Operating Segments

12 Months Ended

Nov. 30, 2013

Operating Segments Abstract

Segment Reporting Disclosure

Note 15: 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. Through the third quarter of 2013, our business was reported in five operating segments: North America Adhesives, Construction Products, EIMEA (Europe, India, Middle East and Africa), Latin America Adhesives and Asia Pacific. Changes in our management reporting structure during the fourth quarter of 2013 required us to conduct an operating segment assessment in accordance with ASC Topic 280 “Segment Reporting”, to determine our reportable segments. As result of this assessment, we now have four reportable segments: the Americas Adhesives, Construction Products, EIMEA and Asia Pacific.

For segment evaluation by the chief operating decision maker, segment operating income is defined as gross profit less SG&A expenses. Segment operating income excludes special charges, net and asset impairment charges. Corporate expenses are fully allocated to each operating segment. Corporate assets are not allocated to the operating segments. Inter-segment revenues are recorded at cost plus a markup for administrative costs. 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.

The business components within each operating segment are managed to maximize the results of the overall operating segment rather than the results of any individual business component of the operating segment. Results of individual components of each operating segment are subject to numerous allocations of segment-wide costs that may or may not have been focused on that particular component for a particular reporting period. The costs for these allocated resources are not tracked on a “where-used” basis as financial performance is assessed at the total operating segment level.

The net revenue, inter-segment sales, segment operating income, depreciation and amortization, total assets and capital expenditures of the industrial adhesives business, acquired in the second quarter of 2012, was recorded in our Americas Adhesives, EIMEAand Asia Pacific operating segments.

Reportable operating segment financial information for all periods presented follows. Prior periods have been restatedto reflect our new operating segments:

			2013		2012		2011
Net revenue
	Americas Adhesives	$	902,573	$	838,615	$	637,043
	Construction Products		158,576		147,080		134,591
	EIMEA		733,211		672,423		473,763
	Asia Pacific		252,608		228,121		198,688
	Total	$	2,046,968	$	1,886,239	$	1,444,085
Inter-segment sales
	Americas Adhesives	$	22,120	$	26,096	$	34,224
	Construction Products		800		462		686
	EIMEA		13,918		9,228		10,031
	Asia Pacific		13,034		14,818		9,334
Segment operating income
	Americas Adhesives	$	123,265	$	112,368	$	81,510
	Construction Products		10,940		8,334		2,992
	EIMEA		51,526		34,483		24,590
	Asia Pacific		9,771		7,356		7,869
	Total	$	195,502	$	162,541	$	116,961
Depreciation and amortization
	Americas Adhesives	$	20,832	$	18,852	$	12,222
	Construction Products		11,021		11,001		11,000
	EIMEA		20,420		18,399		10,748
	Asia Pacific		6,522		6,238		5,080
	Total	$	58,795	$	54,490	$	39,050
Total assets1
	Americas Adhesives	$	471,520	$	465,253	$	280,692
	Construction Products		175,489		179,508		180,861
	EIMEA		759,757		674,665		344,935
	Asia Pacific		218,471		197,999		150,949
	Corporate		245,926		267,030		200,929
	Discontinued Operations		1,865		1,865		69,343
	Total	$	1,873,028	$	1,786,320	$	1,227,709
Capital expenditures
	Americas Adhesives	$	26,225	$	15,036	$	5,052
	Construction Products		1,737		1,762		3,823
	EIMEA		63,512		13,402		15,986
	Asia Pacific		10,150		3,511		3,411
	Corporate		22,664		2,202		4,562
	Total	$	124,288	$	35,913	$	32,834
1Segment assets include primarily inventory, accounts 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 segment operating income to income from continuing operations before income taxes and income from equity method investments
			2013		2012		2011
Segment operating income		$	195,502	$	162,541	$	116,961
Special charges, net			(45,087)		(52,467)		(7,499)
Asset impairment charges			-		(1,517)		(332)
Other income (expense), net			(3,751)		784		4,101
Interest expense			(19,120)		(19,793)		(10,811)
Income from continuing operations before income taxes and income from equity method investments		$	127,544	$	89,548	$	102,420
Financial information about geographic areas
		Net Revenue
			2013		2012		2011
	United States	$	855,053	$	802,362	$	613,250
	All other countries with less than 10 percent of total		1,191,915		1,083,877		830,835
	Total	$	2,046,968	$	1,886,239	$	1,444,085
		Property, Plant and Equipment, net
			2013		2012		2011
	United States	$	185,260	$	158,973	$	121,333
	Germany		86,335		42,434		33,278
	All other countries with less than 10 percent of total		162,792		127,609		87,976
	Total	$	434,387	$	329,016	$	242,587