OPERATING SEGMENTS

12 Months Ended

Oct. 29, 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 metal 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 financing costs, 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 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 Year Ended
	October 29, 2017			October 30, 2016			November 1, 2015
Total sales:
Engineered Building Systems	$	693,980		$	672,235		$	667,166
Metal Components	1,129,816			1,044,040			920,845
Metal Coil Coating	271,085			247,736			231,732
Intersegment sales	(324,603		)	(279,083		)	(256,050		)
Total net sales	$	1,770,278		$	1,684,928		$	1,563,693
External sales:
Engineered Building Systems	$	659,863		$	652,471		$	647,881
Metal Components	998,279			925,863			815,310
Metal Coil Coating	112,136			106,594			100,502
Total net sales	$	1,770,278		$	1,684,928		$	1,563,693
Operating income (loss):
Engineered Building Systems	$	41,388		$	62,046		$	51,410
Metal Components	124,224			102,495			50,541
Metal Coil Coating	23,935			25,289			19,080
Corporate	(79,767		)	(81,051		)	(64,200		)
Total operating income	$	109,780		$	108,779		$	56,831
Unallocated other expense	(26,642		)	(29,815		)	(30,041		)
Income before income taxes	$	83,138		$	78,964		$	26,790
Depreciation and amortization:
Engineered Building Systems	$	9,014		$	9,767		$	10,224
Metal Components	26,717			26,416			35,713
Metal Coil Coating	4,757			4,674			4,401
Corporate	830			1,067			1,054
Total depreciation and amortization expense	$	41,318		$	41,924		$	51,392

	Fiscal Year Ended
	October 29, 2017		October 30, 2016		November 1, 2015
Capital expenditures:
Engineered Building Systems	$	5,533	$	7,571	$	6,053
Metal Components	11,978		9,133		9,145
Metal Coil Coating	2,837		1,805		3,279
Corporate	1,726		2,515		2,206
Total capital expenditures	$	22,074	$	21,024	$	20,683
Property, plant and equipment, net:
Engineered Building Systems	$	46,620	$	50,862	$	51,196
Metal Components	132,985		141,282		152,346
Metal Coil Coating	37,739		39,678		42,558
Corporate	9,651		10,390		11,792
Total property, plant and equipment, net	$	226,995	$	242,212	$	257,892
Total assets:
Engineered Building Systems	$	232,089	$	229,422	$	218,646
Metal Components	657,729		654,534		654,762
Metal Coil Coating	82,897		87,194		81,456
Corporate	78,458		79,050		115,260
	$	1,051,173	$	1,050,200	$	1,070,124

The following table represents summary financial data attributable to various geographic regions for the periods indicated (in thousands):

	Fiscal Year Ended
	October 29, 2017		October 30, 2016		November 1, 2015
Total sales:
United States of America	$	1,666,645	$	1,589,479	$	1,469,495
Canada	73,090		61,781		72,567
China	8,923		6,733		2,734
Mexico	4,910		4,060		5,686
All other	16,710		22,875		13,211
Total net sales	$	1,770,278	$	1,684,928	$	1,563,693
Long-lived assets:
United States of America	$	493,203	$	523,134	$	562,443
Canada	8,180		9,247		90
China	448		170		309
Mexico	10,603		10,701		9,471
Total long-lived assets	$	512,434	$	543,252	$	572,313

Sales are determined based on customers’ requested shipment location.