Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
May 31, 2019 | Jul. 19, 2019 | Nov. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | May 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | RPM | ||
Entity Registrant Name | RPM INTERNATIONAL INC/DE/ | ||
Entity Central Index Key | 0000110621 | ||
Current Fiscal Year End Date | --05-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 129,675,144 | ||
Entity Public Float | $ 8,681,938,485 | ||
Entity File Number | 1-14187 | ||
Entity Tax Identification Number | 020642224 | ||
Entity Address, Address Line One | P.O. Box 777, 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 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | May 31, 2019 | May 31, 2018 |
Current Assets | ||
Cash and cash equivalents | $ 223,168 | $ 244,422 |
Trade accounts receivable (less allowances of $54,748 and $46,344, respectively) | 1,232,350 | 1,113,818 |
Inventories | 841,873 | 834,461 |
Prepaid expenses and other current assets | 220,701 | 278,230 |
Total current assets | 2,518,092 | 2,470,931 |
Property, Plant and Equipment, at Cost | 1,662,859 | 1,575,875 |
Allowance for depreciation | (843,648) | (795,569) |
Property, plant and equipment, net | 819,211 | 780,306 |
Other Assets | ||
Goodwill | 1,245,762 | 1,192,174 |
Other intangible assets, net of amortization | 601,082 | 584,272 |
Deferred income taxes | 34,908 | 21,897 |
Other | 222,300 | 222,242 |
Total other assets | 2,104,052 | 2,020,585 |
Total Assets | 5,441,355 | 5,271,822 |
Current Liabilities | ||
Accounts payable | 556,696 | 592,281 |
Current portion of long-term debt | 552,446 | 3,501 |
Accrued compensation and benefits | 193,345 | 177,106 |
Accrued losses | 19,899 | 22,132 |
Other accrued liabilities | 217,019 | 211,706 |
Total current liabilities | 1,539,405 | 1,006,726 |
Long-Term Liabilities | ||
Long-term debt, less current maturities | 1,973,462 | 2,170,643 |
Other long-term liabilities | 405,040 | 356,892 |
Deferred income taxes | 114,843 | 104,023 |
Total long-term liabilities | 2,493,345 | 2,631,558 |
Commitments and contingencies (Note P) | ||
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 142,439 and outstanding 130,995 as of May 2019; issued 141,716 and outstanding 133,647 as of May 2018 | 1,310 | 1,336 |
Paid-in capital | 994,508 | 982,067 |
Treasury stock, at cost | (437,290) | (236,318) |
Accumulated other comprehensive (loss) | (577,628) | (459,048) |
Retained earnings | 1,425,052 | 1,342,736 |
Total RPM International Inc. stockholders' equity | 1,405,952 | 1,630,773 |
Noncontrolling Interest | 2,653 | 2,765 |
Total equity | 1,408,605 | 1,633,538 |
Total Liabilities and Stockholders' Equity | $ 5,441,355 | $ 5,271,822 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | May 31, 2019 | May 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Trade accounts receivable, allowances | $ 54,748 | $ 46,344 |
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 | 142,439,000 | 141,716,000 |
Common stock, outstanding | 130,995,000 | 133,647,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
May 31, 2019 | May 31, 2018 | May 31, 2017 | ||
Income Statement [Abstract] | ||||
Net Sales | [1] | $ 5,564,551 | $ 5,321,643 | $ 4,958,175 |
Cost of Sales | 3,302,644 | 3,140,431 | 2,792,487 | |
Gross Profit | 2,261,907 | 2,181,212 | 2,165,688 | |
Selling, General and Administrative Expenses | 1,769,630 | 1,663,143 | 1,643,520 | |
Restructuring Expense | 42,310 | 17,514 | ||
Goodwill and Other Intangible Asset Impairments | 4,190 | 193,198 | ||
Interest Expense | 102,392 | 104,547 | 96,954 | |
Investment (Income), Net | (730) | (20,442) | (13,984) | |
Other Expense (Income), Net | 4,270 | (598) | 1,667 | |
Income Before Income Taxes | 339,845 | 417,048 | 244,333 | |
Provision for Income Taxes | 72,158 | 77,791 | 59,662 | |
Net Income | 267,687 | 339,257 | 184,671 | |
Less: Net Income Attributable to Noncontrolling Interests | 1,129 | 1,487 | 2,848 | |
Net Income Attributable to RPM International Inc. Stockholders | $ 266,558 | $ 337,770 | $ 181,823 | |
Average Number of Shares of Common Stock Outstanding: | ||||
Basic | [2] | 130,552 | 131,179 | 130,662 |
Diluted | [2],[3] | 134,333 | 137,171 | 135,165 |
Earnings per Share of Common Stock Attributable to RPM International Inc. Stockholders: | ||||
Basic | $ 2.03 | $ 2.55 | $ 1.37 | |
Diluted | $ 2.01 | $ 2.50 | $ 1.36 | |
[1] | It is not practicable to obtain the information needed to disclose revenues attributable to each of our product lines. | |||
[2] | For the year ended May 31, 2019 and 2018, basic and diluted earnings per share are calculated under the two-class method and the treasury method, respectively, as those methods resulted in the most dilutive earnings per share. For the year ended May 31, 2017, basic and diluted earnings per share are calculated using the two-class method. | |||
[3] | For the years ended May 31, 2019, 2018 and 2017, approximately 862,500, 799,362 and 606,048 shares of stock, respectively, granted under stock-based compensation plans were excluded from the calculation of diluted EPS, as the effect would have been anti-dilutive. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net Income | $ 267,687 | $ 339,257 | $ 184,671 |
Other Comprehensive Income, Before Tax: | |||
Foreign Currency Translation Adjustments | (73,594) | 10,857 | (20,402) |
Pension and Other Postretirement Benefit Liabilities | |||
Net (Loss) Gain Arising During the Period | (87,525) | (3,489) | 38,679 |
Prior Service Cost Arising During the Period | 22 | 61 | 196 |
Less: Amortization of Prior Service Cost Included in Net Periodic Pension Cost | (132) | (121) | (41) |
Less: Amortization of Net Loss and Settlement Recognition | 14,848 | 16,738 | 25,444 |
Effect of Exchange Rates on Amounts Included for Pensions | 2,002 | (1,814) | 1,986 |
Pension and Other Postretirement Benefit Liability Adjustments | (70,785) | 11,375 | 66,264 |
Unrealized Gains on Available-For-Sale Securities | |||
Unrealized Holding Gains (Losses) During the Period | 458 | (1,459) | 8,250 |
Less: Reclassification Adjustments for Losses (Gains) Included in Net Income | 1,626 | (1,835) | (2,248) |
Unrealized Gain (Loss) on Securities | 2,084 | (3,294) | 6,002 |
Unrealized Gain (Loss) on Derivatives | 4,713 | (359) | 16 |
Other Comprehensive (Loss) Income, Before Tax | (137,582) | 18,579 | 51,880 |
Income Tax Expense (Benefit) Related to Components of Other Comprehensive Income | 19,068 | (3,773) | (23,863) |
Other Comprehensive (Loss) Income, After Tax | (118,514) | 14,806 | 28,017 |
Comprehensive Income | 149,173 | 354,063 | 212,688 |
Less: Comprehensive Income Attributable to Noncontrolling Interests | 1,195 | 1,354 | 2,804 |
Comprehensive Income Attributable to RPM International Inc. Stockholders | $ 147,978 | $ 352,709 | $ 209,884 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
May 31, 2019 | May 31, 2018 | May 31, 2017 | ||
Cash Flows From Operating Activities: | ||||
Net income | $ 267,687 | $ 339,257 | $ 184,671 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation | 94,043 | 81,976 | 71,870 | |
Amortization | 47,699 | 46,523 | 44,903 | |
Restructuring charges, net of payments | 8,072 | 17,514 | ||
Goodwill, intangible and other asset impairments | 4,190 | 193,198 | ||
Fair value adjustments to contingent earnout obligations | 1,918 | 3,400 | 3,000 | |
Other-than-temporary impairments on marketable securities | 420 | |||
Deferred income taxes | 5,434 | (10,690) | 24,049 | |
Stock-based compensation expense | 31,154 | 25,440 | 32,541 | |
Other non-cash interest expense | 1,552 | 6,187 | 9,986 | |
Realized/unrealized losses (gains) on sales of marketable securities | 7,613 | (10,076) | (8,174) | |
Loss on extinguishment of debt | [1] | 3,051 | ||
Other | (3,288) | (1,141) | 280 | |
Changes in assets and liabilities, net of effect from purchases and sales of businesses: | ||||
(Increase) in receivables | (131,204) | (106,179) | (5,690) | |
(Increase) in inventory | (16,829) | (34,102) | (70,726) | |
(Increase) decrease in prepaid expenses and other current and long-term assets | (14,826) | 3,348 | (38,130) | |
(Decrease) increase in accounts payable | (29,628) | 51,641 | 16,247 | |
Increase (decrease) in accrued compensation and benefits | 19,241 | (5,010) | (4,577) | |
(Decrease) in accrued loss reserves | (1,803) | (10,387) | (3,422) | |
(Decrease) in other accrued liabilities | (5,232) | (6,612) | (64,322) | |
Other | 4,097 | (706) | 3 | |
Cash Provided By Operating Activities | 292,941 | 390,383 | 386,127 | |
Cash Flows From Investing Activities: | ||||
Capital expenditures | (136,757) | (114,619) | (126,109) | |
Acquisition of businesses, net of cash acquired | (168,205) | (112,442) | (254,200) | |
Purchase of marketable securities | (19,787) | (181,953) | (38,062) | |
Proceeds from sales of marketable securities | 69,743 | 138,803 | 76,588 | |
Other | 6,760 | 9,018 | 2,118 | |
Cash (Used For) Investing Activities | (248,246) | (261,193) | (339,665) | |
Cash Flows From Financing Activities: | ||||
Additions to long-term and short-term debt | 628,083 | 351,082 | 597,633 | |
Reductions of long-term and short-term debt | (273,109) | (276,406) | (154,348) | |
Cash dividends | (181,409) | (167,476) | (156,752) | |
Repurchase of common stock | (200,222) | |||
Shares of common stock returned for taxes | (21,758) | (17,152) | (21,948) | |
Payments of acquisition-related contingent consideration | (4,066) | (3,945) | (4,284) | |
Payments for 524(g) trust | (123,567) | (221,638) | ||
Other | (1,361) | (1,912) | (2,692) | |
Cash (Used For) Provided By Financing Activities | (53,842) | (239,376) | 35,971 | |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (12,107) | 4,111 | 2,912 | |
Net Change in Cash and Cash Equivalents | (21,254) | (106,075) | 85,345 | |
Cash and Cash Equivalents at Beginning of Period | 244,422 | 350,497 | 265,152 | |
Cash and Cash Equivalents at End of Period | 223,168 | 244,422 | 350,497 | |
Cash paid during the year for: | ||||
Interest | 101,415 | 97,295 | 78,685 | |
Income taxes, net of refunds | 68,357 | $ 83,460 | $ 71,236 | |
Supplemental Disclosures of Non-Cash Investing and Financing Activities: | ||||
Conversion of Debt to Equity | $ 38,239 | |||
[1] | In connection with the redemption of all of our outstanding 2.25% convertible senior notes in November 2018, we recognized a loss of $3.1 million, due to the fair value remeasurement on the date of conversion. |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ 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, 2016 | $ 1,374,748 | $ 1,329 | $ 921,956 | $ (196,274) | $ (502,047) | $ 1,147,371 | $ 1,372,335 | $ 2,413 |
Beginning Balance (in shares) at May. 31, 2016 | 132,944,000 | |||||||
Net income | 184,671 | 181,823 | 181,823 | 2,848 | ||||
Other comprehensive income | 28,017 | 28,061 | 28,061 | (44) | ||||
Dividends declared and paid | (156,752) | (156,752) | (156,752) | |||||
Other noncontrolling interest activity | $ (2,578) | (2,578) | ||||||
Share repurchases under repurchase program (in shares) | 0 | |||||||
Stock compensation expense and other deferred compensation, shares granted less shares returned for taxes | $ 10,594 | $ 7 | 32,535 | (21,948) | 10,594 | |||
Stock compensation expense and other deferred compensation, shares granted less shares returned for taxes (in shares) | 619,000 | |||||||
Ending Balance at May. 31, 2017 | 1,438,700 | $ 1,336 | 954,491 | (218,222) | (473,986) | 1,172,442 | 1,436,061 | 2,639 |
Ending Balance (in shares) at May. 31, 2017 | 133,563,000 | |||||||
Net income | 339,257 | 337,770 | 337,770 | 1,487 | ||||
Other comprehensive income | 14,806 | 14,938 | 14,938 | (132) | ||||
Dividends declared and paid | (167,476) | (167,476) | (167,476) | |||||
Other noncontrolling interest activity | $ (1,229) | (1,229) | ||||||
Share repurchases under repurchase program (in shares) | 0 | |||||||
Stock compensation expense and other deferred compensation, shares granted less shares returned for taxes | $ 9,480 | 27,576 | (18,096) | 9,480 | ||||
Stock compensation expense and other deferred compensation, shares granted less shares returned for taxes (in shares) | 84,000 | |||||||
Ending Balance at May. 31, 2018 | 1,633,538 | $ 1,336 | 982,067 | (236,318) | (459,048) | 1,342,736 | 1,630,773 | 2,765 |
Ending Balance (in shares) at May. 31, 2018 | 133,647,000 | |||||||
Cumulative-effect adjustment upon adoption of ASU 2014-09 at May. 31, 2018 | (2,833) | (2,833) | (2,833) | |||||
Net income | 267,687 | 266,558 | 266,558 | 1,129 | ||||
Other comprehensive income | (118,514) | (118,580) | (118,580) | 66 | ||||
Dividends declared and paid | (181,409) | (181,409) | (181,409) | |||||
Other noncontrolling interest activity | (1,307) | (1,307) | ||||||
Share repurchases under repurchase program | $ (200,222) | $ (33) | 33 | (200,222) | (200,222) | |||
Share repurchases under repurchase program (in shares) | (3,286,907) | (3,287,000) | ||||||
Stock compensation expense and other deferred compensation, shares granted less shares returned for taxes | $ 14,473 | $ 1 | 35,437 | (20,965) | 14,473 | |||
Stock compensation expense and other deferred compensation, shares granted less shares returned for taxes (in shares) | 36,000 | |||||||
Convertible bond redemption | (2,808) | $ 6 | (23,029) | 20,215 | (2,808) | |||
Convertible bond redemption (in shares) | 599,000 | |||||||
Ending Balance at May. 31, 2019 | $ 1,408,605 | $ 1,310 | $ 994,508 | $ (437,290) | $ (577,628) | $ 1,425,052 | $ 1,405,952 | $ 2,653 |
Ending Balance (in shares) at May. 31, 2019 | 130,995,000 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2017 | |
Statement Of Stockholders Equity [Abstract] | |||
Dividends declared and paid paid per share | $ 1.37 | $ 1.26 | $ 1.175 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
May 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE A — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 1) Consolidation, Noncontrolling Interests and Basis of Presentation 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). 2) Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. 3) Acquisitions/Divestitures We account for business combinations and asset acquisitions using the acquisition method of accounting and, accordingly, the assets and liabilities of the acquired entities are recorded at their estimated fair values at the acquisition date. During the fiscal year ended May 31, 2019, we completed a total of five acquisitions among our three reportable segments. During fiscal 2019, our industrial reportable segment completed two acquisitions, which included the following: a provider of hygienic flooring solutions for the U.K. food and beverage industry headquartered in the U.K.; and a distributor of concrete admixture products throughout Puerto Rico, the Dominican Republic and Panama. Within our consumer reportable segment, we acquired a brand line of specialty cleaning products and the exclusive North American licensing for a brand line of drain care products based in Cincinnati, Ohio; and a manufacturer of non-toxic specialty cleaners based in Ontario, Canada. Lastly, we acquired a leading manufacturer and distributor of insulated concrete forms in North America, based in Ontario, Canada, which reports through our specialty reportable segment. During the fiscal year ended May 31, 2018, we completed a total of seven acquisitions among our three reportable segments. During fiscal 2018, our industrial reportable segment completed three acquisitions, which included the following: a manufacturer of high-performance spray applied polyurea waterproofing systems, as well as a range of polymer flooring systems located in Norway; a manufacturer and marketer of terrazzo and resinous flooring, wall coating systems and other concrete repair and maintenance materials headquartered in Batavia, Ohio; and a manufacturer and installer of a range of specialty bridge bearings and expansion joints, as well as custom engineered solutions for bridges, wind turbines and other structures located in the U.K. Within our consumer reportable segment, we acquired a manufacturer of sealers, cleaners, polishes and related products primarily for tile and natural stone based in Arcadia, California; and a manufacturer and marketer of specialty cleaners for rust stain removal based in Eldora, Iowa. Lastly, we acquired the assets of a manufacturer of adjuvants, which are used to enhance the productivity of herbicides for farming and forest protection programs located in Australia; and the assets of a distributor of high-performance wood finishes located in the U.K., both of which report through our specialty reportable segment. The purchase price for each acquisition has been allocated to the estimated fair values of the assets acquired and liabilities assumed as of the date of acquisition. We have finalized the purchase price allocation for our fiscal 2018 acquisitions, and there were no material changes from the prior year disclosure. While the valuations of consideration transferred, total assets acquired and liabilities assumed are substantially complete, the primary areas that remain preliminary relate to the fair values of deferred income taxes for acquisitions completed during fiscal 2019. Acquisitions are aggregated by year of purchase in the following table: Fiscal 2019 Acquisitions Fiscal 2018 Acquisitions (In thousands) Weighted-Average Intangible Asset Amortization Life (In Years) Total Weighted-Average Intangible Asset Amortization Life (In Years) Total Current assets $ 29,734 $ 28,939 Property, plant and equipment 22,607 10,875 Goodwill N/A 77,459 N/A 43,656 Trade names - indefinite lives N/A 14,033 N/A 15,096 Other intangible assets 10 59,748 12 36,450 Other long-term assets 3,095 81 Total Assets Acquired $ 206,676 $ 135,097 Liabilities assumed (36,083 ) (19,369 ) Net Assets Acquired $ 170,593 (1) $ 115,728 (2) (1) Figure includes cash acquired of $2.3 million. (2) Figure includes cash acquired of $3.3 million. Our Consolidated Financial Statements reflect the results of operations of acquired businesses as of their respective dates of acquisition. Pro-forma results of operations for the years ended May 31, 2019 and 2018 were not materially different from reported results and, consequently, are not presented. 4) Foreign Currency The functional currency for each of our foreign subsidiaries is its principal operating currency. Accordingly, for the periods presented, assets and liabilities have been translated using exchange rates at year end, while income and expense for the periods have been translated using a weighted-average exchange rate. The resulting translation adjustments have been recorded in accumulated other comprehensive income (loss), a component of stockholders’ equity, and will be included in net earnings only upon the sale or liquidation of the underlying foreign investment, neither of which is contemplated at this time. Transaction gains and losses increased during the last three fiscal years due to the strengthening of the U.S. dollar, resulting in net transactional foreign exchange losses for fiscal 2019, 2018 and 2017 of approximately $4.8 million, $12.3 million and $6.4 million, respectively. 5) Cash and Cash Equivalents We consider all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. We do not believe we are exposed to any significant credit risk on cash and cash equivalents. The carrying amounts of cash and cash equivalents approximate fair value. 6 ) Property, Plant & Equipment May 31, 2019 2018 (In thousands) Land $ 88,638 $ 85,007 Buildings and leasehold improvements 459,542 445,017 Machinery and equipment 1,114,679 1,045,851 Total property, plant and equipment, at cost 1,662,859 1,575,875 Less: allowance for depreciation and amortization 843,648 795,569 Property, plant and equipment, net $ 819,211 $ 780,306 We review long-lived assets for impairment when circumstances indicate that the carrying values of these assets may not be recoverable. For assets that are to be held and used, an impairment charge is recognized when the estimated undiscounted future cash flows associated with the asset or group of assets are less than their carrying value. If impairment exists, an adjustment is made to write the asset down to its fair value, and a loss is recorded for the difference between the carrying value and the fair value. Fair values are determined based on quoted market values, discounted cash flows, internal appraisals or external appraisals, as applicable. Assets to be disposed of are carried at the lower of their carrying value or estimated net realizable value. Depreciation is computed primarily using the straight-line method over the following ranges of useful lives: Land improvements 1 to 50 years Buildings and improvements 1 to 50 years Machinery and equipment 1 to 33 years Total depreciation expense for each fiscal period includes the charges to income that result from the amortization of assets recorded under capital leases. 7) Revenue Recognition 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 other construction contracts, we record contract revenues and related costs as our contracts progress on an over-time model. Effective June 1, 2018, we adopted Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers,” and all the related amendments included within Accounting Standards Codification 606 (“ASC 606”). Refer to Note A(19) for further information regarding the new revenue recognition standard. 8) Shipping Costs Shipping costs paid to third-party shippers for transporting products to customers are included in SG&A expenses. For the years ended May 31, 2019, 2018 and 2017, shipping costs were $173.6 million, $164.7 million and $148.9 million, respectively. 9) Allowance for Doubtful Accounts Receivable An allowance for anticipated uncollectible trade receivable amounts is established using a combination of specifically identified accounts to be reserved and a reserve covering trends in collectibility. These estimates are based on an analysis of trends in collectibility and past experience, but are primarily made up of individual account balances identified as doubtful based on specific facts and conditions. Receivable losses are charged against the allowance when we determine uncollectibility. Actual collections of trade receivables could differ from our estimates due to changes in future economic or industry conditions or specific customer’s financial conditions. For the periods ended May 31, 2019, 2018 and 2017, bad debt expense approximated $18.6 million, $9.1 million and $16.0 million, respectively. The bad debt expense during fiscal 2017 reflected our reassessment of the collectibility of accounts receivable, particularly in emerging markets. The increase in bad debt expense during fiscal 2019 was primarily due to write-offs associated with our 2020 MAP to Growth initiatives. Refer to Note B, “Restructuring,” for further information. 