# Cooper Companies, Inc.: Form 10-Q for the period ended Apr 30, 2023

- Company: [Cooper Companies, Inc.](/companies/coo.md) (CIK 711404)
- Form: 10-Q
- Filed: 2023-06-02
- Accepted by EDGAR: Jun 2, 2023, 16:17 ET
- Period: 2023-04-30
- Accession: 0000711404-23-000033
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/711404/000071140423000033/coo-20230430.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/711404/000071140423000033/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2023-04-30.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Revenue | 3 months, 2023-02-01 to 2023-04-30 | $877.4m | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Revenue | 6 months, 2022-11-01 to 2023-04-30 | $1.74bn | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Cost of revenue | 3 months, 2023-02-01 to 2023-04-30 | $294.5m | us-gaap:CostOfGoodsAndServicesSold |
| Cost of revenue | 6 months, 2022-11-01 to 2023-04-30 | $594.5m | us-gaap:CostOfGoodsAndServicesSold |
| Gross profit | 3 months, 2023-02-01 to 2023-04-30 | $582.9m | us-gaap:GrossProfit |
| Gross profit | 6 months, 2022-11-01 to 2023-04-30 | $1.14bn | us-gaap:GrossProfit |
| Research and development | 3 months, 2023-02-01 to 2023-04-30 | $32.6m | us-gaap:ResearchAndDevelopmentExpense |
| Research and development | 6 months, 2022-11-01 to 2023-04-30 | $64.2m | us-gaap:ResearchAndDevelopmentExpense |
| Selling, general and administrative | 3 months, 2023-02-01 to 2023-04-30 | $407.5m | us-gaap:SellingGeneralAndAdministrativeExpense |
| Selling, general and administrative | 6 months, 2022-11-01 to 2023-04-30 | $738.4m | us-gaap:SellingGeneralAndAdministrativeExpense |
| Operating income | 3 months, 2023-02-01 to 2023-04-30 | $96.3m | us-gaap:OperatingIncomeLoss |
| Operating income | 6 months, 2022-11-01 to 2023-04-30 | $245.8m | us-gaap:OperatingIncomeLoss |
| Interest expense | 3 months, 2023-02-01 to 2023-04-30 | $26.1m | us-gaap:InterestExpense |
| Interest expense | 6 months, 2022-11-01 to 2023-04-30 | $52.2m | us-gaap:InterestExpense |
| Income tax | 3 months, 2023-02-01 to 2023-04-30 | $25.8m | us-gaap:IncomeTaxExpenseBenefit |
| Income tax | 6 months, 2022-11-01 to 2023-04-30 | $63.3m | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months, 2023-02-01 to 2023-04-30 | $39.8m | us-gaap:NetIncomeLoss |
| Net income | 6 months, 2022-11-01 to 2023-04-30 | $124.4m | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months, 2023-02-01 to 2023-04-30 | $0.80 | us-gaap:EarningsPerShareDiluted |
| Diluted EPS | 6 months, 2022-11-01 to 2023-04-30 | $2.50 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months, 2023-02-01 to 2023-04-30 | $0.80 | us-gaap:EarningsPerShareBasic |
| Basic EPS | 6 months, 2022-11-01 to 2023-04-30 | $2.52 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months, 2023-02-01 to 2023-04-30 | 49,800,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Diluted shares (weighted) | 6 months, 2022-11-01 to 2023-04-30 | 49,700,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 6 months, 2022-11-01 to 2023-04-30 | $290.8m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 6 months, 2022-11-01 to 2023-04-30 | $156.6m | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment |
| Dividends paid | 6 months, 2022-11-01 to 2023-04-30 | $1.5m | us-gaap:PaymentsOfDividendsCommonStock |
| Share repurchases | 6 months, 2022-11-01 to 2023-04-30 | $0 | us-gaap:PaymentsForRepurchaseOfCommonStock |
| Cash and equivalents | at 2023-04-30 | $111.9m | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Current assets | at 2023-04-30 | $1.60bn | us-gaap:AssetsCurrent |
| Total assets | at 2023-04-30 | $11.54bn | us-gaap:Assets |
| Current liabilities | at 2023-04-30 | $949.1m | us-gaap:LiabilitiesCurrent |
| Total liabilities | at 2023-04-30 | $4.16bn | us-gaap:Liabilities |
| Long-term debt | at 2023-04-30 | $2.56bn | us-gaap:LongTermDebtNoncurrent |
| Current portion of debt | at 2023-04-30 | $74.5m | us-gaap:DebtCurrent |
| Short-term borrowings | at 2023-04-30 | $58.3m | us-gaap:ShortTermBorrowings |
| Shareholders' equity | at 2023-04-30 | $7.38bn | us-gaap:StockholdersEquity |

## Management's discussion and analysis

As filed, 808 characters.

