Cover
Cover - USD ($) | 12 Months Ended | ||
Oct. 31, 2020 | Nov. 30, 2020 | Apr. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Oct. 31, 2020 | ||
Document Transition Report | false | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000072331 | ||
Current Fiscal Year End Date | --10-31 | ||
Entity File Number | 0-7977 | ||
Entity Registrant Name | NORDSON CORPORATION | ||
Entity Incorporation, State or Country Code | OH | ||
Entity Tax Identification Number | 34-0590250 | ||
Entity Address, Address Line One | 28601 Clemens Road | ||
Entity Address, City or Town | Westlake | ||
Entity Address, State or Province | OH | ||
Entity Address, Postal Zip Code | 44145 | ||
City Area Code | 440 | ||
Local Phone Number | 892-1580 | ||
Title of 12(b) Security | Common Shares, without par value | ||
Trading Symbol | NDSN | ||
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 | ||
Entity Shell Company | false | ||
Entity Public Float | $ 8,999,983,246 | ||
Entity Common Stock, Shares Outstanding | 58,094,487 | ||
Documents Incorporated by Reference | Portions of the Proxy Statement for the 2021 Annual Meeting - Part III of the Form 10-K |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Income Statement [Abstract] | |||
Sales | $ 2,121,100 | $ 2,194,226 | $ 2,254,668 |
Operating costs and expenses: | |||
Cost of sales | 990,632 | 1,002,123 | 1,018,340 |
Selling and administrative expenses | 693,552 | 708,990 | 733,749 |
Assets held for sale impairment charge | 87,371 | 0 | 0 |
Total operating costs and expenses | 1,771,555 | 1,711,113 | 1,752,089 |
Operating profit | 349,545 | 483,113 | 502,579 |
Other income (expense): | |||
Interest expense | (32,160) | (47,145) | (49,576) |
Interest and investment income | 1,681 | 1,844 | 1,384 |
Other - net | (17,577) | (6,708) | (5,868) |
Total other income (expense) | (48,056) | (52,009) | (54,060) |
Income before income taxes | 301,489 | 431,104 | 448,519 |
Income tax provision: | |||
Current | 65,906 | 95,031 | 105,093 |
Deferred | (13,956) | (1,018) | (33,949) |
Income taxes | 51,950 | 94,013 | 71,144 |
Net income | $ 249,539 | $ 337,091 | $ 377,375 |
Average common shares (in shares) | 57,757 | 57,462 | 57,970 |
Incremental common shares attributable to outstanding stock options, restricted stock and deferred stock-based compensation (in shares) | 716 | 740 | 961 |
Average common shares and common share equivalents (in shares) | 58,473 | 58,202 | 58,931 |
Basic earnings per share (in dollars per share) | $ 4.32 | $ 5.87 | $ 6.51 |
Diluted earnings per share (in dollars per share) | 4.27 | 5.79 | 6.40 |
Dividends declared per common share (in dollars per share) | $ 1.53 | $ 1.43 | $ 1.25 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Net income | $ 249,539 | $ 337,091 | $ 377,375 |
Components of other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments | 12,910 | 3,710 | (28,619) |
Pension and postretirement benefit plans: | |||
Prior service (cost) credit arising during the year | (6) | (148) | (45) |
Net actuarial loss arising during the year | (21,607) | (63,138) | (7,783) |
Amortization of prior service cost | (232) | (322) | (322) |
Amortization of actuarial loss | 12,767 | 6,946 | 10,536 |
Settlement loss recognized | 1,931 | 385 | 200 |
Total pension and postretirement benefit plans | (7,147) | (56,277) | 2,586 |
Total other comprehensive income (loss) | 5,763 | (52,567) | (26,033) |
Total comprehensive income | 255,302 | 284,524 | 332,496 |
ASU 2018-02 | |||
Pension and postretirement benefit plans: | |||
Reclassification due to adoption of ASU 2018-02 | $ 0 | $ 0 | $ (18,846) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 31, 2020 | Oct. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 208,293 | $ 151,164 |
Receivables - net | 471,873 | 530,765 |
Inventories - net | 277,033 | 283,399 |
Prepaid expenses and other current assets | 43,798 | 45,867 |
Assets held for sale | 19,615 | 0 |
Total current assets | 1,020,612 | 1,011,195 |
Property, plant and equipment - net | 358,618 | 398,895 |
Operating right of use lease assets | 122,125 | 0 |
Goodwill | 1,713,354 | 1,614,739 |
Intangible assets - net | 407,586 | 445,575 |
Deferred income taxes | 9,831 | 11,261 |
Other assets | 42,530 | 34,782 |
Total assets | 3,674,656 | 3,516,447 |
Current liabilities: | ||
Accounts payable | 70,949 | 85,139 |
Income taxes payable | 7,841 | 15,601 |
Accrued liabilities | 167,883 | 161,655 |
Customer advance payments | 42,323 | 41,131 |
Current maturities of long - term debt | 38,043 | 168,738 |
Operating lease liability - current | 16,918 | 0 |
Finance lease liability | 5,984 | 5,362 |
Liabilities held for sale | 13,148 | 0 |
Total current liabilities | 363,089 | 477,626 |
Long-term debt | 1,067,952 | 1,075,404 |
Operating lease liability - noncurrent | 109,317 | 0 |
Finance lease liability - noncurrent | 10,470 | 9,513 |
Pension obligations | 165,529 | 158,506 |
Postretirement obligations | 85,249 | 86,368 |
Deferred income taxes | 66,995 | 83,564 |
Other long-term liabilities | 47,064 | 44,421 |
Shareholders' equity: | ||
Preferred shares, no par value; 10,000 shares authorized; none issued | 0 | 0 |
Common shares, no par value; 160,000 shares authorized; 98,023 shares issued at October 31, 2020 and 2019 | 12,253 | 12,253 |
Capital in excess of stated value | 534,684 | 483,116 |
Retained earnings | 2,908,738 | 2,747,650 |
Accumulated other comprehensive loss | (226,118) | (231,881) |
Common shares in treasury, at cost | (1,470,566) | (1,430,093) |
Total shareholders' equity | 1,758,991 | 1,581,045 |
Total liabilities and shareholders' equity | $ 3,674,656 | $ 3,516,447 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Oct. 31, 2020 | Oct. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred shares, authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred shares, issued (in shares) | 0 | 0 |
Common shares, authorized (in shares) | 160,000,000 | 160,000,000 |
Common shares, issued (in shares) | 98,023,000 | 98,023,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Shares | Additional Paid-in- Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Common Shares in Treasury, at cost | Revision of Prior Period, Change in Accounting Principle, Adjustment | Revision of Prior Period, Change in Accounting Principle, AdjustmentRetained Earnings | Revision of Prior Period, Change in Accounting Principle, AdjustmentAccumulated Other Comprehensive Income (Loss) |
Beginning Balance at Oct. 31, 2017 | $ 1,155,493 | $ 12,253 | $ 412,785 | $ 2,164,597 | $ (134,435) | $ (1,299,707) | $ 18,846 | $ (18,846) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Shares issued under company stock and employee benefit plans | 18,811 | 12,220 | 6,591 | ||||||
Stock-based compensation | 21,550 | 21,550 | |||||||
Purchase of treasury shares, value | (24,012) | (24,012) | |||||||
Dividends declared | (72,443) | (72,443) | |||||||
Net income | 377,375 | 377,375 | |||||||
Other Comprehensive Income (Loss): | |||||||||
Foreign currency translation adjustments | (28,619) | (28,619) | |||||||
Defined benefit pension and post-retirement plans adjustment | 2,586 | 2,586 | |||||||
Ending Balance at Oct. 31, 2018 | 1,450,741 | 12,253 | 446,555 | 2,488,375 | (179,314) | (1,317,128) | $ 4,329 | 4,329 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Shares issued under company stock and employee benefit plans | 26,020 | 18,475 | 7,545 | ||||||
Stock-based compensation | 18,086 | 18,086 | |||||||
Purchase of treasury shares, value | (120,510) | (120,510) | |||||||
Dividends declared | (82,145) | (82,145) | |||||||
Net income | 337,091 | 337,091 | |||||||
Other Comprehensive Income (Loss): | |||||||||
Foreign currency translation adjustments | 3,710 | 3,710 | |||||||
Defined benefit pension and post-retirement plans adjustment | (56,277) | (56,277) | |||||||
Ending Balance at Oct. 31, 2019 | 1,581,045 | 12,253 | 483,116 | 2,747,650 | (231,881) | (1,430,093) | $ (104) | $ (104) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Shares issued under company stock and employee benefit plans | 50,853 | 38,712 | 12,141 | ||||||
Stock-based compensation | 12,856 | 12,856 | |||||||
Purchase of treasury shares, value | (52,614) | (52,614) | |||||||
Dividends declared | (88,347) | (88,347) | |||||||
Net income | 249,539 | 249,539 | |||||||
Other Comprehensive Income (Loss): | |||||||||
Foreign currency translation adjustments | 12,910 | 12,910 | |||||||
Defined benefit pension and post-retirement plans adjustment | (7,147) | (7,147) | |||||||
Ending Balance at Oct. 31, 2020 | $ 1,758,991 | $ 12,253 | $ 534,684 | $ 2,908,738 | $ (226,118) | $ (1,470,566) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares shares in Thousands | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | |||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member | us-gaap:AccountingStandardsUpdate201409Member | us-gaap:AccountingStandardsUpdate201802Member |
Purchase of treasury shares (in shares) | 384,498 | 998,004 | 180,735 |
Dividends declared (in dollars per share) | $ 1.53 | $ 1.43 | $ 1.25 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Cash flows from operating activities: | |||
Net income | $ 249,539 | $ 337,091 | $ 377,375 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 56,323 | 55,454 | 52,959 |
Amortization | 56,979 | 54,790 | 55,448 |
Provision for losses on receivables | 2,165 | 2,254 | 1,185 |
Deferred income taxes | (13,956) | (1,018) | (33,949) |
Non-cash stock compensation | 12,856 | 18,086 | 21,550 |
Loss on sale of property, plant and equipment | 484 | 953 | 830 |
Impairment loss on assets held for sale | 87,371 | 0 | 0 |
Other non-cash | 3,729 | (669) | 1,359 |
Changes in operating assets and liabilities: | |||
Receivables | 50,098 | (39,992) | 10,236 |
Inventories | 5,785 | (23,117) | 5,532 |
Prepaid expenses | 1,978 | (2,024) | (4,046) |
Accounts payable | (10,673) | 654 | (2,671) |
Income taxes payable | (7,816) | (3,832) | (2,718) |
Accrued liabilities | 6,360 | (14,027) | 2,134 |
Customer advance payments | (619) | 2,193 | 5,047 |
Other net | 1,818 | (3,903) | 14,367 |
Net cash provided by operating activities | 502,421 | 382,893 | 504,638 |
Cash flows from investing activities: | |||
Additions to property, plant and equipment | (50,535) | (64,244) | (89,790) |
Proceeds from sale of property, plant and equipment | 840 | 1,285 | 458 |
Acquisition of businesses, net of cash acquired | (142,414) | (12,486) | (50,586) |
Other | (2,000) | (844) | 0 |
Net cash used in investing activities | (194,109) | (76,289) | (139,918) |
Cash flows from financing activities: | |||
Proceeds from short-term borrowings | 0 | 0 | 996 |
Repayment of short-term borrowings | 0 | 0 | (1,006) |
Proceeds from long-term debt | 165,734 | 186,635 | 585,661 |
Repayment of long-term debt | (319,550) | (254,473) | (854,538) |
Repayment of capital lease obligations | (7,605) | ||
Repayment of capital lease obligations | (4,859) | (5,333) | |
Payment of debt issuance costs | 0 | (1,742) | (1,826) |
Issuance of common shares | 50,853 | 26,020 | 18,811 |
Purchase of treasury shares | (52,614) | (120,510) | (24,012) |
Dividends paid | (88,347) | (82,145) | (72,443) |
Net cash used in financing activities | (251,529) | (251,074) | (353,690) |
Effect of exchange rate changes on cash | 346 | (44) | (5,735) |
Increase in cash and cash equivalents | 57,129 | 55,486 | 5,295 |
Cash and cash equivalents at beginning of year | 151,164 | 95,678 | 90,383 |
Cash and cash equivalents at end of year | $ 208,293 | $ 151,164 | $ 95,678 |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Oct. 31, 2020 | |
Accounting Policies [Abstract] | |
Significant accounting policies | Significant accounting policies Consolidation — The consolidated financial statements include the accounts of Nordson Corporation and its majority-owned and controlled subsidiaries. Investments in affiliates and joint ventures in which our ownership is 50 percent or less or in which we do not have control but have the ability to exercise significant influence, are accounted for under the equity method. All significant intercompany accounts and transactions have been eliminated in consolidation. Use of estimates — The preparation of financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and notes. Actual amounts could differ from these estimates. Fiscal year — Our fiscal year is November 1 through October 31. Revenue recognition — A contract exists when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of the consideration is probable. Revenue is recognized when performance obligations under the terms of the contract with a customer are satisfied. Generally, our revenue results from short-term, fixed-price contracts and primarily is recognized as of a point in time when the product is shipped or at a later point when the control of the product transfers to the customer. Revenue for undelivered items is deferred and included within Accrued liabilities in our Consolidated Balance Sheets. Revenues deferred as of October 31, 2020 and 2019 were not material. However, for certain contracts related to the sale of customer-specific products within our Advanced Technology Solutions segment, there was a change in revenue recognition upon adoption of the new revenue standard. Previously, these contracts were recognized at the point in time when the shipping terms were satisfied. Under the new revenue standard, we now recognize revenue for these contracts over time as we satisfy performance obligations because of the continuous transfer of control to the customer. The continuous transfer of control to the customer occurs as we enhance assets that are customer controlled and we are contractually entitled to payment for work performed to date plus a reasonable margin. As control transfers over time for these products or services, revenue is recognized based on progress toward completion of the performance obligations. The selection method to measure progress towards completion requires judgment and is based on the nature of the products or services to be provided. We have elected to use the input method – costs incurred for these contracts because it best depicts the transfer of products or services to the customer based on incurring costs on the contract. Under this method, revenues are recorded proportionally as costs are incurred. Contract assets recognized are recorded in Prepaid expenses and other current assets and contract liabilities are recorded in Accrued liabilities in our Consolidated Balance Sheets and were not material at October 31, 2020 or 2019. Revenue recognized over time is not material to our overall Consolidated Financial Statements. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring products or services. Sales, value add, and other taxes we collect concurrently with revenue-producing activities are excluded from revenue. As a practical expedient, we may exclude the assessment of whether goods or services are performance obligations, if they are immaterial in the context of the contract, and combine these with other performance obligations. While payment terms and conditions vary by contract type, we have determined that our contracts generally do not include a significant financing component. We have elected to apply the practical expedient to treat all shipping and handling costs as fulfillment costs as a significant portion of these costs are incurred prior to transfer of control to the customer. We have also elected to apply the practical expedient to expense sales commissions as they are incurred as the amortization period resulting from capitalizing the costs is one year or less. These costs are recorded within Selling, general and administrative expenses in our Consolidated Statements of Income. We offer assurance type warranties on our products as well as separately sold warranty contracts. Revenue related to warranty contracts that are sold separately is recognized over the life of the warranty term. Certain arrangements may include installation, installation supervision, training, and spare parts, which tend to be completed in a short period of time, at an insignificant cost, and utilizing skills not unique to us, therefore, are typically regarded as inconsequential or not material. We disclose disaggregated revenues by operating segment and geography in accordance with the revenue standard and on the same basis used internally by the chief operating decision maker for evaluating performance of operating segments and for allocating resources. Refer to Note 16 for details on our operating segments. Shipping and handling costs — Amounts billed to customers for shipping and handling are recorded as revenue. Shipping and handling expenses are included in cost of sales. Advertising costs — Advertising costs are expensed as incurred and were $7,174, $10,479 and $12,451 in 2020, 2019 and 2018, respectively. Research and development — Investments in research and development are important to our long-term growth, enabling us to keep pace with changing customer and marketplace needs through the development of new products and new applications for existing products. We place strong emphasis on technology developments and improvements through internal engineering and research teams. Research and development costs are expensed as incurred and were $63,591, $60,018 and $58,806 in 2020, 2019 and 2018, respectively. As a percentage of sales, research and development expenses were 3.0, 2.7 and 2.6 percent in 2020, 2019 and 2018, respectively. Earnings per share — Basic earnings per share are computed based on the weighted-average number of common shares outstanding during each year, while diluted earnings per share are based on the weighted-average number of common shares and common share equivalents outstanding. Common share equivalents consist of shares issuable upon exercise of stock options computed using the treasury stock method, as well as restricted stock and deferred stock-based compensation. Options whose exercise price is higher than the average market price are excluded from the calculation of diluted earnings per share because the effect would be anti-dilutive. Options for 95 common shares were excluded from the diluted earnings per share calculation in 2020 and 176 options were excluded from the calculation of diluted earnings per share in 2019 because their effect would have been anti-dilutive. No options were excluded from the calculation of diluted earnings per share in 2018. Under the Amended and Restated 2012 Stock Incentive and Award Plan, executive officers and selected other key employees receive common share awards based on corporate performance measures over three-year performance periods. Awards for which performance measures have not been met were excluded from the calculation of diluted earnings per share. Cash — Highly liquid instruments with maturities of 90 days or less at date of purchase are considered to be cash equivalents. Allowance for doubtful accounts — An allowance for doubtful accounts is maintained for estimated losses resulting from the inability of customers to make required payments. The amount of the allowance is determined principally on the basis of past collection experience and known factors regarding specific customers. Accounts are written off against the allowance when it becomes evident that collection will not occur. Credit is extended to customers satisfying pre-defined credit criteria. We believe we have limited concentration of credit risk due to the diversity of our customer base. Inventories — Inventories are valued at the lower of cost or net realizable value. Cost was determined using the last-in, first-out (LIFO) method for 19 percent of consolidated inventories at October 31, 2020 and 19 percent of consolidated inventories at October 31, 2019. The first-in, first-out (FIFO) method is used for all other inventories. Consolidated inventories would have been $4,545 and $6,145 higher than reported at October 31, 2020 and 2019, respectively, had the FIFO method, which approximates current cost, been used for valuation of all inventories. Property, plant and equipment and depreciation — Property, plant and equipment are carried at cost. Additions and improvements that extend the lives of assets are capitalized, while expenditures for repairs and maintenance are expensed as incurred. Plant and equipment are depreciated for financial reporting purposes using the straight-line method over the estimated useful lives of the assets or, in the case of property under finance leases, over the terms of the leases. Leasehold improvements are depreciated over the shorter of the lease term or their useful lives. Useful lives are as follows: Land improvements 15-25 years Buildings 20-40 years Machinery and equipment 3-18 years Enterprise management systems 5-13 years Depreciation expense is included in cost of sales and selling and administrative expenses. Internal use software costs are expensed or capitalized depending on whether they are incurred in the preliminary project stage, application development stage or the post-implementation stage. Amounts capitalized are amortized over the estimated useful lives of the software beginning with the project’s completion. All re-engineering costs are expensed as incurred. Interest costs on significant capital projects are capitalized. No interest was capitalized in 2020, 2019 or 2018. Goodwill and intangible assets — Goodwill is the excess of cost of an acquired entity over the amounts assigned to assets acquired and liabilities assumed in a business combination. Goodwill relates to and is assigned directly to specific reporting units. Goodwill is not amortized but is subject to annual impairment testing. Our annual impairment testing is performed as of August 1. Testing is done more frequently if an event occurs or circumstances change that would indicate the fair value of a reporting unit is less than the carrying amount of those assets. Other amortizable intangible assets, which consist primarily of patent/technology costs, customer relationships, noncompete agreements, and trade names, are amortized over their useful lives on a straight-line basis. At October 31, 2020, the weighted-average useful lives for each major category of amortizable intangible assets were: Patent/technology costs 12 years Customer relationships 14 years Noncompete agreements 4 years Trade names 15 years Foreign currency translation — The financial statements of subsidiaries outside the United States are generally measured using the local currency as the functional currency. Assets and liabilities of these subsidiaries are translated at the rates of exchange at the balance sheet dates. Income and expense items are translated at average monthly rates of exchange. The resulting translation adjustments are included in accumulated other comprehensive income (loss), a separate component of shareholders’ equity. Generally, gains and losses from foreign currency transactions, including forward contracts, of these subsidiaries and the United States parent are included in net income. Gains and losses from intercompany foreign currency transactions of a long-term investment nature are included in accumulated other comprehensive income (loss). Accumulated other comprehensive loss — Accumulated other comprehensive loss at October 31, 2020 and 2019 consisted of: Cumulative Pension and Accumulated Balance at October 31, 2019 $ (53,332) $ (178,549) $ (231,881) Pension and postretirement plan changes, net of tax of $(2,404) — (7,147) (7,147) Currency translation losses 12,910 — 12,910 Balance at October 31, 2020 $ (40,422) $ (185,696) $ (226,118) Warranties — We offer warranties to our customers depending on the specific product and terms of the customer purchase agreement. A typical warranty program requires that we repair or replace defective products within a specified time period (generally one year) measured from the date of delivery or first use. We record an estimate for future warranty-related costs based on actual historical return rates. Based on analysis of return rates and other factors, the adequacy of our warranty provisions is adjusted as necessary. The liability for warranty costs is included in accrued liabilities in the Consolidated Balance Sheet. Following is a reconciliation of the product warranty liability for 2020 and 2019: 2020 2019 Balance at beginning of year $ 11,006 $ 12,195 Accruals for warranties 11,662 9,670 Warranty payments (12,330) (10,881) Currency adjustments 212 22 Balance at end of year $ 10,550 $ 11,006 |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 12 Months Ended |
Oct. 31, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Standards | Recently issued accounting standards New accounting guidance adopted: On November 1, 2019, we adopted Accounting Standards Update (ASU) 2016-02, Accounting Standards Codification (ASC) 842, “Leases.” This standard requires a lessee to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases with a lease term of more than 12 months. We elected to use the transition option, which allows entities to initially apply the new standard at the adoption date and recognize a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption without restating prior periods. We elected the practical expedient package related to the identification of leases in contracts, lease classification, and accounting for initial direct costs whereby prior conclusions do not have to be reassessed for leases that commenced before the effective date. As we have not reassessed such conclusions, we did not adopt the practical expedient to use hindsight to determine the likelihood of whether a lease will be extended or terminated, to separate non-lease components within our lease portfolios, or whether a purchase option will be exercised. There was not a material cumulative-effect adjustment to our beginning retained earnings for the adoption of this standard. Upon adoption, we recognized operating right-of-use assets and lease liabilities in our Consolidated Balance Sheet of $130,538 and $134,853 as of November 1, 2019, respectively, and operating right-of-use assets and lease liabilities were $122,125 and $126,235 as of October 31, 2020, respectively. Adoption of the new standard did not have a material impact on our Consolidated Statements of Income and Cash Flows. Refer to Note 11 for further discussion of leases. In June 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326),” which changes the impairment model for most financial instruments. Prior guidance required the recognition of credit losses based on an incurred loss impairment methodology that reflects losses once the losses are probable. The new standard requires the use of a current expected credit loss model to immediately recognize an estimate of credit losses that are expected to occur over the life of the financial instruments that are in the scope of this update, including trade receivables. The standard does not prescribe a specific method to make an estimate, so the application requires judgment and should consider historical information, current information, and reasonable and supportable forecasts, and includes estimates of prepayment. We adopted the new standard on November 1, 2020 with no material impact to the Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-15, “Intangibles – Goodwill and Other Internal-Use Software (Subtopic 350-40),” a new standard which makes a number of changes meant to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement (hosting arrangement), by providing guidance in determining when the arrangement includes a software license. We adopted the new standard on November 1, 2020 with no material impact to the Consolidated Financial Statements. In August 2018, the FASB issued a new standard which removes, modifies, and adds certain disclosure requirements on fair value measurements. The guidance removes disclosure requirements pertaining to the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels, and the valuation processes for Level 3 fair value measurements. For investments in certain entities that calculate net asset value, an entity is required to disclose the timing of liquidation of an investee’s assets and the date when restrictions from redemption might lapse only if the investee has communicated the timing to the entity or announced the timing publicly. In addition, the amendment clarifies that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date. The guidance adds disclosure requirements for changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period as well as the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. We adopted the new standard on November 1, 2020 with no material impact to the Consolidated Financial Statements. New accounting guidance issued and not yet adopted: In August 2018, the FASB issued a new standard which addresses defined benefit plans. The amendments modify the following disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans: the amounts in accumulated other comprehensive income expected to be recognized as components of net period benefit cost over the next fiscal year, amount and timing of plan assets expected to be returned to the employer, related party disclosure about the amount of future annual benefits covered by insurance and annuity contracts and significant transactions between the employer or related parties and the plan, and the effects of a 1.00 percent point change in assumed health care cost trend rates on the (a) aggregate of the service and interest cost components of net periodic benefit costs and (b) benefit obligations for postretirement health care benefits are removed. A disclosure requirement was added for the explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. Additionally, the standard clarifies disclosure requirements surrounding the projected benefit obligation (PBO) and fair value of plan assets for plans with PBOs in excess of plan assets and the accumulated benefit obligation (ABO) and fair value of plan assets for plans with ABOs in excess of plan assets. The standard will be effective for us beginning November 1, 2021. Early adoption is permitted. We are currently assessing the impact this standard will have on our Consolidated Financial Statements. |
