Document and Entity Information
Document and Entity Information | 6 Months Ended |
Apr. 30, 2018shares | |
Document And Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Apr. 30, 2018 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | Q2 |
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 | 58,091,870 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2018 | Apr. 30, 2017 | |
Income Statement [Abstract] | ||||
Sales | $ 553,706 | $ 496,137 | $ 1,104,130 | $ 903,607 |
Operating costs and expenses: | ||||
Cost of sales | 246,878 | 220,625 | 496,299 | 402,957 |
Selling and administrative expenses | 180,123 | 171,981 | 363,403 | 321,201 |
Total operating costs and expenses | 427,001 | 392,606 | 859,702 | 724,158 |
Operating profit | 126,705 | 103,531 | 244,428 | 179,449 |
Other income (expense): | ||||
Interest expense | (12,127) | (7,907) | (23,445) | (13,548) |
Interest and investment income | 219 | 272 | 509 | 545 |
Other - net | 3,322 | (1,323) | 145 | (1,480) |
Total other income (expense) | (8,586) | (8,958) | (22,791) | (14,483) |
Income before income taxes | 118,119 | 94,573 | 221,637 | 164,966 |
Income taxes | 26,884 | 30,050 | 25,847 | 50,455 |
Net income | $ 91,235 | $ 64,523 | $ 195,790 | $ 114,511 |
Average common shares | 57,989 | 57,545 | 57,870 | 57,445 |
Incremental common shares attributable to outstanding stock options, restricted stock, and deferred stock-based compensation | 956 | 687 | 1,038 | 681 |
Average common shares and common share equivalents | 58,945 | 58,232 | 58,908 | 58,126 |
Basic earnings per share | $ 1.57 | $ 1.12 | $ 3.38 | $ 1.99 |
Diluted earnings per share | 1.55 | 1.11 | 3.32 | 1.97 |
Dividends declared per share | $ 0.30 | $ 0.27 | $ 0.60 | $ 0.54 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2018 | Apr. 30, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 91,235 | $ 64,523 | $ 195,790 | $ 114,511 |
Components of other comprehensive income (loss): | ||||
Translation adjustments | (19,284) | 5,849 | 19,298 | 99 |
Amortization of prior service cost and net actuarial losses, net of tax | 2,812 | 1,708 | 4,321 | 3,398 |
Total other comprehensive income (loss) | (16,472) | 7,557 | 23,619 | 3,497 |
Total comprehensive income | $ 74,763 | $ 72,080 | $ 219,409 | $ 118,008 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (UNAUDITED) - USD ($) $ in Thousands | Apr. 30, 2018 | Oct. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 155,946 | $ 90,383 |
Receivables - net | 512,389 | 505,087 |
Inventories - net | 284,363 | 264,266 |
Prepaid expenses | 31,323 | 28,636 |
Total current assets | 984,021 | 888,372 |
Property, plant and equipment - net | 359,489 | 346,411 |
Goodwill | 1,616,800 | 1,589,210 |
Intangible assets - net | 531,478 | 547,180 |
Deferred income taxes | 12,244 | 11,020 |
Other assets | 35,184 | 32,346 |
Total assets | 3,539,216 | 3,414,539 |
Current liabilities: | ||
Accounts payable | 86,786 | 86,016 |
Income taxes payable | 23,809 | 22,310 |
Accrued liabilities | 151,251 | 173,366 |
Customer advanced payments | 41,292 | 34,654 |
Current maturities of long-term debt | 226,587 | 326,587 |
Current obligations under capital leases | 4,936 | 4,813 |
Total current liabilities | 534,661 | 647,746 |
Long-term debt | 1,312,459 | 1,256,397 |
Deferred income taxes | 90,164 | 134,090 |
Pension obligations | 106,770 | 111,666 |
Postretirement obligations | 74,453 | 73,589 |
Other long-term liabilities | 57,799 | 35,558 |
Shareholders' equity: | ||
Common shares | 12,253 | 12,253 |
Capital in excess of stated value | 435,070 | 412,785 |
Retained earnings | 2,325,690 | 2,164,597 |
Accumulated other comprehensive loss | (110,816) | (134,435) |
Common shares in treasury, at cost | (1,299,287) | (1,299,707) |
Total shareholders' equity | 1,362,910 | 1,155,493 |
Total liabilities and shareholders' equity | $ 3,539,216 | $ 3,414,539 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (UNAUDITED) - USD ($) $ in Thousands | 6 Months Ended | |
Apr. 30, 2018 | Apr. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 195,790 | $ 114,511 |
Depreciation and amortization | 53,716 | 39,412 |
Non-cash stock compensation | 12,114 | 9,808 |
Deferred income taxes | (46,531) | (40) |
Other non-cash expense | 539 | 2,058 |
(Gain) loss on sale of property, plant and equipment | 675 | (193) |
Changes in operating assets and liabilities | (3,992) | (21,284) |
Net cash provided by operating activities | 212,311 | 144,272 |
Cash flows from investing activities: | ||
Additions to property, plant and equipment | (33,049) | (27,029) |
Proceeds from sale of property, plant and equipment | 235 | 3,598 |
Equity investments | (5,094) | |
Acquisition of businesses, net of cash acquired | (44,176) | (805,218) |
Net cash used in investing activities | (76,990) | (833,743) |
Cash flows from financing activities: | ||
Proceeds from short-term borrowings | 996 | 5,960 |
Repayment of short-term borrowings | (1,006) | (5,092) |
Proceeds from long-term debt | 125,904 | 817,291 |
Repayment of long-term debt | (171,067) | (84,289) |
Repayment of capital lease obligations | (2,828) | (2,872) |
Issuance of common shares | 15,595 | 12,040 |
Purchase of treasury shares | (5,005) | (3,098) |
Dividends paid | (34,697) | (30,999) |
Net cash provided by (used in) financing activities | (72,108) | 708,941 |
Effect of exchange rate changes on cash | 2,350 | 1,697 |
Increase in cash and cash equivalents | 65,563 | 21,167 |
Cash and cash equivalents: | ||
Beginning of year | 90,383 | 67,239 |
End of period | $ 155,946 | $ 88,406 |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Apr. 30, 2018 | |
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 2018 and 2017 were not material. Earnings per share |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 6 Months Ended |
Apr. 30, 2018 | |
Accounting Changes And Error Corrections [Abstract] | |
Recently Issued Accounting Standards | 2. Recently issued accounting standards New accounting guidance adopted: In March 2016, the Financial Accounting Standards Board (“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 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, in the statements 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. We adopted this new standard during the first quarter of 2018. As a result, net excess tax benefits of $6,950 were recognized as a reduction of income tax expense during the six months ended April 30, 2018. The cash flow classification requirements of this new standard were applied retrospectively. As a result, excess tax benefits of $6,950 are reported as Net cash provided by operating activities for the six months ended April 30, 2018 and $4,908 of excess tax benefits were reclassified from Net cash used in financing activities to Net cash provided by operating activities for the six months ended April 30, 2017. This new standard also requires that employee taxes paid when an employer withholds shares for tax-withholding purposes be reported as financing activities in the statements of cash flows on a retrospective basis. Previously, this activity was included in operating activities. The impact of this change was immaterial to the statements of cash flows. Additionally, we elected to continue to estimate forfeitures rather than account for them as they occur. New accounting guidance issued and not yet adopted: 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, the FASB issued a standard to delay the effective date by one year. The new standard is effective for us beginning November 1, 2018. The new standard is required to be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying it recognized at the date of initial application (modified retrospective method). We have not yet selected a transition method; however, we are currently anticipating using the modified retrospective method, but will base the final decision on the results of our assessment once complete. Our initial analysis of identifying revenue streams and evaluating a representative sample of contracts and other agreements with our customers is complete. We are in the process of assessing the impact of the new standard, if any, on our business processes, systems and controls. We will finalize our evaluation of potential differences that may result from applying the new standard to our contracts with customers in 2018 and provide updates on our progress in future filings. 