Cover Page
Cover Page - shares | 3 Months Ended | |
Jan. 31, 2023 | Feb. 24, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jan. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 1-8597 | |
Entity Registrant Name | The Cooper Companies, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 94-2657368 | |
Entity Address, Address Line One | 6101 Bollinger Canyon Road | |
Entity Address, Address Line Two | Suite 500 | |
Entity Address, City or Town | San Ramon | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94583 | |
City Area Code | 925 | |
Local Phone Number | 460-3600 | |
Title of 12(b) Security | Common Stock, $.10 par value | |
Trading Symbol | COO | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 49,455,664 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000711404 | |
Current Fiscal Year End Date | --10-31 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Income and Comprehensive Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Jan. 31, 2023 | Jan. 31, 2022 | |
Income Statement [Abstract] | ||
Net sales | $ 858.5 | $ 787.2 |
Cost of sales | 300 | 268.8 |
Gross profit | 558.5 | 518.4 |
Selling, general and administrative expense | 330.9 | 319.1 |
Research and development expense | 31.6 | 26.2 |
Amortization of intangibles | 46.5 | 42.3 |
Operating income | 149.5 | 130.8 |
Interest expense | 26.1 | 6.6 |
Other expense, net | 1.3 | 2.3 |
Income before income taxes | 122.1 | 121.9 |
Provision for income taxes (Note 6) | 37.5 | 26.6 |
Net income | $ 84.6 | $ 95.3 |
Earnings per share (Note 7): | ||
Basic (in dollars per share) | $ 1.71 | $ 1.93 |
Diluted (in dollars per share) | $ 1.70 | $ 1.91 |
Number of shares used to compute earnings per share: | ||
Basic (in shares) | 49.4 | 49.4 |
Diluted (in shares) | 49.7 | 49.9 |
Other comprehensive income, net of tax: | ||
Cash flow hedges | $ (21) | $ 13.3 |
Foreign currency translation adjustment | 84 | (49.2) |
Comprehensive income | $ 147.6 | $ 59.4 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Millions | Jan. 31, 2023 | Oct. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 118.2 | $ 138.2 |
Trade accounts receivable, net of allowance for credit losses of $24.7 at January 31, 2023, and $20.7 at October 31, 2022 | 581.8 | 557.8 |
Inventories (Note 3) | 659.1 | 628.7 |
Prepaid expense and other current assets | 218.4 | 208.9 |
Total current assets | 1,577.5 | 1,533.6 |
Net property, plant and equipment | 1,464 | 1,432.9 |
Goodwill | 3,672.3 | 3,609.7 |
Other intangibles, net (Note 4) | 1,863.4 | 1,885.1 |
Deferred tax assets | 2,415.1 | 2,443.1 |
Other assets | 568.8 | 587.9 |
Total assets | 11,561.1 | 11,492.3 |
Current liabilities: | ||
Short-term debt (Note 5) | 68.1 | 412.6 |
Accounts payable | 224.1 | 248.8 |
Employee compensation and benefits | 167.2 | 152.1 |
Deferred revenue | 106.4 | 93.6 |
Other current liabilities | 350 | 373.1 |
Total current liabilities | 915.8 | 1,280.2 |
Long-term debt (Note 5) | 2,627.3 | 2,350.8 |
Deferred tax liabilities | 144.3 | 149.9 |
Long-term tax payable | 112.4 | 113.2 |
Deferred revenue | 195.1 | 198.3 |
Accrued pension liability and other | 230.5 | 225.2 |
Total liabilities | 4,225.4 | 4,317.6 |
Contingencies (Note 10) | ||
Stockholders’ equity: | ||
Preferred stock, $10 cents par value, 1.0 shares authorized, zero shares issued or outstanding | 0 | 0 |
Common stock, $10 cents par value, 120.0 shares authorized, 53.9 issued and 49.4 outstanding at January 31, 2023, and 53.8 issued and 49.3 outstanding at October 31, 2022 | 5.4 | 5.4 |
Additional paid-in capital | 1,779.2 | 1,765.5 |
Accumulated other comprehensive loss | (403.8) | (466.8) |
Retained earnings | 6,668 | 6,584.9 |
Treasury stock at cost: 4.5 shares at January 31, 2023, and 4.5 shares at October 31, 2022 | (713.3) | (714.5) |
Total Cooper stockholders’ equity | 7,335.5 | 7,174.5 |
Noncontrolling interests | 0.2 | 0.2 |
Stockholders’ equity (Note 9) | 7,335.7 | 7,174.7 |
Total liabilities and stockholders’ equity | $ 11,561.1 | $ 11,492.3 |
Consolidated Condensed Balanc_2
Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jan. 31, 2023 | Oct. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Trade accounts receivable, allowance for doubtful accounts | $ 24.7 | $ 20.7 |
Preferred stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Preferred stock, authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, authorized (in shares) | 120,000,000 | 120,000,000 |
Common stock, issued (in shares) | 53,900,000 | 53,800,000 |
Common stock, outstanding (in shares) | 49,400,000 | 49,300,000 |
Treasury stock (in shares) | 4,500,000 | 4,500,000 |
Consolidated Condensed Statem_2
Consolidated Condensed Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Common Shares | Treasury Stock | Treasury Stock Par Net Value | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Noncontrolling Interests |
Common stock, beginning balance (in shares) at Oct. 31, 2021 | 49,300,000 | |||||||
Treasury stock, beginning balance (in shares) at Oct. 31, 2021 | 4,400,000 | |||||||
Beginning balance at Oct. 31, 2021 | $ 6,942 | $ 5 | $ (639.6) | $ 0.4 | $ 1,715.2 | $ (341.3) | $ 6,202.1 | $ 0.2 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 95.3 | 95.3 | ||||||
Other comprehensive income (loss), net of tax | (35.9) | (35.9) | ||||||
Issuance of common stock for stock plans, net and employee stock purchase plan (in shares) | 100,000 | 700,000 | ||||||
Issuance of common stock for stock plans, net and employee stock purchase plan | (8.1) | (8.8) | ||||||
Dividends on common stock ($0.03 per share) | (1.5) | (1.5) | ||||||
Share-based compensation expense | $ 12.8 | 12.8 | ||||||
Stock repurchase (in shares) | 191,200 | 200,000 | 200,000 | |||||
Stock repurchase | $ (78.5) | $ (78.5) | ||||||
Common stock, ending balance (in shares) at Jan. 31, 2022 | 49,200,000 | |||||||
Treasury stock, ending balance (in shares) at Jan. 31, 2022 | 4,600,000 | |||||||
Ending balance at Jan. 31, 2022 | $ 6,926.1 | $ 5 | $ (717.4) | 0.4 | 1,719.2 | (377.2) | 6,295.9 | 0.2 |
Common stock, beginning balance (in shares) at Oct. 31, 2022 | 49,300,000 | 49,300,000 | ||||||
Treasury stock, beginning balance (in shares) at Oct. 31, 2022 | 4,500,000 | 4,500,000 | ||||||
Beginning balance at Oct. 31, 2022 | $ 7,174.7 | $ 5 | $ (714.5) | 0.4 | 1,765.5 | (466.8) | 6,584.9 | 0.2 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 84.6 | 84.6 | ||||||
Other comprehensive income (loss), net of tax | 63 | 63 | ||||||
Issuance of common stock for stock plans, net and employee stock purchase plan (in shares) | 100,000 | |||||||
Issuance of common stock for stock plans, net and employee stock purchase plan | (1.3) | $ 1.2 | (2.5) | |||||
Dividends on common stock ($0.03 per share) | (1.5) | (1.5) | ||||||
Share-based compensation expense | $ 16.2 | 16.2 | ||||||
Stock repurchase (in shares) | 0 | |||||||
Common stock, ending balance (in shares) at Jan. 31, 2023 | 49,400,000 | 49,400,000 | ||||||
Treasury stock, ending balance (in shares) at Jan. 31, 2023 | 4,500,000 | 4,500,000 | ||||||
Ending balance at Jan. 31, 2023 | $ 7,335.7 | $ 5 | $ (713.3) | $ 0.4 | $ 1,779.2 | $ (403.8) | $ 6,668 | $ 0.2 |
Consolidated Condensed Statem_3
Consolidated Condensed Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | ||
Feb. 09, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends on common stock (in dollars per share) | $ 0.03 | $ 0.03 | $ 0.03 |
Consolidated Condensed Statem_4
Consolidated Condensed Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2023 | Jan. 31, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 84.6 | $ 95.3 |
Depreciation and amortization | 89.7 | 82 |
Change in fair value of contingent consideration | (31.8) | 0 |
Net changes in operating capital | (28) | 6.2 |
Other non-cash items | 52.1 | (17.5) |
Net cash provided by operating activities | 166.6 | 166 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (83) | (57.1) |
Acquisitions of businesses and assets, net of cash acquired, and other | (30.3) | (1,612.2) |
Net cash used in investing activities | (113.3) | (1,669.3) |
Cash flows from financing activities: | ||
Proceeds from long-term debt, net of issuance costs | 702 | 1,499.5 |
Repayments of long-term debt | (426.3) | (548.6) |
Net (repayments of) proceeds from short-term debt | (351.7) | 830.4 |
Net payments related to share-based compensation awards | (3.4) | (10.8) |
Repurchase of common stock | 0 | (78.5) |
Issuance of common stock for employee stock purchase plan | 1.8 | 1.6 |