Acquisitions
Acquisitions | 12 Months Ended |
Oct. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Business acquisitions have been accounted for using the acquisition method, with the acquired assets and liabilities recorded at estimated fair value on the dates of acquisition. The cost in excess of the net assets of the business acquired is included in goodwill. Operating results since the respective dates of acquisitions are included in the Consolidated Statement of Income. 2020 acquisitions On September 1, 2020, we acquired 100 percent of the outstanding shares of vivaMOS Ltd. ("vivaMOS"), a developer and fabricator of high-end large-area complementary metal–oxide–semiconductor (CMOS) image sensors for a wide range of X-ray applications. We acquired vivaMOS for an aggregate purchase price of $17,154 net of cash and other closing adjustments of approximately $158, utilizing cash on hand. Based on the fair value of the assets acquired and the liabilities assumed, goodwill of $14,394 and identifiable intangible assets of $4,040 were recorded. The identifiable intangible assets consist primarily of $3,900 of technology (amortized over 10 years) and $140 of non-compete agreements (amortized over 3 years). Goodwill associated with this acquisition is not tax deductible. This acquisition is being reported in our Advanced Technology Solutions segment and the results of vivaMOS are not material to our Consolidated Financial Statements. As of October 31, 2020, the purchase price allocation remains preliminary as we complete our assessments of intangible assets and income taxes. On June 1, 2020, we acquired 100 percent of the outstanding shares of Fluortek, Inc. ("Fluortek"), a precision plastic extrusion manufacturer that provides custom dimensioned tubing to the medical device industry. We acquired Fluortek for an aggregate purchase price of $125,260, net of cash and other closing adjustments of approximately $515, utilizing cash on hand. Based on the fair value of the assets acquired and the liabilities assumed, property, plant and equipment and working capital – net of $19,843, goodwill of $76,047 and identifiable intangible assets of $29,370 were recorded. The identifiable intangible assets consist primarily of $19,700 of customer relationships (amortized over 12 years), $7,400 of technology (amortized over 10 years), $1,500 of tradenames (amortized over 10 years), and $770 of non-compete agreements (amortized over 5 years). Goodwill associated with this acquisition is tax deductible. This acquisition is being reported in our Advanced Technology Solutions segment and the results for Fluortek are not material to the our Consolidated Financial Statements. As of October 31, 2020, the purchase price allocation remains preliminary as we complete our assessment of income taxes. 2019 acquisition On July 1, 2019, we purchased certain assets of Optical Control GmbH & Co. KG (“Optical”), a Nuremberg, Germany designer and developer of high speed, fully automatic counting systems utilizing x-ray technology. This transaction was not material to our Consolidated Financial Statements. We recorded the acquisition of Optical based on the fair value of the assets acquired and the liabilities assumed. Goodwill associated with this acquisition is tax deductible. This acquisition is being reported in our Advanced Technology Solutions segment. 2018 acquisitions On October 17, 2018, we purchased 100 percent of the outstanding shares of Cladach Nua Teoranta (“Clada”), a Galway, Ireland designer and developer primarily focused on medical balloons and balloon catheters. Clada’s technologies are used in key applications such as angioplasty and the treatment of vascular disease. We acquired Clada for an aggregate purchase price of $5,236 which included an earn-out liability of $1,131. Based on the fair value of the assets acquired and the liabilities assumed, goodwill of $3,776 and identifiable intangible assets of $697 were recorded. Goodwill associated with this acquisition is not tax deductible. This acquisition is being reported in our Advanced Technology Solutions segment. |
Assets Held for Sale
Assets Held for Sale | 12 Months Ended |
Oct. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets Held for Sale | Assets Held for Sale In the fourth quarter of 2020, we committed to a plan to sell our screws and barrels product line within the Adhesives reporting unit under our Industrial Precision Solutions operating segment and determined that it met the criteria to be classified as held for sale. Therefore, these assets and liabilities have been presented as held for sale in the Consolidated Balance Sheet as of October 31, 2020. Assets and liabilities classified as held for sale are measured at the lower of carrying value or fair value less costs to sell. We entered into a letter of intent to sell the screws and barrels product line in October 2020. In December 2020, we entered into a definitive agreement with the buyer. Before measuring the fair value less costs to sell of the disposal group as a whole, we first reviewed individual assets and liabilities to determine if any fair value adjustments were required and concluded no individual asset impairments were required. Then, based on the definitive agreement entered into by us and the buyer, we determined the fair value of the disposal group to be equal to the selling price, less costs to sell. Based on this review, we recorded a non-cash, assets held for sale impairment charge of $87,371. The assets and liabilities of the screws and barrels product line classified as held for sale at October 31, 2020 were as follows: 2020 Receivables - net $ 14,327 Inventories - net 9,854 Prepaid expenses and other current assets 696 Property, plant and equipment - net 58,950 Other assets 23,159 Impairment on carrying value (87,371) Assets held for sale $ 19,615 Accounts payable $ 4,625 Accrued liabilities 3,352 Other liabilities 5,171 Liabilities held for sale $ 13,148 The pending transaction is subject to customary closing conditions and is expected to close no later than the third quarter of 2021. Excluding the non-cash, assets held for sale impairment charge of $87,371 recorded in the fourth quarter of 2020, the operating results of the screws and barrels product line were not material to our Consolidated Financial Statements for any period presented. |
Details of Consolidated Balance
Details of Consolidated Balance Sheet | 12 Months Ended |
Oct. 31, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Details of Consolidated Balance Sheet | Note 5 — Details of Consolidated Balance Sheet 2020 2019 Receivables: Accounts $ 445,360 $ 506,318 Notes 4,592 3,980 Other 30,966 30,268 480,918 540,566 Allowance for doubtful accounts (9,045) (9,801) $ 471,873 $ 530,765 Inventories: Raw materials and component parts $ 94,630 $ 102,044 Work-in-process 44,403 42,904 Finished goods 183,860 183,973 322,893 328,921 Obsolescence and other reserves (41,315) (39,377) LIFO reserve (4,545) (6,145) $ 277,033 $ 283,399 Property, plant and equipment: Land $ 8,816 $ 10,468 Land improvements 4,611 4,390 Buildings 253,621 256,195 Machinery and equipment 464,171 489,864 Enterprise management system 56,103 53,020 Construction-in-progress 29,897 34,944 Leased property under capitalized leases 32,590 29,528 849,809 878,409 Accumulated depreciation and amortization (491,191) (479,514) $ 358,618 $ 398,895 Accrued liabilities: Salaries and other compensation $ 52,260 $ 57,773 Pension and retirement 10,282 9,993 Taxes other than income taxes 13,346 8,606 Customer commissions 9,158 9,030 Other 82,837 76,253 $ 167,883 $ 161,655 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Oct. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and intangible assetsWe account for goodwill and other intangible assets in accordance with the provisions of ASC 350 and account for business combinations using the acquisition method of accounting and accordingly, the assets and liabilities of the entities acquired are recorded at their estimated fair values at the acquisition date. Goodwill is the excess of purchase price over the fair value of tangible and identifiable intangible net assets acquired in various business combinations. Goodwill is not amortized but is subject to annual impairment testing. Our annual impairment testing is performed as of August 1. Testing is done more frequently if an event occurs or circumstances change that would indicate the fair value of a reporting unit is less than the carrying amount of those assets. We assess the fair value of reporting units on a non-recurring basis using a quantitative analysis that uses a combination of the discounted cash flow method of the Income Approach and the guideline public company method of the Market Approach, and compare the result against the reporting unit’s carrying value of net assets. The implied fair value of our reporting units is determined based on significant unobservable inputs, as discussed below; accordingly, these inputs fall within Level 3 of the fair value hierarchy. The discounted cash flow method (Income Approach) uses assumptions for revenue growth, operating margin, and working capital turnover that are based on management’s strategic plans tempered by performance trends and reasonable expectations about those trends. Terminal value calculations employ a published formula known as the Gordon Growth Model Method that essentially captures the present value of perpetual cash flows beyond the last projected period assuming a constant Weighted Average Cost of Capital (WACC) methodology and growth rate. For each reporting unit, a sensitivity analysis is performed to vary the discount and terminal growth rates in order to provide a range of reasonableness for detecting impairment. Discount rates are developed using a WACC methodology. The WACC represents the blended average required rate of return for equity and debt capital based on observed market return data and company specific risk factors. In the application of the guideline public company method (Market Approach), fair value is determined using transactional evidence for similar publicly traded equity. The comparable company guideline group is determined based on relative similarities to each reporting unit since exact correlations are not available. An indication of fair value for each reporting unit is based on the placement of each reporting unit within a range of multiples determined for its comparable guideline company group. Valuation multiples are derived by dividing latest twelve-month performance for revenues and Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) into total invested capital, which is the sum of traded equity plus interest bearing debt less cash. These multiples are applied against the revenue and EBITDA of each reporting unit. While the implied indications of fair value using the guideline public company method yield meaningful results, the discounted cash flow method of the income approach includes management’s thoughtful projections and insights as to what the reporting units will accomplish in the near future. Accordingly, the reasonable, implied fair value of each reporting unit is a blend based on the consideration of both the Income and Market approaches. An impairment charge is recorded for the amount by which the carrying value of the reporting unit exceeds the fair value of the reporting unit, as calculated in the quantitative analysis described above. Based on our annual impairment tests in 2020, 2019 and 2018, the fair value of each reporting unit exceeded its carrying value, and accordingly we did not record any goodwill impairment charges in 2020, 2019 or 2018. Our reporting units include components of the Industrial Precision Solutions and the Advanced Technology Solutions segments. Changes in the carrying amount of goodwill during 2020 by operating segment: Industrial Precision Solutions Advanced Technology Solutions Total Balance at October 31, 2019 $ 411,461 $ 1,203,278 $ 1,614,739 Acquisitions — 90,441 90,441 Other (453) (453) Currency effect 4,854 3,773 8,627 Balance at October 31, 2020 $ 415,862 $ 1,297,492 $ 1,713,354 The Other activity above reflects an allocation of goodwill to the disposal group classified as held for sale. See Note 4, Assets Held for Sale. Changes in the carrying amount of goodwill during 2019 by operating segment: Industrial Precision Solutions Advanced Technology Solutions Total Balance at October 31, 2018 $ 413,049 $ 1,194,969 $ 1,608,018 Acquisition — 9,225 9,225 Currency effect (1,588) (916) (2,504) Balance at October 31, 2019 $ 411,461 $ 1,203,278 $ 1,614,739 Accumulated impairment losses, which were recorded in 2009, were $232,789 at October 31, 2020 and October 31, 2019. Of these losses, $229,173 related to the Advanced Technology Solutions segment and $3,616 related to the Industrial Precision Solutions segment. Information regarding intangible assets subject to amortization: October 31, 2020 Carrying Accumulated Net Book Customer relationships $ 483,568 $ 193,617 $ 289,951 Patent/technology costs 153,555 76,934 76,621 Trade name 74,240 34,693 39,547 Noncompete agreements 9,908 8,444 1,464 Other 1,403 1,400 3 Total $ 722,674 $ 315,088 $ 407,586 October 31, 2019 Carrying Accumulated Net Book Customer relationships $ 480,007 $ 173,996 $ 306,011 Patent/technology costs 154,735 71,663 83,072 Trade name 96,655 41,303 55,352 Noncompete agreements 11,540 10,406 1,134 Other 1,400 1,394 6 Total $ 744,337 $ 298,762 $ 445,575 Amortization expense for 2020, 2019 and 2018 was $56,979, $54,790 and $55,448 respectively. Estimated amortization expense for each of the five succeeding years: Year Amounts 2021 $ 50,576 2022 $ 46,685 2023 $ 45,697 2024 $ 40,815 2025 $ 39,115 |
Retirement, Pension and Other P
Retirement, Pension and Other Postretirement Plans | 12 Months Ended |
Oct. 31, 2020 | |
Retirement Benefits [Abstract] | |
Retirement, Pension and Other Postretirement Plans | Retirement, pension and other postretirement plans Retirement plans — We have funded contributory retirement plans covering certain employees. Our contributions are primarily determined by the terms of the plans, subject to the limitation that they shall not exceed the amounts deductible for income tax purposes. We also sponsor unfunded contributory supplemental retirement plans for certain employees. Generally, benefits under these plans vest gradually over a period of approximately three years from date of employment, and are based on the employee’s contribution. The expense applicable to retirement plans for 2020, 2019 and 2018 was approximately $20,265, $22,573 and $22,634, respectively. Pension plans — We have various pension plans covering a portion of our United States and international employees. Pension plan benefits are generally based on years of employment and, for salaried employees, the level of compensation. Actuarially determined amounts are contributed to United States plans to provide sufficient assets to meet future benefit payment requirements. We also sponsor an unfunded supplemental pension plan for certain employees. International subsidiaries fund their pension plans according to local requirements. A reconciliation of the benefit obligations, plan assets, accrued benefit cost and the amount recognized in financial statements for pension plans is as follows: United States International 2020 2019 2020 2019 Change in benefit obligation: Benefit obligation at beginning of year $ 551,997 $ 425,605 $ 97,990 $ 87,227 Service cost 20,635 14,587 2,099 1,933 Interest cost 15,824 18,304 1,025 1,670 Participant contributions — — 83 83 Plan amendments — — — 186 Settlements (4,992) — — (3,018) Foreign currency exchange rate change — — 2,814 106 Actuarial loss 47,788 107,662 2,729 11,852 Benefits paid (15,484) (14,161) (1,891) (2,049) Benefit obligation at end of year $ 615,768 $ 551,997 $ 104,849 $ 97,990 Change in plan assets: Beginning fair value of plan assets $ 448,931 $ 361,073 $ 39,640 $ 39,617 Actual return on plan assets 41,712 76,700 3,697 707 Company contributions 40,083 25,319 3,365 3,696 Participant contributions — — 83 83 Settlements (4,992) — — (3,018) Foreign currency exchange rate change — — 582 604 Benefits paid (15,484) (14,161) (1,891) (2,049) Ending fair value of plan assets $ 510,250 $ 448,931 $ 45,476 $ 39,640 Funded status at end of year $ (105,518) $ (103,066) $ (59,373) $ (58,350) Amounts recognized in financial statements: Noncurrent asset $ 3,162 $ 2,171 $ 3,321 $ 1,375 Accrued benefit liability (5,211) (6,435) (634) (21) Long-term pension obligations (103,469) (98,802) (62,060) (59,704) Total amount recognized in financial statements $ (105,518) $ (103,066) $ (59,373) $ (58,350) United States International 2020 2019 2020 2019 Amounts recognized in accumulated other comprehensive (gain) loss: Net actuarial loss $ 192,593 $ 178,390 $ 32,097 $ 33,826 Prior service credit (16) (100) (2,137) (2,342) Accumulated other comprehensive loss $ 192,577 $ 178,290 $ 29,960 $ 31,484 Amounts expected to be recognized during next fiscal year: Amortization of net actuarial loss $ 14,297 $ 13,591 $ 3,049 $ 2,945 Amortization of prior service credit (81) (84) (299) (288) Total $ 14,216 $ 13,507 $ 2,750 $ 2,657 The following table summarizes the changes in accumulated other comprehensive loss: United States International 2020 2019 2020 2019 Balance at beginning of year $ 178,290 $ 130,627 $ 31,484 $ 20,460 Net loss arising during the year 30,743 54,304 305 12,737 Prior service cost arising during the year — — — 186 Net gain recognized during the year (14,032) (6,702) (2,972) (1,696) Prior service credit recognized during the year 84 61 290 303 Settlement loss (2,508) — — (470) Exchange rate effect during the year — — 853 (36) Balance at end of year $ 192,577 $ 178,290 $ 29,960 $ 31,484 Information regarding the accumulated benefit obligation is as follows: United States International 2020 2019 2020 2019 For all plans: Accumulated benefit obligation $ 571,036 $ 513,861 $ 96,252 $ 83,439 For plans with benefit obligations in excess of plan assets: Projected benefit obligation 553,403 491,816 92,775 86,534 Accumulated benefit obligation 508,671 453,681 85,189 73,293 Fair value of plan assets 444,723 386,580 30,797 27,769 Net periodic pension costs include the following components: United States International 2020 2019 2018 2020 2019 2018 Service cost $ 20,635 $ 14,587 $ 13,052 $ 2,099 $ 1,933 $ 2,048 Interest cost 15,824 18,304 14,797 1,025 1,670 1,656 Expected return on plan assets (24,667) (23,341) (21,964) (1,273) (1,592) (1,512) Amortization of prior service cost (credit) (84) (61) (22) (290) (303) (316) Amortization of net actuarial loss 14,032 6,702 9,479 2,972 1,696 2,115 Settlement loss 2,508 — — — 470 252 Total benefit cost $ 28,248 $ 16,191 $ 15,342 $ 4,533 $ 3,874 $ 4,243 Net periodic pension cost for 2020, 2019 and 2018 included a settlement loss of $2,508, $470 and $252, respectively, due to lump sum retirement payments. The components of net periodic pension cost other than service cost are included in Other – net in our Consolidated Statements of Income. The weighted average assumptions used in the valuation of pension benefits were as follows: United States International 2020 2019 2018 2020 2019 2018 Assumptions used to determine benefit obligations at October 31: Discount rate 2.85 % 3.25 % 4.53 % 1.01 % 1.26 % 2.14 % Rate of compensation increase 4.00 4.00 3.90 2.69 3.12 3.12 Assumptions used to determine net benefit costs for the years ended October 31: Discount rate - benefit obligation 3.25 4.53 3.80 1.26 2.14 2.07 Discount rate - service cost 3.56 4.70 4.01 1.12 1.82 1.76 Discount rate - interest cost 2.78 4.15 3.31 1.05 1.90 1.83 Expected return on plan assets 5.75 6.00 6.00 3.22 3.96 3.91 Rate of compensation increase 4.00 3.90 3.61 3.12 3.12 3.13 The amortization of prior service cost is determined using a straight-line amortization of the cost over the average remaining service period of employees expected to receive benefits under the plans. The discount rate reflects the current rate at which pension liabilities could be effectively settled at the end of the year. The discount rate used considers a yield derived from matching projected pension payments with maturities of a portfolio of available bonds that receive the highest rating given from a recognized investments ratings agency. The changes in the discount rates in 2020, 2019, and 2018 are due to changes in yields for these types of investments as a result of the economic environment. In determining the expected return on plan assets using the calculated value of plan assets, we consider both historical performance and an estimate of future long-term rates of return on assets similar to those in our plans. We consult with and consider the opinions of financial and other professionals in developing appropriate return assumptions. The rate of compensation increase is based on management’s estimates using historical experience and expected increases in rates. Net actuarial gains or losses are amortized to expense on a plan-by-plan basis when they exceed the accounting corridor, which is set at 10 percent of the greater of the plan assets or benefit obligations. Gains or losses outside of the corridor are subject to amortization over an average employee future service period that differs by plan. If substantially all of the plan’s participants are no longer actively accruing benefits, the average life expectancy is used. The allocation of pension plan assets as of October 31, 2020 and 2019 is as follows: United States International 2020 2019 2020 2019 Asset Category Equity securities 11 % 11 % — % — % Debt securities 49 53 — — Insurance contracts — — 54 54 Pooled investment funds 39 35 44 45 Other 1 1 2 1 Total 100 % 100 % 100 % 100 % Our investment objective for defined benefit plan assets is to meet the plans’ benefit obligations, while minimizing the potential for future required plan contributions. Our United States plans comprise 92 percent of the Company's worldwide pension assets. In general, the investment strategies focus on asset class diversification, liquidity to meet benefit payments and an appropriate balance of long-term investment return and risk. Target ranges for asset allocations are determined by dynamically matching the actuarial projections of the plans’ future liabilities and benefit payments with expected long-term rates of return on the assets, taking into account investment return volatility and correlations across asset classes. For 2020, the target in “return-seeking assets” is 30 percent and 70 percent in fixed income assets. Plan assets are diversified across several investment managers and are invested in liquid funds that are selected to track broad market indices. Investment risk is carefully controlled with plan assets rebalanced to target allocations on a periodic basis and continual monitoring of investment managers’ performance relative to the investment guidelines established with each investment manager. Our international plans comprise 8 percent of the Company's worldwide pension assets. Asset allocations are developed on a country-specific basis. Our investment strategy is to cover pension obligations with insurance contracts or to employ independent managers to invest the assets. The fair values of our pension plan assets at October 31, 2020 by asset category are in the table below: United States International Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Cash $ 1,331 $ 1,331 $ — $ — $ 759 $ 759 $ — $ — Money market funds 5,059 5,059 — — — — — — Equity securities: Basic materials 1,750 1,750 — — — — — — Consumer goods 5,024 5,024 — — — — — — Financial 4,745 4,745 — — — — — — Healthcare 4,518 4,518 — — — — — — Industrial goods 3,588 3,588 — — — — — — Technology 5,706 5,706 — — — — — — Utilities 685 685 — — — — — — Mutual funds 24,266 24,266 — — — — — — Fixed income securities: U.S. Government 71,855 8,267 63,588 — — — — — Corporate 173,046 — 173,046 — — — — — Other 6,673 — 6,673 — — — — — Other types of investments: Insurance contracts — — — — 24,496 — — 24,496 Other 845 845 — — — — — — Total investments in the fair value hierarchy $ 309,091 $ 65,784 $ 243,307 $ — $ 25,255 $ 759 $ — $ 24,496 Investments measured at Net Asset Value: Real estate collective funds 38,996 — Pooled investment funds 162,163 20,221 Total Investments at Fair Value $ 510,250 $ 45,476 The fair values of our pension plan assets at October 31, 2019 by asset category are in the table below: United States International Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Cash $ 1,208 $ 1,208 $ — $ — $ 441 $ 441 $ — $ — Money market funds 5,566 5,566 — — — — — — Equity securities: Basic materials 2,318 2,318 — — — — — — Consumer goods 4,412 4,412 — — — — — — Financial 6,120 6,120 — — — — — — Healthcare 4,460 4,460 — — — — — — Industrial goods 3,152 3,152 — — — — — — Technology 5,064 5,064 — — — — — — Utilities 937 937 — — — — — — Mutual funds 19,674 19,674 — — — — — — Fixed income securities: U.S. Government 83,025 13,094 69,931 — — — — — Corporate 151,607 — 151,607 — — — — — Other 5,051 — 5,051 — — — — — Other types of investments: Insurance contracts — — — — 21,245 — — 21,245 Other 1,101 1,101 — — — — — — Total investments in the fair value hierarchy $ 293,695 $ 67,106 $ 226,589 $ — $ 21,686 $ 441 $ — $ 21,245 Investments measured at Net Asset Value: Real estate collective funds 33,917 — Pooled investment funds 121,319 17,954 Total Investments at Fair Value $ 448,931 $ 39,640 These investment funds did not own a significant number of shares of Nordson Corporation common stock for any year presented. The inputs and methodology used to measure fair value of plan assets are consistent with those described in Note 12. Following are the valuation methodologies used to measure these assets: • Money market funds - Money market funds are public investment vehicles that are valued with a net asset value of one dollar. This is a quoted price in an active market and is classified as Level 1. • Equity securities - Common stocks and mutual funds are valued at the closing price reported on the active market on which the individual securities are traded and are classified as Level 1. • Fixed income securities - U.S. Treasury bills reflect the closing price on the active market in which the securities are traded and are classified as Level 1. Securities of U.S. agencies are valued using bid evaluations and are classified as Level 2. Corporate fixed income securities are valued using evaluated prices, such as dealer quotes, bids and offers and are therefore classified as Level 2. • Insurance contracts - Insurance contracts are investments with various insurance companies. The contract value represents the best estimate of fair value. These contracts do not hold any specific assets. These investments are classified as Level 3. • Real estate collective funds – These funds are valued using the net asset value of the underlying properties. Net asset value is calculated using a combination of key inputs, such as revenue and expense growth rates, terminal capitalization rates and discount rates. • Pooled investment funds - These are public investment vehicles valued using the net asset value. The net asset value is based on the value of the assets owned by the plan, less liabilities. These investments are not quoted on an active exchange. The following tables present an analysis of changes during the years ended October 31, 2020 and 2019 in Level 3 plan assets, by plan asset class, for U.S. and international pension plans using significant unobservable inputs to measure fair value: Fair Value Measurements Insurance Total Beginning balance at October 31, 2019 $ 21,245 $ 21,245 Actual return on plan assets: Assets held, end of year 1,739 1,739 Assets sold during the