Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Feb. 28, 2022 | Apr. 01, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Feb. 28, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | RPM International Inc. | |
Entity Central Index Key | 0000110621 | |
Current Fiscal Year End Date | --05-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Bankruptcy Proceedings, Reporting Current | false | |
Entity Common Stock, Shares Outstanding | 129,495,680 | |
Entity File Number | 1-14187 | |
Entity Tax Identification Number | 02-0642224 | |
Entity Address, Address Line One | P.O. BOX 777 | |
Entity Address, Address Line Two | 2628 PEARL ROAD | |
Entity Address, City or Town | MEDINA | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 44258 | |
City Area Code | 330 | |
Local Phone Number | 273-5090 | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Trading Symbol | RPM | |
Security Exchange Name | NYSE | |
Title of 12(b) Security | Common Stock, par value $0.01 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Feb. 28, 2022 | May 31, 2021 |
Current Assets | ||
Cash and cash equivalents | $ 193,191 | $ 246,704 |
Trade accounts receivable (less allowances of $49,794 and $55,922, respectively) | 1,085,396 | 1,280,806 |
Inventories | 1,191,791 | 938,095 |
Prepaid expenses and other current assets | 339,977 | 316,399 |
Total current assets | 2,810,355 | 2,782,004 |
Property, Plant and Equipment, at Cost | 2,080,631 | 1,967,482 |
Allowance for depreciation | (1,031,613) | (1,002,300) |
Property, plant and equipment, net | 1,049,018 | 965,182 |
Other Assets | ||
Goodwill | 1,343,962 | 1,345,754 |
Other intangible assets, net of amortization | 601,641 | 628,693 |
Operating lease right-of-use assets | 312,157 | 300,827 |
Deferred income taxes | 23,122 | 26,804 |
Other | 190,347 | 203,705 |
Total other assets | 2,471,229 | 2,505,783 |
Total Assets | 6,330,602 | 6,252,969 |
Current Liabilities | ||
Accounts payable | 675,529 | 717,176 |
Current portion of long-term debt | 703,250 | 1,282 |
Accrued compensation and benefits | 206,632 | 258,380 |
Accrued losses | 25,646 | 29,054 |
Other accrued liabilities | 323,846 | 325,522 |
Total current liabilities | 1,934,903 | 1,331,414 |
Long-Term Liabilities | ||
Long-term debt, less current maturities | 1,883,106 | 2,378,544 |
Operating lease liabilities | 270,293 | 257,415 |
Other long-term liabilities | 308,340 | 436,176 |
Deferred income taxes | 97,315 | 106,395 |
Total long-term liabilities | 2,559,054 | 3,178,530 |
Commitments and contingencies (Note 15) | ||
Stockholders' Equity | ||
Preferred stock, par value $0.01; authorized 50,000 shares; none issued | ||
Common stock, par value $0.01; authorized 300,000 shares; issued 144,678 and outstanding 129,496 as of February 28, 2022; issued 144,199 and outstanding 129,573 as of May 31, 2021 | 1,295 | 1,295 |
Paid-in capital | 1,085,317 | 1,055,400 |
Treasury stock, at cost | (691,418) | (653,006) |
Accumulated other comprehensive (loss) | (552,308) | (514,884) |
Retained earnings | 1,992,160 | 1,852,259 |
Total RPM International Inc. stockholders' equity | 1,835,046 | 1,741,064 |
Noncontrolling Interest | 1,599 | 1,961 |
Total equity | 1,836,645 | 1,743,025 |
Total Liabilities and Stockholders' Equity | $ 6,330,602 | $ 6,252,969 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Feb. 28, 2022 | May 31, 2021 |
Statement of Financial Position [Abstract] | ||
Trade accounts receivable, allowances | $ 49,794 | $ 55,922 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, authorized | 50,000,000 | 50,000,000 |
Preferred stock, issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, authorized | 300,000,000 | 300,000,000 |
Common stock, issued | 144,678,000 | 144,199,000 |
Common stock, outstanding | 129,496,000 | 129,573,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | ||
Income Statement [Abstract] | |||||
Net Sales | $ 1,433,879 | $ 1,269,395 | $ 4,723,838 | $ 4,361,981 | |
Cost of Sales | 935,293 | 797,454 | 3,029,287 | 2,650,213 | |
Gross Profit | 498,586 | 471,941 | 1,694,551 | 1,711,768 | |
Selling, General and Administrative Expenses | 433,569 | 402,186 | 1,290,245 | 1,197,556 | |
Restructuring Expense | 1,140 | 3,129 | 5,128 | 12,280 | |
Interest Expense | 22,016 | 20,964 | 64,127 | 63,975 | |
Investment (Income) Expense, Net | 4,355 | (11,454) | 1,421 | (33,735) | |
(Gain) on Sales of Assets, Net | (249) | (42,491) | 0 | ||
Other (Income) Expense, Net | (2,742) | 1,256 | (9,001) | 7,507 | |
Income Before Income Taxes | 40,497 | 55,860 | 385,122 | 464,185 | |
Provision for Income Taxes | 7,248 | 17,394 | 91,962 | 117,049 | |
Net Income | 33,249 | 38,466 | 293,160 | 347,136 | |
Less: Net Income Attributable to Noncontrolling Interests | 230 | 224 | 684 | 640 | |
Net Income Attributable to RPM International Inc. Stockholders | $ 33,019 | $ 38,242 | $ 292,476 | $ 346,496 | |
Average Number of Shares of Common Stock Outstanding: | |||||
Basic | 127,943 | 128,447 | 128,013 | 128,455 | |
Diluted | [1] | 129,702 | 129,949 | 129,622 | 129,052 |
Earnings per Share of Common Stock Attributable to RPM International Inc. Stockholders: | |||||
Basic | $ 0.26 | $ 0.30 | $ 2.27 | $ 2.68 | |
Diluted | $ 0.25 | $ 0.29 | $ 2.26 | $ 2.66 | |
[1] | For the three and nine months ended February 28, 2022, no restricted shares were excluded from the calculation of diluted earnings per share as their effect would have been anti-dilutive. For the three and nine months ended February 28, 2021, restricted shares totaling 225,500 and 231,450 were excluded from the calculation of diluted earnings per share as their effect would have been anti-dilutive. In addition, stock appreciation rights (“SARs”) totaling 320,000 and 655,000 for the three and nine months ended February 28, 2022, and 360,000 for both the three and nine months ended February 28, 2021, were excluded from the calculation of diluted earnings per share as their effect would have been anti-dilutive. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 33,249 | $ 38,466 | $ 293,160 | $ 347,136 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments (net of tax of $296; $273; $3,562 and $3,216, respectively) | 16,124 | 25,718 | (69,722) | 102,880 |
Pension and other postretirement benefit liability adjustments (net of tax of $951; $1,356; $3,630 and $3,864, respectively) | 3,057 | 4,719 | 11,086 | 13,623 |
Unrealized (loss) on securities and other (net of tax of $238; $330; $473 and $8, respectively) | (384) | (957) | (287) | (787) |
Unrealized gain (loss) on derivatives (net of tax of $838; $763; $6,551 and $6,425, respectively) | 2,648 | (2,554) | 21,448 | (21,043) |
Total other comprehensive income (loss) | 21,445 | 26,926 | (37,475) | 94,673 |
Total Comprehensive Income | 54,694 | 65,392 | 255,685 | 441,809 |
Less: Comprehensive Income Attributable to Noncontrolling Interests | 238 | 268 | 633 | 752 |
Comprehensive Income Attributable to RPM International Inc. Stockholders | $ 54,456 | $ 65,124 | $ 255,052 | $ 441,057 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation adjustments, Tax | $ 296 | $ 273 | $ 3,562 | $ 3,216 |
Pension and other postretirement benefit liability adjustments, Tax | 951 | 1,356 | 3,630 | 3,864 |
Unrealized (loss) on securities and other, Tax | 238 | 330 | 473 | 8 |
Unrealized gain (loss) on derivatives, Tax | $ 838 | $ 763 | $ 6,551 | $ 6,425 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Feb. 28, 2022 | Feb. 28, 2021 | |
Cash Flows from Operating Activities: | ||
Net Income | $ 293,160 | $ 347,136 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 114,295 | 109,119 |
Restructuring charges, net of payments | (2,341) | (3,830) |
Fair value adjustments to contingent earnout obligations | 2,470 | 1,829 |
Deferred income taxes | (16,908) | 24,473 |
Stock-based compensation expense | 29,287 | 31,157 |
Net loss (gain) on marketable securities | 10,032 | (29,652) |
Net (gain) on sales of assets | (42,491) | 0 |
Other | 112 | (394) |
Changes in assets and liabilities, net of effect from purchases and sales of businesses: | ||
Decrease in receivables | 170,513 | 181,032 |
(Increase) in inventory | (273,519) | (57,702) |
Decrease in prepaid expenses and other current and long-term assets | 506 | 19,133 |
(Decrease) increase in accounts payable | (9,884) | 31,825 |
(Decrease) in accrued compensation and benefits | (47,442) | (1,107) |
(Decrease) increase in accrued losses | (2,985) | 3,054 |
(Decrease) in other accrued liabilities | (68,854) | (7,615) |
Other | 3,448 | |
Cash Provided by Operating Activities | 155,951 | 651,906 |
Cash Flows from Investing Activities: | ||
Capital expenditures | (152,401) | (103,226) |
Acquisition of businesses, net of cash acquired | (116,457) | (114,355) |
Purchase of marketable securities | (13,674) | (30,784) |
Proceeds from sales of marketable securities | 9,004 | 28,773 |
Proceeds from sales of assets | 51,913 | 0 |
Other | (55) | 1,664 |
Cash (Used for) Investing Activities | (221,670) | (217,928) |
Cash Flows from Financing Activities: | ||
Additions to long-term and short-term debt | 300,967 | 0 |
Reductions of long-term and short-term debt | (72,493) | (249,518) |
Cash dividends | (152,575) | (145,457) |
Repurchases of common stock | (27,500) | (24,628) |
Shares of common stock returned for taxes | (10,906) | (17,083) |
Payments of acquisition-related contingent consideration | (5,774) | (2,218) |
Other | (3,824) | (786) |
Cash Provided by(Used for) Financing Activities | 27,895 | (439,690) |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (15,689) | 21,510 |
Net Change in Cash and Cash Equivalents | (53,513) | 15,798 |
Cash and Cash Equivalents at Beginning of Period | 246,704 | 233,416 |
Cash and Cash Equivalents at End of Period | 193,191 | 249,214 |
Cash paid during the period for: | ||
Interest | 58,129 | 58,672 |
Income Taxes, net of refunds | $ 130,862 | $ 117,546 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Paid-In Capital | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Total RPM International Inc. Equity | Noncontrolling Interests |
Beginning Balance at May. 31, 2020 | $ 1,264,663 | $ 1,295 | $ 1,014,428 | $ (580,117) | $ (717,497) | $ 1,544,336 | $ 1,262,445 | $ 2,218 |
Beginning Balance (in shares) at May. 31, 2020 | 129,511,000 | |||||||
Net income | 180,785 | 180,595 | 180,595 | 190 | ||||
Other comprehensive (loss) income | 49,904 | 49,835 | 49,835 | 69 | ||||
Dividends declared and paid | (46,622) | (46,622) | (46,622) | |||||
Stock compensation expense and other deferred compensation, shares granted less shares returned for taxes | 3,341 | $ 5 | 10,451 | (7,115) | 3,341 | |||
Stock compensation expense and other deferred compensation, shares granted less shares returned for taxes (in shares) | 464,000 | |||||||
Ending Balance at Aug. 31, 2020 | 1,452,071 | $ 1,300 | 1,024,879 | (587,232) | (667,662) | 1,678,309 | 1,449,594 | 2,477 |
Ending Balance (in shares) at Aug. 31, 2020 | 129,975,000 | |||||||
Beginning Balance at May. 31, 2020 | 1,264,663 | $ 1,295 | 1,014,428 | (580,117) | (717,497) | 1,544,336 | 1,262,445 | 2,218 |
Beginning Balance (in shares) at May. 31, 2020 | 129,511,000 | |||||||
Net income | 347,136 | |||||||
Other comprehensive (loss) income | 94,673 | |||||||
Share repurchases under repurchase program | $ (24,600) | |||||||
Share repurchases under repurchase program (in shares) | (290,174) | |||||||
Ending Balance at Feb. 28, 2021 | $ 1,549,670 | $ 1,298 | 1,045,585 | (621,836) | (622,937) | 1,745,375 | 1,547,485 | 2,185 |
Ending Balance (in shares) at Feb. 28, 2021 | 129,815,000 | |||||||
Beginning Balance at Aug. 31, 2020 | 1,452,071 | $ 1,300 | 1,024,879 | (587,232) | (667,662) | 1,678,309 | 1,449,594 | 2,477 |
Beginning Balance (in shares) at Aug. 31, 2020 | 129,975,000 | |||||||
Net income | 127,884 | 127,659 | 127,659 | 225 | ||||
Other comprehensive (loss) income | 17,843 | 17,843 | 17,843 | |||||
Dividends declared and paid | (49,397) | (49,397) | (49,397) | |||||
Stock compensation expense and other deferred compensation, shares granted less shares returned for taxes | 2,042 | $ 1 | 10,660 | (8,619) | 2,042 | |||
Stock compensation expense and other deferred compensation, shares granted less shares returned for taxes (in shares) | 131,000 | |||||||
Ending Balance at Nov. 30, 2020 | 1,550,443 | $ 1,301 | 1,035,539 | (595,851) | (649,819) | 1,756,571 | 1,547,741 | 2,702 |
Ending Balance (in shares) at Nov. 30, 2020 | 130,106,000 | |||||||
Net income | 38,466 | 38,242 | 38,242 | 224 | ||||
Other comprehensive (loss) income | 26,926 | 26,882 | 26,882 | 44 | ||||
Dividends declared and paid | (49,438) | (49,438) | (49,438) | |||||
Other noncontrolling interest activity | (785) | (785) | ||||||
Share repurchases under repurchase program | $ (24,628) | $ (3) | 3 | (24,628) | (24,628) | |||
Share repurchases under repurchase program (in shares) | (290,174) | (290,000) | ||||||
Stock compensation expense and other deferred compensation, shares granted less shares returned for taxes | $ 8,686 | 10,043 | (1,357) | 8,686 | ||||
Stock compensation expense and other deferred compensation, shares granted less shares returned for taxes (in shares) | (1,000) | |||||||
Ending Balance at Feb. 28, 2021 | 1,549,670 | $ 1,298 | 1,045,585 | (621,836) | (622,937) | 1,745,375 | 1,547,485 | 2,185 |
Ending Balance (in shares) at Feb. 28, 2021 | 129,815,000 | |||||||
Beginning Balance at May. 31, 2021 | 1,743,025 | $ 1,295 | 1,055,400 | (653,006) | (514,884) | 1,852,259 | 1,741,064 | 1,961 |
Beginning Balance (in shares) at May. 31, 2021 | 129,573,000 | |||||||
Net income | 134,795 | 134,582 | 134,582 | 213 | ||||
Other comprehensive (loss) income | (25,654) | (25,624) | (25,624) | (30) | ||||
Dividends declared and paid | (48,901) | (48,901) | (48,901) | |||||
Share repurchases under repurchase program | (12,500) | $ (1) | 1 | (12,500) | (12,500) | |||
Share repurchases under repurchase program (in shares) | (133,000) | |||||||
Stock compensation expense and other deferred compensation, shares granted less shares returned for taxes | (45) | $ 3 | 5,760 | (5,808) | (45) | |||
Stock compensation expense and other deferred compensation, shares granted less shares returned for taxes (in shares) | 303,000 | |||||||
Ending Balance at Aug. 31, 2021 | 1,790,720 | $ 1,297 | 1,061,161 | (671,314) | (540,508) | 1,937,940 | 1,788,576 | 2,144 |
Ending Balance (in shares) at Aug. 31, 2021 | 129,743,000 | |||||||
Beginning Balance at May. 31, 2021 | 1,743,025 | $ 1,295 | 1,055,400 | (653,006) | (514,884) | 1,852,259 | 1,741,064 | 1,961 |
Beginning Balance (in shares) at May. 31, 2021 | 129,573,000 | |||||||
Net income | 293,160 | |||||||
Other comprehensive (loss) income | (37,475) | |||||||
Share repurchases under repurchase program | $ (27,500) | |||||||
Share repurchases under repurchase program (in shares) | (305,321) | |||||||
Ending Balance at Feb. 28, 2022 | $ 1,836,645 | $ 1,295 | 1,085,317 | (691,418) | (552,308) | 1,992,160 | 1,835,046 | 1,599 |
Ending Balance (in shares) at Feb. 28, 2022 | 129,496,000 | |||||||
Beginning Balance at Aug. 31, 2021 | 1,790,720 | $ 1,297 | 1,061,161 | (671,314) | (540,508) | 1,937,940 | 1,788,576 | 2,144 |
Beginning Balance (in shares) at Aug. 31, 2021 | 129,743,000 | |||||||
Net income | 125,116 | 124,875 | 124,875 | 241 | ||||
Other comprehensive (loss) income | (33,266) | (33,237) | (33,237) | (29) | ||||
Dividends declared and paid | (52,535) | (51,824) | (51,824) | (711) | ||||
Stock compensation expense and other deferred compensation, shares granted less shares returned for taxes | 7,721 | 11,878 | (4,157) | 7,721 | ||||
Stock compensation expense and other deferred compensation, shares granted less shares returned for taxes (in shares) | (66,000) | |||||||
Ending Balance at Nov. 30, 2021 | 1,837,756 | $ 1,297 | 1,073,039 | (675,471) | (573,745) | 2,010,991 | 1,836,111 | 1,645 |
Ending Balance (in shares) at Nov. 30, 2021 | 129,677,000 | |||||||
Net income | 33,249 | 33,019 | 33,019 | 230 | ||||
Other comprehensive (loss) income | 21,445 | 21,437 | 21,437 | 8 | ||||
Dividends declared and paid | (52,134) | (51,850) | (51,850) | (284) | ||||
Share repurchases under repurchase program | $ (15,000) | $ (2) | 2 | (15,000) | (15,000) | |||
Share repurchases under repurchase program (in shares) | (171,933) | (172,000) | ||||||
Stock compensation expense and other deferred compensation, shares granted less shares returned for taxes | $ 11,329 | 12,276 | (947) | 11,329 | ||||
Stock compensation expense and other deferred compensation, shares granted less shares returned for taxes (in shares) | (9,000) | |||||||
Ending Balance at Feb. 28, 2022 | $ 1,836,645 | $ 1,295 | $ 1,085,317 | $ (691,418) | $ (552,308) | $ 1,992,160 | $ 1,835,046 | $ 1,599 |
Ending Balance (in shares) at Feb. 28, 2022 | 129,496,000 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |||||
Feb. 28, 2022 | Nov. 30, 2021 | Aug. 31, 2021 | Feb. 28, 2021 | Nov. 30, 2020 | Aug. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Dividends declared and paid per share | $ 0.40 | $ 0.40 | $ 0.38 | $ 0.38 | $ 0.38 | $ 0.36 |
Consolidation, Noncontrolling I
Consolidation, Noncontrolling Interests and Basis of Presentation | 9 Months Ended |
Feb. 28, 2022 | |
Accounting Policies [Abstract] | |
