10-Q

FORM 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended January 31, 2019

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number   0-7977

NORDSON CORPORATION

(Exact name of registrant as specified in its charter)

Ohio	34-0590250
(State of incorporation)	(I.R.S. Employer Identification No.)
28601 Clemens Road Westlake, Ohio	44145
(Address of principal executive offices)	(Zip Code)

(440) 892-1580

(Telephone Number)

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months, and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒No  ☐

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files).    Yes  ☒No  ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.:

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act  ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐No  ☒

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date:  Common Shares, without par value as of January 31, 2019:  57,325,161

Nordson Corporation

Table of Contents

Part I – FINANCIAL INFORMATION	3
ITEM 1.  FINANCIAL STATEMENTS (UNAUDITED)	3
Condensed Consolidated Statementsof Income	3
Condensed Consolidated Statementsof Comprehensive Income	4
Condensed Consolidated Balance Sheets	5
Condensed Consolidated Statements of Cash Flows	6
Notes to Condensed Consolidated Financial Statements	7
ITEM 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	19
Critical Accounting Policies and Estimates	19
Results of Operations	19
Financial Condition	21
ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	23
ITEM 4.  CONTROLS AND PROCEDURES	24
Part II – OTHER INFORMATION	25
ITEM 1.  LEGAL PROCEEDINGS	25
ITEM 1A.  RISK FACTORS	25
ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	25
ITEM 6.  EXHIBITS	26
SIGNATURE	27

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Nordson Corporation

Part I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)

Condensed Consolidated Statements of Income

	Three Months Ended
	January 31, 2019			January 31, 2018
(In thousands, except for per share data)
Sales	$	497,910		$	550,424
Operating costs and expenses:
Cost of sales		228,934			249,451
Selling and administrative expenses		184,695			181,623
		413,629			431,074
Operating profit		84,281			119,350
Other income (expense):
Interest expense		(12,365	)		(11,317	)
Interest and investment income		316			289
Other - net		(4,189	)		(4,804	)
		(16,238	)		(15,832	)
Income before income taxes		68,043			103,518
Income taxes		19,476			(1,037	)
Net income	$	48,567		$	104,555
Average common shares		57,702			57,755
Incremental common shares attributable to outstanding    stock options, restricted stock, and deferred stock-based    compensation		670			1,119
Average common shares and common share equivalents		58,372			58,874
Basic earnings per share	$	0.84		$	1.81
Diluted earnings per share	$	0.83		$	1.78
Dividends declared per share	$	0.35		$	0.30

See accompanying notes.

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Condensed Consolidated Statements of Comprehensive Income

	Three Months Ended
	January 31, 2019		January 31, 2018
(In thousands)
Net income	$	48,567	$	104,555
Components of other comprehensive income:
Foreign currency translation adjustments		16,463		38,582
Amortization of prior service cost and net actuarial    losses, net of tax		1,352		1,509
Total other comprehensive income		17,815		40,091
Total comprehensive income	$	66,382	$	144,646

See accompanying notes.

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Nordson Corporation

Condensed Consolidated Balance Sheets

	January 31, 2019			October 31, 2018
(In thousands)
Assets
Current assets:
Cash and cash equivalents	$	85,546		$	95,678
Receivables - net		463,228			491,423
Inventories - net		271,156			264,477
Prepaid expenses and other current assets		47,271			32,524
Total current assets		867,201			884,102
Property, plant and equipment - net		387,719			386,666
Goodwill		1,611,354			1,608,018
Intangible assets - net		486,342			499,741
Deferred income taxes		11,131			9,780
Other assets		34,000			32,705
Total assets	$	3,397,747		$	3,421,012
Liabilities and shareholders' equity
Current liabilities:
Accounts payable	$	81,014		$	83,590
Income taxes payable		15,144			19,319
Accrued liabilities		126,913			175,085
Customer advanced payments		43,018			38,997
Current maturities of long-term debt		53,734			28,734
Current obligations under capital leases		4,674			4,555
Total current liabilities		324,497			350,280
Long-term debt		1,331,392			1,285,357
Deferred income taxes		103,088			100,704
Pension obligations		111,360			113,222
Postretirement obligations		70,547			70,154
Other long-term liabilities		55,322			50,554
Shareholders' equity:
Common shares		12,253			12,253
Capital in excess of stated value		451,930			446,555
Retained earnings		2,521,061			2,488,375
Accumulated other comprehensive loss		(161,499	)		(179,314	)
Common shares in treasury, at cost		(1,422,204	)		(1,317,128	)
Total shareholders' equity		1,401,541			1,450,741
Total liabilities and shareholders' equity	$	3,397,747		$	3,421,012

See accompanying notes.

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Nordson Corporation

Condensed Consolidated Statements of Cash Flows

Three months ended	January 31, 2019			January 31, 2018
(In thousands)
Cash flows from operating activities:
Net income	$	48,567		$	104,555
Depreciation and amortization		27,748			26,285
Non-cash stock compensation		4,359			6,987
Deferred income taxes		(483	)		(45,426	)
Other non-cash expense		989			(202	)
Loss on sale of property, plant and equipment		1,475			748
Changes in operating assets and liabilities		(25,808	)		16,331
Net cash provided by operating activities		56,847			109,278
Cash flows from investing activities:
Additions to property, plant and equipment		(14,121	)		(16,681	)
Proceeds from sale of property, plant and equipment		260			68
Acquisition of businesses, net of cash acquired		(14	)		(43,284	)
Net cash used in investing activities		(13,875	)		(59,897	)
Cash flows from financing activities:
Proceeds from short-term borrowings		—			996
Repayment of short-term borrowings		—			(1,006	)
Proceeds from long-term debt		70,489			32,981
Repayment of long-term debt		(34	)		(31,355	)
Repayment of capital lease obligations		(1,481	)		(1,415	)
Issuance of common shares		3,606			10,306
Purchase of treasury shares		(107,667	)		(4,989	)
Dividends paid		(20,210	)		(17,321	)
Net cash used in financing activities		(55,297	)		(11,803	)
Effect of exchange rate changes on cash		2,193			4,881
Increase (decrease) in cash and cash equivalents		(10,132	)		42,459
Cash and cash equivalents:
Beginning of year		95,678			90,383
End of period	$	85,546		$	132,842

See accompanying notes.

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Nordson Corporation

Notes to Condensed Consolidated Financial Statements

January 31, 2019

NOTE REGARDING AMOUNTS AND FISCAL YEAR REFERENCES

In this quarterly report, all amounts related to United States dollars and foreign currency and to the number of Nordson Corporation’s common shares, except for per share earnings and dividend amounts, are expressed in thousands.

Unless otherwise noted, all references to years relate to our fiscal year ending October 31.

1. 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 footnotes 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, 2019 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 footnotes included in our Annual Report on Form 10-K for the year ended October 31, 2018. Certain reclassifications have been made to the prior year financial statements to conform to current year classifications.

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.

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, 2019 were 704. No options were excluded from the calculation of diluted earnings per share for the three months ended January 31, 2018.

2. Revenue recognition

Adoption of new accounting standard:

On November 1, 2018, we adopted ASU 2014-09 (“Topic 606”) using the modified retrospective method applied to those contracts which were not completed as of November 1, 2018. Results for reporting periods beginning after November 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting. The cumulative impact of adopting Topic 606 as of November 1, 2018 did not have a material impact to the Consolidated Financial Statements. The Company does not expect the impact of the adoption of Topic 606 to be material to the Consolidated Financial Statements on an ongoing basis.

Accounting policy:

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 continues to primarily be recognized as of a point in time when the product is shipped or at a later point when the control of the product transfers to the customer. Revenue for undelivered items is deferred and included within Accrued liabilities in our Consolidated Balance Sheets. Revenues deferred in 2019 and 2018 were not material.

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However, for certain contracts related to the sale of customer-specific product within our Advanced Technology Systems segment, there was a change in revenue recognition upon adoption of the new revenue standard. Previously, these contracts were recognized at the point in time when the shipping terms were satisfied.  Under the new revenue standard, we now recognize revenue for these contracts 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 November 1, 2018 and January 31, 2019.  Revenue recognized over time is not material to our overall Consolidated Financial Statements.

Revenue is measured as the amount of consideration we expect to receive in exchange for transferring products or services.  Sales, value add, and other taxes we collect concurrently with revenue-producing activities are excluded from revenue.  As a practical expedient, we may exclude the assessment of whether goods or services are performance obligations, if they are immaterial in the context of the contract, and combine these with other performance obligations.  While payment terms and conditions vary by contract type, we have determined that our contracts generally do not include a significant financing component.  We have elected to apply the practical expedient to treat all shipping and handling costs as fulfillment costs as a significant portion of these costs are incurred prior to transfer of control to the customer.  We have also elected to apply the practical expedient to expense sales commissions as they are incurred as the amortization period resulting from capitalizing the costs is one year or less. These costs are recorded within Selling, general and administrative expenses in our Consolidated Statements of Income.

We offer assurance type warranties on our products as well as separately sold warranty contracts.  Revenue related to warranty contracts that are sold separately is recognized over the life of the warranty term. See Note 11 for details on our warranties.

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, 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.  See Note 12 for details on our operating segments.    

3. Recently issued accounting standards

New accounting guidance adopted:

In May 2014, the Financial Accounting Standards Board (“FASB”) issued a new standard regarding revenue recognition.    Under this standard, a company recognizes revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The standard implements a five-step process for customer contract revenue recognition that focuses on transfer of control.  We adopted the standard beginning November 1, 2018 using the modified retrospective method. The modified retrospective method requires a cumulative effect adjustment to be applied retrospectively to all open contracts.  We recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings.  We determined the cumulative effect adjustment did not have a material impact on our Consolidated Financial Statements.  The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. Refer to Note 2 for further details.

In March 2017, the FASB issued a new standard which requires the presentation of the service cost component of the net periodic benefit cost in the same income statement line item as other employee compensation costs arising from services rendered during the period. All other components of net periodic benefit cost will be presented below operating income. Additionally, only the service cost component will be eligible for capitalization in assets.  We adopted the standard beginning November 1, 2018.  The reclassification resulted in an increase in Other expense of $1,627 as a result of an increase in Cost of goods sold of $30 and a decrease in Selling, general & administrative expenses of $1,657 for the three months ended January 31, 2018.

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New accounting guidance issued and not yet adopted:

In February 2016, the FASB issued a new standard which requires a lessee to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases with a lease term of more than twelve months. Leases will continue to be classified as either financing or operating, with classification affecting the recognition, measurement and presentation of expenses and cash flows arising from a lease. It will be effective for us beginning November 1, 2019. Early adoption is permitted. We are currently assessing the impact this standard will have on our Consolidated Financial Statements.

In August 2018, the FASB issued a new standard which removes, modifies, and adds certain disclosure requirements on fair value measurements.  The guidance removes disclosure requirements pertaining to the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels, and the valuation processes for Level 3 fair value measurements. For investments in certain entities that calculate net asset value, an entity is required to disclose the timing of liquidation of an investee’s assets and the date when restrictions from redemption might lapse only if the investee has communicated the timing to the entity or announced the timing publicly.  In addition, the amendment clarifies that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date. The guidance adds disclosure requirements for changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period as well as the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements.  It will be effective for us beginning November 1, 2020.  Early adoption is permitted.  We are currently assessing the impact this standard will have on our Consolidated Financial Statements.

In August 2018, the FASB issued a new standard which addresses defined benefit plans.  The amendments modify the following disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans: the amounts in accumulated other comprehensive income expected to be recognized as components of net period benefit cost over the next fiscal year, amount and timing of plan assets expected to be returned to the employer, related party disclosure about the amount of future annual benefits covered by insurance and annuity contracts and significant transactions between the employer or related parties and the plan, and the effects of a one-percentage point change in assumed health care cost trend rates on the (a) aggregate of the service and interest cost components of net periodic benefit costs and (b) benefit obligation for postretirement health care benefits are removed.  A disclosure requirement was added for the explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period.  Additionally, the standard clarifies disclosure requirement surrounding the projected benefit obligation (PBO) and fair value of plan assets for plans with PBOs in excess of plan assets and the accumulated benefit obligation (ABO) and fair value of plan assets for plans with ABOs in excess of plan assets.  It will be effective for us beginning November 1, 2020.  Early adoption is permitted.  We are currently assessing the impact this standard will have on our Consolidated Financial Statements.

4. Acquisitions

Business acquisitions have been accounted for using the acquisition method, with the acquired assets and liabilities recorded at estimated fair value on the dates of acquisition. The cost in excess of the net assets of the business acquired is included in goodwill. Operating results since the respective dates of acquisitions are included in the Consolidated Statements of Income.

2018 acquisitions

On October 17, 2018, we purchased 100 percent of the outstanding shares of Cladach Nua Teoranta (“Clada”), a Galway, Ireland designer and developer primarily focused on medical balloons and balloon catheters. Clada’s technologies are used in key applications such as angioplasty and the treatment of vascular disease. We acquired Clada for an aggregate purchase price of $5,236, which included an earn-out liability of $1,131. Based on the fair value of the assets acquired and the liabilities assumed, goodwill of $3,776 and identifiable intangible assets of $697 were recorded. The identifiable intangible assets consist primarily of $58 of customer relationships (amortized over 6 years), $70 of tradenames (amortized over 9 years), $499 of technology (amortized over 7 years) and $70 of non-compete agreements (amortized over 3 years). Goodwill associated with this acquisition is not tax deductible. This acquisition is being reported in our Advanced Technology Systems segment. As of January 31, 2019, the purchase price allocations remain preliminary as we complete our assessments of income taxes and certain reserves.

On January 2, 2018, we purchased 100 percent of the outstanding shares of Sonoscan, Inc. (“Sonoscan”), an Elk Grove Village, Illinois leading designer and manufacturer of acoustic microscopes and sophisticated acoustic micro imaging systems used in a variety of microelectronic, automotive, aerospace and industrial electronic assembly applications. We acquired Sonoscan for an aggregate purchase price of $46,018, net of $655 of cash. Based on the fair value of the assets acquired and the liabilities assumed, goodwill of $22,775 and identifiable intangible assets of $7,910 were recorded. The identifiable intangible assets consist primarily of $1,700 of customer relationships (amortized over 7 years), $3,300 of tradenames (amortized over 11 years),

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$2,500 of technology (amortized over 7 years) and $410 of non-compete agreements (amortized over 5 years). Goodwill associated with this acquisition is tax deductible. This acquisition is being reported in our Advanced Technology Systems segment. As of January 31, 2019, the purchase price allocations are complete.

5. Inventories

At January 31, 2019 and October 31, 2018, inventories consisted of the following:

	January 31, 2019			October 31, 2018
Raw materials and component parts	$	99,192		$	112,823
Work-in-process		44,075			47,126
Finished goods		174,596			148,618
		317,863			308,567
Obsolescence and other reserves		(39,771	)		(37,545	)
LIFO reserve		(6,936	)		(6,545	)
	$	271,156		$	264,477

6. Goodwill and other intangible assets  

Changes in the carrying amount of goodwill for the three months ended January 31, 2019 by operating segment are as follows:

	Adhesive Dispensing Systems		Advanced Technology Systems		Industrial Coating Systems		Total
Balance at October 31, 2018	$	388,991	$	1,194,969	$	24,058	$	1,608,018
Acquisitions		—		870		—		870
Currency effect		1,377		1,089		—		2,466
Balance at January 31, 2019	$	390,368	$	1,196,928	$	24,058	$	1,611,354

Accumulated impairment losses, which were recorded in 2009, were $232,789 at January 31, 2019 and October 31, 2018.  Of these losses, $229,173 related to the Advanced Technology Systems segment, and $3,616 related to the Industrial Coating Systems segment.

Information regarding our intangible assets subject to amortization is as follows:

	January 31, 2019
	Carrying Amount		Accumulated Amortization		Net Book Value
Customer relationships	$	480,719	$	147,176	$	333,543
Patent/technology costs		154,473		63,156		91,317
Trade name		96,468		36,478		59,990
Non-compete agreements		11,572		10,084		1,488
Other		1,399		1,395		4
Total	$	744,631	$	258,289	$	486,342
	October 31, 2018
	Carrying Amount		Accumulated Amortization		Net Book Value
Customer relationships	$	480,404	$	137,640	$	342,764
Patent/technology costs		153,602		59,845		93,757
Trade name		96,433		34,768		61,665
Non-compete agreements		11,469		9,919		1,550
Other		1,386		1,381		5
Total	$	743,294	$	243,553	$	499,741

Amortization expense for the three months ended January 31, 2019 and 2018 was $13,629 and $13,889, respectively.    

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7. Pension and other postretirement plans  

The components of net periodic pension cost for the three months ended January 31, 2019 and 2018 were:

	U.S.						International
Three Months Ended	2019			2018			2019			2018
Service cost	$	3,578		$	3,682		$	484		$	497
Interest cost		4,498			3,639			421			423
Expected return on plan assets		(5,804	)		(5,491	)		(400	)		(380	)
Amortization of prior service credit		(15	)		(8	)		(76	)		(80	)
Amortization of net actuarial loss		1,544			2,156			428			529
Total benefit cost	$	3,801		$	3,978		$	857		$	989

The components of other postretirement benefit cost for the three months ended January 31, 2019 and 2018 were:

	U.S.						International
Three Months Ended	2019			2018			2019			2018
Service cost	$	165		$	212		$	4		$	5
Interest cost		749			637			5			5
Amortization of prior service credit		(6	)		(25	)		—			—
Amortization of net actuarial (gain) loss		152			249			(7	)		(5	)
Total benefit cost	$	1,060		$	1,073		$	2		$	5

The components of net periodic pension cost other than service cost are included in Other – net in our Consolidated Statements of Income.

8. Income taxes

We record our interim provision for income taxes based on our estimated annual effective tax rate, as well as certain items discrete to the current period. The effective tax rates for the three months ended January 31, 2019 and January 31, 2018 was 28.6% and -1.0%, respectively.   The effective tax rate for the current quarterwas higher than the comparable prior year period primarily due to the enacted law commonly referred to as the U.S. Tax Cuts and Jobs Act ("the Act").