period — — Purchases 2,462 2,462 Sales (1,495) (1,495) Foreign currency translation 545 545 Ending balance at October 31, 2020 $ 24,496 $ 24,496 Fair Value Measurements Insurance Total Beginning balance at October 31, 2018 $ 21,645 $ 21,645 Actual return on plan assets: Assets held, end of year 913 913 Assets sold during the period — — Purchases 2,431 2,431 Sales (4,102) (4,102) Foreign currency translation 358 358 Ending balance at October 31, 2019 $ 21,245 $ 21,245 Contributions to pension plans in 2021 are estimated to be approximately $43,721. Retiree pension benefit payments, which reflect expected future service, are anticipated to be paid as follows: Year United States International 2021 $ 23,045 $ 3,488 2022 20,262 3,042 2023 21,686 3,069 2024 23,213 3,527 2025 25,209 3,721 2026-2030 150,280 19,949 Other postretirement plans - We sponsor an unfunded postretirement health care benefit plan covering certain of our United States employees. Employees hired after January 1, 2002, are not eligible to participate in this plan. For eligible retirees under the age of 65 who enroll in the plan, the plan is contributory in nature, with retiree contributions in the form of premiums that are adjusted annually. For eligible retirees age 65 and older who enroll in the plan, the plan delivers a benefit in the form of a Health Reimbursement Account (HRA), which retirees use for eligible reimbursable expenses, including premiums paid for purchase of a Medicare supplement plan or other out-of-pocket medical expenses such as deductibles or co-pays. A reconciliation of the benefit obligations, accrued benefit cost and the amount recognized in financial statements for other postretirement plans is as follows: United States International 2020 2019 2020 2019 Change in benefit obligation: Benefit obligation at beginning of year $ 88,660 $ 72,010 $ 454 $ 512 Service cost 666 545 15 16 Interest cost 2,345 2,984 13 19 Participant contributions 611 684 — — Foreign currency exchange rate change — — (5) (1) Actuarial (gain) loss (2,024) 15,101 (26) (86) Benefits paid (2,613) (2,664) (6) (6) Benefit obligation at end of year $ 87,645 $ 88,660 $ 445 $ 454 Change in plan assets: Beginning fair value of plan assets $ — $ — $ — $ — Company contributions 2,002 1,980 6 6 Participant contributions 611 684 — — Benefits paid (2,613) (2,664) (6) (6) Ending fair value of plan assets $ — $ — $ — $ — Funded status at end of year $ (87,645) $ (88,660) $ (445) $ (454) Amounts recognized in financial statements: Accrued benefit liability $ (2,835) $ (2,740) $ (6) $ (6) Long-term postretirement obligations (84,810) (85,920) (439) (448) Total amount recognized in financial statements $ (87,645) $ (88,660) $ (445) $ (454) United States International 2020 2019 2020 2019 Amounts recognized in accumulated other comprehensive (gain) loss: Net actuarial (gain) loss $ 25,614 $ 28,992 $ (466) $ (482) Prior service credit — (16) — — Accumulated other comprehensive (gain) loss $ 25,614 $ 28,976 $ (466) $ (482) Amounts expected to be recognized during next fiscal year: Amortization of net actuarial (gain) loss $ 1,388 $ 1,674 $ (39) $ (37) Amortization of prior service credit — (16) — — Total $ 1,388 $ 1,658 $ (39) $ (37) The following table summarizes the changes in accumulated other comprehensive (gain) loss: United States International 2020 2019 2020 2019 Balance at beginning of year $ 28,976 $ 14,483 $ (482) $ (423) Net (gain) loss arising during the year (2,024) 15,101 (26) (86) Net gain (loss) recognized during the year (1,355) (634) 36 28 Prior service credit recognized during the year 17 26 — — Exchange rate effect during the year — — 6 (1) Balance at end of year $ 25,614 $ 28,976 $ (466) $ (482) Net postretirement benefit costs include the following components: United States International 2020 2019 2018 2020 2019 2018 Service cost $ 666 $ 545 $ 709 $ 15 $ 16 $ 20 Interest cost 2,345 2,984 2,557 13 19 20 Amortization of prior service credit (17) (26) (99) — — — Amortization of net actuarial (gain) loss 1,355 634 1,079 (36) (28) (20) Total benefit cost (credit) $ 4,349 $ 4,137 $ 4,246 $ (8) $ 7 $ 20 The weighted average assumptions used in the valuation of postretirement benefits were as follows: United States International 2020 2019 2018 2020 2019 2018 Assumptions used to determine benefit obligations at October 31: Discount rate 2.84 % 3.27 % 4.56 % 2.94 % 3.03 % 3.88 % Health care cost trend rate 3.40 3.62 3.75 4.22 4.00 6.35 Rate to which health care cost trend rate is assumed to incline/decline (ultimate trend rate) 3.17 3.24 3.27 4.05 4.05 3.50 Year the rate reaches the ultimate trend rate 2026 2026 2026 2040 2040 2037 Assumption used to determine net benefit costs for the years ended October 31: Discount rate benefit obligation 3.27 % 4.56 % 3.86 % 3.03 % 3.88 % 3.52 % Discount rate service cost 3.61 4.77 4.11 3.05 3.90 3.54 Discount rate interest cost 2.79 4.18 3.39 2.88 3.80 3.40 The weighted average health care trend rates reflect expected increases in the Company’s portion of the obligation. Net actuarial gains or losses are amortized to expense on a plan-by-plan basis when they exceed the accounting corridor, which is set at 10 percent of the greater of the plan assets or benefit obligations. Gains or losses outside of the corridor are subject to amortization over an average employee future service period that differs by plan. If substantially all of the plan’s participants are no longer actively accruing benefits, the average life expectancy is used. A one-percentage point change in the assumed health care cost trend rate would have the following effects. Bracketed numbers represent decreases in expense and obligation amounts. United States International 1% Point 1% Point 1% Point 1% Point Health care trend rate: Effect on total net postretirement benefit cost components in 2020 $ 431 $ (345) $ 7 $ (5) Effect on postretirement obligation as of October 31, 2020 $ 11,019 $ (9,100) $ 103 $ (80) Contributions to postretirement plans in 2021 are estimated to be approximately $2,800. Retiree postretirement benefit payments are anticipated to be paid as follows: Year United States International 2021 $ 2,835 $ 6 2022 3,047 6 2023 3,238 6 2024 3,444 6 2025 3,623 6 2026-2030 20,133 46 |
Income Taxes
Income Taxes | 12 Months Ended |
Oct. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income taxes Income tax expense includes the following: 2020 2019 2018 Current: U.S. federal $ 19,265 $ 40,012 $ 39,837 State and local 984 3,429 1,734 Foreign 45,657 51,590 63,522 Total current 65,906 95,031 105,093 Deferred: U.S. federal (10,143) 1,470 (32,829) State and local (1,023) 633 891 Foreign (2,790) (3,121) (2,011) Total deferred (13,956) (1,018) (33,949) $ 51,950 $ 94,013 $ 71,144 Earnings before income taxes of domestic operations, which are calculated after intercompany profit eliminations, were $120,054, $222,435 and $192,643 in 2020, 2019 and 2018, respectively. Our income tax provision for 2020 included a tax benefit of $15,661 due to our share-based payment transactions. Income before taxes in 2020 included a non-cash, assets held for sale impairment charge of $87,371 related to our commitment to sell our screws and barrels product line within the Adhesives reporting unit under our Industrial Precision Solutions segment and the tax benefit of the impairment was $15,254. A portion of the impairment charge did not have related tax benefits. Our income tax provision for 2019 included a provisional tax benefit of $4,866 to reflect the adjustment to the provisional amounts recognized in 2018 due to changes in interpretations and assumptions and the finalization of estimates related to the U.S. Tax Cuts and Jobs Act ("the Act"). We are paying the transition tax in installments over the eight-year period allowable under the Act. The remaining transition tax is included in other long-term liabilities in the Consolidated Balance Sheet at October 31, 2020. Other provisions of the Act became effective for us in 2019. The Foreign-Derived Intangible Income provision generates a deduction against our U.S. taxable income for U.S. earnings derived offshore that utilize intangibles held in the U.S. Conversely, the Global Intangible Low-Taxed Income (“GILTI”) provision requires us to subject to U.S. taxation a portion of our foreign subsidiary earnings that exceed an allowable return. We elected to treat any GILTI inclusion as a period expense in the year incurred. A reconciliation of the U.S. statutory federal rate to the worldwide consolidated effective tax rate follows: 2020 2019 2018 Statutory federal income tax rate 21.00 % 21.00 % 23.34 % Transition tax — 1.46 6.16 Tax rate change deferred tax remeasurement — — (10.94) Share-based and other compensation (4.15) (0.55) (1.45) Domestic production deduction — — (0.82) Foreign tax rate variances, net of foreign tax credits 1.51 1.16 (0.46) State and local taxes, net of federal income tax benefit (0.01) 0.74 0.45 Amounts related to prior years (0.04) (0.55) (0.21) Foreign-Derived Intangible Income Deduction (0.95) (1.51) — Global Intangible Low-Taxed Income net of foreign tax credits 0.97 0.85 — Other – net (1.10) (0.79) (0.21) Effective tax rate 17.23 % 21.81 % 15.86 % Earnings before income taxes of international operations, which are calculated before intercompany profit elimination entries, were $181,435, $208,669 and $255,877 in 2020, 2019 and 2018, respectively. Deferred income taxes are not provided on undistributed earnings of international subsidiaries that are intended to be permanently invested in their operations. These undistributed earnings represent the post-income tax earnings under U.S. GAAP not adjusted for previously taxed income which aggregated approximately $1,045,389 and $1,101,736 at October 31, 2020 and 2019, respectively. Should these earnings be distributed, applicable foreign tax credits, distributions of previously taxed income, and utilization of other attributes would substantially offset taxes due upon the distribution. It is not practical to estimate the amount of additional taxes that might be payable on these basis differences because of the multiple methods by which these differences could reverse and the impact of withholding, U.S. state and local taxes and currency translation considerations. At October 31, 2020 and 2019, total unrecognized tax benefits were $6,717 and $2,909, respectively. The amounts that, if recognized, would impact the effective tax rate were $5,998 and $2,429 at October 31, 2020 and 2019, respectively. During 2020, unrecognized tax benefits related primarily to domestic positions and, as recognized, a substantial portion of the gross unrecognized tax benefits were offset against assets recorded in the Consolidated Balance Sheet. A reconciliation of the beginning and ending amount of unrecognized tax benefits for 2020, 2019 and 2018 is as follows: 2020 2019 2018 Balance at beginning of year $ 2,909 $ 2,891 $ 3,781 Additions based on tax positions related to the current year 370 370 310 Additions for tax positions of prior years 4,068 547 40 Reductions for tax positions of prior years — — (120) Settlements (137) — — Lapse of statute of limitations (493) (899) (1,120) Balance at end of year $ 6,717 $ 2,909 $ 2,891 At October 31, 2020 and 2019, we had accrued interest and penalty expense related to unrecognized tax benefits of $2,179 and $593, respectively. We include interest accrued related to unrecognized tax benefits in interest expense. Penalties, if incurred, would be recognized as other income (expense). We are subject to United States Federal income tax as well as income taxes in numerous state and foreign jurisdictions. We are subject to examination in the U.S. by the Internal Revenue Service (IRS) for the 2017 through 2020 tax years; tax years prior to the 2017 year are closed to further examination by the IRS. Generally, major state and foreign jurisdiction tax years remain open to examination for tax years after 2014. Within the next twelve months, it is reasonably possible that certain statute of limitations periods would expire, which could result in a minimal decrease in our unrecognized tax benefits. Significant components of deferred tax assets and liabilities are as follows: 2020 2019 Deferred tax assets: Employee benefits $ 70,838 $ 73,025 Other accruals not currently deductible for taxes 16,207 16,294 Tax credit and loss carryforwards 20,268 18,074 Inventory adjustments 8,757 5,269 Total deferred tax assets 116,070 112,662 Valuation allowance (22,233) (15,301) Total deferred tax assets 93,837 97,361 Deferred tax liabilities: Depreciation and amortization 150,591 169,009 Other - net 410 655 Total deferred tax liabilities 151,001 169,664 Net deferred tax liabilities $ (57,164) $ (72,303) At October 31, 2020, we had $8,565 of tax credit carryforwards, $921 of which expires in 2028 and $7,644 of which has an indefinite carryforward period. We also had $58,559 state, $24,394 foreign operating loss carryforwards, and a $24,227 capital loss carryforward, of which $88,613 will expire in 2021 through 2040, and $18,567 of which has an indefinite carryforward period. The net change in the valuation allowance was an increase of $6,932 in 2020 and of $439 in 2019. The valuation allowance of $22,233 at October 31, 2020, related primarily to tax credits and loss carryforwards that may expire before being realized. We continue to assess the need for valuation allowances against deferred tax assets based on determinations of whether it is more likely than not that deferred tax benefits will be realized. |
Bank Lines of Credit
Bank Lines of Credit | 12 Months Ended |
Oct. 31, 2020 | |
Debt Disclosure [Abstract] | |
Bank Lines of Credit | Bank lines of credit Bank lines of credit are summarized as follows: 2020 2019 Maximum borrowings available under bank lines of credit (all foreign banks) $ 74,766 $ 79,930 Unused bank lines of credit $ 74,766 $ 79,930 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Oct. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-term debt A summary of long-term debt is as follows: 2020 2019 Senior notes, due 2021-2025 $ 109,900 $ 140,800 Senior notes, due 2021-2027 85,714 92,857 Senior notes, due 2023-2030 350,000 350,000 Term loan, due 2022-2024 255,000 505,000 Euro loan, due 2023 308,642 128,219 Private shelf facility — 30,556 Development loans — 951 1,109,256 1,248,383 Less current maturities 38,043 168,738 Less unamortized debt issuance costs 3,261 4,241 Long-term maturities $ 1,067,952 $ 1,075,404 Revolving credit agreement — In April 2019, we entered into a $850,000 unsecured multi-currency credit facility with a group of banks, which amended, restated and extended our existing syndicated revolving credit agreement that was scheduled to expire in February 2020. This facility has a five-year term and includes a $75,000 subfacility for swing-line loans. It expires in April 2024. At October 31, 2020 and October 31, 2019, we had no balances outstanding under this facility. We were in compliance with all covenants at October 31, 2020, and the amount we could borrow under the facility would not have been limited by any debt covenants. Senior notes, due 2021-2025 — These unsecured fixed-rate notes entered into in 2012 with a group of insurance companies had a remaining weighted-average life of 2.33 years. The weighted-average interest rate at October 31, 2020 was 3.07 percent. Senior notes, due 2021-2027 — These unsecured fixed-rate notes entered into in 2015 with a group of insurance companies had a remaining weighted-average life of 3.91 years. The weighted-average interest rate at October 31, 2020 was 3.06 percent. Senior notes, due 2023-2030 — These unsecured fixed-rate notes entered in 2019 with a group of insurance companies had a remaining weighted-average life of 5.04 years. The weighted-average interest rate at October 31, 2020 was 3.90 percent. Term loan, due 2022-2024 — In April 2019, we amended, restated and extended the term of our existing $605,000 term loan facility with a group of banks. The interest rate is variable based upon the LIBOR rate. At October 31, 2020, $255,000 was outstanding under this facility. The Term Loan Agreement provides for the following term loans due in two tranches: $50,000 is due in September 2022, and $205,000 is due in March 2024. The weighted average interest rate for borrowings under this agreement was 0.83 percent at October 31, 2020. We were in compliance with all covenants at October 31, 2020 Euro loan, due 2023 — In March 2020 we amended, restated and extended the term of our existing term loan facility with Bank of America Merrill Lynch International Limited. The interest rate is variable based on the EURIBOR rate. The Term Loan Agreement provides for the following term loans due in two tranches: €115,000 is due in March 2023 and an additional €150,000 that was drawn down in March 2020 is due in March 2023. The weighted average interest rate at October 31, 2020 was 0.71 percent. We were in compliance with all covenants at October 31, 2020. Private shelf facility — In October 2020, we amended, restated and extended the term of the unsecured $200,000 private shelf facility agreement with New York Life Investment Management LLC. The facility has a three-year term and expires in October 2023. The interest rate on each borrowing is fixed based upon the market rate at the borrowing date or is variable based upon the LIBOR rate. At October 31, 2020, there was no outstanding balance under this facility. Annual maturities — The annual maturities of long-term debt for the five years subsequent to October 31, 2020, are as follows: $38,043 in 2021; $80,642 in 2022; $439,285 in 2023; $315,643 in 2024 and $85,643 in 2025. |
Leases
Leases | 12 Months Ended |
Oct. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases We review new contracts to determine if the contracts include a lease. To the extent a lease agreement includes an extension option that is reasonably certain to be exercised, we have recognized those amounts as part of the right-of-use assets and lease liabilities. We combine lease and non-lease components, such as common area maintenance, in the calculation of the lease assets and related liabilities. As most lease agreements do not provide an implicit rate, we use an incremental borrowing rate (IBR) based on information available at the lease commencement date in determining the present value of lease payments and to help classify the lease as operating or financing. We calculate the IBR based on a bond yield curve which considers secured borrowing rates based on our credit rating and current economic environment, as well as other publicly available data. We lease certain manufacturing facilities, warehouse space, machinery and equipment, and vehicles. We often have options to renew lease terms for buildings and other assets. We evaluate renewal and termination options at the lease commencement date to determine if we are reasonably certain to exercise the option on the basis of economic factors. Leases with an initial term of 12 months or less (short-term leases) are not recorded on the Consolidated Balance Sheet. Lease expense for operating leases is recognized on a straight-line basis over the lease term, with variable lease payments recognized in the period those payments occur. Variable payments for leases primarily relate to future rates or amounts, miles, or other quantifiable usage factors which are not determinable at the time the lease agreement commences. Finance lease assets are recorded in Property, plant, and equipment – net on the Consolidated Balance Sheet with related amortization recorded in depreciation expense on the Consolidated Statement of Cash Flows. As of October 31, 2020, we had no material leases that had yet to commence. Additional lease information is summarized below for the twelve months ended October 31, 2020: October 31, 2020 Finance Leases Operating Leases Amortization of right of use assets $ 7,087 $ — Interest 350 — Lease cost (1) 7,437 21,489 Short-term and variable lease cost (1) 1,478 3,011 Total lease cost $ 8,915 $ 24,500 (1) Lease costs are recorded in both Cost of sales and Selling and administrative expenses on the Consolidated Statements of Income. Supplemental cash flow information is summarized below for the twelve months ended October 31, 2020: Cash outflows for leases $ 7,605 $ 20,918 Weighted average remaining lease term (years) 4.65 10.47 Weighted average discount rate 2.39% 1.70% The following table reconciles the undiscounted cash flows for five years and thereafter to the operating and finance lease liabilities recognized on the Consolidated Balance Sheet as of October 31, 2020. The reconciliation excludes short-term leases that are not recognized on the Consolidated Balance Sheet. Year: Finance Leases Operating Leases 2021 $ 6,226 $ 18,821 2022 4,332 17,367 2023 2,655 14,805 2024 999 13,163 2025 652 11,265 Later years 2,956 63,986 Total minimum lease payments 17,820 139,407 Amounts representing interest 1,366 13,172 Present value of minimum lease payments $ 16,454 $ 126,235 Rental expense for operating leases during the fiscal years ended October 31, 2019 and October 31, 2018 was $22,061 and $19,131, respectively. Assets held under capitalized finance leases and included in property, plant and equipment during the fiscal years ended October 31, 2020 and October 31, 2019 was $15,659 and $14,588, respectively. |
Leases | Leases We review new contracts to determine if the contracts include a lease. To the extent a lease agreement includes an extension option that is reasonably certain to be exercised, we have recognized those amounts as part of the right-of-use assets and lease liabilities. We combine lease and non-lease components, such as common area maintenance, in the calculation of the lease assets and related liabilities. As most lease agreements do not provide an implicit rate, we use an incremental borrowing rate (IBR) based on information available at the lease commencement date in determining the present value of lease payments and to help classify the lease as operating or financing. We calculate the IBR based on a bond yield curve which considers secured borrowing rates based on our credit rating and current economic environment, as well as other publicly available data. We lease certain manufacturing facilities, warehouse space, machinery and equipment, and vehicles. We often have options to renew lease terms for buildings and other assets. We evaluate renewal and termination options at the lease commencement date to determine if we are reasonably certain to exercise the option on the basis of economic factors. Leases with an initial term of 12 months or less (short-term leases) are not recorded on the Consolidated Balance Sheet. Lease expense for operating leases is recognized on a straight-line basis over the lease term, with variable lease payments recognized in the period those payments occur. Variable payments for leases primarily relate to future rates or amounts, miles, or other quantifiable usage factors which are not determinable at the time the lease agreement commences. Finance lease assets are recorded in Property, plant, and equipment – net on the Consolidated Balance Sheet with related amortization recorded in depreciation expense on the Consolidated Statement of Cash Flows. As of October 31, 2020, we had no material leases that had yet to commence. Additional lease information is summarized below for the twelve months ended October 31, 2020: October 31, 2020 Finance Leases Operating Leases Amortization of right of use assets $ 7,087 $ — Interest 350 — Lease cost (1) 7,437 21,489 Short-term and variable lease cost (1) 1,478 3,011 Total lease cost $ 8,915 $ 24,500 (1) Lease costs are recorded in both Cost of sales and Selling and administrative expenses on the Consolidated Statements of Income. Supplemental cash flow information is summarized below for the twelve months ended October 31, 2020: Cash outflows for leases $ 7,605 $ 20,918 Weighted average remaining lease term (years) 4.65 10.47 Weighted average discount rate 2.39% 1.70% The following table reconciles the undiscounted cash flows for five years and thereafter to the operating and finance lease liabilities recognized on the Consolidated Balance Sheet as of October 31, 2020. The reconciliation excludes short-term leases that are not recognized on the Consolidated Balance Sheet. Year: Finance Leases Operating Leases 2021 $ 6,226 $ 18,821 2022 4,332 17,367 2023 2,655 14,805 2024 999 13,163 2025 652 11,265 Later years 2,956 63,986 Total minimum lease payments 17,820 139,407 Amounts representing interest 1,366 13,172 Present value of minimum lease payments $ 16,454 $ 126,235 Rental expense for operating leases during the fiscal years ended October 31, 2019 and October 31, 2018 was $22,061 and $19,131, respectively. Assets held under capitalized finance leases and included in property, plant and equipment during the fiscal years ended October 31, 2020 and October 31, 2019 was $15,659 and $14,588, respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Oct. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair value measurements The inputs to the valuation techniques used to measure fair value are classified into the following categories: 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 that are not corroborated by market data. The following tables present the classification of our assets and liabilities measured at fair value on a recurring basis: October 31, 2020 Total Level 1 Level 2 Level 3 Assets: Foreign currency forward contracts (a) $ 2,700 $ — $ 2,700 $ — Total assets at fair value $ 2,700 $ — $ 2,700 $ — Liabilities: Deferred compensation plans (b) $ 12,304 $ — $ 12,304 $ — Foreign currency forward contracts (a) 5,937 — 5,937 — Total liabilities at fair value $ 18,241 $ — $ 18,241 $ — October 31, 2019 Total Level 1 Level 2 Level 3 Assets: Foreign currency forward contracts (a) $ 5,042 $ — $ 5,042 $ — Total assets at fair value $ 5,042 $ — $ 5,042 $ — Liabilities: Deferred compensation plans (b) $ 11,850 $ — $ 11,850 $ — Foreign currency forward contracts (a) 2,381 — 2,381 — Total liabilities at fair value $ 14,231 $ — $ 14,231 $ — (a) We enter into foreign currency forward contracts to reduce the risk of foreign currency exposures resulting from receivables, payables, intercompany receivables, intercompany payables and loans denominated in foreign currencies. Foreign exchange contracts are valued using market exchange rates. These foreign exchange contracts are not designated as hedges. (b) Executive officers and other highly compensated employees may defer up to 100 percent of their salary and annual cash incentive compensation and for executive officers, up to 90 percent of their long-term incentive compensation, into various non-qualified deferred compensation plans. Deferrals can be allocated to various market performance measurement funds. Changes in the value of compensation deferred under these plans are recognized each period based on the fair value of the underlying measurement funds. Fair value disclosures related to goodwill and indefinite-lived intangible assets are disclosed in Note 6. The carrying amounts and fair values of financial instruments, other than cash and cash equivalents, receivables, and accounts payable, are shown in the table below. The carrying values of cash and cash equivalents, receivables and accounts payable approximate fair value due to the short-term nature of these instruments. 2020 2019 Carrying Fair Value Carrying Fair Value Long-term debt (including current portion) $ 1,105,995 $ 1,170,073 $ 1,244,142 $ 1,278,142 We used the following methods and assumptions in estimating the fair value of financial instruments: • Long-term debt is valued by discounting future cash flows at currently available rates for borrowing arrangements with similar terms and conditions, which are considered to be Level 2 inputs under the fair value hierarchy. The carrying amount of long-term debt is shown net of unamortized debt issuance costs as described in Note 10. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Oct. 31, 2020 | |
Investments, All Other Investments [Abstract] | |
