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What changed in Nordson Corporation's 10-K — 2022 vs 2023

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Paragraph-level year-over-year comparison of Nordson Corporation's 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+183 added−186 removedSource: 10-K (2023-12-20) vs 10-K (2022-12-19)

Top changes in Nordson Corporation's 2023 10-K

183 paragraphs added · 186 removed · 142 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

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Biggest changeWe are committed to contributing approximately five percent of domestic pretax earnings to education, human welfare services and other charitable activities, particularly in communities where we have significant operations. Through the Nordson Corporation Foundation (the “Foundation”), we give back by providing grants to nonprofits in communities where we have facilities employing approximately 100 people.
Biggest changeAt Nordson, we have a long and proud history of investing in the communities where we live and work. We are committed to contributing approximately five percent of domestic pretax earnings to education, human welfare services and other charitable activities, particularly in communities where we have significant operations.
Our precision technology can be found in manufacturing facilities around the world producing a wide range of goods for consumer durable, consumer non-durable and technology end markets. Equipment ranges from single-use components to manual, stand-alone units for low-volume operations to microprocessor-based automated systems for high-speed, high-volume production lines.
Our precision technology can be found in manufacturing facilities around the world producing a wide range of goods for consumer durable, consumer non-durable, medical and technology end markets. Equipment ranges from single-use components to manual, stand-alone units for low-volume operations to microprocessor-based automated systems for high-speed, high-volume production lines.
This segment primarily serves the industrial, consumer durables and non-durables markets. • Industrial Coatings – Automated and manual dispensing products and systems for cold materials, container coating, liquid finishing and powder coating, as well as ultraviolet equipment used primarily in curing and drying operations.
This segment primarily serves the consumer durables, non-durables, agriculture and industrial markets. • Industrial Coatings – Automated and manual dispensing products and systems for cold materials, container coating, liquid finishing and powder coating, as well as ultraviolet equipment used primarily in curing and drying operations.
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, electronics, medical, appliances, energy, transportation, building and construction, and general product assembly and finishing. Our strategy for long-term growth is based on solving customers’ needs globally.
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, electronics, medical, appliances, energy, transportation, precision agriculture, building and construction, and general product assembly and finishing. Our strategy for long-term growth is based on solving customers’ needs globally.
Our principal manufacturing facilities are located in the United States, the People’s Republic of China, Germany, Ireland, Israel, Mexico, the Netherlands and the United Kingdom.
Our principal manufacturing facilities are located in the United States, the People’s Republic of China, Germany, Ireland, Israel, Italy, Mexico, the Netherlands and the United Kingdom.
We create value for our customers by developing solutions that increase uptime, enable faster line speeds and reduce consumption of materials. We serve a broad customer base, both in terms of industries and geographic regions. In 2022, no single customer accounted for ten percent or more of sales.
We create value for our customers by developing solutions that increase uptime, enable faster line speeds and reduce consumption of materials. We serve a broad customer base, both in terms of industries and geographic regions. In 2023, no single customer accounted for ten percent or more of sales.
Copies of these reports may also be obtained free of charge by sending written requests to Corporate Communications, Nordson Corporation, 28601 Clemens Road, Westlake, Ohio 44145. The contents of our website are not incorporated by reference herein and are not deemed to be a part of this report.
Copies of these reports may also be obtained free of charge by sending written requests to Corporate Communications, Nordson Corporation, 28601 Clemens Road, Westlake, Ohio 44145. The contents of our website are not incorporated by reference herein and are not deemed to be a part of this report. Nordson Corporation 9 Table of Contents
Using data in a consistent and disciplined way, leaders across the Company are defining their strategic business priorities. We drive organic growth by continually introducing new products and technology, providing high levels of customer service and support, capturing rapidly expanding opportunities in emerging geographies, and leveraging existing technology into new applications.
Using data in a consistent and disciplined way, leaders across the Company are defining their strategic business priorities. We drive organic growth by continually introducing new products and technology, providing high levels of customer service and support, capturing rapidly expanding opportunities in emerging geographies, and leveraging existing technology into new Nordson Corporation 4 Table of Contents applications.
Technologies are used for processing polymers, inspection and measurement of food, tubing and films and dispensing adhesives, coatings and sealants.
Technologies are used for processing polymers, inspection and measurement of food, tubing and films and dispensing adhesives, coatings, sealants and other materials.
We are also required to comply with increasingly complex and changing laws and regulations enacted to protect business and personal data in the United States and other jurisdictions regarding privacy, data protection and data security, including those Nordson Corporation 7 Table of Contents related to the collection, storage, use, transmission and protection of personal information and other consumer, customer, vendor or employee data.
We are also required to comply with increasingly complex and changing laws and regulations enacted to protect business and personal data in the United States and other jurisdictions regarding privacy, data protection and data security, including those related to the collection, storage, use, transmission and protection of personal information and other consumer, customer, vendor or employee data.
We have principal manufacturing operations and sources of supply in the United States in Ohio, Georgia, California, Colorado, Connecticut, Illinois, Massachusetts, Michigan, Minnesota, New Jersey, Rhode Island, Tennessee and Wisconsin; as well as in the People’s Republic of China, Germany, Ireland, Israel, Mexico, the Netherlands and the United Kingdom.
We have principal manufacturing operations and sources of supply in the United States in Ohio, Georgia, California, Colorado, Connecticut, Illinois, Michigan, Minnesota, Pennsylvania, Rhode Island, Tennessee and Wisconsin; as well as in the People’s Republic of China, Germany, Ireland, Israel, Italy, Mexico, the Netherlands and the United Kingdom.
We were incorporated in the State of Ohio in 1954 and are headquartered in Westlake, Ohio. Our products are marketed through a network of direct operations in more than 35 countries. Consistent with this global strategy, approximately 67 percent of our revenues were generated outside the United States in 2022. We have 7,331 employees worldwide.
We were incorporated in the State of Ohio in 1954 and are headquartered in Westlake, Ohio. Our products are marketed through a network of direct operations in more than 35 countries. Consistent with this global strategy, approximately 66 percent of our revenues were generated outside the United States in 2023. We have 7,900 employees worldwide.
The Salaried Pension Plan is designed to work together with social security benefits to provide employees with up to 30 years of service retirement income replacement that is approximately 55% of eligible compensation, subject to the Internal Revenue Code maximum monthly benefit.
The Salaried Pension Plan is designed to work together with social security benefits to provide employees with up to 30 years of service retirement income replacement that is approximately 55% of eligible compensation, subject to the Internal Revenue Code maximum monthly benefit. Participants fully vest in the Salaried Pension Plan after five years of service.
Key strategic markets include adult incontinence products, baby diapers and child-training pants, hygiene products and surgical drapes, gowns, shoe covers and face masks. Nordson Corporation 5 Table of Contents • Packaging – Automated adhesive dispensing systems used in the rigid packaged goods industries.
Key strategic markets include adult incontinence products, baby diapers and child-training pants, hygiene products and surgical drapes, gowns, shoe covers and face masks. • Packaging – Automated adhesive dispensing systems used in the rigid packaged goods industries.
Key strategic markets include consumer non-durable, film extrusion and converting, cable and tubing and energy storage. • Nonwovens – Dispensing, coating and laminating systems for applying adhesives, lotions, liquids and fibers to disposable products and continuous roll goods.
Key strategic markets include consumer non-durable, film extrusion and converting, cable and tubing and energy storage. Nordson Corporation 5 Table of Contents • Nonwovens – Dispensing, coating and laminating systems for applying adhesives, lotions, liquids and fibers to disposable products and continuous roll goods.
Such privacy and data protection laws and regulations, including with respect to the European Union’s General Data Protection Regulation ("GDPR"), the Brazilian General Data Protection Law, and the California Consumer Privacy Act of 2018 ("CCPA"), and the interpretation and enforcement of such laws and regulations, are continuously developing and evolving and there is significant uncertainty with respect to how compliance with these laws and regulations may evolve and the costs and complexity of future compliance.
Additionally, privacy and data protection laws and regulations, including with respect to the European Union’s General Data Protection Regulation ("GDPR"), and the California Consumer Privacy Act of 2018 ("CCPA"), and the interpretation and enforcement of these and similar laws and regulations, are continuously evolving and there is significant uncertainty with respect to how compliance with these laws and regulations may develop and the costs and complexity of future compliance.
Most significant raw materials that we use are available through multiple sources. We purchase most raw materials and other components on the open market and rely on third parties to provide certain finished goods.
Most significant raw materials that we use are available through multiple sources. We purchase most raw materials and other Nordson Corporation 6 Table of Contents components on the open market and rely on third parties to provide certain finished goods.
Based upon consideration of currently available information, we believe liabilities for environmental matters will not have a material adverse effect on our financial position, operating results or liquidity, but we cannot ensure that material environmental liabilities may not arise in the future.
Based upon consideration of currently available information, we believe liabilities for any such matters will not have a material adverse effect on our financial position, operating results or liquidity, but we cannot guarantee that material liabilities may not arise from regulation and compliance obligations in the future.
Participants fully vest in the Salaried Nordson Corporation 8 Table of Contents Pension Plan after five years of service. All eligible union employees hired prior to November 1, 2004 participate in a Company-sponsored tax-qualified pension plan for U.S.-based employees (the “Hourly Pension Plan”). The Hourly Pension Plan provides a multiplier for each year of service to supplement employees’ retirement income.
All eligible union employees hired prior to November 1, 2004 participate in a Company-sponsored tax-qualified pension plan for U.S.-based employees (the “Hourly Pension Plan”). The Hourly Pension Plan provides a multiplier for each year of service to supplement employees’ retirement income.
We also have safeguards established to identify non-compliance concerns through internal and external audits and risk assessments, as well as an ethics helpline reporting system.
We also have safeguards established to identify non-compliance concerns through internal and external audits and risk assessments, as well as an ethics helpline reporting system. The following describes certain significant regulations that may impact our business.
For a discussion of the risks associated with these laws and regulations, see Part I, Item 1A, "Risk Factors." Human Capital Resources Employee Profile As of October 31, 2022, we had 7,331 full-time and part-time employees, including 128 at our Amherst, Ohio, facility who are represented by a collective bargaining agreement that expires on November 16, 2025.
Human Capital Resources Employee Profile As of October 31, 2023, we had approximately 7,900 full-time and part-time employees, including 115 at our Amherst, Ohio, facility who are represented by a collective bargaining agreement that expires on November 16, 2025.
Nordson Corporation 6 Table of Contents Senior operating management supervises an extensive quality control program for our equipment, machinery and systems, and manufacturing processes. Natural gas and other fuels are our primary energy sources. However, standby capacity for alternative sources is available if needed.
Senior operating management supervises an extensive quality control program for our equipment, machinery and systems, and manufacturing processes. Natural gas, electricity, and other fuels are our primary energy sources. However, standby capacity for alternative sources is available if needed. Over the last year, we have seen a stabilization of the global supply chain and improved lead times.
The Nordson Corporation 4 Table of Contents primary goals of our acquisition strategy are to complement our current capabilities, diversify our business into new industry sectors with new customers and expand the scope of the solutions we can offer to our customers.
The primary goals of our acquisition strategy are to complement our current capabilities, diversify our business into new industry sectors with new customers and expand the scope of the solutions we can offer to our customers. We strive to provide genuine customer satisfaction – it is the foundation upon which we continue to build our business.
Total Rewards As part of our compensation philosophy, we believe that we must offer and maintain market competitive total rewards programs for our employees in order to attract and retain superior talent. These programs not only include base wages and incentives in support of our pay for performance culture, but also health, welfare and retirement benefits.
Total Rewards As part of our compensation philosophy, we believe that we must offer and maintain market competitive total rewards programs for our employees in order to attract and retain superior talent.
In recent years, we have extended our reach internationally, with giving programs in 11 international locations. We also expanded our Matching Gifts program internationally in 2022, which further expands our culture of giving around the world. Since 1989, we have donated more than $148 million to communities where we live and work.
In 2022, we also expanded our Matching Gifts program internationally, which further expands our culture of giving around the world. Since 1989, we have donated more than $162 million to communities where we live and work. In addition, our employees volunteered more than 109,000 hours through our Time ‘N Talent and Dollars for Doers programs.
This goal is met through the Human Resources department’s facilitation of employee training, leadership training and the creation of on-the-job growth opportunities. The result is a highly qualified and professional global team capable of meeting corporate objectives. For more information, see "Human Capital Resources" below. We recognize the value of employee participation in the planning process.
Complementing our business strategy is the objective to provide opportunities for employee self-fulfillment, growth, security, recognition and equitable compensation. This goal is met through the Human Resources department’s facilitation of employee training, leadership training and the creation of on-the-job growth opportunities. The result is a highly qualified and professional global team capable of meeting corporate objectives.
We focus many programs on employee wellness and have implemented solutions including mental health support access, telemedicine and healthy weight loss programs. We believe that these solutions have helped us successfully manage healthcare and prescription drug costs for our employee population.