Net cash (used in) provided by financing activities | (77.6) | 1,693.6 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 4.2 | (3.7) |
Net (decrease) increase in cash, cash equivalents, restricted cash, and cash held for sale | (20.1) | 186.6 |
Cash, cash equivalents, restricted cash, and cash held for sale at beginning of period | 138.6 | 96.6 |
Cash, cash equivalents, restricted cash, and cash held for sale at end of period | 118.5 | 283.2 |
Reconciliation of cash flow information: | ||
Cash and cash equivalents | 118.2 | 280.7 |
Restricted cash included in other current assets | 0.3 | 2.2 |
Cash held for sale | 0 | 0.3 |
Total cash, cash equivalents, restricted cash, and cash held for sale | $ 118.5 | $ 283.2 |
General
General | 3 Months Ended |
Jan. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | Note 1. General The accompanying Consolidated Condensed Financial Statements of The Cooper Companies, Inc. and its subsidiaries have been prepared in accordance with generally accepted accounting principles in the United States (GAAP) for interim financial information and with the requirements of Regulation S-X, Rule 10-01 for financial statements required to be filed as a part of this Quarterly Report on Form 10-Q. Unless the context requires otherwise, terms "the Company", "we", "us", and "our" are used to refer collectively to The Cooper Companies, Inc. and its subsidiaries. The accompanying Consolidated Condensed Financial Statements and related notes are unaudited and should be read in conjunction with the audited Consolidated Financial Statements of the Company and related notes as contained in the Company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2022. The Consolidated Condensed Financial Statements include all adjustments (consisting only of normal recurring adjustments) and accruals necessary in the judgment of management for a fair presentation of the results for the interim periods presented. Accounting Policies There have been no material changes to our significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended October 31, 2022. Estimates The preparation of Consolidated Condensed Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of net sales and expenses during the reporting period. Actual results could differ from those estimates. The Company continually monitors and evaluates the estimates used as additional information becomes available. Adjustments will be made to these provisions periodically to reflect new facts and circumstances that may indicate that historical experience may not be indicative of current and/or future results. Accounting Pronouncements Recently Adopted In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance . This update requires annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy. This standard is effective for fiscal years beginning after December 15, 2021 and should be applied either prospectively or retrospectively. Early adoption is permitted. The Company adopted this guidance prospectively on November 1, 2022, and it did not have a material impact on the Consolidated Condensed Financial Statements. Accounting Pronouncements Issued But Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform ( Topic 848 ): Facilitation of the Effects of Reference Rate Reform on Financial Reporting and subsequent amendment to the initial guidance: ASU 2021-01, Reference Rate Reform (Topic 848): Scope (collectively, “Topic 848”). Topic 848 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 . ASU 2022-06 defers the sunset date of Topic 848 from December 31, 2022 to December 31, 2024 . Effective February 1, 2023, the Company transitioned its credit agreements from LIBOR to the Secured Overnight Financing Rate ("SOFR"). The Company plans to adopt the guidance prospectively in the second quarter of fiscal 2023 and does not expect it to have a material impact on the Company's financial position. No other recently issued accounting pronouncements had or are expected to have a material impact on the Company's Consolidated Condensed Financial Statements. |
Acquisitions and Joint Venture
Acquisitions and Joint Venture | 3 Months Ended |
Jan. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Joint Venture | Note 2. Acquisitions and Joint Venture All acquisitions were funded by cash generated from operations or facility borrowings. For business acquisitions, the Company recorded tangible and intangible assets acquired and liabilities assumed at their fair values as of the applicable date of acquisition. For asset acquisitions, the Company recorded tangible and intangible assets acquired and liabilities assumed at their estimated and relative fair values as of the applicable date of acquisition. On November 1, 2022, CooperVision completed the acquisition of a privately-held U.S.-based company that provides a broad portfolio of technologically advanced contact lens products, including scleral and hybrid lenses. The purchase price of the acquisition was $33.0 million. Based upon preliminary valuations, assets acquired primarily comprised of $12.6 million of customer relationship related intangibles, $7.6 million of technology, and $13.1 million of goodwill. The goodwill is not deductible for tax purposes. The purchase price allocation is preliminary, and the Company is in the process of finalizing information primarily related to the effect on taxes and the corresponding impact on goodwill. Refer to "Joint Venture" below for details on formation of a joint venture with Essilor International and related activities that occurred in fiscal year 2022 following the acquisition of SightGlass Vision, Inc. (SGV) in fiscal year 2021. On April 6, 2022, CooperSurgical entered into an asset purchase agreement to acquire Cook Medical's Reproductive Health business, a manufacturer of minimally invasive medical devices focused on the fertility, obstetrics and gynecology markets. The aggregate consideration is $875.0 million in cash, with $675.0 million payable at the closing and the remaining $200.0 million payable in $50.0 million installments following each of the first, second, third and fourth anniversaries of the closing. The transaction is subject to customary closing conditions, such as receipt of required regulatory approvals. Generate Life Sciences ® On December 17, 2021, CooperSurgical completed the acquisition of 100% of the equity interests in Generate Life Sciences (Generate), a privately held leading provider of donor egg and sperm for fertility treatments, fertility cryopreservation services and newborn stem cell storage (cord blood & cord tissue), and paid an aggregate purchase consideration of approximately $1.663 billion, reflecting working capital, and other adjustments. The cash consideration was funded through a combination of $1.5 billion in proceeds from the issuance of a senior unsecured term loan and available cash on hand. The following table summarizes the fair values of assets acquired and liabilities assumed as of the acquisition date: (In millions) Current assets: Cash and cash equivalents 58.6 Trade accounts receivable, net 18.1 Inventories 3.3 Prepaid expense and other current assets 33.1 Total current assets 113.1 Property, plant and equipment 42.6 Goodwill 1,173.9 Customer relationships 718.3 Trademarks 54.9 Other assets 21.5 Total assets acquired $ 2,124.3 Current liabilities: Accounts payable $ 12.6 Employee compensation and benefits 12.3 Deferred revenue 71.4 Other current liabilities 11.6 Total current liabilities 107.9 Deferred tax liabilities 144.3 Lease liabilities 16.6 Deferred revenue 188.8 Other long-term liabilities 3.6 Total liabilities assumed $ 461.2 Total purchase price $ 1,663.1 Customer relationships will be amortized over 20 years and trademarks will be amortized over 15 years. Goodwill is primarily attributable to assembled workforce and expected synergies to be achieved. The goodwill is not deductible for tax purposes. The transaction costs associated with the acquisition consisted primarily of legal, regulatory and financial advisory fees, which were expensed as incurred as selling, general and administrative expense. Joint Venture On January 19, 2021, CooperVision acquired all of the remaining equity interests of SGV, a privately-held medical device company that developed spectacle lenses for myopia management. The transaction included potential payments of future consideration that were contingent upon the achievement of the regulatory approval milestone (the regulatory approval payment) and the acquired