Note 15 - Segments

12 Months Ended

Nov. 27, 2021

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. Revenue and operating income of each of our 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. Segment operating income is identified as gross profit less SG&A expenses. Corporate expenses, other than those included in Corporate Unallocated, are allocated to each operating segment. Consistent with our internal management reporting, Corporate Unallocated amounts include business acquisition and integration costs, organizational restructuring charges and project costs associated with our implementation of Project ONE. Corporate assets are not allocated to the operating segments. Inter-segment revenues are recorded at cost plus a markup for administrative costs.

We have three reportable segments: Hygiene, Health and Consumable Adhesives, Engineering Adhesives and Construction Adhesives.  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:

	2021			2020			2019
Net revenue
Hygiene, Health and Consumable Adhesives	$	1,472,756		$	1,332,786		$	1,328,286
Engineering Adhesives		1,371,756			1,088,313			1,158,403
Construction Adhesives		433,519			369,170			396,580
Corporate Unallocated1		-			-			13,731
Total	$	3,278,031		$	2,790,269		$	2,897,000
Segment operating income
Hygiene, Health and Consumable Adhesives	$	138,366		$	130,789		$	115,961
Engineering Adhesives		135,913			103,974			136,299
Construction Adhesives		14,148			11,148			16,657
Total segment		288,427			245,911			268,917
Corporate Unallocated1		(35,815	)		(27,594	)		(42,923	)
Total	$	252,612		$	218,317		$	225,994
Depreciation and amortization
Hygiene, Health and Consumable Adhesives	$	45,919		$	44,329		$	45,448
Engineering Adhesives		61,082			58,102			57,175
Construction Adhesives		35,002			35,811			35,851
Corporate Unallocated1		1,171			575			2,732
Total	$	143,174		$	138,817		$	141,206
Total assets2
Hygiene, Health and Consumable Adhesives	$	1,370,924		$	1,268,236
Engineering Adhesives		1,710,000			1,515,302
Construction Adhesives		810,824			934,397
Corporate		382,782			318,769
Total	$	4,274,530		$	4,036,704
Capital expenditures
Hygiene, Health and Consumable Adhesives	$	60,164		$	57,416
Engineering Adhesives		8,815			18,212
Construction Adhesives		3,591			7,635
Corporate		23,519			12,580
Total	$	96,089		$	95,843

¹ Consistent with our internal management reporting, Corporate Unallocated amounts in the tables above include charges that are not allocated to the Company’s reportable segments.

² 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:

	2021			2020			2019
Segment operating income	$	252,612		$	218,317		$	225,994
Other income, net		32,855			15,398			37,943
Interest expense		(78,092	)		(86,776	)		(103,287	)
Interest income		9,476			11,417			12,178
Income before income taxes and income from equity method investments	$	216,851		$	158,356		$	172,828

Financial information about geographic areas

	Net Revenue
	2021		2020		2019
United States	$	1,421,623	$	1,248,495	$	1,309,056
China		433,998		351,204		347,304
Germany		409,193		330,755		-
Countries with more than 10 percent of total		2,264,814		1,930,454		1,656,360
All other countries with less than 10 percent of total		1,013,217		859,815		1,240,640
Total	$	3,278,031	$	2,790,269	$	2,897,000

	Property, Plant and Equipment, net
	2021		2020		2019
United States	$	331,864	$	297,046	$	287,372
Germany		120,548		131,879		127,497
China		96,300		99,513		80,606
All other countries with less than 10 percent of total		146,655		142,306		134,338
Total	$	695,367	$	670,744	$	629,813

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 27, 2021
	Hygiene, Health and		Engineering		Construction		Corporate
	Consumable Adhesives		Adhesives		Adhesives		Unallocated		Total
Americas	$	826,172	$	504,626	$	384,576	$	-	$	1,715,374
EIMEA		425,324		470,466		22,156		-		917,946
Asia Pacific		221,260		396,664		26,787		-		644,711
	$	1,472,756	$	1,371,756	$	433,519	$	-	$	3,278,031

	November 28, 2020
	Hygiene, Health and		Engineering		Construction		Corporate
	Consumable 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		Engineering		Construction		Corporate
	Consumable 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