Cover Page
Cover Page - shares | 3 Months Ended | |
Jan. 31, 2021 | Feb. 26, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jan. 31, 2021 | |
Document Transition Report | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --10-31 | |
Amendment Flag | false | |
Entity Central Index Key | 0000072331 | |
Entity File Number | 0-7977 | |
Entity Registrant Name | NORDSON CORPORATION | |
Entity Incorporation, State or Country Code | OH | |
Entity Tax Identification Number | 34-0590250 | |
Entity Address, Address Line One | 28601 Clemens Road | |
Entity Address, City or Town | Westlake | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 44145 | |
City Area Code | 440 | |
Local Phone Number | 892-1580 | |
Title of 12(b) Security | Common Shares, without par value | |
Trading Symbol | NDSN | |
Security Exchange Name | NASDAQ | |
Entity 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 | 58,085,657 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Income Statement [Abstract] | ||
Sales | $ 526,566 | $ 494,916 |
Operating costs and expenses: | ||
Cost of sales | 236,606 | 231,722 |
Selling and administrative expenses | 180,935 | 188,101 |
Total operating costs and expenses | 417,541 | 419,823 |
Operating profit | 109,025 | 75,093 |
Operating profit | ||
Interest expense | (6,932) | (9,740) |
Interest and investment income | 380 | 588 |
Other - net | (4,661) | (2,846) |
Total other income (expense) | (11,213) | (11,998) |
Income before income taxes | 97,812 | 63,095 |
Income taxes | 20,230 | 11,091 |
Net income | $ 77,582 | $ 52,004 |
Average common shares | 58,059 | 57,668 |
Incremental common shares attributable to equity compensation | 696 | 856 |
Average common shares and common share equivalents | 58,755 | 58,524 |
Basic earnings per share (in dollars per share) | $ 1.34 | $ 0.90 |
Diluted earnings per share (in dollars per share) | $ 1.32 | $ 0.89 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 77,582 | $ 52,004 |
Components of other comprehensive income: | ||
Foreign currency translation adjustments | 28,433 | 2,793 |
Amortization of prior service cost and net actuarial losses, net of tax | 2,997 | 3,229 |
Total other comprehensive income | 31,430 | 6,022 |
Total comprehensive income | $ 109,012 | $ 58,026 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 31, 2021 | Oct. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 225,738 | $ 208,293 |
Receivables - net | 455,376 | 471,873 |
Inventories - net | 282,440 | 277,033 |
Prepaid expenses and other current assets | 45,124 | 43,798 |
Assets held for sale | 19,451 | 19,615 |
Total current assets | 1,028,129 | 1,020,612 |
Property, plant and equipment - net | 358,670 | 358,618 |
Operating right of use lease assets | 123,041 | 122,125 |
Goodwill | 1,722,824 | 1,713,354 |
Intangible assets - net | 396,935 | 407,586 |
Deferred income taxes | 9,926 | 9,831 |
Other assets | 43,876 | 42,530 |
Total assets | 3,683,401 | 3,674,656 |
Current liabilities: | ||
Accounts payable | 74,148 | 70,949 |
Income taxes payable | 8,238 | 7,841 |
Accrued liabilities | 150,751 | 167,883 |
Customer advanced payments | 50,934 | 42,323 |
Current maturities of long-term debt | 38,043 | 38,043 |
Operating lease liability - current | 17,215 | 16,918 |
Finance lease liability - current | 6,069 | 5,984 |
Liabilities held for sale | 14,211 | 13,148 |
Total current liabilities | 359,609 | 363,089 |
Long-term debt | 981,284 | 1,067,952 |
Operating lease liability - noncurrent | 109,839 | 109,317 |
Finance lease liability - noncurrent | 10,806 | 10,470 |
Deferred income taxes | 67,912 | 66,995 |
Pension obligations | 165,831 | 165,529 |
Postretirement obligations | 85,358 | 85,249 |
Other long-term liabilities | 45,579 | 47,064 |
Shareholders' equity: | ||
Common shares | 12,253 | 12,253 |
Capital in excess of stated value | 551,266 | 534,684 |
Retained earnings | 2,963,252 | 2,908,738 |
Accumulated other comprehensive loss | (194,688) | (226,118) |
Common shares in treasury, at cost | (1,474,900) | (1,470,566) |
Total shareholders' equity | 1,857,183 | 1,758,991 |
Total liabilities and shareholders' equity | $ 3,683,401 | $ 3,674,656 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Revision of Prior Period, Change in Accounting Principle, Adjustment [Member] | Common Shares | Additional Paid-in Capital | Retained Earnings | Retained EarningsRevision of Prior Period, Change in Accounting Principle, Adjustment [Member] | Accumulated Other Comprehensive Income (Loss) | Common Shares in Treasury, at cost |
Balance at Oct. 31, 2019 | $ 1,581,045 | $ (1,055) | $ 12,253 | $ 483,116 | $ 2,747,650 | $ (1,055) | $ (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 | ||||||
Other Comprehensive Income (Loss): | ||||||||
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) | ||
Balance at Oct. 31, 2020 | 1,758,991 | $ (396) | 12,253 | 534,684 | 2,908,738 | $ (396) | (226,118) | (1,470,566) |
Shares issued under company stock and employee benefit plans | 7,438 | 6,462 | 976 | |||||
Stock-based compensation | 10,120 | 10,120 | ||||||
Purchase of treasury shares, value | (5,310) | (5,310) | ||||||
Dividends declared | (22,672) | (22,672) | ||||||
Net income | 77,582 | 77,582 | ||||||
Other Comprehensive Income (Loss): | ||||||||
Foreign currency translation adjustments | 28,433 | 28,433 | ||||||
Defined benefit pension and post-retirement plans adjustment | 2,997 | 2,997 | ||||||
Balance at Jan. 31, 2021 | $ 1,857,183 | $ 12,253 | $ 551,266 | $ 2,963,252 | $ (194,688) | $ (1,474,900) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares shares in Thousands | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201602Member |
Purchase of treasury shares, shares | 27,347 | 26,223 |
Dividends declared per share | $ 0.39 | $ 0.38 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 77,582 | $ 52,004 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 26,020 | 28,618 |
Non-cash stock compensation | 10,120 | 6,105 |
Deferred income taxes | (373) | (182) |
Other non-cash expense | 163 | 1,135 |
Loss on sale of property, plant and equipment | 361 | 109 |
Changes in operating assets and liabilities | 29,416 | 28,486 |
Net cash provided by operating activities | 143,289 | 116,275 |
Cash flows from investing activities: | ||
Additions to property, plant and equipment | (7,917) | (13,881) |
Proceeds from sale of property, plant and equipment | 22 | 65 |
Net cash used in investing activities | (7,895) | (13,816) |
Cash flows from financing activities: | ||
Repayment of long-term debt | (100,000) | (125,951) |
Repayment of finance lease obligations | (1,734) | (2,421) |
Issuance of common shares | 7,438 | 16,379 |
Purchase of treasury shares | (5,310) | (4,311) |
Dividends paid | (22,672) | (21,915) |
Net cash used in financing activities | (122,278) | (138,219) |
Effect of exchange rate changes on cash | 4,329 | (307) |
Increase in cash and cash equivalents | 17,445 | (36,067) |
Cash and cash equivalents: | ||
Beginning of year | 208,293 | 151,164 |
End of period | $ 225,738 | $ 115,097 |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Jan. 31, 2021 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant accounting policies Basis of presentation . The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended January 31, 2021 are not necessarily indicative of the results that may be expected for the full year. For further information, refer to the consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended October 31, 2020. Basis of consolidation . The consolidated financial statements include the accounts of Nordson Corporation and its majority-owned and controlled subsidiaries. Investments in affiliates and joint ventures in which our ownership is 50% or less or in which we do not have control but have the ability to exercise significant influence, are accounted for under the equity method. All significant intercompany accounts and transactions have been eliminated in consolidation. Use of estimates . The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Actual amounts could differ from these 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 Condensed Consolidated Balance Sheets. Revenues deferred as of January 31, 2021 and 2020 were not material. However, for certain contracts related to the sale of customer-specific products within our Advanced Technology Solutions segment, revenue 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, 2021 and October 31, 2020. 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 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 and are generally not material. 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 our Operating Segments note. Earnings per share . Basic earnings per share are computed based on the weighted-average number of common shares outstanding during each year, while diluted earnings per share are based on the weighted-average number of common shares and common share equivalents outstanding. Common share equivalents consist of shares issuable upon exercise of stock options computed using the treasury stock method, as well as restricted shares and deferred stock-based compensation. Options with an exercise price higher than the average market price are excluded from the calculation of diluted earnings per share because the effect would be anti-dilutive. Options excluded from the calculation of diluted earnings per share for the three months ended January 31, 2021 were 92. No options 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, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Standards | Recently issued accounting standards New accounting guidance adopted: In June 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326),” which changed the impairment model for most financial instruments. Prior guidance required the recognition of credit losses based on an incurred loss impairment methodology that reflected losses once the losses are probable. We adopted the new standard on November 1, 2020 and are now applying a current expected credit loss model that requires recognizing an estimate of credit losses that are expected to occur over the life of the financial instruments that are in the scope of the update, including trade receivables. The standard requires judgment and consideration of historical information, current information, and reasonable and supportable forecasts, as well as the impact of any prepayments. In addition, we reviewed our business processes and controls to support the recognition and disclosure as required under the new standard. The adoption of this new standard did not have a material impact on our Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-15, “Intangibles – Goodwill and Other Internal-Use Software (Subtopic 350-40),” which is meant to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement (hosting arrangement), by providing guidance in determining when the arrangement includes a software license. We adopted the new standard on