business reaching certain revenue thresholds over a specified period (the revenue pa yments). The undiscounted range of the contingent consideration was zero to $139.1 million payable to the other former equity interest owners. In March 2022, the entities amended the terms of the contingent consideration, which resulted in CooperVision paying $42.9 million to the former equity interest owners in exchange for the elimination of the revenue payments. CooperVision recognized a net gain of $12.2 million during fiscal 2022. Further, CooperVision and Essilor International SAS (Essilor) executed the Contribution Agreement and Stock Purchase Agreement (the “Agreements”) in March 2022. Essilor paid CooperVision $52.1 million in exchange for 50% interest in SGV and their proportionate share of the revenue payments. As part of the Agreements, each party contributed their interest in SGV and $10 million in cash to form a new joint venture. CooperVision then remeasured the fair value of its retained equity investment in the joint venture at $90.0 million which resulted in a $56.9 million gain in Other (income) expense on deconsolidation of SGV in fiscal 2022. As of January 31, 2023, CooperVision determined that approval would not be achieved within the timeline set forth in the contractual terms of the regulatory approval payment and released the remaining $31.8 million contingent consideration liability. Additional information regarding the joint venture is included in our notes to our consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended October 31, 2022. Contingent Consideration The following table provides a reconciliation of the beginning and ending balances of contingent consideration: Period Ended January 31, Three Months (In millions) 2023 2022 Beginning balance $ 33.4 $ 97.4 Purchase price contingent consideration — — Payments — — Change in fair value (31.8) 3.5 Ending balance $ 1.6 $ 100.9 |
Inventories
Inventories | 3 Months Ended |
Jan. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 3. Inventories (In millions) January 31, 2023 October 31, 2022 Raw materials $ 191.6 $ 173.7 Work-in-process 18.1 15.2 Finished goods 449.4 439.8 Total inventories $ 659.1 $ 628.7 |
Intangible Assets
Intangible Assets | 3 Months Ended |
Jan. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 4. Intangible Assets Intangible assets consisted of the following: January 31, 2023 October 31, 2022 (In millions) Gross Accumulated Gross Accumulated Weighted Average Amortization Period (in years) Intangible assets with definite lives: Customer relationships $ 1,110.4 $ 304.1 $ 1,092.7 $ 287.0 19 Composite intangible asset 1,061.9 371.7 1,061.9 354.0 15 Technology 512.9 327.3 504.1 317.5 12 Trademarks 210.9 66.3 209.6 62.4 15 License and distribution rights and other 50.7 24.8 50.7 23.8 10 2,946.8 $ 1,094.2 2,919.0 $ 1,044.7 16 Less: accumulated amortization and translation 1,094.2 1,044.7 Intangible assets with definite lives, net 1,852.6 1,874.3 Intangible assets with indefinite lives, net (1) 10.8 10.8 Total other intangibles, net $ 1,863.4 $ 1,885.1 (1) Intangible assets with indefinite lives include technology and trademarks. Balances include foreign currency translation adjustments. As of January 31, 2023, the estimate of future amortization expenses for intangible assets with definite lives is as follows: Fiscal Years: (In millions) Remainder of 2023 $ 139.2 2024 181.4 2025 171.5 2026 164.0 2027 149.0 Thereafter 1,047.5 Total remaining amortization for intangible assets with definite lives $ 1,852.6 There was no impairment of intangible assets recorded in the three months ended January 31, 2023. |
Financing Arrangements
Financing Arrangements | 3 Months Ended |
Jan. 31, 2023 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | Note 5. Financing Arrangements The Company had outstanding debt as follows: (In millions) January 31, 2023 October 31, 2022 Overdraft and other credit facilities $ 51.6 $ 57.7 Term loans — 338.0 Short-term debt, excluding financing leases 51.6 395.7 Financing lease liabilities 16.5 16.9 Short-term debt $ 68.1 $ 412.6 Revolving credit $ 276.5 $ — Term loans 2,350.0 2,350.0 Other 0.1 0.2 Less: unamortized debt issuance cost (2.9) (3.1) Long-term debt, excluding financing leases 2,623.7 2,347.1 Financing lease liabilities 3.6 3.7 Long-term debt $ 2,627.3 $ 2,350.8 Total debt $ 2,695.4 $ 2,763.4 Additional information regarding our indebtedness is included in our notes to our consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended October 31, 2022, which was filed with the Securities and Exchange Commission on December 9, 2022. The carrying value of the Company's revolving credit facility and term loans approximates fair value based on current market rates (Level 2). As of January 31, 2023, the Company was in compliance with all debt covenants. On February 1, 2023, the Company amended its credit agreements to transition the interest rates applicable to the loans denominated in U.S. Dollars from LIBOR to SOFR, as defined in the credit agreements. 2021 Term Loan Agreement On December 17, 2021, the Company entered into a Term Loan Agreement (the 2021 Credit Agreement) by and among the Company, the lenders from time to time party thereto, and PNC Bank, National Association, as administrative agent. The 2021 Credit Agreement provides for a term loan facility (the 2021 Term Loan Facility) in an aggregate principal amount of $1.5 billion, which, unless terminated earlier, matures on December 17, 2026. The Company used the proceeds to fund the acquisition of Generate. Refer to Note 2. Acquisitions and Joint Venture for more details. On January 31, 2023, the Company had $1.5 billion outstanding under the 2021 Term Loan Facility and the weighted average interest rate was 5.04%. 2021 364-Day Term Loan Agreement On November 2, 2021, the Company entered into a 364-day, $840.0 million, term loan agreement by and among the Company, the lenders party thereto and The Bank of Nova Scotia, as administrative agent, which matured on November 1, 2022. The Company used part of the funds to partially repay outstanding borrowings under the 2020 Revolving Credit Facility and for general corporate purposes. The loan was fully repaid by the maturity date. 2020 Revolving Credit and Term Loan Agreement On April 1, 2020, the Company entered into a Revolving Credit and Term Loan Agreement (the 2020 Credit Agreement), among the Company, CooperVision International Holding Company, LP, CooperSurgical Netherlands B.V., CooperVision Holding Kft, the lenders from time to time party thereto, and KeyBank National Association, as administrative agent. The 2020 Credit Agreement provides for (a) a multicurrency revolving credit facility (the 2020 Revolving Credit Facility) in an aggregate principal amount of $1.29 billion and (b) a term loan facility (the 2020 Term Loan Facility) in an aggregate principal amount of $850.0 million, each of which, unless terminated earlier, mature on April 1, 2025. The Company has an uncommitted option to increase the revolving credit facility or establish a new term loan in an aggregate amount up to $1.605 billion. On January 31, 2023, the Company had $850.0 million outstanding under the 2020 Term Loan Facility and $276.5 million outstanding under the 2020 Revolving Credit Facility. The interest rate on the 2020 Term Loan Facility and the 2020 Revolving Credit Facility was 5.37% at January 31, 2023. |
Income Taxes
Income Taxes | 3 Months Ended |
