Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jan. 31, 2020 | Feb. 29, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jan. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | NDSN | |
Entity Registrant Name | NORDSON CORPORATION | |
Entity Central Index Key | 0000072331 | |
Current Fiscal Year End Date | --10-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 57,858,486 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 0-7977 | |
Entity Tax Identification Number | 34-0590250 | |
Entity Address, Address Line One | 28601 Clemens Road | |
Entity Address, City or Town | Westlake | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 44145 | |
City Area Code | 440 | |
Local Phone Number | 892-1580 | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Shares, without par value | |
Security Exchange Name | NASDAQ | |
Entity Incorporation, State or Country Code | OH | |
Document Quarterly Report | true | |
Document Transition Report | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Income Statement [Abstract] | ||
Sales | $ 494,916 | $ 497,910 |
Operating costs and expenses: | ||
Cost of sales | 231,722 | 228,934 |
Selling and administrative expenses | 188,101 | 184,695 |
Total operating costs and expenses | 419,823 | 413,629 |
Operating profit | 75,093 | 84,281 |
Other income (expense): | ||
Interest expense | (9,740) | (12,365) |
Interest and investment income | 588 | 316 |
Other - net | (2,846) | (4,189) |
Total other income (expense) | (11,998) | (16,238) |
Income before income taxes | 63,095 | 68,043 |
Income taxes | 11,091 | 19,476 |
Net income | $ 52,004 | $ 48,567 |
Average common shares | 57,668 | 57,702 |
Incremental common shares attributable to outstanding stock options, restricted stock, and deferred stock-based compensation | 856 | 670 |
Average common shares and common share equivalents | 58,524 | 58,372 |
Basic earnings per share | $ 0.90 | $ 0.84 |
Diluted earnings per share | $ 0.89 | $ 0.83 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income | $ 52,004 | $ 48,567 |
Components of other comprehensive income: | ||
Foreign currency translation adjustments | 2,793 | 16,463 |
Amortization of prior service cost and net actuarial losses, net of tax | 3,229 | 1,352 |
Total other comprehensive income | 6,022 | 17,815 |
Total comprehensive income | $ 58,026 | $ 66,382 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (UNAUDITED) - USD ($) $ in Thousands | Jan. 31, 2020 | Oct. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 115,097 | $ 151,164 |
Receivables - net | 471,626 | 530,765 |
Inventories - net | 294,768 | 283,399 |
Prepaid expenses and other current assets | 48,833 | 45,867 |
Total current assets | 930,324 | 1,011,195 |
Property, plant and equipment - net | 400,636 | 398,895 |
Operating right of use lease assets | 130,060 | |
Goodwill | 1,613,866 | 1,614,739 |
Intangible assets - net | 431,531 | 445,575 |
Deferred income taxes | 11,153 | 11,261 |
Other assets | 33,297 | 34,782 |
Total assets | 3,550,867 | 3,516,447 |
Current liabilities: | ||
Accounts payable | 78,087 | 85,139 |
Income taxes payable | 14,089 | 15,601 |
Accrued liabilities | 135,443 | 161,655 |
Customer advanced payments | 47,849 | 41,131 |
Current maturities of long-term debt | 43,598 | 168,738 |
Operating lease liability - current | 18,590 | |
Finance lease liability - current | 5,665 | 5,362 |
Total current liabilities | 343,321 | 477,626 |
Long-term debt | 1,074,314 | 1,075,404 |
Operating lease liability - noncurrent | 115,682 | |
Finance lease liability - noncurrent | 10,086 | 9,513 |
Deferred income taxes | 84,249 | 83,564 |
Pension obligations | 161,099 | 158,506 |
Postretirement obligations | 86,675 | 86,368 |
Other long-term liabilities | 41,167 | 44,421 |
Shareholders' equity: | ||
Common shares | 12,253 | 12,253 |
Capital in excess of stated value | 501,551 | 483,116 |
Retained earnings | 2,776,684 | 2,747,650 |
Accumulated other comprehensive loss | (225,859) | (231,881) |
Common shares in treasury, at cost | (1,430,355) | (1,430,093) |
Total shareholders' equity | 1,634,274 | 1,581,045 |
Total liabilities and shareholders' equity | $ 3,550,867 | $ 3,516,447 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders' Equity (UNAUDITED) - USD ($) $ in Thousands | Total | Common Shares [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Common Shares in Treasury, At Cost [Member] |
Balance at Oct. 31, 2018 | $ 1,450,741 | $ 12,253 | $ 446,555 | $ 2,488,375 | $ (179,314) | $ (1,317,128) |
Shares issued under company stock and employee benefit plans | 3,607 | 1,016 | 2,591 | |||
Stock-based compensation | 4,359 | 4,359 | ||||
Purchase of treasury shares, value | (107,667) | (107,667) | ||||
Dividends declared | (20,210) | (20,210) | ||||
Net income | 48,567 | 48,567 | ||||
Impact of adoption of ASU | ASU 2014-09 [Member] | 4,329 | 4,329 | ||||
Other Comprehensive Income: | ||||||
Foreign currency translation adjustments | 16,463 | 16,463 | ||||
Defined benefit pension and post-retirement plans adjustment | 1,352 | 1,352 | ||||
Balance at Jan. 31, 2019 | 1,401,541 | 12,253 | 451,930 | 2,521,061 | (161,499) | (1,422,204) |
Balance at Oct. 31, 2019 | 1,581,045 | 12,253 | 483,116 | 2,747,650 | (231,881) | (1,430,093) |
Shares issued under company stock and employee benefit plans | 16,379 | 12,330 | 4,049 | |||
Stock-based compensation | 6,105 | 6,105 | ||||
Purchase of treasury shares, value | (4,311) | (4,311) | ||||
Dividends declared | (21,915) | (21,915) | ||||
Net income | 52,004 | 52,004 | ||||
Impact of adoption of ASU | ASU 2016-02 [Member] | (1,055) | (1,055) | ||||
Other Comprehensive Income: | ||||||
Foreign currency translation adjustments | 2,793 | 2,793 | ||||
Defined benefit pension and post-retirement plans adjustment | 3,229 | 3,229 | ||||
Balance at Jan. 31, 2020 | $ 1,634,274 | $ 12,253 | $ 501,551 | $ 2,776,684 | $ (225,859) | $ (1,430,355) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Shareholders' Equity (UNAUDITED) (Parenthetical) - $ / shares shares in Thousands | 3 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Statement Of Stockholders Equity [Abstract] | ||
Purchase of treasury shares, shares | 26,223 | 901,545 |
Dividends declared per share | $ 0.38 | $ 0.35 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 52,004 | $ 48,567 |
Depreciation and amortization | 28,618 | 27,748 |
Non-cash stock compensation | 6,105 | 4,359 |
Deferred income taxes | (182) | (483) |
Other non-cash expense | 1,135 | 989 |
Loss on sale of property, plant and equipment | 109 | 1,475 |
Changes in operating assets and liabilities | 28,486 | (25,808) |
Net cash provided by operating activities | 116,275 | 56,847 |
Cash flows from investing activities: | ||
Additions to property, plant and equipment | (13,881) | (14,121) |
Proceeds from sale of property, plant and equipment | 65 | 260 |
Acquisition of businesses, net of cash acquired | (14) | |
Net cash used in investing activities | (13,816) | (13,875) |
Cash flows from financing activities: | ||
Proceeds from long-term debt | 70,489 | |
Repayment of long-term debt | (125,951) | (34) |
Repayment of finance lease obligations | (2,421) | (1,481) |
Issuance of common shares | 16,379 | 3,606 |
Purchase of treasury shares | (4,311) | (107,667) |
Dividends paid | (21,915) | (20,210) |
Net cash used in financing activities | (138,219) | (55,297) |
Effect of exchange rate changes on cash | (307) | 2,193 |
Decrease in cash and cash equivalents | (36,067) | (10,132) |
Cash and cash equivalents: | ||
Beginning of year | 151,164 | 95,678 |
End of period | $ 115,097 | $ 85,546 |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Jan. 31, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 1. Significant accounting policies Basis of presentation Basis of consolidation Use of estimates Revenue recognition — A contract exists when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of the consideration is probable. Revenue is recognized when performance obligations under the terms of the contract with a customer are satisfied. Generally, our revenue results from short-term, fixed-price contracts and primarily is recognized as of a point in time when the product is shipped or at a later point when the control of the product transfers to the customer. Revenue for undelivered items is deferred and included within Accrued liabilities in our Consolidated Balance Sheets. Revenues deferred as of January 31, 2020 and 2019 were not material. However, for certain contracts related to the sale of customer-specific products within our Advanced Technology Systems segment, revenue for these contracts is recognized over time as we satisfy performance obligations because of the continuous transfer of control to the customer. The continuous transfer of control to the customer occurs as we enhance assets that are customer controlled and we are contractually entitled to payment for work performed to date plus a reasonable margin. As control transfers over time for these products or services, revenue is recognized based on progress toward completion of the performance obligations. The selection method to measure progress towards completion requires judgment and is based on the nature of the products or services to be provided. We have elected to use the input method – costs incurred for these contracts because it best depicts the transfer of products or services to the customer based on incurring costs on the contract. Under this method, revenues are recorded proportionally as costs are incurred. Contract assets recognized are recorded in Prepaid expenses and other current assets and contract liabilities are recorded in Accrued liabilities in our Consolidated Balance Sheets and were not material at January 31, 2020 and October 31, 2019. Revenue recognized over time is not material to our overall Consolidated Financial Statements. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring products or services. Sales, value add, and other taxes we collect concurrently with revenue-producing activities are excluded from revenue. As a practical expedient, we may exclude the assessment of whether goods or services are performance obligations, if they are immaterial in the context of the contract, and combine these with other performance obligations. While payment terms and conditions vary by contract type, we have determined that our contracts generally do not include a significant financing component. We have elected to apply the practical expedient to treat all shipping and handling costs as fulfillment costs as a significant portion of these costs are incurred prior to transfer of control to the customer. We have also elected to apply the practical expedient to expense sales commissions as they are incurred as the amortization period resulting from capitalizing the costs is one year or less. These costs are recorded within Selling, general and administrative expenses in our Consolidated Statements of Income. We offer assurance type warranties on our products as well as separately sold warranty contracts. Revenue related to warranty contracts that are sold separately is recognized over the life of the warranty term. Certain arrangements may include installation, installation supervision, training, and spare parts, which tend to be completed in a short period of time, at an insignificant cost, and utilizing skills not unique to us, and, therefore, are typically regarded as inconsequential or not material. We disclose disaggregated revenues by operating segment and geography in accordance with the revenue standard and on the same basis used internally by the chief operating decision maker for evaluating performance of operating segments and for allocating resources. Refer to Note 11 for details on our operating segments. Earnings per share ptions were excluded from the calculation of diluted earnings per share for the three months ended January 31, 2020. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 3 Months Ended |
