Note 17 - Operating Segments

9 Months Ended

Sep. 02, 2017

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note

17

: 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.

  For segment evaluation by the chief operating decision maker, segment operating income is identified as gross profit less SG&A expenses.  Segment operating income excludes special charges, net.  Corporate expenses are fully allocated to each operating segment, except that, in the

third

quarter of

2017,

$4,751

of charges related to transaction costs for the Royal Adhesives acquisition were

not

allocated to the operating segments.  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 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.

The table below provide

s certain information regarding net revenue and segment operating income for each of our operating segments:

	Three Months Ended
	September 2, 2017							August 27, 2016
			Inter-		Segment					Inter-		Segment
	Trade		Segment		Operating			Trade		Segment		Operating
	Revenue		Revenue		Income (Loss)			Revenue		Revenue		Income
Americas Adhesives	$	230,881	$	3,998	$	26,664		$	198,957	$	4,096	$	31,900
EIMEA		137,408		5,347		9,900			130,619		4,056		8,430
Asia Pacific		62,972		1,882		2,822			57,488		1,540		2,510
Construction Products		59,080		-		955			64,402		185		2,093
Engineering Adhesives		72,528		-		4,591			61,392		-		3,496
Corporate		-		-		(4,751	)		-				-
Total	$	562,869			$	40,181		$	512,858			$	48,429

	Nine Months Ended
	September 2, 2017							August 27, 2016
			Inter-		Segment					Inter-		Segment
	Trade		Segment		Operating			Trade		Segment		Operating
	Revenue		Revenue		Income (Loss)			Revenue		Revenue		Income
Americas Adhesives	$	653,665	$	11,855	$	74,152		$	588,422	$	11,821	$	94,043
EIMEA		396,674		13,246		19,779			394,807		13,821		25,620
Asia Pacific		190,083		4,385		9,452			171,467		3,801		9,299
Construction Products		179,880		-		(1,581	)		192,111		340		5,412
Engineering Adhesives		207,541		-		12,479			172,891		-		6,465
Corporate		-		-		(4,751	)		-				-
Total	$	1,627,843			$	109,530		$	1,519,698			$	140,839

The table below provides a r

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

	Three Months Ended						Nine Months Ended
	September 2,			August 27,			September 2,			August 27,
	2017			2016			2017			2016
Segment operating income	$	40,181		$	48,429		$	109,530		$	140,839
Special charges, net		-			2,807			-			2,024
Other income (expense), net		150			(956	)		661			(7,603	)
Interest expense		(8,100	)		(6,809	)		(24,628	)		(19,714	)
Income before income taxes and income from equity method investments	$	32,231		$	43,471		$	85,563		$	115,546