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 November 1, 2019. We are currently assessing the impact this standard will have on our consolidated financial statements. In March 2017, the FASB issued a new standard which requires the presentation of the service cost component of the net periodic benefit cost in the same income statement line item as other employee compensation costs arising from services rendered during the period. All other components of net periodic benefit cost will be presented below operating income. Additionally, only the service cost component will be eligible for capitalization in assets. It will be effective for us beginning November 1, 2018. Early adoption is permitted. We are currently assessing the impact this standard will have on our consolidated financial statements. In February 2018, the FASB issued a new standard which gives entities the option to reclassify tax effects stranded in accumulated other comprehensive income as a result of the Tax Cuts and Jobs Act (“the Act”) into retained earnings. The guidance allows entities to reclassify from accumulated other comprehensive income to retained earnings stranded tax effects resulting from the Act's new federal corporate income tax rate. The guidance also allows entities to elect to reclassify other stranded tax effects that relate to the Act but do not directly relate to the change in the federal tax rate (e.g., state taxes, changing from a worldwide tax system to a territorial system). Tax effects that are stranded in accumulated other comprehensive income for other reasons (e.g., prior changes in tax law, a change in valuation allowance) may not be reclassified. It will be effective for us beginning November 1, 2019. Early adoption is permitted. We are currently assessing the impact this standard will have on our consolidated financial statements. In March 2018, the FASB issued a new standard which adds various Securities and Exchange Commission (“SEC”) paragraphs pursuant to the issuance of the December 2017 SEC Staff Accounting Bulletin No. 118 (“SAB 118”), Income Tax Accounting Implications of the Tax Cuts and Jobs Act , which was effective immediately. The SEC issued SAB 118 to address concerns about reporting entities’ ability to timely comply with the accounting requirements to recognize all of the effects of the Act in the period of enactment. SAB 118 allows disclosure that timely determination of some or all of the income tax effects from the Act are incomplete by the due date of the financial statements and if possible to provide a reasonable estimate. We have accounted for the tax effects of the Act under the guidance of SAB 118, on a provisional basis. Our accounting for certain income tax effects is incomplete, but we have determined reasonable estimates for those effects and have recorded provisional amounts in our consolidated financial statements. Refer to Note 7 for additional information. |
Acquisitions
Acquisitions | 6 Months Ended |
Apr. 30, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | 3. Acquisitions 2018 acquisition On January 2, 2018, we purchased 100 percent of the outstanding shares of Sonoscan, Inc. (“Sonoscan”), an Elk Grove Village, Illinois leading designer and manufacturer of acoustic microscopes and sophisticated acoustic micro imaging systems used in a variety of microelectronic, automotive, aerospace and industrial electronic assembly applications. We acquired Sonoscan for an aggregate purchase price of $44,832, net of $656 of cash. Based on the fair value of the assets acquired and the liabilities assumed, goodwill of $21,363 and identifiable intangible assets of $7,910 were recorded. The identifiable intangible assets consist primarily of $1,700 of customer relationships (amortized over 7 years), $3,300 of tradenames (amortized over 11 years), $2,500 of technology (amortized over 7 years) and $410 of non-compete agreements (amortized over 5 years). Goodwill associated with this acquisition is tax deductible. This acquisition is being reported in our Advanced Technology Systems segment. As of April 30, 2018, the purchase price allocations remain preliminary as we complete our assessments of income taxes, intangible assets and certain reserves. 2017 acquisition On March 31, 2017, we completed the acquisition designer, developer and manufacturer of minimally invasive interventional delivery devices, catheters and advanced components for the global medical technology market. This is a highly complementary business that adds significant scale and enhances strategic capabilities of our existing medical platform. We acquired Vention for an aggregate purchase price of $705,000, net of $3,313 of cash and other closing adjustments of $10,726. The acquisition was funded primarily through a new term loan facility, as well as through cash and borrowings on our credit facility. The purchase price was allocated to the underlying assets acquired and liabilities assumed based upon their estimated fair values at the date of acquisition. We determined the estimated fair values based on independent appraisals, discounted cash flow analyses, quoted market prices, replacement cost analyses and estimates made by management. Based on the fair value of the assets acquired and the liabilities assumed, goodwill of $434,123, of which $37,200 is tax deductible, and identifiable intangible assets of $286,000 were recorded. The identifiable intangible assets consist primarily of $240,000 of customer relationships (amortized over 14 years), $2,000 of tradenames (amortized over 6 years), and $44,000 of technology, consisting of $36,000 (amortized over 14 years) and $8,000 (amortized over 10 years). Also on March 31, 2017, we entered into a $705,000 term loan facility with a group of banks. The Term Loan Agreement provides for the following term loans in three tranches: $200,000 due in September 2018, $200,000 due in March 2020, and $305,000 due in March 2022. The weighted average interest rate for borrowings under this agreement was 2.99% at April 30, 2018. Borrowings under this agreement were used for the single purpose of acquiring Vention. We were in compliance with all covenants at April 30, 2018. |
Inventories
Inventories | 6 Months Ended |
Apr. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | 4 . At April 30, 2018 and October 31, 2017, inventories consisted of the following: April 30, 2018 October 31, 2017 Raw materials and component parts $ 109,078 $ 105,424 Work-in-process 53,745 45,743 Finished goods 167,404 152,923 330,227 304,090 Obsolescence and other reserves (38,753 ) (33,140 ) LIFO reserve (7,111 ) (6,684 ) $ 284,363 $ 264,266 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Apr. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 5. Goodwill and other intangible assets Changes in the carrying amount of goodwill for the six months ended April 30, 2018 by operating segment are as follows: Adhesive Systems Advanced Systems Industrial Systems Total Balance at October 31, 2017 $ 392,295 $ 1,172,857 $ 24,058 $ 1,589,210 Acquisitions — 20,561 — 20,561 Currency effect 4,271 2,758 — 7,029 Balance at April 30, 2018 $ 396,566 $ 1,196,176 $ 24,058 $ 1,616,800 Accumulated impairment losses, which were recorded in 2009, were $232,789 at April 30, 2018 and October 31, 2017. 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: April 30, 2018 Carrying Accumulated Amortization Net Customer relationships $ 485,317 $ 121,602 $ 363,715 Patent/technology costs 155,854 55,215 100,639 Trade name 96,994 31,758 65,236 Non-compete agreements 11,659 9,774 1,885 Other 1,392 1,389 3 Total $ 751,216 $ 219,738 $ 531,478 October 31, 2017 Carrying Accumulated Amortization Net Book Value Customer relationships $ 480,536 $ 102,033 $ 378,503 Patent/technology costs 150,581 48,669 101,912 Trade name 93,281 28,366 64,915 Non-compete agreements 11,142 9,298 1,844 Other 1,384 1,378 6 Total $ 736,924 $ 189,744 $ 547,180 Amortization expense for the three months ended April 30, 2018 and 2017 was $14,172 and $10,159, respectively. Amortization expense for the six months ended April 30, 2018 and 2017 was $28,061 and $17,789, respectively. |
Pension and Other Postretiremen
Pension and Other Postretirement Plans | 6 Months Ended |
Apr. 30, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Plans | 6. Pension and other postretirement plans The components of net periodic pension cost for the three and six months ended April 30, 2018 and April 30, 2017 were: U.S. International Three Months Ended 2018 2017 2018 2017 Service cost $ 3,054 $ 3,184 $ 528 $ 625 Interest cost 3,658 3,243 424 419 Expected return on plan assets (5,489 ) (5,265 ) (393 ) (358 ) Amortization of prior service cost (credit) (3 ) 11 (83 ) (76 ) Amortization of net actuarial loss 2,550 2,457 548 662 Total benefit cost $ 3,770 $ 3,630 $ 1,024 $ 1,272 U.S. International Six Months Ended 2018 2017 2018 2017 Service cost $ 6,875 $ 6,243 $ 1,038 $ 1,159 Interest cost 7,159 6,454 833 768 Expected return on plan assets (10,981 ) (10,443 ) (773 ) (643 ) Amortization of prior service cost (credit) (11 ) 23 (162 ) (147 ) Amortization of net actuarial loss 4,706 4,785 1,077 1,261 Total benefit cost $ 7,748 $ 7,062 $ 2,013 $ 2,398 The components of other postretirement benefit cost for the three and six months ended April 30, 2018 and April 30, 2017 were: U.S. International Three Months Ended 2018 2017 2018 2017 Service cost $ 152 $ 154 $ 5 $ 5 Interest cost 650 565 5 5 Amortization of prior service credit (25 ) (41 ) — — Amortization of net actuarial (gain) loss 296 205 (5 ) (4 ) Total benefit cost $ 1,073 $ 883 $ 5 $ 6 U.S. International Six Months Ended 2018 2017 2018 2017 Service cost $ 373 $ 376 $ 10 $ 9 Interest cost 1,278 1,152 10 10 Amortization of prior service credit (50 ) (82 ) — — Amortization of net actuarial (gain) loss 545 434 (10 ) (8 ) Total benefit cost $ 2,146 $ 1,880 $ 10 $ 11 |
Income Taxes
Income Taxes | 6 Months Ended |