We believe that these solutions have helped us successfully manage healthcare and prescription drug costs for our employee population.
Strategic and operating plans are developed by all divisions, resulting in a sense of ownership and commitment on the part of employees in accomplishing our objectives. We are an equal opportunity employer. At Nordson, we have a long and proud history of investing in the communities where we live and work.
For more information, see "Human Capital Resources" below. We recognize the value of employee participation in the planning process. Strategic and operating plans are developed by all divisions, resulting in a sense of ownership and commitment on the part of employees in accomplishing our objectives. We are an equal opportunity employer.
We believe that policies, practices and procedures have been properly designed to prevent unreasonable risk of material environmental damage arising from our operations. We accrue for estimated environmental liabilities with charges to expense and believe our environmental accrual is adequate to provide for our portion of the costs of all such known environmental liabilities.
We maintain insurance coverage that may cover certain costs or legal claims related to environmental regulations, and we accrue for estimated environmental liabilities with charges to expense and believe our environmental accrual is adequate to provide for our portion of the costs of all such known environmental liabilities.
In addition, our employees volunteered more than 107,000 hours through our Time ‘N Talent and Dollars for Doers programs. Principal Products and Uses We engineer, manufacture and market differentiated products and systems used to dispense, apply and control adhesives, coatings, polymers, sealants, biomaterials, medical components, and other fluids, to test and inspect for quality, and to treat and cure surfaces.
Principal Products and Uses We are a diversified precision technology company that engineers, manufactures and markets differentiated products and systems used to dispense, apply and control adhesives, coatings, polymers, sealants, biomaterials, medical components, and other fluids, to test and inspect for quality, and to treat and cure surfaces.
Key strategic markets include flexible packaging, electronics, medical, building and construction, transportation and aerospace, and general consumer goods. • Product Assembly – Dispensing, coating and laminating systems for the assembly of plastic, metal and wood products, for paper and paperboard converting applications and for the manufacturing of continuous roll goods.
This broad product portfolio is supported by differentiated software and data capabilities. • Product Assembly – Dispensing, coating and laminating systems for the assembly of plastic, metal and wood products, for paper and paperboard converting applications and for the manufacturing of continuous roll goods.
Compliance with federal, state, local and foreign environmental protection laws during 2022 had no material effect on our capital expenditures, earnings or competitive position.
We believe that policies, practices and procedures have been properly designed to prevent unreasonable risk of material regulation or compliance obligations arising from our operations. Compliance with federal, state, local and foreign regulation and laws during 2023 had no material effect on our capital expenditures, earnings or competitive position.
Our approach encompasses inclusion awareness and skill-building, intentionality with respect to diversity in our hiring and selection process and performance management and succession planning that recognizes the importance of diversity. We strive to promote inclusion through ongoing “Inclusive Leadership” and unconscious bias training across the Company.
Our approach encompasses inclusion awareness and skill-building, intentionality with respect to diversity in our hiring and selection process and performance management and succession planning that recognizes the importance of diversity. Nordson’s employee resource groups strengthen our commitment to fostering an inclusive, diverse workplace where everyone feels like they belong. Participation in these groups is open to all employees.
Compliance with Governmental Regulations As a U.S. public company that supports manufacturing, designing and servicing highly complex products in regulated environments, our global operations are subject to a variety of laws, regulations and compliance obligations. We have robust internal controls, quality management systems, and management systems of compliance that govern our internal actions and mitigate our risk of non-compliance.
Compliance with Governmental Regulations Our global operations are subject to a variety of federal, state, local and international laws, regulations and compliance obligations relating to the manufacturing, designing and servicing of highly complex products and solutions.
Removed
CyberOptics Acquisition On November 3, 2022, the Company completed the acquisition of CyberOptics Corporation (“CyberOptics”) pursuant to the terms of the Agreement and Plan of Merger, dated as of August 7, 2022, by and among the Company, Meta Merger Company and CyberOptics. CyberOptics is a leading global developer and manufacturer of high-precision 3D optical sensing technology solutions.
Added
ARAG Acquisition On August 24, 2023, the Company completed the acquisition of the ARAG Group and its subsidiaries ("ARAG Group" or "ARAG") pursuant to the terms of the Sale and Purchase Agreement, dated as of June 25, 2023, by and among the Company, its Italian subsidiary, Capvis Equity V LP ("Capvis"), DRIP Co-Investment ("DRIP"), and certain individuals (together with Capvis and DRIP, collectively, the "Sellers").
Removed
The CyberOptics acquisition expanded our test and inspection platform, providing differentiated technology that expands our product offering in the semiconductor and electronics industries and will be reported in our Advanced Technology Solutions segment.
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ARAG is a global market and innovation leader in the development, production and supply of precision control systems and smart fluid components for agricultural spraying. ARAG operates as a division of our Industrial Precision Solutions segment.
Removed
The all-cash transaction of approximately $380,000, net of cash acquired, was funded using our revolving credit facility and is not expected to have a material impact on our Consolidated Financial Statements.
Added
In anticipation of the acquisition, the Company entered into a €760,000 senior unsecured term loan facility with a group of banks in August 2023 (the “364-Day Term Loan Facility”).
Removed
We strive to provide genuine customer satisfaction – it is the foundation upon which we continue to build our business. Complementing our business strategy is the objective to provide opportunities for employee self-fulfillment, growth, security, recognition and equitable compensation.
Added
The all-cash ARAG acquisition of approximately €957,000, net of the repayment of approximately €30,300 of debt of the acquired companies, was funded using borrowings under the 364-Day Term Loan Facility and the Company's revolving credit facility.
Removed
Though the COVID-19 pandemic disrupted the global supply chain, we have not experienced significant supply disruption from third-party component suppliers. However, we have faced and continue to face some supply chain constraints, primarily related to electronic component availability.
Added
Through the Nordson Corporation Foundation (the “Foundation”), we give back by providing grants to nonprofits in communities where we have facilities employing approximately 100 people. In recent years, we have extended our reach internationally, with giving programs in 11 international locations.
Removed
While logistics flow continues to improve, we are experiencing much higher costs than pre-pandemic rates due to carrier rate increases, mode changes, fuel costs, port backlog and other factors. In addition, shipments between countries have been impacted and we have experienced delays due to a variety of factors related to supply chain disruption.
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Key strategic markets include flexible packaging, electronics, medical, building and construction, transportation and aerospace, and general consumer goods. • Precision Agriculture – On August 24, 2023, we acquired ARAG Group, a global market and innovation leader in precision agriculture spraying solutions.
Added
Its portfolio consists of three key product families: fluid components, such as nozzles, pumps and filters; smart components that measure and control the flow, quantity and location of dispensed fluid; and control systems that provide a greater variety of input and functionality to the customer.
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We enhanced our risk mitigation and sourcing efforts as a result of the COVID-19 pandemic and geopolitical tensions. Logistics flows have improved, and global forwarding rates have returned to pre-pandemic levels. We continue to see moderate rate increases on parcel and domestic trucking activity.
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Examples of such Nordson Corporation 7 Table of Contents regulations, include, but are not limited to, import and export controls, data privacy, environmental, product safety, corruption, bribery, employment and labor.
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To support our policy of compliance in every jurisdiction we do business, we have robust internal controls, quality management systems, and management systems of compliance that govern our internal actions and mitigate our risk of non-compliance.
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For additional information about the risks associated with these laws and regulations, see Part I, Item 1A, "Risk Factors." We transact with customers and suppliers in numerous geographies around the world and are required to comply with U.S. and non-U.S. import, export and sanctions laws (collectively “Trade Laws”).
Added
We have developed compliance programs and training to prevent violations of Trade Laws, and we regularly monitor and adjust our programs and training to reflect changes in Trade Laws or changes in our business.
Added
Geopolitical events may result in changes to Trade Laws that may impact our ability to transact business involving certain countries, certain items or certain counterparties, or may impose additional costs or complexity relating to tariffs, taxes, duties or adjustments to our compliance programs, training, or personnel requirements.
Added
The risk of data privacy breaches cannot be entirely eliminated, creating risks of fines and penalties.
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These programs not only include base wages and Nordson Corporation 8 Table of Contents incentives in support of our pay for performance culture, but also health, welfare and retirement benefits. We focus many programs on employee wellness and have implemented solutions including mental health support access, telemedicine and healthy weight loss programs.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changePolitical conditions in and between the United States and foreign countries in which we operate could adversely affect us. We conduct our manufacturing, sales and distribution operations on a worldwide basis and are subject to risks associated with doing business both within and outside the United States.
Biggest changeWe conduct our manufacturing, sales and distribution operations on a worldwide basis and are subject to risks associated with doing business both within and outside the United States. We expect that international operations and United States export sales will continue to be important to our business for the foreseeable future.
For additional detail related to this risk, see Part II, Item 7A, Quantitative and Qualitative Disclosure About Market Risk. A significant portion of our consolidated revenues in 2022 were generated in currencies other than the United States dollar, which is our reporting currency. We recognize foreign currency transaction gains and losses arising from our operations in the period incurred.
For additional detail related to this risk, see Part II, Item 7A, Quantitative and Qualitative Disclosure About Market Risk. A significant portion of our consolidated revenues in 2023 were generated in currencies other than the United States dollar, which is our reporting currency. We recognize foreign currency transaction gains and losses arising from our operations in the period incurred.
In addition, an acquisition could adversely impact our operating performance as a result of the incurrence of acquisition-related debt, pre-acquisition potential tax liabilities, acquisition expenses, the amortization of acquisition-acquired assets, or possible future impairments of goodwill or intangible assets associated with the acquisition.
In addition, an acquisition could adversely impact our operating performance as a result of incurring acquisition-related debt, pre-acquisition potential tax liabilities, acquisition expenses, the amortization of acquisition-acquired assets, or possible future impairments of goodwill or intangible assets associated with the acquisition.
The interpretation and application of data protection laws, including federal, state and international laws, relating to the collection, use, retention, disclosure, security and transfer of personally identifiable data in the U.S., Europe and elsewhere (including but not limited to the European Union’s GDPR, the Brazilian General Data Protection Law and the CCPA), are uncertain and evolving.
The interpretation and application of data protection laws, including federal, state and international laws, relating to the collection, use, retention, disclosure, security and transfer of personally identifiable data in the U.S., Europe and elsewhere (including but not limited to the European Union’s GDPR and the CCPA), are uncertain and evolving.
If future operating performance at one or more of our business units were to fall significantly below current levels, if competing or alternative technologies emerge, if market conditions for acquired businesses decline, if significant and prolonged negative industry or economic trends exist, if our stock Nordson Corporation 14 Table of Contents price and market capitalization declines, or if future cash flow estimates decline, we could incur, under current applicable accounting rules, a non-cash charge to operating earnings for goodwill impairment.
If future operating performance at one or more of our business units were to fall significantly below current levels, if competing or alternative technologies emerge, if market conditions for acquired businesses decline, if significant and prolonged negative industry or economic trends exist, if our stock price and market capitalization declines, or if future cash flow estimates decline, we could incur, under current applicable accounting rules, a non-cash charge to operating earnings for goodwill impairment.
Our ability to comply with the covenants and other terms of our credit facilities will depend on our future operating performance. If we fail to comply with such covenants and terms, we may be in default and the maturity of the related debt could be accelerated and become immediately due and payable.
Our ability to comply with the covenants and other terms of the agreement governing our debt will depend on our future operating performance. If we fail to comply with such covenants and terms, we may be in default and the maturity of the related debt could be accelerated and become immediately due and payable.
We may need new or additional financing in the future to expand our business or refinance existing indebtedness. If we are unable to access capital on satisfactory terms and conditions, we may not be able to expand our business or meet our payment requirements under our existing credit facilities.
We may need new or additional financing in the future to expand our business or refinance existing debt. If we are unable to access capital on satisfactory terms and conditions, we may not be able to expand our business or meet our payment requirements under our existing debt.
In addition, we cannot assure that any acquisition, including the recent acquisition of CyberOptics, once successfully integrated, will perform as planned, be accretive to earnings, or prove to be beneficial to our operations and cash flow.
In addition, we cannot assure that any acquisition, including the recent acquisitions of the ARAG Group and CyberOptics Corporation ("CyberOptics"), once successfully integrated, will perform as planned, be accretive to earnings, or prove to be beneficial to our operations and cash flow.
In addition, depending on market conditions and our financial performance, neither debt nor equity financing may be available on Nordson Corporation 16 Table of Contents satisfactory terms or at all. Finally, as a consequence of worsening financial market conditions, our credit facility providers may not provide the agreed credit if they become undercapitalized.
In addition, depending on market conditions and our financial performance, neither debt nor equity financing may be available on satisfactory terms or at all. Finally, as a consequence of worsening financial market conditions, our credit facility providers may not provide the agreed credit if they become undercapitalized.
We may incur substantial costs, including cleanup costs, fines and civil or criminal sanctions, liabilities resulting from third-party property damage or personal injury claims, or our products could be prohibited from entering certain jurisdictions, if we were to violate or become liable under environmental laws, if our products become non-compliant with environmental laws or if we were to undertake environmental protection actions voluntarily.