Derivative Financial Instruments | Derivative financial instrumentsWe operate internationally and enter into intercompany transactions denominated in foreign currencies. Consequently, we are subject to market risk arising from exchange rate movements between the dates foreign currency transactions occur and the dates they are settled. We regularly use foreign currency forward contracts to reduce our risks related to most of these transactions. These contracts usually have maturities of 90 days or less and generally require us to exchange foreign currencies for U.S. dollars at maturity, at rates stated in the contracts. These contracts are not designated as hedging instruments under U.S. GAAP. Accordingly, the changes in the fair value of the foreign currency forward contracts are recognized in each accounting period in “Other – net” on the Consolidated Statement of Income together with the transaction gain or loss from the related balance sheet position. In 2020, we recognized net losses of $5,899 on foreign currency forward contracts and net gains of $4,367 from the change in fair value of balance sheet positions. In 2019, we recognized net gains of $2,373 on foreign currency forward contracts and net losses of $2,231 from the change in fair value of balance sheet positions. In 2018, we recognized net losses of $3,151 on foreign currency forward contracts and net gains of $4,284 from the change in fair value of balance sheet positions. The fair values of our foreign currency forward contract assets and liabilities are included in Prepaid expenses and other current assets and Accrued liabilities, respectively in the Consolidated Balance Sheets. The following table summarizes, by currency, the contracts outstanding at October 31, 2020 and 2019: Notional Amounts Sell Buy October 31, 2020 contract amounts: Euro $ 127,849 $ 259,510 Pound sterling 36,943 71,380 Japanese yen 23,262 41,133 Australian dollar 179 9,084 Hong Kong dollar 59,459 81,199 Singapore dollar 1,102 17,350 Others 6,985 73,310 Total $ 255,779 $ 552,966 October 31, 2019 contract amounts: Euro $ 264,661 $ 107,598 Pound sterling 32,600 48,867 Japanese yen 29,397 51,217 Australian dollar 168 7,767 Hong Kong dollar 189 135,862 Singapore dollar 1,108 15,684 Others 4,485 66,349 Total $ 332,608 $ 433,344 We are exposed to credit-related losses in the event of nonperformance by counterparties to financial instruments. These financial instruments include cash deposits and foreign currency forward contracts. We periodically monitor the credit ratings of these counterparties in order to minimize our exposure. Our customers represent a wide variety of industries and geographic regions. As of October 31, 2020 and 2019, there were no significant concentrations of credit risk. |
Capital Shares
Capital Shares | 12 Months Ended |
Oct. 31, 2020 | |
Equity [Abstract] | |
Capital Shares | Capital shares Preferred — We have authorized 10,000 Series A convertible preferred shares without par value. No preferred shares were outstanding in 2020, 2019 or 2018. Common — We have 160,000 authorized common shares without par value. At October 31, 2020 and 2019, there were 98,023 common shares issued. At October 31, 2020 and 2019, the number of outstanding common shares, net of treasury shares, was 58,081 and 57,600, respectively. Common shares repurchased as part of publicly announced programs during 2020, 2019 and 2018 were as follows: Year Number Total Average 2020 303 38,138 $ 125.70 2019 949 114,790 $ 121.01 2018 145 18,939 $ 130.21 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Oct. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-based compensation During the 2018 Annual Meeting of Shareholders, our shareholders approved the Amended and Restated 2012 Stock Incentive and Award Plan (the “2012 Plan”). The 2012 Plan provides for the granting of stock options, stock appreciation rights, restricted shares, restricted share units, performance shares, cash awards and other stock or performance-based incentives. A maximum of 4,525 common shares are available for grant under the 2012 Plan. Stock options — Nonqualified or incentive stock options may be granted to our employees and directors. Generally, options granted to employees may be exercised beginning one year from the date of grant at a rate not exceeding 25 percent per year and expire 10 years from the date of grant. Vesting accelerates upon a qualified termination in connection with a change in control. In the event of termination of employment due to early retirement or normal retirement at age 65, options granted within 12 months prior to termination are forfeited, and vesting continues post retirement for all other unvested options granted. In the event of disability or death, all unvested stock options granted within 12 months prior to termination (or at any time prior to December 28, 2017) fully vest. Termination for any other reason results in forfeiture of unvested options and vested options in certain circumstances. The amortized cost of options is accelerated if the retirement eligibility date occurs before the normal vesting date. Option exercises are satisfied through the issuance of treasury shares on a first-in, first-out basis. We recognized compensation expense related to stock options of $10,087, $10,067 and $9,964 for 2020, 2019 and 2018, respectively. The following table summarizes activity related to stock options during 2020: Number of Weighted˗Average Aggregate Weighted˗Average Outstanding at October 31, 2019 1,787 $ 97.74 Granted 391 $ 166.38 Exercised (644) $ 78.91 Forfeited or expired (47) $ 145.52 Outstanding at October 31, 2020 1,487 $ 122.45 $ 105,536 7.0 years Expected to vest 845 $ 141.28 $ 44,065 8.1 years Exercisable at October 31, 2020 632 $ 96.79 $ 61,104 5.5 years Summarized information on currently outstanding options follows: Range of Exercise Price $43 - $90 $91 - $140 $141 - $190 Number outstanding 279 844 364 Weighted-average remaining contractual life, in years 4.0 7.1 9.1 Weighted-average exercise price $ 70.40 $ 120.56 $ 166.66 Number exercisable 279 352 1 Weighted-average exercise price $ 70.40 $ 117.43 $ 165.21 As of October 31, 2020, there was $11,294 of total unrecognized compensation cost related to nonvested stock options. That cost is expected to be amortized over a weighted average period of approximately 1.7 years. The Black-Scholes option valuation model was used to estimate the fair value of traded options that have no vesting restrictions and are fully transferable. Option valuation models require the input of subjective assumptions, including the expected stock price volatility. The fair value of each option grant was estimated at the date of grant using the Black-Scholes option-pricing model with the following assumptions: 2020 2019 2018 Expected volatility 24.5%-30.5% 24.1%-24.5% 24.0%-26.7% Expected dividend yield 0.87%-1.16% 1.04% 0.97% Risk-free interest rate 0.44%-1.69% 2.84%-2.95% 2.09%-2.20% Expected life of the option (in years) 5.3-6.3 5.3-6.2 5.4-6.2 The weighted-average expected volatility used to value options granted in 2020, 2019 and 2018 was 25.4 percent, 24.3 percent and 25.0 percent, respectively. Historical information was the primary basis for the selection of the expected volatility, expected dividend yield and the expected lives of the options. The risk-free interest rate was selected based upon yields of United States Treasury issues with terms equal to the expected life of the option being valued. The weighted average grant date fair value of stock options granted during 2020, 2019 and 2018 was $38.57, $31.74 and $31.42, respectively. The total intrinsic value of options exercised during 2020, 2019 and 2018 was $65,783, $31,881 and $35,696, respectively. Cash received from the exercise of stock options for 2020, 2019 and 2018 was $50,853, $26,020 and $18,811, respectively. Restricted shares and restricted share units — We may grant restricted shares and/or restricted share units to our employees and directors. These shares or units may not be transferred for a designated period of time (generally one . For employee recipients, in the event of termination of employment due to early retirement, with consent of the Company, restricted shares granted within 12 months prior to termination are forfeited, and other restricted shares vest on a pro-rata basis. In the event of termination of employment due to normal retirement at age 65, restricted shares granted within 12 months prior to termination are forfeited, and, for other restricted shares, the restriction period will lapse and the shares will vest and be transferable. For restricted shares granted within 12 months prior to termination (or at any time prior to December 28, 2017), the restrictions lapse in the event of a recipient’s disability or death. Termination for any other reason prior to the lapse of any restrictions results in forfeiture of the shares. For non-employee directors, all restrictions lapse in the event of disability or death. Termination of service as a director for any other reason within one year of date of grant results in a pro-rata vesting of shares or units. As shares or units are issued, deferred stock-based compensation equivalent to the fair market value on the date of grant is expensed over the vesting period. The following table summarizes activity related to restricted shares during 2020: Number of Weighted˗Average Restricted at October 31, 2019 66 $ 126.83 Granted 27 $ 170.94 Forfeited (7) $ 135.43 Vested (28) $ 121.01 Restricted at October 31, 2020 58 $ 148.75 As of October 31, 2020, there was $4,292 of unrecognized compensation cost related to restricted shares. The cost is expected to be amortized over a weighted average period of 2.0 years. The amount charged to expense related to restricted shares was $3,956, $3,608 and $2,610 in 2020, 2019 and 2018, respectively. These amounts included common share dividends of $87, $84, and $70 in 2020, 2019 and 2018, respectively. The following table summarizes activity related to restricted share units in 2020: Number of Weighted˗Average Grant Date Fair Restricted share units at October 31, 2019 — $ — Granted 7 $ 160.68 Vested (7) $ 160.68 Restricted share units at October 31, 2020 — $ — As of October 31, 2020, there was no remaining expense to be recognized related to outstanding restricted share units. The amounts charged to expense related to restricted share units in 2020, 2019 and 2018 were $1,181, $1,052 and $1,011, respectively. Performance share incentive awards — Executive officers and selected other key employees are eligible to receive common share-based incentive awards. Payouts, in the form of unrestricted common shares, vary based on the degree to which corporate financial performance exceeds predetermined threshold, target and maximum performance goals over three-year performance periods. No payout will occur unless threshold performance is achieved . The amount of compensation expense is based upon current performance projections for each three-year period and the percentage of the requisite service that has been rendered. The calculations are also based upon the grant date fair value determined using the closing market price of our common shares at the grant date, reduced by the implied value of dividends not to be paid. The per share values were $160.02, $133.01, and $184.04 for 2020; $120.12 and $138.53 for 2019; and $123.45 and $138.53 for 2018. The amount credited to expense for executive officers and selected other key employees in 2020 was $2,732, and the amounts charged to expense in 2019 and 2018 were $2,989 and $7,635, respectively. The cumulative amount recorded in shareholders’ equity at October 31, 2020, and 2019 was $1,557 and $10,459, respectively. Deferred compensation — Our executive officers and other highly compensated employees may elect to defer up to 100 percent of their base pay and cash incentive compensation and, for executive officers, up to 90 percent of their share-based performance incentive award payout each year. Additional share units are credited for quarterly dividends paid on our common shares. Expense related to dividends paid under this plan was $276, $300 and $273 for 2020, 2019 and 2018, respectively . Deferred directors’ compensation — Non-employee directors may defer all or part of their cash and equity-based compensation until retirement. Cash compensation may be deferred as cash or as share equivalent units. Deferred cash amounts are recorded as liabilities, and share equivalent units are recorded as equity. Additional share equivalent units are earned when common share dividends are declared. The following table summarizes activity related to director deferred compensation share equivalent units during 2020: Number of Weighted˗Average Outstanding at October 31, 2019 114 $ 55.52 Restricted stock units vested 5 $ 161.09 Dividend equivalents 1 $ 169.43 Outstanding at October 31, 2020 120 $ 60.81 The amount charged to expense related to director deferred compensation was $175, $154 and $127 in 2020, 2019 and 2018, respectively. Shares reserved for future issuance — At October 31, 2020, there were 2,032 of common shares reserved for future issuance through the exercise of outstanding options or rights . |
Operating Segments and Geograph
Operating Segments and Geographic Area Data | 12 Months Ended |
Oct. 31, 2020 | |
Segment Reporting [Abstract] | |
Operating Segments and Geographic Area Data | Operating segments and geographic area data We conduct business in two primary operating segments: Industrial Precision Solutions and Advanced Technology Solutions. The composition of segments and measure of segment profitability is consistent with that used by our chief operating decision maker. The primary measure used by the chief operating decision maker for purposes of making decisions about allocating resources to the segments and assessing performance is operating profit, which equals sales less cost of sales and certain operating expenses. Items below the operating profit line of the Consolidated Statement of Income (interest and investment income, interest expense and other income/expense) are excluded from the measure of segment profitability reviewed by our chief operating decision maker and are not presented by operating segment. The accounting policies of the segments are generally the same as those described in Note 1, Significant Accounting Policies. Effective in the second quarter of 2020, we made changes to realign our management team and our operating segments. This realignment will enable us to better serve global customers and markets, to more efficiently leverage technology synergies, to operate divisions of significant size in a consistent and focused way and to position ourselves for our next chapter of profitable growth. The revised operating segments better reflect how we manage the Company, allocate resources, and assess performance of the businesses. We realigned our former three operating segments into two: Industrial Precision Solutions and Advanced Technology Solutions. Existing product lines were unchanged as part of this new structure. Industrial Precision Solutions: This segment combines our former Adhesive Dispensing Systems (ADS) and Industrial Coating Systems (ICS) businesses. IPS enhances the technology synergies between ADS and ICS to deliver proprietary dispensing and processing technology to diverse end markets. Product lines reduce material consumption, increase line efficiency and enhance product brand and appearance. Components are used for dispensing adhesives, coatings, paint, finishes, sealants and other materials. This segment primarily serves the industrial, consumer durables and non-durables markets. Advanced Technology Solutions: This segment integrates our proprietary product technologies found in progressive stages of a customer’s production processes, such as surface treatment, precisely controlled dispensing of material and post-dispense test and inspection to ensure quality. Related single-use plastic molded syringes, cartridges, tips, fluid connection components, tubing, balloons and catheters are used to dispense or control fluids in production processes or within customers’ end products. This segment predominantly serves customers in the electronics, medical and related high-tech industrial markets. The financial information presented herein reflects the impact of the preceding changes and prior periods have been revised to reflect these changes. No single customer accounted for 10 percent or more of sales in 2020, 2019 or 2018. The following table presents information about our reportable segments: Industrial Precision Solutions Advanced Technology Solutions Corporate Total Year ended October 31, 2020 Net external sales $ 1,143,423 $ 977,677 $ — $ 2,121,100 Depreciation and amortization 38,939 64,543 9,820 113,302 Operating profit (loss) 208,028 191,602 (50,085) 349,545 Identifiable assets (b) 882,946 1,849,391 948,048 (a) 3,680,385 Property, plant and equipment expenditures 18,798 31,737 — 50,535 Year ended October 31, 2019 Net external sales $ 1,208,376 $ 985,850 $ — $ 2,194,226 Depreciation and amortization 38,333 62,836 9,075 110,244 Operating profit (loss) 329,054 205,609 (51,550) 483,113 Identifiable assets (b) 997,460 1,740,259 782,188 (a) 3,519,907 Property, plant and equipment expenditures 30,400 26,010 7,834 64,244 Year ended October 31, 2018 Net external sales $ 1,215,302 $ 1,039,366 $ — $ 2,254,668 Depreciation and amortization 37,763 62,594 8,050 108,407 Operating profit (loss) 315,048 244,880 (57,349) 502,579 Identifiable assets (b) 951,784 1,713,404 763,734 (a) 3,428,922 Property, plant and equipment expenditures 55,457 16,205 18,128 89,790 (a) Corporate assets are principally cash and cash equivalents, deferred income taxes, leases, headquarter facilities, the major portion of our enterprise management system, and intangible assets. Includes assets held for sale, see Note 4. (b) Operating segment identifiable assets include notes and accounts receivable net of customer advance payments and allowance for doubtful accounts, inventories net of reserves, property, plant and equipment net of accumulated depreciation and goodwill. We have significant sales and long-lived assets in the following geographic areas: 2020 2019 2018 Net external sales United States $ 755,642 $ 758,383 $ 720,832 Americas 141,473 167,661 158,837 Europe 536,636 571,596 622,108 Japan 126,601 126,756 161,771 Asia Pacific 560,748 569,830 591,120 Total net external sales $ 2,121,100 $ 2,194,226 $ 2,254,668 Long-lived assets United States $ 329,390 $ 286,894 $ 279,437 Americas 2,307 1,948 2,158 Europe 69,854 44,041 41,663 Japan 22,733 6,169 5,492 Asia Pacific 56,459 59,843 57,916 Total long-lived assets $ 480,743 $ 398,895 $ 386,666 Long-lived assets includes property, plant and equipment - net and operating right of use lease assets, which were recorded as a result of the new lease standard as codified in ASC 842 and excludes amounts held for sale, see Note 4. The increase in 2020 was driven primarily by the recording of the operating right of use lease assets. A reconciliation of total segment operating profit to total consolidated income before income taxes is as follows: 2020 2019 2018 Total profit for reportable segments $ 349,545 $ 483,113 $ 502,579 Interest expense (32,160) (47,145) (49,576) Interest and investment income 1,681 1,844 1,384 Other-net (17,577) (6,708) (5,868) Income before income taxes $ 301,489 $ 431,104 $ 448,519 A reconciliation of total assets for reportable segments to total consolidated assets is as follows: 2020 2019 2018 Total assets for reportable segments $ 3,680,385 $ 3,519,907 $ 3,428,922 Customer advance payments 42,323 41,131 38,997 Eliminations (48,052) (44,591) (46,907) Total consolidated assets $ 3,674,656 $ 3,516,447 $ 3,421,012 |
Supplemental Information for th
Supplemental Information for the Statement of Cash Flows | 12 Months Ended |
Oct. 31, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Supplemental Information for the Statement of Cash Flows | Supplemental information for the statement of cash flows 2020 2019 2018 Cash operating activities: Interest paid $ 31,095 $ 50,578 $ 42,305 Income taxes paid 80,849 104,326 87,879 |
Quarterly financial data (unaud
Quarterly financial data (unaudited) | 12 Months Ended |
Oct. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly financial data (unaudited) | Quarterly financial data (unaudited) First Second Third Fourth 2020: Sales $ 494,916 $ 529,478 $ 538,181 $ 558,525 Gross margin 263,194 289,598 280,808 296,868 Net income 52,004 92,079 86,981 18,475 Earnings per share: Basic 0.90 1.60 1.51 0.32 Diluted 0.89 1.58 1.49 0.31 2019: Sales $ 497,910 $ 551,119 $ 559,746 $ 585,451 Gross margin 268,976 301,529 302,623 318,975 Net income 48,567 91,923 93,928 102,673 Earnings per share: Basic 0.84 1.60 1.64 1.79 Diluted 0.83 1.58 1.62 1.76 The sum of the per-share amounts for the four quarters may not always equal the annual per-share amounts due to differences in the average number of shares outstanding during the respective periods. The sum of other amounts for the four quarters may not always equal the annual amounts due to rounding. During the fourth quarter of 2020, we recorded a non-cash, assets held for sale impairment charge of $87,371 related to the disposal of our screws and barrels product line. Refer to Note 4 for additional information. |
Contingencies
Contingencies | 12 Months Ended |
Oct. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies We are involved in pending or potential litigation regarding environmental, product liability, patent, contract, employee and other matters arising from the normal course of business. Including the litigation and environmental matters discussed below, after consultation with legal counsel, we do not believe that losses in excess of the amounts we have accrued would have a material adverse effect on our financial condition, quarterly or annual operating results or cash flows. Class Action Litigation On February 22, 2019, a former employee, Mr. Ortiz, filed a purported class action lawsuit in the San Diego County Superior Court, California, against Nordson Asymtek, Inc. and Nordson Corporation, alleging various violations of the California Labor Code. Plaintiff seeks, among other things, an unspecified amount for unpaid wages, actual, consequential and incidental losses, penalties, and attorneys’ fees and costs . Following mediation in June 2020, the parties agreed to settle the lawsuit, subject to the execution of a written settlement agreement and court approval. If the court approves of the settlement on the agreed upon terms, the class action lawsuit will be resolved. Management believes, based on currently available information, that the ultimate outcome of the proceeding described above will not have a material adverse effect on the Company’s financial condition or results of operations. Environmental We have voluntarily agreed with the City of New Richmond, Wisconsin and other Potentially Responsible Parties to share costs associated with the remediation of the City of New Richmond municipal landfill (the “Site”) and the construction of a potable water delivery system serving the impacted area down gradient of the Site. At October 31, 2020 and October 31, 2019, our accrual for the ongoing operation, maintenance and monitoring obligation at the Site was $360 and $401, respectively. The liability for environmental remediation represents management’s best estimate of the probable and reasonably estimable undiscounted costs related to known remediation obligations. The accuracy of our estimate of environmental liability is affected by several uncertainties such as additional requirements that may be identified in connection with remedial activities, the complexity and evolution of environmental laws and regulations, and the identification of presently unknown remediation requirements. Consequently, our liability could be greater than our current estimate. However, we do not expect that the costs associated with remediation will have a material adverse effect on our financial condition or results of operations. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts and Reserves | 12 Months Ended |
Oct. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts and Reserves | Schedule II – Valuation and Qualifying Accounts and Reserves Balance at Charged to Deductions Currency Balance Allowance for Doubtful Accounts 2018 $ 9,791 1,185 1,189 (207) $ 9,580 2019 $ 9,580 2,254 1,840 (193) $ 9,801 2020 $ 9,801 2,165 3,074 153 $ 9,045 Inventory Obsolescence and Other Reserves 2018 $ 33,140 13,041 8,930 294 $ 37,545 2019 $ 37,545 10,623 8,720 (71) $ 39,377 2020 $ 39,377 24,767 23,255 426 $ 41,315 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Oct. 31, 2020 | |
Consolidation | Consolidation — The consolidated financial statements include the accounts of Nordson Corporation and its majority-owned and controlled subsidiaries. Investments in affiliates and joint ventures in which our ownership is 50 percent or less or in which we do not have control but have the ability to exercise significant influence, are accounted for under the equity method. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of estimates — The preparation of financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and notes. Actual amounts could differ from these estimates. |
Fiscal Year | Fiscal year — Our fiscal year is November 1 through October 31. |
Revenue Recognition | Revenue recognition — A contract exists when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of the consideration is probable. Revenue is recognized when performance obligations under the terms of the contract with a customer are satisfied. Generally, our revenue results from short-term, fixed-price contracts and primarily is recognized as of a point in time when the product is shipped or at a later point when the control of the product transfers to the customer. Revenue for undelivered items is deferred and included within Accrued liabilities in our Consolidated Balance Sheets. Revenues deferred as of October 31, 2020 and 2019 were not material. However, for certain contracts related to the sale of customer-specific products within our Advanced Technology Solutions segment, there was a change in revenue recognition upon adoption of the new revenue standard. Previously, these contracts were recognized at the point in time when the shipping terms were satisfied. Under the new revenue standard, we now recognize revenue for these contracts over time as we satisfy performance obligations because of the continuous transfer of control to the customer. The continuous transfer of control to the customer occurs as we enhance assets that are customer controlled and we are contractually entitled to payment for work performed to date plus a reasonable margin. As control transfers over time for these products or services, revenue is recognized based on progress toward completion of the performance obligations. The selection method to measure progress towards completion requires judgment and is based on the nature of the products or services to be provided. We have elected to use the input method – costs incurred for these contracts because it best depicts the transfer of products or services to the customer based on incurring costs on the contract. Under this method, revenues are recorded proportionally as costs are incurred. Contract assets recognized are recorded in Prepaid expenses and other current assets and contract liabilities are recorded in Accrued liabilities in our Consolidated Balance Sheets and were not material at October 31, 2020 or 2019. Revenue recognized over time is not material to our overall Consolidated Financial Statements. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring products or services. Sales, value add, and other taxes we collect concurrently with revenue-producing activities are excluded from revenue. As a practical expedient, we may exclude the assessment of whether goods or services are performance obligations, if they are immaterial in the context of the contract, and combine these with other performance obligations. While payment terms and conditions vary by contract type, we have determined that our contracts generally do not include a significant financing component. We have elected to apply the practical expedient to treat all shipping and handling costs as fulfillment costs as a significant portion of these costs are incurred prior to transfer of control to the customer. We have also elected to apply the practical expedient to expense sales commissions as they are incurred as the amortization period resulting from capitalizing the costs is one year or less. These costs are recorded within Selling, general and administrative expenses in our Consolidated Statements of Income. We offer assurance type warranties on our products as well as separately sold warranty contracts. Revenue related to warranty contracts that are sold separately is recognized over the life of the warranty term. Certain arrangements may include installation, installation supervision, training, and spare parts, which tend to be completed in a short period of time, at an insignificant cost, and utilizing skills not unique to us, therefore, are typically regarded as inconsequential or not material. |
Advertising Costs | Advertising costs — Advertising costs are expensed as incurred and were $7,174, $10,479 and $12,451 in 2020, 2019 and 2018, respectively. |