Apr. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. 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 and six months ended April 30, 2018 were 22.8% and 11.7%, respectively. The effective tax rates for the three and six months ended April 30, 2017 were 31.8% and 30.6%, respectively. The Act was enacted into law on December 22, 2017. It reduces the U.S. federal corporate income tax rate from 35% to 21%. We have an October 31 fiscal year-end, therefore the lower corporate income tax rate will be phased in, resulting in a U.S. statutory federal rate of 23.3% for our fiscal year ending October 31, 2018, and 21% for subsequent fiscal years. The statutory tax rate of 23.3% was applied to earnings in the current quarter. The Act requires us to revalue our existing U.S. deferred tax balance to reflect the lower statutory tax rate and pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously deferred from U.S. taxes. As a result, during the first quarter of 2018, we recorded a provisional tax benefit of $45,213 to reflect the revaluation of our tax assets and liabilities at the reduced corporate tax rate. We also recorded a provisional tax expense of $23,124 to reflect the transition tax on previously deferred foreign earnings. The net tax effect of these discrete items resulted in a decrease of $22,089 in income tax expense for the six months ended April 30, 2018. We intend to pay the transition tax in installments over the eight year period allowable under the Act. The transition tax is primarily included in other long-term liabilities in the Consolidated Balance Sheet at April 30, 2018. The amounts recorded are considered a provisional estimate under the U.S. Securities and Exchange Commission Staff Accounting Bulletin No. 118. The provisional calculations may change after the underlying temporary differences and foreign earnings are finalized. Furthermore, we are still analyzing certain aspects of the Act and related interpretive guidance and refining our calculations which could potentially affect the measurement of these balances or potentially give rise to new or additional deferred tax amounts. In March 2016, the FASB issued a new standard which simplifies the accounting for share-based payment transactions, which we adopted in the first quarter of 2018. 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 as additional paid-in capital. As a result, our income tax provision for the three and six months ended April 30, 2018 includes a discrete tax benefit of $2,202 and $6,950, respectively. During the three months ended April 30, 2017, we recorded a discrete tax expense of $2,600 related to nondeductible acquisition costs. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Apr. 30, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | 8. 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, 2017 $ (28,423 ) $ (106,012 ) $ (134,435 ) Pension and postretirement plan changes, net of tax of $(1,334) — 4,321 4,321 Currency translation losses 19,298 — 19,298 Balance at April 30, 2018 $ (9,125 ) $ (101,691 ) $ (110,816 ) |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Apr. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 9 . Stock-based compensation During the 2018 Annual Meeting of Shareholders, our shareholders approved the Amended and Restated 2012 Stock Incentive and Award Plan (the “2012 Plan”). The 2012 Plan provides for the granting of stock options, stock appreciation rights, restricted shares, restricted share units, performance shares, cash awards and other stock or performance-based incentives. A maximum of 4,525 common shares is available for grant under the 2012 Plan. Stock Options Nonqualified or incentive stock options may be granted to our employees and directors. Generally, options granted to employees may be exercised beginning one year from the date of grant at a rate not exceeding 25 percent per year and expire 10 years from the date of grant. Vesting accelerates upon a qualified termination in connection with a change in control. In the event of termination of employment due to early retirement or normal retirement at age 65, options granted within 12 months prior to termination are forfeited, and vesting continues post retirement for all other unvested options granted. In the event of disability or death, all unvested stock options granted within 12 months prior to termination (or at any time prior to December 28, 2017) fully vest. Termination for any other reason results in forfeiture of unvested options and vested options in certain circumstances. The amortized cost of options is accelerated if the retirement eligibility date occurs before the normal vesting date. Option exercises are satisfied through the issuance of treasury shares on a first-in, first-out basis. We recognized compensation expense related to stock options of $2,454 and $2,312 in the three months ended April 30, 2018 and 2017, respectively. Corresponding amounts for the six months ended April 30, 2018 and 2017 were $5,071 and $4,634, respectively. The following table summarizes activity related to stock options for the six months ended April 30, 2018: Number of Options Weighted-Average Exercise Share Aggregate Intrinsic Value Weighted Average Remaining Term Outstanding at October 31, 2017 1,922 $ 70.08 Granted 368 $ 127.67 Exercised (319 ) $ 48.94 Forfeited or expired (5 ) $ 95.48 Outstanding at April 30, 2018 1,966 $ 84.21 $ 87,282 6.9 years Vested or expected to vest at April 30, 2018 1,944 $ 83.83 $ 87,036 6.9 years Exercisable at April 30, 2018 1,023 $ 65.54 $ 64,539 5.4 years As of April 30, 2018, there was $12,874 of total unrecognized compensation cost related to unvested stock options. That cost is expected to be amortized over a weighted average period of approximately 1.5 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: Six months ended April 30, 2018 April 30, 2017 Expected volatility 24.0%-26.7% 26.0%-29.2% Expected dividend yield 0.97% 0.91%-1.17% Risk-free interest rate 2.09%-2.20% 1.89%-2.06% Expected life of the option (in years) 5.4-6.2 5.4-6.2 The weighted-average expected volatility used to value the 2018 and 2017 options was 25.0% and 29.1%, 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 six months ended April 30, 2018 and 2017 was $31.42 and $28.86, respectively. The total intrinsic value of options exercised during the three months ended April 30, 2018 and 2017 was $11,021 and $6,806, respectively. The total intrinsic value of options exercised during the six months ended April 30, 2018 and 2017 was $29,744 and $19,256, respectively. Cash received from the exercise of stock options for the six months ended April 30, 2018 and 2017 was $15,595 and $12,040, 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 with the consent of the Company, restricted shares granted within 12 months prior to termination are forfeited, and other restricted shares vest on a pro-rata basis. In the event of termination of employment due to normal retirement at age 65, restricted shares granted within 12 months prior to termination are forfeited, and, for other restricted shares, the restriction period will lapse and the shares will vest and be transferable. For restricted shares granted within 12 months prior to termination (or at any time prior to December 28, 2017), the restrictions lapse in the event of a recipient’s disability or death. Termination for any other reason prior to the lapse of any restrictions results in forfeiture of the shares. For non-employee directors, all restrictions lapse in the event of disability or death 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 six months ended April 30, 2018: Number of Shares Weighted-Average Grant Date Fair Value Restricted shares at October 31, 2017 58 $ 90.38 Granted 20 $ 127.68 Vested (23 ) $ 84.78 Restricted shares at April 30, 2018 55 $ 106.33 As of April 30, 2018, there was $4,058 of unrecognized compensation cost related to restricted shares. The cost is expected to be amortized over a weighted average period of 2.0 years. The amount charged to expense related to restricted shares during the three months ended April 30, 2018 and 2017 was $637 and $510, respectively. These amounts included common share dividends for the three months ended April 30, 2018 and 2017 of $17 and $15, respectively. For the six months ended April 30, 2018 and 2017, the amounts charged to expense related to restricted shares were $1,391 and $1,088, respectively. These amounts included common share dividends for the six months ended April 30, 2018 and 2017 of $34 and $31, respectively. The following table summarizes activity related to restricted share units during the six months ended April 30, 2018: Number of Units Weighted-Average Grant Date Fair Value Restricted share units at October 31, 2017 0 $ — Granted 8 $ 126.38 Restricted share units at April 30, 2018 8 $ 126.38 As of April 30, 2018, there was $500 of remaining expense to be recognized related to outstanding restricted share units, which is expected to be recognized over a weighted average period of 0.5 years. The amount charged to expense related to restricted share units during each of the three months ended April 30, 2018 and 2017 was $252 and $253, respectively. For the six months ended April 30, 2018 and 2017, the corresponding amounts were $505 and $506, 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 six months ended April 30, 2018: Number of Shares Weighted-Average Grant Date Fair Value Outstanding at October 31, 2017 101 $ 46.74 Dividend equivalents 1 $ 141.77 Outstanding at April 30, 2018 102 $ 47.14 The amount charged to expense related to director deferred compensation for the three months ended April 30, 2018 and 2017 was $30 and $26, respectively. For the six months ended April 30, 2018 and 2017, the corresponding amounts were $61 and $52, 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 $123.45 for 2018, $103.75 and $104.49 per share for 2017 and $67.69 per share for 2016. During the three months ended April 30, 2018 and 2017, $1,637 and $3,178 was charged to expense, respectively. For the six months ended April 30, 2018 and 2017, the corresponding amounts were $4,986 and $3,430, respectively. The cumulative amount recorded in shareholders’ equity at April 30, 2018 was $12,108. Deferred Compensation Our executive officers and other highly compensated employees may elect to defer up to 100% of their base pay and cash incentive and for executive officers, up to 90% of their share-based performance incentive payout each year. Additional share units are credited for quarterly dividends paid our common shares. Expense related to dividends paid under this plan for the three months ended April 30, 2018 and 2017 was $67 and $68, respectively. For the six months ended April 30, 2018 and 2017, the corresponding amounts were $134 and $129, respectively. |
