Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 01, 2019 | Jun. 21, 2019 | |
Document Information [Line Items] | ||
Entity Registrant Name | FULLER H B CO | |
Entity Central Index Key | 0000039368 | |
Trading Symbol | ful | |
Current Fiscal Year End Date | --11-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding (in shares) | 50,918,410 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 1, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Shell Company | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 01, 2019 | Jun. 02, 2018 | Jun. 01, 2019 | Jun. 02, 2018 | |
Net revenue | $ 759,583 | $ 789,387 | $ 1,432,518 | $ 1,502,466 |
Cost of sales | (541,124) | (569,201) | (1,034,134) | (1,096,767) |
Gross profit | 218,459 | 220,186 | 398,384 | 405,699 |
Selling, general and administrative expenses | (146,079) | (146,889) | (291,792) | (299,596) |
Other income, net | (2,986) | (7,739) | (6,351) | (12,651) |
Interest expense | (26,940) | (28,017) | (53,747) | (55,562) |
Interest income | 3,023 | 2,794 | 6,076 | 5,835 |
Income before income taxes and income from equity method investments | 51,449 | 55,813 | 65,272 | 69,027 |
Income taxes | (16,441) | (13,488) | (19,581) | 19,144 |
Income from equity method investments | 1,633 | 2,139 | 3,198 | 3,960 |
Net income including non-controlling interest | 36,641 | 44,464 | 48,889 | 92,131 |
Net (income) loss attributable to non-controlling interest | (13) | (4) | 2 | |
Net income attributable to H.B. Fuller | $ 36,641 | $ 44,451 | $ 48,885 | $ 92,133 |
Earnings per share attributable to H.B. Fuller common stockholders: | ||||
Basic (in dollars per share) | $ 0.72 | $ 0.88 | $ 0.96 | $ 1.82 |
Diluted (in dollars per share) | $ 0.70 | $ 0.86 | $ 0.94 | $ 1.78 |
Basic (in shares) | 50,902 | 50,551 | 50,827 | 50,511 |
Diluted (in shares) | 52,105 | 51,846 | 52,003 | 51,872 |
Dividends declared per common share (in dollars per share) | $ 0.16 | $ 0.155 | $ 0.315 | $ 0.305 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 01, 2019 | Jun. 02, 2018 | Jun. 01, 2019 | Jun. 02, 2018 | |
Net income including non-controlling interest | $ 36,641 | $ 44,464 | $ 48,889 | $ 92,131 |
Other comprehensive loss | ||||
Foreign currency translation | (39,317) | (40,757) | (21,618) | (19,302) |
Defined benefit pension plans adjustment, net of tax | 1,480 | 1,660 | 2,962 | 3,320 |
Interest rate swaps, net of tax | (17,078) | 4,584 | (28,522) | 20,536 |
Cash flow hedges, net of tax | 6,102 | (12) | 10,188 | (6,853) |
Other comprehensive loss | (48,813) | (34,525) | (36,990) | (2,299) |
Comprehensive (loss) income | (12,172) | 9,939 | 11,899 | 89,832 |
Less: Comprehensive (loss) income attributable to non-controlling interest | (4) | 8 | 6 | (20) |
Comprehensive (loss) income attributable to H.B. Fuller | $ (12,168) | $ 9,931 | $ 11,893 | $ 89,852 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Jun. 01, 2019 | Dec. 01, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 100,246 | $ 150,793 |
Trade receivables (net of allowances of $13,805 and $14,017, as of June 1, 2019 and December 1, 2018, respectively) | 499,406 | 495,008 |
Inventories | 382,612 | 348,461 |
Other current assets | 126,495 | 95,657 |
Total current assets | 1,108,759 | 1,089,919 |
Property, plant and equipment | 1,323,148 | 1,303,590 |
Accumulated depreciation | (695,810) | (667,041) |
Property, plant and equipment, net | 627,338 | 636,549 |
Goodwill | 1,301,292 | 1,305,171 |
Other intangibles, net | 876,505 | 908,151 |
Other assets | 235,970 | 236,524 |
Total assets | 4,149,864 | 4,176,314 |
Current liabilities: | ||
Notes payable | 18,507 | 14,770 |
Current maturities of long-term debt | 26,600 | 91,225 |
Trade payables | 299,935 | 273,378 |
Accrued compensation | 60,259 | 78,384 |
Income taxes payable | 36,837 | 12,578 |
Other accrued expenses | 75,438 | 75,788 |
Total current liabilities | 517,576 | 546,123 |
Long-term debt, excluding current maturities | 2,148,653 | 2,141,532 |
Accrued pension liabilities | 69,569 | 70,680 |
Other liabilities | 251,077 | 264,768 |
Total liabilities | 2,986,875 | 3,023,103 |
Commitments and contingencies (Note 14) | ||
H.B. Fuller stockholders' equity: | ||
Preferred stock (no shares outstanding) shares authorized – 10,045,900 | ||
Common stock, par value $1.00 per share, shares authorized – 160,000,000, shares outstanding – 50,917,236 and 50,732,796, as of June1, 2019 and December 1, 2018, respectively | 50,917 | 50,733 |
Additional paid-in capital | 109,825 | 95,940 |
Retained earnings | 1,318,984 | 1,286,289 |
Accumulated other comprehensive loss | (317,144) | (280,152) |
Total H.B. Fuller stockholders' equity | 1,162,582 | 1,152,810 |
Non-controlling interest | 407 | 401 |
Total equity | 1,162,989 | 1,153,211 |
Total liabilities, non-controlling interest and total equity | $ 4,149,864 | $ 4,176,314 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Jun. 01, 2019 | Dec. 01, 2018 |
Trade receivables, allowances | $ 13,805 | $ 14,017 |
Preferred stock, shares authorized (in shares) | 10,045,900 | 10,045,900 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Total Equity (Unaudited) - USD ($) $ in Thousands | Previous Accounting Guidance [Member]Common Stock [Member] | Previous Accounting Guidance [Member]Additional Paid-in Capital [Member] | Previous Accounting Guidance [Member]Retained Earnings [Member] | Previous Accounting Guidance [Member]AOCI Attributable to Parent [Member] | Previous Accounting Guidance [Member]Noncontrolling Interest [Member] | Previous Accounting Guidance [Member] | Adjustments for New Accounting Pronouncement [Member]Retained Earnings [Member] | Adjustments for New Accounting Pronouncement [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Noncontrolling Interest [Member] | Total |
Balance at Dec. 02, 2017 | $ 50,389 | $ 74,662 | $ 1,127,028 | $ (200,655) | $ 393 | $ 1,051,817 | ||||||||
Comprehensive income | 47,682 | 32,239 | (28) | 79,893 | ||||||||||
Dividends | (7,649) | (7,649) | ||||||||||||
Stock option exercises | 27 | 735 | 762 | |||||||||||
Share-based compensation plans other, net | 180 | 6,450 | 6,630 | |||||||||||
Repurchases of common stock | (63) | (3,205) | (3,268) | |||||||||||
Reclassification of AOCI tax effects | 18,341 | (18,341) | ||||||||||||
Balance at Mar. 03, 2018 | 50,533 | 78,642 | 1,185,402 | (186,757) | 365 | 1,128,185 | ||||||||
Balance at Dec. 02, 2017 | 50,389 | 74,662 | 1,127,028 | (200,655) | 393 | 1,051,817 | ||||||||
Comprehensive income | 89,832 | |||||||||||||
Balance at Jun. 02, 2018 | 50,579 | 86,267 | 1,222,016 | (221,277) | 373 | 1,137,958 | ||||||||
Balance at Mar. 03, 2018 | 50,533 | 78,642 | 1,185,402 | (186,757) | 365 | 1,128,185 | ||||||||
Comprehensive income | 44,451 | (34,520) | 8 | 9,939 | ||||||||||
Dividends | (7,837) | (7,837) | ||||||||||||
Stock option exercises | 53 | 1,572 | 1,625 | |||||||||||
Share-based compensation plans other, net | 19 | 7,288 | 7,307 | |||||||||||
Repurchases of common stock | (26) | (1,235) | (1,261) | |||||||||||
Balance at Jun. 02, 2018 | 50,579 | 86,267 | 1,222,016 | (221,277) | 373 | 1,137,958 | ||||||||
Balance at Dec. 01, 2018 | $ 50,733 | $ 95,940 | $ 1,285,246 | $ (280,152) | $ 401 | $ 1,152,168 | 50,733 | 95,940 | 1,286,289 | (280,152) | 401 | 1,153,211 | ||
Change in accounting principles at Dec. 01, 2018 | $ 1,043 | $ 1,043 | ||||||||||||
Comprehensive income | 12,244 | 11,817 | 10 | 24,071 | ||||||||||
Dividends | (7,962) | (7,962) | ||||||||||||
Stock option exercises | 41 | 1,025 | 1,066 | |||||||||||
Share-based compensation plans other, net | 168 | 6,233 | 6,401 | |||||||||||
Repurchases of common stock | (58) | (2,625) | (2,683) | |||||||||||
Balance at Mar. 02, 2019 | 50,884 | 100,573 | 1,290,571 | (268,335) | 411 | 1,174,104 | ||||||||
Balance at Dec. 01, 2018 | $ 50,733 | $ 95,940 | $ 1,285,246 | $ (280,152) | $ 401 | $ 1,152,168 | 50,733 | 95,940 | 1,286,289 | (280,152) | 401 | 1,153,211 | ||
Change in accounting principles at Dec. 01, 2018 | $ 1,043 | $ 1,043 | ||||||||||||
Comprehensive income | 11,899 | |||||||||||||
Balance at Jun. 01, 2019 | 50,917 | 109,825 | 1,318,984 | (317,144) | 407 | 1,162,989 | ||||||||
Balance at Mar. 02, 2019 | 50,884 | 100,573 | 1,290,571 | (268,335) | 411 | 1,174,104 | ||||||||
Comprehensive income | 36,641 | (48,809) | (4) | (12,172) | ||||||||||
Dividends | (8,228) | (8,228) | ||||||||||||
Stock option exercises | 25 | 746 | 771 | |||||||||||
Share-based compensation plans other, net | 11 | 8,627 | 8,638 | |||||||||||
Repurchases of common stock | (3) | (121) | (124) | |||||||||||
Balance at Jun. 01, 2019 | $ 50,917 | $ 109,825 | $ 1,318,984 | $ (317,144) | $ 407 | $ 1,162,989 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 01, 2019 | Jun. 02, 2018 | |
Cash flows from operating activities: | ||
Net income including non-controlling interest | $ 48,889 | $ 92,131 |
Adjustments to reconcile net income including non-controlling interest to net cash provided by operating activities: | ||
Depreciation | 33,568 | 34,159 |
Amortization | 38,190 | 38,519 |
Deferred income taxes | (21,871) | (48,434) |
Income from equity method investments, net of dividends received | (3,198) | (3,960) |
Loss (gain) on sale of assets | 377 | (3,172) |
Share-based compensation | 14,172 | 10,434 |
Loss on mark to market adjustment related to contingent consideration liability | (2,373) | |
Change in assets and liabilities, net of effects of acquisitions: | ||
Trade receivables, net | (23,692) | (12,479) |
Inventories | (22,798) | (53,574) |
Other assets | (21,396) | (49,199) |
Trade payables | 25,943 | 7,700 |
Accrued compensation | (17,778) | (17,990) |
Other accrued expenses | 12,734 | (16,129) |
Income taxes payable | (13,794) | (13,194) |
Accrued / prepaid pensions | (5,933) | (5,225) |
Other liabilities | 1,465 | (179) |
Other | 7,790 | 38,594 |
Net cash provided by operating activities | 77,326 | 22,375 |
Cash flows from investing activities: | ||
Purchased property, plant and equipment | (32,192) | (33,197) |
Purchased businesses, net of cash acquired | (7,914) | |
Purchased business remaining equity | (9,870) | |
Proceeds from sale of property, plant and equipment | 45 | 2,709 |
Cash received from government grant | 9,045 | |
Cash payments related to government grant | (1,120) | |
Net cash used in investing activities | (42,006) | (30,488) |
Cash flows from financing activities: | ||
Repayment of long-term debt | (70,000) | (25,750) |
Net payment of notes payable | 4,053 | (13,988) |
Dividends paid | (16,028) | (15,414) |
Contingent consideration payment | (3,610) | |
Proceeds from stock options exercised | 1,837 | 2,387 |
Repurchases of common stock | (2,807) | (4,529) |
Net cash used in financing activities | (86,555) | (57,294) |
Effect of exchange rate changes on cash and cash equivalents | 688 | 257 |
Net change in cash and cash equivalents | (50,547) | (65,150) |
Cash and cash equivalents at beginning of period | 150,793 | 194,398 |
Cash and cash equivalents at end of period | 100,246 | 129,248 |
Supplemental disclosure of cash flow information: | ||
Dividends paid with company stock | 162 | 72 |
Cash paid for interest, net of amount capitalized of $195 and $109 for the periods ended June 1, 2019 and June 2, 2018, respectively | 55,901 | 53,860 |
Cash paid for income taxes, net of refunds | $ 17,474 | $ 20,144 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) (Parentheticals) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 01, 2019 | Jun. 02, 2018 | |
Capitalized interest cost | $ 195 | $ 109 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 6 Months Ended |
Jun. 01, 2019 | |
Notes to Financial Statements | |
