COO

MKT CAP $11.2BP/E 20.2DIV YIELD —FCF YIELD 6.05%REV TTM $4.2B +4.7%NET INCOME $570.3M +39.8%NET DEBT $1.8B52W 53.27 – 84.32SEC XBRL · TTM TO Invalid Date

How COO rewrote its risk factors

10-K ITEM 1A · FY2024 → FY2025

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New in FY2025

As of October 31, 2025, we had outstanding debt for an aggregate carrying amount of $2.5 billion.
As an example, if interest rates were to increase or decrease by 1% or 100 basis points, the quarterly interest expense would not have a material impact, based on average debt outstanding, after consideration of our interest rate swap contracts, during the fourth quarter of fiscal 2025.
Report of Independent Registered Public Accounting Firm To the Stockholders and the Board of Directors The Cooper Companies, Inc.: Opinions on the Consolidated Financial Statements and Internal Control Over Financial Reporting We have audited the accompanying consolidated balance sheets of The Cooper Companies, Inc. and subsidiaries (the Company) as of October 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, stockholders’ equity, and cash flows for each of the years in the three-year period ended October 31, 2025, and the related notes (collectively, the consolidated financial statements).
We also have audited the Company’s internal control over financial reporting as of October 31, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of October 31, 2025 and 2024, and the results of its operations and its cash flows for each of the years in the three-year period ended October 31, 2025, in conformity with U.S. generally accepted accounting principles.
Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of October 31, 2025 based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
Basis for Opinions The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Annual Report on Internal Control Over Financial Reporting.
Our responsibility is to express an opinion on the Company's consolidated financial statements and an opinion on the Company’s internal control over financial reporting based on our audits.
We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.
Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks.
Our audits also included performing such other procedures as we considered necessary in the circumstances.
We believe that our audits provide a reasonable basis for our opinions.
AND SUBSIDIARIES Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.
Evaluation of the sufficiency of audit evidence over inventories and net sales As discussed in Notes 1 and 12 to the consolidated financial statements and disclosed in the consolidated balance sheet and consolidated statement of income, the Company recorded $846.0 million in inventories and $4,092.4 million in net sales as of and for the year ended October 31, 2025, respectively.
The following are the primary procedures we performed to address this critical audit matter.
We 1) assessed recorded net sales by selecting a sample of net sales transactions and comparing the amount recognized to underlying documentation, such as contracts with customers and shipping documentation and 2) performed software-assisted data analyses to test the relationships among certain sales transactions.
San Francisco, California December 5, 2025 THE COOPER COMPANIES, INC.
AND SUBSIDIARIES Consolidated Statements of Income Years Ended October 31, (In millions, except for earnings per share) 2025 2024 2023 Net sales $ 4,092.4 $ 3,895.4 $ 3,593.2 Cost of sales 1,410.3 1,299.7 1,235.3 Gross profit 2,682.1 2,595.7 2,357.9 Selling, general and administrative expense 1,627.8 1,533.7 1,501.2 Research and development expense 172.2 155.1 137.4 Amortization of intangibles 199.2 201.2 186.2 Operating income 682.9 705.7 533.1 Interest expense 100.0 114.3 105.3 Other expense 16.4 9.1 14.9 Income before income taxes 566.5 582.3 412.9 Provision for income taxes (Note 6) 191.6 190.0 118.7 Net income $ 374.9 $ 392.3 $ 294.2 Earnings per share (Note 7)*; Basic $ 1.88 $ 1.97 $ 1.49 Diluted $ 1.87 $ 1.96 $ 1.48 Number of shares used to compute earnings per share*: Basic 199.1 198.9 197.9 Diluted 200.0 200.4 199.3 * All periods presented have been adjusted to reflect the four -for-one stock split effected on February 16, 2024.
AND SUBSIDIARIES Consolidated Statements of Comprehensive Income Years Ended October 31, (In millions) 2025 2024 2023 Net income $ 374.9 $ 392.3 $ 294.2 Other comprehensive income (loss): Cash flow hedges, net of tax of $ 8.6 , $ 13.4 and $( 2.4 ), respectively ( 26.9 ) ( 42.5 ) ( 7.0 ) Change in minimum pension liability, net of tax of $( 1.9 ), $ 0.5 and $ 1.0 , respectively 6.6 ( 1.7 ) 3.0 Foreign currency translation adjustment 35.5 76.3 17.0 Other comprehensive income (loss) 15.2 32.1 13.0 Comprehensive income $ 390.1 $ 424.4 $ 307.2 The accompanying notes are an integral part of these Consolidated Financial Statements.
