Segment Information

9 Months Ended

May 31, 2012

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

The Company considers its operating structure and the types of information subject to regular review by its President and Chief Executive Officer, who is the Chief Operating Decision Maker (“CODM”), to identify reportable segments. The CODM makes decisions, assesses performance and allocates resources by the following regions, which are also the Company’s reportable segments: EMEA, the Americas, and Asia Pacific (“APAC”). Each reportable segment has a General Manager/Chief Operating Officer who reports to the CODM.

The CODM uses net sales to unaffiliated customers, gross profit and operating income before certain items in order to make decisions, assess performance and allocate resources to each segment. Segment operating income does not include items such as interest income or expense, other income or expense, foreign currency transaction gains or losses, restructuring related expenses, asset write-downs, costs related to business acquisitions and inventory step-up charges related to business acquisitions. Corporate expenses include the compensation of certain personnel, certain audit expenses, board of directors related costs, certain insurance costs, costs associated with being a publicly traded entity and other miscellaneous legal and professional fees.

The following table summarizes net sales to unaffiliated customers by segment for the three and nine months endedMay 31, 2012 and 2011:

	Three months ended May 31,				Nine months ended May 31,
	2012		2011		2012		2011
	(In thousands)
EMEA	$	383,852	$	435,982	$	1,069,304	$	1,139,197
Americas	147,059		137,940		404,685		371,611
APAC	38,196		37,220		108,318		104,060
Total net sales to unaffiliated customers	$	569,107	$	611,142	$	1,582,307	$	1,614,868

Below the Company presents gross profit by segment for the three and nine months endedMay 31, 2012 and 2011:

	Three months ended May 31,					Nine months ended May 31,
	2012			2011		2012			2011
	(In thousands)
EMEA	$	49,612		$	54,742	$	133,926		$	150,314
Americas	21,273			19,363		60,796			51,749
APAC	5,784			4,783		16,589			12,721
Total segment gross profit	76,669			78,888		211,311			214,784
Inventory step-up	(80		)	—		(677		)	(283		)
Total gross profit	$	76,589		$	78,888	$	210,634		$	214,501

Below is a reconciliation of segment operating income to operating income and income before taxes for the three and nine months endedMay 31, 2012 and 2011:

	Three months ended May 31,						Nine months ended May 31,
	2012			2011			2012			2011
	(In thousands)
EMEA	$	23,413		$	25,726		$	57,953		$	66,850
Americas	7,869			4,892			19,323			12,091
APAC	2,913			1,698			7,976			3,890
Total segment operating income	34,195			32,316			85,252			82,831
Corporate and other	(6,195		)	(5,493		)	(18,567		)	(21,252		)
Costs related to acquisitions	(192		)	319			(1,066		)	(876		)
Restructuring related	(1,944		)	(1,843		)	(6,785		)	(5,779		)
Asset write-downs	(2,586		)	(125		)	(2,586		)	(1,925		)
Curtailment gain (loss)	101			—			310			—
Inventory step-up	(80		)	—			(677		)	(283		)
Operating income	23,299			25,174			55,881			52,716
Interest expense, net	(1,635		)	(1,602		)	(5,857		)	(4,138		)
Foreign currency transaction gains (losses)	(53		)	(60		)	(569		)	(1,398		)
Other income (expense), net	60			1,637			1,113			2,074
Income before taxes	$	21,671		$	25,149		$	50,568		$	49,254

Globally, the Company operates primarily in four product families: (1) masterbatch, (2) engineered plastics, (3) specialty powders and (4) distribution services. The amount and percentage of consolidated net sales for these product families for the three and nine months endedMay 31, 2012 and 2011 are as follows:

	Three months ended May 31,
	2012				2011
	(In thousands)
Masterbatch	$	242,046	43	%	$	243,556	40	%
Engineered plastics	141,214		25		154,175		25
Specialty powders	92,405		16		102,927		17
Distribution services	93,442		16		110,484		18
	$	569,107	100	%	$	611,142	100	%
	Nine months ended May 31,
	2012				2011
	(In thousands)
Masterbatch	$	653,031	41	%	$	647,933	40	%
Engineered plastics	409,459		26		401,228		25
Specialty powders	256,982		16		279,289		17
Distribution services	262,835		17		286,418		18
	$	1,582,307	100	%	$	1,614,868	100	%