### Issuer Purchases of Equity Securities

The share repurchase program was approved by the Company’s Board of Directors in December 2011 (2012 Program). The program as amended in December 2012, December 2013 and March 2017 provides authorization to repurchase up to a total of $1.0 billion of the Company’s common stock. As of April 30, 2023, $256.4 million remains authorized for repurchase under the 2012 Program.

During the three and six months ended April 30, 2023, there were no share repurchases under the 2012 Program.

During the three months ended April 30, 2022, there were no share repurchases under the 2012 Program. During the six months ended April 30, 2022, the Company repurchased 191.2 thousand shares of its common stock for $78.5 million, at an average purchase price of $410.41 per share.

## Market risk

As filed, 2,229 characters.

We are exposed to market risks that relate principally to changes in interest rates and foreign currency fluctuations. We do not enter into derivative financial instrument transactions for speculative purposes.

#### Foreign Currency Exchange Risk

We operate multiple foreign subsidiaries that manufacture and market our products worldwide. As a result, our earnings, cash flow and financial position are exposed to foreign currency risk from foreign currency denominated receivables and payables, sales transactions, capital expenditures and net investment in certain foreign operations. Most of our operations outside the United States have their local currency as their functional currency. We are exposed to risks caused by changes in foreign exchange, principally our British pound sterling, euro and Japanese yen denominated debt and receivables denominated in currencies other than the United States dollar, and from operations in other foreign currencies. We did not have any cross-currency swaps or foreign currency forward contracts as of April 30, 2023.

#### Interest Rate Risk

We are exposed to risks associated with changes in interest rates, as the interest rates on our revolving lines of credit and term loans may vary with the federal funds rate and SOFR (and, previously, LIBOR). As of April 30, 2023, we had outstanding debt for an aggregate carrying amount of $2.6 billion. We have entered, and in the future may enter, into interest rate swaps to manage interest rate risk. Effective February 1, 2023, the base interest rate on our credit agreements was converted from LIBOR to SOFR.

Our ultimate realized gain or loss with respect to interest rate fluctuations will depend on interest rates, the exposures that arise during the period and our hedging strategies at that time. As an example, if interest rates were to increase or decrease by 1% or 100 basis points, the quarterly interest expense would have increased or decreased by approximately $4.0 million based on average debt outstanding, after consideration of our interest rate swap contracts, during the second quarter of fiscal 2023. See Note 5. Financing Arrangements of the Consolidated Condensed Financial Statements for additional information.

## Controls and procedures

As filed, 1,421 characters.

### Evaluation of Disclosure Controls and Procedures

Based on management’s evaluation (with the participation of our Chief Executive Officer (our Principal Executive Officer) and Chief Financial Officer (our Principal Financial Officer)), as of the end of the period covered by this report, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended, (the Exchange Act)) are effective to provide reasonable assurance that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms and is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

### Changes in Internal Control over Financial Reporting

There have been no changes in our internal control over financial reporting identified in connection with the evaluation required by Rule 13a-15(d) and 15d-15(d) of the Exchange Act that occurred during our second quarter of fiscal 2023, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

## Risk factors

As filed, 817 characters.

*Our business faces significant risks. These risks include those described below and may include additional risks and uncertainties not presently known to us or that we currently deem immaterial. Our business, financial condition and results of operations could be materially adversely affected by any of these risks, and the trading prices of our common stock could decline by virtue of these risks. These risks should be read in conjunction with the other information in this report.*

Risk factors describing the major risks to our business can be found under Item 1A. Risk Factors in our Annual Report on Form 10-K for the fiscal year ended October 31, 2022. There have been no material changes to the risk factors previously disclosed in our Annual Report on Form 10-K for the fiscal year ended October 31, 2022.

Filed Jun 2, 2023.
Source: SEC EDGAR, the filing index for accession 0000711404-23-000033. Last ingested by Listed: Oct 27, 2026, 16:37 ET. No prices; not investment advice.