AND SUBSIDIARIES Consolidated Balance Sheets October 31, (In millions) 2025 2024 ASSETS Current assets: Cash and cash equivalents $ 110.6 $ 107.6 Trade accounts receivable, net of allowance for credit losses of $ 51.9 at October 31, 2025 and $ 43.5 at October 31, 2024 829.0 717.0 Inventories (Note 1) 846.0 802.7 Prepaid expense and other current assets 320.8 324.2 Total current assets 2,106.4 1,951.5 Property, plant and equipment, net 2,082.0 1,863.4 Goodwill (Note 4) 3,853.4 3,838.4 Other intangibles, net (Note 4) 1,586.3 1,791.0 Deferred tax assets 2,077.5 2,210.3 Other assets 689.2 660.6 Total assets $ 12,394.8 $ 12,315.2 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Short-term debt (Note 5) $ 47.8 $ 33.3 Accounts payable 300.4 260.5 Employee compensation and benefits 210.6 174.8 Deferred revenue 127.9 129.9 Other current liabilities 426.1 424.3 Total current liabilities 1,112.8 1,022.8 Long-term debt (Note 5) 2,457.5 2,550.4 Deferred tax liabilities 93.3 96.0 Long-term tax payable 7.5 57.5 Deferred revenue 201.8 193.3 Other liabilities 282.8 311.6 Total liabilities 4,155.7 4,231.6 Contingencies (Note 11) Stockholders’ equity*: Preferred stock, $ 0.10 par value, 1.0 shares authorized, zero shares issued or outstanding — — Common stock, $ 0.10 par value, 480.0 shares authorized, 217.6 issued and 195.9 outstanding at October 31, 2025 and 217.2 issued and 199.6 outstanding at October 31, 2024 21.8 21.7 Additional paid-in capital 1,975.5 1,921.0 Accumulated other comprehensive loss ( 406.5 ) ( 421.7 ) Retained earnings 7,643.3 7,268.4 Treasury stock at cost: 21.7 shares at October 31, 2025 and 17.6 shares at October 31, 2024 ( 995.2 ) ( 706.0 ) Total Cooper stockholders' equity 8,238.9 8,083.4 Noncontrolling interests 0.2 0.2 Stockholders’ equity (Note 8) 8,239.1 8,083.6 Total liabilities and stockholders’ equity $ 12,394.8 $ 12,315.2 * All periods presented have been adjusted to reflect the four -for-one stock split effected on February 16, 2024.
AND SUBSIDIARIES Consolidated Statements of Stockholders' Equity Common Shares Treasury Stock Additional Paid-In Capital Accumulated Other Comprehensive Income Loss Retained Earnings Treasury Stock Noncontrolling Interests Total Stockholders' Equity (In millions, except per share amounts) Shares Amount Shares Amount Balance at October 31, 2022* 197.4 $ 19.7 17.8 $ 1.8 $ 1,749.4 $ ( 466.8 ) $ 6,584.9 $ ( 714.5 ) $ 0.2 $ 7,174.7 Net income — — — — — — 294.2 — — 294.2 Other comprehensive income (loss), net of tax — — — — — 13.0 — — — 13.0 Issuance of common stock for stock plans, net and employee stock purchase plan 0.7 0.1 ( 0.1 ) — 7.0 — — 4.2 — 11.3 Dividends on common stock ($ 0.01 per share) — — — — — — ( 3.0 ) — — ( 3.0 ) Share-based compensation expense — — — — 60.8 — — — — 60.8 Balance at October 31, 2023* 198.1 $ 19.8 17.7 $ 1.8 $ 1,817.2 $ ( 453.8 ) $ 6,876.1 $ ( 710.3 ) $ 0.2 $ 7,551.0 Net income — — — — — — 392.3 — — 392.3 Other comprehensive income (loss), net of tax — — — — — 32.1 — — — 32.1 Issuance of common stock for stock plans, net and employee stock purchase plan 1.5 0.1 ( 0.1 ) — 31.3 — — 4.3 — 35.7 Share-based compensation expense — — — — 72.5 — — — — 72.5 Balance at October 31, 2024* 199.6 $ 19.9 17.6 $ 1.8 $ 1,921.0 $ ( 421.7 ) $ 7,268.4 $ ( 706.0 ) $ 0.2 $ 8,083.6 Net income — — — — — — 374.9 — — 374.9 Other comprehensive income (loss), net of tax — — — — — 15.2 — — — 15.2 Issuance of common stock for stock plans, net and employee stock purchase plan 0.4 0.1 — — ( 15.1 ) — — 3.3 — ( 11.7 ) Share-based compensation expense — — — — 69.6 — — — — 69.6 Stock repurchase ( 4.1 ) — 4.1 — — — — ( 292.5 ) — ( 292.5 ) Balance at October 31, 2025* 195.9 $ 20.0 21.7 $ 1.8 $ 1,975.5 $ ( 406.5 ) $ 7,643.3 $ ( 995.2 ) $ 0.2 $ 8,239.1 * All periods presented have been adjusted to reflect the four -for-one stock split effected on February 16, 2024.