Warranties
Warranties | 6 Months Ended |
Apr. 30, 2018 | |
Guarantees [Abstract] | |
Warranties | 10. 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 six months ended April 30, 2018 and 2017: April 30, 2018 April 30, 2017 Beginning balance at October 31 $ 13,377 $ 11,770 Accruals for warranties 5,937 5,148 Warranty assumed from acquisitions - 61 Warranty payments (6,642 ) (4,821 ) Currency effect 227 2 Ending balance $ 12,899 $ 12,160 |
Operating Segments
Operating Segments | 6 Months Ended |
Apr. 30, 2018 | |
Segment Reporting [Abstract] | |
Operating Segments | 11. 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, 2017. The following table presents information about our segments: Adhesive Advanced Industrial Corporate Total Three months ended April 30, 2018 Net external sales $ 238,775 $ 250,839 $ 64,092 $ — $ 553,706 Operating profit (loss) 69,514 (a) 58,306 11,572 (12,687 ) 126,705 Three months ended April 30, 2017 Net external sales $ 226,943 $ 210,142 $ 59,052 $ — $ 496,137 Operating profit (loss) 65,719 (b) 54,306 10,252 (26,746 ) 103,531 Six months ended April 30, 2018 Net external sales $ 459,639 $ 522,540 $ 121,951 $ — $ 1,104,130 Operating profit (loss) 122,829 (a) 125,574 21,732 (25,707 ) 244,428 Six months ended April 30, 2017 Net external sales $ 434,780 $ 355,502 $ 113,325 $ — $ 903,607 Operating profit (loss) 118,775 (b) 80,669 17,337 (37,332 ) 179,449 (a) Includes $1,082 and $2,149 of severance and restructuring costs in the three and six months ended April 30, 2018, respectively. (b) Includes $491 and $718 of severance and restructuring costs in the three and six months ended April 30, 2017, respectively. A reconciliation of total segment operating income to total consolidated income before income taxes is as follows: Three Months Ended Six Months Ended April 30, 2018 April 30, 2017 April 30, 2018 April 30, 2017 Total profit for reportable segments $ 126,705 $ 103,531 $ 244,428 $ 179,449 Interest expense (12,127 ) (7,907 ) (23,445 ) (13,548 ) Interest and investment income 219 272 509 545 Other-net 3,322 (1,323 ) 145 (1,480 ) Income before income taxes $ 118,119 $ 94,573 $ 221,637 $ 164,966 We have significant sales in the following geographic regions: Three Months Ended Six Months Ended April 30, 2018 April 30, 2017 April 30, 2018 April 30, 2017 United States $ 178,821 $ 156,095 $ 344,652 $ 281,616 Americas 38,959 36,326 73,238 66,368 Europe 154,736 128,468 296,674 247,627 Japan 33,030 30,855 98,899 55,032 Asia Pacific 148,160 144,393 290,667 252,964 Total net external sales $ 553,706 $ 496,137 $ 1,104,130 $ 903,607 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Apr. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 12. 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 April 30, 2018: Total Level 1 Level 2 Level 3 Assets: Foreign currency forward contracts (a) 3,213 — 3,213 — Total assets at fair value $ 3,213 $ — $ 3,213 $ — Liabilities: Deferred compensation plans (b) $ 11,796 $ — $ 11,796 $ — Foreign currency forward contracts (a) 5,494 — 5,494 — Total liabilities at fair value $ 17,290 $ — $ 17,290 $ — (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. Foreign currency forward contracts in an asset position are classified in Receivables-net and foreign currency forward contracts in a liability position 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 | 6 Months Ended |
Apr. 30, 2018 | |
Investments All Other Investments [Abstract] | |
Financial Instruments | 13. 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 April 30, 2018, we recognized losses of $1,607 on foreign currency forward contracts and gains of $2,584 from the change in fair value of balance sheet positions. For the three months ended April 30, 2017, we recognized losses of $1,687 on foreign currency forward contracts and gains of $702 from the change in fair value of balance sheet positions. For the six months ended April 30, 2018, we recognized losses of $2,571 on foreign currency forward contracts and gains of $1,602 from the change in fair value of balance sheet positions. For the six months ended April 30, 2017, we recognized losses of $1,900 on foreign currency forward contracts and gains of $906 from the change in fair value of balance sheet positions. The following table summarizes, by currency, the foreign currency forward contracts outstanding at April 30, 2018 : Sell Buy Notional Amounts Fair Value Notional Amounts Fair Value Euro $ 152,436 $ 149,658 $ 82,687 $ 80,189 British pound 43,914 42,617 58,981 57,370 Japanese yen 32,610 31,785 35,260 34,116 Australian dollar 194 188 8,137 7,774 Hong Kong dollar 2,170 2,166 110,723 111,005 Singapore dollar 616 608 13,143 12,967 Others 4,398 4,191 52,468 50,573 Total $ 236,338 $ 231,213 $ 361,399 $ 353,994 The carrying amounts and fair values of financial instruments at April 30, 2018, other than cash and cash equivalents, receivables and accounts payable, are shown in the table below. The carrying values of cash and cash equivalents, receivables and accounts payable approximate fair value due to the short-term nature of these instruments. Carrying Amount Fair Value Long-term debt, including current maturities $ 1,539,046 $ 1,529,148 Foreign currency forward contracts (net) (2,281 ) (2,281 ) We used the following methods and assumptions in estimating the fair value of financial instruments: • Long-term debt is valued by discounting future cash flows at currently available rates for borrowing arrangements with similar terms and conditions, which are considered to be Level 2 inputs under the fair value hierarchy. • Foreign currency forward contracts are valued using observable market based inputs, which are considered to be Level 2 inputs under the fair value hierarchy. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Apr. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 14. Subsequent events On May 17, 2018, we entered into a Second Amendment to our $705,000 Term Loan Agreement with the lenders party thereto, and PNC Bank, as administrative agent, to extend the maturity due date of the $200,000 tranche from September 30, 2018 to September 30, 2021. As of April 30, 2018, this $200,000 tranche is presented as Current maturities of long-term debt in our Consolidated Balance Sheets and will be reclassified to Long-term debt in the third quarter of 2018. All other terms governing this term loan facility remain substantially the same. |
Significant Accounting Polici20
Significant Accounting Policies (Policies) | 6 Months Ended |
Apr. 30, 2018 | |
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 2018 and 2017 were not material. |
Earnings Per Share | Earnings per share |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Apr. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | At April 30, 2018 and October 31, 2017, inventories consisted of the following: April 30, 2018 October 31, 2017 Raw materials and component parts $ 109,078 $ 105,424 Work-in-process 53,745 45,743 Finished goods 167,404 152,923 330,227 304,090 Obsolescence and other reserves (38,753 ) (33,140 ) LIFO reserve (7,111 ) (6,684 ) $ 284,363 $ 264,266 |
Goodwill and Other Intangible22
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Apr. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Carrying Amount of Goodwill | Changes in the carrying amount of goodwill for the six months ended April 30, 2018 by operating segment are as follows: Adhesive Systems Advanced Systems Industrial Systems Total Balance at October 31, 2017 $ 392,295 $ 1,172,857 $ 24,058 $ 1,589,210 Acquisitions — 20,561 — 20,561 Currency effect 4,271 2,758 — 7,029 Balance at April 30, 2018 $ 396,566 $ 1,196,176 $ 24,058 $ 1,616,800 |
Summary of Intangible Assets Subject to Amortization | Information regarding our intangible assets subject to amortization is as follows: April 30, 2018 Carrying Accumulated Amortization Net Customer relationships $ 485,317 $ 121,602 $ 363,715 Patent/technology costs 155,854 55,215 100,639 Trade name 96,994 31,758 65,236 Non-compete agreements 11,659 9,774 1,885 Other 1,392 1,389 3 Total $ 751,216 $ 219,738 $ 531,478 October 31, 2017 Carrying Accumulated Amortization Net Book Value Customer relationships $ 480,536 $ 102,033 $ 378,503 Patent/technology costs 150,581 48,669 101,912 Trade name 93,281 28,366 64,915 Non-compete agreements 11,142 9,298 1,844 Other 1,384 1,378 6 Total $ 736,924 $ 189,744 $ 547,180 |
Pension and Other Postretirem23
Pension and Other Postretirement Plans (Tables) | 6 Months Ended |
Apr. 30, 2018 | |
