, measuring number of months on hand and other indications of salability. We reduce the value of inventory if there are indications that the carrying value is greater than net realizable value, resulting in a new, lower-cost basis for that inventory. Subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis. While estimates are involved, historically, obsolescence has not been a significant factor due to long product dating and lengthy product life cycles. Property, Plant and Equipment We record property, plant, and equipment at cost. We compute depreciation expense using the straight-line method over the estimated useful lives of the assets. Useful lives are generally 3 to 15 years except for buildings which are depreciated over 30 to 40 years and leasehold improvements, which we amortize over the shorter of the useful life or the lease term. We charge maintenance and repairs to expense as we incur them. October 31, (In millions) 2023 2022 Land and improvements $ 20.2 $ 18.7 Buildings and improvements 488.5 415.6 Machinery and equipment 2,187.1 1,973.6 Construction in progress 486.3 393.0 Property, plant and equipment, at cost $ 3,182.1 $ 2,800.9 Less: Accumulated depreciation 1,553.3 1,387.2 Property, plant and equipment, net $ 1,628.8 $ 1,413.7 Finance lease ROU assets, net 3.8 19.2 $ 1,632.6 $ 1,432.9 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. The Company primarily has operating leases for office, manufacturing and warehouse space, vehicles, and office equipment. 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 lease payments over the lease term. The lease term reflects the noncancellable 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 Consolidated Balance Sheets. 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. The Company’s operating leases typically include non-lease components such as common-area maintenance costs. The Company has 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 in the Consolidated Balance Sheets, while the associated lease payments are expensed in the Consolidated Statements of Income and Comprehensive Income on a straight-line basis over the lease term. Operating leases are classified in “Other current liabilities”, “Other liabilities”, and “Other assets” in our Consolidated Balance Sheets. Operating lease expense is recognized on a straight-line basis over the expected lease term and included in "Selling, general and administrative expense" in our Consolidated Statements of Income. Financing leases are classified in "Property, plant and equipment, net", "Short-term debt", and "Long-term debt" in our Consolidated Balance Sheets. See Note 2. Operating Leases and Note 5. Financing Arrangements for further information. Cloud Computing Arrangements The Company capitalizes certain costs related to the acquisition and development of internal use software, including implementation costs incurred in a cloud computing arrangement, during the application development stages of projects. Capitalized implementation costs are amortized on a straight-line basis over the expected term of the hosting arrangement, which includes consideration of the non-cancellable contractual term and reasonably certain renewals. Costs incurred during the preliminary project or the post-implementation/operation stages of the project are expensed as incurred. Implementation costs are included in “Other assets” in our Consolidated Balance Sheets. Amortization of capitalized implementation costs is included in the same line item in the Consolidated Statements of Income as the expense for fees for the associated hosting arrangement. Valuation of Goodwill We evaluate 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. Goodwill is tested for impairment at the reporting unit level by performing a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying value. We perform a qualitative assessment to test each reporting unit's goodwill for impairment, which includes 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. Long-lived Assets We review long-lived assets held and used for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. If an evaluation of recoverability is required, the estimated undiscounted future cash flows associated with the asset group are compared to the asset group's carrying amount to determine if a write-down is required. If the undiscounted cash flows are less than the carrying amount, an impairment loss is recorded to the extent that the carrying amount exceeds the fair value. Indefinite-lived Intangible Assets We assess indefinite-lived intangible assets annually in the third quarter of the fiscal year, or whenever events or changes in circumstances indicate that the carrying amount of an indefinite-lived intangible asset (asset group) may not be recoverable. We evaluate whether the indefinite-lived intangible asset is impaired by comparing its carrying value to its fair value. If the carrying value of an 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. Business Combinations We routinely consummate business combinations. Results of operations for acquired companies are included in our consolidated results of operations from the date of acquisition. We recognize separately from goodwill, the identifiable assets acquired, including acquired in-process research and development, the liabilities assumed, and any noncontrolling interest in the acquiree at the acquisition date fair values as defined by accounting standards related to fair value measurements. Key assumptions routinely utilized in allocation of purchase price to intangible assets include discount rates and projected financial information such as revenue projections for companies acquired. As of the acquisition date, goodwill is measured as the excess of consideration given, over the net of the acquisition date fair values of the identifiable assets acquired and the liabilities assumed. Direct acquisition costs are expensed as incurred. For business acquisitions, the Company records tangible and intangible assets acquired and liabilities assumed at their fair values as of the applicable date of acquisition. Litigation We are subject to various legal proceedings, claims, litigation, investigations and contingencies arising out of the ordinary course of business. If we believe the likelihood of an adverse legal outcome is probable and the amount is estimable, we accrue a liability in accordance with accounting guidance for contingencies. We consult with legal counsel on matters related to litigation and seek input both within and outside the Company. Treasury Stock We record treasury stock purchases under the cost method whereby the entire cost of the acquired stock is recorded as treasury stock. Exit Charges During the second quarter of fiscal 2022, the Company initiated a plan to exit its contact lens care business, a non-core business unit of the CooperVision segment, which was completed in fiscal 2023. Exit charges recognized during the year ended October 31, 2023, were not material. Exit charges recognized during the year ended October 31, 2022, were $33.2 million, of which $26.7 million were recognized in "Cost of sales" and $6.5 million were recognized in "Selling, general and administrative expense" in our Consolidated Statements of Income. Exit charges primarily related to inventory write-down, asset impairments and employee-related costs. Government Assistance The Company at times receives government assistance primarily to support manufacturing capital expansion, to create or retain jobs, or to provide tax credits mainly for eligible research and development activities. The Company generally accounts for such government assistance by analogy to IAS 20, Accounting for Government Grants and Disclosure of Government Assistance and recognizes the assistance when it is probable that it will be received by complying with the prerequisite terms and conditions. The government assistance is recognized in income as a reduction to the cost basis of the applicable property, plant, and equipment or reduction to the related expense. Accounting Pronouncements Recently Adopted In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance . This update requires annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy. This standard was effective for fiscal years beginning after December 15, 2021. The Company adopted this guidance prospectively on November 1, 2022, and such adoption did not have a material impact on the Company's Consolidated Financial Statements. 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 and subsequent amendment to the initial guidance: ASU 2021-01, Reference Rate Reform (Topic 848): Scope (collectively, “Topic 848”). Topic 848 provides optional expedients and exceptions for applying 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. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 . ASU 2022-06 defers the sunset date of Topic 848 from December 31, 2022, to December 31, 2024. Effective February 1, 2023, the Company transitioned its credit agreements from LIBOR to the Secured Overnight Financing Rate ("SOFR"). The Company adopted this guidance prospectively on February 1, 2023, and it did not have a material impact on the Consolidated Financial Statements. Accounting Pronouncements Issued Not Yet Adopted |
Operating Leases
Operating Leases | 12 Months Ended |
Oct. 31, 2023 | |
Leases [Abstract] | |
Operating Leases | Note 2. Operating Leases The following table presents information about leases on the Consolidated Balance Sheets: October 31, 2023 2022 Operating Leases Operating lease right-of-use assets $ 241.5 $ 230.1 Operating lease liabilities, current 38.2 35.5 Operating lease liabilities, non-current 215.6 205.5 Total operating lease liabilities $ 253.8 $ 241.0 Weighted-average remaining lease term (in years) 10.0 9.8 Weighted-average discount rate 4% 3% Operating lease expense for the fiscal years ended October 31, 2023, 2022 and 2021 was $48.1 million, $45.0 million and $44.1 million. Maturity of Lease Liabilities The minimum rental payments required under operating leases that have initial or remaining noncancellable lease terms in excess of one year as of October 31, 2023 are: (In millions) 2024 46.4 2025 41.6 2026 37.7 2027 32.8 2028 26.8 Thereafter 123.4 Total lease payments $ 308.7 Less: interest 54.9 Present value of lease liabilities $ 253.8 |
Acquisitions and Joint Venture
Acquisitions and Joint Venture | 12 Months Ended |
Oct. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Joint Venture | Note 3. Acquisitions and Joint Venture All acquisitions were funded by cash generated from operations or facility borrowings. The Company believes these acquisitions strengthen CooperSurgical's and CooperVision's businesses through the addition of new distributors or complementary products and services. Fiscal Year 2023 On November 1, 2022, CooperVision completed the acquisition of a privately-held U.S.-based company that provides a broad portfolio of technologically advanced contact lens products, including scleral and hybrid lenses. The purchase price of the acquisition was $33.0 million. Assets acquired primarily comprised of $12.6 million of customer relationship related intangibles, $7.6 million of technology, $5.1 million of net assets and $7.7 million of goodwill. The goodwill is not deductible for tax purposes. Fiscal Year 2022 On May 31, 2022, CooperVision completed the acquisition of a privately-held Denmark-based contact lens distributor focusing on orthokeratology and scleral contact lenses. This acquisition expands CooperVision's ortho-k eye care portfolio in the Nordic market. On April 6, 2022, CooperSurgical completed the acquisition of a private cryopreservation services company that specializes in cryogenic services. Refer to the "Joint Venture" section below for details on formation of a joint venture with Essilor International and related activities that occurred in fiscal year 2023 and 2022 following the acquisition of SightGlass Vision, Inc. (SGV) in fiscal year 2021. On April 6, 2022, CooperSurgical entered into an asset purchase agreement to acquire Cook Medical's Reproductive Health business, a manufacturer of minimally invasive medical devices focused on the fertility, obstetrics and gynecology markets. The aggregate consideration is $875.0 million in cash, with $675.0 million payable at the closing and the remaining $200.0 million payable in $50.0 million installments following each of the first, second, third and fourth anniversaries of the closing. The transaction is subject to customary closing conditions, such as receipt of required regulatory approvals. During the year ended October 31, 2023, CooperSurgical determined that the fulfillment of certain closing conditions related to regulatory approvals was no longer probable and paid $45.0 million in expenses for a termination fee under the asset purchase agreement on August 9, 2023. The termination fee is recorded in "Selling, general and administrative expense" on the Consolidated Statements of Income. Refer to the "Subsequent Event" section below for details on the revised scope of the transaction and the closing of the updated transaction. On December 17, 2021, CooperSurgical completed the acquisition of 100% of the equity interests in Generate Life Sciences (Generate), a privately held leading provider of donor egg and sperm for fertility treatments, fertility cryopreservation services and newborn stem cell storage (cord blood & cord tissue), and paid an aggregate purchase consideration of approximately $1.663 billion, reflecting working capital, and other adjustments. The cash consideration was funded through a combination of $1.5 billion in proceeds from the issuance of a senior unsecured term loan and available cash on hand. Joint Venture On January 19, 2021, CooperVision acquired all of the remaining equity interests of SGV, a privately-held medical device company that developed spectacle lenses for myopia management. The transaction included potential payments of future consideration that were contingent upon the achievement of the regulatory approval milestone (the regulatory approval payment) and the acquired business reaching certain revenue thresholds over a specified period (the revenue payments). The undiscounted range of the contingent consideration was zero to $139.1 million payable to the other former equity interest owners. The fair value of the regulatory approval payment was determined using an option pricing framework based on the expected payment under the contractual terms and the estimates of the probability of achieving the regulatory approval. The fair value of the revenue payments was determined using a Monte Carlo simulation based on the revenue projections and the expected payment for each simulation. In March 2022, the entities amended the terms of the contingent consideration, which resulted in CooperVision paying $42.9 million to the former equity interest owners in exchange for the elimination of the revenue payments to such former equity interest owners. CooperVision recognized a net gain of $12.2 million during fiscal 2022. Further, CooperVision and Essilor International SAS (Essilor) executed a Contribution Agreement and a Stock Purchase Agreement (the "Agreements") in March 2022. Essilor paid CooperVision $52.1 million in exchange for a 50% interest in SGV and their proportionate share of the revenue payments. As part of the Agreements, each party contributed their interest in SGV and $10 million in cash to form a new joint venture. CooperVision then remeasured the fair value of its retained equity investment in the joint venture at $90.0 million which resulted in a $56.9 million gain in Other (income) expense on deconsolidation of SGV in fiscal 2022. During fiscal 2023, CooperVision determined that approval would not be achieved within the timeline set forth in the contractual terms of the regulatory approval payment and released the remaining $31.8 million contingent consideration liability. Subsequent Event On November 1, 2023, CooperSurgical closed the acquisition of select assets of Cook Medical for an aggregate consideration of $300.0 million, with $200.0 million paid at closing and $100.0 million to be paid in two $50.0 million annual installments. The assets acquired primarily comprised of minimally invasive medical devices within the obstetrics, doppler monitoring and gynecology surgery markets. The Company is in the process of finalizing purchase accounting information. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Oct. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 4. Intangible Assets Goodwill The Company has three reporting units: CooperVision and within the CooperSurgical segment, Office/Surgical and Fertility, reflecting the current way the Company manages its business. There was no impairment of goodwill in its reporting units in fiscal 2023, 2022, and 2021. (In millions) CooperVision CooperSurgical Total Balance at October 31, 2022 $ 1,710.3 $ 1,899.4 $ 3,609.7 Net changes 7.7 (3.6) 4.1 Foreign currency translation adjustment 29.6 (18.9) 10.7 Balance at October 31, 2023 $ 1,747.6 $ 1,876.9 $ 3,624.5 Of the October 31, 2023, goodwill balance, $237.6 million for CooperSurgical and $20.1 million for CooperVision is expected to be deductible for tax purposes. Of the October 31, 2022, goodwill balance, $214.1 million for CooperSurgical and $22.4 million for CooperVision was expected to be deductible for tax purposes. Other Intangible Assets October 31, 2023 October 31, 2022 (In millions) Gross Accumulated Gross Accumulated Weighted-average Amortization Period (in years) Intangible assets with definite lives: Trademarks $ 208.9 $ 81.1 $ 209.6 $ 62.4 15 Composite intangible asset 1,061.9 424.8 1,061.9 354.0 15 Technology 494.5 335.4 504.1 317.5 13 Customer relationships 1,099.2 345.8 1,092.7 287.0 19 License and distribution rights and other 51.6 28.0 50.7 23.8 11 2,916.1 $ 1,215.1 2,919.0 $ 1,044.7 16 Less: accumulated amortization and translation 1,215.1 1,044.7 Intangible assets with definite lives, net $ 1,701.0 $ 1,874.3 Intangible assets with indefinite lives, net (1) 9.3 10.8 Total other intangibles, net $ 1,710.3 $ 1,885.1 (1) Intangible assets with indefinite lives include technology and trademarks. Balances include foreign currency translation adjustments. As of October 31, 2023, the estimate of future amortization expenses for intangible assets with definite lives is as follows: Fiscal years: (In millions) 2024 $ 179.5 2025 169.5 2026 162.0 2027 147.7 2028 143.2 Thereafter 899.1 Total remaining amortization for intangible assets with definite lives $ 1,701.0 In the fourth quarter of fiscal 2023, CooperVision fully impaired some intangible assets associated with the discontinuation of certain products. The carrying value of these intangible assets were immaterial. The Company performed its annual impairment assessment in the third quarter of fiscal 2023 and determined there was no other impairment to either its definite-lived or indefinite-lived intangible assets during fiscal 2023. |