Business Description and Accounting Policies [Text Block] | Note 1 : Basis of Presentation Overview The accompanying unaudited interim Condensed Consolidated Financial Statements of H.B. Fuller Company and Subsidiaries have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and the instructions to Form 10 10 X. not not may The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures at the date of the financial statements and during the reporting period. Actual results could differ from these estimates. These unaudited interim Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in our Annual Report on Form 10 December 1, 2018 Change in Accounting Principl e – Accounting for Inventory During the year ended December 1, 2018, we elected to change our method of accounting for certain inventories in the United States within the Company’s Americas Adhesives and Construction Adhesives segments from the last-in, first -out method (“LIFO”) to weighted-average cost. We retrospectively adjusted the Consolidated Financial Statements for all periods presented to reflect this change. Change in Accounting Principle – Revenue Recognition In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014 - 09, Revenue from Contracts with Customers (Topic 606 ) , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. We adopted this ASU during the quarter ended March 2, 2019 using the modified retrospective method of adoption. As a result of the adoption of this ASU, we recorded an increase to opening retained earnings of $1,776 as of December 1, 2018 related to accelerated recognition for arrangements where we provide shipping and handling services after control of the goods has transferred to the customer. Prior periods were not restated. We have included the disclosures required by this ASU in Note 8. In March 2016, the FASB issued ASU No. 2016 - 08, Revenue from Contracts with Customers (Topic 606 ), Principal versus Agent Considerations (Reporting Revenue Gross versus Net) . This ASU provides guidance on recording revenue on a gross basis versus a net basis based on the determination of whether an entity is a principal or an agent when another party is involved in providing goods or services to a customer. The amendments in this ASU affect the guidance in ASU No. 2014 - 09 and were adopted during the quarter ended March 2, 2019 with ASU No. 2014 - 09 as discussed above. Change in Accounting Principle – Income Tax Impact of Intra-Entity Transfers of Assets Other Than Inventory In October 2016, the FASB issued ASU No. 2016 - 16, Income Taxes (Topic 740 ): Intra-Entity Transfers of Assets Other Than Inventory. This ASU changes the timing of income tax recognition for an intercompany sale of assets. The ASU requires the seller’s tax effects and the buyer’s deferred taxes to be recognized immediately upon the sale instead of deferring accounting for the income tax implications until the assets are sold to a third party or recovered through use. We adopted this ASU during the quarter ended March 2, 2019. We recorded a decrease to opening retained earnings of $733 as of December 1, 2018 as a result of the adoption of this ASU. Change in Accounting Principle – Net Periodic Defined Benefit Pension and Postretirement Benefit Costs In March 2017, the FASB issued ASU No. 2017 - 07, Compensation-Retirement Benefits (Topic 715 ): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which requires employers to include only the service cost component of net periodic pension cost and net periodic postretirement benefit cost in operating expenses. The other components of net benefit cost, including amortization of prior service cost/credit, and settlement and curtailment effects, are to be included in non-operating expenses. The classification requirements of this ASU are applied on a retrospective basis. The ASU also stipulates that only the service cost component of net benefit cost is eligible for capitalization on a prospective basis. We adopted this ASU during the quarter ended March 2, 2019. As a result of adoption, the components of our net periodic defined benefit pension and postretirement benefit costs other than service cost are now presented as non-operating expenses for all periods presented. Service cost remains in operating expenses. As a result of the retrospective adjustment for the change in accounting principle, certain amounts in our Condensed Consolidated Statement of Income for the three and six months ended June 2, 2018 were adjusted as follows: Three M onths Ended June 2, 2018 As Reported Impact of Adoption of ASU 2017-07 As Adjusted Cost of sales $ (567,002 ) $ (2,199 ) $ (569,201 ) Gross profit 222,385 (2,199 ) 220,186 Selling, general and administrative expenses (145,199 ) (1,690 ) (146,889 ) Other income, net 3,850 3,889 7,739 Net income including non-controlling interests 44,464 - 44,464 Net income attributable to H.B. Fuller 44,451 - 44,451 Basic $ 0.88 $ - $ 0.88 Diluted 0.86 - 0.86 Six M onths Ended June 2, 2018 As Reported Impact of Adoption of ASU 2017-07 As Adjusted Cost of sales $ (1,092,376 ) $ (4,391 ) $ (1,096,767 ) Gross profit 410,090 (4,391 ) 405,699 Selling, general and administrative expenses (296,219 ) (3,377 ) (299,596 ) Other income, net 4,883 7,768 12,651 Net income including non-controlling interests 92,131 - 92,131 Net income attributable to H.B. Fuller 92,133 - 92,133 Basic $ 1.82 $ - $ 1.82 Diluted 1.78 - 1.78 New Accounting Pronouncements In August 2018, the FASB issued ASU No. 2018 - 13, Fair Value Measurement (Topic 820 ): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. This ASU modifies the disclosure requirements on fair value measurements. The ASU removes the requirement to disclose: the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy; the policy for timing of transfers between levels; and the valuation processes for Level 3 fair value measurements. The ASU requires disclosure of changes in unrealized gains and losses for the period included in other comprehensive income (loss) for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. Our effective date for adoption of this ASU is our fiscal year beginning November 29, 2020 with early adoption permitted. We have evaluated the effect that this ASU will have on our Consolidated Financial Statements and related disclosures and determined it will not have a material impact. In July 2018, the FASB issued ASU No. 2018 - 11, Leases (Topic 842 ): Targeted Improvements. This ASU allows entities to not recast comparative periods in transition to ASC 842 and instead report the comparative periods presented in the period of adoption under ASC 840. The ASU also includes a practical expedient for lessors to not separate the lease and nonlease components of a contract. The amendments in this ASU are effective in the same timeframe as ASU No. 2016 - 02 as discussed below. We are incorporating this ASU into our assessment and adoption of ASU No. 2016 - 02. In July 2018, the FASB issued ASU No. 2018 - 10, Codification Improvements to Topic 842, Leases. This ASU includes certain clarifications to address potential narrow-scope implementation issues which we are incorporating into our assessment and adoption of ASU No. 2016 - 02. The amendments in this ASU are effective in the same timeframe as ASU No. 2016 - 02 as discussed below. In August 2016, the FASB issued ASU No. 2016 - 15, Statement of Cash Flows (Topic 230 ): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force). This ASU requires changes in the presentation of certain items including, but not limited to, debt prepayment or debt extinguishment costs; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies and distributions received from equity method investees. We adopted this ASU during the quarter ended March 2, 2019. Adoption of this ASU will result in a retrospective reclassification of debt prepayment and extinguishment costs of $16,598 within the Consolidated Statement of Cash Flows for the year ended December 2, 2017 from operating to financing cash outflows. In June 2016, the FASB issued ASU No. 2016 - 13 , Financial Instruments - Credit Losses (Topic 326 ), Measurement of Credit Losses on Financial Statements. This ASU requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. The FASB also issued ASU No. 2018 - 19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses in November 2018 and ASU No. 2019 - 04, Codification Improvements to Topic 326, Financial Instruments in April 2019 . ASU No. 2018 - 19 clarifies that receivables arising from operating leases are within the scope of Topic 842, Leases . ASU No. 2019 - 04 clarifies various scoping and other issues arising from ASU No. 2016 - 13. The amendments in this ASU affect the guidance in ASU No. 2016 - 13 and are effective in the same timeframe as ASU No. 2016 - 13. Our effective date for adoption of this ASU is our fiscal year beginning November 29, 2020. We are currently evaluating the effect that this ASU will have on our Consolidated Financial Statements. In February 2016, the FASB issued ASU No. 2016 - 02, Leases (Subtopic 842 ). This ASU changes accounting for leases and requires lessees to recognize the assets and liabilities arising from all leases, including those classified as operating leases under previous accounting guidance, on the balance sheet and requires disclosure of key information about leasing arrangements to increase transparency and comparability among organizations. In December 2018, the FASB also issued ASU No. 2018 - 20, Leases (Topic 842 ): Narrow-Scope Improvements for Lessors , which clarifies the accounting for lessors for variable payments that relate to both a lease component and a nonlease component and is effective in the same timeframe as ASU 2016 - 02, and ASU No. 2019 - 01, Leases (Topic 842 ): Codification Improvements , which clarifies the transition disclosure requirements. Our effective date for adoption of this ASU is our fiscal year beginning December 1, 2019 with early adoption permitted. The new ASU must be adopted using a modified retrospective transition approach, and provides for certain practical expedients. We have begun implementing lease accounting software and are currently evaluating the impact that the new ASU will have on our Consolidated Financial Statements. |
Note 2 - Acquisition and Divest
Note 2 - Acquisition and Divestiture | 6 Months Ended |
Jun. 01, 2019 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | Note 2: Ramapo Sales and Marketing, Inc. On May 17, 2019, $7,914 $3,400 twelve December 31, 2019. $2,166 $13,480. June 1, 2019, $507, $8,800, $4,173. Dalton Holdings, LLC In June 2019, third 2019. June 1, 2019: Current assets $ 3,976 Non-current assets 59,832 Current liabilities 1,804 Non-current liabilities 8,676 |
Note 3 - Restructuring Actions
Note 3 - Restructuring Actions | 6 Months Ended |
Jun. 01, 2019 | |
Notes to Financial Statements | |
Restructuring and Related Activities Disclosure [Text Block] | Note 3: The Company has approved restructuring plans consisting of consolidation plans, organizational changes and other actions related to the integration of the operations of Royal Adhesives with the operations of the Company, and other actions to optimize operations. The following table summarizes the pre-tax distribution of charges under these restructuring plans by income statement classification: Three Months Ended Six Months Ended June 1, 2019 June 2, 2018 June 1, 2019 June 2, 2018 Cost of sales $ 618 $ 956 $ 994 $ 1,188 Selling, general and administrative 666 368 1,743 1,965 $ 1,284 $ 1,324 $ 2,737 $ 3,153 The following table summarizes the pre-tax impact of restructuring charges by segment: Three Months Ended Six Months Ended June 1, 2019 June 2, 2018 June 1, 2019 June 2, 2018 Americas Adhesives $ 63 $ 53 $ 339 $ 856 EIMEA 265 567 845 525 Asia Pacific 4 - 47 3 Construction Adhesives 779 545 1,098 1,354 Engineering Adhesives 173 159 408 415 $ 1,284 $ 1,324 $ 2,737 $ 3,153 A summary of the restructuring liability is presented below: Employee-Related Asset-Related Other Total Balance at December 2, 2017 $ 1,486 $ - $ 20 $ 1,506 Expenses incurred $ 6,223 $ 2,353 $ 305 $ 8,881 Non-cash charges - (1,666 ) - (1,666 ) Cash payments (3,395 ) (687 ) (325 ) (4,407 ) Foreign currency translation (58 ) - - (58 ) Balance at December 1, 2018 $ 4,256 $ - $ - $ 4,256 Expenses incurred 1,337 874 526 2,737 Cash payments (1,373 ) (792 ) (526 ) (2,691 ) Foreign currency translation (47 ) - - (47 ) Balance at June 1, 2019 $ 4,173 $ 82 $ - $ 4,255 Restructuring liabilities have been classified as a component of other accrued expenses in the Condensed Consolidated Balance Sheets. |
Note 4 - Inventories
Note 4 - Inventories | 6 Months Ended |
Jun. 01, 2019 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | Note 4: The composition of inventories is as follows: June 1, December 1, 2019 2018 Raw materials $ 175,069 $ 169,228 Finished goods 207,543 179,233 Total inventories $ 382,612 $ 348,461 |
Note 5 - Goodwill and Other Int
Note 5 - Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 01, 2019 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | Note 5: Goodwill and Other Intangible Assets The goodwill activity for the six June 1, 2019 Americas Asia Construction Engineering Adhesives EIMEA Pacific Adhesives Adhesives Total Balance at December 1, 2018 $ 339,800 $ 155,552 $ 21,428 $ 310,720 $ 477,671 $ 1,305,171 Acquisition 507 - - - - 507 Currency impact (443 ) (2,715 ) (208 ) 75 (1,095 ) (4,386 ) Balance at June 1, 2019 $ 339,864 $ 152,837 $ 21,220 $ 310,795 $ 476,576 $ 1,301,292 As discussed in Note 16, 2019, Balances of amortizable identifiable intangible assets, excluding goodwill and other non-amortizable intangible assets, are as follows: June 1, 2019 Amortizable Intangible Assets Purchased Technology and Patents Customer Relationships Trade Names All Other Total Original cost $ 114,577 $ 959,237 $ 66,067 $ 27,460 $ 1,167,341 Accumulated amortization (43,749 ) (202,260 ) (23,547 ) (21,767 ) (291,323 ) Net identifiable intangibles $ 70,828 $ 756,977 $ 42,520 $ 5,693 $ 876,018 December 1, 2018 Amortizable Intangible Assets Purchased Technology and Patents Customer Relationships Trade Names All Other Total Original cost $ 118,930 $ 953,929 $ 65,975 $ 33,550 $ 1,172,384 Accumulated amortization (41,503 ) (175,318 ) (21,573 ) (26,332 ) (264,726 ) Net identifiable intangibles $ 77,427 $ 778,611 $ 44,402 $ 7,218 $ 907,658 Amortization expense with respect to amortizable intangible assets was $18,978 $19,276 three June 1, 2019 June 2, 2018, $38,190 $38,519 six June 1, 2019 June 2, 2018, Estimated aggregate amortization expense based on the current carrying value of amortizable intangible assets for the next five Remainder Fiscal Year 2019 2020 2021 2022 2023 Thereafter Amortization Expense $ 38,370 $ 72,311 $ 70,766 $ 69,564 $ 66,982 $ 558,025 Non-amortizable intangible assets as of June 1, 2019 December 1, 2018 $487 $493, |
Note 6 - Accounting for Share-b
Note 6 - Accounting for Share-based Compensation | 6 Months Ended |