AND SUBSIDIARIES Consolidated Statements of Cash Flow Years Ended October 31, (In millions) 2025 2024 2023 Cash flows from operating activities: Net income $ 374.9 $ 392.3 $ 294.2 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 377.4 375.1 367.7 Share-based compensation expense 70.5 75.1 62.1 Non-cash operating lease expense 45.6 38.7 40.0 Other including asset impairment charges 77.3 42.9 49.4 Change in fair value of contingent consideration — — ( 31.8 ) Deferred income taxes 135.2 118.9 44.7 Change in assets and liabilities: Accounts receivable ( 120.3 ) ( 117.1 ) ( 60.2 ) Inventories ( 46.0 ) ( 59.3 ) ( 105.4 ) Other assets ( 74.5 ) ( 132.5 ) ( 89.4 ) Operating lease right-of-use assets and liabilities, net ( 46.8 ) ( 42.4 ) ( 34.2 ) Accounts payable 8.0 9.3 5.5 Accrued liabilities 27.9 3.6 71.8 Accrued income taxes ( 51.7 ) ( 15.4 ) ( 0.5 ) Other long-term liabilities 18.6 20.1 ( 6.4 ) Net cash provided by operating activities 796.1 709.3 607.5 Cash flows from investing activities: Purchases of property, plant and equipment ( 362.4 ) ( 421.2 ) ( 392.5 ) Acquisitions of businesses and assets, net of cash acquired, and other ( 10.5 ) ( 343.4 ) ( 56.5 ) Net cash used in investing activities ( 372.9 ) ( 764.6 ) ( 449.0 ) Cash flows from financing activities: Proceeds from long-term debt, net of issuance costs 3,111.1 3,524.2 2,124.2 Repayments of long-term debt ( 3,205.2 ) ( 3,506.8 ) ( 1,953.9 ) Net proceeds from (repayments of) short-term debt, other 14.2 ( 11.8 ) ( 351.1 ) Repurchase of common stock ( 290.1 ) — — Proceeds related to share-based compensation awards 5.4 55.6 15.1 Payments related to share-based compensation awards ( 24.8 ) ( 30.3 ) ( 13.1 ) Dividends on common stock — — ( 3.0 ) Issuance of common stock for employee stock purchase plan 10.6 8.3 7.9 Acquisition installment payment ( 47.1 ) — — Net cash provided (used in) by financing activities ( 425.9 ) 39.2 ( 173.9 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash 5.6 2.9 ( 2.3 ) Net increase (decrease) in cash, cash equivalents and restricted cash 2.9 ( 13.2 ) ( 17.7 ) Cash, cash equivalents, restricted cash and cash held for sale at beginning of year 107.7 120.9 138.6 Cash, cash equivalents and restricted cash at end of year $ 110.6 $ 107.7 $ 120.9 Supplemental disclosures of cash flow information: Cash paid for: Interest $ 115.1 $ 134.8 $ 117.5 Income taxes 100.0 78.4 67.8 Operating lease liabilities 49.9 48.0 47.5 Operating lease ROU assets obtained in exchange for lease obligations 52.7 54.6 42.6 Years Ended October 31, (In millions) 2025 2024 2023 Reconciliation of cash flow information: Cash and cash equivalents $ 110.6 $ 107.6 $ 120.8 Restricted cash included in other current assets — 0.1 0.1 Total cash, cash equivalents, restricted cash and cash held for sale $ 110.6 $ 107.7 $ 120.9 The accompanying notes are an integral part of these Consolidated Financial Statements.
