Note 15 - Segments

12 Months Ended

Nov. 28, 2020

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 15: 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.

As of November 30, 2019, we had five reportable segments: Americas Adhesives, EIMEA, Asia Pacific, Construction Adhesives and Engineering Adhesives. As of the beginning of fiscal 2020, we realigned our operating segment structure and now have three reportable segments: Hygiene, Health and Consumable Adhesives, Engineering Adhesives and Construction Adhesives. The change in operating segments is based on how we have organized the company to make operating decisions and assess business performance. 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:

	2020			2019			2018
Net revenue
Hygiene, Health and Consumable Adhesives	$	1,332,786		$	1,328,286		$	1,375,562
Engineering Adhesives		1,088,313			1,158,403			1,186,533
Construction Adhesives		369,170			396,580			454,149
Corporate Unallocated		-			13,731			24,758
Total	$	2,790,269		$	2,897,000		$	3,041,002
Segment operating income
Hygiene, Health and Consumable Adhesives	$	130,789		$	115,961		$	120,513
Engineering Adhesives		103,974			136,299			119,391
Construction Adhesives		11,148			16,657			39,111
Corporate Unallocated		(27,594	)		(42,923	)		(41,124	)
Total	$	218,317		$	225,994		$	237,891
Depreciation and amortization
Hygiene, Health and Consumable Adhesives	$	44,329		$	45,448		$	46,171
Engineering Adhesives		58,102			57,175			59,773
Construction Adhesives		35,811			35,851			35,625
Corporate Unallocated		575			2,732			3,557
Total	$	138,817		$	141,206		$	145,126
Total assets1
Hygiene, Health and Consumable Adhesives	$	1,268,236		$	1,253,864
Engineering Adhesives		1,515,302			1,610,748
Construction Adhesives		934,397			799,995
Corporate		318,769			321,127
Total	$	4,036,704		$	3,985,734
Capital expenditures
Hygiene, Health and Consumable Adhesives	$	57,416		$	44,583
Engineering Adhesives		18,212			5,896
Construction Adhesives		7,635			6,421
Corporate		12,580			6,654
Total	$	95,843		$	63,554

¹ 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:

	2020			2019			2018
Segment operating income	$	218,317		$	225,994		$	237,891
Other income, net		15,398			37,943			18,055
Interest expense		(86,776	)		(103,287	)		(110,994	)
Interest income		11,417			12,178			11,774
Income before income taxes and income from equity method investments	$	158,356		$	172,828		$	156,726

Financial information about geographic areas

	Net Revenue
	2020		2019		2018
United States	$	1,248,495	$	1,309,056	$	1,374,147
China		351,204		347,304		343,960
Germany		330,755		-		-
Countries with more than 10 percent of total		1,930,454		1,656,360		1,718,107
All other countries with less than 10 percent of total		859,815		1,240,640		1,322,895
Total	$	2,790,269	$	2,897,000	$	3,041,002

	Property, Plant and Equipment, net
	2020		2019		2018
United States	$	297,046	$	287,372	$	286,639
Germany		131,879		127,497		137,677
China		99,513		80,606		77,861
All other countries with less than 10 percent of total		142,306		134,338		134,372
Total	$	670,744	$	629,813	$	636,549

We view the following disaggregation of net revenue by geographic region as useful to understanding the composition of revenue recognized during the respective reporting periods:

	November 28, 2020
	Hygiene, Health
	and Consumable		Engineering		Construction		Corporate
	Adhesives		Adhesives		Adhesives		Unallocated		Total
Americas	$	736,681	$	430,866	$	325,622	$	-	$	1,493,169
EIMEA		388,271		347,417		20,506		-		756,194
Asia Pacific		207,834		310,030		23,042		-		540,906
	$	1,332,786	$	1,088,313	$	369,170	$	-	$	2,790,269

	November 30, 2019
	Hygiene, Health
	and Consumable		Engineering		Construction		Corporate
	Adhesives		Adhesives		Adhesives		Unallocated		Total
Americas	$	733,125	$	469,764	$	351,924	$	13,731	$	1,568,544
EIMEA		392,497		380,673		20,767		-		793,937
Asia Pacific		202,664		307,966		23,889		-		534,519
	$	1,328,286	$	1,158,403	$	396,580	$	13,731	$	2,897,000

	December 1, 2018
	Hygiene, Health
	and Consumable		Engineering		Construction		Corporate
	Adhesives		Adhesives		Adhesives		Unallocated		Total
Americas	$	744,096	$	476,322	$	403,765	$	24,758	$	1,648,941
EIMEA		424,521		416,906		24,630		-		866,057
Asia Pacific		206,945		293,305		25,754		-		526,004
	$	1,375,562	$	1,186,533	$	454,149	$	24,758	$	3,041,002