Research and Development | Research and development — Investments in research and development are important to our long-term growth, enabling us to keep pace with changing customer and marketplace needs through the development of new products and new applications for existing products. We place strong emphasis on technology developments and improvements through internal engineering and research teams. Research and development costs are expensed as incurred and were $63,591, $60,018 and $58,806 in 2020, 2019 and 2018, respectively. As a percentage of sales, research and development expenses were 3.0, 2.7 and 2.6 percent in 2020, 2019 and 2018, respectively. |
Earnings Per Share | Earnings per share — Basic earnings per share are computed based on the weighted-average number of common shares outstanding during each year, while diluted earnings per share are based on the weighted-average number of common shares and common share equivalents outstanding. Common share equivalents consist of shares issuable upon exercise of stock options computed using the treasury stock method, as well as restricted stock and deferred stock-based compensation. Options whose exercise price is higher than the average market price are excluded from the calculation of diluted earnings per share because the effect would be anti-dilutive. Options for 95 common shares were excluded from the diluted earnings per share calculation in 2020 and 176 options were excluded from the calculation of diluted earnings per share in 2019 because their effect would have been anti-dilutive. No options were excluded from the calculation of diluted earnings per share in 2018. Under the Amended and Restated 2012 Stock Incentive and Award Plan, executive officers and selected other key employees receive common share awards based on corporate performance measures over three-year performance periods. Awards for which performance measures have not been met were excluded from the calculation of diluted earnings per share. |
Cash | Cash — Highly liquid instruments with maturities of 90 days or less at date of purchase are considered to be cash equivalents. |
Allowance for Doubtful Accounts | Allowance for doubtful accounts — An allowance for doubtful accounts is maintained for estimated losses resulting from the inability of customers to make required payments. The amount of the allowance is determined principally on the basis of past collection experience and known factors regarding specific customers. Accounts are written off against the allowance when it becomes evident that collection will not occur. Credit is extended to customers satisfying pre-defined credit criteria. We believe we have limited concentration of credit risk due to the diversity of our customer base. |
Inventories | Inventories — Inventories are valued at the lower of cost or net realizable value. Cost was determined using the last-in, first-out (LIFO) method for 19 percent of consolidated inventories at October 31, 2020 and 19 percent of consolidated inventories at October 31, 2019. The first-in, first-out (FIFO) method is used for all other inventories. Consolidated inventories would have been $4,545 and $6,145 higher than reported at October 31, 2020 and 2019, respectively, had the FIFO method, which approximates current cost, been used for valuation of all inventories. |
Property, Plant and Equipment and Depreciation | Property, plant and equipment and depreciation — Property, plant and equipment are carried at cost. Additions and improvements that extend the lives of assets are capitalized, while expenditures for repairs and maintenance are expensed as incurred. Plant and equipment are depreciated for financial reporting purposes using the straight-line method over the estimated useful lives of the assets or, in the case of property under finance leases, over the terms of the leases. Leasehold improvements are depreciated over the shorter of the lease term or their useful lives. Useful lives are as follows: Land improvements 15-25 years Buildings 20-40 years Machinery and equipment 3-18 years Enterprise management systems 5-13 years Depreciation expense is included in cost of sales and selling and administrative expenses. Internal use software costs are expensed or capitalized depending on whether they are incurred in the preliminary project stage, application development stage or the post-implementation stage. Amounts capitalized are amortized over the estimated useful lives of the software beginning with the project’s completion. All re-engineering costs are expensed as incurred. Interest costs on significant capital projects are capitalized. No interest was capitalized in 2020, 2019 or 2018. |
Goodwill and Intangible Assets | Goodwill and intangible assets — Goodwill is the excess of cost of an acquired entity over the amounts assigned to assets acquired and liabilities assumed in a business combination. Goodwill relates to and is assigned directly to specific reporting units. Goodwill is not amortized but is subject to annual impairment testing. Our annual impairment testing is performed as of August 1. Testing is done more frequently if an event occurs or circumstances change that would indicate the fair value of a reporting unit is less than the carrying amount of those assets. |
Foreign Currency Translation | Foreign currency translation — The financial statements of subsidiaries outside the United States are generally measured using the local currency as the functional currency. Assets and liabilities of these subsidiaries are translated at the rates of exchange at the balance sheet dates. Income and expense items are translated at average monthly rates of exchange. The resulting translation adjustments are included in accumulated other comprehensive income (loss), a separate component of shareholders’ equity. Generally, gains and losses from foreign currency transactions, including forward contracts, of these subsidiaries and the United States parent are included in net income. Gains and losses from intercompany foreign currency transactions of a long-term investment nature are included in accumulated other comprehensive income (loss). |
Warranties | Warranties — We offer warranties to our customers depending on the specific product and terms of the customer purchase agreement. A typical warranty program requires that we repair or replace defective products within a specified time period (generally one year) measured from the date of delivery or first use. We record an estimate for future warranty-related costs based on actual historical return rates. Based on analysis of return rates and other factors, the adequacy of our warranty provisions is adjusted as necessary. The liability for warranty costs is included in accrued liabilities in the Consolidated Balance Sheet. |
Shipping and Handling Costs | |
Shipping and Handling Costs | Shipping and handling costs — Amounts billed to customers for shipping and handling are recorded as revenue. Shipping and handling expenses are included in cost of sales. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Accounting Policies [Abstract] | |
Useful Lives of Property, Plant and Equipment and Depreciation | Useful lives are as follows: Land improvements 15-25 years Buildings 20-40 years Machinery and equipment 3-18 years Enterprise management systems 5-13 years |
Weighted Average Useful Lives for Each Major Category of Amortizable Intangible Assets | At October 31, 2020, the weighted-average useful lives for each major category of amortizable intangible assets were: Patent/technology costs 12 years Customer relationships 14 years Noncompete agreements 4 years Trade names 15 years |
Summary of Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss at October 31, 2020 and 2019 consisted of: Cumulative Pension and Accumulated Balance at October 31, 2019 $ (53,332) $ (178,549) $ (231,881) Pension and postretirement plan changes, net of tax of $(2,404) — (7,147) (7,147) Currency translation losses 12,910 — 12,910 Balance at October 31, 2020 $ (40,422) $ (185,696) $ (226,118) |
Reconciliation of Product Warranty Liability | Following is a reconciliation of the product warranty liability for 2020 and 2019: 2020 2019 Balance at beginning of year $ 11,006 $ 12,195 Accruals for warranties 11,662 9,670 Warranty payments (12,330) (10,881) Currency adjustments 212 22 Balance at end of year $ 10,550 $ 11,006 |
Discontinued Operations and Dis
Discontinued Operations and Disposal Groups (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Asset and Liabilities of the Core Components product line classified as held for sale | The assets and liabilities of the screws and barrels product line classified as held for sale at October 31, 2020 were as follows: 2020 Receivables - net $ 14,327 Inventories - net 9,854 Prepaid expenses and other current assets 696 Property, plant and equipment - net 58,950 Other assets 23,159 Impairment on carrying value (87,371) Assets held for sale $ 19,615 Accounts payable $ 4,625 Accrued liabilities 3,352 Other liabilities 5,171 Liabilities held for sale $ 13,148 |
Details of Consolidated Balan_2
Details of Consolidated Balance Sheet (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Details of Consolidated Balance Sheet | Note 5 — Details of Consolidated Balance Sheet 2020 2019 Receivables: Accounts $ 445,360 $ 506,318 Notes 4,592 3,980 Other 30,966 30,268 480,918 540,566 Allowance for doubtful accounts (9,045) (9,801) $ 471,873 $ 530,765 Inventories: Raw materials and component parts $ 94,630 $ 102,044 Work-in-process 44,403 42,904 Finished goods 183,860 183,973 322,893 328,921 Obsolescence and other reserves (41,315) (39,377) LIFO reserve (4,545) (6,145) $ 277,033 $ 283,399 Property, plant and equipment: Land $ 8,816 $ 10,468 Land improvements 4,611 4,390 Buildings 253,621 256,195 Machinery and equipment 464,171 489,864 Enterprise management system 56,103 53,020 Construction-in-progress 29,897 34,944 Leased property under capitalized leases 32,590 29,528 849,809 878,409 Accumulated depreciation and amortization (491,191) (479,514) $ 358,618 $ 398,895 Accrued liabilities: Salaries and other compensation $ 52,260 $ 57,773 Pension and retirement 10,282 9,993 Taxes other than income taxes 13,346 8,606 Customer commissions 9,158 9,030 Other 82,837 76,253 $ 167,883 $ 161,655 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Carrying Amount of Goodwill | Changes in the carrying amount of goodwill during 2020 by operating segment: Industrial Precision Solutions Advanced Technology Solutions Total Balance at October 31, 2019 $ 411,461 $ 1,203,278 $ 1,614,739 Acquisitions — 90,441 90,441 Other (453) (453) Currency effect 4,854 3,773 8,627 Balance at October 31, 2020 $ 415,862 $ 1,297,492 $ 1,713,354 The Other activity above reflects an allocation of goodwill to the disposal group classified as held for sale. See Note 4, Assets Held for Sale. Changes in the carrying amount of goodwill during 2019 by operating segment: Industrial Precision Solutions Advanced Technology Solutions Total Balance at October 31, 2018 $ 413,049 $ 1,194,969 $ 1,608,018 Acquisition — 9,225 9,225 Currency effect (1,588) (916) (2,504) Balance at October 31, 2019 $ 411,461 $ 1,203,278 $ 1,614,739 |
Summary of Intangible Assets Subject to Amortization | Information regarding intangible assets subject to amortization: October 31, 2020 Carrying Accumulated Net Book Customer relationships $ 483,568 $ 193,617 $ 289,951 Patent/technology costs 153,555 76,934 76,621 Trade name 74,240 34,693 39,547 Noncompete agreements 9,908 8,444 1,464 Other 1,403 1,400 3 Total $ 722,674 $ 315,088 $ 407,586 October 31, 2019 Carrying Accumulated Net Book Customer relationships $ 480,007 $ 173,996 $ 306,011 Patent/technology costs 154,735 71,663 83,072 Trade name 96,655 41,303 55,352 Noncompete agreements 11,540 10,406 1,134 Other 1,400 1,394 6 Total $ 744,337 $ 298,762 $ 445,575 |
Estimated Amortization Expense | Estimated amortization expense for each of the five succeeding years: Year Amounts 2021 $ 50,576 2022 $ 46,685 2023 $ 45,697 2024 $ 40,815 2025 $ 39,115 |
Retirement, Pension and Other_2
Retirement, Pension and Other Postretirement Plans (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Summary of Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss at October 31, 2020 and 2019 consisted of: Cumulative Pension and Accumulated Balance at October 31, 2019 $ (53,332) $ (178,549) $ (231,881) Pension and postretirement plan changes, net of tax of $(2,404) — (7,147) (7,147) Currency translation losses 12,910 — 12,910 Balance at October 31, 2020 $ (40,422) $ (185,696) $ (226,118) |
Pension Plans | |
Reconciliation of the Benefit Obligations, Plan Assets, Accrued Benefit Cost and the Amount Recognized in Financial Statements for Pension Plans | A reconciliation of the benefit obligations, plan assets, accrued benefit cost and the amount recognized in financial statements for pension plans is as follows: United States International 2020 2019 2020 2019 Change in benefit obligation: Benefit obligation at beginning of year $ 551,997 $ 425,605 $ 97,990 $ 87,227 Service cost 20,635 14,587 2,099 1,933 Interest cost 15,824 18,304 1,025 1,670 Participant contributions — — 83 83 Plan amendments — — — 186 Settlements (4,992) — — (3,018) Foreign currency exchange rate change — — 2,814 106 Actuarial loss 47,788 107,662 2,729 11,852 Benefits paid (15,484) (14,161) (1,891) (2,049) Benefit obligation at end of year $ 615,768 $ 551,997 $ 104,849 $ 97,990 Change in plan assets: Beginning fair value of plan assets $ 448,931 $ 361,073 $ 39,640 $ 39,617 Actual return on plan assets 41,712 76,700 3,697 707 Company contributions 40,083 25,319 3,365 3,696 Participant contributions — — 83 83 Settlements (4,992) — — (3,018) Foreign currency exchange rate change — — 582 604 Benefits paid (15,484) (14,161) (1,891) (2,049) Ending fair value of plan assets $ 510,250 $ 448,931 $ 45,476 $ 39,640 Funded status at end of year $ (105,518) $ (103,066) $ (59,373) $ (58,350) Amounts recognized in financial statements: Noncurrent asset $ 3,162 $ 2,171 $ 3,321 $ 1,375 Accrued benefit liability (5,211) (6,435) (634) (21) Long-term pension obligations (103,469) (98,802) (62,060) (59,704) Total amount recognized in financial statements $ (105,518) $ (103,066) $ (59,373) $ (58,350) United States International 2020 2019 2020 2019 Amounts recognized in accumulated other comprehensive (gain) loss: Net actuarial loss $ 192,593 $ 178,390 $ 32,097 $ 33,826 Prior service credit (16) (100) (2,137) (2,342) Accumulated other comprehensive loss $ 192,577 $ 178,290 $ 29,960 $ 31,484 Amounts expected to be recognized during next fiscal year: Amortization of net actuarial loss $ 14,297 $ 13,591 $ 3,049 $ 2,945 Amortization of prior service credit (81) (84) (299) (288) Total $ 14,216 $ 13,507 $ 2,750 $ 2,657 |
Summary of Accumulated Other Comprehensive Loss | The following table summarizes the changes in accumulated other comprehensive loss: United States International 2020 2019 2020 2019 Balance at beginning of year $ 178,290 $ 130,627 $ 31,484 $ 20,460 Net loss arising during the year 30,743 54,304 305 12,737 Prior service cost arising during the year — — — 186 Net gain recognized during the year (14,032) (6,702) (2,972) (1,696) Prior service credit recognized during the year 84 61 290 303 Settlement loss (2,508) — — (470) Exchange rate effect during the year — — 853 (36) Balance at end of year $ 192,577 $ 178,290 $ 29,960 $ 31,484 |
Accumulated Benefit Obligation | Information regarding the accumulated benefit obligation is as follows: United States International 2020 2019 2020 2019 For all plans: Accumulated benefit obligation $ 571,036 $ 513,861 $ 96,252 $ 83,439 For plans with benefit obligations in excess of plan assets: Projected benefit obligation 553,403 491,816 92,775 86,534 Accumulated benefit obligation 508,671 453,681 85,189 73,293 Fair value of plan assets 444,723 386,580 30,797 27,769 |
Components of Net Periodic Benefits Cost | Net periodic pension costs include the following components: United States International 2020 2019 2018 2020 2019 2018 Service cost $ 20,635 $ 14,587 $ 13,052 $ 2,099 $ 1,933 $ 2,048 Interest cost 15,824 18,304 14,797 1,025 1,670 1,656 Expected return on plan assets (24,667) (23,341) (21,964) (1,273) (1,592) (1,512) Amortization of prior service cost (credit) (84) (61) (22) (290) (303) (316) Amortization of net actuarial loss 14,032 6,702 9,479 2,972 1,696 2,115 Settlement loss 2,508 — — — 470 252 Total benefit cost $ 28,248 $ 16,191 $ 15,342 $ 4,533 $ 3,874 $ 4,243 |
Weighted Average Assumptions Representing the Rates Used to Develop the Actuarial Present Value of Projected Benefit Obligation and the Net Periodic Benefit Costs | The weighted average assumptions used in the valuation of pension benefits were as follows: United States International 2020 2019 2018 2020 2019 2018 Assumptions used to determine benefit obligations at October 31: Discount rate 2.85 % 3.25 % 4.53 % 1.01 % 1.26 % 2.14 % Rate of compensation increase 4.00 4.00 3.90 2.69 3.12 3.12 Assumptions used to determine net benefit costs for the years ended October 31: Discount rate - benefit obligation 3.25 4.53 3.80 1.26 2.14 2.07 Discount rate - service cost 3.56 4.70 4.01 1.12 1.82 1.76 Discount rate - interest cost 2.78 4.15 3.31 1.05 1.90 1.83 Expected return on plan assets 5.75 6.00 6.00 3.22 3.96 3.91 Rate of compensation increase 4.00 3.90 3.61 3.12 3.12 3.13 |
Allocation of Pension Plan Assets | The allocation of pension plan assets as of October 31, 2020 and 2019 is as follows: United States International 2020 2019 2020 2019 Asset Category Equity securities 11 % 11 % — % — % Debt securities 49 53 — — Insurance contracts — — 54 54 Pooled investment funds 39 35 44 45 Other 1 1 2 1 Total 100 % 100 % 100 % 100 % |
Fair Values of Pension Plan Assets | The fair values of our pension plan assets at October 31, 2020 by asset category are in the table below: United States International Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Cash $ 1,331 $ 1,331 $ — $ — $ 759 $ 759 $ — $ — Money market funds 5,059 5,059 — — — — — — Equity securities: Basic materials 1,750 1,750 — — — — — — Consumer goods 5,024 5,024 — — — — — — Financial 4,745 4,745 — — — — — — Healthcare 4,518 4,518 — — — — — — Industrial goods 3,588 3,588 — — — — — — Technology 5,706 5,706 — — — — — — Utilities 685 685 — — — — — — Mutual funds 24,266 24,266 — — — — — — Fixed income securities: U.S. Government 71,855 8,267 63,588 — — — — — Corporate 173,046 — 173,046 — — — — — Other 6,673 — 6,673 — — — — — Other types of investments: Insurance contracts — — — — 24,496 — — 24,496 Other 845 845 — — — — — — Total investments in the fair value hierarchy $ 309,091 $ 65,784 $ 243,307 $ — $ 25,255 $ 759 $ — $ 24,496 Investments measured at Net Asset Value: Real estate collective funds 38,996 — Pooled investment funds 162,163 20,221 Total Investments at Fair Value $ 510,250 $ 45,476 The fair values of our pension plan assets at October 31, 2019 by asset category are in the table below: United States International Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Cash $ 1,208 $ 1,208 $ — $ — $ 441 $ 441 $ — $ — Money market funds 5,566 5,566 — — — — — — Equity securities: Basic materials 2,318 2,318 — — — — — — Consumer goods 4,412 4,412 — — — — — — Financial 6,120 6,120 — — — — — — Healthcare 4,460 4,460 — — — — — — Industrial goods 3,152 3,152 — — — — — — Technology 5,064 5,064 — — — — — — Utilities 937 937 — — — — — — Mutual funds 19,674 19,674 — — — — — — Fixed income securities: U.S. Government 83,025 13,094 69,931 — — — — — Corporate 151,607 — 151,607 — — — — — Other 5,051 — 5,051 — — — — — Other types of investments: Insurance contracts — — — — 21,245 — — 21,245 Other 1,101 1,101 — — — — — — Total investments in the fair value hierarchy $ 293,695 $ 67,106 $ 226,589 $ — $ 21,686 $ 441 $ — $ 21,245 Investments measured at Net Asset Value: Real estate collective funds 33,917 — Pooled investment funds 121,319 17,954 Total Investments at Fair Value $ 448,931 $ 39,640 |
Change in Level 3 Fair Value of Plan Assets | The following tables present an analysis of changes during the years ended October 31, 2020 and 2019 in Level 3 plan assets, by plan asset class, for U.S. and international pension plans using significant unobservable inputs to measure fair value: Fair Value Measurements Insurance Total Beginning balance at October 31, 2019 $ 21,245 $ 21,245 Actual return on plan assets: Assets held, end of year 1,739 1,739 Assets sold during the period — — Purchases 2,462 2,462 Sales (1,495) (1,495) Foreign currency translation 545 545 Ending balance at October 31, 2020 $ 24,496 $ 24,496 Fair Value Measurements Insurance Total Beginning balance at October 31, 2018 $ 21,645 $ 21,645 Actual return on plan assets: Assets held, end of year 913 913 Assets sold during the period — — Purchases 2,431 2,431 Sales (4,102) (4,102) Foreign currency translation 358 358 Ending balance at October 31, 2019 $ 21,245 $ 21,245 |
Retiree Pension Benefit Payments | Retiree pension benefit payments, which reflect expected future service, are anticipated to be paid as follows: Year United States International 2021 $ 23,045 $ 3,488 2022 20,262 3,042 2023 21,686 3,069 2024 23,213 3,527 2025 25,209 3,721 2026-2030 150,280 19,949 |
Retirement Plans | |
Reconciliation of the Benefit Obligations, Plan Assets, Accrued Benefit Cost and the Amount Recognized in Financial Statements for Pension Plans | A reconciliation of the benefit obligations, accrued benefit cost and the amount recognized in financial statements for other postretirement plans is as follows: United States International 2020 2019 2020 2019 Change in benefit obligation: Benefit obligation at beginning of year $ 88,660 $ 72,010 $ 454 $ 512 Service cost 666 545 15 16 Interest cost 2,345 2,984 13 19 Participant contributions 611 684 — — Foreign currency exchange rate change — — (5) (1) Actuarial (gain) loss (2,024) 15,101 (26) (86) Benefits paid (2,613) (2,664) (6) (6) Benefit obligation at end of year $ 87,645 $ 88,660 $ 445 $ 454 Change in plan assets: Beginning fair value of plan assets $ — $ — $ — $ — Company contributions 2,002 1,980 6 6 Participant contributions 611 684 — — Benefits paid (2,613) (2,664) (6) (6) Ending fair value of plan assets $ — $ — $ — $ — Funded status at end of year $ (87,645) $ (88,660) $ (445) $ (454) Amounts recognized in financial statements: Accrued benefit liability $ (2,835) $ (2,740) $ (6) $ (6) Long-term postretirement obligations (84,810) (85,920) (439) (448) Total amount recognized in financial statements $ (87,645) $ (88,660) $ (445) $ (454) United States International 2020 2019 2020 2019 Amounts recognized in accumulated other comprehensive (gain) loss: Net actuarial (gain) loss $ 25,614 $ 28,992 $ (466) $ (482) Prior service credit — (16) — — Accumulated other comprehensive (gain) loss $ 25,614 $ 28,976 $ (466) $ (482) Amounts expected to be recognized during next fiscal year: Amortization of net actuarial (gain) loss $ 1,388 $ 1,674 $ (39) $ (37) Amortization of prior service credit — (16) — — Total $ 1,388 $ 1,658 $ (39) $ (37) |
Summary of Accumulated Other Comprehensive Loss | The following table summarizes the changes in accumulated other comprehensive (gain) loss: United States International 2020 2019 2020 2019 Balance at beginning of year $ 28,976 $ 14,483 $ (482) $ (423) Net (gain) loss arising during the year (2,024) 15,101 (26) (86) Net gain (loss) recognized during the year (1,355) (634) 36 28 Prior service credit recognized during the year 17 26 — — Exchange rate effect during the year — — 6 (1) Balance at end of year $ 25,614 $ 28,976 $ (466) $ (482) |
Components of Net Periodic Benefits Cost | Net postretirement benefit costs include the following components: United States International 2020 2019 2018 2020 2019 2018 Service cost $ 666 $ 545 $ 709 $ 15 $ 16 $ 20 Interest cost 2,345 2,984 2,557 13 19 20 Amortization of prior service credit (17) (26) (99) — — — Amortization of net actuarial (gain) loss 1,355 634 1,079 (36) (28) (20) Total benefit cost (credit) $ 4,349 $ 4,137 $ 4,246 $ (8) $ 7 $ 20 |
Weighted Average Assumptions Representing the Rates Used to Develop the Actuarial Present Value of Projected Benefit Obligation and the Net Periodic Benefit Costs | The weighted average assumptions used in the valuation of postretirement benefits were as follows: United States International 2020 2019 2018 2020 2019 2018 Assumptions used to determine benefit obligations at October 31: Discount rate 2.84 % 3.27 % 4.56 % 2.94 % 3.03 % 3.88 % Health care cost trend rate 3.40 3.62 3.75 4.22 4.00 6.35 Rate to which health care cost trend rate is assumed to incline/decline (ultimate trend rate) 3.17 3.24 3.27 4.05 4.05 3.50 Year the rate reaches the ultimate trend rate 2026 2026 2026 2040 2040 2037 Assumption used to determine net benefit costs for the years ended October 31: Discount rate benefit obligation 3.27 % 4.56 % 3.86 % 3.03 % 3.88 % 3.52 % Discount rate service cost 3.61 4.77 4.11 3.05 3.90 3.54 Discount rate interest cost 2.79 4.18 3.39 2.88 3.80 3.40 |
Retiree Pension Benefit Payments | Retiree postretirement benefit payments are anticipated to be paid as follows: Year United States International 2021 $ 2,835 $ 6 2022 3,047 6 2023 3,238 6 2024 3,444 6 2025 3,623 6 2026-2030 20,133 46 |
Defined Benefit Plan Effect of One Percentage Point Change in Assumed Health Care Cost Trend Rates | A one-percentage point change in the assumed health care cost trend rate would have the following effects. Bracketed numbers represent decreases in expense and obligation amounts. United States International 1% Point 1% Point 1% Point 1% Point Health care trend rate: Effect on total net postretirement benefit cost components in 2020 $ 431 $ (345) $ 7 $ (5) Effect on postretirement obligation as of October 31, 2020 $ 11,019 $ (9,100) $ 103 $ (80) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense | Income tax expense includes the following: 2020 2019 2018 Current: U.S. federal $ 19,265 $ 40,012 $ 39,837 State and local 984 3,429 1,734 Foreign 45,657 51,590 63,522 Total current 65,906 95,031 105,093 Deferred: U.S. federal (10,143) 1,470 (32,829) State and local (1,023) 633 891 Foreign (2,790) (3,121) (2,011) Total deferred (13,956) (1,018) (33,949) $ 51,950 $ 94,013 $ 71,144 |
Income Taxes Computed at the U.S. Statutory Rate and Income Tax | A reconciliation of the U.S. statutory federal rate to the worldwide consolidated effective tax rate follows: 2020 2019 2018 Statutory federal income tax rate 21.00 % 21.00 % 23.34 % Transition tax — 1.46 6.16 Tax rate change deferred tax remeasurement — — (10.94) Share-based and other compensation (4.15) (0.55) (1.45) Domestic production deduction — — (0.82) Foreign tax rate variances, net of foreign tax credits 1.51 1.16 (0.46) State and local taxes, net of federal income tax benefit (0.01) 0.74 0.45 Amounts related to prior years (0.04) (0.55) (0.21) Foreign-Derived Intangible Income Deduction (0.95) (1.51) — Global Intangible Low-Taxed Income net of foreign tax credits 0.97 0.85 — Other – net (1.10) (0.79) (0.21) Effective tax rate 17.23 % 21.81 % 15.86 % |
Unrecognized Tax Benefits | 2020 2019 2018 Balance at beginning of year $ 2,909 $ 2,891 $ 3,781 Additions based on tax positions related to the current year 370 370 310 Additions for tax positions of prior years 4,068 547 40 Reductions for tax positions of prior years — — (120) Settlements (137) — — Lapse of statute of limitations (493) (899) (1,120) Balance at end of year $ 6,717 $ 2,909 $ 2,891 |
Significant Components of Deferred Tax Assets and Liabilities | Significant components of deferred tax assets and liabilities are as follows: 2020 2019 Deferred tax assets: Employee benefits $ 70,838 $ 73,025 Other accruals not currently deductible for taxes 16,207 16,294 Tax credit and loss carryforwards 20,268 18,074 Inventory adjustments 8,757 5,269 Total deferred tax assets 116,070 112,662 Valuation allowance (22,233) (15,301) Total deferred tax assets 93,837 97,361 Deferred tax liabilities: Depreciation and amortization 150,591 169,009 Other - net 410 655 Total deferred tax liabilities 151,001 169,664 Net deferred tax liabilities $ (57,164) $ (72,303) |
Bank Lines of Credit (Tables)
Bank Lines of Credit (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Debt Disclosure [Abstract] | |
Bank Lines of Credit and Notes | Bank lines of credit are summarized as follows: 2020 2019 Maximum borrowings available under bank lines of credit (all foreign banks) $ 74,766 $ 79,930 Unused bank lines of credit $ 74,766 $ 79,930 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | A summary of long-term debt is as follows: 2020 2019 Senior notes, due 2021-2025 $ 109,900 $ 140,800 Senior notes, due 2021-2027 85,714 92,857 Senior notes, due 2023-2030 350,000 350,000 Term loan, due 2022-2024 255,000 505,000 Euro loan, due 2023 308,642 128,219 Private shelf facility — 30,556 Development loans — 951 1,109,256 1,248,383 Less current maturities 38,043 168,738 Less unamortized debt issuance costs 3,261 4,241 Long-term maturities $ 1,067,952 $ 1,075,404 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Leases [Abstract] | |