November 1, 2020. Hosted arrangements deemed to be in scope will follow the capitalization criteria for implementation costs as though they were internal-use computer software. There may be multiple elements besides the software license (such as: training, future upgrades, data conversion, and other elements) which require the allocation of the contract price to each of the elements; entities are to capitalize only those elements which meet the capitalization criteria. Capitalized implementation costs are amortized over the term of the hosted arrangement including consideration for renewal or termination options. In addition, we reviewed our business processes and controls to support the recognition and disclosure as required under the new standard. The adoption of this new standard did not have a material impact on our Consolidated Financial Statements. In August 2018, the FASB issued a new standard which removed, modified, and added certain disclosure requirements on fair value measurements. The guidance removed 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 clarified that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date. The guidance added disclosure requirements for changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period as well as the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. We adopted the new standard on November 1, 2020 with no material impact to the Consolidated Financial Statements. New accounting guidance issued and not yet adopted: In August 2018, the FASB issued 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 periodic 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 requirements surrounding the projected benefit obligation (PBO) and fair value of plan assets for plans with PBOs in excess of plan assets and the accumulated benefit obligation (ABO) and fair value of plan assets for plans with ABOs in excess of plan assets. 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 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 this standard will have on our Consolidated Financial Statements. |
Acquisitions
Acquisitions | 3 Months Ended |
Jan. 31, 2021 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Business acquisitions have been accounted for using the acquisition method, with the acquired assets and liabilities recorded at estimated fair value on the dates of acquisition. The cost in excess of the net assets of the business acquired is included in goodwill. Operating results since the respective dates of acquisitions are included in the Condensed Consolidated Statements of Income. On September 1, 2020, we acquired 100 percent of the outstanding shares of vivaMOS Ltd. ("vivaMOS"), a developer and fabricator of high-end large-area complementary metal–oxide–semiconductor (CMOS) image sensors for a wide range of X-ray applications. We acquired vivaMOS for an aggregate purchase price of $17,154, net of cash and other closing adjustments of approximately $158, utilizing cash on hand. Based on the fair value of the assets acquired and the liabilities assumed, goodwill of $14,394 and identifiable intangible assets of $4,040 were recorded. The identifiable intangible assets consist primarily of $3,900 of technology (amortized over 10 years) and $140 of non-compete agreements (amortized over 3 years). Goodwill associated with this acquisition is not tax deductible. This acquisition is being reported in our Advanced Technology Solutions segment and the results of vivaMOS are not material to our Consolidated Financial Statements. As of January 31, 2021, the purchase price allocation remains preliminary as we complete our assessments of income taxes. On June 1, 2020, we acquired 100 percent of the outstanding shares of Fluortek, Inc. ("Fluortek"), a precision plastic extrusion manufacturer that provides custom dimensioned tubing to the medical device industry. We acquired Fluortek for an aggregate purchase price of $125,260, net of cash and other closing adjustments of approximately $515, utilizing cash on hand. Based on the fair value of the assets acquired and the liabilities assumed, property, plant and equipment and working capital – net of $19,843, goodwill of $76,047 and identifiable intangible assets of $29,370 were recorded. The identifiable intangible assets consist primarily of $19,700 of customer relationships (amortized over 12 years), $7,400 of technology (amortized over 10 years), $1,500 of tradenames (amortized over 10 years), and $770 of non-compete agreements (amortized over 5 years). Goodwill associated with this acquisition is tax deductible. This acquisition is being reported in our Advanced Technology Solutions segment and the results for Fluortek are not material to our Consolidated Financial Statements. As of January 31, 2021, the purchase price allocations remain preliminary as we complete our assessments of income taxes. |
Assets Held for Sale
Assets Held for Sale | 3 Months Ended |
Jan. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets Held for Sale | Assets Held for Sale In the fourth quarter of 2020, we committed to a plan to sell our screws and barrels product line within the Adhesives reporting unit under our Industrial Precision Solutions operating segment and determined that it met the criteria to be classified as held for sale. Therefore, these assets and liabilities have been presented as held for sale in the Condensed Consolidated Balance Sheets as of January 31, 2021 and October 31, 2020. Assets and liabilities classified as held for sale are measured at the lower of carrying value or fair value less costs to sell. We entered into a letter of intent to sell the screws and barrels product line in October 2020. In December 2020, we entered into a definitive agreement with the buyer and the transaction was completed in February 2021. Before measuring the fair value less costs to sell of the disposal group as a whole, we first reviewed individual assets and liabilities to determine if any fair value adjustments were required and concluded no individual asset impairments were required. Then, based on the definitive agreement entered into by us and the buyer, we determined the fair value of the disposal group to be equal to the selling price, less costs to sell. Based on this review, we recorded a non-cash, assets held for sale impairment charge of $87,371 in 2020. Subsequent adjustments to the loss due to changes in the carrying value of net assets held for sale as well as estimated sales proceeds less costs to sell were immaterial. The assets and liabilities of the screws and barrels product line classified as held for sale at January 31, 2021 and October 31, 2020 were as follows: January 31, 2021 October 31, 2020 Receivables - net $ 9,883 $ 14,327 Inventories - net 11,399 9,854 Prepaid expenses and other current assets 1,424 696 Property, plant and equipment - net 59,260 58,950 Other assets 24,016 23,159 Impairment on carrying value (86,531) (87,371) Assets held for sale $ 19,451 $ 19,615 Accounts payable $ 5,010 $ 4,625 Accrued liabilities 4,315 3,352 Other liabilities 4,886 5,171 Liabilities held for sale $ 14,211 $ 13,148 Excluding the non-cash, assets held for sale impairment charge recorded in the fourth quarter of 2020, the operating results of the screws and barrels product line were not material to our Consolidated Financial Statements for any period presented. |
Receivables
Receivables | 3 Months Ended |
Jan. 31, 2021 | |
Credit Loss [Abstract] | |
Receivables | Receivables Our primary allowance for credit losses is the allowance for doubtful accounts, which is principally determined based on aging of receivables. Receivables are exposed to credit risk based on the customers' ability to pay which is influenced by, among other factors, their financial liquidity. We perform ongoing customer credit evaluation to maintain sufficient allowances for potential credit losses. Our segments perform credit evaluation and monitoring to estimate and manage credit risk through the review of customer information, credit ratings, approval and monitoring of customer credit limits, and assessment of market conditions. We may also require prepayments or bank guarantees from customers to mitigate credit risk. Our receivables are generally short-term in nature with a majority of receivables outstanding less than 90 days. Account receivable balances are written-off against the allowance if deemed uncollectible. Accounts receivable are net of an allowance for credit losses of $9,243 and $9,045 at January 31, 2021 and October 31, 2020, respectively. The change in the allowance for expected credit losses includes a provision for losses on receivables of $103 as well as an immaterial accounting standard adoption impact from ASU 2016-13 of $396 for the three months ended January 31, 2021 compared to a provision for losses on receivables $388 in the three months ended October 31, 2020, which were principally offset by write-offs of uncollectible accounts. |
Inventories
Inventories | 3 Months Ended |
Jan. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories At January 31, 2021 and October 31, 2020, inventories consisted of the following: January 31, 2021 October 31, 2020 Finished goods $ 184,065 $ 183,860 Raw materials and component parts 100,496 94,630 Work-in-process 47,345 44,403 331,906 322,893 Obsolescence and other reserves (44,471) (41,315) LIFO reserve (4,995) (4,545) $ 282,440 $ 277,033 |
Property, Plant, and Equipment
Property, Plant, and Equipment | 3 Months Ended |
Jan. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment At January 31, 2021 and October 31, 2020, property, plant and equipment consisted of the following: January 31, 2021 October 31, 2020 Land $ 8,883 $ 8,816 Land improvements 4,631 4,611 Buildings 256,886 253,621 Machinery and equipment 476,264 464,171 Enterprise management system 51,697 56,103 Construction-in-progress 32,391 29,897 Leased property under capitalized leases 34,283 32,590 865,035 849,809 Accumulated depreciation and amortization (506,365) (491,191) $ 358,670 $ 358,618 Property, plant and equipment are carried at cost. Additions and improvements that extend the lives of assets are capitalized, while expenditures for repairs and maintenance are expensed as incurred. Plant and equipment are depreciated for financial reporting purposes using the straight-line method over the estimated useful lives of the assets or, in the case of property under finance leases, over the terms of the leases. Leasehold improvements are depreciated over the shorter of the lease term or their useful lives. Internal use software costs are expensed or capitalized depending on whether they are incurred in the preliminary project stage, application development or the post implementation stage. Amounts capitalized are amortized over the estimated useful lives of the software beginning with the project's completion or the non-cancelable term of the arrangement with consideration for renewal options. Depreciation expense was $12,940 and $12,445 for the three months ended January 31, 2021 and January 31, 2020, respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Jan. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and other intangible assets Changes in the carrying amount of goodwill for the three months ended January 31, 2021 by operating segment are as follows: Industrial Advanced Total Balance at October 31, 2020 $ 415,862 $ 1,297,492 $ 1,713,354 Currency effect 4,614 4,856 9,470 Balance at January 31, 2021 $ 420,476 $ 1,302,348 $ 1,722,824 Information regarding our intangible assets subject to amortization is as follows: January 31, 2021 Carrying Accumulated Net Book Customer relationships $ 487,336 $ 204,435 $ 282,901 Patent/technology costs 155,455 81,205 74,250 Trade name 74,737 36,250 38,487 Non-compete agreements 10,031 8,734 1,297 Other 1,404 1,404 — Total $ 728,963 $ 332,028 $ 396,935 October 31, 2020 Carrying Accumulated Net Book Customer relationships $ 483,568 $ 193,617 $ 289,951 Patent/technology costs 153,555 76,934 76,621 Trade name 74,240 34,693 39,547 Non-compete agreements 9,908 8,444 1,464 Other 1,403 1,400 3 Total $ 722,674 $ 315,088 $ 407,586 Amortization expense for the three months ended January 31, 2021 and 2020 was $13,080 and $16,173, respectively. |