We may incur substantial costs, including cleanup costs, Nordson Corporation 15 Table of Contents fines and civil or criminal sanctions, liabilities resulting from third-party property damage or personal injury claims, or our products could be prohibited from entering certain jurisdictions, if we were to violate or become liable under environmental laws, if our products become non-compliant with environmental laws or if we were to undertake environmental protection actions voluntarily.
Risks Related to Legal, Compliance and Regulatory Matters Changes in United States and international tax laws may have a material adverse effect on our business, financial condition and results of operations. We are subject to income taxes in the United States and various foreign jurisdictions.
Nordson Corporation 14 Table of Contents Risks Related to Legal, Compliance and Regulatory Matters Changes in United States and international tax laws may have a material adverse effect on our business, financial condition and results of operations. We are subject to income taxes in the United States and various foreign jurisdictions.
Our existing credit facilities contain restrictive covenants that limit our ability to, among other things: • borrow money or guarantee the debts of others; • use assets as security in other transactions; • make restricted payments or distributions; and • sell or acquire assets or merge with or into other companies.
The agreements governing our existing debt contain restrictive covenants that limit our ability to, among other things: • borrow money or guarantee the debts of others; • use assets as security in other transactions; • make restricted payments or distributions; and • sell or acquire assets or merge with or into other companies.
Such risks include, but are not limited to, the following: • risks of political or economic instability; • unanticipated or unfavorable circumstances arising from host country laws or regulations; • threats of war, terrorism or governmental instability, including the conflict between Russia and Ukraine; • changes in tax rates, adoption of new tax laws or other additional tax policies, and other proposals to reform United States and foreign tax laws that impact how United States multinational corporations are taxed on foreign earnings; • restrictions on the transfer of funds into or out of a country; • potential negative consequences from changes to taxation policies; • the disruption of operations from labor and political disturbances; • the imposition of tariffs, import or export licensing requirements and other potential changes in trade policies and relations arising from policy initiatives implemented by the U.S. presidential administration; • exchange controls or other trade restrictions including transfer pricing restrictions when products produced in one country are sold to an affiliated entity in another country; and • government responses to the COVID-19 pandemic.
Such risks include, but are not limited to, the following: • risks of political or economic instability; • unanticipated or unfavorable circumstances arising from host country laws or regulations; • threats of war, terrorism or governmental instability, including conflicts in Europe and the Middle East; • changes in tax rates, adoption of new tax laws or other additional tax policies, and other proposals to reform United States and foreign tax laws that impact how United States multinational corporations are taxed on foreign earnings; • restrictions on the transfer of funds into or out of a country; • potential negative consequences from changes to taxation policies; • the disruption of operations from labor and political disturbances; • the imposition of tariffs, import or export licensing requirements and other potential changes in trade policies and relations arising from policy initiatives implemented by the U.S. presidential administration; and • exchange controls or other trade restrictions including transfer pricing restrictions when products produced in one country are sold to an affiliated entity in another country.
Failure to retain our leadership team and workforce and to attract and retain other important management and technical personnel could place a constraint on our global growth and operational initiatives, possibly resulting in inefficient and ineffective management and operations, which would likely harm our revenues, operations and product development efforts and eventually result in a decrease in profitability.
Failure to retain our leadership team and workforce and to attract and retain other important management and technical personnel could place a constraint on our global Nordson Corporation 11 Table of Contents growth and operational initiatives, possibly resulting in inefficient and ineffective management and operations, which would likely harm our revenues, operations and product development efforts and eventually result in a decrease in profitability.
We believe that we must continue to enhance our existing products and to develop and manufacture new products with improved capabilities in order to continue to be a leading provider of precision technology solutions. We also believe that we must continue to make improvements in our productivity in order to maintain our competitive position.
We believe that we must continue to enhance our existing products and to develop and manufacture new products with improved capabilities in order to continue to be a leading provider of precision technology solutions. We also believe that we must continue to make improvements in our productivity in order to maintain our Nordson Corporation 13 Table of Contents competitive position.
We cannot predict what further action may be taken with respect to tariffs or trade relations between the U.S. and other governments, and any further changes in U.S. or international trade policy could have an adverse impact on our business.
We cannot predict what further action may be taken with respect to tariffs or trade relations between the U.S. and other governments, and any further changes in U.S. or international trade policy could have an adverse impact on our business. Further, the conflicts in Europe and the Middle East may have significant adverse effects on international trade policy.
The techniques used by criminals to obtain unauthorized access to sensitive data Nordson Corporation 12 Table of Contents change frequently and often are not recognizable until launched against a target. Accordingly, we may be unable to anticipate these techniques or implement adequate preventative measures.
The techniques used by criminals to obtain unauthorized access to sensitive data change frequently and often are not recognizable until launched against a target. Accordingly, we may be unable to anticipate these techniques or implement adequate preventative measures.
The limits imposed on us by the restrictive covenants contained in our credit facilities could prevent us from making acquisitions or cause us to lose access to these facilities.
The limits imposed on us by the restrictive covenants contained in the agreement governing our debt could prevent us from making acquisitions or cause us to lose access to these facilities.
As a result, currency fluctuations between the United States dollar and the currencies in which we do business Nordson Corporation 10 Table of Contents have caused and may continue to cause foreign currency transaction and translation movements, which historically have been material and could continue to be material.
As a result, currency fluctuations between the United States dollar and the currencies in which we do business have caused and may continue to cause foreign currency transaction and translation movements, which historically have been material and could continue to be material.
We cannot predict the effects of exchange rate fluctuations upon our future operating results because of the number of currencies involved, the variability of currency exposures and the potential volatility of currency exchange rates.
We cannot predict the effects of exchange rate fluctuations upon our future operating results because of the number of currencies involved, the variability of currency exposures and the potential volatility Nordson Corporation 10 Table of Contents of currency exchange rates.
Nordson Corporation 13 Table of Contents If we fail to develop new products or enhance existing products, or our customers do not accept the new or enhanced products we develop, our revenue and profitability could be adversely impacted. Innovation is critical to our success.
If we fail to develop new products or enhance existing products, or our customers do not accept the new or enhanced products we develop, our revenue and profitability could be adversely impacted. Innovation is critical to our success.
Changes in environmental and climate change laws or regulations, including laws relating to greenhouse gas emissions, could subject us to additional costs and restrictions, including increased energy and raw material Nordson Corporation 15 Table of Contents costs.
Changes in environmental and climate change laws or regulations, including laws relating to greenhouse gas emissions, could subject us to additional costs and restrictions, including increased energy and raw material costs.
A one percentage point increase in the interest rate on the floating rate debt in 2022 would have resulted in approximately $2,841 of additional interest expense. A higher level of floating rate debt would increase the exposure to changes in interest rates.
A one percentage point increase in the interest rate on the floating rate debt in 2023 would have resulted in approximately $5,530 of additional interest expense. A higher level of floating rate debt would increase the exposure to changes in interest rates.
Any of these factors may disrupt our operations and adversely affect our financial condition and results of operations. Item 1B. Unresolved Staff Comments None. Nordson Corporation 17 Table of Contents
Any of these factors may disrupt our operations and adversely affect our financial condition and results of operations. Item 1B. Unresolved Staff Comments None.
For example, in November 2022, we completed our acquisition of CyberOptics. We intend to continue to seek additional acquisition opportunities both to expand into new markets and to enhance our position in existing markets throughout the world.
For example, in August 2023, we completed our acquisition of the ARAG Group. We intend to continue to seek additional acquisition opportunities both to expand into new markets and to enhance our position in existing markets throughout the world.
Future adverse consequences arising from the COVID-19 pandemic, the conflict between Russia and Ukraine, and Brexit may include continued volatility in exchange rates. Any significant fluctuation in exchange rates may be harmful to our financial condition and results of operations. We also face risks arising from the imposition of exchange controls and currency devaluations.
Future adverse consequences arising from the conflicts in Europe and the Middle East and Brexit may include continued volatility in exchange rates. Any significant fluctuation in exchange rates may be harmful to our financial condition and results of operations. We also face risks arising from the imposition of exchange controls and currency devaluations.
The COVID-19 pandemic and related preventative and mitigation measures implemented by governments around the world and the conflict between Russia and Ukraine have to date negatively impacted the global economy and created significant volatility and disruption of financial markets.
The COVID-19 pandemic and related preventative and mitigation measures implemented by governments around the world and the conflicts in Europe and the Middle East have to date negatively impacted the global economy and created significant volatility and disruption of financial markets.
For example, uncertainty surrounding the impact of the COVID-19 pandemic, the impact of the conflict between Russia and Ukraine, changes in monetary policies and the effects of the departure of the United Kingdom from the European Union ("Brexit") have caused increased volatility in global currency exchange rates that have resulted in the strengthening of the United States dollar against the foreign currencies in which we conduct business.
For example, the impact of conflicts in Europe and the Middle East, changes in monetary policies and the effects of the departure of the United Kingdom from the European Union ("Brexit") have caused increased volatility in global currency exchange rates that have resulted in the strengthening of the United States dollar against the foreign currencies in which we conduct business.
Risks Related to Our Capital Structure Our inability to comply with our existing credit facilities’ restrictive covenants or to access additional sources of capital could impede our growth or the repayment or refinancing of existing indebtedness.
Risks Related to Our Capital Structure Our inability to comply with the restrictive covenants included in the agreements governing our debt or to access additional sources of capital could impede our growth or the repayment or refinancing of existing debt.
Risks Related to Our Business and Operations A disruption in, shortage of, or price increases for, supply of our components and raw materials may adversely impact our business, financial condition, results of operations and cash flows.
A breach in information privacy could result in legal or reputational risks and could have a negative impact on our revenues and results of operations. A disruption in, shortage of, or price increases for, supply of our components and raw materials may adversely impact our business, financial condition, results of operations and cash flows.
We expect that international operations and United States export sales will continue to be important to our business for the foreseeable future. Both sales from international operations and export sales are subject to varying degrees of risks inherent in doing business outside the United States.
Both sales from international operations and export sales are subject to varying degrees of risks inherent in doing business outside the United States.
Additionally, we may not be able to increase the prices of our products due to competitive pricing pressure and other factors. Shortages in raw materials or our inability to pass along price increases could affect the prices we charge, our operating costs and our competitive position, which could adversely affect our business, financial condition, results of operations and cash flows.
Shortages in raw materials or our inability to pass along Nordson Corporation 12 Table of Contents price increases could affect the prices we charge, our operating costs and our competitive position, which could adversely affect our business, financial condition, results of operations and cash flows.
We are exposed to fluctuations in foreign currency exchange rates, particularly with respect to the euro, the yen, the pound sterling and the Chinese yuan.
Significant movements in foreign currency exchange rates or change in monetary policy may harm our financial results. We are exposed to fluctuations in foreign currency exchange rates, particularly with respect to the euro, the yen, the pound sterling and the Chinese yuan.
Currency devaluations diminish the United States dollar value of the currency of the country instituting the devaluation and, if they occur or continue for significant periods, could adversely affect our earnings or cash flow.
Currency devaluations diminish the United States dollar value of the currency of the country instituting the devaluation and, if they occur or continue for significant periods, could adversely affect our earnings or cash flow. Risks Related to Our Business and Operations Political conditions in and between the United States and foreign countries in which we operate could adversely affect us.
Failure to retain our existing senior management team or the inability to attract and retain qualified personnel could hurt our business and inhibit our ability to operate and grow successfully. The COVID-19 pandemic has created labor force disruptions impacting factory production and other operations.
Failure to retain our existing senior management team or the inability to attract and retain qualified personnel could hurt our business and inhibit our ability to operate and grow successfully.
To conduct our business, we rely extensively on information technology systems, networks and services, some of which are managed, hosted and provided by third-party service providers.
We have experienced and expect to continue to experience cyber-attacks to our systems and networks. To date, we have not experienced any material breaches or material losses related to cyber-attacks. To conduct our business, we rely extensively on information technology systems, networks and services, some of which are managed, hosted and provided by third-party service providers.
Changes in interest rates could adversely affect us. Any period of interest rate increases may adversely affect our profitability. As of October 31, 2022, we had $738,822 of total debt outstanding, of which 35 percent was priced at interest rates that float with the market.
Nordson Corporation 16 Table of Contents Changes in interest rates could adversely affect us. Any period of interest rate increases may adversely affect our profitability. As of October 31, 2023, we had $1,749,305 of total debt outstanding, of whic h $553,020 was p riced at interest rates that float with the market.
The COVID-19 pandemic and the conflict between Russia and Ukraine have negatively impacted, and may continue to negatively impact, the availability and prices for raw materials, parts, and components.
The conflicts in Europe and the Middle East have negatively impacted, and may continue to negatively impact, the availability and prices for raw materials, parts, and components.
We cannot offer assurances that any of these initiatives will be beneficial to the extent Nordson Corporation 11 Table of Contents anticipated, or that the estimated efficiency improvements, incremental cost savings or cash flow improvements will be realized as anticipated or at all.