Lease Cost and Additional Lease Information | Additional lease information is summarized below for the twelve months ended October 31, 2020: October 31, 2020 Finance Leases Operating Leases Amortization of right of use assets $ 7,087 $ — Interest 350 — Lease cost (1) 7,437 21,489 Short-term and variable lease cost (1) 1,478 3,011 Total lease cost $ 8,915 $ 24,500 (1) Lease costs are recorded in both Cost of sales and Selling and administrative expenses on the Consolidated Statements of Income. Supplemental cash flow information is summarized below for the twelve months ended October 31, 2020: Cash outflows for leases $ 7,605 $ 20,918 Weighted average remaining lease term (years) 4.65 10.47 Weighted average discount rate 2.39% 1.70% |
Finance Lease, Liability, Fiscal Year Maturity | The following table reconciles the undiscounted cash flows for five years and thereafter to the operating and finance lease liabilities recognized on the Consolidated Balance Sheet as of October 31, 2020. The reconciliation excludes short-term leases that are not recognized on the Consolidated Balance Sheet. Year: Finance Leases Operating Leases 2021 $ 6,226 $ 18,821 2022 4,332 17,367 2023 2,655 14,805 2024 999 13,163 2025 652 11,265 Later years 2,956 63,986 Total minimum lease payments 17,820 139,407 Amounts representing interest 1,366 13,172 Present value of minimum lease payments $ 16,454 $ 126,235 |
Lessee, Operating Lease, Liability, Maturity | The following table reconciles the undiscounted cash flows for five years and thereafter to the operating and finance lease liabilities recognized on the Consolidated Balance Sheet as of October 31, 2020. The reconciliation excludes short-term leases that are not recognized on the Consolidated Balance Sheet. Year: Finance Leases Operating Leases 2021 $ 6,226 $ 18,821 2022 4,332 17,367 2023 2,655 14,805 2024 999 13,163 2025 652 11,265 Later years 2,956 63,986 Total minimum lease payments 17,820 139,407 Amounts representing interest 1,366 13,172 Present value of minimum lease payments $ 16,454 $ 126,235 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present the classification of our assets and liabilities measured at fair value on a recurring basis: October 31, 2020 Total Level 1 Level 2 Level 3 Assets: Foreign currency forward contracts (a) $ 2,700 $ — $ 2,700 $ — Total assets at fair value $ 2,700 $ — $ 2,700 $ — Liabilities: Deferred compensation plans (b) $ 12,304 $ — $ 12,304 $ — Foreign currency forward contracts (a) 5,937 — 5,937 — Total liabilities at fair value $ 18,241 $ — $ 18,241 $ — October 31, 2019 Total Level 1 Level 2 Level 3 Assets: Foreign currency forward contracts (a) $ 5,042 $ — $ 5,042 $ — Total assets at fair value $ 5,042 $ — $ 5,042 $ — Liabilities: Deferred compensation plans (b) $ 11,850 $ — $ 11,850 $ — Foreign currency forward contracts (a) 2,381 — 2,381 — Total liabilities at fair value $ 14,231 $ — $ 14,231 $ — (a) We enter into foreign currency forward contracts to reduce the risk of foreign currency exposures resulting from receivables, payables, intercompany receivables, intercompany payables and loans denominated in foreign currencies. Foreign exchange contracts are valued using market exchange rates. These foreign exchange contracts are not designated as hedges. (b) Executive officers and other highly compensated employees may defer up to 100 percent of their salary and annual cash incentive compensation and for executive officers, up to 90 percent of their long-term incentive compensation, into various non-qualified deferred compensation plans. Deferrals can be allocated to various market performance measurement funds. Changes in the value of compensation deferred under these plans are recognized each period based on the fair value of the underlying measurement funds. |
Carrying Amounts and Fair Values of Financial Instruments, Other than Cash and Cash Equivalents, Receivables and Accounts Payable | The carrying values of cash and cash equivalents, receivables and accounts payable approximate fair value due to the short-term nature of these instruments. 2020 2019 Carrying Fair Value Carrying Fair Value Long-term debt (including current portion) $ 1,105,995 $ 1,170,073 $ 1,244,142 $ 1,278,142 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Investments, All Other Investments [Abstract] | |
Outstanding Currency, Forward Exchange Contracts | The following table summarizes, by currency, the contracts outstanding at October 31, 2020 and 2019: Notional Amounts Sell Buy October 31, 2020 contract amounts: Euro $ 127,849 $ 259,510 Pound sterling 36,943 71,380 Japanese yen 23,262 41,133 Australian dollar 179 9,084 Hong Kong dollar 59,459 81,199 Singapore dollar 1,102 17,350 Others 6,985 73,310 Total $ 255,779 $ 552,966 October 31, 2019 contract amounts: Euro $ 264,661 $ 107,598 Pound sterling 32,600 48,867 Japanese yen 29,397 51,217 Australian dollar 168 7,767 Hong Kong dollar 189 135,862 Singapore dollar 1,108 15,684 Others 4,485 66,349 Total $ 332,608 $ 433,344 |
Capital Shares (Tables)
Capital Shares (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Equity [Abstract] | |
Capital Shares | Common shares repurchased as part of publicly announced programs during 2020, 2019 and 2018 were as follows: Year Number Total Average 2020 303 38,138 $ 125.70 2019 949 114,790 $ 121.01 2018 145 18,939 $ 130.21 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summarized Activity Related to Stock Options | The following table summarizes activity related to stock options during 2020: Number of Weighted˗Average Aggregate Weighted˗Average Outstanding at October 31, 2019 1,787 $ 97.74 Granted 391 $ 166.38 Exercised (644) $ 78.91 Forfeited or expired (47) $ 145.52 Outstanding at October 31, 2020 1,487 $ 122.45 $ 105,536 7.0 years Expected to vest 845 $ 141.28 $ 44,065 8.1 years Exercisable at October 31, 2020 632 $ 96.79 $ 61,104 5.5 years |
Summarized Information on Currently Outstanding Options | Summarized information on currently outstanding options follows: Range of Exercise Price $43 - $90 $91 - $140 $141 - $190 Number outstanding 279 844 364 Weighted-average remaining contractual life, in years 4.0 7.1 9.1 Weighted-average exercise price $ 70.40 $ 120.56 $ 166.66 Number exercisable 279 352 1 Weighted-average exercise price $ 70.40 $ 117.43 $ 165.21 |
Fair Value Assumptions of Stock Options | The fair value of each option grant was estimated at the date of grant using the Black-Scholes option-pricing model with the following assumptions: 2020 2019 2018 Expected volatility 24.5%-30.5% 24.1%-24.5% 24.0%-26.7% Expected dividend yield 0.87%-1.16% 1.04% 0.97% Risk-free interest rate 0.44%-1.69% 2.84%-2.95% 2.09%-2.20% Expected life of the option (in years) 5.3-6.3 5.3-6.2 5.4-6.2 |
Summarized Activity Related to Restricted Stock | The following table summarizes activity related to restricted shares during 2020: Number of Weighted˗Average Restricted at October 31, 2019 66 $ 126.83 Granted 27 $ 170.94 Forfeited (7) $ 135.43 Vested (28) $ 121.01 Restricted at October 31, 2020 58 $ 148.75 |
Summarized Activity Related to Restricted Stock Units | The following table summarizes activity related to restricted share units in 2020: Number of Weighted˗Average Grant Date Fair Restricted share units at October 31, 2019 — $ — Granted 7 $ 160.68 Vested (7) $ 160.68 Restricted share units at October 31, 2020 — $ — |
Summarized Activity Related to Director Deferred Compensation Shares | The following table summarizes activity related to director deferred compensation share equivalent units during 2020: Number of Weighted˗Average Outstanding at October 31, 2019 114 $ 55.52 Restricted stock units vested 5 $ 161.09 Dividend equivalents 1 $ 169.43 Outstanding at October 31, 2020 120 $ 60.81 |
Operating Segments and Geogra_2
Operating Segments and Geographic Area Data (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Segment Reporting [Abstract] | |
Reportable Segments | The following table presents information about our reportable segments: Industrial Precision Solutions Advanced Technology Solutions Corporate Total Year ended October 31, 2020 Net external sales $ 1,143,423 $ 977,677 $ — $ 2,121,100 Depreciation and amortization 38,939 64,543 9,820 113,302 Operating profit (loss) 208,028 191,602 (50,085) 349,545 Identifiable assets (b) 882,946 1,849,391 948,048 (a) 3,680,385 Property, plant and equipment expenditures 18,798 31,737 — 50,535 Year ended October 31, 2019 Net external sales $ 1,208,376 $ 985,850 $ — $ 2,194,226 Depreciation and amortization 38,333 62,836 9,075 110,244 Operating profit (loss) 329,054 205,609 (51,550) 483,113 Identifiable assets (b) 997,460 1,740,259 782,188 (a) 3,519,907 Property, plant and equipment expenditures 30,400 26,010 7,834 64,244 Year ended October 31, 2018 Net external sales $ 1,215,302 $ 1,039,366 $ — $ 2,254,668 Depreciation and amortization 37,763 62,594 8,050 108,407 Operating profit (loss) 315,048 244,880 (57,349) 502,579 Identifiable assets (b) 951,784 1,713,404 763,734 (a) 3,428,922 Property, plant and equipment expenditures 55,457 16,205 18,128 89,790 (a) Corporate assets are principally cash and cash equivalents, deferred income taxes, leases, headquarter facilities, the major portion of our enterprise management system, and intangible assets. Includes assets held for sale, see Note 4. (b) Operating segment identifiable assets include notes and accounts receivable net of customer advance payments and allowance for doubtful accounts, inventories net of reserves, property, plant and equipment net of accumulated depreciation and goodwill. |
Sales and Long-lived Asset Information by Geographic Regions | We have significant sales and long-lived assets in the following geographic areas: 2020 2019 2018 Net external sales United States $ 755,642 $ 758,383 $ 720,832 Americas 141,473 167,661 158,837 Europe 536,636 571,596 622,108 Japan 126,601 126,756 161,771 Asia Pacific 560,748 569,830 591,120 Total net external sales $ 2,121,100 $ 2,194,226 $ 2,254,668 Long-lived assets United States $ 329,390 $ 286,894 $ 279,437 Americas 2,307 1,948 2,158 Europe 69,854 44,041 41,663 Japan 22,733 6,169 5,492 Asia Pacific 56,459 59,843 57,916 Total long-lived assets $ 480,743 $ 398,895 $ 386,666 |
Reconciliation of Segment Operating Profit to Consolidated Income Before Income Taxes | A reconciliation of total segment operating profit to total consolidated income before income taxes is as follows: 2020 2019 2018 Total profit for reportable segments $ 349,545 $ 483,113 $ 502,579 Interest expense (32,160) (47,145) (49,576) Interest and investment income 1,681 1,844 1,384 Other-net (17,577) (6,708) (5,868) Income before income taxes $ 301,489 $ 431,104 $ 448,519 |
Summary of Reconciliation of Consolidated Assets | A reconciliation of total assets for reportable segments to total consolidated assets is as follows: 2020 2019 2018 Total assets for reportable segments $ 3,680,385 $ 3,519,907 $ 3,428,922 Customer advance payments 42,323 41,131 38,997 Eliminations (48,052) (44,591) (46,907) Total consolidated assets $ 3,674,656 $ 3,516,447 $ 3,421,012 |
Supplemental Information for _2
Supplemental Information for the Statement of Cash Flows (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Supplemental Information for the Statement of Cash Flows | 2020 2019 2018 Cash operating activities: Interest paid $ 31,095 $ 50,578 $ 42,305 Income taxes paid 80,849 104,326 87,879 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | First Second Third Fourth 2020: Sales $ 494,916 $ 529,478 $ 538,181 $ 558,525 Gross margin 263,194 289,598 280,808 296,868 Net income 52,004 92,079 86,981 18,475 Earnings per share: Basic 0.90 1.60 1.51 0.32 Diluted 0.89 1.58 1.49 0.31 2019: Sales $ 497,910 $ 551,119 $ 559,746 $ 585,451 Gross margin 268,976 301,529 302,623 318,975 Net income 48,567 91,923 93,928 102,673 Earnings per share: Basic 0.84 1.60 1.64 1.79 Diluted 0.83 1.58 1.62 1.76 |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Significant Accounting Policies [Line Items] | |||
Ownership percentage in affiliates and joint ventures | 50.00% | ||
Advertising costs incurred | $ 7,174,000 | $ 10,479,000 | $ 12,451,000 |
Research and development costs incurred | $ 63,591,000 | $ 60,018,000 | $ 58,806,000 |
Percentage of research and development expenses on sales | 3.00% | 2.70% | 2.60% |
Periods of performance considered for calculating compensation expense | 3 years | ||
Cost percentage of inventory under LIFO method | 19.00% | 19.00% | |
Consolidated inventories under FIFO method | $ 4,545,000 | $ 6,145,000 | |
Interest charges capitalized | $ 0 | $ 0 | $ 0 |
Product warranty period | 1 year | ||
Maximum | |||
Significant Accounting Policies [Line Items] | |||
Liquid instruments with maturity period | 90 days | ||
Stock Options | |||
Significant Accounting Policies [Line Items] | |||
Options for common shares excluded from computation of diluted earning per share (in shares) | 95,000 | 176,000 | 0 |
Significant Accounting Polici_5
Significant Accounting Policies - Useful Lives of Property, Plant and Equipment and Depreciation (Detail) | 12 Months Ended |
Oct. 31, 2020 | |
Minimum | Land improvements | |
Property Plant and Equipment [Line Items] | |
Useful lives of property, plant and equipment and depreciation | 15 years |
Minimum | Buildings | |
Property Plant and Equipment [Line Items] | |
Useful lives of property, plant and equipment and depreciation | 20 years |
Minimum | Machinery and equipment | |
Property Plant and Equipment [Line Items] | |
Useful lives of property, plant and equipment and depreciation | 3 years |
Minimum | Enterprise management system | |
Property Plant and Equipment [Line Items] | |
Useful lives of property, plant and equipment and depreciation | 5 years |
Maximum | Land improvements | |
Property Plant and Equipment [Line Items] | |
Useful lives of property, plant and equipment and depreciation | 25 years |
Maximum | Buildings | |
Property Plant and Equipment [Line Items] | |
Useful lives of property, plant and equipment and depreciation | 40 years |
Maximum | Machinery and equipment | |
Property Plant and Equipment [Line Items] | |
Useful lives of property, plant and equipment and depreciation | 18 years |
Maximum | Enterprise management system | |
Property Plant and Equipment [Line Items] | |
Useful lives of property, plant and equipment and depreciation | 13 years |
Significant Accounting Polici_6
Significant Accounting Policies - Weighted Average Useful Lives for Each Major Category of Amortizable Intangible Assets (Detail) | 12 Months Ended |
Oct. 31, 2020 | |
Patent/Technology Costs | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted average useful lives for each major category of amortizable intangible assets | 12 years |
Customer Relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted average useful lives for each major category of amortizable intangible assets | 14 years |
Noncompete Agreements | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted average useful lives for each major category of amortizable intangible assets | 4 years |
Trade Names | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted average useful lives for each major category of amortizable intangible assets | 15 years |
Significant Accounting Polici_7
Significant Accounting Policies - Summary of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income (loss), Beginning balance | $ (231,881) | ||
Pension and postretirement plan changes, net of tax | (7,147) | ||
Currency translation losses | 12,910 | $ 3,710 | $ (28,619) |
Accumulated other comprehensive loss, Ending balance | (226,118) | (231,881) | |
Pension and postretirement plan changes, tax | (2,404) | ||
Cumulative Translation Adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income (loss), Beginning balance | (53,332) | ||
Currency translation losses | 12,910 | ||
Accumulated other comprehensive loss, Ending balance | (40,422) | (53,332) | |
Pension And Postretirement Benefit Plan Adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income (loss), Beginning balance | (178,549) | ||
Pension and postretirement plan changes, net of tax | (7,147) | ||
Accumulated other comprehensive loss, Ending balance | $ (185,696) | $ (178,549) |
Significant Accounting Polici_8
Significant Accounting Policies - Reconciliation of Product Warranty Liability (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Accounting Policies [Abstract] | ||
Balance at beginning of year | $ 11,006 | $ 12,195 |
Accruals for warranties | 11,662 | 9,670 |
Warranty payments | (12,330) | (10,881) |
Currency adjustments | 212 | 22 |
Balance at end of year | $ 10,550 | $ 11,006 |
Recently Issued Accounting St_2
Recently Issued Accounting Standards - Additional Information (Detail) - USD ($) | Oct. 31, 2020 | Oct. 31, 2019 | Aug. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating right of use lease assets | $ 122,125,000 | $ 0 | |
Operating Lease, Liability | 126,235,000 | ||
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating right of use lease assets | 122,125,000 | 130,538,000 | |
Operating Lease, Liability | $ 126,235,000 | $ 134,853,000 | |
New Accounting Guidance Issued and Not Yet Adopted | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Defined benefit plan effect of percentage change in assumed health care cost trend rates | 1.00% |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 01, 2020 | Jun. 01, 2020 | Oct. 17, 2018 | Jan. 02, 2018 | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 |
Business Acquisition [Line Items] | |||||||
Acquisition of businesses, net of cash acquired | $ 142,414 | $ 12,486 | $ 50,586 | ||||
Goodwill | 1,713,354 | 1,614,739 | 1,608,018 | ||||
Advanced Technology Solutions | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | $ 1,297,492 | $ 1,203,278 | $ 1,194,969 | ||||
Customer Relationships | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets amortization period | 14 years | ||||||
Trade Names | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets amortization period | 15 years | ||||||
Non-compete Agreements | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets amortization period | 4 years | ||||||
vivaMOS Ltd. | 2020 Acquisition | |||||||
Business Acquisition [Line Items] | |||||||
Acquired percent of the outstanding shares | 100.00% | ||||||
Acquisition of businesses, net of cash acquired | $ 17,154 | ||||||
Cash acquired from business acquisition | 158 | ||||||
Goodwill | 14,394 | ||||||
Identifiable intangible assets | 4,040 | ||||||
vivaMOS Ltd. | Technology-Based Intangible Assets | 2020 Acquisition | |||||||
Business Acquisition [Line Items] | |||||||
Identifiable intangible assets | $ 3,900 | ||||||
Intangible assets amortization period | 10 years | ||||||
vivaMOS Ltd. | Non-compete Agreements | 2020 Acquisition | |||||||
Business Acquisition [Line Items] | |||||||
Identifiable intangible assets | $ 140 | ||||||
Intangible assets amortization period | 3 years | ||||||
Fluortek Inc | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition of businesses, net of cash acquired | $ 125,260 | ||||||
Cash acquired from business acquisition | $ 515 | ||||||
Fluortek Inc | 2020 Acquisition | |||||||
Business Acquisition [Line Items] | |||||||
Acquired percent of the outstanding shares | 100.00% | ||||||
Acquisition of business, earn-out liability | $ 19,843 | ||||||
Goodwill | 76,047 | ||||||
Identifiable intangible assets | 29,370 | ||||||
Fluortek Inc | Customer Relationships | 2020 Acquisition | |||||||
Business Acquisition [Line Items] | |||||||
Identifiable intangible assets | $ 19,700 | ||||||
Intangible assets amortization period | 12 years | ||||||
Fluortek Inc | Trade Names | 2020 Acquisition | |||||||
Business Acquisition [Line Items] | |||||||
Identifiable intangible assets | $ 1,500 | ||||||
Intangible assets amortization period | 10 years | ||||||
Fluortek Inc | Technology-Based Intangible Assets | 2020 Acquisition | |||||||
Business Acquisition [Line Items] | |||||||
Identifiable intangible assets | $ 7,400 | ||||||
Intangible assets amortization period | 10 years | ||||||
Fluortek Inc | Non-compete Agreements | 2020 Acquisition | |||||||
Business Acquisition [Line Items] | |||||||
Identifiable intangible assets | $ 770 | ||||||
Intangible assets amortization period | 5 years | ||||||
Cladach Nua Teoranta | 2018 Acquisition | |||||||
Business Acquisition [Line Items] | |||||||
Acquired percent of the outstanding shares | 100.00% | ||||||
Acquisition of businesses, net of cash acquired | $ 5,236 | ||||||
Acquisition of business, earn-out liability | 1,131 | ||||||
Goodwill | 3,776 | ||||||
Identifiable intangible assets | $ 697 | ||||||
Sonoscan, Inc. | 2018 Acquisition | |||||||
Business Acquisition [Line Items] | |||||||
Acquired percent of the outstanding shares | 100.00% | ||||||
Acquisition of businesses, net of cash acquired | $ 46,018 | ||||||
Cash acquired from business acquisition | 655 | ||||||
Goodwill | 22,775 | ||||||
Identifiable intangible assets | $ 7,910 |
Discontinued Operations and D_2
Discontinued Operations and Disposal Groups - Asset and Liabilities of the Core Components product line classified as held for sale (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Oct. 31, 2019 |
Disposal Group, Including Discontinued Operation, Liabilities [Abstract] | ||
Liabilities held for sale | $ 13,148 | $ 0 |
Discontinued Operations, Held-for-sale | ||
Disposal Group, Including Discontinued Operation, Assets [Abstract] | ||
Receivables - net | 14,327 | |
Inventories - net | 9,854 | |
Prepaid expenses and other current assets | 696 | |
Property, plant and equipment - net | 58,950 | |
Other assets | 23,159 | |
Impairment on carrying value | (87,371) | |
Assets held for sale | 19,615 | |
Disposal Group, Including Discontinued Operation, Liabilities [Abstract] | ||
Accounts payable | 4,625 | |
Accrued liabilities | 3,352 | |
Other liabilities | 5,171 | |
Liabilities held for sale | $ 13,148 |
Discontinued Operations and D_3
Discontinued Operations and Disposal Groups - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |||
Impairment loss on assets held for sale | $ 87,371 | $ 0 | $ 0 |
Details of Consoildated Balance
Details of Consoildated Balance Sheet - Details of Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Oct. 31, 2020 | Oct. 31, 2019 |
Receivables: | ||
Accounts | $ 445,360 | $ 506,318 |
Notes | 4,592 | 3,980 |
Other | 30,966 | 30,268 |
Receivables, total | 480,918 | 540,566 |
Allowance for doubtful accounts | (9,045) | (9,801) |
Receivables-net | 471,873 | 530,765 |
Inventories: | ||
Raw materials and component parts | 94,630 | 102,044 |
Work-in-process | 44,403 | 42,904 |
Finished goods | 183,860 | 183,973 |
Inventories gross | 322,893 | 328,921 |
Obsolescence and other reserves | (41,315) | (39,377) |
LIFO reserve | (4,545) | (6,145) |
Inventories net | 277,033 | 283,399 |
Property, plant and equipment: | ||
Property, plant and equipment gross | 849,809 | 878,409 |
Accumulated depreciation and amortization | (491,191) | (479,514) |
Property, plant and equipment - net | 358,618 | 398,895 |
Accrued liabilities: | ||
Salaries and other compensation | 52,260 | 57,773 |
Pension and retirement | 10,282 | 9,993 |
Taxes other than income taxes | 13,346 | 8,606 |
Customer commissions | 9,158 | 9,030 |
Other | 82,837 | 76,253 |
Accrued liabilities total | 167,883 | 161,655 |
Land | ||
Property, plant and equipment: | ||
Property, plant and equipment gross | 8,816 | 10,468 |
Land improvements | ||
Property, plant and equipment: | ||
Property, plant and equipment gross | 4,611 | 4,390 |
Buildings | ||
Property, plant and equipment: | ||
Property, plant and equipment gross | 253,621 | 256,195 |
Machinery and equipment | ||
Property, plant and equipment: | ||
Property, plant and equipment gross | 464,171 | 489,864 |
Enterprise management system | ||
Property, plant and equipment: | ||
Property, plant and equipment gross | 56,103 | 53,020 |
Construction-in-progress | ||
Property, plant and equipment: | ||
Property, plant and equipment gross | 29,897 | 34,944 |
Leased property under capitalized leases | ||
Property, plant and equipment: | ||
Property, plant and equipment gross | $ 32,590 | $ 29,528 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Summary of Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Goodwill [Line Items] | ||
Beginning balance | $ 1,614,739 | $ 1,608,018 |
Acquisitions | 90,441 | 9,225 |
Other | (453) | |
Currency effect | 8,627 | (2,504) |
Ending balance | 1,713,354 | 1,614,739 |
Industrial Precision Solutions | ||
Goodwill [Line Items] | ||
Beginning balance | 411,461 | 413,049 |
Other | (453) | |
Currency effect | 4,854 | (1,588) |
Ending balance | 415,862 | 411,461 |
Advanced Technology Solutions | ||
Goodwill [Line Items] | ||
Beginning balance | 1,203,278 | 1,194,969 |
Acquisitions | 90,441 | 9,225 |
Other | ||
Currency effect | 3,773 | (916) |
Ending balance | $ 1,297,492 | $ 1,203,278 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Goodwill [Line Items] | |||
Goodwill accumulated impairment loss | $ 232,789 | $ 232,789 | |
Intangible assets, amortization expense | 56,979 | 54,790 | $ 55,448 |
Advanced Technology Solutions | |||
Goodwill [Line Items] | |||
Goodwill accumulated impairment loss | 229,173 | 229,173 | |
Industrial Coating Systems | |||
Goodwill [Line Items] | |||
Goodwill accumulated impairment loss | $ 3,616 | $ 3,616 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Summary of Intangible Assets Subject to Amortization (Detail) - USD ($) $ in Thousands | Oct. 31, 2020 | Oct. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Carrying Amount | $ 722,674 | $ 744,337 |
Accumulated Amortization | 315,088 | 298,762 |
Net Book Value | 407,586 | 445,575 |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Carrying Amount | 483,568 | 480,007 |
Accumulated Amortization | 193,617 | 173,996 |
Net Book Value | 289,951 | 306,011 |
Patent/Technology Costs | ||
Finite-Lived Intangible Assets [Line Items] | ||
Carrying Amount | 153,555 | 154,735 |
Accumulated Amortization | 76,934 | 71,663 |
Net Book Value | 76,621 | 83,072 |
Trade Names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Carrying Amount | 74,240 | 96,655 |
Accumulated Amortization | 34,693 | 41,303 |
Net Book Value | 39,547 | 55,352 |
Non-compete Agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Carrying Amount | 9,908 | 11,540 |
Accumulated Amortization | 8,444 | 10,406 |
Net Book Value | 1,464 | 1,134 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Carrying Amount | 1,403 | 1,400 |
Accumulated Amortization | 1,400 | 1,394 |
Net Book Value | $ 3 | $ 6 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Estimated Amortization Expense (Detail) $ in Thousands | Oct. 31, 2020USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Estimated Amortization Expense, 2020 | $ 50,576 |
Estimated Amortization Expense, 2021 | 46,685 |
Estimated Amortization Expense, 2022 | 45,697 |
Estimated Amortization Expense, 2023 | 40,815 |
Estimated Amortization Expense, 2024 | $ 39,115 |
Retirement, Pension and Other_3
Retirement, Pension and Other Postretirement Plans - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan vesting period | 3 years | ||
Expenses on retirement plan | $ 20,265 | $ 22,573 | $ 22,634 |
Retiree eligible age | 65 years | ||
Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of target rate in return seeking assets | 30.00% | ||
Debt securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of target rate in return seeking assets | 70.00% | ||
Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Method used to amortize net gains and losses, description | Net actuarial gains or losses are amortized to expense on a plan-by-plan basis when they exceed the accounting corridor, which is set at 10 percent of the greater of the plan assets or benefit obligations. | ||
Accounting corridor, set percentage of greater of plan assets or benefit obligations | 10.00% | ||
Employer contribution in next fiscal year | $ 43,721 | ||
Pension Plans | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Settlement loss | $ (2,508) | 0 | 0 |
Percentage of World wide pension assets | 92.00% | ||
Pension Plans | International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Settlement loss | $ 0 | (470) | (252) |
Percentage of World wide pension assets | 8.00% | ||
Retirement Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Method used to amortize net gains and losses, description | Net actuarial gains or losses are amortized to expense on a plan-by-plan basis when they exceed the accounting corridor, which is set at 10 percent of the greater of the plan assets or benefit obligations. | ||
Accounting corridor, set percentage of greater of plan assets or benefit obligations | 10.00% | ||
Employer contribution in next fiscal year | $ 2,800 | ||
Due to Lump Sum Retirement Payments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Settlement loss | $ (2,508) | $ (470) | $ (252) |
Retirement, Pension and Other_4
Retirement, Pension and Other Postretirement Plans - Reconciliation of the Benefit Obligations, Plan Assets, Accrued Benefit Cost and the Amount Recognized in Financial Statements for Pension Plans (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Amounts recognized in accumulated other comprehensive (gain) loss: | |||
