FULLER H B CO 10-Q

Item 1. Financial Statements     H.B. FULLER COMPANY AND SUBSIDIARIES Consolidated Statements of Income (In thousands, except per share amounts) (Unaudited)       Three Months Ended     Nine Months Ended       August 28,     August 29,     August 28,     August 29,       2021     2020     2021     2020   Net revenue   $ 826,830     $ 691,463     $ 2,380,607     $ 2,012,629   Cost of sales     ( 632,880 )     ( 503,619 )     ( 1,776,744 )     ( 1,469,622 ) Gross profit     193,950       187,844       603,863       543,007   Selling, general and administrative expenses     ( 134,497 )     ( 129,113 )     ( 426,921 )     ( 398,620 ) Other income, net     6,150       3,722       25,899       11,740   Interest expense     ( 19,396 )     ( 20,196 )     ( 59,699 )     ( 64,597 ) Interest income     2,520       2,945       7,709       8,761   Income before income taxes and income from equity method investments     48,727       45,202       150,851       100,291   Income taxes     ( 19,095 )     ( 5,112 )     ( 46,362 )     ( 22,194 ) Income from equity method investments     1,998       1,541       6,071       5,068   Net income including non-controlling interest     31,630       41,631       110,560       83,165   Net income attributable to non-controlling interest     ( 14 )     ( 24 )     ( 51 )     ( 50 ) Net income attributable to H.B. Fuller   $ 31,616     $ 41,607     $ 110,509     $ 83,115                                     Earnings per share attributable to H.B. Fuller common stockholders:                                 Basic   $ 0.60     $ 0.80     $ 2.09     $ 1.60   Diluted   $ 0.58     $ 0.79     $ 2.04     $ 1.59                                     Weighted-average common shares outstanding:                                 Basic     53,049       52,130       52,794       51,959   Diluted     54,646       52,591       54,093       52,400                                     Dividends declared per common share   $ 0.168     $ 0.163     $ 0.498     $ 0.485     See accompanying Notes to Unaudited Consolidated Financial Statements.   4 Table of Contents     H.B. FULLER COMPANY AND SUBSIDIARIES Consolidated Statements of Comprehensive Income (In thousands) (Unaudited)       Three Months Ended     Nine Months Ended       August 28,     August 29,     August 28,     August 29,       2021     2020     2021     2020   Net income including non-controlling interest   $ 31,630     $ 41,631     $ 110,560     $ 83,165   Other comprehensive (loss) income                                 Foreign currency translation     ( 32,006 )     46,711       46,655       14,008   Defined benefit pension plans adjustment, net of tax     1,375       2,078       4,121       6,234   Interest rate swaps, net of tax     3,830       4,125       11,574       ( 14,757 ) Cross-currency swaps, net of tax     ( 1,289 )     ( 2,314 )     ( 3,576 )     8,208   Other comprehensive (loss) income     ( 28,090 )     50,600       58,774       13,693   Comprehensive income     3,540       92,231       169,334       96,858   Less: Comprehensive (loss) income attributable to non-controlling interest     ( 13 )     46       26       75   Comprehensive income attributable to H.B. Fuller   $ 3,553     $ 92,185     $ 169,308     $ 96,783     See accompanying Notes to Unaudited Consolidated Financial Statements.   5 Table of Contents   H.B. FULLER COMPANY AND SUBSIDIARIES Consolidated Balance Sheets (In thousands, except share and per share amounts) (Unaudited)       August 28,     November 28,       2021     2020   Assets                 Current assets:                 Cash and cash equivalents   $ 68,134     $ 100,534   Trade receivables (net of allowances of $ 9,139 and $ 12,905 , as of August 28, 2021 and November 28, 2020, respectively)     572,855       514,916   Inventories     462,635       323,213   Other current assets     100,834       81,113   Total current assets     1,204,458       1,019,776                     Property, plant and equipment     1,476,158       1,428,183   Accumulated depreciation     ( 800,266 )     ( 757,439 ) Property, plant and equipment, net     675,892       670,744                     Goodwill     1,313,824       1,312,003   Other intangibles, net     710,127       755,968   Other assets     353,971       278,213   Total assets   $ 4,258,272     $ 4,036,704                     Liabilities, non-controlling interest and total equity                 Current liabilities:                 Notes payable   $ 27,313     $ 16,925   Trade payables     485,796       316,460   Accrued compensation     82,129       83,598   Income taxes payable     32,079       29,173   Other accrued expenses     82,417       83,976   Total current liabilities     709,734       530,132                     Long-term debt     1,636,694       1,756,985   Accrued pension liabilities     86,954       88,806   Other liabilities     257,034       278,919   Total liabilities     2,690,416       2,654,842                     Commitments and contingencies (Note 12)                                       Equity:                 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 – 52,549,798 and 51,906,663 , as of August 28, 2021 and November 28, 2020, respectively     52,550       51,907   Additional paid-in capital     200,180       157,867   Retained earnings     1,558,619       1,474,406   Accumulated other comprehensive loss     ( 244,060 )     ( 302,859 ) Total H.B. Fuller stockholders' equity     1,567,289       1,381,321   Non-controlling interest     567       541   Total equity     1,567,856       1,381,862   Total liabilities, non-controlling interest and total equity   $ 4,258,272     $ 4,036,704      See accompanying Notes to Unaudited Consolidated Financial Statements.   