Business Segment Information

12 Months Ended

Oct. 31, 2020

Segment Reporting [Abstract]

Business Segment Information

Business Segment Information

The Company discloses information about its operating segments, which were established based on the way that management organizes segments within the Company for making operating decisions and assessing financial performance. The Company's two operating segments are described below.

• CooperVision. Competes in the worldwide contact lens market by developing, manufacturing and marketing a broad range of products for contact lens wearers, featuring advanced materials and optics. CooperVision designs its products to solve vision challenges such as astigmatism, presbyopia, myopia, ocular dryness and eye fatigues, with a broad collection of spherical, toric and multifocal contact lenses.

• CooperSurgical. Competes in the general health care market with a focus on advancing the health of women, babies and families through a diversified portfolio of products and services focusing on women's health and fertility.

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, amortization and intangible impairments. Corporate operating loss is principally corporate headquarters expense. Interest expense, and other income and expenses are not allocated to individual segments.

No customers accounted for 10% or more of our consolidated net revenue in the fiscal 2020, 2019 and 2018.

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

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

(In millions)	2020		2019		2018
CooperVision net sales by category:
Toric lens	$	598.2	$	620.0	$	591.4
Multifocal lens	197.0		202.9		196.6
Single-use sphere lens	529.0		568.2		520.1
Non single-use sphere, other	518.8		581.8		573.9
Total CooperVision net sales	1,843.0		1,972.9		1,882.0
CooperSurgical net sales by category:
Office and surgical products	358.8		422.4		400.4
Fertility	229.1		258.1		250.4
Total CooperSurgical net sales	587.9		680.5		650.8
Total net sales	$	2,430.9	$	2,653.4	$	2,532.8

Information by business segment for each of the years in the three-year period ended October 31, 2020, follows:

(In millions)	CooperVision		CooperSurgical			Corporate			Consolidated
2020
Net sales	$	1,843.0	$	587.9		$	—		$	2,430.9
Operating income (loss)	$	375.7	$	(14.7	)	$	(49.2	)	$	311.8
Interest expense									36.8
Other expense, net									8.5
Income before income taxes									$	266.5
Identifiable assets	$	4,236.3	$	2,293.8		$	207.4		$	6,737.5
Depreciation expense	$	138.2	$	11.7		$	—		$	149.9
Amortization expense	$	32.4	$	104.8		$	—		$	137.2
Capital expenditures	$	260.3	$	50.1		$	—		$	310.4
2019
Net sales	$	1,972.9	$	680.5		$	—		$	2,653.4
Operating income (loss)	$	506.4	$	87.9		$	(47.6	)	$	546.7
Interest expense									68.0
Other (income), net									1.3
Income before income taxes									$	477.4
Identifiable assets	$	3,911.6	$	2,189.8		$	173.1		$	6,274.5
Depreciation expense	$	125.8	$	9.0		$	0.2		$	135.0
Amortization expense	$	40.9	$	104.9		$	—		$	145.8
Capital expenditures	$	259.0	$	33.1		$	—		$	292.1
2018
Net sales	$	1,882.0	$	650.8		$	—		$	2,532.8
Operating income (loss)	$	479.8	$	(19.9	)	$	(56.8	)	$	403.1
Interest expense									82.7
Other expense, net									(11.5		)
Income before income taxes									$	331.9
Identifiable assets	$	3,746.0	$	2,201.7		$	165.1		$	6,112.8
Depreciation expense	$	120.1	$	8.1		$	0.2		$	128.4
Amortization expense	$	43.6	$	103.1		$	—		$	146.7
Capital expenditures	$	178.4	$	15.1		$	0.1		$	193.6

Information by geographical area by country of domicile for each of the years in the three-year period ended October 31, 2020, follows:

 

(In millions)	United States			Europe			Rest of World, Other Eliminations & Corporate			Consolidated
2020
Net sales to unaffiliated customers	$	1,103.6		$	789.8		$	537.5		$	2,430.9
Sales between geographic areas	391.7			327.1			(718.8		)	—
Net sales	$	1,495.3		$	1,116.9		$	(181.3	)	$	2,430.9
Operating income (loss)	$	(14.5	)	$	21.9		$	304.4		$	311.8
Long-lived assets	$	721.3		$	363.0		$	197.6		$	1,281.9
2019
Sales to unaffiliated customers	$	1,211.8		$	854.8		$	586.8		$	2,653.4
Sales between geographic areas	650.7			300.8			(951.5		)	—
Net sales	$	1,862.5		$	1,155.6		$	(364.7	)	$	2,653.4
Operating income (loss)	$	83.2		$	29.3		$	434.2		$	546.7
Long-lived assets	$	626.5		$	358.8		$	146.8		$	1,132.1
2018
Sales to unaffiliated customers	$	1,162.2		$	846.5		$	524.1		$	2,532.8
Sales between geographic areas	274.3			407.1			(681.4		)	—
Net sales	$	1,436.5		$	1,253.6		$	(157.3	)	$	2,532.8
Operating income	$	(39.3	)	$	(16.8	)	$	459.2		$	403.1
Long-lived assets	$	516.7		$	340.7		$	118.6		$	976.0