Financing Arrangements
Financing Arrangements | 12 Months Ended |
Oct. 31, 2023 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | Note 5. Financing Arrangements The Company had outstanding debt as follows: October 31, (In millions) 2023 2022 Overdraft and other credit facilities $ 44.4 $ 57.7 Term loans — 338.0 Short-term debt, excluding financing leases 44.4 395.7 Financing lease liabilities 1.0 16.9 Short-term debt $ 45.4 $ 412.6 Revolving credit $ 172.6 $ — Term loans 2,350.0 2,350.0 Other 0.2 0.2 Less: unamortized debt issuance cost (2.4) (3.1) Long-term debt, excluding financing leases 2,520.4 2,347.1 Financing lease liabilities 3.4 3.7 Long-term debt $ 2,523.8 $ 2,350.8 Total debt $ 2,569.2 $ 2,763.4 As of October 31, 2023, the Company was in compliance with all debt covenants. On February 1, 2023, the Company amended its credit agreements to transition the interest rates applicable to the loans denominated in U.S. dollars from LIBOR to SOFR, as defined in the credit agreements. Term Loan Agreement on December 17, 2021 On December 17, 2021, the Company entered into a Term Loan Agreement (the 2021 Credit Agreement) by and among the Company, the lenders from time to time party thereto, and PNC Bank, National Association, as administrative agent. The 2021 Credit Agreement provides for a term loan facility (the 2021 Term Loan Facility) in an aggregate principal amount of $1.5 billion, which, unless terminated earlier, matures on December 17, 2026. In addition, the Company has the ability from time to time to request an increase to the commitments under the 2021 Term Loan Facility or to establish a new term loan facility under the 2021 Credit Agreement in an aggregate principal amount not to exceed $1.125 billion, upon prior written notice to the administrative agent and subject to the discretionary participation of the lenders funding such term loans and certain limitations set forth in the 2021 Credit Agreement. Amounts outstanding under the 2021 Term Loan Facility will bear interest, at the Company’s option, at either (i) the alternate base rate, which is a rate per annum equal to the greatest of (a) the administrative agent’s prime rate, (b) one-half of one percent in excess of the federal funds effective rate and (c) one percent in excess of the adjusted SOFR for a one-month interest period in effect on such day, or (ii) the adjusted SOFR, plus, in each case, an applicable rate of, initially, zero basis points, in respect of base rate loans, and 75 basis points, in respect of adjusted SOFR loans. Following a specified period after the closing date, the applicable rates will be determined quarterly by reference to a grid based upon the Company’s ratio of consolidated net indebtedness to consolidated EBITDA, each as defined in the 2021 Credit Agreement. The Company may prepay loan balances from time to time, in whole or in part, without premium or penalty (other than any related breakage costs). On October 31, 2023, the Company had $1.5 billion outstanding on the 2021 Term Loan Facility and the weighted-average interest rate was 6.41%. The 2021 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 2021 Credit Agreement, consistent with the 2020 Credit Agreement discussed below. Term Loan Agreement on November 2, 2021 On November 2, 2021, the Company entered into a 364-day, $840.0 million, term loan agreement by and among the Company, the lenders party thereto and The Bank of Nova Scotia, as administrative agent, which matured subsequent to year end on November 1, 2022. The Company used part of the funds to partially repay outstanding borrowings under the 2020 Revolving Credit Facility and for general corporate purposes. The loan was fully repaid by the maturity date. 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. The Company used $850.0 million under the 2020 Term Loan Facility and $445.0 million under the 2020 Revolving Credit Facility to fully repay all borrowings outstanding under a previously existing term loan agreement and transfer all letters of credit and borrowings outstanding under a previously existing credit agreement to the 2020 Credit Agreement. The Company has an uncommitted option to increase the revolving credit facility or establish a new term loan in an aggregate amount up to $1.605 billion. On October 30, 2020, the Company entered into Amendment No. 1 to the 2020 Credit Agreement, adding CooperVision International Limited as a revolving borrower and releasing certain borrowers in the 2020 Credit Agreement. On December 17, 2021, the Company entered into Amendment No.2 to the 2020 Credit Agreement, modifying the 2020 Credit Agreement by, among other things, adding CooperSurgical Holdings Limited as a revolving borrower, releasing CooperVision Holding Kft as a borrower, and updating the benchmark replacement language in the 2020 Credit Agreement. The 2020 Credit Agreement will bear interest, at the Company’s option, at either the alternate base rate, or the adjusted SOFR, 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 SOFR 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. The Company 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. On October 31, 2023, the Company had $850.0 million outstanding under the 2020 Term Loan Facility and $172.6 million outstanding under the 2020 Revolving Credit Facility. The interest rate on the 2020 Term Loan Facility was 6.41% at October 31, 2023. The weighted-average interest rate on the 2020 Revolving Credit Facility was 6.41% at October 31, 2023. Payments on the outstanding long-term debt balance of $850.0 million are due in the fiscal year ending October 31, 2025. European and Asian Pacific Credit Facilities The Company maintains European credit facilities. The aggregate facility limit was $32.9 million and $30.7 million at October 31, 2023 and 2022, respectively. At October 31, 2023, $0.7 million of the facilities was utilized and the weighted-average interest rate on the outstanding balances was 7.82%. The Company maintains yen-denominated credit facilities in Japan. The aggregate facility limit was $74.3 million and $73.0 million at October 31, 2023 and 2022, respectively. At October 31, 2023, $41.4 million of the combined facilities was utilized and the weighted-average interest rate on the outstanding balances was 0.40%. Each facility is supported by a continuing and unconditional guaranty. |
Income Taxes
Income Taxes | 12 Months Ended |
Oct. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 6. Income Taxes In November 2020, the Company completed an intra-group transfer of certain intellectual property and related assets of CooperVision to a UK subsidiary as part of a group restructuring to establish headquarters operations in the UK. Determining fair value involved significant judgment related to future revenue growth, operating margins, and discount rates. The transfer resulted in a step-up of the UK tax-deductible basis in the intellectual property and goodwill, creating a temporary difference between the book basis and the tax basis of these assets. As a result, the Company recognized a deferred tax asset of $1,987.9 million, with a corresponding income tax benefit, during the first quarter of fiscal 2021. During the third quarter of fiscal 2021, the Company recognized a $536.7 million tax benefit related primarily to the remeasurement of this deferred tax asset caused by the UK enactment of a 25% corporate tax rate. Components of income before income taxes: Years Ended October 31, 2023 2022 2021 Income before income taxes: United States $ (135.7) $ 31.4 $ (31.0) Foreign 548.6 443.9 522.5 $ 412.9 $ 475.3 $ 491.5 Components of provision for income taxes: Years Ended October 31, (In millions) 2023 2022 2021 Current: Federal $ 37.3 $ 10.2 $ 21.0 State 3.7 3.8 1.3 Foreign 33.0 21.7 26.7 74.0 35.7 49.0 Deferred: Federal (36.7) 10.5 (8.8) State (7.5) (2.2) (0.5) Foreign 88.9 45.6 (2,492.9) 44.7 53.9 (2,502.2) Provision for income taxes $ 118.7 $ 89.5 $ (2,453.2) Reconciliation between the expected provision for income taxes at the US federal statutory rate and the provision for income taxes: Years Ended October 31, (In millions) 2023 2022 2021 Provision for income taxes at United States statutory tax rate $ 86.7 $ 99.8 $ 103.2 (Decrease) increase in taxes resulting from: Foreign earnings in jurisdictions with different tax rates 7.0 (22.3) (43.6) Foreign earnings subject to United States tax 34.3 21.1 25.4 Excess tax benefits from share-based compensation (2.4) (2.6) (13.0) Intra-group transfer to UK subsidiary — — (1,987.8) Remeasurement of deferred tax assets from UK rate change — — (536.7) Change in unrecognized tax benefits — (12.7) (7.6) State tax provision (4.2) 5.0 0.8 Other, net (2.7) 1.2 6.1 Provision for income taxes $ 118.7 $ 89.5 $ (2,453.2) Components of deferred tax assets and liabilities: Years Ended October 31, (In millions) 2023 2022 Deferred tax assets: Accounts receivable $ 7.5 $ 4.9 Inventories 14.3 6.3 Accrued liabilities, reserves and compensation accruals 94.8 79.9 Foreign deferred tax assets 2,369.5 2,500.5 Share-based compensation 14.8 14.5 Net operating loss and tax credit carryforwards 24.3 19.6 Capitalized research and experimental expenses 23.6 15.4 Total gross deferred tax assets 2,548.8 2,641.1 Less: valuation allowance (20.7) (60.1) Deferred tax assets 2,528.1 2,581.0 Deferred tax liabilities: Tax deductible goodwill (47.4) (39.7) Intangible assets (132.4) (153.8) Plant and equipment (51.2) (48.8) Foreign deferred tax liabilities (49.0) (45.5) Total gross deferred tax liabilities (280.0) (287.8) Net deferred tax assets $ 2,248.1 $ 2,293.2 In assessing the realizability of deferred tax assets, the Company analyzes whether some or all deferred tax assets will not be realized. This analysis considers historical taxable income, the projected reversal of deferred tax liabilities, projected taxable income and tax planning strategies. Based upon this analysis, it is more likely than not the deferred tax assets, net of valuation allowance, will be realized. The decrease in valuation allowance is primarily related to foreign tax attributes. At October 31, 2023, the Company had federal net operating loss carryforwards of $78.7 million and state net operating loss carryforwards of $87.1 million. Federal net operating loss carryforwards of $46.0 million expire on various dates between 2024 and 2037 and $32.7 million do not expire. The state net operating loss carryforwards expire on various dates between 2027 through 2044. A tax benefit is recognized if it is more likely than not that a tax position will be sustained on its technical merits, based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority. Changes in unrecognized tax benefits: (In millions) Balance at October 31, 2021 $ 353.8 Decrease based on tax positions in prior fiscal years (12.5) Settlements (0.2) Lapses of statutes of limitations (4.2) Balance at October 31, 2022 $ 336.9 Decrease based on tax positions in prior fiscal years (0.5) Increase based on tax positions in current fiscal year 2.0 Lapses of statutes of limitations (6.9) Balance at October 31, 2023 $ 331.5 These tax benefits, if recognized, would reduce provision for income taxes for 2023 , 2022 and 2021 , by $323.2 million, $324.3 million, and $336.5 million, respectively. Interest and penalties related to unrecognized tax benefits are recognized in provision for income taxes. As of October 31, 2023, 2022 and 2021 , accrued gross interest and penalties related to unrecognized tax benefits was $5.8 million, $5.4 million, and $6.4 million, respectively. Included in the balance of unrecognized tax benefits at October 31, 2023, is $8.1 million related to tax positions for which it is reasonably possible that the total amounts could change during the next twelve months. Filed tax returns are subject to examination by tax authorities in major tax jurisdictions after fiscal 2018, including the UK and the US. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Oct. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 7. Earnings Per Share Years Ended October 31, (In millions, except for earnings per share) 2023 2022 2021 Net income $ 294.2 $ 385.8 $ 2,944.7 Basic: Weighted-average common shares 49.5 49.3 49.2 Basic earnings per share $ 5.94 $ 7.83 $ 59.80 Diluted: Weighted-average common shares 49.5 49.3 49.2 Effect of dilutive stock plans 0.3 0.4 0.6 Diluted weighted-average common shares 49.8 49.7 49.8 Diluted earnings per share $ 5.91 $ 7.76 $ 59.16 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: Years Ended October 31, (In thousands, except exercise prices) 2023 2022 2021 Stock option shares excluded 311 227 107 Exercise prices $300.12 - $406.17 $300.12 - $406.17 $ 345.74 Restricted stock units excluded 15 87 2 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Oct. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Note 8. Stockholders’ Equity Analysis of Changes in Accumulated Other Comprehensive Income (Loss): (In millions) Foreign Currency Translation Adjustment Derivatives Minimum Pension Liability Total Balance at October 31, 2020 $ (402.3) $ (13.0) $ (56.7) $ (472.0) Gross change in value 82.2 34.3 29.8 146.3 Tax effect (0.2) (8.2) (7.2) (15.6) Balance at October 31, 2021 $ (320.3) $ 13.1 $ (34.1) $ (341.3) Gross change in value $ (234.7) $ 107.4 $ 36.6 $ (90.7) Tax effect — (26.1) (8.7) (34.8) Balance at October 31, 2022 $ (555.0) $ 94.4 $ (6.2) $ (466.8) Gross change in value $ 17.0 $ (9.4) $ 4.0 $ 11.6 Tax effect — 2.4 (1.0) 1.4 Balance at October 31, 2023 $ (538.0) $ 87.4 $ (3.2) $ (453.8) Share Repurchases In December 2011, the Company's Board of Directors authorized the 2012 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 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. As of October 31, 2023, $256.4 million remained authorized for repurchase under the program. During the year ended October 31, 2023, there were no share repurchases under the 2012 Program. During the year ended October 31, 2022, the Company repurchased 191.2 thousand shares of its common stock for $78.5 million, at an average purchase price of $410.41 per share. Dividends In fiscal 2023 and 2022, the Company declared regular dividends of 6 cents per share (a semiannual dividend of 3 cents per share) and paid a total of $3.0 million in each fiscal year. In December 2023, our Board of Directors decided to end the declaration of the semiannual dividend. Subsequent Event On December 7, 2023, we announced that our Board of Directors had approved a four-for-one stock split of our outstanding shares of common stock which we expect to be effected as of February 16, 2024. |
Stock Plans
Stock Plans | 12 Months Ended |
Oct. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Plans | Note 9. Stock Plans 2007 Long-Term Incentive Plan (2007 Plan) In March 2007, we received stockholder approval of the 2007 Plan. The 2007 Plan was subsequently amended and restated, and granted stockholder approval in March 2009, March 2011, and March 2016. The Third Amended and Restated 2007 Plan authorizes either our Board of Directors, or a designated committee thereof composed of two or more Non-Employee Directors, to grant to eligible individuals during the period ending December 31, 2026, up to 6,930,000 shares in the form of specified equity awards including stock options, restricted stock units and performance share awards. RSUs have no dividend or voting rights prior to vesting. Awards under the 2007 Plan remain outstanding but new awards are no longer being granted. 