Consolidation, Noncontrolling Interests and Basis of Presentation | NOTE 1 — CONSOLIDATION, NONCONTROLLING INTERESTS AND BASIS OF PRESENTATION The accompanying unaudited Consolidated Financial Statements have been prepared in accordance with Generally Accepted Accounting Principles in the U.S. (“GAAP”) for interim financial information and the instructions to Form 10-Q. In our opinion, all adjustments (consisting of normal, recurring accruals) considered necessary for a fair presentation have been included for the three- and nine-month periods ended February 28, 2022 and February 28, 2021. For further information, refer to the Consolidated Financial Statements and Notes included in our Annual Report on Form 10-K for the year ended May 31, 2021. Our financial statements include all of our majority-owned subsidiaries. We account for our investments in less-than-majority-owned joint ventures, for which we have the ability to exercise significant influence, under the equity method. Effects of transactions between related companies are eliminated in consolidation. Noncontrolling interests are presented in our Consolidated Financial Statements as if parent company investors (controlling interests) and other minority investors (noncontrolling interests) in partially-owned subsidiaries have similar economic interests in a single entity. As a result, investments in noncontrolling interests are reported as equity in our Consolidated Financial Statements. Additionally, our Consolidated Financial Statements include 100 % of a controlled subsidiary’s earnings, rather than only our share. Transactions between the parent company and noncontrolling interests are reported in equity as transactions between stockholders, provided that these transactions do not create a change in control. Our business is dependent on external weather factors. Historically, we have experienced strong sales and net income in our first, second and fourth fiscal quarters comprising the three-month periods ending August 31, November 30 and May 31, respectively, with weaker performance in our third fiscal quarter (December through February). |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Feb. 28, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | NOTE 2 — NEW ACCOUNTING PRONOUNCEMENTS New Pronouncements Adopted In August 2018, the FASB issued ASU 2018-14, “Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20), Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans,” which makes a number of changes meant to add, modify or remove certain disclosure requirements associated with employers that sponsor defined benefit or other postretirement plans. This guidance is effective for fiscal years ending after December 15, 2020. Early adoption was permitted for all entities and the amendments in this update are required to be applied on a retrospective basis to all periods presented. The adoption of this new guidance, effective for the fiscal year ending May 31, 2021 , did not have a material impact on our Consolidated Financial Statements or disclosures. In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740),” which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption of the amendments is permitted, including adoption in any interim period for which financial statements have not yet been issued. Depending on the amendment, adoption may be applied on the retrospective, modified retrospective or prospective basis. The adoption of this new guidance, effective June 1, 2021 using the prospective method, did not have a material impact on our Consolidated Financial Statements. New Pronouncements Issued We are not aware of any recently issued accounting pronouncements that have not yet been adopted by us and which would have a material impact on our consolidated financial statements. |
Restructuring
Restructuring | 9 Months Ended |
Feb. 28, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | NOTE 3 — RESTRUCTURING We record restructuring charges associated with management-approved restructuring plans to either reorganize one or more of our business segments, or to remove duplicative headcount and infrastructure associated with our businesses. Restructuring charges can include severance costs to eliminate a specified number of employees, infrastructure charges to vacate facilities and consolidate operations, contract cancellation costs and other costs. Restructuring charges are recorded based upon planned employee termination dates and site closure and consolidation plans. The timing of associated cash payments is dependent upon the type of restructuring charge and can extend over a multi-year period. We record the short-term portion of our restructuring liability in Other Accrued Liabilities and the long-term portion, if any, in Other Long-Term Liabilities in our Consolidated Balance Sheets. MAP to Growth Between May and August 2018, we approved and implemented the initial phases of a multi-year restructuring plan, which was originally referred to as the 2020 Margin Acceleration Plan (“2020 MAP to Growth”). The initial phases of our 2020 MAP to Growth affected all of our reportable segments, as well as our corporate/nonoperating segment, and focused on margin improvement by simplifying business processes; reducing inventory categories and rationalizing SKUs; eliminating underperforming businesses; reducing headcount and working capital; and improving operating efficiency. The disruption caused by the outbreak of the Covid pandemic delayed the finalization of our 2020 MAP to Growth past the original target completion date of December 31, 2020. In recognition of the fact our restructuring plan extends past calendar year 2020, we began referring to it simply as our “MAP to Growth.” On May 31, 2021, we formally concluded our MAP to Growth. However, certain projects identified prior to May 31, 2021 are not yet completed. Accordingly, we expect to incur restructuring expense throughout fiscal year 2022. The total expected costs are subject to change as we complete these projects. Our execution of the MAP to Growth drove the de-layering and simplification of management and businesses associated with group realignment. We have implemented four center-led functional areas including manufacturing and operations; procurement and supply chain; information technology; and accounting and finance. Our MAP to Growth optimized our manufacturing facilities and provided more efficient plant and distribution facilities. Through the balance sheet date, in association with our MAP to Growth, we have completed, or are in the process of completing, the planned closure of 31 plants and 28 warehouses. We also expect to incur additional severance and benefit costs as part of our planned closure of these facilities. The current total expected costs associated with this plan are outlined in the table below and increased by approximately $ 0.2 million compared to our previous estimate, primarily attributable to an increase in expected severance and benefit charges of $ 0.3 million, partially offset by a decrease in expected facility closure and other related costs of $ 0.1 million. Following is a summary of the charges recorded in connection with restructuring by reportable segment: Three Months Nine Months Cumulative Total (In thousands) February 28, 2022 February 28, 2022 to Date Costs Construction Products Group ("CPG") Segment: Severance and benefit costs (credits) (a) $ ( 7 ) $ ( 322 ) $ 20,966 $ 21,066 Facility closure and other related costs 325 1,368 7,948 8,191 Other restructuring costs - 4 1,982 1,982 Total Charges $ 318 $ 1,050 $ 30,896 $ 31,239 Performance Coatings Group ("PCG") Segment: Severance and benefit costs (b) $ 65 $ 193 $ 16,552 $ 17,261 Facility closure and other related costs 121 779 7,408 8,188 Other restructuring costs - - 917 947 Total Charges $ 186 $ 972 $ 24,877 $ 26,396 Consumer Segment: Severance and benefit costs $ - $ - $ 12,307 $ 12,307 Facility closure and other related costs 277 788 12,869 13,088 Other restructuring costs - - 4,420 4,420 Total Charges $ 277 $ 788 $ 29,596 $ 29,815 Specialty Products Group ("SPG") Segment: Severance and benefit costs (c) $ 47 $ 249 $ 8,376 $ 8,726 Facility closure and other related costs 312 557 6,147 6,380 Other restructuring costs (credits) - ( 1 ) 1,220 1,220 Total Charges $ 359 $ 805 $ 15,743 $ 16,326 Corporate/Other Segment: Severance and benefit costs (d) $ - $ 1,513 $ 15,051 $ 15,051 Total Charges $ - $ 1,513 $ 15,051 $ 15,051 Consolidated: Severance and benefit costs $ 105 $ 1,633 $ 73,252 $ 74,411 Facility closure and other related costs 1,035 3,492 34,372 35,847 Other restructuring costs - 3 8,539 8,569 Total Charges $ 1,140 $ 5,128 $ 116,163 $ 118,827 (a) Severance and benefit recoveries are associated with the adjustment of previously estimated severance accruals partially offset by the elimination of 16 positions during the nine months ended February 28, 2022. (b) Severance and benefit costs are associated with the elimination of one position and four positions during the three and nine months ended February 28, 2022, respectively. (c) Severance and benefit costs are associated with the elimination of two and 18 positions during the three and nine months ended February 28, 2022, respectively. (d) Severance and benefit costs are associated with the elimination of one position during the nine months ended February 28, 2022. Three Months Nine Months (In thousands) February 28, 2021 February 28, 2021 CPG Segment: Severance and benefit costs (e) $ 255 $ 1,829 Facility closure and other related costs 665 1,473 Other restructuring costs (credits) ( 60 ) 38 Total Charges $ 860 $ 3,340 PCG Segment: Severance and benefit costs (f) $ 118 $ 1,959 Facility closure and other related costs 265 1,109 Other restructuring costs - 213 Total Charges $ 383 $ 3,281 Consumer Segment: Severance and benefit costs (g) $ 11 $ 797 Facility closure and other related costs 1,300 2,682 Other restructuring costs - 302 Total Charges $ 1,311 $ 3,781 SPG Segment: Severance and benefit costs (h) $ 49 $ 461 Facility closure and other related costs 385 1,160 Other restructuring costs - 116 Total Charges $ 434 $ 1,737 Corporate/Other Segment: Severance and benefit costs $ 141 $ 141 Total Charges $ 141 $ 141 Consolidated: Severance and benefit costs $ 574 $ 5,187 Facility closure and other related costs 2,615 6,424 Other restructuring costs (credits) ( 60 ) 669 Total Charges $ 3,129 $ 12,280 (e) Severance and benefit costs are associated with the elimination of three positions and 24 positions during the three and nine months ended February 28, 2021, respectively. (f) Severance and benefit costs are associated with the elimination of five positions and 55 positions during the three and nine months ended February 28, 2021, respectively. (g) Severance and benefit costs for the nine months ended February 28, 2021 are associated with the elimination of three positions, partially offset by the adjustment in severance accruals during the period. There were no position eliminations during the three months ended February 28, 2021. (h) Severance and benefit costs are associated with the elimination of three positions and 27 positions during the three and nine months ended February 28, 2021, respectively. A summary of the activity in the restructuring reserves related to our MAP to Growth is as follows: (in thousands) Severance and Facility Other Total Balance at November 30, 2021 $ 1,571 $ 896 $ - $ 2,467 Additions charged to expense 105 1,035 - 1,140 Cash payments charged against reserve ( 506 ) ( 868 ) - ( 1,374 ) Non-cash charges and other adjustments ( 95 ) ( 28 ) - ( 123 ) Balance at February 28, 2022 $ 1,075 $ 1,035 $ - $ 2,110 (In thousands) Severance and Facility Other Total Balance at June 1, 2021 $ 4,430 $ 1,290 $ - $ 5,720 Additions charged to expense 1,633 3,492 3 5,128 Cash payments charged against reserve ( 4,314 ) ( 3,155 ) - ( 7,469 ) Non-cash charges and other adjustments ( 674 ) ( 592 ) ( 3 ) ( 1,269 ) Balance at February 28, 2022 $ 1,075 $ 1,035 $ - $ 2,110 (In thousands) Severance and Facility Other Total Balance at November 30, 2020 $ 4,655 $ 5,896 $ - $ 10,551 Additions charged to expense 574 2,615 ( 60 ) 3,129 Cash payments charged against reserve ( 1,699 ) ( 2,968 ) - ( 4,667 ) Non-cash charges and other adjustments 71 ( 4,292 ) 60 ( 4,161 ) Balance at February 28, 2021 $ 3,601 $ 1,251 $ - $ 4,852 (In thousands) Severance and Facility Other Total Balance at June 1, 2020 $ 7,357 $ 5,880 $ - $ 13,237 Additions charged to expense 5,187 6,424 669 12,280 Cash payments charged against reserve ( 9,014 ) ( 6,761 ) ( 335 ) ( 16,110 ) Non-cash charges and other adjustments 71 ( 4,292 ) ( 334 ) ( 4,555 ) Balance at February 28, 2021 $ 3,601 $ 1,251 $ - $ 4,852 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Feb. 28, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 4 — FAIR VALUE MEASUREMENTS Financial instruments recorded in the balance sheet include cash and cash equivalents, trade accounts receivable, derivative assets and liabilities, marketable securities, notes and accounts payable, and debt. An allowance for credit losses is established for trade accounts receivable using assessments of current creditworthiness of customers, historical collection experience, the aging of receivables and other currently available evidence. Trade accounts receivable balances are written-off against the allowance if a final determination of uncollectibility is made. All provisions for allowance for doubtful collection of accounts are included in selling, general, and administrative expense. All derivative instruments are recognized in our Consolidated Balance Sheets and measured at fair value. Changes in the fair values of derivative instruments that do not qualify as hedges and/or any ineffective portion of hedges are recognized as a gain or (loss) in our Consolidated Statements of Income in the current period. Changes in the fair value of derivative instruments used effectively as cash flow hedges are recognized in other comprehensive income (loss), along with the change in the value of the hedged item. We do not hold or issue derivative instruments for speculative purposes. The valuation techniques utilized for establishing the fair values of assets and liabilities are based on observable and unobservable inputs. Observable inputs reflect readily obtainable data from independent sources, while unobservable inputs reflect management’s market assumptions. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value, as follows: Level 1 Inputs — Quoted prices for identical instruments in active markets. Level 2 Inputs — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3 Inputs — Instruments with primarily unobservable value drivers. The following tables present our assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy. In addition, with respect to our derivative assets and liabilities measured at fair value, refer to Note 5, “Derivatives and Hedging” for discussion of their classification within the fair value hierarchy. (In thousands) Quoted Prices Significant Significant Fair Value at Available-for-sale debt securities: U.S. Treasury and other government $ - $ 26,193 $ - $ 26,193 Corporate bonds - 171 - 171 Total available-for-sale debt securities - 26,364 - 26,364 Marketable equity securities: Stocks - foreign 807 - - 807 Stocks - domestic 6,798 - - 6,798 Mutual funds - foreign - 43,658 - 43,658 Mutual funds - domestic - 86,250 - 86,250 Total marketable equity securities 7,605 129,908 - 137,513 Contingent consideration - - ( 9,746 ) ( 9,746 ) Total $ 7,605 $ 156,272 $ ( 9,746 ) $ 154,131 (In thousands) Quoted Prices Assets Significant Significant Fair Value at Available-for-sale debt securities: U.S. Treasury and other government $ - $ 26,563 $ - $ 26,563 Corporate bonds - 182 - 182 Total available-for-sale debt securities - 26,745 - 26,745 Marketable equity securities: Stocks - foreign 768 - - 768 Stocks - domestic 6,975 - - 6,975 Mutual funds - foreign - 47,916 - 47,916 Mutual funds - domestic - 86,428 - 86,428 Total marketable equity securities 7,743 134,344 - 142,087 Contingent consideration - - ( 13,335 ) ( 13,335 ) Total $ 7,743 $ 161,089 $ ( 13,335 ) $ 155,497 Our investments in available-for-sale debt securities and marketable equity securities are valued using a market approach. The availability of inputs observable in the market varies from instrument to instrument and depends on a variety of factors, including the type of instrument, whether the instrument is actively traded and other characteristics particular to the transaction. For most of our financial instruments, pricing inputs are readily observable in the market, the valuation methodology used is widely accepted by market participants, and the valuation does not require significant management discretion. For other financial instruments, pricing inputs are less observable in the market and may require management judgment. The contingent consideration represents the estimated fair value of the additional variable cash consideration payable in connection with recent acquisitions that is contingent upon the achievement of certain performance milestones. We estimated the fair value using expected future cash flows over the period in which the obligation is expected to be settled, and applied a discount rate that appropriately captures a market participant's view of the risk associated with the obligation, which are considered to be Level 3 inputs. During the first nine months of fiscal 2022, we recorded an increase in the accrual for approximately $ 2.5 million related to fair value adjustments and paid approximately $ 5.8 million to satisfy contingent consideration obligations relating to certain performance milestones that were established in prior periods and achieved during the current year. During the first nine months of fiscal 2021, we paid approximately $ 2.8 million to satisfy contingent consideration obligations relating to certain performance milestones that were established in prior periods and achieved during the first half of last year, and recorded an increase in the accrual for approximately $ 1.8 million related to fair value adjustments. In the Consolidated Statements of Cash Flows, payments of acquisition-related contingent consideration for the amount recognized at fair value as of the acquisition date are reported in cash flows from financing activities, while payments of contingent consideration in excess of fair value as of the acquisition date, are reported in cash flows from operating activities. The carrying value of our current financial instruments, which include cash and cash equivalents, marketable securities, trade accounts receivable, accounts payable and short-term debt approximates fair value because of the short-term maturity of these financial instruments. At February 28, 2022 and May 31, 2021, the fair value of our long-term debt was estimated using active market quotes, based on our current incremental borrowing rates for similar types of borrowing arrangements, which are Level 2 inputs. Based on the analysis performed, the fair value and the carrying value of our financial instruments and long-term debt as of February 28, 2022 and May 31, 2021 are as follows: At February 28, 2022 (In thousands) Carrying Value Fair Value Cash and cash equivalents $ 193,191 $ 193,191 Marketable equity securities 137,513 137,513 Available-for-sale debt securities 26,364 26,364 Long-term debt, including current portion 2,586,356 2,734,424 At May 31, 2021 (In thousands) Carrying Value Fair Value Cash and cash equivalents $ 246,704 $ 246,704 Marketable equity securities 142,087 142,087 Available-for-sale debt securities 26,745 26,745 Long-term debt, including current portion 2,379,826 2,570,206 |
Derivatives and Hedging
Derivatives and Hedging | 9 Months Ended |
