Segment Information

3 Months Ended

Jan. 24, 2014

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 product lines and our 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 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 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. 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 the first quarter of 2014 and 2013 was as follows:

		Three Months Ended
		January 24,			January 25,
		2014			2013
Net Sales
Coatings	$	548,585		$	497,616
Paints		361,405			329,079
Other and Administrative		89,715			81,617
Less Intersegment Sales		(43,586	)		(33,070	)
Total Net Sales	$	956,119		$	875,242
EBIT
Coatings	$	69,975		$	74,340
Paints		30,997			22,543
Other and Administrative		(5,783	)		(4,302	)
Total EBIT		95,189			92,581
Interest expense		15,932			15,873
Income Before Income Taxes	$	79,257		$	76,708

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