Jan. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 6. Income Taxes The effective tax rates for the three months ended January 31, 2023 and January 31, 2022 were 30.7% and 21.8%, respectively. The increase was primarily due to changes in the geographic composition of pre-tax earnings, an increase in the UK statutory tax rate from 19% to 25%, and capitalization of research and experimental expenditures for fiscal 2023 as required by the 2017 Tax Cuts and Jobs Act. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Jan. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 7. Earnings Per Share Period Ended January 31, Three Months (In millions, except per share amounts) 2023 2022 Net income $ 84.6 $ 95.3 Basic: Weighted average common shares 49.4 49.4 Basic earnings per share $ 1.71 $ 1.93 Diluted: Weighted average common shares 49.4 49.4 Effect of dilutive stock plans 0.3 0.5 Diluted weighted average common shares 49.7 49.9 Diluted earnings per share $ 1.70 $ 1.91 The following table sets forth stock options to purchase our common stock that were not included in the diluted earnings per share calculation because their effect would have been antidilutive for the periods presented: Period Ended January 31, Three Months (In thousands, except exercise prices) 2023 2022 Stock option shares excluded 514 224 Exercise prices $300.12 - $406.17 $345.74 - $406.17 Restricted stock units excluded 213 — |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Jan. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | Note 8. Share-Based Compensation The Company has several stock plans that are described in the Company’s Annual Report on Form 10‑K for the fiscal year ended October 31, 2022. Compensation expense and the related income tax benefit recognized in our Consolidated Statements of Income and Comprehensive Income for share-based awards, including the Employee Stock Purchase Plan, were as follows: Period Ended January 31, Three Months (In millions) 2023 2022 Selling, general and administrative expense $ 14.4 $ 11.5 Cost of sales 1.1 1.3 Research and development expense 0.8 0.8 Total share-based compensation expense $ 16.3 $ 13.6 Related income tax benefit $ 1.7 $ 1.6 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Jan. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Note 9. Stockholders' Equity Analysis of Changes in Accumulated Other Comprehensive Income: (In millions) Foreign Currency Translation Adjustment Minimum Pension Liability Derivative Instruments Total Balance at October 31, 2021 $ (320.3) $ (34.1) $ 13.1 $ (341.3) Gross change in value (49.2) — 17.6 (31.6) Tax effect — — (4.3) (4.3) Balance at January 31, 2022 $ (369.5) $ (34.1) $ 26.4 $ (377.2) Balance at October 31, 2022 $ (555.0) $ (6.2) $ 94.4 $ (466.8) Gross change in value 84.0 — (27.8) 56.2 Tax effect — — 6.8 6.8 Balance at January 31, 2023 $ (471.0) $ (6.2) $ 73.4 $ (403.8) Share Repurchases In December 2011, the Company's Board of Directors authorized the 2012 Share Repurchase Program and through subsequent amendments, the most recent being in March 2017, the total repurchase authorization was increased from $500.0 million to $1.0 billion of the Company's common stock. As of January 31, 2023, $256.4 million remains authorized for repurchase under the 2012 Share Repurchase Program. During the three months ended January 31, 2023, there was no share repurchase under the 2012 Share Repurchase Program. During the three months ended January 31, 2022, the Company repurchased 191.2 thousand shares of its common stock for $78.5 million , at an average purchase price of $410.41 per share. Dividends The Company paid a semiannual dividend of approximately $1.5 million or 3 cents per share, on February 10, 2023, to stockholders of record on January 23, 2023. The Company paid a semiannual dividend of approximately $1.5 million or 3 cents per share, on February 9, 2022, to stockholders of record on January 21, 2022. |
Contingencies
Contingencies | 3 Months Ended |
Jan. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Note 10. Contingencies The Company is involved in various lawsuits, claims and other legal matters from time to time that arise in the ordinary course of conducting business, including matters involving our products, intellectual property, supplier relationships, distributors, competitor relationships, employees and other matters. The Company does not believe that the ultimate resolution of these proceedings or claims pending against it could have a material adverse effect on its financial condition or results of operations. At each reporting period, the Company evaluates whether or not a potential loss amount or a potential range of loss is probable and reasonably estimable under ASC 450, Contingencies . Legal fees are expensed as incurred. |
Business Segment Information
Business Segment Information | 3 Months Ended |
Jan. 31, 2023 | |
Segment Reporting [Abstract] | |
Business Segment Information | Note 11. Business Segment Information The following tables present revenue and other financial information by reportable segment: Segment information: Period Ended January 31, Three Months (In millions) 2023 2022 CooperVision net sales by category: Toric lens $ 189.8 $ 182.2 Multifocal lens 71.8 65.8 Single-use sphere lens 168.3 167.0 Non single-use sphere, other 151.4 146.5 Total CooperVision net sales $ 581.3 $ 561.5 CooperSurgical net sales by category: Office and surgical $ 165.2 $ 128.9 Fertility 112.0 96.8 CooperSurgical net sales 277.2 225.7 Total net sales $ 858.5 $ 787.2 Operating income (loss): CooperVision $ 160.1 $ 127.4 CooperSurgical 5.8 15.6 Corporate (16.4) (12.2) Total operating income 149.5 130.8 Interest expense 26.1 6.6 Other expense, net 1.3 2.3 Income before income taxes $ 122.1 $ 121.9 (In millions) January 31, 2023 October 31, 2022 Total identifiable assets: CooperVision $ 6,945.7 $ 6,778.9 CooperSurgical 4,333.9 4,407.8 Corporate 281.5 305.6 Total $ 11,561.1 $ 11,492.3 Geographic information: Period Ended January 31, Three Months (In millions) 2023 2022 Net sales to unaffiliated customers by country of domicile: United States $ 434.8 $ 365.3 Europe 248.2 250.4 Rest of world 175.5 171.5 Total $ 858.5 $ 787.2 (In millions) January 31, 2023 October 31, 2022 Net property, plant and equipment by country of domicile: United States $ 871.3 $ 856.1 Europe 325.3 310.8 Rest of world 267.4 266.0 Total $ 1,464.0 $ 1,432.9 |
Financial Derivatives and Hedgi
Financial Derivatives and Hedging | 3 Months Ended |
Jan. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Derivatives and Hedging | Note 12. Financial Derivatives and Hedging On April 6, 2020, the Company entered into six interest rate swap contracts which were used to hedge its exposure to changes in cash flows associated with its variable rate debt and were designated as derivatives in a cash flow hedge. The payment streams were based on a total notional amount of $1.5 billion at the inception of the contracts. As of January 31, 2023, three of the six interest rate swap contracts have matured and the outstanding contracts have a total notional amount of $1.0 billion and remaining maturities of five years or less. The Company did not have any cross-currency swaps or foreign currency forward contracts as of January 31, 2023. The interest rate swap contracts are fair valued by netting discounted future fixed cash payments and the discounted expected variable cash receipts, which are estimated based on observable market interest rate curves (Level 2). The cumulative pre-tax impact of the gain on derivatives designated for hedge accounting recognized in accumulated other comprehensive income was $96.7 million ($73.4 million, net of tax) as of January 31, 2023, and $34.8 million ($26.4 million, net of tax) as of January 31, 2022 . The fair value of derivative instruments are classified in "Other non-current assets" on our Consolidated Condensed Balance Sheets. The following table summarizes the amounts recognized with respect to our derivative instruments within the accompanying Consolidated Statements of Income and Comprehensive Income: Period Ended January 31, Three Months (In millions) 2023 2022 Derivatives designated as cash flow hedges Location of (Gain)/Loss Recognized on Derivatives Interest rate swap contracts Interest (income) expense $ (8.3) $ 1.9 The Company expects th at $38.1 million rec orded as a component of accumulated other comprehensive loss will be realized in the Consolidated Statements of Income and Comprehensive Income over the next twelve months and the amount will vary depending on prevailing interest rates. The following table details the changes in accumulated other comprehensive income: Period Ended January 31, Three Months (In millions) 2023 2022 Beginning balance gain $ 124.5 $ 17.2 Amount recognized in other comprehensive income on interest rate swap contracts, gross ($(14.8) million, net of tax and $11.9 million, net of tax, respectively) (19.5) 15.7 Amount reclassified from other comprehensive income into earnings, gross ($(6.2) million, net of tax and $1.4 million, net of tax, respectively) (8.3) 1.9 Ending balance gain $ 96.7 $ 34.8 |
General (Policies)
General (Policies) | 3 Months Ended |
Jan. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Estimates | Estimates The preparation of Consolidated Condensed Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of net sales and expenses during the reporting period. Actual results could differ from those estimates. The Company continually monitors and evaluates the estimates used as additional information becomes available. Adjustments will be made to these provisions periodically to reflect new facts and circumstances that may indicate that historical experience may not be indicative of current and/or future results. |