We cannot offer assurances that any of these initiatives will be beneficial to the extent anticipated, or that the estimated efficiency improvements, incremental cost savings or cash flow improvements will be realized as anticipated or at all. Increased information technology threats and more sophisticated and targeted cybercrime could pose a risk to our systems, networks, products, solutions and services.
Additional risks factors may exist that are not presently known by the Company or that are currently deemed immaterial may also be present. Risks Related to Economic Conditions The COVID-19 pandemic has negatively disrupted, and may continue to negatively disrupt, our business and results of operations.
Additional risks factors may exist that are not presently known by the Company or that are currently deemed immaterial may also be present. Risks Related to Economic Conditions Changes in United States or international economic conditions, including declines in the industries we serve, could adversely affect the profitability of any of our operations.
Removed
Throughout the COVID-19 pandemic, we have supported, and continue to support, multiple “critical infrastructure” sectors by manufacturing materials and products needed for medical supply chains, packaging, transportation, energy, communications, and other critical infrastructure industries.
Added
In 2023, approximately 34 percent of our revenue was generated in the United States, while approximately 66 percent was generated outside the United States.
Removed
We have continued to operate during the COVID-19 pandemic in all our production Nordson Corporation 9 Table of Contents facilities, having taken the recommended public health measures to ensure worker and workplace safety. As a result, there have been unfavorable impacts on our manufacturing efficiencies.
Added
Additionally, we may not be able to increase the prices of our products due to competitive pricing pressure and other factors.
Removed
We continue to actively monitor the evolving circumstances and impact of the COVID-19 pandemic, which has negatively disrupted, and may continue to negatively disrupt, our business and results of operations in the future. For example, in the second quarter of 2022, our revenue growth in Asia-Pacific was negatively impacted by COVID-19 lockdowns in China.
Removed
COVID-19 lockdown restrictions in China continue to be implemented from time to time.
Removed
The full extent of the COVID-19 pandemic on our operations and the markets we serve remains highly uncertain and will depend largely on future developments related to the COVID-19 pandemic, including infection rates increasing or returning in various geographic areas, variations of COVID-19, the ultimate duration of the COVID-19 pandemic, actions by government authorities to contain the outbreak or treat its impact, such as reimposing previously lifted measures or putting in place additional restrictions, and the widespread distribution and acceptance of an effective vaccine, among other things.
Removed
These developments are constantly evolving and cannot be accurately predicted. Changes in United States or international economic conditions, including declines in the industries we serve, could adversely affect the profitability of any of our operations. In 2022, approximately 33 percent of our revenue was generated in the United States, while approximately 67 percent was generated outside the United States.
Removed
Further, the level of impact from the COVID-19 pandemic and the reactions of governmental authorities and others thereto as well as the conflict between Russia and Ukraine may have significant adverse effects on international trade policy. Significant movements in foreign currency exchange rates or change in monetary policy may harm our financial results.
Removed
Increased information technology threats and more sophisticated and targeted cybercrime could pose a risk to our systems, networks, products, solutions and services. We have experienced and expect to continue to experience cyber-attacks to our systems and networks. To date, we have not experienced any material breaches or material losses related to cyber-attacks.
Removed
A breach in information privacy could result in legal or reputational risks and could have a negative impact on our revenues and results of operations.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeProperties Our principal owned and leased properties (defined as greater than 20,000 square feet or related to a principal operation) as of October 31, 2022 were as follows: Location Description of Property Approximate Square Feet United States Amherst, Ohio 1 A manufacturing, laboratory and office complex 521,000 Norwich, Connecticut 2 A manufacturing, laboratory and office building 212,000 Carlsbad, California 3 Three manufacturing and office buildings (leased) 181,000 Duluth, Georgia 1 A manufacturing, laboratory and office building 176,000 Chippewa Falls, Wisconsin 1 A manufacturing, warehouse and office building (leased) 145,000 Swainsboro, Georgia 1 A manufacturing building 136,000 East Providence, Rhode Island 2 A manufacturing, warehouse and office building 116,000 Loveland, Colorado 2 A manufacturing, warehouse and office building 115,000 Salem, New Hampshire 2 Two manufacturing, warehouse and office buildings (leased) 83,000 Minneapolis, Minnesota 2 Two office, laboratory and warehouse buildings (leased) 69,000 Wixom, Michigan 1 A manufacturing, warehouse and office building (leased) 64,000 Irwindale, California 1 An office building and lab 48,000 Dayton, Ohio 1 A manufacturing, warehouse and office building 43,000 Vista, California 3 A manufacturing building (leased) 41,000 Hickory, North Carolina 1 A manufacturing, warehouse and office building (leased) 41,000 Elk Grove, Illinois 3 A manufacturing, warehouse and office building (leased) 40,000 San Jose, CA 2 A manufacturing, warehouse and office building (leased) 37,000 Westlake, Ohio Corporate headquarters 28,000 Liberty Lake, Washington 3 A manufacturing, warehouse and office building (leased) 27,000 Chattanooga, Tennessee 2 A manufacturing, warehouse and office building (leased) 25,000 Huntington Beach, California 2 An office, laboratory and warehouse building (leased) 21,000 International Münster, Germany 1 Two manufacturing, warehouse and office buildings (leased) 260,000 Shanghai, China 1 Seven manufacturing, warehouse, laboratory and office buildings 178,000 Lüneburg, Germany 1 A manufacturing and laboratory building 129,000 Guaymas, Mexico 2 Two manufacturing, warehouse and office buildings (leased) 89,000 Tokyo, Japan 1, 2 Four office, laboratory and warehouse buildings (leased) 76,000 Suzhou, China 3 Two manufacturing, warehouse and office buildings (leased) 75,000 Tecate, Mexico 2 A manufacturing, warehouse and office building (leased) 59,000 Bangalore, India 1, 2 An assembly, warehouse and office building 56,000 Maastricht, Netherlands 1 A manufacturing, warehouse and office building 54,000 Erkrath, Germany 1, 2 An office, laboratory and warehouse building (leased) 50,000 Boyle, Ireland 2 A manufacturing, warehouse and office building 47,000 Deurne, Netherlands 1 A manufacturing, warehouse and office building (leased) 46,000 Aylesbury, U.K. 3 A manufacturing, warehouse and office building (leased) 36,000 Galway, Ireland 2 An office, laboratory and warehouse building (leased) 36,000 Seongnam-City, South Korea 1, 2 An office, laboratory and warehouse building (leased) 35,000 Geleen, Limburg 1 A warehouse and office building 30,000 Sao Paulo, Brazil 1 An office, laboratory and warehouse building (leased) 23,000 El Marques, Mexico 1 A warehouse and office building 22,000 Singapore 1 Two warehouse and office buildings (leased) 22,000 Katzrin, Israel 2 An office, laboratory and warehouse building (leased) 20,000 Nordson Corporation 18 Table of Contents Business Segment - Property Identification Legend 1 - Industrial Precision Solutions 2 - Medical Fluid Systems 3 - Advanced Technology Solutions The facilities listed have adequate, suitable and sufficient capacity (production and non-production) to meet present and foreseeable demand for our products.
Biggest changeProperties Our principal owned and leased properties (defined as greater than 20,000 square feet or related to a principal operation) as of October 31, 2023 were as follows: Nordson Corporation 17 Table of Contents Location Description of Property Approximate Square Feet United States Amherst, Ohio 1 A manufacturing, laboratory and office complex 521,000 Norwich, Connecticut 2 A manufacturing, laboratory and office building 212,000 Carlsbad, California 3 Three manufacturing and office buildings (leased) 181,000 Duluth, Georgia 1 A manufacturing, laboratory and office building 176,000 Chippewa Falls, Wisconsin 1 A manufacturing, warehouse and office building (leased) 145,000 Swainsboro, Georgia 1 A manufacturing building 136,000 East Providence, Rhode Island 2 A manufacturing, warehouse and office building 116,000 Loveland, Colorado 2 A manufacturing, warehouse and office building 115,000 Salem, New Hampshire 2 Two manufacturing, warehouse and office buildings (leased) 83,000 Minneapolis, Minnesota 2 Two office, laboratory and warehouse buildings (leased) 69,000 Wixom, Michigan 1 A manufacturing, warehouse and office building (leased) 64,000 Golden Valley, Minnesota 3 An office building 61,000 Irwindale, California 1 An office building and lab (leased) 48,000 Easton, Pennsylvania 3 A manufacturing, warehouse and office building 45,000 Dayton, Ohio 1 A manufacturing, warehouse and office building 43,000 Vista, California 3 A manufacturing building (leased) 41,000 Hickory, North Carolina 1 A manufacturing, warehouse and office building (leased) 41,000 Elk Grove, Illinois 3 A manufacturing, warehouse and office building (leased) 40,000 San Jose, CA 2 A manufacturing, warehouse and office building (leased) 37,000 Westlake, Ohio Corporate headquarters 28,000 Liberty Lake, Washington 3 A manufacturing, warehouse and office building (leased) 27,000 Chattanooga, Tennessee 2 A manufacturing, warehouse and office building (leased) 25,000 Huntington Beach, California 2 An office, laboratory and warehouse building (leased) 21,000 International Rubiera, Italy 1 A manufacturing, five assembly, four warehouse and office buildings 325,000 Münster, Germany 1 Two manufacturing, warehouse and office buildings (leased) 260,000 Shanghai, China 1 Seven manufacturing, warehouse, laboratory and office buildings 178,000 Lüneburg, Germany 1 A manufacturing and laboratory building 129,000 Guaymas, Mexico 2 Two manufacturing, warehouse and office buildings (leased) 89,000 Tokyo, Japan 1, 2 Four office, laboratory and warehouse buildings (leased) 76,000 Suzhou, China 3 Two manufacturing, warehouse and office buildings (leased) 75,000 Tecate, Mexico 2 A manufacturing, warehouse and office building (leased) 59,000 Bangalore, India 1, 2 A manufacturing, assembly, warehouse and office building 56,000 Rosario, Argentina 1 An assembly, warehouse and office building 55,000 Maastricht, Netherlands 1 A manufacturing, warehouse and office building 54,000 Erkrath, Germany 1, 2 An office, laboratory and warehouse building (leased) 50,000 Boyle, Ireland 2 A manufacturing, warehouse and office building 47,000 Deurne, Netherlands 1 A manufacturing, warehouse and office building (leased) 46,000 Aylesbury, U.K. 3 A manufacturing, warehouse and office building (leased) 36,000 Galway, Ireland 2 An office, laboratory and warehouse building (leased) 36,000 Seongnam-City, South Korea 1, 2 An office, laboratory and warehouse building (leased) 35,000 Geleen, Netherlands 1 A warehouse and office building 30,000 Sao Paulo, Brazil 1 An office, laboratory and warehouse building (leased) 23,000 El Marques, Mexico 1 A warehouse and office building 22,000 Singapore 1 Two warehouse and office buildings (leased) 22,000 Katzrin, Israel 2 An office, laboratory and warehouse building (leased) 20,000 Nordson Corporation 18 Table of Contents Business Segment - Property Identification Legend 1 - Industrial Precision Solutions 2 - Medical Fluid Systems 3 - Advanced Technology Solutions The facilities listed have adequate, suitable and sufficient capacity (production and non-production) to meet present and foreseeable demand for our products.
Information about leases is reported in Note 11 of Notes to Consolidated Financial Statements that can be found in Part II, Item 8 of this document. Item 3. Legal Proceedings None.
Information about leases is reported in Note 10 of Notes to Consolidated Financial Statements that can be found in Part II, Item 8 of this document. Item 3. Legal Proceedings None.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

3 edited+0 added−0 removed0 unchanged
Biggest changeItem 3. Legal Proceedings 19 Item 4. Mine Safety Disclosures 19 Information about Our Executive Officers 20 PART II 21 Item 5. Market for the Company’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 21 Market Information and Dividends 21 Performance Graph 21 Item 7.
Biggest changeItem 3. Legal Proceedings 19 Item 4. Mine Safety Disclosures 19 Information about Our Executive Officers 20 PART II 22 Item 5. Market for the Company’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 22 Market Information and Dividends 22 Performance Graph 22 Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations 23 Critical Accounting Policies and Estimates 23 Item 7A. Quantitative and Qualitative Disclosures About Market Risk 30 Item 8.
Management’s Discussion and Analysis of Financial Condition and Results of Operations 24 Critical Accounting Policies and Estimates 24 Item 7A. Quantitative and Qualitative Disclosures About Market Risk 30 Item 8.
