Segment Information

12 Months Ended

Aug. 31, 2013

SEGMENT INFORMATION [Abstract]

Segment Reporting Disclosure [Text Block]

SEGMENT INFORMATION

The Company considers its operating structure and the types of information subject to regular review by its President and Chief Executive Officer (“CEO”), 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 APAC.

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 including accelerated depreciation, asset impairments, or costs 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.

Below the Company presents net sales to unaffiliated customers by segment: 

	Year Ended August 31,
	2013		2012		2011
	(In thousands)
EMEA	$	1,405,882	$	1,403,151	$	1,533,993
Americas	600,824		558,910		516,814
APAC	126,696		119,211		108,246
Total net sales to unaffiliated customers	$	2,133,402	$	2,081,272	$	2,159,053

Below the Company presents gross profit by segment: 

	Year Ended August 31,
	2013			2012			2011
	(In thousands)
EMEA	$	175,297		$	171,768		$	197,171
Americas	81,315			84,282			71,698
APAC	22,345			19,969			18,230
Total segment gross profit	278,957			276,019			287,099
Inventory step-up	(138		)	(677		)	(607		)
Accelerated depreciation and restructuring related	(1,585		)	—			—
Total gross profit	$	277,234		$	275,342		$	286,492

Below is a reconciliation of segment operating income to operating income and income from continuing operations before taxes:

	Year Ended August 31,
	2013			2012			2011
	(In thousands)
EMEA	$	67,320		$	71,849		$	86,663
Americas	28,351			28,872			14,032
APAC	12,108			10,908			10,617
Total segment operating income	107,779			111,629			111,312
Corporate and other	(24,926		)	(23,786		)	(25,106		)
Costs related to acquisitions	(2,661		)	(1,425		)	(1,412		)
Restructuring related	(13,687		)	(9,256		)	(4,547		)
Accelerated depreciation	(1,058		)	—			—
Asset impairment	(1,873		)	(3,392		)	(8,150		)
Curtailment gain (loss)	(333		)	310			—
Inventory step-up	(138		)	(677		)	(607		)
Operating income	63,103			73,403			71,490
Interest expense, net	(7,162		)	(7,675		)	(5,598		)
Foreign currency transaction gains (losses)	(2,426		)	(243		)	(1,474		)
Other income (expense), net	217			1,342			1,721
Income from continuing operations before taxes	$	53,732		$	66,827		$	66,139

The following table summarizes identifiable assets by segment: 

	As of August 31,
	2013		2012		2011
	(In thousands)
EMEA	$	735,684	$	677,066	$	737,698
Americas	413,438		426,963		408,714
APAC	89,220		89,738		93,575
Total identifiable assets	$	1,238,342	$	1,193,767	$	1,239,987

The following tables summarize depreciation and amortization and capital expenditures by segment: 

	Year Ended August 31,
	2013		2012		2011
	(In thousands)
Depreciation and amortization expense:
EMEA	$	18,072	$	17,534	$	18,522
Americas	19,481		17,531		17,810
APAC	3,898		3,719		3,942
Total depreciation and amortization expense	$	41,451	$	38,784	$	40,274
Capital expenditures:
EMEA	$	9,157	$	11,383	$	12,541
Americas	15,038		17,725		12,328
APAC	2,373		4,895		1,490
Total capital expenditures	$	26,568	$	34,003	$	26,359

Below is a summary of net sales by point of origin and long-lived assets by location: 

	Year Ended August 31,
	2013		2012		2011
	(In thousands)
Net sales:
United States	$	383,964	$	358,376	$	337,423
Germany	536,833		571,876		617,266
France	221,521		196,103		204,878
Other international	991,084		954,917		999,486
Total net sales	$	2,133,402	$	2,081,272	$	2,159,053

	As of August 31,
	2013		2012		2011
	(In thousands)
Long lived assets:
United States	$	70,197	$	76,699	$	74,102
Germany	23,316		23,020		27,680
France	21,854		22,832		21,744
Other international	95,154		103,325		110,774
Total long lived assets	$	210,521	$	225,876	$	234,300

Globally, the Company operates primarily in five product families: (1) masterbatch solutions, (2) engineered plastics, (3) distribution services, (4) specialty powders and (5) custom performance colors. The amount and percentage of consolidated net sales for these product families are as follows: 

	2013				2012				2011
	(In thousands, except for %’s)
Masterbatch solutions	$	745,237	35	%	$	750,531	36	%	$	766,078	35	%
Engineered plastics	557,364		26		547,090		26		546,964		25
Distribution services	359,376		17		343,091		16		393,225		18
Specialty powders	311,699		15		314,965		16		338,458		17
Custom performance colors	159,726		7		125,595		6		114,328		5
Total consolidated net sales	$	2,133,402	100	%	$	2,081,272	100	%	$	2,159,053	100	%