Note 11 - Operating Segments

3 Months Ended

Feb. 27, 2016

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note

11

: 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 evaluate the performance of each of our operating segments based on segment operating income, which is defined as gross profit less SG&A expenses. Segment operating income excludes special charges, net. Corporate expenses are fully allocated to each operating segment. Inter-segment revenues are recorded at cost plus a markup for administrative costs. Operating results of each segment are regularly reviewed by our chief operating decision maker to make decisions about resources to be allocated to the segments and assess their performance.

Through the fourth quarter of 2015, our business was reported in four operating segments: Americas Adhesives, Europe, India, Middle East and Africa (EIMEA), Asia Pacific and Construction Products. Changes in our management reporting structure during the first quarter of 2016 required us to conduct an operating segment assessment in accordance with ASC Topic 280,

Segment Reporting

, to determine our reportable segments. As a result of this assessment, we now have five reportable segments: Americas Adhesives, EIMEA, Asia Pacific, Construction Products and Engineering Adhesives. Prior period segment information has been recast retrospectively to reflect our new operating segments.

The table below provides certain information regarding net revenue and segment operating income for each of our operating segments:

	Quarter Ended
	February 27, 2016						February 28, 2015
			Inter-		Segment				Inter-		Segment
	Trade		Segment		Operating		Trade		Segment		Operating
	Revenue		Revenue		Income		Revenue		Revenue		Income
Americas Adhesives	$	183,319	$	3,630	$	26,259	$	194,073	$	5,383	$	21,677
EIMEA		124,291		5,271		6,163		134,115		4,551		685
Asia Pacific		53,860		951		3,753		55,343		3,466		3,145
Construction Products		60,074		104		785		58,456		176		1,014
Engineering Adhesives		52,782		-		878		28,674		-		(5,148	)
Total	$	474,326			$	37,838	$	470,661			$	21,373

Reconciliation of segment operating income to income before income taxes and income from equity method investments:

	Quarter Ended
	February 27,			February 28,
	2016			2015
Segment operating income	$	37,838		$	21,373
Special charges, net		(413	)		(2,361	)
Other income (expense), net		(5,082	)		363
Interest expense		(6,308	)		(6,102	)
Income before income taxes and income from equity method investments	$	26,035		$	13,273

The table below provides total assets of each of our operating segments as of November 28, 2015:

Total assets	November 28, 2015
Americas Adhesives	$	436,526
EIMEA		628,780
Asia Pacific		213,025
Construction Products		218,897
Engineering Adhesives		387,206
Corporate		157,818
Total	$	2,042,252