Jan. 31, 2020 | |
Accounting Changes And Error Corrections [Abstract] | |
Recently Issued Accounting Standards | 2 . Recently issued accounting standards New accounting guidance adopted: On November 1, 2019, we adopted ASU 2016-02, Accounting Standards Codification (ASC) 842, “Leases.” This standard requires a lessee to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases with a lease term of more than 12 months. We elected to use the transition option, which allows entities to initially apply the new standard at the adoption date and recognize a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption without restating prior periods. New accounting guidance issued and not yet adopted: In June 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326),” a new standard that changes the impairment model for most financial instruments. Current guidance requires the recognition of credit losses based on an incurred loss impairment methodology that reflects losses once the losses are probable. We will be required to use a current expected credit loss model that will immediately recognize an estimate of credit losses that are expected to occur over the life of the financial instruments that are in the scope of this update, including trade receivables. The standard does not prescribe a specific method to make an estimate so the application will require judgment and should consider historical information, current information, and reasonable and supportable forecasts, and includes estimates of prepayment. This guidance will become effective for us on November 1, 2020. We are currently assessing the impact this standard will have on the Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820),” a new standard which removes, modifies, and adds certain disclosure requirements on fair value measurements. The guidance removes disclosure requirements pertaining to the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels, and the valuation processes for Level 3 fair value measurements. For investments in certain entities that calculate net asset value, an entity is required to disclose the timing of liquidation of an investee’s assets and the date when restrictions from redemption might lapse only if the investee has communicated the timing to the entity or announced the timing publicly. In addition, the amendment clarifies that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date. The guidance adds disclosure requirements for changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period as well as the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. It will be effective for us beginning November 1, 2020. Early adoption is permitted. We are currently assessing the impact this standard will have on our Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-14, “Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20),” a new standard which addresses defined benefit plans. The amendments modify the following disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans: the amounts in accumulated other comprehensive income expected to be recognized as components of net period benefit cost over the next fiscal year, amount and timing of plan assets expected to be returned to the employer, related party disclosure about the amount of future annual benefits covered by insurance and annuity contracts and significant transactions between the employer or related parties and the plan, and the effects of a one-percentage point change in assumed health care cost trend rates on the (a) aggregate of the service and interest cost components of net periodic benefit costs and (b) benefit obligations for postretirement health care benefits. A disclosure requirement was added for the explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. Additionally, the standard clarifies disclosure requirement surrounding the projected benefit obligation (PBO) and fair value of plan assets for plans with PBOs in excess of plan assets and the accumulated benefit obligation (ABO) and fair value of plan assets for plans with ABOs in excess of plan assets. It will be effective for us beginning November 1, 2021. Early adoption is permitted. We are currently assessing the impact this standard will have on our Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-15, “Intangibles – Goodwill and Other Internal-Use Software (Subtopic 350-40),” a new standard which makes a number of changes meant to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement (hosting arrangement), by providing guidance in determining when the arrangement includes a software license. In December 2019, the FASB issued ASU 2019-12, “Income Taxes (ASC 740) – Simplifying the Accounting for Income Taxes,” which simplifies the accounting for income taxes by removing certain exceptions to the general principles in ASC 740. The amendments also improve consistent application of and simplify U.S. GAAP for other areas of ASC 740 by clarifying and amending existing guidance. It will be effective for us beginning November 1, 2021. Early adoption is permitted, including adoption in any interim period for which financial statements have not yet been issued. Depending on the amendment, adoption may be applied on the retrospective, modified retrospective or prospective basis. We are currently assessing the impact of this standard on our Consolidated Financial Statements. |
Acquisitions
Acquisitions | 3 Months Ended |
Jan. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | 3 . Acquisitions Business acquisitions have been accounted for using the acquisition method, with the acquired assets and liabilities recorded at estimated fair value on the dates of acquisition. The cost in excess of the net assets of the business acquired is included in goodwill. Operating results since the respective dates of acquisitions are included in the Consolidated Statements of Income. 2019 acquisition On July 1, 2019, we purchased certain assets of Optical Control GmbH & Co. KG (“Optical”), a Nuremberg, Germany designer and developer of high speed, fully automatic counting systems utilizing x-ray technology. This transaction was not material to our Consolidated Financial Statements. We recorded the acquisition of Optical based on the fair value of the assets acquired and the liabilities assumed. Goodwill associated with this acquisition is tax deductible. This acquisition is being reported in our Advanced Technology Systems segment. As of January 31, 2020, the purchase price allocations remain preliminary as we complete our assessments of income taxes. 2018 acquisitions On October 17, 2018, we purchased 100 percent of the outstanding shares of Cladach Nua Teoranta (“Clada”), a Galway, Ireland designer and developer primarily focused on medical balloons and balloon catheters. Clada’s technologies are used in key applications such as angioplasty and the treatment of vascular disease. We acquired Clada for an aggregate purchase price of $5,236, which included an earn-out liability of $1,131. Based on the fair value of the assets acquired and the liabilities assumed, goodwill of $3,776 and identifiable intangible assets of $697 were recorded. The identifiable intangible assets consist primarily of $58 of customer relationships (amortized over 6 years), $70 of tradenames (amortized over 9 years), $499 of technology (amortized over 7 years) and $70 of non-compete agreements (amortized over 3 years). Goodwill associated with this acquisition is not tax deductible. This acquisition is being reported in our Advanced Technology Systems segment. 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 $46,018, net of $655 of cash. Based on the fair value of the assets acquired and the liabilities assumed, goodwill of $22,775 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. |
Inventories
Inventories | 3 Months Ended |
Jan. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | 4 . At January 31, 2020 and October 31, 2019, inventories consisted of the following: January 31, 2020 October 31, 2019 Raw materials and component parts $ 104,466 $ 102,044 Work-in-process 47,789 42,904 Finished goods 190,770 183,973 343,025 328,921 Obsolescence and other reserves (41,729 ) (39,377 ) LIFO reserve (6,528 ) (6,145 ) $ 294,768 $ 283,399 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Jan. 31, 2020 | |
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 three months ended January 31, 2020 by operating segment are as follows: Adhesive Systems Advanced Systems Industrial Systems Total Balance at October 31, 2019 $ 387,403 $ 1,203,278 $ 24,058 $ 1,614,739 Currency effect (558 ) (315 ) — (873 ) Balance at January 31, 2020 $ 386,845 $ 1,202,963 $ 24,058 $ 1,613,866 Accumulated impairment losses, which were recorded in 2009, were $232,789 at January 31, 2020 and October 31, 2019. Of these losses, $229,173 related to the Advanced Technology Systems segment, and $3,616 related to the Industrial Coating Systems segment. Information regarding our intangible assets subject to amortization is as follows: January 31, 2020 Carrying Accumulated Amortization Net Customer relationships $ 479,942 $ 183,178 $ 296,764 Patent/technology costs 154,849 74,792 80,057 Trade name 96,651 42,950 53,701 Non-compete agreements 11,526 10,524 1,002 Other 1,397 1,390 7 Total $ 744,365 $ 312,834 $ 431,531 October 31, 2019 Carrying Accumulated Amortization Net Book Value Customer relationships $ 480,007 $ 173,996 $ 306,011 Patent/technology costs 154,735 71,663 83,072 Trade name 96,655 41,303 55,352 Non-compete agreements 11,540 10,406 1,134 Other 1,400 1,394 6 Total $ 744,337 $ 298,762 $ 445,575 Amortization expense for the three months ended January 31, 2020 and 2019 was $16,173 and $13,629, respectively. |
Pension and Other Postretiremen
Pension and Other Postretirement Plans | 3 Months Ended |
Jan. 31, 2020 | |
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 months ended January 31, 2020 and 2019 were: U.S. International Three Months Ended 2020 2019 2020 2019 Service cost $ 5,057 $ 3,578 $ 571 $ 484 Interest cost 3,918 4,498 262 421 Expected return on plan assets (6,159 ) (5,804 ) (330 ) (400 ) Amortization of prior service credit (21 ) (15 ) (74 ) (76 ) Amortization of net actuarial loss 3,398 1,544 734 428 Total benefit cost $ 6,193 $ 3,801 $ 1,163 $ 857 The components of other postretirement benefit cost for the three months ended January 31, 2020 and 2019 were: U.S. International Three Months Ended 2020 2019 2020 2019 Service cost $ 190 $ 165 $ 4 $ 4 Interest cost 614 749 3 5 Amortization of prior service credit (4 ) (6 ) — — Amortization of net actuarial (gain) loss 419 152 (9 ) (7 ) Total benefit cost $ 1,219 $ 1,060 $ (2 ) $ 2 The components of net periodic pension cost other than service cost are included in Other – net in our Consolidated Statements of Income. |
Income Taxes
Income Taxes | 3 Months Ended |
Jan. 31, 2020 | |
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 months ended January 31, 2020 and January 31, 2019 were 17.6% and 28.6%, respectively. The effective tax rate for the current quarter On December 22, 2017, the Act was enacted into law which significantly revised U.S. tax law. It reduced the U.S. federal corporate income tax rate from 35% to 21%. The statutory tax rate of 21% was applied to earnings in the current quarter. During the three months ended January 31, 2019, a discrete tax expense of $4,866 was recorded to update the provisional amounts recognized in 2018 due to changes in interpretations and assumptions and the finalization of estimates. Our income tax provision included a discrete tax benefit of $2,537 and $868 due to our share-based payment transactions for the three months ended January 31, 2020 and January 31, 2019, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Jan. 31, 2020 | |