Feb. 28, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging | NOTE 5 — DERIVATIVES AND HEDGING Derivative Instruments and Hedging Activities We are exposed to market risks, such as changes in foreign currency exchange rates and interest rates. To manage the volatility related to these exposures, from time to time, we enter into various derivative transactions. We use various types of derivative instruments including forward contracts and swaps. We formally assess, designate and document, as a hedge of an underlying exposure, each qualifying derivative instrument that will be accounted for as an accounting hedge at inception. Additionally, we assess, both at inception and at least quarterly thereafter, whether the financial instruments used in the hedging transaction are effective at offsetting changes in either the fair values or cash flows of the underlying exposures. Derivatives Designated as Hedges In October 2017, as a means of mitigating the impact of currency fluctuations on our Euro investments in foreign entities, we executed a fair value hedge and two cross currency swaps, in which we paid variable rate interest in Euros and received fixed rate interest in U.S. Dollars with a combined notional amount of approximately € 85.25 million ($ 100 million U.S. Dollar equivalent), and which had a maturity date of November 2022 . This effectively converted a portion of our U.S. Dollar denominated fixed-rate debt to Euro denominated variable rate debt. The fair value hedge was recognized at fair value in our Consolidated Balance Sheets, while changes in the fair value of the hedge were recognized in interest expense in our Consolidated Statements of Income. We designated the swaps as net investment hedges of our net investment in our European operations under ASU 2017-12 and applied the spot method to these hedges. In February 2020, the fair value hedge and two cross-currency swap agreements were terminated, and we received cash in the amount of $ 9.3 million, representing the fair value of the swap and interest accrued through the date of termination. Accordingly, hedge accounting was discontinued and a hedge accounting adjustment to our Senior Notes of $ 1.5 million was recorded and is being amortized to interest expense in the Consolidated Statements of Income through the termination of the 3.450 % Notes in November 2022. Changes in the fair value of the cross-currency swaps due to spot foreign exchange rates are recorded as cumulative translation adjustment within accumulated other comprehensive income ("AOCI") and will remain in AOCI until either the sale or substantially complete liquidation of the hedged subsidiaries. Separately, in February 2020, as a means of mitigating the impact of currency fluctuations on our Euro investments in foreign entities, we executed a cash flow hedge and two cross currency swap agreements, in which we will pay fixed rate interest in Euros and receive variable rate interest in U.S. Dollars with a combined notional amount of approximately € 277.73 million ($ 300 million U.S. Dollar equivalent), and which have a maturity date of February 2023 . This effectively converts our U.S. Dollar denominated variable rate debt to Euro denominated fixed rate debt. The cash flow hedge is recognized at fair value in our Consolidated Balance Sheets, while changes in the fair value of the hedge will be recognized in AOCI when the hedged items affect earnings. Amounts recognized in AOCI will be recognized in earnings in interest expense when the hedged interest payment is accrued. We designated the swaps as net investment hedges of our net investment in our European operations under ASU 2017-12 and applied the spot method to these hedges. The changes in fair value of the derivative instruments that are designated and qualify as hedges of net investments in foreign operations are recognized in AOCI to offset the changes in the values of the net investments being hedged. In addition, in February 2020, as a means of mitigating the variability of the functional-currency-equivalent cash flows associated with the U.S. Dollar denominated term loan facility (referred to as Foreign Borrower’s Term Loan), we executed a cash flow hedge, in which we will pay fixed rate interest in Euros and receive variable rate interest in U.S. Dollars with a notional amount of approximately € 92.52 million ($ 100 million U.S. Dollar equivalent), and which have a maturity date of February 2023 . This effectively converts our U.S. Dollar denominated variable rate debt to Euro denominated fixed rate debt. The cash flow hedge is recognized at fair value in our Consolidated Balance Sheets, while changes in the fair value of the hedge will be recognized in AOCI when the hedged items affect earnings. Amounts recorded in AOCI will be recognized in earnings in interest expense when the hedged interest payment is accrued. In addition, since this currency swap is a hedge of variability of the functional currency equivalent cash flows of a recognized liability to be remeasured at spot exchange rates under ASC 830, an amount that will offset the gain or loss arising from the remeasurement of the hedged liability will be reclassified each period from AOCI to earnings as foreign exchange gain/(loss), which is a component of SG&A expenses. The following table summarizes the location and effects of our derivatives instruments on the Consolidated Statements of Comprehensive Income and Consolidated Statements of Income for gains or losses initially recognized in AOCI in the Consolidated Balance Sheet: Pretax gain/(loss) recognized Pretax gain/(loss) reclassified Three Months Ended Three Months Ended (In thousands) February 28, 2022 February 28, 2021 Income statement location February 28, 2022 February 28, 2021 Interest rate swap (cash flow) $ 1,723 $ 27 Interest (expense) income $ ( 884 ) $ ( 862 ) Cross currency swap (cash flow) 1,263 ( 907 ) Interest (expense) income 149 147 Cross currency swap (cash flow) - - Foreign exchange gain (loss) 1,061 ( 1,243 ) Cross currency swap (net investment) 820 ( 4,036 ) Gain or (loss) on sale of subsidiary - - Total $ 3,806 $ ( 4,916 ) $ 326 $ ( 1,958 ) Pretax gain/(loss) recognized Pretax gain/(loss) reclassified (In thousands) Nine Months Ended Nine Months Ended Derivatives in hedging relationships February 28, 2022 February 28, 2021 Income Statement Location February 28, 2022 February 28, 2021 Interest rate swap (cash flow) $ 2,554 $ ( 720 ) Interest (expense) income $ ( 2,744 ) $ ( 2,475 ) Cross currency swap (cash flow) 8,867 ( 8,211 ) Interest (expense) income 425 498 Cross currency swap (cash flow) - - Foreign exchange gain (loss) 8,481 ( 8,623 ) Cross currency swap (net investment) 22,563 ( 28,126 ) Gain or (loss) on sale of subsidiary - - Total $ 33,984 $ ( 37,057 ) $ 6,162 $ ( 10,600 ) Derivatives Not Designated as Hedges At February 28, 2022, and May 31, 2021, we held one foreign currency forward contract at each period end designed to reduce our exposure to changes in the cash flows of intercompany foreign-currency-denominated loans related to changes in foreign currency exchange rates by fixing the functional currency cash flows. These contracts have not been designated as hedges; therefore, the changes in fair value of the contracts are recognized in earnings as a component of SG&A expenses. Amounts recognized in earnings did not have a material impact on our Consolidated Financial Statements for any period presented. As of February 28, 2022, and May 31, 2021, the notional amounts of the forward contracts held to purchase foreign currencies were $ 240.7 million and $ 191.7 million, respectively. Disclosure about Derivative Instruments All of our derivative assets and liabilities measured at fair value are classified as Level 2 within the fair value hierarchy. We determine the fair value of our derivatives based on valuation methods, which project future cash flows and discount the future amounts to present value using market based observable inputs, including interest rate curves, foreign currency rates, as well as future and basis point spreads, as applicable. The fair values of qualifying and non-qualifying instruments used in hedging transactions as of February 28, 2022 and May 31, 2021 are as follows: (In thousands) Fair Value Derivatives Designated as Hedging Instruments Balance Sheet Location February 28, 2022 May 31, 2021 Assets: Cross Currency Swap (Net Investment) Other Current Assets $ 2,139 $ 6,233 Cross Currency Swap (Cash Flow) Other Current Assets - 516 Liabilities: Interest Rate Swap (Cash Flow) Other Accrued Liabilities $ 716 $ 3,547 Cross Currency Swap (Cash Flow) Other Accrued Liabilities 3,966 - Cross Currency Swap (Net Investment) Other Accrued Liabilities 13,603 1,321 Cross Currency Swap (Net Investment) Other Long-Term Liabilities - 39,228 Cross Currency Swap (Cash Flow) Other Long-Term Liabilities - 13,786 Interest Rate Swap (Cash Flow) Other Long-Term Liabilities - 2,467 (In thousands) Fair Value Derivatives Not Designated as Hedging Instruments Balance Sheet Location February 28, 2022 May 31, 2021 Assets: Foreign Currency Exchange Other Current Assets $ - $ 212 Liabilities: Foreign Currency Exchange Other Accrued Liabilities $ 64 $ - |
Investment (Income) Expense, Ne
Investment (Income) Expense, Net | 9 Months Ended |
Feb. 28, 2022 | |
Other Income and Expenses [Abstract] | |
Investment (Income) Expense, Net | NOTE 6 — INVESTMENT (INCOME) EXPENSE, NET Investment (income) expense, net, consists of the following components: Three Months Ended Nine Months Ended February 28, February 28, February 28, February 28, (In thousands) 2022 2021 2022 2021 Interest (income) $ ( 1,203 ) $ ( 968 ) $ ( 3,349 ) $ ( 2,409 ) Net loss (gain) on marketable securities 8,215 ( 9,480 ) 10,032 ( 29,652 ) Dividend (income) ( 2,657 ) ( 1,006 ) ( 5,262 ) ( 1,674 ) Investment (income) expense, net $ 4,355 $ ( 11,454 ) $ 1,421 $ ( 33,735 ) Net Loss (Gain) on Marketable Securities Three Months Ended Nine Months Ended February 28, February 28, February 28, February 28, (In thousands) 2022 2021 2022 2021 Unrealized losses (gains) on marketable equity securities $ 8,903 $ ( 6,650 ) $ 11,227 $ ( 28,469 ) Realized (gains) on marketable equity securities ( 699 ) ( 2,834 ) ( 1,223 ) ( 1,210 ) Realized losses on available-for-sale debt securities 11 4 28 27 Net loss (gain) on marketable securities $ 8,215 $ ( 9,480 ) $ 10,032 $ ( 29,652 ) |
(Gain) on Sales of Assets, Net
(Gain) on Sales of Assets, Net | 9 Months Ended |
Feb. 28, 2022 | |
Gain on Sales of Assets, Net [Abstract] | |
(Gain) on Sales of Assets, Net | NOTE 7 — (GAIN) ON SALES OF ASSETS, NET During the three and nine months ended February 28, 2022, we recognized net gains of $ 0.2 million and $ 42.5 million, respectively, on the sales of certain real property assets. Most significantly, certain real property assets for the Toronto, Ontario location, within our CPG segment, were sold on September 15, 2021 for $ 49.8 million. We received $ 48.0 million of net proceeds after adjustments and expenses and recognized a gain on sale of $ 41.9 million. The purpose of this transaction was to generate cash by monetizing a real estate market opportunity. In conjunction with the sale, we executed a leaseback agreement commencing September 15, 2021 and expiring on September 14, 2024 . During the second quarter of fiscal 2022, the lease was classified as an operating lease with total future minimum payments during the initial term of the lease of approximately $ 3.4 million. An incremental borrowing rate of 1.3 % was used to determine the ROU asset. We recorded a $ 3.7 million ROU asset in Operating lease right-of-use assets and corresponding liabilities in the same amount in Operating lease liabilities in our Consolidated Balance Sheets during the second quarter of fiscal 2022. |
Other (Income) Expense, Net
Other (Income) Expense, Net | 9 Months Ended |
Feb. 28, 2022 | |
Other Income and Expenses [Abstract] | |
Other (Income) Expense, Net | NOTE 8 — OTHER (INCOME) EXPENSE, NET Other (income) expense, net, consists of the following components: Three Months Ended Nine Months Ended February 28, February 28, February 28, February 28, (In thousands) 2022 2021 2022 2021 Pension non-service (credits)/costs $ ( 2,644 ) $ 1,714 $ ( 8,012 ) $ 8,420 Other ( 98 ) ( 458 ) ( 989 ) ( 913 ) Other (income) expense, net $ ( 2,742 ) $ 1,256 $ ( 9,001 ) $ 7,507 |
Income Taxes
Income Taxes | 9 Months Ended |
Feb. 28, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 9 — INCOME TAXES The effective income tax rate of 17.9 % for the three months ended February 28, 2022 compares to the effective income tax rate of 31.1 % for the three months ended February 28, 2021. The effective income tax rates for the three month periods ended February 28, 2022 and 2021 reflect variances from the 21 % statutory rate due primarily to the unfavorable impact of state and local income taxes, non-deductible business expenses and the net tax on foreign subsidiary income resulting from the global intangible low-taxed income provisions, and the favorable impact of tax benefits related to equity compensation. Additionally, the effective income tax rate for the three month period ended February 28, 2022 reflects net favorable period-over-period changes in foreign tax credit valuation allowances. Further, the effective tax rate for the three-month period ended February 28, 2021, includes a $ 5.3 million discrete charge for an increase to the deferred tax liability for withholding taxes on additional foreign earnings that were no longer considered to be permanently reinvested. The effective income tax rate of 23.9 % for the nine months ended February 28, 2022 compares to the effective income tax rate of 25.2 % for the nine months ended February 28, 2021. The effective income tax rates for the nine-month periods ended February 28, 2022 and 2021 reflect variances from the 21 % statutory rate due primarily to the unfavorable impact of state and local income taxes, non-deductible business expenses and the net tax on foreign subsidiary income resulting from the global intangible low-taxed income provisions, partially offset by tax benefits related to equity compensation. Additionally, the nine month period ended February 28, 2022 reflects net favorable period-over-period changes in foreign tax credit valuation allowances. The nine month period ended February 28, 2021 includes, as noted above, a charge related to an increase in the deferred tax liability for withholding taxes on foreign earnings not considered permanently reinvested. Our deferred tax liability for unremitted foreign earnings was $ 14.0 million as of February 28, 2022, which represents our estimate of the foreign tax cost associated with the remittance of $ 438.2 million of foreign earnings that are not considered to be permanently reinvested. We have not provided for foreign withholding or income taxes on the remaining foreign subsidiaries’ undistributed earnings because such earnings have been retained and reinvested by the subsidiaries as of February 28, 2022. Accordingly, no provision has been made for foreign withholding or income taxes, which may become payable if the remaining undistributed earnings of foreign subsidiaries were remitted to us as dividends. |
Inventories
Inventories | 9 Months Ended |
Feb. 28, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 10 — INVENTORIES Inventories, net of reserves, were composed of the following major classes: (In thousands) February 28, 2022 May 31, 2021 Raw material and supplies $ 561,257 $ 447,220 Finished goods 630,534 490,875 Total Inventory, Net of Reserves $ 1,191,791 $ 938,095 |
Borrowings
Borrowings | 9 Months Ended |
Feb. 28, 2022 | |
Debt Disclosure [Abstract] | |
Borrowings | NOTE 11 — BORROWINGS On January 25, 2022, we closed an offering for $ 300 million aggregate principal amount of 2.95 % Notes due 2032. The proceeds from the 2032 notes will be used to repay a portion of the outstanding borrowings under our revolving credit facility and for general corporate purposes. Interest on the Notes accrues from January 25, 2022 and will be payable semiannually in arrears on January 15 and July 15 of each year, beginning July 15, 2022, at a rate of 2.95 % per year. The notes mature on January 15, 2032 . The indenture governing this indebtedness includes cross-acceleration provisions. Under certain circumstances, where an event of default under our other instruments results in acceleration of the indebtedness under such instruments, holders of the indebtedness under the indenture are entitled to declare amounts outstanding immediately due and payable. |
Stock Repurchase Program
Stock Repurchase Program | 9 Months Ended |
Feb. 28, 2022 | |
Equity [Abstract] | |
Stock Repurchase Program | NOTE 12 — STOCK REPURCHASE PROGRAM On January 8, 2008 , we announced our authorization of a stock repurchase program under which we may repurchase shares of RPM International Inc. common stock at management’s discretion. As announced on November 28, 2018, our goal was to return $ 1.0 billion in capital to stockholders by May 31, 2021 through share repurchases and the retirement of our convertible note during fiscal 2019. On April 16, 2019, after taking into account share repurchases under our existing stock repurchase program to date, our Board of Directors authorized the repurchase of the remaining $ 600.0 million in value of RPM International Inc. common stock by May 31, 2021. As previously announced, given macroeconomic uncertainty resulting from the Covid pandemic, we had suspended stock repurchases under the program, but in January 2021, our Board of Directors authorized the resumption of the stock repurchases. At the time of resuming the program, $ 469.7 million of shares of common stock remained available for repurchase. The Board of Directors also extended the stock repurchase program beyond its original May 31, 2021 expiration date until such time that the remaining $ 469.7 million of capital has been returned to our stockholders. As a result, we may repurchase shares from time to time in the open market or in private transactions at various times and in amounts and for prices that our management deems appropriate, subject to insider trading rules and other securities law restrictions. The timing of our purchases will depend upon prevailing market conditions, alternative uses of capital and other factors. We may limit or terminate the repurchase program at any time. During the three months and nine months ended February 28, 2022, we repurchased 171,933 and 305,321 shares of our common stock at a cost of approximately $ 15.0 million and $ 27.5 million, or an average of $ 87.24 per share and $ 90.07 per share. During the three and nine months ended February 28, 2021, we repurchased 290,174 shares of our common stock at a cost of approximately $ 24.6 million, or an average of $ 84.87 per share. The maximum dollar amount that may yet be repurchased under our stock repurchase program was approximately $ 392.3 million at February 28, 2022. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Feb. 28, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 13 — EARNINGS PER SHARE The following table sets forth the reconciliation of the numerator and denominator of basic and diluted earnings per share for the three- and nine-month periods ended February 28, 2022 and 2021. Three Months Ended Nine Months Ended February 28, February 28, February 28, February 28, (In thousands, except per share amounts) 2022 2021 2022 2021 Numerator for earnings per share: Net income attributable to RPM International Inc. stockholders $ 33,019 $ 38,242 $ 292,476 $ 346,496 Less: Allocation of earnings and dividends to participating securities ( 133 ) ( 185 ) ( 2,222 ) ( 2,740 ) Net income available to common shareholders - basic 32,886 38,057 290,254 343,756 Add: Undistributed earnings reallocated to unvested shareholders - - - 9 Reverse: Allocation of earnings and dividends to participating securities 133 185 2,222 - Net income available to common shareholders - diluted $ 33,019 $ 38,242 $ 292,476 $ 343,765 Denominator for basic and diluted earnings per share: Basic weighted average common shares 127,943 128,447 128,013 128,455 Average diluted options and awards 1,759 1,502 1,609 597 Total shares for diluted earnings per share (1) 129,702 129,949 129,622 129,052 Earnings Per Share of Common Stock Attributable to RPM International Inc. Stockholders: Basic Earnings Per Share of Common Stock $ 0.26 $ 0.30 $ 2.27 $ 2.68 Method used to calculate basic earnings per share Two-class Two-class Two-class Two-class Diluted Earnings Per Share of Common Stock $ 0.25 $ 0.29 $ 2.26 $ 2.66 Method used to calculate diluted earnings per share Treasury Treasury Treasury Two-class (1) For the three and nine months ended February 28, 2022, no restricted shares were excluded from the calculation of diluted earnings per share as their effect would have been anti-dilutive. For the three and nine months ended February 28, 2021, restricted shares totaling 225,500 and 231,450 were excluded from the calculation of diluted earnings per share as their effect would have been anti-dilutive. In addition, stock appreciation rights (“SARs”) totaling 320,000 and 655,000 for the three and nine months ended February 28, 2022, and 360,000 for both the three and nine months ended February 28, 2021, were excluded from the calculation of diluted earnings per share as their effect would have been anti-dilutive. |