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 and six months ended April 30, 2018 and April 30, 2017 were: U.S. International Three Months Ended 2018 2017 2018 2017 Service cost $ 3,054 $ 3,184 $ 528 $ 625 Interest cost 3,658 3,243 424 419 Expected return on plan assets (5,489 ) (5,265 ) (393 ) (358 ) Amortization of prior service cost (credit) (3 ) 11 (83 ) (76 ) Amortization of net actuarial loss 2,550 2,457 548 662 Total benefit cost $ 3,770 $ 3,630 $ 1,024 $ 1,272 U.S. International Six Months Ended 2018 2017 2018 2017 Service cost $ 6,875 $ 6,243 $ 1,038 $ 1,159 Interest cost 7,159 6,454 833 768 Expected return on plan assets (10,981 ) (10,443 ) (773 ) (643 ) Amortization of prior service cost (credit) (11 ) 23 (162 ) (147 ) Amortization of net actuarial loss 4,706 4,785 1,077 1,261 Total benefit cost $ 7,748 $ 7,062 $ 2,013 $ 2,398 |
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 and six months ended April 30, 2018 and April 30, 2017 were: U.S. International Three Months Ended 2018 2017 2018 2017 Service cost $ 152 $ 154 $ 5 $ 5 Interest cost 650 565 5 5 Amortization of prior service credit (25 ) (41 ) — — Amortization of net actuarial (gain) loss 296 205 (5 ) (4 ) Total benefit cost $ 1,073 $ 883 $ 5 $ 6 U.S. International Six Months Ended 2018 2017 2018 2017 Service cost $ 373 $ 376 $ 10 $ 9 Interest cost 1,278 1,152 10 10 Amortization of prior service credit (50 ) (82 ) — — Amortization of net actuarial (gain) loss 545 434 (10 ) (8 ) Total benefit cost $ 2,146 $ 1,880 $ 10 $ 11 |
Accumulated Other Comprehensi24
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Apr. 30, 2018 | |
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, 2017 $ (28,423 ) $ (106,012 ) $ (134,435 ) Pension and postretirement plan changes, net of tax of $(1,334) — 4,321 4,321 Currency translation losses 19,298 — 19,298 Balance at April 30, 2018 $ (9,125 ) $ (101,691 ) $ (110,816 ) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Apr. 30, 2018 | |
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 six months ended April 30, 2018: Number of Options Weighted-Average Exercise Share Aggregate Intrinsic Value Weighted Average Remaining Term Outstanding at October 31, 2017 1,922 $ 70.08 Granted 368 $ 127.67 Exercised (319 ) $ 48.94 Forfeited or expired (5 ) $ 95.48 Outstanding at April 30, 2018 1,966 $ 84.21 $ 87,282 6.9 years Vested or expected to vest at April 30, 2018 1,944 $ 83.83 $ 87,036 6.9 years Exercisable at April 30, 2018 1,023 $ 65.54 $ 64,539 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: Six months ended April 30, 2018 April 30, 2017 Expected volatility 24.0%-26.7% 26.0%-29.2% Expected dividend yield 0.97% 0.91%-1.17% Risk-free interest rate 2.09%-2.20% 1.89%-2.06% 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 six months ended April 30, 2018: Number of Shares Weighted-Average Grant Date Fair Value Restricted shares at October 31, 2017 58 $ 90.38 Granted 20 $ 127.68 Vested (23 ) $ 84.78 Restricted shares at April 30, 2018 55 $ 106.33 |
Summarized Activity Related to Restricted Stock Units | The following table summarizes activity related to restricted share units during the six months ended April 30, 2018: Number of Units Weighted-Average Grant Date Fair Value Restricted share units at October 31, 2017 0 $ — Granted 8 $ 126.38 Restricted share units at April 30, 2018 8 $ 126.38 |
Summarized Activity Related to Director Deferred Compensation Shares | The following table summarizes activity related to director deferred compensation share equivalent units during the six months ended April 30, 2018: Number of Shares Weighted-Average Grant Date Fair Value Outstanding at October 31, 2017 101 $ 46.74 Dividend equivalents 1 $ 141.77 Outstanding at April 30, 2018 102 $ 47.14 |
Warranties (Tables)
Warranties (Tables) | 6 Months Ended |
Apr. 30, 2018 | |
Guarantees [Abstract] | |
Reconciliation of Product Warranty Liability | Following is a reconciliation of the product warranty liability for the six months ended April 30, 2018 and 2017: April 30, 2018 April 30, 2017 Beginning balance at October 31 $ 13,377 $ 11,770 Accruals for warranties 5,937 5,148 Warranty assumed from acquisitions - 61 Warranty payments (6,642 ) (4,821 ) Currency effect 227 2 Ending balance $ 12,899 $ 12,160 |
Operating Segments (Tables)
Operating Segments (Tables) | 6 Months Ended |
Apr. 30, 2018 | |
Segment Reporting [Abstract] | |
Segments | The following table presents information about our segments: Adhesive Advanced Industrial Corporate Total Three months ended April 30, 2018 Net external sales $ 238,775 $ 250,839 $ 64,092 $ — $ 553,706 Operating profit (loss) 69,514 (a) 58,306 11,572 (12,687 ) 126,705 Three months ended April 30, 2017 Net external sales $ 226,943 $ 210,142 $ 59,052 $ — $ 496,137 Operating profit (loss) 65,719 (b) 54,306 10,252 (26,746 ) 103,531 Six months ended April 30, 2018 Net external sales $ 459,639 $ 522,540 $ 121,951 $ — $ 1,104,130 Operating profit (loss) 122,829 (a) 125,574 21,732 (25,707 ) 244,428 Six months ended April 30, 2017 Net external sales $ 434,780 $ 355,502 $ 113,325 $ — $ 903,607 Operating profit (loss) 118,775 (b) 80,669 17,337 (37,332 ) 179,449 (a) Includes $1,082 and $2,149 of severance and restructuring costs in the three and six months ended April 30, 2018, respectively. (b) Includes $491 and $718 of severance and restructuring costs in the three and six months ended April 30, 2017, respectively. |
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 Six Months Ended April 30, 2018 April 30, 2017 April 30, 2018 April 30, 2017 Total profit for reportable segments $ 126,705 $ 103,531 $ 244,428 $ 179,449 Interest expense (12,127 ) (7,907 ) (23,445 ) (13,548 ) Interest and investment income 219 272 509 545 Other-net 3,322 (1,323 ) 145 (1,480 ) Income before income taxes $ 118,119 $ 94,573 $ 221,637 $ 164,966 |
Sales and Long-lived Asset Information by Geographic Regions | We have significant sales in the following geographic regions: Three Months Ended Six Months Ended April 30, 2018 April 30, 2017 April 30, 2018 April 30, 2017 United States $ 178,821 $ 156,095 $ 344,652 $ 281,616 Americas 38,959 36,326 73,238 66,368 Europe 154,736 128,468 296,674 247,627 Japan 33,030 30,855 98,899 55,032 Asia Pacific 148,160 144,393 290,667 252,964 Total net external sales $ 553,706 $ 496,137 $ 1,104,130 $ 903,607 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Apr. 30, 2018 | |
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 April 30, 2018: Total Level 1 Level 2 Level 3 Assets: Foreign currency forward contracts (a) 3,213 — 3,213 — Total assets at fair value $ 3,213 $ — $ 3,213 $ — Liabilities: Deferred compensation plans (b) $ 11,796 $ — $ 11,796 $ — Foreign currency forward contracts (a) 5,494 — 5,494 — Total liabilities at fair value $ 17,290 $ — $ 17,290 $ — (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. Foreign currency forward contracts in an asset position are classified in Receivables-net and foreign currency forward contracts in a liability position 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) | 6 Months Ended |
Apr. 30, 2018 | |
Investments All Other Investments [Abstract] | |
Outstanding Currency, Forward Exchange Contracts | The following table summarizes, by currency, the foreign currency forward contracts outstanding at April 30, 2018 : Sell Buy Notional Amounts Fair Value Notional Amounts Fair Value Euro $ 152,436 $ 149,658 $ 82,687 $ 80,189 British pound 43,914 42,617 58,981 57,370 Japanese yen 32,610 31,785 35,260 34,116 Australian dollar 194 188 8,137 7,774 Hong Kong dollar 2,170 2,166 110,723 111,005 Singapore dollar 616 608 13,143 12,967 Others 4,398 4,191 52,468 50,573 Total $ 236,338 $ 231,213 $ 361,399 $ 353,994 |
Carrying Amounts and Fair Values of Financial Instruments, Other than Cash and Cash Equivalents, Receivables and Accounts Payable | The carrying values of cash and cash equivalents, receivables and accounts payable approximate fair value due to the short-term nature of these instruments. Carrying Amount Fair Value Long-term debt, including current maturities $ 1,539,046 $ 1,529,148 Foreign currency forward contracts (net) (2,281 ) (2,281 ) |
Significant Accounting Polici30
Significant Accounting Policies - Additional Information (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2018 | Apr. 30, 2017 | |
Significant Accounting Policies [Line Items] | ||||
Ownership percentage in affiliates and joint ventures | 50.00% | 50.00% | ||
Stock Options [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Options for common shares excluded from computation of diluted earning per share | 0 | 0 | 0 | 0 |
Recently Issued Accounting St31
Recently Issued Accounting Standards - Additional Information (Detail) - New Accounting Guidance Adopted [Member] - USD ($) | 6 Months Ended | |
Apr. 30, 2018 | Apr. 30, 2017 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Excess tax benefit from share based compensation , operating activities | $ 6,950 | |
Excess tax benefit from share-based compensation, reclassification from financing activities to operating activities | $ 4,908 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 02, 2018 | Mar. 31, 2017 | Apr. 30, 2018 | Apr. 30, 2018 | Apr. 30, 2017 | Oct. 31, 2017 |
Business Acquisition [Line Items] | ||||||
Acquisition of businesses, net of cash acquired | $ 44,176 | $ 805,218 | ||||
Goodwill | $ 1,616,800 | 1,616,800 | $ 1,589,210 | |||
Term loan facility | 1,539,046 | 1,539,046 | ||||
Advanced Technology Systems [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | $ 1,196,176 | $ 1,196,176 | $ 1,172,857 | |||
Sonoscan, Inc. [Member] | 2018 Acquisition [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Acquired percent of the outstanding shares | 100.00% | |||||
Acquisition of businesses, net of cash acquired | $ 44,832 | |||||
Cash acquired from business acquisition | 656 | |||||
Goodwill | 21,363 | |||||