Accounting Pronouncements Recently Adopted and Accounting Pronouncements Issued Not Yet Adopted | Accounting Pronouncements Recently Adopted In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance . This update requires annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy. This standard is effective for fiscal years beginning after December 15, 2021 and should be applied either prospectively or retrospectively. Early adoption is permitted. The Company adopted this guidance prospectively on November 1, 2022, and it did not have a material impact on the Consolidated Condensed Financial Statements. Accounting Pronouncements Issued But Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform ( Topic 848 ): Facilitation of the Effects of Reference Rate Reform on Financial Reporting and subsequent amendment to the initial guidance: ASU 2021-01, Reference Rate Reform (Topic 848): Scope (collectively, “Topic 848”). Topic 848 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 . ASU 2022-06 defers the sunset date of Topic 848 from December 31, 2022 to December 31, 2024 . Effective February 1, 2023, the Company transitioned its credit agreements from LIBOR to the Secured Overnight Financing Rate ("SOFR"). The Company plans to adopt the guidance prospectively in the second quarter of fiscal 2023 and does not expect it to have a material impact on the Company's financial position. No other recently issued accounting pronouncements had or are expected to have a material impact on the Company's Consolidated Condensed Financial Statements. |
Acquisitions and Joint Venture
Acquisitions and Joint Venture (Tables) | 3 Months Ended |
Jan. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of recognized identified assets acquired and liabilities assumed | The following table summarizes the fair values of assets acquired and liabilities assumed as of the acquisition date: (In millions) Current assets: Cash and cash equivalents 58.6 Trade accounts receivable, net 18.1 Inventories 3.3 Prepaid expense and other current assets 33.1 Total current assets 113.1 Property, plant and equipment 42.6 Goodwill 1,173.9 Customer relationships 718.3 Trademarks 54.9 Other assets 21.5 Total assets acquired $ 2,124.3 Current liabilities: Accounts payable $ 12.6 Employee compensation and benefits 12.3 Deferred revenue 71.4 Other current liabilities 11.6 Total current liabilities 107.9 Deferred tax liabilities 144.3 Lease liabilities 16.6 Deferred revenue 188.8 Other long-term liabilities 3.6 Total liabilities assumed $ 461.2 Total purchase price $ 1,663.1 |
Contingent consideration reconciliation | The following table provides a reconciliation of the beginning and ending balances of contingent consideration: Period Ended January 31, Three Months (In millions) 2023 2022 Beginning balance $ 33.4 $ 97.4 Purchase price contingent consideration — — Payments — — Change in fair value (31.8) 3.5 Ending balance $ 1.6 $ 100.9 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Jan. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | (In millions) January 31, 2023 October 31, 2022 Raw materials $ 191.6 $ 173.7 Work-in-process 18.1 15.2 Finished goods 449.4 439.8 Total inventories $ 659.1 $ 628.7 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Jan. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of finite-lived intangible assets | Intangible assets consisted of the following: January 31, 2023 October 31, 2022 (In millions) Gross Accumulated Gross Accumulated Weighted Average Amortization Period (in years) Intangible assets with definite lives: Customer relationships $ 1,110.4 $ 304.1 $ 1,092.7 $ 287.0 19 Composite intangible asset 1,061.9 371.7 1,061.9 354.0 15 Technology 512.9 327.3 504.1 317.5 12 Trademarks 210.9 66.3 209.6 62.4 15 License and distribution rights and other 50.7 24.8 50.7 23.8 10 2,946.8 $ 1,094.2 2,919.0 $ 1,044.7 16 Less: accumulated amortization and translation 1,094.2 1,044.7 Intangible assets with definite lives, net 1,852.6 1,874.3 Intangible assets with indefinite lives, net (1) 10.8 10.8 Total other intangibles, net $ 1,863.4 $ 1,885.1 (1) Intangible assets with indefinite lives include technology and trademarks. |
Schedule of indefinite-lived intangible assets | Intangible assets consisted of the following: January 31, 2023 October 31, 2022 (In millions) Gross Accumulated Gross Accumulated Weighted Average Amortization Period (in years) Intangible assets with definite lives: Customer relationships $ 1,110.4 $ 304.1 $ 1,092.7 $ 287.0 19 Composite intangible asset 1,061.9 371.7 1,061.9 354.0 15 Technology 512.9 327.3 504.1 317.5 12 Trademarks 210.9 66.3 209.6 62.4 15 License and distribution rights and other 50.7 24.8 50.7 23.8 10 2,946.8 $ 1,094.2 2,919.0 $ 1,044.7 16 Less: accumulated amortization and translation 1,094.2 1,044.7 Intangible assets with definite lives, net 1,852.6 1,874.3 Intangible assets with indefinite lives, net (1) 10.8 10.8 Total other intangibles, net $ 1,863.4 $ 1,885.1 (1) Intangible assets with indefinite lives include technology and trademarks. |
Schedule of remaining amortization expenses for intangible assets with definite lives | As of January 31, 2023, the estimate of future amortization expenses for intangible assets with definite lives is as follows: Fiscal Years: (In millions) Remainder of 2023 $ 139.2 2024 181.4 2025 171.5 2026 164.0 2027 149.0 Thereafter 1,047.5 Total remaining amortization for intangible assets with definite lives $ 1,852.6 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 3 Months Ended |
Jan. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of debt | The Company had outstanding debt as follows: (In millions) January 31, 2023 October 31, 2022 Overdraft and other credit facilities $ 51.6 $ 57.7 Term loans — 338.0 Short-term debt, excluding financing leases 51.6 395.7 Financing lease liabilities 16.5 16.9 Short-term debt $ 68.1 $ 412.6 Revolving credit $ 276.5 $ — Term loans 2,350.0 2,350.0 Other 0.1 0.2 Less: unamortized debt issuance cost (2.9) (3.1) Long-term debt, excluding financing leases 2,623.7 2,347.1 Financing lease liabilities 3.6 3.7 Long-term debt $ 2,627.3 $ 2,350.8 Total debt $ 2,695.4 $ 2,763.4 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Jan. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | Period Ended January 31, Three Months (In millions, except per share amounts) 2023 2022 Net income $ 84.6 $ 95.3 Basic: Weighted average common shares 49.4 49.4 Basic earnings per share $ 1.71 $ 1.93 Diluted: Weighted average common shares 49.4 49.4 Effect of dilutive stock plans 0.3 0.5 Diluted weighted average common shares 49.7 49.9 Diluted earnings per share $ 1.70 $ 1.91 |
Schedule of stock options and restricted stock units that were not included in the diluted earnings per share calculation | The following table sets forth stock options to purchase our common stock that were not included in the diluted earnings per share calculation because their effect would have been antidilutive for the periods presented: Period Ended January 31, Three Months (In thousands, except exercise prices) 2023 2022 Stock option shares excluded 514 224 Exercise prices $300.12 - $406.17 $345.74 - $406.17 Restricted stock units excluded 213 — |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Jan. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of compensation expense and related income tax benefit for share-based awards | Compensation expense and the related income tax benefit recognized in our Consolidated Statements of Income and Comprehensive Income for share-based awards, including the Employee Stock Purchase Plan, were as follows: Period Ended January 31, Three Months (In millions) 2023 2022 Selling, general and administrative expense $ 14.4 $ 11.5 Cost of sales 1.1 1.3 Research and development expense 0.8 0.8 Total share-based compensation expense $ 16.3 $ 13.6 Related income tax benefit $ 1.7 $ 1.6 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Jan. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of changes in accumulated other comprehensive income | Analysis of Changes in Accumulated Other Comprehensive Income: (In millions) Foreign Currency Translation Adjustment Minimum Pension Liability Derivative Instruments Total Balance at October 31, 2021 $ (320.3) $ (34.1) $ 13.1 $ (341.3) Gross change in value (49.2) — 17.6 (31.6) Tax effect — — (4.3) (4.3) Balance at January 31, 2022 $ (369.5) $ (34.1) $ 26.4 $ (377.2) Balance at October 31, 2022 $ (555.0) $ (6.2) $ 94.4 $ (466.8) Gross change in value 84.0 — (27.8) 56.2 Tax effect — — 6.8 6.8 Balance at January 31, 2023 $ (471.0) $ (6.2) $ 73.4 $ (403.8) The following table details the changes in accumulated other comprehensive income: Period Ended January 31, Three Months (In millions) 2023 2022 Beginning balance gain $ 124.5 $ 17.2 Amount recognized in other comprehensive income on interest rate swap contracts, gross ($(14.8) million, net of tax and $11.9 million, net of tax, respectively) (19.5) 15.7 Amount reclassified from other comprehensive income into earnings, gross ($(6.2) million, net of tax and $1.4 million, net of tax, respectively) (8.3) 1.9 Ending balance gain $ 96.7 $ 34.8 |
