Operating Segments

6 Months Ended

May 31, 2014

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. 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.

Through the third quarter of 2013, our business was reported in five operating segments: North America Adhesives, EIMEA (Europe, India, Middle East and Africa), Latin America Adhesives, Asia Pacific and Construction Products. 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 a result of this assessment, we now have four reportable segments: Americas Adhesives, EIMEA, Asia Pacific and Construction Products. Prior periods have been restated to reflect our new operating segments.

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

	13 Weeks Ended
	May 31, 2014						June 1, 2013
				Inter-		Segment				Inter-		Segment
		Trade	Segment			Operating		Trade	Segment			Operating
		Revenue	Revenue			Income		Revenue	Revenue			Income
Americas Adhesives	$	236,985	$	5,774	$	31,889	$	228,773	$	5,198	$	31,825
EIMEA		189,656		4,427		10,156		185,194		2,793		14,145
Asia Pacific		67,948		3,107		1,758		62,115		3,788		2,793
Construction Products		49,445		691		2,480		42,934		134		4,047
Total	$	544,034			$	46,283	$	519,016			$	52,810
	26 Weeks Ended
	May 31, 2014						June 1, 2013
				Inter-		Segment				Inter-		Segment
		Trade	Segment			Operating		Trade	Segment			Operating
		Revenue	Revenue			Income		Revenue	Revenue			Income
Americas Adhesives	$	446,651	$	11,453	$	57,095	$	436,504	$	10,076	$	57,750
EIMEA		361,215		8,533		18,596		362,695		5,469		20,618
Asia Pacific		132,995		6,579		3,546		122,694		7,279		4,767
Construction Products		89,154		963		3,292		76,965		215		5,411
Total	$	1,030,015			$	82,529	$	998,858			$	88,546

		13 Weeks Ended				26 Weeks Ended
		May 31,		June 1,		May 31,		June 1,
		2014		2013		2014		2013
Segment operating income	$	46,283	$	52,810	$	82,529	$	88,546
Special charges, net		(13,538)		(10,843)		(25,272)		(16,176)
Other income (expense), net		(204)		(1,814)		(1,254)		(1,436)
Interest expense		(4,760)		(4,884)		(8,886)		(10,211)
Income before income taxes and income from equity method investments	$	27,781	$	35,269	$	47,117	$	60,723

Reconciliation of segment operating income to income before income taxes and income from equity method investments: