Note 11—Segment Data

In fiscal 2019 (prior year), due to the recent changes in our business structure, including several recent acquisitions and divestitures within the previously existing Industrial Materials segment, changes in senior management and the establishment of our Chief Executive Officer as our sole chief operating decision maker, the Company's management team has restructured its internal and external reporting process to more accurately reflect the manner in which the current business is being managed and operated. In the fourth quarter of fiscal 2019 (prior year), the Company reorganized into three reportable operating segments: an Adhesives, Sealants and Additives segment, an Industrial Tapes segment and a Corrosion Protection and Waterproofing segment. The segments are distinguished by the nature of the products manufactured and how they are delivered to their respective markets.

The Adhesives, Sealants and Additives segment (formerly included within the Industrial Materials segment) offers innovative and specialized product offerings consisting of both end-use products and intermediates that are used in, or integrated into, another company’s product. Demand for the segment’s product offerings is typically dependent upon general economic conditions. This segment leverages the core specialty chemical competencies of the Company, and serves diverse markets and applications. The segment sells predominantly into the transportation, appliances, medical, general industrial and environmental market verticals. The segment’s products include moisture protective coatings and customized sealant and adhesive systems for electronics, polymeric microspheres, polyurethane dispersions and superabsorbent polymers. Beginning December 31, 2017, the Adhesives, Sealants and Additives segment includes the acquired operations of Zappa Stewart within the Company’s specialty chemicals intermediates product line.

The Industrial Tapes segment (formerly included within the Industrial Materials segment) features legacy wire and cable materials, specialty tapes, and other laminated and coated products. The segment derives its competitive advantage through its proven chemistries, diverse specialty offerings and the reliability its supply chain offers to end customers. These products are generally used in the assembly of other manufacturers’ products, with demand typically dependent upon general economic conditions. This segment sells mostly to established markets, with some exposure to growth opportunities through further development of existing products. Markets served include cable manufacturing, utilities and telecommunications, and electronics packaging. The segment’s offerings include insulating and conducting materials for wire and cable manufacturers, laminated durable papers, laminates for the packaging and industrial laminate markets, custom manufacturing services, pulling and detection tapes used in the installation, measurement and location of fiber optic cable and water and natural gas lines, and cover tapes essential to delivering semiconductor components via tape and reel packaging.

The Corrosion Protection and Waterproofing segment (formerly known as the Construction Materials segment) is principally composed of project-oriented product offerings that are primarily sold and used as “Chase” branded products. End markets include new and existing infrastructure projects on oil, gas, water and wastewater pipelines, highways and bridge decks, water and wastewater containment systems, and commercial buildings. The segment’s products include protective coatings for pipeline applications, coating and lining systems for waterproofing and liquid storage applications, adhesives and sealants used in architectural and building envelope waterproofing applications, high-performance polymeric asphalt additives, and expansion joint systems for waterproofing applications in transportation and architectural markets. With sales generally dependent on outdoor project work, the segment experiences highly seasonal sales patterns.

The following tables summarize information about the Company’s segments:


	Years Ended August 31,
	2020			2019			2018
Revenue
Adhesives, Sealants and Additives	$	96,208		$	104,796		$	101,690
Industrial Tapes		118,960			129,845			130,598
Corrosion Protection and Waterproofing		45,994			46,710			51,900
Total	$	261,162		$	281,351		$	284,188

Income before income taxes
Adhesives, Sealants and Additives	$	25,953		$	27,142	(d)	$	35,190	(h)
Industrial Tapes		31,237	(a)		28,216	(e)		30,886	(i)
Corrosion Protection and Waterproofing		16,638	(b)		15,909	(f)		18,178
Total for reportable segments		73,828			71,267			84,254
Corporate and common costs		(28,508)	(c)		(27,714)	(g)		(27,289)	(j)
Total	$	45,320		$	43,553		$	56,965

Includes the following costs by segment:
Adhesives, Sealants and Additives
Interest	$	98		$	177		$	422
Depreciation		994			1,467			1,285
Amortization		9,313			9,359			7,895

Industrial Tapes
Interest	$	111		$	216		$	516
Depreciation		1,746			1,755			2,748
Amortization		1,800			1,800			2,604

Corrosion Protection and Waterproofing
Interest	$	37		$	126		$	234
Depreciation		615			674			753
Amortization		463			1,286			1,308

(a)

Includes $559 in exit costs related to the movement of the pulling and detection business out of the Granite Falls, NC location and into the Hickory, NC location during the first six months of fiscal 2020

(b)

Includes $170 gain on the refund of a payment made in fiscal 2019 related to engineering studies performed to assess potential operational changes and further plant rationalization and consolidation and an expense of $405 for the write-down of certain assets under construction.

(c)

Includes $150 of expense related to exploratory IT work performed to assess potential future upgrades to the Company’s companywide ERP system, a $760 gain related to the April 2020 sale of the Company’s Pawtucket, RI location, a $1,791 gain related to the August 2020 sale of the Company’s Randolph, MA property, $183 in severance expense related to the May 2020 reduction in force, $85 in expenses related to the final transition out of the Pawtucket, RI facility, $155 of pension-related settlement costs due to the timing of lump-sum distribution and $274 in acquisition-related costs attributable to the September 2020 (fiscal 2021) acquisition of ABchimie

(d)

Includes $2,410 of loss on impairment of goodwill related to the Company’s polyurethane dispersions business

(e)

Includes $260 of expense related to the closure and exit of our Pawtucket, RI location recognized in the first quarter of fiscal 2019, and $526 in exit costs related to the movement of the pulling and detection business out of the Granite Falls, NC location and into the Hickory, NC location during the second half of fiscal 2019

(f)

Includes $200 of expense related to engineering studies performed to assess potential future operational changes and further plant rationalization and consolidation, see note (b)

(g)

Includes $511 of pension-related settlement costs due to the timing of lump-sum distributions

(h)

Includes $1,070 of expense related to inventory step-up in fair value attributable to the acquisition of Zappa Stewart

(i)

Includes $1,085 gain on sale of license related to the structural composites product line recorded in the second quarter of fiscal 2018, $1,480 gain on sale of business related to the April 2018 sale of the structural composites rod business and $1,272 of expense related to the exit of our Pawtucket, RI location in the fourth quarter of fiscal 2018

(j)

Includes $393 in acquisition-related expense attributable to the December 2017 acquisition of Zappa Stewart


	August 31,		August 31,
	2020		2019
Total Assets
Adhesives, Sealants and Additives	$	129,457	$	135,583
Industrial Tapes		71,229		77,085
Corrosion Protection and Waterproofing		32,642		32,478
Total for reportable segments		233,328		245,146
Corporate and common assets		113,502		62,822
Total	$	346,830	$	307,968