Document and Entity Information
Document and Entity Information | 3 Months Ended |
Jan. 31, 2017shares | |
Document And Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Jan. 31, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | Q1 |
Trading Symbol | NDSN |
Entity Registrant Name | NORDSON CORP |
Entity Central Index Key | 72,331 |
Current Fiscal Year End Date | --10-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 57,545,291 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
Income Statement [Abstract] | ||
Sales | $ 407,470 | $ 372,220 |
Operating costs and expenses: | ||
Cost of sales | 182,332 | 175,313 |
Selling and administrative expenses | 149,220 | 144,929 |
Total operating costs and expenses | 331,552 | 320,242 |
Operating profit | 75,918 | 51,978 |
Other income (expense): | ||
Interest expense | (5,641) | (5,844) |
Interest and investment income | 273 | 138 |
Other - net | (157) | 802 |
Total other income (expense) | (5,525) | (4,904) |
Income before income taxes | 70,393 | 47,074 |
Income taxes | 20,405 | 5,913 |
Net income | $ 49,988 | $ 41,161 |
Average common shares | 57,349 | 56,997 |
Incremental common shares attributable to outstanding stock options, restricted stock, and deferred stock-based compensation | 674 | 308 |
Average common shares and common share equivalents | 58,023 | 57,305 |
Basic earnings per share | $ 0.87 | $ 0.72 |
Diluted earnings per share | 0.86 | 0.72 |
Dividends declared per share | $ 0.27 | $ 0.24 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income | $ 49,988 | $ 41,161 |
Components of other comprehensive income (loss): | ||
Translation adjustments | (5,751) | (11,581) |
Amortization of prior service cost and net actuarial losses, net of tax | 1,691 | 1,631 |
Total other comprehensive income (loss) | (4,060) | (9,950) |
Total comprehensive income | $ 45,928 | $ 31,211 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (UNAUDITED) - USD ($) $ in Thousands | Jan. 31, 2017 | Oct. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 87,658 | $ 67,239 |
Receivables - net | 358,365 | 428,560 |
Inventories - net | 241,264 | 220,361 |
Prepaid expenses | 32,665 | 29,415 |
Total current assets | 719,952 | 745,575 |
Property, plant and equipment - net | 269,753 | 273,129 |
Goodwill | 1,111,573 | 1,107,137 |
Intangible assets - net | 256,846 | 260,302 |
Deferred income taxes | 8,579 | 10,681 |
Other assets | 26,319 | 23,759 |
Total assets | 2,393,022 | 2,420,583 |
Current liabilities: | ||
Notes payable | 4,046 | 2,141 |
Accounts payable | 73,960 | 75,130 |
Income taxes payable | 22,339 | 22,762 |
Accrued liabilities | 117,404 | 162,798 |
Customer advanced payments | 29,902 | 26,175 |
Current maturities of long-term debt | 38,083 | 38,093 |
Current obligations under capital leases | 4,482 | 4,444 |
Total current liabilities | 290,216 | 331,543 |
Long-term debt | 912,403 | 942,771 |
Deferred income taxes | 61,499 | 61,836 |
Pension obligations | 130,841 | 130,376 |
Postretirement obligations | 70,607 | 70,397 |
Other long-term liabilities | 33,612 | 32,057 |
Shareholders' equity: | ||
Common shares | 12,253 | 12,253 |
Capital in excess of stated value | 388,375 | 376,625 |
Retained earnings | 1,967,149 | 1,932,635 |
Accumulated other comprehensive loss | (172,307) | (168,247) |
Common shares in treasury, at cost | (1,301,626) | (1,301,663) |
Total shareholders' equity | 893,844 | 851,603 |
Total liabilities and shareholders' equity | $ 2,393,022 | $ 2,420,583 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 49,988 | $ 41,161 |
Depreciation and amortization | 18,497 | 17,210 |
Non-cash stock compensation | 3,476 | 4,847 |
Deferred income taxes | 813 | (1,656) |
Other non-cash expense | 1,603 | 980 |
(Gain) loss on sale of property, plant and equipment | (185) | 21 |
Tax benefit from the exercise of stock options | (3,144) | (198) |
Changes in operating assets and liabilities | 6,959 | (13,828) |
Net cash provided by operating activities | 78,007 | 48,537 |
Cash flows from investing activities: | ||
Additions to property, plant and equipment | (10,079) | (11,093) |
Proceeds from sale of property, plant and equipment | 3,500 | 87 |
Equity investments | (2,598) | |
Acquisition of business, net of cash acquired | (14,000) | |
Net cash used in investing activities | (23,177) | (11,006) |
Cash flows from financing activities: | ||
Proceeds from short-term borrowings | 4,463 | 8,022 |
Repayment of short-term borrowings | (2,492) | (3) |
Proceeds from long-term debt | 15,028 | 24,802 |
Repayment of long-term debt | (43,642) | (11,401) |
Repayment of capital lease obligations | (1,436) | (1,416) |
Issuance of common shares | 8,246 | 900 |
Purchase of treasury shares | (3,080) | (33,408) |
Tax benefit from the exercise of stock options | 3,144 | 198 |
Dividends paid | (15,475) | (13,654) |
Net cash used in financing activities | (35,244) | (25,960) |
Effect of exchange rate changes on cash | 833 | (1,103) |
Increase in cash and cash equivalents | 20,419 | 10,468 |
Cash and cash equivalents: | ||
Beginning of year | 67,239 | 50,268 |
End of quarter | $ 87,658 | $ 60,736 |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Jan. 31, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 1. Significant accounting policies Basis of presentation Basis of consolidation Use of estimates Revenue recognition 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 perfunctory. Revenue for undelivered items is deferred and included within accrued liabilities in the accompanying balance sheet. Revenues deferred in 2017 and 2016 were not material. Earnings per share . |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 3 Months Ended |
Jan. 31, 2017 | |
Accounting Changes And Error Corrections [Abstract] | |
Recently Issued Accounting Standards | 2. Recently issued accounting standards In May 2014, the Financial Accounting Standards Board (FASB) issued a new standard regarding revenue recognition. Under this standard, a company recognizes revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The standard implements a five-step process for customer contract revenue recognition that focuses on transfer of control. In August 2015 In April 2015, the FASB issued a new standard regarding the presentation of debt issuance costs. Under this standard, a company is required to present unamortized debt issuance costs related to a recognized debt liability in the balance sheet as a direct deduction from the carrying amount of that debt liability, rather than as a separate asset. The recognition and measurement guidance for debt issuance costs are not affected by this new standard. We adopted this standard during the first quarter of 2017, and applied this standard retrospectively to 2016. The new guidance only impacted presentation on our consolidated balance sheet and did not materially affect our results of operations or other financial statement disclosures. The following financial statement line items at October 31, 2016 were affected by the adoption of this new standard. As New presentation Effect of change Assets: Other assets $ 25,541 $ 23,759 $ 1,782 Liabilities: Long-term debt 944,553 942,771 1,782 In February 2016, the FASB issued a new standard which 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 twelve months. Leases will continue to be classified as either financing or operating, with classification affecting the recognition, measurement and presentation of expenses and cash flows arising from a lease. It will be effective for us beginning in 2020. We are currently assessing the impact this standard will have on our consolidated financial statements. In March 2016, the FASB issued a new standard which simplifies the accounting for share-based payment transactions. This guidance requires that excess tax benefits and tax deficiencies be recognized as income tax expense or benefit in the Consolidated Statements of Income rather than additional paid-in capital. Additionally, the excess tax benefits will be classified along with other income tax cash flows as an operating activity, rather than a financing activity, on the Statement of Cash Flows. Further, the update allows an entity to make a policy election to recognize forfeitures as they occur or estimate the number of awards expected to be forfeited. It will be effective for us beginning in 2018 and should be applied prospectively, with certain cumulative effect adjustments. Early adoption is permitted. We are currently assessing the impact this standard will have on our consolidated financial statements. In October 2016, the FASB issued a new standard which requires companies to recognize in the income statement the income tax effects of intercompany sales or transfer of assets, other than inventory, as income tax expense (or benefit) in the period the sale or transfer occurs. It will be effective for us beginning in 2019; however, early adoption is permitted. We early adopted this guidance in the first quarter of 2017, and it did not have a material impact on our consolidated financial statements. |
Severance and Restructuring Cos
Severance and Restructuring Costs | 3 Months Ended |
Jan. 31, 2017 | |
Restructuring And Related Activities [Abstract] | |