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, 2019 $ (53,332 ) $ (178,549 ) $ (231,881 ) Amortization of prior service costs and net actuarial losses, net of tax of $(998) — 3,229 3,229 Foreign currency translation adjustments 2,793 — 2,793 Balance at January 31, 2020 $ (50,539 ) $ (175,320 ) $ (225,859 ) |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Jan. 31, 2020 | |
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 are available for grant under the 2012 Plan. Stock Options Nonqualified or incentive stock options may be granted to our employees and directors. Generally, options granted to employees may be exercised beginning one year from the date of grant at a rate not exceeding 25 percent per year and expire 10 years from the date of grant. Vesting accelerates upon a qualified termination in connection with a change in control. In the event of termination of employment due to early retirement or normal retirement at age 65, options granted within 12 months prior to termination are forfeited, and vesting continues post retirement for all other unvested options granted. In the event of disability or death, all unvested stock options granted within 12 months prior to termination (or at any time prior to December 28, 2017) fully vest. Termination for any other reason results in forfeiture of unvested options and vested options in certain circumstances. The amortized cost of options is accelerated if the retirement eligibility date occurs before the normal vesting date. Option exercises are satisfied through the issuance of treasury shares on a first-in, first-out basis. We recognized compensation expense related to stock options of $2,725 and $2,531 in the three months ended January 31, 2020 and 2019, respectively. The following table summarizes activity related to stock options for the three months ended January 31, 2020: Number of Options Weighted- Average Exercise Share Aggregate Intrinsic Value Weighted Average Remaining Term Outstanding at October 31, 2019 1,787 $ 97.74 Granted 367 $ 165.21 Exercised (204 ) $ 80.15 Forfeited or expired (6 ) $ 130.41 Outstanding at January 31, 2020 1,944 $ 112.22 $ 110,106 7.2 years Expected to vest 851 $ 140.19 $ 24,408 8.8 years Exercisable at January 31, 2020 1,069 $ 89.04 $ 85,294 5.8 years As of January 31, 2020, there was $18,508 of total unrecognized compensation cost related to unvested stock options. That cost is expected to be amortized over a weighted average period of approximately 1.7 years. The fair value of each option grant was estimated at the date of grant using the Black-Scholes option-pricing model with the following assumptions: Three months ended January 31, 2020 January 31, 2019 Expected volatility 24.5%-25.4% 24.1%-24.5% Expected dividend yield 0.93%-1.16% 1.04% Risk-free interest rate 1.64%-1.69% 2.84%-2.95% Expected life of the option (in years) 5.3-6.2 5.3-6.2 The weighted-average expected volatility used to value the 2020 and 2019 options was 25.1% and 24.3%, respectively. Historical information was the primary basis for the selection of the expected volatility, expected dividend yield and the expected lives of the options. The risk-free interest rate was selected based upon yields of U.S. Treasury issues with a term equal to the expected life of the option being valued. The weighted average grant date fair value of stock options granted during the three months ended January 31, 2020 and 2019 was $37.82 and $31.74, respectively. The total intrinsic value of options exercised during the three months ended January 31, 2020 and 2019 was $17,244 and $4,621, respectively. Cash received from the exercise of stock options for the three months ended January 31, 2020 and 2019 was $16,379 and $3,606, 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. The following table summarizes activity related to restricted shares during the three months ended January 31, 2020: Number of Shares Weighted-Average Grant Date Fair Value Restricted shares at October 31, 2019 66 $ 126.83 Granted 17 $ 164.74 Vested (24 ) $ 119.15 Restricted shares at January 31, 2020 59 $ 140.58 As of January 31, 2020, there was $5,747 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 January 31, 2020 and 2019 was $1,573 and $697, respectively. These amounts included common share dividends for the three months ended January 31, 2020 and 2019 of $25 and $18, respectively. The following table summarizes activity related to restricted share units during the three months ended January 31, 2020: Number of Units Weighted-Average Grant Date Fair Value Restricted share units at October 31, 2019 — $ — Granted 7 $ 160.68 Restricted share units at January 31, 2020 7 $ 160.68 As of January 31, 2020, there was $886 of remaining expense to be recognized related to outstanding restricted share units, which is expected to be recognized over a weighted average period of 0.8 years. The amount charged to expense related to restricted share units during each of the three months ended January 31, 2020 and 2019 was $286 and $263, respectively. Deferred Directors’ Compensation Non-employee directors may defer all or part of their cash and equity-based compensation until retirement. Cash compensation may be deferred as cash or as share equivalent units. Deferred cash amounts are recorded as liabilities, and share equivalent units are recorded as equity. Additional share equivalent units are earned when common share dividends are declared. The following table summarizes activity related to director deferred compensation share equivalent units during the three months ended January 31, 2020: Number of Shares Weighted-Average Grant Date Fair Value Outstanding at October 31, 2019 114 $ 55.52 Dividend equivalents — $ — Outstanding at January 31, 2020 114 $ 55.77 The amount charged to expense related to director deferred compensation for the three months ended January 31, 2020 and 2019 was $44 and $37, 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 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 on our common shares. Expense related to dividends paid under this plan for the three months ended January 31, 2020 and 2019 was $81 and $72, respectively. |
Warranties
Warranties | 3 Months Ended |
Jan. 31, 2020 | |
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 three months ended January 31, 2020 and 2019: January 31, 2020 January 31, 2019 Beginning balance at October 31 $ 11,006 $ 12,195 Accruals for warranties 2,954 1,999 Warranty payments (2,551 ) (2,499 ) Currency effect 8 132 Ending balance $ 11,417 $ 11,827 |
Operating Segments
Operating Segments | 3 Months Ended |
Jan. 31, 2020 | |
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 Statements 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, 2019. The following table presents information about our segments: Adhesive Advanced Industrial Corporate Total Three months ended January 31, 2020 Net external sales $ 207,225 $ 231,117 $ 56,574 $ — $ 494,916 Operating profit (loss) 48,618 32,287 7,786 (13,598 ) 75,093 Three months ended January 31, 2019 Net external sales $ 211,517 $ 234,458 $ 51,935 $ — $ 497,910 Operating profit (loss) 47,892 40,785 7,516 (11,912 ) 84,281 A reconciliation of total segment operating income to total consolidated income before income taxes is as follows: Three Months Ended January 31, 2020 January 31, 2019 Total profit for reportable segments $ 75,093 $ 84,281 Interest expense (9,740 ) (12,365 ) Interest and investment income 588 316 Other-net (2,846 ) (4,189 ) Income before income taxes $ 63,095 $ 68,043 We have significant sales in the following geographic regions: Three Months Ended January 31, 2020 January 31, 2019 United States $ 188,500 $ 170,350 Americas 31,083 32,437 Europe 126,391 132,675 Japan 27,552 29,047 Asia Pacific 121,390 133,401 Total net external sales $ 494,916 $ 497,910 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Jan. 31, 2020 | |
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 tables present the classification of our assets and liabilities measured at fair value on a recurring basis: January 31, 2020 Total Level 1 Level 2 Level 3 Assets: Foreign currency forward contracts (a) $ 3,463 $ — $ 3,463 $ — Total assets at fair value $ 3,463 $ — $ 3,463 $ — Liabilities: Deferred compensation plans (b) $ 12,876 $ — $ 12,876 $ — Foreign currency forward contracts (a) 1,232 — 1,232 — Total liabilities at fair value $ 14,108 $ — $ 14,108 $ — January 31, 2019 Total Level 1 Level 2 Level 3 Assets: Foreign currency forward contracts (a) $ 3,638 $ — $ 3,638 $ — Total assets at fair value $ 3,638 $ — $ 3,638 $ — Liabilities: Deferred compensation plans (b) $ 12,019 $ — $ 12,019 $ — Foreign currency forward contracts (a) 2,319 — 2,319 — Total liabilities at fair value $ 14,338 $ — $ 14,338 $ — (a) We enter into foreign currency forward contracts to reduce the risk of foreign currency exposures resulting from receivables, payables, intercompany receivables, intercompany payables and loans denominated in foreign currencies. Foreign exchange contracts are valued using market exchange rates. These foreign exchange contracts are not designated as hedges. (b) Executive officers and other highly compensated employees may defer up to 100 percent of their salary and annual cash incentive compensation and for executive officers, up to 90 percent of their long-term incentive compensation , into various non-qualified deferred compensation plans. Deferrals can be allocated to various market performance measurement funds. Changes in the value of compensation deferred under these plans are recognized each period based on the fair value of the underlying measurement funds. The carrying amounts and fair values of financial instruments, other than cash and cash equivalents, receivables, and accounts payable, are shown in the table below. The carrying values of cash and cash equivalents, receivables and accounts payable approximate fair value due to the short-term nature of these instruments. 2020 Carrying Amount Fair Value Long-term debt (including current portion) 1,117,913 1,161,124 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. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Jan. 31, 2020 | |
Investments All Other Investments [Abstract] | |
Derivative Financial Instruments | 13 . Derivative 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 currency transactions occur and the dates they are settled. We regularly use foreign currency forward contracts to reduce our risks related to most of these transactions. These contracts usually have maturities of 90 days or less and generally require us to exchange foreign currencies for U.S. dollars at maturity, at rates stated in the contracts. These contracts are not designated as hedging instruments under U.S. GAAP. Accordingly, the changes in the fair value of the foreign currency forward contracts are recognized in each accounting period in “Other – net” on the Consolidated Statements of Income together with the transaction gain or loss from the related balance sheet position. For the three months ended January 31, 2020, we recognized net losses of $431 on foreign currency forward contracts and net gains of $431 from the change in fair value of balance sheet positions. For the three months ended January 31, 2019, we recognized net gains of $1,030 on foreign currency forward contracts and net losses of $2,003 from the change in fair value of balance sheet positions. The following table summarizes, by currency, the foreign currency forward contracts outstanding at January 31, 2020 and 2019: Notional Amounts January 31, 2020 contract amounts: Sell Buy Euro $ 227,292 $ 118,275 British pound 18,934 54,818 Japanese yen 37,429 58,672 Australian dollar 345 7,817 Hong Kong dollar 643 152,452 Singapore dollar 1,109 15,987 Others 6,505 68,395 Total $ 292,257 $ 476,416 Notional Amounts January 31, 2019 contract amounts: Sell Buy Euro $ 335,775 $ 204,537 British pound 24,348 66,809 Japanese yen 28,009 47,997 Australian dollar 786 8,012 Hong Kong dollar — 121,578 Singapore dollar 858 15,115 Others 5,619 61,312 Total $ 395,395 $ 525,360 We are exposed to credit-related losses in the event of nonperformance by counterparties to financial instruments. These financial instruments include cash deposits and foreign currency forward contracts. We periodically monitor the credit ratings of these counterparties in order to minimize our exposure. Our customers represent a wide variety of industries and geographic regions. For the three months ended January 31, 2020 and 2019, there were no significant concentrations of credit risk. |