2023 Long-Term Incentive Plan (2023 Plan) In March 2023, we received stockholder approval of the 2023 Plan. The 2023 Plan authorizes either our Board of Directors, or a designated committee thereof composed of two or more Non-Employee Directors, to grant to eligible individuals up to 1,365,000 shares in the form of specified equity awards including stock options, restricted stock units (RSUs) and performance share units (PSUs), subject to adjustment for future stock splits, stock dividends, expirations, forfeitures, and similar events. In addition, the 2023 Plan includes any shares which were available for issuance under the 2007 Plan at the time of stockholder approval of this plan and shares which become available as a result of the forfeiture or expiration of awards made under the 2007 Plan. As of October 31, 2023, 1,376,240 shares remained available under the 2023 Plan for future grants. The amount of available shares includes shares which may be distributed under performance shares. Share-Based Compensation The compensation expense and related income tax benefit recognized in our Consolidated Statements of Income for share-based awards, including the Employee Stock Purchase Plan, were as follows: October 31, (In millions) 2023 2022 2021 Selling, general and administrative expense $ 54.8 $ 46.7 $ 38.4 Cost of sales 4.2 4.5 3.9 Research and development expense 3.1 3.0 2.4 Total compensation expense $ 62.1 $ 54.2 $ 44.7 Related income tax benefit $ 5.0 $ 5.0 $ 5.6 Stock Options The fair value of each stock option award granted is estimated on the date of grant using the Black-Scholes option valuation model and assumptions noted in the following table. Years Ended October 31, 2023 2022 2021 Expected life 4.5 years 4.1 years 4.0 years Expected volatility 29.5 % 25.8 % 30.3 % Risk-free interest rate 3.8 % 1.1 % 0.3 % Dividend yield 0.02 % 0.02 % 0.02 % The activity and status of our stock option plans are summarized below: Number of Weighted- Weighted- Aggregate Outstanding at October 31, 2022 1,063,843 $ 264.85 Granted 86,241 $ 329.83 Exercised (71,808) $ 155.45 Forfeited or expired (720) $ 337.72 Outstanding at October 31, 2023 1,077,556 $ 277.29 5.36 $ 53,510,367 Vested and expected to vest at October 31, 2023 1,059,841 $ 276.11 5.32 $ 53,475,275 Vested and exercisable at October 31, 2023 729,591 $ 248.34 4.38 $ 50,797,891 The weighted-average fair value of options granted during fiscal 2023 , 2022 and 2021 , estimated as of the grant date using the Black-Scholes option pricing model, was $103.17, $90.41 and $84.10, respectively. The total intrinsic value of options exercised during the fiscal years ended October 31, 2023, 2022 and 2021 was $13.4 million, $6.6 million and $64.7 million, respectively. Stock options outstanding under our current plans have been granted at prices which are either equal to or above the market value of the common stock on the date of grant. Options granted under the 2007 Plan and 2023 Plan generally vest over a range of three Restricted Stock Units RSUs granted under the 2007 Plan and the 2023 Plan generally vest over three 2022 and 2021 was $37.3 million, $46.1 million and $50.1 million, respectively. The status of our non-vested RSUs is summarized below: Number of Weighted- Non-vested RSUs at October 31, 2022 289,238 $ 340.68 Granted 145,655 $ 335.32 Vested and issued (107,403) $ 320.22 Forfeited or expired (37,461) $ 344.72 Non-vested RSUs at October 31, 2023 290,029 $ 345.03 Performance Units Performance units may be granted to selected key employees with vesting contingent upon meeting certain performance goals over a defined performance cycle, usually three years. Performance units, if earned, may be paid in cash or shares of common stock. We granted performance unit awards on December 13, 2022, December 7, 2021, and December 8, 2020, under the 2007 Plan, with three-year performance periods ending in fiscal 2025, fiscal 2024, and fiscal 2023 respectively. The performance shares actually earned will range from zero to 200% of the target number of performance shares. Subject to limited exceptions set forth in the performance share agreement, any shares earned will be distributed in the subsequent fiscal year after the performance period. The fair value of performance unit awards is estimated on the date of grant based on the current market price of our common stock. The amount of compensation expense related to these performance unit awards is reviewed each fiscal quarter and adjustments are recorded after assessing the probability of achieving the performance goals. We recognize compensation expense ratably over the vesting period. As of October 31, 2023, there was $12.3 million of total unrecognized compensation cost related to non-vested performance units, which is expected to be recognized over a remaining weighted-average vesting period of 1.7 years. Employee Stock Purchase Plan On March 18, 2019, the Company received stockholder approval for the Employee Stock Purchase Plan (ESPP). The first offering period began on November 4, 2019, and offerings are generally made on a quarterly basis. The purpose of the ESPP is to provide eligible employees of the Company with the opportunity to acquire shares of common stock at 85% of the market price on the last business day of each offering period by means of accumulated payroll deductions. The ESPP initially authorized the issuance of 1,000,000 shares of common stock. These shares will be made available from shares of common stock reacquired by the Company as Treasury Stock. During fiscal 2023 and 2022, we issued 26,116 and 22,695 shares to our employees under the ESPP, respectively. At October 31, 2023, the number of shares remaining available for future issuance under the ESPP was 921,975 shares. Total ESPP share-based compensation recognized during fiscal 2023 and 2022 was $1.3 million and $1.1 million, respectively. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Oct. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefits | Note 10. Employee Benefits Cooper's Retirement Income Plan The Company's Retirement Income Plan (Plan), a defined benefit plan, is only available to full-time United States employees, subject to the soft freeze mentioned below. The Company'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. The Company 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. The Company uses individual spot rates along the yield curve that correspond with the timing of each benefit payment to determine the service and interest costs of components of its net periodic benefit cost utilizing the correlation of projected cash outflows and corresponding spot rates on the yield curve. The following table sets forth the Plan's benefit obligations and fair value of the Plan assets at October 31, 2023, 2022 and 2021 and the funded status of the Plan and net periodic pension costs for each of the years in the three-year periods ended October 31, 2023. The net amounts recognized in the Consolidated Balance Sheets consist of noncurrent liabilities. The accumulated benefit obligation was $131.5 million, $134.9 million and $207.6 million for the years ended October 31, 2023, 2022 and 2021. Retirement Income Plan Years Ended October 31, (In millions) 2023 2022 2021 Change in benefit obligation Benefit obligation, beginning of year $ 148.0 $ 230.9 $ 218.8 Service cost 10.0 18.3 17.2 Interest cost 7.9 5.1 4.4 Benefits paid (10.5) (13.1) (11.5) Actuarial (gain)/loss (10.9) (93.2) 2.0 Benefit obligation, end of year $ 144.5 $ 148.0 $ 230.9 Change in plan assets Fair value of plan assets, beginning of year $ 142.9 $ 199.5 $ 159.5 Actual return on plan assets 4.1 (43.5) 38.8 Employer contributions 1.1 — 12.7 Benefits paid (10.5) (13.1) (11.5) Fair value of plan assets, end of year $ 137.6 $ 142.9 $ 199.5 Funded status at end of year $ (6.9) $ (5.1) $ (31.4) Years Ended October 31, (In millions) 2023 2022 2021 Amounts recognized in accumulated other comprehensive income consist of: Net loss $ 4.1 $ 8.0 $ 44.4 Accumulated other comprehensive income $ 4.1 $ 8.0 $ 44.4 Years Ended October 31, (In millions) 2023 2022 2021 Reconciliation of (prepaid) accrued pension cost: (Prepaid)/Accrued pension cost at prior fiscal year end $ (2.9) $ (13.0) $ (14.8) Net periodic benefit cost 6.8 10.1 14.5 Contributions made during the year (1.1) — (12.7) (Prepaid)/Accrued pension cost at fiscal year end $ 2.8 $ (2.9) $ (13.0) Years Ended October 31, (In millions) 2023 2022 2021 Components of net periodic benefit cost and other amounts recognized in the Consolidated Statements of Income: Net periodic benefit cost: Service cost $ 10.0 $ 18.3 $ 17.2 Interest cost 7.9 5.1 4.4 Expected return on plan assets (11.1) (15.5) (12.5) Recognized actuarial loss — 2.2 5.4 Net periodic pension cost $ 6.8 $ 10.1 $ 14.5 Years Ended October 31, (In millions) 2023 2022 2021 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Net (gain) loss $ (4.0) $ (34.1) $ (24.4) Amortizations of net gain — (2.5) (5.4) Total recognized in other comprehensive (income) loss $ (4.0) $ (36.6) $ (29.8) Total recognized in net periodic benefit cost and other comprehensive (income) loss $ 2.8 $ (26.2) $ (15.2) Years Ended October 31, 2023 2022 2021 Weighted-average assumptions used in computing the net periodic pension cost and projected benefit obligation at year end: Discount rate for determining net periodic pension cost: Projected Benefit Obligation 5.74 % 2.76 % 2.78 % Service Cost 5.77 % 2.79 % 2.86 % Interest Cost 5.51 % 2.28 % 2.07 % Discount rate for determining benefit obligations at year end 6.22 % 5.74 % 2.76 % Rate of compensation increase for determining expense 3.60 % 3.60 % 3.60 % Rate of compensation increase for determining benefit obligations at year end 3.60 % 3.60 % 3.60 % Expected rate of return on plan assets for determining net periodic pension cost 8.00 % 8.00 % 8.00 % Expected rate of return on plan assets at year end 8.00 % 8.00 % 8.00 % Measurement date for determining assets and benefit obligations at year end 10/31/2023 10/31/2022 10/31/2021 The discount rate enables us to state expected future cash flows at a present value on the measurement date. The discount rate used for the Plan is based primarily on the yields of a universe of high-quality corporate bonds rated AA or above, with durations corresponding to the expected durations of the benefit obligations. A change in the discount rate will cause the present value of benefit obligations to change in the opposite direction. The expected rate of return on plan assets was determined based on a review of historical returns, both for this plan and for medium- to large-sized defined benefit pension funds with similar asset allocations. This review generated separate expected returns for each asset class listed below. These expected future returns were then blended based on this Plan's target asset allocation. Reasons for Significant Liability Gains and Losses The projected benefit obligation experienced a net gain of approximately $10.9 million during the year. This net gain is the result of assumption changes resulting in a gain of approximately $12.9 million, offset by losses of approximately $2.0 million due to demographic experience. The key assumption changes were the increase in the discount rate (gain of $7.8 million), a changes in assumptions for lump sum determination (gain of $5.1 million). Demographic losses were due to the net effect of retirement rates, termination rates, salary increases and other experience that was different from assumed. Plan Assets Weighted-average asset allocations at year end, by asset category are as follows: Years Ended October 31, 2023 2022 2021 Asset category Cash and cash equivalents 2.9 % 2.0 % 5.0 % Corporate common stock 26.0 % 33.6 % 31.6 % Equity mutual funds 39.1 % 33.9 % 32.8 % Balanced funds 2.4 % 1.8 % 1.4 % Alternative investments 0.7 % 0.9 % 1.0 % Bond mutual funds 28.9 % 27.8 % 28.2 % Total 100.0 % 100.0 % 100.0 % The Plan invests in a diversified portfolio of assets intended to minimize risk of poor returns while maximizing expected portfolio returns. To achieve the long-term rate of return, plan assets will be invested in a mixture of instruments, including but not limited to, corporate common stock (may include the Company's stock), investment grade bond funds, cash, balanced funds, real estate funds, small or large cap equity funds and international equity funds. The allocation of assets will be determined by the investment manager and will typically include 50% to 70% equities with the remainder invested in fixed income, hedging strategy funds and cash. Presently, this diversified portfolio is expected to return roughly 8% in the long run. As of the measurement date of October 31, 2023, the fair value measurement of plan assets is as follows: (In millions) Total Quoted Prices Significant Significant Asset category Cash and cash equivalents $ 3.9 $ 3.9 $ — $ — Corporate common stock 35.8 35.8 — — Equity mutual funds 53.9 53.9 — — Balanced Funds 3.3 3.3 — — Alternative investments 0.9 0.9 — — Fixed income 39.8 15.8 24.0 — Total $ 137.6 $ 113.6 $ 24.0 $ — The Plan has an established process for determining the fair value of plan assets. For investments in equity and bond mutual funds, and real estate funds, fair value is based on observable, Level 1 inputs. Plan Cash Flows Contributions The Company made $1.1 million and no contributions to the Plan in fiscal 2023 and fiscal 2022, respectively. The Company contribution to the Plan was $12.7 million for fiscal 2021. The Company closely monitors the funded status of the Plan with respect to legislative and accounting rules. The Company expected to make contributions totaling $1.1 million to the Plan during fiscal 2024. Estimated Future Benefit Payments Years (In millions) 2024 $ 10.9 2025 $ 11.0 2026 $ 10.3 2027 $ 11.2 2028 $ 12.3 2029-2033 $ 65.9 Plan Soft Freeze On June 18, 2019, the Board of Directors of the Company approved a soft freeze of the Plan effective August 1, 2019. The Plan was closed to employees hired on or after August 1, 2019, including former participants or employees rehired on or after August 1, 2019, and employees hired in connection with a stock or asset acquisition, merger or other similar transaction on or after August 1, 2019. Existing employees already covered by the Plan, continue to accrue their benefits. Cooper's 401(k) Savings Plan Cooper's 401(k) savings plan provides for the deferral of compensation as described in the Internal Revenue Code and is available to substantially all United States employees. Employees who participate in the 401(k) plan may elect to have up to 75% of their pre-tax salary or wages deferred and contributed to the trust established under the Plan. Cooper's contributions on account of participating employees, were $10.1 million, $9.0 million and $7.2 million for the years ended October 31, 2023, 2022 and 2021, respectively. |
Contingencies
Contingencies | 12 Months Ended |
Oct. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Note 11. 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 | 12 Months Ended |
Oct. 31, 2023 | |
Segment Reporting [Abstract] | |
Business Segment Information | Note 12. 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. • 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. The Company uses operating income, as presented in our financial reports, as the primary measure of segment profitability. The Company does not allocate costs from corporate functions to segment operating income. The Company uses the same accounting policies to generate segment results as it does for consolidated results. No customers accounted for 10% or more of our consolidated net revenue in fiscal 2023, 2022 and 2021. Total identifiable assets are those used in continuing operations except cash and cash equivalents, which the Company includes as corporate assets. The following table presents a summary of our business segment net sales: (In millions) 2023 2022 2021 CooperVision net sales by category: Toric lens $ 828.7 $ 737.4 $ 697.5 Multifocal lens 305.7 264.4 238.6 Single-use sphere lens 705.4 661.6 616.3 Non single-use sphere, other 583.9 579.9 599.6 Total CooperVision net sales 2,423.7 2,243.3 2,152.0 CooperSurgical net sales by category: Office and surgical 689.5 633.6 451.3 Fertility 480.0 431.5 319.2 Total CooperSurgical net sales 1,169.5 1,065.1 770.5 Total net sales $ 3,593.2 $ 3,308.4 $ 2,922.5 Information by business segment for each of the years in the three-year period ended October 31, 2023 follows: (In millions) CooperVision CooperSurgical Corporate Consolidated 2023 Net sales $ 2,423.7 $ 1,169.5 $ — $ 3,593.2 Operating income (loss) $ 587.7 $ 16.1 $ (70.7) $ 533.1 Interest expense 105.3 Other expense, net 14.9 Income before income taxes $ 412.9 Identifiable assets $ 7,044.0 $ 4,351.8 $ 263.1 $ 11,658.9 Depreciation expense $ 156.9 $ 24.6 $ — $ 181.5 Amortization expense $ 32.9 $ 153.3 $ — $ 186.2 Capital expenditures $ 364.4 $ 28.1 $ — $ 392.5 2022 Net sales $ 2,243.3 $ 1,065.1 $ — $ 3,308.4 Operating income (loss) $ 494.3 $ 67.1 $ (53.8) $ 507.6 Interest expense 57.3 Other (income), net (25.0) Income before income taxes $ 475.3 Identifiable assets $ 6,778.9 $ 4,407.8 $ 305.6 $ 11,492.3 Depreciation expense $ 144.5 $ 22.1 $ — $ 166.6 Amortization expense $ 32.3 $ 147.2 $ — $ 179.5 Capital expenditures $ 223.0 $ 19.0 $ — $ 242.0 2021 Net sales $ 2,152.0 $ 770.5 $ — $ 2,922.5 Operating income (loss) $ 481.3 $ 71.8 $ (47.3) $ 505.8 Interest expense 23.1 Other expense, net (8.8) Income before income taxes $ 491.5 Identifiable assets $ 6,965.9 $ 2,395.6 $ 244.7 $ 9,606.2 Depreciation expense $ 148.3 $ 14.9 $ — $ 163.2 Amortization expense $ 35.7 $ 110.4 $ — $ 146.1 Capital expenditures $ 190.0 $ 24.4 $ — $ 214.4 Information by geographical area by country of domicile for each of the years in the three-year period ended October 31, 2023 follows: (In millions) United Europe Rest of Consolidated 2023 Net sales to unaffiliated customers $ 1,812.2 $ 1,041.2 $ 739.8 $ 3,593.2 Sales between geographic areas 563.1 1,016.7 (1,579.8) — Net sales $ 2,375.3 $ 2,057.9 $ (840.0) $ 3,593.2 Operating income $ — $ 516.2 $ 16.9 $ 533.1 Long-lived assets $ 1,027.6 $ 325.9 $ 279.1 $ 1,632.6 2022 Net sales to unaffiliated customers $ 1,638.5 $ 987.2 $ 682.7 $ 3,308.4 Sales between geographic areas 514.4 897.3 (1,411.7) — Net sales $ 2,152.9 $ 1,884.5 $ (729.0) $ 3,308.4 Operating (loss) income $ 71.8 $ 403.8 $ 32.0 $ 507.6 Long-lived assets $ 856.1 $ 310.8 $ 266.0 $ 1,432.9 2021 Net sales to unaffiliated customers $ 1,339.2 $ 957.9 $ 625.4 $ 2,922.5 Sales between geographic areas 494.9 815.1 (1,310.0) — Net sales $ 1,834.1 $ 1,773.0 $ (684.6) $ 2,922.5 Operating (loss) income $ (26.8) $ 416.2 $ 116.4 $ 505.8 Long-lived assets $ 737.5 $ 377.2 $ 232.9 $ 1,347.6 |
Financial Derivatives and Hedgi
Financial Derivatives and Hedging | 12 Months Ended |
Oct. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Derivatives and Hedging | Note 13. 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 Company's exposure to changes in cash flows associated with its variable rate debt. 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. From time to time, the Company enters into foreign currency forward contracts to minimize the short-term impact of foreign currency exchange rate fluctuations on certain trade and intercompany receivables and payables. These foreign currency forward contracts are not designated as hedging instruments, and therefore the net change in their fair value is reported as a gain or loss in the Consolidated Statements of Income and Comprehensive Income. As of October 31, 2023, the notional amount of outstanding foreign currency forward contracts was $56.2 million. The resulting impact on our Consolidated Financial Statements from currency hedging activities was not significant for the years ended October 31, 2023, 2022 and 2021. As of October 31, 2023, the Company has six interest rate swap contracts that have a total notional amount of $1.3 billion and remaining maturities of four years or less. The following table summarizes the amounts recognized with respect to our derivative instruments within the accompanying Consolidated Statements of Income: Periods Ended October 31, (In millions) 2023 2022 2021 Derivatives designated as cash flow hedges Location of (Gain)/Loss Recognized on Derivatives Interest rate swap contracts Interest expense (income) $ (43.1) $ (2.3) $ 8.0 The cumulative pre-tax impact of the gain on derivatives designated for hedge accounting is recognized in "Accumulated other comprehensive loss". The following table details the changes in the cumulative pre-tax impact of the gain on derivatives designated for hedge accounting: (In millions) Amount Balance gain as of October 31, 2021 $ 17.2 Amount recognized in other comprehensive income on interest rate swap contracts, gross ($79.7, net of tax) 105.1 Amount reclassified from other comprehensive income into earnings, gross ($1.7, net of tax) 2.2 Balance gain as of October 31, 2022 $ 124.5 Amount recognized in other comprehensive income on interest rate swap contracts, gross ($25.7, net of tax) 33.7 Amount reclassified from other comprehensive income into earnings, gross ($(32.7), net of tax) (43.1) Balance gain as of October 31, 2023 $ 115.1 Refer to Note 8. Stockholders’ Equity for amounts presented net of the related tax impact in "Accumulated other comprehensive loss". The Company expects that $(48.2) million recorded as a component of "Accumulated other comprehensive loss" will be realized in our Consolidated Statements of Income over the next twelve months and the amount will vary depending on prevailing interest rates. |