We recognized revenue of approximately$ 129.9 million and $ 123.6 million for the year ended October 31, 2025, and October 31, 2024, respectively, that was included in the deferred revenue balance at October 31, 2024, and October 31, 2023.
Deferred tax assets are reduced by a valuation allowance to the extent it is more likely than not that the tax benefits are not expected to be realized.
Adjustments to deferred tax assets and liabilities due to changes in tax laws, changes in jurisdiction from intra-entity THE COOPER COMPANIES, INC.
AND SUBSIDIARIES Notes to Consolidated Financial Statements transfers of assets, and changes in judgment regarding a valuation allowance are recognized in provision for income taxes in the quarter in which such changes occur.
A tax benefit is recognized if it is more likely than not a tax position will be sustained based on its technical merits in a tax authority examination, based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority.
October 31, (In millions) 2025 2024 Raw materials $ 193.1 $ 188.2 Work-in-process 19.9 18.5 Finished goods 633.0 596.0 $ 846.0 $ 802.7 In assessing the value of inventories, we make estimates and judgments regarding aging of inventories and other relevant issues potentially affecting the salable condition of products and estimated prices at which those products will sell.
AND SUBSIDIARIES Notes to Consolidated Financial Statements October 31, (In millions) 2025 2024 Land and improvements $ 26.7 $ 25.2 Buildings and improvements 582.9 557.3 Machinery and equipment 2,684.9 2,441.7 Construction in progress 611.8 532.8 Property, plant and equipment, at cost $ 3,906.3 $ 3,557.0 Less: Accumulated depreciation 1,826.4 1,696.5 Property, plant and equipment, net $ 2,079.9 $ 1,860.5 Finance lease ROU assets, net 2.1 2.9 $ 2,082.0 $ 1,863.4 Leases We consider an arrangement a lease if the arrangement transfers the right to control the use of an identified asset in exchange for consideration.
The government assistance is recorded as a reduction to the underlying asset or related expense.
Recently Adopted Accounting Standards The Company adopted the Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures in the fiscal year 2025, which enhances the disclosures required for operating segments in our annual and interim consolidated financial statements.
The standard was applied retrospectively to all periods presented in the financial statements.
As this accounting standard only impacts disclosures, it did not have a material impact on the Company’s Consolidated Financial Statements.
Business Segment Information for the required disclosures.
AND SUBSIDIARIES Notes to Consolidated Financial Statements Accounting Pronouncements Issued Not Yet Adopted In September 2025, the Financial Accounting Standards Board (FASB) issued ASU 2025-07, Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606) , which clarifies the application of derivative accounting to certain contract.
This update introduces a scope exception for contracts that are not exchange-traded and whose underlying is tied to operations or activities specific to one of the parties to the contract.
It also clarifies the guidance for share-based noncash consideration from a customer, which is not applicable to us.
This ASU is effective for fiscal years beginning after December 15, 2026, and interim periods within those annual reporting periods, with early adoption permitted and the option to apply on a prospective or modified retrospective basis.
In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40) , which removes references to sequential project stages and requires capitalization of software costs begins when: (1) management has authorized and committed to funding the software project, and (2) it is probable the project will be completed and the software will be used to perform the function intended.

and 153 more.

Gone since FY2024

As of October 31, 2024, we had outstanding debt for an aggregate carrying amount of $2.6 billion.
As an example, if interest rates were to increase or decrease by 1% or 100 basis points, the quarterly interest expense would not have a material impact, based on average debt outstanding, after consideration of our interest rate swap contracts, during the fourth quarter of fiscal 2024.
