Operating Segments

12 Months Ended

Nov. 29, 2014

Operating Segments Abstract

Segment Reporting Disclosure

Note 14: Operating Segments

We are required to report segment information in the same way that we internally organize our business for assessing performance and making decisions regarding allocation of resources. We report our business in four reportable segments: the Americas Adhesives, EIMEA, Asia Pacific and Construction Products.

For segment evaluation by the chief operating decision maker, segment operating income is defined as gross profit less SG&A expenses. Segment operating income excludes special charges, net and asset impairment charges. Corporate expenses are fully allocated to each operating segment. Corporate assets are not allocated to the operating segments. Inter-segment revenues are recorded at cost plus a markup for administrative costs. Operating results of each of these segments are regularly reviewed by our chief operating decision maker to make decisions about resources to be allocated to the segments and assess their performance.

The business components within each operating segment are managed to maximize the results of the overall operating segment rather than the results of any individual business component of the operating segment. Results of individual components of each operating segment are subject to numerous allocations of segment-wide costs that may or may not have been focused on that particular component for a particular reporting period. The costs for these allocated resources are not tracked on a “where-used” basis as financial performance is assessed at the total operating segment level.

Reportable operating segment financial information for all periods presented follows:

			2014		2013		2012
Net revenue
	Americas Adhesives	$	920,679	$	902,573	$	838,615
	EIMEA		719,787		733,211		672,423
	Asia Pacific		275,809		252,608		228,121
	Construction Products		188,179		158,576		147,080
	Total	$	2,104,454	$	2,046,968	$	1,886,239
Inter-segment sales
	Americas Adhesives	$	23,569	$	22,120	$	26,096
	EIMEA		19,089		13,918		9,228
	Asia Pacific		14,402		13,034		14,818
	Construction Products		1,474		800		462
Segment operating income
	Americas Adhesives	$	103,339	$	123,265	$	112,368
	EIMEA		30,521		51,526		34,483
	Asia Pacific		9,317		9,771		7,356
	Construction Products		6,664		10,940		8,334
	Total	$	149,841	$	195,502	$	162,541
Depreciation and amortization
	Americas Adhesives	$	22,180	$	20,832	$	18,852
	EIMEA		24,363		20,420		18,399
	Asia Pacific		7,230		6,522		6,238
	Construction Products		11,751		11,021		11,001
	Total	$	65,524	$	58,795	$	54,490
Total assets1
	Americas Adhesives	$	474,691	$	471,520	$	465,253
	EIMEA		787,194		759,757		674,665
	Asia Pacific		238,627		218,471		197,999
	Construction Products		198,276		175,489		179,508
	Corporate		168,353		245,926		267,030
	Discontinued Operations		1,865		1,865		1,865
	Total	$	1,869,006	$	1,873,028	$	1,786,320
Capital expenditures
	Americas Adhesives	$	18,045	$	26,225	$	15,036
	EIMEA		71,926		63,512		13,402
	Asia Pacific		22,377		10,150		3,511
	Construction Products		2,073		1,737		1,762
	Corporate		25,373		22,664		2,202
	Total	$	139,794	$	124,288	$	35,913
1Segment assets include primarily inventory, accounts receivable, property, plant and equipment and other miscellaneous assets. Corporate assets include primarily corporate property, plant and equipment, deferred tax assets, certain investments and other assets.
Reconciliation of segment operating income to income from continuing operations before income taxes and income from equity method investments
			2014		2013		2012
Segment operating income		$	149,841	$	195,502	$	162,541
Special charges, net			(51,501)		(45,087)		(52,467)
Asset impairment charges			-		-		(1,517)
Other income (expense), net			716		(3,751)		784
Interest expense			(19,744)		(19,120)		(19,793)
Income from continuing operations before income taxes and income from equity method investments		$	79,312	$	127,544	$	89,548
Financial information about geographic areas
		Net Revenue
			2014		2013		2012
	United States	$	878,058	$	855,053	$	802,362
	All other countries with less than 10 percent of total		1,226,396		1,191,915		1,083,877
	Total	$	2,104,454	$	2,046,968	$	1,886,239
		Property, Plant and Equipment, net
			2014		2013		2012
	United States	$	205,412	$	185,260	$	158,973
	Germany		116,301		86,335		42,434
	All other countries with less than 10 percent of total		180,921		162,792		127,609
	Total	$	502,634	$	434,387	$	329,016