Jun. 01, 2019 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | Note 6: Overview We have various share-based compensation programs, which provide for equity awards including non-qualified stock options, restricted stock shares, restricted stock units, performance awards and deferred compensation. These equity awards fall under several plans and are described in detail in our Annual Report on Form 10 December 1, 2018. Grant-Date Fair Value We use the Black-Scholes option pricing model to calculate the grant-date fair value of an award. The fair value of options granted during the three six June 1, 2019 June 2, 2018 Three Months Ended Six Months Ended June 1, 2019 June 2, 2018 June 1, 2019 June 2, 2018 Expected life (in years) 4.75 4.75 4.75 4.75 Weighted-average expected volatility 24.70% 23.56% 24.26% 23.30% Expected volatility 24.39% - 24.76% 23.42% - 23.58% 24.25% - 24.76% 23.18% - 23.58% Risk-free interest rate 2.17% - 2.31% 2.54% - 2.90% 2.17% - 2.55% 2.38% - 2.90% Weighted-average expected dividend yield 1.42% 1.21% 1.40% 1.14% Expected dividend yield range 1.26% - 1.45% 1.21% - 1.24% 1.26% - 1.45% 1.12% - 1.24% Weighted-average fair value of grants $9.49 $11.35 $9.80 $11.37 Expected life – We use historical employee exercise and option expiration data to estimate the expected life assumption for the Black-Scholes grant-date valuation. We believe that this historical data is currently the best estimate of the expected term of a new option. We use a weighted-average expected life for all awards. Expected volatility – Volatility is calculated using our stock’s historical volatility for the same period of time as the expected life. We have no Risk-free interest rate – The rate is based on the U.S. Treasury yield curve in effect at the time of the grant for the same period of time as the expected life. Expected dividend yield – The calculation is based on the total expected annual dividend payout divided by the average stock price. Expense We use the straight-line attribution method to recognize share-based compensation expense for option awards, restricted stock shares and restricted stock units with graded and cliff vesting. Incentive stock options and performance awards are based on certain performance-based metrics and the expense is adjusted quarterly, based on our projections of the achievement of those metrics. The amount of share-based compensation expense recognized during a period is based on the value of the portion of the awards that are ultimately expected to vest. The expense is recognized over the requisite service period, which for us is the period between the grant-date and the earlier of the award’s stated vesting term or the date the employee is eligible for early vesting based on the terms of the plans. Total share-based compensation expense was $8,266 $4,848 three June 1, 2019 June 2, 2018, $14,172 $10,434 six June 1, 2019 June 2, 2018, As of June 1, 2019, $10,059 1.2 $12,458, 1.2 Stock Option Activity The stock option activity for the six June 1, 2019 Average Options Exercise Price Outstanding at December 1, 2018 4,466,106 $ 44.72 Granted 960,774 45.47 Exercised (65,637 ) 27.98 Forfeited or cancelled (13,632 ) 47.37 Outstanding at June 1, 2019 5,347,611 $ 45.05 The fair value of options granted during the three June 1, 2019 June 2, 2018 $83 $1,392, three June 1, 2019 June 2, 2018 $471 $1,172, six June 1, 2019 June 2, 2018 $9,413 $9,037, six June 1, 2019 June 2, 2018 $1,382 $1,811, Proceeds received from option exercises during the three June 1, 2019 June 2, 2018 $771 $1,625, $1,837 $2,387 six June 1, 2019 June 2, 2018. Restricted Stock Activity The nonvested restricted stock activity for the six June 1, 2019 Weighted- Weighted- Average Average Remaining Grant Contractual Date Fair Life Units Value (in Years) Nonvested at December 1, 2018 414,353 $ 47.45 1.0 Granted 273,090 44.55 2.6 Vested (182,427 ) 45.39 - Forfeited (22,629 ) 44.87 0.4 Nonvested at June 1, 2019 482,387 $ 46.71 1.1 Total fair value of restricted stock vested during the three June 1, 2019 June 2, 2018 $435 $577, six June 1, 2019 June 2, 2018 $8,281 $8,477, June 1, 2019 $22,531. We repurchased 2,746 3,645 three June 1, 2019 June 2, 2018, 60,666 66,936 six June 1, 2019 June 2, 2018, Deferred Compensation Activity We have a Directors’ Deferred Compensation plan that allows non-employee directors to defer all or a portion of their directors’ compensation in a number of investment choices, including units representing shares of our common stock. We also have a Key Employee Deferred Compensation Plan that allows key employees to defer a portion of their eligible compensation in a number of investment choices, including units, representing shares of our common stock. We provide a 10 six June 1, 2019 Non-employee Directors Employees Total Units outstanding December 1, 2018 479,787 29,735 509,522 Participant contributions 10,874 6,649 17,523 Company match contributions 1,087 665 1,752 Payouts - (4,507 ) (4,507 ) Units outstanding June 1, 2019 491,748 32,542 524,290 Deferred compensation units are fully vested at the date of contribution. |
Note 7 - Components of Net Peri
Note 7 - Components of Net Periodic Cost (Benefit) Related to Pension and Other Postretirement Benefit Plans | 6 Months Ended |
Jun. 01, 2019 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Note 7: Three Months Ended June 1, 2019 and June 2, 2018 Other Pension Benefits Postretirement U.S. Plans Non-U.S. Plans Benefits Net periodic cost (benefit): 2019 2018 2019 2018 2019 2018 Service cost $ 1 $ 14 $ 562 $ 582 $ 25 $ 43 Interest cost 3,673 3,419 1,189 1,181 388 371 Expected return on assets (6,326 ) (6,541 ) (2,606 ) (2,811 ) (1,754 ) (1,724 ) Amortization: Prior service cost (benefit) 3 7 16 (1 ) - - Actuarial loss 1,169 1,476 786 732 9 15 Net periodic benefit $ (1,480 ) $ (1,625 ) $ (53 ) $ (317 ) $ (1,332 ) $ (1,295 ) Six Months Ended June 1, 2019 and June 2, 2018 Other Pension Benefits Postretirement U.S. Plans Non-U.S. Plans Benefits Net periodic cost (benefit): 2019 2018 2019 2018 2019 2018 Service cost $ 2 $ 28 $ 1,130 $ 1,180 $ 49 $ 86 Interest cost 7,346 6,837 2,373 2,385 775 742 Expected return on assets (12,652 ) (13,083 ) (5,193 ) (5,675 ) (3,507 ) (3,448 ) Amortization: Prior service cost (benefit) 6 14 32 (2 ) - - Actuarial loss 2,338 2,952 1,575 1,481 17 30 Net periodic benefit $ (2,960 ) $ (3,252 ) $ (83 ) $ (631 ) $ (2,666 ) $ (2,590 ) |
Note 8 - Revenue
Note 8 - Revenue | 6 Months Ended |
Jun. 01, 2019 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | Note 8: Revenue Recognition We sell a variety of adhesives, sealants and other specialty chemical products to a diverse customer base. The vast majority of our arrangements contain a single performance obligation to transfer manufactured goods to the customer as governed by an individual purchase order. We recognize revenue at the amount of consideration to which we expect to be entitled in exchange for transferring the promised goods to the customer. The transaction price includes an estimation of any variable amounts of consideration to which we will be entitled. The most common forms of variable consideration within our arrangements are customer rebates, which are recorded as a reduction to revenue at the time of the initial sale using the expected value method. The expected value method is the sum of probability-weighted amounts in a range of possible consideration amounts and is based on a consideration of historical, current and forecast information. Changes in estimates are updated each reporting period. There are no not not We recognize revenue when control of goods is transferred to the customer. For the vast majority of our arrangements, control transfers at a point in time either upon shipment or upon delivery of the goods to the customer. The timing of transfer of control is determined considering the timing of the transfer of legal title, physical possession, and risks and rewards of goods to the customer. We record shipping and handling revenue in net revenues and outbound shipping and handling costs in cost of goods sold. The majority of our shipping and handling activities are performed prior to transfer of control of the goods to the customer. For those arrangements where we provide shipping and handling services after control of the goods has transferred to the customer, we have elected the practical expedient allowed under ASC 606 $1,776 2019. No. 2014 09 not three six June 1, 2019, not Practical Expedients Elected We have elected the following practical expedients allowable under ASC 606: - Election to present revenue net of sales taxes and other similar taxes - Election to account for shipping and handling services performed after control has transferred to the customer as fulfillment activities Disaggregated Revenue Information We view the following disaggregation of revenue by product type as useful to understanding the composition of revenue recognized during the respective reporting periods: Three Months Ended June 1, 2019 Americas Asia Construction Engineering Adhesives EIMEA Pacific Adhesives Adhesives Total Durable assembly $ 68,516 $ 65,607 $ 18,667 $ - $ - $ 152,790 Hygiene 31,196 42,436 28,641 - - 102,273 Packaging 72,903 34,389 14,334 - - 121,626 Paper and other 87,167 23,021 9,557 - - 119,745 Construction - - - 111,244 - 111,244 Engineering - - - - 151,905 151,905 $ 259,782 $ 165,453 $ 71,199 $ 111,244 $ 151,905 $ 759,583 Three Months Ended June 2, 2018 Americas Asia Construction Engineering Adhesives EIMEA Pacific Adhesives Adhesives Total Durable assembly $ 76,183 $ 72,388 $ 18,151 $ - $ - $ 166,722 Hygiene 30,065 47,646 30,427 - - 108,138 Packaging 72,014 36,746 14,177 - - 122,937 Paper and other 87,970 25,395 11,666 - - 125,031 Construction - - - 122,891 - 122,891 Engineering - - - - 143,668 143,668 $ 266,232 $ 182,175 $ 74,421 $ 122,891 $ 143,668 $ 789,387 Six Months Ended June 1, 2019 Americas Asia Construction Engineering Adhesives EIMEA Pacific Adhesives Adhesives Total Durable assembly $ 129,844 $ 126,789 $ 32,700 $ - $ - $ 289,333 Hygiene 61,225 87,994 55,949 - - 205,168 Packaging 142,305 63,509 27,128 - - 232,942 Paper and other 168,358 43,674 18,810 - - 230,842 Construction - - - 193,700 - 193,700 Engineering - - - - 280,533 280,533 $ 501,732 $ 321,966 $ 134,587 $ 193,700 $ 280,533 $ 1,432,518 Six Months Ended June 2, 2018 Americas Asia Construction Engineering Adhesives EIMEA Pacific Adhesives Adhesives Total Durable assembly $ 142,717 $ 137,287 $ 33,348 $ - $ - $ 313,352 Hygiene 61,194 96,818 58,583 - - 216,595 Packaging 139,542 67,970 27,301 - - 234,813 Paper and other 173,742 49,078 21,798 - - 244,618 Construction - - - 221,148 - 221,148 Engineering - - - - 271,940 271,940 $ 517,195 $ 351,153 $ 141,030 $ 221,148 $ 271,940 $ 1,502,466 |
Note 9 - Accumulated Other Comp
Note 9 - Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 01, 2019 | |
Notes to Financial Statements | |
Accumulated Other Comprehensive Income (Loss) Disclosure [Text Block] | Note 9: The following table provides details of total comprehensive income (loss): Three Months Ended June 1, 2019 Three Months Ended June 2, 2018 H.B. Fuller Stockholders Non-controlling Interests H.B. Fuller Stockholders Non-controlling Interests Pre-tax Tax Net Net Pre-tax Tax Net Net Net income including non-controlling interests - - $ 36,641 $ - - - $ 44,451 $ 13 Foreign currency translation adjustment¹ $ (39,313 ) - (39,313 ) (4 ) $ (40,752 ) - (40,752 ) (5 ) Reclassification to earnings: Defined benefit pension plans adjustment² 1,982 $ (502 ) 1,480 - 2,238 $ (578 ) 1,660 - Interest rate swap³ (22,770 ) 5,692 (17,078 ) - 7,405 (2,821 ) 4,584 - Cash flow hedges³ 6,327 (225 ) 6,102 - (19 ) 7 (12 ) - Other comprehensive income (loss) $ (53,774 ) $ 4,965 (48,809 ) (4 ) $ (31,128 ) $ (3,392 ) (34,520 ) (5 ) Comprehensive income (loss) $ (12,168 ) $ (4 ) $ 9,931 $ 8 Six Months Ended June 1, 2019 Six Months Ended June 2, 2018 H.B. Fuller Stockholders Non-controlling Interests H.B. Fuller Stockholders Non-controlling Interests Pretax Tax Net Net Pretax Tax Net Net Net income including non-controlling interests - - $ 48,885 $ 4 - - $ 92,133 $ (2 ) Foreign currency translation adjustment¹ $ (21,620 ) - (21,620 ) 2 $ (19,284 ) - (19,284 ) (18 ) Reclassification to earnings: Defined benefit pension plans adjustment² 3,968 $ (1,006 ) 2,962 - 4,476 $ (1,156 ) 3,320 - Interest rate swap³ (38,029 ) 9,507 (28,522 ) - 26,839 (6,303 ) 20,536 - Cash flow hedges³ 10,611 (423 ) 10,188 - (4,513 ) (2,340 ) (6,853 ) - Other comprehensive $ (45,070 ) $ 8,078 (36,992 ) 2 $ 7,518 $ (9,799 ) (2,281 ) (18 ) Comprehensive income (loss) $ 11,893 $ 6 $ 89,852 $ (20 ) ¹ Income taxes are not ² Loss reclassified from accumulated other comprehensive income ("AOCI") into earnings as part of net periodic cost related to pension and other postretirement benefit plans is reported in cost of sales and SG&A expense. ³ Income (loss) reclassified from AOCI into earnings is reported in other income, net. The components of accumulated other comprehensive loss is as follows: June 1, 2019 Total H.B. Fuller Stockholders Non- controlling Interests Foreign currency translation adjustment $ (149,020 ) $ (148,927 ) $ (93 ) Defined benefit pension plans adjustment, net of taxes of $74,077 (141,178 ) (141,178 ) - Interest rate swap, net of taxes of $2,276 (6,829 ) (6,829 ) - Cash flow hedges, net of taxes of $165 (1,869 ) (1,869 ) - Reclassification of AOCI tax effects (18,341 ) (18,341 ) - Accumulated other comprehensive loss $ (317,237 ) $ (317,144 ) $ (93 ) December 1, 2018 Total H.B. Fuller Stockholders Non- controlling Interests Foreign currency translation adjustment $ (127,398 ) $ (127,307 ) $ (91 ) Defined benefit pension plans adjustment, net of taxes of $75,083 (144,140 ) (144,140 ) - Interest rate swap, net of taxes of ($7.231) 21,693 21,693 - Cash flow hedges, net of taxes of $588 (12,057 ) (12,057 ) - Reclassification of AOCI tax effects (18,341 ) (18,341 ) - Accumulated other comprehensive loss $ (280,243 ) $ (280,152 ) $ (91 ) |
Note 10 - Income Taxes
Note 10 - Income Taxes | 6 Months Ended |