Pension and Other Postretiremen
Pension and Other Postretirement Plans | 3 Months Ended |
Jan. 31, 2021 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Plans | Pension and other postretirement plans The components of net periodic pension cost for the three months ended January 31, 2021 and 2020 were: U.S. International Three Months Ended 2021 2020 2021 2020 Service cost $ 5,766 $ 5,057 $ 518 $ 571 Interest cost 3,340 3,918 220 262 Expected return on plan assets (6,753) (6,159) (391) (330) Amortization of prior service credit (20) (21) (77) (74) Amortization of net actuarial loss 3,574 3,398 790 734 Total benefit cost $ 5,907 $ 6,193 $ 1,060 $ 1,163 The components of other postretirement benefit cost for the three months ended January 31, 2021 and 2020 were: U.S. International Three Months Ended 2021 2020 2021 2020 Service cost $ 176 $ 190 $ 4 $ 4 Interest cost 454 614 3 3 Amortization of prior service credit — (4) — — Amortization of net actuarial (gain) loss 347 419 (10) (9) Total benefit cost $ 977 $ 1,219 $ (3) $ (2) The components of net periodic pension cost other than service cost are included in Other – net in our Condensed Consolidated Statements of Income. |
Income Taxes
Income Taxes | 3 Months Ended |
Jan. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 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 rate for the three months ended January 31, 2021 and 2020 was 20.7% and 17.6%, respectively. The effective tax rate for the current quarter was higher than the comparable prior year period primarily due to share-based payment transactions which resulted in discrete tax benefits of $799 and $2,537 for the three months ended January 31, 2021 and 2020, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Jan. 31, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | 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 Balance at October 31, 2020 $ (40,422) $ (185,696) $ (226,118) Amortization of prior service costs and net actuarial losses, net of tax of ($930) — 2,997 2,997 Foreign currency translation adjustments 28,433 — 28,433 Balance at January 31, 2021 $ (11,989) $ (182,699) $ (194,688) |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Jan. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-based compensation During the 2018 Annual Meeting of Shareholders, our shareholders approved the Amended and Restated 2012 Stock Incentive and Award Plan (the “2012 Plan”). The 2012 Plan provides for the granting of stock options, stock appreciation rights, restricted shares, restricted share units, performance shares, cash awards and other stock or performance-based incentives. A maximum of 4,525 common shares were originally 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 $2,236 and $2,725 in the three months ended January 31, 2021 and 2020, respectively. The following table summarizes activity related to stock options for the three months ended January 31, 2021: Number of Weighted- Aggregate Weighted Outstanding at October 31, 2020 1,487 $ 122.45 Granted 92 201.50 Exercised (64) 116.96 Forfeited or expired (6) 146.89 Outstanding at January 31, 2021 1,509 $ 127.40 $ 80,152 7.0 years Expected to vest 600 $ 156.03 $ 16,077 8.5 years Exercisable at January 31, 2021 902 $ 108.12 $ 63,938 5.9 years As of January 31, 2021, there was $14,122 of total unrecognized compensation cost related to unvested stock options. That cost is expected to be amortized over a weighted average period of approximately 1.8 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, 2021 January 31, 2020 Expected volatility 30.8% - 32.6% 24.5% - 25.4% Expected dividend yield 0.83% 0.93% - 1.16% Risk-free interest rate 0.43% - 0.54% 1.64% - 1.69% Expected life of the option (in years) 5.3 - 6.2 5.3 - 6.2 The weighted-average expected volatility used to value the 2021 and 2020 options was 31.0% and 25.1%, respectively. Historical information was the primary basis for the selection of the expected volatility, expected dividend yield and the expected lives of the options. The risk-free interest rate was selected based upon yields of U.S. Treasury issues with a term equal to the expected life of the option being valued. The weighted average grant date fair value of stock options granted during the three months ended January 31, 2021 and 2020 was $56.05 and $37.82, respectively. The total intrinsic value of options exercised during the three months ended January 31, 2021 and 2020 was $5,435 and $17,244, respectively. Cash received from the exercise of stock options for the three months ended January 31, 2021 and 2020 was $7,438 and $16,379, respectively. Restricted Shares and Restricted Share Units We may grant restricted shares and/or restricted share units to our employees and directors. These shares or units may not be transferred for a designated period of time (generally one For employee recipients, in the event of termination of employment due to early retirement with the consent of the Company, restricted shares and units granted within 12 months prior to termination are forfeited, and other restricted shares and units vest on a pro-rata basis, subject to the consent of the Compensation Committee. In the event of termination of employment due to normal retirement at age 65, restricted shares and units granted within 12 months prior to termination are forfeited, and, for other restricted shares and units, the restriction period applicable to restricted shares will lapse and the shares will vest and be transferable and all unvested units will become vested in full, subject to the consent of the Compensation Committee. In the event of a recipient's disability or death, all restricted shares and units granted within 12 months prior to termination (or at any time prior to December 28, 2017), fully vest. Termination for any other reason prior to the lapse of any restrictions or vesting of units results in forfeiture of the shares or units. 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, 2021: Number of Shares Weighted-Average Restricted shares at October 31, 2020 58 $ 148.75 Granted — — Forfeited (1) 147.93 Vested (15) 139.70 Restricted shares units at January 31, 2021 42 $ 151.90 As of January 31, 2021, there was $3,263 of unrecognized compensation cost related to restricted shares. The cost is expected to be amortized over a weighted average period of 1.9 years. The amount charged to expense related to restricted shares during the three months ended January 31, 2021 and 2020 was $964 and $1,573, respectively. These amounts included common share dividends for the three months ended January 31, 2021 and 2020 of $18 and $25, respectively. The following table summarizes activity related to restricted share units during the three months ended January 31, 2021: Number of Units Weighted-Average Restricted shares units at October 31, 2020 — $ — Granted 85 202.14 Forfeited (2) 198.68 Vested (1) 201.50 Restricted shares units at January 31, 2021 82 $ 202.26 As of January 31, 2021, there was $14,526 of remaining expense to be recognized related to outstanding restricted share units, which is expected to be recognized over a weighted average period of 1.5 years. The amount charged to expense related to restricted share units during each of the three months ended January 31, 2021 and 2020 was $2,092 and $286, respectively. Performance Share Incentive Awards Executive officers and selected other key employees are eligible to receive common share-based incentive awards. Payouts, in the form of unrestricted common shares, vary based on the degree to which corporate financial performance exceeds predetermined threshold, target and maximum performance goals over three-year performance periods. No payout will occur unless threshold performance is achieved. The amount of compensation expense is based upon current performance projections for each three-year period and the percentage of the requisite service that has been rendered. The calculations are also based upon the grant date fair value determined using the closing market price of our common shares at the grant date, reduced by the implied value of dividends not to be paid. The per share values were $196.17 and $191.23 for 2021, $160.02, $133.01 and $184.04 for 2020. The amount charged to expense for the three months ended January 31, 2021 and 2020 was $4,755 and $1,421, respectively. The cumulative amount recorded in shareholders’ equity at January 31, 2021 was $4,592. Deferred Compensation Our executive officers and other highly compensated employees may elect to defer up to 100% of their base pay and cash incentive compensation, and for executive officers, up to 90% of their 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, 2021 and 2020 was $29 and $81, 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, 2021: Number of Shares Weighted-Average Outstanding at October 31, 2019 120 $ 60.81 Dividend equivalents — — Distributions (7) 81.32 Outstanding at January 31, 2021 113 $ 59.93 |
Warranties
Warranties | 3 Months Ended |
Jan. 31, 2021 | |
Guarantees [Abstract] | |
Warranties | Warranties We offer warranties to our customers depending on the specific product and terms of the customer purchase agreement. A typical warranty program requires that we repair or replace defective products within a specified time period (generally one year) 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 Condensed Consolidated Balance Sheets. Following is a reconciliation of the product warranty liability for the three months ended January 31, 2021 and 2020: January 31, 2021 January 31, 2020 Beginning balance at October 31 $ 10,550 $ 11,006 Accruals for warranties 3,870 2,954 Warranty payments (3,594) (2,551) Currency effect 259 8 Ending balance $ 11,085 $ 11,417 |
