OPERATING SEGMENTS

6 Months Ended

May 03, 2015

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

NOTE 16 — 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: metal coil coating; metal components; and engineered building systems. 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. Metl-Span 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 currently include the results of the CENTRIA Acquisition in the metal components segment. However, we are currently evaluating our management reporting presentation, which may result in changes to our operating segment presentation in future periods.

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 expenses include interest income, interest expense, strategic development and acquisition related costs and other (expense) income.

The following table represents sales, operating income and total assets attributable to these operating segments for the periods indicated (in thousands):

	Fiscal Three Months Ended				Fiscal Six Months Ended
	May 3,  2015		May 4,  2014		May 3,  2015		May 4,  2014
Total sales:
Metal coil coating	$	49,998	$	54,307	$	105,608	$	108,574
Metal components		221,118		155,085		393,907		313,278
Engineered building systems		143,245		149,411		293,045		301,648
Intersegment sales		(54,214)		(53,003)		(109,487)		(107,034)
Total sales	$	360,147	$	305,800	$	683,073	$	616,466
External sales:
Metal coil coating	$	22,804	$	25,508	$	47,208	$	50,098
Metal components		198,681		135,734		352,709		275,080
Engineered building systems		138,662		144,558		283,156		291,288
Total sales	$	360,147	$	305,800	$	683,073	$	616,466
Operating income (loss):
Metal coil coating	$	2,397	$	3,893	$	6,375	$	10,388
Metal components		6,941		4,559		15,277		8,670
Engineered building systems		2,855		36		11,574		1,676
Corporate		(15,810)		(14,001)		(32,272)		(29,415)
Total operating income (loss)	$	(3,617)	$	(5,513)	$	954	$	(8,681)
Unallocated other expense		(7,958)		(2,449)		(13,339)		(6,045)
Loss before income taxes	$	(11,575)	$	(7,962)	$	(12,385)	$	(14,726)

	May 3, 2015		November 2, 2014
Total assets:
Metal coil coating	$	81,405	$	84,519
Metal components		410,151		365,874
Engineered building systems		211,871		209,281
Corporate		310,297		99,009
Total assets	$	1,013,724	$	758,683