On December 22, 2017, the Act was enacted into law which significantly revised U.S. tax law. It reduced the U.S. federal corporate income tax rate from 35% to 21%.  We have an October 31 fiscal year-end, therefore the lower corporate income tax rate was phased in, resulting in a U.S. statutory federal rate of 23.3% for our fiscal year ended October 31, 2018, and 21% for subsequent fiscal years.  The statutory tax rate of 21.0% was applied to earnings in the current quarter.  

Subsequent to the enactment of the Act, the SEC staff issued SAB 118, which provided a measurement period of up to one year after the enactment date for companies to finalize the recognition of the income tax effects of the Act. As of January 31, 2019, our provisional accounting for the effects of the Act are complete. During the period ended January 31, 2018 we provisionally recorded a discrete tax benefit of $22,089.  During the three months ended January 31, 2019, and within the one year measurement period provided by SAB 118, a discrete tax expense of $4,866 was recorded to the provisional amounts recognized in 2018 due to changes in interpretations and assumptions and the finalization of estimates.

In March 2016, the FASB issued a new standard which simplifies the accounting for share-based payment transactions. This guidance required that excess tax benefits and tax deficiencies be recognized as income tax expense or benefit in the Consolidated Statements of Income rather than as additional paid-in capital. As a result, our income tax provision included a discrete tax benefit of $868 and $4,748 for the three months ended January 31, 2019 and 2018, respectively.    

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9. Accumulated other comprehensive loss

The components of accumulated other comprehensive loss, including adjustments for items that are reclassified from accumulated other comprehensive loss to net income, are shown below.

	Cumulative			Pension and			Accumulated
	translation			postretirement benefit			other comprehensive
	adjustments			plan adjustments			loss
Balance at October 31, 2018	$	(57,042	)	$	(122,272	)	$	(179,314	)
Amortization of prior service costs and net    actuarial lossess, net of tax of $(412)		—			1,352			1,352
Foreign currency translation adjustments		16,463			—			16,463
Balance at January 31, 2019	$	(40,579	)	$	(120,920	)	$	(161,499	)

10. Stock-based compensation

During the 2018 Annual Meeting of Shareholders, our shareholders approved the Amended and Restated 2012 Stock Incentive and Award Plan (the “2012 Plan”). The 2012 Plan provides for the granting of stock options, stock appreciation rights, restricted shares, restricted share units, performance shares, cash awards and other stock or performance-based incentives. A maximum of 4,525 common shares are available for grant under the 2012 Plan.

Stock Options

Nonqualified or incentive stock options may be granted to our employees and directors.  Generally, options granted to employees may be exercised beginning one year from the date of grant at a rate not exceeding 25 percent per year and expire 10 years from the date of grant.  Vesting accelerates upon a qualified termination in connection with a change in control. In the event of termination of employment due to early retirement or normal retirement at age 65, options granted within 12 months prior to termination are forfeited, and vesting continues post retirement for all other unvested options granted.  In the event of disability or death, all unvested stock options granted within 12 months prior to termination (or at any time prior to December 28, 2017) fully vest.  Termination for any other reason results in forfeiture of unvested options and vested options in certain circumstances.  The amortized cost of options is accelerated if the retirement eligibility date occurs before the normal vesting date.  Option exercises are satisfied through the issuance of treasury shares on a first-in, first-out basis.  We recognized compensation expense related to stock options of $2,531 and $2,617 in the three months ended January 31, 2019 and 2018, respectively.    

The following table summarizes activity related to stock options for the three months ended January 31, 2019:

	Number of Options			Weighted-Average Exercise Price Per Share		Aggregate Intrinsic Value		Weighted Average Remaining Term
Outstanding at October 31, 2018		1,885		$	85.33
Granted		348		$	124.89
Exercised		(66	)	$	54.40
Forfeited or expired		(6	)	$	110.74
Outstanding at January 31, 2019		2,161		$	92.58	$	80,095	6.9 years
Vested or expected to vest at January 31, 2019		2,133		$	92.18	$	79,920	6.9 years
Exercisable at January 31, 2019		1,253		$	75.89	$	67,355	5.6 years

As of January 31, 2019, there was $15,833 of total unrecognized compensation cost related to unvested stock options.  That cost is expected to be amortized over a weighted average period of approximately 1.6 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, 2019	January 31, 2018
Expected volatility	24.1%-24.5%	24.0%-26.7%
Expected dividend yield	1.04%	0.97%
Risk-free interest rate	2.84%-2.95%	2.09%-2.20%
Expected life of the option (in years)	5.3-6.2	5.4-6.2

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The weighted-average expected volatility used to value the 2019 and 2018 options was 24.3% and 25.0%, 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, 2019 and 2018 was $31.74 and $31.42, respectively.

The total intrinsic value of options exercised during the three months ended January 31, 2019 and 2018 was $4,621 and $18,723, respectively.

Cash received from the exercise of stock options for the three months ended January 31, 2019 and 2018 was $3,606 and $10,306, respectively.

Restricted Shares and Restricted Share Units

We may grant restricted shares and/or restricted share units to our employees and directors.  These shares or units may not be transferred for a designated period of time (generally one to three years) defined at the date of grant.  

For employee recipients, in the event of termination of employment due to early retirement with the consent of the Company, restricted shares granted within 12 months prior to termination are forfeited, and other restricted shares vest on a pro-rata basis.  In the event of termination of employment due to normal retirement at age 65, restricted shares granted within 12 months prior to termination are forfeited, and, for other restricted shares, the restriction period will lapse and the shares will vest and be transferable. For restricted shares granted within 12 months prior to termination (or at any time prior to December 28, 2017), the restrictions lapse in the event of a recipient’s disability or death.  Termination for any other reason prior to the lapse of any restrictions results in forfeiture of the shares.

For non-employee directors, all restrictions lapse in the event of disability or death of the non-employee director.  Termination of service as a director for any other reason within one year of date of grant results in a pro-rata vesting of shares or units.

As shares or units are issued, deferred stock-based compensation equivalent to the fair value on the date of grant is expensed over the vesting period.  

The following table summarizes activity related to restricted shares during the three months ended January 31, 2019:

	Number of Shares			Weighted-Average Grant Date Fair Value
Restricted shares at October 31, 2018		53		$	108.82
Granted		20		$	124.90
Vested		(22	)	$	93.67
Restricted shares at January 31, 2019		51		$	121.55

As of January 31, 2019, there was $4,797 of unrecognized compensation cost related to restricted shares. The cost is expected to be amortized over a weighted average period of 2.1 years.  The amount charged to expense related to restricted shares during the three months ended January 31, 2019 and 2018 was $697 and $754, respectively. These amounts included common share dividends for the three months ended January 31, 2019 and 2018 of $18 and $17, respectively.

The following table summarizes activity related to restricted share units during the three months ended January 31, 2019:

	Number of Units		Weighted-Average Grant Date Fair Value
Restricted share units at October 31, 2018		0	$	—
Granted		8	$	126.83
Restricted share units at January 31, 2019		8	$	126.83

As of January 31, 2019, there was $780 of remaining expense to be recognized related to outstanding restricted share units, which is expected to be recognized over a weighted average period of 0.8 years.  The amount charged to expense related to restricted share units during each of the three months ended January 31, 2019 and 2018 was $263 and $253, respectively.   

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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, 2019:

	Number of Shares		Weighted-Average Grant Date Fair Value
Outstanding at October 31, 2018		107	$	51.24
Dividend equivalents		1	$	120.03
Outstanding at January 31, 2019		108	$	51.44

The amount charged to expense related to director deferred compensation for the three months ended January 31, 2019 and 2018 was $37 and $31, 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 $120.12 for 2019, $123.45 for 2018, and $103.75 and $104.49 per share for 2017.    During the three months ended January 31, 2019 and 2018, $777 and $3,349 was charged to expense, respectively.   The cumulative amount recorded in shareholders’ equity at January 31, 2019 was $8,247.

Deferred Compensation

Our executive officers and other highly compensated employees may elect to defer up to 100% of their base pay and cash incentive and for executive officers, up to 90% of their share-based performance incentive payout each year.  Additional share units are credited for quarterly dividends paid on our common shares. Expense related to dividends paid under this plan for the three months ended January 31, 2019 and 2018 was $72 and $67, respectively.   

11. Warranties

We offer warranties to our customers depending on the specific product and terms of the customer purchase agreement.  A typical warranty program requires that we repair or replace defective products within a specified time period (generally one year) from the date of delivery or first use.  We record an estimate for future warranty-related costs based on actual historical return rates.  Based on analysis of return rates and other factors, the adequacy of our warranty provisions are adjusted as necessary.  The liability for warranty costs is included in Accrued liabilities in the Consolidated Balance Sheet.  

Following is a reconciliation of the product warranty liability for the three months ended January 31, 2019 and 2018:

	January 31, 2019			January 31, 2018
Beginning balance at October 31	$	12,195		$	13,377
Accruals for warranties		1,999			3,231
Warranty payments		(2,499	)		(3,101	)
Currency effect		132			383
Ending balance	$	11,827		$	13,890

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12. Operating segments  

We conduct business across three primary business segments:  Adhesive Dispensing Systems, Advanced Technology Systems, and Industrial Coating Systems.  The composition of segments and measure of segment profitability is consistent with that used by our chief operating decision maker.  The primary measure used by the chief operating decision maker for purposes of making decisions about allocating resources to the segments and assessing performance is operating profit, which equals sales less cost of sales and certain operating expenses.  Items below the operating profit line of the Consolidated Statements of Income (interest and investment income, interest expense and other income/expense) are excluded from the measure of segment profitability reviewed by our chief operating decision maker and are not presented by operating segment.  The accounting policies of the segments are the same as those described in Note 1, Significant Accounting Policies, of our annual report on Form 10-K for the year ended October 31, 2018.

The following table presents information about our segments:

	AdhesiveDispensing Systems		AdvancedTechnology Systems		IndustrialCoating Systems		Corporate			Total
Three months ended
January 31, 2019
Net external sales	$	211,517	$	234,458	$	51,935	$	—		$	497,910
Operating profit (loss)		47,892		40,785		7,516		(11,912	)		84,281
Three months ended
January 31, 2018
Net external sales	$	220,864	$	271,701	$	57,859	$	—		$	550,424
Operating profit (loss)(1)		53,990		67,493		10,545		(12,678	)		119,350

⁽¹⁾ Results for the three months ended January 31, 2018 have been revised to reflect the retrospective adoption of Accounting Standards Update No. 2017-07, Compensation — Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Cost ("ASU 2017-07"). Refer to Note 3 for details.

A reconciliation of total segment operating income to total consolidated income before income taxes is as follows:

	Three Months Ended
	January 31, 2019			January 31, 2018
Total profit for reportable segments	$	84,281		$	119,350
Interest expense		(12,365	)		(11,317	)
Interest and investment income		316			289
Other-net		(4,189	)		(4,804	)
Income before income taxes	$	68,043		$	103,518

We have significant sales in the following geographic regions:

	Three Months Ended
	January 31, 2019		January 31, 2018
United States	$	170,350	$	165,831
Americas		32,437		34,279
Europe		132,675		141,938
Japan		29,047		65,869
Asia Pacific		133,401		142,507
Total net external sales	$	497,910	$	550,424

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13. 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, 2019	Total		Level 1		Level 2		Level 3
Assets:
Foreign currency forward contracts (a)	$	3,638	$	—	$	3,638	$	—
Total assets at fair value	$	3,638	$	—	$	3,638	$	—
Liabilities:
Deferred compensation plans (b)	$	12,019	$	—	$	12,019	$	—
Foreign currency forward contracts (a)		2,319		—		2,319		—
Total liabilities at fair value	$	14,338	$	—	$	14,338	$	—

January 31, 2018	Total		Level 1		Level 2		Level 3
Assets:
Foreign currency forward contracts (a)	$	4,640	$	—	$	4,640	$	—
Total assets at fair value	$	4,640	$	—	$	4,640	$	—
Liabilities:
Deferred compensation plans (b)	$	12,774	$	—	$	12,774	$	—
Foreign currency forward contracts (a)		5,314		—		5,314		—
Total liabilities at fair value	$	18,088	$	—	$	18,088	$	—

(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.

	2019
	Carrying Amount		Fair Value
Long-term debt (including current portion)		1,385,126		1,377,373

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.

14. 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

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for U.S. dollars at maturity, at rates stated in the contracts. These contracts are not designated as hedging instruments under U.S. GAAP. Accordingly, the changes in the fair value of the foreign currency forward contracts are recognized in each accounting period in “Other – net” on the Consolidated Statements of Income together with the transaction gain or loss from the related balance sheet position. For the three months ended January 31, 2019, we recognized net gains of $1,030 on foreign currency forward contracts and net losses of $2,003 from the change in fair value of balance sheet positions. For the three months ended January 31, 2018, we recognized losses of $964 on foreign currency forward contracts and net losses of $982 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, 2019 and 2018:

	Notional Amounts
January 31, 2019 contract amounts:	Sell		Buy
Euro	$	335,775	$	204,537
British pound		24,348		66,809
Japanese yen		28,009		47,997
Australian dollar		786		8,012
Hong Kong dollar		—		121,578
Singapore dollar		858		15,115
Others		5,619		61,312
Total	$	395,395	$	525,360
	Notional Amounts
January 31, 2018 contract amounts:	Sell		Buy
Euro	$	151,860	$	82,214
British pound		42,565		54,821
Japanese yen		55,161		25,348
Australian dollar		559		7,874
Hong Kong dollar		—		107,854
Singapore dollar		975		12,738
Others		6,626		52,464
Total	$	257,746	$	343,313

We are exposed to credit-related losses in the event of nonperformance by counterparties to financial instruments. These financial instruments include cash deposits and foreign currency forward contracts. We periodically monitor the credit ratings of these counterparties in order to minimize our exposure. Our customers represent a wide variety of industries and geographic regions. For the three months ended January 31, 2019 and 2018, there were no significant concentrations of credit risk.

15. Long-term debt

A summary of long-term debt is as follows:

	January 31, 2019		October 31, 2018
Revolving credit agreement, due 2020	$	122,700	$	52,200
Senior notes, due 2019-2025		156,700		156,700
Senior notes, due 2019-2027		100,000		100,000
Senior notes, due 2023-2030		350,000		350,000
Term loan, due 2019-2022		605,000		605,000
Euro loan, due 2021		17,172		16,967
Private shelf facility, due 2020		36,111		36,111
Development loans, due 2019-2026		1,053		1,086
		1,388,736		1,318,064
Less current maturities		53,734		28,734
Less unamortized debt issuance costs		3,610		3,973
Long-term maturities	$	1,331,392	$	1,285,357

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In October 2018, we entered into a €150,000 agreement with Bank of America Merrill Lynch International Limited.  The interest rate is variable based on the EUR LIBOR rate.  The weighted average interest rate at January 31, 2019 was 0.88 %.  At January 31, 2019, the balance outstanding was €15,000 $(17,172).  We were in compliance with all covenants at January 31, 2019.

In June 2018, we entered into a Note Purchase Agreement with a group of insurance companies under which we sold $350,000 of Senior Notes to the insurance companies and their affiliates. The notes start to mature in June 2023 and mature through June 2030 and bear interest at fixed rates between 3.71% and 4.17%.   We used the proceeds from the sale of the notes to repay approximately $315,000 of the outstanding balance under our existing syndicated revolving credit facility at that time, and the reminder for general corporate purposes.  We were in compliance with all covenants at January 31, 2019.

In March 2017, we entered into a $705,000 term loan facility with a group of banks. The Term Loan Agreement initially provided for the following term loans in three tranches: $200,000 due in October 2018, $200,000 due in March 2020, and $305,000 due in March 2022.  In May 2018, we entered into a Second Amendment to our $705,000 term loan facility to extend the maturity due date of the first $200,000 tranche from October 2018 to October 2021.  In October 2018, we paid down $100,000 of the portion due in March 2020.  The weighted average interest rate for borrowings under this agreement was 3.42% at January 31, 2019. Borrowings under this agreement were used for the single purpose of acquiring Vention during the second quarter of 2017. We were in compliance with all covenants at January 31, 2019.

In February 2015, we increased, amended and extended our existing syndicated revolving credit agreement that was scheduled to expire in December 2016. We entered into a $600,000 unsecured, multicurrency credit facility with a group of banks.  This facility has a five-year term and includes a $50,000 subfacility for swing-line loans and was increased to $850,000 in June 2018.  It expires in February 2020. Balances outstanding under the prior facility were transferred to the new facility. At January 31, 2019, $122,700 was outstanding under this facility, compared to $52,200 outstanding at October 31, 2018. We were in compliance with all covenants at January 31, 2019, and the amount we could borrow under the facility would not have been limited by any debt covenants.

We entered into a $150,000 three-year Note Purchase and Private Shelf agreement with New York Life Investment Management LLC in 2011.  In 2015, the amount of the facility was increased to $180,000, and in 2016 it was increased to $200,000. Notes issued under the agreement may have a maturity of up to 12 years, with an average life of up to 10 years, and are unsecured.  The interest rate on each note can be fixed or floating and is based upon the market rate at the borrowing date.  At January 31, 2019 and October 31, 2018, there was $36,111 outstanding under this facility. Existing notes mature between January 2020 and September 2020.  The interest rate on each borrowing is fixed based on the market rate at the borrowing date or is variable based upon the LIBOR rate.  At January 31, 2019, the amount outstanding under this facility bears interest at fixed rates between 2.21% and 2.56%.  This agreement contains customary events of default and covenants related to limitations on indebtedness and the maintenance of certain financial ratios.  We were in compliance with all covenants at January 31, 2019, and the amount we could borrow would not have been limited by any debt covenants. 

In 2012, we entered into a Note Purchase Agreement with a group of insurance companies under which we sold $200,000 of Senior Notes.  At January 31, 2019 and October 31, 2018, $156,700 was outstanding under this agreement. Existing notes mature between July 2019 and July 2025 and bear interest at fixed rates between 2.62% and 3.13%.  We were in compliance with all covenants at January 31, 2019.