Operating Segments
Operating Segments | 3 Months Ended |
Jan. 31, 2021 | |
Segment Reporting [Abstract] | |
Operating Segments | Operating segments We conduct business across two primary operating segments: Industrial Precision Solutions (IPS) and Advanced Technology Solutions (ATS). 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 Condensed 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. Effective in the second quarter of 2020, we made changes to realign our management team and our operating segments, which are reflected in our disclosures. This realignment will enable us to better serve global customers and markets, to more efficiently leverage technology synergies, to operate divisions of significant size in a consistent and focused way and to position ourselves for our next chapter of profitable growth. The revised operating segments better reflect how we manage the Company, allocate resources, and assess performance of the businesses. We realigned our former three operating segments into two: Industrial Precision Solutions and Advanced Technology Solutions. Existing product lines were unchanged as part of this new structure. Industrial Precision Solutions: This segment delivers proprietary dispensing and processing technology to diverse end markets. Product lines reduce material consumption, increase line efficiency and enhance product brand and appearance. Components are used for dispensing adhesives, coatings, paint, finishes, sealants and other materials. This segment primarily serves the non-durables, industrial and consumer durables markets. Advanced Technology Solutions: This segment integrates our proprietary product technologies found in progressive stages of a customer’s production processes, such as surface treatment, precisely controlled dispensing of material and post-dispense test and inspection to ensure quality. Related single-use plastic molded syringes, cartridges, tips, fluid connection components, tubing, balloons and catheters are used to dispense or control fluids in production processes or within customers’ end products. This segment predominantly serves customers in the electronics, medical and related high-tech industrial markets. The following table presents information about our segments: Three Months Ended Industrial Advanced Corporate Total January 31, 2021 Net external sales $ 288,416 $ 238,150 $ — $ 526,566 Operating profit (loss) 83,403 47,201 (21,579) 109,025 January 31, 2020 Net external sales $ 263,799 $ 231,117 $ — $ 494,916 Operating profit (loss) 56,404 32,287 (13,598) 75,093 A reconciliation of total segment operating income to total consolidated income before income taxes is as follows: Three Months Ended January 31, 2021 January 31, 2020 Total profit for reportable segments $ 109,025 $ 75,093 Interest expense (6,932) (9,740) Interest and investment income 380 588 Other-net (4,661) (2,846) Income before income taxes $ 97,812 $ 63,095 We have significant sales in the following geographic regions: Three Months Ended January 31, 2021 January 31, 2020 United States $ 185,316 $ 188,500 Americas 36,138 31,083 Europe 135,151 126,391 Japan 27,115 27,552 Asia Pacific 142,846 121,390 Total net external sales $ 526,566 $ 494,916 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Jan. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair value measurements The inputs to the valuation techniques used to measure fair value are classified into the following categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. The following tables present the classification of our assets and liabilities measured at fair value on a recurring basis: January 31, 2021 Total Level 1 Level 2 Level 3 Assets: Foreign currency forward contracts (a) $ 8,255 $ — $ 8,255 $ — Total assets at fair value $ 8,255 $ — $ 8,255 $ — Liabilities: Deferred compensation plans (b) $ 13,708 $ — $ 13,708 $ — Foreign currency forward contracts (a) 2,150 — 2,150 — Total liabilities at fair value $ 15,858 $ — $ 15,858 $ — October 31, 2020 Total Level 1 Level 2 Level 3 Assets: Foreign currency forward contracts (a) $ 2,700 $ — $ 2,700 $ — Total assets at fair value $ 2,700 $ — $ 2,700 $ — Liabilities: Deferred compensation plans (b) $ 12,304 $ — $ 12,304 $ — Foreign currency forward contracts (a) 5,937 — 5,937 — Total liabilities at fair value $ 18,241 $ — $ 18,241 $ — (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. January 31, 2021 Carrying Fair Value Long-term debt (including current portion), excluding unamortized debt issuance costs 1,019,326 1,084,467 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, 2021 | |
Investments, All Other Investments [Abstract] | |
Derivative Financial Instruments | 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 Condensed Consolidated Statements of Income together with the transaction gain or loss from the related balance sheet position. For the three months ended January 31, 2021, we recognized a net gain of $9,342 on foreign currency forward contracts and a realized net loss of $12,102 from the change in fair value of balance sheet positions. For the three months ended January 31, 2020, we recognized a net loss of $431 on foreign currency forward contracts and a net gain of $431 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, 2021 and 2020: Notional Amounts January 31, 2021 contract amounts: Sell Buy Euro $ 122,414 $ 270,516 British pound 20,206 60,579 Japanese yen 25,011 42,370 Australian dollar 193 9,255 Hong Kong dollar 60,949 88,915 Singapore dollar 204 16,983 Others 9,649 81,018 Total $ 238,626 $ 569,636 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 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 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Jan. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-term debt A summary of long-term debt is as follows: January 31, 2021 October 31, 2020 Senior notes, due 2021-2025 $ 109,900 $ 109,900 Senior notes, due 2021-2027 85,714 85,714 Senior notes, due 2023-2030 350,000 350,000 Term loan, due 2024 155,000 255,000 Euro loan, due 2023 321,602 308,642 1,022,216 1,109,256 Less current maturities 38,043 38,043 Less unamortized debt issuance costs 2,889 3,261 Long-term maturities $ 981,284 $ 1,067,952 Revolving credit agreement — In April 2019, we entered into a $850,000 unsecured multi-currency credit facility with a group of banks, which amended, restated and extended our existing syndicated revolving credit agreement that was scheduled to expire in February 2020. This facility has a five-year term and includes a $75,000 subfacility for swing-line loans. It expires in April 2024. At January 31, 2021 and October 31, 2020, we had no balances outstanding under this facility. We were in compliance with all covenants at January 31, 2021, and the amount we could borrow under the facility would not have been limited by any debt covenants. Senior notes, due 2021-2025 — These unsecured fixed-rate notes entered into in 2012 with a group of insurance companies had a remaining weighted-average life of 2.08 years. The weighted-average interest rate at January 31, 2021 was 3.07 percent. Senior notes, due 2021-2027 — These unsecured fixed-rate notes entered into in 2015 with a group of insurance companies had a remaining weighted-average life of 3.66 years. The weighted-average interest rate at January 31, 2021 was 3.06 percent. Senior notes, due 2023-2030 — These unsecured fixed-rate notes entered into in 2018 with a group of insurance companies had a remaining weighted-average life of 4.79 years. The weighted-average interest rate at January 31, 2021 was 3.90 percent. Term loan, due 2024 — In April 2019, we amended, restated and extended the term of our existing $605,000 term loan facility with a group of banks. The interest rate is variable based upon the LIBOR rate. At January 31, 2021, $155,000 was outstanding under this facility. The term loan outstanding under this facility is due in March 2024. The weighted average interest rate for borrowings under this agreement was 0.93 percent at January 31, 2021. We were in compliance with all covenants at January 31, 2021. Euro loan, due 2023 — In March 2020 we amended, restated and extended the term of our existing term loan facility with Bank of America Merrill Lynch International Limited. The interest rate is variable based on the EURIBOR rate. The Term Loan Agreement provides for the following term loans due in two tranches: €115,000 is due in March 2023 and an additional €150,000 that was drawn down in March 2020 is due in March 2023. The weighted average interest rate at January 31, 2021 was 0.71% percent. We were in compliance with all covenants at January 31, 2021. |
Contingencies
Contingencies | 3 Months Ended |
Jan. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies We are involved in pending or potential litigation regarding environmental, product liability, patent, contract, employee and other matters arising from the normal course of business. Including the litigation and environmental matters discussed below, after consultation with legal counsel, we do not believe that losses in excess of the amounts we have accrued would have a material adverse effect on our financial condition, quarterly or annual operating results or cash flows. Class Action Litigation On February 22, 2019, a former employee, Mr. Ortiz, filed a purported class action lawsuit in the San Diego County Superior Court, California, against Nordson Asymtek, Inc. and Nordson Corporation, alleging various violations of the California Labor Code. Plaintiff seeks, among other things, an unspecified amount for unpaid wages, actual, consequential and incidental losses, penalties, and attorneys’ fees and costs . Following mediation in June 2020, the parties agreed to settle the lawsuit, subject to the execution of a written settlement agreement and court approval. If the settlement agreement is approved, the class action lawsuit will be resolved. Management believes, based on currently available information, that the ultimate outcome of the proceeding described above will not have a material adverse effect on the Company’s financial condition or results of operations. Environmental We have voluntarily agreed with the City of New Richmond, Wisconsin and other Potentially Responsible Parties to share costs associated with the remediation of the City of New Richmond municipal landfill (the “Site”) and the construction of a potable water delivery system serving the impacted area down gradient of the Site. At January 31, 2021 and October 31, 2020, our accrual for the ongoing operation, maintenance and monitoring obligation at the Site was $360. 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, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of presentation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended January 31, 2021 are not necessarily indicative of the results that may be expected for the full year. For further information, refer to the consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended October 31, 2020. |