Severance and Restructuring Costs | 3. Severance and restructuring costs During the fourth quarter of 2016, we implemented an initiative within our Adhesive Dispensing Systems segment to consolidate certain polymer processing product line facilities in the U.S. This initiative is designed to improve customer experience, accelerate growth, optimize performance and realize synergies for sustained long term success. Costs of $227 were recognized during the three months ended January 31, 2017 relating to this initiative. Payments of $114 related to these actions were paid during the three months ended January 31, 2017. Total costs for this action to-date have been $5,792, which consisted primarily of severance costs. Additional costs related to this initiative are not expected to be material in future periods. Cash payments related to this initiative are expected to be paid during 2017 and 2018. The following table summarizes severance and restructuring activity during the three months ended January 31, 2017 related to this action: Employee Other severance one-time charges costs Total Accrual Balance at October 31, 2016 $ 4,576 $ 104 $ 4,680 Charged to expense (180 ) 407 227 Cash payments — (114 ) (114 ) Non cash utilization — (181 ) (181 ) Accrual Balance at January 31, 2017 $ 4,396 $ 216 $ 4,612 During the second half of 2015, we implemented initiatives across each of our segments to optimize operations and to enhance operational efficiency and customer service. No costs were recognized during the three months ended January 31, 2017 related to these initiatives. Costs of $1,017 were recognized during the three months ended January 31, 2016 related to these initiatives, which consisted primarily of severance costs. Within the Adhesives Dispensing Systems segment, restructuring initiatives to optimize operations in the U.S. and Belgium resulted in costs of $480 during the three months ended January 31, 2016. Payments of $49 related to these actions were paid during the three months ended January 31, 2017. Within the Advanced Technology Systems segment, a restructuring initiative to enhance operational efficiency and customer service resulted in costs of $510 during the three months ended January 31, 2016. Payments of $173 related to these actions were paid during the three months ended January 31, 2017. Within the Industrial Coating Systems segment, a restructuring program to enhance operational efficiency and customer service resulted in severance costs of $27 during the three months ended January 31, 2016. Payments of $236 related to these actions were paid during the three months ended January 31, 2017. Total costs for these actions to-date have been $16,621, which include $12,592 of severance costs, $759 of fixed asset impairment charges, $1,383 of lease termination costs and $1,887 of other one-time restructuring costs. The following table summarizes severance and restructuring activity during the three months ended January 31, 2017 related to actions initiated in 2015: Employee Lease Other severance termination one-time charges charges costs Total Accrual Balance at October 31, 2016 $ 1,136 $ 143 $ 497 $ 1,776 Cash payments (301 ) (143 ) (14 ) (458 ) Accrual Balance at January 31, 2017 $ 835 $ - $ 483 $ 1,318 Additional costs related to these initiatives are not expected to be material in future periods. The remainder of the cash payments related to these initiatives are expected to be paid during 2017. All severance and restructuring costs are included in selling and administrative expenses in the Consolidated Statements of Income. |
Acquisitions
Acquisitions | 3 Months Ended |
Jan. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | 4. Acquisitions On January 3, 2017, we purchased certain assets of ACE Production Technologies, Inc. (“ACE”), a Spokane, Washington based designer and manufacturer of selective soldering systems used in a variety of automotive and industrial electronics assembly applications. We acquired the assets for an aggregate purchase price of $14,000. Based on the fair value of the assets acquired and the liabilities assumed, goodwill of $6,622 and identifiable intangible assets of $5,010 were recorded. The identifiable intangible assets consist primarily of $2,800 of customer relationships (amortized over 7 years), $1,000 of tradenames (amortized over 11 years), $1,100 of technology (amortized over 7 years) and $110 of non-compete agreements (amortized over 3 years). Goodwill associated with this acquisition is tax deductible. This acquisition is being reported in our Advanced Technology Systems segment. As of January 31, 2017, the purchase price allocations remain preliminary as we complete our assessments of deferred taxes, intangible assets and certain reserves. On September 1, 2016, we purchased 100 percent of the outstanding shares of LinkTech Quick Couplings, Inc. (“LinkTech”), a Ventura California designed, manufacturer and distributor of highly engineered precision couplings and fittings. This acquisition is being reported in our Advanced Technology Systems segment. As of January 31, 2017, no material measurement period adjustments were recorded, and the purchase price allocations remain preliminary as we complete our assessments of income taxes. |
Inventories
Inventories | 3 Months Ended |
Jan. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | 5 . Inventories At January 31, 2017 and October 31, 2016, inventories consisted of the following: January 31, 2017 October 31, 2016 Raw materials and component parts $ 93,521 $ 85,802 Work-in-process 41,240 36,681 Finished goods 142,070 134,602 276,831 257,085 Obsolescence and other reserves (29,519 ) (29,324 ) LIFO reserve (6,048 ) (7,400 ) $ 241,264 $ 220,361 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Jan. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 6. Goodwill and other intangible assets Changes in the carrying amount of goodwill for the three months ended January 31, 2017 by operating segment are as follows: Adhesive Systems Advanced Systems Industrial Systems Total Balance at October 31, 2016 $ 385,733 $ 697,346 $ 24,058 $ 1,107,137 Acquisitions — 6,622 — 6,622 Currency effect (1,800 ) (386 ) — (2,186 ) Balance at January 31, 2017 $ 383,933 $ 703,582 $ 24,058 $ 1,111,573 Accumulated impairment losses, which were recorded in 2009, were $232,789 at January 31, 2017 and October 31, 2016. Of these losses, $229,173 related to the Advanced Technology Systems segment, and $3,616 related to the Industrial Coating Systems segment. Information regarding our intangible assets subject to amortization is as follows: January 31, 2017 Carrying Accumulated Amortization Net Book Value Customer relationships $ 209,609 $ 75,833 $ 133,776 Patent/technology costs 98,690 39,760 58,930 Trade name 86,186 23,493 62,693 Non-compete agreements 9,917 8,475 1,442 Other 1,384 1,379 5 Total $ 405,786 $ 148,940 $ 256,846 October 31, 2016 Carrying Accumulated Amortization Net Book Value Customer relationships $ 207,493 $ 71,608 $ 135,885 Patent/technology costs 97,640 37,873 59,767 Trade name 85,271 22,140 63,131 Non-compete agreements 9,855 8,347 1,508 Other 1,400 1,389 11 Total $ 401,659 $ 141,357 $ 260,302 Amortization expense for the three months ended January 31, 2017 and 2016 was $7,630 and $7,334, respectively. |
Pension and Other Postretiremen
Pension and Other Postretirement Plans | 3 Months Ended |
Jan. 31, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Plans | 7. Pension and other postretirement plans The components of net periodic pension cost for the three months ended January 31, 2017 and January 31, 2016 were: U.S. International Three Months Ended 2017 2016 2017 2016 Service cost $ 3,058 $ 2,761 $ 534 $ 701 Interest cost 3,211 3,934 348 613 Expected return on plan assets (5,177 ) (4,919 ) (285 ) (387 ) Amortization of prior service cost (credit) 12 19 (70 ) (22 ) Amortization of net actuarial loss 2,327 1,926 599 465 Total benefit cost $ 3,431 $ 3,721 $ 1,126 $ 1,370 The components of other postretirement benefit cost for the three months ended January 31, 2017 and January 31, 2016 were: U.S. International Three Months Ended 2017 2016 2017 2016 Service cost $ 221 $ 248 $ 5 $ 4 Interest cost 587 765 5 6 Amortization of prior service credit (41 ) (66 ) — — Amortization of net actuarial (gain) loss 229 212 (4 ) (6 ) Total benefit cost $ 996 $ 1,159 $ 6 $ 4 |
Income Taxes
Income Taxes | 3 Months Ended |
Jan. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income taxes We record our interim provision for income taxes based on our estimated annual effective tax rate, as well as certain items discrete to the current period. The effective tax rates for the three months ended January 31, 2017 and January 31, 2016 were 29.0% and 12.6%, respectively. On Dec ember 18, 2015, the Protecting Americans from Tax Hikes Act of 2015 was enacted which retroactively reinstated the Federal Research and Development Tax Credit (Federal R&D Tax Credit) as of January 1, 2015, and made it permanent. As a result, our income tax provision for the three months ended January 31, 2016 includes a discrete tax benefit of $2,025 primarily related to 2015. The tax rate for the three months ended January 31, 2016 also includes a discrete tax benefit of $6,184 related to dividends paid from previously taxed foreign earnings generated prior to 2015. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Jan. 31, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | 9. Accumulated other comprehensive loss The components of accumulated other comprehensive loss, including adjustments for items that are reclassified from accumulated other comprehensive loss to net income, are shown below. Cumulative Pension and Accumulated translation postretirement benefit other comprehensive adjustments plan adjustments loss Balance at October 31, 2016 $ (51,120 ) $ (117,127 ) $ (168,247 ) Pension and postretirement plan changes, net of tax of $(990) — 1,691 1,691 Currency translation losses (5,751 ) — (5,751 ) Balance at January 31, 2017 $ (56,871 ) $ (115,436 ) $ (172,307 ) |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Jan. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 10 . Stock-based compensation During the 2013 Annual Meeting of Shareholders, our shareholders approved the 2012 Stock Incentive and Award Plan (the “2012 Plan”). The 2012 Plan provides for the granting of stock options, stock appreciation rights, restricted shares, performance shares, stock purchase rights, stock equivalent units, cash awards and other stock or performance-based incentives. A maximum of 2,900 common shares is available for grant under the 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 the occurrence of events that involve or may result in a change of control. For grants made prior to November 2012, vesting ceases upon retirement, death and disability, and unvested shares are forfeited. For grants made during and after November 2012, 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 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 $2,322 and $2,156 in the three months ended January 31, 2017 and 2016, respectively. The following table summarizes activity related to stock options for the three months ended January 31, 2017: Number of Options Weighted-Average Exercise Share Aggregate Intrinsic Value Weighted Average Remaining Term Outstanding at October 31, 2016 1,881 $ 58.41 Granted 381 $ 107.66 Exercised (187 ) $ 44.95 Forfeited or expired (11 ) $ 80.74 Outstanding at January 31, 2017 2,064 $ 68.61 $ 92,706 7.0 years Vested or expected to vest at January 31, 2017 2,029 $ 68.17 $ 92,049 6.9 years Exercisable at January 31, 2017 1,126 $ 53.19 $ 67,960 5.4 years As of January 31, 2017, there was $13,630 of total unrecognized compensation cost related to unvested stock options. That cost is expected to be amortized over a weighted average period of approximately 1.6 years. 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: Three months ended January 31, 2017 January 31, 2016 Expected volatility 29.0%-29.2% 29.1%-30.4% Expected dividend yield 1.17% 1.54% Risk-free interest rate 1.89%-2.01% 1.78%-1.90% Expected life of the option (in years) 5.4-6.2 5.4-6.2 The weighted-average expected volatility used to value the 2017 and 2016 options was 29.1%, and 29.6%, 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 U.S. Treasury issues with a term equal to the expected life of the option being valued. The weighted average grant date fair value of stock options granted during the three months ended January 31, 2017 and 2016 was $28.86 and $18.23, respectively. The total intrinsic value of options exercised during the three months ended January 31, 2017 and 2016 was $12,450 and $968, respectively. Cash received from the exercise of stock options for the three months ended January 31, 2017 and 2016 was $8,246 and $900, respectively. The tax benefit realized from tax deductions from exercises for the three months ended January 31, 2017 and 2016 was $3,144 and $198, 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 to three years) defined at the date of grant. For employee recipients, in the event of termination of employment due to early retirement, 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. 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 of the non-employee director. 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 value on the date of grant is expensed over the vesting period. Tax benefits arising from the lapse of restrictions are recognized when realized and credited to capital in excess of stated value. The following table summarizes activity related to restricted shares during the three months ended January 31, 2017: Number of Shares Weighted-Average Grant Date Fair Value Restricted shares at October 31, 2016 60 $ 73.56 Granted 22 $ 107.76 Forfeited (2 ) $ 71.55 Vested (23 ) $ 73.44 Restricted shares at January 31, 2017 57 $ 87.12 As of January 31, 2017, there was $3,869 of unrecognized compensation cost related to restricted shares. The cost is expected to be amortized over a weighted average period of 2.2 years. The amount charged to expense related to restricted shares during the three months ended January 31, 2017 and 2016 was $578 and $506, respectively. These amounts included common share dividends for the three months ended January 31, 2017 and 2016 of $16 and $15, respectively. The following table summarizes activity related to restricted share units during the three months ended January 31, 2017: Number of Units Weighted-Average Grant Date Fair Value Restricted share units at October 31, 2016 0 $ — Granted 10 $ 97.43 Restricted share units at January 31, 2017 10 $ 97.43 As of January 31, 2017, there was $750 of remaining expense to be recognized related to outstanding restricted share units, which is expected to be recognized over a weighted average period of 0.8 years. The amount charged to expense related to restricted share units during the three months ended January 31, 2017 and 2016 was $253 and $243, 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 the three months ended January 31, 2017: Number of Shares Weighted-Average Grant Date Fair Value Outstanding at October 31, 2016 99 $ 41.72 Dividend equivalents 1 $ 113.42 Distributions (3 ) $ 26.78 Outstanding at January 31, 2017 97 $ 42.31 The amount charged to expense related to director deferred compensation for the three months ended January 31, 2017 and 2016 was $26 and $39, 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 $103.75 and $104.49 for 2017, $67.69 per share for 2016 and $76.48 per share for 2015. During the three months ended January 31, 2017 and January 31, 2016, $252 and $1,869 was charged to expense, respectively. The cumulative amount recorded in shareholders’ equity at January 31, 2017 was $5,674. Deferred Compensation Our executive officers and other highly compensated employees may elect to defer up to 100% of their base pay and cash incentive compensation and, for executive officers, up to 90% of their performance share-based incentive payout each year. Additional share units are credited for quarterly dividends paid on our common shares. Expense related to dividends paid under this plan for the three months ended January 31, 2017 and 2016 was $61 and $49, respectively. |
Warranties
Warranties | 3 Months Ended |
Jan. 31, 2017 | |
Guarantees [Abstract] | |
Warranties | 11. 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) 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 are 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 the three months ended January 31, 2017 and 2016: January 31, 2017 January 31, 2016 Beginning balance at October 31 $ 11,770 $ 10,537 Accruals for warranties 2,764 2,547 Warranty payments (2,514 ) (2,357 ) Currency effect (70 ) (51 ) Ending balance $ 11,950 $ 10,676 |
Operating Segments
Operating Segments | 3 Months Ended |
Jan. 31, 2017 | |
Segment Reporting [Abstract] | |
Operating Segments | 12 . Operating segments We conduct business across three primary business segments: Adhesive Dispensing Systems, Advanced Technology Systems, and Industrial Coating Systems. 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 the same as those described in Note 1, Significant Accounting Policies, of our annual report on Form 10-K for the year ended October 31, 2016. The following table presents information about our segments: Adhesive Advanced Industrial Corporate Total Three months ended January 31, 2017 Net external sales $ 207,837 $ 145,360 $ 54,273 $ — $ 407,470 Operating profit (loss) 53,056 (a) 26,363 7,085 (10,586 ) 75,918 Three months ended January 31, 2016 Net external sales $ 203,439 $ 117,860 $ 50,921 $ — $ 372,220 Operating profit (loss) 50,360 (a) 7,973 (b) 4,178 (c) (10,533 ) 51,978 (a) Includes $227 and $480 of severance and restructuring costs in the three months ended January 31, 2017, and January 31, 2016, respectively. (b) Includes $510 of severance and restructuring costs in the three months ended January 31, 2016. (c) Includes $27 of severance and restructuring costs in the three months ended January 31, 2016. A reconciliation of total segment operating income to total consolidated income before income taxes is as follows: Three Months Ended January 31, 2017 January 31, 2016 Total profit for reportable segments $ 75,918 $ 51,978 Interest expense (5,641 ) (5,844 ) Interest and investment income 273 138 Other-net (157 ) 802 Income before income taxes $ 70,393 $ 47,074 We have significant sales in the following geographic regions: Three Months Ended January 31, 2017 January 31, 2016 United States $ 125,521 $ 117,391 Americas 30,042 26,707 Europe 119,159 119,718 Japan 24,177 19,503 Asia Pacific 108,571 88,901 Total net external sales $ 407,470 $ 372,220 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Jan. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 13. 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 table presents the classification of our assets and liabilities measured at fair value on a recurring basis at January 31, 2017: Total Level 1 Level 2 Level 3 Assets: Foreign currency forward contracts (a) 1,373 — 1,373 — Total assets at fair value $ 1,373 $ — $ 1,373 $ — Liabilities: Deferred compensation plans (b) $ 11,151 $ — $ 11,151 $ — Foreign currency forward contracts (a) 1,626 — 1,626 — Total liabilities at fair value $ 12,777 $ — $ 12,777 $ — (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 currency forward contracts are valued using market exchange rates. Foreign currency forward contracts are not designated as hedges. Gains on foreign currency forward contracts are classified in Receivables-net and losses on foreign currency forward contracts are classified in Accrued liabilities on the Consolidated Balance Sheets. (b) Executive officers and other highly compensated employees may defer up to 100% of their salary and annual cash incentive award and for executive officers, up to 90% of their long-term performance share incentive award, |
Financial Instruments
Financial Instruments | 3 Months Ended |
Jan. 31, 2017 | |
Investments All Other Investments [Abstract] | |