Jun. 01, 2019 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 10: As of June 1, 2019, $10,115 $8,420 December 1, 2018. June 1, 2019, $942 six June 1, 2019, $1,695. |
Note 11 - Earnings Per Share
Note 11 - Earnings Per Share | 6 Months Ended |
Jun. 01, 2019 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | Note 11: A reconciliation of the common share components for the basic and diluted earnings per share calculations is as follows: Three Months Ended Six Months Ended June 1, June 2, June 1, June 2, (Shares in thousands) 2019 2018 2019 2018 Weighted-average common shares - basic 50,902 50,551 50,827 50,511 Equivalent shares from share-based compensations plans 1,203 1,295 1,176 1,361 Weighted-average common and common equivalent shares - diluted 52,105 51,846 52,003 51,872 Basic earnings per share is calculated by dividing net income attributable to H.B. Fuller by the weighted-average number of common shares outstanding during the applicable period. Diluted earnings per share is based upon the weighted-average number of common and common equivalent shares outstanding during the applicable period. The difference between basic and diluted earnings per share is attributable to share-based compensation awards. We use the treasury stock method to calculate the effect of outstanding shares, which computes total employee proceeds as the sum of (a) the amount the employee must pay upon exercise of the award and (b) the amount of unearned share-based compensation costs attributed to future services. Share-based compensation awards for which total employee proceeds exceed the average market price over the applicable period have an antidilutive effect on earnings per share, and accordingly, are excluded from the calculation of diluted earnings per share. Share-based compensation awards for 2,751,956 2,223,223 three June 1, 2019 June 2, 2018, 3,020,604 2,410,032 six June 1, 2019 June 2, 2018, |
Note 12 - Financial Instruments
Note 12 - Financial Instruments | 6 Months Ended |
Jun. 01, 2019 | |
Notes to Financial Statements | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Note 12: Overview As a result of being a global enterprise, our earnings, cash flows and financial position are exposed to foreign currency risk from foreign currency denominated receivables and payables. We use foreign currency forward contracts, cross-currency swaps, and interest rate swaps to manage risks associated with foreign currency exchange rates and interest rates. We do not no We are exposed to credit risk in the event of nonperformance of counterparties for foreign currency forward exchange contracts and interest rate swap agreements. We select investment-grade multinational banks and financial institutions as counterparties for derivative transactions and monitor the credit quality of each of these banks on a periodic basis as warranted. We do not Cash Flow Hedges As of June 1, 2019, 1 six October 20, 2017 $401,200 2021 2022; 2 one February 24, 2017 $42,600 2020; 3 one October 7, 2015, $44,912 2019. As of June 1, 2019, $17,640 two $1,869 June 1, 2019. June 1, 2019 twelve $440. June 1, 2019, not not The following table summarizes the cross-currency swaps outstanding as of June 1, 2019: Fiscal Year of Expiration Interest Rate Notional Value Fair Value Pay EUR 2019 3.80% $ 44,912 $ (41 ) Receive USD 5.0530% Pay EUR 2020 1.95% $ 42,600 $ (2,348 ) Receive USD 4.3038% Pay EUR 2021 2.75% $ 133,340 $ 6,498 Receive USD 4.9330% Pay EUR 2022 3.00% $ 267,860 $ 13,531 Receive USD 5.1803% Total $ 488,712 $ 17,640 On March 26, 2018, $100,000 $2,150,000 October 20, 2017 4.312 March 9, 2018, $100,000 $2,150,000 4.490 February 27, 2018, $200,000 $2,150,000 4.589 October 20, 2017, $1,050,000 $2,150,000 4.0275 $8,082 June 1, 2019 $1,450,000 On April 23, 2018, 2.25 2.00 The amounts of pretax gains (losses) recognized in Comprehensive Income related to derivative instruments designated as cash flow hedges are as follows: Three Months Ended Six Months Ended June 1, 2019 June 2, 2018 June 1, 2019 June 2, 2018 Cross-currency swap contracts $ 6,327 $ (19 ) $ 10,611 $ (4,513 ) Interest rate swap contracts (22,770 ) 7,405 (38,029 ) 26,839 Fair Value Hedges On February 14, 2017, $150,000 $300,000 February 14, 2017 1 1.86 $1,367 June 1, 2019, $150,000 Derivatives Not The company uses foreign currency forward contracts to offset its exposure to the change in value of certain foreign currency denominated assets and liabilities held at foreign subsidiaries that are remeasured at the end of each period. Although the contracts are effective economic hedges, they are not See Note 13 As of June 1, 2019, June 3, 2019 November 19, 2019. The amounts of pretax gains (losses) recognized in other income, net related to derivative instruments not six June 1, 2019 June 2, 2018 $4,415 $5,251, Concentrations of credit risk with respect to trade accounts receivable are limited due to the large number of entities in the customer base and their dispersion across many different industries and countries. As of June 1, 2019, no |
Note 13 - Fair Value Measuremen
Note 13 - Fair Value Measurements | 6 Months Ended |
Jun. 01, 2019 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | Note 13: Overview Estimates of fair value for financial assets and liabilities are based on the framework established in the accounting guidance for fair value measurements. The framework defines fair value, provides guidance for measuring fair value and requires certain disclosures. The framework discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow) and the cost approach (cost to replace the service capacity of an asset or replacement cost). The framework utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three three ● Level 1: ● Level 2: not ● Level 3: Balances Measured at Fair Value on a Recurring Basis The following table presents information about our financial assets and liabilities that are measured at fair value on a recurring basis as of June 1, 2019 December 1, 2018, June 1, Fair Value Measurements Using: Description 2019 Level 1 Level 2 Level 3 Assets: Marketable securities $ 9,392 $ 9,392 $ - $ - Foreign exchange contract assets 5,549 - 5,549 - Interest rate swaps, fair value hedges 1,367 - 1,367 - Cross-currency cash flow hedges 17,640 17,640 Liabilities: Foreign exchange contract liabilities $ 1,133 $ - $ 1,133 $ - Interest rate swaps, cash flow hedges 8,082 - 8,082 - December 1, Fair Value Measurements Using: Description 2018 Level 1 Level 2 Level 3 Assets: Marketable securities $ 11,436 $ 11,436 $ - $ - Foreign exchange contract assets 4,933 - 4,933 - Interest rate swaps, cash flow hedges 28,924 - 28,924 - Cross-currency cash flow hedges 739 - 739 - Liabilities: Foreign exchange contract liabilities $ 2,156 $ - $ 2,156 $ - Interest rate swaps, fair value hedges 8,657 - 8,657 - Long-term debt had an estimated fair value of $2,130,945 $2,123,447 June 1, 2019 December 1, 2018, not |
Note 14 - Share Repurchase Prog
Note 14 - Share Repurchase Program | 6 Months Ended |
Jun. 01, 2019 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | Note 14 : Share Repurchase Program On April 6, 2017, $200,000 September 30, 2010 We did not six June 1, 2019 June 2, 2018. |
Note 15 - Commitments and Conti
Note 15 - Commitments and Contingencies | 6 Months Ended |
Jun. 01, 2019 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | Note 15: Commitments and Contingencies Environmental Matters From time to time, we become aware of compliance matters relating to, or receive notices from, federal, state or local entities regarding possible or alleged violations of environmental, health or safety laws and regulations. We review the circumstances of each individual site, considering the number of parties involved, the level of potential liability or our contribution relative to the other parties, the nature and magnitude of the hazardous substances involved, the method and extent of remediation, the estimated legal and consulting expense with respect to each site and the time period over which any costs would likely be incurred. Also, from time to time, we are identified as a potentially responsible party (“PRP”) under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) and/or similar state laws that impose liability for costs relating to the clean up of contamination resulting from past spills, disposal or other release of hazardous substances. We are also subject to similar laws in some of the countries where current and former facilities are located. Our environmental, health and safety department monitors compliance with applicable laws on a global basis. To the extent we can reasonably estimate the amount of our probable liabilities for environmental matters, we establish an undiscounted financial provision. We recorded liabilities of $10,116 $10,665 June 1, 2019 December 1, 2018, $4,570 $4,784 June 1, 2019 December 1, 2018, Currently we are involved in various environmental investigations, clean up activities and administrative proceedings and lawsuits. In particular, we are currently deemed a PRP in conjunction with numerous other parties, in a number of government enforcement actions associated with landfills and/or hazardous waste sites. As a PRP, we may not Other Legal Proceedings From time to time and in the ordinary course of business, we are a party to, or a target of, lawsuits, claims, investigations and proceedings, including product liability, personal injury, contract, patent and intellectual property, environmental, health and safety, tax and employment matters. While we are unable to predict the outcome of these matters, we have concluded, based upon currently available information, that the ultimate resolution of any pending matter, individually or in the aggregate, including the asbestos litigation described in the following paragraphs, will not We have been named as a defendant in lawsuits in which plaintiffs have alleged injury due to products containing asbestos manufactured more than 30 A significant portion of the defense costs and settlements in asbestos-related litigation is paid by third 1976 third third third In addition to the indemnification arrangements with third A summary of the number of and settlement amounts for asbestos-related lawsuits and claims is as follows: Six Months Ended 3 Years Ended June 1, 2019 June 2, 2018 December 1, 2018 Lawsuits and claims settled 2 3 30 Settlement amounts $ 162 $ 195 $ 3,423 Insurance payments received or expected to be received $ 130 $ 186 $ 2,530 We do not Based on currently available information, we have concluded that the resolution of any pending matter, including asbestos-related litigation, individually or in the aggregate, will not During 2018, 2011 2014 one three 2018 not January 2018, September 2018, not zero $10,000. |
Note 16 - Operating Segments
Note 16 - Operating Segments | 6 Months Ended |
Jun. 01, 2019 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | Note 16: Operating Segments We are required to report segment information in the same way that we internally organize our business for assessing performance and making decisions regarding allocation of resources. Operating results of each segment are regularly reviewed by our chief operating decision maker to make decisions about resources to be allocated to the segments and assess their performance. Corporate expenses are fully allocated to each operating segment. Corporate assets are not We have five 2019, Three Months Ended June 1, 2019 June 2, 2018 Inter- Segment Inter- Segment Trade Segment Operating Trade Segment Operating Revenue Revenue Income Revenue Revenue Income Americas Adhesives $ 259,782 $ 5,334 $ 26,514 $ 266,232 $ 5,791 $ 26,782 EIMEA 165,453 9,088 8,570 182,175 5,387 10,623 Asia Pacific 71,199 1,574 5,758 74,421 2,541 5,023 Construction Adhesives 111,244 (1 ) 7,107 122,891 - 12,042 Engineering Adhesives 151,905 188 24,431 143,668 - 18,827 Total $ 759,583 $ 72,380 $ 789,387 $ 73,297 Six Months Ended June 1, 2019 June 2, 2018 Inter- Segment Inter- Segment Trade Segment Operating Trade Segment Operating Revenue Revenue Income Revenue Revenue Income Americas Adhesives $ 501,732 $ 8,741 $ 42,208 $ 517,195 $ 10,896 $ 41,319 EIMEA 321,966 13,099 11,996 351,154 9,447 16,516 Asia Pacific 134,587 3,605 9,537 141,029 3,598 7,327 Construction Adhesives 193,700 (2 ) 3,768 221,148 (1 ) 12,503 Engineering Adhesives 280,533 186 39,083 271,940 - 28,438 Total $ 1,432,518 $ 106,592 $ 1,502,466 $ 106,103 The table below provides a reconciliation of segment operating income to income before income taxes and income from equity method investments: Three Months Ended Six Months Ended June 1, June 2, June 1, June 2, 2019 2018 2019 2018 Segment operating income $ 72,380 $ 73,297 $ 106,592 $ 106,103 Other income, net 2,986 7,739 6,351 12,651 Interest expense (26,940 ) (28,017 ) (53,747 ) (55,562 ) Interest income 3,023 2,794 6,076 5,835 Income before income taxes and income from equity method investments $ 51,449 $ 55,813 $ 65,272 $ 69,027 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 01, 2019 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | Change in Accounting Principl e – Accounting for Inventory During the year ended December 1, 2018, first Change in Accounting Principle – Revenue Recognition In May 2014, No. 2014 09, Revenue from Contracts with Customers (Topic 606 March 2, 2019 $1,776 December 1, 2018 not 8. In March 2016, No. 2016 08, Revenue from Contracts with Customers (Topic 606 No. 2014 09 March 2, 2019 No. 2014 09 Change in Accounting Principle – Income Tax Impact of Intra-Entity Transfers of Assets Other Than Inventory