Operating Segments

6 Months Ended

May 28, 2011

Note 10: Operating Segments

Through the first quarter of 2011, we managed our business based on four primary geographic regions: North America, EIMEA, Latin America and Asia Pacific which were our reportable segments for SEC disclosure purposes. The change in our CEO at the end of fiscal 2010 resulted in a review of our management reporting structure. Changes in the reporting structure, during the second quarter of 2011, required us to conduct an operating segment assessment in accordance with ASC Topic 280 “Segment Reporting”, to determine our reportable segments. The conclusion of the assessment is that we now have six reportable segments: North America Adhesives, Construction Products, EIMEA, Latin America Adhesives, Latin America Paints and Asia Pacific. Operating results of each of these segments are regularly reviewed by our chief operating decision maker to make decisions about resources to be allocated to the segments and assess their performance.

We evaluate the performance of each of our operating segments based on operating income, which is defined as gross profit less selling, general and administrative (SG&A) expenses. Corporate expenses are fully allocated to each operating segment.

The tables below provide certain information regarding the net revenue, operating income and total assets of each of our operating segments and prior periods have been restated:

	13 Weeks Ended
	May 28, 2011						May 29, 2010
				Inter-						Inter-
		Trade	Segment			Operating		Trade	Segment			Operating
		Revenue	Revenue			Income		Revenue	Revenue			Income
North America Adhesives	$	121,932	$	14,883	$	17,774	$	115,399	$	13,867	$	16,636
Construction Products		38,397		81		2,804		35,703		79		2,207
EIMEA		121,691		2,362		8,078		104,568		2,108		3,294
Latin America Adhesives		36,243		280		2,677		31,673		249		2,135
Latin America Paints		25,714		594		992		23,065		123		123
Asia Pacific		49,745		1,531		2,659		37,500		1,890		1,421
Total	$	393,722			$	34,984	$	347,908			$	25,816

	26 Weeks Ended
	May 28, 2011						May 29, 2010
				Inter-						Inter-
		Trade	Segment			Operating		Trade	Segment			Operating
		Revenue	Revenue			Income		Revenue	Revenue			Income
North America Adhesives	$	229,960	$	27,482	$	33,010	$	215,928	$	24,381	$	33,866
Construction Products		65,295		174		2,449		62,241		152		2,180
EIMEA		222,497		5,316		10,024		198,586		4,240		7,404
Latin America Adhesives		67,346		564		3,653		60,796		558		4,097
Latin America Paints		54,507		1,244		3,374		49,236		135		1,013
Asia Pacific		93,665		4,346		3,725		70,563		3,489		3,487
Total	$	733,270			$	56,235	$	657,350			$	52,047


Total assets		May 28, 2011		May 29, 2010
	North America Adhesives	$	193,178	$	205,456
	Construction Products		191,200		198,920
	EIMEA		334,793		267,597
	Latin America Adhesives		88,786		81,983
	Latin America Paints		71,519		63,951
	Asia Pacific		163,150		95,738
	Corporate		207,233		218,297
	Total	$	1,249,859	$	1,131,942

Segment assets include primarily inventory, trade receivable, property, plant and equipment and other miscellaneous assets. Corporate assets include primarily corporate property, plant and equipment, deferred tax assets, certain investments and other assets.

Reconciliation of operating income to income before income taxes and income from equity method investments:

		13 Weeks Ended				26 Weeks Ended
		May 28,		May 29,		May 28,		May 29,
		2011		2010		2011		2010
Operating income	$	34,984	$	25,816	$	56,235	$	52,047
Asset impairment charges		-		(8,785)		(332)		(8,785)
Other income (expense), net		(51)		1,340		243		1,277
Interest expense		(2,572)		(3,043)		(5,153)		(4,991)
Income before income taxes and income from equity method investments	$	32,361	$	15,328	$	50,993	$	39,548