NOTE 12.
COMMITMENTS
AND CONTINGENCIES
BUSINESS
SEGMENT INFORMATION
Cooper is organized by product line for management reporting
with operating income, as presented in our financial reports,
as the primary measure of segment profitability. No costs from
corporate functions are allocated to the segments’ operating
income. Items below operating income are not considered
when measuring the profitability of a segment. The accounting
policies used to generate segment results are the same as our
overall accounting policies.
Two business segments comprise Cooper’s operations:
- CVI, which develops, manufactures and markets a range of contact lenses, and
- CSI, which develops, manufactures and distributes
diagnostic products and surgical equipment, instruments
and disposables, primarily for obstetrics and women’s
healthcare.
Total net sales include sales to customers as reported in our
consolidated statements of income and sales between geographic areas
that are priced at terms that allow for a reasonable profit for
the seller. Income (loss) from operations is total net sales less
cost of sales, research and development expenses, selling, general
and administrative expenses and amortization of intangible assets.
Corporate operating loss is principally corporate headquarters expense.
Investment income, net, settlement of disputes, net, other income
(expense), net, and interest expense were not allocated to individual
businesses. Our business segments do not rely on any one major customer.
Identifiable assets are those used in continuing operations
except cash and cash equivalents, which are included as corporate
assets.
Information by business segment for each of the years in the three-year
period ended October 31, 2000 follows: (In thousands)
| 2000 |
CVI
|
CSI
|
Corporate &
Eliminations
|
Consolidated
|
 |
| Net revenue from non-affiliates |
$
|
151,788
|
$
|
45,529
|
$
|
-
|
$
|
197,317
|
|
|
| Operating income (loss) |
$
|
47,287
|
$
|
6,277
|
$
|
(6,695)
|
$
|
46,869
|
|
|
| Investment income, net |
|
|
|
|
499
|
| Settlement of dispute |
|
|
|
(653)
|
| Other income (expense), net |
|
|
|
|
156
|
| Interest expense |
|
|
|
|
(4,744)
|
|
|
| Income before income taxes |
|
|
|
$
|
42,127
|
|
|
| Identifiable assets |
$
|
180,433
|
$
|
66,428
|
$
|
75,704
|
$
|
322,565
|
|
|
| Depreciation expense |
$
|
3,849
|
$
|
608
|
$
|
64
|
$
|
4,521
|
|
|
| Amortization expense |
$
|
2,155
|
$
|
2,058
|
$
|
-
|
$
|
4,213
|
|
|
| Capital expenditures |
$
|
14,089
|
$
|
554
|
$
|
22
|
$
|
4,665
|
|
|
| |
|
|
|
|
| 1999 |
|
|
|
|
|
| Net revenue from non-affiliates |
$
|
135,978
|
$
|
29,350
|
$
|
-
|
$
|
165,328
|
|
|
| Operating income (loss) |
$
|
40,802
|
$
|
4,336
|
$
|
(6,327)
|
$
|
38,811
|
|
|
| Investment income, net |
|
|
|
419
|
| Other income (expense), net |
|
|
|
(188)
|
| Interest expense |
|
|
|
(6,330)
|
|
|
| Income before income taxes |
|
|
|
$
|
32,712
|
|
|
| Identifiable assets |
$
|
153,759
|
$
|
41,491
|
$
|
90,623
|
$
|
285,873
|
|
|
| Depreciation expense |
$
|
3,224
|
$
|
515
|
$
|
75
|
$
|
3,814
|
|
|
| Amortization expense |
$
|
2,209
|
$
|
1,588
|
$
|
-
|
$
|
3,797
|
|
|
| Capital expenditures |
$
|
9,837
|
$
|
290
|
$
|
15
|
$
|
10,142
|
|
|
| |
|
|
|
|
| 1998 |
|
|
|
|
|
| Net revenue from non-affiliates |
$
|
119,210
|
$
|
27,982
|
$
|
-
|
$
|
147,192
|
|
|
| Operating income (loss) |
$
|
34,574
|
$
|
2,136
|
$
|
(7,010)
|
$
|
29,700
|
|
|
| Investment income, net |
|
|
|
329
|
| Settlement of disputes, net |
|
|
|
(1,250)
|
| Other income (expense), net |
|
|
|
561
|
| Interest expense |
|
|
|
(6,253)
|
|
|
| Income before income taxes |
|
|
|
$
|
23,087
|
|
|
| Identifiable assets |
$
|
143,888
|
$
|
41,887
|
$
|
110,266
|
$
|
296,041
|
|
|
| Depreciation expense |
$
|
2,307
|
$
|
484
|
$
|
81
|
$
|
2,872
|
|
|
| Amortization expense |
$
|
2,090
|
$
|
1,468
|
$
|
-
|
$
|
3,558
|
|
|
| Capital expenditures |
$
|
16,941
|
$
|
746
|
$
|
45
|
$
|
17,732
|
|
|
Information by geographical area by country of domicile for each
of the years in the three-year period ended October 31, 2000 follows:
(In thousands)
| 2000 |
United States
|
Europe
|
Canada
|
Other,
Eliminations
& Corporate
|
Consolidated
|
|
| Sales to unaffiliated customers |
$
|
145,416
|
$
|
36,048
|
$
|
15,772
|
$
|
81
|
$
|
197,317
|
| Sales between geographic areas |
|
163
|
|
30,058
|
-
|
(30,221)
|
-
|
|
|
| Net sales |
$
|
145,579
|
$
|
66,106
|
$
|
15,772
|
$
|
(30,140)
|
$
|
197,317
|
|
|
| Operating income (loss) |
$
|
38,915
|
$
|
57
|
$
|
930
|
$
|
6,967
|
$
|
46,869
|
|
|
| Identifiable assets |
$
|
127,414
|
$
|
111,474
|
$
|
6,389
|
$
|
77,288
|
$
|
322,565
|
|
|
| |
|
|
|
|
|
| 1999 |
|
|
|
|
|
|
| Sales to unaffiliated customers |
$
|
115,754
|
$
|
37,648
|
$
|
11,441
|
$
|
485
|
$
|
165,328
|
| Sales between geographic areas |
|
3,410
|
19,232
|
-
|
(22,642)
|
-
|
|
|
| Net sales |
$
|
119,164
|
$
|
56,880
|
$
|
11,441
|
$
|
(22,157)
|
$
|
165,328
|
|
|
| Operating income (loss) |
$
|
32,215
|
$
|
11,829
|
$
|
(366)
|
$
|
(4,867)
|
$
|
38,811
|
|
|
| Identifiable assets |
$
|
86,367
|
$
|
92,025
|
$
|
4,434
|
$
|
103,047
|
$
|
285,873
|
|
|
| |
|
|
|
|
|
| 1998 |
|
|
|
|
|
|
| Sales to unaffiliated customers |
$
|
102,181
|
$
|
34,952
|
$
|
10,059
|
$
|
-
|
$
|
147,192
|
| Sales between geographic areas |
|
3,403
|
5,858
|
-
|
(9,261)
|
-
|
|
|
| Net sales |
$
|
105,584
|
$
|
40,810
|
$
|
10,059
|
$
|
(9,261)
|
$
|
147,192
|
|
|
| Operating income (loss) |
$
|
34,134
|
$
|
2,081
|
$
|
495
|
$
|
(7,010)
|
$
|
29,700
|
|
|
| Identifiable assets |
$
|
105,095
|
$
|
78,042
|
$
|
2,638
|
$
|
110,266
|
$
|
296,041
|
|
|
| |
|
|
|
|
|
|