Report of Independent Registered Public Accounting Firm To the Stockholders and the Board of Directors The Cooper Companies, Inc.: Opinion on the Consolidated Financial Statements We have audited the accompanying consolidated balance sheets of The Cooper Companies, Inc. and subsidiaries (the Company) as of October 31, 2024 and 2023, the related consolidated statements of income, comprehensive income, stockholders’ equity, and cash flows for each of the years in the three-year period ended October 31, 2024, and the related notes (collectively, the consolidated financial statements).
In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of October 31, 2024 and 2023, and the results of its operations and its cash flows for each of the years in the three-year period ended October 31, 2024, in conformity with U.S. generally accepted accounting principles.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of October 31, 2024, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated December 6, 2024 expressed an adverse opinion on the effectiveness of the Company's internal control over financial reporting.
Basis for Opinion These consolidated financial statements are the responsibility of the Company's management.
Our responsibility is to express an opinion on these consolidated financial statements based on our audits.
We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks.
We believe that our audits provide a reasonable basis for our opinion.
Evaluation of the sufficiency of audit evidence over inventories and net sales As discussed in Notes 1 and 12 to the consolidated financial statements and disclosed in the consolidated balance sheet and consolidated statement of income, the Company recorded $802.7 million in inventories and $3,895.4 million in net sales as of and for the year ended October 31, 2024, respectively.
AND SUBSIDIARIES The following are the primary procedures we performed to address this critical audit matter.
We assessed recorded net sales for each location where procedures were performed by selecting a sample of net sales transactions and comparing the amount recognized to underlying documentation, such as contracts with customers and shipping documentation.
San Francisco, California December 6, 2024 THE COOPER COMPANIES, INC.
AND SUBSIDIARIES Consolidated Statements of Income Years Ended October 31, (In millions, except for earnings per share) 2024 2023 2022 Net sales $ 3,895.4 $ 3,593.2 $ 3,308.4 Cost of sales 1,299.7 1,235.3 1,168.8 Gross profit 2,595.7 2,357.9 2,139.6 Selling, general and administrative expense 1,533.7 1,501.2 1,342.2 Research and development expense 155.1 137.4 110.3 Amortization of intangibles 201.2 186.2 179.5 Operating income 705.7 533.1 507.6 Interest expense 114.3 105.3 57.3 Other expense (income) 9.1 14.9 ( 25.0 ) Income before income taxes 582.3 412.9 475.3 Provision for income taxes (Note 6) 190.0 118.7 89.5 Net income $ 392.3 $ 294.2 $ 385.8 Earnings per share (Note 7)*; Basic $ 1.97 $ 1.49 $ 1.95 Diluted $ 1.96 $ 1.48 $ 1.94 Number of shares used to compute earnings per share*: Basic 198.9 197.9 197.4 Diluted 200.4 199.3 198.8 * All periods presented have been adjusted to reflect the four -for-one stock split effected on February 16, 2024.
AND SUBSIDIARIES Consolidated Statements of Comprehensive Income Years Ended October 31, (In millions) 2024 2023 2022 Net income $ 392.3 $ 294.2 $ 385.8 Other comprehensive income (loss): Cash flow hedges, net of tax of $ 13.4 , $( 2.4 ) and $ 26.1 , respectively ( 42.5 ) ( 7.0 ) 81.3 Change in minimum pension liability, net of tax of $ 0.5 , $ 1.0 and $ 8.7 , respectively ( 1.7 ) 3.0 27.9 Foreign currency translation adjustment 76.3 17.0 ( 234.7 ) Other comprehensive income (loss) 32.1 13.0 ( 125.5 ) Comprehensive income $ 424.4 $ 307.2 $ 260.3 The accompanying notes are an integral part of these Consolidated Financial Statements.
