Note 17 - Operating Segments

6 Months Ended

Jun. 02, 2018

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. 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. Corporate expenses are fully allocated to each operating segment. Corporate assets are

not

allocated to the operating segments.  Inter-segment revenues are recorded at cost plus a markup for administrative costs. 

As of

December 2, 2017,

we had

six

reportable segments: Americas Adhesives, EIMEA (Europe, India, Middle East and Africa), Asia Pacific, Construction Adhesives, Engineering Adhesives and Royal Adhesives. As of the beginning of the

six

months ended

June 2, 2018,

we modified our operating segment structure by allocating the Royal Adhesives segment into each of the

five

other segments. We now have

five

reportable segments: Americas Adhesives, EIMEA, Asia Pacific, Construction Adhesives and Engineering Adhesives.

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

	Three Months Ended
	June 2, 2018						June 3, 2017
			Inter-		Segment				Inter-		Segment
	Trade		Segment		Operating		Trade		Segment		Operating
	Revenue		Revenue		Income		Revenue		Revenue		Income (Loss)
Americas Adhesives	$	277,992	$	5,791	$	32,607	$	229,622	$	4,048	$	26,455
EIMEA		193,427		5,387		14,040		135,226		4,452		8,083
Asia Pacific		74,326		2,541		5,040		64,466		1,416		4,751
Construction Adhesives		121,795		-		11,673		63,754		-		(1,853	)
Engineering Adhesives		121,847		-		13,826		68,583		-		5,832
Total	$	789,387			$	77,186	$	561,651			$	43,268

	Six Months Ended
	June 2, 2018							June 3, 2017
			Inter-			Segment				Inter-		Segment
	Trade		Segment			Operating		Trade		Segment		Operating
	Revenue		Revenue			Income		Revenue		Revenue		Income
Americas Adhesives	$	539,323	$	10,896		$	50,118	$	422,784	$	7,857	$	47,488
EIMEA		372,010		9,447			21,878		259,265		7,899		9,880
Asia Pacific		141,000		3,598			7,362		127,112		2,503		6,630
Construction Adhesives		219,039		(1	)		12,938		120,800		-		(2,536	)
Engineering Adhesives		231,094		-			21,575		135,013		-		7,887
Total	$	1,502,466				$	113,871	$	1,064,974			$	69,349

The table below provides a reconciliation of segment operating income to income before income taxes and income from equity method investments:

	Three Months Ended						Six Months Ended
	June 2,			June 3,			June 2,			June 3,
	2018			2017			2018			2017
Segment operating income	$	77,186		$	43,268		$	113,871		$	69,349
Other income (expense), net		3,850			(929	)		4,883			(903	)
Interest expense		(25,223	)		(7,329	)		(49,727	)		(15,114	)
Income before income taxes and income from equity method investments	$	55,813		$	35,010		$	69,027		$	53,332