6 Table of Contents   H.B. FULLER COMPANY AND SUBSIDIARIES Consolidated Statements of Total Equity (In thousands) (Unaudited)       H.B. Fuller Company Shareholders                                               Accumulated                               Additional             Other                       Common     Paid-in     Retained     Comprehensive     Non-Controlling               Stock     Capital     Earnings     Income (Loss)     Interest     Total                                                     Balance at November 28, 2020   $ 51,907     $ 157,867     $ 1,474,406     $ ( 302,859 )   $ 541     $ 1,381,862   Comprehensive income     -       -       29,791       27,656       5       57,452   Dividends     -       -       ( 8,542 )     -       -       ( 8,542 ) Stock option exercises     147       6,251       -       -       -       6,398   Share-based compensation plans and other, net     150       7,423       -       -       -       7,573   Repurchases of common stock     ( 49 )     ( 2,531 )     -       -       -       ( 2,580 ) Balance at February 27, 2021   $ 52,155     $ 169,010     $ 1,495,655     $ ( 275,203 )   $ 546     $ 1,442,163   Comprehensive income     -       -       49,102       59,206       34       108,342   Dividends     -       -       ( 8,870 )     -       -       ( 8,870 ) Stock option exercises     318       13,887       -       -       -       14,205   Share-based compensation plans other, net     27       7,393       -       -       -       7,420   Repurchases of common stock     ( 1 )     ( 47 )     -       -       -       ( 48 ) Balance at May 29, 2021   $ 52,499     $ 190,243     $ 1,535,887     $ ( 215,997 )   $ 580       1,563,212   Comprehensive income     -       -       31,616       ( 28,063 )     ( 13 )     3,540   Dividends     -       -       ( 8,884 )     -       -       ( 8,884 ) Stock option exercises     49       1,401       -       -       -       1,450   Share-based compensation plans other, net     3       8,575       -       -       -       8,578   Repurchases of common stock     ( 1 )     ( 39 )     -       -       -       ( 40 ) Balance at August 28, 2021   $ 52,550     $ 200,180     $ 1,558,619     $ ( 244,060 )   $ 567       1,567,856         H.B. Fuller Company Shareholders                                               Accumulated                               Additional             Other                       Common     Paid-in     Retained     Comprehensive     Non-Controlling               Stock     Capital     Earnings     Income (Loss)     Interest     Total                                                     Balance at November 30, 2019   $ 51,241     $ 130,295     $ 1,384,411     $ ( 343,600 )   $ 442     $ 1,222,789   Comprehensive income (loss)     -       -       9,895       ( 5,049 )     10       4,856   Dividends     -       -       ( 8,313 )     -       -       ( 8,313 ) Stock option exercises     26       881       -       -       -       907   Share-based compensation plans and other, net     206       4,821       -       -       -       5,027   Repurchases of common stock     ( 66 )     ( 3,146 )     -       -       -       ( 3,212 ) Balance at February 29, 2020   $ 51,407     $ 132,851     $ 1,385,993     $ ( 348,649 )   $ 452     $ 1,222,054   Comprehensive income     -       -       31,613       ( 31,861 )     19       ( 229 ) Dividends     -       -       ( 8,448 )     -       -       ( 8,448 ) Stock option exercises     24       626       -       -       -       650   Share-based compensation plans other, net     121       4,730       -       -       -       4,851   Repurchases of common stock     ( 1 )     ( 32 )     -       -       -       ( 33 ) Balance at May 30, 2020   $ 51,551     $ 138,175     $ 1,409,158     $ ( 380,510 )   $ 471     $ 1,218,845   Comprehensive income     -       -       41,607       50,578       46       92,231   Dividends     -       -       ( 8,473 )     -       -       ( 8,473 ) Stock option exercises     174       4,832       -       -       -       5,006   Share-based compensation plans other, net     3       6,391       -       -       -       6,394   Repurchases of common stock     ( 2 )     ( 93 )     -       -       -       ( 95 ) Balance at August 29, 2020   $ 51,726     $ 149,305     $ 1,442,292     $ ( 329,932 )   $ 517     $ 1,313,908     See accompanying Notes to Unaudited Consolidated Financial Statements.    7 Table of Contents     H.B. FULLER COMPANY AND SUBSIDIARIES Consolidated Statements of Cash Flows (In thousands) (Unaudited)       Nine Months Ended       August 28, 2021     August 29, 2020   Cash flows from operating activities:                 Net income including non-controlling interest   $ 110,560     $ 83,165   Adjustments to reconcile net income including non-controlling interest to net cash provided by operating activities:                 Depreciation     54,158       50,558   Amortization     53,464       52,943   Deferred income taxes     ( 1,547 )     ( 10,952 ) Income from equity method investments, net of dividends received     4,363       2,660   Loss on sale or disposal of assets     641       118   Share-based compensation     19,400       14,087   Pension and other post-retirement benefit plan activity     ( 23,192 )     ( 5,954 ) Change in assets and liabilities, net of effects of acquisitions:                 Trade receivables, net     ( 61,900 )     17,307   Inventories     ( 141,112 )     ( 17,195 ) Other assets     ( 26,060 )     31,372   Trade payables     176,210       ( 9,449 ) Accrued compensation     ( 1,283 )     ( 12,345 ) Other accrued expenses     ( 2,292 )     8,776   Income taxes payable     1,001       330   Other liabilities     ( 53,498 )     20,481   Other     52,221       ( 32,872 ) Net cash provided by operating activities     161,134       193,030                     Cash flows from investing activities:                 Purchased property, plant and equipment     ( 77,237 )     ( 71,939 ) Purchased businesses, net of cash acquired     ( 5,445 )     ( 9,500 ) Purchase of assets     -       ( 5,623 ) Proceeds from sale of property, plant and equipment     2,751       1,407          Cash received from government grant     5,800       -   Cash payments related to government grant     ( 1,526 )     ( 5,326 ) Net cash used in investing activities     ( 75,657 )     ( 90,981 )                   Cash flows from financing activities:                 Repayment of long-term debt     ( 118,000 )     ( 128,000 ) Net proceeds of notes payable     9,846       8,422   Dividends paid     ( 26,045 )     ( 24,970 )        Contingent consideration payment     -       ( 767 ) Proceeds from stock options exercised     22,053       6,567   Repurchases of common stock     ( 2,668 )     ( 3,342 ) Net cash used in financing activities     ( 114,814 )     ( 142,090 )                   Effect of exchange rate changes on cash and cash equivalents     ( 3,063 )     2,772   Net change in cash and cash equivalents     ( 32,400 )     ( 37,269 ) Cash and cash equivalents at beginning of period     100,534       112,191   Cash and cash equivalents at end of period   $ 68,134     $ 74,922     See accompanying Notes to Unaudited Consolidated Financial Statements.   