In July 2015, we entered into a Note Purchase Agreement under which $100,000 of Senior Unsecured Notes were purchased primarily by a group of insurance companies.  The notes start to mature in July 2019 and mature through July 2027 and bear interest at fixed rates of 2.89% and 3.19%.  We were in compliance with all covenants at January 31, 2019.  

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following is Management's discussion and analysis of certain significant factors affecting our financial condition and results of operations for the periods included in the accompanying condensed consolidated financial statements.

Overview

Founded in 1954, Nordson Corporation delivers precision technology solutions to help customers succeed worldwide.  We engineer, manufacture and market differentiated products and systems used to dispense, apply and control adhesives, coatings, sealants, biomaterials, polymers, plastics and other materials, and fluid management; to test and inspect for quality; and to treat and cure surfaces.  These products are supported with extensive application expertise and direct global sales and service.  We serve a wide variety of consumer non-durable, consumer durable and technology end-markets including packaging, nonwovens, electronics, medical, appliances, energy, transportation, building and construction, and general product assembly and finishing.We have approximately 7,600 employees and direct operations in more than 35 countries.

Critical Accounting Policies and Estimates

The preparation and fair presentation of the consolidated unaudited interim financial statements and accompanying notes included in this report are the responsibility of management. The financial statements and footnotes have been prepared in accordance with U.S. generally accepted accounting principles for interim financial statements and contain certain amounts that were based upon management’s best estimates, judgments and assumptions that were believed to be reasonable under the circumstances. On an ongoing basis, we evaluate the accounting policies and estimates used to prepare financial statements.  Estimates are based on historical experience, judgments and assumptions believed to be reasonable under current facts and circumstances.  Actual amounts and results could differ from these estimates used by management.

A comprehensive discussion of the Company’s critical accounting policies and management estimates and significant accounting policies followed in the preparation of the financial statements is included in Item 7 of our Annual Report on Form 10-K for the year ended October 31, 2018. Other than the adoption of the new revenue recognition standard as described in Note 2, there have been no significant changes in critical accounting policies, management estimates or accounting policies followed since the year ended October 31, 2018.

Results of Operations

Sales

Sales – Worldwide sales for the three months ended January 31, 2019 were $497,910, a decrease of 9.5% from sales of $550,424 for the comparable period of 2018. Sales volume decreased 7.7%, consisting of an 8.8% decrease in organic volume, offset by a 1.1% increase from the first-year effect of the Sonoscan and Clada acquisitions.  Unfavorable currency translation effects decreased sales by 1.8%.

Sales of the Adhesive Dispensing Systems segment for the three months ended January 31, 2019 were $211,517 compared to $220,864 in the comparable period of 2018, a decrease of $9,347, or 4.2%. The decrease was due to lower sales volume of 1.6%, and unfavorable currency effects that decreased sales by 2.6%.  Within this segment, sales volume decreased in all geographic regions, except for the Japan and Asia Pacific regions.  Softness in product lines serving nonwoven end markets was offset by growth in packaging and product assembly and polymer processing product lines.

Sales of the Advanced Technology Systems segment for the three months ended January 31, 2019 were $234,458 compared to $271,701 in the comparable period of 2018, a decrease of $37,243, or 13.7%. The decrease was due to lower sales volume of 12.4%, and unfavorable currency effects that decreased sales by 1.3%. The sales volume decrease consisted of a 14.5% decrease in organic volume, offset by a 2.1% increase from the first-year effect of acquisitions. Within this segment, sales volume, inclusive of acquisitions, decreased in the Japan and Asia Pacific regions, which was offset by growth in all other regions. Growth in our test and inspection and fluid management product lines serving industrial and medical end markets was offset by lower demand in our dispensing product lines serving electronic end markets.

Sales of the Industrial Coating Systems segment for the three months ended January 31, 2019 were $51,935 compared to $57,859 in the comparable period of 2018, a decrease of $5,924, or 10.2%. The decrease was due to a sales volume decrease of 8.6%, and unfavorable currency effects that decreased sales by 1.6%. Within this segment, sales volume increased in the Japan and Asia Pacific

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regions which was offset by softness in all other regions.  The sales volume decrease was primarily due to lower demand for our cold materials product lines serving automotive end markets.

Sales outside the United States accounted for 65.8% of our sales in the three months ended January 31, 2019, compared to 69.9% for the comparable period of 2018. On a geographic basis, sales in the United States were $170,350, an increase of 2.7% from 2018. The increase in sales volume consisted of 2.2% from organic volume, and 0.5% from acquisitions. In the Americas region, sales were $32,437, a decrease of 5.4% from 2018, with organic volume decreasing 3.0%, and unfavorable currency effects of 2.4%.  Sales in Europe were $132,675, a decrease of 6.5% from 2018, with sales volume decreasing 2.1% and unfavorable currency effects of 4.4%.  The decrease in sales volume consisted of lower organic volume of 2.8%, offset by a 0.7% increase from acquisitions.  Sales in Japan were $29,047, a decrease of 55.9% from 2018, with volume decreasing 56.2%, offset by favorable currency effects of 0.3%.  The decrease in sales volume consisted of lower organic volume of 57.9%, primarily related to our Advanced Technology Systems segment, offset by a 1.7% increase from acquisitions. Sales in the Asia Pacific region were $133,401, a decrease of 6.4% from 2018, with volume decreasing 4.1%, and unfavorable currency effects of 2.3%.  The decrease in sales volume consisted of lower organic volume of 6.1%, offset by a 2.0% increase from acquisitions.

Operating profit – Cost of sales for the three months ended January 31, 2019 were $228,934, down from $249,451 in the comparable period of 2018. Gross profit, expressed as a percentage of sales, decreased slightly to 54.0% for this same period from 54.7% in 2018. Of the 0.7 percentage point decline in gross margin, unfavorable product mix contributed 0.5 percentage points and unfavorable currency translation effects contributed 0.2 percentage points.

Selling and administrative expenses for the three months ended January 31, 2019 were $184,695 compared to $181,623 in the comparable period of 2018. The 1.7% increase included 3.3% in support of base business and 0.1% due to higher severance and restructuring, offset by favorable currency translation effects of 1.7%.

Selling and administrative expenses as a percentage of sales increased to 37.1% for the three months ended January 31, 2019 compared to 33.0% in the comparable period of 2018. Of the 4.1 percentage point increase, 3.0 percentage points were due higher base business costs, 1.0 percentage point was due to the first year effect of acquisitions and 0.1 percentage point was due to higher severance and restructuring expenses during the three months ended January 31, 2019.  

During the three months ended January 31, 2019, we recognized severance and restructuring costs of $1,458, which was primarily due to a restructuring initiative to consolidate certain facilities in the U.S. within our Adhesives Dispensing Systems segment. Additional costs related to this initiative are not expected to be material in future periods. All severance and restructuring costs are included in Selling and administrative expenses in the Consolidated Statements of Income.

Operating capacity for each of our segments can support fluctuations in order activity without significant changes in operating costs. Also, currency translation affects reported operating margins. Operating margins for each segment were unfavorably impacted by a stronger dollar primarily against the Euro during the first quarter of 2019 as compared to the same period in 2018.

Operating profit as a percentage of sales decreased to 16.9% for the three months ended January 31, 2019 compared to 21.7% for the comparable period of 2018.  Of the 4.8 percentage point decrease, lower sales volume contributed 6.2 percentage points, 0.5 percentage points were due to unfavorable product mix, 0.5 unfavorable currency translation effect impact and 0.1 percentage point was due to higher severance and restructuring costs.  This decrease was offset by 2.3 percentage points due to first year effect of acquisitions, and 0.2 percentage points due to lower short-term purchase price accounting charges for acquired inventory.

For the Adhesive Dispensing Systems segment, operating profit as a percentage of sales decreased to 22.6% for the three months ended January 31, 2019 compared to 24.4% for the comparable period of 2018.  Of the 1.8 percentage point decline, 1.8 percentage points were due to lower sales volume, 0.4 percentage points were due to unfavorable currency translation effects and 0.1 percentage points were due to higher severance and restructuring expenses.  This decrease was offset by 0.5 percentage points due to favorable product mix.  

For the Advanced Technology Systems segment, operating profit as a percentage of sales decreased to 17.4% for the three months ended January 31, 2019 compared to 24.8% for the comparable period of 2018. Of the 7.4 percentage point decline in operating margin, unfavorable product mix contributed 3.9 percentage points, lower sales volume contributed 3.1 percentage points, and unfavorable currency translation effects contributed 0.4 percentage points.  

For the Industrial Coating Systems segment, operating profit as a percentage of sales decreased to 14.5% for the three months ended January 31, 2019 compared to 18.2% for the comparable period of 2018. Of the 3.7 percentage point decline in operating margin,

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lower sales volume contributed 3.6 percentage points and unfavorable currency translation effects contributed 0.3 percentage points.  These decreases were offset by 0.2 percentage points due to favorable product mix.

Interest and other income (expense) - Interest expense for the three months ended January 31, 2019 was $12,365, up from $11,317 for the comparable period of 2018.  The increase was due primarily to higher interest rates.

Other expense was $4,189 for the three months ended January 31, 2019, compared to $4,804 for the comparable period of 2018. Included in the current quarter’s other expense were foreign currency losses of $973. Included in the prior year’s other expense were foreign currency losses of $1,945.

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.  Significant judgment is involved regarding the application of global income tax laws and regulations and when projecting the jurisdictional mix of income. We have considered several factors in determining the probability of realizing deferred income tax assets which include forecasted operating earnings, available tax planning strategies and the time period over which the temporary differences will reverse. We review our tax positions on a regular basis and adjust the balances as new information becomes available. The effective tax rate for the three months ended January 31, 2019 is 28.6% compared to -1.0% for the three months ended January 31, 2018.  The effective tax rate for the current quarter was higher than the comparable prior year period primarily due to the enacted law commonly referred to as the U.S. Tax Cuts and Jobs Act ("the Act").

On December 22, 2017, the Act was enacted into law which significantly revised U.S. tax law. It reduced the U.S. federal corporate income tax rate from 35% to 21%.  We have an October 31 fiscal year-end, therefore the lower corporate income tax rate was phased in, resulting in a U.S. statutory federal rate of 23.3% for our fiscal year ended October 31, 2018, and 21% for subsequent fiscal years.  The statutory tax rate of 21.0% was applied to earnings in the current quarter.  

Subsequent to the enactment of the Act, the SEC staff issued SAB 118, which provided a measurement period of up to one year after the enactment date for companies to finalize the recognition of the income tax effects of the Act. As of January 31, 2019, we now consider our provisional accounting for the effects of the Act are complete. During the period ended January 31, 2018 we provisionally recorded a discrete tax benefit of $22,089.  During the three months ended January 31, 2019, and within the one year measurement period provided by SAB 118, a discrete tax expense of $4,866 was recorded to the provisional amounts recognized in 2018 due to changes in interpretations and assumptions and the finalization of estimates.

In March 2016, the FASB issued a new standard which simplifies the accounting for share-based payment transactions. This guidance requires that excess tax benefits and tax deficiencies be recognized as income tax expense or benefit in the Consolidated Statements of Income rather than as additional paid-in capital. As a result, our income tax provision included a discrete tax benefit of $868 and $4,748 for the three months ended January 31, 2019 and 2018, respectively.

Net income – Net income for the three months ended January 31, 2019 was $48,567, or $0.83 per diluted share, compared to $104,555, or $1.78 per diluted share, in the same period of 2018. This represents a 53.5% decrease in net income and a 53.4% decrease in diluted earnings per share.

Foreign Currency Effects

In the aggregate, average exchange rates for 2019 used to translate international sales and operating results into U.S. dollars were unfavorable comparedwith average exchange rates existing during 2018.  It is not possible to precisely measure the impact on operating results arising from foreign currency exchange rate changes, because of changes in selling prices, sales volume, product mix and cost structure in each country in which we operate.  However, if transactions for the three months ended January 31, 2019 were translated at exchange rates in effect during the same period of 2018, sales would have been approximately $10,151 higher while third-party costs and expenses would have been approximately $6,097 higher.

Financial Condition

Liquidity and Capital Resources

During the three months ended January 31, 2019, cash and cash equivalents decreased $10,132.  Cash provided by operations during this period was $56,847 compared to $109,278 for the three months ended January 31, 2018.  Cash of $82,655 was generated from net income adjusted for non-cash income and expenses (consisting of depreciation and amortization, non-cash stock compensation, deferred income taxes, other non-cash expense and (gain) loss on sale of property, plant and equipment), compared to $92,947 for the comparable period of 2018.  Changes in operating assets and liabilities decreased cash by $25,808 in the three months ended January

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Nordson Corporation

31, 2019, compared to an increase of $16,331 in the comparable period of 2018. This change is due primarily to changes in inventory, accrued liabilities and other long-term liabilities balances year-over-year.

Cash used in investing activities was $13,875 for the three months ended January 31, 2019, compared to $59,897 in the comparable period of 2018. The change is primarily due to cash used for our 2018 acquisitions. Capital expenditures in the three months ended January 31, 2019 were $14,121, compared to $16,681 in the comparable period of 2018.

Cash used in financing activities was $55,297 for the three months ended January 31, 2019, compared to $11,803 used in the comparable period of the prior year.  Net proceeds of long-term debt and short-term borrowings produced $70,455, compared to $1,616 in the prior year. During the three months ended January 31, 2019, cash of $107,667 was used for the purchase of treasury shares and cash of $20,210 was used for dividend payments, compared to $4,989 and $17,321, respectively, in the comparable period of 2018. Issuance of common shares related to employee benefit plans generated $3,606 compared to $10,306 in the comparable period of 2018.

The following is a summary of significant changes in balance sheet captions from October 31, 2018 to January 31, 2019.  Receivables decreased $28,195 due to higher collections.  The decrease of $48,172 in accrued liabilities was primarily due to compensation adjustments and bonuses paid out this quarter.

In December 2014, the board of directors authorized a $300,000 common share repurchase program. This program replaced the $200,000 program approved by the board in August 2013. In August 2015, the board of directors authorized the repurchase of up to an additional $200,000 of the Company’s common shares.  In August 2018, the board of directors authorized the repurchase of an additional $500,000 of the Company’s common shares.  Approximately $497,629 of the total $1,000,000 authorized remained available for share repurchases at January 31, 2019. Uses for repurchased shares include the funding of benefit programs including stock options, restricted stock and 401(k) matching. Shares purchased are treated as treasury shares until used for such purposes. The repurchase program is being funded using cash from operations and proceeds from borrowings under our credit facilities.

Contractual Obligations

In October 2018, we entered into a €150,000 agreement with Bank of America Merrill Lynch International Limited.  The interest rate is variable based on the EUR LIBOR rate.  The weighted average interest rate at January 31, 2019 was 0.88%.  At January 31, 2019, the balance outstanding was €15,000 $(17,172). We were in compliance with all covenants at January 31, 2019.

In June 2018, we entered into a Note Purchase Agreement with a group of insurance companies under which we sold $350,000 of Senior Notes to the insurance companies and their affiliates. The notes start to mature in June 2023 and mature through June 2030 and bear interest at fixed rates between 3.71% and 4.17%.   We used the proceeds from the sale of the notes to repay approximately $315,000 of the outstanding balance under our existing syndicated revolving credit facility at that time, and the reminder for general corporate purposes.  We were in compliance with all covenants at January 31, 2019.

In March 2017, we entered into a $705,000 term loan facility with a group of banks. The Term Loan Agreement initially provided for the following term loans in three tranches: $200,000 due in October 2018, $200,000 due in March 2020, and $305,000 due in March 2022.  In May 2018, we entered into a Second Amendment to our $705,000 term loan facility to extend the maturity due date of the first $200,000 tranche from October 2018 to October 2021.  In October 2018, we paid down $100,000 of the portion due in March 2020.  The weighted average interest rate for borrowings under this agreement was 3.42% at January 31, 2019. Borrowings under this agreement were used for the single purpose of acquiring Vention during the second quarter of 2017. We were in compliance with all covenants at January 31, 2019.

In February 2015, we increased, amended and extended our existing syndicated revolving credit agreement that was scheduled to expire in December 2016. We entered into a $600,000 unsecured, multicurrency credit facility with a group of banks.  This facility has a five-year term and includes a $50,000 subfacility for swing-line loans and was increased to $850,000 in June 2018.  It expires in February 2020. Balances outstanding under the prior facility were transferred to the new facility. At January 31, 2019, $122,700 was outstanding under this facility, compared to $52,200 outstanding at October 31, 2018. We were in compliance with all covenants at January 31, 2019, and the amount we could borrow under the facility would not have been limited by any debt covenants.

We entered into a $150,000 three-year Note Purchase and Private Shelf agreement with New York Life Investment Management LLC in 2011.  In 2015, the amount of the facility was increased to $180,000, and in 2016 it was increased to $200,000. Notes issued under the agreement may have a maturity of up to 12 years, with an average life of up to 10 years, and are unsecured.  The interest rate on each note can be fixed or floating and is based upon the market rate at the borrowing date.  At January 31, 2019 and October 31, 2018, there was $36,111 outstanding under this facility. Existing notes mature between January 2020 and September 2020.  The interest rate

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Nordson Corporation

on each borrowing is fixed based on the market rate at the borrowing date or is variable based upon the LIBOR rate.  At January 31, 2019, the amount outstanding under this facility bears interest at fixed rates between 2.21% and 2.56%.This agreement contains customary events of default and covenants related to limitations on indebtedness and the maintenance of certain financial ratios.  We were in compliance with all covenants at January 31, 2019, and the amount we could borrow would not have been limited by any debt covenants. 

In 2012, we entered into a Note Purchase Agreement with a group of insurance companies under which we sold $200,000 of Senior Notes.  At January 31, 2019 and October 31, 2018, $156,700 was outstanding under this agreement. Existing notes mature between July 2019 and July 2025 and bear interest at fixed rates between 2.62% and 3.13%.  We were in compliance with all covenants at January 31, 2019.