Financial Instruments | 14. Financial instruments We 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 currencies are recorded 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. We do not use financial instruments for trading or speculative purposes. Gains and losses on foreign currency forward contracts are recorded in “Other – net” on the Consolidated Statement of Income together with the transaction gain or loss from the hedged balance sheet position. For the three months ended January 31, 2017, we recognized losses of $213 on foreign currency forward contracts and gains of $203 from the change in fair value of balance sheet positions. For the three months ended January 31, 2016, we recognized gains of $1,427 on foreign currency forward contracts and losses of $388 from the change in fair value of balance sheet positions. The following table summarizes, by currency, the foreign currency forward contracts outstanding at January 31, 2017 : Sell Buy Notional Amounts Fair Market Value Notional Amounts Fair Market Value Euro $ 127,476 $ 128,608 $ 46,433 $ 46,911 British pound 34,612 35,266 38,391 38,779 Japanese yen 22,762 22,865 16,351 16,266 Australian dollar 376 379 7,519 7,679 Hong Kong dollar — — 82,435 82,321 Singapore dollar 1,155 1,159 11,497 11,580 Others 4,268 4,327 36,101 36,934 Total $ 190,649 $ 192,604 $ 238,727 $ 240,470 The carrying amounts and fair values of financial instruments at January 31, 2017, other than receivables and accounts payable, are shown in the table below. The carrying values of receivables and accounts payable approximate fair value due to the short-term nature of these instruments. Carrying Amount Fair Value Cash and cash equivalents $ 87,658 $ 87,658 Notes payable 4,046 4,046 Long-term debt, including current maturities 950,486 951,966 Foreign currency forward contracts (net) (253 ) (253 ) We used the following methods and assumptions in estimating the fair value of financial instruments: • Cash, cash equivalents and notes payable are valued at their carrying amounts due to the relatively short period to maturity of the 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. • Foreign currency forward contracts are valued using observable market based inputs, which are considered to be Level 2 inputs under the fair value hierarchy. |
Contingencies
Contingencies | 3 Months Ended |
Jan. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingencies | 15. 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 environmental matter discussed below, it is our opinion, after consultation with legal counsel, that resolutions of these matters are not expected to result in a material effect on our financial condition, quarterly or annual operating results or cash flows. 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 January 31, 2017 and October 31, 2016, our accrual for the ongoing operation, maintenance and monitoring obligation at the Site was $516. 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. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Jan. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 16. Subsequent events On February 20, 2017, we entered into a definitive agreement to acquire Vention Medical’s Advanced Technologies (“Vention AT”) business for approximately $705,000 in an all cash transaction. Headquartered in Salem, New Hampshire, Vention AT is a leading designer, developer and manufacturer of minimally invasive interventional delivery devices, catheters and advanced components for the global medical technology market. . Vention AT will be reported in our Advanced Technology Systems segment. On February 16, 2017, we purchased 100 percent of the outstanding shares of InterSelect GmbH (“InterSelect”), a German designer and manufacturer of selective soldering systems used in a variety of automotive, aerospace and industrial electronics assembly applications. InterSelect will be reported in our Advanced Technology Systems segment. This transaction is not expected to have a material impact on our consolidated financial statements and was funded with existing cash on hand. On February 1, 2017, we purchased 100 percent of the outstanding shares of Plas-Pak Industries, Inc. (“Plas-Pak”), a Norwich, Connecticut designer and manufacturer of injection molded, single-use plastic dispensing products. Plas-Pak’s broad product offering includes two-component (2K) cartridges for industrial and commercial do-it-yourself adhesives, dial-a-dose calibrated syringes for veterinary and animal health applications, and specialty syringes for pesticide, dental and other markets. Plas-Pak will be reported in our Advanced Technology Systems segment. This transaction is not expected to have a material impact on our consolidated financial statements and was funded under our existing revolving credit facility. |
Significant Accounting Polici22
Significant Accounting Policies (Policies) | 3 Months Ended |
Jan. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of presentation |
Basis of Consolidation | Basis of consolidation |
Use of Estimates | Use of estimates |
Revenue Recognition | Revenue recognition 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 perfunctory. Revenue for undelivered items is deferred and included within accrued liabilities in the accompanying balance sheet. Revenues deferred in 2017 and 2016 were not material. |
Earnings Per Share | Earnings per share . |
Recently Issued Accounting St23
Recently Issued Accounting Standards (Tables) | 3 Months Ended |
Jan. 31, 2017 | |
Accounting Changes And Error Corrections [Abstract] | |
Financial Statement Line Items Affected by the Adoption of New Standard | The following financial statement line items at October 31, 2016 were affected by the adoption of this new standard. As New presentation Effect of change Assets: Other assets $ 25,541 $ 23,759 $ 1,782 Liabilities: Long-term debt 944,553 942,771 1,782 |
Severance and Restructuring C24
Severance and Restructuring Costs (Tables) | 3 Months Ended |
Jan. 31, 2017 | |
Schedule Severance and Restructuring Activity | The following table summarizes severance and restructuring activity during the three months ended January 31, 2017 related to actions initiated in 2015: Employee Lease Other severance termination one-time charges charges costs Total Accrual Balance at October 31, 2016 $ 1,136 $ 143 $ 497 $ 1,776 Cash payments (301 ) (143 ) (14 ) (458 ) Accrual Balance at January 31, 2017 $ 835 $ - $ 483 $ 1,318 |
Adhesive Dispensing Systems [Member] | |
Schedule Severance and Restructuring Activity | The following table summarizes severance and restructuring activity during the three months ended January 31, 2017 related to this action: Employee Other severance one-time charges costs Total Accrual Balance at October 31, 2016 $ 4,576 $ 104 $ 4,680 Charged to expense (180 ) 407 227 Cash payments — (114 ) (114 ) Non cash utilization — (181 ) (181 ) Accrual Balance at January 31, 2017 $ 4,396 $ 216 $ 4,612 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Jan. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | At January 31, 2017 and October 31, 2016, inventories consisted of the following: January 31, 2017 October 31, 2016 Raw materials and component parts $ 93,521 $ 85,802 Work-in-process 41,240 36,681 Finished goods 142,070 134,602 276,831 257,085 Obsolescence and other reserves (29,519 ) (29,324 ) LIFO reserve (6,048 ) (7,400 ) $ 241,264 $ 220,361 |
Goodwill and Other Intangible26
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Jan. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Carrying Amount of Goodwill | Changes in the carrying amount of goodwill for the three months ended January 31, 2017 by operating segment are as follows: Adhesive Systems Advanced Systems Industrial Systems Total Balance at October 31, 2016 $ 385,733 $ 697,346 $ 24,058 $ 1,107,137 Acquisitions — 6,622 — 6,622 Currency effect (1,800 ) (386 ) — (2,186 ) Balance at January 31, 2017 $ 383,933 $ 703,582 $ 24,058 $ 1,111,573 |
Summary of Intangible Assets Subject to Amortization | Information regarding our intangible assets subject to amortization is as follows: January 31, 2017 Carrying Accumulated Amortization Net Book Value Customer relationships $ 209,609 $ 75,833 $ 133,776 Patent/technology costs 98,690 39,760 58,930 Trade name 86,186 23,493 62,693 Non-compete agreements 9,917 8,475 1,442 Other 1,384 1,379 5 Total $ 405,786 $ 148,940 $ 256,846 October 31, 2016 Carrying Accumulated Amortization Net Book Value Customer relationships $ 207,493 $ 71,608 $ 135,885 Patent/technology costs 97,640 37,873 59,767 Trade name 85,271 22,140 63,131 Non-compete agreements 9,855 8,347 1,508 Other 1,400 1,389 11 Total $ 401,659 $ 141,357 $ 260,302 |
Pension and Other Postretirem27
Pension and Other Postretirement Plans (Tables) | 3 Months Ended |
Jan. 31, 2017 | |
Pension Cost [Member] | |
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Components of Net Periodic Benefits Cost | The components of net periodic pension cost for the three months ended January 31, 2017 and January 31, 2016 were: U.S. International Three Months Ended 2017 2016 2017 2016 Service cost $ 3,058 $ 2,761 $ 534 $ 701 Interest cost 3,211 3,934 348 613 Expected return on plan assets (5,177 ) (4,919 ) (285 ) (387 ) Amortization of prior service cost (credit) 12 19 (70 ) (22 ) Amortization of net actuarial loss 2,327 1,926 599 465 Total benefit cost $ 3,431 $ 3,721 $ 1,126 $ 1,370 |
Postretirement Benefit Costs [Member] | |
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Components of Net Periodic Benefits Cost | The components of other postretirement benefit cost for the three months ended January 31, 2017 and January 31, 2016 were: U.S. International Three Months Ended 2017 2016 2017 2016 Service cost $ 221 $ 248 $ 5 $ 4 Interest cost 587 765 5 6 Amortization of prior service credit (41 ) (66 ) — — Amortization of net actuarial (gain) loss 229 212 (4 ) (6 ) Total benefit cost $ 996 $ 1,159 $ 6 $ 4 |
Accumulated Other Comprehensi28
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Jan. 31, 2017 | |