Business Segment Information (T
Business Segment Information (Tables) | 3 Months Ended |
Jan. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of segment information | Segment information: Period Ended January 31, Three Months (In millions) 2023 2022 CooperVision net sales by category: Toric lens $ 189.8 $ 182.2 Multifocal lens 71.8 65.8 Single-use sphere lens 168.3 167.0 Non single-use sphere, other 151.4 146.5 Total CooperVision net sales $ 581.3 $ 561.5 CooperSurgical net sales by category: Office and surgical $ 165.2 $ 128.9 Fertility 112.0 96.8 CooperSurgical net sales 277.2 225.7 Total net sales $ 858.5 $ 787.2 Operating income (loss): CooperVision $ 160.1 $ 127.4 CooperSurgical 5.8 15.6 Corporate (16.4) (12.2) Total operating income 149.5 130.8 Interest expense 26.1 6.6 Other expense, net 1.3 2.3 Income before income taxes $ 122.1 $ 121.9 |
Schedule of identifiable assets by segment | (In millions) January 31, 2023 October 31, 2022 Total identifiable assets: CooperVision $ 6,945.7 $ 6,778.9 CooperSurgical 4,333.9 4,407.8 Corporate 281.5 305.6 Total $ 11,561.1 $ 11,492.3 |
Schedule of net sales to unaffiliated customers by country of domicile | Geographic information: Period Ended January 31, Three Months (In millions) 2023 2022 Net sales to unaffiliated customers by country of domicile: United States $ 434.8 $ 365.3 Europe 248.2 250.4 Rest of world 175.5 171.5 Total $ 858.5 $ 787.2 |
Schedule of net property, plant and equipment by country of domicile | (In millions) January 31, 2023 October 31, 2022 Net property, plant and equipment by country of domicile: United States $ 871.3 $ 856.1 Europe 325.3 310.8 Rest of world 267.4 266.0 Total $ 1,464.0 $ 1,432.9 |
Financial Derivatives and Hed_2
Financial Derivatives and Hedging (Tables) | 3 Months Ended |
Jan. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative instruments recognized in condensed consolidated statements of income | The following table summarizes the amounts recognized with respect to our derivative instruments within the accompanying Consolidated Statements of Income and Comprehensive Income: Period Ended January 31, Three Months (In millions) 2023 2022 Derivatives designated as cash flow hedges Location of (Gain)/Loss Recognized on Derivatives Interest rate swap contracts Interest (income) expense $ (8.3) $ 1.9 |
Schedule of changes in accumulated other comprehensive income | Analysis of Changes in Accumulated Other Comprehensive Income: (In millions) Foreign Currency Translation Adjustment Minimum Pension Liability Derivative Instruments Total Balance at October 31, 2021 $ (320.3) $ (34.1) $ 13.1 $ (341.3) Gross change in value (49.2) — 17.6 (31.6) Tax effect — — (4.3) (4.3) Balance at January 31, 2022 $ (369.5) $ (34.1) $ 26.4 $ (377.2) Balance at October 31, 2022 $ (555.0) $ (6.2) $ 94.4 $ (466.8) Gross change in value 84.0 — (27.8) 56.2 Tax effect — — 6.8 6.8 Balance at January 31, 2023 $ (471.0) $ (6.2) $ 73.4 $ (403.8) The following table details the changes in accumulated other comprehensive income: Period Ended January 31, Three Months (In millions) 2023 2022 Beginning balance gain $ 124.5 $ 17.2 Amount recognized in other comprehensive income on interest rate swap contracts, gross ($(14.8) million, net of tax and $11.9 million, net of tax, respectively) (19.5) 15.7 Amount reclassified from other comprehensive income into earnings, gross ($(6.2) million, net of tax and $1.4 million, net of tax, respectively) (8.3) 1.9 Ending balance gain $ 96.7 $ 34.8 |
Acquisitions and Joint Ventur_2
Acquisitions and Joint Venture - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Nov. 01, 2022 | Dec. 17, 2021 | Mar. 31, 2022 | Apr. 30, 2023 | Jan. 31, 2023 | Jan. 31, 2022 | Oct. 31, 2022 | Jan. 19, 2021 | |
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 3,672,300,000 | $ 3,609,700,000 | ||||||
Finite-lived intangible asset, useful life | 16 years | |||||||
Proceeds from sale of interest in a subsidiary | $ 52,100,000 | |||||||
Payments to form joint venture | 10,000,000 | |||||||
Equity method investments | 90,000,000 | |||||||
Equity method investment realized gain | $ 56,900,000 | |||||||
Decrease in contingent consideration liability | $ 31,800,000 | $ 0 | ||||||
SightGlass Vision, Inc. | ||||||||
Business Acquisition [Line Items] | ||||||||
Equity method investment, ownership percentage | 50% | |||||||
Essilor International SAS | ||||||||
Business Acquisition [Line Items] | ||||||||
Payments to form joint venture | $ 10,000,000 | |||||||
Composite intangible asset | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite-lived intangible asset, useful life | 19 years | |||||||
Trademarks | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite-lived intangible asset, useful life | 15 years | |||||||
Technology-Based Intangible Assets [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite-lived intangible asset, useful life | 12 years | |||||||
Privately-Held U.S.-Based Company, Technologically Advanced Contact Lens Products | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 13,100,000 | |||||||
Goodwill, expected tax deductible amount | 0 | |||||||
Aggregate consideration | 33,000,000 | |||||||
Privately-Held U.S.-Based Company, Technologically Advanced Contact Lens Products | Composite intangible asset | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite-lived intangibles | 12,600,000 | |||||||
Privately-Held U.S.-Based Company, Technologically Advanced Contact Lens Products | Technology-Based Intangible Assets [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite-lived intangibles | $ 7,600,000 | |||||||
Cook Medicals Reproductive Health Business | Forecast | Subsequent Event | ||||||||
Business Acquisition [Line Items] | ||||||||
Aggregate consideration | $ 875,000,000 | |||||||
Payments to acquire business | 675,000,000 | |||||||
Payables incurred in acquisition | 200,000,000 | |||||||
Cook Medicals Reproductive Health Business | Forecast | Subsequent Event | Payables First Installment | ||||||||
Business Acquisition [Line Items] | ||||||||
Payables incurred in acquisition | 50,000,000 | |||||||
Cook Medicals Reproductive Health Business | Forecast | Subsequent Event | Payables Second Installment | ||||||||
Business Acquisition [Line Items] | ||||||||
Payables incurred in acquisition | 50,000,000 | |||||||
Cook Medicals Reproductive Health Business | Forecast | Subsequent Event | Payables Third Installment | ||||||||
Business Acquisition [Line Items] | ||||||||
Payables incurred in acquisition | 50,000,000 | |||||||
Cook Medicals Reproductive Health Business | Forecast | Subsequent Event | Payables Fourth Installment | ||||||||
Business Acquisition [Line Items] | ||||||||
Payables incurred in acquisition | $ 50,000,000 | |||||||
Generate Life Sciences | ||||||||
Business Acquisition [Line Items] | ||||||||
Total purchase price | $ 1,663,100,000 | |||||||
Total assets acquired | 2,124,300,000 | |||||||
Total liabilities assumed | 461,200,000 | |||||||
Goodwill | 1,173,900,000 | |||||||
Goodwill, expected tax deductible amount | 0 | |||||||
Payments to acquire business | $ 1,663,000,000 | |||||||
Ownership percentage | 100% | |||||||
Generate Life Sciences | Composite intangible asset | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite-lived intangibles | $ 718,300,000 | |||||||
Finite-lived intangible asset, useful life | 20 years | |||||||
Generate Life Sciences | Trademarks | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite-lived intangibles | $ 54,900,000 | |||||||
Finite-lived intangible asset, useful life | 15 years | |||||||