In July 2015, we entered into a Note Purchase Agreement under which $100,000 of Senior Unsecured Notes were purchased primarily by a group of insurance companies.  The notes start to mature in July 2019 and mature through July 2027 and bear interest at fixed rates of 2.89% and 3.19%.  We were in compliance with all covenants at January 31, 2019.  

Outlook

Regarding expectations for 2019, we are optimistic about longer term growth opportunities in the diverse consumer durable, non-durable, medical, electronics and industrial end markets we serve. For 2019, organic sales are expected to increase 3 percent to 5 percent compared to the prior year, offset by an unfavorable currency effect of 2 percent based on the current exchange rate environment as compared to the prior year. We move forward with caution given continued slower growth in emerging markets than previous years, expectations for global GDP indicating a low-growth macroeconomic environment, tariffs and other international trade uncertainties, and marketplace effects of political instability in certain areas of the world.  Though the pace of improvement in the global economy remains unclear, our growth potential has been demonstrated over time from our capacity to build and enhance our core businesses by entering emerging markets, pursuing market adjacencies and driving growth initiatives.  We drive value for our customers through our application expertise, differentiated technology, and direct sales and service support.  Our priorities also are focused on operational efficiencies by employing continuous improvement methodologies in our business processes.  We expect our efforts will continue to provide more than sufficient cash from operations for meeting our liquidity needs and paying dividends to common shareholders, as well as enabling us to invest in the development of new applications and markets for our technologies.

Safe Harbor Statements Under The Private Securities Litigation Reform Act Of 1995

This Form 10-Q, particularly the “Management’s Discussion and Analysis”, contains forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995.  Such statements relate to, among other things, income, earnings, cash flows, changes in operations, operating improvements, businesses in which we operate and the U.S. and global economies.  Statements in this Form 10-Q that are not historical are hereby identified as “forward-looking statements” and may be indicated by words or phrases such as “anticipates”, “supports”, “plans”, “projects”, “expects”, “believes”, “should”, “would”, “could”, “hope”, “forecast”, “management is of the opinion”, use of the future tense and similar words or phrases.

In light of these risks and uncertainties, actual events and results may vary significantly from those included in or contemplated or implied by such statements.  Readers are cautioned not to place undue reliance on such forward-looking statements.  These forward-looking statements speak only as of the date made.  We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Factors that could cause actual results to differ materially from the expected results are discussed in Item 1A, Risk Factors in our Form 10-K for the year ended October 31, 2018.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Information regarding our financial instruments that are sensitive to changes in interest rates and foreign currency exchange rates was disclosed in our Form 10-K for the year ended October 31, 2018.  The information disclosed has not changed materially in the interim period since then.

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ITEM 4. CONTROLS AND PROCEDURES

Our management with the participation of the principal executive officer (President and Chief Executive Officer) and principal financial officer (Executive Vice President, Chief Financial Officer) has reviewed and evaluated our disclosure controls and procedures (as defined in the Securities Exchange Act Rule 13a-15(e)) as of January 31, 2019.  Based on that evaluation, our management, including the principal executive and financial officers, has concluded that our disclosure controls and procedures were effective as of January 31, 2019 in ensuring that information required to be disclosed in the reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms and is accumulated and communicated to management, including the principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

There were no changes in our internal controls over financial reporting that occurred during the three months ended January 31, 2019 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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Part II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

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 environmental matter discussed below, it is our opinion, after consultation with legal counsel, that resolutions of these matters are not expected to result in a material effect on our financial condition, quarterly or annual operating results or cash flows.

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, 2019 and October 31, 2018, our accrual for the ongoing operation, maintenance and monitoring obligation at the Site was $439. 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.

ITEM 1A. RISK FACTORS

Information regarding our risk factors was disclosed in our Form 10-K filed for the year ended October 31, 2018.  The information disclosed has not changed materially in 2019.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following table summarizes common stock repurchased by the Company during the three months ended January 31, 2019:

					Total Number of		Maximum Value
					Shares Purchased		of Shares that
	Total Number		Average		as Part of Publicly		May Yet Be Purchased
	of Shares		Price Paid		Announced Plans		Under the Plans
	Purchased(1)		per Share		or Programs(2)		or Programs
November 1, 2018 to November 30, 2018		134		124.87		126	$	584,288
December 1, 2018 to December 31, 2018		300		115.51		300	$	549,633
January 1, 2019 to January 31, 2019		430		121.05		430	$	497,629
Total		864				856

(1) Includes 8 shares tendered for taxes related to vesting of restricted stock.

(2) In December 2014, the board of directors authorized a $300,000 common share repurchase program.  In August 2015, the board of directors authorized the repurchase of up to an additional $200,000 of the Company’s common shares. In August 2018, the board of directors authorized the repurchase of an additional $500,000 of the Company’s common shares. Approximately $497,629 of the total $1,000,000 authorized remained available for share repurchases at January 31, 2019. Uses for repurchased shares include the funding of benefit programs including stock options, restricted stock and 401(k) matching. Shares purchased are treated as treasury shares until used for such purposes. The repurchase program is being funded using cash from operations and proceeds from borrowings under our credit facilities.

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ITEM 6. EXHIBITS

31.1	Certification pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934 by the Chief Executive Officer, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934 by the Chief Financial Officer, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
101	The following financial information from Nordson Corporation’s Quarterly Report on Form 10-Q for the three months ended January 31, 2019, formatted in Extensible Business Reporting Language (XBRL): (i) the Condensed Consolidated Statements of Income for the three months ended January 31, 2019 and 2018, (ii) the Condensed Consolidated Statements of Comprehensive Income for the three months ended January 31, 2019 and 2018, (iii) the Condensed Consolidated Balance Sheets at January 31, 2019 and October 31, 2018, (iv) the Condensed Consolidated Statements of Cash Flows for the three months ended January 31, 2019 and 2018, and (v) the Notes to Condensed Consolidated Financial Statements.

* Furnished herewith.

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Nordson Corporation

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date:  March 7, 2019	Nordson Corporation
	By: /s/     GREGORY A. THAXTON
	Gregory A. Thaxton
	Executive Vice President, Chief Financial Officer
	(Principal Financial Officer)

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EX-31.1

Exhibit 31.1

CERTIFICATIONS

CERTIFICATION PURSUANT TO RULE 13a-14(a)/15d-14(a) OF THE SECURITIES EXCHANGE ACT OF 1934, AS
ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Michael F. Hilton, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Nordson Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting  which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: March 7, 2019
	/s/ Michael F. Hilton
	Michael F. Hilton
	President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO RULE 13a-14(a)/15d-14(a) OF THE SECURITIES EXCHANGE ACT OF 1934, AS
ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Gregory A. Thaxton, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Nordson Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting  which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: March 7, 2019
	/s/ Gregory A. Thaxton
	Gregory A. Thaxton
	Executive Vice President, Chief Financial Officer

EX-32.1

Exhibit 32.1

Certification

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

(Section 1350, Chapter 63 of Title 18, United States Code)

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Section 1350, Chapter 63 of Title 18, United States Code), I, Michael F. Hilton, President and Chief Executive Officer of Nordson Corporation, an Ohio corporation (the “Company”), do hereby certify that:

1. The Quarterly Report on Form 10-Q for the quarter ended January 31, 2019 of the Company (the “Form 10-Q”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. Information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:  March 7, 2019	/s/ Michael F. Hilton
	Michael F. Hilton
	President and Chief Executive Officer

EX-32.2

Exhibit 32.2

Certification

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

(Section 1350, Chapter 63 of Title 18, United States Code)

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Section 1350, Chapter 63 of Title 18, United States Code), I, Gregory A. Thaxton, Senior Vice President, Chief Financial Officer of Nordson Corporation, an Ohio corporation (the “Company”), do hereby certify that:

1. The Quarterly Report on Form 10-Q for the quarter ended January 31, 2019 of the Company (the “Form 10-Q”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. Information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:  March 7, 2019	/s/ Gregory A. Thaxton
	Gregory A. Thaxton
	Executive Vice President, Chief Financial Officer

XML

Document and Entity Information	3 Months Ended
	Jan. 31, 2019 shares
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jan. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Trading Symbol	NDSN
Entity Registrant Name	NORDSON CORP
Entity Central Index Key	0000072331
Current Fiscal Year End Date	--10-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	57,325,161
Entity Small Business	false
Entity Emerging Growth Company	false

XML

Condensed Consolidated Statements of Income (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Jan. 31, 2019	Jan. 31, 2018
Income Statement [Abstract]
Sales	$ 497,910	$ 550,424
Operating costs and expenses:
Cost of sales	228,934	249,451
Selling and administrative expenses	184,695	181,623
Total operating costs and expenses	413,629	431,074
Operating profit	84,281	119,350
Other income (expense):
Interest expense	(12,365)	(11,317)
Interest and investment income	316	289
Other - net	(4,189)	(4,804)
Total other income (expense)	(16,238)	(15,832)
Income before income taxes	68,043	103,518
Income taxes	19,476	(1,037)
Net income	$ 48,567	$ 104,555
Average common shares	57,702	57,755
Incremental common shares attributable to outstanding stock options, restricted stock, and deferred stock-based compensation	670	1,119
Average common shares and common share equivalents	58,372	58,874
Basic earnings per share	$ 0.84	$ 1.81
Diluted earnings per share	0.83	1.78
Dividends declared per share	$ 0.35	$ 0.30

XML

Condensed Consolidated Statements of Comprehensive Income (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Jan. 31, 2019	Jan. 31, 2018
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 48,567	$ 104,555
Components of other comprehensive income:
Foreign currency translation adjustments	16,463	38,582
Amortization of prior service cost and net actuarial losses, net of tax	1,352	1,509
Total other comprehensive income	17,815	40,091
Total comprehensive income	$ 66,382	$ 144,646

XML

Condensed Consolidated Balance Sheets (UNAUDITED) - USD ($) $ in Thousands	Jan. 31, 2019	Oct. 31, 2018
Current assets:
Cash and cash equivalents	$ 85,546	$ 95,678
Receivables - net	463,228	491,423
Inventories - net	271,156	264,477
Prepaid expenses and other current assets	47,271	32,524
Total current assets	867,201	884,102
Property, plant and equipment - net	387,719	386,666
Goodwill	1,611,354	1,608,018
Intangible assets - net	486,342	499,741
Deferred income taxes	11,131	9,780
Other assets	34,000	32,705
Total assets	3,397,747	3,421,012
Current liabilities:
Accounts payable	81,014	83,590
Income taxes payable	15,144	19,319
Accrued liabilities	126,913	175,085
Customer advanced payments	43,018	38,997
Current maturities of long-term debt	53,734	28,734
Current obligations under capital leases	4,674	4,555
Total current liabilities	324,497	350,280
Long-term debt	1,331,392	1,285,357
Deferred income taxes	103,088	100,704
Pension obligations	111,360	113,222
Postretirement obligations	70,547	70,154
Other long-term liabilities	55,322	50,554
Shareholders' equity:
Common shares	12,253	12,253
Capital in excess of stated value	451,930	446,555
Retained earnings	2,521,061	2,488,375
Accumulated other comprehensive loss	(161,499)	(179,314)
Common shares in treasury, at cost	(1,422,204)	(1,317,128)
Total shareholders' equity	1,401,541	1,450,741
Total liabilities and shareholders' equity	$ 3,397,747	$ 3,421,012

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Condensed Consolidated Statements of Cash Flows (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Jan. 31, 2019	Jan. 31, 2018
Cash flows from operating activities:
Net income	$ 48,567	$ 104,555
Depreciation and amortization	27,748	26,285
Non-cash stock compensation	4,359	6,987
Deferred income taxes	(483)	(45,426)
Other non-cash expense	989	(202)
Loss on sale of property, plant and equipment	1,475	748
Changes in operating assets and liabilities	(25,808)	16,331
Net cash provided by operating activities	56,847	109,278
Cash flows from investing activities:
Additions to property, plant and equipment	(14,121)	(16,681)
Proceeds from sale of property, plant and equipment	260	68
Acquisition of businesses, net of cash acquired	(14)	(43,284)
Net cash used in investing activities	(13,875)	(59,897)
Cash flows from financing activities:
Proceeds from short-term borrowings		996
Repayment of short-term borrowings		(1,006)
Proceeds from long-term debt	70,489	32,981
Repayment of long-term debt	(34)	(31,355)
Repayment of capital lease obligations	(1,481)	(1,415)
Issuance of common shares	3,606	10,306
Purchase of treasury shares	(107,667)	(4,989)
Dividends paid	(20,210)	(17,321)
Net cash used in financing activities	(55,297)	(11,803)
Effect of exchange rate changes on cash	2,193	4,881
Increase (decrease) in cash and cash equivalents	(10,132)	42,459
Cash and cash equivalents:
Beginning of year	95,678	90,383
End of period	$ 85,546	$ 132,842

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Significant Accounting Policies

3 Months Ended

Jan. 31, 2019

Accounting Policies [Abstract]

Significant Accounting Policies

1. 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 footnotes 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, 2019 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 footnotes included in our Annual Report on Form 10-K for the year ended October 31, 2018. Certain reclassifications have been made to the prior year financial statements to conform to current year classifications.

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.

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, 2019 were 704. No options were excluded from the calculation of diluted earnings per share for the three months ended January 31, 2018.

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Revenue Recognition

3 Months Ended

Jan. 31, 2019

Revenue From Contract With Customer [Abstract]

Revenue Recognition

2. Revenue recognition

Adoption of new accounting standard:

On November 1, 2018, we adopted ASU 2014-09 (“Topic 606”) using the modified retrospective method applied to those contracts which were not completed as of November 1, 2018. Results for reporting periods beginning after November 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting. The cumulative impact of adopting Topic 606 as of November 1, 2018 did not have a material impact to the Consolidated Financial Statements. The Company does not expect the impact of the adoption of Topic 606 to be material to the Consolidated Financial Statements on an ongoing basis.

Accounting policy:

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 continues to primarily be recognized as of a point in time when the product is shipped or at a later point when the control of the product transfers to the customer. Revenue for undelivered items is deferred and included within Accrued liabilities in our Consolidated Balance Sheets. Revenues deferred in 2019 and 2018 were not material.

However, for certain contracts related to the sale of customer-specific product within our Advanced Technology Systems segment, there was a change in revenue recognition upon adoption of the new revenue standard. Previously, these contracts were recognized at the point in time when the shipping terms were satisfied.  Under the new revenue standard, we now recognize revenue for these contracts 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 November 1, 2018 and January 31, 2019.  Revenue recognized over time is not material to our overall Consolidated Financial Statements.

Revenue is measured as the amount of consideration we expect to receive in exchange for transferring products or services.  Sales, value add, and other taxes we collect concurrently with revenue-producing activities are excluded from revenue.  As a practical expedient, we may exclude the assessment of whether goods or services are performance obligations, if they are immaterial in the context of the contract, and combine these with other performance obligations.  While payment terms and conditions vary by contract type, we have determined that our contracts generally do not include a significant financing component.  We have elected to apply the practical expedient to treat all shipping and handling costs as fulfillment costs as a significant portion of these costs are incurred prior to transfer of control to the customer.  We have also elected to apply the practical expedient to expense sales commissions as they are incurred as the amortization period resulting from capitalizing the costs is one year or less. These costs are recorded within Selling, general and administrative expenses in our Consolidated Statements of Income.

We offer assurance type warranties on our products as well as separately sold warranty contracts.  Revenue related to warranty contracts that are sold separately is recognized over the life of the warranty term. See Note 11 for details on our warranties.

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, 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.  See Note 12 for details on our operating segments.    

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Recently Issued Accounting Standards

3 Months Ended

Jan. 31, 2019

Accounting Changes And Error Corrections [Abstract]

Recently Issued Accounting Standards

3. Recently issued accounting standards

New accounting guidance adopted:

In May 2014, the Financial Accounting Standards Board (“FASB”) issued a new standard regarding revenue recognition.    Under this standard, a company recognizes revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The standard implements a five-step process for customer contract revenue recognition that focuses on transfer of control.  We adopted the standard beginning November 1, 2018 using the modified retrospective method. The modified retrospective method requires a cumulative effect adjustment to be applied retrospectively to all open contracts.  We recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings.  We determined the cumulative effect adjustment did not have a material impact on our Consolidated Financial Statements.  The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. Refer to Note 2 for further details.

In March 2017, the FASB issued a new standard which requires the presentation of the service cost component of the net periodic benefit cost in the same income statement line item as other employee compensation costs arising from services rendered during the period. All other components of net periodic benefit cost will be presented below operating income. Additionally, only the service cost component will be eligible for capitalization in assets.  We adopted the standard beginning November 1, 2018.  The reclassification resulted in an increase in Other expense of $1,627 as a result of an increase in Cost of goods sold of $30 and a decrease in Selling, general & administrative expenses of $1,657 for the three months ended January 31, 2018.

New accounting guidance issued and not yet adopted:

In February 2016, the FASB issued a new standard which requires a lessee to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases with a lease term of more than twelve months. Leases will continue to be classified as either financing or operating, with classification affecting the recognition, measurement and presentation of expenses and cash flows arising from a lease. It will be effective for us beginning November 1, 2019. Early adoption is permitted. We are currently assessing the impact this standard will have on our Consolidated Financial Statements.

In August 2018, the FASB issued a new standard which removes, modifies, and adds certain disclosure requirements on fair value measurements.  The guidance removes disclosure requirements pertaining to the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels, and the valuation processes for Level 3 fair value measurements. For investments in certain entities that calculate net asset value, an entity is required to disclose the timing of liquidation of an investee’s assets and the date when restrictions from redemption might lapse only if the investee has communicated the timing to the entity or announced the timing publicly.  In addition, the amendment clarifies that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date. The guidance adds disclosure requirements for changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period as well as the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements.  It will be effective for us beginning November 1, 2020.  Early adoption is permitted.  We are currently assessing the impact this standard will have on our Consolidated Financial Statements.