Schedule II
Schedule II | 12 Months Ended |
Oct. 31, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II | Schedule II THE COOPER COMPANIES, INC. AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS Three Years Ended October 31, 2023 (In millions) Balance Additions Reductions/ Charges Balance Deferred income tax valuation allowance: Year Ended October 31, 2023 60.1 2.6 (42.0) 20.7 Year Ended October 31, 2022 51.8 13.3 (5.0) 60.1 Year Ended October 31, 2021 45.3 8.8 (2.3) 51.8 |
Organization and Significant _2
Organization and Significant Accounting Policies (Policies) | 12 Months Ended |
Oct. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | Principles of Consolidation The financial statements in this report include the results of all of Cooper's consolidated entities. All significant intercompany transactions and balances are eliminated on consolidation. |
Use of Estimates | Use of Estimates |
Revenue Recognition | Revenue Recognition Net Sales The Company sells its products principally to a limited number of distributors, group purchasing organizations, eye care or health care professionals including independent practices, corporate retailers, hospitals and clinics or authorized resellers (collectively, its Customers). These Customers may subsequently resell the Company’s products to eye care or health care providers and patients. In addition to product supply and distribution agreements with Customers, the Company enters into arrangements with health care providers and payors that provide for government-mandated and/or privately negotiated rebates, chargebacks and discounts with respect to the purchase of the Company’s products. The Company considers purchase orders, which in some cases are governed by master sales agreements, to be contracts with a customer. As part of its consideration of the contract, the Company evaluates certain factors including the customer’s ability to pay (or credit risk). For each contract, the Company considers the promise to transfer products, each of which is distinct, to be the identified performance obligations. Revenues from product sales are recognized when the Customer obtains control of the Company’s product, which occurs at a point in time, typically upon shipment or delivery to the Customer. Taxes collected from Customers relating to product sales and remitted to governmental authorities are excluded from revenues. The Company expenses incremental costs of obtaining a contract as and when incurred if the expected amortization period of the asset that the Company would have recognized is one year or less. See Note 12. Business Segment Information for disaggregation of revenue. Reserves for Variable Consideration Revenues from product sales are recorded at the net sales price (transaction price), which includes estimates of variable consideration for which reserves are established and which result from discounts, returns, chargebacks, rebates and other allowances that are offered within contracts between the Company and its Customers, health care providers, payors and other indirect customers relating to the Company’s sales of its products. These reserves are based on the amounts earned or to be claimed on the related sales and are classified primarily in current liabilities. Variable consideration is estimated based on the most likely amount or expected value approach, depending on which method the Company expects to better predict the amount of consideration to which it will be entitled. Once the Company elects one of the methods to estimate variable consideration for a particular type of performance obligation, the Company applies that method consistently. Where appropriate, these estimates take into consideration a range of possible outcomes which are probability-weighted for relevant factors such as the Company’s historical experience, current contractual and statutory requirements, specific known market events and trends, industry data and forecasted customer buying and payment patterns. Overall, these reserves reflect the Company’s best estimates of the amount of consideration to which it is entitled based on the terms of the contract. Trade Discounts and Allowances The Company generally provides Customers with discounts, which include incentive fees that are stated in the Company’s contracts and are recorded as a reduction of revenue in the period the related product revenue is recognized. Product Returns Consistent with industry practice, the Company generally offers Customers a limited right of return for a product that has been purchased from the Company. The Company estimates the amount of its product sales that may be returned by its Customers and records this estimate as a reduction of revenue in the period the related product revenue is recognized. Historically, returns have been infrequent and insignificant relative to our total sales. Our refund liability for product returns is included in "Other current liabilities" in our Consolidated Balance Sheets and represents the expected value of the aggregate refunds that will be due to our customers. Rebates and Chargebacks Rebates are estimated based on contractual terms, historical experience, customer mix, trend analysis and projected market conditions in the various markets served. Chargebacks for fees and discounts to providers represent the estimated obligations resulting from contractual commitments to sell products to qualified healthcare providers at prices lower than the list wholesale prices charged to the Company’s direct customers. For certain office and surgical portfolio in CooperSurgical, customers charge the Company for the difference between what they pay for the product and the ultimate selling price to the qualified healthcare providers. These reserves are established in the same period that the related revenue is recognized, resulting in a reduction of product revenue. Chargeback amounts are generally determined at the time of resale to the qualified healthcare provider by customers. CooperSurgical rebates are predominately related to the Medicaid rebate provision that is estimated based upon contractual terms, historical experience, and trend analysis. Contract Liabilities Deferred revenue primarily represents prepaid stem cell storage as part of the CooperSurgical business unit. Revenue related to stem cell storage is recognized over the service period, which can range from one year to the lifetime of a customer. The current portion of the deferred revenue balances at the beginning of each year presented were generally fully recognized in the subsequent 12-month period. |
Share-Based Compensation | Share-Based Compensation We grant various share-based compensation awards, including stock options, performance unit shares, restricted stock and restricted stock units. The Company accounts for share-based compensation expense based on estimated grant-date fair value, and expenses the amount over the vesting period of the award. Determining the fair value of share-based awards at the grant date requires judgment, including estimating Cooper's stock price volatility, employee exercise behaviors and related employee forfeiture rates. The expected life of the share-based awards is based on the expected time to post-vesting forfeiture and/or exercise. Groups of employees that have similar historical exercise behavior are considered separately for valuation purposes. In determining the expected volatility, management considers implied volatility from publicly-traded options on Cooper's common stock at the date of grant, historical volatility and other factors. The risk-free interest rate is based on the continuous rates provided by the United States Treasury with a term equal to the expected life of the award. The dividend yield is based on the projected annual dividend payment per share, divided by the stock price at the date of grant. Forfeitures are estimated at the time of grant, based on historical experience, and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. |
Foreign Currency Translation | Foreign Currency Translation Most of our operations outside the United States use their local currency as their functional currency. We translate these assets and liabilities into U.S. dollars at year-end exchange rates. We translate income and expense accounts at average exchange rates for the period. We record gains and losses from the translation of financial statements in foreign currencies into U.S. dollars in other comprehensive income. We record gains and losses from changes in exchange rates on transactions denominated in currencies other than each reporting location's functional currency in net income for each period |
Financial Derivatives and Hedging | Financial Derivatives and Hedging Derivatives are recorded on the Consolidated Balance Sheets at fair value. Accounting for gains or losses resulting from changes in the values of those derivatives depends on the use of the derivative instrument and whether it qualifies for 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 Balance Sheets for presentation purposes. |
Fair Value Measurements | Fair Value Measurements 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. 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 the Company's revolving credit facility and term loans approximates fair value based on current market rates (Level 2). Refer to Note 5. Financing Arrangements for further information. The fair value of the Company's 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. The fair value of derivative instruments is included in "Other assets" in our Consolidated Balance Sheets. On our Consolidated Financial Statements. the gain or loss on the derivatives is recorded as a component of "Accumulated other comprehensive loss" and subsequently reclassified into "Interest expense" in the same period during which the hedged transaction affects earnings. Refer to Note 13. Financial Derivatives and Hedging for further information. The Company uses fair value measures for assets and liabilities acquired in an acquisition, which are considered a Level 3 measurement. C ontingent consideration for which a liability is recorded and the initial measurement of the joint venture interest are also categorized as Level 3 in the fair value hierarchy; and the change in fair value is recognized in "Selling, general and administrative expense" in the Consolidated Statements of Income. The fair value is measured by discounting expected future cash flows. The discount rate used for cash flows reflects capital market conditions and the specific risks associated with the business. Refer to Note 3. Acquisitions and Joint Venture for further information. |
Income Taxes | Income Taxes Income taxes are estimated based on enacted income tax laws and the results of operations in each jurisdiction. Deferred tax assets and liabilities are estimated based on temporary differences between the financial reporting basis and income tax basis of assets and liabilities. Deferred tax assets are also estimated based on net operating loss and tax credit carryforwards. Deferred tax assets are reduced by a valuation allowance to the extent it is more likely than not they are not expected to be realized. Adjustments to deferred tax assets and liabilities due to changes in tax laws, changes in jurisdiction from intra-group transfers of assets, and changes in judgment regarding a valuation allowance are recognized in provision for income taxes in the quarter in which such changes occur. Long-term tax payable is estimated income tax to be paid for unrecognized tax benefits. A tax benefit is recognized if it is more likely than not a tax position will be sustained based on its technical merits in a tax authority examination, based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority. Adjustments to unrecognized tax benefits due to changes in judgment are recognized in provision for income taxes in the quarter in which such changes occur. Interest and penalties related to unrecognized tax benefits are recognized in provision for income taxes. |
Earnings Per Share | Earnings Per Share We determine basic earnings per share (EPS) by using the weighted-average number of shares outstanding. We determine diluted EPS by increasing the weighted-average number of shares outstanding in the denominator by the number of outstanding dilutive equity awards using the treasury stock method. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all short-term, highly liquid investments purchased with maturities of three months or less to be cash equivalents. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. Cost is computed using standard cost that approximates actual cost, on a first-in, first-out basis. |
Property, Plant and Equipment | Property, Plant and Equipment We record property, plant, and equipment at cost. We compute depreciation expense using the straight-line method over the estimated useful lives of the assets. Useful lives are generally 3 to 15 years except for buildings which are depreciated over 30 to 40 years and leasehold improvements, which we amortize over the shorter of the useful life or the lease term. We charge maintenance and repairs to expense as we incur them. |
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. The Company primarily has operating leases for office, manufacturing and warehouse space, vehicles, and office equipment. 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 lease payments over the lease term. The lease term reflects the noncancellable 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 Consolidated Balance Sheets. 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. The Company’s operating leases typically include non-lease components such as common-area maintenance costs. The Company has 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 in the Consolidated Balance Sheets, while the associated lease payments are expensed in the Consolidated Statements of Income and Comprehensive Income on a straight-line basis over the lease term. |
Cloud Computing Arrangements | Cloud Computing Arrangements The Company capitalizes certain costs related to the acquisition and development of internal use software, including implementation costs incurred in a cloud computing arrangement, during the application development stages of projects. Capitalized implementation costs are amortized on a straight-line basis over the expected term of the hosting arrangement, which includes consideration of the non-cancellable contractual term and reasonably certain renewals. Costs incurred during the preliminary project or the post-implementation/operation stages of the project are expensed as incurred. Implementation costs are included in “Other assets” in our Consolidated Balance Sheets. Amortization of capitalized implementation costs is included in the same line item in the Consolidated Statements of Income as the expense for fees for the associated hosting arrangement. |
Valuation of Goodwill | Valuation of Goodwill We evaluate 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. Goodwill is tested for impairment at the reporting unit level by performing a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying value. We perform a qualitative assessment to test each reporting unit's goodwill for impairment, which includes 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. |
Long-lived Assets | Long-lived Assets |
Indefinite-lived Intangible Assets | Indefinite-lived Intangible Assets We assess indefinite-lived intangible assets annually in the third quarter of the fiscal year, or whenever events or changes in circumstances indicate that the carrying amount of an indefinite-lived intangible asset (asset group) may not be recoverable. We evaluate whether the indefinite-lived intangible asset is impaired by comparing its carrying value to its fair value. If the carrying value of an 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. |
Business Combinations | Business Combinations We routinely consummate business combinations. Results of operations for acquired companies are included in our consolidated results of operations from the date of acquisition. We recognize separately from goodwill, the identifiable assets acquired, including acquired in-process research and development, the liabilities assumed, and any noncontrolling interest in the acquiree at the acquisition date fair values as defined by accounting standards related to fair value measurements. Key assumptions routinely utilized in allocation of purchase price to intangible assets include discount rates and projected financial information such as revenue projections for companies acquired. As of the acquisition date, goodwill is measured as the excess of consideration given, over the net of the acquisition date fair values of the identifiable assets acquired and the liabilities assumed. Direct acquisition costs are expensed as incurred. For business acquisitions, the Company records tangible and intangible assets acquired and liabilities assumed at their fair values as of the applicable date of acquisition. |
Litigation | Litigation |
Treasury Stock | Treasury Stock We record treasury stock purchases under the cost method whereby the entire cost of the acquired stock is recorded as treasury stock. |
