Operating Segments

9 Months Ended

Sep. 01, 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, EIMEA, 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
	September 1, 2012						August 27, 2011
				Inter-	Segment					Inter-		Segment
		Trade	Segment			Operating		Trade	Segment			Operating
		Revenue	Revenue			Income		Revenue	Revenue			Income
North America Adhesives	$	190,234	$	14,229	$	30,478	$	124,289	$	17,211	$	20,018
Construction Products		37,590		25		1,299		35,264		306		1,541
EIMEA		177,493		2,225		6,269		117,118		2,592		6,221
Latin America Adhesives		39,572		-		3,310		36,182		174		1,291
Asia Pacific		55,646		3,289		1,613		50,218		2,776		1,890
Total	$	500,535			$	42,969	$	363,071			$	30,961
	39 Weeks Ended
	September 1, 2012						August 27, 2011
				Inter-	Segment					Inter-		Segment
		Trade	Segment			Operating		Trade	Segment			Operating
		Revenue	Revenue			Income		Revenue	Revenue			Income
North America Adhesives	$	501,712	$	43,615	$	73,089	$	354,268	$	44,693	$	52,104
Construction Products		109,763		234		4,919		100,566		481		3,724
EIMEA		482,087		6,581		22,302		339,633		7,908		15,428
Latin America Adhesives		113,724		-		9,426		104,182		738		4,851
Asia Pacific		165,698		11,339		4,486		143,891		7,121		5,273
Total	$	1,372,984			$	114,222	$	1,042,540			$	81,380

Reconciliation of segment operating income to income from continuing operations before income taxes and income from equity method investments:
		13 Weeks Ended				39 Weeks Ended
		September 1,		August 27,		September 1,		August 27,
		2012		2011		2012		2011
Segment operating income	$	42,969	$	30,961	$	114,222	$	81,380
Special charges, net		(4,654)		-		(43,263)		-
Asset impairment charges		-		-		(671)		(332)
Other income (expense), net		(622)		1,716		25		1,931
Interest expense		(5,950)		(2,763)		(14,317)		(7,916)
Income from continuing operations before income taxes and income from equity method investments	$	31,743	$	29,914	$	55,996	$	75,063