Pension Plans
Pension Plans | 9 Months Ended |
Feb. 28, 2022 | |
Retirement Benefits [Abstract] | |
Pension Plans | NOTE 14 — PENSION PLANS We offer defined benefit pension plans, defined contribution pension plans, and various postretirement benefit plans. The following tables provide the retirement-related benefit plans’ impact on income before income taxes for the three and nine months ended February 28, 2022 and 2021: U.S. Plans Non-U.S. Plans Three Months Ended Three Months Ended (In thousands) February 28, February 28, February 28, February 28, Pension Benefits 2022 2021 2022 2021 Service cost $ 11,914 $ 11,130 $ 1,348 $ 1,406 Interest cost 3,842 3,806 1,282 1,122 Expected return on plan assets ( 10,386 ) ( 8,279 ) ( 2,073 ) ( 1,607 ) Amortization of: Prior service cost (credit) 1 2 ( 38 ) ( 35 ) Net actuarial losses recognized 4,225 7,501 114 526 Net Periodic Benefit Cost $ 9,596 $ 14,160 $ 633 $ 1,412 U.S. Plans Non-U.S. Plans Three Months Ended Three Months Ended (In thousands) February 28, February 28, February 28, February 28, Postretirement Benefits 2022 2021 2022 2021 Service cost $ - $ - $ 432 $ 431 Interest cost 10 19 299 283 Amortization of: Prior service (credit) ( 40 ) ( 42 ) - - Net actuarial losses recognized 15 10 32 130 Net Periodic Benefit (Credit) Cost $ ( 15 ) $ ( 13 ) $ 763 $ 844 U.S. Plans Non-U.S. Plans Nine Months Ended Nine Months Ended (In thousands) February 28, February 28, February 28, February 28, Pension Benefits 2022 2021 2022 2021 Service cost $ 35,742 $ 33,390 $ 4,044 $ 4,218 Interest cost 11,526 11,418 3,846 3,366 Expected return on plan assets ( 31,158 ) ( 24,837 ) ( 6,219 ) ( 4,821 ) Amortization of: Prior service cost (credit) 3 6 ( 114 ) ( 105 ) Net actuarial losses recognized 12,675 22,503 342 1,578 Net Periodic Benefit Cost $ 28,788 $ 42,480 $ 1,899 $ 4,236 U.S. Plans Non-U.S. Plans Nine Months Ended Nine Months Ended (In thousands) February 28, February 28, February 28, February 28, Postretirement Benefits 2022 2021 2022 2021 Service cost $ - $ - $ 1,296 $ 1,293 Interest cost 30 57 897 849 Amortization of: Prior service (credit) ( 120 ) ( 126 ) - - Net actuarial losses recognized 45 30 96 390 Net Periodic Benefit (Credit) Cost $ ( 45 ) $ ( 39 ) $ 2,289 $ 2,532 Due to strong asset returns for the year ending May 31, 2021, as well as contributions made during the year, net periodic pension and U.S. postretirement cost for fiscal 2022 is lower than our fiscal 2021 expense. We expect that pension expense will fluctuate on a year-to-year basis, depending upon the investment performance of plan assets and potential changes in interest rates, and these fluctuations may have a material impact on our consolidated financial results in the future. We previously disclosed in our financial statements for the fiscal year ended May 31, 2021 that we expected to contribute approximately $ 1.0 million to our retirement plans in the U.S. and approximately $ 5.0 million to plans outside the U.S. during the current fiscal year and that we will evaluate whether to make additional contributions throughout fiscal 2022. As a result, we contributed $ 64.6 million, to the pension plans in the U.S. during the current quarter, which will result in total expected U.S. contributions of $ 65.6 million. |
Contingencies and Accrued Losse
Contingencies and Accrued Losses | 9 Months Ended |
Feb. 28, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Accrued Losses | NOTE 15 — CONTINGENCIES AND ACCRUED LOSSES Product Liability Matters We provide, through our wholly owned insurance subsidiaries, certain insurance coverage, primarily product liability coverage, to our other subsidiaries. Excess coverage is provided by third-party insurers. Our product liability accruals provide for these potential losses as well as other uninsured claims. Product liability accruals are established based upon actuarial calculations of potential liability using industry experience, actual historical experience and actuarial assumptions developed for similar types of product liability claims, including development factors and lag times. To the extent there is a reasonable possibility that potential losses could exceed the amounts already accrued, we believe that the amount of any such additional loss would be immaterial to our results of operations, liquidity and consolidated financial position. Warranty Matters We also offer warranties on many of our products, as well as long-term warranty programs at certain of our businesses, and have established product warranty liabilities. We review these liabilities for adequacy on a quarterly basis and adjust them as necessary. The primary factors that could affect these liabilities may include changes in performance rates as well as costs of replacement. Provision for estimated warranty costs is recorded at the time of sale and periodically adjusted, as required, to reflect actual experience. It is probable that we will incur future losses related to warranty claims we have received but that have not been fully investigated and related to claims not yet received. While our warranty liabilities represent our best estimates at February 28, 2022, we can provide no assurances that we will not experience material claims in the future or that we will not incur significant costs to resolve such claims beyond the amounts accrued or beyond what we may recover from our suppliers. Based upon the nature of the expense, product warranty expense is recorded as a component of cost of sales or within SG&A. Also, due to the nature of our businesses, the amount of claims paid can fluctuate from one period to the next. While our warranty liabilities represent our best estimates of our expected losses at any given time, from time-to-time we may revise our estimates based on our experience relating to factors such as weather conditions, specific circumstances surrounding product installations and other factors. The following table includes the changes in our accrued warranty balances: Three Months Ended Nine Months Ended February 28, February 28, February 28, February 28, (In thousands) 2022 2021 2022 2021 Beginning Balance $ 12,886 $ 12,050 $ 13,175 $ 11,106 Deductions (1) ( 5,186 ) ( 4,745 ) ( 16,868 ) ( 18,327 ) Provision charged to expense 4,628 5,473 16,021 19,999 Ending Balance $ 12,328 $ 12,778 $ 12,328 $ 12,778 (1) Primarily claims paid during the year. Environmental Matters Like other companies participating in similar lines of business, some of our subsidiaries are involved in environmental remediation matters. It is our policy to accrue remediation costs when the liability is probable and the costs are reasonably estimable, which generally is not later than at completion of a feasibility study or when we have committed to an appropriate plan of action. We also take into consideration the estimated period of time over which payments may be required. The liabilities are reviewed periodically and, as investigation and remediation activities continue, adjustments are made as necessary. Liabilities for losses from environmental remediation obligations do not consider the effects of inflation and anticipated expenditures are not discounted to their present value. The liabilities are not offset by possible recoveries from insurance carriers or other third parties, but do reflect anticipated allocations among potentially responsible parties at federal superfund sites or similar state-managed sites, third party indemnity obligations, and an assessment of the likelihood that such parties will fulfill their obligations at such sites. Other Contingencies One of our subsidiaries has been the subject of a proceeding in which one of its former distributors brought suit against our subsidiary for breach of contract. Following a June 2017 trial, a jury determined that the distributor was not entitled to any damages on the distributor’s claims against our subsidiary. On appeal, the Ninth Circuit Court of Appeals ordered a new trial with respect to certain issues. On December 10, 2021, a new jury awarded $ 6.0 million in damages to the distributor. Per the parties’ contracts, the distributor may also be entitled to recover some portion of its attorneys’ fees from our subsidiary. Our subsidiary is currently evaluating its options for an appeal, including contractual arguments limiting the distributor’s recoverable damages. As a result of the jury’s award and in consideration of our subsidiary’s potential arguments on appeal, we have accrued $ 2.6 million for this matter in the second quarter of fiscal 2022, which we believe to be the low end of the range of loss. While an ultimate loss in excess of the accrued amount is reasonably possible, we believe that the high end of the range of loss would not be materially more than the $ 6.0 million noted above. |
Revenue
Revenue | 9 Months Ended |
Feb. 28, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | NOTE 16 – REVENUE We operate a portfolio of businesses and product lines that manufacture and sell a variety of specialty paints, protective coatings, roofing systems, sealants and adhesives. We disaggregate revenues from the sales of our products and services based upon geographical location by each of our reportable segments, which are aligned by similar economic factors, trends and customers, which best depict the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. See Note 17, “Segment Information,” to the Consolidated Financial Statements for further details regarding our disaggregated revenues, as well as a description of each of the unique revenue streams related to each of our four reportable segments. Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. The majority of our revenue is recognized at a point in time. However, we also record revenues generated under construction contracts, mainly in connection with the installation of specialized roofing and flooring systems and related services. For certain polymer flooring installation projects, we account for our revenue using the output method, as we consider square footage of completed flooring to be the best measure of progress toward the complete satisfaction of the performance obligation. In contrast, for certain of our roofing installation projects, we account for our revenue using the input method, as that method was the best measure of performance as it considers costs incurred in relation to total expected project costs, which essentially represents the transfer of control for roofing systems to the customer. In general, for our construction contracts, we record contract revenues and related costs as our contracts progress on an over-time model. We have elected to apply the practical expedient to recognize revenue net of allowances for returns and any taxes collected from customers, which are subsequently remitted to governmental authorities. Payment terms and conditions vary by contract type, although our customers’ payment terms generally include a requirement to pay within 30 to 60 days of fulfilling our performance obligations . In instances where the timing of revenue recognition differs from the timing of invoicing, we have determined that our contracts generally do not include a significant financing component. We have elected to apply the practical expedient to treat all shipping and handling costs as fulfillment costs, as a significant portion of these costs are incurred prior to control transfer. Significant Judgments Our contracts with customers may include promises to transfer multiple products and/or services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. For example, judgment is required to determine whether products sold in connection with the sale of installation services are considered distinct and accounted for separately, or not distinct and accounted for together with installation services and recognized over time. We provide customer rebate programs and incentive offerings, including special pricing and co-operative advertising arrangements, promotions and other volume-based incentives. These customer programs and incentives are considered variable consideration and recognized as a reduction of net sales. Up-front consideration provided to customers is capitalized as a component of other assets and amortized over the estimated life of the contractual arrangement. We include in revenue variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the variable consideration is resolved. In general, this determination is made based upon known customer program and incentive offerings at the time of sale, and expected sales volume forecasts as it relates to our volume-based incentives. This determination is updated each reporting period. Certain of our contracts include contingent consideration that is receivable only upon the final inspection and acceptance of a project. We include estimates of such variable consideration in our transaction price. Based on historical experience, we consider the probability-based expected value method appropriate to estimate the amount of such variable consideration. Our products are generally sold with a right of return and we may provide other credits or incentives, which are accounted for as variable consideration when estimating the amount of revenue to recognize. Returns and credits are estimated at contract inception and updated at the end of each reporting period as additional information becomes available. We record a right of return liability to accrue for expected customer returns. Historical actual returns are used to estimate future returns as a percentage of current sales. Obligations for returns and refunds were not material individually or in the aggregate. We offer assurance type warranties on our products as well as separately sold warranty contracts. Revenue related to warranty contracts that are sold separately is recognized over the life of the warranty term. Warranty liabilities for our assurance type warranties are discussed further in Note 15, “Contingencies and Accrued Losses,” to the Consolidated Financial Statements. Contract Balances Timing of revenue recognition may differ from the timing of invoicing customers. Our contract assets are recorded for products and services that have been provided to our customer but have not yet been billed, and are included in prepaid expenses and other current assets in our consolidated balance sheets. Our short-term contract liabilities consist of advance payments, or deferred revenue, and are included in other accrued liabilities in our consolidated balance sheets. Trade accounts receivable, net of allowances, and net contract assets consisted of the following: (In thousands, except percentages) February 28, 2022 November 30, 2021 $ Change % Change Trade accounts receivable, less allowances $ 1,085,396 $ 1,173,494 $ ( 88,098 ) - 7.5 % Contract assets $ 47,638 $ 47,615 $ 23 0.0 % Contract liabilities - short-term ( 37,157 ) ( 36,279 ) ( 878 ) 2.4 % Net Contract Assets $ 10,481 $ 11,336 $ ( 855 ) - 7.5 % (In thousands, except percentages) February 28, 2022 May 31, 2021 $ Change % Change Trade accounts receivable, less allowances $ 1,085,396 $ 1,280,806 $ ( 195,410 ) - 15.3 % Contract assets $ 47,638 $ 33,217 $ 14,421 43.4 % Contract liabilities - short-term ( 37,157 ) ( 33,112 ) ( 4,045 ) 12.2 % Net Contract Assets $ 10,481 $ 105 $ 10,376 The $ 0.9 million decrease in our net contract assets from November 30, 2021 to February 28, 2022 resulted primarily due to the timing and volume of construction jobs in progress at February 28, 2022 versus November 30, 2021. The change in performance is a function of relatively consistent weather during the first nine months of fiscal 2022. This enabled our teams to perform a consistent amount of work on existing jobs throughout the period, allowing our unbilled revenue to remain elevated. The $ 10.4 million increase in our net contract assets from May 31, 2021 to February 28, 2022 resulted primarily due to the timing and volume of construction jobs in progress at February 28, 2022 versus May 31, 2021. We also record long-term deferred revenue, which amounted to $ 67.1 million, $ 67.2 million and $ 67.8 million as of February 28, 2022, November 30, 2021, and May 31, 2021, respectively. The long-term portion of deferred revenue is related to warranty contracts and is included in other long-term liabilities in our consolidated balance sheets. We have elected to adopt the practical expedient to not disclose the aggregate amount of transaction price allocated to performance obligations that are unsatisfied as of the end of the reporting period for performance obligations that are part of a contract with an original expected duration of one year or less. We recognize an asset for the incremental costs of obtaining a contract with a customer if we expect the benefit of those costs to be longer than one year. As our contract terms are primarily one year or less in duration, we have elected to apply a practical expedient to expense costs as incurred for costs to obtain a contract with a customer when the amortization period would have been one year or less. These costs include our internal sales force compensation program and certain incentive programs as we have determined annual compensation is commensurate with annual sales activities. Allowance for Credit Losses Our primary allowance for credit losses is the allowance for doubtful accounts. The allowance for doubtful accounts reduces the trade accounts receivable balance to the estimated net realizable value equal to the amount that is expected to be collected. The allowance was based on assessments of current creditworthiness of customers, historical collection experience, the aging of receivables and other currently available evidence. Trade accounts receivable balances are written-off against the allowance if a final determination of uncollectibility is made. All provisions for allowances for doubtful collection of accounts are included in selling, general and administrative expenses. The following tables summarize the activity for the allowance for credit losses for the three and nine months ended February 28, 2022 and 2021: Three Months Ended Nine Months Ended February 28, February 28, February 28, February 28, (In thousands) 2022 2021 2022 2021 Beginning Balance $ 50,932 $ 53,542 $ 55,922 $ 55,847 Bad debt provision 571 3,800 2,645 4,968 Uncollectible accounts written off, net of recoveries ( 2,436 ) ( 5,661 ) ( 7,335 ) ( 11,008 ) Translation adjustments 727 522 ( 1,438 ) 2,396 Ending Balance $ 49,794 $ 52,203 $ 49,794 $ 52,203 |