AND SUBSIDIARIES Consolidated Balance Sheets October 31, (In millions) 2024 2023 ASSETS Current assets: Cash and cash equivalents $ 107.6 $ 120.8 Trade accounts receivable, net of allowance for credit losses of $ 43.5 at October 31, 2024 and $ 31.3 at October 31, 2023 717.0 609.7 Inventories (Note 1) 802.7 735.6 Prepaid expense and other current assets 324.2 238.8 Total current assets 1,951.5 1,704.9 Property, plant and equipment, net 1,863.4 1,632.6 Goodwill (Note 4) 3,838.4 3,624.5 Other intangibles, net (Note 4) 1,791.0 1,710.3 Deferred tax assets 2,210.3 2,349.5 Other assets 660.6 637.1 Total assets $ 12,315.2 $ 11,658.9 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Short-term debt (Note 5) $ 33.3 $ 45.4 Accounts payable 260.5 261.9 Employee compensation and benefits 174.8 174.8 Deferred revenue 129.9 123.6 Other current liabilities 424.3 363.3 Total current liabilities 1,022.8 969.0 Long-term debt (Note 5) 2,550.4 2,523.8 Deferred tax liabilities 96.0 101.5 Long-term tax payable 57.5 90.2 Deferred revenue 193.3 184.2 Other liabilities 311.6 239.2 Total liabilities $ 4,231.6 $ 4,107.9 Contingencies (Note 11) Stockholders’ equity*: Preferred stock, $ 0.10 par value, 1.0 shares authorized, zero shares issued or outstanding — — Common stock, $ 0.10 par value, 480.0 shares authorized, 217.2 issued and 199.6 outstanding at October 31, 2024 and 215.8 issued and 198.1 outstanding at October 31, 2023 21.7 21.6 Additional paid-in capital 1,921.0 1,817.2 Accumulated other comprehensive loss ( 421.7 ) ( 453.8 ) Retained earnings 7,268.4 6,876.1 Treasury stock at cost: 17.6 shares at October 31, 2024 and 17.7 shares at October 31, 2023 ( 706.0 ) ( 710.3 ) Total Cooper stockholders' equity 8,083.4 7,550.8 Noncontrolling interests 0.2 0.2 Stockholders’ equity (Note 8) 8,083.6 7,551.0 Total liabilities and stockholders’ equity $ 12,315.2 $ 11,658.9 * All periods presented have been adjusted to reflect the four -for-one stock split effected on February 16, 2024.
AND SUBSIDIARIES Consolidated Statements of Stockholders' Equity Common Shares Treasury Stock Additional Paid-In Capital Accumulated Other Comprehensive Income Loss Retained Earnings Treasury Stock Noncontrolling Interests Total Stockholders' Equity (In millions, except per share amounts) Shares Amount Shares Amount Balance at October 31, 2021* 197.2 $ 19.7 17.6 $ 1.8 $ 1,699.1 $ ( 341.3 ) $ 6,202.1 $ ( 639.6 ) $ 0.2 $ 6,942.0 Net income — — — — — — 385.8 — — 385.8 Other comprehensive income (loss), net of tax — — — — — ( 125.5 ) — — — ( 125.5 ) Issuance of common stock for stock plans, net and employee stock purchase plan 0.4 — — — ( 2.1 ) — — 3.6 — 1.5 Treasury stock repurchase ( 0.2 ) — 0.2 — — — — ( 78.5 ) — ( 78.5 ) Dividends on common stock ($ 0.01 per share) — — — — — — ( 3.0 ) — — ( 3.0 ) Share-based compensation expense — — — — 52.4 — — — — 52.4 Balance at October 31, 2022* 197.4 $ 19.7 17.8 $ 1.8 $ 1,749.4 $ ( 466.8 ) $ 6,584.9 $ ( 714.5 ) $ 0.2 $ 7,174.7 Net income — — — — — — 294.2 — — 294.2 Other comprehensive income (loss), net of tax — — — — — 13.0 — — — 13.0 Issuance of common stock for stock plans, net and employee stock purchase plan 0.7 0.1 ( 0.1 ) — 7.0 — — 4.2 — 11.3 Dividends on common stock ($ 0.01 per share) — — — — — ( 3.0 ) — ( 3.0 ) Share-based compensation expense — — — — 60.8 — — — — 60.8 Balance at October 31, 2023* 198.1 $ 19.8 17.7 $ 1.8 $ 1,817.2 $ ( 453.8 ) $ 6,876.1 $ ( 710.3 ) $ 0.2 $ 7,551.0 Net income — — — — — — 392.3 — — 392.3 Other comprehensive income (loss), net of tax — — — — — 32.1 — — — 32.1 Issuance of common stock for stock plans, net and employee stock purchase plan 1.5 0.1 ( 0.1 ) — 31.3 — — 4.3 — 35.7 Share-based compensation expense — — — — 72.5 — — — — 72.5 Balance at October 31, 2024* 199.6 $ 19.9 17.6 $ 1.8 $ 1,921.0 $ ( 421.7 ) $ 7,268.4 $ ( 706.0 ) $ 0.2 $ 8,083.6 * All periods presented have been adjusted to reflect the four -for-one stock split effected on February 16, 2024.