Equity [Abstract] | |
Summary of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss, including adjustments for items that are reclassified from accumulated other comprehensive loss to net income, are shown below. Cumulative Pension and Accumulated translation postretirement benefit other comprehensive adjustments plan adjustments loss Balance at October 31, 2016 $ (51,120 ) $ (117,127 ) $ (168,247 ) Pension and postretirement plan changes, net of tax of $(990) — 1,691 1,691 Currency translation losses (5,751 ) — (5,751 ) Balance at January 31, 2017 $ (56,871 ) $ (115,436 ) $ (172,307 ) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Jan. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summarized Activity Related to Stock Options | The following table summarizes activity related to stock options for the three months ended January 31, 2017: Number of Options Weighted-Average Exercise Share Aggregate Intrinsic Value Weighted Average Remaining Term Outstanding at October 31, 2016 1,881 $ 58.41 Granted 381 $ 107.66 Exercised (187 ) $ 44.95 Forfeited or expired (11 ) $ 80.74 Outstanding at January 31, 2017 2,064 $ 68.61 $ 92,706 7.0 years Vested or expected to vest at January 31, 2017 2,029 $ 68.17 $ 92,049 6.9 years Exercisable at January 31, 2017 1,126 $ 53.19 $ 67,960 5.4 years |
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: Three months ended January 31, 2017 January 31, 2016 Expected volatility 29.0%-29.2% 29.1%-30.4% Expected dividend yield 1.17% 1.54% Risk-free interest rate 1.89%-2.01% 1.78%-1.90% Expected life of the option (in years) 5.4-6.2 5.4-6.2 |
Summarized Activity Related to Restricted Stock | The following table summarizes activity related to restricted shares during the three months ended January 31, 2017: Number of Shares Weighted-Average Grant Date Fair Value Restricted shares at October 31, 2016 60 $ 73.56 Granted 22 $ 107.76 Forfeited (2 ) $ 71.55 Vested (23 ) $ 73.44 Restricted shares at January 31, 2017 57 $ 87.12 |
Summarized Activity Related to Restricted Stock Units | The following table summarizes activity related to restricted share units during the three months ended January 31, 2017: Number of Units Weighted-Average Grant Date Fair Value Restricted share units at October 31, 2016 0 $ — Granted 10 $ 97.43 Restricted share units at January 31, 2017 10 $ 97.43 |
Summarized Activity Related to Director Deferred Compensation Shares | The following table summarizes activity related to director deferred compensation share equivalent units during the three months ended January 31, 2017: Number of Shares Weighted-Average Grant Date Fair Value Outstanding at October 31, 2016 99 $ 41.72 Dividend equivalents 1 $ 113.42 Distributions (3 ) $ 26.78 Outstanding at January 31, 2017 97 $ 42.31 |
Warranties (Tables)
Warranties (Tables) | 3 Months Ended |
Jan. 31, 2017 | |
Guarantees [Abstract] | |
Reconciliation of Product Warranty Liability | Following is a reconciliation of the product warranty liability for the three months ended January 31, 2017 and 2016: January 31, 2017 January 31, 2016 Beginning balance at October 31 $ 11,770 $ 10,537 Accruals for warranties 2,764 2,547 Warranty payments (2,514 ) (2,357 ) Currency effect (70 ) (51 ) Ending balance $ 11,950 $ 10,676 |
Operating Segments (Tables)
Operating Segments (Tables) | 3 Months Ended |
Jan. 31, 2017 | |
Segment Reporting [Abstract] | |
Segments | The following table presents information about our segments: Adhesive Advanced Industrial Corporate Total Three months ended January 31, 2017 Net external sales $ 207,837 $ 145,360 $ 54,273 $ — $ 407,470 Operating profit (loss) 53,056 (a) 26,363 7,085 (10,586 ) 75,918 Three months ended January 31, 2016 Net external sales $ 203,439 $ 117,860 $ 50,921 $ — $ 372,220 Operating profit (loss) 50,360 (a) 7,973 (b) 4,178 (c) (10,533 ) 51,978 (a) Includes $227 and $480 of severance and restructuring costs in the three months ended January 31, 2017, and January 31, 2016, respectively. (b) Includes $510 of severance and restructuring costs in the three months ended January 31, 2016. (c) Includes $27 of severance and restructuring costs in the three months ended January 31, 2016. |
Reconciliation of Segment Operating Income to Consolidated Income Before Income Taxes | A reconciliation of total segment operating income to total consolidated income before income taxes is as follows: Three Months Ended January 31, 2017 January 31, 2016 Total profit for reportable segments $ 75,918 $ 51,978 Interest expense (5,641 ) (5,844 ) Interest and investment income 273 138 Other-net (157 ) 802 Income before income taxes $ 70,393 $ 47,074 |
Sales and Long-lived Asset Information by Geographic Regions | We have significant sales in the following geographic regions: Three Months Ended January 31, 2017 January 31, 2016 United States $ 125,521 $ 117,391 Americas 30,042 26,707 Europe 119,159 119,718 Japan 24,177 19,503 Asia Pacific 108,571 88,901 Total net external sales $ 407,470 $ 372,220 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Jan. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents the classification of our assets and liabilities measured at fair value on a recurring basis at January 31, 2017: Total Level 1 Level 2 Level 3 Assets: Foreign currency forward contracts (a) 1,373 — 1,373 — Total assets at fair value $ 1,373 $ — $ 1,373 $ — Liabilities: Deferred compensation plans (b) $ 11,151 $ — $ 11,151 $ — Foreign currency forward contracts (a) 1,626 — 1,626 — Total liabilities at fair value $ 12,777 $ — $ 12,777 $ — (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 currency forward contracts are valued using market exchange rates. Foreign currency forward contracts are not designated as hedges. Gains on foreign currency forward contracts are classified in Receivables-net and losses on foreign currency forward contracts are classified in Accrued liabilities on the Consolidated Balance Sheets. (b) Executive officers and other highly compensated employees may defer up to 100% of their salary and annual cash incentive award and for executive officers, up to 90% of their long-term performance share incentive award, |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Jan. 31, 2017 | |
Investments All Other Investments [Abstract] | |
Outstanding Currency, Forward Exchange Contracts | The following table summarizes, by currency, the foreign currency forward contracts outstanding at January 31, 2017 : Sell Buy Notional Amounts Fair Market Value Notional Amounts Fair Market Value Euro $ 127,476 $ 128,608 $ 46,433 $ 46,911 British pound 34,612 35,266 38,391 38,779 Japanese yen 22,762 22,865 16,351 16,266 Australian dollar 376 379 7,519 7,679 Hong Kong dollar — — 82,435 82,321 Singapore dollar 1,155 1,159 11,497 11,580 Others 4,268 4,327 36,101 36,934 Total $ 190,649 $ 192,604 $ 238,727 $ 240,470 |
Carrying Amounts and Fair Values of Financial Instruments, Other than Receivables and Accounts Payable | The carrying values of receivables and accounts payable approximate fair value due to the short-term nature of these instruments. Carrying Amount Fair Value Cash and cash equivalents $ 87,658 $ 87,658 Notes payable 4,046 4,046 Long-term debt, including current maturities 950,486 951,966 Foreign currency forward contracts (net) (253 ) (253 ) |
Significant Accounting Polici34
Significant Accounting Policies - Additional Information (Detail) - shares shares in Thousands | 3 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
Significant Accounting Policies [Line Items] | ||
Ownership percentage in affiliates and joint ventures | 50.00% | |
Stock Options [Member] | ||
Significant Accounting Policies [Line Items] | ||
Options for common shares excluded from computation of diluted earning per share | 0 | 1,040 |
Recently Issued Accounting St35
Recently Issued Accounting Standards - Financial Statement Line Items Affected by the Adoption of New Standard (Detail) - USD ($) $ in Thousands | Jan. 31, 2017 | Oct. 31, 2016 |
Assets: | ||
Other assets | $ 26,319 | $ 23,759 |
Liabilities: | ||
Long-term debt | $ 912,403 | 942,771 |
Adjustments for New Accounting Pronouncement | ||
Assets: | ||
Other assets | 23,759 | |
Liabilities: | ||
Long-term debt | 942,771 | |
Adjustments for New Accounting Pronouncement | As Originally Reported [Member] | ||
Assets: | ||
Other assets | 25,541 | |
Liabilities: | ||
Long-term debt | 944,553 | |
Adjustments for New Accounting Pronouncement | Effect of Change [Member] | ||
Assets: | ||
Other assets | 1,782 | |
Liabilities: | ||
Long-term debt | $ 1,782 |
Severance and Restructuring C36
Severance and Restructuring Costs - Additional Information (Detail) - USD ($) | 3 Months Ended | 27 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2017 | |
Restructuring Cost And Reserve [Line Items] | |||
Severance payments | $ 458,000 | ||
Severance costs | $ 12,592,000 | ||
Severance and restructuring costs | 16,621,000 | ||
Fixed asset impairment charges | 759,000 | ||
Lease termination costs | 1,383,000 | ||
Other restructuring costs | $ 1,887,000 | ||
Other Restructuring Initiative [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Severance and restructuring costs | 0 | $ 1,017,000 | |
Adhesive Dispensing Systems [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Severance and restructuring costs | 227,000 | 480,000 | |
Adhesive Dispensing Systems [Member] | Polymer Processing Product Line Facilities | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring costs | 227,000 | ||
Severance payments | 114,000 | ||
Severance costs | 5,792,000 | ||
Adhesive Dispensing Systems [Member] | U S And Belgium | |||
Restructuring Cost And Reserve [Line Items] | |||
Severance and restructuring costs | 480,000 | ||
Severance payments | 49,000 | ||
Advanced Technology Systems [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Severance and restructuring costs | 510,000 | ||