Segment Information
Segment Information | 9 Months Ended |
Feb. 28, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 17 — SEGMENT INFORMATION We operate a portfolio of businesses and product lines that manufacture and sell a variety of specialty paints, protective coatings and roofing systems, flooring solutions, sealants, cleaners and adhesives. We manage our portfolio by organizing our businesses and product lines into four reportable segments as outlined below, which also represent our operating segments. Within each operating segment, we manage product lines and businesses which generally address common markets, share similar economic characteristics, utilize similar technologies and can share manufacturing or distribution capabilities. Our four operating segments represent components of our business for which separate financial information is available that is utilized on a regular basis by our chief operating decision maker in determining how to allocate the assets of the company and evaluate performance. These four operating segments are each managed by an operating segment manager, who is responsible for the day-to-day operating decisions and performance evaluation of the operating segment’s underlying businesses. We evaluate the profit performance of our segments primarily based on income before income taxes, but also look to earnings (loss) before interest and taxes (“EBIT”), as a performance evaluation measure because interest (income) expense, net (the combination of interest expense and investment income, net) is essentially related to corporate functions, as opposed to segment operations. Our CPG reportable segment products are sold throughout North America and also account for the majority of our international sales. Our construction product lines are sold directly to contractors, distributors and end-users, such as industrial manufacturing facilities, public institutions and other commercial customers. Products and services within this reportable segment include construction sealants and adhesives, coatings and chemicals, roofing systems, concrete admixture and repair products, building envelope solutions, insulated cladding, flooring systems, and weatherproofing solutions. Our PCG reportable segment products are sold throughout North America, as well as internationally, and are sold directly to contractors, distributors and end-users, such as industrial manufacturing facilities, public institutions and other commercial customers. Products and services within this reportable segment include high-performance flooring solutions, corrosion control and fireproofing coatings, infrastructure repair systems, fiberglass reinforced plastic gratings and drainage systems. Our Consumer reportable segment manufactures and markets professional use and do-it-yourself (“DIY”) products for a variety of mainly consumer applications, including home improvement and personal leisure activities. Our Consumer reportable segment’s major manufacturing and distribution operations are located primarily in North America, along with a few locations in Europe and other parts of the world. Our Consumer reportable segment products are primarily sold directly to mass merchandisers, home improvement centers, hardware stores, paint stores, craft shops and through distributors. The Consumer reportable segment offers products that include specialty, hobby and professional paints; caulks; adhesives; cleaners; sandpaper and other abrasives; silicone sealants and wood stains. Our SPG reportable segment products are sold throughout North America and a few international locations, primarily in Europe. Our specialty product lines are sold directly to contractors, distributors and end-users, such as industrial manufacturing facilities, public institutions and other commercial customers. The SPG reportable segment offers products that include industrial cleaners, restoration services equipment, colorants, nail enamels, exterior finishes, edible coatings and specialty glazes for pharmaceutical and food industries, and other specialty original equipment manufacturer (“OEM”) coatings. In addition to our four reportable segments, there is a category of certain business activities and expenses, referred to as corporate/other, that does not constitute an operating segment. This category includes our corporate headquarters and related administrative expenses, results of our captive insurance companies, gains or losses on the sales of certain assets and other expenses not directly associated with any reportable segment. Assets related to the corporate/other category consist primarily of investments, prepaid expenses and headquarters’ property and equipment. These corporate and other assets and expenses reconcile reportable segment data to total consolidated income before income taxes and identifiable assets. We reflect income from our joint ventures on the equity method, and receive royalties from our licensees. The following tables present a disaggregation of revenues by geography, and reflect the results of our reportable segments consistent with our management philosophy, by representing the information we utilize, in conjunction with various strategic, operational and other financial performance criteria, in evaluating the performance of our portfolio of businesses. Three Months Ended February 28, 2022 CPG PCG Consumer SPG Consolidated (In thousands) Net Sales (based on shipping location) United States $ 259,606 $ 167,623 $ 403,524 $ 154,516 $ 985,269 Foreign Canada 39,479 17,220 29,432 1,378 87,509 Europe 114,226 54,057 46,695 24,121 239,099 Latin America 47,459 7,720 7,707 368 63,254 Asia Pacific 21,256 5,431 4,259 8,988 39,934 Other Foreign - 18,814 - - 18,814 Total Foreign 222,420 103,242 88,093 34,855 448,610 Total $ 482,026 $ 270,865 $ 491,617 $ 189,371 $ 1,433,879 Three Months Ended February 28, 2021 CPG PCG Consumer SPG Consolidated (In thousands) Net Sales (based on shipping location) United States $ 195,193 $ 132,075 $ 381,712 $ 139,862 $ 848,842 Foreign Canada 32,853 16,303 31,833 2,244 83,233 Europe 106,172 53,156 53,097 19,405 231,830 Latin America 39,555 6,681 7,593 409 54,238 Asia Pacific 19,020 5,640 3,507 7,241 35,408 Other Foreign 3,176 12,668 - - 15,844 Total Foreign 200,776 94,448 96,030 29,299 420,553 Total $ 395,969 $ 226,523 $ 477,742 $ 169,161 $ 1,269,395 Nine Months Ended February 28, 2022 CPG PCG Consumer SPG Consolidated (In thousands) Net Sales (based on shipping location) United States $ 974,201 $ 531,655 $ 1,267,373 $ 457,115 $ 3,230,344 Foreign Canada 184,940 54,355 93,714 5,609 338,618 Europe 377,220 172,850 162,032 74,446 786,548 Latin America 144,366 20,958 22,935 1,407 189,666 Asia Pacific 59,811 17,579 13,169 26,473 117,032 Other Foreign 40 61,590 - - 61,630 Total Foreign 766,377 327,332 291,850 107,935 1,493,494 Total $ 1,740,578 $ 858,987 $ 1,559,223 $ 565,050 $ 4,723,838 Nine Months Ended February 28, 2021 CPG PCG Consumer SPG Consolidated (In thousands) Net Sales (based on shipping location) United States $ 784,246 $ 436,617 $ 1,332,531 $ 413,571 $ 2,966,965 Foreign Canada 137,181 51,613 110,201 6,373 305,368 Europe 344,478 180,681 184,161 58,044 767,364 Latin America 114,545 19,413 23,755 1,290 159,003 Asia Pacific 57,607 16,323 15,770 23,961 113,661 Other Foreign 9,122 40,498 - - 49,620 Total Foreign 662,933 308,528 333,887 89,668 1,395,016 Total $ 1,447,179 $ 745,145 $ 1,666,418 $ 503,239 $ 4,361,981 Three Months Ended Nine Months Ended (In thousands) February 28, February 28, February 28, February 28, Income (Loss) Before Income Taxes 2022 2021 2022 2021 CPG Segment $ 31,498 $ 14,431 $ 276,223 $ 184,613 PCG Segment 24,917 12,158 97,849 64,719 Consumer Segment 16,893 42,724 95,912 263,813 SPG Segment 25,881 24,560 71,028 73,415 Corporate/Other ( 58,692 ) ( 38,013 ) ( 155,890 ) ( 122,375 ) Consolidated $ 40,497 $ 55,860 $ 385,122 $ 464,185 (In thousands) February 28, May 31, Identifiable Assets 2022 2021 CPG Segment $ 1,938,999 $ 1,815,303 PCG Segment 1,092,037 1,051,334 Consumer Segment 2,344,960 2,386,703 SPG Segment 823,342 772,540 Corporate/Other 131,264 227,089 Consolidated $ 6,330,602 $ 6,252,969 |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 9 Months Ended |
Feb. 28, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | NEW ACCOUNTING PRONOUNCEMENTS New Pronouncements Adopted In August 2018, the FASB issued ASU 2018-14, “Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20), Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans,” which makes a number of changes meant to add, modify or remove certain disclosure requirements associated with employers that sponsor defined benefit or other postretirement plans. This guidance is effective for fiscal years ending after December 15, 2020. Early adoption was permitted for all entities and the amendments in this update are required to be applied on a retrospective basis to all periods presented. The adoption of this new guidance, effective for the fiscal year ending May 31, 2021 , did not have a material impact on our Consolidated Financial Statements or disclosures. In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740),” which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption of the amendments is permitted, including adoption in any interim period for which financial statements have not yet been issued. Depending on the amendment, adoption may be applied on the retrospective, modified retrospective or prospective basis. The adoption of this new guidance, effective June 1, 2021 using the prospective method, did not have a material impact on our Consolidated Financial Statements. New Pronouncements Issued We are not aware of any recently issued accounting pronouncements that have not yet been adopted by us and which would have a material impact on our consolidated financial statements. |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Feb. 28, 2022 | |
Restructuring and Related Activities [Abstract] | |
Summary of Charges Recorded in Connection with Restructuring by Reportable Segment | Following is a summary of the charges recorded in connection with restructuring by reportable segment: Three Months Nine Months Cumulative Total (In thousands) February 28, 2022 February 28, 2022 to Date Costs Construction Products Group ("CPG") Segment: Severance and benefit costs (credits) (a) $ ( 7 ) $ ( 322 ) $ 20,966 $ 21,066 Facility closure and other related costs 325 1,368 7,948 8,191 Other restructuring costs - 4 1,982 1,982 Total Charges $ 318 $ 1,050 $ 30,896 $ 31,239 Performance Coatings Group ("PCG") Segment: Severance and benefit costs (b) $ 65 $ 193 $ 16,552 $ 17,261 Facility closure and other related costs 121 779 7,408 8,188 Other restructuring costs - - 917 947 Total Charges $ 186 $ 972 $ 24,877 $ 26,396 Consumer Segment: Severance and benefit costs $ - $ - $ 12,307 $ 12,307 Facility closure and other related costs 277 788 12,869 13,088 Other restructuring costs - - 4,420 4,420 Total Charges $ 277 $ 788 $ 29,596 $ 29,815 Specialty Products Group ("SPG") Segment: Severance and benefit costs (c) $ 47 $ 249 $ 8,376 $ 8,726 Facility closure and other related costs 312 557 6,147 6,380 Other restructuring costs (credits) - ( 1 ) 1,220 1,220 Total Charges $ 359 $ 805 $ 15,743 $ 16,326 Corporate/Other Segment: Severance and benefit costs (d) $ - $ 1,513 $ 15,051 $ 15,051 Total Charges $ - $ 1,513 $ 15,051 $ 15,051 Consolidated: Severance and benefit costs $ 105 $ 1,633 $ 73,252 $ 74,411 Facility closure and other related costs 1,035 3,492 34,372 35,847 Other restructuring costs - 3 8,539 8,569 Total Charges $ 1,140 $ 5,128 $ 116,163 $ 118,827 (a) Severance and benefit recoveries are associated with the adjustment of previously estimated severance accruals partially offset by the elimination of 16 positions during the nine months ended February 28, 2022. (b) Severance and benefit costs are associated with the elimination of one position and four positions during the three and nine months ended February 28, 2022, respectively. (c) Severance and benefit costs are associated with the elimination of two and 18 positions during the three and nine months ended February 28, 2022, respectively. (d) Severance and benefit costs are associated with the elimination of one position during the nine months ended February 28, 2022. Three Months Nine Months (In thousands) February 28, 2021 February 28, 2021 CPG Segment: Severance and benefit costs (e) $ 255 $ 1,829 Facility closure and other related costs 665 1,473 Other restructuring costs (credits) ( 60 ) 38 Total Charges $ 860 $ 3,340 PCG Segment: Severance and benefit costs (f) $ 118 $ 1,959 Facility closure and other related costs 265 1,109 Other restructuring costs - 213 Total Charges $ 383 $ 3,281 Consumer Segment: Severance and benefit costs (g) $ 11 $ 797 Facility closure and other related costs 1,300 2,682 Other restructuring costs - 302 Total Charges $ 1,311 $ 3,781 SPG Segment: Severance and benefit costs (h) $ 49 $ 461 Facility closure and other related costs 385 1,160 Other restructuring costs - 116 Total Charges $ 434 $ 1,737 Corporate/Other Segment: Severance and benefit costs $ 141 $ 141 Total Charges $ 141 $ 141 Consolidated: Severance and benefit costs $ 574 $ 5,187 Facility closure and other related costs 2,615 6,424 Other restructuring costs (credits) ( 60 ) 669 Total Charges $ 3,129 $ 12,280 (e) Severance and benefit costs are associated with the elimination of three positions and 24 positions during the three and nine months ended February 28, 2021, respectively. (f) Severance and benefit costs are associated with the elimination of five positions and 55 positions during the three and nine months ended February 28, 2021, respectively. (g) Severance and benefit costs for the nine months ended February 28, 2021 are associated with the elimination of three positions, partially offset by the adjustment in severance accruals during the period. There were no position eliminations during the three months ended February 28, 2021. (h) Severance and benefit costs are associated with the elimination of three positions and 27 positions during the three and nine months ended February 28, 2021, respectively. |
Summary of Activity in Restructuring Reserves | A summary of the activity in the restructuring reserves related to our MAP to Growth is as follows: (in thousands) Severance and Facility Other Total Balance at November 30, 2021 $ 1,571 $ 896 $ - $ 2,467 Additions charged to expense 105 1,035 - 1,140 Cash payments charged against reserve ( 506 ) ( 868 ) - ( 1,374 ) Non-cash charges and other adjustments ( 95 ) ( 28 ) - ( 123 ) Balance at February 28, 2022 $ 1,075 $ 1,035 $ - $ 2,110 (In thousands) Severance and Facility Other Total Balance at June 1, 2021 $ 4,430 $ 1,290 $ - $ 5,720 Additions charged to expense 1,633 3,492 3 5,128 Cash payments charged against reserve ( 4,314 ) ( 3,155 ) - ( 7,469 ) Non-cash charges and other adjustments ( 674 ) ( 592 ) ( 3 ) ( 1,269 ) Balance at February 28, 2022 $ 1,075 $ 1,035 $ - $ 2,110 (In thousands) Severance and Facility Other Total Balance at November 30, 2020 $ 4,655 $ 5,896 $ - $ 10,551 Additions charged to expense 574 2,615 ( 60 ) 3,129 Cash payments charged against reserve ( 1,699 ) ( 2,968 ) - ( 4,667 ) Non-cash charges and other adjustments 71 ( 4,292 ) 60 ( 4,161 ) Balance at February 28, 2021 $ 3,601 $ 1,251 $ - $ 4,852 (In thousands) Severance and Facility Other Total Balance at June 1, 2020 $ 7,357 $ 5,880 $ - $ 13,237 Additions charged to expense 5,187 6,424 669 12,280 Cash payments charged against reserve ( 9,014 ) ( 6,761 ) ( 335 ) ( 16,110 ) Non-cash charges and other adjustments 71 ( 4,292 ) ( 334 ) ( 4,555 ) Balance at February 28, 2021 $ 3,601 $ 1,251 $ - $ 4,852 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Feb. 28, 2022 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis and Categorized using Fair Value Hierarchy | In addition, with respect to our derivative assets and liabilities measured at fair value, refer to Note 5, “Derivatives and Hedging” for discussion of their classification within the fair value hierarchy. (In thousands) Quoted Prices Significant Significant Fair Value at Available-for-sale debt securities: U.S. Treasury and other government $ - $ 26,193 $ - $ 26,193 Corporate bonds - 171 - 171 Total available-for-sale debt securities - 26,364 - 26,364 Marketable equity securities: Stocks - foreign 807 - - 807 Stocks - domestic 6,798 - - 6,798 Mutual funds - foreign - 43,658 - 43,658 Mutual funds - domestic - 86,250 - 86,250 Total marketable equity securities 7,605 129,908 - 137,513 Contingent consideration - - ( 9,746 ) ( 9,746 ) Total $ 7,605 $ 156,272 $ ( 9,746 ) $ 154,131 (In thousands) Quoted Prices Assets Significant Significant Fair Value at Available-for-sale debt securities: U.S. Treasury and other government $ - $ 26,563 $ - $ 26,563 Corporate bonds - 182 - 182 Total available-for-sale debt securities - 26,745 - 26,745 Marketable equity securities: Stocks - foreign 768 - - 768 Stocks - domestic 6,975 - - 6,975 Mutual funds - foreign - 47,916 - 47,916 Mutual funds - domestic - 86,428 - 86,428 Total marketable equity securities 7,743 134,344 - 142,087 Contingent consideration - - ( 13,335 ) ( 13,335 ) Total $ 7,743 $ 161,089 $ ( 13,335 ) $ 155,497 |
Fair Value and Carrying Value of Financial Instruments and Long-Term Debt | Based on the analysis performed, the fair value and the carrying value of our financial instruments and long-term debt as of February 28, 2022 and May 31, 2021 are as follows: At February 28, 2022 (In thousands) Carrying Value Fair Value Cash and cash equivalents $ 193,191 $ 193,191 Marketable equity securities 137,513 137,513 Available-for-sale debt securities 26,364 26,364 Long-term debt, including current portion 2,586,356 2,734,424 At May 31, 2021 (In thousands) Carrying Value Fair Value Cash and cash equivalents $ 246,704 $ 246,704 Marketable equity securities 142,087 142,087 Available-for-sale debt securities 26,745 26,745 Long-term debt, including current portion 2,379,826 2,570,206 |
Derivatives and Hedging (Tables
Derivatives and Hedging (Tables) | 9 Months Ended |