In October 2016, No. 2016 16, Income Taxes (Topic 740 third March 2, 2019. $733 December 1, 2018 Change in Accounting Principle – Net Periodic Defined Benefit Pension and Postretirement Benefit Costs In March 2017, No. 2017 07, Compensation-Retirement Benefits (Topic 715 March 2, 2019. three six June 2, 2018 Three M onths Ended June 2, 2018 As Reported Impact of Adoption of ASU 2017-07 As Adjusted Cost of sales $ (567,002 ) $ (2,199 ) $ (569,201 ) Gross profit 222,385 (2,199 ) 220,186 Selling, general and administrative expenses (145,199 ) (1,690 ) (146,889 ) Other income, net 3,850 3,889 7,739 Net income including non-controlling interests 44,464 - 44,464 Net income attributable to H.B. Fuller 44,451 - 44,451 Basic $ 0.88 $ - $ 0.88 Diluted 0.86 - 0.86 Six M onths Ended June 2, 2018 As Reported Impact of Adoption of ASU 2017-07 As Adjusted Cost of sales $ (1,092,376 ) $ (4,391 ) $ (1,096,767 ) Gross profit 410,090 (4,391 ) 405,699 Selling, general and administrative expenses (296,219 ) (3,377 ) (299,596 ) Other income, net 4,883 7,768 12,651 Net income including non-controlling interests 92,131 - 92,131 Net income attributable to H.B. Fuller 92,133 - 92,133 Basic $ 1.82 $ - $ 1.82 Diluted 1.78 - 1.78 New Accounting Pronouncements In August 2018, No. 2018 13, Fair Value Measurement (Topic 820 1 2 3 3 3 November 29, 2020 not In July 2018, No. 2018 11, Leases (Topic 842 not 842 840. not No. 2016 02 No. 2016 02. In July 2018, No. 2018 10, Codification Improvements to Topic 842, No. 2016 02. No. 2016 02 In August 2016, No. 2016 15, Statement of Cash Flows (Topic 230 not March 2, 2019. $16,598 December 2, 2017 In June 2016, No. 2016 13 , Financial Instruments - Credit Losses (Topic 326 No. 2018 19, Codification Improvements to Topic 326, November 2018 No. 2019 04, Codification Improvements to Topic 326, April 2019 . No. 2018 19 842, Leases No. 2019 04 No. 2016 13. No. 2016 13 No. 2016 13. November 29, 2020. In February 2016, No. 2016 02, Leases (Subtopic 842 December 2018, No. 2018 20, Leases (Topic 842 2016 02, No. 2019 01, Leases (Topic 842 December 1, 2019 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation (Tables) | 6 Months Ended |
Jun. 01, 2019 | |
Notes Tables | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | Three M onths Ended June 2, 2018 As Reported Impact of Adoption of ASU 2017-07 As Adjusted Cost of sales $ (567,002 ) $ (2,199 ) $ (569,201 ) Gross profit 222,385 (2,199 ) 220,186 Selling, general and administrative expenses (145,199 ) (1,690 ) (146,889 ) Other income, net 3,850 3,889 7,739 Net income including non-controlling interests 44,464 - 44,464 Net income attributable to H.B. Fuller 44,451 - 44,451 Basic $ 0.88 $ - $ 0.88 Diluted 0.86 - 0.86 Six M onths Ended June 2, 2018 As Reported Impact of Adoption of ASU 2017-07 As Adjusted Cost of sales $ (1,092,376 ) $ (4,391 ) $ (1,096,767 ) Gross profit 410,090 (4,391 ) 405,699 Selling, general and administrative expenses (296,219 ) (3,377 ) (299,596 ) Other income, net 4,883 7,768 12,651 Net income including non-controlling interests 92,131 - 92,131 Net income attributable to H.B. Fuller 92,133 - 92,133 Basic $ 1.82 $ - $ 1.82 Diluted 1.78 - 1.78 |
Note 2 - Acquisition and Dive_2
Note 2 - Acquisition and Divestiture (Tables) | 6 Months Ended |
Jun. 01, 2019 | |
Notes Tables | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | Current assets $ 3,976 Non-current assets 59,832 Current liabilities 1,804 Non-current liabilities 8,676 |
Note 3 - Restructuring Actions
Note 3 - Restructuring Actions (Tables) | 6 Months Ended |
Jun. 01, 2019 | |
Notes Tables | |
Restructuring and Related Costs [Table Text Block] | Three Months Ended Six Months Ended June 1, 2019 June 2, 2018 June 1, 2019 June 2, 2018 Cost of sales $ 618 $ 956 $ 994 $ 1,188 Selling, general and administrative 666 368 1,743 1,965 $ 1,284 $ 1,324 $ 2,737 $ 3,153 |
Schedule of Restructuring Charges by Segment [Table Text Block] | Three Months Ended Six Months Ended June 1, 2019 June 2, 2018 June 1, 2019 June 2, 2018 Americas Adhesives $ 63 $ 53 $ 339 $ 856 EIMEA 265 567 845 525 Asia Pacific 4 - 47 3 Construction Adhesives 779 545 1,098 1,354 Engineering Adhesives 173 159 408 415 $ 1,284 $ 1,324 $ 2,737 $ 3,153 |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | Employee-Related Asset-Related Other Total Balance at December 2, 2017 $ 1,486 $ - $ 20 $ 1,506 Expenses incurred $ 6,223 $ 2,353 $ 305 $ 8,881 Non-cash charges - (1,666 ) - (1,666 ) Cash payments (3,395 ) (687 ) (325 ) (4,407 ) Foreign currency translation (58 ) - - (58 ) Balance at December 1, 2018 $ 4,256 $ - $ - $ 4,256 Expenses incurred 1,337 874 526 2,737 Cash payments (1,373 ) (792 ) (526 ) (2,691 ) Foreign currency translation (47 ) - - (47 ) Balance at June 1, 2019 $ 4,173 $ 82 $ - $ 4,255 |
Note 4 - Inventories (Tables)
Note 4 - Inventories (Tables) | 6 Months Ended |
Jun. 01, 2019 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | June 1, December 1, 2019 2018 Raw materials $ 175,069 $ 169,228 Finished goods 207,543 179,233 Total inventories $ 382,612 $ 348,461 |
Note 5 - Goodwill and Other I_2
Note 5 - Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 01, 2019 | |
Notes Tables | |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block] | June 1, 2019 Amortizable Intangible Assets Purchased Technology and Patents Customer Relationships Trade Names All Other Total Original cost $ 114,577 $ 959,237 $ 66,067 $ 27,460 $ 1,167,341 Accumulated amortization (43,749 ) (202,260 ) (23,547 ) (21,767 ) (291,323 ) Net identifiable intangibles $ 70,828 $ 756,977 $ 42,520 $ 5,693 $ 876,018 December 1, 2018 Amortizable Intangible Assets Purchased Technology and Patents Customer Relationships Trade Names All Other Total Original cost $ 118,930 $ 953,929 $ 65,975 $ 33,550 $ 1,172,384 Accumulated amortization (41,503 ) (175,318 ) (21,573 ) (26,332 ) (264,726 ) Net identifiable intangibles $ 77,427 $ 778,611 $ 44,402 $ 7,218 $ 907,658 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Remainder Fiscal Year 2019 2020 2021 2022 2023 Thereafter Amortization Expense $ 38,370 $ 72,311 $ 70,766 $ 69,564 $ 66,982 $ 558,025 |
Operating Segments [Member] | |
Notes Tables | |
Schedule of Goodwill [Table Text Block] | Americas Asia Construction Engineering Adhesives EIMEA Pacific Adhesives Adhesives Total Balance at December 1, 2018 $ 339,800 $ 155,552 $ 21,428 $ 310,720 $ 477,671 $ 1,305,171 Acquisition 507 - - - - 507 Currency impact (443 ) (2,715 ) (208 ) 75 (1,095 ) (4,386 ) Balance at June 1, 2019 $ 339,864 $ 152,837 $ 21,220 $ 310,795 $ 476,576 $ 1,301,292 |
Note 6 - Accounting for Share_2
Note 6 - Accounting for Share-based Compensation (Tables) | 6 Months Ended |
Jun. 01, 2019 | |
Notes Tables | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value [Table Text Block] | Three Months Ended Six Months Ended June 1, 2019 June 2, 2018 June 1, 2019 June 2, 2018 Expected life (in years) 4.75 4.75 4.75 4.75 Weighted-average expected volatility 24.70% 23.56% 24.26% 23.30% Expected volatility 24.39% - 24.76% 23.42% - 23.58% 24.25% - 24.76% 23.18% - 23.58% Risk-free interest rate 2.17% - 2.31% 2.54% - 2.90% 2.17% - 2.55% 2.38% - 2.90% Weighted-average expected dividend yield 1.42% 1.21% 1.40% 1.14% Expected dividend yield range 1.26% - 1.45% 1.21% - 1.24% 1.26% - 1.45% 1.12% - 1.24% Weighted-average fair value of grants $9.49 $11.35 $9.80 $11.37 |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | Average Options Exercise Price Outstanding at December 1, 2018 4,466,106 $ 44.72 Granted 960,774 45.47 Exercised (65,637 ) 27.98 Forfeited or cancelled (13,632 ) 47.37 Outstanding at June 1, 2019 5,347,611 $ 45.05 |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | Weighted- Weighted- Average Average Remaining Grant Contractual Date Fair Life Units Value (in Years) Nonvested at December 1, 2018 414,353 $ 47.45 1.0 Granted 273,090 44.55 2.6 Vested (182,427 ) 45.39 - Forfeited (22,629 ) 44.87 0.4 Nonvested at June 1, 2019 482,387 $ 46.71 1.1 |
Schedule of Deferred Compensation Arrangement with Individual, Share-based Payments [Table Text Block] | Non-employee Directors Employees Total Units outstanding December 1, 2018 479,787 29,735 509,522 Participant contributions 10,874 6,649 17,523 Company match contributions 1,087 665 1,752 Payouts - (4,507 ) (4,507 ) Units outstanding June 1, 2019 491,748 32,542 524,290 |
Note 7 - Components of Net Pe_2
Note 7 - Components of Net Periodic Cost (Benefit) Related to Pension and Other Postretirement Benefit Plans (Tables) | 6 Months Ended |
Jun. 01, 2019 | |
Notes Tables | |
Schedule of Net Benefit Costs [Table Text Block] | Three Months Ended June 1, 2019 and June 2, 2018 Other Pension Benefits Postretirement U.S. Plans Non-U.S. Plans Benefits Net periodic cost (benefit): 2019 2018 2019 2018 2019 2018 Service cost $ 1 $ 14 $ 562 $ 582 $ 25 $ 43 Interest cost 3,673 3,419 1,189 1,181 388 371 Expected return on assets (6,326 ) (6,541 ) (2,606 ) (2,811 ) (1,754 ) (1,724 ) Amortization: Prior service cost (benefit) 3 7 16 (1 ) - - Actuarial loss 1,169 1,476 786 732 9 15 Net periodic benefit $ (1,480 ) $ (1,625 ) $ (53 ) $ (317 ) $ (1,332 ) $ (1,295 ) Six Months Ended June 1, 2019 and June 2, 2018 Other Pension Benefits Postretirement U.S. Plans Non-U.S. Plans Benefits Net periodic cost (benefit): 2019 2018 2019 2018 2019 2018 Service cost $ 2 $ 28 $ 1,130 $ 1,180 $ 49 $ 86 Interest cost 7,346 6,837 2,373 2,385 775 742 Expected return on assets (12,652 ) (13,083 ) (5,193 ) (5,675 ) (3,507 ) (3,448 ) Amortization: Prior service cost (benefit) 6 14 32 (2 ) - - Actuarial loss 2,338 2,952 1,575 1,481 17 30 Net periodic benefit $ (2,960 ) $ (3,252 ) $ (83 ) $ (631 ) $ (2,666 ) $ (2,590 ) |
Note 8 - Revenue (Tables)
Note 8 - Revenue (Tables) | 6 Months Ended |
Jun. 01, 2019 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended June 1, 2019 Americas Asia Construction Engineering Adhesives EIMEA Pacific Adhesives Adhesives Total Durable assembly $ 68,516 $ 65,607 $ 18,667 $ - $ - $ 152,790 Hygiene 31,196 42,436 28,641 - - 102,273 Packaging 72,903 34,389 14,334 - - 121,626 Paper and other 87,167 23,021 9,557 - - 119,745 Construction - - - 111,244 - 111,244 Engineering - - - - 151,905 151,905 $ 259,782 $ 165,453 $ 71,199 $ 111,244 $ 151,905 $ 759,583 Three Months Ended June 2, 2018 Americas Asia Construction Engineering Adhesives EIMEA Pacific Adhesives Adhesives Total Durable assembly $ 76,183 $ 72,388 $ 18,151 $ - $ - $ 166,722 Hygiene 30,065 47,646 30,427 - - 108,138 Packaging 72,014 36,746 14,177 - - 122,937 Paper and other 87,970 25,395 11,666 - - 125,031 Construction - - - 122,891 - 122,891 Engineering - - - - 143,668 143,668 $ 266,232 $ 182,175 $ 74,421 $ 122,891 $ 143,668 $ 789,387 Six Months Ended June 1, 2019 Americas Asia Construction Engineering Adhesives EIMEA Pacific Adhesives Adhesives Total Durable assembly $ 129,844 $ 126,789 $ 32,700 $ - $ - $ 289,333 Hygiene 61,225 87,994 55,949 - - 205,168 Packaging 142,305 63,509 27,128 - - 232,942 Paper and other 168,358 43,674 18,810 - - 230,842 Construction - - - 193,700 - 193,700 Engineering - - - - 280,533 280,533 $ 501,732 $ 321,966 $ 134,587 $ 193,700 $ 280,533 $ 1,432,518 Six Months Ended June 2, 2018 Americas Asia Construction Engineering Adhesives EIMEA Pacific Adhesives Adhesives Total Durable assembly $ 142,717 $ 137,287 $ 33,348 $ - $ - $ 313,352 Hygiene 61,194 96,818 58,583 - - 216,595 Packaging 139,542 67,970 27,301 - - 234,813 Paper and other 173,742 49,078 21,798 - - 244,618 Construction - - - 221,148 - 221,148 Engineering - - - - 271,940 271,940 $ 517,195 $ 351,153 $ 141,030 $ 221,148 $ 271,940 $ 1,502,466 |
Note 9 - Accumulated Other Co_2
Note 9 - Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 01, 2019 | |
Notes Tables | |
Comprehensive Income (Loss) [Table Text Block] | Three Months Ended June 1, 2019 Three Months Ended June 2, 2018 H.B. Fuller Stockholders Non-controlling Interests H.B. Fuller Stockholders Non-controlling Interests Pre-tax Tax Net Net Pre-tax Tax Net Net Net income including non-controlling interests - - $ 36,641 $ - - - $ 44,451 $ 13 Foreign currency translation adjustment¹ $ (39,313 ) - (39,313 ) (4 ) $ (40,752 ) - (40,752 ) (5 ) Reclassification to earnings: Defined benefit pension plans adjustment² 1,982 $ (502 ) 1,480 - 2,238 $ (578 ) 1,660 - Interest rate swap³ (22,770 ) 5,692 (17,078 ) - 7,405 (2,821 ) 4,584 - Cash flow hedges³ 6,327 (225 ) 6,102 - (19 ) 7 (12 ) - Other comprehensive income (loss) $ (53,774 ) $ 4,965 (48,809 ) (4 ) $ (31,128 ) $ (3,392 ) (34,520 ) (5 ) Comprehensive income (loss) $ (12,168 ) $ (4 ) $ 9,931 $ 8 Six Months Ended June 1, 2019 Six Months Ended June 2, 2018 H.B. Fuller Stockholders Non-controlling Interests H.B. Fuller Stockholders Non-controlling Interests Pretax Tax Net Net Pretax Tax Net Net Net income including non-controlling interests - - $ 48,885 $ 4 - - $ 92,133 $ (2 ) Foreign currency translation adjustment¹ $ (21,620 ) - (21,620 ) 2 $ (19,284 ) - (19,284 ) (18 ) Reclassification to earnings: Defined benefit pension plans adjustment² 3,968 $ (1,006 ) 2,962 - 4,476 $ (1,156 ) 3,320 - Interest rate swap³ (38,029 ) 9,507 (28,522 ) - 26,839 (6,303 ) 20,536 - Cash flow hedges³ 10,611 (423 ) 10,188 - (4,513 ) (2,340 ) (6,853 ) - Other comprehensive $ (45,070 ) $ 8,078 (36,992 ) 2 $ 7,518 $ (9,799 ) (2,281 ) (18 ) Comprehensive income (loss) $ 11,893 $ 6 $ 89,852 $ (20 ) |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | June 1, 2019 Total H.B. Fuller Stockholders Non- controlling Interests Foreign currency translation adjustment $ (149,020 ) $ (148,927 ) $ (93 ) Defined benefit pension plans adjustment, net of taxes of $74,077 (141,178 ) (141,178 ) - Interest rate swap, net of taxes of $2,276 (6,829 ) (6,829 ) - Cash flow hedges, net of taxes of $165 (1,869 ) (1,869 ) - Reclassification of AOCI tax effects (18,341 ) (18,341 ) - Accumulated other comprehensive loss $ (317,237 ) $ (317,144 ) $ (93 ) December 1, 2018 Total H.B. Fuller Stockholders Non- controlling Interests Foreign currency translation adjustment $ (127,398 ) $ (127,307 ) $ (91 ) Defined benefit pension plans adjustment, net of taxes of $75,083 (144,140 ) (144,140 ) - Interest rate swap, net of taxes of ($7.231) 21,693 21,693 - Cash flow hedges, net of taxes of $588 (12,057 ) (12,057 ) - Reclassification of AOCI tax effects (18,341 ) (18,341 ) - Accumulated other comprehensive loss $ (280,243 ) $ (280,152 ) $ (91 ) |