8 Table of Contents   H.B. FULLER COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Amounts in thousands, except per share amounts) (Unaudited)     Note 1: Basis of Presentation   Overview   The accompanying unaudited interim 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 -Q and Article 10 of Regulation S- X. Accordingly, they do not include all of the information necessary for a fair presentation of results of operations, comprehensive income, financial position and cash flows in conformity with U.S. generally accepted accounting principles. In our opinion, the unaudited interim Consolidated Financial Statements reflect all adjustments of a normal recurring nature considered necessary for the fair presentation of the results for the periods presented. Operating results for interim periods are not necessarily indicative of results that may be expected for the fiscal year as a whole.   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 Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in our Annual Report on Form 10 -K for the year ended  November 28, 2020 as filed with the Securities and Exchange Commission.   Change in Accounting Principle - Credit Losses   In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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, ASU No. 2019 - 04, Codification Improvements to Topic 326, Financial Instruments, in April 2019  and ASU No. 2019 - 11, Codification Improvements to Topic 326, Financial Instruments, in November 2019. ASU No. 2018 - 19 clarifies that receivables arising from operating leases are within the scope of Topic 842, Leases. ASU No. 2019 - 04 and ASU No. 2019 - 11 clarify various scoping and other issues arising from ASU No. 2016 - 13. The amendments in these ASUs affect the guidance in ASU No. 2016 - 13 and are effective in the same timeframe as ASU No. 2016 - 13. We adopted these ASUs and related standards during the first quarter ended February 27, 2021. Based on the conducted analyses on the change in accounting principle, the ASU did not have a material impact on the Consolidated Statements of Income or the Consolidated Balance Sheets. Therefore, a modified retrospective adjustment was not required. The trade receivables and allowances significant accounting policy has been changed in accordance with these ASUs as follows.   Trade Receivables and Allowances   Trade receivables are recorded at the invoiced amount and do not bear interest. Allowances are maintained for doubtful accounts, credits related to pricing or quantities shipped and early payment discounts. The allowance for doubtful accounts includes an estimate of future uncollectible receivables based on the aging of the receivable balance and our collection experience. The allowance also includes specific customer accounts when it is probable that the full amount of the receivable will not be collected. Current expectations of future credit losses using market and industry data are considered in the specific customer accounts.   New Accounting Pronouncements   Recently issued accounting standards or pronouncements have been excluded as they are not relevant to us.   9 Table of Contents     Note 2: Acquisitions   STR Holdings, Inc.   On January 13, 2021, we acquired certain assets of STR Holding, Inc. ("STR") for a base purchase price of $ 5,445  which was funded through existing cash. The agreement requires us to pay an additional $ 800 on the first anniversary of the acquisition and contingent consideration of up to $ 1,700 based on certain agreement provisions. STR, headquartered in Enfield, Connecticut, is a manufacturer of encapsulant products used in the solar industry. The acquisition fair value measurement, which includes intangible assets of $ 6,700  and other net assets of $ 1,245 , was preliminary as of August 28, 2021 . The fair value of the contingent consideration as of the date of acquisition was $ 1,700 . See Note 11  for further discussion of the fair value of the contingent consideration. We recorded no goodwill in our accounting for this acquisition. STR is reported in our Engineering Adhesives ("EA") operating segment. The STR acquisition does not represent a material business combination, and therefore pro forma financial information is not provided.    D.H.M. Adhesives, Inc .   On February 3, 2020, we acquired certain assets of D.H.M. Adhesives, Inc. (“D.H.M.”) for approximately $ 9,500 which was funded through existing cash. In addition, the agreement requires us to pay contingent consideration of up to approximately $ 8,100 based upon a formula related to revenue during the fiscal years ended November 27, 2021 and December 3, 2022. D.H.M., headquartered in Calhoun, Georgia, is a provider of hotmelt adhesives. The acquisition fair value measurement was final as of May 30, 2020 and includes goodwill of $ 1,063 and customer relationship intangible of $ 11,900 . The fair value of the contingent consideration as of the date of acquisition was $ 5,000 resulting in a final purchase price of $ 14,500 . See Note 11  for further discussion of the fair value of the contingent consideration liability. Goodwill is deductible for tax purposes. D.H.M. and the related goodwill are reported in our Hygiene, Health and Consumable Adhesives operating segment. The D.H.M acquisition does not represent a material business combination, and therefore pro forma financial information is not provided.     Note 3: Restructuring Actions   The Company has approved restructuring plans consisting of consolidation plans, organizational changes and other actions related to the reorganization of our business into three segments, 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 charges under these restructuring plans by income statement classification:       Three Months Ended     Nine Months Ended       August 28, 2021     August 29, 2020     August 28, 2021     August 29, 2020   Cost of sales   $ ( 5 )   $ 371     $ 288     $ 438   Selling, general and administrative     ( 187 )     618       1,159       984       $ ( 192 )   $ 989     $ 1,447     $ 1,422     The restructuring charges are all recorded in Corporate Unallocated for segment reporting.   A summary of the restructuring liability is presented below:       Employee-Related     Other     Total   Balance at November 30, 2019   $ 9,830     $ 924     $ 10,754   Expenses incurred     2,898       1,681       4,579   Cash payments     ( 7,051 )     ( 2,357 )     ( 9,408 ) Foreign currency translation     157       -       157   Balance at November 28, 2020     5,834       248       6,082   Expenses incurred     ( 147 )     1,594       1,447          Non-cash charges     -       ( 135 )     ( 135 ) Cash payments     ( 3,767 )     ( 1,707 )     ( 5,474 ) Foreign currency translation     ( 63 )     -       ( 63 ) Balance at August 28, 2021   $ 1,857     $ -     $ 1,857     10 Table of Contents   Restructuring liabilities have been classified as a component of other accrued expenses in the Consolidated Balance Sheets.     