AND SUBSIDIARIES Consolidated Statements of Cash Flows Years Ended October 31, (In millions) 2024 2023 2022 Cash flows from operating activities: Net income $ 392.3 $ 294.2 $ 385.8 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 375.1 367.7 346.1 Share-based compensation expense 75.1 62.1 54.2 Non-cash operating lease expense 38.7 40.0 32.2 Other including asset impairment charges 42.9 49.4 4.5 Change in fair value of contingent consideration — ( 31.8 ) ( 10.3 ) Deferred income taxes 118.9 44.7 53.9 Change in assets and liabilities: Accounts receivable ( 117.1 ) ( 60.2 ) ( 33.8 ) Inventories ( 59.3 ) ( 105.4 ) ( 40.4 ) Other assets ( 132.5 ) ( 89.4 ) ( 16.9 ) Operating lease right-of-use assets and liabilities, net ( 42.4 ) ( 34.2 ) ( 51.3 ) Accounts payable 9.3 5.5 49.9 Accrued liabilities 3.6 71.8 32.4 Accrued income taxes ( 15.4 ) ( 0.5 ) ( 27.4 ) Other long-term liabilities 20.1 ( 6.4 ) ( 34.2 ) Settlement of contingent consideration — — ( 52.3 ) Net cash provided by operating activities 709.3 607.5 692.4 Cash flows from investing activities: Purchases of property, plant and equipment ( 421.2 ) ( 392.5 ) ( 242.0 ) Acquisitions of businesses and assets, net of cash acquired, and other ( 343.4 ) ( 56.5 ) ( 1,641.3 ) Proceeds from sale of interest in a subsidiary — — 52.1 Net cash used in investing activities ( 764.6 ) ( 449.0 ) ( 1,831.2 ) Cash flows from financing activities: Proceeds from long-term debt, net of issuance costs 3,524.2 2,124.2 1,511.0 Repayments of long-term debt ( 3,506.8 ) ( 1,953.9 ) ( 561.5 ) Net proceeds from (repayments of) short-term debt, other ( 11.8 ) ( 351.1 ) 329.3 Repurchase of common stock — — ( 78.5 ) Proceeds related to share-based compensation awards 55.6 15.1 8.9 Payments related to share-based compensation awards ( 30.3 ) ( 13.1 ) ( 16.8 ) Dividends on common stock — ( 3.0 ) ( 3.0 ) Issuance of common stock for employee stock purchase plan 8.3 7.9 7.2 Settlement of contingent consideration — — ( 2.9 ) Net cash provided (used in) by financing activities 39.2 ( 173.9 ) 1,193.7 Effect of exchange rate changes on cash, cash equivalents and restricted cash 2.9 ( 2.3 ) ( 12.9 ) Net (decrease) increase in cash, cash equivalents and restricted cash ( 13.2 ) ( 17.7 ) 42.0 Cash, cash equivalents, restricted cash and cash held for sale at beginning of year 120.9 138.6 96.6 Cash, cash equivalents and restricted cash at end of year $ 107.7 $ 120.9 $ 138.6 Supplemental disclosures of cash flow information: Cash paid for: Interest $ 134.8 $ 117.5 $ 49.1 Income taxes 78.4 67.8 66.6 Years Ended October 31, (In millions) 2024 2023 2022 Operating lease liabilities 48.0 47.5 45.3 Operating lease ROU assets obtained in exchange for lease obligations $ 54.6 $ 42.6 $ 29.8 Reconciliation of cash flow information: Cash and cash equivalents $ 107.6 $ 120.8 $ 138.2 Restricted cash included in other current assets 0.1 0.1 0.4 Cash held for sale — — — Total cash, cash equivalents, restricted cash and cash held for sale $ 107.7 $ 120.9 $ 138.6 The accompanying notes are an integral part of these Consolidated Financial Statements.
