Operating Segments

9 Months Ended

Aug. 31, 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 Plexbond acquired in the third quarter of 2013 was recorded in our Latin Americaoperating segment.The net revenue and segment operating income of Engent acquired in the fourth quarter of 2012 was recorded in our North America Adhesives operating segment. The net revenue and segment operating income of the Forbo 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 net revenue and segment operating incomeof each of our operating segments:

	13 Weeks Ended
	August 31, 2013						September 1, 2012
				Inter-		Segment				Inter-		Segment
		Trade	Segment			Operating		Trade	Segment			Operating
		Revenue	Revenue			Income		Revenue	Revenue			Income
North America Adhesives	$	190,082	$	12,985	$	32,171	$	190,234	$	14,229	$	30,478
Construction Products		40,857		517		3,269		37,590		25		1,299
EIMEA		180,753		3,400		14,199		177,493		2,225		6,269
Latin America		43,433		35		2,700		39,572		-		3,310
Asia Pacific		59,454		2,708		1,564		55,646		3,289		1,613
Total	$	514,579			$	53,903	$	500,535			$	42,969
	39 Weeks Ended
	August 31, 2013						September 1, 2012
				Inter-		Segment				Inter-		Segment
		Trade	Segment			Operating		Trade	Segment			Operating
		Revenue	Revenue			Income		Revenue	Revenue			Income
North America Adhesives	$	552,985	$	39,817	$	84,093	$	501,712	$	43,615	$	73,089
Construction Products		117,822		732		8,680		109,763		234		4,919
EIMEA		543,448		8,869		34,817		482,087		6,581		22,302
Latin America		117,034		248		8,528		113,724		-		9,426
Asia Pacific		182,148		9,987		6,331		165,698		11,339		4,486
Total	$	1,513,437			$	142,449	$	1,372,984			$	114,222

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
		August 31,		September 1,		August 31,		September 1,
		2013		2012		2013		2012
Segment operating income	$	53,903	$	42,969	$	142,449	$	114,222
Special charges, net		(12,775)		(4,654)		(28,951)		(43,263)
Asset impairment charges		-		-		-		(671)
Other income (expense), net		(1,046)		(622)		(2,482)		25
Interest expense		(4,579)		(5,950)		(14,790)		(14,317)
Income from continuing operations before income taxes and income from equity method investments	$	35,503	$	31,743	$	96,226	$	55,996