Financial Statements and Supplementary Data 31 Consolidated Statements of Income 31 Consolidated Statements of Comprehensive Income 32 Consolidated Balance Sheets 33 Consolidated Statements of Shareholders’ Equity 34 Consolidated Statements of Cash Flows 35 Notes to Consolidated Financial Statements 36 Management’s Report on Internal Control Over Financial Reporting 62 Report of Independent Registered Public Accounting Firm - Internal Controls Opinion 63 Report of Independent Registered Public Accounting Firm - Financial Statement Opinion 64
Financial Statements and Supplementary Data 31 Consolidated Statements of Income 31 Consolidated Statements of Comprehensive Income 32 Consolidated Balance Sheets 33 Consolidated Statements of Shareholders’ Equity 34 Consolidated Statements of Cash Flows 35 Notes to Consolidated Financial Statements 36 Management’s Report on Internal Control Over Financial Reporting 66 Report of Independent Registered Public Accounting Firm - Internal Controls Opinion 67 Report of Independent Registered Public Accounting Firm - Financial Statement Opinion 68

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

6 edited+5 added−0 removed7 unchanged
Biggest changeKelley 50 2020 Executive Vice President, Chief Financial Officer, 2020 James E. DeVries 63 2012 Executive Vice President, 2012 Stephen P. Lovass 53 2017 Executive Vice President, 2017 Jennifer McDonough 51 2021 Executive Vice President, General Counsel and Secretary, 2021 Shelly M. Peet 57 2007 Executive Vice President, 2009 Jeffrey A.
Biggest changeDeVries 64 2012 Executive Vice President, 2012 Stephen P. Lovass 54 2017 Executive Vice President, 2017 Jennifer McDonough 52 2021 Executive Vice President, General Counsel and Secretary, 2021 Joseph P.
Subramanian served as Vice President of the Electronics Processing Solutions business, having served in various roles of increasing responsibility since joining the Company in 2006. Nordson Corporation 20 Table of Contents PART II
Subramanian served as Vice President of the Electronics Processing Solutions business, having served in various roles of increasing responsibility since joining the Company in 2006. Nordson Corporation 21 Table of Contents PART II
Nordson Corporation 19 Table of Contents Information About Our Executive Officers Our executive officers as of October 31, 2022, were as follows: Name Age Officer Since Position or Office with The Company and Business Experience During the Past Five (5) Year Period Sundaram Nagarajan 60 2019 President and Chief Executive Officer, 2019 Joseph P.
Nordson Corporation 19 Table of Contents Information About Our Executive Officers Our executive officers as of October 31, 2023, were as follows: Name Age Officer Since Position or Office with the Company and Business Experience During the Past Five (5) Year Period Sundaram Nagarajan 61 2019 President and Chief Executive Officer, 2019 Stephen Shamrock 51 2023 Vice President and Corporate Controller, Interim Chief Financial Officer, 2023 James E.
Pembroke 55 2015 Executive Vice President, 2015 Srinivas Subramanian 52 2022 Executive Vice President, 2022 Effective August 1, 2019, Sundaram Nagarajan was appointed President and Chief Executive Officer and as a member of the Board of Directors of the Company. Prior to becoming our President and Chief Executive Officer, Mr.
Kelley 51 2020 Executive Vice President, 2020 Sarah Siddiqui 46 2023 Executive Vice President, 2023 Srinivas Subramanian 53 2022 Executive Vice President, 2022 Effective August 1, 2019, Sundaram Nagarajan was appointed President and Chief Executive Officer and as a member of the Board of Directors of the Company. Prior to becoming our President and Chief Executive Officer, Mr.
Nagarajan joined the Board of Directors of Wesco International (NYSE: WCC) in 2022. He previously served as a member of the Board of Directors of Sonoco Products Company (NYSE: SON) from 2015 to 2022. Effective July 6, 2020, Joseph P. Kelley was appointed as Executive Vice President, Chief Financial Officer of the Company. Mr.
Nagarajan joined the Board of Directors of Wesco International (NYSE: WCC) in 2022. He previously served as a member of the Board of Directors of Sonoco Products Company (NYSE: SON) from 2015 to 2022. Effective November 1, 2023, Stephen Shamrock was appointed as Vice President and Corporate Controller, Interim Chief Financial Officer. Prior to joining Nordson in March 2022, Mr.
She began her career as a business and finance attorney with the international law firm Morgan, Lewis and Bockius LLP. Effective August 1, 2022, Srinivas Subramanian was named Executive Vice President - Advanced Technology Solutions. Previously, Mr.
She began her career as a business and finance attorney with the international law firm Morgan, Lewis and Bockius LLP. Effective February 20, 2023, Sarah Siddiqui was named Executive Vice President - Chief Human Resources Officer. Prior to joining the Company, Ms.
Added
Shamrock was Senior Vice President, Treasurer and Chief Financial Officer from October 2021 to March 2022 and Vice President Finance from April 2021 to October 2021 of Wyandot Snacks, Inc., a custom snack manufacturer. Prior to Wyandot, Mr.
Added
Shamrock spent nearly seven years with Materion Corporation (NYSE: MTRN), an advanced materials company, where he was Vice President, Corporate Controller and Investor Relations, as well as Interim Chief Financial Officer for a five-month period. Mr. Shamrock also served in roles of increasing responsibility at The Goodyear Tire & Rubber Company (Nasdaq: GT), and the audit practice of KPMG, LLP.
Added
Effective November 1, 2023, Joseph P. Kelley was appointed as Executive Vice President and Industrial Precision Solutions segment leader. Previously, Mr. Kelley served as Executive Vice President and Chief Financial Officer of the Company since July 2020. Prior to joining the Company, Mr.
Added
Siddiqui served as Vice President of HR, Operations Engineering, Digital and Corporate Functions from August 2020 to February 2023 and Executive Director of HR, Operations, UTC Aerospace Systems from February 2018 Nordson Corporation 20 Table of Contents to July 2020 of Collins Aerospace at Raytheon Technologies (NYSE: RTX), an aerospace and defense company.
Added
Before joining Collins Aerospace, she had various roles of increasing responsibilities within the HR function at United Technologies and Citigroup. Effective August 1, 2022, Srinivas Subramanian was named Executive Vice President - Advanced Technology Solutions. Previously, Mr.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

6 edited+2 added−3 removed2 unchanged
Biggest changeMachinery $ 100.00 $ 138.84 $ 147.12 $ 123.15 $ 144.53 $ 207.30 $ 202.93 $ 241.15 $ 257.68 $ 366.04 $ 331.62 New Peer Group $ 100.00 $ 138.62 $ 145.80 $ 136.18 $ 148.19 $ 226.15 $ 221.17 $ 290.09 $ 326.22 $ 493.24 $ 418.37 Old Peer Group $ 100.00 $ 138.31 $ 150.81 $ 147.25 $ 151.00 $ 227.92 $ 233.26 $ 298.70 $ 323.26 $ 475.86 $ 419.71 Source: Zack’s Investment Research Nordson Corporation 21 Table of Contents Common Share Repurchases (in whole shares) Total Number of Shares Repurchased (1) Average Price Paid per Share Total Number of Shares Repurchased as Part of Publicly Announced Plans or Programs (2) Maximum Value of Shares That May Yet Be Purchased Under the Plans or Programs (2) August 1, 2022 to August 31, 2022 3,156 $ 224.00 3,027 $ 160,023 September 1, 2022 to September 30, 2022 66,415 $ 218.00 66,404 $ 645,547 October 1, 2022 to October 31, 2022 64,197 $ 215.01 64,017 $ 631,782 Total 133,768 133,448 (1) Includes shares tendered for taxes related to stock option exercises and vesting of restricted stock.
Biggest changeMachinery $ 100.00 $ 105.97 $ 88.70 $ 104.10 $ 149.31 $ 146.17 $ 173.69 $ 185.60 $ 263.65 $ 238.86 $ 255.39 New Peer Group $ 100.00 $ 106.28 $ 101.89 $ 109.29 $ 169.60 $ 168.47 $ 218.26 $ 238.88 $ 352.61 $ 288.34 $ 279.39 Old Peer Group $ 100.00 $ 105.03 $ 98.04 $ 104.53 $ 161.72 $ 158.16 $ 207.66 $ 231.78 $ 353.85 $ 299.04 $ 290.36 Source: Zack’s Investment Research Nordson Corporation 22 Table of Contents Common Share Repurchases (in whole shares) Total Number of Shares Repurchased (1) Average Price Paid per Share Total Number of Shares Repurchased as Part of Publicly Announced Plans or Programs (2) Maximum Value of Shares That May Yet Be Purchased Under the Plans or Programs (2) August 1, 2023 to August 31, 2023 85 $ 248.26 — $ 561,762 September 1, 2023 to September 30, 2023 8,171 $ 217.77 8,008 $ 560,018 October 1, 2023 to October 31, 2023 37,277 $ 215.18 37,277 $ 551,996 Total 45,533 45,285 (1) Includes shares tendered for taxes related to stock option exercises and vesting of restricted stock.
Shares purchased are treated as treasury shares until used for such purposes. The repurchase program will be funded using cash from operations and proceeds from borrowings under our credit facilities. The repurchase program does not have an expiration date. Nordson Corporation 22 Table of Contents
Shares purchased are treated as treasury shares until used for such purposes. The repurchase program will be funded using cash from operations and proceeds from borrowings under our credit facilities. The repurchase program does not have an expiration date. Nordson Corporation 23 Table of Contents
Performance Graph The following graph compares the 10-year cumulative return, calculated on a dividend-reinvested basis, from investing $100 on November 1, 2012 in Nordson common shares, the S&P 500 Index, the S&P MidCap 400 Index, the S&P 500 Industrial Machinery Index, the S&P MidCap 400 Industrial Machinery Index and our New Peer Group, which includes: AME, B, DCI, ENTG, GGG, GTLS, IEX, ITT, KEYS, LECO, MKSI, NATI, TER, TRMB, WTS and WWD.
Performance Graph The following graph compares the 10-year cumulative return, calculated on a dividend-reinvested basis, from investing $100 on November 1, 2013 in Nordson common shares, the S&P 500 Index, the S&P MidCap 400 Index, the S&P 500 Industrial Machinery Index, the S&P MidCap 400 Industrial Machinery Index and our New Peer Group, which includes: AME, B, DCI, ENTG, GGG, GTLS, ICUI, IEX, ITT, KEYS, LECO, MKSI, NATI, TER, TFX, TRMB, VNT, WTS and WWD.
Item 5. Market for the Company’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Market Information and Dividends Our common shares are listed on the Nasdaq Global Select Market under the symbol NDSN. As of November 30, 2022, there were 1,185 record shareholders.
Item 5. Market for the Company’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Market Information and Dividends Our common shares are listed on the Nasdaq Global Select Market under the symbol NDSN. As of November 30, 2023, there were 1,132 record shareholders.
In September 2022, the board of directors authorized the repurchase of up to an additional $500,000 of the Company's common shares. Approximately $631,782 of the total $1,500,000 authorized remained available for share repurchases at October 31, 2022. Uses for repurchased shares include the funding of benefit programs including stock options and restricted stock.
In September 2022, the board of directors authorized the repurchase of up to an additional $500,000 of the Company's common shares. Approximately $551,996 of the total $1,500,000 authorized remained available for share repurchases at October 31, 2023. Uses for repurchased shares include the funding of benefit programs including stock options and restricted stock.
For 2022, the Company made changes to its peer group to remove Enerpac Tool Group Corp., Albany International Corp., Gardner Denver Holdings, Inc. (fka Ingersoll Rand Inc.) and Roper Technologies, Inc., because each had fallen outside of the parameters used to establish the peer group and to add MKS Instruments, Inc. and Trimble Inc., which fell within such parameters.
For 2023, the Company made changes to its peer group to add ICU Medical, Inc., Teleflex Incorporated and Vontier Corporation, because each had fallen inside of the parameters used to establish the peer group.
Removed
FLIR Systems, Inc. was also removed from the New Peer Group because it was acquired by Teledyne Technologies Incorporated (NYSE: TDY) and ceased to be an independent public company.
Added
Company/Market/Peer Group 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Nordson Corporation $ 100.00 $ 107.27 $ 101.05 $ 143.92 $ 183.81 $ 179.62 $ 232.19 $ 288.97 $ 382.91 $ 342.16 $ 326.94 S&P 500 Index $ 100.00 $ 117.27 $ 123.37 $ 128.93 $ 159.40 $ 171.11 $ 195.62 $ 214.62 $ 306.72 $ 261.90 $ 288.47 S&P MidCap 400 $ 100.00 $ 111.65 $ 115.48 $ 122.70 $ 151.51 $ 153.05 $ 166.85 $ 164.93 $ 245.59 $ 217.25 $ 214.95 S&P 500 Ind.
Removed
Company/Market/Peer Group 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Nordson Corporation $ 100.00 $ 123.28 $ 132.25 $ 124.58 $ 177.43 $ 226.60 $ 221.44 $ 286.25 $ 356.25 $ 472.06 $ 421.83 S&P 500 Index $ 100.00 $ 127.18 $ 149.14 $ 156.89 $ 163.97 $ 202.72 $ 217.61 $ 248.78 $ 272.94 $ 390.07 $ 333.08 S&P MidCap 400 $ 100.00 $ 133.48 $ 149.04 $ 154.14 $ 163.78 $ 202.23 $ 204.30 $ 222.72 $ 220.16 $ 327.82 $ 289.99 S&P 500 Ind.