Note 4: Inventories   The composition of inventories is as follows:       August 28,     November 28,       2021     2020   Raw materials   $ 236,907     $ 151,026   Finished goods     225,728       172,187   Total inventories   $ 462,635     $ 323,213       Note 5: Goodwill and Other Intangible Assets   The goodwill activity for the  nine months ended August 28, 2021 is presented below:       Hygiene, Health                               and Consumable     Engineering     Construction               Adhesives     Adhesives     Adhesives     Total   Balance at November 28, 2020   $ 332,909     $ 667,863     $ 311,231     $ 1,312,003   Currency impact     ( 753 )     2,296       278       1,821   Balance at August 28, 2021   $ 332,156     $ 670,159     $ 311,509     $ 1,313,824     Balances of amortizable identifiable intangible assets, excluding goodwill and other non-amortizable intangible assets, are as follows:       August 28, 2021       Purchased                                       Technology     Customer                           Amortizable Intangible Assets   and Patents     Relationships     Trade Names     Other     Total   Original cost   $ 123,410     $ 939,671     $ 63,855     $ 11,388     $ 1,138,324   Accumulated amortization     ( 60,404 )     ( 329,918 )     ( 32,938 )     ( 5,451 )     ( 428,711 ) Net identifiable intangibles   $ 63,006     $ 609,753     $ 30,917     $ 5,937     $ 709,613         November 28, 2020       Purchased                                       Technology     Customer                           Amortizable Intangible Assets   and Patents     Relationships     Trade Names     Other     Total   Original cost   $ 113,775     $ 933,943     $ 63,266     $ 11,410     $ 1,122,394   Accumulated amortization     ( 53,216 )     ( 279,586 )     ( 29,368 )     ( 4,775 )     ( 366,945 ) Net identifiable intangibles   $ 60,559     $ 654,357     $ 33,898     $ 6,635     $ 755,449     Amortization expense with respect to amortizable intangible assets was $ 17,815  and $ 17,485  for the three months ended August 28, 2021 and August 29, 2020 , respectively, and $ 53,464  and $ 52,943  for the nine months ended August 28, 2021 and August 29, 2020 , respectively.   11 Table of Contents   Estimated aggregate amortization expense based on the current carrying value of amortizable intangible assets for the next five fiscal years is as follows:       Remainder                                           Fiscal Year   2021     2022     2023     2024     2025     Thereafter   Amortization expense   $ 17,504     $ 69,534     $ 66,605     $ 61,578     $ 58,952     $ 435,440     Non-amortizable intangible assets as of  August 28, 2021 and November 28, 2020 are $514  and $ 519 , respectively, and are related to trademarks and trade names. The change in non-amortizable assets as of August 28, 2021 compared to November 28, 2020 was due to changes in foreign currency exchange rates.     Note 6: Components of Net Periodic Benefit related to Pension and Other Postretirement Benefit Plans       Three Months Ended August 28, 2021 and August 29, 2020                                       Other       Pension Benefits     Postretirement       U.S. Plans     Non-U.S. Plans     Benefits   Net periodic cost (benefit):   2021     2020     2021     2020     2021     2020   Service cost   $ -     $ -     $ 824     $ 743     $ 5     $ 18   Interest cost     2,325       2,935       743       785       206       284   Expected return on assets     ( 7,781 )     ( 6,439 )     ( 3,120 )     ( 2,812 )     ( 2,236 )     ( 1,994 ) Amortization:                                                 Prior service cost (benefit)     ( 1 )     ( 1 )     17       16       -       -   Actuarial loss     799       1,799       1,020       959       18       15   Net periodic benefit   $ ( 4,658 )   $ ( 1,706 )   $ ( 516 )   $ ( 309 )   $ ( 2,007 )   $ ( 1,677 )       Nine Months Ended August 28, 2021 and August 29, 2020                                       Other       Pension Benefits     Postretirement       U.S. Plans     Non-U.S. Plans     Benefits   Net periodic cost (benefit):   2021     2020     2021     2020     2021     2020   Service cost   $ -     $ -     $ 2,478     $ 2,184     $ 16     $ 55   Interest cost     6,974       8,803       2,215       2,348       616       851   Expected return on assets     ( 23,342 )     ( 19,318 )     ( 9,301 )     ( 8,408 )     ( 6,708 )     ( 5,982 ) Amortization:                                                 Prior service cost (benefit)     ( 2 )     ( 2 )     51       48       -       -   Actuarial loss     2,398       5,397       3,059       2,839       55       46   Net periodic benefit   $ ( 13,972 )   $ ( 5,120 )   $ ( 1,498 )   $ ( 989 )   $ ( 6,021 )   $ ( 5,030 )   Service cost is included with employee compensation cost in cost of sales and selling, general and administrative expenses in the Consolidated Statements of Income. The components of our net periodic defined benefit pension and postretirement benefit costs other than service cost are presented in other income, net in the Consolidated Statements of Income.   12 Table of Contents     Note 7: Accumulated Other Comprehensive Income (Loss)   The following table provides details of total comprehensive income (loss):        Three Months Ended August 28, 2021     Three Months Ended August 29, 2020                               Non-                             Non-                               controlling                             controlling       H.B. Fuller Stockholders     Interest     H.B. Fuller Stockholders     Interest       Pre-tax     Tax     Net     Net     Pre-tax     Tax     Net     Net   Net income attributable to H.B. Fuller and non-controlling interest                   $ 31,616     $ 14                     $ 41,607     $ 24   Foreign currency translation adjustment¹   $ ( 31,979 )   $ -       ( 31,979 )     ( 27 )   $ 46,689     $ -       46,689       22   Defined benefit pension plans adjustment²     1,855       ( 480 )     1,375       -       2,769       ( 691 )     2,078       -   Interest rate swap³     5,074       ( 1,244 )     3,830       -       5,455       ( 1,330 )     4,125       -   Cross currency swaps³     ( 1,309 )     20       ( 1,289 )     -       ( 2,387 )     73       ( 2,314 )     -   Other comprehensive income (loss)   $ ( 26,359 )   $ ( 1,704 )   $ ( 28,063 )   $ ( 27 )   $ 52,526     $ ( 1,948 )   $ 50,578     $ 22   Comprehensive income (loss)                   $ 3,553     $ ( 13 )                   $ 92,185     $ 