Identifiable intangible assets | 7,910 | |||||
Sonoscan, Inc. [Member] | Customer Relationships [Member] | 2018 Acquisition [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Identifiable intangible assets | $ 1,700 | |||||
Intangible assets amortization period | 7 years | |||||
Sonoscan, Inc. [Member] | Trade Names [Member] | 2018 Acquisition [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Identifiable intangible assets | $ 3,300 | |||||
Intangible assets amortization period | 11 years | |||||
Sonoscan, Inc. [Member] | Technology-Based Intangible Assets [Member] | 2018 Acquisition [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Identifiable intangible assets | $ 2,500 | |||||
Intangible assets amortization period | 7 years | |||||
Sonoscan, Inc. [Member] | Non-compete Agreements [Member] | 2018 Acquisition [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Identifiable intangible assets | $ 410 | |||||
Intangible assets amortization period | 5 years | |||||
Vention [Member] | 2017 Acquisition [Member] | Term Loan Facility [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Term loan facility | $ 705,000 | |||||
Term loan facility due in September 2018 | 200,000 | |||||
Term loan facility due in March 2020 | 200,000 | |||||
Term loan facility due in March 2022 | 305,000 | |||||
Weighted average interest rate for borrowings | 2.99% | 2.99% | ||||
Vention [Member] | 2017 Acquisition [Member] | Advanced Technology Systems [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition of businesses, net of cash acquired | 705,000 | |||||
Cash acquired from business acquisition | 3,313 | |||||
Goodwill | 434,123 | |||||
Identifiable intangible assets | 286,000 | |||||
Acquisition of businesses, Cash and other closing adjustments | 10,726 | |||||
Business combination, goodwill, tax deductible amount | 37,200 | |||||
Business acquisition material purchase price allocation adjustments | $ 0 | |||||
Vention [Member] | Customer Relationships [Member] | 2017 Acquisition [Member] | Advanced Technology Systems [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Identifiable intangible assets | $ 240,000 | |||||
Intangible assets amortization period | 14 years | |||||
Vention [Member] | Trade Names [Member] | 2017 Acquisition [Member] | Advanced Technology Systems [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Identifiable intangible assets | $ 2,000 | |||||
Intangible assets amortization period | 6 years | |||||
Vention [Member] | Technology-Based Intangible Assets [Member] | 2017 Acquisition [Member] | Advanced Technology Systems [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Identifiable intangible assets | $ 44,000 | |||||
Vention [Member] | Technology-Based Intangible Assets Amortized over 14 Years [Member] | 2017 Acquisition [Member] | Advanced Technology Systems [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Identifiable intangible assets | $ 36,000 | |||||
Intangible assets amortization period | 14 years | |||||
Vention [Member] | Technology-Based Intangible Assets Amortized over 10 Years [Member] | 2017 Acquisition [Member] | Advanced Technology Systems [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Identifiable intangible assets | $ 8,000 | |||||
Intangible assets amortization period | 10 years |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Detail) - USD ($) $ in Thousands | Apr. 30, 2018 | Oct. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials and component parts | $ 109,078 | $ 105,424 |
Work-in-process | 53,745 | 45,743 |
Finished goods | 167,404 | 152,923 |
Inventories - gross | 330,227 | 304,090 |
Obsolescence and other reserves | (38,753) | (33,140) |
LIFO reserve | (7,111) | (6,684) |
Inventories - net | $ 284,363 | $ 264,266 |
Goodwill and Other Intangible34
Goodwill and Other Intangible Assets - Summary of Changes in Carrying Amount of Goodwill (Detail) $ in Thousands | 6 Months Ended |
Apr. 30, 2018USD ($) | |
Goodwill [Line Items] | |
Beginning balance | $ 1,589,210 |
Acquisitions | 20,561 |
Currency effect | 7,029 |
Ending balance | 1,616,800 |
Adhesive Dispensing Systems [Member] | |
Goodwill [Line Items] | |
Beginning balance | 392,295 |
Currency effect | 4,271 |
Ending balance | 396,566 |
Advanced Technology Systems [Member] | |
Goodwill [Line Items] | |
Beginning balance | 1,172,857 |
Acquisitions | 20,561 |
Currency effect | 2,758 |
Ending balance | 1,196,176 |
Industrial Coating Systems [Member] | |
Goodwill [Line Items] | |
Beginning balance | 24,058 |
Ending balance | $ 24,058 |
Goodwill and Other Intangible35
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2018 | Apr. 30, 2017 | Oct. 31, 2017 | |
Goodwill [Line Items] | |||||
Goodwill accumulated impairment loss | $ 232,789 | $ 232,789 | $ 232,789 | ||
Intangible assets, amortization expense | 14,172 | $ 10,159 | 28,061 | $ 17,789 | |
Advanced Technology Systems [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill accumulated impairment loss | 229,173 | 229,173 | 229,173 | ||
Industrial Coating Systems [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill accumulated impairment loss | $ 3,616 | $ 3,616 | $ 3,616 |
Goodwill and Other Intangible36
Goodwill and Other Intangible Assets - Summary of Intangible Assets Subject to Amortization (Detail) - USD ($) $ in Thousands | Apr. 30, 2018 | Oct. 31, 2017 |
Finite Lived Intangible Assets [Line Items] | ||
Carrying Amount | $ 751,216 | $ 736,924 |
Accumulated Amortization | 219,738 | 189,744 |
Net Book Value | 531,478 | 547,180 |
Customer Relationships [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Carrying Amount | 485,317 | 480,536 |
Accumulated Amortization | 121,602 | 102,033 |
Net Book Value | 363,715 | 378,503 |
Patent/Technology Costs [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Carrying Amount | 155,854 | 150,581 |
Accumulated Amortization | 55,215 | 48,669 |
Net Book Value | 100,639 | 101,912 |
Trade Names [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Carrying Amount | 96,994 | 93,281 |
Accumulated Amortization | 31,758 | 28,366 |
Net Book Value | 65,236 | 64,915 |
Non-compete Agreements [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Carrying Amount | 11,659 | 11,142 |
Accumulated Amortization | 9,774 | 9,298 |
Net Book Value | 1,885 | 1,844 |
Other [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Carrying Amount | 1,392 | 1,384 |
Accumulated Amortization | 1,389 | 1,378 |
Net Book Value | $ 3 | $ 6 |
Pension and Other Postretirem37
Pension and Other Postretirement Plans - Net Periodic Benefit Cost (Detail) - Pension Plans [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2018 | Apr. 30, 2017 | |
United States [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 3,054 | $ 3,184 | $ 6,875 | $ 6,243 |
Interest cost | 3,658 | 3,243 | 7,159 | 6,454 |
Expected return on plan assets | (5,489) | (5,265) | (10,981) | (10,443) |
Amortization of prior service cost (credit) | (3) | 11 | (11) | 23 |
Amortization of net actuarial loss | 2,550 | 2,457 | 4,706 | 4,785 |
Total benefit cost | 3,770 | 3,630 | 7,748 | 7,062 |
International [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 528 | 625 | 1,038 | 1,159 |
Interest cost | 424 | 419 | 833 | 768 |
Expected return on plan assets | (393) | (358) | (773) | (643) |
Amortization of prior service cost (credit) | (83) | (76) | (162) | (147) |
Amortization of net actuarial loss | 548 | 662 | 1,077 | 1,261 |
Total benefit cost | $ 1,024 | $ 1,272 | $ 2,013 | $ 2,398 |
Pension and Other Postretirem38
Pension and Other Postretirement Plans - Other Postretirement Benefit Cost (Detail) - Postretirement Benefit Costs [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2018 | Apr. 30, 2017 | |
United States [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 152 | $ 154 | $ 373 | $ 376 |
Interest cost | 650 | 565 | 1,278 | 1,152 |
Amortization of prior service cost (credit) | (25) | (41) | (50) | (82) |
Amortization of net actuarial (gain) loss | 296 | 205 | 545 | 434 |
Total benefit cost | 1,073 | 883 | 2,146 | 1,880 |
International [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 5 | 5 | 10 | 9 |
Interest cost | 5 | 5 | 10 | 10 |
Amortization of net actuarial (gain) loss | (5) | (4) | (10) | (8) |
Total benefit cost | $ 5 | $ 6 | $ 10 | $ 11 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 2 Months Ended | 3 Months Ended | 4 Months Ended | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2018 | Apr. 30, 2018 | Apr. 30, 2017 | Oct. 31, 2018 | |
Income Tax [Line Items] | |||||||
Effective tax rates | 22.80% | 31.80% | 11.70% | 30.60% | |||
U.S. federal corporate income tax rate | 35.00% | 21.00% | |||||
Provisional tax benefit due to revaluation of tax assets and liabilities at reduced corporate tax rate | $ 45,213 | ||||||
Provisional tax expense to reflect the transition tax on previously deferred foreign earnings | $ 23,124 | ||||||
Decrease in income tax expense | $ 22,089 | ||||||
Payment of transition tax in installments, period | 8 years | ||||||
Discrete tax benefit | $ 2,202 | $ 6,950 | |||||
Discrete tax expense related to nondeductible acquisition costs | $ 2,600 | ||||||
Scenario Plan | |||||||
Income Tax [Line Items] | |||||||
U.S. federal corporate income tax rate | 23.30% |
Accumulated Other Comprehensi40
Accumulated Other Comprehensive Loss - Summary of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2018 | Apr. 30, 2017 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Accumulated other comprehensive income (loss), Beginning balance | $ (134,435) | |||