Added
Machinery $ 100.00 $ 112.77 $ 112.60 $ 128.57 $ 177.25 $ 163.55 $ 199.45 $ 218.77 $ 288.76 $ 250.71 $ 274.53 S&P MidCap 400 Ind.
Removed
Machinery $ 100.00 $ 142.79 $ 161.02 $ 160.77 $ 183.57 $ 253.08 $ 233.52 $ 284.79 $ 312.37 $ 412.31 $ 357.98 S&P MidCap 400 Ind.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

48 edited+17 added−26 removed32 unchanged
Biggest changeThe 2.1 percent increase was driven by a 5.3 percent first-year effect of an acquisition impact and base business growth of 0.3 percentage points, partially offset by favorable currency translation effects which decreased costs 3.5 percentage points. Selling and administrative expenses as a percentage of sales decreased to 28.0 percent in 2022 from 30.0 percent in 2021.
Biggest changeNordson Corporation 26 Table of Contents Selling and administrative expenses were $752,644 in 2023, up from $724,176 in 2022. The 3.9 percent increase was driven by a 8.3 percent increase due to the first-year effect of an acquisition, including acquisition costs, partially offset by lower base business costs and favorable currency translation effects which decreased costs by 5.3 percent.
Based on the results shown in the table below and based on our measurement date of August 1, 2022, our conclusion is that no goodwill was impaired in 2022. Potential events or circumstances, such as a sustained downturn in global economies, could have a negative effect on estimated fair values.
Based on the results shown in the table below and based on our measurement date of August 1, 2023, our conclusion is that no goodwill was impaired in 2023. Potential events or circumstances, such as a sustained downturn in global economies, could have a negative effect on estimated fair values.
(4) Purchase obligations primarily represent commitments for materials used in our manufacturing processes that are not recorded in our Consolidated Balance Sheet.
(4) Purchase obligations primarily represent commitments for materials used in our manufacturing processes that are not recorded on our Consolidated Balance Sheet.
Goodwill is not amortized but is tested for impairment annually at the reporting unit level, or more often if indications of impairment exist. We test goodwill in accordance with Accounting Standards Codification ("ASC") 350. We did not record any goodwill impairment charges in 2022.
Goodwill is not amortized but is tested for impairment annually at the reporting unit level, or more often if indications of impairment exist. We test goodwill in accordance with Accounting Standards Codification ("ASC") 350. We did not record any goodwill impairment charges in 2023.
As a general rule, a weakening of the United States dollar relative to foreign currencies has a favorable effect on sales and net income, while a strengthening of the dollar has a detrimental effect. In 2022, as compared with 2021, the United States dollar was generally stronger against foreign currencies.
As a general rule, a weakening of the United States dollar relative to foreign currencies has a favorable effect on sales and net income, while a strengthening of the dollar has a detrimental effect. In 2023, as compared with 2022, the United States dollar was generally stronger against foreign currencies.
The assumed rate of compensation increases used to determine the present value of our domestic pension plan obligations was 4.30 percent and 4.00 percent at October 31, 2022 and October 31, 2021, respectively. Annual expense amounts are determined based on the discount rate used at the end of the prior year.
The assumed rate of compensation increases used to determine the present value of our domestic pension plan obligations was 3.92 percent and 4.30 percent at October 31, 2023 and October 31, 2022, respectively. Annual expense amounts are determined based on the discount rate used at the end of the prior year.
The liabilities associated with the Company's international pension plans and OPEB are not as materially sensitive to changes in assumptions as the pension plan in the United States. The weighted-average discount rate used to determine the present value of our domestic pension plan obligations was 5.70 percent at October 31, 2022 and 3.02 percent at October 31, 2021.
The liabilities associated with the Company's international pension plans and OPEB are not as materially sensitive to changes in assumptions as the pension plan in the United States. The weighted-average discount rate used to determine the present value of our domestic pension plan obligations was 6.08 percent at October 31, 2023 and 5.70 percent at October 31, 2022.
The primary sources were net income adjusted for non-cash income and expenses (consisting of depreciation and amortization, non-cash stock compensation, provision for losses on receivables, deferred income taxes, other non-cash expense, gain/loss on sale of property, plant and equipment, and non-cash pension settlement charges), which were $676,200 in 2022, compared to $590,607 in 2021.
The primary sources were net income adjusted for non-cash income and expenses (consisting of depreciation and amortization, non-cash stock compensation, provision for losses on receivables, deferred income taxes, other non-cash expense, gain/loss on sale of property, plant and equipment, and non-cash pension settlement charges), which were $615,496 in 2023, compared to $676,200 in 2022.
We consult with and consider the opinions of financial and actuarial experts in developing appropriate return assumptions. The expected rate of return (long-term investment rate) on domestic pension assets used to determine net benefit costs was 5.75 percent in both 2022 and 2021.
We consult with and consider the opinions of financial and actuarial experts in developing appropriate return assumptions. The expected rate of return (long-term investment rate) on domestic pension assets used to determine net benefit costs was 6.40 percent and 5.75 percent in 2023 and 2022, respectively.
Nordson Corporation 23 Table of Contents The WACC represents the blended average required rate of return for equity and debt capital based on observed market return data and company specific risk factors. For 2022, the WACC rates used ranged from 8.3 percent to 11.0 percent depending upon the reporting unit's size, end market volatility and projection risk.
The WACC represents the blended average required rate of return for equity and debt capital based on observed market return data and company specific risk factors. For 2023, the WACC rates used ranged from 8.3 percent to 11.0 percent depending upon the reporting unit's size, end market volatility and projection risk.
These risks and uncertainties include, but are not limited to, U.S. and international economic conditions; financial and market conditions; currency exchange rates and devaluations; possible acquisitions including the Company’s ability to complete and successfully integrate acquisitions, including the integration of CyberOptics; the Company’s ability to successfully divest or dispose of businesses that are deemed not to fit with its strategic plan; the effects of changes in U.S. trade policy and trade agreements; the effects of changes in tax law; and the possible effects of events beyond our control, such as political unrest, including the conflict between Russia and Ukraine, acts of terror, natural disasters and pandemics, including the COVID-19 pandemic.
These risks and uncertainties include, but are not limited to, U.S. and international economic conditions; financial and market conditions; currency exchange rates and devaluations; possible acquisitions including the Company’s ability to complete and successfully integrate acquisitions, including the integration of the ARAG Group and CyberOptics; the Company’s ability to successfully divest or dispose of businesses that are deemed not to fit with its strategic plan; the effects of changes in U.S. trade policy and trade agreements; the effects of changes in tax law; and the possible effects of events beyond our control, such as political unrest, including the conflicts in Europe and the Middle East, acts of terror, natural disasters and pandemics.
The impact could result in either higher or lower amortization and/or depreciation expense. Goodwill - Goodwill is the excess of purchase price over the fair value of tangible and identifiable intangible net assets acquired in various business combinations.
This judgment could result in either a higher or lower value assigned to amortizable or depreciable assets. The impact could result in either higher or lower amortization and/or depreciation expense. Goodwill - Goodwill is the excess of purchase price over the fair value of tangible and identifiable intangible net assets acquired in various business combinations.
(2) Refer to Note 11 to the Consolidated Financial Statements for further discussion. (3) Pension and postretirement plan funding amounts will be determined based on the future funded status of the plans and therefore cannot be estimated at this time. Refer to Note 7 to the Consolidated Financial Statements for further discussion.
(2) Refer to Note 10 to the Consolidated Financial Statements for further discussion. Nordson Corporation 28 Table of Contents (3) Pension and postretirement plan funding amounts will be determined based on the future funded status of the plans and therefore cannot be estimated at this time. Refer to Note 6 to the Consolidated Financial Statements for further discussion.
Nordson Corporation 28 Table of Contents New Accounting Standards There have been no new accounting standards issued which would require either disclosure or adoption during the current period by the Company.
New Accounting Standards There have been no new accounting standards issued which would require either disclosure or adoption during the current period by the Company.
If 2020 exchange rates had been in effect during 2021, sales would have been approximately $55,200 lower and third-party costs would have been approximately $24,600 lower. These effects on reported sales do not include the impact of local price adjustments made in response to changes in currency exchange rates.
If 2021 exchange rates had been in effect during 2022, sales would have been approximately $103,829 higher and third-party costs would have been approximately $68,788 higher. These effects on reported sales do not include the impact of local price adjustments made in response to changes in currency exchange rates.
If 2021 exchange rates had been in effect during 2022, sales would have been approximately $103,829 higher and third-party costs would have been approximately $68,788 higher. In 2021, as compared with 2020, the United States dollar was generally weaker against foreign currencies.
If 2022 exchange rates had been in effect during 2023, sales would have been approximately $23,153 higher and third-party costs would have been approximately $15,210 higher. In 2022, as compared with 2021, the United States dollar was generally stronger against foreign currencies.
For a discussion of other changes from the fiscal year ended October 31, 2021 to the fiscal year ended October 31, 2020, refer to Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, of our Annual Report on Form 10-K for the fiscal year ended October 31, 2021. 2022 compared to 2021 Worldwide sales for 2022 were $2,590,278, an increase of 9.7 percent from 2021 sales of $2,362,209.
For a discussion of other changes from the fiscal year ended October 31, 2022 to the fiscal year ended October 31, 2021, refer to Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, of our Annual Report on Form 10-K for the fiscal year ended October 31, 2022.
WACC Excess of FV over CV Goodwill Industrial Precision Solutions Segment - Adhesives 8.3% 619% $ 501,082 Industrial Precision Solutions Segment - Industrial Coating Systems 11.0% 745% $ 24,083 Advanced Technology Solutions Segment - Electronics Systems 9.5% 497% $ 27,110 Advanced Technology Solutions Segment - Test & Inspection 11.0% 354% $ 87,248 Medical and Fluid Solutions Segment - Fluid Management 9.5% 237% $ 1,713,531 Pension plan in the United States - The measurement of the liabilities related to our domestic pension plan is based on management’s assumptions related to future factors, including interest rates, return on pension plan assets, compensation increases, mortality and turnover assumptions, and health care cost trend rates.
WACC Excess of FV over CV Goodwill Industrial Precision Solutions Segment - Adhesives 8.3% 697% $ 511,799 Industrial Precision Solutions Segment - Industrial Coating Systems 11.0% 678% $ 24,084 Advanced Technology Solutions Segment - Electronics Systems 9.0% 387% $ 27,534 Advanced Technology Solutions Segment - Test & Inspection 9.5% 168% $ 371,425 Medical and Fluid Solutions Segment - Fluid Management 9.0% 186% $ 1,175,938 Pension plan in the United States - The measurement of the liabilities related to our domestic pension plan is based on management’s assumptions related to future factors, including interest rates, return on pension plan assets, compensation increases, mortality and turnover assumptions, and health care cost trend rates.
The income tax provision for 2022 included a tax benefit of $3,273 due to our share-based payment transactions. Our income tax provision for 2021 included a tax benefit of $5,982 due to our share-based payment transactions. Net income was $513,103, or $8.81 per diluted share, in 2022, compared to net income of $454,368, or $7.74 per diluted share, in 2021.
Our income tax provision for 2022 included a tax benefit of $3,273 due to our share-based payment transactions. Net income was $487,493, or $8.46 per diluted share, in 2023, compared to net income of $513,103, or $8.81 per diluted share, in 2022.
See Note 6 - Goodwill and intangible assets for further details regarding the valuation methodologies used. In 2022, 2021 and 2020, the results of our annual impairment tests indicated no impairment. The fair value ("FV") was compared to the carrying value ("CV") for each reporting unit.
See Note 5 to the Consolidated Financial Statements for further details regarding the valuation methodologies used. Nordson Corporation 24 Table of Contents In 2023, 2022 and 2021, the results of our annual impairment tests indicated no impairment. The fair value ("FV") was compared to the carrying value ("CV") for each reporting unit.
Dividend payments were $125,914 in 2022, up from $97,683 in 2021 due to an increase in dividend on our common shares, on an annual basis, to $2.18 per share from $1.69 per share. Issuance of common shares related to employee benefit plans generated $12,124 of cash in 2022, down from $31,780 in 2021.
Dividend payments were $150,356 in 2023, up from $125,914 in 2022 due to an increase in dividends on our common shares, on an annual basis, to $2.63 per share from $2.18 per share. Issuance of common shares related to employee benefit plans generated $21,373 of cash in 2023, up from $12,124 in 2022.
Industrial Precision Solutions Sales of the Industrial Precision Solutions segment were $1,337,242 in 2022, an increase of 7.2 percent, from 2021 sales of $1,246,947. The increase was the result of an organic sales increase of 7.0 percent and a net acquisition / divestiture impact of 6.1 percent, partially offset by unfavorable currency effects of 5.9 percent.