46         Nine Months Ended August 28, 2021     Nine Months Ended August 29, 2020                               Non-                             Non-                               controlling                             controlling       H.B. Fuller Stockholders     Interest     H.B. Fuller Stockholders     Interest       Pretax     Tax     Net     Net     Pretax     Tax     Net     Net   Net income attributable to H.B. Fuller and non-controlling interest                   $ 110,509     $ 51                     $ 83,115     $ 50   Foreign currency translation adjustment¹   $ 46,680     $ -       46,680       ( 25 )   $ 13,983     $ -       13,983       25   Defined benefit pension plans adjustment²     5,561       ( 1,440 )     4,121       -       8,306       ( 2,072 )     6,234       -   Interest rate swap³     15,332       ( 3,758 )     11,574       -       ( 19,515 )     4,758       ( 14,757 )     -   Cross currency swaps³     ( 3,629 )     53       ( 3,576 )     -       8,353       ( 145 )     8,208       -   Other comprehensive income (loss)   $ 63,944     $ ( 5,145 )   $ 58,799       ( 25 )   $ 11,127     $ 2,541       13,668       25   Comprehensive income                   $ 169,308     $ 26                     $ 96,783     $ 75     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, net.   13 Table of Contents   The components of accumulated other comprehensive loss are as follows:       August 28, 2021                       Non-               H.B. Fuller     controlling       Total     Stockholders     Interest   Foreign currency translation adjustment   $ ( 59,435 )   $ ( 59,325 )   $ ( 110 ) Interest rate swap, net of taxes of $ 4,395     ( 13,529 )     ( 13,529 )     -   Cash flow hedges, net of taxes of $( 68 )     4,393       4,393       -   Defined benefit pension plans adjustment, net of taxes of $ 79,216     ( 157,258 )     ( 157,258 )     -   Reclassification of AOCI tax effects     ( 18,341 )     ( 18,341 )     -   Accumulated other comprehensive loss   $ ( 244,170 )   $ ( 244,060 )   $ ( 110 )       November 28, 2020                       Non-               H.B. Fuller     controlling       Total     Stockholders     Interest   Foreign currency translation adjustment   $ ( 106,140 )   $ ( 106,005 )   $ ( 135 ) Interest rate swap, net of taxes of $ 8,639     ( 25,103 )     ( 25,103 )     -   Cash flow hedges, net of taxes of $( 121 )     7,969       7,969       -   Defined benefit pension plans adjustment, net of taxes of $ 80,656     ( 161,379 )     ( 161,379 )     -   Reclassification of AOCI tax effects     ( 18,341 )     ( 18,341 )     -   Accumulated other comprehensive loss   $ ( 302,994 )   $ ( 302,859 )   $ ( 135 )     Note 8: Income Taxes   Income tax expense for the  three and nine months ended August 28, 2021  includes $ 5,626 and $ 5,068  of discrete tax expense, respectively, relating to the revaluation of cross-currency swap agreements due to depreciation of the Euro versus the U.S. dollar and various foreign tax matters. Excluding the discrete tax expense, the overall effective tax rate was  27.6 percent and  27.4 percent for the three and nine months ended August 28, 2021 , respectively.     Income tax expense for the three and nine months ended August 29, 2020 includes $ 7,183  and $ 5,223  of discrete tax benefit, respectively, relating to the revaluation of cross-currency swap agreements due to appreciation of the Euro versus the U.S. Dollar and various foreign tax matters. Excluding the discrete tax benefit, the overall effective tax rate was 27.1  percent and  27.3 percent for the three and nine months ended August 29, 2020 , respectively.   As of  August 28, 2021 , we had a liability of $ 14,463  recorded for gross unrecognized tax benefits (excluding interest) compared to $ 14,569 as of November 28, 2020 . As of August 28, 2021 and November 28, 2020 , we had accrued $ 2,283 and $ 2,881 of gross interest relating to unrecognized tax benefits, respectively.   14 Table of Contents     Note 9: Earnings Per Share   A reconciliation of the common share components for the basic and diluted earnings per share calculations is as follows:       Three Months Ended     Nine Months Ended       August 28,     August 29,     August 28,     August 29,   (Shares in thousands)   2021     2020     2021     2020   Weighted-average common shares - basic     53,049       52,130       52,794       51,959   Equivalent shares from share-based compensations plans     1,597       461       1,299       441   Weighted-average common and common equivalent shares diluted     54,646       52,591       54,093       52,400     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  93,876 and 3,672,150  shares for the three months ended August 28, 2021 and August 29, 2020 , respectively, and 1,655,852  and 4,034,001  for the nine  months ended August 28, 2021 and August 29, 2020 , respectively, were excluded from diluted earnings per share calculations because they were antidilutive.     Note 10: Financial Instruments   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 hold derivative financial instruments of a speculative nature or for trading purposes. We record derivatives as assets and liabilities on the balance sheet at fair value. Changes in fair value are recognized immediately in earnings unless the derivative qualifies and is designated as a hedge. Cash flows from derivatives are classified in the Consolidated Statement of Cash Flows in the same category as the cash flows from the items subject to designated hedge or undesignated (economic) hedge relationships. We evaluate hedge effectiveness at inception and on an ongoing basis. If a derivative is no longer expected to be effective, hedge accounting is discontinued. Hedge ineffectiveness, if any, is recorded in earnings.   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 anticipate nonperformance by any of these counterparties, and valuation allowances, if any, are de minimis.   15 Table of Contents   Cash Flow Hedges   As of August 28, 2021 , we had six cross-currency swap agreements effective October 20, 2017 to convert a notional amount of $ 401,200 of foreign currency denominated intercompany loans into U.S. dollars, which mature in 2021  and 2022.  