Note 15 - Segments

6 Months Ended

May 31, 2025

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 implementing a global Enterprise Resource Planning (“ERP”) system that we refer to as Project ONE.  Corporate assets are not allocated to the operating segments. Inter-segment revenues are recorded at cost plus a markup for administrative costs.

As of November 30, 2024, our three operating segments consisted of Hygiene, Health and Consumable Adhesives, Engineering Adhesives and Construction Adhesives. As of the beginning of fiscal 2025, we reorganized our operating segments by selling our North American Flooring business (“NA Flooring”), previously part of the Construction Adhesives operating segment, and combining our Insulated Glass, Woodworking and Composite businesses, previously part of the Engineering Adhesives operating segment, with Construction Adhesives Roofing and Building Envelope and Infrastructure businesses to form the newly named Building Adhesive Solutions operating segment. All financial results related to NA Flooring have been moved to our Corporate Unallocated segment. Prior period segment information has been recast retrospectively to reflect the realignment. 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. 

The table below provides certain information regarding net revenue and operating income (loss) for each of our operating segments. 

	Three Months Ended
	May 31, 2025					June 1, 2024
	Net		Operating			Net		Operating
	Revenue		Income (Loss)			Revenue		Income (Loss)
Hygiene, Health and Consumable Adhesives	$	397,475	$	43,401		$	393,313	$	49,840
Engineering Adhesives		276,418		46,977			257,613		38,987
Building Adhesive Solutions		224,202		22,114			222,484		21,987
Total segment	$	898,095	$	112,492		$	873,410	$	110,814
Corporate Unallocated		-		(12,448	)		43,697		(10,218	)
Total	$	898,095	$	100,044		$	917,107	$	100,596

	Six Months Ended
	May 31, 2025					June 1, 2024
	Net		Operating			Net		Operating
	Revenue		Income (Loss)			Revenue		Income (Loss)
Hygiene, Health and Consumable Adhesives	$	765,700	$	73,349		$	761,391	$	97,233
Engineering Adhesives		513,177		75,028			483,688		64,807
Building Adhesive Solutions		407,881		28,691			402,150		29,126
Total segment	$	1,686,758	$	177,068		$	1,647,229	$	191,166
Corporate Unallocated		-		(30,577	)		80,296		(23,695	)
Total	$	1,686,758	$	146,491		$	1,727,525	$	167,471

The table below provides a reconciliation of operating income to income before income taxes and income from equity method investments:

	Three Months Ended						Six Months Ended
	May 31,			June 1,			May 31,			June 1,
	2025			2024			2025			2024
Operating income	$	100,044		$	100,596		$	146,491		$	167,471
Other income, net		7,141			3,634			10,347			5,135
Interest expense		(34,865	)		(32,314	)		(66,906	)		(64,216	)
Interest income		854			1,199			1,954			2,506
Income before income taxes and income from equity method investments	$	73,174		$	73,115		$	91,886		$	110,896

The table below provides total assets as of November 30, 2024, restated for our new operating segments:

	November 30,
	2024
Hygiene, Health and Consumable Adhesives	$	1,610,902
Engineering Adhesives		1,533,675
Building Adhesive Solutions		1,239,527
Corporate		549,140
Total	$	4,933,244

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:

	Three Months Ended May 31, 2025
	Hygiene, Health				Building
	and Consumable		Engineering		Adhesive		Corporate
	Adhesives		Adhesives		Solutions		Unallocated		Total
Americas	$	228,018	$	119,161	$	126,461	$	-	$	473,640
EIMEA		118,238		61,553		82,073		-		261,864
Asia Pacific		51,219		95,704		15,668		-		162,591
Total	$	397,475	$	276,418	$	224,202	$	-	$	898,095

	Three Months Ended June 1, 2024
	Hygiene, Health				Building
	and Consumable		Engineering		Adhesive		Corporate
	Adhesives		Adhesives		Solutions		Unallocated		Total
Americas	$	227,671	$	106,570	$	119,975	$	43,697	$	497,913
EIMEA		112,314		60,354		86,357		-		259,025
Asia Pacific		53,328		90,689		16,152		-		160,169
Total	$	393,313	$	257,613	$	222,484	$	43,697	$	917,107

	Six Months Ended May 31, 2025
	Hygiene, Health				Building
	and Consumable		Engineering		Adhesive		Corporate
	Adhesives		Adhesives		Solutions		Unallocated		Total
Americas	$	435,372	$	216,370	$	222,161	$	-	$	873,903
EIMEA		229,005		111,816		157,236		-		498,057
Asia Pacific		101,323		184,991		28,484		-		314,798
Total	$	765,700	$	513,177	$	407,881	$	-	$	1,686,758

	Six Months Ended June 1, 2024
	Hygiene, Health				Building
	and Consumable		Engineering		Adhesive		Corporate
	Adhesives		Adhesives		Solutions		Unallocated		Total
Americas	$	445,057	$	194,646	$	209,215	$	80,296	$	929,214
EIMEA		215,567		114,887		162,937		-		493,391
Asia Pacific		100,767		174,155		29,998		-		304,920
Total	$	761,391	$	483,688	$	402,150	$	80,296	$	1,727,525