Segment Information

9 Months Ended

Jul. 27, 2012

Segment Information [Abstract]

Segment Information

NOTE 7: SEGMENT INFORMATION

Based on the nature of our products, technology, manufacturing processes, customers and regulatory environment, we aggregate our operating segments into two reportable segments: Coatings and Paints. We are required to report segment information in the same way that management internally organizes its business for assessing performance and making decisions regarding allocation of resources. We evaluate the performance of operating segments and allocate resources based on profit or loss from operations before interest expense and taxes (EBIT).

The Coatings segment aggregates our industrial and packaging product lines. Industrial products include a broad range of decorative and protective coatings for metal, wood and plastic. Packaging products include both interior and exterior coatings used in metal packaging containers, principally food containers and beverage cans. The products of this segment are sold throughout the world.

The Paints segment aggregates our consumer paints and automotive refinish product lines. Consumer paint products include interior and exterior decorative paints, stains, primers, varnishes, high performance floor paints and specialty decorative products, such as enamels, aerosols and faux varnishes primarily distributed for the do-it-yourself and professional markets in Australia, China and North America. Automotive paint products include refinish paints and aerosol spray paints sold through automotive refinish distributors, body shops and automotive supply distributors and retailers.

Our remaining activities are included in All Other. These activities include specialty polymers and colorants that are used internally and sold to other coatings manufacturers, as well as gelcoats and related products and furniture protection plans. In the third quarter of fiscal year 2012, we announced the exit of our gelcoat product line as part of our restructuring initiatives. Also included within All Other are our corporate administrative expenses. The administrative expenses include amortization expense, certain environmental-related expenses and other expenses not directly allocated to any other operating segment.

It is not practicable to obtain the information needed to disclose revenues attributable to each of our identified product lines within our reportable segments.

In the following table, sales between segments are recorded at selling prices that are below market prices, generally intended to recover internal costs. Segment EBIT includes income realized on inter-segment sales. Comparative third quarter and year-to-date results on this basis are as follows:

	Three Months Ended						Nine Months Ended
	July 27, 2012			July 29, 2011			July 27, 2012			July 29, 2011
Net Sales
Coatings	$	569,713		$	560,759		$	1,605,187		$	1,526,284
Paints		442,576			441,553			1,208,444			1,195,884
All Other		105,572			98,277			289,508			266,655
Less intersegment sales		(39,513	)		(30,107	)		(106,572	)		(83,208	)
Total Net Sales	$	1,078,348		$	1,070,482		$	2,996,567		$	2,905,615
EBIT
Coatings	$	98,252		$	67,806		$	261,248		$	178,544
Paints		48,819			42,079			121,506			100,556
All Other		(3,645	)		255			(17,789	)		(6,603	)
Total EBIT	$	143,426		$	110,140		$	364,965		$	272,497
Interest expense	$	16,482		$	15,801		$	51,559		$	46,846
Income Before Income Taxes	$	126,944		$	94,339		$	313,406		$	225,651