As of August 28, 2021 , the combined fair value of the swaps was an asset of $ 4,716 and was included in other assets in the Consolidated Balance Sheets. The swaps were designated as cash flow hedges for accounting treatment. The lesser amount between the cumulative change in the fair value of the actual swaps and the cumulative change in the fair value of hypothetical swaps is recorded in accumulated other comprehensive income (loss) in the Consolidated Balance Sheets and in other net cash provided by operating activities in the Consolidated Statement of Cash Flows. The differences between the cumulative change in the fair value of the actual swaps and the cumulative change in the fair value of hypothetical swaps are recorded as other income, net in the Consolidated Statements of Income. In a perfectly effective hedge relationship, the two fair value calculations would exactly offset each other. Any difference in the calculation represents hedge ineffectiveness. The amount in accumulated other comprehensive income (loss) related to cross-currency swaps was a gain of $ 4,393 as of August 28, 2021 . The estimated net amount of the existing gain that is reported in accumulated other comprehensive income (loss) as of August 28, 2021 that is expected to be reclassified into earnings within the next twelve months is $( 3,176 ). As of August 28, 2021 , we do not believe any gains or losses will be reclassified into earnings as a result of the discontinuance of these cash flow hedges because the original forecasted transaction will not occur.   The following table summarizes the cross-currency swaps outstanding as of August 28, 2021 :     Fiscal Year of         Notional             Expiration   Interest Rate     Value     Fair Value   Pay EUR 2021   2.75 %     $ 133,340     $ 336   Receive USD   4.9330 %                                             Pay EUR 2022   3.00 %     $ 267,860     $ 4,380   Receive USD   5.1803 %                                             Total         $ 401,200     $ 4,716     On February 27, 2018, we entered into an interest rate swap agreement to convert $ 200,000 of our $ 2,150,000 Term Loan B to a fixed interest rate of 4.589 percent. During the second  quarter of 2021, we settled a portion of this interest rate swap as the debt underlying this swap was less than the swap value due to debt paydown. We settled the ineffective portion of the interest rate swap by making a cash payment of $ 378 and recorded that payment to interest expense in our Consolidated Statements of Income for the three  months ended May 29, 2021. On October 20, 2017, we entered into interest rate swap agreements to convert $ 1,050,000 , which was amortized down to $ 925,000 on October 20, 2020,  of our $ 2,150,000 Term Loan B to a fixed interest rate of 4.0275 percent. The combined fair value of the interest rate swaps was a liability of $ 17,924 at August 28, 2021 and was included in other liabilities in the Consolidated Balance Sheets. The swaps were designated for hedge accounting treatment as cash flow hedges. We are applying the hypothetical derivative method to assess hedge effectiveness for these interest rate swaps. Changes in the fair value of a hypothetically perfect swap with terms that match the critical terms of our $ 1,125,000 variable rate Term Loan B are compared with the change in the fair value of the swaps.   16 Table of Contents   On April 23, 2018, we amended our Term Loan B Credit Agreement to reduce the interest rate from LIBOR plus 2.25 percent to LIBOR plus 2.00 percent. Fixed interest rates related to swap agreements disclosed have been updated to reflect the amendment.   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     Nine Months Ended       August 28, 2021     August 29, 2020     August 28, 2021     August 29, 2020   Cross-currency swap contracts   $ ( 1,309 )   $ ( 2,387 )   $ ( 3,629 )   $ 8,353   Interest rate swap contracts     5,074       5,455       15,332       ( 19,515 )   Fair Value Hedges   On February 12, 2021, we entered into interest rate swap agreements to convert our $ 300,000  Public Notes that were issued on October  20, 2020 to a variable interest rate of 1 -month LIBOR plus 3.28 percent. The combined fair value of the interest rate swaps was a liability of $ 3,478 at  August 28, 2021 , and was included in other liabilities in the Consolidated Balance Sheets. The swaps were designated for hedge accounting treatment as fair value hedges. We apply the short cut method and assume hedge effectiveness. Changes in the fair value of a hypothetically perfect swap with terms that match the critical terms of our $ 300,000 fixed rate Public Notes are compared with the change in the fair value of the swaps.   Derivatives Not Designated As Hedging Instruments   We use foreign currency forward contracts to offset our 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 designated as accounting hedges. Foreign currency forward contracts are recorded as assets and liabilities on the balance sheet at fair value. Changes in the value of these derivatives are recognized immediately in earnings, thereby offsetting the current earnings effect of the related foreign currency denominated assets and liabilities. See Note 11  for fair value amounts of these derivative instruments.   As of August 28, 2021 , we had forward foreign currency contracts maturing between August 30, 2021 and February 16, 2022. The mark-to-market effect associated with these contracts was largely offset by the underlying transaction gains and losses resulting from the foreign currency exposures for which these contracts relate.    The amounts of pretax gains (losses) recognized in other income, net related to derivative instruments not designated as hedging instruments for the  nine months ended August 28, 2021 and August 29, 2020 were $ 1,428 and $ ( 4,859 ), respectively.   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 August 28, 2021 , there were no significant concentrations of credit risk.   17 Table of Contents     Note 11: Fair Value Measurements   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 broad levels. The following is a brief description of those three levels:     ● Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.   ● Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.   ● Level 3: Unobservable inputs that reflect management’s assumptions, and include situations where there is little, if any, market activity for the asset or liability.   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 August 28, 2021 and November 28, 2020 , and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value.       