Note 16 - Operating Segments

12 Months Ended

Nov. 30, 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. For segment evaluation by the chief operating decision maker, segment operating income is identified as gross profit less SG&A expenses. 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. Operating results of each of these segments are regularly reviewed by our chief operating decision maker to make decisions about resources to be allocated to the segments and assess their performance.

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. Prior period segment information has been recast retrospectively to reflect the realignment.

The business components within each operating segment are managed to maximize the results of the overall operating segment rather than the results of any individual business component of the operating segment. Results of individual components of each operating segment are subject to numerous allocations of segment-wide costs that may or may not have been focused on that particular component for a particular reporting period. The costs for these allocated resources are not tracked on a “where-used” basis as financial performance is assessed at the total operating segment level.

Reportable operating segment financial information for all periods presented is as follows:

	2019		2018		2017
Net revenue
Americas Adhesives	$	1,022,775	$	1,051,365	$	902,777
EIMEA		640,913		697,448		564,439
Asia Pacific		271,585		278,162		264,696
Construction Adhesives		394,912		452,046		260,466
Engineering Adhesives		566,815		561,981		313,665
Total	$	2,897,000	$	3,041,002	$	2,306,043
Inter-segment sales
Americas Adhesives	$	17,747	$	18,717	$	15,943
EIMEA		35,005		19,765		19,153
Asia Pacific		4,675		6,952		6,498
Segment operating income
Americas Adhesives	$	92,195	$	98,966	$	84,847
EIMEA		22,256		29,589		17,173
Asia Pacific		22,165		17,742		14,910
Construction Adhesives		11,971		30,418		(15,255	)
Engineering Adhesives		77,407		61,176		17,852
Total	$	225,994	$	237,891	$	119,527
Depreciation and amortization
Americas Adhesives	$	34,570	$	35,434	$	22,208
EIMEA		26,828		28,259		20,269
Asia Pacific		8,338		8,447		8,163
Construction Adhesives		36,339		37,699		19,044
Engineering Adhesives		35,131		35,286		17,631
Total	$	141,206	$	145,125	$	87,315
Total assets1
Americas Adhesives	$	927,024	$	1,003,926
EIMEA		692,225		724,633
Asia Pacific		236,653		272,923
Construction Adhesives		816,821		876,448
Engineering Adhesives		991,811		970,357
Corporate		321,200		328,027
Total	$	3,985,734	$	4,176,314
Capital expenditures
Americas Adhesives	$	25,967	$	28,983
EIMEA		13,110		16,407
Asia Pacific		5,506		5,005
Construction Adhesives		6,421		4,876
Engineering Adhesives		5,896		2,534
Corporate		6,654		10,458
Total	$	63,554	$	68,263

Segment assets include primarily inventory, accounts receivable, property, plant and equipment, goodwill, intangible assets and other miscellaneous assets. Corporate assets include primarily corporate property, plant and equipment, deferred tax assets, certain investments and other assets.

Reconciliation of segment operating income to income before income taxes and income from equity method investments:

	2019			2018			2017
Segment operating income	$	225,994		$	237,891		$	119,527
Other income (expense), net		37,943			18,055			(19,154	)
Interest expense		(103,287	)		(110,994	)		(43,701	)
Interest income		12,178			11,774			3,927
Income before income taxes and income from equity method investments	$	172,828		$	156,726		$	60,599

Financial information about geographic areas

	Net Revenue
	2019		2018		2017
United States	$	1,309,056	$	1,374,147	$	969,346
China		347,304		343,960		302,009
Countries with more than 10 percent of total		1,656,360		1,718,107		1,271,355
All other countries with less than 10 percent of total		1,240,640		1,322,895		1,034,688
Total	$	2,897,000	$	3,041,002	$	2,306,043

	Property, Plant and Equipment, net
	2019		2018		2017
United States	$	287,372	$	286,639	$	212,078
Germany		127,497		137,677		149,269
China		80,606		77,861		83,808
All other countries with less than 10 percent of total		134,338		134,372		225,039
Total	$	629,813	$	636,549	$	670,194