Note 11 - Earnings Per Share (T
Note 11 - Earnings Per Share (Tables) | 6 Months Ended |
Jun. 01, 2019 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended Six Months Ended June 1, June 2, June 1, June 2, (Shares in thousands) 2019 2018 2019 2018 Weighted-average common shares - basic 50,902 50,551 50,827 50,511 Equivalent shares from share-based compensations plans 1,203 1,295 1,176 1,361 Weighted-average common and common equivalent shares - diluted 52,105 51,846 52,003 51,872 |
Note 12 - Financial Instrumen_2
Note 12 - Financial Instruments (Tables) | 6 Months Ended |
Jun. 01, 2019 | |
Notes Tables | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | Fiscal Year of Expiration Interest Rate Notional Value Fair Value Pay EUR 2019 3.80% $ 44,912 $ (41 ) Receive USD 5.0530% Pay EUR 2020 1.95% $ 42,600 $ (2,348 ) Receive USD 4.3038% Pay EUR 2021 2.75% $ 133,340 $ 6,498 Receive USD 4.9330% Pay EUR 2022 3.00% $ 267,860 $ 13,531 Receive USD 5.1803% Total $ 488,712 $ 17,640 |
Derivative Instruments, Gain (Loss) [Table Text Block] | Three Months Ended Six Months Ended June 1, 2019 June 2, 2018 June 1, 2019 June 2, 2018 Cross-currency swap contracts $ 6,327 $ (19 ) $ 10,611 $ (4,513 ) Interest rate swap contracts (22,770 ) 7,405 (38,029 ) 26,839 |
Note 13 - Fair Value Measurem_2
Note 13 - Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 01, 2019 | |
Notes Tables | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | June 1, Fair Value Measurements Using: Description 2019 Level 1 Level 2 Level 3 Assets: Marketable securities $ 9,392 $ 9,392 $ - $ - Foreign exchange contract assets 5,549 - 5,549 - Interest rate swaps, fair value hedges 1,367 - 1,367 - Cross-currency cash flow hedges 17,640 17,640 Liabilities: Foreign exchange contract liabilities $ 1,133 $ - $ 1,133 $ - Interest rate swaps, cash flow hedges 8,082 - 8,082 - December 1, Fair Value Measurements Using: Description 2018 Level 1 Level 2 Level 3 Assets: Marketable securities $ 11,436 $ 11,436 $ - $ - Foreign exchange contract assets 4,933 - 4,933 - Interest rate swaps, cash flow hedges 28,924 - 28,924 - Cross-currency cash flow hedges 739 - 739 - Liabilities: Foreign exchange contract liabilities $ 2,156 $ - $ 2,156 $ - Interest rate swaps, fair value hedges 8,657 - 8,657 - |
Note 15 - Commitments and Con_2
Note 15 - Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 01, 2019 | |
Notes Tables | |
Schedule of Loss Contingencies by Contingency [Table Text Block] | Six Months Ended 3 Years Ended June 1, 2019 June 2, 2018 December 1, 2018 Lawsuits and claims settled 2 3 30 Settlement amounts $ 162 $ 195 $ 3,423 Insurance payments received or expected to be received $ 130 $ 186 $ 2,530 |
Note 16 - Operating Segments (T
Note 16 - Operating Segments (Tables) | 6 Months Ended |
Jun. 01, 2019 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended June 1, 2019 June 2, 2018 Inter- Segment Inter- Segment Trade Segment Operating Trade Segment Operating Revenue Revenue Income Revenue Revenue Income Americas Adhesives $ 259,782 $ 5,334 $ 26,514 $ 266,232 $ 5,791 $ 26,782 EIMEA 165,453 9,088 8,570 182,175 5,387 10,623 Asia Pacific 71,199 1,574 5,758 74,421 2,541 5,023 Construction Adhesives 111,244 (1 ) 7,107 122,891 - 12,042 Engineering Adhesives 151,905 188 24,431 143,668 - 18,827 Total $ 759,583 $ 72,380 $ 789,387 $ 73,297 Six Months Ended June 1, 2019 June 2, 2018 Inter- Segment Inter- Segment Trade Segment Operating Trade Segment Operating Revenue Revenue Income Revenue Revenue Income Americas Adhesives $ 501,732 $ 8,741 $ 42,208 $ 517,195 $ 10,896 $ 41,319 EIMEA 321,966 13,099 11,996 351,154 9,447 16,516 Asia Pacific 134,587 3,605 9,537 141,029 3,598 7,327 Construction Adhesives 193,700 (2 ) 3,768 221,148 (1 ) 12,503 Engineering Adhesives 280,533 186 39,083 271,940 - 28,438 Total $ 1,432,518 $ 106,592 $ 1,502,466 $ 106,103 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | Three Months Ended Six Months Ended June 1, June 2, June 1, June 2, 2019 2018 2019 2018 Segment operating income $ 72,380 $ 73,297 $ 106,592 $ 106,103 Other income, net 2,986 7,739 6,351 12,651 Interest expense (26,940 ) (28,017 ) (53,747 ) (55,562 ) Interest income 3,023 2,794 6,076 5,835 Income before income taxes and income from equity method investments $ 51,449 $ 55,813 $ 65,272 $ 69,027 |
Note 1 - Basis of Presentatio_2
Note 1 - Basis of Presentation (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 02, 2017 | Jun. 01, 2019 | Dec. 01, 2018 | |
Retained Earnings (Accumulated Deficit), Ending Balance | $ 1,318,984 | $ 1,286,289 | |
Accounting Standards Update 2014-09 [Member] | |||
Retained Earnings (Accumulated Deficit), Ending Balance | 1,776 | ||
Accounting Standards Update 2016-16 [Member] | |||
Retained Earnings (Accumulated Deficit), Ending Balance | $ 733 | ||
Accounting Standards Update 2016-15 [Member] | reclassification of Debt Prepayment and Extinguishment Costs From Operating to Financing Cash Outflows [Member] | |||
Current Period Reclassification Adjustment | $ 16,598 |
Note 1 - Basis of Presentatio_3
Note 1 - Basis of Presentation - Change in Accounting Principle (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 01, 2019 | Jun. 02, 2018 | Jun. 01, 2019 | Jun. 02, 2018 | |
Cost of sales | $ (541,124) | $ (569,201) | $ (1,034,134) | $ (1,096,767) |
Gross profit | 218,459 | 220,186 | 398,384 | 405,699 |
Selling, general and administrative expenses | (146,079) | (146,889) | (291,792) | (299,596) |
Other income, net | 2,986 | 7,739 | 6,351 | 12,651 |
Net income including non-controlling interest | 36,641 | 44,464 | 48,889 | 92,131 |
Net income attributable to H.B. Fuller | $ 36,641 | $ 44,451 | $ 48,885 | $ 92,133 |
Basic (in dollars per share) | $ 0.72 | $ 0.88 | $ 0.96 | $ 1.82 |
Diluted (in dollars per share) | $ 0.70 | $ 0.86 | $ 0.94 | $ 1.78 |
Previously Reported [Member] | ||||
Cost of sales | $ (567,002) | $ (1,092,376) | ||
Gross profit | 222,385 | 410,090 | ||
Selling, general and administrative expenses | (145,199) | (296,219) | ||
Other income, net | 3,850 | 4,883 | ||
Net income including non-controlling interest | 44,464 | 92,131 | ||
Net income attributable to H.B. Fuller | $ 44,451 | $ 92,133 | ||
Basic (in dollars per share) | $ 0.88 | $ 1.82 | ||
Diluted (in dollars per share) | $ 0.86 | $ 1.78 | ||
Restatement Adjustment [Member] | Accounting Standards Update 2017-07 [Member] | ||||
Cost of sales | $ (2,199) | $ (4,391) | ||
Gross profit | (2,199) | (4,391) | ||
Selling, general and administrative expenses | (1,690) | (3,377) | ||
Other income, net | 3,889 | 7,768 | ||
Net income including non-controlling interest | ||||
Net income attributable to H.B. Fuller | ||||
Basic (in dollars per share) | ||||
Diluted (in dollars per share) |
Note 2 - Acquisition and Dive_3
Note 2 - Acquisition and Divestiture (Details Textual) - USD ($) $ in Thousands | May 17, 2019 | Jun. 01, 2019 | Dec. 01, 2018 |
Goodwill, Ending Balance | $ 1,301,292 | $ 1,305,171 | |
Ramapo [Member] | |||
Payments to Acquire Businesses, Gross | $ 7,914 | ||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 3,400 | ||
Business Combination, Consideration Transferred, Receivables Settled | 2,166 | ||
Business Combination, Consideration Transferred, Total | $ 13,480 | ||
Goodwill, Ending Balance | 507 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill, Total | 8,800 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets, Excluding Intangible Assets | $ 4,173 |
Note 2 - Acquisition and Dive_4
Note 2 - Acquisition and Divestiture - Assets and Liabilities Held for Sale (Details) - Dalton Holdings [Member] - Disposal Group, Held-for-sale, Not Discontinued Operations [Member] $ in Thousands | Jun. 01, 2019USD ($) |
Current assets | $ 3,976 |
Non-current assets | 59,832 |
Current liabilities | 1,804 |
Non-current liabilities | $ 8,676 |
Note 3 - Restructuring Action_2
Note 3 - Restructuring Actions - Restructuring Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 01, 2019 | Jun. 02, 2018 | Jun. 01, 2019 | Jun. 02, 2018 | Dec. 01, 2018 | |
Expenses incurred | $ 1,284 | $ 1,324 | $ 2,737 | $ 3,153 | $ 8,881 |
Cost of Sales [Member] | |||||
Expenses incurred | 618 | 956 | 994 | 1,188 | |
Selling, General and Administrative Expenses [Member] | |||||
Expenses incurred | $ 666 | $ 368 | $ 1,743 | $ 1,965 |
Note 3 - Restructuring Action_3
Note 3 - Restructuring Actions - Restructuring Charges by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 01, 2019 | Jun. 02, 2018 | Jun. 01, 2019 | Jun. 02, 2018 | Dec. 01, 2018 | |
Expenses incurred | $ 1,284 | $ 1,324 | $ 2,737 | $ 3,153 | $ 8,881 |
Americas Adhesives [Member] | |||||
Expenses incurred | 63 | 53 | 339 | 856 | |
EIMEA [Member] | |||||
Expenses incurred | 265 | 567 | 845 | 525 | |
Asia Pacific [Member] | |||||
Expenses incurred | 4 | 47 | 3 | ||
Construction Adhesives [Member] | |||||
Expenses incurred | 779 | 545 | 1,098 | 1,354 | |
Engineering Adhesives [Member] | |||||
Expenses incurred | $ 173 | $ 159 | $ 408 | $ 415 |
Note 3 - Restructuring Action_4
Note 3 - Restructuring Actions - Restructuring Reserve (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 01, 2019 | Jun. 02, 2018 | Jun. 01, 2019 | Jun. 02, 2018 | Dec. 01, 2018 | |
Balance | $ 4,256 | $ 1,506 | $ 1,506 | ||
Expenses incurred | $ 1,284 | $ 1,324 | 2,737 | 3,153 | 8,881 |
Non-cash charges | (1,666) | ||||
Cash payments | (2,691) | (4,407) | |||
Foreign currency translation | (47) | (58) | |||
Balance | 4,255 | 4,255 | 4,256 | ||
Employee Related [Member] | |||||
Balance | 4,256 | 1,486 | 1,486 | ||
Expenses incurred | 1,337 | 6,223 | |||
Non-cash charges | |||||
Cash payments | (1,373) | (3,395) | |||
Foreign currency translation | (47) | (58) | |||
Balance | 4,173 | 4,173 | 4,256 | ||
Asset Related [Member] | |||||
Balance | |||||
Expenses incurred | 874 | 2,353 | |||
Non-cash charges | (1,666) | ||||
Cash payments | (792) | (687) | |||
Foreign currency translation | |||||
Balance | 82 | 82 | |||
Other Restructuring [Member] | |||||
Balance | $ 20 | 20 | |||
Expenses incurred | 526 | 305 | |||
Non-cash charges | |||||
Cash payments | (526) | (325) | |||
Foreign currency translation | |||||
Balance |
Note 4 - Inventories - Inventor
Note 4 - Inventories - Inventories (Details) - USD ($) $ in Thousands | Jun. 01, 2019 | Dec. 01, 2018 |
Raw materials | $ 175,069 | $ 169,228 |
Finished goods | 207,543 | 179,233 |
Total inventories | $ 382,612 | $ 348,461 |
Note 5 - Goodwill and Other I_3
Note 5 - Goodwill and Other Intangible Assets (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 01, 2019 | Jun. 02, 2018 | Jun. 01, 2019 | Jun. 02, 2018 | Dec. 01, 2018 | |
Amortization of Intangible Assets, Total | $ 18,978 | $ 19,276 | $ 38,190 | $ 38,519 | |
Indefinite Lived Trademarks and Trade Names | $ 487 | $ 487 | $ 493 |
Note 5 - Goodwill and Other I_4
Note 5 - Goodwill and Other Intangible Assets - Goodwill by Segment (Details) $ in Thousands | 6 Months Ended |
Jun. 01, 2019USD ($) | |
Goodwill | $ 1,305,171 |
Acquisition | 507 |
Currency impact | (4,386) |
Goodwill | 1,301,292 |
Americas Adhesives [Member] | |
Goodwill | 339,800 |
Acquisition | 507 |
Currency impact | (443) |
Goodwill | 339,864 |
EIMEA [Member] | |
Goodwill | 155,552 |
Acquisition | |
Currency impact | (2,715) |
Goodwill | 152,837 |
Asia Pacific [Member] | |
Goodwill | 21,428 |
Acquisition | |
Currency impact | (208) |
Goodwill | 21,220 |
Construction Adhesives [Member] | |
Goodwill | 310,720 |
Acquisition | |
Currency impact | 75 |
Goodwill | 310,795 |
Engineering Adhesives [Member] | |
Goodwill | 477,671 |
Acquisition | |
Currency impact | (1,095) |
Goodwill | $ 476,576 |
Note 5 - Goodwill and Other I_5
Note 5 - Goodwill and Other Intangible Assets - Amortizable Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 01, 2019 | Dec. 01, 2018 |
Original cost | $ 1,167,341 | $ 1,172,384 |
Accumulated amortization | (291,323) | (264,726) |
Net identifiable intangibles | 876,018 | 907,658 |
Purchased Technology And Patents [Member] | ||
Original cost | 114,577 | 118,930 |
Accumulated amortization | (43,749) | (41,503) |
Net identifiable intangibles | 70,828 | 77,427 |
Customer Relationships [Member] | ||
Original cost | 959,237 | 953,929 |
Accumulated amortization | (202,260) | (175,318) |
Net identifiable intangibles | 756,977 | 778,611 |
Trade Names [Member] | ||
Original cost | 66,067 | 65,975 |
Accumulated amortization | (23,547) | (21,573) |
Net identifiable intangibles | 42,520 | 44,402 |
Other Intangible Assets [Member] | ||
Original cost | 27,460 | 33,550 |
Accumulated amortization | (21,767) | (26,332) |
Net identifiable intangibles | $ 5,693 | $ 7,218 |
Note 5 - Goodwill and Other I_6
Note 5 - Goodwill and Other Intangible Assets - Estimated Aggregate Amortization Expense (Details) $ in Thousands | Jun. 01, 2019USD ($) |
2019 | $ 38,370 |
2020 | 72,311 |
2021 | 70,766 |
