OPERATING SEGMENTS

12 Months Ended

Oct. 30, 2016

Segment Reporting [Abstract]

OPERATING SEGMENTS

OPERATING SEGMENTS

Operating segments are defined as components of an enterprise that engage in business activities and by which discrete financial information is available that is evaluated on a regular basis by the chief operating decision maker to make decisions about how to allocate resources to the segment and assess the performance of the segment. We have three operating segments: engineered building systems; metal components; and metal coil coating. All operating segments operate primarily in the nonresidential construction market. Sales and earnings are influenced by general economic conditions, the level of nonresidential construction activity, metal roof repair and retrofit demand and the availability and terms of financing available for construction. Products of our operating segments use similar basic raw materials. The metal coil coating segment consists of cleaning, treating, painting and slitting continuous steel coils before the steel is fabricated for use by construction and industrial users. The metal components segment products include metal roof and wall panels, doors, metal partitions, metal trim, insulated panels and other related accessories. CENTRIA is included in the metal components segment. The engineered building systems segment includes the manufacturing of main frames, Long Bay® Systems and value-added engineering and drafting, which are typically not part of metal components or metal coil coating products or services. The operating segments follow the same accounting policies used for our consolidated financial statements.

We evaluate a segment’s performance based primarily upon operating income before corporate expenses. Intersegment sales are recorded based on standard material costs plus a standard markup to cover labor and overhead and consist of (i) hot-rolled, light gauge painted and slit material and other services provided by the metal coil coating segment to both the metal components and engineered building systems segments; (ii) building components provided by the metal components segment to the engineered building systems segment; and (iii) structural framing provided by the engineered building systems segment to the metal components segment.

Corporate assets consist primarily of cash but also include deferred financing costs, deferred taxes and property, plant and equipment associated with our headquarters in Houston, Texas. These items (and income and expenses related to these items) are not allocated to the operating segments. Corporate unallocated expenses include share-based compensation expenses, and executive, legal, finance, tax, treasury, human resources, information technology, purchasing, marketing and corporate travel expenses. Additional unallocated amounts include interest income, interest expense, debt extinguishment costs and other (expense) income.

The following table represents summary financial data attributable to these operating segments for the periods indicated (in thousands):

	Fiscal Year Ended
	October 30, 2016			November 1, 2015			November 2, 2014
Total sales:
Engineered building systems	$	672,235		$	667,166		$	669,843
Metal components	1,044,040			920,845			694,858
Metal coil coating	247,736			231,732			246,582
Intersegment sales	(279,083		)	(256,050		)	(240,743		)
Total net sales	$	1,684,928		$	1,563,693		$	1,370,540
External sales:
Engineered building systems	$	652,471		$	647,881		$	649,344
Metal components	925,863			815,310			607,594
Metal coil coating	106,594			100,502			113,602
Total net sales	$	1,684,928		$	1,563,693		$	1,370,540
Operating income:
Engineered building systems	$	62,046		$	51,410		$	32,525
Metal components	102,495			50,541			33,306
Metal coil coating	25,289			19,080			23,982
Corporate	(81,051		)	(64,200		)	(64,717		)
Total operating income	$	108,779		$	56,831		$	25,096
Unallocated other expense	(29,815		)	(30,041		)	(12,421		)
Income before income taxes	$	78,964		$	26,790		$	12,675
Depreciation and amortization:
Engineered building systems	$	9,767		$	10,224		$	10,896
Metal components	26,416			35,713			19,643
Metal coil coating	4,674			4,401			4,031
Corporate	1,067			1,054			2,382
Total depreciation and amortization expense	$	41,924		$	51,392		$	36,952

	Fiscal Year Ended
	October 30, 2016		November 1, 2015		November 2, 2014
Capital expenditures:
Engineered building systems	$	7,571	$	6,053	$	2,569
Metal components	9,133		9,145		8,646
Metal coil coating	1,805		3,279		3,935
Corporate	2,515		2,206		2,870
Total capital expenditures	$	21,024	$	20,683	$	18,020
Property, plant and equipment, net:
Engineered building systems	$	50,862	$	51,196	$	43,876
Metal components	141,282		152,346		132,086
Metal coil coating	39,678		42,558		43,690
Corporate	10,390		11,792		25,062
Total property, plant and equipment, net	$	242,212	$	257,892	$	244,714
Total assets:
Engineered building systems	$	229,422	$	218,646	$	209,281
Metal components	654,534		654,762		365,874
Metal coil coating	87,194		81,456		84,519
Corporate	87,146		124,865		99,009
	$	1,058,296	$	1,079,729	$	758,683

The following table represents summary financial data attributable to various geographic regions for the periods indicated (in thousands):

	Fiscal Year Ended
	October 30, 2016		November 1, 2015		November 2, 2014
Total sales:
United States of America	$	1,589,479	$	1,469,495	$	1,258,055
Canada	61,781		72,567		92,238
China	6,733		2,734		—
Mexico	4,060		5,686		4,417
All other	22,875		13,211		15,830
Total net sales	$	1,684,928	$	1,563,693	$	1,370,540
Long-lived assets:
United States of America	$	523,134	$	562,443	$	358,634
Canada	9,247		90		134
China	170		309		—
Mexico	10,701		9,471		6,095
Total long-lived assets	$	543,252	$	572,313	$	364,863

Sales are determined based on customers’ requested shipment location.