Leases
Leases | 3 Months Ended |
Jan. 31, 2020 | |
Leases [Abstract] | |
Leases | 14 . Leases We review new contracts to determine if the contracts include a lease. To the extent a lease agreement includes an extension option that is reasonably certain to be exercised, we have recognized those amounts as part of the right-of-use assets and lease liabilities. We combine lease and non-lease components, such as common area maintenance, in the calculation of the lease assets and related liabilities. As most lease agreements do not provide an implicit rate, we use an incremental borrowing rate (IBR) based on information available at the lease commencement date in determining the present value of lease payments and to help classify the lease as operating or financing. We calculate its IBR based on a bond yield curve which considers secured borrowing rates based on our credit rating and current economic environment, as well as other publicly available data. We lease certain manufacturing facilities, warehouse space, machinery and equipment, and vehicles. We often have options to renew lease terms for buildings and other assets. We evaluate renewal and termination options at the lease commencement date to determine if we are reasonably certain to exercise the option on the basis of economic factors. Leases with an initial term of 12 months or less (short-term leases) are not recorded on the Consolidated Balance Sheet. Lease expense for operating leases is recognized on a straight-line basis over the lease term, with variable lease payments recognized in the period those payments occur. Variable payments for leases primarily relate to future rates or amounts, miles, or other quantifiable usage factors which are not determinable at the time the lease agreement commences. Finance lease assets are recorded in Property, plant, and equipment – net on the Consolidated Balance Sheet. As of January 31, 2020, we have no material leases that have yet to commence. Additional lease information is summarized below for the three months ended January 31, 2020: Finance Leases Operating Leases Amortization of right of use assets $ 1,714 $ — Interest 83 — Lease cost (1) $ 1,797 $ 5,227 Short-term and variable lease cost (1) 289 865 Total lease cost 2,086 6,092 Cash outflows from leases $ 2,421 $ 5,292 Weighted average remaining lease term (years) 5.10 years 10.75 years Weighted average discount rate 2.92 % 1.70 % (1) Lease costs are recorded in both Cost of sales and Selling and administrative expenses on the Consolidated Statements of Income. The following table reconciles the undiscounted cash flows for five years and thereafter to the operating and finance lease liabilities recognized on the statement of financial position as of January 31, 2020. The reconciliation excludes short-term leases that are not recognized on the Consolidated Balance Sheet. Year: Finance Leases Operating Leases 2020 $ 5,923 $ 19,986 2021 3,959 17,820 2022 2,175 16,007 2023 1,049 13,377 2024 645 11,773 Later years 3,601 66,349 Total minimum lease payments $ 17,352 $ 145,312 Amounts representing interest 1,601 11,040 Present value of minimum lease payments $ 15,751 $ 134,272 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Jan. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 15 . Long-term debt A summary of long-term debt is as follows: January 31, 2020 October 31, 2019 Revolving credit agreement, due 2024 $ — $ — Senior notes, due 2020-2025 140,800 140,800 Senior notes, due 2020-2027 92,857 92,857 Senior notes, due 2023-2030 350,000 350,000 Term loan, due 2022-2024 405,000 505,000 Euro loan, due 2021 127,565 128,219 Private shelf facility, due 2020 5,556 30,556 Development loans, due 2020-2026 — 951 1,121,778 1,248,383 Less current maturities 43,598 168,738 Less unamortized debt issuance costs 3,866 4,241 Long-term maturities $ 1,074,314 $ 1,075,404 In April 2019, we amended, restated and extended the term of our existing $605,000 term loan facility with a group of banks. The interest rate is variable based upon the LIBOR rate. The Term Loan Agreement provides for the following term loans in three tranches: $100,000 due in March 2020, $200,000 due in September 2022, and $205,000 due in March 2024. The weighted average interest rate for borrowings under this agreement was 2.30% at January 31, 2020. For the portion that is due in March 2020, $100,000 of this term loan facility was paid down in January 2020. We were in compliance with all covenants at January 31, 2020. In April 2019, we entered into a $850,000 unsecured, multicurrency credit facility with a group of banks, which amended, restated and extended our existing syndicated revolving credit agreement that was scheduled to expire in February 2020. This facility has a five-year In October 2018, we entered into a €150,000 agreement with Bank of America Merrill Lynch International Limited. The interest rate is variable based on the EUR LIBOR rate and it expires in October 2021. The weighted average interest rate at January 31, 2020 was 0.875%. At January 31, 2020, the balance outstanding was €115,000 ($127,565). We were in compliance with all covenants at January 31, 2020. In June 2018, we entered into a Note Purchase Agreement with a group of insurance companies under which we sold $350,000 of Senior Notes to the insurance companies and their affiliates. The notes start to mature between June 2023 and June 2030 and bear interest at fixed rates between 3.71% and 4.17%. We were in compliance with all covenants at January 31, 2020. We entered into a $150,000 three-year In 2012, we entered into a Note Purchase Agreement with a group of insurance companies under which we sold $200,000 of unsecured Senior Notes. At January 31, 2020 and October 31, 2019, there was $140,800 outstanding under this agreement. Existing notes mature between July 2020 and July 2025 and bear interest at fixed rates between 2.62% and 3.13%. We were in compliance with all covenants at January 31, 2020. In July 2015, we entered into a Note Purchase Agreement with a group of insurance companies under which we sold $100,000 of unsecured Senior Notes. At January 31, 2020 and October 31, 2019, there was $92,857 outstanding under this agreement. Existing notes mature between July 2020 and July 2027 and bear interest at fixed rates of 2.89% and 3.19%. We were in compliance with all covenants at January 31, 2020. |
Contingencies
Contingencies | 3 Months Ended |
Jan. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingencies | 16 . Contingencies We are involved in pending or potential litigation regarding environmental, product liability, patent, contract, employee and other matters arising from the normal course of business. Including the litigation and environmental matters discussed below, after consultation with legal counsel, we do not believe that losses in excess of the amounts we have accrued would have a material adverse effect on our financial condition, quarterly or annual operating results or cash flows. Class Action Litigation On February 22, 2019, a former employee, Mr. Ortiz, filed a purported class action lawsuit in the San Diego County Superior Court, California, against Nordson Asymtek, Inc. and Nordson Corporation, alleging various violations of the California Labor Code. Plaintiff seeks, among other things, an unspecified amount for unpaid wages, actual, consequential and incidental losses, penalties, and attorneys’ fees and costs. Management believes, based on currently available information, that the ultimate outcome of the proceeding described above will not have a material adverse effect on the Company’s financial condition or results of operations. Environmental We have voluntarily agreed with the City of New Richmond, Wisconsin and other Potentially Responsible Parties to share costs associated with the remediation of the City of New Richmond municipal landfill (the “Site”) and the construction of a potable water delivery system serving the impacted area down gradient of the Site. At January 31, 2020 and October 31, 2019, our accrual for the ongoing operation, maintenance and monitoring obligation at the Site was $401. The liability for environmental remediation represents management’s best estimate of the probable and reasonably estimable undiscounted costs related to known remediation obligations. The accuracy of our estimate of environmental liability is affected by several uncertainties such as additional requirements that may be identified in connection with remedial activities, the complexity and evolution of environmental laws and regulations, and the identification of presently unknown remediation requirements. Consequently, our liability could be greater than our current estimate. However, we do not expect that the costs associated with remediation will have a material adverse effect on our financial condition or results of operations. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Jan. 31, 2020 | |
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 — A contract exists when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of the consideration is probable. Revenue is recognized when performance obligations under the terms of the contract with a customer are satisfied. Generally, our revenue results from short-term, fixed-price contracts and primarily is recognized as of a point in time when the product is shipped or at a later point when the control of the product transfers to the customer. Revenue for undelivered items is deferred and included within Accrued liabilities in our Consolidated Balance Sheets. Revenues deferred as of January 31, 2020 and 2019 were not material. However, for certain contracts related to the sale of customer-specific products within our Advanced Technology Systems segment, revenue for these contracts is recognized over time as we satisfy performance obligations because of the continuous transfer of control to the customer. The continuous transfer of control to the customer occurs as we enhance assets that are customer controlled and we are contractually entitled to payment for work performed to date plus a reasonable margin. As control transfers over time for these products or services, revenue is recognized based on progress toward completion of the performance obligations. The selection method to measure progress towards completion requires judgment and is based on the nature of the products or services to be provided. We have elected to use the input method – costs incurred for these contracts because it best depicts the transfer of products or services to the customer based on incurring costs on the contract. Under this method, revenues are recorded proportionally as costs are incurred. Contract assets recognized are recorded in Prepaid expenses and other current assets and contract liabilities are recorded in Accrued liabilities in our Consolidated Balance Sheets and were not material at January 31, 2020 and October 31, 2019. Revenue recognized over time is not material to our overall Consolidated Financial Statements. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring products or services. Sales, value add, and other taxes we collect concurrently with revenue-producing activities are excluded from revenue. As a practical expedient, we may exclude the assessment of whether goods or services are performance obligations, if they are immaterial in the context of the contract, and combine these with other performance obligations. While payment terms and conditions vary by contract type, we have determined that our contracts generally do not include a significant financing component. We have elected to apply the practical expedient to treat all shipping and handling costs as fulfillment costs as a significant portion of these costs are incurred prior to transfer of control to the customer. We have also elected to apply the practical expedient to expense sales commissions as they are incurred as the amortization period resulting from capitalizing the costs is one year or less. These costs are recorded within Selling, general and administrative expenses in our Consolidated Statements of Income. We offer assurance type warranties on our products as well as separately sold warranty contracts. Revenue related to warranty contracts that are sold separately is recognized over the life of the warranty term. Certain arrangements may include installation, installation supervision, training, and spare parts, which tend to be completed in a short period of time, at an insignificant cost, and utilizing skills not unique to us, and, therefore, are typically regarded as inconsequential or not material. We disclose disaggregated revenues by operating segment and geography in accordance with the revenue standard and on the same basis used internally by the chief operating decision maker for evaluating performance of operating segments and for allocating resources. Refer to Note 11 for details on our operating segments. |
