Note 4 - Supplemental Financial Statement Information

12 Months Ended

Dec. 01, 2018

Notes to Financial Statements

Additional Financial Information Disclosure [Text Block]

Note

4:

Supplemental Financial Statement Information

Statement of Income Information

Additional details of income statement amounts for

2018,

2017

and

2016

follow.

	2018			2017			2016
Foreign currency transaction losses, net	$	(4,450	)	$	(2,411	)	$	(9,510	)
Gain (loss) on disposal of fixed assets		2,177			22			(796	)
Other, net 1		3,457			(25,278	)		712
Total other income (expense), net	$	1,184		$	(27,667	)	$	(9,594	)
Research and development expenses (included in SG&A expenses)	$	35,534		$	30,072		$	28,614

¹

2017

includes a make whole premium of

$25,535

paid on the refinancing of our long-term debt. See Note

6

for further information.

Balance Sheet Information

Additional details of balance sheet amounts as of

December 1, 2018

and

December 2, 2017

follow.

Inventories	2018			2017
Raw materials	$	169,228		$	174,093
Finished goods		186,335			198,009
Total inventories	$	355,563		$	372,102
Other current assets
Other receivables	$	26,542		$	24,304
Prepaid income taxes		31,899			41,105
Prepaid taxes other than income taxes		16,718			20,852
Prepaid expenses		19,161			29,521
Assets held for sale		1,337			1,607
Total other current assets	$	95,657		$	117,389
Property, plant and equipment
Land	$	79,745		$	79,993
Buildings and improvements		369,072			364,048
Machinery and equipment		815,084			787,844
Construction in progress		39,689			56,402
Total, at cost		1,303,590			1,288,287
Accumulated depreciation		(667,041	)		(618,093	)
Net property, plant and equipment	$	636,549		$	670,194
Other assets
Investments and company owned life insurance	$	8,596		$	8,602
Equity method investments		51,454			48,962
Cost method investments		1,669			1,669
Long-term deferred income taxes		27,112			43,422
Prepaid pension costs		37,881			30,145
Prepaid postretirement other than pension		48,872			39,163
Other long-term receivables		46,755			18,577
Other long-term assets		15,329			16,444
Total other assets	$	237,668		$	206,984
Other accrued expenses
Taxes other than income taxes	$	16,592		$	18,753
Miscellaneous services		7,694			13,565
Customer rebates		10,082			10,114
Interest		5,996			6,766
Insurance		401			5,668
Product liability		1,249			961
Contingent consideration liability		3,610			-
Accrued expenses		30,164			28,398
Total other accrued expenses	$	75,788		$	84,225
Other liabilities
Asset retirement obligations	$	3,646		$	2,129
Long-term deferred income taxes		214,295			280,515
Long-term deferred compensation		5,974			5,424
Postretirement other than pension		2,603			2,992
Contingent consideration liability		-			496
Environmental liabilities		5,183			11,380
Other long-term liabilities		33,067			43,445
Total other liabilities	$	264,768		$	346,381

Additional details on the trade receivables allowance for doubtful accounts, credits related to pricing or quantities shipped and early payment discounts for

2018,

2017

 and

2016

 are as follows:

	2018			2017			2016
Balance at beginning of year	$	11,670		$	12,310		$	11,893
Charged to expenses and other adjustments		6,444			744			2,455
Write-offs		(2,187	)		(1,546	)		(1,758	)
Foreign currency translation effect		(1,911	)		162			(280	)
Balance at end of year	$	14,046		$	11,670		$	12,310

Statement of Comprehensive Income (Loss) Information

The following tables provides details of total comprehensive income (loss):

	December 1, 2018
	H.B. Fuller Stockholders									Non-controlling Interests
	Pretax			Tax			Net			Net
Net income attributable to H.B. Fuller and non-controlling interests		-			-		$	171,208		$	24
Other comprehensive income (loss)
Foreign currency translation adjustment¹	$	(71,222	)		-			(71,222	)		(16	)
Reclassification to earnings:
Defined benefit pension plans adjustment²		(3,671	)		701			(2,970	)		-
Interest rate swap³		25,819			(6,048	)		19,771			-
Other cash flow hedges³		(4,047	)		(2,688	)		(6,735	)		-
Other comprehensive income (loss)	$	(53,121	)	$	(8,035	)		(61,156	)		(16	)
Comprehensive income							$	110,052		$	8