In August 2018, the FASB issued a new standard which addresses defined benefit plans.  The amendments modify the following disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans: the amounts in accumulated other comprehensive income expected to be recognized as components of net period benefit cost over the next fiscal year, amount and timing of plan assets expected to be returned to the employer, related party disclosure about the amount of future annual benefits covered by insurance and annuity contracts and significant transactions between the employer or related parties and the plan, and the effects of a one-percentage point change in assumed health care cost trend rates on the (a) aggregate of the service and interest cost components of net periodic benefit costs and (b) benefit obligation for postretirement health care benefits are removed.  A disclosure requirement was added for the explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period.  Additionally, the standard clarifies disclosure requirement surrounding the projected benefit obligation (PBO) and fair value of plan assets for plans with PBOs in excess of plan assets and the accumulated benefit obligation (ABO) and fair value of plan assets for plans with ABOs in excess of plan assets.  It will be effective for us beginning November 1, 2020.  Early adoption is permitted.  We are currently assessing the impact this standard will have on our Consolidated Financial Statements.

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Acquisitions

3 Months Ended

Jan. 31, 2019

Business Combinations [Abstract]

Acquisitions

4. Acquisitions

Business acquisitions have been accounted for using the acquisition method, with the acquired assets and liabilities recorded at estimated fair value on the dates of acquisition. The cost in excess of the net assets of the business acquired is included in goodwill. Operating results since the respective dates of acquisitions are included in the Consolidated Statements of Income.

2018 acquisitions

On October 17, 2018, we purchased 100 percent of the outstanding shares of Cladach Nua Teoranta (“Clada”), a Galway, Ireland designer and developer primarily focused on medical balloons and balloon catheters. Clada’s technologies are used in key applications such as angioplasty and the treatment of vascular disease. We acquired Clada for an aggregate purchase price of $5,236, which included an earn-out liability of $1,131. Based on the fair value of the assets acquired and the liabilities assumed, goodwill of $3,776 and identifiable intangible assets of $697 were recorded. The identifiable intangible assets consist primarily of $58 of customer relationships (amortized over 6 years), $70 of tradenames (amortized over 9 years), $499 of technology (amortized over 7 years) and $70 of non-compete agreements (amortized over 3 years). Goodwill associated with this acquisition is not tax deductible. This acquisition is being reported in our Advanced Technology Systems segment. As of January 31, 2019, the purchase price allocations remain preliminary as we complete our assessments of income taxes and certain reserves.

On January 2, 2018, we purchased 100 percent of the outstanding shares of Sonoscan, Inc. (“Sonoscan”), an Elk Grove Village, Illinois leading designer and manufacturer of acoustic microscopes and sophisticated acoustic micro imaging systems used in a variety of microelectronic, automotive, aerospace and industrial electronic assembly applications. We acquired Sonoscan for an aggregate purchase price of $46,018, net of $655 of cash. Based on the fair value of the assets acquired and the liabilities assumed, goodwill of $22,775 and identifiable intangible assets of $7,910 were recorded. The identifiable intangible assets consist primarily of $1,700 of customer relationships (amortized over 7 years), $3,300 of tradenames (amortized over 11 years), $2,500 of technology (amortized over 7 years) and $410 of non-compete agreements (amortized over 5 years). Goodwill associated with this acquisition is tax deductible. This acquisition is being reported in our Advanced Technology Systems segment. As of January 31, 2019, the purchase price allocations are complete.

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Inventories

3 Months Ended

Jan. 31, 2019

Inventory Disclosure [Abstract]

Inventories

5. Inventories

At January 31, 2019 and October 31, 2018, inventories consisted of the following:

	January 31, 2019			October 31, 2018
Raw materials and component parts	$	99,192		$	112,823
Work-in-process		44,075			47,126
Finished goods		174,596			148,618
		317,863			308,567
Obsolescence and other reserves		(39,771	)		(37,545	)
LIFO reserve		(6,936	)		(6,545	)
	$	271,156		$	264,477

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Goodwill and Other Intangible Assets

3 Months Ended

Jan. 31, 2019

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

6. Goodwill and other intangible assets  

Changes in the carrying amount of goodwill for the three months ended January 31, 2019 by operating segment are as follows:

	Adhesive Dispensing Systems		Advanced Technology Systems		Industrial Coating Systems		Total
Balance at October 31, 2018	$	388,991	$	1,194,969	$	24,058	$	1,608,018
Acquisitions		—		870		—		870
Currency effect		1,377		1,089		—		2,466
Balance at January 31, 2019	$	390,368	$	1,196,928	$	24,058	$	1,611,354

Accumulated impairment losses, which were recorded in 2009, were $232,789 at January 31, 2019 and October 31, 2018.  Of these losses, $229,173 related to the Advanced Technology Systems segment, and $3,616 related to the Industrial Coating Systems segment.

Information regarding our intangible assets subject to amortization is as follows:

	January 31, 2019
	Carrying Amount		Accumulated Amortization		Net Book Value
Customer relationships	$	480,719	$	147,176	$	333,543
Patent/technology costs		154,473		63,156		91,317
Trade name		96,468		36,478		59,990
Non-compete agreements		11,572		10,084		1,488
Other		1,399		1,395		4
Total	$	744,631	$	258,289	$	486,342
	October 31, 2018
	Carrying Amount		Accumulated Amortization		Net Book Value
Customer relationships	$	480,404	$	137,640	$	342,764
Patent/technology costs		153,602		59,845		93,757
Trade name		96,433		34,768		61,665
Non-compete agreements		11,469		9,919		1,550
Other		1,386		1,381		5
Total	$	743,294	$	243,553	$	499,741

Amortization expense for the three months ended January 31, 2019 and 2018 was $13,629 and $13,889, respectively.    

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Pension and Other Postretirement Plans

3 Months Ended

Jan. 31, 2019

Compensation And Retirement Disclosure [Abstract]

Pension and Other Postretirement Plans

7. Pension and other postretirement plans  

The components of net periodic pension cost for the three months ended January 31, 2019 and 2018 were:

	U.S.						International
Three Months Ended	2019			2018			2019			2018
Service cost	$	3,578		$	3,682		$	484		$	497
Interest cost		4,498			3,639			421			423
Expected return on plan assets		(5,804	)		(5,491	)		(400	)		(380	)
Amortization of prior service credit		(15	)		(8	)		(76	)		(80	)
Amortization of net actuarial loss		1,544			2,156			428			529
Total benefit cost	$	3,801		$	3,978		$	857		$	989

The components of other postretirement benefit cost for the three months ended January 31, 2019 and 2018 were:

	U.S.						International
Three Months Ended	2019			2018			2019			2018
Service cost	$	165		$	212		$	4		$	5
Interest cost		749			637			5			5
Amortization of prior service credit		(6	)		(25	)		—			—
Amortization of net actuarial (gain) loss		152			249			(7	)		(5	)
Total benefit cost	$	1,060		$	1,073		$	2		$	5

The components of net periodic pension cost other than service cost are included in Other – net in our Consolidated Statements of Income.

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Income Taxes

3 Months Ended

Jan. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

8. Income taxes

We record our interim provision for income taxes based on our estimated annual effective tax rate, as well as certain items discrete to the current period. The effective tax rates for the three months ended January 31, 2019 and January 31, 2018 was 28.6% and -1.0%, respectively.   The effective tax rate for the current quarterwas higher than the comparable prior year period primarily due to the enacted law commonly referred to as the U.S. Tax Cuts and Jobs Act ("the Act").

On December 22, 2017, the Act was enacted into law which significantly revised U.S. tax law. It reduced the U.S. federal corporate income tax rate from 35% to 21%.  We have an October 31 fiscal year-end, therefore the lower corporate income tax rate was phased in, resulting in a U.S. statutory federal rate of 23.3% for our fiscal year ended October 31, 2018, and 21% for subsequent fiscal years.  The statutory tax rate of 21.0% was applied to earnings in the current quarter.  

Subsequent to the enactment of the Act, the SEC staff issued SAB 118, which provided a measurement period of up to one year after the enactment date for companies to finalize the recognition of the income tax effects of the Act. As of January 31, 2019, our provisional accounting for the effects of the Act are complete. During the period ended January 31, 2018 we provisionally recorded a discrete tax benefit of $22,089.  During the three months ended January 31, 2019, and within the one year measurement period provided by SAB 118, a discrete tax expense of $4,866 was recorded to the provisional amounts recognized in 2018 due to changes in interpretations and assumptions and the finalization of estimates.

In March 2016, the FASB issued a new standard which simplifies the accounting for share-based payment transactions. This guidance required that excess tax benefits and tax deficiencies be recognized as income tax expense or benefit in the Consolidated Statements of Income rather than as additional paid-in capital. As a result, our income tax provision included a discrete tax benefit of $868 and $4,748 for the three months ended January 31, 2019 and 2018, respectively.    

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Accumulated Other Comprehensive Loss

3 Months Ended

Jan. 31, 2019

Equity [Abstract]

Accumulated Other Comprehensive Loss

9. Accumulated other comprehensive loss

The components of accumulated other comprehensive loss, including adjustments for items that are reclassified from accumulated other comprehensive loss to net income, are shown below.

	Cumulative			Pension and			Accumulated
	translation			postretirement benefit			other comprehensive
	adjustments			plan adjustments			loss
Balance at October 31, 2018	$	(57,042	)	$	(122,272	)	$	(179,314	)
Amortization of prior service costs and net    actuarial lossess, net of tax of $(412)		—			1,352			1,352
Foreign currency translation adjustments		16,463			—			16,463
Balance at January 31, 2019	$	(40,579	)	$	(120,920	)	$	(161,499	)

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Stock-Based Compensation

3 Months Ended

Jan. 31, 2019

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-Based Compensation

10. Stock-based compensation

During the 2018 Annual Meeting of Shareholders, our shareholders approved the Amended and Restated 2012 Stock Incentive and Award Plan (the “2012 Plan”). The 2012 Plan provides for the granting of stock options, stock appreciation rights, restricted shares, restricted share units, performance shares, cash awards and other stock or performance-based incentives. A maximum of 4,525 common shares are available for grant under the 2012 Plan.

Stock Options

Nonqualified or incentive stock options may be granted to our employees and directors.  Generally, options granted to employees may be exercised beginning one year from the date of grant at a rate not exceeding 25 percent per year and expire 10 years from the date of grant.  Vesting accelerates upon a qualified termination in connection with a change in control. In the event of termination of employment due to early retirement or normal retirement at age 65, options granted within 12 months prior to termination are forfeited, and vesting continues post retirement for all other unvested options granted.  In the event of disability or death, all unvested stock options granted within 12 months prior to termination (or at any time prior to December 28, 2017) fully vest.  Termination for any other reason results in forfeiture of unvested options and vested options in certain circumstances.  The amortized cost of options is accelerated if the retirement eligibility date occurs before the normal vesting date.  Option exercises are satisfied through the issuance of treasury shares on a first-in, first-out basis.  We recognized compensation expense related to stock options of $2,531 and $2,617 in the three months ended January 31, 2019 and 2018, respectively.    

The following table summarizes activity related to stock options for the three months ended January 31, 2019:

	Number of Options			Weighted-Average Exercise Price Per Share		Aggregate Intrinsic Value		Weighted Average Remaining Term
Outstanding at October 31, 2018		1,885		$	85.33
Granted		348		$	124.89
Exercised		(66	)	$	54.40
Forfeited or expired		(6	)	$	110.74
Outstanding at January 31, 2019		2,161		$	92.58	$	80,095	6.9 years
Vested or expected to vest at January 31, 2019		2,133		$	92.18	$	79,920	6.9 years
Exercisable at January 31, 2019		1,253		$	75.89	$	67,355	5.6 years

As of January 31, 2019, there was $15,833 of total unrecognized compensation cost related to unvested stock options.  That cost is expected to be amortized over a weighted average period of approximately 1.6 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, 2019	January 31, 2018
Expected volatility	24.1%-24.5%	24.0%-26.7%
Expected dividend yield	1.04%	0.97%
Risk-free interest rate	2.84%-2.95%	2.09%-2.20%
Expected life of the option (in years)	5.3-6.2	5.4-6.2

The weighted-average expected volatility used to value the 2019 and 2018 options was 24.3% and 25.0%, 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, 2019 and 2018 was $31.74 and $31.42, respectively.

The total intrinsic value of options exercised during the three months ended January 31, 2019 and 2018 was $4,621 and $18,723, respectively.

Cash received from the exercise of stock options for the three months ended January 31, 2019 and 2018 was $3,606 and $10,306, respectively.

Restricted Shares and Restricted Share Units

We may grant restricted shares and/or restricted share units to our employees and directors.  These shares or units may not be transferred for a designated period of time (generally one to three years) defined at the date of grant.  

For employee recipients, in the event of termination of employment due to early retirement with the consent of the Company, restricted shares granted within 12 months prior to termination are forfeited, and other restricted shares vest on a pro-rata basis.  In the event of termination of employment due to normal retirement at age 65, restricted shares granted within 12 months prior to termination are forfeited, and, for other restricted shares, the restriction period will lapse and the shares will vest and be transferable. For restricted shares granted within 12 months prior to termination (or at any time prior to December 28, 2017), the restrictions lapse in the event of a recipient’s disability or death.  Termination for any other reason prior to the lapse of any restrictions results in forfeiture of the shares.

For non-employee directors, all restrictions lapse in the event of disability or death of the non-employee director.  Termination of service as a director for any other reason within one year of date of grant results in a pro-rata vesting of shares or units.

As shares or units are issued, deferred stock-based compensation equivalent to the fair value on the date of grant is expensed over the vesting period.  

The following table summarizes activity related to restricted shares during the three months ended January 31, 2019:

	Number of Shares			Weighted-Average Grant Date Fair Value
Restricted shares at October 31, 2018		53		$	108.82
Granted		20		$	124.90
Vested		(22	)	$	93.67
Restricted shares at January 31, 2019		51		$	121.55

As of January 31, 2019, there was $4,797 of unrecognized compensation cost related to restricted shares. The cost is expected to be amortized over a weighted average period of 2.1 years.  The amount charged to expense related to restricted shares during the three months ended January 31, 2019 and 2018 was $697 and $754, respectively. These amounts included common share dividends for the three months ended January 31, 2019 and 2018 of $18 and $17, respectively.

The following table summarizes activity related to restricted share units during the three months ended January 31, 2019:

	Number of Units		Weighted-Average Grant Date Fair Value
Restricted share units at October 31, 2018		0	$	—
Granted		8	$	126.83
Restricted share units at January 31, 2019		8	$	126.83

As of January 31, 2019, there was $780 of remaining expense to be recognized related to outstanding restricted share units, which is expected to be recognized over a weighted average period of 0.8 years.  The amount charged to expense related to restricted share units during each of the three months ended January 31, 2019 and 2018 was $263 and $253, 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, 2019:

	Number of Shares		Weighted-Average Grant Date Fair Value
Outstanding at October 31, 2018		107	$	51.24
Dividend equivalents		1	$	120.03
Outstanding at January 31, 2019		108	$	51.44

The amount charged to expense related to director deferred compensation for the three months ended January 31, 2019 and 2018 was $37 and $31, 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 $120.12 for 2019, $123.45 for 2018, and $103.75 and $104.49 per share for 2017.    During the three months ended January 31, 2019 and 2018, $777 and $3,349 was charged to expense, respectively.   The cumulative amount recorded in shareholders’ equity at January 31, 2019 was $8,247.

Deferred Compensation

Our executive officers and other highly compensated employees may elect to defer up to 100% of their base pay and cash incentive and for executive officers, up to 90% of their share-based performance incentive payout each year.  Additional share units are credited for quarterly dividends paid on our common shares. Expense related to dividends paid under this plan for the three months ended January 31, 2019 and 2018 was $72 and $67, respectively.   

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Warranties

3 Months Ended

Jan. 31, 2019

Guarantees [Abstract]

Warranties

11. Warranties

We offer warranties to our customers depending on the specific product and terms of the customer purchase agreement.  A typical warranty program requires that we repair or replace defective products within a specified time period (generally one year) from the date of delivery or first use.  We record an estimate for future warranty-related costs based on actual historical return rates.  Based on analysis of return rates and other factors, the adequacy of our warranty provisions are adjusted as necessary.  The liability for warranty costs is included in Accrued liabilities in the Consolidated Balance Sheet.  

Following is a reconciliation of the product warranty liability for the three months ended January 31, 2019 and 2018:

	January 31, 2019			January 31, 2018
Beginning balance at October 31	$	12,195		$	13,377
Accruals for warranties		1,999			3,231
Warranty payments		(2,499	)		(3,101	)
Currency effect		132			383
Ending balance	$	11,827		$	13,890

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Operating Segments

3 Months Ended

Jan. 31, 2019

Segment Reporting [Abstract]

Operating Segments

12. Operating segments  

We conduct business across three primary business segments:  Adhesive Dispensing Systems, Advanced Technology Systems, and Industrial Coating Systems.  The composition of segments and measure of segment profitability is consistent with that used by our chief operating decision maker.  The primary measure used by the chief operating decision maker for purposes of making decisions about allocating resources to the segments and assessing performance is operating profit, which equals sales less cost of sales and certain operating expenses.  Items below the operating profit line of the Consolidated Statements of Income (interest and investment income, interest expense and other income/expense) are excluded from the measure of segment profitability reviewed by our chief operating decision maker and are not presented by operating segment.  The accounting policies of the segments are the same as those described in Note 1, Significant Accounting Policies, of our annual report on Form 10-K for the year ended October 31, 2018.

The following table presents information about our segments:

	AdhesiveDispensing Systems		AdvancedTechnology Systems		IndustrialCoating Systems		Corporate			Total
Three months ended
January 31, 2019
Net external sales	$	211,517	$	234,458	$	51,935	$	—		$	497,910
Operating profit (loss)		47,892		40,785		7,516		(11,912	)		84,281
Three months ended
January 31, 2018
Net external sales	$	220,864	$	271,701	$	57,859	$	—		$	550,424
Operating profit (loss)(1)		53,990		67,493		10,545		(12,678	)		119,350

⁽¹⁾ Results for the three months ended January 31, 2018 have been revised to reflect the retrospective adoption of Accounting Standards Update No. 2017-07, Compensation — Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Cost ("ASU 2017-07"). Refer to Note 3 for details.