10) Inventories Inventories are stated at the lower of cost or net realizable value, cost being determined on a first-in, first-out (FIFO) basis and net realizable value being determined on the basis of replacement cost. Inventory costs include raw materials, labor and manufacturing overhead. We review the net realizable value of our inventory in detail on an on-going basis, with consideration given to various factors, which include our estimated reserves for excess, obsolete, slow-moving or distressed inventories. If actual market conditions differ from our projections, and our estimates prove to be inaccurate, write-downs of inventory values and adjustments to cost of sales may be required. Historically, our inventory reserves have approximated actual experience. During fiscal 2019, we recorded $10.5 million in charges resulting from more proactive management of inventory at our consumer segment and $10.0 million of inventory charges related to restructuring activities at our industrial segment. During fiscal 2018, our consumer reportable segment businesses were impacted by tighter inventory management at many of their top customers and, starting in mid-April, we made the determination to consolidate several divisions within certain consumer segment businesses, close two manufacturing facilities and eliminate approximately 154 positions. These actions were taken by new leadership in place at our Rust-Oleum business in order to streamline processes, reduce overhead, improve margins and reduce working capital. In relation to these initiatives, our consumer segment recognized $36.5 million of charges related to product line and SKU rationalization and related obsolete inventory identification during the fourth quarter of fiscal 2018. Additionally, during fiscal 2018, we incurred $1.2 million in inventory write-offs in connection with restructuring activities at our industrial reportable segment. Inventories were composed of the following major classes: May 31, 2019 2018 (In thousands) Raw material and supplies $ 296,493 $ 288,201 Finished goods 545,380 546,260 Total Inventory $ 841,873 $ 834,461 11) Goodwill and Other Intangible Assets We account for goodwill and other intangible assets in accordance with the provisions of ASC 350 and account for business combinations using the acquisition method of accounting and, accordingly, the assets and liabilities of the entities acquired are recorded at their estimated fair values at the acquisition date. Goodwill represents the excess of the purchase price paid over the fair value of net assets acquired, including the amount assigned to identifiable intangible assets. We performed the required annual goodwill impairment assessments as of the first day of our fourth fiscal quarter at the reporting unit level. Our reporting units have been identified at the component level, which is the operating segment level or one level below. First, we assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The traditional two-step quantitative process is required only if we conclude that it is more likely than not that a reporting unit’s fair value is less than its carrying amount. However, we have an unconditional option to bypass a qualitative assessment and proceed directly to performing the traditional two-step quantitative analysis. We applied both the qualitative and traditional two-step quantitative processes during our annual goodwill impairment assessment performed during the fourth quarters of fiscal 2019, 2018 and 2017. The traditional two-step quantitative goodwill impairment assessment involves estimating the fair value of a reporting unit and comparing it with its carrying amount. If the carrying amount of the reporting unit exceeds its fair value, additional steps are followed to determine and recognize, if appropriate, an impairment loss. Calculating the fair value of the reporting units requires our significant use of estimates and assumptions. We estimate the fair values of our reporting units by applying a combination of third-party market-value indicators, when observable market data is available, and discounted future cash flows to each of our reporting unit’s projected EBITDA or adjusted EBITDA, which adjusts for one-off items impacting revenues and/or expenses that are not considered by management to be indicative of ongoing operations. In applying this methodology, we rely on a number of factors, including actual and forecasted operating results and market data. As a result of the annual impairment assessments performed for fiscal 2019 and 2018, there were no goodwill impairments, including no reporting units that were at risk of failing step one of the traditional two-step quantitative analysis. During fiscal 2017, we recorded a loss totaling $188.3 million for the impairment of goodwill and intangibles at our Kirker reporting unit within our consumer reportable segment. Additionally, we test all indefinite-lived intangible assets for impairment annually. We perform the required annual impairment assessments as of the first day of our fourth fiscal quarter. We may elect to first assess qualitative factors to determine whether it is more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying amount before applying traditional quantitative tests. We applied both qualitative and quantitative processes during our annual indefinite-lived intangible asset impairment assessments performed during the fourth quarters of fiscal 2019, 2018 and 2017. The annual impairment assessment involves estimating the fair value of each indefinite-lived asset and comparing it with its carrying amount. If the carrying amount of the intangible asset exceeds its fair value, we record an impairment loss equal to the difference. Calculating the fair value of the indefinite-lived assets requires our significant use of estimates and assumptions. We estimate the fair values of our intangible assets by applying a relief-from-royalty calculation, which includes discounted future cash flows related to each of our intangible asset’s projected revenues. In applying this methodology, we rely on a number of factors, including actual and forecasted revenues and market data. As a result of the assessments performed for fiscal 2019 and 2018, there were no impairments. Results of intangible asset impairment assessments performed during fiscal 2017 are outlined below. As described further in Note C, “Goodwill and Other Intangible Assets,” during fiscal 2019, as a result of interim impairment tests, we recorded other intangible asset impairment losses totaling $4.2 million, of which $2.0 million was recorded by our industrial reportable segment for impairment losses on trade names and approximately $2.2 million was recorded by our specialty reportable segment for impairment losses on customer-related intangibles. During fiscal 2017, we recorded a loss totaling $4.9 million for a trade name impairment in our consumer reportable segment. Should the future earnings and cash flows at our reporting units decline and/or discount rates increase, future impairment charges to goodwill and other intangible assets may be required. 12) Advertising Costs Advertising costs are charged to operations when incurred and are included in SG&A expenses. For the years ended May 31, 2019, 2018 and 2017, advertising costs were $57.5 million, $58.0 million and $52.3 million, respectively. 13) Research and Development Research and development costs are charged to operations when incurred and are included in SG&A expenses. The amounts charged to expense for the years ended May 31, 2019, 2018 and 2017 were $71.6 million, $69.7 million and $64.9 million, respectively. 14) Stock-Based Compensation Stock-based compensation represents the cost related to stock-based awards granted to our employees and directors, which may include restricted stock and stock appreciation rights (“SARs”). We measure stock-based compensation cost at the date of grant, based on the estimated fair value of the award. We recognize the cost as expense on a straight-line basis (net of estimated forfeitures) over the related vesting period. Refer to Note J, “Stock-Based Compensation,” for further information. 15) Investment (Income), Net Investment (income), net, consists of the following components: Year Ended May 31, 2019 2018 2017 (In thousands) Interest (income) $ (4,885 ) $ (5,003 ) $ (4,620 ) Net loss (gain) on marketable securities 8,366 (11,704 ) (8,174 ) Other-than-temporary impairment on securities 420 Dividend (income) (4,211 ) (3,735 ) (1,610 ) Investment (income), net $ (730 ) $ (20,442 ) $ (13,984 ) Net Loss (Gain) on Marketable Securities During fiscal 2019, we recognized realized losses on sales of available-for-sale securities of $3.0 million, realized gains on trading securities of $0.5 million and unrealized losses on trading securities of $1.3 million. Also during the year ended May 31, 2019, we recognized unrealized losses of $4.6 million on marketable equity securities as a result of our adoption of ASU 2016-01. During fiscal 2018, we recognized gross realized gains and losses on sales of marketable securities of $11.9 million and $1.8 million, respectively. During fiscal 2017, we recognized gross realized gains and losses on sales of marketable securities of $12.6 million and $4.4 million, respectively. 16) Other Expense (Income), Net Other expense (income), net, consists of the following components: Year Ended May 31, 2019 2018 2017 (In thousands) Royalty expense (income), net $ (96 ) $ 404 $ 2,680 (Income) related to unconsolidated equity affiliates (332 ) (1,002 ) (1,013 ) Pension non-service costs 1,647 Loss on extinguishment of debt (a) 3,051 Other expense (income), net $ 4,270 $ (598 ) $ 1,667 (a) In connection with the redemption of all of our outstanding 2.25% convertible senior notes in November 2018, we recognized a loss of $3.1 million, due to the fair value remeasurement on the date of conversion. 17) Income Taxes The provision for income taxes is calculated using the asset and liability method. Under the asset and liability method, deferred income taxes are recognized for the tax effect of temporary differences between the financial statement carrying amount of assets and liabilities and the amounts used for income tax purposes and for certain changes in valuation allowances. Valuation allowances are recorded to reduce certain deferred tax assets when, in our estimation, it is more likely than not that a tax benefit will not be realized. 18) Earnings Per Share of Common Stock Earnings per share (EPS) is computed using the two-class method. The two-class method determines EPS for each class of common stock and participating securities according to dividends and dividend equivalents and their respective participation rights in undistributed earnings. Our unvested share-based payment awards that contain rights to receive non-forfeitable dividends are considered participating securities. Basic EPS of common stock is computed by dividing net income by the weighted-average number of shares of common stock outstanding for the period. Diluted EPS of common stock is computed on the basis of the weighted-average number of shares of common stock, plus the effect of dilutive potential shares of common stock outstanding during the period using the treasury stock method. Dilutive potential shares of common stock include outstanding SARS, restricted stock awards and convertible notes. See Note L, “Earnings Per Share of Common Stock,” for additional information. 19) Other Recent Accounting Pronouncements Effective June 1, 2018, we adopted ASU 2014-09, “Revenue from Contracts with Customers,” and all the related amendments included within ASC 606, using the modified retrospective method of adoption. Under the modified retrospective method, comparative periods are not restated. The new standard requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This update creates a five-step model that requires entities to exercise judgment when considering the terms of contract(s), which includes (i) identifying the contract(s) with the customer, (ii) identifying the separate performance obligations in the contract, (iii) determining the transaction price, (iv) allocating the transaction price to the separate performance obligations, and (v) recognizing revenue when each performance obligation is satisfied. As a result of our adoption procedures, we determined that revenue recognition for our broad portfolio of products and services will remain largely unchanged. Accordingly, our adoption of the new standard did not have a material impact on our overall Consolidated Financial Statements. Refer to Note Q, “Revenue,” and Note R, “Segment Information,” for additional information. In January 2016, the FASB issued ASU No. 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities,” which provides amended guidance for certain aspects of recognition, measurement and disclosure of financial instruments. The main provisions of the standard impact how we account for changes in the fair value of our marketable securities currently classified as available-for-sale. Unrealized gains and losses on available-for-sale equity securities are required to be recognized in earnings rather than in other comprehensive income. Our adoption of the new standard during fiscal 2019 did not have a material effect on our overall Consolidated Financial Statements. See Note D, “Marketable Securities,” and Note A(15), “Investment Expense (Income), Net,” for additional information. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” which increases lease transparency and comparability among organizations. Under the new standard, lessees will be required to recognize all assets and liabilities arising from leases on the balance sheet, with the exception of leases with a term of 12 months or less, which permits a lessee to make an accounting policy election by class of underlying asset not to recognize lease assets and liabilities. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and early adoption is permitted. In March 2018, the FASB approved an alternative transition method to the modified retrospective approach, which eliminates the requirement to restate prior period financial statements and requires the cumulative effect of the retrospective allocation to be recorded as an adjustment to the opening balance of retained earnings at the date of adoption. We will adopt the new leasing standard on the required effective date of June 1, 2019 using the alternative transition method as described above. We elected the “package of practical expedients” and have decided not to elect the “Hindsight” practical expedient. As a result, we will measure the right of use asset and lease liability for operating leases upon adoption using the remaining portion of the lease term. A cross-functional implementation team is finalizing policy elections, the discount rate to be used based on June 1, 2019 data, and business processes and controls to support recognition and disclosure under the new standard. The primary impact upon adoption will be the recognition of the right of use assets and lease liabilities, on a discounted basis, of our minimum lease obligations, as disclosed in Note M, “Leases.” As a result of our adoption procedures, we have determined that the new guidance will have a material impact on our Consolidated Balance Sheets and will not have a material effect on our Consolidated Statements of Income. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses,” which requires an organization to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Additionally, the standard amends the current available-for-sale security other-than-temporary impairment model for debt securities. The guidance is effective for fiscal years beginning after December 15, 2019 and for interim periods therein. Early adoption is permitted beginning after December 15, 2018. We are currently reviewing, but adoption of this guidance is not expected to have a material impact on our Consolidated Financial Statements. In August 2018, the SEC issued Final Rule Release No. 33-10532, “Disclosure Update and Simplification,” which makes a number of changes meant to simplify interim disclosures. The new rule requires a presentation of changes in stockholders’ equity and noncontrolling interest in the form of a reconciliation, either as a separate financial statement or in the notes to the financial statements, for the current and comparative year-to-date interim periods. The additional elements of this release did not have a material impact on our overall Consolidated Financial Statements. We adopted the new disclosure requirements in our Form 10-Q for the period ended February 28, 2019. In August 2016, the FASB issued ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments,” which makes a number of changes meant to add or clarify guidance on the classification of certain cash receipts and payments in the statement of cash flows. Our June 1, 2018 adoption of the new guidance, which we applied retrospectively to all periods presented, did not have a material impact on our Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017-01, “Business Combinations: Clarifying the Definition of a Business,” with the objective of adding guidance to assist entities in evaluating whether transactions should be accounted for as acquisitions (disposals) of assets or of businesses. We adopted the new guidance as of June 1, 2018 and do not expect this revised guidance to have a material impact on our Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017-04, “Simplifying the Test for Goodwill Impairment,” to eliminate step two from the goodwill impairment test in order to simplify the subsequent measurement of goodwill. The guidance is effective for fiscal years beginning after December 15, 2019. Early application is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. Adoption of this guidance is not expected to have a material impact on our Consolidated Financial Statements. In March 2017, the FASB issued ASU 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” which requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. Our June 1, 2018 adoption of the new guidance did not have a material impact on our Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820), – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement,” which makes a number of changes meant to add, modify or remove certain disclosure requirements associated with the movement amongst or hierarchy associated with Level 1, Level 2 and Level 3 fair value measurements. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted upon issuance of the update. We do not expect our adoption of this guidance to have a material impact on our Consolidated Financial Statements. 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, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted for all entities and the amendments in this update are required to be applied on a retrospective |
Restructuring
Restructuring | 12 Months Ended |
May 31, 2019 | |
Restructuring And Related Activities [Abstract] | |
Restructuring | NOTE B — 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, and contract cancellation 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. 2020 MAP to Growth Between May and August 2018, we approved and implemented the initial phases of a multi-year restructuring plan, 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 majority of the activities included in the initial phases of the restructuring activities have been completed. During the second quarter ended November 30, 2018, we formally announced the final phases of our 2020 MAP to Growth. This multi-year restructuring is expected to increase operational efficiency while maintaining our entrepreneurial growth culture and will include three additional phases between September 2018 and December 2020. Our execution of the 2020 MAP to Growth will continue to drive the de-layering and simplification of management and businesses associated with group realignment. We are implementing four center-led functional areas including manufacturing and operations; procurement and supply chain; information technology; and accounting and finance. Our 2020 MAP to Growth will optimize our manufacturing facilities and will ultimately provide more efficient plant and distribution facilities. In the first phase of the restructuring plan, we initiated the closure of twelve plants and seven warehouses. We also expect to incur additional severance and benefit costs as part of our planned closure of these facilities. Throughout the additional phases of our 2020 MAP to Growth initiative, we will continue to assess and identify areas of improvement and cost savings. As such, the final implementation of the aforementioned phases and total expected costs are subject to change. In addition to the announced plan, we have continued to broaden the scope of our 2020 MAP to Growth initiative, specifically in consolidation of the general and administrative areas, potential outsourcing, as well as additional future plant closures and consolidations, the estimated costs of which have not yet been finalized. The current total expected costs associated with this plan are outlined in the table below and increased by approximately $13.1 million compared to our prior quarter estimate, primarily attributable to an increase in expected severance and benefit costs within our industrial and specialty segments, in addition to facility closure and other related costs within our consumer and specialty segments. Most activities under our 2020 MAP to Growth are anticipated to be completed by the end of calendar year 2020. A summary of the charges recorded in connection with restructuring by reportable segment during is as follows: Year Ended Year Ended Cumulative Costs Total Expected (in thousands) May 31, 2019 May 31, 2018 to Date Costs Industrial Segment: Severance and benefit costs (a) $ 14,032 $ 2,169 $ 16,201 $ 21,123 Facility closure and other related costs 5,398 1,045 6,443 10,532 Other asset write-offs 569 1,373 1,942 2,873 Total Charges $ 19,999 $ 4,587 $ 24,586 $ 34,528 Consumer Segment: Severance and benefit costs (b) $ 2,516 $ 5,652 $ 8,168 $ 8,168 Facility closure and other related costs 2,445 5,139 7,584 12,200 Other asset write-offs 998 - 998 1,212 Total Charges $ 5,959 $ 10,791 $ 16,750 $ 21,580 Specialty Segment: Severance and benefit costs (c) $ 5,987 $ - $ 5,987 $ 8,488 Facility closure and other related costs 352 - 352 4,351 Other asset write-offs 29 - 29 347 Total Charges $ 6,368 $ - $ 6,368 $ 13,186 Corporate/Other Segment: Severance and benefit costs (d) $ 9,984 $ 2,136 $ 12,120 $ 12,120 Total Charges $ 9,984 $ 2,136 $ 12,120 $ 12,120 Consolidated: Severance and benefit costs $ 32,519 $ 9,957 $ 42,476 $ 49,899 Facility closure and other related costs 8,195 6,184 14,379 27,083 Other asset write-offs 1,596 1,373 2,969 4,432 Total Charges $ 42,310 $ 17,514 $ 59,824 $ 81,414 a) Fiscal 2019 and 2018 charges of $14.0 million and $2.2 million, respectively, are associated with the elimination of and 28 positions during fiscal 2019 and 2018, respectively. Additionally, $0.2 million included in the current-year charges are associated with the prior elimination of one position within the legal function during fiscal 2018. b) Fiscal 2019 and 2018 charges of $2.5 million and $5.7 million, respectively, are associated with the elimination of and 155 positions during fiscal 2019 and 2018, respectively. c) Fiscal 2019 c harges of $6.0 million are associated with the elimination of positions. There were no such charges in fiscal 2018. d) Reflects current-year charges related to the severance of two two four three A summary of the activity in the restructuring reserves related to the 2020 MAP to Growth plan is as follows: (in thousands) Severance and Benefits Costs Facility Closure and Other Related Costs Other Asset Write-Offs Total Balance at June 1, 2017 $ - $ - $ - $ - Additions charged to expense 9,957 6,184 1,373 17,514 Balance at May 31, 2018 $ 9,957 $ 6,184 $ 1,373 $ 17,514 (in thousands) Severance and Benefits Costs Facility Closure and Other Related Costs Other Asset Write-Offs Total Balance at June 1, 2018 $ 9,957 $ 6,184 $ 1,373 $ 17,514 Additions charged to expense 32,519 8,195 1,596 42,310 Cash payments charged against reserve (31,219 ) (3,019 ) - (34,238 ) Non-cash charges included above (e) (6,420 ) (3,503 ) (2,969 ) (12,892 ) Balance at May 31, 2019 $ 4,837 $ 7,857 $ - $ 12,694 (e) In connection with our 2020 MAP to Growth, during fiscal 2019, we incurred approximately $10.0 million and $2.1 million of inventory-related charges at our industrial and consumer segments, respectively. The inventory-related charges are partially offset by a favorable adjustment of approximately $0.2 million to the previous write-off at our consumer segment. All of the aforementioned inventory-related charges are recorded in cost of sales in our Consolidated Statements of Income. These inventory charges were the result of product line and SKU rationalization initiatives in connection with our overall plan of restructuring. In connection with the 2020 MAP to Growth plan, during fiscal 2018, we incurred approximately $36.5 million of inventory-related charges at our consumer segment and approximately $1.2 million at our industrial segment, all of which were recorded in cost of sales in our Consolidated Statements of Income. These inventory charges were the result of product line and SKU rationalization that was initiated in the fourth quarter of fiscal 2018 by new leadership within the consumer segment. Refer to Note A(10) for additional information. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