Feb. 28, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivatives Instruments for Gains or Losses Initially Recognized in AOCI in Consolidated Balance Sheet | The following table summarizes the location and effects of our derivatives instruments on the Consolidated Statements of Comprehensive Income and Consolidated Statements of Income for gains or losses initially recognized in AOCI in the Consolidated Balance Sheet: Pretax gain/(loss) recognized Pretax gain/(loss) reclassified Three Months Ended Three Months Ended (In thousands) February 28, 2022 February 28, 2021 Income statement location February 28, 2022 February 28, 2021 Interest rate swap (cash flow) $ 1,723 $ 27 Interest (expense) income $ ( 884 ) $ ( 862 ) Cross currency swap (cash flow) 1,263 ( 907 ) Interest (expense) income 149 147 Cross currency swap (cash flow) - - Foreign exchange gain (loss) 1,061 ( 1,243 ) Cross currency swap (net investment) 820 ( 4,036 ) Gain or (loss) on sale of subsidiary - - Total $ 3,806 $ ( 4,916 ) $ 326 $ ( 1,958 ) Pretax gain/(loss) recognized Pretax gain/(loss) reclassified (In thousands) Nine Months Ended Nine Months Ended Derivatives in hedging relationships February 28, 2022 February 28, 2021 Income Statement Location February 28, 2022 February 28, 2021 Interest rate swap (cash flow) $ 2,554 $ ( 720 ) Interest (expense) income $ ( 2,744 ) $ ( 2,475 ) Cross currency swap (cash flow) 8,867 ( 8,211 ) Interest (expense) income 425 498 Cross currency swap (cash flow) - - Foreign exchange gain (loss) 8,481 ( 8,623 ) Cross currency swap (net investment) 22,563 ( 28,126 ) Gain or (loss) on sale of subsidiary - - Total $ 33,984 $ ( 37,057 ) $ 6,162 $ ( 10,600 ) |
Schedule of Fair Values of Qualifying and Non-Qualifying Instruments Used in Hedging Transactions | The fair values of qualifying and non-qualifying instruments used in hedging transactions as of February 28, 2022 and May 31, 2021 are as follows: (In thousands) Fair Value Derivatives Designated as Hedging Instruments Balance Sheet Location February 28, 2022 May 31, 2021 Assets: Cross Currency Swap (Net Investment) Other Current Assets $ 2,139 $ 6,233 Cross Currency Swap (Cash Flow) Other Current Assets - 516 Liabilities: Interest Rate Swap (Cash Flow) Other Accrued Liabilities $ 716 $ 3,547 Cross Currency Swap (Cash Flow) Other Accrued Liabilities 3,966 - Cross Currency Swap (Net Investment) Other Accrued Liabilities 13,603 1,321 Cross Currency Swap (Net Investment) Other Long-Term Liabilities - 39,228 Cross Currency Swap (Cash Flow) Other Long-Term Liabilities - 13,786 Interest Rate Swap (Cash Flow) Other Long-Term Liabilities - 2,467 (In thousands) Fair Value Derivatives Not Designated as Hedging Instruments Balance Sheet Location February 28, 2022 May 31, 2021 Assets: Foreign Currency Exchange Other Current Assets $ - $ 212 Liabilities: Foreign Currency Exchange Other Accrued Liabilities $ 64 $ - |
Investment (Income) Expenses, N
Investment (Income) Expenses, Net (Tables) | 9 Months Ended |
Feb. 28, 2022 | |
Other Income and Expenses [Abstract] | |
Investment (Income) Expense, Net | Investment (income) expense, net, consists of the following components: Three Months Ended Nine Months Ended February 28, February 28, February 28, February 28, (In thousands) 2022 2021 2022 2021 Interest (income) $ ( 1,203 ) $ ( 968 ) $ ( 3,349 ) $ ( 2,409 ) Net loss (gain) on marketable securities 8,215 ( 9,480 ) 10,032 ( 29,652 ) Dividend (income) ( 2,657 ) ( 1,006 ) ( 5,262 ) ( 1,674 ) Investment (income) expense, net $ 4,355 $ ( 11,454 ) $ 1,421 $ ( 33,735 ) |
Net Loss (Gain) on Marketable Securities | Net Loss (Gain) on Marketable Securities Three Months Ended Nine Months Ended February 28, February 28, February 28, February 28, (In thousands) 2022 2021 2022 2021 Unrealized losses (gains) on marketable equity securities $ 8,903 $ ( 6,650 ) $ 11,227 $ ( 28,469 ) Realized (gains) on marketable equity securities ( 699 ) ( 2,834 ) ( 1,223 ) ( 1,210 ) Realized losses on available-for-sale debt securities 11 4 28 27 Net loss (gain) on marketable securities $ 8,215 $ ( 9,480 ) $ 10,032 $ ( 29,652 ) |
Other (Income) Expense, Net (Ta
Other (Income) Expense, Net (Tables) | 9 Months Ended |
Feb. 28, 2022 | |
Other Income and Expenses [Abstract] | |
Other (Income) Expense, Net | Other (income) expense, net, consists of the following components: Three Months Ended Nine Months Ended February 28, February 28, February 28, February 28, (In thousands) 2022 2021 2022 2021 Pension non-service (credits)/costs $ ( 2,644 ) $ 1,714 $ ( 8,012 ) $ 8,420 Other ( 98 ) ( 458 ) ( 989 ) ( 913 ) Other (income) expense, net $ ( 2,742 ) $ 1,256 $ ( 9,001 ) $ 7,507 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Feb. 28, 2022 | |
Inventory Disclosure [Abstract] | |
Major Classes of Inventories, Net of Reserves | Inventories, net of reserves, were composed of the following major classes: (In thousands) February 28, 2022 May 31, 2021 Raw material and supplies $ 561,257 $ 447,220 Finished goods 630,534 490,875 Total Inventory, Net of Reserves $ 1,191,791 $ 938,095 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Feb. 28, 2022 | |
Earnings Per Share [Abstract] | |
Reconciliation of Numerator and Denominator of Basic and Diluted Earnings Per Share | The following table sets forth the reconciliation of the numerator and denominator of basic and diluted earnings per share for the three- and nine-month periods ended February 28, 2022 and 2021. Three Months Ended Nine Months Ended February 28, February 28, February 28, February 28, (In thousands, except per share amounts) 2022 2021 2022 2021 Numerator for earnings per share: Net income attributable to RPM International Inc. stockholders $ 33,019 $ 38,242 $ 292,476 $ 346,496 Less: Allocation of earnings and dividends to participating securities ( 133 ) ( 185 ) ( 2,222 ) ( 2,740 ) Net income available to common shareholders - basic 32,886 38,057 290,254 343,756 Add: Undistributed earnings reallocated to unvested shareholders - - - 9 Reverse: Allocation of earnings and dividends to participating securities 133 185 2,222 - Net income available to common shareholders - diluted $ 33,019 $ 38,242 $ 292,476 $ 343,765 Denominator for basic and diluted earnings per share: Basic weighted average common shares 127,943 128,447 128,013 128,455 Average diluted options and awards 1,759 1,502 1,609 597 Total shares for diluted earnings per share (1) 129,702 129,949 129,622 129,052 Earnings Per Share of Common Stock Attributable to RPM International Inc. Stockholders: Basic Earnings Per Share of Common Stock $ 0.26 $ 0.30 $ 2.27 $ 2.68 Method used to calculate basic earnings per share Two-class Two-class Two-class Two-class Diluted Earnings Per Share of Common Stock $ 0.25 $ 0.29 $ 2.26 $ 2.66 Method used to calculate diluted earnings per share Treasury Treasury Treasury Two-class (1) For the three and nine months ended February 28, 2022, no restricted shares were excluded from the calculation of diluted earnings per share as their effect would have been anti-dilutive. For the three and nine months ended February 28, 2021, restricted shares totaling 225,500 and 231,450 were excluded from the calculation of diluted earnings per share as their effect would have been anti-dilutive. In addition, stock appreciation rights (“SARs”) totaling 320,000 and 655,000 for the three and nine months ended February 28, 2022, and 360,000 for both the three and nine months ended February 28, 2021, were excluded from the calculation of diluted earnings per share as their effect would have been anti-dilutive. |
Pension Plans (Tables)
Pension Plans (Tables) | 9 Months Ended |
Feb. 28, 2022 | |
Retirement Benefits [Abstract] | |
Retirement-Related Benefit Plans' Impact on Income Before Income Taxes | The following tables provide the retirement-related benefit plans’ impact on income before income taxes for the three and nine months ended February 28, 2022 and 2021: U.S. Plans Non-U.S. Plans Three Months Ended Three Months Ended (In thousands) February 28, February 28, February 28, February 28, Pension Benefits 2022 2021 2022 2021 Service cost $ 11,914 $ 11,130 $ 1,348 $ 1,406 Interest cost 3,842 3,806 1,282 1,122 Expected return on plan assets ( 10,386 ) ( 8,279 ) ( 2,073 ) ( 1,607 ) Amortization of: Prior service cost (credit) 1 2 ( 38 ) ( 35 ) Net actuarial losses recognized 4,225 7,501 114 526 Net Periodic Benefit Cost $ 9,596 $ 14,160 $ 633 $ 1,412 U.S. Plans Non-U.S. Plans Three Months Ended Three Months Ended (In thousands) February 28, February 28, February 28, February 28, Postretirement Benefits 2022 2021 2022 2021 Service cost $ - $ - $ 432 $ 431 Interest cost 10 19 299 283 Amortization of: Prior service (credit) ( 40 ) ( 42 ) - - Net actuarial losses recognized 15 10 32 130 Net Periodic Benefit (Credit) Cost $ ( 15 ) $ ( 13 ) $ 763 $ 844 U.S. Plans Non-U.S. Plans Nine Months Ended Nine Months Ended (In thousands) February 28, February 28, February 28, February 28, Pension Benefits 2022 2021 2022 2021 Service cost $ 35,742 $ 33,390 $ 4,044 $ 4,218 Interest cost 11,526 11,418 3,846 3,366 Expected return on plan assets ( 31,158 ) ( 24,837 ) ( 6,219 ) ( 4,821 ) Amortization of: Prior service cost (credit) 3 6 ( 114 ) ( 105 ) Net actuarial losses recognized 12,675 22,503 342 1,578 Net Periodic Benefit Cost $ 28,788 $ 42,480 $ 1,899 $ 4,236 U.S. Plans Non-U.S. Plans Nine Months Ended Nine Months Ended (In thousands) February 28, February 28, February 28, February 28, Postretirement Benefits 2022 2021 2022 2021 Service cost $ - $ - $ 1,296 $ 1,293 Interest cost 30 57 897 849 Amortization of: Prior service (credit) ( 120 ) ( 126 ) - - Net actuarial losses recognized 45 30 96 390 Net Periodic Benefit (Credit) Cost $ ( 45 ) $ ( 39 ) $ 2,289 $ 2,532 |
Contingencies and Accrued Los_2
Contingencies and Accrued Losses (Tables) | 9 Months Ended |
Feb. 28, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Changes in Accrued Warranty Balances | The following table includes the changes in our accrued warranty balances: Three Months Ended Nine Months Ended February 28, February 28, February 28, February 28, (In thousands) 2022 2021 2022 2021 Beginning Balance $ 12,886 $ 12,050 $ 13,175 $ 11,106 Deductions (1) ( 5,186 ) ( 4,745 ) ( 16,868 ) ( 18,327 ) Provision charged to expense 4,628 5,473 16,021 19,999 Ending Balance $ 12,328 $ 12,778 $ 12,328 $ 12,778 (1) Primarily claims paid during the year. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Feb. 28, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Trade Accounts Receivable Net of Allowances and Net Contract Assets | Trade accounts receivable, net of allowances, and net contract assets consisted of the following: (In thousands, except percentages) February 28, 2022 November 30, 2021 $ Change % Change Trade accounts receivable, less allowances $ 1,085,396 $ 1,173,494 $ ( 88,098 ) - 7.5 % Contract assets $ 47,638 $ 47,615 $ 23 0.0 % Contract liabilities - short-term ( 37,157 ) ( 36,279 ) ( 878 ) 2.4 % Net Contract Assets $ 10,481 $ 11,336 $ ( 855 ) - 7.5 % (In thousands, except percentages) February 28, 2022 May 31, 2021 $ Change % Change Trade accounts receivable, less allowances $ 1,085,396 $ 1,280,806 $ ( 195,410 ) - 15.3 % Contract assets $ 47,638 $ 33,217 $ 14,421 43.4 % Contract liabilities - short-term ( 37,157 ) ( 33,112 ) ( 4,045 ) 12.2 % Net Contract Assets $ 10,481 $ 105 $ 10,376 |
Summary of Activity for Allowance for Credit Losses | The following tables summarize the activity for the allowance for credit losses for the three and nine months ended February 28, 2022 and 2021: Three Months Ended Nine Months Ended February 28, February 28, February 28, February 28, (In thousands) 2022 2021 2022 2021 Beginning Balance $ 50,932 $ 53,542 $ 55,922 $ 55,847 Bad debt provision 571 3,800 2,645 4,968 Uncollectible accounts written off, net of recoveries ( 2,436 ) ( 5,661 ) ( 7,335 ) ( 11,008 ) Translation adjustments 727 522 ( 1,438 ) 2,396 Ending Balance $ 49,794 $ 52,203 $ 49,794 $ 52,203 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Feb. 28, 2022 | |
Segment Reporting [Abstract] | |
Results of Reportable Segments | The following tables present a disaggregation of revenues by geography, and reflect the results of our reportable segments consistent with our management philosophy, by representing the information we utilize, in conjunction with various strategic, operational and other financial performance criteria, in evaluating the performance of our portfolio of businesses. Three Months Ended February 28, 2022 CPG PCG Consumer SPG Consolidated (In thousands) Net Sales (based on shipping location) United States $ 259,606 $ 167,623 $ 403,524 $ 154,516 $ 985,269 Foreign Canada 39,479 17,220 29,432 1,378 87,509 Europe 114,226 54,057 46,695 24,121 239,099 Latin America 47,459 7,720 7,707 368 63,254 Asia Pacific 21,256 5,431 4,259 8,988 39,934 Other Foreign - 18,814 - - 18,814 Total Foreign 222,420 103,242 88,093 34,855 448,610 Total $ 482,026 $ 270,865 $ 491,617 $ 189,371 $ 1,433,879 Three Months Ended February 28, 2021 CPG PCG Consumer SPG Consolidated (In thousands) Net Sales (based on shipping location) United States $ 195,193 $ 132,075 $ 381,712 $ 139,862 $ 848,842 Foreign Canada 32,853 16,303 31,833 2,244 83,233 Europe 106,172 53,156 53,097 19,405 231,830 Latin America 39,555 6,681 7,593 409 54,238 Asia Pacific 19,020 5,640 3,507 7,241 35,408 Other Foreign 3,176 12,668 - - 15,844 Total Foreign 200,776 94,448 96,030 29,299 420,553 Total $ 395,969 $ 226,523 $ 477,742 $ 169,161 $ 1,269,395 Nine Months Ended February 28, 2022 CPG PCG Consumer SPG Consolidated (In thousands) Net Sales (based on shipping location) United States $ 974,201 $ 531,655 $ 1,267,373 $ 457,115 $ 3,230,344 Foreign Canada 184,940 54,355 93,714 5,609 338,618 Europe 377,220 172,850 162,032 74,446 786,548 Latin America 144,366 20,958 22,935 1,407 189,666 Asia Pacific 59,811 17,579 13,169 26,473 117,032 Other Foreign 40 61,590 - - 61,630 Total Foreign 766,377 327,332 291,850 107,935 1,493,494 Total $ 1,740,578 $ 858,987 $ 1,559,223 $ 565,050 $ 4,723,838 Nine Months Ended February 28, 2021 CPG PCG Consumer SPG Consolidated (In thousands) Net Sales (based on shipping location) United States $ 784,246 $ 436,617 $ 1,332,531 $ 413,571 $ 2,966,965 Foreign Canada 137,181 51,613 110,201 6,373 305,368 Europe 344,478 180,681 184,161 58,044 767,364 Latin America 114,545 19,413 23,755 1,290 159,003 Asia Pacific 57,607 16,323 15,770 23,961 113,661 Other Foreign 9,122 40,498 - - 49,620 Total Foreign 662,933 308,528 333,887 89,668 1,395,016 Total $ 1,447,179 $ 745,145 $ 1,666,418 $ 503,239 $ 4,361,981 Three Months Ended Nine Months Ended (In thousands) February 28, February 28, February 28, February 28, Income (Loss) Before Income Taxes 2022 2021 2022 2021 CPG Segment $ 31,498 $ 14,431 $ 276,223 $ 184,613 PCG Segment 24,917 12,158 97,849 64,719 Consumer Segment 16,893 42,724 95,912 263,813 SPG Segment 25,881 24,560 71,028 73,415 Corporate/Other ( 58,692 ) ( 38,013 ) ( 155,890 ) ( 122,375 ) Consolidated $ 40,497 $ 55,860 $ 385,122 $ 464,185 (In thousands) February 28, May 31, Identifiable Assets 2022 2021 CPG Segment $ 1,938,999 $ 1,815,303 PCG Segment 1,092,037 1,051,334 Consumer Segment 2,344,960 2,386,703 SPG Segment 823,342 772,540 Corporate/Other 131,264 227,089 Consolidated $ 6,330,602 $ 6,252,969 |
Consolidation, Noncontrolling_2
Consolidation, Noncontrolling Interests and Basis of Presentation - Additional Information (Detail) | Feb. 28, 2022 |
Accounting Policies [Abstract] | |
Percentage of controlled subsidiary's earnings | 100.00% |
New Accounting Pronouncements -
New Accounting Pronouncements - Additional Information (Detail) | Feb. 28, 2022 |
ASU 2018-14 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Change in accounting principle, accounting standards update, adopted [true false] | true |
Change in accounting principle, accounting standards update, immaterial effect [true false] | true |
Change in accounting principle, accounting standards update, adoption date | May 31, 2021 |
ASU 2019-12 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Change in accounting principle, accounting standards update, adopted [true false] | true |
Change in accounting principle, accounting standards update, immaterial effect [true false] | true |
Change in accounting principle, accounting standards update, adoption date | Jun. 1, 2021 |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) $ in Millions | 9 Months Ended |
Feb. 28, 2022USD ($)WarehousePlant | |
Restructuring Cost And Reserve [Line Items] | |
Number of planned closure of plants | Plant | 31 |
Number of planned closer of warehouses | Warehouse | 28 |
MAP to Growth | |
Restructuring Cost And Reserve [Line Items] | |
Increase in current total expected costs | $ 0.2 |
MAP to Growth | Severance and Benefit Charges | |
Restructuring Cost And Reserve [Line Items] | |
Increase in current total expected costs | 0.3 |
MAP to Growth | Facility Closure and Other Related Costs | |
Restructuring Cost And Reserve [Line Items] | |
Decrease in current total expected costs | $ 0.1 |
Summary of Charges Recorded in
Summary of Charges Recorded in Connection with Restructuring by Reportable Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | $ 1,140 | $ 3,129 | $ 5,128 | $ 12,280 |
MAP to Growth | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 1,140 | 3,129 | 5,128 | 12,280 |
Cumulative Costs to Date | 116,163 | 116,163 | ||
Total Expected Costs | 118,827 | 118,827 | ||
MAP to Growth | Severance and Benefit Costs (Credits) | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 105 | 574 | 1,633 | 5,187 |
Cumulative Costs to Date | 73,252 | 73,252 | ||
Total Expected Costs | 74,411 | 74,411 | ||
MAP to Growth | Facility Closure and Other Related Costs | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 1,035 | 2,615 | 3,492 | 6,424 |
Cumulative Costs to Date | 34,372 | 34,372 | ||
Total Expected Costs | 35,847 | 35,847 | ||
MAP to Growth | Other Restructuring Costs (Credits) | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 0 | (60) | 3 | 669 |
Cumulative Costs to Date | 8,539 | 8,539 | ||
Total Expected Costs | 8,569 | 8,569 | ||
MAP to Growth | Construction Products Segment | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 318 | 860 | 1,050 | 3,340 |
Cumulative Costs to Date | 30,896 | 30,896 | ||
Total Expected Costs | 31,239 | 31,239 | ||
MAP to Growth | Construction Products Segment | Severance and Benefit Costs (Credits) | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | (7) | 255 | (322) | 1,829 |
Cumulative Costs to Date | 20,966 | 20,966 | ||
Total Expected Costs | 21,066 | 21,066 | ||
MAP to Growth | Construction Products Segment | Facility Closure and Other Related Costs | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 325 | 665 | 1,368 | 1,473 |
Cumulative Costs to Date | 7,948 | 7,948 | ||
Total Expected Costs | 8,191 | 8,191 | ||
MAP to Growth | Construction Products Segment | Other Restructuring Costs (Credits) | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 0 | 60 | 4 | 38 |
Cumulative Costs to Date | 1,982 | 1,982 | ||
Total Expected Costs | 1,982 | 1,982 | ||
MAP to Growth | Performance Coatings Segment | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 186 | 383 | 972 | 3,281 |
Cumulative Costs to Date | 24,877 | 24,877 | ||
Total Expected Costs | 26,396 | 26,396 | ||