Accumulated other comprehensive loss | $ (466) | $ (482) | |
Pension Plans | United States | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 551,997 | 425,605 | |
Service cost | 20,635 | 14,587 | $ 13,052 |
Interest cost | 15,824 | 18,304 | 14,797 |
Settlements | (4,992) | 0 | |
Actuarial loss | 47,788 | 107,662 | |
Benefits paid | (15,484) | (14,161) | |
Benefit obligation at end of year | 615,768 | 551,997 | 425,605 |
Change in plan assets: | |||
Beginning balance | 448,931 | 361,073 | |
Actual return on plan assets | 41,712 | 76,700 | |
Company contributions | 40,083 | 25,319 | |
Settlements | (4,992) | 0 | |
Benefits paid | (15,484) | (14,161) | |
Ending balance | 510,250 | 448,931 | 361,073 |
Funded status at end of year | (105,518) | (103,066) | |
Amounts recognized in financial statements: | |||
Noncurrent asset | 3,162 | 2,171 | |
Accrued benefit liability | (5,211) | (6,435) | |
Long-term pension obligations | (103,469) | (98,802) | |
Total amount recognized in financial statements | (105,518) | (103,066) | |
Amounts recognized in accumulated other comprehensive (gain) loss: | |||
Net actuarial loss | 192,593 | 178,390 | |
Prior service credit | (16) | (100) | |
Accumulated other comprehensive loss | 192,577 | 178,290 | 130,627 |
Amounts expected to be recognized during next fiscal year: | |||
Amortization of net actuarial loss | 14,297 | 13,591 | |
Amortization of prior service credit | (81) | (84) | |
Total | 14,216 | 13,507 | |
Pension Plans | International | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 97,990 | 87,227 | |
Service cost | 2,099 | 1,933 | 2,048 |
Interest cost | 1,025 | 1,670 | 1,656 |
Participant contributions | 83 | 83 | |
Plan amendments | 0 | 186 | |
Settlements | 0 | (3,018) | |
Foreign currency exchange rate change | 2,814 | 106 | |
Actuarial loss | 2,729 | 11,852 | |
Benefits paid | (1,891) | (2,049) | |
Benefit obligation at end of year | 104,849 | 97,990 | 87,227 |
Change in plan assets: | |||
Beginning balance | 39,640 | 39,617 | |
Actual return on plan assets | 3,697 | 707 | |
Company contributions | 3,365 | 3,696 | |
Participant contributions | 83 | 83 | |
Settlements | 0 | (3,018) | |
Foreign currency exchange rate change | 582 | 604 | |
Benefits paid | (1,891) | (2,049) | |
Ending balance | 45,476 | 39,640 | 39,617 |
Funded status at end of year | (59,373) | (58,350) | |
Amounts recognized in financial statements: | |||
Noncurrent asset | 3,321 | 1,375 | |
Accrued benefit liability | (634) | (21) | |
Long-term pension obligations | (62,060) | (59,704) | |
Total amount recognized in financial statements | (59,373) | (58,350) | |
Amounts recognized in accumulated other comprehensive (gain) loss: | |||
Net actuarial loss | 32,097 | 33,826 | |
Prior service credit | (2,137) | (2,342) | |
Accumulated other comprehensive loss | 29,960 | 31,484 | 20,460 |
Amounts expected to be recognized during next fiscal year: | |||
Amortization of net actuarial loss | 3,049 | 2,945 | |
Amortization of prior service credit | (299) | (288) | |
Total | 2,750 | 2,657 | |
Retirement Plans | United States | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 88,660 | 72,010 | |
Service cost | 666 | 545 | 709 |
Interest cost | 2,345 | 2,984 | 2,557 |
Participant contributions | 611 | 684 | |
Actuarial loss | (2,024) | 15,101 | |
Benefits paid | (2,613) | (2,664) | |
Benefit obligation at end of year | 87,645 | 88,660 | 72,010 |
Change in plan assets: | |||
Beginning balance | 0 | 0 | |
Company contributions | 2,002 | 1,980 | |
Participant contributions | 611 | 684 | |
Benefits paid | (2,613) | (2,664) | |
Ending balance | 0 | 0 | 0 |
Funded status at end of year | (87,645) | (88,660) | |
Amounts recognized in financial statements: | |||
Accrued benefit liability | (2,835) | (2,740) | |
Long-term pension obligations | (84,810) | (85,920) | |
Total amount recognized in financial statements | (87,645) | (88,660) | |
Amounts recognized in accumulated other comprehensive (gain) loss: | |||
Net actuarial loss | 25,614 | 28,992 | |
Prior service credit | 0 | (16) | |
Accumulated other comprehensive loss | 25,614 | 28,976 | 14,483 |
Amounts expected to be recognized during next fiscal year: | |||
Amortization of net actuarial loss | 1,388 | 1,674 | |
Amortization of prior service credit | 0 | (16) | |
Total | 1,388 | 1,658 | |
Retirement Plans | International | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 454 | 512 | |
Service cost | 15 | 16 | 20 |
Interest cost | 13 | 19 | 20 |
Foreign currency exchange rate change | (5) | (1) | |
Actuarial loss | (26) | (86) | |
Benefits paid | (6) | (6) | |
Benefit obligation at end of year | 445 | 454 | 512 |
Change in plan assets: | |||
Beginning balance | 0 | 0 | |
Company contributions | 6 | 6 | |
Benefits paid | (6) | (6) | |
Ending balance | 0 | 0 | 0 |
Funded status at end of year | (445) | (454) | |
Amounts recognized in financial statements: | |||
Accrued benefit liability | (6) | (6) | |
Long-term pension obligations | (439) | (448) | |
Total amount recognized in financial statements | (445) | (454) | |
Amounts recognized in accumulated other comprehensive (gain) loss: | |||
Net actuarial loss | (466) | (482) | |
Accumulated other comprehensive loss | (466) | (482) | $ (423) |
Amounts expected to be recognized during next fiscal year: | |||
Amortization of net actuarial loss | (39) | (37) | |
Total | $ (39) | $ (37) |
Retirement, Pension and Other_5
Retirement, Pension and Other Postretirement Plans - Summary of Changes in Accumulated Other Comprehensive (Gain) Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Balance at beginning of year | $ (482) | |
Balance at end of year | (466) | $ (482) |
Pension Plans | United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Balance at beginning of year | 178,290 | 130,627 |
Net loss arising during the year | 30,743 | 54,304 |
Net gain recognized during the year | (14,032) | (6,702) |
Prior service credit recognized during the year | 84 | 61 |
Settlement loss | (2,508) | 0 |
Balance at end of year | 192,577 | 178,290 |
Pension Plans | International | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Balance at beginning of year | 31,484 | 20,460 |
Net loss arising during the year | 305 | 12,737 |
Prior service cost arising during the year | 0 | 186 |
Net gain recognized during the year | (2,972) | (1,696) |
Prior service credit recognized during the year | 290 | 303 |
Settlement loss | 0 | (470) |
Exchange rate effect during the year | 853 | (36) |
Balance at end of year | 29,960 | 31,484 |
Retirement Plans | United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Balance at beginning of year | 28,976 | 14,483 |
Net loss arising during the year | (2,024) | 15,101 |
Net gain recognized during the year | (1,355) | (634) |
Prior service credit recognized during the year | 17 | 26 |
Balance at end of year | 25,614 | 28,976 |
Retirement Plans | International | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Balance at beginning of year | (482) | (423) |
Net loss arising during the year | (26) | (86) |
Net gain recognized during the year | 36 | 28 |
Exchange rate effect during the year | 6 | (1) |
Balance at end of year | $ (466) | $ (482) |
Retirement, Pension and Other_6
Retirement, Pension and Other Postretirement Plans - Accumulated Benefit Obligation (Detail) - Pension Plans - USD ($) $ in Thousands | Oct. 31, 2020 | Oct. 31, 2019 |
United States | ||
For all plans: | ||
Accumulated benefit obligation | $ 571,036 | $ 513,861 |
For plans with benefit obligations in excess of plan assets: | ||
Projected benefit obligation | 553,403 | 491,816 |
Accumulated benefit obligation | 508,671 | 453,681 |
Fair value of plan assets | 444,723 | 386,580 |
International | ||
For all plans: | ||
Accumulated benefit obligation | 96,252 | 83,439 |
For plans with benefit obligations in excess of plan assets: | ||
Projected benefit obligation | 92,775 | 86,534 |
Accumulated benefit obligation | 85,189 | 73,293 |
Fair value of plan assets | $ 30,797 | $ 27,769 |
Retirement, Pension and Other_7
Retirement, Pension and Other Postretirement Plans - Net Periodic Benefit Cost (Detail) - Pension Plans - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 20,635 | $ 14,587 | $ 13,052 |
Interest cost | 15,824 | 18,304 | 14,797 |
Expected return on plan assets | (24,667) | (23,341) | (21,964) |
Amortization of prior service cost (credit) | (84) | (61) | (22) |
Amortization of net actuarial loss | 14,032 | 6,702 | 9,479 |
Settlement loss | 2,508 | 0 | 0 |
Total benefit cost | 28,248 | 16,191 | 15,342 |
International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 2,099 | 1,933 | 2,048 |
Interest cost | 1,025 | 1,670 | 1,656 |
Expected return on plan assets | (1,273) | (1,592) | (1,512) |
Amortization of prior service cost (credit) | (290) | (303) | (316) |
Amortization of net actuarial loss | 2,972 | 1,696 | 2,115 |
Settlement loss | 0 | 470 | 252 |
Total benefit cost | $ 4,533 | $ 3,874 | $ 4,243 |
Retirement, Pension and Other_8
Retirement, Pension and Other Postretirement Plans - Weighted Average Assumptions Representing the Rates Used to Develop the Actuarial Present Value of Projected Benefit Obligation and the Net Periodic Benefit Costs (Detail) | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Pension Plans | United States | |||
Assumptions used to determine benefit obligations at October 31: | |||
Discount rate | 2.85% | 3.25% | 4.53% |
Rate of compensation increase | 4.00% | 4.00% | 3.90% |
Assumptions used to determine net benefit costs for the years ended October 31: | |||
Discount rate - benefit obligation | 3.25% | 4.53% | 3.80% |
Discount rate - service cost | 3.56% | 4.70% | 4.01% |
Discount rate - interest cost | 2.78% | 4.15% | 3.31% |
Expected return on plan assets | 5.75% | 6.00% | 6.00% |
Rate of compensation increase | 4.00% | 3.90% | 3.61% |
Pension Plans | International | |||
Assumptions used to determine benefit obligations at October 31: | |||
Discount rate | 1.01% | 1.26% | 2.14% |
Rate of compensation increase | 2.69% | 3.12% | 3.12% |
Assumptions used to determine net benefit costs for the years ended October 31: | |||
Discount rate - benefit obligation | 1.26% | 2.14% | 2.07% |
Discount rate - service cost | 1.12% | 1.82% | 1.76% |
Discount rate - interest cost | 1.05% | 1.90% | 1.83% |
Expected return on plan assets | 3.22% | 3.96% | 3.91% |
Rate of compensation increase | 3.12% | 3.12% | 3.13% |
Retirement Plans | United States | |||
Assumptions used to determine benefit obligations at October 31: | |||
Discount rate | 2.84% | 3.27% | 4.56% |
Health care cost trend rate | 3.40% | 3.62% | 3.75% |
Rate to which health care cost trend rate is assumed to incline/decline (ultimate trend rate) | 3.17% | 3.24% | 3.27% |
Year the rate reaches the ultimate trend rate | 2026 | 2026 | 2026 |
Assumptions used to determine net benefit costs for the years ended October 31: | |||
Discount rate - benefit obligation | 3.27% | 4.56% | 3.86% |
Discount rate - service cost | 3.61% | 4.77% | 4.11% |
Discount rate - interest cost | 2.79% | 4.18% | 3.39% |
Retirement Plans | International | |||
Assumptions used to determine benefit obligations at October 31: | |||
Discount rate | 2.94% | 3.03% | 3.88% |
Health care cost trend rate | 4.22% | 4.00% | 6.35% |
Rate to which health care cost trend rate is assumed to incline/decline (ultimate trend rate) | 4.05% | 4.05% | 3.50% |
Year the rate reaches the ultimate trend rate | 2040 | 2040 | 2037 |
Assumptions used to determine net benefit costs for the years ended October 31: | |||
Discount rate - benefit obligation | 3.03% | 3.88% | 3.52% |
Discount rate - service cost | 3.05% | 3.90% | 3.54% |
Discount rate - interest cost | 2.88% | 3.80% | 3.40% |
Retirement, Pension and Other_9
Retirement, Pension and Other Postretirement Plans - Allocation of Pension Plan Assets (Detail) - Pension Plans | Oct. 31, 2020 | Oct. 31, 2019 |
United States | ||
Allocation of pension plan assets | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 100.00% | 100.00% |
International | ||
Allocation of pension plan assets | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 100.00% | 100.00% |
Equity securities | United States | ||
Allocation of pension plan assets | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 11.00% | 11.00% |
Debt securities | United States | ||
Allocation of pension plan assets | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 49.00% | 53.00% |
Insurance contracts | International | ||
Allocation of pension plan assets | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 54.00% | 54.00% |
Pooled investment funds | United States | ||
Allocation of pension plan assets | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 39.00% | 35.00% |
Pooled investment funds | International | ||
Allocation of pension plan assets | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 44.00% | 45.00% |
Other | United States | ||
Allocation of pension plan assets | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 1.00% | 1.00% |
Other | International | ||
Allocation of pension plan assets | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 2.00% | 1.00% |
Retirement, Pension and Othe_10
Retirement, Pension and Other Postretirement Plans - Fair Values of Pension Plan Assets (Detail) - Pension Plans - USD ($) $ in Thousands | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 |
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 24,496 | $ 21,245 | $ 21,645 |
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 510,250 | 448,931 | 361,073 |
United States | Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 309,091 | 293,695 | |
United States | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 65,784 | 67,106 | |
United States | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 243,307 | 226,589 | |
International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 45,476 | 39,640 | 39,617 |
International | Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 25,255 | 21,686 | |
International | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 759 | 441 | |
International | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 24,496 | 21,245 | |
Cash | United States | Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,331 | 1,208 | |
Cash | United States | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,331 | 1,208 | |
Cash | International | Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 759 | 441 | |
Cash | International | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 759 | 441 | |
Money market funds | United States | Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5,059 | 5,566 | |
Money market funds | United States | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5,059 | 5,566 | |
Basic materials | United States | Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,750 | 2,318 | |
Basic materials | United States | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,750 | 2,318 | |
Consumer goods | United States | Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5,024 | 4,412 | |
Consumer goods | United States | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5,024 | 4,412 | |
Financial | United States | Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4,745 | 6,120 | |
Financial | United States | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4,745 | 6,120 | |
Healthcare | United States | Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4,518 | 4,460 | |
Healthcare | United States | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4,518 | 4,460 | |
Industrial goods | United States | Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,588 | 3,152 | |
Industrial goods | United States | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,588 | 3,152 | |
Technology | United States | Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5,706 | 5,064 | |
Technology | United States | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5,706 | 5,064 | |
Utilities | United States | Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 685 | 937 | |
Utilities | United States | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 685 | 937 | |
Mutual funds | United States | Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 24,266 | 19,674 | |
Mutual funds | United States | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 24,266 | 19,674 | |
U.S. Government | United States | Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 71,855 | 83,025 | |
U.S. Government | United States | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8,267 | 13,094 | |
U.S. Government | United States | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 63,588 | 69,931 | |
Corporate | United States | Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 173,046 | 151,607 | |
Corporate | United States | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 173,046 | 151,607 | |
Other | United States | Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6,673 | 5,051 | |
Other | United States | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6,673 | 5,051 | |
Insurance contracts | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 24,496 | 21,245 | $ 21,645 |
Insurance contracts | International | Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 24,496 | 21,245 | |
Insurance contracts | International | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 24,496 | 21,245 | |
Other | United States | Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 845 | 1,101 | |
Other | United States | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 845 | 1,101 | |
Real estate collective funds | United States | Investments Measured at Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 38,996 | 33,917 | |
Pooled investment funds | United States | Investments Measured at Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 162,163 | 121,319 | |
Pooled investment funds | International | Investments Measured at Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 20,221 | $ 17,954 |
Retirement, Pension and Othe_11
Retirement, Pension and Other Postretirement Plans - Changes in Level 3 plan assets (Detail) - Level 3 - Pension Plans - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning balance | $ 21,245 | $ 21,645 |
Assets held, end of year | 1,739 | 913 |
Assets sold during the period | 0 | 0 |
Purchases | 2,462 | 2,431 |
Sales | (1,495) | (4,102) |
Foreign currency translation | 545 | 358 |
Ending balance | 24,496 | 21,245 |
Insurance contracts | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning balance | 21,245 | 21,645 |
Assets held, end of year | 1,739 | 913 |
Assets sold during the period | 0 | 0 |
Purchases | 2,462 | 2,431 |
Sales | (1,495) | (4,102) |
Foreign currency translation | 545 | 358 |
Ending balance | $ 24,496 | $ 21,245 |
Retirement, Pension and Othe_12
Retirement, Pension and Other Postretirement Plans - Retiree Pension Benefit Payments (Detail) $ in Thousands | Oct. 31, 2020USD ($) |
Pension Plans | United States | |
Pension Plans Postretirement And Other Employee Benefits [Line Items] | |
2021 | $ 23,045 |
2022 | 20,262 |
2023 | 21,686 |
2024 | 23,213 |
2025 | 25,209 |
2026-2030 | 150,280 |
Pension Plans | International | |
Pension Plans Postretirement And Other Employee Benefits [Line Items] | |
2021 | 3,488 |
2022 | 3,042 |
2023 | 3,069 |
2024 | 3,527 |
2025 | 3,721 |
2026-2030 | 19,949 |
Retirement Plans | United States | |
Pension Plans Postretirement And Other Employee Benefits [Line Items] | |
2021 | 2,835 |
2022 | 3,047 |
2023 | 3,238 |
2024 | 3,444 |
2025 | 3,623 |
2026-2030 | 20,133 |
Retirement Plans | International | |
Pension Plans Postretirement And Other Employee Benefits [Line Items] | |
2021 | 6 |
2022 | 6 |
2023 | 6 |
2024 | 6 |
2025 | 6 |
2026-2030 | $ 46 |
Retirement, Pension and Othe_13
Retirement, Pension and Other Postretirement Plans - Net Postretirement Benefit Cost (Detail) - Retirement Plans - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 666 | $ 545 | $ 709 |
Interest cost | 2,345 | 2,984 | 2,557 |
Amortization of prior service credit | (17) | (26) | (99) |
Amortization of net actuarial (gain) loss | 1,355 | 634 | 1,079 |
Total benefit cost | 4,349 | 4,137 | 4,246 |
International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 15 | 16 | 20 |
Interest cost | 13 | 19 | 20 |
Amortization of net actuarial (gain) loss | (36) | (28) | (20) |
Total benefit cost | $ (8) | $ 7 | $ 20 |
Retirement, Pension and Othe_14
Retirement, Pension and Other Postretirement Plans - Defined Benefit Plan Effect of One Percentage Point Change in Assumed Health Care Cost Trend Rates and Discount Rate (Detail) - Retirement Plans $ in Thousands | 12 Months Ended |
Oct. 31, 2020USD ($) | |
United States | |
Pension Plans Postretirement And Other Employee Benefits [Line Items] | |
Effect on total net postretirement benefit cost components increase in 2020 | $ 431 |
Effect on postretirement obligation increase as of October 31, 2020 | 11,019 |
Effect on total net postretirement benefit cost components decrease in 2020 | (345) |
Effect on postretirement obligation decrease as of October 31, 2020 | (9,100) |
International | |
Pension Plans Postretirement And Other Employee Benefits [Line Items] | |
Effect on total net postretirement benefit cost components increase in 2020 | 7 |
Effect on postretirement obligation increase as of October 31, 2020 | 103 |
Effect on total net postretirement benefit cost components decrease in 2020 | (5) |
Effect on postretirement obligation decrease as of October 31, 2020 | $ (80) |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Current: | |||
U.S. federal | $ 19,265 | $ 40,012 | $ 39,837 |
Foreign | 45,657 | 51,590 | 63,522 |
State and local | 984 | 3,429 | 1,734 |
Total current | 65,906 | 95,031 | 105,093 |
Deferred: | |||
U.S. federal | (10,143) | 1,470 | (32,829) |
State and local | (1,023) | 633 | 891 |
Foreign | (2,790) | (3,121) | (2,011) |
Total deferred | (13,956) | (1,018) | (33,949) |
Income Tax Expense (Benefit) | $ 51,950 | $ 94,013 | $ 71,144 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jan. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | |
Income Tax [Line Items] | |||||
Earnings before income taxes of domestic operations | $ 120,054 | $ 222,435 | $ 192,643 | ||
U.S. federal corporate income tax rate | 21.00% | 21.00% | 23.34% | ||
Provisional tax expense (benefit) due to revaluation of tax assets and liabilities at reduced corporate tax rate | $ 4,866 | $ 15,661 | $ 4,866 | ||
Income Tax Expense (Benefit) on impairment charge | 15,254 | ||||
Earnings before income taxes of international operations | 181,435 | 208,669 | $ 255,877 | ||
Undistributed earnings aggregated | 1,045,389 | 1,101,736 | |||
Total unrecognized tax benefits | 6,717 | 2,909 | $ 2,891 | $ 3,781 | |
Total unrecognized tax benefits impact the effective tax rate | 5,998 | 2,429 | |||
Accrued interest expense related to unrecognized tax benefits | 2,179 | 593 | |||
Tax credit carryforwards | 8,565 | ||||
Tax credit carryforwards amount indefinite carryforward period | 7,644 | ||||
Capital loss carryforward | 24,227 | ||||
Indefinite carryforward period | 18,567 | ||||
Net change in the valuation allowance | 6,932 | $ 439 | |||
Valuation allowance relates to tax credits and loss carryforwards | 22,233 | ||||
2028-2029 | |||||
Income Tax [Line Items] | |||||
Tax credit carryforwards amount to expires | 921 | ||||
2020 through 2039 | |||||
Income Tax [Line Items] | |||||
Operating loss carryforwards | 88,613 | ||||
State | |||||
Income Tax [Line Items] | |||||
Operating loss carryforwards | 58,559 | ||||
Foreign | |||||
Income Tax [Line Items] | |||||
Operating loss carryforwards | $ 24,394 |
Income Taxes - Income Taxes Com
Income Taxes - Income Taxes Computed at the U.S. Statutory Rate and Income Tax (Detail) | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal income tax rate | 21.00% | 21.00% | 23.34% |
Transition tax | 0.00% | 1.46% | 6.16% |
Tax rate change deferred tax remeasurement | 0.00% | (10.94%) | |
Share-based and other compensation | (4.15%) | (0.55%) | (1.45%) |
Domestic production deduction | 0.00% | (0.82%) | |
Foreign tax rate variances, net of foreign tax credits | 1.51% | 1.16% | (0.46%) |
State and local taxes, net of federal income tax benefit | (0.01%) | 0.74% | 0.45% |
Amounts related to prior years | (0.04%) | (0.55%) | (0.21%) |
Foreign-Derived Intangible Income Deduction | (0.95%) | (1.51%) | |
Global Intangible Low-Taxed Income net of foreign tax credits | 0.97% | 0.85% | |
Other – net | (1.10%) | (0.79%) | (0.21%) |
Effective tax rate | 17.23% | 21.81% | 15.86% |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of year | $ 2,909 | $ 2,891 | $ 3,781 |
Additions based on tax positions related to the current year | 370 | 370 | 310 |
Additions for tax positions of prior years | 4,068 | 547 | 40 |
Reductions for tax positions of prior years | 0 | 0 | (120) |
Settlements | 137 | 0 | 0 |
Lapse of statute of limitations | (493) | (899) | (1,120) |
Balance at end of year | $ 6,717 | $ 2,909 | $ 2,891 |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Oct. 31, 2020 | Oct. 31, 2019 |
Deferred tax assets: | ||
Employee benefits | $ 70,838 | $ 73,025 |
Other accruals not currently deductible for taxes | 16,207 | 16,294 |
Tax credit and loss carryforwards | 20,268 | 18,074 |
Inventory adjustments | 8,757 | 5,269 |
Total deferred tax assets | 116,070 | 112,662 |
Valuation allowance | (22,233) | (15,301) |
Total deferred tax assets | 93,837 | 97,361 |
Deferred tax liabilities: | ||
Depreciation and amortization | 150,591 | 169,009 |
Other - net | 410 | 655 |
Total deferred tax liabilities | 151,001 | 169,664 |
Net deferred tax liabilities | $ (57,164) | $ (72,303) |
Bank Lines of Credit (Details)
Bank Lines of Credit (Details) - Foreign Bank Debt - USD ($) $ in Thousands | Oct. 31, 2020 | Oct. 31, 2019 |
Short-term Debt [Line Items] | ||
Maximum borrowings available under bank lines of credit (all foreign banks) | $ 74,766 | $ 79,930 |
Unused bank lines of credit | $ 74,766 | $ 79,930 |
Long-Term Debt - Long-Term Debt
Long-Term Debt - Long-Term Debt (Detail) - USD ($) $ in Thousands | Oct. 31, 2020 | Oct. 31, 2019 |
Debt Instrument [Line Items] | ||
Private shelf facility | $ 0 | $ 30,556 |
Development loans, due 2019-2026 | 0 | 951 |
Long-term Debt | 1,109,256 | 1,248,383 |
Less current maturities | 38,043 | 168,738 |
Less unamortized debt issuance costs | 3,261 | 4,241 |
Long-term maturities | 1,067,952 | 1,075,404 |
Senior notes, due 2021-2025 | ||
Debt Instrument [Line Items] | ||
Senior notes | 109,900 | 140,800 |
Senior notes, due 2021-2027 | ||
Debt Instrument [Line Items] | ||
Senior notes | 85,714 | 92,857 |
Senior notes, due 2023-2030 | ||
Debt Instrument [Line Items] | ||
Senior notes | 350,000 | 350,000 |
Term loan, due 2022-2024 | ||
Debt Instrument [Line Items] | ||
Term loan | 255,000 | 505,000 |
Euro loan, due 2023 | ||
Debt Instrument [Line Items] | ||
Euro loan | $ 308,642 | $ 128,219 |
Long-term Debt - Additional Inf
Long-term Debt - Additional Information (Detail) € in Thousands | 1 Months Ended | 12 Months Ended | |||
Oct. 31, 2020USD ($) | Apr. 30, 2019USD ($) | Oct. 31, 2020USD ($) | Mar. 31, 2020EUR (€) | Oct. 31, 2019USD ($) | |
Debt Instrument [Line Items] | |||||
Annual maturity of long term debt, 2021 | $ 38,043,000 | $ 38,043,000 | |||
Annual maturity of long term debt, 2022 | 80,642,000 | 80,642,000 | |||
Annual maturity of long term debt, 2023 | 439,285,000 | 439,285,000 | |||
Annual maturity of long term debt, 2024 | 315,643,000 | 315,643,000 | |||
Annual maturity of long term debt, 2025 | $ 85,643,000 | $ 85,643,000 | |||
Senior notes, due 2021-2025 | |||||
Debt Instrument [Line Items] | |||||
Remaining weighted average life of notes | 2 years 3 months 29 days | ||||
Weighted average interest rate for borrowings | 3.07% | 3.07% | |||
Senior notes, due 2021-2027 | |||||
Debt Instrument [Line Items] | |||||
Remaining weighted average life of notes | 3 years 10 months 28 days | ||||
Weighted average interest rate for borrowings | 3.06% | 3.06% | |||
Senior notes, due 2023-2030 | |||||
Debt Instrument [Line Items] | |||||
Remaining weighted average life of notes | 5 years 14 days | ||||
Weighted average interest rate for borrowings | 3.90% | 3.90% | |||
Term Loan Facility | Group of Banks | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, covenant compliance description | We were in compliance with all covenants at October 31, 2020 | ||||
Weighted average interest rate for borrowings | 0.83% | 0.83% | |||
Term loan | $ 255,000,000 | $ 605,000,000 | $ 255,000,000 | ||
Term Loan Due in September 2022 | Group of Banks | |||||
Debt Instrument [Line Items] | |||||
Term loan | 50,000,000 | ||||
Term Loan Due in March 2024 | Group of Banks | |||||
Debt Instrument [Line Items] | |||||
Term loan | 205,000,000 | ||||
Euro loan, due 2023 | Bank of America | |||||
Debt Instrument [Line Items] | |||||
Weighted average interest rate for borrowings | 0.71% | 0.71% | |||
Term Loan Due In March 2023 | Bank of America | Tranche One | |||||
Debt Instrument [Line Items] | |||||