Industrial Precision Solutions Sales of the Industrial Precision Solutions segment were $1,391,046 in 2023, an increase of 4.0 percent, from 2022 sales of $1,337,242. The increase was the result of an organic sales increase of 3.1 percent and an increase of 1.9 percent from acquisitions, partially offset by unfavorable currency effects of 1.0 percent.
Medical and Fluid Solutions Sales of the Medical and Fluid Solutions segment were $690,177 in 2022, an increase of 7.6 percent from 2021 sales of $641,654. The increase was the result of an organic sales increase of 9.7 percent partially offset by unfavorable currency effects that decreased sales by 2.1 percent.
Medical and Fluid Solutions Sales of the Medical and Fluid Solutions segment were $660,316 in 2023, a decrease of 4.3 percent from 2022 sales of $690,177. The decrease was the result of an organic sales decrease of 3.7 percent and unfavorable currency effects that decreased sales by 0.6 percent.
Any resulting differences are recorded in the period they become known. CyberOptics Acquisition On November 3, 2022, the Company completed the acquisition of CyberOptics Corporation (“CyberOptics”) pursuant to the terms of the Agreement and Plan of Merger, dated as of August 7, 2022, by and among the Company, Meta Merger Company and CyberOptics.
Any resulting differences are recorded in the period they become known. ARAG Group Acquisition On August 24, 2023, the Company completed the acquisition of the ARAG Group pursuant to the terms of the Sale and Purchase Agreement, dated as of June 25, 2023, by and among the Company and the Sellers.
Below is a detailed discussion comparison of our results of operations for the fiscal years ended October 31, 2022 and October 31, 2021 as well as a comparison of sales and segment results for fiscal years October 31, 2021 and October 31, 2020 due to our change in operating segments and geographic regions.
Results of Operations Below is a detailed discussion comparison of our results of operations for the fiscal years ended October 31, 2023 and October 31, 2022.
We provide valuation allowances against deferred tax assets if, based on available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Management believes the valuation allowances are adequate after considering future taxable income, allowable carryforward periods and ongoing prudent and feasible tax planning strategies.
We provide valuation allowances Nordson Corporation 25 Table of Contents against deferred tax assets if, based on available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized.
On a geographic basis, sales in the Americas region were $969,110, an increase of 8.0 percent from 2020, with organic sales volume increasing 10.7 percent and a favorable currency effect of 0.4 percent, partially offset by a net 3.0 percent decrease from acquisitions and divestitures.
On a geographic basis, sales in the Americas region were $1,149,760, an increase of 4.8 percent from 2022, with organic sales increasing 2.0 percent, a 2.4 percent increase from acquisitions, and favorable currency effects of 0.4 percent.
Net repayment of long-term debt and long-term borrowings used $33,908 of cash in 2022, compared to $289,416 used in 2021. In 2022, cash of $262,869 was used for the purchase of treasury shares, up from $60,970 used in 2021.
Proceeds and repayments of long-term debt provided $976,043 of cash in 2023, compared to $33,908 used in 2022. In 2023, cash of $89,708 was used for the purchase of treasury shares, down from $262,869 used in 2022.
Sales in the Asia Pacific region were $775,607, an increase of 12.8 percent from 2020, with organic sales volume increasing 11.8 percent and favorable currency effects of 3.3 percent, partially offset by a net 2.3 percent decrease from acquisitions and divestitures. Sales in Europe were $617,492, an increase of 15.1 percent from 2020.
Sales in the Asia Pacific region were $796,196, a decrease of 6.1 percent from 2022, with organic sales decreasing 8.2 percent and unfavorable currency effects of 3.1 percent, partially offset by a 5.2 percent increase from acquisitions.
Cash used in investing activities was $222,761 in 2022, compared to $33,169 in 2021. In 2022, $171,613 in cash was used, utilizing cash from operations, for acquisitions compared to $0 used in 2021. Capital expenditures were $51,428 in 2022 compared to $38,303 in 2021. Cash used in financing activities was $416,006 in 2022, compared to $422,913 cash used in 2021.
In 2023, $1,422,780 in cash was used for acquisitions, utilizing borrowings and cash from operations, compared to $171,613 used in 2022. Capital expenditures were $34,583 in 2023 compared to $51,428 in 2022. Cash provided by financing activities was $750,512 in 2023, compared to $416,006 cash used in 2022.
The increase consisted of a 10.8 percent improvement in organic sales, inclusive of pricing to offset inflation, and a net 3.3 percent increase from acquisitions and divestitures, partially offset by unfavorable currency translation effects that decreased sales by 4.4 percent.
The increase consisted of a volume increase of 3.7 percent, inclusive of an organic sales decrease of 9.2 percent and a 12.9 percent increase from acquisitions, partially offset by unfavorable currency effects that decreased sales by 1.1 percent.
Sales growth was generally strong across all product lines and in all regions. Operating profit as a percentage of sales increased to 30.9 percent in 2021 compared to 26.6 percent in 2020 . The 4.3 percentage point improvement in operating margin was principally driven by greater selling and administrative expense leverage associated with the sales volume growth.
Organic sales growth was generally strong across most product lines and regions. Operating profit as a percentage of sales increased to 33.1 percent in 2023 compared to 32.5 percent in 2022. The 0.6 percentage point improvement in operating margin was primarily the result of improved selling and administrative expense leverage due to increased sales volumes.
United States 1% Point Increase 1% Point Decrease Discount rate: Effect on total net periodic pension cost in 2022 $ (6,706) $ 8,128 Effect on pension obligation as of October 31, 2022 $ (39,523) $ 48,781 Expected return on assets: Effect on total net periodic pension cost in 2022 $ (5,094) $ 4,994 Compensation increase: Effect on total net periodic pension cost in 2022 $ 5,654 $ (4,965) Effect on pension obligation as of October 31, 2022 $ 16,488 $ (14,861) Nordson Corporation 24 Table of Contents Income taxes – Income taxes are estimated based on income for financial reporting purposes.
United States 1% Point Increase 1% Point Decrease Discount rate: Effect on total net periodic pension cost in 2023 $ (1,698) $ 2,101 Effect on pension obligation as of October 31, 2023 $ (38,854) $ 47,913 Expected return on assets: Effect on total net periodic pension cost in 2023 $ (4,081) $ 4,081 Compensation increase: Effect on total net periodic pension cost in 2023 $ 2,480 $ (2,187) Effect on pension obligation as of October 31, 2023 $ 15,052 $ (13,644) Income taxes – Income taxes are estimated based on income for financial reporting purposes.
The 2.0 percentage point decrease was due primarily to sales growth leverage. Operating profit as a percentage of sales increased to 27.1 percent in 2022 compared to 26.0 percent in 2021.
Selling and administrative expenses as a percentage of sales increased slightly to 28.6 percent in 2023 from 28.0 percent in 2022. The 0.6 percentage point increase was primarily due to cost structure simplification actions taken in 2023. Operating profit as a percentage of sales decreased to 25.6 percent in 2023 compared to 27.1 percent in 2022.
During 2022, the Company recognized non-cash pension settlement charges of $41,221 related to the purchase of an annuity contract to relieve the Company of certain U.S. pension benefit obligations. Other income in 2022 was $8,527 compared to other expense of $17,610 in 2021 . Included in other income in 2022 w ere $6,270 in net foreign currency gains.
The increase was due to higher average debt levels and higher average interest rates compared to the prior year primarily driven by acquisitions. During 2022, the Company recognized non-cash pension settlement charges of $41,221 related to the purchase of an annuity contract to relieve the Company of certain U.S. pension benefit obligations.
The following is a summary of significant changes by balance sheet caption from October 31, 2021 to October 31, 2022. Receivables-net and inventories-net combined increased $104,127 due to increased business activity during the year. Goodwill increased $131,129 due to the acquisition of NDC Technologies. Intangible assets-net decreased $27,965 primarily due to amortization expense.
The following is a summary of significant changes by balance sheet caption from October 31, 2022 to October 31, 2023. Receivables-net and inventories-net combined increased $124,950, goodwill increased $979,508 , and i ntangible assets-net increased $343,342 principally due to the acquisitions of the ARAG Group and Cy berOptics.
Gross profit, expressed as a percentage of sales, decreased to 55.1 percent in 2022 from 56.1 percent in 2021. The 1.0 percentage point decrease in gross margin was driven by the impact of passing through inflationary cost increases, partially offset by a favorable divestiture impact. Selling and administrative expenses were $724,176 in 2022, up from $708,953 in 2021.
Gross profit, expressed as a percentage of sales, decreased to 54.2 percent in 2023 from 55.1 percent in 2022. The 0.9 percentage point decrease in gross margin was primarily driven by incremental inventory step-up amortization related to acquisitions in 2023 of $8,862 and unfavorable foreign currency effects.
In connection with the CyberOptics acquisition, we borrowed under the revolving credit facility. Our operating performance, balance sheet position and financial ratios for 2022 remained strong. Total debt decreased $78,040 during 2022.
Our operating performance, balance sheet position and financial ratios for 2023 remained strong. Total debt increased $999,199 during 2023 primarily d ue to the acquisition of the ARAG Group.
The increase in sales Nordson Corporation 25 Table of Contents consisted of a 10.7 percent organic sales volume increase and a net 3.9 percent increase from acquisitions and divestitures, partially offset by unfavorable currency effects of 10.0 percent. Cost of sales were $1,163,742 in 2022, up 12.1 percent from $1,038,129 in 2021.
Sales in Europe were $682,676, an increase of 5.7 percent from 2022, with organic sales increasing 1.4 percent, a 4.2 percent increase from acquisitions, and favorable currency effects of 0.1 percent. Cost of sales were $1,203,227 in 2023, up 3.4 percent from $1,163,742 in 2022.
The valuations are generally based upon future cash flow projections for the acquired assets, discounted to present value. The determination of fair values requires significant judgment by management, particularly with respect to the value of identifiable intangible assets. This judgment could result in either a higher or lower value assigned to amortizable or depreciable assets.
The valuations are generally based upon future cash flow projections for the acquired assets, discounted to present value.
Sales outside the United States accounted for 66.8 percent of total sales in 2022, as compared to 66.6 percent in 2021.
The increase consisted of a 3.8 percent increase from acquisitions, partially offset by a 1.4 percent decline in organic sales and unfavorable currency translation effects that decreased sales by 0.9 percent. Sales outside the United States accounted for 66.2 percent of total sales in 2023, as compared to 66.8 percent in 2022.
We also revised our geographic regions, such that the United States and Japan are now included in the Americas and Asia Pacific regions, respectively. As such, our geographical regions as used throughout this annual report include the Americas (United States, Canada, Mexico and Central and South America), Asia Pacific (including Japan) and Europe.
As used throughout this annual report, geographic regions include the Americas (United States, Canada, Mexico and Central and South America), Asia Pacific and Europe. 2023 compared to 2022 Worldwide sales for 2023 were $2,628,632, an increase of 1.5 percent from 2022 sales of $2,590,278.
Contractual and Other Material Cash Obligations The following table summarizes contractual and other material cash obligations as of October 31, 2022: Payments Due by Period Total Less than 1 Year 1-3 Years 4-5 Years After 5 Years Debt (1) $ 738,822 $ 392,537 $ 196,285 $ 60,000 $ 90,000 Interest payments on long-term debt (1) 50,846 16,222 19,720 9,214 5,690 Finance lease obligations (2) 17,826 4,907 5,439 1,367 6,113 Operating leases (2) 117,411 15,738 26,470 21,327 53,876 Contributions related to pension and postretirement benefits (3) 6,335 6,335 — — — Purchase obligations (4) 238,530 232,675 5,855 — — Total obligations $ 1,169,770 $ 668,414 $ 253,769 $ 91,908 $ 155,679 (1) Refer to Note 10 to the Consolidated Financial Statements for further discussion.
Contractual and Other Material Cash Obligations The following table summarizes contractual and other material cash obligations as of October 31, 2023: Payments Due by Period Total Less than 1 Year 1-3 Years 4-5 Years After 5 Years Debt (1) $ 1,749,305 $ 115,662 $ 435,643 $ 648,000 $ 550,000 Interest payments on long-term debt (1) 416,926 58,526 160,695 81,884 115,821 Finance lease obligations (2) 18,349 4,918 6,055 1,633 5,743 Operating leases (2) 119,317 16,853 28,441 21,172 52,851 Contributions related to pension and postretirement benefits (3) 6,770 6,770 — — — Purchase obligations (4) 192,453 187,498 4,943 12 — Total obligations $ 2,503,120 $ 390,227 $ 635,777 $ 752,701 $ 724,415 (1) Refer to Note 9 to the Consolidated Financial Statements for further discussion.
Approximately 53 percent of our consolidated cash and cash equivalents were held at various foreign subsidiaries as of October 31, 2022. On November 3, 2022, net cash of $380,000 was used to fund the acquisition of CyberOptics as disclosed in Note 19 to these Consolidated Financial Statements.
Approximately 81 percent of our consolidated cash and cash equivalents were held at various foreign subsidiaries as of October 31, 2023. Nordson Corporation 27 Table of Contents Cash provided by operating activities was $641,282 in 2023, compared to $513,131 in 2022.