We recognized revenue of approximately $ 123.6 million and $ 93.6 million for the year ended October 31, 2024, and October 31, 2023, respectively, that was included in the deferred revenue balance at October 31, 2023, and October 31, 2022.
Deferred tax assets are reduced by a valuation allowance to the extent it is more likely than not they are not expected to be realized.
Adjustments to deferred tax assets and liabilities due to changes in tax laws, changes in jurisdiction from intra-entity transfers of assets, and changes in judgment regarding a valuation allowance are recognized in provision for income taxes in the quarter in which such changes occur.
A tax benefit THE COOPER COMPANIES, INC.
AND SUBSIDIARIES Notes to Consolidated Financial Statements is recognized if it is more likely than not a tax position will be sustained based on its technical merits in a tax authority examination, based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority.
October 31, (In millions) 2024 2023 Raw materials $ 188.2 $ 207.3 Work-in-process 18.5 19.0 Finished goods 596.0 509.3 $ 802.7 $ 735.6 In assessing the value of inventories, we make estimates and judgments regarding aging of inventories and other relevant issues potentially affecting the salable condition of products and estimated prices at which those products will sell.
AND SUBSIDIARIES Notes to Consolidated Financial Statements October 31, (In millions) 2024 2023 Land and improvements $ 25.2 $ 20.2 Buildings and improvements 557.3 488.5 Machinery and equipment 2,441.7 2,187.1 Construction in progress 532.8 486.3 Property, plant and equipment, at cost $ 3,557.0 $ 3,182.1 Less: Accumulated depreciation 1,696.5 1,553.3 Property, plant and equipment, net $ 1,860.5 $ 1,628.8 Finance lease ROU assets, net 2.9 3.8 $ 1,863.4 $ 1,632.6 Leases We consider an arrangement a lease if the arrangement transfers the right to control the use of an identified asset in exchange for consideration.
For the fiscal year ending October 31, 2024, government assistance of $ 32.5 million was recorded primarily as a reduction to the cost basis of property, plant, and equipment or reduction to the related expense.
Government assistance in prior fiscal years was immaterial.
Accounting Pronouncements Issued Not Yet Adopted In November 2024, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses , which requires additional disclosure of the nature of expenses included in the income statement.
The standard requires disclosures about specific types of expenses included in the expense captions presented in the income THE COOPER COMPANIES, INC.
AND SUBSIDIARIES Notes to Consolidated Financial Statements statement.
In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which enhances the disclosures required for operating segments in our annual and interim consolidated financial statements.
The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, which means it will be effective from our fiscal year ended October 31, 2025, and interim periods within fiscal years beginning from November 01, 2025, and will be applied retrospectively.
We are currently evaluating the impact of adopting this ASU on our consolidated financial statements and disclosures.
Operating Leases The following table presents information about leases on the Consolidated Balance Sheets: October 31, (In millions) 2024 2023 Operating Leases Operating lease right-of-use assets $ 260.7 $ 241.5 Operating lease liabilities, current 38.6 38.2 Operating lease liabilities, non-current 230.8 215.6 Total operating lease liabilities $ 269.4 $ 253.8 Weighted-average remaining lease term (in years) 10.3 10.0 Weighted-average discount rate 4 % 4 % Operating lease expense for the fiscal years ended October 31, 2024, 2023 and 2022 was $ 47.4 million, $ 48.1 million and $ 45.0 million.
Maturity of Lease Liabilities The minimum rental payments required under operating leases that have initial or remaining noncancellable lease terms in excess of one year as of October 31, 2024, are: THE COOPER COMPANIES, INC.
AND SUBSIDIARIES Notes to Consolidated Financial Statements (In millions) 2025 48.6 2026 42.2 2027 37.8 2028 33.0 2029 28.5 Thereafter 148.1 Total lease payments $ 338.2 Less: interest 68.8 Present value of lease liabilities $ 269.4 Excluded from the above table are additional leases to expand manufacturing as well as research and development capacity that have not yet commenced.
The undiscounted lease payments are estimated at $ 171 million for leases that will commence starting in fiscal 2025 with initial terms ranging from 20 to 25 years.
The Company is in the process of finalizing purchase accounting information.

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