Note 17 - Operating Segments

9 Months Ended

Sep. 01, 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 fiscal 

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
	September 1, 2018							September 2, 2017
	Trade Revenue		Inter- Segment Revenue			Segment Operating Income		Trade Revenue		Inter- Segment Revenue		Segment Operating Income (Loss)
Americas Adhesives	$	282,490	$	4,595		$	34,816	$	230,881	$	3,998	$	25,434
EIMEA		182,020		5,255			8,758		137,408		5,347		8,873
Asia Pacific		65,944		1,435			3,694		62,972		1,882		2,793
Construction Adhesives		121,140		(3	)		12,767		59,080		-		(698	)
Engineering Adhesives		118,513		-			11,100		72,528		-		3,779
Total	$	770,107				$	71,135	$	562,869			$	40,181

	Nine Months Ended
	September 1, 2018							September 2, 2017
	Trade Revenue		Inter- Segment Revenue			Segment Operating Income		Trade Revenue		Inter- Segment Revenue		Segment Operating Income (Loss)
Americas Adhesives	$	821,813	$	15,491		$	84,934	$	653,665	$	11,855	$	72,921
EIMEA		554,031		14,702			30,636		396,674		13,246		18,753
Asia Pacific		206,944		5,032			11,056		190,083		4,385		9,423
Construction Adhesives		340,179		(4	)		25,705		179,880		-		(3,234	)
Engineering Adhesives		349,606		-			32,675		207,541		-		11,667
Total	$	2,272,573				$	185,006	$	1,627,843			$	109,530

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

	Three Months Ended						Nine Months Ended
	September 1,			September 2,			September 1,			September 2,
	2018			2017			2018			2017
Segment operating income	$	71,135		$	40,181		$	185,006		$	109,530
Other income (expense), net		(1,375	)		(602	)		3,508			(1,506	)
Interest expense		(24,924	)		(7,348	)		(74,651	)		(22,461	)
Income before income taxes and income from equity method investments	$	44,836		$	32,231		$	113,863		$	85,563