Basis of Consolidation | Basis of consolidation. The consolidated financial statements include the accounts of Nordson Corporation and its majority-owned and controlled subsidiaries. Investments in affiliates and joint ventures in which our ownership is 50% or less or in which we do not have control but have the ability to exercise significant influence, are accounted for under the equity method. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of estimates . The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Actual amounts could differ from these 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 Condensed Consolidated Balance Sheets. Revenues deferred as of January 31, 2021 and 2020 were not material. However, for certain contracts related to the sale of customer-specific products within our Advanced Technology Solutions segment, revenue 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, 2021 and October 31, 2020. 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 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 and are generally not material. 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 our Operating Segments note. |
Earnings Per Share | Earnings per share . Basic earnings per share are computed based on the weighted-average number of common shares outstanding during each year, while diluted earnings per share are based on the weighted-average number of common shares and common share equivalents outstanding. Common share equivalents consist of shares issuable upon exercise of stock options computed using the treasury stock method, as well as restricted shares and deferred stock-based compensation. Options with an exercise price higher than the average market price are excluded from the calculation of diluted earnings per share because the effect would be anti-dilutive. Options excluded from the calculation of diluted earnings per share for the three months ended January 31, 2021 were 92. No options were excluded from the calculation of diluted earnings per share for the three months ended January 31, 2020. |
New accounting guidance adopted | New accounting guidance adopted: In June 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326),” which changed the impairment model for most financial instruments. Prior guidance required the recognition of credit losses based on an incurred loss impairment methodology that reflected losses once the losses are probable. We adopted the new standard on November 1, 2020 and are now applying a current expected credit loss model that requires recognizing an estimate of credit losses that are expected to occur over the life of the financial instruments that are in the scope of the update, including trade receivables. The standard requires judgment and consideration of historical information, current information, and reasonable and supportable forecasts, as well as the impact of any prepayments. In addition, we reviewed our business processes and controls to support the recognition and disclosure as required under the new standard. The adoption of this new standard did not have a material impact on our Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-15, “Intangibles – Goodwill and Other Internal-Use Software (Subtopic 350-40),” which is meant to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement (hosting arrangement), by providing guidance in determining when the arrangement includes a software license. We adopted the new standard on November 1, 2020. Hosted arrangements deemed to be in scope will follow the capitalization criteria for implementation costs as though they were internal-use computer software. There may be multiple elements besides the software license (such as: training, future upgrades, data conversion, and other elements) which require the allocation of the contract price to each of the elements; entities are to capitalize only those elements which meet the capitalization criteria. Capitalized implementation costs are amortized over the term of the hosted arrangement including consideration for renewal or termination options. In addition, we reviewed our business processes and controls to support the recognition and disclosure as required under the new standard. The adoption of this new standard did not have a material impact on our Consolidated Financial Statements. In August 2018, the FASB issued a new standard which removed, modified, and added certain disclosure requirements on fair value measurements. The guidance removed 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 clarified that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date. The guidance added disclosure requirements for changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period as well as the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. We adopted the new standard on November 1, 2020 with no material impact to the Consolidated Financial Statements. New accounting guidance issued and not yet adopted: In August 2018, the FASB issued 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 periodic 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 requirements surrounding the projected benefit obligation (PBO) and fair value of plan assets for plans with PBOs in excess of plan assets and the accumulated benefit obligation (ABO) and fair value of plan assets for plans with ABOs in excess of plan assets. 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 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 this standard will have on our Consolidated Financial Statements. |
Discontinued Operations and Dis
Discontinued Operations and Disposal Groups (Tables) | 3 Months Ended |
Jan. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | The assets and liabilities of the screws and barrels product line classified as held for sale at January 31, 2021 and October 31, 2020 were as follows: January 31, 2021 October 31, 2020 Receivables - net $ 9,883 $ 14,327 Inventories - net 11,399 9,854 Prepaid expenses and other current assets 1,424 696 Property, plant and equipment - net 59,260 58,950 Other assets 24,016 23,159 Impairment on carrying value (86,531) (87,371) Assets held for sale $ 19,451 $ 19,615 Accounts payable $ 5,010 $ 4,625 Accrued liabilities 4,315 3,352 Other liabilities 4,886 5,171 Liabilities held for sale $ 14,211 $ 13,148 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Jan. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | At January 31, 2021 and October 31, 2020, inventories consisted of the following: January 31, 2021 October 31, 2020 Finished goods $ 184,065 $ 183,860 Raw materials and component parts 100,496 94,630 Work-in-process 47,345 44,403 331,906 322,893 Obsolescence and other reserves (44,471) (41,315) LIFO reserve (4,995) (4,545) $ 282,440 $ 277,033 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 3 Months Ended |
Jan. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | At January 31, 2021 and October 31, 2020, property, plant and equipment consisted of the following: January 31, 2021 October 31, 2020 Land $ 8,883 $ 8,816 Land improvements 4,631 4,611 Buildings 256,886 253,621 Machinery and equipment 476,264 464,171 Enterprise management system 51,697 56,103 Construction-in-progress 32,391 29,897 Leased property under capitalized leases 34,283 32,590 865,035 849,809 Accumulated depreciation and amortization (506,365) (491,191) $ 358,670 $ 358,618 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Jan. 31, 2021 | |
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, 2021 by operating segment are as follows: Industrial Advanced Total Balance at October 31, 2020 $ 415,862 $ 1,297,492 $ 1,713,354 Currency effect 4,614 4,856 9,470 Balance at January 31, 2021 $ 420,476 $ 1,302,348 $ 1,722,824 |
Summary of Intangible Assets Subject to Amortization | Information regarding our intangible assets subject to amortization is as follows: January 31, 2021 Carrying Accumulated Net Book Customer relationships $ 487,336 $ 204,435 $ 282,901 Patent/technology costs 155,455 81,205 74,250 Trade name 74,737 36,250 38,487 Non-compete agreements 10,031 8,734 1,297 Other 1,404 1,404 — Total $ 728,963 $ 332,028 $ 396,935 October 31, 2020 Carrying Accumulated Net Book Customer relationships $ 483,568 $ 193,617 $ 289,951 Patent/technology costs 153,555 76,934 76,621 Trade name 74,240 34,693 39,547 Non-compete agreements 9,908 8,444 1,464 Other 1,403 1,400 3 Total $ 722,674 $ 315,088 $ 407,586 |
Pension and Other Postretirem_2
Pension and Other Postretirement Plans (Tables) | 3 Months Ended |
Jan. 31, 2021 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefits Cost | The components of net periodic pension cost for the three months ended January 31, 2021 and 2020 were: U.S. International Three Months Ended 2021 2020 2021 2020 Service cost $ 5,766 $ 5,057 $ 518 $ 571 Interest cost 3,340 3,918 220 262 Expected return on plan assets (6,753) (6,159) (391) (330) Amortization of prior service credit (20) (21) (77) (74) Amortization of net actuarial loss 3,574 3,398 790 734 Total benefit cost $ 5,907 $ 6,193 $ 1,060 $ 1,163 The components of other postretirement benefit cost for the three months ended January 31, 2021 and 2020 were: U.S. International Three Months Ended 2021 2020 2021 2020 Service cost $ 176 $ 190 $ 4 $ 4 Interest cost 454 614 3 3 Amortization of prior service credit — (4) — — Amortization of net actuarial (gain) loss 347 419 (10) (9) Total benefit cost $ 977 $ 1,219 $ (3) $ (2) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Jan. 31, 2021 | |
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 Balance at October 31, 2020 $ (40,422) $ (185,696) $ (226,118) Amortization of prior service costs and net actuarial losses, net of tax of ($930) — 2,997 2,997 Foreign currency translation adjustments 28,433 — 28,433 Balance at January 31, 2021 $ (11,989) $ (182,699) $ (194,688) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Jan. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summarized Activity Related to Stock Options | The following table summarizes activity related to stock options for the three months ended January 31, 2021: Number of Weighted- Aggregate Weighted Outstanding at October 31, 2020 1,487 $ 122.45 Granted 92 201.50 Exercised (64) 116.96 Forfeited or expired (6) 146.89 Outstanding at January 31, 2021 1,509 $ 127.40 $ 80,152 7.0 years Expected to vest 600 $ 156.03 $ 16,077 8.5 years Exercisable at January 31, 2021 902 $ 108.12 $ 63,938 5.9 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, 2021 January 31, 2020 Expected volatility 30.8% - 32.6% 24.5% - 25.4% Expected dividend yield 0.83% 0.93% - 1.16% Risk-free interest rate 0.43% - 0.54% 1.64% - 1.69% 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, 2021: Number of Shares Weighted-Average Restricted shares at October 31, 2020 58 $ 148.75 Granted — — Forfeited (1) 147.93 Vested (15) 139.70 Restricted shares units at January 31, 2021 42 $ 151.90 |