2022 | 69,564 |
2023 | 66,982 |
Thereafter | $ 558,025 |
Note 6 - Accounting for Share_3
Note 6 - Accounting for Share-based Compensation (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 01, 2019 | Jun. 02, 2018 | Jun. 01, 2019 | Jun. 02, 2018 | |
Fair Value Options Granted During Period Value Share-based Compensation | $ 83 | $ 1,392 | $ 9,413 | $ 9,037 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 471 | 1,172 | 1,382 | 1,811 |
Proceeds from Stock Options Exercised | 771 | $ 1,625 | 1,837 | $ 2,387 |
Total Fair Value of Nonvested Restricted Stock | $ 22,531 | $ 22,531 | ||
Repurchased Restricted Stock Shares | 2,746 | 3,645 | 60,666 | 66,936 |
Deferred Compensation Plan, Matching Percentage | 10.00% | |||
Share-based Payment Arrangement, Option [Member] | ||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 10,059 | $ 10,059 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 73 days | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | 12,458 | $ 12,458 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 73 days | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | 435 | $ 577 | $ 8,281 | $ 8,477 |
Selling, General and Administrative Expenses [Member] | ||||
Share-based Payment Arrangement, Expense | $ 8,266 | $ 4,848 | $ 14,172 | $ 10,434 |
Note 6 - Accounting for Share_4
Note 6 - Accounting for Share-based Compensation - Fair Value of Options Granted (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 01, 2019 | Jun. 02, 2018 | Jun. 01, 2019 | Jun. 02, 2018 | |
Expected life (Year) | 4 years 273 days | 4 years 273 days | 4 years 273 days | 4 years 273 days |
Weighted-average expected volatility | 24.70% | 23.56% | 24.26% | 23.30% |
Weighted-average expected dividend yield | 1.42% | 1.21% | 1.40% | 1.14% |
Weighted-average fair value of grants (in dollars per share) | $ 9.49 | $ 11.35 | $ 9.80 | $ 11.37 |
Minimum [Member] | ||||
Expected volatility | 24.39% | 23.42% | 24.25% | 23.18% |
Risk-free interest rate | 2.17% | 2.54% | 2.17% | 2.38% |
Expected dividend yield range | 1.26% | 1.21% | 1.26% | 1.12% |
Maximum [Member] | ||||
Expected volatility | 24.76% | 23.58% | 24.76% | 23.58% |
Risk-free interest rate | 2.31% | 2.90% | 2.55% | 2.90% |
Expected dividend yield range | 1.45% | 1.24% | 1.45% | 1.24% |
Note 6 - Accounting for Share_5
Note 6 - Accounting for Share-based Compensation - Stock Option Activity (Details) | 6 Months Ended |
Jun. 01, 2019$ / sharesshares | |
Outstanding Options (in shares) | shares | 4,466,106 |
Outstanding Options, weighted-average exercise price (in dollars per share) | $ / shares | $ 44.72 |
Granted (in shares) | shares | 960,774 |
Granted, weighted-average exercise price (in dollars per share) | $ / shares | $ 45.47 |
Exercised (in shares) | shares | (65,637) |
Exercised, weighted-average exercise price (in dollars per share) | $ / shares | $ 27.98 |
Forfeited or cancelled (in shares) | shares | (13,632) |
Forfeited or cancelled, weighted-average exercise price (in dollars per share) | $ / shares | $ 47.37 |
Outstanding Options (in shares) | shares | 5,347,611 |
Outstanding Options, weighted-average exercise price (in dollars per share) | $ / shares | $ 45.05 |
Note 6 - Accounting for Share_6
Note 6 - Accounting for Share-based Compensation - Nonvested Restricted Stock Activity (Details) - Restricted Stock [Member] - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 01, 2019 | Dec. 01, 2018 | |
Nonvested (in shares) | 414,353 | |
Nonvested, weighted average grant date fair value (in dollars per share) | $ 47.45 | |
Nonvested, weighted average remaining life (Year) | 1 year 36 days | 1 year |
Granted (in shares) | 273,090 | |
Granted, weighted average grant date fair value (in dollars per share) | $ 44.55 | |
Granted, weighted average remaining life (Year) | 2 years 219 days | |
Vested (in shares) | (182,427) | |
Vested, weighted average grant date fair value (in dollars per share) | $ 45.39 | |
Forfeited (in shares) | (22,629) | |
Forfeited, weighted average grant date fair value (in dollars per share) | $ 44.87 | |
Forfeited, weighted average remaining life (Year) | 146 days | |
Nonvested (in shares) | 482,387 | 414,353 |
Nonvested, weighted average grant date fair value (in dollars per share) | $ 46.71 | $ 47.45 |
Note 6 - Accounting for Share_7
Note 6 - Accounting for Share-based Compensation - Deferred Compensation Units (Details) | 6 Months Ended |
Jun. 01, 2019shares | |
Units outstanding (in shares) | 509,522 |
Participant contributions (in shares) | 17,523 |
Company match contributions (in shares) | 1,752 |
Payouts (in shares) | (4,507) |
Units outstanding (in shares) | 524,290 |
Non Employee Directors [Member] | |
Units outstanding (in shares) | 479,787 |
Participant contributions (in shares) | 10,874 |
Company match contributions (in shares) | 1,087 |
Payouts (in shares) | |
Units outstanding (in shares) | 491,748 |
Employees [Member] | |
Units outstanding (in shares) | 29,735 |
Participant contributions (in shares) | 6,649 |
Company match contributions (in shares) | 665 |
Payouts (in shares) | (4,507) |
Units outstanding (in shares) | 32,542 |
Note 7 - Components of Net Pe_3
Note 7 - Components of Net Periodic Cost (Benefit) Related to Pension and Other Postretirement Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 01, 2019 | Jun. 02, 2018 | Jun. 01, 2019 | Jun. 02, 2018 | |
Pension Plan [Member] | UNITED STATES | ||||
Service cost | $ 1 | $ 14 | $ 2 | $ 28 |
Interest cost | 3,673 | 3,419 | 7,346 | 6,837 |
Expected return on assets | (6,326) | (6,541) | (12,652) | (13,083) |
Prior service cost (benefit) | 3 | 7 | 6 | 14 |
Actuarial loss | 1,169 | 1,476 | 2,338 | 2,952 |
Net periodic (benefit) cost | (1,480) | (1,625) | (2,960) | (3,252) |
Pension Plan [Member] | Foreign Plan [Member] | ||||
Service cost | 562 | 582 | 1,130 | 1,180 |
Interest cost | 1,189 | 1,181 | 2,373 | 2,385 |
Expected return on assets | (2,606) | (2,811) | (5,193) | (5,675) |
Prior service cost (benefit) | 16 | (1) | 32 | (2) |
Actuarial loss | 786 | 732 | 1,575 | 1,481 |
Net periodic (benefit) cost | (53) | (317) | (83) | (631) |
Other Postretirement Benefits Plan [Member] | ||||
Service cost | 25 | 43 | 49 | 86 |
Interest cost | 388 | 371 | 775 | 742 |
Expected return on assets | (1,754) | (1,724) | (3,507) | (3,448) |
Prior service cost (benefit) | ||||
Actuarial loss | 9 | 15 | 17 | 30 |
Net periodic (benefit) cost | $ (1,332) | $ (1,295) | $ (2,666) | $ (2,590) |
Note 8 - Revenue (Details Textu
Note 8 - Revenue (Details Textual) $ in Thousands | Dec. 02, 2018USD ($) |
Revenue, Practical Expedient, Adjustment to Retained Earnings | $ 1,776 |
Note 8 - Revenue - Disaggregate
Note 8 - Revenue - Disaggregated Revenue Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 01, 2019 | Jun. 02, 2018 | Jun. 01, 2019 | Jun. 02, 2018 | |
Revenue | $ 759,583 | $ 789,387 | $ 1,432,518 | $ 1,502,466 |
Durable Assembly [Member] | ||||
Revenue | 152,790 | 166,722 | 289,333 | 313,352 |
Hygiene [Member] | ||||
Revenue | 102,273 | 108,138 | 205,168 | 216,595 |
Packaging [Member] | ||||
Revenue | 121,626 | 122,937 | 232,942 | 234,813 |
Paper and Other [Member] | ||||
Revenue | 119,745 | 125,031 | 230,842 | 244,618 |
Construction [Member] | ||||
Revenue | 111,244 | 122,891 | 193,700 | 221,148 |
Engineering [Member] | ||||
Revenue | 151,905 | 143,668 | 280,533 | 271,940 |
Americas Adhesives [Member] | ||||
Revenue | 259,782 | 266,232 | 501,732 | 517,195 |
Americas Adhesives [Member] | Durable Assembly [Member] | ||||
Revenue | 68,516 | 76,183 | 129,844 | 142,717 |
Americas Adhesives [Member] | Hygiene [Member] | ||||
Revenue | 31,196 | 30,065 | 61,225 | 61,194 |
Americas Adhesives [Member] | Packaging [Member] | ||||
Revenue | 72,903 | 72,014 | 142,305 | 139,542 |
Americas Adhesives [Member] | Paper and Other [Member] | ||||
Revenue | 87,167 | 87,970 | 168,358 | 173,742 |
Americas Adhesives [Member] | Construction [Member] | ||||
Revenue | ||||
Americas Adhesives [Member] | Engineering [Member] | ||||
Revenue | ||||
EIMEA [Member] | ||||
Revenue | 165,453 | 182,175 | 321,966 | 351,153 |
EIMEA [Member] | Durable Assembly [Member] | ||||
Revenue | 65,607 | 72,388 | 126,789 | 137,287 |
EIMEA [Member] | Hygiene [Member] | ||||
Revenue | 42,436 | 47,646 | 87,994 | 96,818 |
EIMEA [Member] | Packaging [Member] | ||||
Revenue | 34,389 | 36,746 | 63,509 | 67,970 |
EIMEA [Member] | Paper and Other [Member] | ||||
Revenue | 23,021 | 25,395 | 43,674 | 49,078 |
EIMEA [Member] | Construction [Member] | ||||
Revenue | ||||
EIMEA [Member] | Engineering [Member] | ||||
Revenue | ||||
Asia Pacific [Member] | ||||
Revenue | 71,199 | 74,421 | 134,587 | 141,030 |
Asia Pacific [Member] | Durable Assembly [Member] | ||||
Revenue | 18,667 | 18,151 | 32,700 | 33,348 |
Asia Pacific [Member] | Hygiene [Member] | ||||
Revenue | 28,641 | 30,427 | 55,949 | 58,583 |
Asia Pacific [Member] | Packaging [Member] | ||||
Revenue | 14,334 | 14,177 | 27,128 | 27,301 |
Asia Pacific [Member] | Paper and Other [Member] | ||||
Revenue | 9,557 | 11,666 | 18,810 | 21,798 |
Asia Pacific [Member] | Construction [Member] | ||||
Revenue | ||||
Asia Pacific [Member] | Engineering [Member] | ||||
Revenue | ||||
Construction Adhesives [Member] | ||||
Revenue | 111,244 | 122,891 | 193,700 | 221,148 |
Construction Adhesives [Member] | Durable Assembly [Member] | ||||
Revenue | ||||
Construction Adhesives [Member] | Hygiene [Member] | ||||
Revenue | ||||
Construction Adhesives [Member] | Packaging [Member] | ||||
Revenue | ||||
Construction Adhesives [Member] | Paper and Other [Member] | ||||
Revenue | ||||
Construction Adhesives [Member] | Construction [Member] | ||||
Revenue | 111,244 | 122,891 | 193,700 | 221,148 |
Construction Adhesives [Member] | Engineering [Member] | ||||
Revenue | ||||
Engineering Adhesives [Member] | ||||
Revenue | 151,905 | 143,668 | 280,533 | 271,940 |
Engineering Adhesives [Member] | Durable Assembly [Member] | ||||
Revenue | ||||
Engineering Adhesives [Member] | Hygiene [Member] | ||||
Revenue | ||||
Engineering Adhesives [Member] | Packaging [Member] | ||||
Revenue | ||||
Engineering Adhesives [Member] | Paper and Other [Member] | ||||
Revenue | ||||
Engineering Adhesives [Member] | Construction [Member] | ||||
Revenue | ||||
Engineering Adhesives [Member] | Engineering [Member] | ||||
Revenue | $ 151,905 | $ 143,668 | $ 280,533 | $ 271,940 |
Note 9 - Accumulated Other Co_3
Note 9 - Accumulated Other Comprehensive Income (Loss) - Comprehensive Income (Loss) Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 01, 2019 | Jun. 02, 2018 | Jun. 01, 2019 | Jun. 02, 2018 | ||
Net income including non-controlling interests | $ 36,641 | $ 44,451 | $ 48,885 | $ 92,133 | |
Non-controlling interests | 13 | 4 | (2) | ||
Foreign currency translation adjustment¹, pretax | [1] | (39,313) | (40,752) | (21,620) | (19,284) |
Foreign currency translation adjustment¹, tax | [1] | ||||
Foreign currency translation adjustment¹ | [1] | (39,313) | (40,752) | (21,620) | (19,284) |
Foreign currency translation adjustment¹, non-controlling interests | [1] | (4) | (5) | 2 | (18) |
Defined benefit pension plans adjustment², pretax | [2] | 1,982 | 2,238 | 3,968 | 4,476 |
Defined benefit pension plans adjustment², tax | [2] | (502) | (578) | (1,006) | (1,156) |
Defined benefit pension plans adjustment² | [2] | 1,480 | 1,660 | 2,962 | 3,320 |
Interest rate swap³, pretax | [3] | (22,770) | 7,405 | (38,029) | 26,839 |
Interest rate swap³, tax | [3] | 5,692 | (2,821) | 9,507 | (6,303) |
Interest rate swap³ | [3] | (17,078) | 4,584 | (28,522) | 20,536 |
Cash flow hedges³, pretax | [3] | 6,327 | (19) | 10,611 | (4,513) |
Cash flow hedges³, tax | [3] | (225) | 7 | (423) | (2,340) |
Cash flow hedges³ | [3] | 6,102 | (12) | 10,188 | (6,853) |
Other comprehensive income (loss), pretax | (53,774) | (31,128) | (45,070) | 7,518 | |
Other comprehensive income (loss), tax | 4,965 | (3,392) | 8,078 | (9,799) | |
Other comprehensive income (loss) | (48,809) | (34,520) | (36,992) | (2,281) | |
Other comprehensive income (loss), non-controlling interests | (4) | (5) | 2 | (18) | |
Comprehensive income (loss) | (12,168) | 9,931 | 11,893 | 89,852 | |
Comprehensive income (loss), non-controlling interests | $ (4) | $ 8 | $ 6 | $ (20) | |
[1] | Income taxes are not provided for foreign currency translation relating to permanent investments in international subsidiaries. | ||||
[2] | Loss reclassified from accumulated other comprehensive income ("AOCI") into earnings as part of net periodic cost related to pension and other postretirement benefit plans is reported in cost of sales and SG&A expense. | ||||
[3] | Income (loss) reclassified from AOCI into earnings is reported in other income (expense), net. |
Note 9 - Accumulated Other Co_4
Note 9 - Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | Jun. 01, 2019 | Dec. 01, 2018 |
Accumulated other comprehensive loss | $ (317,144) | $ (280,152) |
AOCI Including Portion Attributable to Noncontrolling Interest [Member] | ||
Foreign currency translation adjustment | (149,020) | (127,398) |
Defined benefit pension plans adjustment, net of taxes | (141,178) | (144,140) |
Interest rate swap, net of taxes | (6,829) | 21,693 |
Cash flow hedges, net of taxes | (1,869) | (12,057) |
Reclassification of AOCI tax effects | (18,341) | (18,341) |
Accumulated other comprehensive loss | (317,237) | (280,243) |
AOCI Attributable to Parent [Member] | ||
Foreign currency translation adjustment | (148,927) | (127,307) |
Defined benefit pension plans adjustment, net of taxes | (141,178) | (144,140) |
Interest rate swap, net of taxes | (6,829) | 21,693 |
