Note 15 - Segments

12 Months Ended

Nov. 30, 2024

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:

	2024			2023			2022
Net revenue
Hygiene, Health and Consumable Adhesives	$	1,546,351		$	1,601,487		$	1,695,934
Engineering Adhesives		1,459,137			1,428,744			1,532,639
Construction Adhesives		563,248			480,703			520,610
Total	$	3,568,736		$	3,510,934		$	3,749,183
Segment operating income (loss)
Hygiene, Health and Consumable Adhesives	$	187,413		$	215,088		$	165,786
Engineering Adhesives		193,038			187,346			168,873
Construction Adhesives		25,304			5,961			22,989
Total segment		405,755			408,395			357,648
Corporate Unallocated1		(57,535	)		(53,258	)		(34,930	)
Total	$	348,220		$	355,137		$	322,718
Depreciation and amortization
Hygiene, Health and Consumable Adhesives	$	53,359		$	53,398		$	46,374
Engineering Adhesives		73,041			63,143			58,307
Construction Adhesives		44,173			41,915			41,713
Corporate Unallocated1		4,137			1,384			582
Total	$	174,710		$	159,840		$	146,976
Total assets2
Hygiene, Health and Consumable Adhesives	$	1,610,902		$	1,661,122
Engineering Adhesives		1,687,391			1,627,715
Construction Adhesives		1,085,811			990,296
Corporate		549,140			444,442
Total	$	4,933,244		$	4,723,575
Capital expenditures
Hygiene, Health and Consumable Adhesives	$	87,945		$	67,933
Engineering Adhesives		11,071			14,888
Construction Adhesives		6,482			4,540
Corporate		33,740			31,776
Total	$	139,238		$	119,137

¹ Consistent with our internal management reporting, Corporate Unallocated amounts in the tables above include net revenue and 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:

	2024			2023			2022
Segment operating income	$	348,220		$	355,137		$	322,718
Other (expense) income, net		(37,115	)		9,682			12,952
Interest expense		(133,124	)		(134,602	)		(91,521	)
Interest income		4,682			3,943			7,779
Income before income taxes and income from equity method investments	$	182,663		$	234,160		$	251,928

Financial information about geographic areas

	Net Revenue
	2024		2023		2022
United States	$	1,623,854	$	1,551,846	$	1,692,903
China		438,512		430,948		462,587
Germany		362,919		393,029		419,141
Countries with more than 10 percent of total		2,425,285		2,375,823		2,574,631
All other countries with less than 10 percent of total		1,143,451		1,135,111		1,174,552
Total	$	3,568,736	$	3,510,934	$	3,749,183

	Property, Plant and Equipment, net
	2024		2023		2022
United States	$	472,084	$	425,765	$	375,353
China		109,665		110,061		101,563
Germany		98,233		114,266		107,903
All other countries with less than 10 percent of total		201,945		174,563		148,848
Total	$	881,927	$	824,655	$	733,667

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 30, 2024
	Hygiene, Health and Consumable		Engineering		Construction		Corporate
	Adhesives		Adhesives		Adhesives		Unallocated		Total
Americas	$	882,614	$	617,171	$	413,984	$	-	$	1,913,769
EIMEA		455,751		451,174		117,553		-		1,024,478
Asia Pacific		207,986		390,792		31,711		-		630,489
	$	1,546,351	$	1,459,137	$	563,248	$	-	$	3,568,736

	December 2, 2023
	Hygiene, Health and Consumable		Engineering		Construction		Corporate
	Adhesives		Adhesives		Adhesives		Unallocated		Total
Americas	$	919,024	$	577,751	$	363,517	$	-	$	1,860,292
EIMEA		476,397		460,327		85,738		-		1,022,462
Asia Pacific		206,066		390,666		31,448		-		628,180
	$	1,601,487	$	1,428,744	$	480,703	$	-	$	3,510,934

	December 3, 2022
	Hygiene, Health and Consumable		Engineering		Construction		Corporate
	Adhesives		Adhesives		Adhesives		Unallocated		Total
Americas	$	1,003,179	$	630,484	$	411,951	$	-	$	2,045,614
EIMEA		471,299		478,573		78,773		-		1,028,645
Asia Pacific		221,456		423,582		29,886		-		674,924
	$	1,695,934	$	1,532,639	$	520,610	$	-	$	3,749,183