MAP to Growth | Performance Coatings Segment | Severance and Benefit Costs (Credits) | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 65 | 118 | 193 | 1,959 |
Cumulative Costs to Date | 16,552 | 16,552 | ||
Total Expected Costs | 17,261 | 17,261 | ||
MAP to Growth | Performance Coatings Segment | Facility Closure and Other Related Costs | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 121 | 265 | 779 | 1,109 |
Cumulative Costs to Date | 7,408 | 7,408 | ||
Total Expected Costs | 8,188 | 8,188 | ||
MAP to Growth | Performance Coatings Segment | Other Restructuring Costs (Credits) | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 0 | 0 | 0 | 213 |
Cumulative Costs to Date | 917 | 917 | ||
Total Expected Costs | 947 | 947 | ||
MAP to Growth | Consumer Segment | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 277 | 1,311 | 788 | 3,781 |
Cumulative Costs to Date | 29,596 | 29,596 | ||
Total Expected Costs | 29,815 | 29,815 | ||
MAP to Growth | Consumer Segment | Severance and Benefit Costs (Credits) | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 0 | (11) | 0 | 797 |
Cumulative Costs to Date | 12,307 | 12,307 | ||
Total Expected Costs | 12,307 | 12,307 | ||
MAP to Growth | Consumer Segment | Facility Closure and Other Related Costs | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 277 | 1,300 | 788 | 2,682 |
Cumulative Costs to Date | 12,869 | 12,869 | ||
Total Expected Costs | 13,088 | 13,088 | ||
MAP to Growth | Consumer Segment | Other Restructuring Costs (Credits) | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 0 | 0 | 0 | 302 |
Cumulative Costs to Date | 4,420 | 4,420 | ||
Total Expected Costs | 4,420 | 4,420 | ||
MAP to Growth | Specialty Products Group ("SPG") Segment | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 359 | 434 | 805 | 1,737 |
Cumulative Costs to Date | 15,743 | 15,743 | ||
Total Expected Costs | 16,326 | 16,326 | ||
MAP to Growth | Specialty Products Group ("SPG") Segment | Severance and Benefit Costs (Credits) | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 47 | (49) | 249 | 461 |
Cumulative Costs to Date | 8,376 | 8,376 | ||
Total Expected Costs | 8,726 | 8,726 | ||
MAP to Growth | Specialty Products Group ("SPG") Segment | Facility Closure and Other Related Costs | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 312 | 385 | 557 | 1,160 |
Cumulative Costs to Date | 6,147 | 6,147 | ||
Total Expected Costs | 6,380 | 6,380 | ||
MAP to Growth | Specialty Products Group ("SPG") Segment | Other Restructuring Costs (Credits) | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 0 | 0 | (1) | 116 |
Cumulative Costs to Date | 1,220 | 1,220 | ||
Total Expected Costs | 1,220 | 1,220 | ||
MAP to Growth | Corporate/Other Segment | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 0 | 141 | 1,513 | 141 |
Cumulative Costs to Date | 15,051 | 15,051 | ||
Total Expected Costs | 15,051 | 15,051 | ||
MAP to Growth | Corporate/Other Segment | Severance and Benefit Costs (Credits) | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 0 | $ 141 | 1,513 | $ 141 |
Cumulative Costs to Date | 15,051 | 15,051 | ||
Total Expected Costs | $ 15,051 | $ 15,051 |
Summary of Charges Recorded i_2
Summary of Charges Recorded in Connection with Restructuring by Reportable Segment (Parenthetical) (Detail) - MAP to Growth - Severance and Benefit Costs (Credits) - Position | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Construction Products Segment | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Number of positions eliminated | 3 | 16 | 24 | |
Performance Coatings Segment | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Number of positions eliminated | 1 | 5 | 4 | 55 |
Consumer Segment | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Number of positions eliminated | 0 | 3 | ||
Specialty Products Group ("SPG") Segment | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Number of positions eliminated | 2 | 3 | 18 | 27 |
Corporate/Other Segment | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Number of positions eliminated | 1 |
Summary of Activity in Restruct
Summary of Activity in Restructuring Reserves (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Restructuring Cost And Reserve [Line Items] | ||||
Additions charged to expense | $ 1,140 | $ 3,129 | $ 5,128 | $ 12,280 |
MAP to Growth | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Beginning balance | 2,467 | 10,551 | 5,720 | 13,237 |
Additions charged to expense | 1,140 | 3,129 | 5,128 | 12,280 |
Cash payments charged against reserve | (1,374) | (4,667) | (7,469) | (16,110) |
Non-cash charges and other adjustments | (123) | (4,161) | (1,269) | (4,555) |
Ending balance | 2,110 | 4,852 | 2,110 | 4,852 |
MAP to Growth | Severance and Benefit Costs (Credits) | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Beginning balance | 1,571 | 4,655 | 4,430 | 7,357 |
Additions charged to expense | 105 | 574 | 1,633 | 5,187 |
Cash payments charged against reserve | (506) | (1,699) | (4,314) | (9,014) |
Non-cash charges and other adjustments | (95) | 71 | (674) | 71 |
Ending balance | 1,075 | 3,601 | 1,075 | 3,601 |
MAP to Growth | Facility Closure and Other Related Costs | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Beginning balance | 896 | 5,896 | 1,290 | 5,880 |
Additions charged to expense | 1,035 | 2,615 | 3,492 | 6,424 |
Cash payments charged against reserve | (868) | (2,968) | (3,155) | (6,761) |
Non-cash charges and other adjustments | (28) | (4,292) | (592) | (4,292) |
Ending balance | 1,035 | 1,251 | 1,035 | 1,251 |
MAP to Growth | Other Restructuring Costs (Credits) | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Beginning balance | 0 | 0 | 0 | 0 |
Additions charged to expense | 0 | (60) | 3 | 669 |
Cash payments charged against reserve | 0 | 0 | 0 | (335) |
Non-cash charges and other adjustments | 0 | 60 | (3) | (334) |
Ending balance | $ 0 | $ 0 | $ 0 | $ 0 |
Assets and Liabilities Measured
Assets and Liabilities Measured at Fair Value on Recurring Basis and Categorized using Fair Value Hierarchy (Detail) - Fair Value,Measurements Recurring - USD ($) $ in Thousands | Feb. 28, 2022 | May 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities | $ 26,364 | $ 26,745 |
Total marketable equity securities | 137,513 | 142,087 |
Assets (liabilities) at fair value | 154,131 | 155,497 |
U.S. Treasury and other government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities | 26,193 | 26,563 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities | 171 | 182 |
Stocks | Foreign | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable equity securities | 807 | 768 |
Stocks | Domestic | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable equity securities | 6,798 | 6,975 |
Mutual funds | Foreign | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable equity securities | 43,658 | 47,916 |
Mutual funds | Domestic | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable equity securities | 86,250 | 86,428 |
Contingent consideration liability | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | (9,746) | (13,335) |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities | 0 | 0 |
Total marketable equity securities | 7,605 | 7,743 |
Assets (liabilities) at fair value | 7,605 | 7,743 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury and other government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Stocks | Foreign | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable equity securities | 807 | 768 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Stocks | Domestic | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable equity securities | 6,798 | 6,975 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mutual funds | Foreign | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable equity securities | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mutual funds | Domestic | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable equity securities | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Contingent consideration liability | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | 0 | |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities | 26,364 | 26,745 |
Total marketable equity securities | 129,908 | 134,344 |
Assets (liabilities) at fair value | 156,272 | 161,089 |
Significant Other Observable Inputs (Level 2) | U.S. Treasury and other government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities | 26,193 | 26,563 |
Significant Other Observable Inputs (Level 2) | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities | 171 | 182 |
Significant Other Observable Inputs (Level 2) | Stocks | Foreign | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable equity securities | 0 | |
Significant Other Observable Inputs (Level 2) | Stocks | Domestic | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable equity securities | 0 | |
Significant Other Observable Inputs (Level 2) | Mutual funds | Foreign | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable equity securities | 43,658 | 47,916 |
Significant Other Observable Inputs (Level 2) | Mutual funds | Domestic | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable equity securities | 86,250 | 86,428 |
Significant Other Observable Inputs (Level 2) | Contingent consideration liability | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | 0 | |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities | 0 | 0 |
Total marketable equity securities | 0 | 0 |
Assets (liabilities) at fair value | (9,746) | (13,335) |
Significant Unobservable Inputs (Level 3) | U.S. Treasury and other government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities | 0 | |
Significant Unobservable Inputs (Level 3) | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities | 0 | |
Significant Unobservable Inputs (Level 3) | Stocks | Foreign | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable equity securities | 0 | |
Significant Unobservable Inputs (Level 3) | Stocks | Domestic | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable equity securities | 0 | |
Significant Unobservable Inputs (Level 3) | Mutual funds | Foreign | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable equity securities | 0 | |
Significant Unobservable Inputs (Level 3) | Mutual funds | Domestic | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable equity securities | 0 | |
Significant Unobservable Inputs (Level 3) | Contingent consideration liability | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | $ (9,746) | $ (13,335) |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Feb. 28, 2022 | Feb. 28, 2021 | |
Fair Value Disclosures [Abstract] | ||
Settlements of contingent consideration obligations | $ 5.8 | $ 2.8 |
Increase in accrual related to fair value adjustments | $ 2.5 | $ 1.8 |
Fair Value and Carrying Value o
Fair Value and Carrying Value of Financial Instruments and Long-Term Debt (Detail) - USD ($) $ in Thousands | Feb. 28, 2022 | May 31, 2021 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | $ 193,191 | $ 246,704 |
Marketable equity securities | 137,513 | 142,087 |
Available-for-sale debt securities | 26,364 | 26,745 |
Long-term debt, including current portion | 2,586,356 | 2,379,826 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 193,191 | 246,704 |
Marketable equity securities | 137,513 | 142,087 |
Available-for-sale debt securities | 26,364 | 26,745 |
Long-term debt, including current portion | $ 2,734,424 | $ 2,570,206 |
Derivatives and Hedging - Addit
Derivatives and Hedging - Additional Information (Detail) | Oct. 31, 2017EUR (€)CrossCurrencySwap | Feb. 29, 2020USD ($) | Feb. 28, 2022USD ($)ForwardContract | May 31, 2021USD ($)ForwardContract | Feb. 29, 2020EUR (€)CrossCurrencySwap | Feb. 29, 2020USD ($)CrossCurrencySwap | Oct. 31, 2017USD ($)CrossCurrencySwap |
Derivatives Designated as Hedging Instruments | |||||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||||||
Number of cross currency swaps executed | CrossCurrencySwap | 2 | 2 | |||||
Notional amount | € 85,250,000 | $ 100,000,000 | |||||
Derivative instruments maturity date | 2022-11 | ||||||
Number of cross currency swaps terminated | CrossCurrencySwap | 2 | 2 | |||||
Cash received on derivative fair value hedge | $ | $ 9,300,000 | ||||||
Discontinuation of price risk cash flow hedge | hedge accounting adjustment to our Senior Notes of $1.5 million was recorded and is being amortized to interest expense in the Consolidated Statements of Income through the termination of the 3.450% Notes in November 2022. Changes in the fair value of the cross-currency swaps due to spot foreign exchange rates are recorded as cumulative translation adjustment within accumulated other comprehensive income ("AOCI") and will remain in AOCI until either the sale or substantially complete liquidation of the hedged subsidiaries. | ||||||
Derivatives Designated as Hedging Instruments | Variable Interest Rate | |||||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||||||
Number of cross currency swaps executed | CrossCurrencySwap | 2 | 2 | |||||
Notional amount | € 277,730,000 | $ 300,000,000 | |||||
Derivative instruments maturity date | 2023-02 | ||||||
Derivatives Designated as Hedging Instruments | Foreign Borrower's Term Loan | Variable Interest Rate | |||||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||||||
Notional amount | € 92,520,000 | $ 100,000,000 | |||||
Derivative instruments maturity date | 2023-02 | ||||||
Derivatives Designated as Hedging Instruments | 3.450% Senior Notes November 2022 | |||||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||||||
Debt instrument, interest rate, stated percentage | 3.45% | 3.45% | |||||
Derivatives Designated as Hedging Instruments | 3.450% Senior Notes November 2022 | Interest Expense | |||||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||||||
Discontinued hedge accounting adjustment to senior Notes | $ | $ 1,500,000 | ||||||
Derivatives Not Designated as Hedges | |||||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||||||
Number of foreign currency forward contract held | ForwardContract | 1 | 1 | |||||
Derivatives Not Designated as Hedges | Forward Contracts Held to Purchase Foreign Currencies | |||||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||||||
Notional amount | $ | $ 240,700,000 | $ 191,700,000 |
Derivatives and Hedging - Sched
Derivatives and Hedging - Schedule of Derivatives Instruments for Gains or Losses Initially Recognized in AOCI in Consolidated Balance Sheet (Detail) - Derivatives Designated as Hedging Instruments - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||
Pretax gain/(loss) recognized in AOCI | $ 3,806 | $ (4,916) | $ 33,984 | $ (37,057) |
Pretax gain/(loss) reclassified from AOCI into income | 326 | (1,958) | 6,162 | (10,600) |
Interest Rate Swap | Interest (Expense) Income | Cash Flow | ||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||
Pretax gain/(loss) recognized in AOCI | 1,723 | 27 | 2,554 | (720) |
Pretax gain/(loss) reclassified from AOCI into income, cash flow | (884) | (862) | $ (2,744) | (2,475) |
Income Statement Location | Interest (expense) income | |||
Cross Currency Swap | Interest (Expense) Income | Cash Flow | ||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||
Pretax gain/(loss) recognized in AOCI | 1,263 | (907) | $ 8,867 | (8,211) |
Pretax gain/(loss) reclassified from AOCI into income, cash flow | 149 | 147 | $ 425 | 498 |
Income Statement Location | Interest (expense) income | |||
Cross Currency Swap | Foreign exchange gain (loss) | Cash Flow | ||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||
Pretax gain/(loss) reclassified from AOCI into income, cash flow | 1,061 | (1,243) | $ 8,481 | (8,623) |
Income Statement Location | Foreign exchange gain (loss) | |||
Cross Currency Swap | Gain or (loss) on sale of subsidiary | Net Investment | ||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||
Pretax gain/(loss) recognized in AOCI | $ 820 | $ (4,036) | $ 22,563 | $ (28,126) |
Income Statement Location | Gain or (loss) on sale of subsidiary |
Derivatives and Hedging - Sch_2
Derivatives and Hedging - Schedule of Fair Values of Qualifying and Non-Qualifying Instruments Used in Hedging Transactions (Detail) - USD ($) $ in Thousands | Feb. 28, 2022 | May 31, 2021 |
Derivatives Designated as Hedging Instruments | Cross Currency Swap | Net Investment | Other Current Assets | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Fair value of derivatives assets | $ 2,139 | $ 6,233 |
Derivatives Designated as Hedging Instruments | Cross Currency Swap | Net Investment | Other Accrued Liabilities | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Fair value of derivatives liabilities | 13,603 | 1,321 |
Derivatives Designated as Hedging Instruments | Cross Currency Swap | Net Investment | Other Long-Term Liabilities | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Fair value of derivatives liabilities | 39,228 | |
Derivatives Designated as Hedging Instruments | Cross Currency Swap | Cash Flow | Other Current Assets | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Fair value of derivatives assets | 516 | |
Derivatives Designated as Hedging Instruments | Cross Currency Swap | Cash Flow | Other Accrued Liabilities | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Fair value of derivatives liabilities | 3,966 | |
Derivatives Designated as Hedging Instruments | Cross Currency Swap | Cash Flow | Other Long-Term Liabilities | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Fair value of derivatives liabilities | 13,786 | |
Derivatives Designated as Hedging Instruments | Interest Rate Swap | Cash Flow | Other Accrued Liabilities | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Fair value of derivatives liabilities | 716 | 3,547 |
Derivatives Designated as Hedging Instruments | Interest Rate Swap | Cash Flow | Other Long-Term Liabilities | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Fair value of derivatives liabilities | 2,467 | |
Derivatives Not Designated as Hedging Instruments | Foreign Currency Exchange | Other Current Assets | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Fair value of derivatives assets | $ 212 | |
Derivatives Not Designated as Hedging Instruments | Foreign Currency Exchange | Other Accrued Liabilities | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Fair value of derivatives liabilities | $ 64 |
Investment (Income) Expense, _2
Investment (Income) Expense, Net (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Other Income and Expenses [Abstract] | ||||
Interest (income) | $ (1,203) | $ (968) | $ (3,349) | $ (2,409) |
Net loss (gain) on marketable securities | 8,215 | (9,480) | 10,032 | (29,652) |
Dividend (income) | (2,657) | (1,006) | (5,262) | (1,674) |
Investment (income) expense, net | $ 4,355 | $ (11,454) | $ 1,421 | $ (33,735) |
Net Loss (Gain) on Marketable S
Net Loss (Gain) on Marketable Securities (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Net Loss (Gain) on Marketable Securities | ||||
