Segment Information

12 Months Ended

Oct. 26, 2012

Segment Information [Abstract]

Segment Information

NOTE 14 – 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 fourth quarter of fiscal year 2012, we exited the gelcoat products market. 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. Identifiable assets are those directly identified with each reportable segment. Corporate assets included within All Other include cash and cash equivalents, deferred pension assets, intangibles and the headquarters property, plant and equipment. The accounting policies of the reportable segments are the same as those described in Note 1. Comparative segment data for fiscal years 2012, 2011 and 2010 are as follows:

	2012			2011			2010
Net Sales
Coatings	$	2,176,732		$	2,092,490		$	1,814,804
Paints		1,604,599			1,612,219			1,176,831
All Other		379,653			360,059			335,354
Less Intersegment sales		(140,133	)		(111,814	)		(100,302	)
Total Net Sales	$	4,020,851		$	3,952,954		$	3,226,687

	2012			2011			2010
EBIT
Coatings	$	356,389		$	(112,209	)	$	256,466
Paints		159,598			134,886			151,432
All Other		(31,159	)		(64,320	)		(30,434	)
Total EBIT		484,828			(41,643	)		377,464
Interest Expense		67,604			61,511			58,267
Income (Loss) before Income Taxes	$	417,224		$	(103,154	)	$	319,197

	2012		2011		2010
Depreciation and Amortization
Coatings	$	39,166	$	47,205	$	45,006
Paints		35,220		34,202		18,686
All Other		19,318		16,340		17,620
Total Depreciation and Amortization	$	93,704	$	97,747	$	81,312

	2012		2011		2010
Identifiable Assets
Coatings	$	2,071,211	$	2,118,589	$	2,368,262
Paints		1,174,252		1,030,712		1,117,485
All Other1		381,373		350,850		382,189
Total Identifiable Assets	$	3,626,836	$	3,500,151	$	3,867,936

¹ Includes our consolidated cash and cash equivalent balances and restricted cash.

	2012		2011		2010
Capital Expenditures
Coatings	$	52,575	$	32,284	$	30,355
Paints		20,839		18,650		16,644
All Other		15,949		15,535		20,733
Total Capital Expenditures	$	89,363	$	66,469	$	67,732

Geographic net sales are based on the country from which the customer was billed for the products sold. The United States is the largest country for customer sales. China and Australia are the only countries outside of the United States that represent more than 10% of consolidated sales. Long-lived assets include property, plant and equipment, intangibles and goodwill attributable to each country's operations. Net sales and long-lived assets by geographic region are as follows:

	2012		2011		2010
Net Sales – External
United States	$	2,177,694	$	2,055,494	$	1,922,781
China		498,352		488,272		418,017
Australia		411,433		481,578		103,042
Other Countries		933,372		927,610		782,847
Total Net Sales – External	$	4,020,851	$	3,952,954	$	3,226,687
	2012		2011		2010
Long-lived Assets
United States	$	1,171,027	$	1,186,267	$	1,498,192
China		377,593		366,417		465,505
Australia		142,603		144,316		153,571
Other Countries		466,520		462,545		443,570
Total Long-lived Assets	$	2,157,743	$	2,159,545	$	2,560,838

We have one significant customer in the Paints segment whose net sales ranged from 16.4% to 19.2% of total net sales over the last three years.