August 28,     Fair Value Measurements Using:   Description   2021     Level 1     Level 2     Level 3   Assets:                                 Marketable securities   $ 1,828     $ 1,828     $ -     $ -   Foreign exchange contract assets     3,192       -       3,192       -   Cross-currency cash flow hedge assets     4,716       -       4,716       -                                     Liabilities:                                 Foreign exchange contract liabilities   $ 1,764     $ -     $ 1,764     $ -   Interest rate swaps, cash flow hedge liabilities     17,924       -       17,924       -   Interest rate swaps, fair value hedge liabilities     3,478       -       3,478       -   Contingent consideration liabilities     8,700       -       -       8,700         November 28,     Fair Value Measurements Using:   Description   2020     Level 1     Level 2     Level 3   Assets:                                 Marketable securities   $ 22,560     $ 22,560     $ -     $ -   Foreign exchange contract assets     2,320       -       2,320       -   Cross-currency cash flow hedge assets     2,823       -       2,823       -                                     Liabilities:                                 Foreign exchange contract liabilities   $ 5,251     $ -     $ 5,251     $ -   Cross-currency cash flow hedge liabilities     280       -       280         Interest rate swaps, cash flow hedge liabilities     33,256       -       33,256       -   Contingent consideration liabilities     5,800       -       -       5,800     We use the income approach in calculating the fair value of our contingent consideration liability related to the D.H.M. acquisition using a real option model with Level 3 inputs. The expected cash flows are affected by various significant judgments and assumptions, including revenue growth rates, volatility and discount rate, which are sensitive to change. Estimates of fair value are inherently uncertain and represent only management’s reasonable expectation regarding future developments. These estimates and the judgments and assumptions upon which the estimates are based will, in all likelihood, differ in some respects from actual future results.   18 Table of Contents   The valuation of our contingent consideration liabilities related to the acquisitions of D.H.M. and STR resulted in a fair value of $ 7,000 and $ 1,700 , respectively, as of August 28, 2021 . See Note 2 for further discussion regarding our acquisitions.       Amounts   Balance at November 28, 2020   $ 5,800   Acquisition     1,700   Mark to market adjustment     1,200   Balance at August 28, 2021   $ 8,700     Long-term debt had an estimated fair value of  $1,675,314.0  and $ 1,811,562 as of August 28, 2021 and November 28, 2020 , respectively. The fair value of long-term debt is based on quoted market prices for the same or similar issues or on the current rates offered for debt of similar maturities. The estimated fair value of these long-term obligations is not necessarily indicative of the amount that would be realized in a current market exchange.     Note 12: 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 $ 7,462 and $ 8,099  as of August 28, 2021 and November 28, 2020 , respectively, for probable and reasonably estimable environmental remediation costs. Of the amount reserved, $ 3,404 and $ 3,703  as of August 28, 2021 and November 28, 2020 , respectively, is attributable to a facility we own in Simpsonville, South Carolina as a result of our Royal Adhesives acquisition that is a designated site under CERCLA.   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 be required to pay a share of the costs of investigation and clean up of these sites. In addition, we are engaged in environmental remediation and monitoring efforts at a number of current and former operating facilities. While uncertainties exist with respect to the amounts and timing of the ultimate environmental liabilities, based on currently available information, we have concluded that these matters, individually or in the aggregate, will not have a material adverse effect on our results of operations, financial condition or cash flow.   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 have a material adverse effect on our results of operations, financial condition or cash flow.   19 Table of Contents   We have been named as a defendant in lawsuits in which plaintiffs have alleged injury due to products containing asbestos manufactured more than 30 years ago. The plaintiffs generally bring these lawsuits against multiple defendants and seek damages (both actual and punitive) in very large amounts. In many cases, plaintiffs are unable to demonstrate that they have suffered any compensable injuries or that the injuries suffered were the result of exposure to products manufactured by us. We are typically dismissed as a defendant in such cases without payment. If the plaintiff presents evidence indicating that compensable injury occurred as a result of exposure to our products, the case is generally settled for an amount that reflects the seriousness of the injury, the length, intensity and character of exposure to products containing asbestos, the number and solvency of other defendants in the case, and the jurisdiction in which the case has been brought.   A significant portion of the defense costs and settlements in asbestos-related litigation is paid by third parties, including indemnification pursuant to the provisions of a 1976 agreement under which we acquired a business from a third party. Currently, this third party is defending and paying settlement amounts, under a reservation of rights, in most of the asbestos cases tendered to the third party.   In addition to the indemnification arrangements with third parties, we have insurance policies that generally provide coverage for asbestos liabilities, including defense costs. Historically, insurers have paid a significant portion of our defense costs and settlements in asbestos-related litigation. However, certain of our insurers are insolvent. We have entered into cost-sharing agreements with our insurers that provide for the allocation of defense costs and settlements and judgments in asbestos-related lawsuits. These agreements require, among other things, that we fund a share of defense costs, settlements and judgments allocable to years in which the responsible insurer is insolvent.   A summary of the number of and settlement amounts for asbestos-related lawsuits and claims is as follows:       Nine Months Ended     3 Years Ended       August 28, 2021     August 29, 2020     November 28, 2020   Lawsuits and claims settled     2       3       19   Settlement amounts   $ 85     $ 80     $ 944   Insurance payments received or expected to be received   $ 55     $ 54     $ 660     We do not believe that it would be meaningful to disclose the aggregate number of asbestos-related lawsuits filed against us because relatively few of these lawsuits are known to involve exposure to asbestos-containing products that we manufactured. Rather, we believe it is more meaningful to disclose the number of lawsuits that are settled and result in a payment to the plaintiff. To the extent we can reasonably estimate the amount of our probable liabilities for pending asbestos-related claims, we establish a financial provision and a corresponding receivable for insurance recoveries.    