Government Assistance | Government Assistance The Company at times receives government assistance primarily to support manufacturing capital expansion, to create or retain jobs, or to provide tax credits mainly for eligible research and development activities. The Company generally accounts for such government assistance by analogy to IAS 20, Accounting for Government Grants and Disclosure of Government Assistance and recognizes the assistance when it is probable that it will be received by complying with the prerequisite terms and conditions. The government assistance is recognized in income as a reduction to the cost basis of the applicable property, plant, and equipment or reduction to the related expense. |
Accounting Pronouncements Recently Adopted and Accounting Pronouncements Issued Not Yet Adopted | Accounting Pronouncements Recently Adopted In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance . This update requires annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy. This standard was effective for fiscal years beginning after December 15, 2021. The Company adopted this guidance prospectively on November 1, 2022, and such adoption did not have a material impact on the Company's Consolidated Financial Statements. 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 and subsequent amendment to the initial guidance: ASU 2021-01, Reference Rate Reform (Topic 848): Scope (collectively, “Topic 848”). Topic 848 provides optional expedients and exceptions for applying 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. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 . ASU 2022-06 defers the sunset date of Topic 848 from December 31, 2022, to December 31, 2024. Effective February 1, 2023, the Company transitioned its credit agreements from LIBOR to the Secured Overnight Financing Rate ("SOFR"). The Company adopted this guidance prospectively on February 1, 2023, and it did not have a material impact on the Consolidated Financial Statements. Accounting Pronouncements Issued Not Yet Adopted |
Organization and Significant _3
Organization and Significant Accounting Policies (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of inventory | October 31, (In millions) 2023 2022 Raw materials $ 207.3 $ 173.7 Work-in-process 19.0 15.2 Finished goods 509.3 439.8 $ 735.6 $ 628.7 |
Schedule of property, plant and equipment | October 31, (In millions) 2023 2022 Land and improvements $ 20.2 $ 18.7 Buildings and improvements 488.5 415.6 Machinery and equipment 2,187.1 1,973.6 Construction in progress 486.3 393.0 Property, plant and equipment, at cost $ 3,182.1 $ 2,800.9 Less: Accumulated depreciation 1,553.3 1,387.2 Property, plant and equipment, net $ 1,628.8 $ 1,413.7 Finance lease ROU assets, net 3.8 19.2 $ 1,632.6 $ 1,432.9 |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Leases [Abstract] | |
Leases on the Consolidated Condensed Balance Sheet | The following table presents information about leases on the Consolidated Balance Sheets: October 31, 2023 2022 Operating Leases Operating lease right-of-use assets $ 241.5 $ 230.1 Operating lease liabilities, current 38.2 35.5 Operating lease liabilities, non-current 215.6 205.5 Total operating lease liabilities $ 253.8 $ 241.0 Weighted-average remaining lease term (in years) 10.0 9.8 Weighted-average discount rate 4% 3% |
Minimum rental payments required under operating leases | The minimum rental payments required under operating leases that have initial or remaining noncancellable lease terms in excess of one year as of October 31, 2023 are: (In millions) 2024 46.4 2025 41.6 2026 37.7 2027 32.8 2028 26.8 Thereafter 123.4 Total lease payments $ 308.7 Less: interest 54.9 Present value of lease liabilities $ 253.8 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | (In millions) CooperVision CooperSurgical Total Balance at October 31, 2022 $ 1,710.3 $ 1,899.4 $ 3,609.7 Net changes 7.7 (3.6) 4.1 Foreign currency translation adjustment 29.6 (18.9) 10.7 Balance at October 31, 2023 $ 1,747.6 $ 1,876.9 $ 3,624.5 |
Schedule of finite-lived intangible assets | Other Intangible Assets October 31, 2023 October 31, 2022 (In millions) Gross Accumulated Gross Accumulated Weighted-average Amortization Period (in years) Intangible assets with definite lives: Trademarks $ 208.9 $ 81.1 $ 209.6 $ 62.4 15 Composite intangible asset 1,061.9 424.8 1,061.9 354.0 15 Technology 494.5 335.4 504.1 317.5 13 Customer relationships 1,099.2 345.8 1,092.7 287.0 19 License and distribution rights and other 51.6 28.0 50.7 23.8 11 2,916.1 $ 1,215.1 2,919.0 $ 1,044.7 16 Less: accumulated amortization and translation 1,215.1 1,044.7 Intangible assets with definite lives, net $ 1,701.0 $ 1,874.3 Intangible assets with indefinite lives, net (1) 9.3 10.8 Total other intangibles, net $ 1,710.3 $ 1,885.1 (1) Intangible assets with indefinite lives include technology and trademarks. |
Schedule of indefinite-lived intangible assets | Other Intangible Assets October 31, 2023 October 31, 2022 (In millions) Gross Accumulated Gross Accumulated Weighted-average Amortization Period (in years) Intangible assets with definite lives: Trademarks $ 208.9 $ 81.1 $ 209.6 $ 62.4 15 Composite intangible asset 1,061.9 424.8 1,061.9 354.0 15 Technology 494.5 335.4 504.1 317.5 13 Customer relationships 1,099.2 345.8 1,092.7 287.0 19 License and distribution rights and other 51.6 28.0 50.7 23.8 11 2,916.1 $ 1,215.1 2,919.0 $ 1,044.7 16 Less: accumulated amortization and translation 1,215.1 1,044.7 Intangible assets with definite lives, net $ 1,701.0 $ 1,874.3 Intangible assets with indefinite lives, net (1) 9.3 10.8 Total other intangibles, net $ 1,710.3 $ 1,885.1 (1) Intangible assets with indefinite lives include technology and trademarks. |
Remaining amortization expenses for intangible assets with definite lives | As of October 31, 2023, the estimate of future amortization expenses for intangible assets with definite lives is as follows: Fiscal years: (In millions) 2024 $ 179.5 2025 169.5 2026 162.0 2027 147.7 2028 143.2 Thereafter 899.1 Total remaining amortization for intangible assets with definite lives $ 1,701.0 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of debt | The Company had outstanding debt as follows: October 31, (In millions) 2023 2022 Overdraft and other credit facilities $ 44.4 $ 57.7 Term loans — 338.0 Short-term debt, excluding financing leases 44.4 395.7 Financing lease liabilities 1.0 16.9 Short-term debt $ 45.4 $ 412.6 Revolving credit $ 172.6 $ — Term loans 2,350.0 2,350.0 Other 0.2 0.2 Less: unamortized debt issuance cost (2.4) (3.1) Long-term debt, excluding financing leases 2,520.4 2,347.1 Financing lease liabilities 3.4 3.7 Long-term debt $ 2,523.8 $ 2,350.8 Total debt $ 2,569.2 $ 2,763.4 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income before income taxes | Components of income before income taxes: Years Ended October 31, 2023 2022 2021 Income before income taxes: United States $ (135.7) $ 31.4 $ (31.0) Foreign 548.6 443.9 522.5 $ 412.9 $ 475.3 $ 491.5 |
Provision for income taxes | Components of provision for income taxes: Years Ended October 31, (In millions) 2023 2022 2021 Current: Federal $ 37.3 $ 10.2 $ 21.0 State 3.7 3.8 1.3 Foreign 33.0 21.7 26.7 74.0 35.7 49.0 Deferred: Federal (36.7) 10.5 (8.8) State (7.5) (2.2) (0.5) Foreign 88.9 45.6 (2,492.9) 44.7 53.9 (2,502.2) Provision for income taxes $ 118.7 $ 89.5 $ (2,453.2) |
Reconciliation between the expected provision for income taxes at the US federal statutory rate and the provision for income taxes | Reconciliation between the expected provision for income taxes at the US federal statutory rate and the provision for income taxes: Years Ended October 31, (In millions) 2023 2022 2021 Provision for income taxes at United States statutory tax rate $ 86.7 $ 99.8 $ 103.2 (Decrease) increase in taxes resulting from: Foreign earnings in jurisdictions with different tax rates 7.0 (22.3) (43.6) Foreign earnings subject to United States tax 34.3 21.1 25.4 Excess tax benefits from share-based compensation (2.4) (2.6) (13.0) Intra-group transfer to UK subsidiary — — (1,987.8) Remeasurement of deferred tax assets from UK rate change — — (536.7) Change in unrecognized tax benefits — (12.7) (7.6) State tax provision (4.2) 5.0 0.8 Other, net (2.7) 1.2 6.1 Provision for income taxes $ 118.7 $ 89.5 $ (2,453.2) |
Deferred tax assets and liabilities | Components of deferred tax assets and liabilities: Years Ended October 31, (In millions) 2023 2022 Deferred tax assets: Accounts receivable $ 7.5 $ 4.9 Inventories 14.3 6.3 Accrued liabilities, reserves and compensation accruals 94.8 79.9 Foreign deferred tax assets 2,369.5 2,500.5 Share-based compensation 14.8 14.5 Net operating loss and tax credit carryforwards 24.3 19.6 Capitalized research and experimental expenses 23.6 15.4 Total gross deferred tax assets 2,548.8 2,641.1 Less: valuation allowance (20.7) (60.1) Deferred tax assets 2,528.1 2,581.0 Deferred tax liabilities: Tax deductible goodwill (47.4) (39.7) Intangible assets (132.4) (153.8) Plant and equipment (51.2) (48.8) Foreign deferred tax liabilities (49.0) (45.5) Total gross deferred tax liabilities (280.0) (287.8) Net deferred tax assets $ 2,248.1 $ 2,293.2 |
Changes in unrecognized tax benefits | Changes in unrecognized tax benefits: (In millions) Balance at October 31, 2021 $ 353.8 Decrease based on tax positions in prior fiscal years (12.5) Settlements (0.2) Lapses of statutes of limitations (4.2) Balance at October 31, 2022 $ 336.9 Decrease based on tax positions in prior fiscal years (0.5) Increase based on tax positions in current fiscal year 2.0 Lapses of statutes of limitations (6.9) Balance at October 31, 2023 $ 331.5 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | Years Ended October 31, (In millions, except for earnings per share) 2023 2022 2021 Net income $ 294.2 $ 385.8 $ 2,944.7 Basic: Weighted-average common shares 49.5 49.3 49.2 Basic earnings per share $ 5.94 $ 7.83 $ 59.80 Diluted: Weighted-average common shares 49.5 49.3 49.2 Effect of dilutive stock plans 0.3 0.4 0.6 Diluted weighted-average common shares 49.8 49.7 49.8 Diluted earnings per share $ 5.91 $ 7.76 $ 59.16 |
Stock options to purchase common stock and restricted stock units not included in diluted earnings per share calculation due to antidilutive effect | 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: Years Ended October 31, (In thousands, except exercise prices) 2023 2022 2021 Stock option shares excluded 311 227 107 Exercise prices $300.12 - $406.17 $300.12 - $406.17 $ 345.74 Restricted stock units excluded 15 87 2 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Changes in accumulated other comprehensive (loss) income | Analysis of Changes in Accumulated Other Comprehensive Income (Loss): (In millions) Foreign Currency Translation Adjustment Derivatives Minimum Pension Liability Total Balance at October 31, 2020 $ (402.3) $ (13.0) $ (56.7) $ (472.0) Gross change in value 82.2 34.3 29.8 146.3 Tax effect (0.2) (8.2) (7.2) (15.6) Balance at October 31, 2021 $ (320.3) $ 13.1 $ (34.1) $ (341.3) Gross change in value $ (234.7) $ 107.4 $ 36.6 $ (90.7) Tax effect — (26.1) (8.7) (34.8) Balance at October 31, 2022 $ (555.0) $ 94.4 $ (6.2) $ (466.8) Gross change in value $ 17.0 $ (9.4) $ 4.0 $ 11.6 Tax effect — 2.4 (1.0) 1.4 Balance at October 31, 2023 $ (538.0) $ 87.4 $ (3.2) $ (453.8) (In millions) Amount Balance gain as of October 31, 2021 $ 17.2 Amount recognized in other comprehensive income on interest rate swap contracts, gross ($79.7, net of tax) 105.1 Amount reclassified from other comprehensive income into earnings, gross ($1.7, net of tax) 2.2 Balance gain as of October 31, 2022 $ 124.5 Amount recognized in other comprehensive income on interest rate swap contracts, gross ($25.7, net of tax) 33.7 Amount reclassified from other comprehensive income into earnings, gross ($(32.7), net of tax) (43.1) Balance gain as of October 31, 2023 $ 115.1 |
Stock Plans (Tables)
Stock Plans (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
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 for share-based awards, including the Employee Stock Purchase Plan, were as follows: October 31, (In millions) 2023 2022 2021 Selling, general and administrative expense $ 54.8 $ 46.7 $ 38.4 Cost of sales 4.2 4.5 3.9 Research and development expense 3.1 3.0 2.4 Total compensation expense $ 62.1 $ 54.2 $ 44.7 Related income tax benefit $ 5.0 $ 5.0 $ 5.6 |
Assumptions used in estimating fair value of stock options award granted | Years Ended October 31, 2023 2022 2021 Expected life 4.5 years 4.1 years 4.0 years Expected volatility 29.5 % 25.8 % 30.3 % Risk-free interest rate 3.8 % 1.1 % 0.3 % Dividend yield 0.02 % 0.02 % 0.02 % |
Schedule of stock option plans | The activity and status of our stock option plans are summarized below: Number of Weighted- Weighted- Aggregate Outstanding at October 31, 2022 1,063,843 $ 264.85 Granted 86,241 $ 329.83 Exercised (71,808) $ 155.45 Forfeited or expired (720) $ 337.72 Outstanding at October 31, 2023 1,077,556 $ 277.29 5.36 $ 53,510,367 Vested and expected to vest at October 31, 2023 1,059,841 $ 276.11 5.32 $ 53,475,275 Vested and exercisable at October 31, 2023 729,591 $ 248.34 4.38 $ 50,797,891 |
Schedule of non-vested RSUs | The status of our non-vested RSUs is summarized below: Number of Weighted- Non-vested RSUs at October 31, 2022 289,238 $ 340.68 Granted 145,655 $ 335.32 Vested and issued (107,403) $ 320.22 Forfeited or expired (37,461) $ 344.72 Non-vested RSUs at October 31, 2023 290,029 $ 345.03 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Retirement Benefits [Abstract] | |
Changes in benefit obligation, changes in plan assets and funded status | The following table sets forth the Plan's benefit obligations and fair value of the Plan assets at October 31, 2023, 2022 and 2021 and the funded status of the Plan and net periodic pension costs for each of the years in the three-year periods ended October 31, 2023. The net amounts recognized in the Consolidated Balance Sheets consist of noncurrent liabilities. The accumulated benefit obligation was $131.5 million, $134.9 million and $207.6 million for the years ended October 31, 2023, 2022 and 2021. Retirement Income Plan Years Ended October 31, (In millions) 2023 2022 2021 Change in benefit obligation Benefit obligation, beginning of year $ 148.0 $ 230.9 $ 218.8 Service cost 10.0 18.3 17.2 Interest cost 7.9 5.1 4.4 Benefits paid (10.5) (13.1) (11.5) Actuarial (gain)/loss (10.9) (93.2) 2.0 Benefit obligation, end of year $ 144.5 $ 148.0 $ 230.9 Change in plan assets Fair value of plan assets, beginning of year $ 142.9 $ 199.5 $ 159.5 Actual return on plan assets 4.1 (43.5) 38.8 Employer contributions 1.1 — 12.7 Benefits paid (10.5) (13.1) (11.5) Fair value of plan assets, end of year $ 137.6 $ 142.9 $ 199.5 Funded status at end of year $ (6.9) $ (5.1) $ (31.4) |
Amounts recognized in accumulated other comprehensive Income | Years Ended October 31, (In millions) 2023 2022 2021 Amounts recognized in accumulated other comprehensive income consist of: Net loss $ 4.1 $ 8.0 $ 44.4 Accumulated other comprehensive income $ 4.1 $ 8.0 $ 44.4 |
Reconciliation of prepaid (accrued) pension cost | Years Ended October 31, (In millions) 2023 2022 2021 Reconciliation of (prepaid) accrued pension cost: (Prepaid)/Accrued pension cost at prior fiscal year end $ (2.9) $ (13.0) $ (14.8) Net periodic benefit cost 6.8 10.1 14.5 Contributions made during the year (1.1) — (12.7) (Prepaid)/Accrued pension cost at fiscal year end $ 2.8 $ (2.9) $ (13.0) |
Components of net periodic pension costs and other amounts recognized in other comprehensive income | Years Ended October 31, (In millions) 2023 2022 2021 Components of net periodic benefit cost and other amounts recognized in the Consolidated Statements of Income: Net periodic benefit cost: Service cost $ 10.0 $ 18.3 $ 17.2 Interest cost 7.9 5.1 4.4 Expected return on plan assets (11.1) (15.5) (12.5) Recognized actuarial loss — 2.2 5.4 Net periodic pension cost $ 6.8 $ 10.1 $ 14.5 |
Other changes in plan assets and benefit obligations recognized in other comprehensive income | Years Ended October 31, (In millions) 2023 2022 2021 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Net (gain) loss $ (4.0) $ (34.1) $ (24.4) Amortizations of net gain — (2.5) (5.4) Total recognized in other comprehensive (income) loss $ (4.0) $ (36.6) $ (29.8) Total recognized in net periodic benefit cost and other comprehensive (income) loss $ 2.8 $ (26.2) $ (15.2) |
Weighted-average assumptions used in computing net periodic pension cost and projected benefit obligation | Years Ended October 31, 2023 2022 2021 Weighted-average assumptions used in computing the net periodic pension cost and projected benefit obligation at year end: Discount rate for determining net periodic pension cost: Projected Benefit Obligation 5.74 % 2.76 % 2.78 % Service Cost 5.77 % 2.79 % 2.86 % Interest Cost 5.51 % 2.28 % 2.07 % Discount rate for determining benefit obligations at year end 6.22 % 5.74 % 2.76 % Rate of compensation increase for determining expense 3.60 % 3.60 % 3.60 % Rate of compensation increase for determining benefit obligations at year end 3.60 % 3.60 % 3.60 % Expected rate of return on plan assets for determining net periodic pension cost 8.00 % 8.00 % 8.00 % Expected rate of return on plan assets at year end 8.00 % 8.00 % 8.00 % Measurement date for determining assets and benefit obligations at year end 10/31/2023 10/31/2022 10/31/2021 |
Weighted-average asset allocations and fair value measurement of plan assets | Plan Assets Weighted-average asset allocations at year end, by asset category are as follows: Years Ended October 31, 2023 2022 2021 Asset category Cash and cash equivalents 2.9 % 2.0 % 5.0 % Corporate common stock 26.0 % 33.6 % 31.6 % Equity mutual funds 39.1 % 33.9 % 32.8 % Balanced funds 2.4 % 1.8 % 1.4 % Alternative investments 0.7 % 0.9 % 1.0 % Bond mutual funds 28.9 % 27.8 % 28.2 % Total 100.0 % 100.0 % 100.0 % As of the measurement date of October 31, 2023, the fair value measurement of plan assets is as follows: (In millions) Total Quoted Prices Significant Significant Asset category Cash and cash equivalents $ 3.9 $ 3.9 $ — $ — Corporate common stock 35.8 35.8 — — Equity mutual funds 53.9 53.9 — — Balanced Funds 3.3 3.3 — — Alternative investments 0.9 0.9 — — Fixed income 39.8 15.8 24.0 — Total $ 137.6 $ 113.6 $ 24.0 $ — |