Unrealized losses (gains) on marketable equity securities | $ 8,903 | $ (6,650) | $ 11,227 | $ (28,469) |
Realized (gains) on marketable equity securities | (699) | (2,834) | (1,223) | (1,210) |
Realized losses on available-for-sale debt securities | 11 | 4 | 28 | 27 |
Net loss (gain) on marketable securities | $ 8,215 | $ (9,480) | $ 10,032 | $ (29,652) |
(Gain) on Sales of Assets, Net
(Gain) on Sales of Assets, Net - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 15, 2021 | Feb. 28, 2022 | Feb. 28, 2022 | Feb. 28, 2021 | Nov. 30, 2021 | May 31, 2021 |
Sale Leaseback Transaction [Line Items] | ||||||
Net gain sales of assets | $ 41,900 | $ 249 | $ 42,491 | $ 0 | ||
Sale of property assets | 49,800 | |||||
Net proceeds after adjustments and expenses | $ 48,000 | |||||
Sale leaseback agreement commencement date | Sep. 15, 2021 | |||||
Sale leaseback agreement expiration date | Sep. 14, 2024 | |||||
Operating lease, future minimum lease payments | $ 3,400 | |||||
Operating lease, borrowing rate | 1.30% | |||||
Operating lease, ROU assets | $ 312,157 | $ 312,157 | $ 300,827 | |||
Operating lease, liability | $ 3,700 | |||||
Leaseback Agreement | ||||||
Sale Leaseback Transaction [Line Items] | ||||||
Operating lease, ROU assets | $ 3,700 |
Other (Income) Expense, Net (De
Other (Income) Expense, Net (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Other Income and Expenses [Abstract] | ||||
Pension non-service (credits)/costs | $ (2,644) | $ 1,714 | $ (8,012) | $ 8,420 |
Other | (98) | (458) | (989) | (913) |
Other (income) expense, net | $ (2,742) | $ 1,256 | $ (9,001) | $ 7,507 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax expense rate | 17.90% | 31.10% | 23.90% | 25.20% |
Corporate income tax rate | 21.00% | 21.00% | 21.00% | 21.00% |
Net of favorable discrete tax increase to deferred income tax liability withholding taxes on additional unremitted foreign earnings | $ 5,300 | |||
Deferred income tax liability | $ 14,000 | $ 14,000 | ||
Unremitted foreign earnings | 438,200 | 438,200 | ||
Provision for deferred income taxes | $ 0 | $ 0 |
Major Classes of Inventories, N
Major Classes of Inventories, Net of Reserves (Detail) - USD ($) $ in Thousands | Feb. 28, 2022 | May 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw material and supplies | $ 561,257 | $ 447,220 |
Finished goods | 630,534 | 490,875 |
Total Inventory, Net of Reserves | $ 1,191,791 | $ 938,095 |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) - 2.950% Notes due 2032 - USD ($) | Jan. 25, 2022 | Feb. 28, 2022 |
Debt Instrument [Line Items] | ||
Aggregate principal amount | $ 300,000,000 | |
Interest rate | 2.95% | |
Maturity date | Jan. 15, 2032 | |
Interest payment terms | Interest on the Notes accrues from January 25, 2022 and will be payable semiannually in arrears on January 15 and July 15 of each year, beginning July 15, 2022, at a rate of 2.95% per year. | |
Interest frequency of payment term | semiannually |
Stock Repurchase Program - Addi
Stock Repurchase Program - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Jan. 31, 2021 | Feb. 28, 2022 | Aug. 31, 2021 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | May 31, 2021 | |
Stock Repurchase Programs [Line Items] | |||||||
Authorization of stock repurchase program | Jan. 8, 2008 | ||||||
Capital to be returned to stockholders through share repurchases | $ 1,000,000 | ||||||
Stock repurchase program, remaining authorized repurchase, value | $ 469,700 | $ 392,300 | $ 392,300 | $ 600,000 | |||
Stock repurchase program expiration date | May 31, 2021 | ||||||
Shares repurchased | 171,933 | 290,174 | 305,321 | 290,174 | |||
Shares repurchased, value | $ 15,000 | $ 12,500 | $ 24,628 | $ 27,500 | $ 24,600 | ||
Repurchase of common stock price per shares | $ 87.24 | $ 84.87 | $ 90.07 | $ 84.87 |
Reconciliation of Numerator and
Reconciliation of Numerator and Denominator of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | ||
Numerator for earnings per share: | |||||
Net income attributable to RPM International Inc. stockholders | $ 33,019 | $ 38,242 | $ 292,476 | $ 346,496 | |
Less: Allocation of earnings and dividends to participating securities | (133) | (185) | (2,222) | (2,740) | |
Net income available to common shareholders - basic | 32,886 | 38,057 | 290,254 | 343,756 | |
Add: Undistributed earnings reallocated to unvested shareholders | 9 | ||||
Reverse: Allocation of earnings and dividends to participating securities | 133 | 185 | 2,222 | ||
Net income available to common shareholders - diluted | $ 33,019 | $ 38,242 | $ 292,476 | $ 343,765 | |
Denominator for basic and diluted earnings per share: | |||||
Basic weighted average common shares | 127,943 | 128,447 | 128,013 | 128,455 | |
Average diluted options and awards | 1,759 | 1,502 | 1,609 | 597 | |
Total shares for diluted earnings per share | [1] | 129,702 | 129,949 | 129,622 | 129,052 |
Earnings Per Share of Common Stock Attributable to RPM International Inc. Stockholders: | |||||
Basic Earnings Per Share of Common Stock | $ 0.26 | $ 0.30 | $ 2.27 | $ 2.68 | |
Method used to calculate basic earnings per share | Two-class | Two-class | Two-class | Two-class | |
Diluted Earnings Per Share of Common Stock | $ 0.25 | $ 0.29 | $ 2.26 | $ 2.66 | |
Method used to calculate diluted earnings per share | Treasury | Treasury | Treasury | Two-class | |
[1] | For the three and nine months ended February 28, 2022, no restricted shares were excluded from the calculation of diluted earnings per share as their effect would have been anti-dilutive. For the three and nine months ended February 28, 2021, restricted shares totaling 225,500 and 231,450 were excluded from the calculation of diluted earnings per share as their effect would have been anti-dilutive. In addition, stock appreciation rights (“SARs”) totaling 320,000 and 655,000 for the three and nine months ended February 28, 2022, and 360,000 for both the three and nine months ended February 28, 2021, were excluded from the calculation of diluted earnings per share as their effect would have been anti-dilutive. |
Reconciliation of Numerator a_2
Reconciliation of Numerator and Denominator of Basic and Diluted Earnings Per Share (Parenthetical) (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Restricted shares | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Shares excluded from the calculation of diluted earnings per share | 0 | 225,500 | 0 | 231,450 |
Stock appreciation rights (SARs) | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Shares excluded from the calculation of diluted earnings per share | 320,000 | 360,000 | 655,000 | 360,000 |
Retirement-Related Benefit Plan
Retirement-Related Benefit Plans' Impact on Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Pension Benefits | U.S. Plans | ||||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 11,914 | $ 11,130 | $ 35,742 | $ 33,390 |
Interest cost | 3,842 | 3,806 | 11,526 | 11,418 |
Expected return on plan assets | (10,386) | (8,279) | (31,158) | (24,837) |
Prior service cost (credit) | 1 | 2 | 3 | 6 |
Net actuarial losses recognized | 4,225 | 7,501 | 12,675 | 22,503 |
Net Periodic Benefit (Credit) Cost | 9,596 | 14,160 | 28,788 | 42,480 |
Pension Benefits | Non-U.S. Plans | ||||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 1,348 | 1,406 | 4,044 | 4,218 |
Interest cost | 1,282 | 1,122 | 3,846 | 3,366 |
Expected return on plan assets | (2,073) | (1,607) | (6,219) | (4,821) |
Prior service cost (credit) | (38) | (35) | (114) | (105) |
Net actuarial losses recognized | 114 | 526 | 342 | 1,578 |
Net Periodic Benefit (Credit) Cost | 633 | 1,412 | 1,899 | 4,236 |
Postretirement Benefits | U.S. Plans | ||||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Interest cost | 10 | 19 | 30 | 57 |
Prior service cost (credit) | (40) | (42) | (120) | (126) |
Net actuarial losses recognized | 15 | 10 | 45 | 30 |
Net Periodic Benefit (Credit) Cost | (15) | (13) | (45) | (39) |
Postretirement Benefits | Non-U.S. Plans | ||||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 432 | 431 | 1,296 | 1,293 |
Interest cost | 299 | 283 | 897 | 849 |
Net actuarial losses recognized | 32 | 130 | 96 | 390 |
Net Periodic Benefit (Credit) Cost | $ 763 | $ 844 | $ 2,289 | $ 2,532 |
Pension Plans - Additional Info
Pension Plans - Additional Information (Detail) - Pension Benefits - USD ($) $ in Millions | 3 Months Ended | |
Feb. 28, 2022 | May 31, 2021 | |
U.S. Plans | ||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Contribution to pension plans during current quarter | $ 64.6 | |
Total expected contributions to pension plans | $ 65.6 | $ 1 |
Non-U.S. Plans | ||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total expected contributions to pension plans | $ 5 |
Changes in Accrued Warranty Bal
Changes in Accrued Warranty Balances (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | ||
Commitments and Contingencies Disclosure [Abstract] | |||||
Beginning Balance | $ 12,886 | $ 12,050 | $ 13,175 | $ 11,106 | |
Deductions | [1] | (5,186) | (4,745) | (16,868) | (18,327) |
Provision charged to expense | 4,628 | 5,473 | 16,021 | 19,999 | |
Ending Balance | $ 12,328 | $ 12,778 | $ 12,328 | $ 12,778 | |
[1] | Primarily claims paid during the year. |
Contingencies and Accrued Los_3
Contingencies and Accrued Losses - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 10, 2021 | Feb. 28, 2022 | Nov. 30, 2021 | May 31, 2021 |
Loss Contingencies [Line Items] | ||||
New jury awarded damages value to distributor | $ 6,000 | |||
Accrued losses | $ 25,646 | $ 29,054 | ||
Maximum range of reasonably possible loss | $ 6,000 | |||
Subsidiary Potential Arguments On Appeal | ||||
Loss Contingencies [Line Items] | ||||
Accrued losses | $ 2,600 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2022USD ($) | Feb. 28, 2022USD ($)Segment | Nov. 30, 2021USD ($) | May 31, 2021USD ($) | |
Disaggregation Of Revenue [Line Items] | ||||
Number of reportable segments | Segment | 4 | |||
Revenue performance obligation description of payment terms | Payment terms and conditions vary by contract type, although our customers’ payment terms generally include a requirement to pay within 30 to 60 days of fulfilling our performance obligations | |||
Revenue, Practical Expedient, Financing Component [true false] | false | |||
Increase (decrease) in net contract assets | $ (855) | $ (10,376) | ||
Long-term deferred revenue | $ 67,100 | $ 67,100 | $ 67,200 | $ 67,800 |
Summary of Trade Accounts Recei
Summary of Trade Accounts Receivable Net of Allowances and Net Contract Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2022 | Nov. 30, 2021 | May 31, 2021 | |
Disaggregation Of Revenue [Line Items] | ||||
Trade accounts receivable, less allowances | $ 1,085,396 | $ 1,085,396 | $ 1,173,494 | $ 1,280,806 |
Contract assets | 47,638 | 47,638 | 47,615 | 33,217 |
Contract liabilities - short-term | (37,157) | (37,157) | (36,279) | (33,112) |
Net Contract Assets | 10,481 | 10,481 | $ 11,336 | $ 105 |
Change in Contract with Customer, Asset and Liability [Abstract] | ||||
Change in trade accounts receivable, less allowance | (88,098) | (195,410) | ||
Change in contract assets | 23 | 14,421 | ||
Increase in net contract assets | $ (855) | $ (10,376) | ||
Percentage of change in trade accounts receivable, less allowance | (7.50%) | (15.30%) | ||
Percentage of change in contract assets | 0.00% | 43.40% | ||
Percentage of change in Net Contract Assets/(Liabilities) | (7.50%) | |||
Short-term | ||||
Change in Contract with Customer, Asset and Liability [Abstract] | ||||
Change in contract liabilities | $ (878) | $ (4,045) | ||
Percentage of change in contract liabilities | 2.40% | 12.20% |
Summary of Activity for Allowan
Summary of Activity for Allowance for Credit Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Accounts receivable, allowance for credit loss [Roll Forward] | ||||
Beginning balance | $ 50,932 | $ 53,542 | $ 55,922 | $ 55,847 |
Bad debt provision | 571 | 3,800 | 2,645 | 4,968 |
Uncollectible accounts written off, net of recoveries | (2,436) | (5,661) | (7,335) | (11,008) |
Translation adjustments | 727 | 522 | (1,438) | 2,396 |
Ending balance | $ 49,794 | $ 52,203 | $ 49,794 | $ 52,203 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 9 Months Ended |
Feb. 28, 2022Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 4 |
Results of Reportable Segments
Results of Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | May 31, 2021 | |
Segment Reporting Information [Line Items] | |||||
Net Sales | $ 1,433,879 | $ 1,269,395 | $ 4,723,838 | $ 4,361,981 | |
Income (Loss) Before Income Taxes | 40,497 | 55,860 | 385,122 | 464,185 | |
Identifiable Assets | 6,330,602 | 6,330,602 | $ 6,252,969 | ||
CPG Segment | |||||
Segment Reporting Information [Line Items] | |||||
Income (Loss) Before Income Taxes | 31,498 | 14,431 | 276,223 | 184,613 | |
Identifiable Assets | 1,938,999 | 1,938,999 | 1,815,303 | ||
PCG Segment | |||||
Segment Reporting Information [Line Items] | |||||
Income (Loss) Before Income Taxes | 24,917 | 12,158 | 97,849 | 64,719 | |
Identifiable Assets | 1,092,037 | 1,092,037 | 1,051,334 | ||
Consumer Segment | |||||
Segment Reporting Information [Line Items] | |||||
Income (Loss) Before Income Taxes | 16,893 | 42,724 | 95,912 | 263,813 | |
Identifiable Assets | 2,344,960 | 2,344,960 | 2,386,703 | ||
SPG Segments | |||||
Segment Reporting Information [Line Items] | |||||
Income (Loss) Before Income Taxes | 25,881 | 24,560 | 71,028 | 73,415 | |
Identifiable Assets | 823,342 | 823,342 | 772,540 | ||
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 1,433,879 | 1,269,395 | 4,723,838 | 4,361,981 | |
Operating Segments | CPG Segment | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 482,026 | 395,969 | 1,740,578 | 1,447,179 | |
Operating Segments | PCG Segment | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 270,865 | 226,523 | 858,987 | 745,145 | |
Operating Segments | Consumer Segment | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 491,617 | 477,742 | 1,559,223 | 1,666,418 | |
Operating Segments | SPG Segments | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 189,371 | 169,161 | 565,050 | 503,239 | |
Operating Segments | Domestic | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 985,269 | 848,842 | 3,230,344 | 2,966,965 | |
Operating Segments | Domestic | CPG Segment | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 259,606 | 195,193 | 974,201 | 784,246 | |
Operating Segments | Domestic | PCG Segment | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 167,623 | 132,075 | 531,655 | 436,617 | |
Operating Segments | Domestic | Consumer Segment | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 403,524 | 381,712 | 1,267,373 | 1,332,531 | |
Operating Segments | Domestic | SPG Segments | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 154,516 | 139,862 | 457,115 | 413,571 | |
Operating Segments | Foreign | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 448,610 | 420,553 | 1,493,494 | 1,395,016 | |
Operating Segments | Foreign | CPG Segment | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 222,420 | 200,776 | 766,377 | 662,933 | |
Operating Segments | Foreign | PCG Segment | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 103,242 | 94,448 | 327,332 | 308,528 | |
Operating Segments | Foreign | Consumer Segment | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 88,093 | 96,030 | 291,850 | 333,887 | |
Operating Segments | Foreign | SPG Segments | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 34,855 | 29,299 | 107,935 | 89,668 | |
Operating Segments | Foreign | Canada | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 87,509 | 83,233 | 338,618 | 305,368 | |
Operating Segments | Foreign | Canada | CPG Segment | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 39,479 | 32,853 | 184,940 | 137,181 | |
Operating Segments | Foreign | Canada | PCG Segment | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 17,220 | 16,303 | 54,355 | 51,613 | |
Operating Segments | Foreign | Canada | Consumer Segment | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 29,432 | 31,833 | 93,714 | 110,201 | |
Operating Segments | Foreign | Canada | SPG Segments | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 1,378 | 2,244 | 5,609 | 6,373 | |
Operating Segments | Foreign | Europe | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 239,099 | 231,830 | 786,548 | 767,364 | |
Operating Segments | Foreign | Europe | CPG Segment | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 114,226 | 106,172 | 377,220 | 344,478 | |
Operating Segments | Foreign | Europe | PCG Segment | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 54,057 | 53,156 | 172,850 | 180,681 | |
Operating Segments | Foreign | Europe | Consumer Segment | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 46,695 | 53,097 | 162,032 | 184,161 | |
Operating Segments | Foreign | Europe | SPG Segments | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 24,121 | 19,405 | 74,446 | 58,044 | |
Operating Segments | Foreign | Latin America | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 63,254 | 54,238 | 189,666 | 159,003 | |
Operating Segments | Foreign | Latin America | CPG Segment | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 47,459 | 39,555 | 144,366 | 114,545 | |
Operating Segments | Foreign | Latin America | PCG Segment | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 7,720 | 6,681 | 20,958 | 19,413 | |
Operating Segments | Foreign | Latin America | Consumer Segment | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 7,707 | 7,593 | 22,935 | 23,755 | |
Operating Segments | Foreign | Latin America | SPG Segments | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 368 | 409 | 1,407 | 1,290 | |
Operating Segments | Foreign | Asia Pacific | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 39,934 | 35,408 | 117,032 | 113,661 | |
Operating Segments | Foreign | Asia Pacific | CPG Segment | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 21,256 | 19,020 | 59,811 | 57,607 | |
Operating Segments | Foreign | Asia Pacific | PCG Segment | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 5,431 | 5,640 | 17,579 | 16,323 | |
Operating Segments | Foreign | Asia Pacific | Consumer Segment | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 4,259 | 3,507 | 13,169 | 15,770 | |
Operating Segments | Foreign | Asia Pacific | SPG Segments | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 8,988 | 7,241 | 26,473 | 23,961 | |
Operating Segments | Foreign | Other Foreign | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 18,814 | 15,844 | 61,630 | 49,620 | |
Operating Segments | Foreign | Other Foreign | CPG Segment | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 3,176 | 40 | 9,122 | ||
Operating Segments | Foreign | Other Foreign | PCG Segment | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 18,814 | 12,668 | 61,590 | 40,498 | |
Corporate/Other | |||||
Segment Reporting Information [Line Items] | |||||
Income (Loss) Before Income Taxes | (58,692) | $ (38,013) | (155,890) | $ (122,375) | |
Identifiable Assets | $ 131,264 | $ 131,264 | $ 227,089 |