Generate Life Sciences | Line of Credit | Term Loan Facility 2021 | ||||||||
Business Acquisition [Line Items] | ||||||||
Proceeds from line of credit | $ 1,500,000,000 | |||||||
Privately-Held Medical Device Company, Spectacle Lenses, Portion Attributable To Former Equity Interest Owners | ||||||||
Business Acquisition [Line Items] | ||||||||
Undiscounted range of the contingent consideration, minimum | $ 0 | |||||||
Undiscounted range of the contingent consideration, maximum | $ 139,100,000 | |||||||
Payment to settle former equity interest owners | $ 42,900,000 | |||||||
Net gains recognized | $ 12,200,000 | |||||||
Decrease in contingent consideration liability | $ 31,800,000 |
Acquisitions and Joint Venture-
Acquisitions and Joint Venture- Asset and Liabilities (Details) - USD ($) $ in Millions | Jan. 31, 2023 | Oct. 31, 2022 | Dec. 17, 2021 |
Current assets: | |||
Goodwill | $ 3,672.3 | $ 3,609.7 | |
Generate Life Sciences | |||
Current assets: | |||
Cash and cash equivalents | $ 58.6 | ||
Trade accounts receivable, net | 18.1 | ||
Inventories | 3.3 | ||
Prepaid expense and other current assets | 33.1 | ||
Total current assets | 113.1 | ||
Property, plant and equipment | 42.6 | ||
Goodwill | 1,173.9 | ||
Other assets | 21.5 | ||
Total assets acquired | 2,124.3 | ||
Current liabilities: | |||
Accounts payable | 12.6 | ||
Employee compensation and benefits | 12.3 | ||
Deferred revenue | 71.4 | ||
Other current liabilities | 11.6 | ||
Total current liabilities | 107.9 | ||
Deferred tax liabilities | 144.3 | ||
Lease liabilities | 16.6 | ||
Deferred revenue | 188.8 | ||
Other long-term liabilities | 3.6 | ||
Total liabilities assumed | 461.2 | ||
Total purchase price | 1,663.1 | ||
Generate Life Sciences | Composite intangible asset | |||
Current assets: | |||
Finite-lived intangibles | 718.3 | ||
Generate Life Sciences | Trademarks | |||
Current assets: | |||
Finite-lived intangibles | $ 54.9 |
Acquisitions and Joint Ventur_3
Acquisitions and Joint Venture - Contingent Consideration Reconciliation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2023 | Jan. 31, 2022 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 33.4 | $ 97.4 |
Purchase price contingent consideration | 0 | 0 |
Payments | 0 | 0 |
Change in fair value | (31.8) | 3.5 |
Ending balance | $ 1.6 | $ 100.9 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jan. 31, 2023 | Oct. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 191.6 | $ 173.7 |
Work-in-process | 18.1 | 15.2 |
Finished goods | 449.4 | 439.8 |
Total inventories | $ 659.1 | $ 628.7 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2023 | Oct. 31, 2022 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 2,946.8 | $ 2,919 |
Accumulated Amortization | 1,094.2 | 1,044.7 |
Intangible assets with definite lives, net | $ 1,852.6 | 1,874.3 |
Weighted Average Amortization Period (in years) | 16 years | |
Intangible assets with indefinite lives, net | $ 10.8 | 10.8 |
Total other intangibles, net | 1,863.4 | 1,885.1 |
Composite intangible asset | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,110.4 | 1,092.7 |
Accumulated Amortization | $ 304.1 | 287 |
Weighted Average Amortization Period (in years) | 19 years | |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,061.9 | 1,061.9 |
Accumulated Amortization | $ 371.7 | 354 |
Weighted Average Amortization Period (in years) | 15 years | |
Technology-Based Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 512.9 | 504.1 |
Accumulated Amortization | $ 327.3 | 317.5 |
Weighted Average Amortization Period (in years) | 12 years | |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 210.9 | 209.6 |
Accumulated Amortization | $ 66.3 | 62.4 |
Weighted Average Amortization Period (in years) | 15 years | |
License and distribution rights and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 50.7 | 50.7 |
Accumulated Amortization | $ 24.8 | $ 23.8 |
Weighted Average Amortization Period (in years) | 10 years |
Intangible Assets - Remaining A
Intangible Assets - Remaining Amortization Expenses for Intangible Assets with Definite Lives (Details) - USD ($) $ in Millions | Jan. 31, 2023 | Oct. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2023 | $ 139.2 | |
2024 | 181.4 | |
2025 | 171.5 | |
2026 | 164 | |
2027 | 149 | |
Thereafter | 1,047.5 | |
Intangible assets with definite lives, net | $ 1,852.6 | $ 1,874.3 |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) | 3 Months Ended |
Jan. 31, 2023 USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Impairment of intangible assets | $ 0 |
Financing Arrangements - Total
Financing Arrangements - Total Debt (Details) - USD ($) $ in Millions | Jan. 31, 2023 | Oct. 31, 2022 |
Short-term Debt | ||
Short-term debt | $ 51.6 | $ 395.7 |
Financing lease liabilities | $ 16.5 | 16.9 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Short-term debt | |
Short-term debt | $ 68.1 | 412.6 |
Long-term Debt | ||
Less: unamortized debt issuance cost | (2.9) | (3.1) |
Long-term debt, excluding financing leases | 2,623.7 | 2,347.1 |
Financing lease liabilities | $ 3.6 | 3.7 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-term debt | |
Long-term debt | $ 2,627.3 | 2,350.8 |
Total debt | 2,695.4 | 2,763.4 |
Overdraft and other credit facilities | ||
Short-term Debt | ||
Short-term debt | 51.6 | 57.7 |
Term loans | ||
Short-term Debt | ||
Short-term debt | 0 | 338 |
Term loans | ||
Long-term Debt | ||
Long-term debt, gross | 2,350 | 2,350 |
Other | ||
Long-term Debt | ||
Long-term debt, gross | 0.1 | 0.2 |
Revolving Credit Facility | Line of Credit | ||
Long-term Debt | ||
Long-term debt, gross | $ 276.5 | $ 0 |
Financing Arrangements - Narrat
Financing Arrangements - Narrative (Details) - USD ($) | Nov. 02, 2021 | Jan. 31, 2023 | Dec. 17, 2021 | Apr. 01, 2020 |
Term Loan Agreement 2021, 364 Day | Term loans | ||||
Schedule of Long Term And Short Term Debt Instruments [Line Items] | ||||
Debt term | 364 days | |||
Debt instrument, face amount | $ 840,000,000 | |||
Line of Credit | Term Loan Facility 2021 | ||||
Schedule of Long Term And Short Term Debt Instruments [Line Items] | ||||
Aggregate principal amount | $ 1,500,000,000 | |||
Debt outstanding | $ 1,500,000,000 | |||
Interest rate | 5.04% | |||
Revolving Credit Facility | Credit Agreement 2020 | Line of Credit | ||||
Schedule of Long Term And Short Term Debt Instruments [Line Items] | ||||
Aggregate principal amount | $ 1,290,000,000 | |||
Debt outstanding | $ 276,500,000 | |||
Term Loan Facility 2020 | Credit Agreement 2020 | Line of Credit | ||||
Schedule of Long Term And Short Term Debt Instruments [Line Items] | ||||
Aggregate principal amount | 850,000,000 | |||
Debt outstanding | $ 850,000,000 | |||
Revolving Credit Facility And Term Loan Facility 2020 | Credit Agreement 2020 | Line of Credit | ||||
Schedule of Long Term And Short Term Debt Instruments [Line Items] | ||||
Interest rate | 5.37% | |||
Potential additional borrowing capacity | $ 1,605,000,000 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Jan. 31, 2023 | Jan. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 30.70% | 21.80% |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Jan. 31, 2023 | Jan. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Net income | $ 84.6 | $ 95.3 |
Basic: | ||
Weighted average common shares (in shares) | 49.4 | 49.4 |
Basic earnings per share (in dollars per share) | $ 1.71 | $ 1.93 |
Diluted: | ||
Weighted average common shares (in shares) | 49.4 | 49.4 |
Effect of potential dilutive shares (in shares) | 0.3 | 0.5 |
Diluted weighted average common shares (in shares) | 49.7 | 49.9 |
Diluted earnings per share (in dollars per share) | $ 1.70 | $ 1.91 |
Earnings Per Share - Schedule_2
Earnings Per Share - Schedule of Stock Options and Restricted Stock Units that were not Included in the Diluted Earnings Per Share Calculation (Details) - $ / shares shares in Thousands | 3 Months Ended | |
Jan. 31, 2023 | Jan. 31, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Exercise prices, lower limit | $ 300.12 | $ 345.74 |
Exercise prices, upper limit | $ 406.17 | $ 406.17 |
Stock Options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Number of stock option shares and restricted stock units excluded (in shares) | 514 | 224 |
Restricted Stock Units (RSUs) | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Number of stock option shares and restricted stock units excluded (in shares) | 213,000 | 0 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2023 | Jan. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total share-based compensation expense | $ 16.3 | $ 13.6 |