Earnings Per Share | Earnings per share ptions were excluded from the calculation of diluted earnings per share for the three months ended January 31, 2020. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Jan. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | At January 31, 2020 and October 31, 2019, inventories consisted of the following: January 31, 2020 October 31, 2019 Raw materials and component parts $ 104,466 $ 102,044 Work-in-process 47,789 42,904 Finished goods 190,770 183,973 343,025 328,921 Obsolescence and other reserves (41,729 ) (39,377 ) LIFO reserve (6,528 ) (6,145 ) $ 294,768 $ 283,399 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Jan. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Carrying Amount of Goodwill | Changes in the carrying amount of goodwill for the three months ended January 31, 2020 by operating segment are as follows: Adhesive Systems Advanced Systems Industrial Systems Total Balance at October 31, 2019 $ 387,403 $ 1,203,278 $ 24,058 $ 1,614,739 Currency effect (558 ) (315 ) — (873 ) Balance at January 31, 2020 $ 386,845 $ 1,202,963 $ 24,058 $ 1,613,866 |
Summary of Intangible Assets Subject to Amortization | Information regarding our intangible assets subject to amortization is as follows: January 31, 2020 Carrying Accumulated Amortization Net Customer relationships $ 479,942 $ 183,178 $ 296,764 Patent/technology costs 154,849 74,792 80,057 Trade name 96,651 42,950 53,701 Non-compete agreements 11,526 10,524 1,002 Other 1,397 1,390 7 Total $ 744,365 $ 312,834 $ 431,531 October 31, 2019 Carrying Accumulated Amortization Net Book Value Customer relationships $ 480,007 $ 173,996 $ 306,011 Patent/technology costs 154,735 71,663 83,072 Trade name 96,655 41,303 55,352 Non-compete agreements 11,540 10,406 1,134 Other 1,400 1,394 6 Total $ 744,337 $ 298,762 $ 445,575 |
Pension and Other Postretirem_2
Pension and Other Postretirement Plans (Tables) | 3 Months Ended |
Jan. 31, 2020 | |
Pension Cost [Member] | |
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Components of Net Periodic Benefits Cost | The components of net periodic pension cost for the three months ended January 31, 2020 and 2019 were: U.S. International Three Months Ended 2020 2019 2020 2019 Service cost $ 5,057 $ 3,578 $ 571 $ 484 Interest cost 3,918 4,498 262 421 Expected return on plan assets (6,159 ) (5,804 ) (330 ) (400 ) Amortization of prior service credit (21 ) (15 ) (74 ) (76 ) Amortization of net actuarial loss 3,398 1,544 734 428 Total benefit cost $ 6,193 $ 3,801 $ 1,163 $ 857 |
Postretirement Benefit Costs [Member] | |
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Components of Net Periodic Benefits Cost | The components of other postretirement benefit cost for the three months ended January 31, 2020 and 2019 were: U.S. International Three Months Ended 2020 2019 2020 2019 Service cost $ 190 $ 165 $ 4 $ 4 Interest cost 614 749 3 5 Amortization of prior service credit (4 ) (6 ) — — Amortization of net actuarial (gain) loss 419 152 (9 ) (7 ) Total benefit cost $ 1,219 $ 1,060 $ (2 ) $ 2 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Jan. 31, 2020 | |
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, 2019 $ (53,332 ) $ (178,549 ) $ (231,881 ) Amortization of prior service costs and net actuarial losses, net of tax of $(998) — 3,229 3,229 Foreign currency translation adjustments 2,793 — 2,793 Balance at January 31, 2020 $ (50,539 ) $ (175,320 ) $ (225,859 ) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Jan. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summarized Activity Related to Stock Options | The following table summarizes activity related to stock options for the three months ended January 31, 2020: Number of Options Weighted- Average Exercise Share Aggregate Intrinsic Value Weighted Average Remaining Term Outstanding at October 31, 2019 1,787 $ 97.74 Granted 367 $ 165.21 Exercised (204 ) $ 80.15 Forfeited or expired (6 ) $ 130.41 Outstanding at January 31, 2020 1,944 $ 112.22 $ 110,106 7.2 years Expected to vest 851 $ 140.19 $ 24,408 8.8 years Exercisable at January 31, 2020 1,069 $ 89.04 $ 85,294 5.8 years |
Fair Value Assumptions of Stock Options | The fair value of each option grant was estimated at the date of grant using the Black-Scholes option-pricing model with the following assumptions: Three months ended January 31, 2020 January 31, 2019 Expected volatility 24.5%-25.4% 24.1%-24.5% Expected dividend yield 0.93%-1.16% 1.04% Risk-free interest rate 1.64%-1.69% 2.84%-2.95% Expected life of the option (in years) 5.3-6.2 5.3-6.2 |
Summarized Activity Related to Restricted Stock | The following table summarizes activity related to restricted shares during the three months ended January 31, 2020: Number of Shares Weighted-Average Grant Date Fair Value Restricted shares at October 31, 2019 66 $ 126.83 Granted 17 $ 164.74 Vested (24 ) $ 119.15 Restricted shares at January 31, 2020 59 $ 140.58 |
Summarized Activity Related to Restricted Stock Units | The following table summarizes activity related to restricted share units during the three months ended January 31, 2020: Number of Units Weighted-Average Grant Date Fair Value Restricted share units at October 31, 2019 — $ — Granted 7 $ 160.68 Restricted share units at January 31, 2020 7 $ 160.68 |
Summarized Activity Related to Director Deferred Compensation Shares | The following table summarizes activity related to director deferred compensation share equivalent units during the three months ended January 31, 2020: Number of Shares Weighted-Average Grant Date Fair Value Outstanding at October 31, 2019 114 $ 55.52 Dividend equivalents — $ — Outstanding at January 31, 2020 114 $ 55.77 |
Warranties (Tables)
Warranties (Tables) | 3 Months Ended |
Jan. 31, 2020 | |
Guarantees [Abstract] | |
Reconciliation of Product Warranty Liability | Following is a reconciliation of the product warranty liability for the three months ended January 31, 2020 and 2019: January 31, 2020 January 31, 2019 Beginning balance at October 31 $ 11,006 $ 12,195 Accruals for warranties 2,954 1,999 Warranty payments (2,551 ) (2,499 ) Currency effect 8 132 Ending balance $ 11,417 $ 11,827 |
Operating Segments (Tables)
Operating Segments (Tables) | 3 Months Ended |
Jan. 31, 2020 | |
Segment Reporting [Abstract] | |
Segments | The following table presents information about our segments: Adhesive Advanced Industrial Corporate Total Three months ended January 31, 2020 Net external sales $ 207,225 $ 231,117 $ 56,574 $ — $ 494,916 Operating profit (loss) 48,618 32,287 7,786 (13,598 ) 75,093 Three months ended January 31, 2019 Net external sales $ 211,517 $ 234,458 $ 51,935 $ — $ 497,910 Operating profit (loss) 47,892 40,785 7,516 (11,912 ) 84,281 |
Reconciliation of Segment Operating Income to Consolidated Income Before Income Taxes | A reconciliation of total segment operating income to total consolidated income before income taxes is as follows: Three Months Ended January 31, 2020 January 31, 2019 Total profit for reportable segments $ 75,093 $ 84,281 Interest expense (9,740 ) (12,365 ) Interest and investment income 588 316 Other-net (2,846 ) (4,189 ) Income before income taxes $ 63,095 $ 68,043 |
Sales and Long-lived Asset Information by Geographic Regions | We have significant sales in the following geographic regions: Three Months Ended January 31, 2020 January 31, 2019 United States $ 188,500 $ 170,350 Americas 31,083 32,437 Europe 126,391 132,675 Japan 27,552 29,047 Asia Pacific 121,390 133,401 Total net external sales $ 494,916 $ 497,910 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Jan. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present the classification of our assets and liabilities measured at fair value on a recurring basis: January 31, 2020 Total Level 1 Level 2 Level 3 Assets: Foreign currency forward contracts (a) $ 3,463 $ — $ 3,463 $ — Total assets at fair value $ 3,463 $ — $ 3,463 $ — Liabilities: Deferred compensation plans (b) $ 12,876 $ — $ 12,876 $ — Foreign currency forward contracts (a) 1,232 — 1,232 — Total liabilities at fair value $ 14,108 $ — $ 14,108 $ — January 31, 2019 Total Level 1 Level 2 Level 3 Assets: Foreign currency forward contracts (a) $ 3,638 $ — $ 3,638 $ — Total assets at fair value $ 3,638 $ — $ 3,638 $ — Liabilities: Deferred compensation plans (b) $ 12,019 $ — $ 12,019 $ — Foreign currency forward contracts (a) 2,319 — 2,319 — Total liabilities at fair value $ 14,338 $ — $ 14,338 $ — (a) We enter into foreign currency forward contracts to reduce the risk of foreign currency exposures resulting from receivables, payables, intercompany receivables, intercompany payables and loans denominated in foreign currencies. Foreign exchange contracts are valued using market exchange rates. These foreign exchange contracts are not designated as hedges. (b) Executive officers and other highly compensated employees may defer up to 100 percent of their salary and annual cash incentive compensation and for executive officers, up to 90 percent of their long-term incentive compensation , into various non-qualified deferred compensation plans. Deferrals can be allocated to various market performance measurement funds. Changes in the value of compensation deferred under these plans are recognized each period based on the fair value of the underlying measurement funds. |
Carrying Amounts and Fair Values of Financial Instruments, Other than Cash and Cash Equivalents, Receivables and Accounts Payable | The carrying values of cash and cash equivalents, receivables and accounts payable approximate fair value due to the short-term nature of these instruments. 2020 Carrying Amount Fair Value Long-term debt (including current portion) 1,117,913 1,161,124 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Jan. 31, 2020 | |
Investments All Other Investments [Abstract] | |
