Note 11 - Operating Segments

6 Months Ended

May 28, 2016

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

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 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 fourth quarter of 2015, our business was reported in four operating segments: Americas Adhesives, Europe, India, Middle East and Africa (EIMEA), Asia Pacific and Construction Products. Changes in our management reporting structure during the first quarter of 2016 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 five reportable segments: Americas Adhesives, EIMEA, Asia Pacific, Construction Products and Engineering Adhesives. Prior period segment information has been recast retrospectively to reflect our new operating segments.

The table below provides certain information regarding net revenue and segment operating income for each of our operating segments:

	Three Months Ended
	May 28, 2016						May 30, 2015
	Trade Revenue		Inter- Segment Revenue		Segment Operating Income		Trade Revenue		Inter- Segment Revenue		Segment Operating Income
Americas Adhesives	$	206,147	$	4,095	$	35,884	$	217,474	$	6,320	$	35,727
EIMEA		139,897		4,494		11,027		137,418		3,111		2,294
Asia Pacific		60,119		1,309		3,036		57,553		3,967		2,944
Construction Products		67,634		51		2,534		75,831		247		6,354
Engineering Adhesives		58,717		-		2,091		52,486		-		1,036
Total	$	532,514			$	54,572	$	540,762			$	48,355

	Six Months Ended
	May 28, 2016						May 30, 2015
	Trade Revenue		Inter- Segment Revenue		Segment Operating Income		Trade Revenue		Inter- Segment Revenue		Segment Operating Income
Americas Adhesives	$	389,466	$	7,725	$	62,143	$	411,547	$	11,703	$	57,404
EIMEA		264,188		9,765		17,190		271,533		7,661		2,979
Asia Pacific		113,979		2,261		6,789		112,896		7,433		6,089
Construction Products		127,708		155		3,319		134,287		423		7,368
Engineering Adhesives		111,499		-		2,969		81,160		-		(4,112	)
Total	$	1,006,840			$	92,410	$	1,011,423			$	69,728

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

	Three Months Ended						Six Months Ended
	May 28, 2016			May 30, 2015			May 28, 2016			May 30, 2015
Segment operating income	$	54,572		$	48,355		$	92,410		$	69,728
Special charges, net		(370	)		(934	)		(783	)		(3,295	)
Other income (expense), net		(1,565	)		(569	)		(6,647	)		(206	)
Interest expense		(6,597	)		(6,215	)		(12,905	)		(12,317	)
Income before income taxes and income from equity method investments	$	46,040		$	40,637		$	72,075		$	53,910