Operating Segments

6 Months Ended

Jun. 02, 2012

Operating Segments Abstract

Segment Reporting Disclosure

Note 11: Operating Segments

We are required to report segment information in the same way that we internally organize our business for assessing performance and making decisions regarding allocation of resources. We evaluate the performance of each of our five operating segments based on segment operating income, which is defined as gross profit lessselling, general and administrative (SG&A) expenses. Segment operating income excludes special charges, net and asset impairment charges. Operating results of each segment are regularly reviewed by our chief operating decision maker to make decisions about resources to be allocated to the segments and assess their performance.Prior periods have been restated for the removal of the Latin America Paints operating segment which is now considered discontinued operations. Corporate expenses, which are fully allocated to each operating segment, have been reallocated to the remaining reportable operating segments. The net revenue and segment operating income of the industrial adhesives business acquired was recorded in our North America Adhesives, EMIEA, Latin America Adhesives and Asia Pacific operating segments. Upon completion of the fair value measurement, the assets of the industrial adhesives business acquired will also be assigned to our North America Adhesives, EIMEA, Latin America Adhesives and Asia Pacific operating segments.

The tables below provide certain information regarding the net revenue and segment operating incomeof each of our operating segments. Prior periods have been restatedto reflect our segment presentation:

	13 Weeks Ended
	June 2, 2012						May 28, 2011
				Inter-	Segment					Inter-		Segment
		Trade	Segment			Operating		Trade	Segment			Operating
		Revenue	Revenue			Income		Revenue	Revenue			Income
North America Adhesives	$	193,382	$	15,615	$	25,115	$	121,942	$	14,883	$	17,326
Construction Products		39,679		105		3,148		38,401		81		2,676
EIMEA		193,943		2,307		9,485		121,702		2,362		7,683
Latin America Adhesives		38,555		289		3,729		36,565		280		2,650
Asia Pacific		61,436		4,596		2,118		49,750		1,531		2,493
Total	$	526,995			$	43,595	$	368,360			$	32,828
	26 Weeks Ended
	June 2, 2012						May 28, 2011
				Inter-	Segment					Inter-		Segment
		Trade	Segment			Operating		Trade	Segment			Operating
		Revenue	Revenue			Income		Revenue	Revenue			Income
North America Adhesives	$	311,478	$	29,386	$	42,610	$	229,979	$	27,482	$	32,086
Construction Products		72,173		210		3,620		65,302		174		2,183
EIMEA		304,594		4,356		16,033		222,515		5,316		9,207
Latin America Adhesives		74,152		676		6,116		68,000		564		3,560
Asia Pacific		110,052		8,050		2,873		93,673		4,346		3,384
Total	$	872,449			$	71,252	$	679,469			$	50,420

Reconciliation of segment operating income to income from continuing operations before income taxes and income from equity method investments:
		13 Weeks Ended				26 Weeks Ended
		June 2,		May 28,		June 02,		May 28,
		2012		2011		2012		2011
Segment operating income	$	43,595	$	32,828	$	71,252	$	50,420
Special charges, net		(32,127)		-		(38,609)		-
Asset impairment charges		(671)		-		(671)		(332)
Other income (expense), net		231		(4)		648		216
Interest expense		(5,749)		(2,572)		(8,367)		(5,153)
Income from continuing operations before income taxes and income from equity method investments	$	5,279	$	30,252	$	24,253	$	45,151