Outstanding Currency, Forward Exchange Contracts | The following table summarizes, by currency, the foreign currency forward contracts outstanding at January 31, 2020 and 2019: Notional Amounts January 31, 2020 contract amounts: Sell Buy Euro $ 227,292 $ 118,275 British pound 18,934 54,818 Japanese yen 37,429 58,672 Australian dollar 345 7,817 Hong Kong dollar 643 152,452 Singapore dollar 1,109 15,987 Others 6,505 68,395 Total $ 292,257 $ 476,416 Notional Amounts January 31, 2019 contract amounts: Sell Buy Euro $ 335,775 $ 204,537 British pound 24,348 66,809 Japanese yen 28,009 47,997 Australian dollar 786 8,012 Hong Kong dollar — 121,578 Singapore dollar 858 15,115 Others 5,619 61,312 Total $ 395,395 $ 525,360 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Jan. 31, 2020 | |
Leases [Abstract] | |
Schedule of Additional Lease Information Under Finance and Operating Leases | Additional lease information is summarized below for the three months ended January 31, 2020: Finance Leases Operating Leases Amortization of right of use assets $ 1,714 $ — Interest 83 — Lease cost (1) $ 1,797 $ 5,227 Short-term and variable lease cost (1) 289 865 Total lease cost 2,086 6,092 Cash outflows from leases $ 2,421 $ 5,292 Weighted average remaining lease term (years) 5.10 years 10.75 years Weighted average discount rate 2.92 % 1.70 % (1) Lease costs are recorded in both Cost of sales and Selling and administrative expenses on the Consolidated Statements of Income. |
Schedule of Reconciliation of Undiscounted Cash Flows for Operating and Finance Lease Liabilities | The following table reconciles the undiscounted cash flows for five years and thereafter to the operating and finance lease liabilities recognized on the statement of financial position as of January 31, 2020. The reconciliation excludes short-term leases that are not recognized on the Consolidated Balance Sheet. Year: Finance Leases Operating Leases 2020 $ 5,923 $ 19,986 2021 3,959 17,820 2022 2,175 16,007 2023 1,049 13,377 2024 645 11,773 Later years 3,601 66,349 Total minimum lease payments $ 17,352 $ 145,312 Amounts representing interest 1,601 11,040 Present value of minimum lease payments $ 15,751 $ 134,272 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Jan. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | A summary of long-term debt is as follows: January 31, 2020 October 31, 2019 Revolving credit agreement, due 2024 $ — $ — Senior notes, due 2020-2025 140,800 140,800 Senior notes, due 2020-2027 92,857 92,857 Senior notes, due 2023-2030 350,000 350,000 Term loan, due 2022-2024 405,000 505,000 Euro loan, due 2021 127,565 128,219 Private shelf facility, due 2020 5,556 30,556 Development loans, due 2020-2026 — 951 1,121,778 1,248,383 Less current maturities 43,598 168,738 Less unamortized debt issuance costs 3,866 4,241 Long-term maturities $ 1,074,314 $ 1,075,404 |
Significant Accounting Polici_3
Significant Accounting Policies - Additional Information (Detail) - shares | 3 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Significant Accounting Policies [Line Items] | ||
Ownership percentage in affiliates and joint ventures | 50.00% | |
Stock Options [Member] | ||
Significant Accounting Policies [Line Items] | ||
Options for common shares excluded from computation of diluted earning per share | 0 | 704,000 |
Recently Issued Accounting St_2
Recently Issued Accounting Standards - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 31, 2020 | Nov. 01, 2019 | Aug. 31, 2018 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Operating right-of-use assets | $ 130,060 | ||
Operating lease liabilities | 134,272 | ||
ASU 2016-02 [Member] | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Operating right-of-use assets | 130,059 | $ 130,583 | |
Operating lease liabilities | $ 134,271 | $ 134,853 | |
New Accounting Guidance Issued and Not Yet Adopted [Member] | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Defined benefit plan effect of percentage change in assumed health care cost trend rates | 1.00% |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | Oct. 17, 2018 | Jan. 02, 2018 | Jan. 31, 2019 | Jan. 31, 2020 | Oct. 31, 2019 |
Business Acquisition [Line Items] | |||||
Acquisition of businesses, net of cash acquired | $ 14 | ||||
Goodwill | $ 1,613,866 | $ 1,614,739 | |||
Cladach Nua Teoranta [Member] | 2018 Acquisition [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquired percent of the outstanding shares | 100.00% | ||||
Acquisition of businesses, net of cash acquired | $ 5,236 | ||||
Acquisition of business, earn-out liability | 1,131 | ||||
Goodwill | 3,776 | ||||
Identifiable intangible assets | 697 | ||||
Cladach Nua Teoranta [Member] | Customer Relationships [Member] | 2018 Acquisition [Member] | |||||
Business Acquisition [Line Items] | |||||
Identifiable intangible assets | $ 58 | ||||
Intangible assets amortization period | 6 years | ||||
Cladach Nua Teoranta [Member] | Trade Names [Member] | 2018 Acquisition [Member] | |||||
Business Acquisition [Line Items] | |||||
Identifiable intangible assets | $ 70 | ||||
Intangible assets amortization period | 9 years | ||||
Cladach Nua Teoranta [Member] | Technology-Based Intangible Assets [Member] | 2018 Acquisition [Member] | |||||
Business Acquisition [Line Items] | |||||
Identifiable intangible assets | $ 499 | ||||
Intangible assets amortization period | 7 years | ||||
Cladach Nua Teoranta [Member] | Non-compete Agreements [Member] | 2018 Acquisition [Member] | |||||
Business Acquisition [Line Items] | |||||
Identifiable intangible assets | $ 70 | ||||
Intangible assets amortization period | 3 years | ||||
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 | $ 46,018 | ||||
Goodwill | 22,775 | ||||
Identifiable intangible assets | 7,910 | ||||
Cash acquired from business acquisition | 655 | ||||
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 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Detail) - USD ($) $ in Thousands | Jan. 31, 2020 | Oct. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials and component parts | $ 104,466 | $ 102,044 |
Work-in-process | 47,789 | 42,904 |
Finished goods | 190,770 | 183,973 |
Inventories - gross | 343,025 | 328,921 |
Obsolescence and other reserves | (41,729) | (39,377) |
LIFO reserve | (6,528) | (6,145) |
Inventories - net | $ 294,768 | $ 283,399 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Summary of Changes in Carrying Amount of Goodwill (Detail) $ in Thousands | 3 Months Ended |
Jan. 31, 2020USD ($) | |
Goodwill [Line Items] | |
Beginning balance | $ 1,614,739 |
Currency effect | (873) |
Ending balance | 1,613,866 |
Adhesive Dispensing Systems [Member] | |
Goodwill [Line Items] | |
Beginning balance | 387,403 |
Currency effect | (558) |
Ending balance | 386,845 |
Advanced Technology Systems [Member] | |
Goodwill [Line Items] | |
Beginning balance | 1,203,278 |
Currency effect | (315) |
Ending balance | 1,202,963 |
Industrial Coating Systems [Member] | |
Goodwill [Line Items] | |
Beginning balance | 24,058 |
Ending balance | $ 24,058 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Oct. 31, 2019 | |
Goodwill [Line Items] | |||
Goodwill accumulated impairment loss | $ 232,789 | $ 232,789 | |
Intangible assets, amortization expense | 16,173 | $ 13,629 | |
Advanced Technology Systems [Member] | |||
Goodwill [Line Items] | |||
Goodwill accumulated impairment loss | 229,173 | 229,173 | |
Industrial Coating Systems [Member] | |||
Goodwill [Line Items] | |||
Goodwill accumulated impairment loss | $ 3,616 | $ 3,616 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Summary of Intangible Assets Subject to Amortization (Detail) - USD ($) $ in Thousands | Jan. 31, 2020 | Oct. 31, 2019 |
Finite Lived Intangible Assets [Line Items] | ||
Carrying Amount | $ 744,365 | $ 744,337 |
Accumulated Amortization | 312,834 | 298,762 |
Net Book Value | 431,531 | 445,575 |
Customer Relationships [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Carrying Amount | 479,942 | 480,007 |
Accumulated Amortization | 183,178 | 173,996 |
Net Book Value | 296,764 | 306,011 |
Patent/Technology Costs [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Carrying Amount | 154,849 | 154,735 |
Accumulated Amortization | 74,792 | 71,663 |
Net Book Value | 80,057 | 83,072 |
Trade Names [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Carrying Amount | 96,651 | 96,655 |
Accumulated Amortization | 42,950 | 41,303 |
Net Book Value | 53,701 | 55,352 |
Non-compete Agreements [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Carrying Amount | 11,526 | 11,540 |
Accumulated Amortization | 10,524 | 10,406 |
Net Book Value | 1,002 | 1,134 |
Other [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Carrying Amount | 1,397 | 1,400 |
Accumulated Amortization | 1,390 | 1,394 |
Net Book Value | $ 7 | $ 6 |
Pension and Other Postretirem_3
Pension and Other Postretirement Plans - Net Periodic Benefit Cost (Detail) - Pension Plans [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
United States [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 5,057 | $ 3,578 |
Interest cost | 3,918 | 4,498 |
Expected return on plan assets | (6,159) | (5,804) |
Amortization of prior service credit | (21) | (15) |
Amortization of net actuarial loss | 3,398 | 1,544 |
Total benefit cost | 6,193 | 3,801 |
International [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 571 | 484 |
Interest cost | 262 | 421 |
Expected return on plan assets | (330) | (400) |
Amortization of prior service credit | (74) | (76) |
Amortization of net actuarial loss | 734 | 428 |
Total benefit cost | $ 1,163 | $ 857 |
Pension and Other Postretirem_4
Pension and Other Postretirement Plans - Other Postretirement Benefit Cost (Detail) - Postretirement Benefit Costs [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
United States [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 190 | $ 165 |
Interest cost | 614 | 749 |
Amortization of prior service credit | (4) | (6) |
Amortization of net actuarial (gain) loss | 419 | 152 |
Total benefit cost | 1,219 | 1,060 |
International [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 4 | 4 |
Interest cost | 3 | 5 |
Amortization of net actuarial (gain) loss | (9) | (7) |
Total benefit cost | $ (2) | $ 2 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 2 Months Ended | 3 Months Ended | |
Dec. 31, 2017 | Jan. 31, 2020 | Jan. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Effective tax rates | 17.60% | 28.60% | |
U.S. federal corporate income tax rate | 35.00% | 21.00% | |
Provisional discrete tax (benefit) expense | $ 4,866 | ||
Income tax provision included discrete tax benefit due to share-based payment transactions | $ 2,537 | $ 868 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Summary of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Accumulated other comprehensive income (loss), Beginning balance | $ (231,881) | |
Amortization of prior service costs and net actuarial losses, net of tax of $(998) | 3,229 | $ 1,352 |
Foreign currency translation adjustments | 2,793 | $ 16,463 |
Accumulated other comprehensive loss, Ending balance | (225,859) | |
Cumulative Translation Adjustments [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Accumulated other comprehensive income (loss), Beginning balance | (53,332) | |
Foreign currency translation adjustments | 2,793 | |
Accumulated other comprehensive loss, Ending balance | (50,539) | |
Pension And Postretirement Benefit Plan Adjustments [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Accumulated other comprehensive income (loss), Beginning balance | (178,549) | |
Amortization of prior service costs and net actuarial losses, net of tax of $(998) | 3,229 | |
Accumulated other comprehensive loss, Ending balance | $ (175,320) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Summary of Accumulated Other Comprehensive Loss (Parenthetical) (Detail) $ in Thousands | 3 Months Ended |
Jan. 31, 2020USD ($) | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Amortization of prior service costs and net actuarial losses, tax | $ 998 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Maximum number of common shares available for grant | 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 | $ 44 | $ 37 | |
