Segment Information

12 Months Ended

Oct. 25, 2013

Segment Information [Abstract]

Segment Information

NOTE 15 – 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 product lines and packaging product line. 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 packaging containers, principally metal 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 finishes 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 in many countries around the world.

Our remaining activities are included in Other and Administrative (formerly All Other). These activities include specialty polymers and colorants that are used internally and sold to other coatings manufacturers, as well as related products and furniture protection plans. In the fourth quarter of fiscal year 2012, we exited the gelcoat products market. Also included within Other and Administrative are our corporate administrative expenses. The administrative expenses include expenses not directly allocated to any other reportable segment.

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 segment data for fiscal years 2013, 2012, and 2011 are as follows:

		2013			2012			2011
Net Sales
Coatings	$	2,209,492		$	2,175,687		$	2,092,490
Paints		1,671,228			1,604,599			1,612,219
Other and Administrative		377,991			380,698			360,059
Less Intersegment sales		(154,935	)		(140,133	)		(111,814	)
Total Net Sales	$	4,103,776		$	4,020,851		$	3,952,954

		2013			2012			2011
EBIT
Coatings	$	329,886		$	356,428		$	(112,209	)
Paints		168,395			159,598			134,886
Other and Administrative		(9,728	)		(31,198	)		(64,320	)
Total EBIT		488,553			484,828			(41,643	)
Interest Expense		64,758			67,604			61,511
Income (Loss) before Income Taxes	$	423,795		$	417,224		$	(103,154	)

		2013		2012		2011
Depreciation and Amortization
Coatings	$	39,705	$	39,166	$	47,205
Paints		33,825		35,220		34,202
Other and Administrative		14,629		19,318		16,340
Total Depreciation and Amortization	$	88,159	$	93,704	$	97,747

		2013		2012		2011
Identifiable Assets
Coatings	$	2,346,701	$	2,071,211	$	2,118,589
Paints		1,309,214		1,174,252		1,030,712
Other and Administrative 1		369,594		381,373		350,850
Total Identifiable Assets	$	4,025,509	$	3,626,836	$	3,500,151

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

		2013		2012		2011
Capital Expenditures
Coatings	$	46,194	$	52,575	$	32,284
Paints		32,856		20,839		18,650
Other and Administrative		37,699		15,949		15,535
Total Capital Expenditures	$	116,749	$	89,363	$	66,469

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

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:

		2013		2012		2011
Net Sales – External
United States	$	2,310,786	$	2,177,694	$	2,055,494
China		484,689		498,352		488,272
Australia		356,780		411,433		481,578
Other Countries		951,521		933,372		927,610
Total Net Sales – External	$	4,103,776	$	4,020,851	$	3,952,954
		2013		2012		2011
Long-lived Assets
United States	$	1,215,784	$	1,171,027	$	1,186,267
China		412,122		377,593		366,417
Australia		121,700		142,603		144,316
Other Countries		637,529		466,520		462,545
Total Long-lived Assets	$	2,387,135	$	2,157,743	$	2,159,545

We have one significant customer in the Paints segment whose net sales were 17.9%, 16.8%, and 16.4% of total consolidated net sales in 2013, 2012 and 2011 respectively.