Business Segment Information

12 Months Ended

Nov. 30, 2016

Segment Reporting [Abstract]

Business Segment Information

Business Segment Information

During fiscal 2016, the Company’s two operating segments are Performance Chemicals and Engineered Surfaces. The Company’s operating segments are strategic business units that offer different products and services. They are managed separately based on fundamental differences in their operations. Accounting policies of the segments are the same as those described in the significant accounting policies.

Segment operating profit represents net sales less applicable costs, expenses and provisions for restructuring and severance costs, asset write-offs and work stoppage costs relating to operations. However, management excludes restructuring and severance costs, asset write-offs and work stoppage costs when evaluating the results and allocating resources to the segments.

Segment operating profit excludes unallocated corporate headquarters expenses, provisions for corporate headquarters restructuring and severance, interest expense and income taxes. Corporate headquarters expense includes the cost of providing and maintaining the corporate headquarters functions, including salaries, rent, travel and entertainment expenses, depreciation, utility costs, outside services and amortization of deferred financing costs.

For a discussion of segment performance, refer to Segment Discussion in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations of this Annual Report on Form 10-K.

In 2016, segment operating profit for Engineered Surfaces includes asset impairment charges of $5.7 million, restructuring and severance charges of $0.6 million, facility closure of $0.1 million, environmental charges of $0.3 million and operational improvement gains of $1.2 million, while the Performance Chemicals operating profit includes restructuring and severance charges of $2.7 million, facility closure of $2.6 million, operational improvement gains of $1.8 million, and accelerated depreciation charges of $3.0 million.

In 2015, segment operating profit for Engineered Surfaces includes restructuring and severance charges of $1.5 million, facility closure and asset impairment costs of $1.6 million and environmental remediation charges of $0.2 million while the Performance Chemicals operating profit includes asset impairment charges of $18.4 million, $5.8 million of accelerated depreciation, operational development costs of $5.0 million, restructuring and severance charges of $4.3 million and $2.8 million of environmental remediation charges.

Note P—Business Segment Information (Continued)

In 2014, segment operating profit for Engineered Surfaces includes restructuring and severance charges of $0.4 million and a gain on a note receivable of $1.1 million while the Performance Chemicals operating profit includes restructuring and severance charges of $0.5 million, $2.2 million of accelerated depreciation on re-purposed assets and $1.0 million of environmental remediation charges.

The following table sets forth a summary of operations by segment and a reconciliation of segment sales to consolidated sales and segment operating profit to consolidated income from continuing operations before income taxes.

	2016			2015			2014
	(Dollars in millions)
Net Sales
Performance Chemicals
Performance Materials	$	284.1		$	331.0		$	423.9
Specialty Chemicals	264.7			277.1			322.6
Total Performance Chemicals	$	548.8		$	608.1		$	746.5
Engineered Surfaces
Coated Fabrics	$	71.5		$	87.8		$	98.4
Laminates and Performance Films	139.6			142.1			142.7
Total Engineered Surfaces	$	211.1		$	229.9		$	241.1
Inter-segment sales	—			—			(0.2		)
Total Net Sales	$	759.9		$	838.0		$	987.4
Segment Operating Profit
Performance Chemicals	$	55.9		$	15.9		$	46.2
Engineered Surfaces	12.4			18.9			19.2
Total segment operating profit	68.3			34.8			65.4
Interest expense	(24.7		)	(28.3		)	(32.9		)
Corporate expenses	(25.8		)	(23.7		)	(20.0		)
Corporate severance	(4.9		)	—			—
Shareholder activist costs	—			(1.9		)	—
Operational improvement costs	.8			(.4		)	—
Asset impairment	—			(.6		)	—
Acquisition and integration costs	(.9		)	(.4		)	—
Debt issuance costs write-off	(2.9		)	(.6		)	(.8		)
Income (Loss) From Continuing Operations Before Income Taxes	$	9.9		$	(21.1	)	$	11.7

	2016		2015		2014
	(Dollars in millions)
Total Assets
Performance Chemicals	$	451.2	$	469.4	$	535.8
Engineered Surfaces	162.3		158.4		170.9
Corporate	79.7		59.4		122.5
	$	693.2	$	687.2	$	829.2
Capital Expenditures
Performance Chemicals	$	15.6	$	12.5	$	21.8
Engineered Surfaces	8.1		8.6		6.6
Corporate	1.9		2.9		1.4
	$	25.6	$	24.0	$	29.8
Depreciation and Amortization
Performance Chemicals	$	23.0	$	26.9	$	28.1
Engineered Surfaces	6.3		6.0		6.2
Corporate	1.3		1.1		.5
	$	30.6	$	34.0	$	34.8

Note P—Business Segment Information (Continued)

GEOGRAPHIC INFORMATION

	2016		2015			2014
	(Dollars in millions)
Net Sales
United States	$	454.0	$	490.4		$	581.5
Europe	176.0		167.6			208.9
Asia	129.9		180.0			197.0
	$	759.9	$	838.0		$	987.4
Segment Operating Profit
United States	$	56.7	$	31.5		$	43.4
Europe	10.9		(5.3		)	14.5
Asia	0.7		8.6			7.5
	$	68.3	$	34.8		$	65.4
Total Assets
United States	$	362.4	$	311.1		$	397.5
Europe	197.9		199.2			285.0
Asia	132.9		176.9			146.7
	$	693.2	$	687.2		$	829.2
Long-Lived Assets
United States	$	125.3	$	125.9		$	128.3
Europe	45.3		45.9			56.0
Asia	35.2		43.8			54.1
	$	205.8	$	215.6		$	238.4

Effective December 1, 2016, the Company announced the appointment of a new Chief Executive Officer, who also is the Company’s CODM. On January 20, 2017, the Company announced that it is currently evaluating how it expects to make decisions, assess performance and allocate resources prospectively. Going forward, the Company expects to have two operating segments: one focused on its specialty businesses and one focused on the Company’s more mature businesses. Accordingly, during the first quarter of fiscal 2017, the Company will be assessing its segment reporting, as defined under Financial Accounting Standards Board ("FASB") Accounting Standards Codification (“ASC”) 280, Segment Reporting, and expects any changes to its reportable segments to be disclosed and reflected in the Company’s consolidated financial statements for the second quarter of fiscal 2017.