Severance payments | 173,000 | ||
Industrial Coating Systems [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Severance and restructuring costs | $ 27,000 | ||
Severance payments | $ 236,000 |
Severance and Restructuring C37
Severance and Restructuring Costs - Schedule of Severance and Restructuring Activity (Detail) $ in Thousands | 3 Months Ended |
Jan. 31, 2017USD ($) | |
Restructuring Cost And Reserve [Line Items] | |
Accrual Balance at October 31, 2016 | $ 1,776 |
Cash payments | (458) |
Accrual Balance at January 31, 2017 | 1,318 |
Employee Severance Charges [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Accrual Balance at October 31, 2016 | 1,136 |
Cash payments | (301) |
Accrual Balance at January 31, 2017 | 835 |
Other One-time Costs [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Accrual Balance at October 31, 2016 | 497 |
Cash payments | (14) |
Accrual Balance at January 31, 2017 | 483 |
Lease Termination Charges [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Accrual Balance at October 31, 2016 | 143 |
Cash payments | (143) |
Accrual Balance at January 31, 2017 | 0 |
Adhesive Dispensing Systems [Member] | Polymer Processing Product Line Facilities | |
Restructuring Cost And Reserve [Line Items] | |
Accrual Balance at October 31, 2016 | 4,680 |
Restructuring costs | 227 |
Cash payments | (114) |
Non cash utilization | (181) |
Accrual Balance at January 31, 2017 | 4,612 |
Adhesive Dispensing Systems [Member] | Employee Severance Charges [Member] | Polymer Processing Product Line Facilities | |
Restructuring Cost And Reserve [Line Items] | |
Accrual Balance at October 31, 2016 | 4,576 |
Restructuring costs | (180) |
Cash payments | 0 |
Non cash utilization | 0 |
Accrual Balance at January 31, 2017 | 4,396 |
Adhesive Dispensing Systems [Member] | Other One-time Costs [Member] | Polymer Processing Product Line Facilities | |
Restructuring Cost And Reserve [Line Items] | |
Accrual Balance at October 31, 2016 | 104 |
Restructuring costs | 407 |
Cash payments | (114) |
Non cash utilization | (181) |
Accrual Balance at January 31, 2017 | $ 216 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 03, 2017 | Jan. 31, 2017 | Oct. 31, 2016 | Sep. 01, 2016 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 1,111,573 | $ 1,107,137 | ||
Advanced Technology Systems [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 703,582 | $ 697,346 | ||
Advanced Technology Systems [Member] | ACE Production Technologies Inc [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition of businesses, aggregate purchase price | $ 14,000 | |||
Goodwill | 6,622 | |||
Identifiable intangible assets | 5,010 | |||
Advanced Technology Systems [Member] | ACE Production Technologies Inc [Member] | Customer Relationships [Member] | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | $ 2,800 | |||
Intangible assets amortization period | 7 years | |||
Advanced Technology Systems [Member] | ACE Production Technologies Inc [Member] | Trade Names [Member] | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | $ 1,000 | |||
Intangible assets amortization period | 11 years | |||
Advanced Technology Systems [Member] | ACE Production Technologies Inc [Member] | Technology-Based Intangible Assets [Member] | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | $ 1,100 | |||
Intangible assets amortization period | 7 years | |||
Advanced Technology Systems [Member] | ACE Production Technologies Inc [Member] | Non-compete Agreements [Member] | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | $ 110 | |||
Intangible assets amortization period | 3 years | |||
Advanced Technology Systems [Member] | LinkTech Quick Couplings Inc [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquired percent of the outstanding shares | 100.00% |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Detail) - USD ($) $ in Thousands | Jan. 31, 2017 | Oct. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials and component parts | $ 93,521 | $ 85,802 |
Work-in-process | 41,240 | 36,681 |
Finished goods | 142,070 | 134,602 |
Inventories - gross | 276,831 | 257,085 |
Obsolescence and other reserves | (29,519) | (29,324) |
LIFO reserve | (6,048) | (7,400) |
Inventories - net | $ 241,264 | $ 220,361 |
Goodwill and Other Intangible40
Goodwill and Other Intangible Assets - Summary of Changes in Carrying Amount of Goodwill (Detail) $ in Thousands | 3 Months Ended |
Jan. 31, 2017USD ($) | |
Goodwill [Line Items] | |
Balance at October 31, 2016 | $ 1,107,137 |
Acquisitions | 6,622 |
Currency effect | (2,186) |
Balance at January 31, 2017 | 1,111,573 |
Adhesive Dispensing Systems [Member] | |
Goodwill [Line Items] | |
Balance at October 31, 2016 | 385,733 |
Currency effect | (1,800) |
Balance at January 31, 2017 | 383,933 |
Advanced Technology Systems [Member] | |
Goodwill [Line Items] | |
Balance at October 31, 2016 | 697,346 |
Acquisitions | 6,622 |
Currency effect | (386) |
Balance at January 31, 2017 | 703,582 |
Industrial Coating Systems [Member] | |
Goodwill [Line Items] | |
Balance at October 31, 2016 | 24,058 |
Balance at January 31, 2017 | $ 24,058 |
Goodwill and Other Intangible41
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Oct. 31, 2016 | |
Goodwill [Line Items] | |||
Goodwill accumulated impairment loss | $ 232,789 | $ 232,789 | |
Intangible assets, amortization expense | 7,630 | $ 7,334 | |
Advanced Technology Systems [Member] | |||
Goodwill [Line Items] | |||
Goodwill accumulated impairment loss | 229,173 | 229,173 | |
Industrial Coating Systems [Member] | |||
Goodwill [Line Items] | |||
Goodwill accumulated impairment loss | $ 3,616 | $ 3,616 |
Goodwill and Other Intangible42
Goodwill and Other Intangible Assets - Summary of Intangible Assets Subject to Amortization (Detail) - USD ($) $ in Thousands | Jan. 31, 2017 | Oct. 31, 2016 |
Finite Lived Intangible Assets [Line Items] | ||
Carrying Amount | $ 405,786 | $ 401,659 |
Accumulated Amortization | 148,940 | 141,357 |
Net Book Value | 256,846 | 260,302 |
Customer Relationships [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Carrying Amount | 209,609 | 207,493 |
Accumulated Amortization | 75,833 | 71,608 |
Net Book Value | 133,776 | 135,885 |
Patent/Technology Costs [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Carrying Amount | 98,690 | 97,640 |
Accumulated Amortization | 39,760 | 37,873 |
Net Book Value | 58,930 | 59,767 |
Trade Names [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Carrying Amount | 86,186 | 85,271 |
Accumulated Amortization | 23,493 | 22,140 |
Net Book Value | 62,693 | 63,131 |
Non-compete Agreements [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Carrying Amount | 9,917 | 9,855 |
Accumulated Amortization | 8,475 | 8,347 |
Net Book Value | 1,442 | 1,508 |
Other [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Carrying Amount | 1,384 | 1,400 |
Accumulated Amortization | 1,379 | 1,389 |
Net Book Value | $ 5 | $ 11 |
Pension and Other Postretirem43
Pension and Other Postretirement Plans - Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
Pension Plan, United States [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 3,058 | $ 2,761 |
Interest cost | 3,211 | 3,934 |
Expected return on plan assets | (5,177) | (4,919) |
Amortization of prior service cost (credit) | 12 | 19 |
Amortization of net actuarial loss | 2,327 | 1,926 |
Total benefit cost | 3,431 | 3,721 |
Pension Plan, International [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 534 | 701 |
Interest cost | 348 | 613 |
Expected return on plan assets | (285) | (387) |
Amortization of prior service cost (credit) | (70) | (22) |
Amortization of net actuarial loss | 599 | 465 |
Total benefit cost | $ 1,126 | $ 1,370 |
Pension and Other Postretirem44
Pension and Other Postretirement Plans - Other Postretirement Benefit Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
Postretirement Benefit Plans, United States [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 221 | $ 248 |
Interest cost | 587 | 765 |
Amortization of prior service credit | (41) | (66) |
Amortization of net actuarial (gain) loss | 229 | 212 |
Total benefit cost | 996 | 1,159 |
Postretirement Benefit Plans, International [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 5 | 4 |
Interest cost | 5 | 6 |
Amortization of net actuarial (gain) loss | (4) | (6) |
Total benefit cost | $ 6 | $ 4 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rates | 29.00% | 12.60% |
Additional tax benefit relating to retroactive reinstatement of research and development credit | $ 2,025 | |
Additional tax benefit related to dividends paid from foreign earnings tax credit | $ 6,184 |
Accumulated Other Comprehensi46
Accumulated Other Comprehensive Loss - Summary of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Accumulated other comprehensive loss, Beginning balance | $ (168,247) | |
Pension and postretirement plan changes, net of tax | 1,691 | $ 1,631 |
Currency translation losses | (5,751) | $ (11,581) |
Accumulated other comprehensive loss, Ending balance | (172,307) | |
Cumulative Translation Adjustments [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Accumulated other comprehensive loss, Beginning balance | (51,120) | |
Currency translation losses | (5,751) | |
Accumulated other comprehensive loss, Ending balance | (56,871) | |
Pension And Postretirement Benefit Plan Adjustments [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Accumulated other comprehensive loss, Beginning balance | (117,127) | |
Pension and postretirement plan changes, net of tax | 1,691 | |
Accumulated other comprehensive loss, Ending balance | $ (115,436) |
Accumulated Other Comprehensi47
Accumulated Other Comprehensive Loss - Summary of Accumulated Other Comprehensive Loss (Parenthetical) (Detail) $ in Thousands | 3 Months Ended |