May 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | NOTE C — GOODWILL AND OTHER INTANGIBLE ASSETS The changes in the carrying amount of goodwill, by reportable segment, for the years ended May 31, 2019 and 2018, are as follows: Industrial Consumer Specialty (In thousands) Segment Segment Segment Total Balance as of June 1, 2017 $ 516,335 $ 453,600 $ 173,978 $ 1,143,913 Acquisitions 19,736 21,277 2,643 43,656 Translation adjustments 1,247 2,841 517 4,605 Balance as of May 31, 2018 537,318 477,718 177,138 1,192,174 Acquisitions 5,826 25,994 45,639 77,459 Translation adjustments (16,725 ) (4,325 ) (2,821 ) (23,871 ) Balance as of May 31, 2019 $ 526,419 $ 499,387 $ 219,956 $ 1,245,762 Total accumulated goodwill impairment losses were $156.3 million at May 31, 2019. Of the accumulated balance, $141.4 million was recorded during the fiscal year ended May 31, 2017 by our consumer segment, and $14.9 million was recorded during the fiscal year ended May 31, 2009 by our industrial reportable segment. There were no impairment losses recorded during fiscal 2019 or 2018. Other intangible assets consist of the following major classes: Gross Net Other Amortization Carrying Accumulated Intangible (In thousands) Period (In Years) Amount Amortization Assets As of May 31, 2019 Amortized intangible assets Formulae 9 to 33 $ 227,208 $ (150,091 ) $ 77,117 Customer-related intangibles 5 to 33 413,475 (172,238 ) 241,237 Trademarks/names 5 to 40 32,998 (16,867 ) 16,131 Other 1 to 33 36,709 (26,599 ) 10,110 Total Amortized Intangibles 710,390 (365,795 ) 344,595 Indefinite-lived intangible assets Trademarks/names 256,487 256,487 Total Other Intangible Assets $ 966,877 $ (365,795 ) $ 601,082 As of May 31, 2018 Amortized intangible assets Formulae 10 to 33 $ 221,812 $ (140,160 ) $ 81,652 Customer-related intangibles 5 to 33 369,687 (147,831 ) 221,856 Trademarks/names 5 to 40 36,671 (17,998 ) 18,673 Other 2 to 30 37,589 (24,946 ) 12,643 Total Amortized Intangibles 665,759 (330,935 ) 334,824 Indefinite-lived intangible assets Trademarks/names 249,448 249,448 Total Other Intangible Assets $ 915,207 $ (330,935 ) $ 584,272 The aggregate intangible asset amortization expense for the fiscal years ended May 31, 2019, 2018 and 2017 was $45.1 million, $43.2 million and $41.9 million, respectively. For the next five fiscal years, we estimate annual intangible asset amortization expense related to our existing intangible assets to approximate the following: 2020 — $43.0 million, 2021 — $39.9 million, 2022 — $38.6 million, 2023 — $34.9 million and 2024 — $31.5 million. The gross amount of other intangible asset accumulated impairment losses at May 31, 2017 totaled $53.6 million, of which $0.6 million was recorded during the fiscal year ended May 31, 2009 by our industrial reportable segment and $53.0 million was recorded during fiscal 2017 by our consumer reportable segment. For the year ended May 31, 2019, we recorded other intangible asset impairment losses of approximately $4.2 million, of which $2.0 million was recorded by our industrial reportable segment for impairment losses on trade names and approximately $2.2 million was recorded by our specialty reportable segment for impairment losses on customer-related intangibles. There were no impairment losses recorded during fiscal 2018. |
Marketable Securities
Marketable Securities | 12 Months Ended |
May 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Marketable Securities | NOTE D — MARKETABLE SECURITIES The following tables summarize marketable securities held at May 31, 2019 and 2018 by asset type: Available-For-Sale Securities (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Net Carrying Amount) May 31, 2019 Fixed maturity: U.S. treasury and other government $ 24,483 $ 372 $ (308 ) $ 24,547 Corporate bonds 422 43 (3 ) 462 Total available-for-sale securities $ 24,905 $ 415 $ (311 ) $ 25,009 Available-For-Sale Securities (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Net Carrying Amount) May 31, 2018 Equity securities: Mutual funds - foreign $ 46,123 $ 1,839 $ (1,197 ) $ 46,765 Mutual funds - domestic 99,833 727 (2,770 ) 97,790 Total equity securities 145,956 2,566 (3,967 ) 144,555 Fixed maturity: U.S. treasury and other government 23,562 39 (552 ) 23,049 Corporate bonds 432 43 (8 ) 467 Total fixed maturity securities 23,994 82 (560 ) 23,516 Total $ 169,950 $ 2,648 $ (4,527 ) $ 168,071 Marketable securities, included in other current and long-term assets totaling $8.6 million and $16.4 million at May 31, 2019, respectively, and included in other current and long-term assets totaling $97.4 million and $70.7 million at May 31, 2018, respectively, are composed of available-for-sale securities and are reported at fair value. We carry a portion of our marketable securities portfolio in long-term assets since they are generally held for the settlement of our general and product liability insurance claims processed through our wholly owned captive insurance subsidiaries. Marketable securities include available-for-sale securities and are reported at fair value. Realized gains and losses on sales of investments are recognized in net income on the specific identification basis. Changes in the fair values of securities that are considered temporary are recorded as unrealized gains and losses, net of applicable taxes, in accumulated other comprehensive income (loss) within stockholders’ equity. Other-than-temporary declines in market value from original cost are reflected in investment income, net in the period in which the unrealized losses are deemed other than temporary. In order to determine whether other-than-temporary declines in market value have occurred, the duration of the decline in value and our ability to hold the investment are considered in conjunction with an evaluation of the strength of the underlying collateral and the extent to which the investment’s amortized cost or cost, as appropriate, exceeds its related market value. During fiscal 2019, we adopted ASU 2016-01, “Recognition and Measurement of Financial Assets and Liabilities,” which requires all unrealized gains and losses on marketable equity securities to be recognized in earnings. Prior to adoption, equity securities were included in our available-for-sale portfolio and unrealized gains and losses were recognized through other comprehensive (loss) income until realized, at which point we recorded a gain or loss on sale. Unrealized gains and losses, as well as realized gains and losses, on sales of marketable securities are included in investment (income), net in the Consolidated Statements of Income. Refer to Note A(15), “Investment (Income), Net,” for further details. Summarized below are the available-for-sale securities we held at May 31, 2019 and 2018 that were in an unrealized loss position and that were included in accumulated other comprehensive income (loss), aggregated by the length of time the investments had been in that position: May 31, 2019 May 31, 2018 (In thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Total investments with unrealized losses $ 11,508 $ (311 ) $ 106,253 $ (4,527 ) Unrealized losses with a loss position for less than 12 months 806 (2 ) 68,376 (1,570 ) Unrealized losses with a loss position for more than 12 months 10,702 (309 ) 37,877 (2,957 ) We have reviewed all of the securities included in the table above and have concluded that we have the ability and intent to hold these investments until their cost can be recovered, based upon the severity and duration of the decline. Therefore, we did not recognize any other-than-temporary impairment losses on these investments. The unrealized losses generally relate to investments whose fair values at May 31, 2019 and 2018 were less than 15% below their original cost. From time to time, we may experience significant volatility in general economic and market conditions. If we were to experience unrealized losses that were to continue for longer periods of time, or rise to more significant levels of unrealized losses within our portfolio of investments in marketable securities in the future, we may recognize additional other-than-temporary impairment losses. Such potential losses could have a material impact on our results of operations in any given reporting period. As such, we continue to closely evaluate the status of our investments and our ability and intent to hold these investments. The net carrying values of available-for-sale debt securities at May 31, 2019, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties. (In thousands) Amortized Cost Fair Value Due: Less than one year $ 8,594 $ 8,563 One year through five years 10,886 10,836 Six years through ten years 4,468 4,582 After ten years 957 1,028 $ 24,905 $ 25,009 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
May 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE E — FAIR VALUE MEASUREMENTS Financial instruments recorded in the balance sheet include cash and cash equivalents, trade accounts receivable, marketable securities, notes and accounts payable, and debt. An allowance for anticipated uncollectible trade receivable amounts is established using a combination of specifically identified accounts to be reserved, and a reserve covering trends in collectibility. These estimates are based on an analysis of trends in collectibility and past experience, but are primarily made up of individual account balances identified as doubtful based on specific facts and conditions. Receivable losses are charged against the allowance when we confirm uncollectibility. 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 thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value at May 31, 2019 Available-for-sale debt securities: U.S. Treasury and other government $ - $ 24,547 $ - $ 24,547 Corporate bonds 462 462 Total available-for-sale debt securities - 25,009 - 25,009 Trading and other equity securities: Mutual funds - foreign 32,082 32,082 Mutual funds - domestic 67,739 67,739 Total trading and other equity securities - 99,821 - 99,821 Contingent consideration (21,551 ) (21,551 ) Total $ - $ 124,830 $ (21,551 ) $ 103,279 (In thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value at May 31, 2018 U.S. Treasury and other government $ - $ 23,049 $ - $ 23,049 Corporate bonds 467 467 Mutual funds - foreign 47,410 47,410 Mutual funds - domestic 107,017 107,017 Contingent consideration (17,998 ) (17,998 ) Total $ - $ 177,943 $ (17,998 ) $ 159,945 Our investments in available-for-sale securities, trading and other 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 fiscal 2019, we paid approximately $5.2 million for settlements of contingent consideration obligations relating to certain performance milestones that were established in prior periods and achieved during the current year and recorded an increase in the accrual for approximately $3.0 million and $5.8 million related to fair value adjustments and new acquisitions, respectively. During fiscal 2018, we paid approximately $3.9 million for settlements of contingent consideration obligations relating to certain performance milestones that were established in prior periods and achieved during fiscal 2018, and we increased our accrual by $3.4 million related to acquisitions completed during fiscal 2018 and $0.5 million related to fair value adjustments. These amounts are reported in payments of acquisition-related contingent consideration in the Consolidated Statements of Cash Flows. 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 May 31, 2019 and 2018, 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 May 31, 2019 and 2018 are as follows: At May 31, 2019 (In thousands) Carrying Value Fair Value Cash and cash equivalents $ 223,168 $ 223,168 Marketable equity securities 87,525 87,525 Marketable debt securities 25,009 25,009 Long-term debt, including current portion 2,525,908 2,526,817 At May 31, 2018 (In thousands) Carrying Value Fair Value Cash and cash equivalents $ 244,422 $ 244,422 Marketable equity securities 144,555 144,555 Marketable debt securities 23,516 23,516 Long-term debt, including current portion 2,174,144 2,215,458 |
Derivatives and Hedging
Derivatives and Hedging | 12 Months Ended |
May 31, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging | NOTE F — 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. Net Investment Hedge 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 will pay variable rate interest in Euros and receive 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 have a maturity date of November 2022. This effectively converts a portion of our U.S. dollar denominated fixed-rate debt to Euro denominated variable rate debt. The fair value hedge is recognized at fair value in our Consolidated Balance Sheets, while changes in the fair value of the hedge are 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. 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 accumulated other comprehensive income (“AOCI”) to offset the changes in the values of the net investments being hedged. Amounts released from AOCI and reclassified into interest expense did not have a material impact on our Consolidated Financial Statements for any period presented. Derivatives Designated as Cash Flow Hedging Instruments We have designated certain forward contracts as hedging instruments pursuant to ASC No. 815 (“ASC 815”), “Derivatives and Hedging.” Changes in the fair value of these highly effective hedges are recorded as a component of AOCI. During the period in which a forecasted transaction affects earnings, amounts previously recorded as a component of AOCI are reclassified into earnings as a component of cost of sales. Amounts released from AOCI and reclassified into earnings did not have a material impact on our Consolidated Financial Statements for any period presented. As of May 31, 2019, there are no contracts held to sell international currencies. As of May 31, 2018, the notional amount of the forward contracts held to sell international currencies was $8.7 million. Derivatives Not Designated as Hedges At May 31, 2019 and 2018, we held one and four foreign currency forward contracts, respectively, which were 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 these derivatives are recognized in earnings as a component of other (income) expense. Amounts recognized in earnings did not have a material impact on our Consolidated Financial Statements for any period presented. As of May 31, 2019 and May 31, 2018, the notional amounts of the forward contracts held to purchase foreign currencies was $38.7 million and $147.4 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 May 31, 2019 and May 31, 2018 are as follows: (In thousands) Fair Value Derivatives Designated as Hedging Instruments Balance Sheet Location May 31, 2019 May 31, 2018 Assets: Foreign Currency Exchange (Cash Flow) Other Current Assets - 133 Interest Rate Swap (Fair Value) Other Current Assets 513 - Cross Currency Swap (Net Investment) Other Current Assets 2,482 2,580 Cross Currency Swap (Net Investment) Other Assets (Long-Term) 6,163 1,986 Liabilities: Interest Rate Swap (Fair Value) Other Accrued Liabilities 230 441 Cross Currency Swap (Net Investment) Other Long-Term Liabilities 4,276 5,293 Interest Rate Swap (Fair Value) Other Long-Term Liabilities - 2,634 (In thousands) Fair Value Derivatives Not Designated as Hedging Instruments Balance Sheet Location May 31, 2019 May 31, 2018 Assets: Foreign Currency Exchange Other Current Assets 51 7 Liabilities: Foreign Currency Exchange Other Accrued Liabilities - 2,985 |
Borrowings
Borrowings | 12 Months Ended |
May 31, 2019 | |
Debt Disclosure [Abstract] | |
Borrowings | NOTE G — BORROWINGS A description of long-term debt follows: May 31, 2019 2018 (In thousands) Revolving credit facility with a syndicate of banks, through October 31, 2023(1) $ 336,442 $ 235,774 Accounts receivable securitization program with two banks, through May 8, 2020 (2) 99,887 - Unsecured 6.125% senior notes due October 15, 2019(3) 450,454 451,658 Unsecured $205,000 face value at maturity 2.25% senior convertible notes due December 15, 2020 - 196,865 Unsecured 3.45% senior notes due November 15, 2022 299,257 295,596 Unsecured 3.75% notes due March 15, 2027 (4) 396,586 396,110 Unsecured 4.55% senior notes due March 1, 2029(5) 346,006 - Unsecured 5.25% notes due June 1, 2045(6) 298,589 298,514 Unsecured 4.25% notes due January 15, 2048 (7) 296,467 296,344 Other obligations, including capital leases and unsecured notes payable at various rates of interest due in installments through 2021 2,220 3,283 2,525,908 2,174,144 Less: current portion 552,446 3,501 Total Long-Term Debt, Less Current Maturities $ 1,973,462 $ 2,170,643 (1) Interest at May 31, 2019 was tied to LIBOR and averaged 3.6805% for USD denominated debt ($14,268), 2.69% for AUD denominated debt ($34,558), 3.23% on CAD denominated debt ($131,738) and 1.25% on EUR denominated debt ($159,745). Interest was tied to AUD at May 31, 2018, and averaged 2.925% for AUD denominated debt ($23,309) and 0.675% on EUR denominated debt ($213,708). At May 31, 2019 and 2018, the revolving credit facility is adjusted for debt issuance costs, net of amortization, for approximately $3.9 million and $1.2 million, respectively. ( 2 ) At May 31, 2019, the accounts receivable securitization program is adjusted for debt issuance cost, net of amortization, for approximately $0.1 million. (3) Includes the combination of the October 2009 initial issuance of $300.0 million aggregate principal amount and the May 2011 issuance of an additional $150.0 million aggregate principal amount of these notes. The effective interest rate on the notes issued in October 2009, including the amortization of the discount, is 6.139%. The additional $150.0 million aggregate principal amount of the notes due 2019 issued in May 2011 is adjusted for the unamortized premium received at issuance, which approximated $0.7 million and $2.3 million at May 31, 2019 and 2018, respectively. The premium effectively increased the proceeds from the financing. The effective interest rate on the $150.0 million notes issued in May 2011 is 4.934%. At May 31, 2019 and 2018, the notes are adjusted for debt issuance costs, net of amortization, for approximately $0.2 million and $0.6 million, respectively. ( 4 ) The $400.0 million face amount of the notes due 2027 is adjusted for the amortization of the original issue discount, which approximated $0.4 million and $0.5 million at May 31, 2019 and 2018, respectively. The original issue discount effectively reduced the ultimate proceeds from the financing. The effective interest rate on the notes, including the amortization of the discount, is 3.767%. At May 31, 2019 and 2018, the notes are adjusted for debt issuance costs, net of amortization, for approximately $3.0 million and $3.4 million, respectively. ( 5 ) The $350.0 million aggregate principal amount of the notes due 2029 is adjusted for the amortization of the original issue discount, which approximated $0.5 million at May 31, 2019. The original issue discount effectively reduced the ultimate proceeds from the financing. The effective interest rate on the notes, including the amortization of the discount, was 4.568%. At May 31, 2019, the notes were adjusted for debt issuance costs, net of amortization, for approximately $3.5 million. ( 6 ) The $250.0 million face amount of the notes due 2045 is adjusted for the amortization of the original issue discount, which approximated $1.4 million at May 31, 2019 and 2018. The original issue discount effectively reduced the ultimate proceeds from the financing. The effective interest rate on the notes, including the amortization of the discount, is 5.29%. In March 2017, as a further issuance of the 5.25% notes due 2045, we closed an offering of $50.0 million aggregate principal, which is adjusted for the unamortized premium received at issuance, which approximated $3.0 million at May 31, 2019 and 2018. The premium effectively increased the proceeds from the financing. The effective interest rate on the $50.0 million notes issued March 2017 is 4.839%. At May 31, 2019 and 2018, the notes are adjusted for debt issuance costs, net of amortization, for approximately $3.0 million and $3.1 million, respectively. ( 7 ) The $300.0 million face amount of the notes due 2048 is adjusted for the debt issuance cost, net of amortization, which approximated $3.5 million and $3.6 million at May 31, 2019 and 2018, respectively. The effective interest rate on the notes is 4.25%. The aggregate maturities of long-term debt for the five years subsequent to May 31, 2019 are as follows: 2020 — $552.4 million; 2021 — $0.1 million; 2022 — $0.1 million; 2023 — $299.3 million; 2024 — $336.4 million and thereafter $1,337.6 million. Additionally, at May 31, 2019, we had unused lines of credit totaling $1,059.1 million. Our available liquidity, including our cash and cash equivalents and amounts available under our committed credit facilities, stood at $1.28 billion at May 31, 2019. Our debt-to-capital ratio was 64.2% at May 31, 2019, compared with 57.1% at May 31, 2018. 