Business Segment Information

12 Months Ended

Oct. 31, 2017

Segment Reporting [Abstract]

Business Segment Information

Business Segment Information

Cooper uses operating income, as presented in our financial reports, as the primary measure of segment profitability. We do not allocate costs from corporate functions to segment operating income. Items below operating income are not considered when measuring the profitability of a segment. We use the same accounting policies to generate segment results as we do for our consolidated results.

Total net sales include sales to customers as reported in our Consolidated Statements of Income and sales between geographic areas that are priced at terms that allow for a reasonable profit for the seller. Operating income (loss) is total net sales less cost of sales, selling, general and administrative expenses, research and development expenses, and amortization of intangible assets. Corporate operating loss is principally corporate headquarters expense. Interest expense, loss on extinguishment of debt and other income and expenses are not allocated to individual segments.

One customer, a CooperVision contact lens distributor, accounted for approximately 11% of our consolidated net revenue in both the fiscal year ended October 31, 2017 and October 31, 2016. No customers accounted for 10% or more of our consolidated net revenue in the fiscal year ended October 31, 2015.

Identifiable assets are those used in continuing operations except cash and cash equivalents, which we include as corporate assets. Long-lived assets are property, plant and equipment.

The following table presents a summary of our business segment net sales:

(In millions)	2017		2016		2015
CooperVision net sales by category:
Toric lens	$	526.8	$	480.2	$	440.1
Multifocal lens	177.2		169.8		162.1
Single-use sphere lens	438.3		403.1		357.2
Non single-use sphere and other	531.8		524.1		528.4
Total CooperVision net sales	1,674.1		1,577.2		1,487.8
CooperSurgical net sales	464.9		389.6		309.3
Total net sales	$	2,139.0	$	1,966.8	$	1,797.1

Information by business segment for each of the years in the three-year period ended October 31, 2017, follows:

(In millions)	CooperVision		CooperSurgical		Corporate			Consolidated
2017
Net sales	$	1,674.1	$	464.9	$	—		$	2,139.0
Operating income (loss)	$	418.4	$	58.5	$	(47.8	)	$	429.1
Interest expense								33.4
Other expense, net								1.7
Income before income taxes								$	394.0
Identifiable assets	$	3,562.6	$	1,107.5	$	188.6		$	4,858.7
Depreciation expense	$	115.0	$	4.7	$	0.3		$	120.0
Amortization expense	$	36.7	$	31.7	$	—		$	68.4
Capital expenditures	$	108.2	$	18.9	$	0.1		$	127.2
2016
Net sales	$	1,577.2	$	389.6	$	—		$	1,966.8
Operating income (loss)	$	309.8	$	60.2	$	(45.9	)	$	324.1
Interest expense								26.2
Other expense, net								2.3
Income before income taxes								$	295.6
Identifiable assets	$	3,382.4	$	907.1	$	189.1		$	4,478.6
Depreciation expense	$	131.3	$	5.9	$	0.3		$	137.5
Amortization expense	$	40.1	$	20.7	$	—		$	60.8
Capital expenditures	$	142.8	$	9.8	$	—		$	152.6
2015
Net sales	$	1,487.8	$	309.3	$	—		$	1,797.1
Operating income (loss)	$	229.8	$	56.1	$	(49.2	)	$	236.7
Interest expense								18.1
Other expense, net								3.1
Income before income taxes								$	215.5
Identifiable assets	$	3,714.6	$	674.9	$	73.0		$	4,462.5
Depreciation expense	$	134.0	$	5.6	$	0.3		$	139.9
Amortization expense	$	36.6	$	14.9	$	—		$	51.5
Capital expenditures	$	238.3	$	4.6	$	0.1		$	243.0

Information by geographical area by country of domicile for each of the years in the three-year period ended October 31, 2017, follows:

(In millions)	United States		Europe			Rest of World, Other Eliminations & Corporate			Consolidated
2017
Sales to unaffiliated customers	$	931.1	$	746.2		$	461.7		$	2,139.0
Sales between geographic areas	255.7		440.5			(696.2		)	—
Net sales	$	1,186.8	$	1,186.7		$	(234.5	)	$	2,139.0
Operating income	$	37.8	$	1.6		$	389.7		$	429.1
Long-lived assets	$	472.8	$	352.3		$	85.0		$	910.1
2016
Sales to unaffiliated customers	$	886.5	$	681.1		$	399.2		$	1,966.8
Sales between geographic areas	254.7		464.1			(718.8		)	—
Net sales	$	1,141.2	$	1,145.2		$	(319.6	)	$	1,966.8
Operating income	$	77.7	$	6.0		$	240.4		$	324.1
Long-lived assets	$	464.1	$	334.4		$	79.2		$	877.7
2015
Sales to unaffiliated customers	$	811.9	$	647.3		$	337.9		$	1,797.1
Sales between geographic areas	250.0		493.1			(743.1		)	—
Net sales	$	1,061.9	$	1,140.4		$	(405.2	)	$	1,797.1
Operating income (loss)	$	30.7	$	(37.6	)	$	243.6		$	236.7
Long-lived assets	$	494.2	$	407.9		$	65.0		$	967.1