A reconciliation of total segment operating income to total consolidated income before income taxes is as follows:

	Three Months Ended
	January 31, 2019			January 31, 2018
Total profit for reportable segments	$	84,281		$	119,350
Interest expense		(12,365	)		(11,317	)
Interest and investment income		316			289
Other-net		(4,189	)		(4,804	)
Income before income taxes	$	68,043		$	103,518

We have significant sales in the following geographic regions:

	Three Months Ended
	January 31, 2019		January 31, 2018
United States	$	170,350	$	165,831
Americas		32,437		34,279
Europe		132,675		141,938
Japan		29,047		65,869
Asia Pacific		133,401		142,507
Total net external sales	$	497,910	$	550,424

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Fair Value Measurements

3 Months Ended

Jan. 31, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements

13. 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, 2019	Total		Level 1		Level 2		Level 3
Assets:
Foreign currency forward contracts (a)	$	3,638	$	—	$	3,638	$	—
Total assets at fair value	$	3,638	$	—	$	3,638	$	—
Liabilities:
Deferred compensation plans (b)	$	12,019	$	—	$	12,019	$	—
Foreign currency forward contracts (a)		2,319		—		2,319		—
Total liabilities at fair value	$	14,338	$	—	$	14,338	$	—

January 31, 2018	Total		Level 1		Level 2		Level 3
Assets:
Foreign currency forward contracts (a)	$	4,640	$	—	$	4,640	$	—
Total assets at fair value	$	4,640	$	—	$	4,640	$	—
Liabilities:
Deferred compensation plans (b)	$	12,774	$	—	$	12,774	$	—
Foreign currency forward contracts (a)		5,314		—		5,314		—
Total liabilities at fair value	$	18,088	$	—	$	18,088	$	—

(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.

	2019
	Carrying Amount		Fair Value
Long-term debt (including current portion)		1,385,126		1,377,373

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.

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Derivative Financial Instruments

3 Months Ended

Jan. 31, 2019

Investments All Other Investments [Abstract]

Derivative Financial Instruments

14. Derivative financial instruments  

We operate internationally and enter into intercompany transactions denominated in foreign currencies. Consequently, we are subject to market risk arising from exchange rate movements between the dates foreign currency transactions occur and the dates they are settled. We regularly use foreign currency forward contracts to reduce our risks related to most of these transactions. These contracts usually have maturities of 90 days or less and generally require us to exchange foreign currencies for U.S. dollars at maturity, at rates stated in the contracts. These contracts are not designated as hedging instruments under U.S. GAAP. Accordingly, the changes in the fair value of the foreign currency forward contracts are recognized in each accounting period in “Other – net” on the Consolidated Statements of Income together with the transaction gain or loss from the related balance sheet position. For the three months ended January 31, 2019, we recognized net gains of $1,030 on foreign currency forward contracts and net losses of $2,003 from the change in fair value of balance sheet positions. For the three months ended January 31, 2018, we recognized losses of $964 on foreign currency forward contracts and net losses of $982 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, 2019 and 2018:

	Notional Amounts
January 31, 2019 contract amounts:	Sell		Buy
Euro	$	335,775	$	204,537
British pound		24,348		66,809
Japanese yen		28,009		47,997
Australian dollar		786		8,012
Hong Kong dollar		—		121,578
Singapore dollar		858		15,115
Others		5,619		61,312
Total	$	395,395	$	525,360
	Notional Amounts
January 31, 2018 contract amounts:	Sell		Buy
Euro	$	151,860	$	82,214
British pound		42,565		54,821
Japanese yen		55,161		25,348
Australian dollar		559		7,874
Hong Kong dollar		—		107,854
Singapore dollar		975		12,738
Others		6,626		52,464
Total	$	257,746	$	343,313

We are exposed to credit-related losses in the event of nonperformance by counterparties to financial instruments. These financial instruments include cash deposits and foreign currency forward contracts. We periodically monitor the credit ratings of these counterparties in order to minimize our exposure. Our customers represent a wide variety of industries and geographic regions. For the three months ended January 31, 2019 and 2018, there were no significant concentrations of credit risk.

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Long-Term Debt

3 Months Ended

Jan. 31, 2019

Debt Disclosure [Abstract]

Long-Term Debt

15. Long-term debt

A summary of long-term debt is as follows:

	January 31, 2019		October 31, 2018
Revolving credit agreement, due 2020	$	122,700	$	52,200
Senior notes, due 2019-2025		156,700		156,700
Senior notes, due 2019-2027		100,000		100,000
Senior notes, due 2023-2030		350,000		350,000
Term loan, due 2019-2022		605,000		605,000
Euro loan, due 2021		17,172		16,967
Private shelf facility, due 2020		36,111		36,111
Development loans, due 2019-2026		1,053		1,086
		1,388,736		1,318,064
Less current maturities		53,734		28,734
Less unamortized debt issuance costs		3,610		3,973
Long-term maturities	$	1,331,392	$	1,285,357

In October 2018, we entered into a €150,000 agreement with Bank of America Merrill Lynch International Limited.  The interest rate is variable based on the EUR LIBOR rate.  The weighted average interest rate at January 31, 2019 was 0.88 %.  At January 31, 2019, the balance outstanding was €15,000 $(17,172).  We were in compliance with all covenants at January 31, 2019.

In June 2018, we entered into a Note Purchase Agreement with a group of insurance companies under which we sold $350,000 of Senior Notes to the insurance companies and their affiliates. The notes start to mature in June 2023 and mature through June 2030 and bear interest at fixed rates between 3.71% and 4.17%.   We used the proceeds from the sale of the notes to repay approximately $315,000 of the outstanding balance under our existing syndicated revolving credit facility at that time, and the reminder for general corporate purposes.  We were in compliance with all covenants at January 31, 2019.

In March 2017, we entered into a $705,000 term loan facility with a group of banks. The Term Loan Agreement initially provided for the following term loans in three tranches: $200,000 due in October 2018, $200,000 due in March 2020, and $305,000 due in March 2022.  In May 2018, we entered into a Second Amendment to our $705,000 term loan facility to extend the maturity due date of the first $200,000 tranche from October 2018 to October 2021.  In October 2018, we paid down $100,000 of the portion due in March 2020.  The weighted average interest rate for borrowings under this agreement was 3.42% at January 31, 2019. Borrowings under this agreement were used for the single purpose of acquiring Vention during the second quarter of 2017. We were in compliance with all covenants at January 31, 2019.

In February 2015, we increased, amended and extended our existing syndicated revolving credit agreement that was scheduled to expire in December 2016. We entered into a $600,000 unsecured, multicurrency credit facility with a group of banks.  This facility has a five-year term and includes a $50,000 subfacility for swing-line loans and was increased to $850,000 in June 2018.  It expires in February 2020. Balances outstanding under the prior facility were transferred to the new facility. At January 31, 2019, $122,700 was outstanding under this facility, compared to $52,200 outstanding at October 31, 2018. We were in compliance with all covenants at January 31, 2019, and the amount we could borrow under the facility would not have been limited by any debt covenants.

We entered into a $150,000 three-year Note Purchase and Private Shelf agreement with New York Life Investment Management LLC in 2011.  In 2015, the amount of the facility was increased to $180,000, and in 2016 it was increased to $200,000. Notes issued under the agreement may have a maturity of up to 12 years, with an average life of up to 10 years, and are unsecured.  The interest rate on each note can be fixed or floating and is based upon the market rate at the borrowing date.  At January 31, 2019 and October 31, 2018, there was $36,111 outstanding under this facility. Existing notes mature between January 2020 and September 2020.  The interest rate on each borrowing is fixed based on the market rate at the borrowing date or is variable based upon the LIBOR rate.  At January 31, 2019, the amount outstanding under this facility bears interest at fixed rates between 2.21% and 2.56%.  This agreement contains customary events of default and covenants related to limitations on indebtedness and the maintenance of certain financial ratios.  We were in compliance with all covenants at January 31, 2019, and the amount we could borrow would not have been limited by any debt covenants. 

In 2012, we entered into a Note Purchase Agreement with a group of insurance companies under which we sold $200,000 of Senior Notes.  At January 31, 2019 and October 31, 2018, $156,700 was outstanding under this agreement. Existing notes mature between July 2019 and July 2025 and bear interest at fixed rates between 2.62% and 3.13%.  We were in compliance with all covenants at January 31, 2019.

In July 2015, we entered into a Note Purchase Agreement under which $100,000 of Senior Unsecured Notes were purchased primarily by a group of insurance companies.  The notes start to mature in July 2019 and mature through July 2027 and bear interest at fixed rates of 2.89% and 3.19%.  We were in compliance with all covenants at January 31, 2019.  

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Significant Accounting Policies (Policies)

3 Months Ended

Jan. 31, 2019

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 footnotes 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, 2019 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 footnotes included in our Annual Report on Form 10-K for the year ended October 31, 2018. Certain reclassifications have been made to the prior year financial statements to conform to current year classifications.

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.

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, 2019 were 704. No options were excluded from the calculation of diluted earnings per share for the three months ended January 31, 2018.

Revenue Recognition

Revenue recognition

Adoption of new accounting standard:

On November 1, 2018, we adopted ASU 2014-09 (“Topic 606”) using the modified retrospective method applied to those contracts which were not completed as of November 1, 2018. Results for reporting periods beginning after November 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting. The cumulative impact of adopting Topic 606 as of November 1, 2018 did not have a material impact to the Consolidated Financial Statements. The Company does not expect the impact of the adoption of Topic 606 to be material to the Consolidated Financial Statements on an ongoing basis.

Accounting policy:

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 continues to primarily be recognized as of a point in time when the product is shipped or at a later point when the control of the product transfers to the customer. Revenue for undelivered items is deferred and included within Accrued liabilities in our Consolidated Balance Sheets. Revenues deferred in 2019 and 2018 were not material.

However, for certain contracts related to the sale of customer-specific product within our Advanced Technology Systems segment, there was a change in revenue recognition upon adoption of the new revenue standard. Previously, these contracts were recognized at the point in time when the shipping terms were satisfied.  Under the new revenue standard, we now recognize revenue for these contracts 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 November 1, 2018 and January 31, 2019.  Revenue recognized over time is not material to our overall Consolidated Financial Statements.

Revenue is measured as the amount of consideration we expect to receive in exchange for transferring products or services.  Sales, value add, and other taxes we collect concurrently with revenue-producing activities are excluded from revenue.  As a practical expedient, we may exclude the assessment of whether goods or services are performance obligations, if they are immaterial in the context of the contract, and combine these with other performance obligations.  While payment terms and conditions vary by contract type, we have determined that our contracts generally do not include a significant financing component.  We have elected to apply the practical expedient to treat all shipping and handling costs as fulfillment costs as a significant portion of these costs are incurred prior to transfer of control to the customer.  We have also elected to apply the practical expedient to expense sales commissions as they are incurred as the amortization period resulting from capitalizing the costs is one year or less. These costs are recorded within Selling, general and administrative expenses in our Consolidated Statements of Income.

We offer assurance type warranties on our products as well as separately sold warranty contracts.  Revenue related to warranty contracts that are sold separately is recognized over the life of the warranty term. See Note 11 for details on our warranties.

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, 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.  See Note 12 for details on our operating segments.    

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Inventories (Tables)

3 Months Ended

Jan. 31, 2019

Inventory Disclosure [Abstract]

Schedule of Inventories

At January 31, 2019 and October 31, 2018, inventories consisted of the following:

	January 31, 2019			October 31, 2018
Raw materials and component parts	$	99,192		$	112,823
Work-in-process		44,075			47,126
Finished goods		174,596			148,618
		317,863			308,567
Obsolescence and other reserves		(39,771	)		(37,545	)
LIFO reserve		(6,936	)		(6,545	)
	$	271,156		$	264,477

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Goodwill and Other Intangible Assets (Tables)

3 Months Ended

Jan. 31, 2019

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, 2019 by operating segment are as follows:

	Adhesive Dispensing Systems		Advanced Technology Systems		Industrial Coating Systems		Total
Balance at October 31, 2018	$	388,991	$	1,194,969	$	24,058	$	1,608,018
Acquisitions		—		870		—		870
Currency effect		1,377		1,089		—		2,466
Balance at January 31, 2019	$	390,368	$	1,196,928	$	24,058	$	1,611,354

Summary of Intangible Assets Subject to Amortization

Information regarding our intangible assets subject to amortization is as follows:

	January 31, 2019
	Carrying Amount		Accumulated Amortization		Net Book Value
Customer relationships	$	480,719	$	147,176	$	333,543
Patent/technology costs		154,473		63,156		91,317
Trade name		96,468		36,478		59,990
Non-compete agreements		11,572		10,084		1,488
Other		1,399		1,395		4
Total	$	744,631	$	258,289	$	486,342
	October 31, 2018
	Carrying Amount		Accumulated Amortization		Net Book Value
Customer relationships	$	480,404	$	137,640	$	342,764
Patent/technology costs		153,602		59,845		93,757
Trade name		96,433		34,768		61,665
Non-compete agreements		11,469		9,919		1,550
Other		1,386		1,381		5
Total	$	743,294	$	243,553	$	499,741

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Pension and Other Postretirement Plans (Tables)

3 Months Ended

Jan. 31, 2019

Pension Cost [Member]

Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]

Components of Net Periodic Benefits Cost

The components of net periodic pension cost for the three months ended January 31, 2019 and 2018 were:

	U.S.						International
Three Months Ended	2019			2018			2019			2018
Service cost	$	3,578		$	3,682		$	484		$	497
Interest cost		4,498			3,639			421			423
Expected return on plan assets		(5,804	)		(5,491	)		(400	)		(380	)
Amortization of prior service credit		(15	)		(8	)		(76	)		(80	)
Amortization of net actuarial loss		1,544			2,156			428			529
Total benefit cost	$	3,801		$	3,978		$	857		$	989

Postretirement Benefit Costs [Member]

Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]

Components of Net Periodic Benefits Cost

The components of other postretirement benefit cost for the three months ended January 31, 2019 and 2018 were:

	U.S.						International
Three Months Ended	2019			2018			2019			2018
Service cost	$	165		$	212		$	4		$	5
Interest cost		749			637			5			5
Amortization of prior service credit		(6	)		(25	)		—			—
Amortization of net actuarial (gain) loss		152			249			(7	)		(5	)
Total benefit cost	$	1,060		$	1,073		$	2		$	5

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Accumulated Other Comprehensive Loss (Tables)

3 Months Ended

Jan. 31, 2019

Equity [Abstract]

Summary of Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss, including adjustments for items that are reclassified from accumulated other comprehensive loss to net income, are shown below.

	Cumulative			Pension and			Accumulated
	translation			postretirement benefit			other comprehensive
	adjustments			plan adjustments			loss
Balance at October 31, 2018	$	(57,042	)	$	(122,272	)	$	(179,314	)
Amortization of prior service costs and net    actuarial lossess, net of tax of $(412)		—			1,352			1,352
Foreign currency translation adjustments		16,463			—			16,463
Balance at January 31, 2019	$	(40,579	)	$	(120,920	)	$	(161,499	)

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Stock-Based Compensation (Tables)

3 Months Ended

Jan. 31, 2019

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Summarized Activity Related to Stock Options

The following table summarizes activity related to stock options for the three months ended January 31, 2019:

	Number of Options			Weighted-Average Exercise Price Per Share		Aggregate Intrinsic Value		Weighted Average Remaining Term
Outstanding at October 31, 2018		1,885		$	85.33
Granted		348		$	124.89
Exercised		(66	)	$	54.40
Forfeited or expired		(6	)	$	110.74
Outstanding at January 31, 2019		2,161		$	92.58	$	80,095	6.9 years
Vested or expected to vest at January 31, 2019		2,133		$	92.18	$	79,920	6.9 years
Exercisable at January 31, 2019		1,253		$	75.89	$	67,355	5.6 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, 2019	January 31, 2018
Expected volatility	24.1%-24.5%	24.0%-26.7%
Expected dividend yield	1.04%	0.97%
Risk-free interest rate	2.84%-2.95%	2.09%-2.20%
Expected life of the option (in years)	5.3-6.2	5.4-6.2

Summarized Activity Related to Restricted Stock

The following table summarizes activity related to restricted shares during the three months ended January 31, 2019:

	Number of Shares			Weighted-Average Grant Date Fair Value
Restricted shares at October 31, 2018		53		$	108.82
Granted		20		$	124.90
Vested		(22	)	$	93.67
Restricted shares at January 31, 2019		51		$	121.55

Summarized Activity Related to Restricted Stock Units

The following table summarizes activity related to restricted share units during the three months ended January 31, 2019:

	Number of Units		Weighted-Average Grant Date Fair Value
Restricted share units at October 31, 2018		0	$	—
Granted		8	$	126.83
Restricted share units at January 31, 2019		8	$	126.83

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, 2019:

	Number of Shares		Weighted-Average Grant Date Fair Value
Outstanding at October 31, 2018		107	$	51.24
Dividend equivalents		1	$	120.03
Outstanding at January 31, 2019		108	$	51.44

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Warranties (Tables)

3 Months Ended

Jan. 31, 2019

Guarantees [Abstract]

Reconciliation of Product Warranty Liability

Following is a reconciliation of the product warranty liability for the three months ended January 31, 2019 and 2018:

	January 31, 2019			January 31, 2018
Beginning balance at October 31	$	12,195		$	13,377
Accruals for warranties		1,999			3,231
Warranty payments		(2,499	)		(3,101	)
Currency effect		132			383
Ending balance	$	11,827		$	13,890

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Operating Segments (Tables)

3 Months Ended

Jan. 31, 2019

Segment Reporting [Abstract]

Segments

The following table presents information about our segments:

	AdhesiveDispensing Systems		AdvancedTechnology Systems		IndustrialCoating Systems		Corporate			Total
Three months ended
January 31, 2019
Net external sales	$	211,517	$	234,458	$	51,935	$	—		$	497,910
Operating profit (loss)		47,892		40,785		7,516		(11,912	)		84,281
Three months ended
January 31, 2018
Net external sales	$	220,864	$	271,701	$	57,859	$	—		$	550,424
Operating profit (loss)(1)		53,990		67,493		10,545		(12,678	)		119,350

⁽¹⁾ Results for the three months ended January 31, 2018 have been revised to reflect the retrospective adoption of Accounting Standards Update No. 2017-07, Compensation — Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Cost ("ASU 2017-07"). Refer to Note 3 for details.

