Operating Segments

6 Months Ended

Jun. 01, 2013

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 operating segments based on segment operating income, which is defined as gross profit less selling, general and administrative (SG&A) expenses. Segment operating income excludes special charges, net. Corporate expenses are fully allocated to each operating segment. Corporate assets are not allocated to the segments. Inter-segment revenues are recorded at cost plus a markup for administrative costs. 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.

The net revenue and segment operating income of the industrial adhesives business acquired in 2012 was recorded in our North America Adhesives, EIMEA, Latin America and Asia Pacific operating segments.

The tables below provide certain information regarding the net revenue and segment operating incomeof each of our operating segments:

	13 Weeks Ended
	June 1, 2013						June 2, 2012
				Inter-		Segment				Inter-		Segment
		Trade	Segment			Operating		Trade	Segment			Operating
		Revenue	Revenue			Income		Revenue	Revenue			Income
North America Adhesives	$	190,641	$	14,220	$	28,448	$	193,382	$	15,615	$	25,115
Construction Products		42,934		134		4,047		39,679		105		3,148
EIMEA		185,194		2,793		14,145		193,943		2,307		9,485
Latin America		38,132		141		3,377		38,555		289		3,729
Asia Pacific		62,115		3,788		2,793		61,436		4,596		2,118
Total	$	519,016			$	52,810	$	526,995			$	43,595
	26 Weeks Ended
	June 1, 2013						June 2, 2012
				Inter-		Segment				Inter-		Segment
		Trade	Segment			Operating		Trade	Segment			Operating
		Revenue	Revenue			Income		Revenue	Revenue			Income
North America Adhesives	$	362,903	$	26,832	$	51,922	$	311,478	$	29,386	$	42,610
Construction Products		76,965		215		5,411		72,173		210		3,620
EIMEA		362,695		5,469		20,618		304,594		4,356		16,033
Latin America		73,601		214		5,828		74,152		676		6,116
Asia Pacific		122,694		7,279		4,767		110,052		8,050		2,873
Total	$	998,858			$	88,546	$	872,449			$	71,252

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 1,		June 2,		June 1,		June 2,
		2013		2012		2013		2012
Segment operating income	$	52,810	$	43,595	$	88,546	$	71,252
Special charges, net		(10,843)		(32,127)		(16,176)		(38,609)
Asset impairment charges		-		(671)		-		(671)
Other income (expense), net		(1,814)		231		(1,436)		648
Interest expense		(4,884)		(5,749)		(10,211)		(8,367)
Income from continuing operations before income taxes and income from equity method investments	$	35,269	$	5,279	$	60,723	$	24,253