Note 11 - Operating Segments

9 Months Ended

Aug. 27, 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, 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
	August 27, 2016						August 29, 2015
	Trade Revenue		Inter- Segment Revenue		Segment Operating Income		Trade Revenue		Inter- Segment Revenue		Segment Operating Income
Americas Adhesives	$	198,957	$	4,096	$	31,900	$	206,623	$	4,725	$	33,617
EIMEA		130,619		4,056		8,430		133,512		4,513		5,325
Asia Pacific		57,488		1,540		2,510		54,645		1,137		2,749
Construction Products		64,402		185		2,093		72,404		119		3,421
Engineering Adhesives		61,392		-		3,496		56,949		-		3,431
Total	$	512,858			$	48,429	$	524,133			$	48,543

	Nine Months Ended
	August 27, 2016						August 29, 2015
	Trade Revenue		Inter- Segment Revenue		Segment Operating Income		Trade Revenue		Inter- Segment Revenue		Segment Operating Income
Americas Adhesives	$	588,422	$	11,821	$	94,043	$	618,172	$	16,428	$	91,021
EIMEA		394,807		13,821		25,620		405,044		12,174		8,303
Asia Pacific		171,467		3,801		9,299		167,541		8,570		8,838
Construction Products		192,111		340		5,412		206,690		541		10,790
Engineering Adhesives		172,891		-		6,465		138,109		-		(681	)
Total	$	1,519,698			$	140,839	$	1,535,556			$	118,271

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

	Three Months Ended						Nine Months Ended
	August 27, 2016			August 29, 2015			August 27, 2016			August 29, 2015
Segment operating income	$	48,429		$	48,543		$	140,839		$	118,271
Special charges, net		2,807			(1,297	)		2,024			(4,592	)
Other income (expense), net		(956	)		(1,040	)		(7,603	)		(1,246	)
Interest expense		(6,809	)		(6,448	)		(19,714	)		(18,765	)
Income before income taxes and income from equity method investments	$	43,471		$	39,758		$	115,546		$	93,668