4.550% Notes due 2029 On February 27, 2019, we closed an offering for $350.0 million aggregate principal amount of 4.550% Notes due 2029 (the “2029 Notes”). The proceeds from the 2029 Notes were used to repay a portion of the outstanding borrowings under our revolving credit facility and for general corporate purposes. Interest on the 2029 Notes accrues from February 27, 2019 and is payable semiannually in arrears on March 1 st st 4.250% Notes due 2048 On December 20 , 2017, Interest on the 2048 Notes accrues from December 20, 2017 and is payable semiannually in arrears on January 15 th th 5.250% Notes due 2045 and 3.750% Notes due 2027 On March 2, 2017, we issued $50.0 million aggregate principal amount of 5.250% Notes due 2045 (the “2045 Notes”) and $400.0 million aggregate principal amount of 3.750% Notes due 2027 (the “2027 Notes”). The 2045 Notes are a further issuance of the $250 million aggregate principal amount of 5.250% Notes due 2045 initially issued by us on May 29, 2015. Interest on the 2045 Notes is payable semiannually in arrears on June 1st and December 1st of each year at a rate of 5.250% per year. The 2045 Notes mature on June 1, 2045. Interest on the 2027 Notes is payable semiannually in arrears on March 15th and September 15th of each year, at a rate of 3.750% per year. The 2027 Notes mature on March 15, 2027. Revolving Credit Agreement During the quarter ended November 30, 2018, we replaced our previous $800.0 million revolving credit agreement, which was set to expire on December 5, 2019, with a $1.3 billion unsecured syndicated revolving credit facility (the “Revolving Credit Facility”), which expires on October 31, 2023. The Revolving Credit Facility includes sublimits for the issuance of swingline loans, which are comparatively short-term loans used for working capital purposes and letters of credit. The aggregate maximum principal amount of the commitments under the Revolving Credit Facility may be expanded upon our request, subject to certain conditions, up to $1.5 billion. The Revolving Credit Facility is available to refinance existing indebtedness, to finance working capital and capital expenditures, and for general corporate purposes. Accordingly, during October 2019, we intend to utilize available funds from our Revolving Credit Facility to repay our unsecured 6.125% senior notes, which mature on October 15, 2019. At May 31, 2019, the outstanding balance on our 6.125% senior notes, including all amortizable cost, approximated $450.5 million, which is included in the current portion of long-term debt on our consolidated balance sheets. The Revolving Credit Facility requires us to comply with various customary affirmative and negative covenants, including a leverage covenant and interest coverage ratio, which are calculated in accordance with the terms as defined by the credit agreement. Under the terms of the leverage covenant, we may not permit our leverage ratio for total indebtedness to consolidated EBITDA for the four most recent fiscal quarters to exceed 3.75 to 1.0. During certain periods and per the terms of the Revolving Credit Facility, this ratio may be increased to 4.25 to 1.0 in the event of an acquisition for which the aggregate consideration is $100.0 million or greater. As of May 31, 2019, we were in compliance with all financial covenants contained in our Revolving Credit Facility, including the leverage and interest coverage ratio covenants. At that date, our leverage ratio was 3.15 to 1, while our interest coverage ratio was 7.46 to 1. Our available liquidity under our Revolving Credit Facility stood at $959.1 million at May 31, 2019. Our access to funds under our Revolving Credit Facility is dependent on the ability of the financial institutions that are parties to the Revolving Credit Facility to meet their funding commitments. Those financial institutions may not be able to meet their funding commitments if they experience shortages of capital and liquidity or if they experience excessive volumes of borrowing requests within a short period of time. Moreover, the obligations of the financial institutions under our Revolving Credit Facility are several and not joint and, as a result, a funding default by one or more institutions does not need to be made up by the others. Accounts Receivable Securitization Program On May 9, 2014, we entered into a $200.0 million accounts receivable securitization facility (the “AR Program”). The AR Program, which expires on May 8, 2020, was entered into pursuant to (1) a second amended and restated receivables sales agreement, dated as of May 9, 2014, and subsequently amended on August 29, 2014; November 3, 2015; December 31, 2016; and March 31, 2017 (the “Sale Agreement”), among certain of our subsidiaries (the “Originators”), and RPM Funding Corporation, a special purpose entity (the “SPE”) whose voting interests are wholly owned by us, and (2) an amended and restated receivables purchase agreement, dated as of May 9, 2014 and subsequently amended on February 25, 2015 and May 2, 2017 (the “Purchase Agreement”), among the SPE, certain purchasers from time to time party thereto (the “Purchasers”), and PNC Bank, National Association as administrative agent. Under the Sale Agreement, the Originators may, during the term thereof, sell specified accounts receivable to the SPE, which may in turn, pursuant to the Purchase Agreement, transfer an undivided interest in such accounts receivable to the Purchasers. Once transferred to the SPE, such receivables are owned in their entirety by the SPE and are not available to satisfy claims of our creditors or creditors of the originating subsidiaries until the obligations owing to the participating banks have been paid in full. We indirectly hold a 100% economic interest in the SPE and will, along with our subsidiaries, receive the economic benefit of the AR Program. The transactions contemplated by the AR Program do not constitute a form of off-balance sheet financing and will be fully reflected in our financial statements. The maximum availability under the AR Program is $200.0 million. Availability is further subject to changes in the credit ratings of our customers, customer concentration levels or certain characteristics of the accounts receivable being transferred and, therefore, at certain times, we may not be able to fully access the $200.0 million of funding available under the AR Program. As of May 31, 2019, there was $100.0 million outstanding balance under the AR Program, which compares with the maximum availability on that date of $200.0 million. The interest rate under the Purchase Agreement is based on the Alternate Base Rate, LIBOR Market Index Rate, one-month LIBOR or LIBOR for a specified tranche period, as selected by us, plus in each case, a margin of 0.8%. In addition, as set forth in an Amended and Restated Fee Letter, dated May 2, 2017 (the “Fee Letter”), the SPE is obligated to pay a monthly unused commitment fee to the Purchasers based on the daily amount of unused commitments under the Agreement, which ranges from 0.30% to 0.50% based on usage. The AR Program contains various customary affirmative and negative covenants and also contains customary default and termination provisions. Our failure to comply with the covenants described above and other covenants contained in the Revolving Credit Facility could result in an event of default under that agreement, entitling the lenders to, among other things, declare the entire amount outstanding under the Revolving Credit Facility to be due and payable. The instruments governing our other outstanding indebtedness generally include cross-default provisions that provide that, under certain circumstances, an event of default that results in acceleration of our indebtedness under the Revolving Credit Facility will entitle the holders of such other indebtedness to declare amounts outstanding immediately due and payable. 2.25% Convertible Senior Notes due 2020 On December 9, 2013, we issued $205 million of 2.25% Convertible Senior Notes due 2020 (the “Convertible Notes”). We paid interest on the Convertible Notes semi-annually on June 15 th th We completed the redemption of all $205.0 million aggregate principal amount of our outstanding Convertible Notes on November 27, 2018 (the “Redemption Date”). The redemption price for the Convertible Notes was equal to 100% of the principal amount of the Convertible Notes to be redeemed, plus accrued and unpaid interest until, but excluding, the Redemption Date. As a result of the issuance of the notice of redemption, the Convertible Notes became convertible at any time prior to the close of business on November 26, 2018. The conversion rate was 19.221062 shares of RPM common stock per $1,000 original principal amount of the Convertible Notes, which is equivalent to a conversion price of approximately $52.12 per share (subject to adjustment in accordance with the terms of the Indenture). In accordance with the provisions of the indenture for the Convertible Notes, we elected to settle the Convertible Notes surrendered for conversion through a combination settlement of cash and shares of RPM common stock. In settlement of those conversions, we paid an aggregate of approximately $204.6 million in cash, including cash in lieu of fractional shares, and issued 598,601 shares of RPM common stock in the aggregate. |
Income Taxes
Income Taxes | 12 Months Ended |
May 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE H — INCOME TAXES On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (“Act”). The income tax effects of changes in tax laws are recognized in the period when enacted. The Act provides for numerous significant tax law changes and modifications with varying effective dates. Generally, the more significant provisions of the Act that impacted us for the year ended May 31, 2018 include the reduction in the U.S. corporate income tax rate from 35% to 21%, the creation of a territorial tax system (with a one-time mandatory tax on previously unremitted foreign earnings) and allowing for immediate capital expensing of certain qualified property. The corporate tax rate reduction was effective for RPM as of January 1, 2018 and, accordingly, reduced our fiscal year 2018 federal statutory tax rate to a blended rate of approximately 29.2%. The significant provisions of the Act that impact us for fiscal 2019 include the full federal statutory rate reduction to 21% and the repeal of the domestic production activities deduction. Also effective for fiscal 2019 are provisions of the Act that subject us to current U.S. tax on global intangible low-taxed income (“GILTI”) earned by certain foreign subsidiaries and allows a benefit for foreign-derived intangible income (“FDII”). The estimated net tax impact related to GILTI and FDII for the year ended May 31, 2019 is not material to our consolidated financial results. Subsequent to the enactment of the Act, the SEC issued Staff Accounting Bulletin No. 118 (“SAB 118”), which provides guidance on accounting for the tax effects of the Act. SAB 118 provides a measurement period that does not extend beyond one year from the Act’s enactment date for companies to complete the applicable accounting under ASC 740. In accordance with SAB 118 and based on the information available as of May 31, 2018, we recorded a net provisional income tax expense of $7.3 million in accordance with the applicable provisions of the Act During our fiscal 2019 third quarter, we completed our assessment of the accounting for the impact of Act, which included analysis based on related legislative updates that include final and proposed regulations, and technical interpretations of the Act. As a result, and consistent with SAB 118, during the three months ended February 28, 2019, we recorded an income tax benefit of $8.1 million, which was comprised of a $6.3 million benefit for the re-measurement of certain U.S. deferred tax assets and liabilities and a $1.8 million benefit resulting from the reduction of the transition tax on unremitted earnings from foreign subsidiaries. No other SAB 118 adjustments for the impact of the Act were recorded this fiscal year. For the year ended May 31, 2019, the provision for income taxes is calculated in accordance with ASC 740, which requires the recognition of deferred income taxes using the asset and liability method. Income before income taxes as shown in the Consolidated Statements of Income is summarized below for the periods indicated. Year Ended May 31, 2019 2018 2017 (In thousands) United States $ 215,201 $ 228,976 $ 133,356 Foreign 124,644 188,072 110,977 Income Before Income Taxes $ 339,845 $ 417,048 $ 244,333 Provision (benefit) for income taxes consists of the following for the periods indicated: Year Ended May 31, 2019 2018 2017 (In thousands) Current: U.S. federal $ 20,388 $ 27,206 $ 3,024 State and local 8,623 8,617 5,115 Foreign 37,713 52,658 27,474 Total Current 66,724 88,481 35,613 Deferred: U.S. federal 15,298 (8,054 ) 15,553 State and local 1,414 4,832 1,928 Foreign (11,278 ) (7,468 ) 6,568 Total Deferred 5,434 (10,690 ) 24,049 Provision for Income Taxes $ 72,158 $ 77,791 $ 59,662 The significant components of deferred income tax assets and liabilities as of May 31, 2019 and 2018 were as follows: 2019 2018 (In thousands) Deferred income tax assets related to: Inventories $ 8,970 $ 12,491 Allowance for losses 7,524 5,349 Accrued compensation and benefits 14,364 14,812 Accrued other expenses 17,036 14,427 Other long-term liabilities 15,947 15,921 Credit and net operating and capital loss carryforwards 63,395 52,687 Net unrealized loss on securities 12,391 10,236 Pension and other postretirement benefits 42,991 39,863 Total Deferred Income Tax Assets 182,618 165,786 Less: valuation allowances (55,274 ) (51,540 ) Net Deferred Income Tax Assets 127,344 114,246 Deferred income tax (liabilities) related to: Depreciation (72,387 ) (62,202 ) Amortization of intangibles (116,097 ) (114,284 ) Unremitted foreign earnings (18,795 ) (19,886 ) Total Deferred Income Tax (Liabilities) (207,279 ) (196,372 ) Deferred Income Tax Assets (Liabilities), Net $ (79,935 ) $ (82,126 ) At May 31, 2019, we had U.S. capital loss carryforwards of approximately $47.0 million, of which $43.4 million will expire if not used by the end of our fiscal year 2022, with the balance expiring if unused by the end of our fiscal year 2024. Also, as of May 31, 2019, we had foreign tax credit carryforwards of $8.3 million, which expire in fiscal 2029. Additionally, as of May 31, 2019, we had approximately $2.4 million of tax benefits associated with state net operating loss carryforwards and state tax credit carryforwards of $2.4 million, both of which expire at various dates beginning in 2020. Also, as of May 31, 2019, we had foreign net operating loss carryforwards of approximately $182.8 million, of which approximately $27.1 million will expire at various dates beginning in 2020 and approximately $155.7 million that have an indefinite carryforward period. Additionally, as of May 31, 2019, we had foreign capital loss carryforwards of approximately $29.6 million that can be carried forward indefinitely. When evaluating the realizability of deferred income tax assets, we consider, among other items, whether a jurisdiction has experienced cumulative pretax losses and whether a jurisdiction will generate the appropriate character of income to recognize a deferred income tax asset. More specifically, if a jurisdiction experiences cumulative pretax losses for a period of three years, including the current fiscal year, or if a jurisdiction does not have sufficient income of the appropriate character in the relevant carryback or projected carryforward periods, we generally conclude that it is more likely than not that the respective deferred tax asset will not be realized unless factors such as expected operational changes, availability of prudent and feasible tax planning strategies, reversal of taxable temporary differences or other information exists that would lead us to conclude otherwise. If, after we have evaluated these factors, the deferred income tax assets are not expected to be realized within the carryforward or carryback periods allowed for that jurisdiction, we would conclude that a valuation allowance is required. Total valuation allowances of approximately $55.3 million and $51.5 million have been recorded as of May 31, 2019 and 2018, respectively. These recorded valuation allowances relate to foreign and U.S. capital losses, certain foreign net operating losses, net foreign deferred tax assets and foreign tax credit carryforwards. The year-over-year increase in valuation allowances are primarily attributable to unrealized and realized domestic capital losses, foreign tax credit carryforwards and certain foreign net operating loss carryforwards. Those increases were partially offset, primarily, as a result of translational foreign currency changes. The following table reconciles income tax expense (benefit) computed by applying the U.S. statutory federal income tax rate against income (loss) before income taxes to the provision (benefit) for income taxes: Year Ended May 31, 2019 2018 2017 (In thousands, except percentages) Income tax expense at the U.S. statutory federal income tax rate $ 71,367 $ 121,812 $ 85,517 Impact of foreign operations (1,571 ) (16,276 ) (20,156 ) State and local income taxes, net 7,224 9,520 4,734 Impact of global intangible low-taxed income 5,772 Domestic manufacturing deduction - (4,839 ) (2,537 ) Nondeductible business expense 2,259 2,473 2,394 Valuation allowance 7,021 (5,235 ) 933 Deferred tax liability for unremitted foreign earnings - (77,970 ) (621 ) Changes in unrecognized tax benefits (8,480 ) Other 1,195 737 1,476 Equity-based compensation (4,496 ) (4,652 ) (12,078 ) Transition tax liability (1,868 ) 67,899 - Remeasurement of U.S. deferred income taxes (6,265 ) (15,678 ) - Provision for Income Tax Expense $ 72,158 $ 77,791 $ 59,662 Effective Income Tax Rate 21.2 % 18.7 % 24.4 % Uncertain income tax positions are accounted for in accordance with ASC 740. The following table summarizes the activity related to unrecognized tax benefits: (In millions) 2019 2018 2017 Balance at June 1 $ 14.1 $ 13.2 $ 13.7 Additions based on tax positions related to current year 0.1 5.1 0.2 Additions for tax positions of prior years 2.0 - 2.9 Reductions for tax positions of prior years (7.9 ) (4.5 ) (3.2 ) Foreign currency translation (0.2 ) 0.3 (0.4 ) Balance at May 31 $ 8.1 $ 14.1 $ 13.2 The total amount of unrecognized tax benefits that would impact the effective tax rate, if recognized, was $7.7 million at May 31, 2019, $13.6 million at May 31, 2018 and $4.6 million at May 31, 2017. We recognize interest and penalties related to unrecognized tax benefits in income tax expense. At May 31, 2019, 2018 and 2017, the accrual for interest and penalties was $3.0 million, $2.8 million and $3.1 million, respectively. Unrecognized tax benefits, including interest and penalties, have been classified as other long-term liabilities unless expected to be paid in one year. We file income tax returns in the U.S. and in various state, local and foreign jurisdictions. The Internal Revenue Service has substantially completed an examination of our 2015 and 2016 federal income tax returns and the statutory audit period has expired for all years through 2013. The 2015 and 2016 examinations have thus far resulted in an inconsequential reduction to our 2015 federal income tax liability and no changes to our 2016 federal income tax liability, and no further proposed adjustments are expected. Further, with limited exceptions, we are generally subject to state and local or non-U.S. income tax examinations by tax authorities for the fiscal years 2012 through 2018. We are currently under examination, or have been notified of an upcoming tax examination, for various non-U.S. and domestic state and local jurisdictions. Although it is possible that certain tax examinations could be resolved during the next 12 months, the timing and outcomes are uncertain. Our deferred tax liability for unremitted foreign earnings was adjusted to $19.9 million as of May 31, 2018. The $19.9 million deferred tax liability represented our estimate of the foreign tax cost associated with the remittance of $549.8 million of foreign earnings that were not considered to be permanently reinvested. As of May 31, 2019, the amount of these earnings has been reduced to approximately $413.3 million and the related deferred tax liability, which represents the estimated tax cost to repatriate these earnings, was adjusted to $18.8 million to reflect the impact of foreign exchange. The reduction to the earnings amounts no longer permanently reinvested is due principally to distributions made during this fiscal year, which were not subject to foreign withholding taxes. We have not provided for U.S. income taxes or foreign withholding taxes on the remaining $1.1 billion of foreign unremitted earnings because such earnings have been retained and reinvested by the foreign subsidiaries as of May 31, 2019. Accordingly, no provision has been made for U.S. income taxes or foreign withholding taxes, which may become payable if the remaining unremitted earnings of foreign subsidiaries were distributed to the U.S. Due to the uncertainties and complexities involved in the various options for repatriation of foreign earnings, it is not practical to calculate the deferred taxes associated with the remaining foreign earnings. |
Common Stock
Common Stock | 12 Months Ended |
May 31, 2019 | |
Equity [Abstract] | |