Summarized Activity Related to Restricted Stock Units | The following table summarizes activity related to restricted share units during the three months ended January 31, 2021: Number of Units Weighted-Average Restricted shares units at October 31, 2020 — $ — Granted 85 202.14 Forfeited (2) 198.68 Vested (1) 201.50 Restricted shares units at January 31, 2021 82 $ 202.26 |
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, 2021: Number of Shares Weighted-Average Outstanding at October 31, 2019 120 $ 60.81 Dividend equivalents — — Distributions (7) 81.32 Outstanding at January 31, 2021 113 $ 59.93 |
Warranties (Tables)
Warranties (Tables) | 3 Months Ended |
Jan. 31, 2021 | |
Guarantees [Abstract] | |
Reconciliation of Product Warranty Liability | Following is a reconciliation of the product warranty liability for the three months ended January 31, 2021 and 2020: January 31, 2021 January 31, 2020 Beginning balance at October 31 $ 10,550 $ 11,006 Accruals for warranties 3,870 2,954 Warranty payments (3,594) (2,551) Currency effect 259 8 Ending balance $ 11,085 $ 11,417 |
Operating Segments (Tables)
Operating Segments (Tables) | 3 Months Ended |
Jan. 31, 2021 | |
Segment Reporting [Abstract] | |
Segments | The following table presents information about our segments: Three Months Ended Industrial Advanced Corporate Total January 31, 2021 Net external sales $ 288,416 $ 238,150 $ — $ 526,566 Operating profit (loss) 83,403 47,201 (21,579) 109,025 January 31, 2020 Net external sales $ 263,799 $ 231,117 $ — $ 494,916 Operating profit (loss) 56,404 32,287 (13,598) 75,093 |
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, 2021 January 31, 2020 Total profit for reportable segments $ 109,025 $ 75,093 Interest expense (6,932) (9,740) Interest and investment income 380 588 Other-net (4,661) (2,846) Income before income taxes $ 97,812 $ 63,095 |
Sales and Long-lived Asset Information by Geographic Regions | We have significant sales in the following geographic regions: Three Months Ended January 31, 2021 January 31, 2020 United States $ 185,316 $ 188,500 Americas 36,138 31,083 Europe 135,151 126,391 Japan 27,115 27,552 Asia Pacific 142,846 121,390 Total net external sales $ 526,566 $ 494,916 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Jan. 31, 2021 | |
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, 2021 Total Level 1 Level 2 Level 3 Assets: Foreign currency forward contracts (a) $ 8,255 $ — $ 8,255 $ — Total assets at fair value $ 8,255 $ — $ 8,255 $ — Liabilities: Deferred compensation plans (b) $ 13,708 $ — $ 13,708 $ — Foreign currency forward contracts (a) 2,150 — 2,150 — Total liabilities at fair value $ 15,858 $ — $ 15,858 $ — October 31, 2020 Total Level 1 Level 2 Level 3 Assets: Foreign currency forward contracts (a) $ 2,700 $ — $ 2,700 $ — Total assets at fair value $ 2,700 $ — $ 2,700 $ — Liabilities: Deferred compensation plans (b) $ 12,304 $ — $ 12,304 $ — Foreign currency forward contracts (a) 5,937 — 5,937 — Total liabilities at fair value $ 18,241 $ — $ 18,241 $ — (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 |
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. January 31, 2021 Carrying Fair Value Long-term debt (including current portion), excluding unamortized debt issuance costs 1,019,326 1,084,467 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Jan. 31, 2021 | |
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, 2021 and 2020: Notional Amounts January 31, 2021 contract amounts: Sell Buy Euro $ 122,414 $ 270,516 British pound 20,206 60,579 Japanese yen 25,011 42,370 Australian dollar 193 9,255 Hong Kong dollar 60,949 88,915 Singapore dollar 204 16,983 Others 9,649 81,018 Total $ 238,626 $ 569,636 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 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Jan. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | A summary of long-term debt is as follows: January 31, 2021 October 31, 2020 Senior notes, due 2021-2025 $ 109,900 $ 109,900 Senior notes, due 2021-2027 85,714 85,714 Senior notes, due 2023-2030 350,000 350,000 Term loan, due 2024 155,000 255,000 Euro loan, due 2023 321,602 308,642 1,022,216 1,109,256 Less current maturities 38,043 38,043 Less unamortized debt issuance costs 2,889 3,261 Long-term maturities $ 981,284 $ 1,067,952 |
Significant Accounting Polici_3
Significant Accounting Policies - Additional Information (Detail) - shares | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Significant Accounting Policies [Line Items] | ||
Ownership percentage in affiliates and joint ventures | 50.00% | |
Stock Options | ||
Significant Accounting Policies [Line Items] | ||
Options for common shares excluded from computation of diluted earning per share | 92,000 | 0 |
Recently Issued Accounting St_2
Recently Issued Accounting Standards - Additional Information (Detail) | Aug. 31, 2018 |
New Accounting Guidance Issued and Not Yet Adopted | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Defined benefit plan effect of percentage change in assumed health care cost trend rates | 1.00% |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 01, 2020 | Jun. 01, 2020 | Jan. 31, 2021 | Oct. 31, 2020 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 1,722,824 | $ 1,713,354 | ||
Fluortek | ||||
Business Acquisition [Line Items] | ||||
Acquisition of businesses, net of cash acquired | $ 125,260 | |||
Cash acquired from business acquisition | $ 515 | |||
Fluortek | Acquisitions In Two Thousand Twenty Member | ||||
Business Acquisition [Line Items] | ||||
Acquired percent of the outstanding shares | 100.00% | |||
Property, plant and equipment and working capital, net | $ 19,843 | |||
Goodwill | 76,047 | |||
Identifiable intangible assets | 29,370 | |||
Fluortek | Customer relationships | Acquisitions In Two Thousand Twenty Member | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | $ 19,700 | |||
Intangible assets amortization period | 12 years | |||
Fluortek | Technology-Based Intangible Assets | Acquisitions In Two Thousand Twenty Member | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | $ 7,400 | |||
Intangible assets amortization period | 10 years | |||
Fluortek | Trade name | Acquisitions In Two Thousand Twenty Member | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | $ 1,500 | |||
Intangible assets amortization period | 10 years | |||
Fluortek | Non-compete agreements | Acquisitions In Two Thousand Twenty Member | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | $ 770 | |||
Intangible assets amortization period | 5 years | |||
vivaMOS Ltd. | Acquisitions In Two Thousand Twenty Member | ||||
Business Acquisition [Line Items] | ||||
Acquired percent of the outstanding shares | 100.00% | |||
Acquisition of businesses, net of cash acquired | $ 17,154 | |||
Cash acquired from business acquisition | 158 | |||
Goodwill | 14,394 | |||
Identifiable intangible assets | 4,040 | |||
vivaMOS Ltd. | Technology-Based Intangible Assets | Acquisitions In Two Thousand Twenty Member | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | $ 3,900 | |||
Intangible assets amortization period | 10 years | |||
vivaMOS Ltd. | Non-compete agreements | Acquisitions In Two Thousand Twenty Member | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | $ 140 | |||
Intangible assets amortization period | 3 years |
Discontinued Operations and D_2
Discontinued Operations and Disposal Groups - Asset and Liabilities of the Core Components product line classified as held for sale (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Oct. 31, 2020 |
Disposal Group, Including Discontinued Operation, Liabilities [Abstract] | ||
Liabilities held for sale | $ 14,211 | $ 13,148 |
Discontinued Operations, Held-for-sale [Member] | ||
Disposal Group, Including Discontinued Operation, Assets [Abstract] | ||
Receivables - net | 9,883 | 14,327 |
Inventories - net | 11,399 | 9,854 |
Prepaid expenses and other current assets | 1,424 | 696 |
Property, plant and equipment - net | 59,260 | 58,950 |
Other assets | 24,016 | 23,159 |
Impairment on carrying value | (86,531) | (87,371) |
Assets held for sale | 19,451 | 19,615 |
Disposal Group, Including Discontinued Operation, Liabilities [Abstract] | ||
Accounts payable | 5,010 | 4,625 |
Accrued liabilities | 4,315 | 3,352 |
Other liabilities | 4,886 | 5,171 |
Liabilities held for sale | $ 14,211 | $ 13,148 |
Discontinued Operations and D_3
Discontinued Operations and Disposal Groups - Additional Information (Details) $ in Thousands | 3 Months Ended |
Jan. 31, 2020USD ($) | |
Discontinued Operations and Disposal Groups [Abstract] | |
Impairment of Long-Lived Assets to be Disposed of | $ 87,371 |
Receivables (Details)
Receivables (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Jan. 31, 2021 | Oct. 31, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Adjustment to stockholders' equity from adoption of ASU | $ 1,857,183 | $ 1,758,991 | $ 1,634,274 | $ 1,581,045 |
Accounts receivable, after allowance for credit loss | 9,243 | 9,045 | ||
Provisions for losses on receivables | 103 | $ 388 | ||
Accounting Standards Update 2016-13 | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Provisions for losses on receivables | $ 396 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Detail) - USD ($) $ in Thousands | Jan. 31, 2021 | Oct. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 184,065 | $ 183,860 |
Raw materials and component parts | 100,496 | 94,630 |
Work-in-process | 47,345 | 44,403 |
Inventories - gross | 331,906 | 322,893 |
Obsolescence and other reserves | (44,471) | (41,315) |
LIFO reserve | (4,995) | (4,545) |
Inventories - net | $ 282,440 | $ 277,033 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Oct. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 865,035 | $ 849,809 | |
Accumulated depreciation and amortization | (506,365) | (491,191) | |
Property, plant and equipment - net | 358,670 | 358,618 | |
Depreciation | 12,940 | $ 12,445 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 8,883 | 8,816 | |
Land improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 4,631 | 4,611 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 256,886 | 253,621 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 476,264 | 464,171 | |
Enterprise management system | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 51,697 | 56,103 | |
Construction-in-progress | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 32,391 | 29,897 | |
Leased property under capitalized leases | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 34,283 | $ 32,590 |
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, 2021USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 1,713,354 |
Currency effect | 9,470 |
Ending balance | 1,722,824 |
Industrial Precision Solutions | |