Estimated future benefit payments | Estimated Future Benefit Payments Years (In millions) 2024 $ 10.9 2025 $ 11.0 2026 $ 10.3 2027 $ 11.2 2028 $ 12.3 2029-2033 $ 65.9 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of business segment net sales | The following table presents a summary of our business segment net sales: (In millions) 2023 2022 2021 CooperVision net sales by category: Toric lens $ 828.7 $ 737.4 $ 697.5 Multifocal lens 305.7 264.4 238.6 Single-use sphere lens 705.4 661.6 616.3 Non single-use sphere, other 583.9 579.9 599.6 Total CooperVision net sales 2,423.7 2,243.3 2,152.0 CooperSurgical net sales by category: Office and surgical 689.5 633.6 451.3 Fertility 480.0 431.5 319.2 Total CooperSurgical net sales 1,169.5 1,065.1 770.5 Total net sales $ 3,593.2 $ 3,308.4 $ 2,922.5 |
Schedule of business segment information | Information by business segment for each of the years in the three-year period ended October 31, 2023 follows: (In millions) CooperVision CooperSurgical Corporate Consolidated 2023 Net sales $ 2,423.7 $ 1,169.5 $ — $ 3,593.2 Operating income (loss) $ 587.7 $ 16.1 $ (70.7) $ 533.1 Interest expense 105.3 Other expense, net 14.9 Income before income taxes $ 412.9 Identifiable assets $ 7,044.0 $ 4,351.8 $ 263.1 $ 11,658.9 Depreciation expense $ 156.9 $ 24.6 $ — $ 181.5 Amortization expense $ 32.9 $ 153.3 $ — $ 186.2 Capital expenditures $ 364.4 $ 28.1 $ — $ 392.5 2022 Net sales $ 2,243.3 $ 1,065.1 $ — $ 3,308.4 Operating income (loss) $ 494.3 $ 67.1 $ (53.8) $ 507.6 Interest expense 57.3 Other (income), net (25.0) Income before income taxes $ 475.3 Identifiable assets $ 6,778.9 $ 4,407.8 $ 305.6 $ 11,492.3 Depreciation expense $ 144.5 $ 22.1 $ — $ 166.6 Amortization expense $ 32.3 $ 147.2 $ — $ 179.5 Capital expenditures $ 223.0 $ 19.0 $ — $ 242.0 2021 Net sales $ 2,152.0 $ 770.5 $ — $ 2,922.5 Operating income (loss) $ 481.3 $ 71.8 $ (47.3) $ 505.8 Interest expense 23.1 Other expense, net (8.8) Income before income taxes $ 491.5 Identifiable assets $ 6,965.9 $ 2,395.6 $ 244.7 $ 9,606.2 Depreciation expense $ 148.3 $ 14.9 $ — $ 163.2 Amortization expense $ 35.7 $ 110.4 $ — $ 146.1 Capital expenditures $ 190.0 $ 24.4 $ — $ 214.4 |
Schedule of information by geographical area by country of domicile | Information by geographical area by country of domicile for each of the years in the three-year period ended October 31, 2023 follows: (In millions) United Europe Rest of Consolidated 2023 Net sales to unaffiliated customers $ 1,812.2 $ 1,041.2 $ 739.8 $ 3,593.2 Sales between geographic areas 563.1 1,016.7 (1,579.8) — Net sales $ 2,375.3 $ 2,057.9 $ (840.0) $ 3,593.2 Operating income $ — $ 516.2 $ 16.9 $ 533.1 Long-lived assets $ 1,027.6 $ 325.9 $ 279.1 $ 1,632.6 2022 Net sales to unaffiliated customers $ 1,638.5 $ 987.2 $ 682.7 $ 3,308.4 Sales between geographic areas 514.4 897.3 (1,411.7) — Net sales $ 2,152.9 $ 1,884.5 $ (729.0) $ 3,308.4 Operating (loss) income $ 71.8 $ 403.8 $ 32.0 $ 507.6 Long-lived assets $ 856.1 $ 310.8 $ 266.0 $ 1,432.9 2021 Net sales to unaffiliated customers $ 1,339.2 $ 957.9 $ 625.4 $ 2,922.5 Sales between geographic areas 494.9 815.1 (1,310.0) — Net sales $ 1,834.1 $ 1,773.0 $ (684.6) $ 2,922.5 Operating (loss) income $ (26.8) $ 416.2 $ 116.4 $ 505.8 Long-lived assets $ 737.5 $ 377.2 $ 232.9 $ 1,347.6 |
Financial Derivatives and Hed_2
Financial Derivatives and Hedging (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
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 Consolidated Statements of Income: Periods Ended October 31, (In millions) 2023 2022 2021 Derivatives designated as cash flow hedges Location of (Gain)/Loss Recognized on Derivatives Interest rate swap contracts Interest expense (income) $ (43.1) $ (2.3) $ 8.0 |
Changes in accumulated other comprehensive (loss) income | Analysis of Changes in Accumulated Other Comprehensive Income (Loss): (In millions) Foreign Currency Translation Adjustment Derivatives Minimum Pension Liability Total Balance at October 31, 2020 $ (402.3) $ (13.0) $ (56.7) $ (472.0) Gross change in value 82.2 34.3 29.8 146.3 Tax effect (0.2) (8.2) (7.2) (15.6) Balance at October 31, 2021 $ (320.3) $ 13.1 $ (34.1) $ (341.3) Gross change in value $ (234.7) $ 107.4 $ 36.6 $ (90.7) Tax effect — (26.1) (8.7) (34.8) Balance at October 31, 2022 $ (555.0) $ 94.4 $ (6.2) $ (466.8) Gross change in value $ 17.0 $ (9.4) $ 4.0 $ 11.6 Tax effect — 2.4 (1.0) 1.4 Balance at October 31, 2023 $ (538.0) $ 87.4 $ (3.2) $ (453.8) (In millions) Amount Balance gain as of October 31, 2021 $ 17.2 Amount recognized in other comprehensive income on interest rate swap contracts, gross ($79.7, net of tax) 105.1 Amount reclassified from other comprehensive income into earnings, gross ($1.7, net of tax) 2.2 Balance gain as of October 31, 2022 $ 124.5 Amount recognized in other comprehensive income on interest rate swap contracts, gross ($25.7, net of tax) 33.7 Amount reclassified from other comprehensive income into earnings, gross ($(32.7), net of tax) (43.1) Balance gain as of October 31, 2023 $ 115.1 |
Organization and Significant _4
Organization and Significant Accounting Policies - Narrative (Details) $ in Millions | 12 Months Ended | |
Oct. 31, 2023 business_unit | Oct. 31, 2022 USD ($) | |
Property, Plant and Equipment [Line Items] | ||
Number of business units | business_unit | 2 | |
Exit charges | $ 33.2 | |
Cost of sales | ||
Property, Plant and Equipment [Line Items] | ||
Exit charges | 26.7 | |
Selling, general and administrative expense | ||
Property, Plant and Equipment [Line Items] | ||
Exit charges | $ 6.5 | |
Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Capitalized contract cost, amortization period (or less) | 1 year | |
Property, plant and equipment, useful life | 3 years | |
Minimum | Building | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 30 years | |
Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 15 years | |
Maximum | Building | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 40 years |
Organization and Significant _5
Organization and Significant Accounting Policies - Inventory (Details) - USD ($) $ in Millions | Oct. 31, 2023 | Oct. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Raw materials | $ 207.3 | $ 173.7 |
Work-in-process | 19 | 15.2 |
Finished goods | 509.3 | 439.8 |
Inventories, net | $ 735.6 | $ 628.7 |
Organization and Significant _6
Organization and Significant Accounting Policies - Property Plant and Equipment (Details) - USD ($) $ in Millions | Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, at cost | $ 3,182.1 | $ 2,800.9 | |
Less: Accumulated depreciation | 1,553.3 | 1,387.2 | |
Property, plant and equipment, net | 1,628.8 | 1,413.7 | |
Finance lease ROU assets, net | 3.8 | 19.2 | |
Property, plant and equipment, net | 1,632.6 | 1,432.9 | $ 1,347.6 |
Land and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, at cost | 20.2 | 18.7 | |
Buildings and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, at cost | 488.5 | 415.6 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, at cost | 2,187.1 | 1,973.6 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, at cost | $ 486.3 | $ 393 |
Operating Leases - Leases on th
Operating Leases - Leases on the Consolidated Condensed Balance Sheet (Details) - USD ($) $ in Millions | Oct. 31, 2023 | Oct. 31, 2022 |
Operating Leases | ||
Operating lease right-of-use assets | $ 241.5 | $ 230.1 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets |
Operating lease liabilities, current | $ 38.2 | $ 35.5 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | Other current liabilities |
Operating lease liabilities, non-current | $ 215.6 | $ 205.5 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
Total operating lease liabilities | $ 253.8 | $ 241 |
Weighted-average remaining lease term (in years) | 10 years | 9 years 9 months 18 days |
Weighted-average discount rate | 4% | 3% |
Operating Leases - Narrative (D
Operating Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Leases [Abstract] | |||
Operating lease expense | $ 48.1 | $ 45 | $ 44.1 |
Operating Leases - Minimum Rent
Operating Leases - Minimum Rental Payments Required Under Operating Leases (Details) - USD ($) $ in Millions | Oct. 31, 2023 | Oct. 31, 2022 |
Leases [Abstract] | ||
2024 | $ 46.4 | |
2025 | 41.6 | |
2026 | 37.7 | |
2027 | 32.8 | |
2028 | 26.8 | |
Thereafter | 123.4 | |
Total lease payments | 308.7 | |
Less: interest | 54.9 | |
Present value of lease liabilities | $ 253.8 | $ 241 |
Acquisitions and Joint Venture
Acquisitions and Joint Venture (Details) | 1 Months Ended | 12 Months Ended | |||||||
Nov. 01, 2023 USD ($) installment | Nov. 01, 2022 USD ($) | Apr. 06, 2022 USD ($) | Dec. 17, 2021 USD ($) | Mar. 31, 2022 USD ($) | Oct. 31, 2023 USD ($) | Oct. 31, 2022 USD ($) | Oct. 31, 2021 USD ($) | Jan. 19, 2021 USD ($) | |
Business Acquisition [Line Items] | |||||||||
Goodwill | $ 3,624,500,000 | $ 3,609,700,000 | |||||||
Proceeds from sale of interest in a subsidiary | $ 52,100,000 | 0 | 52,100,000 | $ 0 | |||||
Payments to form joint venture | 10,000,000 | ||||||||
Equity method investments | 90,000,000 | ||||||||
Equity method investment realized gain | 56,900,000 | ||||||||
Decrease in contingent consideration liability | 31,800,000 | 10,300,000 | $ (66,100,000) | ||||||
Essilor International SAS | |||||||||
Business Acquisition [Line Items] | |||||||||
Payments to form joint venture | $ 10,000,000 | ||||||||
SightGlass Vision, Inc. | |||||||||
Business Acquisition [Line Items] | |||||||||
Equity method investment, ownership percentage | 50% | ||||||||
Privately-Held U.S.-Based Company, Technologically Advanced Contact Lens Products | |||||||||
Business Acquisition [Line Items] | |||||||||
Aggregate consideration | $ 33,000,000 | ||||||||
Net assets | 5,100,000 | ||||||||
Goodwill | 7,700,000 | ||||||||
Goodwill, expected tax deductible amount | 0 | ||||||||
Privately-Held U.S.-Based Company, Technologically Advanced Contact Lens Products | Customer relationships | |||||||||
Business Acquisition [Line Items] | |||||||||
Finite-lived intangibles | 12,600,000 | ||||||||
Privately-Held U.S.-Based Company, Technologically Advanced Contact Lens Products | Technology | |||||||||
Business Acquisition [Line Items] | |||||||||
Finite-lived intangibles | $ 7,600,000 | ||||||||
Cook Medicals Reproductive Health Business | |||||||||
Business Acquisition [Line Items] | |||||||||
Aggregate consideration | $ 875,000,000 | ||||||||
Payments to acquire business | 675,000,000 | ||||||||
Payables incurred in acquisition | 200,000,000 | ||||||||
Acquisition termination fee | 45,000,000 | ||||||||
Cook Medicals Reproductive Health Business | Payables First Installment | |||||||||
Business Acquisition [Line Items] | |||||||||
Payables incurred in acquisition | 50,000,000 | ||||||||
Cook Medicals Reproductive Health Business | Payables Second Installment | |||||||||
Business Acquisition [Line Items] | |||||||||
Payables incurred in acquisition | 50,000,000 | ||||||||
Cook Medicals Reproductive Health Business | Payables Third Installment | |||||||||
Business Acquisition [Line Items] | |||||||||
Payables incurred in acquisition | 50,000,000 | ||||||||
Cook Medicals Reproductive Health Business | Payables Fourth Installment | |||||||||
Business Acquisition [Line Items] | |||||||||
Payables incurred in acquisition | $ 50,000,000 | ||||||||
Generate Life Sciences | |||||||||
Business Acquisition [Line Items] | |||||||||
Payments to acquire business | $ 1,663,000,000 | ||||||||
Ownership percentage | 100% | ||||||||
Generate Life Sciences | Line of Credit | Term Loan Facility 2021 | |||||||||
Business Acquisition [Line Items] | |||||||||
Proceeds from line of credit | $ 1,500,000,000 | ||||||||
Privately-Held Medical Device Company, Spectacle Lenses, Portion Attributable To Former Equity Interest Owners | |||||||||
Business Acquisition [Line Items] | |||||||||
Undiscounted range of the contingent consideration, minimum | $ 0 | ||||||||
Undiscounted range of the contingent consideration, maximum | $ 139,100,000 | ||||||||
Payment to settle former equity interest owners | $ 42,900,000 | ||||||||
Equity investment gain realized before acquisition of remaining equity interest | $ 12,200,000 | ||||||||
Decrease in contingent consideration liability | $ 31,800,000 | ||||||||
Cook Medical | Subsequent Event | |||||||||
Business Acquisition [Line Items] | |||||||||
Aggregate consideration | $ 300,000,000 | ||||||||
Payments to acquire business | 200,000,000 | ||||||||
Payables incurred in acquisition | $ 100,000,000 | ||||||||
Number of installments | installment | 2 | ||||||||
Cook Medical | Payables First Installment | Subsequent Event | |||||||||
Business Acquisition [Line Items] | |||||||||
Payables incurred in acquisition | $ 50,000,000 | ||||||||
Cook Medical | Payables Second Installment | Subsequent Event | |||||||||
Business Acquisition [Line Items] | |||||||||
Payables incurred in acquisition | $ 50,000,000 |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) | 12 Months Ended | ||
Oct. 31, 2023 USD ($) reporting_unit | Oct. 31, 2022 USD ($) | Oct. 31, 2021 USD ($) | |
Goodwill [Line Items] | |||
Number of reporting units | reporting_unit | 3 | ||
Goodwill impairment | $ 0 | $ 0 | $ 0 |
Impairment of definite-lived intangible assets | 0 | 0 | 0 |
Impairment of indefinite-lived intangible assets | 0 | 0 | $ 0 |
CooperSurgical | |||
Goodwill [Line Items] | |||
Goodwill deductible for tax purposes | 237,600,000 | 214,100,000 | |
CooperVision | |||
Goodwill [Line Items] | |||
Goodwill deductible for tax purposes | $ 20,100,000 | $ 22,400,000 |
Intangible Assets - Goodwill (D
Intangible Assets - Goodwill (Details) $ in Millions | 12 Months Ended |
Oct. 31, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Balance, beginning | $ 3,609.7 |
Net changes | 4.1 |
Foreign currency translation adjustment | 10.7 |
Balance, ending | 3,624.5 |
CooperVision | |
Goodwill [Roll Forward] | |
Balance, beginning | 1,710.3 |
Net changes | 7.7 |
Foreign currency translation adjustment | 29.6 |
Balance, ending | 1,747.6 |
CooperSurgical | |
Goodwill [Roll Forward] | |
Balance, beginning | 1,899.4 |
Net changes | (3.6) |
Foreign currency translation adjustment | (18.9) |
Balance, ending | $ 1,876.9 |
Intangible Assets - Other Intan
Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Millions | Oct. 31, 2023 | Oct. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 2,916.1 | $ 2,919 |
Accumulated Amortization | 1,215.1 | 1,044.7 |
Intangible assets with definite lives, net | 1,701 | 1,874.3 |
Intangible assets with indefinite lives, net | 9.3 | 10.8 |
Total other intangibles, net | $ 1,710.3 | 1,885.1 |
Weighted-average Amortization Period (in years) | 16 years | |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 208.9 | 209.6 |
Accumulated Amortization | $ 81.1 | 62.4 |
Weighted-average Amortization Period (in years) | 15 years | |
Composite intangible asset | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,061.9 | 1,061.9 |
Accumulated Amortization | $ 424.8 | 354 |
Weighted-average Amortization Period (in years) | 15 years | |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 494.5 | 504.1 |
Accumulated Amortization | $ 335.4 | 317.5 |
Weighted-average Amortization Period (in years) | 13 years | |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,099.2 | 1,092.7 |
Accumulated Amortization | $ 345.8 | 287 |
Weighted-average Amortization Period (in years) | 19 years | |
License and distribution rights and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 51.6 | 50.7 |
Accumulated Amortization | $ 28 | $ 23.8 |
Weighted-average Amortization Period (in years) | 11 years |
Intangible Assets - Estimated A
Intangible Assets - Estimated Amortization Expenses for Intangible Assets with Definite Lives (Details) - USD ($) $ in Millions | Oct. 31, 2023 | Oct. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2024 | $ 179.5 | |
2025 | 169.5 | |
2026 | 162 | |
2027 | 147.7 | |
2028 | 143.2 | |
Thereafter | 899.1 | |
Intangible assets with definite lives, net | $ 1,701 | $ 1,874.3 |
Financing Arrangements - Total
Financing Arrangements - Total Debt (Details) - USD ($) $ in Millions | Oct. 31, 2023 | Oct. 31, 2022 |
Short-term Debt | ||
Short-term debt | $ 44.4 | $ 395.7 |
Financing lease liabilities | $ 1 | $ 16.9 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Short-term debt | Short-term debt |
Short-term debt | $ 45.4 | $ 412.6 |
Long-term Debt | ||
Less: unamortized debt issuance cost | (2.4) | (3.1) |
Long-term debt, excluding financing leases | 2,520.4 | 2,347.1 |
Financing lease liabilities | $ 3.4 | $ 3.7 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-term debt | Long-term debt |
Long-term debt | $ 2,523.8 | $ 2,350.8 |
Total debt | 2,569.2 | 2,763.4 |
Term loans | ||
Long-term Debt | ||
Long-term debt, gross | 2,350 | 2,350 |
Other | ||
Long-term Debt | ||
Long-term debt, gross | 0.2 | 0.2 |
Revolving Credit Facility | Line of Credit | ||
Long-term Debt | ||
Long-term debt, gross | 172.6 | 0 |
Overdraft and other credit facilities | ||
Short-term Debt | ||
Short-term debt | 44.4 | 57.7 |
Term loans | ||
Short-term Debt | ||
Short-term debt | $ 0 | $ 338 |
Financing Arrangements - Narrat
Financing Arrangements - Narrative (Details) - USD ($) | Dec. 17, 2021 | Nov. 02, 2021 | Apr. 01, 2020 | Oct. 31, 2023 | Oct. 31, 2022 |
Term Loan Agreement 2021, 364 Day | Term loans | |||||
Schedule of Long Term And Short Term Debt Instruments [Line Items] | |||||
Debt term | 364 days | ||||
Debt Instrument, Face Amount | $ 840,000,000 | ||||
Line of Credit | Term Loan Facility 2021 | |||||
Schedule of Long Term And Short Term Debt Instruments [Line Items] | |||||
Aggregate principal amount | $ 1,500,000,000 | ||||
Potential additional borrowing capacity | $ 1,125,000,000 | ||||
Debt outstanding | $ 1,500,000,000 | ||||
Interest rate | 6.41% | ||||
Line of Credit | Term Loan Facility 2021 | Secured Overnight Financing Rate (SOFR) | |||||
Schedule of Long Term And Short Term Debt Instruments [Line Items] | |||||
Debt instrument, basis spread on variable rate | 1% | ||||
Line of Credit | Term Loan Facility 2021 | Fed Funds Effective Rate Overnight Index Swap Rate | |||||
Schedule of Long Term And Short Term Debt Instruments [Line Items] | |||||
Debt instrument, basis spread on variable rate | 0.50% | ||||
Line of Credit | Term Loan Facility, 2021 Base Rate Loans | Secured Overnight Financing Rate (SOFR) | |||||
Schedule of Long Term And Short Term Debt Instruments [Line Items] | |||||
Debt instrument, basis spread on variable rate | 0% | ||||
Line of Credit | Term Loan Facility 2021, Adjusted LIBOR Rate Loans | Secured Overnight Financing Rate (SOFR) | |||||
Schedule of Long Term And Short Term Debt Instruments [Line Items] | |||||
Debt instrument, basis spread on variable rate | 0.75% | ||||
Revolving Credit Facility | Credit Agreement 2020 | Line of Credit | |||||
Schedule of Long Term And Short Term Debt Instruments [Line Items] | |||||
Aggregate principal amount | $ 1,290,000,000 | ||||
Debt outstanding | $ 172,600,000 | ||||
Interest rate | 6.41% | ||||
Proceeds from line of credit | $ 445,000,000 | ||||
Revolving Credit Facility | Credit Agreement 2020 | Line of Credit | Minimum | |||||
Schedule of Long Term And Short Term Debt Instruments [Line Items] | |||||
Commitment fee percentage | 0.10% | ||||
Revolving Credit Facility | Credit Agreement 2020 | Line of Credit | Maximum | |||||
Schedule of Long Term And Short Term Debt Instruments [Line Items] | |||||
Commitment fee percentage | 0.20% | ||||
Revolving Credit Facility | European Credit Facilities | Line of Credit | |||||
Schedule of Long Term And Short Term Debt Instruments [Line Items] | |||||
Aggregate principal amount | $ 32,900,000 | $ 30,700,000 | |||
Debt outstanding | $ 700,000 | ||||
Weighted average interest rate | 7.82% | ||||
Revolving Credit Facility | Asian Pacific Credit Facilities - Yen-Denominated | Line of Credit | |||||
Schedule of Long Term And Short Term Debt Instruments [Line Items] | |||||
Aggregate principal amount | $ 74,300,000 | $ 73,000,000 | |||
Debt outstanding | $ 41,400,000 | ||||
Weighted average interest rate | 0.40% | ||||
Term Loan Facility 2020 | Credit Agreement 2020 | Line of Credit | |||||
Schedule of Long Term And Short Term Debt Instruments [Line Items] | |||||
Aggregate principal amount | $ 850,000,000 | ||||
Debt outstanding | $ 850,000,000 | ||||
Interest rate | 6.41% | ||||
Proceeds from line of credit | 850,000,000 | ||||
Revolving Credit Facility And Term Loan Facility 2020 | Credit Agreement 2020 | Line of Credit | |||||
Schedule of Long Term And Short Term Debt Instruments [Line Items] | |||||
Potential additional borrowing capacity | $ 1,605,000,000 | ||||
Revolving Credit Facility And Term Loan Facility 2020 | Credit Agreement 2020 | Secured Overnight Financing Rate (SOFR) | Line of Credit | Minimum | |||||
Schedule of Long Term And Short Term Debt Instruments [Line Items] | |||||
Debt instrument, basis spread on variable rate | 0.75% | ||||
Revolving Credit Facility And Term Loan Facility 2020 | Credit Agreement 2020 | Secured Overnight Financing Rate (SOFR) | Line of Credit | Maximum | |||||
Schedule of Long Term And Short Term Debt Instruments [Line Items] | |||||
Debt instrument, basis spread on variable rate | 1.50% | ||||
Revolving Credit Facility And Term Loan Facility 2020 | Credit Agreement 2020 | Base Rate | Line of Credit | Minimum | |||||
Schedule of Long Term And Short Term Debt Instruments [Line Items] | |||||
Debt instrument, basis spread on variable rate | 0% | ||||
Revolving Credit Facility And Term Loan Facility 2020 | Credit Agreement 2020 | Base Rate | Line of Credit | Maximum | |||||
Schedule of Long Term And Short Term Debt Instruments [Line Items] | |||||
Debt instrument, basis spread on variable rate | 0.50% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Jul. 31, 2021 | Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | Jan. 31, 2021 | |
Operating Loss Carryforwards [Line Items] | |||||
Deferred tax asset, intra-entity sale of certain intellectual property rights | $ 1,987.9 | ||||
Remeasurement of deferred tax assets from UK rate change | $ (536.7) | $ 0 | $ 0 | $ (536.7) | |
Unrecognized tax benefits that would impact the effective tax rate | 323.2 | 324.3 | 336.5 | ||
Accrued gross interest and penalties related to uncertain tax positions | 5.8 | $ 5.4 | $ 6.4 | ||
Significant change in unrecognized tax benefits that is reasonably possible during the next twelve months | 8.1 | ||||
Domestic Tax Authority | |||||
Operating Loss Carryforwards [Line Items] | |||||
Net operating loss carryforwards | 78.7 | ||||
Federal net operating losses expiring | 46 | ||||
Federal net operating losses not subject to expiration | 32.7 | ||||
State and Local Jurisdiction | |||||
Operating Loss Carryforwards [Line Items] | |||||
Net operating loss carryforwards | $ 87.1 |
Income Taxes - Income Before In
Income Taxes - Income Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Income before income taxes: | |||
United States | $ (135.7) | $ 31.4 | $ (31) |
Foreign | 548.6 | 443.9 | 522.5 |
Income before income taxes | $ 412.9 | $ 475.3 | $ 491.5 |
Income Taxes - Income Tax Provi
Income Taxes - Income Tax Provision (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Current: | |||
Federal | $ 37.3 | $ 10.2 | $ 21 |
State | 3.7 | 3.8 | 1.3 |
Foreign | 33 | 21.7 | 26.7 |
Total current income tax expense (benefit) | 74 | 35.7 | 49 |
Deferred: | |||
Federal | (36.7) | 10.5 | (8.8) |
State | (7.5) | (2.2) | (0.5) |
Foreign | 88.9 | 45.6 | (2,492.9) |
Total deferred income tax expense (benefit) | 44.7 | 53.9 | (2,502.2) |
Provision for income taxes | $ 118.7 | $ 89.5 | $ (2,453.2) |
Income Taxes - Reconciliation b
Income Taxes - Reconciliation between the Expected Provision for Income taxes at the US Federal Statutory Rate and the Provision for Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jul. 31, 2021 | Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes at United States statutory tax rate | $ 86.7 | $ 99.8 | $ 103.2 | |
Foreign earnings in jurisdictions with different tax rates | 7 | (22.3) | (43.6) | |
Foreign earnings subject to United States tax | 34.3 | 21.1 | 25.4 | |
Excess tax benefits from share-based compensation | (2.4) | (2.6) | (13) | |
Intra-group transfer to UK subsidiary | 0 | 0 | (1,987.8) | |
Remeasurement of deferred tax assets from UK rate change | $ (536.7) | 0 | 0 | (536.7) |
Change in unrecognized tax benefits | 0 | (12.7) | (7.6) | |
State tax provision | (4.2) | 5 | 0.8 | |
Other, net | (2.7) | 1.2 | 6.1 | |
Provision for income taxes | $ 118.7 | $ 89.5 | $ (2,453.2) |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Oct. 31, 2023 | Oct. 31, 2022 |
Deferred tax assets: | ||
Accounts receivable | $ 7.5 | $ 4.9 |
Inventories | 14.3 | 6.3 |
Accrued liabilities, reserves and compensation accruals | 94.8 | 79.9 |
Foreign deferred tax assets | 2,369.5 | 2,500.5 |
Share-based compensation | 14.8 | 14.5 |
Net operating loss and tax credit carryforwards | 24.3 | 19.6 |
Capitalized research and experimental expenses | 23.6 | 15.4 |
Total gross deferred tax assets | 2,548.8 | 2,641.1 |
Less: valuation allowance | (20.7) | (60.1) |
Deferred tax assets | 2,528.1 | 2,581 |
Deferred tax liabilities: | ||
Tax deductible goodwill | (47.4) | (39.7) |
Intangible assets | (132.4) | (153.8) |
Plant and equipment | (51.2) | (48.8) |
Foreign deferred tax liabilities | (49) | (45.5) |
Total gross deferred tax liabilities | (280) | (287.8) |
Net deferred tax assets | $ 2,248.1 | $ 2,293.2 |
Income Taxes - Changes in Unrec
Income Taxes - Changes in Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2023 | Oct. 31, 2022 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Beginning of the period | $ 336.9 | $ 353.8 |
Decrease based on tax positions in prior fiscal years | (0.5) | (12.5) |
Settlements | (0.2) | |
Lapses of statutes of limitations | (6.9) | (4.2) |
Increase based on tax positions in current fiscal year | 2 | |
End of the period | $ 331.5 | $ 336.9 |
Earnings Per Share - Basic and
Earnings Per Share - Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Earnings Per Share [Abstract] | |||
Net income | $ 294.2 | $ 385.8 | $ 2,944.7 |
Basic: | |||
Weighted-average common shares (in shares) | 49.5 | 49.3 | 49.2 |
Basic earnings per share (in dollars per share) | $ 5.94 | $ 7.83 | $ 59.80 |
Diluted: | |||
Effect of dilutive stock options (in shares) | 0.3 | 0.4 | 0.6 |
Diluted weighted average common shares (in shares) | 49.8 | 49.7 | 49.8 |
Diluted earnings per share (in dollars per share) | $ 5.91 | $ 7.76 | $ 59.16 |
Earnings Per Share - Stock Opti
Earnings Per Share - Stock Options to Purchase Common Stock and Restricted Stock Units Not Included in Diluted Earnings Per Share Due to Antidilutive Effect (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Range of exercise prices, lower limit (in dollars per share) | $ 300.12 | $ 300.12 | $ 345.74 |
Range of exercise prices, higher limit (in dollars per share) | $ 406.17 | $ 406.17 | $ 345.74 |
Stock Options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Stock option shares and restricted stock units excluded (in shares) | 311 | 227 | 107 |
Restricted Stock Units (RSUs) | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Stock option shares and restricted stock units excluded (in shares) | 15 | 87 | 2 |
Stockholders' Equity - Changes
Stockholders' Equity - Changes in Accumulated Other Comprehensive Income (Loss) Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 7,174.7 | $ 6,942 | $ 3,824.8 |
Gross change in value | 11.6 | (90.7) | 146.3 |
Tax effect | 1.4 | (34.8) | (15.6) |
Ending balance | 7,551 | 7,174.7 | 6,942 |
Total | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (466.8) | (341.3) | (472) |
Ending balance | (453.8) | (466.8) | (341.3) |
Foreign Currency Translation Adjustment | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (555) | (320.3) | (402.3) |
Gross change in value | 17 | (234.7) | 82.2 |
Tax effect | 0 | 0 | (0.2) |
Ending balance | (538) | (555) | (320.3) |
Derivatives | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 94.4 | 13.1 | (13) |
Gross change in value | (9.4) | 107.4 | 34.3 |
Tax effect | 2.4 | (26.1) | (8.2) |
Ending balance | 87.4 | 94.4 | 13.1 |
Minimum Pension Liability | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (6.2) | (34.1) | (56.7) |
Gross change in value | 4 | 36.6 | 29.8 |
Tax effect | (1) | (8.7) | (7.2) |
Ending balance | $ (3.2) | $ (6.2) | $ (34.1) |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) $ / shares in Units, $ in Millions | 6 Months Ended | 12 Months Ended | ||||||||
Dec. 07, 2023 | Oct. 31, 2023 USD ($) $ / shares | Apr. 30, 2023 $ / shares | Oct. 31, 2022 $ / shares | Apr. 30, 2022 $ / shares | Oct. 31, 2023 USD ($) $ / shares shares | Oct. 31, 2022 USD ($) $ / shares shares | Oct. 31, 2021 USD ($) $ / shares | Mar. 31, 2017 USD ($) | Dec. 31, 2011 USD ($) | |
Class of Stock [Line Items] | ||||||||||
Share repurchase program, maximum amount authorized | $ 1,000 | $ 500 | ||||||||
Share repurchase program, remaining authorized amount | $ 256.4 | $ 256.4 | ||||||||
Stock repurchase (in shares) | shares | 0 | 191,200 | ||||||||
Treasury stock repurchase | $ 78.5 | $ 24.8 | ||||||||
Average repurchase price per share (in dollars per share) | $ / shares | $ 410.41 | |||||||||
Dividends declared on common stock (in dollars per share) | $ / shares | $ 0.06 | 0.06 | ||||||||
Dividends on common stock (in dollars per share) | $ / shares | $ 0.03 | $ 0.03 | $ 0.03 | $ 0.03 | $ 0.03 | $ 0.03 | $ 0.03 | |||
Dividends on common stock | $ 3 | $ 3 | $ 3 | |||||||
Subsequent Event | ||||||||||
Class of Stock [Line Items] | ||||||||||
Stock split, conversion ratio | 4 |
Stock Plans - Narrative (Detail
Stock Plans - Narrative (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Mar. 31, 2023 director shares | Mar. 18, 2019 shares | Mar. 31, 2016 director shares | Oct. 31, 2023 USD ($) $ / shares shares | Oct. 31, 2022 USD ($) $ / shares shares | Oct. 31, 2021 USD ($) $ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Total unrecognized compensation cost related to nonvested options | $ 17.6 | |||||
Share-based compensation expense | $ 62.1 | $ 54.2 | $ 44.7 | |||
Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Total unrecognized compensation cost expected to be recognized over a remaining weighted-average vesting period | 2 years 1 month 6 days | |||||
Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Total unrecognized compensation cost expected to be recognized over a remaining weighted-average vesting period | 2 years 4 months 24 days | |||||
Total unrecognized compensation cost related to nonvested units | $ 63.1 | |||||
Fair value of vested grants | $ 37.3 | 46.1 | 50.1 | |||
Performance Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 3 years | |||||
Total unrecognized compensation cost expected to be recognized over a remaining weighted-average vesting period | 1 year 8 months 12 days | |||||
Total unrecognized compensation cost related to nonvested units | $ 12.3 | |||||
Performance Units | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Target percentage of shares earned | 0% | |||||
Performance Units | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Target percentage of shares earned | 200% | |||||
Third Amended and Restated 2007 Long-Term Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of non-employee directors in committee | director | 2 | |||||
Number of shares authorized to be granted | shares | 6,930,000 | |||||
2023 Long-Term Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of non-employee directors in committee | director | 2 | |||||
Number of shares authorized to be granted | shares | 1,365,000 | |||||
Shares remaining for future grant (in shares) | shares | 1,376,240 | |||||
Third Amended And Restated 2007 Long-Term Incentive Plan And 2023 Long-Term Incentive Plan | Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Total intrinsic value of options exercised | $ 13.4 | $ 6.6 | $ 64.7 | |||
Weighted-average fair value of each option granted (in dollars per share) | $ / shares | $ 103.17 | $ 90.41 | $ 84.10 | |||
Award expiration date (no more than) | 10 years | |||||
Third Amended And Restated 2007 Long-Term Incentive Plan And 2023 Long-Term Incentive Plan | Stock Options | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 3 years | |||||
Third Amended And Restated 2007 Long-Term Incentive Plan And 2023 Long-Term Incentive Plan | Stock Options | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 5 years | |||||
Third Amended And Restated 2007 Long-Term Incentive Plan And 2023 Long-Term Incentive Plan | Restricted Stock Units (RSUs) | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 3 years | |||||
Third Amended And Restated 2007 Long-Term Incentive Plan And 2023 Long-Term Incentive Plan | Restricted Stock Units (RSUs) | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 5 years | |||||
Employee Stock Purchase Plan | Employee Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized to be granted | shares | 1,000,000 | |||||
Exercise price percentage of fair market value on date of grant of awards | 85% | |||||
Number of shares issued to employees | shares | 26,116 | 22,695 | ||||
Number of shares remaining available for future issuance | shares | 921,975 | |||||
Share-based compensation expense | $ 1.3 | $ 1.1 |
Stock Plans - Compensation Expe
Stock Plans - Compensation Expense and Related Income Tax Benefit for Share-Based Awards (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation expense | $ 62.1 | $ 54.2 | $ 44.7 |
Related income tax benefit | 5 | 5 | 5.6 |
Selling, general and administrative expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation expense | 54.8 | 46.7 | 38.4 |
Cost of sales | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation expense | 4.2 | 4.5 | 3.9 |
Research and development expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation expense | $ 3.1 | $ 3 | $ 2.4 |
Stock Plans - Assumptions Used
Stock Plans - Assumptions Used in Estimating Fair Value of Stock Options Award Granted (Details) | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life | 4 years | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life | 4 years 6 months | 4 years 1 month 6 days | |
Expected volatility | 29.50% | 25.80% | 30.30% |
Risk-free interest rate | 3.80% | 1.10% | 0.30% |
Dividend yield | 0.02% | 0.02% | 0.02% |
Stock Plans - Stock Option Plan
Stock Plans - Stock Option Plans (Details) | 12 Months Ended |
Oct. 31, 2023 USD ($) $ / shares shares | |
Number of Shares | |
Vested and expected to vest at end of period (in shares) | shares | 1,059,841 |
Vested and exercisable at end of period (in shares) | shares | 729,591 |
Weighted- Average Exercise Price Per Share | |
Vested and expected to vest at end of period (in dollars per share) | $ / shares | $ 276.11 |
Vested and exercisable at end of period (in dollars per share) | $ / shares | $ 248.34 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Vested and expected to vest at end of period, Weighted-Average Remaining Contractual Term (in years) | 5 years 3 months 25 days |
Vested and exercisable at end of period, Weighted-Average Remaining Contractual Term (in years) | 4 years 4 months 17 days |
Vested and expected to vest at end of period, Aggregate Intrinsic Value | $ | $ 53,475,275 |
Vested and exercisable at end of period, Aggregate Intrinsic Value | $ | $ 50,797,891 |
Stock Options | |
Number of Shares | |
Outstanding, beginning balance (in shares) | shares | 1,063,843 |
Granted (in shares) | shares | 86,241 |
Exercised (in shares) | shares | (71,808) |
Forfeited or expired (in shares) | shares | (720) |
Outstanding, ending balance (in shares) | shares | 1,077,556 |
Weighted- Average Exercise Price Per Share | |
Outstanding, beginning balance (in dollars per share) | $ / shares | $ 264.85 |
Granted (in dollars per share) | $ / shares | 329.83 |
Exercised (in dollars per share) | $ / shares | 155.45 |
Forfeited or expired (in dollars per share) | $ / shares | 337.72 |
Outstanding, ending balance (in dollars per share) | $ / shares | $ 277.29 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Outstanding, ending balance, Weighted Average Remaining Contractual Term (in years) | 5 years 4 months 9 days |
Outstanding, ending balance, Aggregate Intrinsic Value | $ | $ 53,510,367 |
Stock Plans - Non-Vested RSUs (
Stock Plans - Non-Vested RSUs (Details) - Restricted Stock Units (RSUs) | 12 Months Ended |
Oct. 31, 2023 $ / shares shares | |
Number of Shares | |
Nonvested RSUs, beginning balance (in shares) | shares | 289,238 |
Granted (in shares) | shares | 145,655 |
Vested and issued (in shares) | shares | (107,403) |
Forfeited or expired (in shares) | shares | (37,461) |