Common Stock | NOTE I — COMMON STOCK 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 is to return $1.0 billion in capital to stockholders by May 31, 2021 through share repurchases. 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 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 fiscal year ended May 31, 2019, we repurchased 3,286,907 shares of our common stock at a cost of approximately $200.2 million, or an average cost of $60.92 per share, under this program. During the fiscal years ended May 31, 2018 and 2017, we did not repurchase any shares of our common stock under this program. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
May 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | NOTE J — STOCK-BASED COMPENSATION Stock-based compensation represents the cost related to stock-based awards granted to our employees and directors; these awards include restricted stock, restricted stock units, performance stocks, performance stock units and SARs. We grant stock-based incentive awards to our employees and/or our directors under various share-based compensation plans. Plans that are active or provide for stock option grants or share-based payment awards include the Amended and Restated 2004 Omnibus Equity and Incentive Plan (the “2004 Omnibus Plan”) and the 2014 Omnibus Equity and Incentive Plan (the “2014 Omnibus Plan”), which includes provisions for grants of restricted stock, restricted stock units, performance stock, performance stock units and SARs. Other plans, which provide for restricted stock grants only, include the 2003 Restricted Stock Plan for Directors (the “2003 Plan”) and the 2007 Restricted Stock Plan (the “2007 Plan”). We measure stock-based compensation cost at the date of grant, based on the estimated fair value of the award. We recognize the cost as expense on a straight-line basis (net of estimated forfeitures) over the related vesting period. The following table represents total stock-based compensation expense included in our Consolidated Statements of Income: Year Ended May 31, 2019 2018 2017 (In thousands) Stock-based compensation expense, included in SG&A $ 31,154 $ 25,440 $ 32,541 Stock-based compensation expense, included in restructuring expense 4,283 2,136 - Total stock-based compensation cost 35,437 27,576 32,541 Income tax (benefit) (6,937 ) (7,178 ) (10,159 ) Total stock-based compensation cost, net of tax $ 28,500 $ 20,398 $ 22,382 SARs SARs are awards that allow our employees to receive shares of our common stock at a fixed price. We grant SARs at an exercise price equal to the stock price on the date of the grant. The fair value of SARs granted is estimated as of the date of grant using a Black-Scholes option-pricing model. The Black-Scholes option-pricing model was developed for use in estimating the fair value of traded options that have no vesting restrictions and are fully transferable. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The expected life of options granted is derived from the input of the option-pricing model and represents the period of time that options granted are expected to be outstanding. Expected volatility rates are based on historical volatility of shares of our common stock. The following is a summary of our weighted-average assumptions related to SARs grants made during the last three fiscal years: Year Ended May 31, 2019 2018 2017 Risk-free interest rate 2.9 % 2.2 % 1.5 % Expected life of option 6.5 yrs 7.0 yrs 7.0 yrs Expected dividend yield 2.1 % 2.2 % 2.2 % Expected volatility rate 25.2 % 26.2 % 25.7 % The 2014 Omnibus Plan was approved by our stockholders on October 9, 2014. The 2014 Omnibus Plan provides us with the flexibility to grant a wide variety of stock and stock-based awards, as well as dollar-denominated performance-based awards, and is intended to be the primary stock-based award program for covered employees. This plan replaces the 2004 Omnibus Plan, which expired under its own terms on October 7, 2014. A wide variety of stock and stock-based awards, as well as dollar-denominated performance-based awards, may be granted under these plans. SARs are issued at fair value at the date of grant, have up to ten-year terms and have graded-vesting terms over four years. Compensation cost for these awards is recognized on a straight-line basis over the related vesting period. Currently all SARs outstanding are to be settled with stock. As of May 31, 2019, there were 3,097,500 SARs outstanding. The following table summarizes option and share-based payment activity (including SARs) under these plans during the fiscal year ended May 31, 2019: 2019 Share-Based Payments Weighted Average Exercise Price Number of Shares Under Option (Shares in thousands) Balance at June 1, 2018 $ 43.36 3,207 Options granted 60.01 480 Options exercised 40.74 (590 ) Balance at May 31, 2019 46.44 3,097 Exercisable at May 31, 2019 $ 41.87 2,085 SARs 2019 2018 2017 (In millions, except per share amounts) Weighted-average grant-date fair value per SAR $ 14.08 $ 12.90 $ 10.90 Intrinsic value of options exercised $ 9.29 $ 11.10 $ 26.50 Tax benefit from options exercised $ 3.21 $ 3.40 $ 9.70 Fair value of SARS vested $ 9.30 $ 6.50 $ 4.60 At May 31, 2019, the aggregate intrinsic value and weighted-average remaining contractual life of options outstanding was $25.9 million and 5.66 years, respectively, while the aggregate intrinsic value and weighted-average remaining contractual life of options exercisable was $24.9 million and 4.4 years, respectively. At May 31, 2019, the total unamortized stock-based compensation expense related to SARs that were previously granted was $8.6 million, which is expected to be recognized over 2.52 years. We anticipate that approximately 3.1 million shares at a weighted-average exercise price of $46.38 and a weighted-average remaining contractual term of 5.6 years will ultimately vest under these plans. Restricted Stock Plans We also grant stock-based awards, which may be made in the form of restricted stock, restricted stock units, performance stock and performance stock units. These awards are granted to eligible employees or directors, and entitle the holder to shares of our common stock as the award vests. The fair value of the awards is determined and fixed based on the stock price at the date of grant. A description of our restricted stock plans follows. Under the 2004 Omnibus Plan, a total of 12,000,000 shares of our common stock were subject to awards. Of the 12,000,000 shares of common stock issuable under the 2004 Omnibus Plan, up to 6,000,000 shares were subject to “full-value” awards such as restricted stock, restricted stock unit, performance stock and performance stock unit awards. Under the 2014 Omnibus Plan, a total of 6,000,000 shares of our common stock may be subject to awards. Of those issuable shares, up to 3,000,000 shares of common stock may be subject to “full-value” awards similar to those issued under the 2014 Omnibus Plan. The following table summarizes the share-based performance-earned restricted stock (“PERS”) and performance stock units (“PSUs”) activity during the fiscal year ended May 31, 2019: Weighted-Average Grant-Date Fair Value 2019 (Shares in thousands) Balance at June 1, 2018 $ 48.97 1,047 Shares granted 60.36 440 Shares forfeited 57.99 (34 ) Shares vested 48.65 (624 ) Balance at May 31, 2019 $ 54.90 829 The weighted-average grant-date fair value was $60.36, $52.26 and $50.84 for the fiscal years ended May 31, 2019, 2018 and 2017, respectively. The restricted stock and performance stock cliff vest after three years. Nonvested restricted shares of common stock under the 2004 and 2014 Omnibus Plans are eligible for dividend payments, while performance stock units are not eligible for dividend payments. At May 31, 2019, remaining unamortized deferred compensation expense for performance-earned restricted stock totaled $11.7 million, all of which is associated with the 2014 Plan. The remaining amount is being amortized over the applicable vesting period for each participant. On July 31, 2015, our Compensation Committee approved contingent awards of PCRS, (the “2015 PCRS”), for certain executives. During July 2015, 329,000 shares were granted at a weighted-average grant-date price of $46.87. The awards were contingent upon the level of attainment of performance goals for the three-year performance period from June 1, 2015 ending May 31, 2018. Vesting of 67% of the 2015 PCRS related to an increase in EBIT for the period, and vesting of the remaining 33% related to an increase in EBIT margin for the period. Compensation cost for these awards was recognized on a straight-line basis over the related performance period, with consideration given to the probability of attaining the performance goals. Although there were 301,000 2015 PCRS shares outstanding as of May 31, 2018, the contingent performance goals were not met and, therefore, these awards did not vest and were cancelled in fiscal 2019. On October 3, 2018, our Compensation Committee granted in the aggregate 192,000 Performance Stock Units (the “2018 PSUs”) to certain executives at a weighted-average grant-date price of $60.50 per PSU. The awards are contingent upon the level of attainment of performance goals for the three-year performance period from June 1, 2018 ending May 31, 2021. Vesting of 50% of the 2018 PSUs relates to compounded annualized growth rates in adjusted revenue for the period, and the vesting of the remaining 50% relates to an increase in EBIT margin, measured at the end of the three-year performance period. The number of PSUs that may vest with respect to the achievement of the performance goals may range from 0% to 200% of the PSUs granted under this program. Compensation cost for these awards has been recognized on a straight-line basis over the related performance period, with consideration given to the probability of attaining the performance goals. As of May 31, 2019, there were 166,000 2018 PSUs outstanding and $5.6 million unamortized stock-based compensation, which is expected to be recognized over a weighted average period of 2.0 years. The 2003 Plan was approved on October 10, 2003 by our stockholders, and was established primarily for the purpose of recruiting and retaining directors, and to align the interests of directors with the interests of our stockholders. Only directors who are not our employees are eligible to participate. Under the 2003 Plan, up to 500,000 shares of our common stock may be awarded, with awards cliff vesting over a three-year period. The following table summarizes the share-based activity under the 2003 Plan during fiscal 2019: Weighted-Average Grant-Date Fair Value 2019 (Shares in thousands) Balance at June 1, 2018 $ 48.56 67 Shares granted to directors 60.50 23 Shares vested 47.21 (35 ) Balance at May 31, 2019 $ 54.56 55 The weighted-average grant-date fair value was $60.50, $51.63 and $50.61 for the fiscal years ended May 31, 2019, 2018 and 2017, respectively. Unamortized deferred compensation expense relating to restricted stock grants for directors of $1.4 million at May 31, 2019, is being amortized over the applicable remaining vesting period for each director. Nonvested restricted shares of common stock under the 2003 Plan are eligible for dividend payments. As of May 31, 2019, there were 30,300 shares available for future grant. During fiscal 2019, a total of 38,946 shares were awarded under the 2014 Omnibus Plan to certain employees as supplemental retirement benefits, generally subject to forfeiture. The shares vest upon the latter of attainment of age 55 and the fifth anniversary of the May 31 st Weighted-Average Grant-Date Fair Value 2019 (Shares in thousands) Balance at June 1, 2018 $ 26.42 702 Shares granted 60.01 39 Shares forfeited - - Shares exercised 26.12 (309 ) Balance at May 31, 2019 $ 31.73 432 The weighted-average grant-date fair value was $60.01, $55.19 and $50.99 for the fiscal years ended May 31, 2019, 2018 and 2017, respectively. As of May 31, 2019, no shares remain available for future grant under the 2007 Plan, and future issuances of shares as supplemental retirement benefits are made under the 2014 Omnibus Plan. At May 31, 2019, unamortized stock-based compensation expense of $1.2 million, $0.07 million and $2.1 million relating to the 2007 Plan, the Restricted Stock Units and the 2014 Omnibus Plan, respectively, are being amortized over the applicable vesting period associated with each participant. The following table summarizes the activity for all nonvested restricted shares during the year ended May 31, 2019: Weighted-Average Grant-Date Fair Number of (Shares in thousands) Value Shares Balance at June 1, 2018 $ 45.85 1,755 Granted 60.34 503 Vested 45.44 (833 ) Forfeited 47.98 (334 ) Balance at May 31, 2019 $ 52.35 1,091 The remaining weighted-average contractual term of nonvested restricted shares at May 31, 2019 is the same as the period over which the remaining cost of the awards will be recognized, which is approximately 2.24 years. The fair value of the nonvested restricted share awards have been calculated using the market value of the shares on the date of issuance. For the years ended May 31, 2019, 2018 and 2017, the weighted-average grant-date fair value for restricted share grants was $60.34, $52.62 and $50.84, respectively. The total fair value of shares that vested during the years ended May 31, 2019, 2018 and 2017 was $37.8 million, $29.9 million and $20.3 million, respectively. We anticipate that approximately 1.09 million shares at a weighted-average grant-date fair value of $52.35 and a weighted-average remaining contractual term of 2.24 years will ultimately vest, based upon the unique terms and participants of each plan. Approximately 832,717 shares of restricted stock were vested at May 31, 2019, with 360,762 restricted shares vested as of May 31, 2018. The total intrinsic value of restricted shares converted during the years ended May 31, 2019, 2018 and 2017 was $58.1 million, $7.6 million and $9.0 million, respectively. Total unrecognized compensation cost related to all nonvested awards of restricted shares of common stock was $24.7 million as of May 31, 2019. That cost is expected to be recognized over a weighted-average period of 2.24 years. We did not receive any cash from employees as a result of employee vesting and release of restricted shares for the year ended May 31, 2019. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
May 31, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | NOTE K — ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Accumulated other comprehensive income (loss) consists of the following components: Pension And Other Postretirement Unrealized Unrealized Foreign Benefit Gain Gain (Loss) Currency Liability (Loss) On On Translation Adjustments, Derivatives, Securities, (In thousands) Adjustments Net of Tax Net of Tax Net of Tax Total Balance at June 1, 2016 $ (291,233 ) $ (208,206 ) $ - $ (2,608 ) $ (502,047 ) Reclassification adjustments for gains included in net income, net of taxes of $401 - (1,847 ) (1,847 ) Other comprehensive income (20,358 ) 66,264 16 7,849 53,771 Deferred taxes 3,176 (24,782 ) - (2,257 ) (23,863 ) Balance at May 31, 2017 (308,415 ) (166,724 ) 16 1,137 (473,986 ) Reclassification adjustments for gains included in net income, net of taxes of $591 - (1,244 ) (1,244 ) Other comprehensive income 10,989 11,375 (359 ) (2,050 ) 19,955 Deferred taxes (2,587 ) (2,146 ) 212 748 (3,773 ) Balance at May 31, 2018 (300,013 ) (157,495 ) (131 ) (1,409 ) (459,048 ) Reclassification adjustments for losses included in net income, net of taxes of $151 1,777 1,777 Other comprehensive income (73,660 ) (70,785 ) 4,713 307 (139,425 ) Deferred taxes 3,178 16,635 (203 ) (542 ) 19,068 Balance at May 31, 2019 $ (370,495 ) $ (211,645 ) $ 4,379 $ 133 $ (577,628 ) |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
May 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE L — EARNINGS PER SHARE The following table sets forth the reconciliation of the numerator and denominator of basic and diluted earnings per share for the years ended May 31, 2019, 2018 and 2017: Year Ended May 31, 2019 2018 2017 (In thousands, except per share amounts) Numerator for earnings per share: Net income attributable to RPM International Inc. stockholders $ 266,558 $ 337,770 $ 181,823 Less: Allocation of earnings and dividends to participating securities (1,514 ) (3,858 ) (2,795 ) Net income available to common shareholders - basic 265,044 333,912 179,028 Add: Undistributed earnings reallocated to unvested shareholders 2 Reverse: Allocation of earnings and dividends to participating securities 1,514 3,858 Add: Income effect of contingently issuable shares 3,655 5,673 5,457 Net income available to common shareholders - diluted $ 270,213 $ 343,443 $ 184,487 Denominator for basic and diluted earnings per share: Basic weighted average common shares (1) 130,552 131,179 130,662 Average diluted options 1,838 2,064 598 Net issuable common share equivalents (2) 1,943 3,928 3,905 Total shares for diluted earnings per share (1), (3) 134,333 137,171 135,165 Earnings Per Share of Common Stock Attributable to RPM International Inc. Stockholders: Basic Earnings Per Share of Common Stock $ 2.03 $ 2.55 $ 1.37 Diluted Earnings Per Share of Common Stock $ 2.01 $ 2.50 $ 1.36 (1) For the year ended May 31, 2019 and 2018, basic and diluted earnings per share are calculated under the two-class method and the treasury method, respectively, as those methods resulted in the most dilutive earnings per share. For the year ended May 31, 2017, b (2) Represents the number of shares that would be issued if our contingently convertible notes had been converted. We included these shares in the calculation of diluted EPS as the conversion of the notes were eligible to be settled, at our election, in cash, shares of our common stock, or a combination of cash and shares of our common stock. On November 27, 2018, we redeemed all of our 2.25% convertible senior notes due 2020, primarily for cash, but also issued 598,601 shares of our common stock in the transaction. (3) For the years ended May 31, 2019, 2018 and 2017, approximately 862,500, 799,362 and 606,048 shares of stock, respectively, granted under stock-based compensation plans were excluded from the calculation of diluted EPS, as the effect would have been anti-dilutive. |
Leases
Leases | 12 Months Ended |
May 31, 2019 | |
Leases [Abstract] | |
Leases | NOTE M — LEASES We lease certain property, plant and equipment under long-term operating lease agreements, some of which provide for increased rental payments based upon increases in the cost-of-living index. The following table illustrates our future minimum lease commitments under all non-cancelable lease agreements, for each of the next five years and in the aggregate, as of May 31, 2019: May 31, (In thousands) 2020 $ 59,163 2021 49,731 2022 40,339 2023 32,798 2024 27,716 Thereafter 119,607 Total Minimum Lease Commitments $ 329,354 Total rental expense for all operating leases amounted to $64.9 million, $64.3 million and $61.3 million for the fiscal years ended May 31, 2019, 2018 and 2017, respectively. |
Pension Plans
Pension Plans | 12 Months Ended |
May 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Pension Plans | NOTE N — PENSION PLANS We sponsor several pension plans for our employees, including our principal plan (the “Retirement Plan”), which is a non-contributory defined benefit pension plan covering substantially all domestic non-union employees. Pension benefits are provided for certain domestic union employees through separate plans. Employees of our foreign subsidiaries receive pension coverage, to the extent deemed appropriate, through plans that are governed by local statutory requirements. The Retirement Plan provides benefits that are based upon years of service and average compensation with accrued benefits vesting after five years. Benefits for union employees are generally based upon years of service, or a combination of years of service and average compensation. Our pension funding policy considers contributions in an amount on an annual basis that can be deducted for federal income tax purposes, using a different actuarial cost method and different assumptions from those used for financial reporting. For the fiscal year ending May 31, 2020, we expect to contribute approximately $0.9 million to the retirement plans in the U.S. and approximately $6.4 million to our foreign plans. During February 2019, we contributed an additional $56.5 million to the RPM International Inc. Retirement Plan in the U.S. than what had been planned at the beginning of the fiscal year. Net periodic pension cost consisted of the following for the year ended May 31: U.S. Plans Non-U.S. Plans (In thousands) 2019 2018 2017 2019 2018 2017 Service cost $ 37,528 $ 37,859 $ 37,603 $ 4,693 $ 4,620 $ 4,070 Interest cost 21,987 17,518 17,323 5,420 5,025 4,614 Expected return on plan assets (33,867 ) (32,342 ) (25,007 ) (7,907 ) (8,270 ) (7,109 ) Amortization of: Prior service cost 118 117 217 (30 ) (31 ) (24 ) Net actuarial losses recognized 13,087 14,470 22,160 1,229 1,758 2,150 Curtailment/settlement losses 89 128 904 Net Pension Cost $ 38,853 $ 37,622 $ 52,296 $ 3,494 $ 3,230 $ 4,605 The changes in benefit obligations and plan assets, as well as the funded status of our pension plans at May 31, 2019 and 2018, were as follows: U.S. Plans Non-U.S. Plans (In thousands) 2019 2018 2019 2018 Benefit obligation at beginning of year $ 617,255 $ 591,948 $ 194,149 $ 195,884 Service cost 37,528 37,859 4,693 4,620 Interest cost 21,987 17,518 5,420 5,025 Benefits paid (45,917 ) (34,368 ) (7,488 ) (6,545 ) Participant contributions 1,003 980 Plan amendments 11 (33 ) (61 ) Plan settlements/curtailments (607 ) (2,984 ) Actuarial (gains)/losses 29,413 4,298 17,286 (9,523 ) Premiums paid (97 ) (106 ) Currency exchange rate changes (8,359 ) 6,859 Benefit Obligation at End of Year $ 660,277 $ 617,255 $ 205,967 $ 194,149 Fair value of plan assets at beginning of year $ 487,233 $ 437,481 $ 188,960 $ 179,928 Actual return on plan assets (2,272 ) 30,291 6,737 3,166 Employer contributions 57,821 53,829 6,770 7,460 Participant contributions 1,003 980 Benefits paid (45,917 ) (34,368 ) (7,488 ) (6,545 ) Premiums paid (97 ) (106 ) Plan settlements/curtailments (580 ) (2,267 ) Currency exchange rate changes (8,193 ) 6,344 Fair Value of Plan Assets at End of Year $ 496,865 $ 487,233 $ 187,112 $ 188,960 (Deficit) of plan assets versus benefit obligations at end of year $ (163,412 ) $ (130,022 ) $ (18,855 ) $ (5,189 ) Net Amount Recognized $ (163,412 ) $ (130,022 ) $ (18,855 ) $ (5,189 ) Accumulated Benefit Obligation $ 553,392 $ 510,984 $ 192,533 $ 181,462 The fair value of the assets held by our pension plans has increased at May 31, 2019 since our previous measurement date at May 31, 2018, due primarily to our plan contributions. Total plan liabilities have increased due to increased benefit accruals and