OPERATING SEGMENTS

9 Months Ended

Jul. 30, 2017

Segment Reporting [Abstract]

OPERATING SEGMENTS

OPERATING SEGMENTS

Operating segments are defined as components of an enterprise that engage in business activities and by which discrete financial information is available that is evaluated on a regular basis by the chief operating decision maker to make decisions about how to allocate resources to the segment and assess the performance of the segment. We have three operating segments: Engineered Building Systems; Metal Components; and Metal Coil Coating. All operating segments operate primarily in the nonresidential construction market. Sales and earnings are influenced by general economic conditions, the level of nonresidential construction activity, metal roof repair and retrofit demand and the availability and terms of financing available for construction. Products of our operating segments use similar basic raw materials. The Metal Coil coating segment consists of cleaning, treating, painting and slitting continuous steel coils before the steel is fabricated for use by construction and industrial users. The Metal Components segment products include metal roof and wall panels, doors, metal partitions, metal trim, insulated panels and other related accessories. The Engineered Building Systems segment includes the manufacturing of main frames, Long Bay® Systems and value-added engineering and drafting, which are typically not part of Metal Components or Metal Coil coating products or services. The operating segments follow the same accounting policies used for our consolidated financial statements. 

We evaluate a segment’s performance based primarily upon operating income before corporate expenses. Intersegment sales are recorded based on standard material costs plus a standard markup to cover labor and overhead and consist of (i) hot-rolled, light gauge painted and slit material and other services provided by the Metal Coil Coating segment to both the Metal Components and Engineered Building Systems segments; (ii) building components provided by the Metal Components segment to the Engineered Building Systems segment; and (iii) structural framing provided by the Engineered Building Systems segment to the Metal Components segment. 

Corporate assets consist primarily of cash, but also include deferred taxes and property, plant and equipment associated with our headquarters in Houston, Texas. These items (and income and expenses related to these items) are not allocated to the operating segments. Corporate unallocated expenses include share-based compensation expenses, and executive, legal, finance, tax, treasury, human resources, information technology, purchasing, marketing and corporate travel expenses. Additional unallocated amounts primarily include interest income, interest expense and other (expense) income.

The following table represents summary financial data attributable to these operating segments for the periods indicated (in thousands):

	Fiscal Three Months Ended						Fiscal Nine Months Ended
	July 30, 2017			July 31, 2016			July 30, 2017			July 31, 2016
Total sales:
Engineered Building Systems	$	191,910		$	181,029		$	505,797		$	468,028
Metal Components	297,006			287,307			813,100			751,610
Metal Coil Coating	70,559			72,069			198,078			178,452
Intersegment sales	(90,090		)	(78,052		)	(235,423		)	(193,476		)
Total sales	$	469,385		$	462,353		$	1,281,552		$	1,204,614
External sales:
Engineered Building Systems	$	182,164		$	175,471		$	481,641		$	455,876
Metal Components	258,486			256,195			717,021			670,757
Metal Coil Coating	28,735			30,687			82,890			77,981
Total sales	$	469,385		$	462,353		$	1,281,552		$	1,204,614
Operating income (loss):
Engineered Building Systems	$	14,948		$	19,561		$	28,346		$	39,216
Metal Components	35,289			37,497			91,406			71,436
Metal Coil Coating	6,562			8,748			17,320			18,272
Corporate	(22,702		)	(22,271		)	(60,617		)	(59,538		)
Total operating income	$	34,097		$	43,535		$	76,455		$	69,386
Unallocated other expense, net	(6,031		)	(8,193		)	(19,494		)	(22,072		)
Income before income taxes	$	28,066		$	35,342		$	56,961		$	47,314

	July 30, 2017		October 30, 2016
Total assets:
Engineered Building Systems	$	236,444	$	229,422
Metal Components	663,075		654,534
Metal Coil Coating	89,133		87,194
Corporate	56,210		79,050
Total assets	$	1,044,862	$	1,050,200