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, 2019			January 31, 2018
Total profit for reportable segments	$	84,281		$	119,350
Interest expense		(12,365	)		(11,317	)
Interest and investment income		316			289
Other-net		(4,189	)		(4,804	)
Income before income taxes	$	68,043		$	103,518

Sales and Long-lived Asset Information by Geographic Regions

We have significant sales in the following geographic regions:

	Three Months Ended
	January 31, 2019		January 31, 2018
United States	$	170,350	$	165,831
Americas		32,437		34,279
Europe		132,675		141,938
Japan		29,047		65,869
Asia Pacific		133,401		142,507
Total net external sales	$	497,910	$	550,424

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Fair Value Measurements (Tables)

3 Months Ended

Jan. 31, 2019

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, 2019	Total		Level 1		Level 2		Level 3
Assets:
Foreign currency forward contracts (a)	$	3,638	$	—	$	3,638	$	—
Total assets at fair value	$	3,638	$	—	$	3,638	$	—
Liabilities:
Deferred compensation plans (b)	$	12,019	$	—	$	12,019	$	—
Foreign currency forward contracts (a)		2,319		—		2,319		—
Total liabilities at fair value	$	14,338	$	—	$	14,338	$	—

January 31, 2018	Total		Level 1		Level 2		Level 3
Assets:
Foreign currency forward contracts (a)	$	4,640	$	—	$	4,640	$	—
Total assets at fair value	$	4,640	$	—	$	4,640	$	—
Liabilities:
Deferred compensation plans (b)	$	12,774	$	—	$	12,774	$	—
Foreign currency forward contracts (a)		5,314		—		5,314		—
Total liabilities at fair value	$	18,088	$	—	$	18,088	$	—

(a) We enter into foreign currency forward contracts to reduce the risk of foreign currency exposures resulting from receivables, payables, intercompany receivables, intercompany payables and loans denominated in foreign currencies. Foreign exchange contracts are valued using market exchange rates. These foreign exchange contracts are not designated as hedges.

(b) Executive officers and other highly compensated employees may defer up to 100 percent of their salary and annual cash incentive compensation and for executive officers, up to 90 percent of their long-term incentive compensation, into various non-qualified deferred compensation plans. Deferrals can be allocated to various market performance measurement funds. Changes in the value of compensation deferred under these plans are recognized each period based on the fair value of the underlying measurement funds.

Carrying Amounts and Fair Values of Financial Instruments, Other than Cash and Cash Equivalents, Receivables and Accounts Payable

The carrying values of cash and cash equivalents, receivables and accounts payable approximate fair value due to the short-term nature of these instruments.

	2019
	Carrying Amount		Fair Value
Long-term debt (including current portion)		1,385,126		1,377,373

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Derivative Financial Instruments (Tables)

3 Months Ended

Jan. 31, 2019

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, 2019 and 2018:

	Notional Amounts
January 31, 2019 contract amounts:	Sell		Buy
Euro	$	335,775	$	204,537
British pound		24,348		66,809
Japanese yen		28,009		47,997
Australian dollar		786		8,012
Hong Kong dollar		—		121,578
Singapore dollar		858		15,115
Others		5,619		61,312
Total	$	395,395	$	525,360
	Notional Amounts
January 31, 2018 contract amounts:	Sell		Buy
Euro	$	151,860	$	82,214
British pound		42,565		54,821
Japanese yen		55,161		25,348
Australian dollar		559		7,874
Hong Kong dollar		—		107,854
Singapore dollar		975		12,738
Others		6,626		52,464
Total	$	257,746	$	343,313

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Long-Term Debt (Tables)

3 Months Ended

Jan. 31, 2019

Debt Disclosure [Abstract]

Long-Term Debt

A summary of long-term debt is as follows:

	January 31, 2019		October 31, 2018
Revolving credit agreement, due 2020	$	122,700	$	52,200
Senior notes, due 2019-2025		156,700		156,700
Senior notes, due 2019-2027		100,000		100,000
Senior notes, due 2023-2030		350,000		350,000
Term loan, due 2019-2022		605,000		605,000
Euro loan, due 2021		17,172		16,967
Private shelf facility, due 2020		36,111		36,111
Development loans, due 2019-2026		1,053		1,086
		1,388,736		1,318,064
Less current maturities		53,734		28,734
Less unamortized debt issuance costs		3,610		3,973
Long-term maturities	$	1,331,392	$	1,285,357

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Significant Accounting Policies - Additional Information (Detail) - shares	3 Months Ended
	Jan. 31, 2019	Jan. 31, 2018
Significant Accounting Policies [Line Items]
Ownership percentage in affiliates and joint ventures	50.00%
Stock Options [Member]
Significant Accounting Policies [Line Items]
Options for common shares excluded from computation of diluted earning per share	704,000	0

XML

Recently Issued Accounting Standards - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Jan. 31, 2018	Aug. 31, 2018
New Accounting Guidance Issued and Not Yet Adopted [Member]
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Defined benefit plan effect of percentage change in assumed health care cost trend rates		1.00%
Other Expense [Member] | Accounting Standards Update 2017-07 [Member]
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Reclassification due to change in accounting principles	$ 1,627
Cost of Goods Sold [Member] | Accounting Standards Update 2017-07 [Member]
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Reclassification due to change in accounting principles	30
Selling, General and Administrative Expenses [Member] | Accounting Standards Update 2017-07 [Member]
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Reclassification due to change in accounting principles	$ (1,657)

XML

Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands			3 Months Ended
	Oct. 17, 2018	Jan. 02, 2018	Jan. 31, 2019	Jan. 31, 2018	Oct. 31, 2018
Business Acquisition [Line Items]
Acquisition of businesses, net of cash acquired			$ 14	$ 43,284
Goodwill			$ 1,611,354		$ 1,608,018
Cladach Nua Teoranta [Member] | 2018 Acquisition [Member]
Business Acquisition [Line Items]
Acquired percent of the outstanding shares	100.00%
Acquisition of businesses, net of cash acquired	$ 5,236
Acquisition of business, earn-out liability	1,131
Goodwill	3,776
Identifiable intangible assets	697
Cladach Nua Teoranta [Member] | Customer Relationships [Member] | 2018 Acquisition [Member]
Business Acquisition [Line Items]
Identifiable intangible assets	$ 58
Intangible assets amortization period	6 years
Cladach Nua Teoranta [Member] | Trade Names [Member] | 2018 Acquisition [Member]
Business Acquisition [Line Items]
Identifiable intangible assets	$ 70
Intangible assets amortization period	9 years
Cladach Nua Teoranta [Member] | Technology-Based Intangible Assets [Member] | 2018 Acquisition [Member]
Business Acquisition [Line Items]
Identifiable intangible assets	$ 499
Intangible assets amortization period	7 years
Cladach Nua Teoranta [Member] | Non-compete Agreements [Member] | 2018 Acquisition [Member]
Business Acquisition [Line Items]
Identifiable intangible assets	$ 70
Intangible assets amortization period	3 years
Sonoscan, Inc. [Member] | 2018 Acquisition [Member]
Business Acquisition [Line Items]
Acquired percent of the outstanding shares		100.00%
Acquisition of businesses, net of cash acquired		$ 46,018
Goodwill		22,775
Identifiable intangible assets		7,910
Cash acquired from business acquisition		655
Sonoscan, Inc. [Member] | Customer Relationships [Member] | 2018 Acquisition [Member]
Business Acquisition [Line Items]
Identifiable intangible assets		$ 1,700
Intangible assets amortization period		7 years
Sonoscan, Inc. [Member] | Trade Names [Member] | 2018 Acquisition [Member]
Business Acquisition [Line Items]
Identifiable intangible assets		$ 3,300
Intangible assets amortization period		11 years
Sonoscan, Inc. [Member] | Technology-Based Intangible Assets [Member] | 2018 Acquisition [Member]
Business Acquisition [Line Items]
Identifiable intangible assets		$ 2,500
Intangible assets amortization period		7 years
Sonoscan, Inc. [Member] | Non-compete Agreements [Member] | 2018 Acquisition [Member]
Business Acquisition [Line Items]
Identifiable intangible assets		$ 410
Intangible assets amortization period		5 years

XML

Inventories - Schedule of Inventories (Detail) - USD ($) $ in Thousands	Jan. 31, 2019	Oct. 31, 2018
Inventory Disclosure [Abstract]
Raw materials and component parts	$ 99,192	$ 112,823
Work-in-process	44,075	47,126
Finished goods	174,596	148,618
Inventories - gross	317,863	308,567
Obsolescence and other reserves	(39,771)	(37,545)
LIFO reserve	(6,936)	(6,545)
Inventories - net	$ 271,156	$ 264,477

XML

Goodwill and Other Intangible Assets - Summary of Changes in Carrying Amount of Goodwill (Detail) $ in Thousands	3 Months Ended
	Jan. 31, 2019 USD ($)
Goodwill [Line Items]
Beginning balance	$ 1,608,018
Acquisitions	870
Currency effect	2,466
Ending balance	1,611,354
Adhesive Dispensing Systems [Member]
Goodwill [Line Items]
Beginning balance	388,991
Currency effect	1,377
Ending balance	390,368
Advanced Technology Systems [Member]
Goodwill [Line Items]
Beginning balance	1,194,969
Acquisitions	870
Currency effect	1,089
Ending balance	1,196,928
Industrial Coating Systems [Member]
Goodwill [Line Items]
Beginning balance	24,058
Ending balance	$ 24,058

XML

Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Jan. 31, 2019	Jan. 31, 2018	Oct. 31, 2018
Goodwill [Line Items]
Goodwill accumulated impairment loss	$ 232,789		$ 232,789
Intangible assets, amortization expense	13,629	$ 13,889
Advanced Technology Systems [Member]
Goodwill [Line Items]
Goodwill accumulated impairment loss	229,173		229,173
Industrial Coating Systems [Member]
Goodwill [Line Items]
Goodwill accumulated impairment loss	$ 3,616		$ 3,616

XML

Goodwill and Other Intangible Assets - Summary of Intangible Assets Subject to Amortization (Detail) - USD ($) $ in Thousands	Jan. 31, 2019	Oct. 31, 2018
Finite Lived Intangible Assets [Line Items]
Carrying Amount	$ 744,631	$ 743,294
Accumulated Amortization	258,289	243,553
Net Book Value	486,342	499,741
Customer Relationships [Member]
Finite Lived Intangible Assets [Line Items]
Carrying Amount	480,719	480,404
Accumulated Amortization	147,176	137,640
Net Book Value	333,543	342,764
Patent/Technology Costs [Member]
Finite Lived Intangible Assets [Line Items]
Carrying Amount	154,473	153,602
Accumulated Amortization	63,156	59,845
Net Book Value	91,317	93,757
Trade Names [Member]
Finite Lived Intangible Assets [Line Items]
Carrying Amount	96,468	96,433
Accumulated Amortization	36,478	34,768
Net Book Value	59,990	61,665
Non-compete Agreements [Member]
Finite Lived Intangible Assets [Line Items]
Carrying Amount	11,572	11,469
Accumulated Amortization	10,084	9,919
Net Book Value	1,488	1,550
Other [Member]
Finite Lived Intangible Assets [Line Items]
Carrying Amount	1,399	1,386
Accumulated Amortization	1,395	1,381
Net Book Value	$ 4	$ 5

XML

Pension and Other Postretirement Plans - Net Periodic Benefit Cost (Detail) - Pension Plans [Member] - USD ($) $ in Thousands	3 Months Ended
	Jan. 31, 2019	Jan. 31, 2018
United States [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 3,578	$ 3,682
Interest cost	4,498	3,639
Expected return on plan assets	(5,804)	(5,491)
Amortization of prior service credit	(15)	(8)
Amortization of net actuarial loss	1,544	2,156
Total benefit cost	3,801	3,978
International [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	484	497
Interest cost	421	423
Expected return on plan assets	(400)	(380)
Amortization of prior service credit	(76)	(80)
Amortization of net actuarial loss	428	529
Total benefit cost	$ 857	$ 989

XML

Pension and Other Postretirement Plans - Other Postretirement Benefit Cost (Detail) - Postretirement Benefit Costs [Member] - USD ($) $ in Thousands	3 Months Ended
	Jan. 31, 2019	Jan. 31, 2018
United States [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 165	$ 212
Interest cost	749	637
Amortization of prior service credit	(6)	(25)
Amortization of net actuarial (gain) loss	152	249
Total benefit cost	1,060	1,073
International [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	4	5
Interest cost	5	5
Amortization of net actuarial (gain) loss	(7)	(5)
Total benefit cost	$ 2	$ 5

XML

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	2 Months Ended	3 Months Ended		12 Months Ended
	Dec. 31, 2017	Jan. 31, 2019	Jan. 31, 2018	Oct. 31, 2018
Income Tax [Line Items]
Effective tax rates		28.60%	(1.00%)
U.S. federal corporate income tax rate	35.00%	21.00%		23.30%
Provisional discrete tax (benefit) expense		$ 4,866	$ (22,089)
Discrete tax benefit		$ 868	$ 4,748
Maximum [Member]
Income Tax [Line Items]
Measurement period		1 year

XML

Accumulated Other Comprehensive Loss - Summary of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands	3 Months Ended
	Jan. 31, 2019	Jan. 31, 2018
Accumulated Other Comprehensive Income Loss [Line Items]
Accumulated other comprehensive income (loss), Beginning balance	$ (179,314)
Amortization of prior service cost and net actuarial losses, net of tax	1,352	$ 1,509
Foreign currency translation adjustments	16,463	$ 38,582
Accumulated other comprehensive loss, Ending balance	(161,499)
Cumulative Translation Adjustments [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Accumulated other comprehensive income (loss), Beginning balance	(57,042)
Foreign currency translation adjustments	16,463
Accumulated other comprehensive loss, Ending balance	(40,579)
Pension And Postretirement Benefit Plan Adjustments [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Accumulated other comprehensive income (loss), Beginning balance	(122,272)
Amortization of prior service cost and net actuarial losses, net of tax	1,352
Accumulated other comprehensive loss, Ending balance	$ (120,920)

XML

Accumulated Other Comprehensive Loss - Summary of Accumulated Other Comprehensive Loss (Parenthetical) (Detail) $ in Thousands	3 Months Ended
	Jan. 31, 2019 USD ($)
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract]
Amortization of prior service costs and net actuarial lossess, tax	$ 412

XML

Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Jan. 31, 2019	Jan. 31, 2018	Jan. 31, 2017
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Maximum number of common shares available for grant	4,525
Executive officers and other highly compensated employees salary and annual cash incentive compensation deferrals percentage, maximum	100.00%
Executive officers share-based long-term incentive compensation deferrals percentage, maximum	90.00%
Directors [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expense related to director deferred compensation	$ 37	$ 31
Stock Options [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Maximum rate of stock option, description	Not exceeding 25 percent per year
Option expiring period	10 years
Compensation expense recognized	$ 2,531	$ 2,617
Options exercisable beginning period	1 year
Normal retirement age	65 years
Period for options considered to be forfeited for retirees	12 months
Termination period on death or disability of option holder	12 months
Options grants in period vesting period	Dec. 28, 2017
Unrecognized compensation cost related to unvested stock option	$ 15,833
Weighted average period expected to be amortized, non vested shares	1 year 7 months 6 days
Weighted-average expected volatility used	24.30%	25.00%
Weighted average grant date fair value of stock options granted	$ 31.74	$ 31.42
Total intrinsic value of options exercised	$ 4,621	$ 18,723
Cash received from the exercise of stock options	$ 3,606	10,306
Stock Options [Member] | Maximum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Maximum rate of stock option	25.00%
Restricted Shares and Restricted Share Units [Member] | Maximum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Grant restricted shares transferred period	3 years
Restricted Shares and Restricted Share Units [Member] | Minimum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Grant restricted shares transferred period	1 year
Restricted Stock [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Normal retirement age	65 years
Weighted average period expected to be amortized, non vested shares	2 years 1 month 6 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	$ 4,797
Expense related to nonvested common shares	697	754
Common share dividends amount included in compensation cost	$ 18	17
Restricted Stock Unit [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted average period expected to be amortized, non vested shares	9 months 18 days
Period for pro-rata vesting of shares or units for non-employee directors	1 year
Unrecognized compensation cost related to nonvested restricted stock	$ 780
Expense related to nonvested common shares	$ 263	$ 253
Performance Share Incentive Awards [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted average grant date fair value	$ 120.12	$ 123.45
Compensation expense	$ 777	$ 3,349
Cumulative amount recorded in shareholders' equity related to Long-Term Incentive Plan	$ 8,247
Periods of performance considered for calculating compensation expense	3 years
Performance Share Incentive Awards [Member] | November 28, 2016 [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted average grant date fair value			$ 104.49
Performance Share Incentive Awards [Member] | November 21, 2016 [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted average grant date fair value			$ 103.75
Deferred Compensation [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common share dividends amount included in compensation cost	$ 72	$ 67
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%

