D-40 Company
Notes to Consolidated Financial Statements
August 31, 2008, 2007 and 2006
Note 13. Business Segments and Foreign Operations
The Company evaluates the performance of its segments and allocates resources to them based on sales, operating income and expected return. The Company is organized based on geographic location. Segment data does not include inter-segment revenues and incorporates costs from corporate headquarters into the Americas segment, without allocation to other segments. The Company’s segments are run independently and, as a result, there are few costs that could be considered only costs from headquarters that would qualify for allocation to other segments. The most significant portions of costs from headquarters relate to the Americas segment both as a percentage of time and sales. Therefore, any allocation to other segments would be arbitrary.
The tables below present information about reportable segments and net sales by product line as of and for the fiscal years ended August 31, 2008, 2007 and 2006 (in thousands):
| 2008 | Americas | Europe | Asia- Pacific |
Total | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net sales | $ | 176,885 | $ | 110,504 | $ | 29,729 | $ | 317,118 | |||||||
| Income from operations(1) | $ | 18,082 | $ | 20,235 | $ | 4,379 | $ | 42,696 | |||||||
| Depreciation and amortization expense | $ | 2,196 | $ | 1,449 | $ | 182 | $ | 3,827 | |||||||
| Interest income | $ | 743 | $ | 809 | $ | 50 | $ | 1,602 | |||||||
| Interest expense | $ | 3,264 | $ | — | $ | 17 | $ | 3,281 | |||||||
| Total assets | $ | 191,404 | $ | 70,180 | $ | 9,089 | $ | 270,673 | |||||||
| 2007 Net sales |
$ | 187,146 | $ | 96,485 | $ | 24,185 | $ | 307,816 | |||||||
| Income from operations(1) | $ | 28,980 | $ | 16,711 | $ | 3,325 | $ | 49,016 | |||||||
| Depreciation and amortization expense | $ | 2,146 | $ | 1,370 | $ | 133 | $ | 3,649 | |||||||
| Interest income | $ | 1,466 | $ | 593 | $ | 34 | $ | 2,093 | |||||||
| Interest expense | $ | 4,098 | $ | — | $ | 13 | $ | 4,111 | |||||||
| Total assets | $ | 208,456 | $ | 66,259 | $ | 8,471 | $ | 283,186 | |||||||
| 2006 Net sales |
$ | 186,769 | $ | 79,101 | $ | 21,046 | $ | 286,916 | |||||||
| Income from operations(1) | $ | 28,714 | $ | 13,088 | $ | 4,220 | $ | 46,022 | |||||||
| Depreciation and amortization expense | $ | 2,124 | $ | 1,250 | $ | 93 | $ | 3,467 | |||||||
| Interest income | $ | 1,153 | $ | 223 | $ | 18 | $ | 1,394 | |||||||
| Interest expense | $ | 4,897 | $ | — | $ | — | $ | 4,897 | |||||||
| Total assets | $ | 208,261 | $ | 55,274 | $ | 4,940 | $ | 268,475 | |||||||
| (1) | For the fiscal years ended August 31, 2008, 2007 and 2006, income from operations for the Americas segment included costs from headquarters of $15.7 million, $15.2 million and $13.6 million, respectively. |
| Net Sales | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2008 | 2007 | 2006 | |||||||||
| Product Line Information: Multi-purpose maintenance products |
$ | 235,898 | $ | 216,300 | $ | 190,468 | |||||
| Homecare and cleaning products | 81,220 | 91,516 | 96,448 | ||||||||
| $ | 317,118 | $ | 307,816 | $ | 286,916 | ||||||
Geographical Information: United States |
$ | 147,850 | $ | 160,904 | $ | 161,624 | |||||
| United Kingdom | 28,230 | 29,127 | 25,432 | ||||||||
| Other international | 141,038 | 117,785 | 99,860 | ||||||||
| $ | 317,118 | $ | 307,816 | $ | 286,916 | ||||||
| Non-current Assets | |||||||
|---|---|---|---|---|---|---|---|
| 2008 | 2007 | ||||||
| Geographical Information: United States |
$ | 126,713 | $ | 126,105 | |||
| International | 24,475 | 26,510 | |||||
| $ | 151,188 | $ | 152,615 | ||||