This represented a 12.9 percent increase in net income and a 13.8 percent increase in diluted earnings per share. The increase of $1.07 per diluted share was primarily driven by sales growth, strong gross margins and selling and administrative expense leverage.
This represented a 5.0 percent decrease in net income and a 4.1 percent decrease in diluted earnings per share. The decrease of $0.35 per diluted share was primarily driven by higher interest expense and acquisition-related expenses in 2023 compared to non-cash pension settlement charges in 2022.
Sales growth was generally strong across all product lines and in all regions. Operating profit as a percentage of sales increased to 31.5 percent in 2022 compared to 30.9 percent in 2021.
The organic sales decrease was driven by lower demand for the medical fluid components and fluid solutions product lines, materially offset by continued strength in medical interventional solutions product lines. Operating profit as a percentage of sales decreased to 28.7 percent in 2023 compared to 31.5 percent in 2022.
Sales growth was strong across all product lines and in all regions. Nordson Corporation 26 Table of Contents Operating profit as a percentage of sales increased to 23.7 percent in 2022 compared to 15.5 percent in 2021.
The organic sales decrease was driven by lower demand in electronics dispense product lines, partially offset by stronger demand in test and inspection product lines. Operating profit as a percentage of sales decreased to 17.6 percent in 2023 compared to 23.7 percent in 2022.
The 5.5 percentage point improvement in operating margin was principally driven by greater selling and administrative expense leverage associated with the sales volume growth and cost simplification actions taken in 2020. Liquidity and Capital Resources Cash and cash equivalents decreased $136,515 in 2022 to $163,457 as of October 31, 2022 compared to $299,972 as of October 31, 2021.
The 6.1 percentage point decline in operating margin was primarily due to fees, severance, and non-cash inventory charges of $10,295 associated with the CyberOptics acquisition and factory inefficiencies due to reduced volumes. Liquidity and Capital Resources Cash and cash equivalents decreased $47,778 in 2023 to $115,679 as of October 31, 2023 compared to $163,457 as of October 31, 2022.
Removed
Effective in the fourth quarter of 2022, we realigned our former two operating segments into three: Industrial Precision Solutions, Medical and Fluid Solutions, and Advanced Technology Solutions. Previously, Advanced Technology Solutions was comprised of Medical and Fluid Solutions and the former Advanced Technology Solutions. Our segment change did not have any impact on our reporting units.
Added
Determining the fair value of assets acquired and liabilities assumed requires management’s judgment and often involves the use of significant estimates and assumptions, including assumptions with respect to future revenue growth rates and EBITDA margins, discount rates, customer attrition rates, and asset lives, among other items.
Removed
CyberOptics is a leading global developer and manufacturer of high-precision 3D optical sensing technology solutions. The CyberOptics acquisition expanded our test and inspection platform, providing differentiated technology that expands our product offering in the semiconductor and electronics industries and will be reported in our Advanced Technology Solutions segment.
Added
Management believes the valuation allowances are adequate after considering future taxable income, allowable carryforward periods and ongoing prudent and feasible tax planning strategies.
Removed
The all-cash transaction of approximately $380,000, net of cash acquired, was funded using our revolving credit facility and is not expected to have a material impact on our Consolidated Financial Statements Results of Operations Effective in the fourth quarter of 2022, we realigned and separated our two former operating segments into the following three operating segments: Industrial Precision Solutions, Medical and Fluid Solutions, and Advanced Technology Solutions.
Added
ARAG is a global market and innovation leader in the development, production and supply of precision control systems and smart fluid components for agricultural spraying. ARAG operates as a division of our Industrial Precision Solutions segment.
Removed
Previously, Advanced Technology Solutions was comprised of Medical and Fluid Solutions and the former Advanced Technology Solutions. Existing product lines were unchanged as part of this new structure. We made these changes to realign our management team and our operating segments.
Added
In anticipation of the acquisition, the Company entered into a €760,000 senior unsecured term loan facility with a group of banks in August 2023 (the “364-Day Term Loan Facility”).
Removed
We believe this realignment gives us better visibility into our medical and electronics platforms, which have grown significantly through both organic and acquisitive opportunities, including through the recent acquisition of CyberOptics. We also believe that the three revised operating segments better reflect how we now manage the Company, allocate resources and assess performance of the businesses.
Added
The all-cash ARAG acquisition of approximately €957,000, net of the repayment of approximately €30,300 of debt of the acquired companies, was funded using borrowings under the 364-Day Term Loan Facility and the Company's revolving credit facility.
Removed
On a geographic basis, sales in the Americas region were $1,096,596, an increase of 13.2 percent from 2021, with sales volume increasing 10.9 percent and a net 2.8 percent increase from acquisitions and divestitures, partially offset by unfavorable currency effect of 0.5 percent.
Added
The 364-Day Term Loan Facility was subsequentially paid off in September 2023 with the net proceeds of a senior notes offering (see Note 9 to the Consolidated Financial Statements for additional details). Based on the fair value of the assets acquired and the liabilities assumed, goodwill of $694,900 and identifiable intangible assets of $353,500 were recorded.
Removed
Sales in the Asia Pacific region were $848,079, an increase of 9.3 percent from 2021, with sales volume increasing 11.0 percent and a net 3.2 percent increase from acquisitions and divestitures, partially offset by unfavorable currency effects of 4.9 percent. Sales in Europe were $645,603, an increase of 4.6 percent from 2021.
Added
The identifiable intangible assets consist primarily of $27,500 of tradenames (amortized over nine years), $31,000 of technology (amortized over five years), and $295,000 of customer relationships (amortized over twenty-two years). The financial results of the ARAG Group acquisition are not expected to have a material impact on our Consolidated Financial Statements.
Removed
The 1.1 percent increase in operating margin was primarily driven by selling and administrative expense leverage due to the 10.8 percent increase in organic sales, partially offset by the impact of passing through inflationary cost increases. Operating capacity for each of our segments can support fluctuations in order activity without significant changes in operating costs.
Added
The 1.5 percent decrease in operating margin was primarily driven by inventory step-up amortization and other costs related to the first-year effect of acquisitions. Interest expense in 2023 was $59,505, an increase of $37,092, or 165.5 percent, from 2022 .
Removed
Operating margins for each segment were unfavorably impacted by a stronger dollar primarily against all major currencies during 2022 as compared to 2021. Interest expense in 2022 was $22,413, a decrease of $3,078, or 12.1 percent, from 2021 . The decrease was due to lower average debt levels compared to the prior year.
Added
Other expense in 2023 was $597 compared to other income of $8,527 in 2022 . Included in other expense in 2023 w ere $7,742 in net foreign currency losses, which were largely offset by pension gains. Included in the prior year’s other income were $6,270 in foreign currency gains.
Removed
Included in the prior year’s other expense were pension costs of 9,484 and $5,926 in foreign currency losses. The decrease in pension cost was principally attributable to decreased amortization of net actuarial losses. Income tax expense in 2022 was $136,176, or 21.0 percent of pre-tax income, as compared to $119,808, or 20.9 percent of pre-tax income in 2021 .
Added
Income tax expense in 2023 was $127,846, or 20.8 percent of pre-tax income, as compared to $136,176, or 21.0 percent of pre-tax income in 2022 . The income tax provision for 2023 included a tax benefit of $4,286 due to our share-based payment transactions.
Removed
Organic sales growth occurred in all product lines, except nonwovens. Sales growth was generally strong across all product lines and in all regions, except for nonwovens which had sales declines in all regions. Operating profit as a percentage of sales decreased to 32.5 percent in 2022 compared to 33.2 percent in 2021.
Added
The 2.8 percent percentage point decline in operating margin was principally driven by meaningful sales mix changes within medical product lines and related factory inefficiencies due to reduced volumes. Advanced Technology Solutions Sales of the Advanced Technology Solutions segment were $577,270 in 2023, an increase of 2.6 percent from 2022 sales of $562,859.
Removed
The 0.7 percentage point decline in operating margin was the result of the impact of passing through inflationary cost increases , partially offset by selling and administrative expense leverage due to the increase in sales .
Added
Changes in working capital items used cash of $3,571 compared to $107,314 used in 2022 principally driven by decreases in receivables and inventory while cash provided by other operating items was $29,357 in 2023 compared to cash used of $55,755 in 2022. Cash used in investing activities was $1,436,879 in 2023, compared to $222,761 in 2022.
Removed
The 0.6 percent percentage point improvement in operating margin was principally driven by greater selling and administrative expense leverage which contributed 1.6 percentage points, principally associated with the sales volume growth, partially offset by the impact of passing through inflationary cost increases .
Added
Long-term debt, including current maturities, increased $999,199, principally due to the acquisition of the ARAG Group.
Removed
Advanced Technology Solutions Sales of the Advanced Technology Solutions segment were $562,859 in 2022, an increase of 18.8 percent from 2021 sales of $473,608. The increase was the result of an organic sales increase of 22.4 percent partially offset by unfavorable currency effects that decreased sales by 3.6 percent.
Added
We have a $1,150,000 unsecured multi-currency credit facility with a group of banks which provides for a term loan facility in the aggregate principal amount of $300,000, maturing in June 2026, and a multicurrency revolving credit facility in the aggregate principal amount of $850,000, maturing in June 2028.
Removed
The 8.2 percentage point improvement in operating margin was driven by greater selling and administrative expense leverage associated with the sales volume growth. 2021 compared to 2020 Due to the change in our operating segments and geographical regions, the following comparison of our sales and segment results are being provided.
Added
In anticipation of the ARAG acquisition, the Company entered into the 364-Day Term Loan Facility in August 2023.
Removed
Worldwide sales for 2021 were $2,362,209, an increase of 11.4 percent from 2020 sales of $2,121,100. The increase consisted of a 11.3 percent improvement in organic sales volume and favorable currency translation effects, which increased sales by 2.7 percent, partially offset by a net 2.6 percent decrease from acquisitions and divestitures.
Added
On September 13, 2023, the Company completed an underwritten public offering of $350,000 aggregate principal amount of the Company’s 5.600% Notes due 2028 (the “2028 Notes”) and $500,000 aggregate principal amount of the Company’s 5.800% Notes due 2033 (together with the 2028 Notes, the “Notes").

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

3 edited+0 added−0 removed4 unchanged
Biggest changeAt October 31, 2022 2023 2024 2025 2026 2027 Thereafter Total Value Fair Value Annual repayments of long-term debt $130,643 $110,643 $85,642 $50,000 $10,000 $90,000 $476,928 $452,879 Average interest rate on total borrowings outstanding during the year 3.7% 3.8% 3.9% 4.0% 4.0% 4.1% 3.7% At October 31, 2021 2022 2023 2024 2025 2026 Thereafter Total Value Fair Value Annual repayments of long-term debt $30,643 $130,643 $110,643 $85,643 $50,000 $100,000 $507,572 $549,895 Average interest rate on total borrowings outstanding during the year 3.7% 3.7% 3.8% 3.9% 4.0% 4.0% 3.7% We also have variable-rate long-term debt.
Biggest changeAt October 31, 2023 2024 2025 2026 2027 2028 Thereafter Total Value Fair Value Annual repayments of long-term debt $110,643 $85,642 $50,000 $10,000 $390,000 $550,000 $1,196,285 $1,148,356 Average interest rate on total borrowings outstanding during the year 3.6% 3.7% 3.8% 3.2% 5.4% 5.7% 5.1% At October 31, 2022 2023 2024 2025 2026 2027 Thereafter Total Value Fair Value Annual repayments of long-term debt $130,643 $110,643 $85,642 $50,000 $10,000 $90,000 $476,928 $452,879 Average interest rate on total borrowings outstanding during the year 3.7% 3.8% 3.9% 4.0% 4.0% 4.1% 3.7% We also have variable-rate long-term debt.
Refer to Note 13 to the Consolidated Financial Statements for further discussion about our foreign currency transactions and the methods and assumptions used to record these transactions. A portion of our operations is financed with short-term and long-term borrowings and is subject to market risk arising from changes in interest rates.
Refer to Note 12 to the Consolidated Financial Statements for further discussion about our foreign currency transactions and the methods and assumptions used to record these transactions. A portion of our operations is financed with short-term and long-term borrowings and is subject to market risk arising from changes in interest rates.
The weighted average interest rate of this variable-rate debt was 1.74 percent at October 31, 2022 and 0.71 percent at October 31, 2021. A one percent increase in interest rates would have resulted in additional interest expense of approximately $2,841 on the variable rate long-term debt in 2022. Nordson Corporation 30 Table of Contents
The weighted average interest rate of this variable-rate debt wa s 6.26 pe rcent at October 31, 2023 and 1.74 percent at October 31, 2022. A one percent increase in interest rates would have resulted in additional interest expense of approximately $5,530 on the variable rate long-term debt in 2023. Nordson Corporation 30 Table of Contents

Other NDSN 10-K year-over-year comparisons