a decrease in the discount rate used to value the liability. We have increased our recorded liability for the net underfunded status of our pension plans. Due to lower discount rates, we expect pension expense in fiscal 2020 to be higher when compared to our fiscal 2019 expense level. Any future declines in the value of our pension plan assets or increases in our plan liabilities could require us to increase our recorded liability for the net underfunded status of our pension plans and could also require accelerated and higher cash contributions to our pension plans. Amounts recognized in the Consolidated Balance Sheets for the years ended May 31, 2019 and 2018 are as follows: U.S. Plans Non-U.S. Plans (In thousands) 2019 2018 2019 2018 Noncurrent assets $ - $ - $ 9,047 $ 10,483 Current liabilities (8 ) (7 ) (435 ) (421 ) Noncurrent liabilities (163,404 ) (130,015 ) (27,467 ) (15,251 ) Net Amount Recognized $ (163,412 ) $ (130,022 ) $ (18,855 ) $ (5,189 ) The following table summarizes the relationship between our plans' benefit obligations and assets: U.S. Plans 2019 2018 (In thousands) Benefit Obligation Plan Assets Benefit Obligation Plan Assets Plans with projected benefit obligations in excess of plan assets $ 660,277 $ 496,865 $ 617,255 $ 487,233 Plans with accumulated benefit obligations in excess of plan assets 553,392 496,865 510,984 487,233 Plans with assets in excess of projected benefit obligations - - - - Plans with assets in excess of accumulated benefit obligations - - - - Non-U.S. Plans 2019 2018 (In thousands) Benefit Obligation Plan Assets Benefit Obligation Plan Assets Plans with projected benefit obligations in excess of plan assets $ 162,824 $ 134,921 $ 152,533 $ 136,861 Plans with accumulated benefit obligations in excess of plan assets 149,390 134,921 43,054 29,855 Plans with assets in excess of projected benefit obligations 43,143 52,191 41,616 52,099 Plans with assets in excess of accumulated benefit obligations 43,143 52,191 138,408 159,105 The following table presents the pretax net actuarial loss and prior service (costs) recognized in accumulated other comprehensive income (loss) not affecting retained earnings: U.S. Plans Non-U.S. Plans (In thousands) 2019 2018 2019 2018 Net actuarial loss $ (250,286 ) $ (197,821 ) $ (51,184 ) $ (35,668 ) Prior service (costs) credits (28 ) (135 ) 224 224 Total recognized in accumulated other comprehensive income not affecting retained earnings $ (250,314 ) $ (197,956 ) $ (50,960 ) $ (35,444 ) The following table includes the changes recognized in other comprehensive income: U.S. Plans Non-U.S. Plans (In thousands) 2019 2018 2019 2018 Changes in plan assets and benefit obligations recognized in other comprehensive income: Prior service cost $ 11 $ - $ (33 ) $ (61 ) Net loss (gain) arising during the year 65,552 6,349 18,456 (5,098 ) Effect of exchange rates on amounts included in AOCI (1,593 ) 1,517 Amounts recognized as a component of net periodic benefit cost: Amortization or curtailment recognition of prior service (cost) benefit (118 ) (117 ) 30 18 Amortization or settlement recognition of net (loss) (13,087 ) (14,470 ) (1,345 ) (1,912 ) Total recognized in other comprehensive loss (income) $ 52,358 $ (8,238 ) $ 15,515 $ (5,536 ) The following table presents the amounts in accumulated other comprehensive income (loss) as of May 31, 2019 that have not yet been recognized in net periodic pension cost, but are expected to be recognized in our Consolidated Statements of Income during the fiscal year ending May 31, 2020: (In thousands) U.S. Plans Non-U.S. Plans Net actuarial loss $ (17,973 ) $ (2,091 ) Prior service (cost) credit $ (8 ) $ 35 In measuring the projected benefit obligation and net periodic pension cost for our plans, we utilize actuarial valuations. These valuations include specific information pertaining to individual plan participants, such as salary, age and years of service, along with certain assumptions. The most significant assumptions applied include discount rates, expected return on plan assets and rate of compensation increases. We evaluate these assumptions, at a minimum, on an annual basis, and make required changes, as applicable. In developing our expected long-term rate of return on pension plan assets, we consider the current and expected target asset allocations of the pension portfolio, as well as historical returns and future expectations for returns on various categories of plan assets. Expected return on assets is determined by using the weighted-average return on asset classes based on expected return for the target asset allocations of the principal asset categories held by each plan. In determining expected return, we consider both historical performance and an estimate of future long-term rates of return. Actual experience is used to develop the assumption for compensation increases. The following weighted-average assumptions were used to determine our year-end benefit obligations and net periodic pension cost under the plans: U.S. Plans Non-U.S. Plans Year-End Benefit Obligations 2019 2018 2019 2018 Discount rate 3.64 % 4.12 % 2.61 % 3.09 % Rate of compensation increase 3.80 % 3.80 % 2.86 % 2.85 % U.S. Plans Non-U.S. Plans Net Periodic Pension Cost 2019 2018 2017 2019 2018 2017 Discount rate 4.12 % 3.81 % 3.85 % 3.09 % 2.79 % 3.13 % Expected return on plan assets 7.40 % 7.89 % 7.89 % 4.30 % 4.37 % 4.50 % Rate of compensation increase 3.80 % 3.80 % 3.80 % 2.85 % 3.00 % 2.81 % The following tables illustrate the weighted-average actual and target allocation of plan assets: U.S. Plans Target Allocation Actual Asset Allocation (Dollars in millions) as of May 31, 2019 2019 2018 Equity securities 55 % $ 295.1 $ 309.3 Fixed income securities 25 % 83.8 76.5 Multi-class 20 % 78.1 72.8 Cash (1) 39.7 28.4 Other 0.2 0.2 Total assets 100 % $ 496.9 $ 487.2 Non-U.S. Plans Target Allocation Actual Asset Allocation (Dollars in millions) as of May 31, 2019 2019 2018 Equity securities 41 % $ 79.9 $ 90.0 Fixed income securities 42 % 79.3 70.2 Cash 0.1 0.5 Property and other 17 % 27.8 28.3 Total assets 100 % $ 187.1 $ 189.0 (1) The larger than target cash position at May 31, 2019 results from our February 2019 contribution to the RPM International Inc. Retirement Plan because of our plans to invest the February contribution over a period of time, due to dollar cost averaging. The following tables present our pension plan assets as categorized using the fair value hierarchy at May 31, 2019 and 2018: U.S. Plans (In thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value at May 31, 2019 U.S. Treasury and other government $ - $ 13,854 $ - $ 13,854 State and municipal bonds 386 386 Foreign bonds 1,031 1,031 Mortgage-backed securities 20,075 20,075 Corporate bonds 26,204 26,204 Stocks - mid cap 13,392 13,392 Stocks - small cap 15,720 15,720 Mutual funds - equity 265,969 265,969 Mutual funds - multi-class 78,143 78,143 Mutual funds - fixed 22,215 22,215 Cash and cash equivalents 39,704 39,704 Limited partnerships 172 172 Total $ 68,816 $ 427,877 $ 172 $ 496,865 Non-U.S. Plans (In thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value at May 31, 2019 Pooled equities $ - $ 78,733 $ - $ 78,733 Pooled fixed income 79,061 79,061 Foreign bonds 227 227 Insurance contracts 27,843 27,843 Mutual funds 1,125 1,125 Cash and cash equivalents 123 123 Total $ 123 $ 159,146 $ 27,843 $ 187,112 U.S. Plans (In thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value at May 31, 2018 U.S. Treasury and other government $ - $ 10,197 $ - $ 10,197 State and municipal bonds 605 605 Foreign bonds 1,748 1,748 Mortgage-backed securities 26,081 26,081 Corporate bonds 17,413 17,413 Stocks - large cap 1,927 1,927 Stocks - mid cap 11,748 11,748 Stocks - small cap 18,419 18,419 Stocks - international 3,333 3,333 Mutual funds - equity 273,893 273,893 Mutual funds - multi-class 72,802 72,802 Mutual funds - fixed 20,516 20,516 Cash and cash equivalents 28,371 28,371 Limited partnerships 180 180 Total $ 63,798 $ 423,255 $ 180 $ 487,233 Non-U.S. Plans (In thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value at May 31, 2018 Pooled equities $ - $ 88,540 $ - $ 88,540 Pooled fixed income 70,180 70,180 Foreign bonds 182 182 Insurance contracts 28,268 28,268 Mutual funds 1,334 1,334 Cash and cash equivalents 456 456 Total $ 456 $ 160,236 $ 28,268 $ 188,960 The following table includes the activity that occurred during the years ended May 31, 2019 and 2018 for our Level 3 assets: Actual Return on Plan Assets For: Balance at Assets Still Held Assets Sold Purchases, Sales and Balance at (In thousands) Beginning of Period at Reporting Date During Year Settlements, net (1) End of Period Year ended May 31, 2019 $ 28,448 1,228 (1,661 ) $ 28,015 Year ended May 31, 2018 30,387 (65 ) - (1,874 ) 28,448 (1) Includes the impact of exchange rate changes during the year. The primary objective for the investments of the Retirement Plan is to provide for long-term growth of capital without undue exposure to risk. This objective is accomplished by utilizing a strategy of equities, fixed-income securities and cash equivalents in a mix that is conducive to participation in a rising market, while allowing for adequate protection in a falling market. Our Investment Committee oversees the investment allocation process, which includes the selection and evaluation of investment managers, the determination of investment objectives and risk guidelines, and the monitoring of actual investment performance. In order to manage investment risk properly, Plan policy prohibits short selling, securities lending, financial futures, options and other specialized investments, except for certain alternative investments specifically approved by the Investment Committee. The Investment Committee reviews, on a quarterly basis, reports of actual Plan investment performance provided by independent third parties, in addition to its review of the Plan investment policy on an annual basis. The investment objectives are similar for our plans outside of the U.S., subject to local regulations. The goals of the investment strategy for pension assets include: the total return of the funds shall, over an extended period of time, surpass an index composed of the MSCI World Stock Index (equity), the Barclays Aggregate Bond Index (fixed income), and 30-day Treasury Bills (cash), weighted appropriately to match the asset allocation of the plans. The equity portion of the funds shall surpass the MSCI World Stock Index over a full market cycle, while the fixed-income portion shall surpass Barclays Aggregate Bond Index over a full market cycle. The purpose of the core fixed-income fund is to increase return in the form of cash flow, provide a hedge against inflation and to reduce the volatility of the fund overall. Therefore, the primary objective of the core fixed-income portion is to match the Barclays Aggregate Bond Index. The purpose of including opportunistic fixed-income assets such as, but not limited to, global and high-yield securities in the portfolio is to enhance the overall risk-return characteristics of the Fund. In addition to the defined benefit pension plans discussed above, we also sponsor employee savings plans under Section 401(k) of the Internal Revenue Code, which cover most of our employees in the U.S. We record expense for defined contribution plans for any employer-matching contributions made in conjunction with services rendered by employees. The majority of our plans provide for matching contributions made in conjunction with services rendered by employees. Matching contributions are invested in the same manner that the participants invest their own contributions. Matching contributions charged to income were $19.4 million, $18.7 million and $17.4 million for the years ending May 31, 2019, 2018 and 2017, respectively. We expect to pay the following estimated pension benefit payments in the next five years (in millions): $60.7 in 2020, $57.3 in 2021, $62.3 in 2022, $62.8 in 2023 and $62.1 in 2024. In the five years thereafter (2025-2029), we expect to pay $320.0 million. |
Postretirement Benefits
Postretirement Benefits | 12 Months Ended |
May 31, 2019 | |
Postemployment Benefits [Abstract] | |
Postretirement Benefits | NOTE O — POSTRETIREMENT BENEFITS We sponsor several unfunded-healthcare-benefit plans for certain of our retired employees, as well as postretirement life insurance for certain key former employees. Eligibility for these benefits is based upon various requirements. The following table illustrates the effect on operations of these plans for the three years ended May 31, 2019: U.S. Plans Non-U.S. Plans (In thousands) 2019 2018 2017 2019 2018 2017 Service cost - benefits earned during the period $ - $ - $ - $ 1,507 $ 1,307 $ 1,097 Interest cost on the accumulated obligation 192 173 229 1,122 939 854 Amortization of: Prior service (credit) (219 ) (220 ) (235 ) Net actuarial (gains) losses (26 ) 24 442 332 230 Net Postretirement Benefit (Income) Cost $ (53 ) $ (23 ) $ (6 ) $ 3,071 $ 2,578 $ 2,181 The changes in benefit obligations of the plans at May 31, 2019 and 2018 were as follows: U.S. Plans Non-U.S. Plans (In thousands) 2019 2018 2019 2018 Accumulated postretirement benefit obligation at beginning of year $ 5,368 $ 5,892 $ 33,281 $ 27,868 Service cost 1,507 1,307 Interest cost 192 173 1,122 939 Benefit payments (287 ) (297 ) (664 ) (604 ) Actuarial (gains) losses (283 ) (400 ) 3,801 2,638 Currency exchange rate changes (1,384 ) 1,133 Accumulated and accrued postretirement benefit obligation at end of year $ 4,990 $ 5,368 $ 37,663 $ 33,281 In determining the postretirement benefit amounts outlined above, measurement dates as of May 31 for each period were applied. Amounts recognized in the Consolidated Balance Sheets for the years ended May 31, 2019 and 2018 are as follows: U.S. Plans Non-U.S. Plans (In thousands) 2019 2018 2019 2018 Current liabilities $ (423 ) $ (427 ) $ (741 ) $ (696 ) Noncurrent liabilities (4,567 ) (4,941 ) (36,922 ) (32,585 ) Net Amount Recognized $ (4,990 ) $ (5,368 ) $ (37,663 ) $ (33,281 ) The following table presents the pretax net actuarial gain (loss) and prior service credits recognized in accumulated other comprehensive income (loss) not affecting retained earnings: U.S. Plans Non-U.S. Plans (In thousands) 2019 2018 2019 2018 Net actuarial gain (loss) $ 381 $ 124 $ (12,891 ) $ (9,951 ) Prior service credits 667 887 Total recognized in accumulated other comprehensive income not affecting retained earnings $ 1,048 $ 1,011 $ (12,891 ) $ (9,951 ) The following table includes the changes recognized in other comprehensive income: U.S. Plans Non-U.S. Plans (In thousands) 2019 2018 2019 2018 Changes in plan assets and benefit obligations recognized in other comprehensive income: Prior service cost $ - $ - $ - $ - Net loss (gain) arising during the year (283 ) (400 ) 3,801 2,638 Effect of exchange rates on amounts included in AOCI (419 ) 291 Amounts recognized as a component of net periodic benefit cost: Amortization or curtailment recognition of prior service credit (cost) 219 220 Amortization or settlement recognition of net gain (loss) 26 (24 ) (442 ) (332 ) Total recognized in other comprehensive loss (income) $ (38 ) $ (204 ) $ 2,940 $ 2,597 The following weighted-average assumptions were used to determine our year-end benefit obligations and net periodic postretirement benefit costs under the plans: U.S. Plans Non-U.S. Plans Year-End Benefit Obligations 2019 2018 2019 2018 Discount rate 3.44 % 4.03 % 3.22 % 3.70 % Current healthcare cost trend rate 7.29 % 7.86 % 5.77 % 6.02 % Ultimate healthcare cost trend rate 4.36 % 4.36 % 3.70 % 4.20 % Year ultimate healthcare cost trend rate will be realized 2037 2037 2040 2032 U.S. Plans Non-U.S. Plans Net Periodic Postretirement Cost 2019 2018 2017 2019 2018 2017 Discount rate 4.03 % 3.61 % 3.76 % 3.70 % 3.61 % 3.92 % Healthcare cost trend rate 7.86 % 14.75 % 10.37 % 6.02 % 5.85 % 5.98 % Ultimate healthcare cost trend rate 4.36 % 4.36 % 4.36 % 4.20 % 4.20 % 4.20 % Year ultimate healthcare cost trend rate will be realized 2037 2037 2037 2032 2030 2030 We utilize a sensitivity analysis to measure the potential impact of changes in our healthcare cost trend rate on our Consolidated Financial Statements. Increasing or decreasing current healthcare cost trend rates by 1% would affect our accumulated postretirement benefit obligation and net postretirement expense by the following amounts for the years ended May 31, 2019 and 2018: U.S. Plans Non-U.S. Plans (In thousands) 2019 2018 2019 2018 1% Increase in Healthcare Cost Trend Rate Accumulated benefit obligation $ 124 $ 185 $ 8,300 $ 6,978 Postretirement cost 7 7 731 673 1% Decrease in Healthcare Cost Trend Rate Accumulated benefit obligation $ (112 ) $ (163 ) $ (6,390 ) $ (5,391 ) Postretirement cost (6 ) (6 ) (539 ) (493 ) We expect to pay approximately $1.2 million to $1.5 million in estimated postretirement benefits in each of the next five years. In the five years thereafter (2025-2029), we expect to pay a cumulative total of $9.0 million. |
Contingencies and Other Accrued
Contingencies and Other Accrued Losses | 12 Months Ended |
May 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingencies and Other Accrued Losses | NOTE P — CONTINGENCIES AND OTHER ACCRUED LOSSES Accrued loss reserves consist of the following: May 31, 2019 2018 (In thousands) Accrued product liability reserves $ 11,739 $ 12,900 Accrued warranty reserves 7,013 8,088 Accrued environmental reserves 1,147 1,144 Total Accrued Loss Reserves - Current $ 19,899 $ 22,132 Accrued product liability reserves - noncurrent $ 29,942 $ 29,902 Accrued warranty liability - noncurrent 3,401 3,633 Accrued environmental reserves - noncurrent 4,211 3,571 Total Accrued Loss Reserves - Noncurrent $ 37,554 $ 37,106 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. 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 May 31, 2019, 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. Product warranty expense is recorded within selling, general and administrative expense. 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: Year Ended May 31, 2019 2018 2017 (In thousands) Beginning Balance $ 11,721 $ 19,149 $ 13,314 Deductions (1) (22,262 ) (26,199 ) (18,269 ) Provision charged to SG&A expense 20,955 17,924 23,862 Acquisitions 847 242 Ending Balance $ 10,414 $ 11,721 $ 19,149 (1) Primarily claims paid during the year. In addition, like other companies participating in similar lines of business, some of our subsidiaries are involved in several proceedings relating to environmental matters. It is our policy to accrue remediation costs when it is probable that such efforts will be required and the related costs can be reasonably estimated. During our fiscal year ended May 31, 2018, we recorded an environmental reserve for approximately $1.7 million related to our estimate of remediation costs that may be required in relation to one of our facilities identified for sale and closure in connection with our ongoing restructuring activities. In general, our environmental accruals are undiscounted liabilities, which are exclusive of claims against third parties, and are not material to our financial statements during any of the periods presented. We were notified by the SEC on June 24, 2014, that we are the subject of a formal investigation pertaining to the timing of our disclosure and accrual of loss reserves in fiscal 2013 with respect to the previously disclosed U.S. Department Of Justice (the “DOJ”) and the U.S. General Services Administration (the “GSA”) Office of Inspector General investigation into compliance issues relating to Tremco Roofing Division’s GSA contracts. As previously disclosed, our Audit Committee completed an investigation into the facts and circumstances surrounding the timing of our disclosure and accrual of loss reserves with respect to the GSA and DOJ investigation, and determined that it was appropriate to restate our financial results for the first, second and third quarters of fiscal 2013. These restatements had no impact on our audited financial statements for the fiscal years ended May 31, 2013 or 2014. The Audit Committee’s investigation concluded that there was no intentional misconduct on the part of any of our officers. In connection with the foregoing, on September 9, 2016, the SEC filed an enforcement action against us and our General Counsel. We have cooperated with the SEC’s investigation and believe the allegations in the complaint mischaracterize both our and our General Counsel’s actions in connection with the matters related to our quarterly results in fiscal 2013 and are without merit. Both we and our General Counsel filed motions to dismiss the complaint on February 24, 2017. Those motions to dismiss the complaint were denied by the Court on September 29, 2017. We and our General Counsel filed answers to the complaint on October 16, 2017. Formal discovery commenced in January 2018, and closed as of June 3, 2019, other than one remaining discovery dispute. The parties engaged in written discovery, and several fact witnesses were deposed. The dispositive motion briefing schedule was vacated by the Court on July 2, 2019, due to the remaining discovery dispute, and will be reset once this dispute is fully resolved. We intend to continue to contest the allegations in the complaint vigorously. Also in connection with the foregoing, a stockholder derivative action was filed in the United States District Court, Northern District of Ohio, Eastern Division, against certain of our directors and officers. The court has stayed this stockholder derivative action pending the completion of the SEC enforcement action. The action by the SEC could result in sanctions against us and/or our General Counsel and could impose substantial additional costs and distractions, regardless of its outcome. We have determined that it is probable that we will incur a loss relating to this matter and have estimated a range of potential loss. We have accrued at the low end of the range of loss, as no amount within the range is more likely to occur, and no amount within the estimated range of loss would have a material impact on our consolidated financial condition, results of operations or cash flows. With respect to a previously disclosed case pending against one of our subsidiaries in which both trade secret and trademark infringement had been alleged, during fiscal 2019, we agreed to settle the case for $6.5 million. |
Revenue
Revenue | 12 Months Ended |