XML

Stock-Based Compensation - Summarized Activity Related to Stock Options (Detail) - Stock Options [Member] $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Jan. 31, 2019 USD ($) $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Options, Outstanding, Beginning balance | shares	1,885
Number of Options, Granted | shares	348
Number of Options, Exercised | shares	(66)
Number of Options, Forfeited or expired | shares	(6)
Number of Options, Outstanding, Ending balance | shares	2,161
Number of Options, Vested or expected to vest | shares	2,133
Number of Options, Exercisable | shares	1,253
Weighted-Average Exercise Price Per Share, Outstanding, Beginning balance | $ / shares	$ 85.33
Weighted-Average Exercise Price Per Share, Granted | $ / shares	124.89
Weighted-Average Exercise Price Per Share, Exercised | $ / shares	54.40
Weighted-Average Exercise Price Per Share, Forfeited or expired | $ / shares	110.74
Weighted-Average Exercise Price Per Share, Outstanding, Ending balance | $ / shares	92.58
Weighted-Average Exercise Price Per Share, Vested or expected to vest | $ / shares	92.18
Weighted-Average Exercise Price Per Share, Exercisable | $ / shares	$ 75.89
Aggregate Intrinsic Value, Outstanding | $	$ 80,095
Aggregate Intrinsic Value, Vested or expected to vest | $	79,920
Aggregate Intrinsic Value, Exercisable | $	$ 67,355
Weighted Average Remaining Term, Outstanding	6 years 10 months 24 days
Weighted Average Remaining Term, Vested or expected to vest	6 years 10 months 24 days
Weighted Average Remaining Term, Exercisable	5 years 7 months 6 days

XML

Stock-Based Compensation - Fair Value Assumptions of Stock Options (Detail) - Stock Options [Member]	3 Months Ended
	Jan. 31, 2019	Jan. 31, 2018
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected volatility, Minimum	24.10%	24.00%
Expected volatility, Maximum	24.50%	26.70%
Expected dividend yield	1.04%	0.97%
Risk-free interest rate, Minimum	2.84%	2.09%
Risk-free interest rate, Maximum	2.95%	2.20%
Minimum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected life of the option (in years)	5 years 3 months 18 days	5 years 4 months 24 days
Maximum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected life of the option (in years)	6 years 2 months 12 days	6 years 2 months 12 days

XML

Stock-Based Compensation - Summarized Activity Related to Restricted Stock (Detail) - Restricted Stock [Member] shares in Thousands	3 Months Ended
	Jan. 31, 2019 $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Restricted Shares, Beginning balance | shares	53
Number of Restricted Shares, Granted | shares	20
Number of Restricted Shares, Vested | shares	(22)
Number of Restricted Shares, Ending balance | shares	51
Weighted-Average Grant Date Fair Value, Restricted Shares, Beginning balance | $ / shares	$ 108.82
Weighted-Average Grant Date Fair Value, Granted | $ / shares	124.90
Weighted-Average Grant Date Fair Value, Vested | $ / shares	93.67
Weighted-Average Grant Date Fair Value, Restricted Shares, Ending balance | $ / shares	$ 121.55

XML

Stock-Based Compensation - Summarized Activity Related to Restricted Stock Units (Detail) - Restricted Stock Unit [Member] shares in Thousands	3 Months Ended
	Jan. 31, 2019 $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Restricted Shares, Beginning balance	0
Number of Restricted Share Units, Granted	8
Number of Restricted Shares, Ending balance	8
Weighted-Average Grant Date Fair Value, Granted | $ / shares	$ 126.83
Weighted-Average Grant Date Fair Value, Restricted Shares, Ending balance | $ / shares	$ 126.83

XML

Stock-Based Compensation - Summarized Activity Related to Director Deferred Compensation Shares (Detail) - Directors [Member] - Deferred Compensation Share Equivalent Units [Member] shares in Thousands	3 Months Ended
	Jan. 31, 2019 $ / shares shares
Deferred Compensation Arrangement With Individual Share Based Payments [Line Items]
Number of Shares, Outstanding, Beginning balance | shares	107
Number of Shares, Dividend equivalents | shares	1
Number of Shares, Outstanding, Ending balance | shares	108
Weighted-Average Grant Date Fair Value, Beginning balance | $ / shares	$ 51.24
Weighted-Average Grant Date Fair Value, Dividend equivalents | $ / shares	120.03
Weighted-Average Grant Date Fair Value, Ending balance | $ / shares	$ 51.44

XML

Warranties - Additional Information (Detail)	3 Months Ended
	Jan. 31, 2019
Guarantees [Abstract]
Product warranty period	1 year

XML

Warranties - Reconciliation of Product Warranty Liability (Detail) - USD ($) $ in Thousands	3 Months Ended
	Jan. 31, 2019	Jan. 31, 2018
Guarantees [Abstract]
Beginning balance at October 31	$ 12,195	$ 13,377
Accruals for warranties	1,999	3,231
Warranty payments	(2,499)	(3,101)
Currency effect	132	383
Ending balance	$ 11,827	$ 13,890

XML

Operating Segments - Additional Information (Detail)	3 Months Ended
	Jan. 31, 2019 Segment
Segment Reporting [Abstract]
Number of operating segments	3

XML

Operating Segments - Segments (Detail) - USD ($) $ in Thousands	3 Months Ended
	Jan. 31, 2019	Jan. 31, 2018
Segment Reporting Information [Line Items]
Net external sales	$ 497,910	$ 550,424
Operating profit (loss)	84,281	119,350
Operating Segments [Member]
Segment Reporting Information [Line Items]
Net external sales	497,910	550,424
Operating profit (loss)	84,281	119,350	[1]
Operating Segments [Member] | Adhesive Dispensing Systems [Member]
Segment Reporting Information [Line Items]
Net external sales	211,517	220,864
Operating profit (loss)	47,892	53,990	[1]
Operating Segments [Member] | Advanced Technology Systems [Member]
Segment Reporting Information [Line Items]
Net external sales	234,458	271,701
Operating profit (loss)	40,785	67,493	[1]
Operating Segments [Member] | Industrial Coating Systems [Member]
Segment Reporting Information [Line Items]
Net external sales	51,935	57,859
Operating profit (loss)	7,516	10,545	[1]
Corporate [Member]
Segment Reporting Information [Line Items]
Operating profit (loss)	$ (11,912)	$ (12,678)	[1]

[1] Results for the three months ended January 31, 2018 have been revised to reflect the retrospective adoption of Accounting Standards Update No. 2017-07, Compensation — Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Cost ("ASU 2017-07"). Refer to Note 3 for details.

XML

Operating Segments - Reconciliation of Segment Operating Income to Consolidated Income Before Income Taxes (Detail) - USD ($) $ in Thousands	3 Months Ended
	Jan. 31, 2019	Jan. 31, 2018
Segment Reporting [Abstract]
Total profit for reportable segments	$ 84,281	$ 119,350
Interest expense	(12,365)	(11,317)
Interest and investment income	316	289
Other - net	(4,189)	(4,804)
Income before income taxes	$ 68,043	$ 103,518

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Operating Segments - Sales Information by Geographic Regions (Detail) - USD ($) $ in Thousands	3 Months Ended
	Jan. 31, 2019	Jan. 31, 2018
Net external sales
Net external sales	$ 497,910	$ 550,424
United States [Member]
Net external sales
Net external sales	170,350	165,831
Americas [Member]
Net external sales
Net external sales	32,437	34,279
Europe [Member]
Net external sales
Net external sales	132,675	141,938
Japan [Member]
Net external sales
Net external sales	29,047	65,869
Asia Pacific [Member]
Net external sales
Net external sales	$ 133,401	$ 142,507

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Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Recurring [Member] - USD ($) $ in Thousands		Jan. 31, 2019	Jan. 31, 2018
Assets:
Foreign currency forward contracts	[1]	$ 3,638	$ 4,640
Total assets at fair value		3,638	4,640
Liabilities:
Deferred compensation plans	[2]	12,019	12,774
Foreign currency forward contracts	[1]	2,319	5,314
Total liabilities at fair value		14,338	18,088
Level 2 [Member]
Assets:
Foreign currency forward contracts	[1]	3,638	4,640
Total assets at fair value		3,638	4,640
Liabilities:
Deferred compensation plans	[2]	12,019	12,774
Foreign currency forward contracts	[1]	2,319	5,314
Total liabilities at fair value		$ 14,338	$ 18,088

[1] We enter into foreign currency forward contracts to reduce the risk of foreign currency exposures resulting from receivables, payables, intercompany receivables, intercompany payables and loans denominated in foreign currencies. Foreign exchange contracts are valued using market exchange rates. These foreign exchange contracts are not designated as hedges.

[2] Executive officers and other highly compensated employees may defer up to 100 percent of their salary and annual cash incentive compensation and for executive officers, up to 90 percent of their long-term incentive compensation, into various non-qualified deferred compensation plans. Deferrals can be allocated to various market performance measurement funds. Changes in the value of compensation deferred under these plans are recognized each period based on the fair value of the underlying measurement funds.

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Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Parenthetical) (Detail)	3 Months Ended
	Jan. 31, 2019
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%

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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, 2019 USD ($)
Schedule Of Carrying Amounts And Fair Values Of Financial Instruments [Abstract]
Long-term debt (including current portion), Carrying Amount	$ 1,385,126
Long-term debt (including current portion), Fair Value	$ 1,377,373

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Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Jan. 31, 2019	Jan. 31, 2018
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Maturity of foreign currency forward contracts	90 days
Gains (losses) on foreign currency forward contracts	$ 1,030	$ (964)
Gains (losses) in fair value of balance sheet positions denominated in foreign currencies	$ (2,003)	$ (982)

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Derivative Financial Instruments - Outstanding Currency, Forward Exchange Contracts (Detail) - Foreign Currency Forward Contracts [Member] - USD ($) $ in Thousands	Jan. 31, 2019	Jan. 31, 2018
Sell [Member]
Derivative [Line Items]
Notional Amounts of foreign currency derivative contracts	$ 395,395	$ 257,746
Buy [Member]
Derivative [Line Items]
Notional Amounts of foreign currency derivative contracts	525,360	343,313
Euro [Member] | Sell [Member]
Derivative [Line Items]
Notional Amounts of foreign currency derivative contracts	335,775	151,860
Euro [Member] | Buy [Member]
Derivative [Line Items]
Notional Amounts of foreign currency derivative contracts	204,537	82,214
British Pound [Member] | Sell [Member]
Derivative [Line Items]
Notional Amounts of foreign currency derivative contracts	24,348	42,565
British Pound [Member] | Buy [Member]
Derivative [Line Items]
Notional Amounts of foreign currency derivative contracts	66,809	54,821
Japanese Yen [Member] | Sell [Member]
Derivative [Line Items]
Notional Amounts of foreign currency derivative contracts	28,009	55,161
Japanese Yen [Member] | Buy [Member]
Derivative [Line Items]
Notional Amounts of foreign currency derivative contracts	47,997	25,348
Australian Dollar [Member] | Sell [Member]
Derivative [Line Items]
Notional Amounts of foreign currency derivative contracts	786	559
Australian Dollar [Member] | Buy [Member]
Derivative [Line Items]
Notional Amounts of foreign currency derivative contracts	8,012	7,874
Hong Kong Dollar [Member] | Buy [Member]
Derivative [Line Items]
Notional Amounts of foreign currency derivative contracts	121,578	107,854
Singapore Dollar [Member] | Sell [Member]
Derivative [Line Items]
Notional Amounts of foreign currency derivative contracts	858	975
Singapore Dollar [Member] | Buy [Member]
Derivative [Line Items]
Notional Amounts of foreign currency derivative contracts	15,115	12,738
Others [Member] | Sell [Member]
Derivative [Line Items]
Notional Amounts of foreign currency derivative contracts	5,619	6,626
Others [Member] | Buy [Member]
Derivative [Line Items]
Notional Amounts of foreign currency derivative contracts	$ 61,312	$ 52,464

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Long-Term Debt - Long-Term Debt (Detail) - USD ($) $ in Thousands	Jan. 31, 2019	Oct. 31, 2018
Debt Instrument [Line Items]
Revolving credit agreement, due 2020	$ 122,700	$ 52,200
Private shelf facility, due 2020	36,111	36,111
Development loans, due 2019-2026	1,053	1,086
Long-term Debt	1,388,736	1,318,064
Less current maturities	53,734	28,734
Less unamortized debt issuance costs	3,610	3,973
Long-term maturities	1,331,392	1,285,357
Senior Notes, Due 2019-2025 [Member]
Debt Instrument [Line Items]
Senior notes	156,700	156,700
Senior Notes, Due 2019-2027 [Member]
Debt Instrument [Line Items]
Senior notes	100,000	100,000
Senior Notes, Due 2023-2030 [Member]
Debt Instrument [Line Items]
Senior notes	350,000	350,000
Term Loan, Due 2019-2022 [Member]
Debt Instrument [Line Items]
Term loan	605,000	605,000
Euro Loan, Due 2021 [Member]
Debt Instrument [Line Items]
Euro loan	$ 17,172	$ 16,967

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Long-term Debt - Additional Information (Detail) € in Thousands			1 Months Ended				3 Months Ended	12 Months Ended
	Jun. 30, 2018 USD ($)	Oct. 31, 2011	Oct. 31, 2018 USD ($)	Jun. 30, 2018 USD ($)	Jul. 31, 2015 USD ($)	Feb. 28, 2015 USD ($)	Jan. 31, 2019 USD ($)	Oct. 31, 2016 USD ($)	Oct. 31, 2015 USD ($)	Oct. 31, 2012 USD ($)	Jan. 31, 2019 EUR (€)	Oct. 31, 2018 EUR (€)	Mar. 31, 2017 USD ($)
Debt Instrument [Line Items]
Repayments of outstanding balance under syndicated revolving credit facility				$ 315,000,000
Outstanding balance			$ 52,200,000				$ 122,700,000
Outstanding balance			36,111,000				36,111,000
Term loan facility							$ 1,385,126,000
Senior Notes [Member]
Debt Instrument [Line Items]
Debt instrument, face amount	$ 350,000,000			$ 350,000,000						$ 200,000,000
Debt instrument, covenant compliance description							We were in compliance with all covenants at January 31, 2019.
Outstanding balance			156,700,000				$ 156,700,000
Senior Notes [Member] | Minimum [Member]
Debt Instrument [Line Items]
Debt instrument, maturity period	2023-06									2019-07
Debt instrument, fixed interest rates	3.71%			3.71%						2.62%
Senior Notes [Member] | Maximum [Member]
Debt Instrument [Line Items]
Debt instrument, maturity period	2030-06									2025-07
Debt instrument, fixed interest rates	4.17%			4.17%						3.13%
Revolving Credit Agreement [Member]
Debt Instrument [Line Items]
Debt instrument, covenant compliance description							We were in compliance with all covenants at January 31, 2019, and the amount we could borrow under the facility would not have been limited by any debt covenants.
Debt instrument, maturity period						2020-02
Revolving credit facility	$ 850,000,000			$ 850,000,000		$ 600,000,000
Credit facility, term						5 years
Outstanding balance			52,200,000				$ 122,700,000
Revolving Credit Agreement [Member] | Swing Line Loans [Member]
Debt Instrument [Line Items]
Revolving credit facility						$ 50,000,000
Syndicated Revolving Credit Agreement [Member]
Debt Instrument [Line Items]
Debt instrument, maturity period						2016-12
Three-year Note Purchase and Private Shelf Agreement [Member]
Debt Instrument [Line Items]
Debt instrument, face amount							$ 150,000,000
Debt instrument, covenant compliance description							We were in compliance with all covenants at January 31, 2019, and the amount we could borrow would not have been limited by any debt covenants.
Period of agreement							3 years
Maximum credit facility								$ 200,000,000	$ 180,000,000
Maximum life of borrowings							12 years
Maximum average life of borrowings							10 years
Outstanding balance			36,111,000				$ 36,111,000
Three-year Note Purchase and Private Shelf Agreement [Member] | Minimum [Member]
Debt Instrument [Line Items]
Debt instrument, maturity period		2020-01
Three-year Note Purchase and Private Shelf Agreement [Member] | Maximum [Member]
Debt Instrument [Line Items]
Debt instrument, maturity period		2020-09
Senior Unsecured Notes [Member]
Debt Instrument [Line Items]
Debt instrument, covenant compliance description					We were in compliance with all covenants at January 31, 2019
Term loan facility					$ 100,000,000
Senior Unsecured Notes [Member] | Minimum [Member]
Debt Instrument [Line Items]
Debt instrument, maturity period					2019-07
Debt instrument, fixed interest rates					2.89%
Senior Unsecured Notes [Member] | Maximum [Member]
Debt Instrument [Line Items]
Debt instrument, maturity period					2027-07
Debt instrument, fixed interest rates					3.19%
Euro Loan, Due 2021 [Member]
Debt Instrument [Line Items]
Euro loan			16,967,000				$ 17,172,000
Euro Loan, Due 2021 [Member] | Bank of America [Member]
Debt Instrument [Line Items]
Debt instrument, face amount | €												€ 150,000
Weighted average interest for borrowings							0.88%				0.88%
Euro loan							$ 17,172,000				€ 15,000
Debt instrument, covenant compliance description							We were in compliance with all covenants at January 31, 2019.
Term Loan Facility [Member] | Group of Banks [Member]
Debt Instrument [Line Items]
Weighted average interest for borrowings							3.42%				3.42%
Debt instrument, covenant compliance description							We were in compliance with all covenants at January 31, 2019.
Term loan													$ 705,000,000
Term Loan Due in October 2021 [Member] | Group of Banks [Member]
Debt Instrument [Line Items]
Term loan													200,000,000
Term Loan Due in March 2020 [Member] | Group of Banks [Member]
Debt Instrument [Line Items]
Term loan													200,000,000
Repayment of term loan			$ 100,000,000
Term Loan Due in March 2022 [Member] | Group of Banks [Member]
Debt Instrument [Line Items]
Term loan													$ 305,000,000
Note A and B [Member] | Three-year Note Purchase and Private Shelf Agreement [Member] | Minimum [Member]
Debt Instrument [Line Items]
Debt instrument, fixed interest rates							2.21%				2.21%
Note C [Member] | Three-year Note Purchase and Private Shelf Agreement [Member] | Maximum [Member]
Debt Instrument [Line Items]
Debt instrument, fixed interest rates							2.56%				2.56%