Cash flow hedges, net of taxes | (1,869) | (12,057) |
Reclassification of AOCI tax effects | (18,341) | (18,341) |
Accumulated other comprehensive loss | (317,144) | (280,152) |
AOCI Attributable to Noncontrolling Interest [Member] | ||
Foreign currency translation adjustment | (93) | (91) |
Defined benefit pension plans adjustment, net of taxes | ||
Interest rate swap, net of taxes | ||
Cash flow hedges, net of taxes | ||
Reclassification of AOCI tax effects | ||
Accumulated other comprehensive loss | $ (93) | $ (91) |
Note 9 - Accumulated Other Co_5
Note 9 - Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Details) (Parentheticals) - USD ($) $ in Thousands | Jun. 01, 2019 | Dec. 01, 2018 |
AOCI Including Portion Attributable to Noncontrolling Interest [Member] | ||
Tax on defined benefit pension plans adjustment | $ 74,077 | $ 75,083 |
Tax on interest swap | 2,276 | (7,231) |
Tax on cash flow hedge | 165 | 588 |
AOCI Attributable to Parent [Member] | ||
Tax on defined benefit pension plans adjustment | 74,077 | 75,083 |
Tax on interest swap | 2,276 | (7,231) |
Tax on cash flow hedge | $ 165 | $ 588 |
Note 10 - Income Taxes (Details
Note 10 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 01, 2019 | Dec. 01, 2018 | |
Unrecognized Tax Benefits, Ending Balance | $ 10,115 | $ 8,420 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued, Total | 942 | |
Unrecognized Tax Benefits, Period Increase (Decrease), Total | $ 1,695 |
Note 11 - Earnings Per Share (D
Note 11 - Earnings Per Share (Details Textual) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 01, 2019 | Jun. 02, 2018 | Jun. 01, 2019 | Jun. 02, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,751,956 | 2,223,223 | 3,020,604 | 2,410,032 |
Note 11 - Earnings Per Share -
Note 11 - Earnings Per Share - Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 01, 2019 | Jun. 02, 2018 | Jun. 01, 2019 | Jun. 02, 2018 | |
Basic (in shares) | 50,902 | 50,551 | 50,827 | 50,511 |
Equivalent shares from share-based compensations plans (in shares) | 1,203 | 1,295 | 1,176 | 1,361 |
Weighted-average common and common equivalent shares - diluted (in shares) | 52,105 | 51,846 | 52,003 | 51,872 |
Note 12 - Financial Instrumen_3
Note 12 - Financial Instruments (Details Textual) - USD ($) $ in Thousands | Apr. 23, 2018 | Apr. 22, 2018 | Jun. 01, 2019 | Jun. 02, 2018 | Dec. 01, 2018 | Mar. 26, 2018 | Mar. 09, 2018 | Feb. 27, 2018 | Oct. 20, 2017 | Feb. 24, 2017 | Feb. 14, 2017 | Oct. 07, 2015 |
Foreign Currency Cash Flow Hedge Asset at Fair Value | $ 17,640 | $ 739 | ||||||||||
Interest Rate Fair Value Hedge Liability at Fair Value | 1,367 | $ 8,657 | ||||||||||
Other Operating Income (Expense) [Member] | ||||||||||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net, Total | 4,415 | $ 5,251 | ||||||||||
Public Notes [Member] | ||||||||||||
Debt Instrument, Face Amount | $ 300,000 | |||||||||||
Term Loan B [Member] | ||||||||||||
Debt Instrument, Face Amount | $ 2,150,000 | $ 2,150,000 | $ 2,150,000 | $ 2,150,000 | ||||||||
Term Loan B [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||||
Derivative, Fixed Interest Rate | 4.49% | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | 2.25% | ||||||||||
Cross Currency Interest Rate Contract [Member] | ||||||||||||
Derivative, Notional Amount | 488,712 | 401,200 | $ 42,600 | $ 44,912 | ||||||||
Foreign Currency Cash Flow Hedge Asset at Fair Value | 17,640 | |||||||||||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax, Ending Balance | 1,869 | |||||||||||
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months | 440 | |||||||||||
Cross Currency Interest Rate Contract [Member] | Other Assets [Member] | ||||||||||||
Foreign Currency Cash Flow Hedge Asset at Fair Value | 17,640 | |||||||||||
Interest Rate Swap [Member] | ||||||||||||
Derivative, Amount of Hedged Item | 1,450,000 | $ 100,000 | $ 100,000 | $ 200,000 | $ 1,050,000 | |||||||
Derivative, Fixed Interest Rate | 4.312% | 4.589% | 4.0275% | |||||||||
Interest Rate Swap [Member] | Other Assets [Member] | ||||||||||||
Interest Rate Fair Value Hedge Asset at Fair Value | $ 8,082 | |||||||||||
Interest Rate Swap Related to Public Notes [Member] | ||||||||||||
Derivative, Amount of Hedged Item | $ 150,000 | |||||||||||
Interest Rate Swap Related to Public Notes [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||||
Derivative, Variable Interest Rate | 1.86% |
Note 12 - Financial Instrumen_4
Note 12 - Financial Instruments - Swaps Outstanding (Details) - USD ($) $ in Thousands | 6 Months Ended | ||||
Jun. 01, 2019 | Dec. 01, 2018 | Oct. 20, 2017 | Feb. 24, 2017 | Oct. 07, 2015 | |
Foreign Currency Cash Flow Hedge Asset at Fair Value | $ 17,640 | $ 739 | |||
Cross Currency Interest Rate Contract [Member] | |||||
Derivative, Notional Amount | 488,712 | $ 401,200 | $ 42,600 | $ 44,912 | |
Foreign Currency Cash Flow Hedge Asset at Fair Value | $ 17,640 | ||||
Cross Currency Interest Rate Contract [Member] | Currency Swap 1 [Member] | |||||
Fiscal Year of Expiration | 2019 | ||||
Interest rate minimum | 3.80% | ||||
Derivative, Notional Amount | $ 44,912 | ||||
Fair Value | $ (41) | ||||
Interest rate maximum | 5.053% | ||||
Cross Currency Interest Rate Contract [Member] | Currency Swap 2 [Member] | |||||
Fiscal Year of Expiration | 2020 | ||||
Interest rate minimum | 1.95% | ||||
Derivative, Notional Amount | $ 42,600 | ||||
Fair Value | $ (2,348) | ||||
Interest rate maximum | 4.3038% | ||||
Cross Currency Interest Rate Contract [Member] | Currency Swap 3 [Member] | |||||
Fiscal Year of Expiration | 2021 | ||||
Interest rate minimum | 2.75% | ||||
Derivative, Notional Amount | $ 133,340 | ||||
Interest rate maximum | 4.933% | ||||
Foreign Currency Cash Flow Hedge Asset at Fair Value | $ 6,498 | ||||
Cross Currency Interest Rate Contract [Member] | Currency Swap 4 [Member] | |||||
Fiscal Year of Expiration | 2022 | ||||
Interest rate minimum | 3.00% | ||||
Derivative, Notional Amount | $ 267,860 | ||||
Interest rate maximum | 5.1803% | ||||
Foreign Currency Cash Flow Hedge Asset at Fair Value | $ 13,531 |
Note 12 - Financial Instrumen_5
Note 12 - Financial Instruments - Gains (Losses) on Derivative Instruments (Details) - Cash Flow Hedging [Member] - Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 01, 2019 | Jun. 02, 2018 | Jun. 01, 2019 | Jun. 02, 2018 | |
Currency Swap [Member] | ||||
Pretax gain (loss) recognized in other comprehensive income | $ 6,327 | $ (19) | $ 10,611 | $ (4,513) |
Interest Rate Swap [Member] | ||||
Pretax gain (loss) recognized in other comprehensive income | $ (22,770) | $ 7,405 | $ (38,029) | $ 26,839 |
Note 13 - Fair Value Measurem_3
Note 13 - Fair Value Measurements (Details Textual) - USD ($) $ in Thousands | Jun. 01, 2019 | Dec. 01, 2018 |
Long-term Debt, Fair Value | $ 2,130,945 | $ 2,123,447 |
Note 13 - Fair Value Measurem_4
Note 13 - Fair Value Measurements - Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 01, 2019 | Dec. 01, 2018 |
Assets: | ||
Marketable securities | $ 9,392 | $ 11,436 |
Foreign exchange contract assets | 5,549 | 4,933 |
Interest Rate Fair Value Hedge Liability at Fair Value | 1,367 | 8,657 |
Foreign Currency Cash Flow Hedge Asset at Fair Value | 17,640 | 739 |
Interest rate swaps, cash flow hedges | 8,082 | 28,924 |
Liabilities: | ||
Foreign exchange contract liabilities | 1,133 | 2,156 |
Interest rate swaps, cash flow hedges | 8,082 | 28,924 |
Interest Rate Fair Value Hedge Liability at Fair Value | 1,367 | 8,657 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets: | ||
Marketable securities | 9,392 | 11,436 |
Foreign exchange contract assets | ||
Interest Rate Fair Value Hedge Liability at Fair Value | ||
Foreign Currency Cash Flow Hedge Asset at Fair Value | ||
Interest rate swaps, cash flow hedges | ||
Liabilities: | ||
Foreign exchange contract liabilities | ||
Interest rate swaps, cash flow hedges | ||
Interest Rate Fair Value Hedge Liability at Fair Value | ||
Fair Value, Inputs, Level 2 [Member] | ||
Assets: | ||
Marketable securities | ||
Foreign exchange contract assets | 5,549 | 4,933 |
Interest Rate Fair Value Hedge Liability at Fair Value | 1,367 | 8,657 |
Foreign Currency Cash Flow Hedge Asset at Fair Value | 17,640 | 739 |
Interest rate swaps, cash flow hedges | 8,082 | 28,924 |
Liabilities: | ||
Foreign exchange contract liabilities | 1,133 | 2,156 |
Interest rate swaps, cash flow hedges | 8,082 | 28,924 |
Interest Rate Fair Value Hedge Liability at Fair Value | 1,367 | 8,657 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets: | ||
Marketable securities | ||
Foreign exchange contract assets | ||
Interest Rate Fair Value Hedge Liability at Fair Value | ||
Foreign Currency Cash Flow Hedge Asset at Fair Value | ||
Interest rate swaps, cash flow hedges | ||
Liabilities: | ||
Foreign exchange contract liabilities | ||
Interest rate swaps, cash flow hedges | ||
Interest Rate Fair Value Hedge Liability at Fair Value |
Note 14 - Share Repurchase Pr_2
Note 14 - Share Repurchase Program (Details Textual) - USD ($) shares in Thousands, $ in Billions | 6 Months Ended | ||
Jun. 01, 2019 | Jun. 02, 2018 | Apr. 06, 2017 | |
Stock Repurchased During Period, Shares | 0 | 0 | |
The 2017 Share Repurchase Program [Member] | |||
Stock Repurchase Program, Authorized Amount | $ 0.2 |
Note 15 - Commitments and Con_3
Note 15 - Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 01, 2019 | Dec. 01, 2018 | |
Accrued Environmental Loss Contingencies, Noncurrent | $ 10,116 | $ 10,665 |
Penalties from Possible Resale of Products by Customers Contrary to U.S. Law and Regulations [Member] | Minimum [Member] | ||
Loss Contingency, Estimate of Possible Loss | 0 | |
Penalties from Possible Resale of Products by Customers Contrary to U.S. Law and Regulations [Member] | Maximum [Member] | ||
Loss Contingency, Estimate of Possible Loss | 10,000 | |
Facility in Simpsonville, South Carolina [Member] | ||
Operating Leases, Rent Expense, Total | $ 4,570 | $ 4,784 |
Note 15 - Commitments and Con_4
Note 15 - Commitments and Contingencies - Asbestos Related Lawsuits and Claims (Details) - Asbestos Related Lawsuits and Claims [Member] $ in Thousands | 6 Months Ended | 36 Months Ended | |
Jun. 01, 2019USD ($) | Jun. 02, 2018USD ($) | Dec. 01, 2018USD ($) | |
Lawsuits and claims settled | 2 | 3 | 30 |
Settlement amounts | $ 162 | $ 195 | $ 3,423 |
Insurance payments received or expected to be received | $ 130 | $ 186 | $ 2,530 |
Note 16 - Operating Segments (D
Note 16 - Operating Segments (Details Textual) | 6 Months Ended |
Jun. 01, 2019 | |
Number of Reportable Segments | 5 |
Note 16 - Operating Segments -
Note 16 - Operating Segments - Reportable Operating Segment Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 01, 2019 | Jun. 02, 2018 | Jun. 01, 2019 | Jun. 02, 2018 | |
Revenue | $ 759,583 | $ 789,387 | $ 1,432,518 | $ 1,502,466 |
Segment Operating Income (Loss) | 72,380 | 73,297 | 106,592 | 106,103 |
Americas Adhesives [Member] | ||||
Revenue | 259,782 | 266,232 | 501,732 | 517,195 |
EIMEA [Member] | ||||
Revenue | 165,453 | 182,175 | 321,966 | 351,153 |
Asia Pacific [Member] | ||||
Revenue | 71,199 | 74,421 | 134,587 | 141,030 |
Construction Adhesives [Member] | ||||
Revenue | 111,244 | 122,891 | 193,700 | 221,148 |
Engineering Adhesives [Member] | ||||
Revenue | 151,905 | 143,668 | 280,533 | 271,940 |
Operating Segments [Member] | ||||
Revenue | 759,583 | 789,387 | 1,432,518 | 1,502,466 |
Segment Operating Income (Loss) | 72,380 | 73,297 | 106,592 | 106,103 |
Operating Segments [Member] | Americas Adhesives [Member] | ||||
Revenue | 259,782 | 266,232 | 501,732 | 517,195 |
Segment Operating Income (Loss) | 26,514 | 26,782 | 42,208 | 41,319 |
Operating Segments [Member] | EIMEA [Member] | ||||
Revenue | 165,453 | 182,175 | 321,966 | 351,154 |
Segment Operating Income (Loss) | 8,570 | 10,623 | 11,996 | 16,516 |
Operating Segments [Member] | Asia Pacific [Member] | ||||
Revenue | 71,199 | 74,421 | 134,587 | 141,029 |
Segment Operating Income (Loss) | 5,758 | 5,023 | 9,537 | 7,327 |
Operating Segments [Member] | Construction Adhesives [Member] | ||||
Revenue | 111,244 | 122,891 | 193,700 | 221,148 |
Segment Operating Income (Loss) | 7,107 | 12,042 | 3,768 | 12,503 |
Operating Segments [Member] | Engineering Adhesives [Member] | ||||
Revenue | 151,905 | 143,668 | 280,533 | 271,940 |
Segment Operating Income (Loss) | 24,431 | 18,827 | 39,083 | 28,438 |
Intersegment Eliminations [Member] | ||||
Revenue | ||||
Intersegment Eliminations [Member] | Americas Adhesives [Member] | ||||
Revenue | 5,334 | 5,791 | 8,741 | 10,896 |
Intersegment Eliminations [Member] | EIMEA [Member] | ||||
Revenue | 9,088 | 5,387 | 13,099 | 9,447 |
Intersegment Eliminations [Member] | Asia Pacific [Member] | ||||
Revenue | 1,574 | 2,541 | 3,605 | 3,598 |
Intersegment Eliminations [Member] | Construction Adhesives [Member] | ||||
Revenue | (1) | (2) | (1) | |
Intersegment Eliminations [Member] | Engineering Adhesives [Member] | ||||
Revenue | $ 188 | $ 186 |
Note 16 - Operating Segments _2
Note 16 - Operating Segments - Reconciliation of Segment Operating Income to Income From Continuing Operations Before Income Taxes and Income From Equity Method Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 01, 2019 | Jun. 02, 2018 | Jun. 01, 2019 | Jun. 02, 2018 | |
Segment operating income | $ 72,380 | $ 73,297 | $ 106,592 | $ 106,103 |
Other income, net | 2,986 | 7,739 | 6,351 | 12,651 |
Interest expense | (26,940) | (28,017) | (53,747) | (55,562) |
Interest income | 3,023 | 2,794 | 6,076 | 5,835 |
Income before income taxes and income from equity method investments | $ 51,449 | $ 55,813 | $ 65,272 | $ 69,027 |