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 have a material adverse effect on our results of operations, financial condition or cash flow.     Note 13: 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. Revenue and operating income of each of our segments are regularly reviewed by our chief operating decision maker to make decisions about resources to be allocated to the segments and assess their performance. Segment operating income is identified as gross profit less SG&A expenses. Corporate expenses, other than those included in Corporate Unallocated, are allocated to each operating segment. Consistent with our internal management reporting, Corporate Unallocated amounts include business acquisition and integration costs, organizational restructuring charges and project costs associated with our implementation of SAP ONE. Corporate assets are not allocated to the operating segments. Inter-segment revenues are recorded at cost plus a markup for administrative costs.   We have  three reportable segments: Hygiene, Health and Consumable Adhesives, Engineering Adhesives and Construction Adhesives. The business components within each operating segment are managed to maximize the results of the overall operating segment rather than the results of any individual business component of the operating segment. Results of individual components of each operating segment are subject to numerous allocations of segment-wide costs that may or may not have been focused on that particular component for a particular reporting period. The costs for these allocated resources are not tracked on a "where-used" basis as financial performance is assessed at the total operating segment level.   20 Table of Contents   The table below provides certain information regarding net revenue and operating income (loss) for each of our operating segments.        Three Months Ended       August 28, 2021     August 29, 2020       Net     Operating     Net     Operating       Revenue     Income (Loss)     Revenue     Income (Loss)   Hygiene, Health and Consumable Adhesives   $ 369,439     $ 29,652     $ 320,187     $ 31,883   Engineering Adhesives     342,300       34,087       276,083       29,873   Construction Adhesives     115,091       3,339       95,193       4,284   Total segment   $ 826,830     $ 67,078     $ 691,463     $ 66,040   Corporate Unallocated     -       ( 7,625 )     -       ( 7,309 ) Total   $ 826,830     $ 59,453     $ 691,463     $ 58,731         Nine Months Ended       August 28, 2021     August 29, 2020       Net     Operating     Net     Operating       Revenue     Income (Loss)     Revenue     Income (Loss)   Hygiene, Health and Consumable Adhesives   $ 1,069,922     $ 98,493     $ 977,373     $ 89,556   Engineering Adhesives     1,000,337       96,580       761,040       65,386   Construction Adhesives     310,348       4,974       274,216       9,436   Total segment   $ 2,380,607     $ 200,047     $ 2,012,629     $ 164,378   Corporate Unallocated     -       ( 23,105 )     -       ( 19,991 ) Total   $ 2,380,607     $ 176,942     $ 2,012,629     $ 144,387     Consistent with our internal management reporting, Corporate Unallocated amounts in the tables above include charges that are not allocated to the Company’s reportable segments.    The table below provides a reconciliation of operating income to income before income taxes and income from equity method investments:       Three Months Ended     Nine Months Ended       August 28,     August 29,     August 28,     August 29,       2021     2020     2021     2020   Operating income   $ 59,453     $ 58,731     $ 176,942     $ 144,387   Other income, net     6,150       3,722       25,899       11,740   Interest expense     ( 19,396 )     ( 20,196 )     ( 59,699 )     ( 64,597 ) Interest income     2,520       2,945       7,709       8,761   Income before income taxes and income from equity method investments   $ 48,727     $ 45,202     $ 150,851     $ 100,291     21 Table of Contents   We view the following disaggregation of net revenue by geographic region as useful to understanding the composition of revenue recognized during the respective reporting periods:       Three Months Ended August 28, 2021                                         Hygiene, Health                               and Consumable     Engineering     Construction               Adhesives     Adhesives     Adhesives     Total                                     Americas   $ 210,589     $ 127,683     $ 103,475     $ 441,747   EIMEA     108,626       121,905       4,958       235,489   Asia Pacific     50,224       92,712       6,658       149,594   Total   $ 369,439     $ 342,300     $ 115,091     $ 826,830         Three Months Ended August 29, 2020                                         Hygiene, Health                               and Consumable     Engineering     Construction               Adhesives     Adhesives     Adhesives     Total                                     Americas   $ 179,209     $ 114,358     $ 84,379     $ 377,946   EIMEA     91,813       81,783       4,418       178,014   Asia Pacific     49,165       79,942       6,396       135,503   Total   $ 320,187     $ 276,083     $ 95,193     $ 691,463         Nine Months Ended August 28, 2021       Hygiene, Health                               and Consumable     Engineering     Construction               Adhesives     Adhesives     Adhesives     Total                                     Americas   $ 594,071     $ 367,260     $ 274,502     $ 1,235,833   EIMEA     312,908       345,249       16,191       674,348   Asia Pacific     162,943       287,828       19,655       470,426   Total   $ 1,069,922     $ 1,000,337     $ 310,348     $ 2,380,607         Nine Months Ended August 29, 2020       Hygiene, Health                               and Consumable     Engineering     Construction               Adhesives     Adhesives     Adhesives     Total                                     Americas   $ 543,066     $ 309,742     $ 242,685     $ 1,095,493   EIMEA     282,418       237,102       15,049       534,569   Asia Pacific     151,889       214,196       16,482       382,567   Total   $ 977,373     $ 761,040     $ 274,216     $ 2,012,629     22 Table of Contents