Nonvested RSUs, ending balance (in shares) | shares | 290,029 |
Weighted- Average Grant Date Fair Value Per Share | |
Non-vested RSUs, beginning balance (in dollars per share) | $ / shares | $ 340.68 |
Granted (in dollars per share) | $ / shares | 335.32 |
Vested and issued (in dollars per share) | $ / shares | 320.22 |
Forfeited or exercised (in dollars per share) | $ / shares | 344.72 |
Non-vested RSUs, ending balance (in dollars per share) | $ / shares | $ 345.03 |
Employee Benefits - Narrative (
Employee Benefits - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | $ 131.5 | $ 134.9 | $ 207.6 |
Discount rate | 5.74% | 2.76% | 2.78% |
Defined benefit obligation, actuarial gain (loss) | $ 10.9 | $ 93.2 | $ (2) |
Expected long-term return on diversified portfolio | 8% | ||
Employer contributions | $ 1.1 | 0 | 12.7 |
Expected future employer contributions | $ 1.1 | ||
Maximum annual contributions per employee in 401k savings plan | 75% | ||
Contributions by employer in 401k savings plan | $ 10.1 | $ 9 | $ 7.2 |
Minimum | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Diversified portfolio, allocation of assets in equities | 50% | ||
Maximum | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Diversified portfolio, allocation of assets in equities | 70% | ||
Change In Assumptions For Defined Benefit Plans, Change In Key Assumptions | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit obligation, actuarial gain (loss) | $ 12.9 | ||
Change In Assumptions For Defined Benefit Plans, Change In Demographic Experience | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit obligation, actuarial gain (loss) | (2) | ||
Change In Assumptions For Defined Benefit Plans, Change In Discount Rate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit obligation, actuarial gain (loss) | 7.8 | ||
Change In Assumptions For Defined Benefit Plans, Change In Lump Sum Determination | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit obligation, actuarial gain (loss) | $ 5.1 |
Employee Benefits - Changes in
Employee Benefits - Changes in Benefit Obligation, Changes in Plan Assets and Funded Status (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Change in benefit obligation | |||
Benefit obligation, beginning of year | $ 148 | $ 230.9 | $ 218.8 |
Service cost | 10 | 18.3 | 17.2 |
Interest cost | 7.9 | 5.1 | 4.4 |
Benefits paid | (10.5) | (13.1) | (11.5) |
Actuarial (gain)/loss | (10.9) | (93.2) | 2 |
Benefit obligation, end of year | $ 144.5 | $ 148 | $ 230.9 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other liabilities | Other liabilities | Other liabilities |
Change in plan assets | |||
Fair value of plan assets, beginning of year | $ 142.9 | $ 199.5 | $ 159.5 |
Actual return on plan assets | 4.1 | (43.5) | 38.8 |
Employer contributions | 1.1 | 0 | 12.7 |
Benefits paid | (10.5) | (13.1) | (11.5) |
Fair value of plan assets, end of year | 137.6 | 142.9 | 199.5 |
Funded status at end of year | $ (6.9) | $ (5.1) | $ (31.4) |
Employee Benefits - Amounts Rec
Employee Benefits - Amounts Recognized in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 |
Amounts recognized in accumulated other comprehensive income consist of: | |||
Net loss | $ 4.1 | $ 8 | $ 44.4 |
Accumulated other comprehensive income | $ 4.1 | $ 8 | $ 44.4 |
Employee Benefits - Reconciliat
Employee Benefits - Reconciliation of Prepaid (Accrued) Pension Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Reconciliation of (prepaid) accrued pension cost: | |||
(Prepaid)/Accrued pension cost at prior fiscal year end | $ (2.9) | $ (13) | $ (14.8) |
Net periodic benefit cost | 6.8 | 10.1 | 14.5 |
Contributions made during the year | (1.1) | 0 | (12.7) |
(Prepaid)/Accrued pension cost at fiscal year end | $ 2.8 | $ (2.9) | $ (13) |
Employee Benefits - Components
Employee Benefits - Components of Net Periodic Pension Costs and Other Amounts Recognized in Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Components of net periodic benefit cost and other amounts recognized in the Consolidated Statements of Income: | |||
Service cost | $ 10 | $ 18.3 | $ 17.2 |
Interest cost | $ 7.9 | $ 5.1 | $ 4.4 |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) |
Expected return on plan assets | $ (11.1) | $ (15.5) | $ (12.5) |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Immediate Recognition of Actuarial Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) |
Recognized actuarial loss | $ 0 | $ 2.2 | $ 5.4 |
Net periodic pension cost | $ 6.8 | $ 10.1 | $ 14.5 |
Employee Benefits - Other Chang
Employee Benefits - Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Other changes in plan assets and benefit obligations recognized in other comprehensive income: | |||
Net (gain) loss | $ (4) | $ (34.1) | $ (24.4) |
Amortizations of net gain | 0 | (2.5) | (5.4) |
Total recognized in other comprehensive (income) loss | (4) | (36.6) | (29.8) |
Total recognized in net periodic benefit cost and other comprehensive (income) loss | $ 2.8 | $ (26.2) | $ (15.2) |
Employee Benefits - Weighted-Av
Employee Benefits - Weighted-Average Assumptions Used in Computing Net Periodic Pension Cost and Projected Benefit Obligation (Details) | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Discount rate for determining net periodic pension cost: | |||
Projected Benefit Obligation | 5.74% | 2.76% | 2.78% |
Service Cost | 5.77% | 2.79% | 2.86% |
Interest Cost | 5.51% | 2.28% | 2.07% |
Discount rate for determining benefit obligations at year end | 6.22% | 5.74% | 2.76% |
Rate of compensation increase for determining expense | 3.60% | 3.60% | 3.60% |
Rate of compensation increase for determining benefit obligations at year end | 3.60% | 3.60% | 3.60% |
Expected rate of return on plan assets for determining net periodic pension cost | 8% | 8% | 8% |
Expected rate of return on plan assets at year end | 8% | 8% | 8% |
Employee Benefits - Weighted-_2
Employee Benefits - Weighted-Average Asset Allocations by Asset Category (Details) | Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 |
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Asset allocation | 100% | 100% | 100% |
Cash and cash equivalents | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Asset allocation | 2.90% | 2% | 5% |
Corporate common stock | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Asset allocation | 26% | 33.60% | 31.60% |
Equity mutual funds | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Asset allocation | 39.10% | 33.90% | 32.80% |
Balanced funds | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Asset allocation | 2.40% | 1.80% | 1.40% |
Alternative investments | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Asset allocation | 0.70% | 0.90% | 1% |
Bond mutual funds | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Asset allocation | 28.90% | 27.80% | 28.20% |
Employee Benefits - Fair Value
Employee Benefits - Fair Value Measurement of Plan Assets (Details) - USD ($) $ in Millions | Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 |
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||
Fair value of plan assets | $ 137.6 | $ 142.9 | $ 199.5 | $ 159.5 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||
Fair value of plan assets | 113.6 | |||
Significant Observable Inputs (Level 2) | ||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||
Fair value of plan assets | 24 | |||
Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||
Fair value of plan assets | 0 | |||
Cash and cash equivalents | ||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||
Fair value of plan assets | 3.9 | |||
Cash and cash equivalents | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||
Fair value of plan assets | 3.9 | |||
Cash and cash equivalents | Significant Observable Inputs (Level 2) | ||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||
Fair value of plan assets | 0 | |||
Cash and cash equivalents | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||
Fair value of plan assets | 0 | |||
Corporate common stock | ||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||
Fair value of plan assets | 35.8 | |||
Corporate common stock | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||
Fair value of plan assets | 35.8 | |||
Corporate common stock | Significant Observable Inputs (Level 2) | ||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||
Fair value of plan assets | 0 | |||
Corporate common stock | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||
Fair value of plan assets | 0 | |||
Equity mutual funds | ||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||
Fair value of plan assets | 53.9 | |||
Equity mutual funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||
Fair value of plan assets | 53.9 | |||
Equity mutual funds | Significant Observable Inputs (Level 2) | ||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||
Fair value of plan assets | 0 | |||
Equity mutual funds | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||
Fair value of plan assets | 0 | |||
Balanced funds | ||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||
Fair value of plan assets | 3.3 | |||
Balanced funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||
Fair value of plan assets | 3.3 | |||
Balanced funds | Significant Observable Inputs (Level 2) | ||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||
Fair value of plan assets | 0 | |||
Balanced funds | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||
Fair value of plan assets | 0 | |||
Alternative investments | ||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||
Fair value of plan assets | 0.9 | |||
Alternative investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||
Fair value of plan assets | 0.9 | |||
Alternative investments | Significant Observable Inputs (Level 2) | ||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||
Fair value of plan assets | 0 | |||
Alternative investments | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||
Fair value of plan assets | 0 | |||
Fixed Income Investments | ||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||
Fair value of plan assets | 39.8 | |||
Fixed Income Investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||
Fair value of plan assets | 15.8 | |||
Fixed Income Investments | Significant Observable Inputs (Level 2) | ||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||
Fair value of plan assets | 24 | |||
Fixed Income Investments | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||
Fair value of plan assets | $ 0 |
Employee Benefits - Estimated F
Employee Benefits - Estimated Future Benefit Payments (Details) $ in Millions | Oct. 31, 2023 USD ($) |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2024 | $ 10.9 |
2025 | 11 |
2026 | 10.3 |
2027 | 11.2 |
2028 | 12.3 |
2029-2033 | $ 65.9 |
Business Segment Information -
Business Segment Information - Narrative (Details) | 12 Months Ended |
Oct. 31, 2023 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Business Segment Information _2
Business Segment Information - Business Segment Net Sales (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 3,593.2 | $ 3,308.4 | $ 2,922.5 |
CooperVision | |||
Segment Reporting Information [Line Items] | |||
Net sales | 2,423.7 | 2,243.3 | 2,152 |
CooperSurgical | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,169.5 | 1,065.1 | 770.5 |
Toric lens | CooperVision | |||
Segment Reporting Information [Line Items] | |||
Net sales | 828.7 | 737.4 | 697.5 |
Multifocal lens | CooperVision | |||
Segment Reporting Information [Line Items] | |||
Net sales | 305.7 | 264.4 | 238.6 |
Single-use sphere lens | CooperVision | |||
Segment Reporting Information [Line Items] | |||
Net sales | 705.4 | 661.6 | 616.3 |
Non single-use sphere, other | CooperVision | |||
Segment Reporting Information [Line Items] | |||
Net sales | 583.9 | 579.9 | 599.6 |
Office and surgical | CooperSurgical | |||
Segment Reporting Information [Line Items] | |||
Net sales | 689.5 | 633.6 | 451.3 |
Fertility | CooperSurgical | |||
Segment Reporting Information [Line Items] | |||
Net sales | $ 480 | $ 431.5 | $ 319.2 |
Business Segment Information _3
Business Segment Information - Business Segment Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 3,593,200 | $ 3,308,400 | $ 2,922,500 |
Operating income (loss) | 533,100 | 507,600 | 505,800 |
Interest expense | 105,300 | 57,300 | 23,100 |
Other expense (income), net | 14,900 | (25,000) | (8,800) |
Income before income taxes | 412,900 | 475,300 | 491,500 |
Identifiable assets | 11,658,900 | 11,492,300 | 9,606,200 |
Depreciation expense | 181,500 | 166,600 | 163,200 |
Amortization expense | 186,200 | 179,500 | 146,100 |
Capital expenditures | 392,500 | 242,000 | 214,400 |
CooperVision | |||
Segment Reporting Information [Line Items] | |||
Net sales | 2,423,700 | 2,243,300 | 2,152,000 |
CooperSurgical | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,169,500 | 1,065,100 | 770,500 |
Operating Segments | CooperVision | |||
Segment Reporting Information [Line Items] | |||
Net sales | 2,423,700 | 2,243,300 | 2,152,000 |
Operating income (loss) | 587,700 | 494,300 | 481,300 |
Identifiable assets | 7,044,000 | 6,778,900 | 6,965,900 |
Depreciation expense | 156,900 | 144,500 | 148,300 |
Amortization expense | 32,900 | 32,300 | 35,700 |
Capital expenditures | 364,400 | 223,000 | 190,000 |
Operating Segments | CooperSurgical | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,169,500 | 1,065,100 | 770,500 |
Operating income (loss) | 16,100 | 67,100 | 71,800 |
Identifiable assets | 4,351,800 | 4,407,800 | 2,395,600 |
Depreciation expense | 24,600 | 22,100 | 14,900 |
Amortization expense | 153,300 | 147,200 | 110,400 |
Capital expenditures | 28,100 | 19,000 | 24,400 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Net sales | 0 | 0 | 0 |
Operating income (loss) | (70,700) | (53,800) | (47,300) |
Identifiable assets | 263,100 | 305,600 | 244,700 |
Depreciation expense | 0 | 0 | 0 |
Amortization expense | 0 | 0 | 0 |
Capital expenditures | $ 0 | $ 0 | $ 0 |
Business Segment Information _4
Business Segment Information - Information by Geographical Area by Country of Domicile (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 3,593.2 | $ 3,308.4 | $ 2,922.5 |
Operating income | 533.1 | 507.6 | 505.8 |
Long-lived assets | 1,632.6 | 1,432.9 | 1,347.6 |
United States | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,812.2 | 1,638.5 | 1,339.2 |
Europe | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,041.2 | 987.2 | 957.9 |
Rest of World | |||
Segment Reporting Information [Line Items] | |||
Net sales | 739.8 | 682.7 | 625.4 |
Geography Eliminations | United States | |||
Segment Reporting Information [Line Items] | |||
Net sales | (563.1) | (514.4) | (494.9) |
Geography Eliminations | Europe | |||
Segment Reporting Information [Line Items] | |||
Net sales | (1,016.7) | (897.3) | (815.1) |
Geography Eliminations | Rest of World | |||
Segment Reporting Information [Line Items] | |||
Net sales | (1,579.8) | (1,411.7) | (1,310) |
Reportable Geographical Components | United States | |||
Segment Reporting Information [Line Items] | |||
Net sales | 2,375.3 | 2,152.9 | 1,834.1 |
Operating income | 0 | 71.8 | (26.8) |
Long-lived assets | 1,027.6 | 856.1 | 737.5 |
Reportable Geographical Components | Europe | |||
Segment Reporting Information [Line Items] | |||
Net sales | 2,057.9 | 1,884.5 | 1,773 |
Operating income | 516.2 | 403.8 | 416.2 |
Long-lived assets | 325.9 | 310.8 | 377.2 |
Eliminations, Corporate and Reconciling Items | Rest of World | |||
Segment Reporting Information [Line Items] | |||
Net sales | (840) | (729) | (684.6) |
Operating income | 16.9 | 32 | 116.4 |
Long-lived assets | $ 279.1 | $ 266 | $ 232.9 |
Financial Derivatives and Hed_3
Financial Derivatives and Hedging - Narrative (Details) $ in Millions | 12 Months Ended |
Oct. 31, 2023 USD ($) interest_rate_swap_contract | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Derivative loss expected to be realized in earnings over the next twelve months | $ (48.2) |
Foreign Exchange Forward | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Derivative notional amount | 56.2 |
Interest Rate Swap | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Derivative notional amount | $ 1,300 |
Number of interest rate swap contracts held | interest_rate_swap_contract | 6 |
Derivative, term of contract (or less) | 4 years |
Financial Derivatives and Hed_4
Financial Derivatives and Hedging - Derivative Instruments Recognized in Condensed Consolidated Statements of Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Interest expense | Interest Rate Swap | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Loss recognized on derivatives within interest expense | $ (43.1) | $ (2.3) | $ 8 |
Financial Derivatives and Hed_5
Financial Derivatives and Hedging - Changes in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
AOCI Attributable To Parent, Before Reclassification And Tax [Roll Forward] | |||
Beginning balance | $ 7,174.7 | $ 6,942 | $ 3,824.8 |
Amount recognized in other comprehensive income on interest rate swaps contracts, net of tax | 25.7 | 79.7 | |
Amount reclassified from other comprehensive income into earnings, net of tax | (32.7) | 1.7 | |
Ending balance | 7,551 | 7,174.7 | 6,942 |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Before Tax, Parent | |||
AOCI Attributable To Parent, Before Reclassification And Tax [Roll Forward] | |||
Beginning balance | 124.5 | 17.2 | |
Ending balance | 115.1 | 124.5 | 17.2 |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | |||
AOCI Attributable To Parent, Before Reclassification And Tax [Roll Forward] | |||
Beginning balance | 94.4 | 13.1 | (13) |
Amount recognized in other comprehensive income on interest rate swap contracts, gross | 33.7 | 105.1 | |
Amount reclassified from other comprehensive income into earnings, gross | (43.1) | 2.2 | |
Ending balance | $ 87.4 | $ 94.4 | $ 13.1 |
Schedule II (Details)
Schedule II (Details) - SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance Beginning of Year | $ 60.1 | $ 51.8 | $ 45.3 |
Additions | 2.6 | 13.3 | 8.8 |
Reductions/ Charges | (42) | (5) | (2.3) |
Balance at End of Year | $ 20.7 | $ 60.1 | $ 51.8 |
Uncategorized Items - coo-20231
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |
Common Stock, Excluding Treasury Stock Par Net Value [Member] | ||
Stock Issued During Period, Value, New Issues | us-gaap_StockIssuedDuringPeriodValueNewIssues | $ 100,000 |