Jan. 31, 2017USD ($) | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Pension and postretirement plan changes, tax | $ (990) |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Maximum number of common shares available for grant | 2,900 | ||
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% | ||
Directors [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expense related to director deferred compensation | $ 26 | $ 39 | |
Stock Options [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Maximum rate of stock option, description | Not exceeding 25 percent per year | ||
Option expiring period | 10 years | ||
Compensation expense recognized | $ 2,322 | $ 2,156 | |
Options exercisable beginning period | 1 year | ||
Unrecognized compensation cost related to unvested stock option | $ 13,630 | ||
Weighted average period expected to be amortized, non vested shares | 1 year 7 months 6 days | ||
Weighted-average expected volatility used | 29.10% | 29.60% | |
Weighted average grant date fair value of stock options granted | $ 28.86 | $ 18.23 | |
Total intrinsic value of options exercised | $ 12,450 | $ 968 | |
Cash received from the exercise of stock options | 8,246 | 900 | |
Tax benefit realized from tax deductions from exercises of stock options | $ 3,144 | 198 | |
Stock Options [Member] | Maximum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Maximum rate of stock option | 25.00% | ||
Stock Options [Member] | Post November 2012 Option Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Normal retirement age | 65 years | ||
Period for options considered to be forfeited for retirees | 12 months | ||
Restricted Shares and Restricted Share Units [Member] | Maximum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Grant restricted shares transferred period | 3 years | ||
Restricted Shares and Restricted Share Units [Member] | Minimum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Grant restricted shares transferred period | 1 year | ||
Restricted Stock [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted average period expected to be amortized, non vested shares | 2 years 2 months 12 days | ||
Period for restricted shares and share units considered to be forfeited for retirees | 12 months | ||
Unrecognized compensation cost related to nonvested restricted stock | $ 3,869 | ||
Expense related to nonvested common shares | 578 | 506 | |
Common share dividends amount included in compensation cost | $ 16 | 15 | |
Restricted Stock Unit [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted average period expected to be amortized, non vested shares | 9 months 18 days | ||
Period for pro-rata vesting of shares or units for non-employee directors | 1 year | ||
Unrecognized compensation cost related to nonvested restricted stock | $ 750 | ||
Expense related to nonvested common shares | 253 | $ 243 | |
Performance Share Incentive Awards [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted average grant date fair value | $ 67.69 | $ 76.48 | |
Compensation expense | 252 | $ 1,869 | |
Cumulative amount recorded in shareholders' equity related to Long-Term Incentive Plan | $ 5,674 | ||
Periods of performance considered for calculating compensation expense | 3 years | ||
Performance Share Incentive Awards [Member] | November 28, 2016 [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted average grant date fair value | $ 104.49 | ||
Performance Share Incentive Awards [Member] | November 21, 2016 [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted average grant date fair value | $ 103.75 | ||
Deferred Compensation [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Common share dividends amount included in compensation cost | $ 61 | $ 49 | |
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 [Member] $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended |
Jan. 31, 2017USD ($)$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Options, Outstanding, Beginning balance | shares | 1,881 |
Number of Options, Granted | shares | 381 |
Number of Options, Exercised | shares | (187) |
Number of Options, Forfeited or expired | shares | (11) |
Number of Options, Outstanding, Ending balance | shares | 2,064 |
Number of Options, Vested or expected to vest | shares | 2,029 |
Number of Options, Exercisable | shares | 1,126 |
Weighted-Average Exercise Price Per Share, Outstanding, Beginning balance | $ / shares | $ 58.41 |
Weighted-Average Exercise Price Per Share, Granted | $ / shares | 107.66 |
Weighted-Average Exercise Price Per Share, Exercised | $ / shares | 44.95 |
Weighted-Average Exercise Price Per Share, Forfeited or expired | $ / shares | 80.74 |
Weighted-Average Exercise Price Per Share, Outstanding, Ending balance | $ / shares | 68.61 |
Weighted-Average Exercise Price Per Share, Vested or expected to vest | $ / shares | 68.17 |
Weighted-Average Exercise Price Per Share, Exercisable | $ / shares | $ 53.19 |
Aggregate Intrinsic Value, Outstanding | $ | $ 92,706 |
Aggregate Intrinsic Value, Vested or expected to vest | $ | 92,049 |
Aggregate Intrinsic Value, Exercisable | $ | $ 67,960 |
Weighted Average Remaining Term, Outstanding | 7 years |
Weighted Average Remaining Term, Vested or expected to vest | 6 years 10 months 24 days |
Weighted Average Remaining Term, Exercisable | 5 years 4 months 24 days |
Stock-Based Compensation - Fair
Stock-Based Compensation - Fair Value Assumptions of Stock Options (Detail) - Stock Options [Member] | 3 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected volatility, Minimum | 29.00% | 29.10% |
Expected volatility, Maximum | 29.20% | 30.40% |
Expected dividend yield | 1.17% | 1.54% |
Risk-free interest rate, Minimum | 1.89% | 1.78% |
Risk-free interest rate, Maximum | 2.01% | 1.90% |
Minimum [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected life of the option (in years) | 5 years 4 months 24 days | 5 years 4 months 24 days |
Maximum [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected life of the option (in years) | 6 years 2 months 12 days | 6 years 2 months 12 days |
Stock-Based Compensation - Su51
Stock-Based Compensation - Summarized Activity Related to Restricted Stock (Detail) - Restricted Stock [Member] shares in Thousands | 3 Months Ended |
Jan. 31, 2017$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Restricted Shares, Beginning balance | shares | 60 |
Number of Restricted Shares, Granted | shares | 22 |
Number of Restricted Shares, Forfeited | shares | (2) |
Number of Restricted Shares, Vested | shares | (23) |
Number of Restricted Shares, Ending balance | shares | 57 |
Weighted-Average Grant Date Fair Value, Restricted Shares, Beginning balance | $ / shares | $ 73.56 |
Weighted-Average Grant Date Fair Value, Granted | $ / shares | 107.76 |
Weighted-Average Grant Date Fair Value, Forfeited | $ / shares | 71.55 |
Weighted-Average Grant Date Fair Value, Vested | $ / shares | 73.44 |
Weighted-Average Grant Date Fair Value, Restricted Shares, Ending balance | $ / shares | $ 87.12 |
Stock-Based Compensation - Su52
Stock-Based Compensation - Summarized Activity Related to Restricted Stock Units (Detail) - Restricted Stock Unit [Member] shares in Thousands | 3 Months Ended |
Jan. 31, 2017$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Restricted Shares, Beginning balance | 0 |
Number of Restricted Share Units, Granted | 10 |
Number of Restricted Shares, Ending balance | 10 |
Weighted-Average Grant Date Fair Value, Granted | $ / shares | $ 97.43 |
Weighted-Average Grant Date Fair Value, Restricted Shares, Ending balance | $ / shares | $ 97.43 |
Stock-Based Compensation - Su53
Stock-Based Compensation - Summarized Activity Related to Director Deferred Compensation Shares (Detail) - Directors [Member] - Deferred Compensation Share Equivalent Units [Member] shares in Thousands | 3 Months Ended |
Jan. 31, 2017$ / sharesshares | |
Deferred Compensation Arrangement With Individual Share Based Payments [Line Items] | |
Number of Shares, Outstanding, Beginning balance | shares | 99 |
Number of Shares, Dividend equivalents | shares | 1 |
Number of Shares, Distributions | shares | (3) |
Number of Shares, Outstanding, Ending balance | shares | 97 |
Weighted-Average Grant Date Fair Value, Beginning balance | $ / shares | $ 41.72 |
Weighted-Average Grant Date Fair Value, Dividend equivalents | $ / shares | 113.42 |
Weighted-Average Grant Date Fair Value, Distributions | $ / shares | 26.78 |
Weighted-Average Grant Date Fair Value, Ending balance | $ / shares | $ 42.31 |
Warranties - Additional Informa
Warranties - Additional Information (Detail) | 3 Months Ended |
Jan. 31, 2017 | |
Guarantees [Abstract] | |
Product warranty period | 1 year |
Warranties - Reconciliation of
Warranties - Reconciliation of Product Warranty Liability (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
Guarantees [Abstract] | ||
Beginning balance at October 31 | $ 11,770 | $ 10,537 |
Accruals for warranties | 2,764 | 2,547 |
Warranty payments | (2,514) | (2,357) |
Currency effect | (70) | (51) |
Ending balance | $ 11,950 | $ 10,676 |
Operating Segments - Additional
Operating Segments - Additional Information (Detail) | 3 Months Ended |
Jan. 31, 2017Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Operating Segments - Segments (
Operating Segments - Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Jan. 31, 2017 | Jan. 31, 2016 | |||
Segment Reporting Information [Line Items] | ||||
Net external sales | $ 407,470 | $ 372,220 | ||
Operating profit (loss) | 75,918 | 51,978 | ||
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net external sales | 407,470 | 372,220 | ||
Operating profit (loss) | 75,918 | 51,978 | ||
Operating Segments [Member] | Adhesive Dispensing Systems [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net external sales | 207,837 | 203,439 | ||
Operating profit (loss) | [1] | 53,056 | 50,360 | |