Goodwill [Roll Forward] | |
Beginning balance | 415,862 |
Currency effect | 4,614 |
Ending balance | 420,476 |
Advanced Technology Solutions | |
Goodwill [Roll Forward] | |
Beginning balance | 1,297,492 |
Currency effect | 4,856 |
Ending balance | $ 1,302,348 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Summary of Intangible Assets Subject to Amortization (Detail) - USD ($) $ in Thousands | Jan. 31, 2021 | Oct. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Carrying Amount | $ 728,963 | $ 722,674 |
Accumulated Amortization | 332,028 | 315,088 |
Net Book Value | 396,935 | 407,586 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Carrying Amount | 487,336 | 483,568 |
Accumulated Amortization | 204,435 | 193,617 |
Net Book Value | 282,901 | 289,951 |
Patent/technology costs | ||
Finite-Lived Intangible Assets [Line Items] | ||
Carrying Amount | 155,455 | 153,555 |
Accumulated Amortization | 81,205 | 76,934 |
Net Book Value | 74,250 | 76,621 |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Carrying Amount | 74,737 | 74,240 |
Accumulated Amortization | 36,250 | 34,693 |
Net Book Value | 38,487 | 39,547 |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Carrying Amount | 10,031 | 9,908 |
Accumulated Amortization | 8,734 | 8,444 |
Net Book Value | 1,297 | 1,464 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Carrying Amount | 1,404 | 1,403 |
Accumulated Amortization | 1,404 | 1,400 |
Net Book Value | $ 0 | $ 3 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Intangible assets, amortization expense | $ 13,080 | $ 16,173 |
Pension and Other Postretirem_3
Pension and Other Postretirement Plans - Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Pension Plans | United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 5,766 | $ 5,057 |
Interest cost | 3,340 | 3,918 |
Expected return on plan assets | (6,753) | (6,159) |
Amortization of prior service credit | (20) | (21) |
Amortization of net actuarial loss | 3,574 | 3,398 |
Total benefit cost | 5,907 | 6,193 |
Pension Plans | International | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 518 | 571 |
Interest cost | 220 | 262 |
Expected return on plan assets | (391) | (330) |
Amortization of prior service credit | (77) | (74) |
Amortization of net actuarial loss | 790 | 734 |
Total benefit cost | 1,060 | 1,163 |
Postretirement Benefit Costs | United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 176 | 190 |
Interest cost | 454 | 614 |
Amortization of prior service credit | 0 | (4) |
Amortization of net actuarial loss | 347 | 419 |
Total benefit cost | 977 | 1,219 |
Postretirement Benefit Costs | International | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 4 | 4 |
Interest cost | 3 | 3 |
Amortization of prior service credit | 0 | 0 |
Amortization of net actuarial loss | (10) | (9) |
Total benefit cost | $ (3) | $ (2) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rates | 20.70% | 17.60% |
Income tax provision included discrete tax benefit due to share-based payment transactions | $ 799 | $ 2,537 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Summary of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss), Beginning balance | $ 1,758,991 | |
Amortization of prior service costs and net actuarial losses, net of tax of ($930) | 2,997 | $ 3,229 |
Foreign currency translation adjustments | 28,433 | 2,793 |
Accumulated other comprehensive loss, Ending balance | 1,857,183 | |
Amortization of prior service costs and net actuarial losses, tax | 930 | |
Cumulative translation adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss), Beginning balance | (40,422) | |
Amortization of prior service costs and net actuarial losses, net of tax of ($930) | 0 | |
Foreign currency translation adjustments | 28,433 | |
Accumulated other comprehensive loss, Ending balance | (11,989) | |
Pension and postretirement benefit plan adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss), Beginning balance | (185,696) | |
Amortization of prior service costs and net actuarial losses, net of tax of ($930) | 2,997 | |
Foreign currency translation adjustments | 0 | |
Accumulated other comprehensive loss, Ending balance | (182,699) | |
Accumulated Other Comprehensive Income (Loss) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss), Beginning balance | (226,118) | |
Foreign currency translation adjustments | 28,433 | $ 2,793 |
Accumulated other comprehensive loss, Ending balance | $ (194,688) |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
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% | |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Option expiring period | 10 years | |
Compensation expense recognized | $ 2,236 | $ 2,725 |
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 | |
Unrecognized compensation cost related to unvested stock option | $ 14,122 | |
Weighted average period expected to be amortized, non vested shares | 1 year 9 months 18 days | |
Weighted-average expected volatility used | 31.00% | 25.10% |
Weighted average grant date fair value of stock options granted | $ 56.05 | $ 37.82 |
Total intrinsic value of options exercised | $ 5,435 | $ 17,244 |
Cash received from the exercise of stock options | $ 7,438 | 16,379 |
Stock Options | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum rate of stock option | 25.00% | |
Restricted Shares and Restricted Share Units | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grant restricted shares transferred period | 1 year | |
Restricted Shares and Restricted Share Units | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grant restricted shares transferred period | 3 years | |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Normal retirement age | 65 years | |
Weighted average period expected to be amortized, non vested shares | 1 year 10 months 24 days | |
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 | $ 3,263 | |
Expense related to nonvested common shares | 964 | 1,573 |
Common share dividends amount included in compensation cost | $ 18 | 25 |
Restricted Stock Unit | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average period expected to be amortized, non vested shares | 1 year 6 months | |
Unrecognized compensation cost related to nonvested restricted stock | $ 14,526 | |
Expense related to nonvested common shares | $ 2,092 | 286 |
Performance Share Incentive Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award requisite service period | 3 years | |
Compensation expense | $ 1,421 | |
Compensation credited to expense | $ 4,755 | |
Cumulative amount recorded in shareholders' equity related to Long-Term Incentive Plan | $ 4,592 | |
Performance Share Incentive Awards | November 23, 2020 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average grant date fair value | $ 196.17 | |
Performance Share Incentive Awards | January 4, 2021 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average grant date fair value | $ 191.23 | |
Performance Share Incentive Awards | November 25, 2019 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average grant date fair value | $ 160.02 | |
Performance Share Incentive Awards | March 30, 2020 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average grant date fair value | 133.01 | |
Performance Share Incentive Awards | July 6, 2020 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average grant date fair value | $ 184.04 | |
Deferred Compensation | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common share dividends amount included in compensation cost | $ 29 | $ 81 |
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% | |
Deferred Compensation | Directors | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expense related to director deferred compensation | $ 62 | $ 44 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summarized Activity Related to Stock Options (Detail) - Stock Options $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended |
Jan. 31, 2021USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Beginning balance (in shares) | shares | 1,487 |
Granted (in shares) | shares | 92 |
Exercised (in shares) | shares | (64) |
Forfeited or expired (in shares) | shares | (6) |
Ending balance (in shares) | shares | 1,509 |
Expected to vest (in shares) | shares | 600 |
Exercisable (in shares) | shares | 902 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Beginning balance (in dollars per share) | $ / shares | $ 122.45 |
Granted (in dollars per share) | $ / shares | 201.50 |
Exercised (in dollars per share) | $ / shares | 116.96 |
Forfeited or expired (in dollars per share) | $ / shares | 146.89 |
Ending balance (in dollars per share) | $ / shares | 127.40 |
Expected to vest (in dollars per share) | $ / shares | 156.03 |
Exercisable (in dollars per share) | $ / shares | $ 108.12 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Aggregate Intrinsic Value, Outstanding | $ | $ 80,152 |
Aggregate Intrinsic Value, Expected to vest | $ | 16,077 |
Aggregate Intrinsic Value, Exercisable | $ | $ 63,938 |
Weighted Average Remaining Term, Outstanding | 7 years |
Weighted Average Remaining Term, Expected to vest | 8 years 6 months |
Weighted Average Remaining Term, Exercisable | 5 years 10 months 24 days |
Stock-Based Compensation - Fair
Stock-Based Compensation - Fair Value Assumptions of Stock Options (Detail) - Stock Options | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility, Minimum | 30.80% | 24.50% |
Expected volatility, Maximum | 32.60% | 25.40% |
Expected dividend yield | 0.83% | |
Risk-free interest rate, Minimum | 0.43% | 1.64% |
Risk-free interest rate, Maximum | 0.54% | 1.69% |
Minimum | ||
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 | ||
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 shares in Thousands | 3 Months Ended |
Jan. 31, 2021$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Beginning balance (in shares) | shares | 58 |
Granted (in shares) | shares | 0 |
Forfeited (in shares) | shares | (1) |
Vested (in shares) | shares | (15) |
Ending balance (in shares) | shares | 42 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Beginning balance (in dollars per share) | $ / shares | $ 148.75 |
Granted (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 147.93 |
Vested (in dollars per share) | $ / shares | 139.70 |
Ending balance (in dollars per share) | $ / shares | $ 151.90 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summarized Activity Related to Restricted Stock Units (Detail) - Restricted Stock Unit shares in Thousands | 3 Months Ended |
Jan. 31, 2021$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Beginning balance (in shares) | shares | 0 |
Granted (in shares) | shares | 85 |
Forfeited (in shares) | shares | (2) |
Vested (in shares) | shares | (1) |
Ending balance (in shares) | shares | 82 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Beginning balance (in dollars per share) | $ / shares | $ 0 |
Granted (in dollars per share) | $ / shares | 202.14 |
