Segment Information

9 Months Ended

May 31, 2016

Segment Reporting [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 current reportable segments: Europe, Middle East and Africa (“EMEA”), United States & Canada (“USCAN”), Latin America (“LATAM”), Asia Pacific (“APAC”), and Engineered Composites ("EC").

The CODM uses net sales to unaffiliated customers, segment gross profit and segment operating income in order to make decisions, assess performance and allocate resources to each segment. Segment operating income does not include items such as restructuring and related costs including accelerated depreciation, asset impairments, or costs and inventory step-up charges related to business acquisitions and integration. 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:

	Three months ended May 31,				Nine months ended May 31,
	2016		2015		2016		2015
	(In thousands)
EMEA	$	322,368	$	326,255	$	940,794	$	1,012,592
USCAN	183,338		137,080		532,437		415,221
LATAM	43,377		44,821		126,738		132,135
APAC	46,880		52,702		137,635		158,258
EC	54,476		—		153,815		—
Total net sales to unaffiliated customers	$	650,439	$	560,858	$	1,891,419	$	1,718,206

Below the Company presents gross profit by segment:

	Three months ended May 31,						Nine months ended May 31,
	2016			2015			2016			2015
	(In thousands)
EMEA	$	49,852		$	51,695		$	136,489		$	145,908
USCAN	32,560			22,104			90,095			66,478
LATAM	9,055			9,324			27,226			22,075
APAC	8,080			7,771			24,153			22,403
EC	13,746			—			37,941			—
Total segment gross profit	113,293			90,894			315,904			256,864
Inventory step-up	—			—			—			(341		)
Accelerated depreciation and restructuring related costs	(2,930		)	(78		)	(7,311		)	(674		)
Costs related to acquisitions and integrations	(423		)	(59		)	(2,522		)	(174		)
Lucent costs (1)	(466		)	—			(1,844		)	—
Total gross profit	$	109,474		$	90,757		$	304,227		$	255,675

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

	Three months ended May 31,						Nine months ended May 31,
	2016			2015			2016			2015
	(In thousands)
EMEA	$	23,382		$	24,716		$	59,147		$	61,032
USCAN	15,576			7,982			38,166			25,299
LATAM	4,748			4,654			14,581			7,531
APAC	4,540			3,972			13,517			10,903
EC	5,031			—			10,583			—
Total segment operating income	53,277			41,324			135,994			104,765
Corporate	(7,489		)	(8,502		)	(23,661		)	(24,992		)
Costs related to acquisitions and integrations	(1,443		)	(3,590		)	(7,570		)	(7,972		)
Restructuring and related costs	(9,520		)	(5,937		)	(19,959		)	(15,303		)
Accelerated depreciation	(1,286		)	(29		)	(4,796		)	(327		)
Lucent costs (1)	(1,951		)	—			(6,268		)	—
Inventory step-up	—			—			—			(341		)
CEO transition costs	—			—			—			(6,167		)
Operating income	31,588			23,266			73,740			49,663
Interest expense	(13,557		)	(2,618		)	(40,965		)	(7,288		)
Bridge financing fees	—			(18,750		)	—			(18,750		)
Foreign currency transaction gains (losses)	(392		)	(857		)	(2,071		)	(3,097		)
Other income (expense), net	229			335			246			900
Gain on early extinguishment of debt	—			—			—			1,290
Income from continuing operations before taxes	$	17,868		$	1,376		$	30,950		$	22,718

⁽¹⁾ Refer to Note 15 for additional discussion on this matter. Lucent costs in costs of sales include additional product and manufacturing operational costs for reworking inventory.  Additional Lucent costs in selling, general and administrative expenses include legal and investigative costs and dedicated internal personnel costs that would have otherwise been focused on normal operations.

Globally, the Company operates in six product families: (1) custom performance colors, (2) engineered composites, (3) masterbatch solutions, (4) engineered plastics, (5) specialty powders and (6) distribution services. The three and nine months ended May 31, 2015 include a reclassification of revenue between product families to better reflect the way the businesses are managed. The consolidated net sales for these product families are as follows:

	Three months ended May 31,
	2016				2015
	(In thousands, except for %'s)
Custom Performance Colors	$	48,573	8	%	$	48,630	9	%
Engineered Composites	54,476		8		—		—
Masterbatch Solutions	184,157		29		184,409		33
Engineered Plastics	228,945		35		181,918		32
Specialty Powders	67,661		10		71,133		13
Distribution Services	66,627		10		74,768		13
Total consolidated net sales	$	650,439	100	%	$	560,858	100	%

	Nine months ended May 31,
	2016				2015
	(In thousands, except for %'s)
Custom Performance Colors	$	138,935	7	%	$	145,793	8	%
Engineered Composites	153,815		8		—		—
Masterbatch Solutions	530,670		28		558,231		33
Engineered Plastics	674,578		36		550,105		32
Specialty Powders	195,080		10		222,722		13
Distribution Services	198,341		11		241,355		14
Total consolidated net sales	$	1,891,419	100	%	$	1,718,206	100	%