Operating Segments [Member] | Advanced Technology Systems [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net external sales | 145,360 | 117,860 | ||
Operating profit (loss) | 26,363 | 7,973 | [2] | |
Operating Segments [Member] | Industrial Coating Systems [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net external sales | 54,273 | 50,921 | ||
Operating profit (loss) | 7,085 | 4,178 | [3] | |
Corporate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating profit (loss) | $ (10,586) | $ (10,533) | ||
[1] | Includes $227 and $480 of severance and restructuring costs in the three months ended January 31, 2017, and January 31, 2016, respectively. | |||
[2] | Includes $510 of severance and restructuring costs in the three months ended January 31, 2016. | |||
[3] | Includes $27 of severance and restructuring costs in the three months ended January 31, 2016. |
Operating Segments - Segments58
Operating Segments - Segments (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 27 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Severance and restructuring costs | $ 16,621 | ||
Adhesive Dispensing Systems [Member] | |||
Segment Reporting Information [Line Items] | |||
Severance and restructuring costs | $ 227 | $ 480 | |
Advanced Technology Systems [Member] | |||
Segment Reporting Information [Line Items] | |||
Severance and restructuring costs | 510 | ||
Industrial Coating Systems [Member] | |||
Segment Reporting Information [Line Items] | |||
Severance and restructuring costs | $ 27 |
Operating Segments - Reconcilia
Operating Segments - Reconciliation of Segment Operating Income to Consolidated Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
Segment Reporting [Abstract] | ||
Total profit for reportable segments | $ 75,918 | $ 51,978 |
Interest expense | (5,641) | (5,844) |
Interest and investment income | 273 | 138 |
Other - net | (157) | 802 |
Income before income taxes | $ 70,393 | $ 47,074 |
Operating Segments - Sales Info
Operating Segments - Sales Information by Geographic Regions (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
Net external sales | ||
Net external sales | $ 407,470 | $ 372,220 |
United States [Member] | ||
Net external sales | ||
Net external sales | 125,521 | 117,391 |
Americas [Member] | ||
Net external sales | ||
Net external sales | 30,042 | 26,707 |
Europe [Member] | ||
Net external sales | ||
Net external sales | 119,159 | 119,718 |
Japan [Member] | ||
Net external sales | ||
Net external sales | 24,177 | 19,503 |
Asia Pacific [Member] | ||
Net external sales | ||
Net external sales | $ 108,571 | $ 88,901 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Recurring [Member] $ in Thousands | Jan. 31, 2017USD ($) | |
Assets: | ||
Foreign currency forward contracts | $ 1,373 | [1] |
Total assets at fair value | 1,373 | |
Liabilities: | ||
Deferred compensation plans | 11,151 | [2] |
Foreign currency forward contracts | 1,626 | [1] |
Total liabilities at fair value | 12,777 | |
Level 2 [Member] | ||
Assets: | ||
Foreign currency forward contracts | 1,373 | [1] |
Total assets at fair value | 1,373 | |
Liabilities: | ||
Deferred compensation plans | 11,151 | [2] |
Foreign currency forward contracts | 1,626 | [1] |
Total liabilities at fair value | $ 12,777 | |
[1] | 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 currency forward contracts are valued using market exchange rates. Foreign currency forward contracts are not designated as hedges. | |
[2] | Executive officers and other highly compensated employees may defer up to 100% of their salary and annual cash incentive award and for executive officers, up to 90% of their long-term performance share incentive award, 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 Measurements - Sch62
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Parenthetical) (Detail) | 3 Months Ended |
Jan. 31, 2017 | |
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% |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||
Maturity of foreign currency forward contracts | 90 days | |
Gains (losses) on foreign currency forward contracts | $ (213) | $ 1,427 |
Gains (losses) in fair value of balance sheet positions denominated in foreign currencies | $ 203 | $ (388) |
Financial Instruments - Outstan
Financial Instruments - Outstanding Currency, Forward Exchange Contracts (Detail) $ in Thousands | Jan. 31, 2017USD ($) |
Derivative [Line Items] | |
Fair Market Value of foreign currency derivative contracts | $ (253) |
Foreign Currency Forward Contracts [Member] | Sell [Member] | |
Derivative [Line Items] | |
Notional Amounts of foreign currency derivative contracts | 190,649 |
Fair Market Value of foreign currency derivative contracts | 192,604 |
Foreign Currency Forward Contracts [Member] | Buy [Member] | |
Derivative [Line Items] | |
Notional Amounts of foreign currency derivative contracts | 238,727 |
Fair Market Value of foreign currency derivative contracts | 240,470 |
Euro [Member] | Foreign Currency Forward Contracts [Member] | Sell [Member] | |
Derivative [Line Items] | |
Notional Amounts of foreign currency derivative contracts | 127,476 |
Fair Market Value of foreign currency derivative contracts | 128,608 |
Euro [Member] | Foreign Currency Forward Contracts [Member] | Buy [Member] | |
Derivative [Line Items] | |
Notional Amounts of foreign currency derivative contracts | 46,433 |
Fair Market Value of foreign currency derivative contracts | 46,911 |
British Pound [Member] | Foreign Currency Forward Contracts [Member] | Sell [Member] | |
Derivative [Line Items] | |
Notional Amounts of foreign currency derivative contracts | 34,612 |
Fair Market Value of foreign currency derivative contracts | 35,266 |
British Pound [Member] | Foreign Currency Forward Contracts [Member] | Buy [Member] | |
Derivative [Line Items] | |
Notional Amounts of foreign currency derivative contracts | 38,391 |
Fair Market Value of foreign currency derivative contracts | 38,779 |
Japanese Yen [Member] | Foreign Currency Forward Contracts [Member] | Sell [Member] | |
Derivative [Line Items] | |
Notional Amounts of foreign currency derivative contracts | 22,762 |
Fair Market Value of foreign currency derivative contracts | 22,865 |
Japanese Yen [Member] | Foreign Currency Forward Contracts [Member] | Buy [Member] | |
Derivative [Line Items] | |
Notional Amounts of foreign currency derivative contracts | 16,351 |
Fair Market Value of foreign currency derivative contracts | 16,266 |
Australian Dollar [Member] | Foreign Currency Forward Contracts [Member] | Sell [Member] | |
Derivative [Line Items] | |
Notional Amounts of foreign currency derivative contracts | 376 |
Fair Market Value of foreign currency derivative contracts | 379 |
Australian Dollar [Member] | Foreign Currency Forward Contracts [Member] | Buy [Member] | |
Derivative [Line Items] | |
Notional Amounts of foreign currency derivative contracts | 7,519 |
Fair Market Value of foreign currency derivative contracts | 7,679 |
Hong Kong Dollar [Member] | Foreign Currency Forward Contracts [Member] | Buy [Member] | |
Derivative [Line Items] | |
Notional Amounts of foreign currency derivative contracts | 82,435 |
Fair Market Value of foreign currency derivative contracts | 82,321 |
Singapore Dollar [Member] | Foreign Currency Forward Contracts [Member] | Sell [Member] | |
Derivative [Line Items] | |
Notional Amounts of foreign currency derivative contracts | 1,155 |
Fair Market Value of foreign currency derivative contracts | 1,159 |
Singapore Dollar [Member] | Foreign Currency Forward Contracts [Member] | Buy [Member] | |
Derivative [Line Items] | |
Notional Amounts of foreign currency derivative contracts | 11,497 |
Fair Market Value of foreign currency derivative contracts | 11,580 |
Others [Member] | Foreign Currency Forward Contracts [Member] | Sell [Member] | |
Derivative [Line Items] | |
Notional Amounts of foreign currency derivative contracts | 4,268 |
Fair Market Value of foreign currency derivative contracts | 4,327 |
Others [Member] | Foreign Currency Forward Contracts [Member] | Buy [Member] | |
Derivative [Line Items] | |
Notional Amounts of foreign currency derivative contracts | 36,101 |
Fair Market Value of foreign currency derivative contracts | $ 36,934 |
Financial Instruments - Carryin
Financial Instruments - Carrying Amounts and Fair Values of Financial Instruments, Other than Receivables and Accounts Payable (Detail) - USD ($) $ in Thousands | Jan. 31, 2017 | Oct. 31, 2016 | Jan. 31, 2016 | Oct. 31, 2015 |
Schedule Of Carrying Amounts And Fair Values Of Financial Instruments [Abstract] | ||||
Cash and cash equivalents, Carrying Amount | $ 87,658 | $ 67,239 | $ 60,736 | $ 50,268 |
Notes payable, Carrying Amount | 4,046 | $ 2,141 | ||
Long-term debt, including current maturities, Carrying Amount | 950,486 | |||
Foreign currency forward contracts (net), Carrying Amount | (253) | |||
Cash and cash equivalents, Fair Value | 87,658 | |||
Notes payable, Fair Value | 4,046 | |||
Long-term debt, including current maturities, Fair Value | 951,966 | |||
Foreign currency forward contracts (net), Fair Value | $ (253) |
Contingencies - Additional Info
Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 31, 2017 | Oct. 31, 2016 |
Environmental Remediation Obligations [Abstract] | ||
Accrual for the ongoing operation, maintenance and monitoring obligation at the site | $ 516 | $ 516 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Event [Member] - Advanced Technology Systems [Member] - USD ($) $ in Thousands | Feb. 20, 2017 | Feb. 16, 2017 | Feb. 01, 2017 |
Vention AT [Member] | |||
Subsequent Event [Line Items] | |||
Cash consideration | $ 705,000 | ||
InterSelect GmbH [Member] | |||
Subsequent Event [Line Items] | |||
Acquired percent of the outstanding shares | 100.00% | ||
Plas-Pak Industries, Inc. [Member] | |||
Subsequent Event [Line Items] | |||
Acquired percent of the outstanding shares | 100.00% |