Related income tax benefit | 1.7 | 1.6 |
Selling, general and administrative expense | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total share-based compensation expense | 14.4 | 11.5 |
Cost of sales | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total share-based compensation expense | 1.1 | 1.3 |
Research and development expense | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total share-based compensation expense | $ 0.8 | $ 0.8 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Changes in Accumulated Other Comprehensive Income (Loss) Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2023 | Jan. 31, 2022 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 7,174.7 | $ 6,942 |
Gross change in value | 56.2 | (31.6) |
Tax effect | 6.8 | (4.3) |
Ending balance | 7,335.7 | 6,926.1 |
Foreign Currency Translation Adjustment | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (555) | (320.3) |
Gross change in value | 84 | (49.2) |
Tax effect | 0 | 0 |
Ending balance | (471) | (369.5) |
Minimum Pension Liability | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (6.2) | (34.1) |
Gross change in value | 0 | 0 |
Tax effect | 0 | 0 |
Ending balance | (6.2) | (34.1) |
Derivative Instruments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 94.4 | 13.1 |
Gross change in value | (27.8) | 17.6 |
Tax effect | 6.8 | (4.3) |
Ending balance | 73.4 | 26.4 |
Accumulated Other Comprehensive Income (Loss) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (466.8) | (341.3) |
Ending balance | $ (403.8) | $ (377.2) |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |||||
Feb. 10, 2023 | Feb. 09, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | Mar. 31, 2017 | Dec. 31, 2011 | |
Subsequent Event [Line Items] | ||||||
Share repurchase program, authorized amount for repurchase | $ 1,000 | $ 500 | ||||
Share repurchase program, remaining authorized amount for repurchase | $ 256.4 | |||||
Stock repurchase (in shares) | 0 | 191,200 | ||||
Treasury stock repurchase | $ 78.5 | |||||
Average repurchase price per share (in dollars per share) | $ 410.41 | |||||
Dividends on common stock | $ 1.5 | |||||
Dividends on common stock (in dollars per share) | $ 0.03 | $ 0.03 | $ 0.03 | |||
Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Dividends on common stock | $ 1.5 | |||||
Dividends on common stock (in dollars per share) | $ 0.03 |
Business Segment Information -
Business Segment Information - Schedule of Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2023 | Jan. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Total net sales | $ 858.5 | $ 787.2 |
Total operating income | 149.5 | 130.8 |
Interest expense | 26.1 | 6.6 |
Other expense, net | 1.3 | 2.3 |
Income before income taxes | 122.1 | 121.9 |
Operating Segments | CooperVision | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 581.3 | 561.5 |
Total operating income | 160.1 | 127.4 |
Operating Segments | CooperSurgical | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 277.2 | 225.7 |
Total operating income | 5.8 | 15.6 |
Operating Segments | Toric lens | CooperVision | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 189.8 | 182.2 |
Operating Segments | Multifocal lens | CooperVision | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 71.8 | 65.8 |
Operating Segments | Single-use sphere lens | CooperVision | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 168.3 | 167 |
Operating Segments | Non single-use sphere, other | CooperVision | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 151.4 | 146.5 |
Operating Segments | Office and surgical | CooperSurgical | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 165.2 | 128.9 |
Operating Segments | Fertility | CooperSurgical | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 112 | 96.8 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Total operating income | $ (16.4) | $ (12.2) |
Business Segment Information _2
Business Segment Information - Schedule of Identifiable Assets by Segment (Details) - USD ($) $ in Millions | Jan. 31, 2023 | Oct. 31, 2022 |
Segment Reporting Information [Line Items] | ||
Total Identifiable assets | $ 11,561.1 | $ 11,492.3 |
Operating Segments | CooperVision | ||
Segment Reporting Information [Line Items] | ||
Total Identifiable assets | 6,945.7 | 6,778.9 |
Operating Segments | CooperSurgical | ||
Segment Reporting Information [Line Items] | ||
Total Identifiable assets | 4,333.9 | 4,407.8 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Total Identifiable assets | $ 281.5 | $ 305.6 |
Business Segment Information _3
Business Segment Information - Schedule of Net Sales to Unaffiliated Customers by Country of Domicile (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2023 | Jan. 31, 2022 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net sales | $ 858.5 | $ 787.2 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net sales | 434.8 | 365.3 |
Europe | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net sales | 248.2 | 250.4 |
Rest of world | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net sales | $ 175.5 | $ 171.5 |
Business Segment Information _4
Business Segment Information - Schedule of Net Property, Plant and Equipment By Country of Domicile (Details) - USD ($) $ in Millions | Jan. 31, 2023 | Oct. 31, 2022 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net property, plant and equipment | $ 1,464 | $ 1,432.9 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net property, plant and equipment | 871.3 | 856.1 |
Europe | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net property, plant and equipment | 325.3 | 310.8 |
Rest of world | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net property, plant and equipment | $ 267.4 | $ 266 |
Financial Derivatives and Hed_3
Financial Derivatives and Hedging - Narrative (Details) $ in Millions | 3 Months Ended | ||
Jan. 31, 2023 USD ($) interest_rate_swap_contract | Jan. 31, 2022 USD ($) | Apr. 06, 2020 USD ($) interest_rate_swap_contract | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Pre-tax impact of gain (loss) on derivatives recognized in other comprehensive income (loss) | $ 96.7 | $ 34.8 | |
Gain (loss) on derivatives recognized in other comprehensive income (loss), net of tax | 73.4 | $ 26.4 | |
Derivative loss expected to be realized in earnings over the next twelve months | 38.1 | ||
Interest Rate Swap | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Number of interest rate swap contracts held | interest_rate_swap_contract | 6 | ||
Derivative notional amount | $ 1,000 | $ 1,500 | |
Number of interest rate swap contracts matured | interest_rate_swap_contract | 3 | ||
Interest rate swap contracts, contract term (or less) | 5 years |
Financial Derivatives and Hed_4
Financial Derivatives and Hedging - Schedule of Derivative Instruments Recognized in Condensed Consolidated Statements of Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2023 | Jan. 31, 2022 | |
Interest (income) expense | Interest Rate Swap | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Loss recognized on derivatives within interest expense | $ (8.3) | $ 1.9 |
Financial Derivatives and Hed_5
Financial Derivatives and Hedging - Schedule of Changes in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2023 | Jan. 31, 2022 | |
AOCI Attributable To Parent, Before Reclassification And Tax [Roll Forward] | ||
Beginning balance | $ 7,174.7 | $ 6,942 |
Amount recognized in other comprehensive income on interest rate swaps contracts, net of tax | (14.8) | 11.9 |
Amount reclassified from other comprehensive income into earnings, net of tax | (6.2) | 1.4 |
Ending balance | 7,335.7 | 6,926.1 |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Before Tax, Parent | ||
AOCI Attributable To Parent, Before Reclassification And Tax [Roll Forward] | ||
Beginning balance | 124.5 | 17.2 |
Ending balance | 96.7 | 34.8 |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||
AOCI Attributable To Parent, Before Reclassification And Tax [Roll Forward] | ||
Beginning balance | 94.4 | 13.1 |
Amount recognized in other comprehensive income on interest rate swap contracts, gross ($(14.8) million, net of tax and $11.9 million, net of tax, respectively) | (19.5) | 15.7 |
Amount reclassified from other comprehensive income into earnings, gross ($(6.2) million, net of tax and $1.4 million, net of tax, respectively) | (8.3) | 1.9 |
Ending balance | $ 73.4 | $ 26.4 |