Operating Segments

9 Months Ended

Aug. 30, 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
	August 30, 2014						August 31, 2013
				Inter-		Segment				Inter-		Segment
		Trade	Segment			Operating		Trade	Segment			Operating
		Revenue	Revenue			Income		Revenue	Revenue			Income
Americas Adhesives	$	237,657	$	6,844	$	21,854	$	233,515	$	6,690	$	34,871
EIMEA		177,478		4,695		3,139		180,753		3,400		14,199
Asia Pacific		63,847		4,222		897		59,454		2,708		1,564
Construction Products		47,783		309		2,485		40,857		517		3,269
Total	$	526,765			$	28,375	$	514,579			$	53,903
	39 Weeks Ended
	August 30, 2014						August 31, 2013
				Inter-		Segment				Inter-		Segment
		Trade	Segment			Operating		Trade	Segment			Operating
		Revenue	Revenue			Income		Revenue	Revenue			Income
Americas Adhesives	$	684,308	$	18,297	$	78,949	$	670,019	$	16,766	$	92,621
EIMEA		538,693		13,228		21,735		543,448		8,869		34,817
Asia Pacific		196,842		10,800		4,443		182,148		9,987		6,331
Construction Products		136,937		1,272		5,777		117,822		732		8,680
Total	$	1,556,780			$	110,904	$	1,513,437			$	142,449

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 30,		August 31,		August 30,		August 31,
		2014		2013		2014		2013
Segment operating income	$	28,375	$	53,903	$	110,904	$	142,449
Special charges, net		(12,343)		(12,775)		(37,615)		(28,951)
Other income (expense), net		(289)		(1,046)		(1,543)		(2,482)
Interest expense		(5,292)		(4,579)		(14,178)		(14,790)
Income from continuing operations before income taxes and income from equity method investments	$	10,451	$	35,503	$	57,568	$	96,226