Segment Information
6 Months Ended
Feb. 28, 2014
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, 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: Europe, Middle East and Africa (“EMEA”), the Americas, and Asia Pacific (“APAC”).
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 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.
The following table summarizes net sales to unaffiliated customers by segment:
 
Three months ended February 28,
 
Six months ended February 28,
 
2014
 
2013
 
2014
 
2013
 
(In thousands)
EMEA
$
383,024


$
342,198

 
$
775,486

 
$
693,686

Americas
157,099


144,205

 
303,626

 
293,779

APAC
48,385


29,037

 
94,793

 
60,060

Total net sales to unaffiliated customers
$
588,508

 
$
515,440

 
$
1,173,905

 
$
1,047,525

Below the Company presents gross profit by segment:
 
Three months ended February 28,
 
Six months ended February 28,
 
2014
 
2013
 
2014
 
2013
 
(In thousands)
EMEA
$
47,499

 
$
39,930

 
$
99,439

 
$
85,033

Americas
21,226

 
18,735

 
42,659

 
40,161

APAC
6,527

 
4,938

 
13,150

 
10,492

Total segment gross profit
75,252

 
63,603

 
155,248

 
135,686

Inventory step-up
(782
)
 

 
(1,199
)
 
(138
)
Accelerated depreciation and restructuring related
(171
)
 
(404
)
 
(642
)
 
(682
)
Total gross profit
$
74,299

 
$
63,199

 
$
153,407

 
$
134,866

Below is a reconciliation of segment operating income to operating income and income from continuing operations before taxes:
 
Three months ended February 28,
 
Six months ended February 28,
 
2014
 
2013
 
2014
 
2013
 
(In thousands)
EMEA
$
17,553

 
$
11,521

 
$
37,972

 
$
27,666

Americas
6,269

 
5,845

 
13,632

 
13,637

APAC
3,176

 
2,405

 
6,542

 
5,494

Total segment operating income
26,998

 
19,771

 
58,146

 
46,797

Corporate
(7,714
)
 
(7,512
)
 
(14,397
)
 
(13,459
)
Costs related to acquisitions
(1,851
)
 
(675
)
 
(2,487
)
 
(987
)
Restructuring and related costs
(2,792
)
 
(1,669
)
 
(6,164
)
 
(3,606
)
Accelerated depreciation

 
(404
)
 
(108
)
 
(682
)
Asset impairment
(104
)
 

 
(104
)
 
(498
)
Curtailment gain (loss)

 

 

 
(333
)
Inventory step-up
(782
)
 

 
(1,199
)
 
(138
)
Operating income
13,755

 
9,511

 
33,687

 
27,094

Interest expense, net
(2,407
)
 
(1,806
)
 
(4,536
)
 
(3,367
)
Foreign currency transaction gains (losses)
(1,466
)
 
40

 
(2,148
)
 
(539
)
Other income (expense), net
193

 
211

 
271

 
347

Income from continuing operations before taxes
$
10,075

 
$
7,956

 
$
27,274

 
$
23,535

 
Globally, the Company operates in five product families: (1) masterbatch solutions, (2) engineered plastics, (3) distribution services, (4) specialty powders and (5) custom performance colors. The consolidated net sales for these product families are as follows: 
 
Three months ended February 28,
 
2014

2013
 
(In thousands, except for %'s)
Masterbatch solutions
$
188,969

 
32
%
 
$
189,544

 
37
%
Engineered plastics
182,890


31


123,908


24

Distribution services
94,406

 
16

 
94,608

 
18

Specialty powders
79,863


14


69,741


14

Custom performance colors
42,380

 
7

 
37,639

 
7

Total consolidated net sales
$
588,508


100
%

$
515,440


100
%


 
Six months ended February 28,
 
2014
 
2013
 
(In thousands, except for %'s)
Masterbatch solutions
$
381,361

 
33
%
 
$
388,470

 
37
%
Engineered plastics
357,601

 
30

 
258,726

 
25

Distribution services
184,314

 
16

 
182,255

 
17

Specialty powders
166,810

 
14

 
143,564

 
14

Custom performance colors
83,819

 
7

 
74,510

 
7

Total consolidated net sales
$
1,173,905

 
100
%
 
$
1,047,525

 
100
%