May 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | NOTE Q — REVENUE We operate a portfolio of businesses and product lines that manufacture and sell a variety of specialty paints, protective coatings and 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 R, “Segment Information,” for further details regarding our disaggregated revenues, as well as a description of each of the unique revenue streams related to each of our three 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. 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 P, “Contingencies and Other Accrued Losses.” 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. Accounts receivable, net of allowances, and net contract assets (liabilities) consisted of the following: Year Ended May 31, 2019 2018 $ Change % Change (In thousands, except percents) Accounts receivable, less allowance $ 1,232,350 $ 1,113,818 $ 118,532 10.6 % Contract assets $ 21,628 $ 18,212 $ 3,416 18.8 % Contract liabilities - short-term (25,896 ) (23,335 ) (2,561 ) 11.0 % Net Contract Liabilities $ (4,268 ) $ (5,123 ) $ 855 -16.7 % The allowance for doubtful accounts reflects our best estimate of probable losses inherent in the accounts receivable balance. We determine the allowance based on known troubled accounts, historical experience and other currently available evidence. The $0.9 million change in our net contract liabilities from May 31, 2018 to May 31, 2019 resulted primarily from the timing and volume of construction jobs in progress during fiscal 2019 versus last year, in part due to weather delays in our roofing services business during the fourth quarter of fiscal 2019, as well as the timing of revenue recognition under the new standard. We also record long-term deferred revenue, which amounted to $66.5 million and $64.1 million as of May 31, 2019 and 2018, respectively. The long-term portion of deferred revenue is related to assurance type 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. |
Segment Information
Segment Information | 12 Months Ended |
May 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE R — SEGMENT INFORMATION During the first quarter of fiscal 2019, we made the determination to streamline certain businesses and management structures within our industrial reportable segment. As a result, our former tremco illbruck Group, Tremco Group and several components from our Performance Coatings Group, including our Euclid and Flowcrete businesses, were combined to form a new Construction Products Group. There were no changes in the composition of any of our reportable segments and, therefore, previously reported business segment information remains unchanged. We operate a portfolio of businesses and product lines that manufacture and sell a variety of specialty paints, protective coatings and roofing systems, sealants and adhesives. We manage our portfolio by organizing our businesses and product lines into three reportable segments: the industrial reportable segment, the specialty reportable segment and the consumer reportable segment. Within each reportable segment, we aggregate operating segments or product lines that consist of individual companies or groups of companies and product lines, which generally address common markets, share similar economic characteristics, utilize similar technologies and can share manufacturing or distribution capabilities. Our six 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 six 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 expense is essentially related to acquisitions, as opposed to segment operations. Our industrial reportable segment products are sold throughout North America and also account for the majority of our international sales. Our industrial product lines are sold directly to contractors, distributors and end-users, such as industrial manufacturing facilities, public institutions and other commercial customers. The industrial reportable segment comprises two separate operating segments – Construction Products Group and Performance Coatings Group. Products and services within this reportable segment include construction chemicals, roofing systems, weatherproofing and other sealants, and polymer flooring. 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 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. Products are primarily sold directly to mass merchandisers, home improvement centers, hardware stores, paint stores, craft shops, cosmetic companies and through distributors. This reportable segment comprises three operating segments: Rust-Oleum Group, DAP Group and SPG-Consumer Group. Products within this reportable segment include specialty, hobby and professional paints; nail enamels; caulks; adhesives; silicone sealants; cleaners; floor sealers and wood stains. Sales to The Home Depot, Inc. represented less than 10% of our consolidated net sales for fiscal 2019, 2018 and 2017, 29% of our consumer segment net sales for the fiscal year ended May 31, 2019 and 28% for each of the fiscal years ended May 31, 2018 and 2017. Our specialty 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 specialty reportable segment is a single operating segment, which offers products that include industrial cleaners, restoration services equipment, colorants, exterior finishes, edible coatings and specialty glazes for pharmaceutical and food industries, and other specialty OEM coatings. In addition to our three 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, interest expense and earnings before interest and taxes; as well as identifiable assets, capital expenditures, and depreciation and amortization. We reflect income from our joint ventures on the equity method, and receive royalties from our licensees. Effective June 1, 2019, we realigned certain businesses and management structure to recognize how we allocate resources and analyze the operating performance of our operating segments. This realignment did not change our reportable segments at May 31, 2019. Rather, our periodic filings, beginning with our first quarter ending August 31, 2019, will include historical segment results reclassified to reflect the effect of this realignment. See Note A(20) of Notes to Consolidated Financial Statements. The following tables reflect the results of our reportable segments consistent with our management philosophy, and represent the information we utilize, in conjunction with various strategic, operational and other financial performance criteria, in evaluating the performance of our portfolio of businesses. Year Ended May 31, 2019 2018 2017 (In thousands) Net Sales Industrial $ 2,889,822 $ 2,814,755 $ 2,564,202 Consumer 1,887,767 1,754,339 1,680,384 Specialty 786,962 752,549 713,589 Total $ 5,564,551 $ 5,321,643 $ 4,958,175 Income (Loss) Before Income Taxes Industrial $ 243,234 $ 270,792 $ 243,335 Consumer 215,002 171,874 58,726 Specialty 101,441 123,307 107,904 Corporate/Other (219,832 ) (148,925 ) (165,632 ) Total $ 339,845 $ 417,048 $ 244,333 Identifiable Assets Industrial $ 2,322,511 $ 2,422,799 $ 2,382,784 Consumer 1,984,332 1,859,381 1,821,190 Specialty 860,125 740,952 759,822 Corporate/Other 274,387 248,690 126,653 Total $ 5,441,355 $ 5,271,822 $ 5,090,449 Capital Expenditures Industrial $ 54,514 $ 60,145 $ 65,083 Consumer 54,444 38,921 45,690 Specialty 26,364 14,958 14,104 Corporate/Other 1,435 595 1,232 Total $ 136,757 $ 114,619 $ 126,109 Depreciation and Amortization Industrial $ 62,435 $ 57,267 $ 51,529 Consumer 41,882 38,037 33,374 Specialty 32,379 27,457 26,453 Corporate/Other 5,046 5,738 5,417 Total $ 141,742 $ 128,499 $ 116,773 Year Ended May 31, 2019 Industrial Segment Consumer Segment Specialty Segment Consolidated (In thousands) Net Sales (based on shipping location) (a) United States $ 1,570,891 $ 1,487,205 $ 618,408 $ 3,676,504 Foreign Canada 229,386 117,305 43,508 390,199 Europe 717,659 218,021 93,344 1,029,024 Latin America 189,627 28,020 1,397 219,044 Asia Pacific 118,393 29,170 30,305 177,868 Other Foreign 63,866 8,046 71,912 Total Foreign 1,318,931 400,562 168,554 1,888,047 Total $ 2,889,822 $ 1,887,767 $ 786,962 $ 5,564,551 Year Ended May 31, 2018 Industrial Segment Consumer Segment Specialty Segment Consolidated (In thousands) Net Sales (based on shipping location) (a) United States $ 1,480,189 $ 1,351,065 $ 600,780 $ 3,432,034 Foreign Canada 236,594 106,460 22,295 365,349 Europe 715,754 228,046 96,618 1,040,418 Latin America 197,859 27,834 1,514 227,207 Asia Pacific 112,712 32,493 31,342 176,547 Other Foreign 71,647 8,441 80,088 Total Foreign 1,334,566 403,274 151,769 1,889,609 Total $ 2,814,755 $ 1,754,339 $ 752,549 $ 5,321,643 Year Ended May 31, 2017 Industrial Segment Consumer Segment Specialty Segment Consolidated (In thousands) Net Sales (based on shipping location) (a) United States $ 1,357,945 $ 1,355,262 $ 556,193 $ 3,269,400 Foreign Canada 216,218 86,773 18,705 321,696 Europe 625,399 174,304 109,096 908,799 Latin America 195,502 23,407 1,427 220,336 Asia Pacific 100,389 33,528 28,168 162,085 Other Foreign 68,749 7,110 75,859 Total Foreign 1,206,257 325,122 157,396 1,688,775 Total $ 2,564,202 $ 1,680,384 $ 713,589 $ 4,958,175 Year Ended May 31, 2019 2018 2017 (In thousands) Long-Lived Assets (b) United States $ 1,859,628 $ 1,807,046 $ 1,738,180 Foreign Canada 242,582 139,259 137,211 Europe 343,501 361,317 349,979 United Kingdom 217,414 230,071 199,415 Other Foreign 225,230 241,301 248,435 Total Foreign 1,028,727 971,948 935,040 Total $ 2,888,355 $ 2,778,994 $ 2,673,220 (a) It is not practicable to obtain the information needed to disclose revenues attributable to each of our product lines. (b) Long-lived assets include all non-current assets, excluding non-current deferred income taxes. |
Quarterly Information (Unaudite
Quarterly Information (Unaudited) | 12 Months Ended |
May 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Information (Unaudited) | NOTE S — QUARTERLY INFORMATION (UNAUDITED) The following is a summary of the quarterly results of operations for the years ended May 31, 2019 and 2018: For Quarter Ended (In thousands, except per share amounts) August 31 November 30 February 28 May 31 2019 Net Sales $ 1,459,989 $ 1,362,531 $ 1,140,630 $ 1,601,401 Gross Profit $ 594,042 $ 537,969 $ 446,140 $ 683,756 Net Income Attributable to RPM International Inc. Stockholders (a) $ 69,764 $ 49,224 $ 14,190 $ 133,380 Basic Earnings Per Share $ 0.52 $ 0.37 $ 0.11 $ 1.03 Diluted Earnings Per Share $ 0.52 $ 0.37 $ 0.11 $ 1.02 Dividends Per Share $ 0.320 $ 0.350 $ 0.350 $ 0.350 (In thousands, except per share amounts) August 31 November 30 February 28 May 31 (b) 2018 Net Sales $ 1,345,394 $ 1,315,416 $ 1,102,677 $ 1,558,156 Gross Profit $ 572,008 $ 551,015 $ 439,493 $ 618,696 Net Income Attributable to RPM International Inc. Stockholders $ 116,416 $ 95,463 $ 40,227 $ 85,664 Basic Earnings Per Share $ 0.87 $ 0.72 $ 0.30 $ 0.65 Diluted Earnings Per Share $ 0.86 $ 0.70 $ 0.30 $ 0.63 Dividends Per Share $ 0.300 $ 0.320 $ 0.320 $ 0.320 (a) Reflects inventory-related charges of $10.5 million in our consumer reportable segment resulting from more proactive management of inventory and $10.0 million in inventory reductions related to restructuring activities in our industrial reportable segment. Reflects restructuring charges totaling $42.3 million that were incurred throughout fiscal 2019, as further described in Note B, “Restructuring.” (b) Reflects inventory-related charges of $36.5 million in our consumer reportable segment for product line rationalization and related obsolete inventory identification and $1.2 million in inventory reductions related to restructuring activities in our industrial reportable segment. Additional restructuring charges totaling $17.5 million were incurred during the fourth quarter of fiscal 2018, as further described in Note B, “Restructuring.” We also incurred charges in our industrial segment totaling $4.2 million in connection with the decision to exit Flowcrete China. Quarterly earnings per share may not total to the yearly earnings per share due to the weighted-average number of shares outstanding in each quarter. |
Valuation And Qualifying Accoun
Valuation And Qualifying Accounts and Reserves (Schedule II) | 12 Months Ended |
May 31, 2019 | |
Valuation And Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts and Reserves (Schedule II) | Valuation And Qualifying Accounts and Reserves (Schedule II) Additions Acquisitions Charged to (Disposals) Balance at Selling, of Businesses Balance at Beginning General and and (Deductions) End (In thousands) of Period Administrative Reclassifications Additions of Period Year Ended May 31, 2019 Current: Allowance for doubtful accounts $ 46,344 $ 18,646 $ (131 ) $ (10,111 ) (1) $ 54,748 Accrued product liability reserves $ 12,900 $ 12,696 $ — $ (13,857 ) (2) $ 11,739 Accrued loss reserves $ 1,144 $ 875 $ — $ (872 ) (2) $ 1,147 Noncurrent: Accrued product liability $ 29,902 $ 8,301 $ — (8,261 ) (2) $ 29,942 Environmental reserves $ 3,571 $ 895 $ — $ (255 ) $ 4,211 Year Ended May 31, 2018 Current: Allowance for doubtful accounts $ 44,138 $ 4,487 $ — $ (2,281 ) (1) $ 46,344 Accrued product liability reserves $ 14,932 $ 6,169 $ — $ (8,201 ) (2) $ 12,900 Accrued loss reserves $ 1,102 $ 413 $ — $ (371 ) (2) $ 1,144 Noncurrent: Accrued product liability $ 28,222 $ 16,581 $ — (14,901 ) (2) $ 29,902 Environmental reserves $ 1,747 $ 5,350 (4) $ — $ (3,526 ) $ 3,571 Year Ended May 31, 2017 Current: Allowance for doubtful accounts $ 24,600 $ 13,747 $ — $ 5,791 (1) $ 44,138 Accrued product liability reserves $ 25,100 $ 5,262 $ — $ (15,430 ) (2) $ 14,932 Accrued loss reserves $ 1,053 $ 636 $ (322 ) (3) $ (265 ) (2) $ 1,102 Noncurrent: Accrued product liability $ 29,045 $ 15,005 $ 281 $ (16,109 ) (2) $ 28,222 Environmental reserves $ 1,676 $ 404 $ 328 (3) $ (661 ) $ 1,747 (1) Uncollectible accounts written off, net of recoveries (2) Primarily claims paid during the year, net of insurance contributions (3) Primarily transfers between current and noncurrent (4) Approximately $1.7 million of the additions are reflected in the line item entitled, “Restructuring Expense,” in our Consolidated Statements of Income. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
May 31, 2019 | |
Accounting Policies [Abstract] | |
Consolidation, Noncontrolling Interests and Basis of Presentation | 1) Consolidation, Noncontrolling Interests and Basis of Presentation 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). |
Use of Estimates | 2) Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Acquisitions/Divestitures | 3) Acquisitions/Divestitures We account for business combinations and asset acquisitions using the acquisition method of accounting and, accordingly, the assets and liabilities of the acquired entities are recorded at their estimated fair values at the acquisition date. During the fiscal year ended May 31, 2019, we completed a total of five acquisitions among our three reportable segments. During fiscal 2019, our industrial reportable segment completed two acquisitions, which included the following: a provider of hygienic flooring solutions for the U.K. food and beverage industry headquartered in the U.K.; and a distributor of concrete admixture products throughout Puerto Rico, the Dominican Republic and Panama. Within our consumer reportable segment, we acquired a brand line of specialty cleaning products and the exclusive North American licensing for a brand line of drain care products based in Cincinnati, Ohio; and a manufacturer of non-toxic specialty cleaners based in Ontario, Canada. Lastly, we acquired a leading manufacturer and distributor of insulated concrete forms in North America, based in Ontario, Canada, which reports through our specialty reportable segment. During the fiscal year ended May 31, 2018, we completed a total of seven acquisitions among our three reportable segments. During fiscal 2018, our industrial reportable segment completed three acquisitions, which included the following: a manufacturer of high-performance spray applied polyurea waterproofing systems, as well as a range of polymer flooring systems located in Norway; a manufacturer and marketer of terrazzo and resinous flooring, wall coating systems and other concrete repair and maintenance materials headquartered in Batavia, Ohio; and a manufacturer and installer of a range of specialty bridge bearings and expansion joints, as well as custom engineered solutions for bridges, wind turbines and other structures located in the U.K. Within our consumer reportable segment, we acquired a manufacturer of sealers, cleaners, polishes and related products primarily for tile and natural stone based in Arcadia, California; and a manufacturer and marketer of specialty cleaners for rust stain removal based in Eldora, Iowa. Lastly, we acquired the assets of a manufacturer of adjuvants, which are used to enhance the productivity of herbicides for farming and forest protection programs located in Australia; and the assets of a distributor of high-performance wood finishes located in the U.K., both of which report through our specialty reportable segment. The purchase price for each acquisition has been allocated to the estimated fair values of the assets acquired and liabilities assumed as of the date of acquisition. We have finalized the purchase price allocation for our fiscal 2018 acquisitions, and there were no material changes from the prior year disclosure. While the valuations of consideration transferred, total assets acquired and liabilities assumed are substantially complete, the primary areas that remain preliminary relate to the fair values of deferred income taxes for acquisitions completed during fiscal 2019. Acquisitions are aggregated by year of purchase in the following table: Fiscal 2019 Acquisitions Fiscal 2018 Acquisitions (In thousands) Weighted-Average Intangible Asset Amortization Life (In Years) Total Weighted-Average Intangible Asset Amortization Life (In Years) Total Current assets $ 29,734 $ 28,939 Property, plant and equipment 22,607 10,875 Goodwill N/A 77,459 N/A 43,656 Trade names - indefinite lives N/A 14,033 N/A 15,096 Other intangible assets 10 59,748 12 36,450 Other long-term assets 3,095 81 Total Assets Acquired $ 206,676 $ 135,097 Liabilities assumed (36,083 ) (19,369 ) Net Assets Acquired $ 170,593 (1) $ 115,728 (2) (1) Figure includes cash acquired of $2.3 million. (2) Figure includes cash acquired of $3.3 million. Our Consolidated Financial Statements reflect the results of operations of acquired businesses as of their respective dates of acquisition. Pro-forma results of operations for the years ended May 31, 2019 and 2018 were not materially different from reported results and, consequently, are not presented. |
Foreign Currency | 4) Foreign Currency The functional currency for each of our foreign subsidiaries is its principal operating currency. Accordingly, for the periods presented, assets and liabilities have been translated using exchange rates at year end, while income and expense for the periods have been translated using a weighted-average exchange rate. The resulting translation adjustments have been recorded in accumulated other comprehensive income (loss), a component of stockholders’ equity, and will be included in net earnings only upon the sale or liquidation of the underlying foreign investment, neither of which is contemplated at this time. Transaction gains and losses increased during the last three fiscal years due to the strengthening of the U.S. dollar, resulting in net transactional foreign exchange losses for fiscal 2019, 2018 and 2017 of approximately $4.8 million, $12.3 million and $6.4 million, respectively. |
Cash and Cash Equivalents | 5) Cash and Cash Equivalents We consider all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. We do not believe we are exposed to any significant credit risk on cash and cash equivalents. The carrying amounts of cash and cash equivalents approximate fair value. |
Property, Plant & Equipment | 6 ) Property, Plant & Equipment May 31, 2019 2018 (In thousands) Land $ 88,638 $ 85,007 Buildings and leasehold improvements 459,542 445,017 Machinery and equipment 1,114,679 1,045,851 Total property, plant and equipment, at cost 1,662,859 1,575,875 Less: allowance for depreciation and amortization 843,648 795,569 Property, plant and equipment, net $ 819,211 $ 780,306 We review long-lived assets for impairment when circumstances indicate that the carrying values of these assets may not be recoverable. For assets that are to be held and used, an impairment charge is recognized when the estimated undiscounted future cash flows associated with the asset or group of assets are less than their carrying value. If impairment exists, an adjustment is made to write the asset down to its fair value, and a loss is recorded for the difference between the carrying value and the fair value. Fair values are determined based on quoted market values, discounted cash flows, internal appraisals or external appraisals, as applicable. Assets to be disposed of are carried at the lower of their carrying value or estimated net realizable value. Depreciation is computed primarily using the straight-line method over the following ranges of useful lives: Land improvements 1 to 50 years Buildings and improvements 1 to 50 years Machinery and equipment 1 to 33 years Total depreciation expense for each fiscal period includes the charges to income that result from the amortization of assets recorded under capital leases. |
Revenue Recognition | 7) Revenue Recognition 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 other construction contracts, we record contract revenues and related costs as our contracts progress on an over-time model. Effective June 1, 2018, we adopted Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers,” and all the related amendments included within Accounting Standards Codification 606 (“ASC 606”). Refer to Note A(19) for further information regarding the new revenue recognition standard. |
Shipping Costs | 8) Shipping Costs Shipping costs paid to third-party shippers for transporting products to customers are included in SG&A expenses. For the years ended May 31, 2019, 2018 and 2017, shipping costs were $173.6 million, $164.7 million and $148.9 million, respectively. |
Allowance for Doubtful Accounts Receivable | 9) Allowance for Doubtful Accounts Receivable An allowance for anticipated uncollectible trade receivable amounts is established using a combination of specifically identified accounts to be reserved and a reserve covering trends in collectibility. These estimates are based on an analysis of trends in collectibility and past experience, but are primarily made up of individual account balances identified as doubtful based on specific facts and conditions. Receivable losses are charged against the allowance when we determine uncollectibility. Actual collections of trade receivables could differ from our estimates due to changes in future economic or industry conditions or specific customer’s financial conditions. For the periods ended May 31, 2019, 2018 and 2017, bad debt expense approximated $18.6 million, $9.1 million and $16.0 million, respectively. The bad debt expense during fiscal 2017 reflected our reassessment of the collectibility of accounts receivable, particularly in emerging markets. The increase in bad debt expense during fiscal 2019 was primarily due to write-offs associated with our 2020 MAP to Growth initiatives. Refer to Note B, “Restructuring,” for further information. |