	December 2, 2017
	H.B. Fuller Stockholders									Non-controlling Interests
	Pretax			Tax			Net			Net
Net income attributable to H.B. Fuller and non-controlling interests		-			-		$	59,418		$	48
Other comprehensive income (loss)
Foreign currency translation adjustment¹	$	29,297			-			29,297			(9	)
Reclassification to earnings:
Defined benefit pension plans adjustment²		51,282			(16,352	)		34,930			-
Interest rate swap³		3,060			(1,166	)		1,894			-
Other cash flow hedges³		(6,538	)		2,491			(4,047	)		-
Other comprehensive income (loss)	$	77,101		$	(15,027	)		62,074			(9	)
Comprehensive income							$	121,492		$	39

	December 3, 2016
	H.B. Fuller Stockholders									Non-controlling Interests
	Pretax			Tax			Net			Net
Net income attributable to H.B. Fuller and non-controlling interests		-			-		$	121,663		$	254
Other comprehensive income (loss)
Foreign currency translation adjustment¹	$	(33,827	)		-			(33,827	)		(28	)
Reclassification to earnings:
Defined benefit pension plans adjustment²		576			(2,277	)		(1,701	)		-
Interest rate swap³		63			(22	)		41			-
Other cash flow hedges³		68			(26	)		42			-
Other comprehensive income (loss)	$	(33,120	)	$	(2,325	)		(35,445	)		(28	)
Comprehensive income (loss)							$	86,218		$	226

1

Income taxes are

not

provided for foreign currency translation relating to indefinite investments in international subsidiaries. As discussed in Note

1,

the foreign currency translation adjustment for the year ended

December 2, 2017

includes the impact of the change in functional currency for our subsidiaries in Latin America.

2

Loss reclassified from accumulated other comprehensive income (loss) into earnings as part of net periodic cost related to pension and other postretirement benefit plans is reported in cost of sales and SG&A expenses.

3

Loss reclassified from accumulated other comprehensive income (loss) into earnings is reported in other income (expense), net.

Statement of Total Equity Information

Components of accumulated other comprehensive income (loss) are as follows:

	December 1, 2018
	Total			H.B. Fuller Stockholders			Non-controlling Interests
Foreign currency translation adjustment	$	(127,398	)	$	(127,307	)	$	(91	)
Interest rate swap, net of taxes of ($7,231)		21,693			21,693			-
Cash flow hedges, net of taxes of $588		(12,057	)		(12,057	)		-
Defined benefit pension plans adjustment, net of taxes of $75,083		(144,140	)		(144,140	)		-
Reclassification of AOCI tax effects		(18,341	)		(18,341	)		-
Total accumulated other comprehensive loss	$	(280,243	)	$	(280,152	)	$	(91	)

	December 2, 2017
	Total			H.B. Fuller Stockholders			Non-controlling Interests
Foreign currency translation adjustment	$	(56,159	)	$	(56,084	)	$	(75	)
Interest rate swap, net of taxes of ($1,183)		1,922			1,922			-
Cash flow hedges, net of taxes of $3,276		(5,322	)		(5,322	)		-
Defined benefit pension plans adjustment, net of taxes of $74,382		(141,171	)		(141,171	)		-
Total accumulated other comprehensive loss	$	(200,730	)		(200,655	)		(75	)

	December 3, 2016
	Total			H.B. Fuller Stockholders			Non-controlling Interests
Foreign currency translation adjustment	$	(85,447	)	$	(85,381	)	$	(66	)
Interest rate swap, net of taxes of ($17)		28			28			-
Cash flow hedges, net of taxes of $785		(1,275	)		(1,275	)		-
Defined benefit pension plans adjustment, net of taxes of $90,734		(176,101	)		(176,101	)		-
Total accumulated other comprehensive loss	$	(262,795	)	$	(262,729	)	$	(66	)