Note 15 - Operating Segments

3 Months Ended

Mar. 02, 2019

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note

15:

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.

We have

five

reportable segments: Americas Adhesives, EIMEA, Asia Pacific, Construction Adhesives and Engineering Adhesives. As of the beginning of the

three

months ended

March 2, 2019,

we realigned certain customers across operating segments. The table below provides certain information regarding net revenue and segment operating income (loss) for each of our operating segments. Prior period segment information has been recast retrospectively to reflect the realignment.

	Three Months Ended
	March 2, 2019								March 3, 2018
			Inter-			Segment					Inter-		Segment
	Trade		Segment			Operating			Trade		Segment		Operating
	Revenue		Revenue			Income (Loss)			Revenue		Revenue		Income
Americas Adhesives	$	241,950	$	3,406		$	15,695		$	250,963	$	5,413	$	14,537
EIMEA		156,513		4,011			3,426			168,978		5,769		5,892
Asia Pacific		63,388		2,031			3,779			66,609		1,637		2,305
Construction Adhesives		82,456		(1	)		(3,339	)		98,257		-		461
Engineering Adhesives		128,628		(2	)		14,651			128,272		-		9,611
Total	$	672,935				$	34,212		$	713,079			$	32,806

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

	Three Months Ended
	March 2,			March 3,
	2019			2018
Segment operating income	$	34,212		$	32,806
Other income (expense), net		3,365			4,912
Interest expense		(26,807	)		(27,545	)
Interest income		3,053			3,041
Income before income taxes and income from equity method investments	$	13,823		$	13,214

The table below provides total assets of each of our operating segments as of

December 1, 2018:

Total assets	December 1, 2018
Americas Adhesives	$	1,003,926
EIMEA		724,633
Asia Pacific		272,923
Construction Adhesives		876,448
Engineering Adhesives		970,357
Corporate		328,027
Total	$	4,176,314