Term loan | € | € 115,000 | ||||
Term Loan Due In March 2023 | Bank of America | Tranche Two | |||||
Debt Instrument [Line Items] | |||||
Term loan | € | € 150,000 | ||||
Revolving Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowings available under bank lines of credit (all foreign banks) | $ 850,000,000 | ||||
Credit facility, term | 5 years | ||||
Outstanding balance | $ 0 | $ 0 | $ 0 | ||
Debt instrument, covenant compliance description | We were in compliance with all covenants at October 31, 2020, and the amount we could borrow under the facility would not have been limited by any debt covenants. | ||||
Revolving Credit Agreement | Swing Line Loans | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowings available under bank lines of credit (all foreign banks) | $ 75,000,000 | ||||
Three Year Note Purchase And Private Shelf Agreement | |||||
Debt Instrument [Line Items] | |||||
Maximum credit facility | $ 200,000,000 | ||||
Long-term debt, term | 3 years | 3 years |
Leases - Lease Cost and Additio
Leases - Lease Cost and Additional Lease Information (Details) $ in Thousands | 12 Months Ended |
Oct. 31, 2020USD ($) | |
Lease, Cost [Abstract] | |
Amortization of right of use assets | $ 7,087 |
Interest | 350 |
Finance Lease, Cost | 7,437 |
Operating Lease, Cost | 21,489 |
Finance Leases, Short-Term and Variable Lease Cost | 1,478 |
Short-term and variable lease cost | 3,011 |
Finance Leases, Lease, Cost | 8,915 |
Total lease cost | $ 24,500 |
Supplemental Information for _3
Supplemental Information for the Statement of Cash Flows (Details) $ in Thousands | 12 Months Ended |
Oct. 31, 2020USD ($) | |
Lease, Cost [Abstract] | |
Finance Lease, Principal Payments | $ 7,605 |
Finance Lease, Weighted Average Remaining Lease Term | 4 years 7 months 24 days |
Finance Lease, Weighted Average Discount Rate, Percent | 2.39% |
Operating Lease, Payments | $ 20,918 |
Operating Lease, Weighted Average Remaining Lease Term | 10 years 5 months 19 days |
Operating Lease, Weighted Average Discount Rate, Percent | 1.70% |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2020 | |
Lessee, Lease, Description [Line Items] | |||
Rent expense for all operating leases | $ 22,061 | $ 19,131 | |
Finance Lease, Right-of-Use Asset, after Accumulated Amortization | $ 15,659 | ||
Property, plant and equipment - net | 398,895 | $ 358,618 | |
Assets Held under Capital Leases | |||
Lessee, Lease, Description [Line Items] | |||
Property, plant and equipment - net | $ 14,588 |
Leases - Finance and Operating
Leases - Finance and Operating Lease Maturity (Details) $ in Thousands | Oct. 31, 2020USD ($) |
Finance Leases, After Adoption of 842: | |
2021 | $ 6,226 |
2022 | 4,332 |
2023 | 2,655 |
2024 | 999 |
2025 | 652 |
Later years | 2,956 |
Total minimum lease payments | 17,820 |
Amounts representing interest | 1,366 |
Present value of minimum lease payments | 16,454 |
Operating Leases, After Adoption of 842: | |
2021 | 18,821 |
2022 | 17,367 |
2023 | 14,805 |
2024 | 13,163 |
2025 | 11,265 |
Later years | 63,986 |
Total minimum lease payments | 139,407 |
Amounts representing interest | 13,172 |
Present value of minimum lease payments | $ 126,235 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Recurring - USD ($) $ in Thousands | Oct. 31, 2020 | Oct. 31, 2019 |
Assets: | ||
Foreign currency forward contracts | $ 2,700 | $ 5,042 |
Total assets at fair value | 2,700 | 5,042 |
Liabilities: | ||
Deferred compensation plans | 12,304 | 11,850 |
Foreign currency forward contracts | 5,937 | 2,381 |
Total liabilities at fair value | 18,241 | 14,231 |
Level 2 | ||
Assets: | ||
Foreign currency forward contracts | 2,700 | 5,042 |
Total assets at fair value | 2,700 | 5,042 |
Liabilities: | ||
Deferred compensation plans | 12,304 | 11,850 |
Foreign currency forward contracts | 5,937 | 2,381 |
Total liabilities at fair value | $ 18,241 | $ 14,231 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Additional Information) (Detail) | 12 Months Ended |
Oct. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Executive officers and other highly compensated employees salary and annual cash incentive compensation deferrals percentage, maximum | 100.00% |
Executive officers share-based long-term incentive compensation deferrals percentage, maximum | 90.00% |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Amounts and Fair Values of Financial Instruments, Other than Cash and Cash Equivalents, Receivables and Accounts Payable (Detail) - USD ($) $ in Thousands | Oct. 31, 2020 | Oct. 31, 2019 |
Schedule Of Carrying Amounts And Fair Values Of Financial Instruments [Abstract] | ||
Long-term debt (including current portion), Carrying Amount | $ 1,105,995 | $ 1,244,142 |
Long-term debt (including current portion), Fair Value | $ 1,170,073 | $ 1,278,142 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Maturity of foreign currency forward contracts | 90 days | ||
Gain (loss) on foreign currency derivative instruments | $ (5,899) | $ 2,373 | $ (3,151) |
Change in unrealized gain loss on foreign currency derivative instruments | $ 4,367 | $ (2,231) | $ 4,284 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Outstanding Currency, Forward Exchange Contracts (Detail) - Foreign Currency Forward Contracts - USD ($) $ in Thousands | Oct. 31, 2020 | Oct. 31, 2019 |
Sell | ||
Derivative [Line Items] | ||
Notional Amounts of foreign currency derivative contracts | $ 255,779 | $ 332,608 |
Buy | ||
Derivative [Line Items] | ||
Notional Amounts of foreign currency derivative contracts | 552,966 | 433,344 |
Euro | Sell | ||
Derivative [Line Items] | ||
Notional Amounts of foreign currency derivative contracts | 127,849 | 264,661 |
Euro | Buy | ||
Derivative [Line Items] | ||
Notional Amounts of foreign currency derivative contracts | 259,510 | 107,598 |
Pound sterling | Sell | ||
Derivative [Line Items] | ||
Notional Amounts of foreign currency derivative contracts | 36,943 | 32,600 |
Pound sterling | Buy | ||
Derivative [Line Items] | ||
Notional Amounts of foreign currency derivative contracts | 71,380 | 48,867 |
Japanese yen | Sell | ||
Derivative [Line Items] | ||
Notional Amounts of foreign currency derivative contracts | 23,262 | 29,397 |
Japanese yen | Buy | ||
Derivative [Line Items] | ||
Notional Amounts of foreign currency derivative contracts | 41,133 | 51,217 |
Australian dollar | Sell | ||
Derivative [Line Items] | ||
Notional Amounts of foreign currency derivative contracts | 179 | 168 |
Australian dollar | Buy | ||
Derivative [Line Items] | ||
Notional Amounts of foreign currency derivative contracts | 9,084 | 7,767 |
Hong Kong dollar | Sell | ||
Derivative [Line Items] | ||
Notional Amounts of foreign currency derivative contracts | 59,459 | 189 |
Hong Kong dollar | Buy | ||
Derivative [Line Items] | ||
Notional Amounts of foreign currency derivative contracts | 81,199 | 135,862 |
Singapore dollar | Sell | ||
Derivative [Line Items] | ||
Notional Amounts of foreign currency derivative contracts | 1,102 | 1,108 |
Singapore dollar | Buy | ||
Derivative [Line Items] | ||
Notional Amounts of foreign currency derivative contracts | 17,350 | 15,684 |
Others | Sell | ||
Derivative [Line Items] | ||
Notional Amounts of foreign currency derivative contracts | 6,985 | 4,485 |
Others | Buy | ||
Derivative [Line Items] | ||
Notional Amounts of foreign currency derivative contracts | $ 73,310 | $ 66,349 |
Capital Shares - Additional Inf
Capital Shares - Additional Information (Detail) - shares | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 |
Equity [Line Items] | |||
Convertible preferred shares, authorized (in shares) | 10,000,000 | 10,000,000 | |
Common shares, authorized (in shares) | 160,000,000 | 160,000,000 | |
Common shares, issued (in shares) | 98,023,000 | 98,023,000 | |
Common Shares Outstanding (in shares) | 58,081,000 | 57,600,000 | |
Preferred Class A | |||
Equity [Line Items] | |||
Convertible preferred shares, authorized (in shares) | 10,000,000 | 10,000,000 | |
Convertible preferred shares, outstanding (in shares) | 0 | 0 | 0 |
Capital Shares - Capital Shares
Capital Shares - Capital Shares (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Equity [Abstract] | |||
Number of Shares (in shares) | 303 | 949 | 145 |
Total Amount | $ 38,138 | $ 114,790 | $ 18,939 |
Average per Share (in dollars per share) | $ 125.70 | $ 121.01 | $ 130.21 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum number of common shares available for gran (in shares) | 4,525,000 | ||
Periods of performance considered for calculating compensation expense | 3 years | ||
Executive officers and other highly compensated employees salary and annual cash incentive compensation deferrals percentage, maximum | 100.00% | ||
Executive officers share-based long-term incentive compensation deferrals percentage, maximum | 90.00% | ||
Number of common shares reserved for future issuance (in shares) | 2,032,000 | ||
Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expense related to director deferred compensation | $ 175,000 | $ 154,000 | $ 127,000 |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options exercisable beginning period | 1 year | ||
Maximum rate of stock option, description | not exceeding 25 percent per year | ||
Option expiring period | 10 years | ||
Normal retirement age | 65 years | ||
Period for options considered to be forfeited for retirees | 12 months | ||
Termination period on death or disability of option holder | 12 months | ||
Compensation expense recognized | $ 10,087,000 | $ 10,067,000 | $ 9,964,000 |
Unrecognized compensation cost related to nonvested stock option | $ 11,294,000 | ||
Weighted average period expected to be amortized, non vested shares | 1 year 8 months 12 days | ||
Weighted-average expected volatility used | 25.40% | 24.30% | 25.00% |
Weighted average grant date fair value of stock options granted (in dollars per share) | $ 38.57 | $ 31.74 | $ 31.42 |
Total intrinsic value of options exercised | $ 65,783,000 | $ 31,881,000 | $ 35,696,000 |
Cash received from the exercise of stock options | $ 50,853,000 | 26,020,000 | 18,811,000 |
Stock Options | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | ||
Restricted Shares and Restricted Share Units | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant restricted shares transferred period | 3 years | ||
Restricted Shares and Restricted Share Units | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant restricted shares transferred period | 1 year | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Normal retirement age | 65 years | ||
Weighted average period expected to be amortized, non vested shares | 2 years | ||
Period for restricted shares and share units considered to be forfeited for retirees | 12 months | ||
Restricted shares termination period for disability or death | 12 months | ||
Unrecognized compensation cost related to nonvested restricted stock | $ 4,292,000 | ||
Expense related to nonvested common shares | 3,956,000 | 3,608,000 | 2,610,000 |
Common share dividends amount included in compensation cost | $ 87,000 | 84,000 | 70,000 |
Restricted Stock Unit | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Period for pro-rata vesting of shares or units for non-employee directors | 12 months | ||
Unrecognized compensation cost related to nonvested restricted stock | $ 0 | ||
Expense related to nonvested common shares | 1,181,000 | 1,052,000 | 1,011,000 |
Performance Share Incentive Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | (2,732,000) | 2,989,000 | $ 7,635,000 |
Cumulative amount recorded in shareholders' equity related to Long-Term Incentive Plan | $ 1,557,000 | $ 10,459,000 | |
Award requisite service period | 3 years | ||
Performance Share Incentive Awards | November 26, 2018 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value (in dollars per share) | $ 120.12 | ||
Performance Share Incentive Awards | August 1, 2019 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value (in dollars per share) | $ 138.53 | $ 138.53 | |
Performance Share Incentive Awards | November 20, 2017 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value (in dollars per share) | $ 123.45 | ||
Performance Share Incentive Awards | November 25, 2019 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value (in dollars per share) | $ 160.02 | ||
Performance Share Incentive Awards | March 30, 2020 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value (in dollars per share) | 133.01 | ||
Performance Share Incentive Awards | July 6, 2020 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value (in dollars per share) | $ 184.04 | ||
Deferred Compensation | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common share dividends amount included in compensation cost | $ 276,000 | $ 300,000 | $ 273,000 |
Executive officers and other highly compensated employees salary and annual cash incentive compensation deferrals percentage, maximum | 100.00% | ||
Executive officers share-based long-term incentive compensation deferrals percentage, maximum | 90.00% |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summarized Activity Related to Stock Options (Detail) - Stock Options $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Oct. 31, 2020USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Options, Outstanding, Beginning balance (in shares) | shares | 1,787 |
Number of Options, Granted (in shares) | shares | 391 |
Number of Options, Exercised (in shares) | shares | (644) |
Number of Options, Forfeited or expired (in shares) | shares | (47) |
Number of Options, Outstanding, Ending balance (in shares) | shares | 1,487 |
Number of Options, Expected to vest (in shares) | shares | 845 |
Number of Options, Exercisable (in shares) | shares | 632 |
Weighted-Average Exercise Price Per Share, Outstanding, Beginning balance (in dollars per share) | $ / shares | $ 97.74 |
Weighted-Average Exercise Price Per Share, Granted (in dollars per share) | $ / shares | 166.38 |
Weighted-Average Exercise Price Per Share, Exercised (in dollars per share) | $ / shares | 78.91 |
Weighted-Average Exercise Price Per Share, Forfeited or expired (in dollars per share) | $ / shares | 145.52 |
Weighted-Average Exercise Price Per Share, Outstanding, Ending balance (in dollars per share) | $ / shares | 122.45 |
Weighted-Average Exercise Price Per Share, Expected to vest (in dollars per share) | $ / shares | 141.28 |
Weighted-Average Exercise Price Per Share, Exercisable (in dollars per share) | $ / shares | $ 96.79 |
Aggregate Intrinsic Value, Outstanding | $ | $ 105,536 |
Aggregate Intrinsic Value, Expected to vest | $ | 44,065 |
Aggregate Intrinsic Value, Exercisable | $ | $ 61,104 |
Weighted Average Remaining Term, Outstanding | 7 years |
Weighted Average Remaining Term, Expected to vest | 8 years 1 month 6 days |
Weighted Average Remaining Term, Exercisable | 5 years 6 months |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summarized Information on Currently Outstanding Options (Detail) shares in Thousands | 12 Months Ended |
Oct. 31, 2020$ / sharesshares | |
$43 - $90 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price range, Lower range limit (in dollars per share) | $ 43 |
Exercise price range, Upper range limit (in dollars per share) | 90 |
$91 - $140 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price range, Lower range limit (in dollars per share) | 91 |
Exercise price range, Upper range limit (in dollars per share) | 140 |
$141 - $190 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price range, Lower range limit (in dollars per share) | 141 |
Exercise price range, Upper range limit (in dollars per share) | $ 190 |
Stock Options | $43 - $90 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number outstanding (in shares) | shares | 279 |
Weighted-average remaining contractual life, in years | 4 years |
Weighted-average exercise price (in dollars per share) | $ 70.40 |
Number exercisable (in shares) | shares | 279 |
Weighted-average exercise price (in dollars per share) | $ 70.40 |
Stock Options | $91 - $140 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number outstanding (in shares) | shares | 844 |
Weighted-average remaining contractual life, in years | 7 years 1 month 6 days |
Weighted-average exercise price (in dollars per share) | $ 120.56 |
Number exercisable (in shares) | shares | 352 |
Weighted-average exercise price (in dollars per share) | $ 117.43 |
Stock Options | $141 - $190 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number outstanding (in shares) | shares | 364 |
Weighted-average remaining contractual life, in years | 9 years 1 month 6 days |
Weighted-average exercise price (in dollars per share) | $ 166.66 |
Number exercisable (in shares) | shares | 1 |
Weighted-average exercise price (in dollars per share) | $ 165.21 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summarized Information on Currently Outstanding Options (Additional Information) (Detail) | 12 Months Ended |
Oct. 31, 2020$ / shares | |
$43 - $90 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price range, Lower range limit (in dollars per share) | $ 43 |
Exercise price range, Upper range limit (in dollars per share) | 90 |
$91 - $140 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price range, Lower range limit (in dollars per share) | 91 |
Exercise price range, Upper range limit (in dollars per share) | 140 |
$141 - $190 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price range, Lower range limit (in dollars per share) | 141 |
Exercise price range, Upper range limit (in dollars per share) | $ 190 |
Stock-Based Compensation - Fair
Stock-Based Compensation - Fair Value Assumptions of Stock Options (Detail) - Stock Options | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility, Minimum | 24.50% | 24.10% | 24.00% |
Expected volatility, Maximum | 30.50% | 24.50% | 26.70% |
Expected dividend yield | 1.04% | 0.97% | |
Risk-free interest rate, Minimum | 0.44% | 2.84% | 2.09% |
Risk-free interest rate, Maximum | 1.69% | 2.95% | 2.20% |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 0.87% | ||
Expected life of the option (in years) | 5 years 3 months 18 days | 5 years 3 months 18 days | 5 years 4 months 24 days |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 1.16% | ||
Expected life of the option (in years) | 6 years 3 months 18 days | 6 years 2 months 12 days | 6 years 2 months 12 days |
Stock-Based Compensation - Su_4
Stock-Based Compensation - Summarized Activity Related to Restricted Stock (Detail) - Restricted Stock shares in Thousands | 12 Months Ended |
Oct. 31, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Restricted Shares/Units, Beginning balance (in shares) | shares | 66 |
Number of Restricted Shares, Granted (in shares) | shares | 27 |
Number of Restricted Shares, Forfeited (in shares) | shares | (7) |
Number of Restricted Shares, Vested (in shares) | shares | (28) |
Number of Restricted Shares/Units, Ending balance (in shares) | shares | 58 |
Weighted-Average Grant Date Fair Value, Restricted Shares, Beginning balance (in dollars per share) | $ / shares | $ 126.83 |
Weighted-Average Grant Date Fair Value, Granted (in dollars per share) | $ / shares | 170.94 |
Weighted-Average Grant Date Fair Value, Forfeited (in dollars per share) | $ / shares | 135.43 |
Weighted-Average Grant Date Fair Value, Vested (in dollars per share) | $ / shares | 121.01 |
Weighted-Average Grant Date Fair Value, Restricted Shares, Ending balance (in dollars per share) | $ / shares | $ 148.75 |
Stock-Based Compensation - Su_5
Stock-Based Compensation - Summarized Activity Related to Restricted Stock Units (Detail) - Restricted Stock Unit shares in Thousands | 12 Months Ended |
Oct. 31, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Restricted Shares/Units, Beginning balance (in shares) | 0 |
Number of Restricted Share Units, Granted (in shares) | 7 |
Number of Restricted Share Units, Vested (in shares) | (7) |
Number of Restricted Shares/Units, Ending balance (in shares) | 0 |
Weighted-Average Grant Date Fair Value, Granted (in dollars per share) | $ / shares | $ 160.68 |
Weighted-Average Grant Date Fair Value, Vested (in dollars per share) | $ / shares | $ 160.68 |
Stock-Based Compensation - Su_6
Stock-Based Compensation - Summarized Activity Related to Director Deferred Compensation Shares (Detail) - Directors - Deferred Compensation Share Equivalent Units shares in Thousands | 12 Months Ended |
Oct. 31, 2020$ / sharesshares | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Number of Shares, Outstanding, Beginning balance (in shares) | shares | 114 |
Number of Shares, Restricted share units vested (in shares) | shares | 5 |
Number of Shares, Dividend equivalents (in shares) | shares | 1 |
Number of Shares, Outstanding, Ending balance (in shares) | shares | 120 |
Weighted-Average Grant Date Fair Value Per Share, Beginning balance (in dollars per share) | $ / shares | $ 55.52 |
Weighted-Average Grant Date Fair Value Per Share, Restricted share units vested (in dollars per share) | $ / shares | 161.09 |
Weighted-Average Grant Date Fair Value Per Share, Dividend equivalents (in dollars per share) | $ / shares | 169.43 |
Weighted-Average Grant Date Fair Value Per Share, Ending balance (in dollars per share) | $ / shares | $ 60.81 |
Operating Segments and Geogra_3
Operating Segments and Geographic Area Data - Additional Information (Detail) - Segment | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Segment Reporting [Abstract] | ||
Number of operating segments | 2 | 3 |
Major customers | No single customer accounted for 10 percent or more of sales in 2020, 2019 or 2018. |
Operating Segments and Geogra_4
Operating Segments and Geographic Area Data - Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||
Net external sales | $ 558,525 | $ 538,181 | $ 529,478 | $ 494,916 | $ 585,451 | $ 559,746 | $ 551,119 | $ 497,910 | $ 2,121,100 | $ 2,194,226 | $ 2,254,668 |
Operating profit (loss) | 349,545 | 483,113 | 502,579 | ||||||||
Identifiable assets | 3,674,656 | 3,516,447 | 3,674,656 | 3,516,447 | 3,421,012 | ||||||
Property, plant and equipment expenditures | 50,535 | 64,244 | 89,790 | ||||||||
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net external sales | 2,121,100 | 2,194,226 | 2,254,668 | ||||||||
Depreciation and amortization | 113,302 | 110,244 | 108,407 | ||||||||
Operating profit (loss) | 349,545 | 483,113 | 502,579 | ||||||||
Identifiable assets | 3,680,385 | 3,519,907 | 3,680,385 | 3,519,907 | 3,428,922 | ||||||
Property, plant and equipment expenditures | 50,535 | 64,244 | 89,790 | ||||||||
Operating Segments | Industrial Precision Solutions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net external sales | 1,143,423 | 1,208,376 | 1,215,302 | ||||||||
Depreciation and amortization | 38,939 | 38,333 | 37,763 | ||||||||
Operating profit (loss) | 208,028 | 329,054 | 315,048 | ||||||||
Identifiable assets | 882,946 | 997,460 | 882,946 | 997,460 | 951,784 | ||||||
Property, plant and equipment expenditures | 18,798 | 30,400 | 55,457 | ||||||||
Operating Segments | Advanced Technology Solutions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net external sales | 977,677 | 985,850 | 1,039,366 | ||||||||
Depreciation and amortization | 64,543 | 62,836 | 62,594 | ||||||||
Operating profit (loss) | 191,602 | 205,609 | 244,880 | ||||||||
Identifiable assets | 1,849,391 | 1,740,259 | 1,849,391 | 1,740,259 | 1,713,404 | ||||||
Property, plant and equipment expenditures | 31,737 | 26,010 | 16,205 | ||||||||
Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net external sales | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 9,820 | 9,075 | 8,050 | ||||||||
Operating profit (loss) | (50,085) | (51,550) | (57,349) | ||||||||
Identifiable assets | $ 948,048 | $ 782,188 | 948,048 | 782,188 | 763,734 | ||||||
Property, plant and equipment expenditures | $ 0 | $ 7,834 | $ 18,128 |
Operating Segments and Geogra_5
Operating Segments and Geographic Area Data - Sales and Long-lived Asset Information by Geographic Regions (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Net external sales | |||||||||||
Net external sales | $ 558,525 | $ 538,181 | $ 529,478 | $ 494,916 | $ 585,451 | $ 559,746 | $ 551,119 | $ 497,910 | $ 2,121,100 | $ 2,194,226 | $ 2,254,668 |
Long-lived assets | |||||||||||
Total long-lived assets | 480,743 | 398,895 | 480,743 | 398,895 | 386,666 | ||||||
United States | |||||||||||
Net external sales | |||||||||||
Net external sales | 755,642 | 758,383 | 720,832 | ||||||||
Long-lived assets | |||||||||||
Total long-lived assets | 329,390 | 286,894 | 329,390 | 286,894 | 279,437 | ||||||
Americas | |||||||||||
Net external sales | |||||||||||
Net external sales | 141,473 | 167,661 | 158,837 | ||||||||
Long-lived assets | |||||||||||
Total long-lived assets | 2,307 | 1,948 | 2,307 | 1,948 | 2,158 | ||||||
Europe | |||||||||||
Net external sales | |||||||||||
Net external sales | 536,636 | 571,596 | 622,108 | ||||||||
Long-lived assets | |||||||||||
Total long-lived assets | 69,854 | 44,041 | 69,854 | 44,041 | 41,663 | ||||||
Japan | |||||||||||
Net external sales | |||||||||||
Net external sales | 126,601 | 126,756 | 161,771 | ||||||||
Long-lived assets | |||||||||||
Total long-lived assets | 22,733 | 6,169 | 22,733 | 6,169 | 5,492 | ||||||
Asia Pacific | |||||||||||
Net external sales | |||||||||||
Net external sales | 560,748 | 569,830 | 591,120 | ||||||||
Long-lived assets | |||||||||||
Total long-lived assets | $ 56,459 | $ 59,843 | $ 56,459 | $ 59,843 | $ 57,916 |
Operating Segments and Geogra_6
Operating Segments and Geographic Area Data - Reconciliation of Segment Operating Profit to Consolidated Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Segment Reporting [Abstract] | |||
Total profit for reportable segments | $ 349,545 | $ 483,113 | $ 502,579 |
Interest expense | (32,160) | (47,145) | (49,576) |
Interest and investment income | 1,681 | 1,844 | 1,384 |
Other - net | (17,577) | (6,708) | (5,868) |
Income before income taxes | $ 301,489 | $ 431,104 | $ 448,519 |
Operating Segments and Geogra_7
Operating Segments and Geographic Area Data - Summary of Reconciliation of Consolidated Assets (Detail) - USD ($) $ in Thousands | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total consolidated assets | $ 3,674,656 | $ 3,516,447 | $ 3,421,012 |
Operating Segments | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total consolidated assets | 3,680,385 | 3,519,907 | 3,428,922 |
Customer advance payments | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total consolidated assets | 42,323 | 41,131 | 38,997 |
Eliminations | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total consolidated assets | $ (48,052) | $ (44,591) | $ (46,907) |
Supplemental Information for _4
Supplemental Information for the Statement of Cash Flows - Supplemental Information for the Statement of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Cash operating activities: | |||
Interest paid | $ 31,095 | $ 50,578 | $ 42,305 |
Income taxes paid | $ 80,849 | $ 104,326 | $ 87,879 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) - Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Sales | $ 558,525 | $ 538,181 | $ 529,478 | $ 494,916 | $ 585,451 | $ 559,746 | $ 551,119 | $ 497,910 | $ 2,121,100 | $ 2,194,226 | $ 2,254,668 |
Gross margin | 296,868 | 280,808 | 289,598 | 263,194 | 318,975 | 302,623 | 301,529 | 268,976 | |||
Net income | $ 18,475 | $ 86,981 | $ 92,079 | $ 52,004 | $ 102,673 | $ 93,928 | $ 91,923 | $ 48,567 | $ 249,539 | $ 337,091 | $ 377,375 |
Earnings per share: | |||||||||||
Basic (in dollars per share) | $ 0.32 | $ 1.51 | $ 1.60 | $ 0.90 | $ 1.79 | $ 1.64 | $ 1.60 | $ 0.84 | $ 4.32 | $ 5.87 | $ 6.51 |
Diluted (in dollars per share) | $ 0.31 | $ 1.49 | $ 1.58 | $ 0.89 | $ 1.76 | $ 1.62 | $ 1.58 | $ 0.83 | $ 4.27 | $ 5.79 | $ 6.40 |
Quarterly Financial Data (Una_4
Quarterly Financial Data (Unaudited) - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jan. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | ||||
Impairment loss on assets held for sale | $ 87,371 | $ 0 | $ 0 | |
Discrete tax expense | $ 4,866 | $ 15,661 | $ 4,866 |
Contingencies -Additional (Deta
Contingencies -Additional (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Oct. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
Accrual for environmental liability | $ 360 | $ 401 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts and Reserves (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Allowance for Doubtful Accounts | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | $ 9,801 | $ 9,580 | $ 9,791 |
Charged to Expense | 2,165 | 2,254 | 1,185 |
Deductions | 3,074 | 1,840 | 1,189 |
Currency Effects | 153 | (193) | (207) |
Balance at End of Year | 9,045 | 9,801 | 9,580 |
Inventory Obsolescence and Other Reserves | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | 39,377 | 37,545 | 33,140 |
Charged to Expense | 24,767 | 10,623 | 13,041 |
Deductions | 23,255 | 8,720 | 8,930 |
Currency Effects | 426 | (71) | 294 |
Balance at End of Year | $ 41,315 | $ 39,377 | $ 37,545 |