OPERATING SEGMENTS

3 Months Ended

Jan. 29, 2017

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. 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 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 primarily include interest income, interest expense and other (expense) income.

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

	Fiscal Three Months Ended
	January 29, 2017			January 31, 2016
Total sales:
Engineered building systems	$	151,263		$	148,975
Metal components	245,300			230,456
Metal coil coating	64,202			51,206
Intersegment sales	(69,062		)	(60,623		)
Total sales	$	391,703		$	370,014
External sales:
Engineered building systems	$	145,021		$	145,950
Metal components	218,959			202,901
Metal coil coating	27,723			21,163
Total sales	$	391,703		$	370,014
Operating income (loss):
Engineered building systems	$	6,503		$	12,462
Metal components	16,030			16,104
Metal coil coating	5,244			4,819
Corporate	(17,891		)	(18,126		)
Total operating income	$	9,886		$	15,259
Unallocated other expense, net	(6,572		)	(6,914		)
Income before income taxes	$	3,314		$	8,345

	January 29, 2017		October 30, 2016
Total assets:
Engineered building systems	$	223,341	$	229,422
Metal components	646,624		654,534
Metal coil coating	79,015		87,194
Corporate	30,430		79,050
Total assets	$	979,410	$	1,050,200