Note 16 - Operating Segments

9 Months Ended

Aug. 31, 2019

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 16: 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 fiscal 2019, we realigned certain customers across operating segments. The table below provides certain information regarding net revenue and segment operating income for each of our operating segments. Prior period segment information has been recast retrospectively to reflect the realignment.

	Three Months Ended
	August 31, 2019						September 1, 2018
			Inter-		Segment				Inter-			Segment
	Trade		Segment		Operating		Trade		Segment			Operating
	Revenue		Revenue		Income		Revenue		Revenue			Income
Americas Adhesives	$	259,758	$	4,426	$	28,263	$	268,736	$	4,595		$	31,474
EIMEA		154,278		10,467		6,458		171,505		5,255			6,199
Asia Pacific		65,624		528		6,114		65,960		1,435			3,677
Construction Adhesives		107,920		2		7,380		123,977		(3	)		11,907
Engineering Adhesives		137,796		-		18,491		139,929		-			14,034
Total	$	725,376			$	66,706	$	770,107				$	67,291

	Nine Months Ended
	August 31, 2019						September 1, 2018
			Inter-		Segment				Inter-			Segment
	Trade		Segment		Operating		Trade		Segment			Operating
	Revenue		Revenue		Income		Revenue		Revenue			Income
Americas Adhesives	$	761,408	$	13,166	$	70,472	$	785,931	$	15,491		$	72,793
EIMEA		476,244		23,566		18,454		522,658		14,702			22,714
Asia Pacific		200,109		4,133		15,651		206,990		5,032			11,005
Construction Adhesives		301,619		-		11,148		345,125		(4	)		24,410
Engineering Adhesives		418,514		-		57,573		411,869		-			42,472
Total	$	2,157,894			$	173,298	$	2,272,573				$	173,394

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
	August 31,			September 1,			August 31,			September 1,
	2019			2018			2019			2018
Segment operating income	$	66,706		$	67,291		$	173,298		$	173,394
Other income, net		22,762			2,469			29,113			15,120
Interest expense		(25,607	)		(27,858	)		(79,354	)		(83,420	)
Interest income		3,115			2,934			9,191			8,769
Income before income taxes and income from equity method investments	$	66,976		$	44,836		$	132,248		$	113,863