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 | $ 2,725 | $ 2,531 | |
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 | $ 18,508 | ||
Weighted average period expected to be amortized, non vested shares | 1 year 8 months 12 days | ||
Weighted-average expected volatility used | 25.10% | 24.30% | |
Weighted average grant date fair value of stock options granted | $ 37.82 | $ 31.74 | |
Total intrinsic value of options exercised | $ 17,244 | $ 4,621 | |
Cash received from the exercise of stock options | $ 16,379 | 3,606 | |
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 | $ 5,747 | ||
Expense related to nonvested common shares | 1,573 | 697 | |
Common share dividends amount included in compensation cost | $ 25 | 18 | |
Restricted Stock Unit [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted average period expected to be amortized, non vested shares | 9 months 18 days | ||
Period for pro-rata vesting of shares or units for non-employee directors | 1 year | ||
Unrecognized compensation cost related to nonvested restricted stock | $ 886 | ||
Expense related to nonvested common shares | $ 286 | 263 | |
Performance Share Incentive Awards [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted average grant date fair value | $ 160.02 | ||
Compensation expense | $ 1,421 | $ 777 | |
Cumulative amount recorded in shareholders' equity related to Long-Term Incentive Plan | $ 5,710 | ||
Periods of performance considered for calculating compensation expense | 3 years | ||
Performance Share Incentive Awards [Member] | November 26, 2018 [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted average grant date fair value | $ 120.12 | ||
Performance Share Incentive Awards [Member] | August 1, 2019 [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted average grant date fair value | $ 138.53 | $ 138.53 | |
Performance Share Incentive Awards [Member] | November 20, 2017 [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted average grant date fair value | $ 123.45 | ||
Deferred Compensation [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Common share dividends amount included in compensation cost | $ 81 | $ 72 | |
Executive officers and other highly compensated employees salary and annual cash incentive compensation deferrals percentage, maximum | 100.00% | ||
Executive officers share-based long-term incentive compensation deferrals percentage, maximum | 90.00% |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summarized Activity Related to Stock Options (Detail) - Stock Options [Member] $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended |
Jan. 31, 2020USD ($)$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Options, Outstanding, Beginning balance | shares | 1,787 |
Number of Options, Granted | shares | 367 |
Number of Options, Exercised | shares | (204) |
Number of Options, Forfeited or expired | shares | (6) |
Number of Options, Outstanding, Ending balance | shares | 1,944 |
Number of Options, Expected to vest | shares | 851 |
Number of Options, Exercisable | shares | 1,069 |
Weighted-Average Exercise Price Per Share, Outstanding, Beginning balance | $ / shares | $ 97.74 |
Weighted-Average Exercise Price Per Share, Granted | $ / shares | 165.21 |
Weighted-Average Exercise Price Per Share, Exercised | $ / shares | 80.15 |
Weighted-Average Exercise Price Per Share, Forfeited or expired | $ / shares | 130.41 |
Weighted-Average Exercise Price Per Share, Outstanding, Ending balance | $ / shares | 112.22 |
Weighted-Average Exercise Price Per Share, Expected to vest | $ / shares | 140.19 |
Weighted-Average Exercise Price Per Share, Exercisable | $ / shares | $ 89.04 |
Aggregate Intrinsic Value, Outstanding | $ | $ 110,106 |
Aggregate Intrinsic Value, Expected to vest | $ | 24,408 |
Aggregate Intrinsic Value, Exercisable | $ | $ 85,294 |
Weighted Average Remaining Term, Outstanding | 7 years 2 months 12 days |
Weighted Average Remaining Term, Expected to vest | 8 years 9 months 18 days |
Weighted Average Remaining Term, Exercisable | 5 years 9 months 18 days |
Stock-Based Compensation - Fair
Stock-Based Compensation - Fair Value Assumptions of Stock Options (Detail) - Stock Options [Member] | 3 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected volatility, Minimum | 24.50% | 24.10% |
Expected volatility, Maximum | 25.40% | 24.50% |
Expected dividend yield | 1.04% | |
Risk-free interest rate, Minimum | 1.64% | 2.84% |
Risk-free interest rate, Maximum | 1.69% | 2.95% |
Minimum [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected dividend yield | 0.93% | |
Expected life of the option (in years) | 5 years 3 months 18 days | 5 years 3 months 18 days |
Maximum [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected dividend yield | 1.16% | |
Expected life of the option (in years) | 6 years 2 months 12 days | 6 years 2 months 12 days |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summarized Activity Related to Restricted Stock (Detail) - Restricted Stock [Member] shares in Thousands | 3 Months Ended |
Jan. 31, 2020$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Restricted Shares/Units, Beginning balance | shares | 66 |
Number of Restricted Shares, Granted | shares | 17 |
Number of Restricted Shares, Vested | shares | (24) |
Number of Restricted Shares/Units, Ending balance | shares | 59 |
Weighted-Average Grant Date Fair Value, Restricted Shares, Beginning balance | $ / shares | $ 126.83 |
Weighted-Average Grant Date Fair Value, Granted | $ / shares | 164.74 |
Weighted-Average Grant Date Fair Value, Vested | $ / shares | 119.15 |
Weighted-Average Grant Date Fair Value, Restricted Shares, Ending balance | $ / shares | $ 140.58 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summarized Activity Related to Restricted Stock Units (Detail) - Restricted Stock Unit [Member] shares in Thousands | 3 Months Ended |
Jan. 31, 2020$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Restricted Share Units, Granted | shares | 7 |
Number of Restricted Shares/Units, Ending balance | shares | 7 |
Weighted-Average Grant Date Fair Value, Granted | $ / shares | $ 160.68 |
Weighted-Average Grant Date Fair Value, Restricted Shares, Ending balance | $ / shares | $ 160.68 |
Stock-Based Compensation - Su_4
Stock-Based Compensation - Summarized Activity Related to Director Deferred Compensation Shares (Detail) - Directors [Member] - Deferred Compensation Share Equivalent Units [Member] shares in Thousands | Jan. 31, 2020$ / sharesshares |
Deferred Compensation Arrangement With Individual Share Based Payments [Line Items] | |
Number of Shares, Outstanding, Beginning balance | shares | 114 |
Number of Shares, Outstanding, Ending balance | shares | 114 |
Weighted-Average Grant Date Fair Value, Beginning balance | $ / shares | $ 55.52 |
Weighted-Average Grant Date Fair Value, Ending balance | $ / shares | $ 55.77 |
Warranties - Additional Informa
Warranties - Additional Information (Detail) | 3 Months Ended |
Jan. 31, 2020 | |
Guarantees [Abstract] | |
Product warranty period | 1 year |
Warranties - Reconciliation of
Warranties - Reconciliation of Product Warranty Liability (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Guarantees [Abstract] | ||
Beginning balance at October 31 | $ 11,006 | $ 12,195 |
Accruals for warranties | 2,954 | 1,999 |
Warranty payments | (2,551) | (2,499) |
Currency effect | 8 | 132 |
Ending balance | $ 11,417 | $ 11,827 |
Operating Segments - Additional
Operating Segments - Additional Information (Detail) | 3 Months Ended |
Jan. 31, 2020Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Operating Segments - Segments (
Operating Segments - Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Net external sales | $ 494,916 | $ 497,910 |
Operating profit (loss) | 75,093 | 84,281 |
Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Net external sales | 494,916 | 497,910 |
Operating profit (loss) | 75,093 | 84,281 |
Operating Segments [Member] | Adhesive Dispensing Systems [Member] | ||
Segment Reporting Information [Line Items] | ||
Net external sales | 207,225 | 211,517 |
Operating profit (loss) | 48,618 | 47,892 |
Operating Segments [Member] | Advanced Technology Systems [Member] | ||
Segment Reporting Information [Line Items] | ||
Net external sales | 231,117 | 234,458 |
Operating profit (loss) | 32,287 | 40,785 |
Operating Segments [Member] | Industrial Coating Systems [Member] | ||
Segment Reporting Information [Line Items] | ||
Net external sales | 56,574 | 51,935 |
Operating profit (loss) | 7,786 | 7,516 |
Corporate [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating profit (loss) | $ (13,598) | $ (11,912) |
Operating Segments - Reconcilia
Operating Segments - Reconciliation of Segment Operating Income to Consolidated Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Segment Reporting [Abstract] | ||
Total profit for reportable segments | $ 75,093 | $ 84,281 |
Interest expense | (9,740) | (12,365) |
Interest and investment income | 588 | 316 |
Other - net | (2,846) | (4,189) |
Income before income taxes | $ 63,095 | $ 68,043 |
Operating Segments - Sales Info
Operating Segments - Sales Information by Geographic Regions (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Net external sales | ||
Net external sales | $ 494,916 | $ 497,910 |
United States [Member] | ||
Net external sales | ||
Net external sales | 188,500 | 170,350 |
Americas [Member] | ||
Net external sales | ||
Net external sales | 31,083 | 32,437 |
Europe [Member] | ||
Net external sales | ||
Net external sales | 126,391 | 132,675 |
Japan [Member] | ||
Net external sales | ||
Net external sales | 27,552 | 29,047 |
Asia Pacific [Member] | ||
Net external sales | ||
Net external sales | $ 121,390 | $ 133,401 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Recurring [Member] - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 | |
Assets: | |||
Foreign currency forward contracts | [1] | $ 3,463 | $ 3,638 |
Total assets at fair value | 3,463 | 3,638 | |
Liabilities: | |||
Deferred compensation plans | [2] | 12,876 | 12,019 |
Foreign currency forward contracts | [1] | 1,232 | 2,319 |
Total liabilities at fair value | 14,108 | 14,338 | |
Level 2 [Member] | |||
Assets: | |||
Foreign currency forward contracts | [1] | 3,463 | 3,638 |
Total assets at fair value | 3,463 | 3,638 | |
Liabilities: | |||
Deferred compensation plans | [2] | 12,876 | 12,019 |
Foreign currency forward contracts | [1] | 1,232 | 2,319 |
Total liabilities at fair value | $ 14,108 | $ 14,338 | |
[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 exchange contracts are valued using market exchange rates. These foreign exchange contracts are not designated as hedges. | ||
[2] | Executive officers and other highly compensated employees may defer up to 100 percent of their salary and annual cash incentive compensation and for executive officers, up to 90 percent of their long-term incentive compensation , into various non-qualified deferred compensation plans. Deferrals can be allocated to various market performance measurement funds. Changes in the value of compensation deferred under these plans are recognized each period based on the fair value of the underlying measurement funds. |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Parenthetical) (Detail) | 3 Months Ended |
Jan. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Executive officers and other highly compensated employees salary and annual cash incentive compensation deferrals percentage, maximum | 100.00% |
Executive officers share-based long-term incentive compensation deferrals percentage, maximum | 90.00% |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Amounts and Fair Values of Financial Instruments, Other than Cash and Cash Equivalents, Receivables and Accounts Payable (Detail) $ in Thousands | Jan. 31, 2020USD ($) |
Schedule Of Carrying Amounts And Fair Values Of Financial Instruments [Abstract] | |