Forfeited (in dollars per share) | $ / shares | 198.68 |
Vested (in dollars per share) | $ / shares | 201.50 |
Ending balance (in dollars per share) | $ / shares | $ 202.26 |
Stock-Based Compensation - Su_4
Stock-Based Compensation - Summarized Activity Related to Director Deferred Compensation Shares (Detail) - Directors - Deferred Compensation Share Equivalent Units [Member] shares in Thousands | 3 Months Ended |
Jan. 31, 2021$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Outstanding, Beginning balance (in shares) | shares | 120 |
Dividend equivalents (in shares) | shares | 0 |
Dividend equivalents (in shares) | shares | (7) |
Outstanding, Ending balance (in shares) | shares | 113 |
Share Based Compensation Arrangement By Share Based Payment Award Vested Equity Instruments Other Than Options Weighted Average Grant Date Fair Value [Roll Forward] | |
Beginning balance (in dollars per share) | $ / shares | $ 60.81 |
Dividend equivalents (in dollars per share) | $ / shares | 0 |
Distributions (in dollars per share) | $ / shares | 81.32 |
Ending balance (in dollars per share) | $ / shares | $ 59.93 |
Warranties - Additional Informa
Warranties - Additional Information (Detail) | 3 Months Ended |
Jan. 31, 2021 | |
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, 2021 | Jan. 31, 2020 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||
Beginning balance at October 31 | $ 10,550 | $ 11,006 |
Accruals for warranties | 3,870 | 2,954 |
Warranty payments | (3,594) | (2,551) |
Currency effect | 259 | 8 |
Ending balance | $ 11,085 | $ 11,417 |
Operating Segments - Additional
Operating Segments - Additional Information (Detail) - Segment | 3 Months Ended | |
Jan. 31, 2021 | Apr. 30, 2020 | |
Segment Reporting [Abstract] | ||
Number of operating segments | 2 | 3 |
Operating Segments - Segments (
Operating Segments - Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Net external sales | $ 526,566 | $ 494,916 |
Operating profit (loss) | 109,025 | 75,093 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net external sales | 526,566 | 494,916 |
Operating profit (loss) | 109,025 | 75,093 |
Operating Segments | Industrial Precision Solutions | ||
Segment Reporting Information [Line Items] | ||
Net external sales | 288,416 | 263,799 |
Operating profit (loss) | 83,403 | 56,404 |
Operating Segments | Advanced Technology Solutions | ||
Segment Reporting Information [Line Items] | ||
Net external sales | 238,150 | 231,117 |
Operating profit (loss) | 47,201 | 32,287 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Operating profit (loss) | $ (21,579) | $ (13,598) |
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, 2021 | Jan. 31, 2020 | |
Segment Reporting [Abstract] | ||
Total profit for reportable segments | $ 109,025 | $ 75,093 |
Interest expense | (6,932) | (9,740) |
Interest and investment income | 380 | 588 |
Other - net | (4,661) | (2,846) |
Income before income taxes | $ 97,812 | $ 63,095 |
Operating Segments - Sales Info
Operating Segments - Sales Information by Geographic Regions (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Net external sales | ||
Net external sales | $ 526,566 | $ 494,916 |
United States | ||
Net external sales | ||
Net external sales | 185,316 | 188,500 |
Americas | ||
Net external sales | ||
Net external sales | 36,138 | 31,083 |
Europe | ||
Net external sales | ||
Net external sales | 135,151 | 126,391 |
Japan | ||
Net external sales | ||
Net external sales | 27,115 | 27,552 |
Asia Pacific | ||
Net external sales | ||
Net external sales | $ 142,846 | $ 121,390 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Recurring - USD ($) $ in Thousands | Jan. 31, 2021 | Oct. 31, 2020 | Jan. 31, 2020 |
Assets: | |||
Foreign currency forward contracts | $ 8,255 | $ 2,700 | |
Total assets at fair value | 8,255 | 2,700 | |
Liabilities: | |||
Deferred compensation plans | 13,708 | 12,304 | |
Foreign currency forward contracts | 2,150 | 5,937 | |
Total liabilities at fair value | 15,858 | 18,241 | |
Level 1 | |||
Assets: | |||
Foreign currency forward contracts | 0 | $ 0 | |
Total assets at fair value | 0 | 0 | |
Liabilities: | |||
Deferred compensation plans | 0 | 0 | |
Foreign currency forward contracts | 0 | 0 | |
Total liabilities at fair value | 0 | 0 | |
Level 2 | |||
Assets: | |||
Foreign currency forward contracts | 8,255 | 2,700 | |
Total assets at fair value | 8,255 | 2,700 | |
Liabilities: | |||
Deferred compensation plans | 13,708 | 12,304 | |
Foreign currency forward contracts | 2,150 | 5,937 | |
Total liabilities at fair value | 15,858 | $ 18,241 | |
Level 3 | |||
Assets: | |||
Foreign currency forward contracts | 0 | 0 | |
Total assets at fair value | 0 | 0 | |
Liabilities: | |||
Deferred compensation plans | 0 | 0 | |
Foreign currency forward contracts | 0 | 0 | |
Total liabilities at fair value | $ 0 | $ 0 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Footnotes) (Detail) | 3 Months Ended |
Jan. 31, 2021 | |
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, 2021USD ($) |
Schedule Of Carrying Amounts And Fair Values Of Financial Instruments [Abstract] | |
Long-term Debt | $ 1,019,326 |
Long-term debt (including current portion), excluding unamortized debt issuance costs, Fair Value | $ 1,084,467 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Maturity of foreign currency forward contracts | 90 days | |
Gains (losses) on foreign currency forward contracts | $ 9,342 | $ (431) |
Change in unrealized gain loss on foreign currency derivative instruments | $ (12,102) | $ 431 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Outstanding Currency, Forward Exchange Contracts (Detail) - Foreign Currency Forward Contracts - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 |
Sell | ||
Derivative [Line Items] | ||
Notional Amounts of foreign currency derivative contracts | $ 238,626 | $ 292,257 |
Buy | ||
Derivative [Line Items] | ||
Notional Amounts of foreign currency derivative contracts | 569,636 | 476,416 |
Euro | Sell | ||
Derivative [Line Items] | ||
Notional Amounts of foreign currency derivative contracts | 122,414 | 227,292 |
Euro | Buy | ||
Derivative [Line Items] | ||
Notional Amounts of foreign currency derivative contracts | 270,516 | 118,275 |
British pound | Sell | ||
Derivative [Line Items] | ||
Notional Amounts of foreign currency derivative contracts | 20,206 | 18,934 |
British pound | Buy | ||
Derivative [Line Items] | ||
Notional Amounts of foreign currency derivative contracts | 60,579 | 54,818 |
Japanese yen | Sell | ||
Derivative [Line Items] | ||
Notional Amounts of foreign currency derivative contracts | 25,011 | 37,429 |
Japanese yen | Buy | ||
Derivative [Line Items] | ||
Notional Amounts of foreign currency derivative contracts | 42,370 | 58,672 |
Australian dollar | Sell | ||
Derivative [Line Items] | ||
Notional Amounts of foreign currency derivative contracts | 193 | 345 |
Australian dollar | Buy | ||
Derivative [Line Items] | ||
Notional Amounts of foreign currency derivative contracts | 9,255 | 7,817 |
Hong Kong dollar | Sell | ||
Derivative [Line Items] | ||
Notional Amounts of foreign currency derivative contracts | 60,949 | 643 |
Hong Kong dollar | Buy | ||
Derivative [Line Items] | ||
Notional Amounts of foreign currency derivative contracts | 88,915 | 152,452 |
Singapore dollar | Sell | ||
Derivative [Line Items] | ||
Notional Amounts of foreign currency derivative contracts | 204 | 1,109 |
Singapore dollar | Buy | ||
Derivative [Line Items] | ||
Notional Amounts of foreign currency derivative contracts | 16,983 | 15,987 |
Others | Sell | ||
Derivative [Line Items] | ||
Notional Amounts of foreign currency derivative contracts | 9,649 | 6,505 |
Others | Buy | ||
Derivative [Line Items] | ||
Notional Amounts of foreign currency derivative contracts | $ 81,018 | $ 68,395 |
Long-Term Debt - Long-Term Debt
Long-Term Debt - Long-Term Debt (Detail) - USD ($) $ in Thousands | Jan. 31, 2021 | Oct. 31, 2020 |
Debt Instrument [Line Items] | ||
Long-term Debt | $ 1,022,216 | $ 1,109,256 |
Less current maturities | 38,043 | 38,043 |
Less unamortized debt issuance costs | 2,889 | 3,261 |
Long-term maturities | 981,284 | 1,067,952 |
Senior notes, due 2021-2025 | ||
Debt Instrument [Line Items] | ||
Senior notes | 109,900 | 109,900 |
Senior notes, due 2021-2027 | ||
Debt Instrument [Line Items] | ||
Senior notes | 85,714 | 85,714 |
Senior notes, due 2023-2030 | ||
Debt Instrument [Line Items] | ||
Senior notes | 350,000 | 350,000 |
Term loan, due 2024 | ||
Debt Instrument [Line Items] | ||
Term loan | 155,000 | 255,000 |
Euro loan, due 2023 | ||
Debt Instrument [Line Items] | ||
Euro loan | $ 321,602 | $ 308,642 |
Long-term Debt - Additional Inf
Long-term Debt - Additional Information (Detail) € in Thousands | 1 Months Ended | 3 Months Ended | ||
Apr. 30, 2019USD ($) | Jan. 31, 2021USD ($) | Oct. 31, 2020USD ($) | Mar. 31, 2020EUR (€) | |
Revolving Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Revolving credit facility | $ 850,000,000 | |||
Credit facility, term | 5 years | |||
Revolving Credit Agreement | Swing Line Loans | ||||
Debt Instrument [Line Items] | ||||
Revolving credit facility | $ 75,000,000 | |||
Senior notes, due 2021-2025 | ||||
Debt Instrument [Line Items] | ||||
Weighted average interest rate for borrowings | 3.07% | |||
Outstanding balance | $ 109,900,000 | $ 109,900,000 | ||
Remaining Weighted Average Life Of Notes | 2 years 29 days | |||
Senior notes, due 2021-2027 | ||||
Debt Instrument [Line Items] | ||||
Weighted average interest rate for borrowings | 3.06% | |||
Outstanding balance | $ 85,714,000 | 85,714,000 | ||
Remaining Weighted Average Life Of Notes | 3 years 7 months 28 days | |||
Senior notes, due 2023-2030 | ||||
Debt Instrument [Line Items] | ||||
Weighted average interest rate for borrowings | 3.90% | |||
Outstanding balance | $ 350,000,000 | 350,000,000 | ||
Remaining Weighted Average Life Of Notes | 4 years 9 months 14 days | |||
Term loan, due 2024 | ||||
Debt Instrument [Line Items] | ||||
Term loan | $ 155,000,000 | 255,000,000 | ||
Term loan, due 2024 | Group of Banks | ||||
Debt Instrument [Line Items] | ||||
Term loan | $ 605,000,000 | |||
Weighted average interest rate for borrowings | 0.93% | |||
Euro loan, due 2023 | ||||
Debt Instrument [Line Items] | ||||
Euro loan | $ 321,602,000 | $ 308,642,000 | ||
Euro loan, due 2023 | Bank of America | ||||
Debt Instrument [Line Items] | ||||
Weighted average interest rate for borrowings | 0.71% | |||
Euro loan, due 2023 | Bank of America | Tranches One | ||||
Debt Instrument [Line Items] | ||||
Term loan | € | € 115,000 | |||
Euro loan, due 2023 | Bank of America | Tranches Two | ||||
Debt Instrument [Line Items] | ||||
Term loan | € | € 150,000 |
Contingencies - Additional Info
Contingencies - Additional Information (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Oct. 31, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
Accrual for environmental liability | $ 360 | $ 360 |