Pension and postretirement plan changes, net of tax | $ 2,812 | $ 1,708 | 4,321 | $ 3,398 |
Currency translation losses | (19,284) | $ 5,849 | 19,298 | $ 99 |
Accumulated other comprehensive loss, Ending balance | (110,816) | (110,816) | ||
Cumulative Translation Adjustments [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Accumulated other comprehensive income (loss), Beginning balance | (28,423) | |||
Currency translation losses | 19,298 | |||
Accumulated other comprehensive loss, Ending balance | (9,125) | (9,125) | ||
Pension And Postretirement Benefit Plan Adjustments [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Accumulated other comprehensive income (loss), Beginning balance | (106,012) | |||
Pension and postretirement plan changes, net of tax | 4,321 | |||
Accumulated other comprehensive loss, Ending balance | $ (101,691) | $ (101,691) |
Accumulated Other Comprehensi41
Accumulated Other Comprehensive Loss - Summary of Accumulated Other Comprehensive Loss (Parenthetical) (Detail) $ in Thousands | 6 Months Ended |
Apr. 30, 2018USD ($) | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Pension and postretirement plan changes, tax | $ (1,334) |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Maximum number of common shares available for grant | 4,525 | 4,525 | |||
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 | $ 30 | $ 26 | $ 61 | $ 52 | |
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 | 2,454 | 2,312 | $ 5,071 | $ 4,634 | |
Options exercisable beginning period | 1 year | ||||
Normal retirement age | 65 years | ||||
Period for options considered to be forfeited for retirees | 12 months | ||||
Termination period on death or disability of option holder | 12 months | ||||
Options grants in period vesting period | Dec. 28, 2017 | ||||
Unrecognized compensation cost related to unvested stock option | 12,874 | $ 12,874 | |||
Weighted average period expected to be amortized, non vested shares | 1 year 6 months | ||||
Weighted-average expected volatility used | 25.00% | 29.10% | |||
Weighted average grant date fair value of stock options granted | $ 31.42 | $ 28.86 | |||
Total intrinsic value of options exercised | 11,021 | 6,806 | $ 29,744 | $ 19,256 | |
Cash received from the exercise of stock options | $ 15,595 | 12,040 | |||
Stock Options [Member] | Maximum [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Maximum rate of stock option | 25.00% | ||||
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] | |||||
Normal retirement age | 65 years | ||||
Weighted average period expected to be amortized, non vested shares | 2 years | ||||
Period for restricted shares and share units considered to be forfeited for retirees | 12 months | ||||
Restricted shares termination period for disability or death | 12 months | ||||
Restriction period for restricted shares granted | Dec. 28, 2017 | ||||
Unrecognized compensation cost related to nonvested restricted stock | 4,058 | $ 4,058 | |||
Expense related to nonvested common shares | 637 | 510 | 1,391 | 1,088 | |
Common share dividends amount included in compensation cost | 17 | 15 | $ 34 | 31 | |
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 | 6 months | ||||
Period for pro-rata vesting of shares or units for non-employee directors | 1 year | ||||
Unrecognized compensation cost related to nonvested restricted stock | 500 | $ 500 | |||
Expense related to nonvested common shares | 252 | 253 | $ 505 | 506 | |
Performance Share Incentive Awards [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Weighted average grant date fair value | $ 123.45 | $ 67.69 | |||
Compensation expense | 1,637 | 3,178 | $ 4,986 | $ 3,430 | |
Cumulative amount recorded in shareholders' equity related to Long-Term Incentive Plan | 12,108 | $ 12,108 | |||
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 | $ 67 | $ 68 | $ 134 | $ 129 | |
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 | 6 Months Ended |
Apr. 30, 2018USD ($)$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Options, Outstanding, Beginning balance | shares | 1,922 |
Number of Options, Granted | shares | 368 |
Number of Options, Exercised | shares | (319) |
Number of Options, Forfeited or expired | shares | (5) |
Number of Options, Outstanding, Ending balance | shares | 1,966 |
Number of Options, Vested or expected to vest | shares | 1,944 |
Number of Options, Exercisable | shares | 1,023 |
Weighted-Average Exercise Price Per Share, Outstanding, Beginning balance | $ / shares | $ 70.08 |
Weighted-Average Exercise Price Per Share, Granted | $ / shares | 127.67 |
Weighted-Average Exercise Price Per Share, Exercised | $ / shares | 48.94 |
Weighted-Average Exercise Price Per Share, Forfeited or expired | $ / shares | 95.48 |
Weighted-Average Exercise Price Per Share, Outstanding, Ending balance | $ / shares | 84.21 |
Weighted-Average Exercise Price Per Share, Vested or expected to vest | $ / shares | 83.83 |
Weighted-Average Exercise Price Per Share, Exercisable | $ / shares | $ 65.54 |
Aggregate Intrinsic Value, Outstanding | $ | $ 87,282 |
Aggregate Intrinsic Value, Vested or expected to vest | $ | 87,036 |
Aggregate Intrinsic Value, Exercisable | $ | $ 64,539 |
Weighted Average Remaining Term, Outstanding | 6 years 10 months 24 days |
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] | 6 Months Ended | |
Apr. 30, 2018 | Apr. 30, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected volatility, Minimum | 24.00% | 26.00% |
Expected volatility, Maximum | 26.70% | 29.20% |
Expected dividend yield | 0.97% | |
Risk-free interest rate, Minimum | 2.09% | 1.89% |
Risk-free interest rate, Maximum | 2.20% | 2.06% |
Minimum [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected dividend yield | 0.91% | |
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 dividend yield | 1.17% | |
Expected life of the option (in years) | 6 years 2 months 12 days | 6 years 2 months 12 days |
Stock-Based Compensation - Su45
Stock-Based Compensation - Summarized Activity Related to Restricted Stock (Detail) - Restricted Stock [Member] shares in Thousands | 6 Months Ended |
Apr. 30, 2018$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Restricted Shares, Beginning balance | shares | 58 |
Number of Restricted Shares, Granted | shares | 20 |
Number of Restricted Shares, Vested | shares | (23) |
Number of Restricted Shares, Ending balance | shares | 55 |
Weighted-Average Grant Date Fair Value, Restricted Shares, Beginning balance | $ / shares | $ 90.38 |
Weighted-Average Grant Date Fair Value, Granted | $ / shares | 127.68 |
Weighted-Average Grant Date Fair Value, Vested | $ / shares | 84.78 |
Weighted-Average Grant Date Fair Value, Restricted Shares, Ending balance | $ / shares | $ 106.33 |
Stock-Based Compensation - Su46
Stock-Based Compensation - Summarized Activity Related to Restricted Stock Units (Detail) - Restricted Stock Unit [Member] shares in Thousands | 6 Months Ended |
Apr. 30, 2018$ / 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 | 8 |
Number of Restricted Shares, Ending balance | 8 |
Weighted-Average Grant Date Fair Value, Granted | $ / shares | $ 126.38 |
Weighted-Average Grant Date Fair Value, Restricted Shares, Ending balance | $ / shares | $ 126.38 |
Stock-Based Compensation - Su47
Stock-Based Compensation - Summarized Activity Related to Director Deferred Compensation Shares (Detail) - Directors [Member] - Deferred Compensation Share Equivalent Units [Member] shares in Thousands | 6 Months Ended |
Apr. 30, 2018$ / sharesshares | |
Deferred Compensation Arrangement With Individual Share Based Payments [Line Items] | |
Number of Shares, Outstanding, Beginning balance | shares | 101 |
Number of Shares, Dividend equivalents | shares | 1 |
Number of Shares, Outstanding, Ending balance | shares | 102 |
Weighted-Average Grant Date Fair Value, Beginning balance | $ / shares | $ 46.74 |
Weighted-Average Grant Date Fair Value, Dividend equivalents | $ / shares | 141.77 |
Weighted-Average Grant Date Fair Value, Ending balance | $ / shares | $ 47.14 |
Warranties - Additional Informa
Warranties - Additional Information (Detail) | 6 Months Ended |
Apr. 30, 2018 | |
Guarantees [Abstract] | |
Product warranty period | 1 year |
Warranties - Reconciliation of
Warranties - Reconciliation of Product Warranty Liability (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Apr. 30, 2018 | Apr. 30, 2017 | |
Guarantees [Abstract] | ||
Beginning balance at October 31 | $ 13,377 | $ 11,770 |
Accruals for warranties | 5,937 | 5,148 |
Warranty assumed from acquisitions | 61 | |
Warranty payments | (6,642) | (4,821) |
Currency effect | 227 | 2 |
Ending balance | $ 12,899 | $ 12,160 |
Operating Segments - Additional
Operating Segments - Additional Information (Detail) | 6 Months Ended |
Apr. 30, 2018Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Operating Segments - Segments (
Operating Segments - Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2018 | Apr. 30, 2017 | |||||
Segment Reporting Information [Line Items] | ||||||||
Net external sales | $ 553,706 | $ 496,137 | $ 1,104,130 | $ 903,607 | ||||
Operating profit (loss) | 126,705 | 103,531 | 244,428 | 179,449 | ||||
Operating Segments [Member] | Adhesive Dispensing Systems [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net external sales | 238,775 | 226,943 | 459,639 | 434,780 | ||||
Operating profit (loss) | 69,514 | [1] | 65,719 | [2] | 122,829 | [1] | 118,775 | [2] |
Operating Segments [Member] | Advanced Technology Systems [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net external sales | 250,839 | 210,142 | 522,540 | 355,502 | ||||