Long-term debt (including current portion), Carrying Amount | $ 1,117,913 |
Long-term debt (including current portion), Fair Value | $ 1,161,124 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||
Maturity of foreign currency forward contracts | 90 days | |
Gains (losses) on foreign currency forward contracts | $ (431) | $ 1,030 |
Gains (losses) in fair value of balance sheet positions denominated in foreign currencies | $ 431 | $ (2,003) |
Derivative Financial Instrume_4
Derivative Financial Instruments - Outstanding Currency, Forward Exchange Contracts (Detail) - Foreign Currency Forward Contracts [Member] - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Sell [Member] | ||
Derivative [Line Items] | ||
Notional Amounts of foreign currency derivative contracts | $ 292,257 | $ 395,395 |
Buy [Member] | ||
Derivative [Line Items] | ||
Notional Amounts of foreign currency derivative contracts | 476,416 | 525,360 |
Euro [Member] | Sell [Member] | ||
Derivative [Line Items] | ||
Notional Amounts of foreign currency derivative contracts | 227,292 | 335,775 |
Euro [Member] | Buy [Member] | ||
Derivative [Line Items] | ||
Notional Amounts of foreign currency derivative contracts | 118,275 | 204,537 |
British Pound [Member] | Sell [Member] | ||
Derivative [Line Items] | ||
Notional Amounts of foreign currency derivative contracts | 18,934 | 24,348 |
British Pound [Member] | Buy [Member] | ||
Derivative [Line Items] | ||
Notional Amounts of foreign currency derivative contracts | 54,818 | 66,809 |
Japanese Yen [Member] | Sell [Member] | ||
Derivative [Line Items] | ||
Notional Amounts of foreign currency derivative contracts | 37,429 | 28,009 |
Japanese Yen [Member] | Buy [Member] | ||
Derivative [Line Items] | ||
Notional Amounts of foreign currency derivative contracts | 58,672 | 47,997 |
Australian Dollar [Member] | Sell [Member] | ||
Derivative [Line Items] | ||
Notional Amounts of foreign currency derivative contracts | 345 | 786 |
Australian Dollar [Member] | Buy [Member] | ||
Derivative [Line Items] | ||
Notional Amounts of foreign currency derivative contracts | 7,817 | 8,012 |
Hong Kong Dollar [Member] | Sell [Member] | ||
Derivative [Line Items] | ||
Notional Amounts of foreign currency derivative contracts | 643 | |
Hong Kong Dollar [Member] | Buy [Member] | ||
Derivative [Line Items] | ||
Notional Amounts of foreign currency derivative contracts | 152,452 | 121,578 |
Singapore Dollar [Member] | Sell [Member] | ||
Derivative [Line Items] | ||
Notional Amounts of foreign currency derivative contracts | 1,109 | 858 |
Singapore Dollar [Member] | Buy [Member] | ||
Derivative [Line Items] | ||
Notional Amounts of foreign currency derivative contracts | 15,987 | 15,115 |
Others [Member] | Sell [Member] | ||
Derivative [Line Items] | ||
Notional Amounts of foreign currency derivative contracts | 6,505 | 5,619 |
Others [Member] | Buy [Member] | ||
Derivative [Line Items] | ||
Notional Amounts of foreign currency derivative contracts | $ 68,395 | $ 61,312 |
Leases - Schedule of Additional
Leases - Schedule of Additional Lease Information Under Finance and Operating Leases (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | ||
Leases [Abstract] | |||
Amortization of right of use assets | $ 1,714 | ||
Interest | 83 | ||
Lease Cost | [1] | 1,797 | |
Short-term and variable lease cost | [1] | 289 | |
Total lease cost | 2,086 | ||
Cash outflows from leases | $ 2,421 | $ 1,481 | |
Weighted average remaining lease term (years) | 5 years 1 month 6 days | ||
Weighted average discount rate | 2.92% | ||
Lease Cost | [1] | $ 5,227 | |
Short-term and variable lease cost | [1] | 865 | |
Total lease cost | 6,092 | ||
Cash outflows from leases | $ 5,292 | ||
Weighted average remaining lease term (years) | 10 years 9 months | ||
Weighted average discount rate | 1.70% | ||
[1] | (1) Lease costs are recorded in both Cost of sales and Selling and administrative expenses on the Consolidated Statements of Income. |
Leases - Schedule of Reconcilia
Leases - Schedule of Reconciliation of Undiscounted Cash Flows for Operating and Finance Lease Liabilities (Detail) $ in Thousands | Jan. 31, 2020USD ($) |
Finance Lease [Abstract] | |
2020 | $ 5,923 |
2021 | 3,959 |
2022 | 2,175 |
2023 | 1,049 |
2024 | 645 |
Later years | 3,601 |
Total minimum lease payments | 17,352 |
Amounts representing interest | 1,601 |
Present value of minimum lease payments | 15,751 |
Operating Lease [Abstract] | |
2020 | 19,986 |
2021 | 17,820 |
2022 | 16,007 |
2023 | 13,377 |
2024 | 11,773 |
Later years | 66,349 |
Total minimum lease payments | 145,312 |
Amounts representing interest | 11,040 |
Present value of minimum lease payments | $ 134,272 |
Long-Term Debt - Long-Term Debt
Long-Term Debt - Long-Term Debt (Detail) - USD ($) $ in Thousands | Jan. 31, 2020 | Oct. 31, 2019 |
Debt Instrument [Line Items] | ||
Private shelf facility, due 2020 | $ 5,556 | $ 30,556 |
Development loans, due 2020-2026 | 951 | |
Long-term Debt | 1,121,778 | 1,248,383 |
Less current maturities | 43,598 | 168,738 |
Less unamortized debt issuance costs | 3,866 | 4,241 |
Long-term maturities | 1,074,314 | 1,075,404 |
Senior Notes, Due 2020-2025 [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | 140,800 | 140,800 |
Senior Notes, Due 2020-2027 [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | 92,857 | 92,857 |
Senior Notes, Due 2023-2030 [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | 350,000 | 350,000 |
Term Loan, Due 2022-2024 [Member] | ||
Debt Instrument [Line Items] | ||
Term loan | 405,000 | 505,000 |
Euro Loan, Due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Euro loan | $ 127,565 | $ 128,219 |
Long-term Debt - Additional Inf
Long-term Debt - Additional Information (Detail) € in Thousands | Jun. 30, 2018USD ($) | Oct. 31, 2011USD ($) | Jan. 31, 2020USD ($) | Apr. 30, 2019USD ($) | Oct. 31, 2018EUR (€) | Jul. 31, 2015USD ($) | Jan. 31, 2020USD ($) | Oct. 31, 2016USD ($) | Oct. 31, 2015USD ($) | Oct. 31, 2012USD ($) | Jan. 31, 2020EUR (€) | Oct. 31, 2019USD ($) |
Debt Instrument [Line Items] | ||||||||||||
Outstanding balance | $ 5,556,000 | $ 5,556,000 | $ 30,556,000 | |||||||||
Revolving Credit Agreement [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, covenant compliance description | We were in compliance with all covenants at January 31, 2020, and the amount we could borrow under the facility would not have been limited by any debt covenants. | |||||||||||
Revolving credit facility | $ 850,000,000 | |||||||||||
Credit facility, term | 5 years | |||||||||||
Term loan expiration | 2024-04 | |||||||||||
Outstanding balance | 0 | $ 0 | 0 | |||||||||
Revolving Credit Agreement [Member] | Swing Line Loans [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Revolving credit facility | $ 75,000,000 | |||||||||||
Syndicated Revolving Credit Agreement [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Revolving credit facility expiration | 2020-02 | |||||||||||
Three-year Note Purchase and Private Shelf Agreement [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, covenant compliance description | We were in compliance with all covenants at January 31, 2020. | |||||||||||
Term loan expiration | 2020-09 | |||||||||||
Debt instrument, face amount | $ 150,000,000 | |||||||||||
Debt instrument, fixed interest rates | 2.21% | |||||||||||
Period of agreement | 3 years | |||||||||||
Maximum credit facility | $ 200,000,000 | $ 180,000,000 | ||||||||||
Outstanding balance | $ 5,556,000 | $ 5,556,000 | 30,556,000 | |||||||||
Term Loan Facility [Member] | Group of Banks [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Term loan | $ 605,000,000 | |||||||||||
Weighted average interest rate for borrowings | 2.30% | 2.30% | 2.30% | |||||||||
Debt instrument, covenant compliance description | We were in compliance with all covenants at January 31, 2020. | |||||||||||
Term Loan Due in March 2020 [Member] | Group of Banks [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Term loan | 100,000,000 | |||||||||||
Repayments of Debt | $ 100,000,000 | |||||||||||
Term Loan Due in September 2022 [Member] | Group of Banks [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Term loan | 200,000,000 | |||||||||||
Term Loan Due in March 2024 [Member] | Group of Banks [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Term loan | $ 205,000,000 | |||||||||||
Euro Loan, Due 2021 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Euro loan | $ 127,565,000 | $ 127,565,000 | 128,219,000 | |||||||||
Euro Loan, Due 2021 [Member] | Bank of America [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Weighted average interest rate for borrowings | 0.875% | 0.875% | 0.875% | |||||||||
Debt instrument, covenant compliance description | We were in compliance with all covenants at January 31, 2020. | |||||||||||
Term loan expiration | 2021-10 | |||||||||||
Debt instrument, face amount | € | € 150,000 | |||||||||||
Euro loan | $ 127,565,000 | $ 127,565,000 | € 115,000 | |||||||||
Senior Notes, Due 2023-2030 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, covenant compliance description | We were in compliance with all covenants at January 31, 2020. | |||||||||||
Debt instrument, face amount | $ 350,000,000 | |||||||||||
Outstanding balance | 350,000,000 | $ 350,000,000 | 350,000,000 | |||||||||
Senior Notes, Due 2023-2030 [Member] | Minimum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Term loan expiration | 2023-06 | |||||||||||
Debt instrument, fixed interest rates | 3.71% | |||||||||||
Senior Notes, Due 2023-2030 [Member] | Maximum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Term loan expiration | 2030-06 | |||||||||||
Debt instrument, fixed interest rates | 4.17% | |||||||||||
Senior Notes, Due 2020-2025 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Outstanding balance | 140,800,000 | $ 140,800,000 | 140,800,000 | |||||||||
Senior Notes, Due 2020-2025 [Member] | Senior Unsecured Notes [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, covenant compliance description | We were in compliance with all covenants at January 31, 2020. | |||||||||||
Debt instrument, face amount | $ 200,000,000 | |||||||||||
Outstanding balance | 140,800,000 | $ 140,800,000 | 140,800,000 | |||||||||
Senior Notes, Due 2020-2025 [Member] | Senior Unsecured Notes [Member] | Minimum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Term loan expiration | 2020-07 | |||||||||||
Debt instrument, fixed interest rates | 2.62% | |||||||||||
Senior Notes, Due 2020-2025 [Member] | Senior Unsecured Notes [Member] | Maximum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Term loan expiration | 2025-07 | |||||||||||
Debt instrument, fixed interest rates | 3.13% | |||||||||||
Senior Notes, Due 2020-2027 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Outstanding balance | 92,857,000 | $ 92,857,000 | 92,857,000 | |||||||||
Senior Notes, Due 2020-2027 [Member] | Senior Unsecured Notes [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, covenant compliance description | We were in compliance with all covenants at January 31, 2020. | |||||||||||
Debt instrument, face amount | $ 100,000,000 | |||||||||||
Outstanding balance | $ 92,857,000 | $ 92,857,000 | $ 92,857,000 | |||||||||
Senior Notes, Due 2020-2027 [Member] | Senior Unsecured Notes [Member] | Minimum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Term loan expiration | 2020-07 | |||||||||||
Debt instrument, fixed interest rates | 2.89% | |||||||||||
Senior Notes, Due 2020-2027 [Member] | Senior Unsecured Notes [Member] | Maximum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Term loan expiration | 2027-07 | |||||||||||
Debt instrument, fixed interest rates | 3.19% |
Contingencies - Additional Info
Contingencies - Additional Information (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Oct. 31, 2019 |
Commitments And Contingencies Disclosure [Abstract] | ||
Accrual for environmental liability | $ 401 | $ 401 |