Operating profit (loss) | 58,306 | 54,306 | 125,574 | 80,669 | ||||
Operating Segments [Member] | Industrial Coating Systems [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net external sales | 64,092 | 59,052 | 121,951 | 113,325 | ||||
Operating profit (loss) | 11,572 | 10,252 | 21,732 | 17,337 | ||||
Corporate [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Operating profit (loss) | $ (12,687) | $ (26,746) | $ (25,707) | $ (37,332) | ||||
[1] | Includes $1,082 and $2,149 of severance and restructuring costs in the three and six months ended April 30, 2018, respectively. | |||||||
[2] | Includes $491 and $718 of severance and restructuring costs in the three and six months ended April 30, 2017, respectively. |
Operating Segments - Segments52
Operating Segments - Segments (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2018 | Apr. 30, 2017 | |
Adhesive Dispensing Systems [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Severance and restructuring costs | $ 1,082 | $ 491 | $ 2,149 | $ 718 |
Operating Segments - Reconcilia
Operating Segments - Reconciliation of Segment Operating Income to Consolidated Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2018 | Apr. 30, 2017 | |
Segment Reporting [Abstract] | ||||
Total profit for reportable segments | $ 126,705 | $ 103,531 | $ 244,428 | $ 179,449 |
Interest expense | (12,127) | (7,907) | (23,445) | (13,548) |
Interest and investment income | 219 | 272 | 509 | 545 |
Other - net | 3,322 | (1,323) | 145 | (1,480) |
Income before income taxes | $ 118,119 | $ 94,573 | $ 221,637 | $ 164,966 |
Operating Segments - Sales Info
Operating Segments - Sales Information by Geographic Regions (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2018 | Apr. 30, 2017 | |
Net external sales | ||||
Net external sales | $ 553,706 | $ 496,137 | $ 1,104,130 | $ 903,607 |
United States [Member] | ||||
Net external sales | ||||
Net external sales | 178,821 | 156,095 | 344,652 | 281,616 |
Americas [Member] | ||||
Net external sales | ||||
Net external sales | 38,959 | 36,326 | 73,238 | 66,368 |
Europe [Member] | ||||
Net external sales | ||||
Net external sales | 154,736 | 128,468 | 296,674 | 247,627 |
Japan [Member] | ||||
Net external sales | ||||
Net external sales | 33,030 | 30,855 | 98,899 | 55,032 |
Asia Pacific [Member] | ||||
Net external sales | ||||
Net external sales | $ 148,160 | $ 144,393 | $ 290,667 | $ 252,964 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Recurring [Member] $ in Thousands | Apr. 30, 2018USD ($) | |
Assets: | ||
Foreign currency forward contracts | $ 3,213 | [1] |
Total assets at fair value | 3,213 | |
Liabilities: | ||
Deferred compensation plans | 11,796 | [2] |
Foreign currency forward contracts | 5,494 | [1] |
Total liabilities at fair value | 17,290 | |
Level 2 [Member] | ||
Assets: | ||
Foreign currency forward contracts | 3,213 | [1] |
Total assets at fair value | 3,213 | |
Liabilities: | ||
Deferred compensation plans | 11,796 | [2] |
Foreign currency forward contracts | 5,494 | [1] |
Total liabilities at fair value | $ 17,290 | |
[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. Foreign currency forward contracts in an asset position are classified in Receivables-net and foreign currency forward contracts in a liability position are classified in Accrued liabilities on the Consolidated Balance Sheets. | |
[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 - Sch56
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Parenthetical) (Detail) | 6 Months Ended |
Apr. 30, 2018 | |
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 | 6 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2018 | Apr. 30, 2017 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||||
Maturity of foreign currency forward contracts | 90 days | |||
Gains (losses) on foreign currency forward contracts | $ (1,607) | $ (1,687) | $ (2,571) | $ (1,900) |
Gains (losses) in fair value of balance sheet positions denominated in foreign currencies | $ 2,584 | $ 702 | $ 1,602 | $ 906 |
Financial Instruments - Outstan
Financial Instruments - Outstanding Currency, Forward Exchange Contracts (Detail) $ in Thousands | Apr. 30, 2018USD ($) |
Derivative [Line Items] | |
Fair Value of foreign currency derivative contracts | $ (2,281) |
Foreign Currency Forward Contracts [Member] | Sell [Member] | |
Derivative [Line Items] | |
Notional Amounts of foreign currency derivative contracts | 236,338 |
Fair Value of foreign currency derivative contracts | 231,213 |
Foreign Currency Forward Contracts [Member] | Buy [Member] | |
Derivative [Line Items] | |
Notional Amounts of foreign currency derivative contracts | 361,399 |
Fair Value of foreign currency derivative contracts | 353,994 |
Euro [Member] | Foreign Currency Forward Contracts [Member] | Sell [Member] | |
Derivative [Line Items] | |
Notional Amounts of foreign currency derivative contracts | 152,436 |
Fair Value of foreign currency derivative contracts | 149,658 |
Euro [Member] | Foreign Currency Forward Contracts [Member] | Buy [Member] | |
Derivative [Line Items] | |
Notional Amounts of foreign currency derivative contracts | 82,687 |
Fair Value of foreign currency derivative contracts | 80,189 |
British Pound [Member] | Foreign Currency Forward Contracts [Member] | Sell [Member] | |
Derivative [Line Items] | |
Notional Amounts of foreign currency derivative contracts | 43,914 |
Fair Value of foreign currency derivative contracts | 42,617 |
British Pound [Member] | Foreign Currency Forward Contracts [Member] | Buy [Member] | |
Derivative [Line Items] | |
Notional Amounts of foreign currency derivative contracts | 58,981 |
Fair Value of foreign currency derivative contracts | 57,370 |
Japanese Yen [Member] | Foreign Currency Forward Contracts [Member] | Sell [Member] | |
Derivative [Line Items] | |
Notional Amounts of foreign currency derivative contracts | 32,610 |
Fair Value of foreign currency derivative contracts | 31,785 |
Japanese Yen [Member] | Foreign Currency Forward Contracts [Member] | Buy [Member] | |
Derivative [Line Items] | |
Notional Amounts of foreign currency derivative contracts | 35,260 |
Fair Value of foreign currency derivative contracts | 34,116 |
Australian Dollar [Member] | Foreign Currency Forward Contracts [Member] | Sell [Member] | |
Derivative [Line Items] | |
Notional Amounts of foreign currency derivative contracts | 194 |
Fair Value of foreign currency derivative contracts | 188 |
Australian Dollar [Member] | Foreign Currency Forward Contracts [Member] | Buy [Member] | |
Derivative [Line Items] | |
Notional Amounts of foreign currency derivative contracts | 8,137 |
Fair Value of foreign currency derivative contracts | 7,774 |
Hong Kong Dollar [Member] | Foreign Currency Forward Contracts [Member] | Sell [Member] | |
Derivative [Line Items] | |
Notional Amounts of foreign currency derivative contracts | 2,170 |
Fair Value of foreign currency derivative contracts | 2,166 |
Hong Kong Dollar [Member] | Foreign Currency Forward Contracts [Member] | Buy [Member] | |
Derivative [Line Items] | |
Notional Amounts of foreign currency derivative contracts | 110,723 |
Fair Value of foreign currency derivative contracts | 111,005 |
Singapore Dollar [Member] | Foreign Currency Forward Contracts [Member] | Sell [Member] | |
Derivative [Line Items] | |
Notional Amounts of foreign currency derivative contracts | 616 |
Fair Value of foreign currency derivative contracts | 608 |
Singapore Dollar [Member] | Foreign Currency Forward Contracts [Member] | Buy [Member] | |
Derivative [Line Items] | |
Notional Amounts of foreign currency derivative contracts | 13,143 |
Fair Value of foreign currency derivative contracts | 12,967 |
Others [Member] | Foreign Currency Forward Contracts [Member] | Sell [Member] | |
Derivative [Line Items] | |
Notional Amounts of foreign currency derivative contracts | 4,398 |
Fair Value of foreign currency derivative contracts | 4,191 |
Others [Member] | Foreign Currency Forward Contracts [Member] | Buy [Member] | |
Derivative [Line Items] | |
Notional Amounts of foreign currency derivative contracts | 52,468 |
Fair Value of foreign currency derivative contracts | $ 50,573 |
Financial Instruments - Carryin
Financial Instruments - Carrying Amounts and Fair Values of Financial Instruments, Other than Cash and Cash Equivalents, Receivables and Accounts Payable (Detail) $ in Thousands | Apr. 30, 2018USD ($) |
Schedule Of Carrying Amounts And Fair Values Of Financial Instruments [Abstract] | |
Long-term debt, including current maturities, Carrying Amount | $ 1,539,046 |
Foreign currency forward contracts (net), Carrying Amount | (2,281) |
Long-term debt, including current maturities, Fair Value | 1,529,148 |
Foreign currency forward contracts (net), Fair Value | $ (2,281) |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) $ in Thousands | May 17, 2018 | Mar. 31, 2017 | Apr. 30, 2018 | Oct. 31, 2017 |
Subsequent Event [Line Items] | ||||
Term loan facility | $ 1,539,046 | |||
Current maturities of long-term debt | 226,587 | $ 326,587 | ||
Term Loan Facility [Member] | ||||
Subsequent Event [Line Items] | ||||
Maturity due date | Sep. 30, 2018 | |||
Current maturities of long-term debt | $ 200,000 | |||
Term Loan Facility [Member] | Subsequent Events [Member] | ||||
Subsequent Event [Line Items] | ||||
Term loan facility | $ 705,000 | |||
Term loan facility due in September 30, 2021 | $ 200,000 | |||
Maturity due date | Sep. 30, 2021 |