Inventories | 10) Inventories Inventories are stated at the lower of cost or net realizable value, cost being determined on a first-in, first-out (FIFO) basis and net realizable value being determined on the basis of replacement cost. Inventory costs include raw materials, labor and manufacturing overhead. We review the net realizable value of our inventory in detail on an on-going basis, with consideration given to various factors, which include our estimated reserves for excess, obsolete, slow-moving or distressed inventories. If actual market conditions differ from our projections, and our estimates prove to be inaccurate, write-downs of inventory values and adjustments to cost of sales may be required. Historically, our inventory reserves have approximated actual experience. During fiscal 2019, we recorded $10.5 million in charges resulting from more proactive management of inventory at our consumer segment and $10.0 million of inventory charges related to restructuring activities at our industrial segment. During fiscal 2018, our consumer reportable segment businesses were impacted by tighter inventory management at many of their top customers and, starting in mid-April, we made the determination to consolidate several divisions within certain consumer segment businesses, close two manufacturing facilities and eliminate approximately 154 positions. These actions were taken by new leadership in place at our Rust-Oleum business in order to streamline processes, reduce overhead, improve margins and reduce working capital. In relation to these initiatives, our consumer segment recognized $36.5 million of charges related to product line and SKU rationalization and related obsolete inventory identification during the fourth quarter of fiscal 2018. Additionally, during fiscal 2018, we incurred $1.2 million in inventory write-offs in connection with restructuring activities at our industrial reportable segment. Inventories were composed of the following major classes: May 31, 2019 2018 (In thousands) Raw material and supplies $ 296,493 $ 288,201 Finished goods 545,380 546,260 Total Inventory $ 841,873 $ 834,461 |
Goodwill and Other Intangible Assets | 11) Goodwill and Other Intangible Assets We account for goodwill and other intangible assets in accordance with the provisions of ASC 350 and account for business combinations using the acquisition method of accounting and, accordingly, the assets and liabilities of the entities acquired are recorded at their estimated fair values at the acquisition date. Goodwill represents the excess of the purchase price paid over the fair value of net assets acquired, including the amount assigned to identifiable intangible assets. We performed the required annual goodwill impairment assessments as of the first day of our fourth fiscal quarter at the reporting unit level. Our reporting units have been identified at the component level, which is the operating segment level or one level below. First, we assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The traditional two-step quantitative process is required only if we conclude that it is more likely than not that a reporting unit’s fair value is less than its carrying amount. However, we have an unconditional option to bypass a qualitative assessment and proceed directly to performing the traditional two-step quantitative analysis. We applied both the qualitative and traditional two-step quantitative processes during our annual goodwill impairment assessment performed during the fourth quarters of fiscal 2019, 2018 and 2017. The traditional two-step quantitative goodwill impairment assessment involves estimating the fair value of a reporting unit and comparing it with its carrying amount. If the carrying amount of the reporting unit exceeds its fair value, additional steps are followed to determine and recognize, if appropriate, an impairment loss. Calculating the fair value of the reporting units requires our significant use of estimates and assumptions. We estimate the fair values of our reporting units by applying a combination of third-party market-value indicators, when observable market data is available, and discounted future cash flows to each of our reporting unit’s projected EBITDA or adjusted EBITDA, which adjusts for one-off items impacting revenues and/or expenses that are not considered by management to be indicative of ongoing operations. In applying this methodology, we rely on a number of factors, including actual and forecasted operating results and market data. As a result of the annual impairment assessments performed for fiscal 2019 and 2018, there were no goodwill impairments, including no reporting units that were at risk of failing step one of the traditional two-step quantitative analysis. During fiscal 2017, we recorded a loss totaling $188.3 million for the impairment of goodwill and intangibles at our Kirker reporting unit within our consumer reportable segment. Additionally, we test all indefinite-lived intangible assets for impairment annually. We perform the required annual impairment assessments as of the first day of our fourth fiscal quarter. We may elect to first assess qualitative factors to determine whether it is more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying amount before applying traditional quantitative tests. We applied both qualitative and quantitative processes during our annual indefinite-lived intangible asset impairment assessments performed during the fourth quarters of fiscal 2019, 2018 and 2017. The annual impairment assessment involves estimating the fair value of each indefinite-lived asset and comparing it with its carrying amount. If the carrying amount of the intangible asset exceeds its fair value, we record an impairment loss equal to the difference. Calculating the fair value of the indefinite-lived assets requires our significant use of estimates and assumptions. We estimate the fair values of our intangible assets by applying a relief-from-royalty calculation, which includes discounted future cash flows related to each of our intangible asset’s projected revenues. In applying this methodology, we rely on a number of factors, including actual and forecasted revenues and market data. As a result of the assessments performed for fiscal 2019 and 2018, there were no impairments. Results of intangible asset impairment assessments performed during fiscal 2017 are outlined below. As described further in Note C, “Goodwill and Other Intangible Assets,” during fiscal 2019, as a result of interim impairment tests, we recorded other intangible asset impairment losses totaling $4.2 million, of which $2.0 million was recorded by our industrial reportable segment for impairment losses on trade names and approximately $2.2 million was recorded by our specialty reportable segment for impairment losses on customer-related intangibles. During fiscal 2017, we recorded a loss totaling $4.9 million for a trade name impairment in our consumer reportable segment. Should the future earnings and cash flows at our reporting units decline and/or discount rates increase, future impairment charges to goodwill and other intangible assets may be required. |
Advertising Costs | 12) Advertising Costs Advertising costs are charged to operations when incurred and are included in SG&A expenses. For the years ended May 31, 2019, 2018 and 2017, advertising costs were $57.5 million, $58.0 million and $52.3 million, respectively. |
Research and Development | 13) Research and Development Research and development costs are charged to operations when incurred and are included in SG&A expenses. The amounts charged to expense for the years ended May 31, 2019, 2018 and 2017 were $71.6 million, $69.7 million and $64.9 million, respectively. |
Stock-Based Compensation | 14) Stock-Based Compensation Stock-based compensation represents the cost related to stock-based awards granted to our employees and directors, which may include restricted stock and stock appreciation rights (“SARs”). We measure stock-based compensation cost at the date of grant, based on the estimated fair value of the award. We recognize the cost as expense on a straight-line basis (net of estimated forfeitures) over the related vesting period. Refer to Note J, “Stock-Based Compensation,” for further information. |
Investment (Income), Net | 15) Investment (Income), Net Investment (income), net, consists of the following components: Year Ended May 31, 2019 2018 2017 (In thousands) Interest (income) $ (4,885 ) $ (5,003 ) $ (4,620 ) Net loss (gain) on marketable securities 8,366 (11,704 ) (8,174 ) Other-than-temporary impairment on securities 420 Dividend (income) (4,211 ) (3,735 ) (1,610 ) Investment (income), net $ (730 ) $ (20,442 ) $ (13,984 ) Net Loss (Gain) on Marketable Securities During fiscal 2019, we recognized realized losses on sales of available-for-sale securities of $3.0 million, realized gains on trading securities of $0.5 million and unrealized losses on trading securities of $1.3 million. Also during the year ended May 31, 2019, we recognized unrealized losses of $4.6 million on marketable equity securities as a result of our adoption of ASU 2016-01. During fiscal 2018, we recognized gross realized gains and losses on sales of marketable securities of $11.9 million and $1.8 million, respectively. During fiscal 2017, we recognized gross realized gains and losses on sales of marketable securities of $12.6 million and $4.4 million, respectively. |
Other Expense (Income), Net | 16) Other Expense (Income), Net Other expense (income), net, consists of the following components: Year Ended May 31, 2019 2018 2017 (In thousands) Royalty expense (income), net $ (96 ) $ 404 $ 2,680 (Income) related to unconsolidated equity affiliates (332 ) (1,002 ) (1,013 ) Pension non-service costs 1,647 Loss on extinguishment of debt (a) 3,051 Other expense (income), net $ 4,270 $ (598 ) $ 1,667 (a) In connection with the redemption of all of our outstanding 2.25% convertible senior notes in November 2018, we recognized a loss of $3.1 million, due to the fair value remeasurement on the date of conversion. |
Income Taxes | 17) Income Taxes The provision for income taxes is calculated using the asset and liability method. Under the asset and liability method, deferred income taxes are recognized for the tax effect of temporary differences between the financial statement carrying amount of assets and liabilities and the amounts used for income tax purposes and for certain changes in valuation allowances. Valuation allowances are recorded to reduce certain deferred tax assets when, in our estimation, it is more likely than not that a tax benefit will not be realized. |
Earnings Per Share of Common Stock | 18) Earnings Per Share of Common Stock Earnings per share (EPS) is computed using the two-class method. The two-class method determines EPS for each class of common stock and participating securities according to dividends and dividend equivalents and their respective participation rights in undistributed earnings. Our unvested share-based payment awards that contain rights to receive non-forfeitable dividends are considered participating securities. Basic EPS of common stock is computed by dividing net income by the weighted-average number of shares of common stock outstanding for the period. Diluted EPS of common stock is computed on the basis of the weighted-average number of shares of common stock, plus the effect of dilutive potential shares of common stock outstanding during the period using the treasury stock method. Dilutive potential shares of common stock include outstanding SARS, restricted stock awards and convertible notes. See Note L, “Earnings Per Share of Common Stock,” for additional information. |
Other Recent Accounting Pronouncements | 19) Other Recent Accounting Pronouncements Effective June 1, 2018, we adopted ASU 2014-09, “Revenue from Contracts with Customers,” and all the related amendments included within ASC 606, using the modified retrospective method of adoption. Under the modified retrospective method, comparative periods are not restated. The new standard requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This update creates a five-step model that requires entities to exercise judgment when considering the terms of contract(s), which includes (i) identifying the contract(s) with the customer, (ii) identifying the separate performance obligations in the contract, (iii) determining the transaction price, (iv) allocating the transaction price to the separate performance obligations, and (v) recognizing revenue when each performance obligation is satisfied. As a result of our adoption procedures, we determined that revenue recognition for our broad portfolio of products and services will remain largely unchanged. Accordingly, our adoption of the new standard did not have a material impact on our overall Consolidated Financial Statements. Refer to Note Q, “Revenue,” and Note R, “Segment Information,” for additional information. In January 2016, the FASB issued ASU No. 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities,” which provides amended guidance for certain aspects of recognition, measurement and disclosure of financial instruments. The main provisions of the standard impact how we account for changes in the fair value of our marketable securities currently classified as available-for-sale. Unrealized gains and losses on available-for-sale equity securities are required to be recognized in earnings rather than in other comprehensive income. Our adoption of the new standard during fiscal 2019 did not have a material effect on our overall Consolidated Financial Statements. See Note D, “Marketable Securities,” and Note A(15), “Investment Expense (Income), Net,” for additional information. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” which increases lease transparency and comparability among organizations. Under the new standard, lessees will be required to recognize all assets and liabilities arising from leases on the balance sheet, with the exception of leases with a term of 12 months or less, which permits a lessee to make an accounting policy election by class of underlying asset not to recognize lease assets and liabilities. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and early adoption is permitted. In March 2018, the FASB approved an alternative transition method to the modified retrospective approach, which eliminates the requirement to restate prior period financial statements and requires the cumulative effect of the retrospective allocation to be recorded as an adjustment to the opening balance of retained earnings at the date of adoption. We will adopt the new leasing standard on the required effective date of June 1, 2019 using the alternative transition method as described above. We elected the “package of practical expedients” and have decided not to elect the “Hindsight” practical expedient. As a result, we will measure the right of use asset and lease liability for operating leases upon adoption using the remaining portion of the lease term. A cross-functional implementation team is finalizing policy elections, the discount rate to be used based on June 1, 2019 data, and business processes and controls to support recognition and disclosure under the new standard. The primary impact upon adoption will be the recognition of the right of use assets and lease liabilities, on a discounted basis, of our minimum lease obligations, as disclosed in Note M, “Leases.” As a result of our adoption procedures, we have determined that the new guidance will have a material impact on our Consolidated Balance Sheets and will not have a material effect on our Consolidated Statements of Income. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses,” which requires an organization to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Additionally, the standard amends the current available-for-sale security other-than-temporary impairment model for debt securities. The guidance is effective for fiscal years beginning after December 15, 2019 and for interim periods therein. Early adoption is permitted beginning after December 15, 2018. We are currently reviewing, but adoption of this guidance is not expected to have a material impact on our Consolidated Financial Statements. In August 2018, the SEC issued Final Rule Release No. 33-10532, “Disclosure Update and Simplification,” which makes a number of changes meant to simplify interim disclosures. The new rule requires a presentation of changes in stockholders’ equity and noncontrolling interest in the form of a reconciliation, either as a separate financial statement or in the notes to the financial statements, for the current and comparative year-to-date interim periods. The additional elements of this release did not have a material impact on our overall Consolidated Financial Statements. We adopted the new disclosure requirements in our Form 10-Q for the period ended February 28, 2019. In August 2016, the FASB issued ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments,” which makes a number of changes meant to add or clarify guidance on the classification of certain cash receipts and payments in the statement of cash flows. Our June 1, 2018 adoption of the new guidance, which we applied retrospectively to all periods presented, did not have a material impact on our Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017-01, “Business Combinations: Clarifying the Definition of a Business,” with the objective of adding guidance to assist entities in evaluating whether transactions should be accounted for as acquisitions (disposals) of assets or of businesses. We adopted the new guidance as of June 1, 2018 and do not expect this revised guidance to have a material impact on our Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017-04, “Simplifying the Test for Goodwill Impairment,” to eliminate step two from the goodwill impairment test in order to simplify the subsequent measurement of goodwill. The guidance is effective for fiscal years beginning after December 15, 2019. Early application is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. Adoption of this guidance is not expected to have a material impact on our Consolidated Financial Statements. In March 2017, the FASB issued ASU 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” which requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. Our June 1, 2018 adoption of the new guidance did not have a material impact on our Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820), – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement,” which makes a number of changes meant to add, modify or remove certain disclosure requirements associated with the movement amongst or hierarchy associated with Level 1, Level 2 and Level 3 fair value measurements. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted upon issuance of the update. We do not expect our adoption of this guidance to have a material impact on our Consolidated Financial Statements. 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, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted for all entities and the amendments in this update are required to be applied on a retrospective basis to all periods presented. We are currently reviewing, but adoption of this guidance is not expected to have a material impact on our Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-15, “Intangible—Goodwill and Other- Internal-Use Software (Subtopic 350-40), Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” The update makes a number of changes meant to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement (hosting arrangement), by providing guidance in determining when the arrangement includes a software license. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Our early adoption of this revised guidance as of June 1, 2018 did not have a material impact on our Consolidated Financial Statements. |
Subsequent Event | 20) Subsequent Event Business Segment Information We report the results of our operations through three reportable segments: the industrial reportable segment, the consumer reportable segment and the specialty reportable segment. Effective June 1, 2019, we realigned certain businesses and management structure to recognize how we allocate resources and analyze the operating performance of our operating segments. This realignment did not change our reportable segments at May 31, 2019. Rather, our periodic filings beginning with our first quarter ending August 31, 2019 will include historical segment results reclassified to reflect the effect of this realignment under four reportable segments, including: Construction Products Group, Performance Coatings Group, Consumer Products Group and Specialty Products Group. Acquisition Information Subsequent to the end of the current fiscal year, on June 12, 2019, we acquired the stock of Schul International Co., LLC, a manufacturer of joint sealants for commercial construction, and Willseal LLC, a business that markets and sells Schul products. Both companies are headquartered in Hudson, New Hampshire, and have combined annual net sales of approximately $15.0 million. This fiscal 2020 acquisition will report through our new Construction Products Group reportable segment. Share Repurchases From June 1, 2019 through July 19, 2019, we have repurchased 1,655,616 shares of RPM common stock since May 31, 2019, at a cost of approximately $100 million, or an average of $60.40 per share, under the stock repurchase program described further in Note I, “Common Stock.” |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
May 31, 2019 | |
Accounting Policies [Abstract] | |
Asset Acquired and Liabilities Assumed on Acquisition | Acquisitions are aggregated by year of purchase in the following table: Fiscal 2019 Acquisitions Fiscal 2018 Acquisitions (In thousands) Weighted-Average Intangible Asset Amortization Life (In Years) Total Weighted-Average Intangible Asset Amortization Life (In Years) Total Current assets $ 29,734 $ 28,939 Property, plant and equipment 22,607 10,875 Goodwill N/A 77,459 N/A 43,656 Trade names - indefinite lives N/A 14,033 N/A 15,096 Other intangible assets 10 59,748 12 36,450 Other long-term assets 3,095 81 Total Assets Acquired $ 206,676 $ 135,097 Liabilities assumed (36,083 ) (19,369 ) Net Assets Acquired $ 170,593 (1) $ 115,728 (2) (1) Figure includes cash acquired of $2.3 million. (2) Figure includes cash acquired of $3.3 million. |
Property, Plant and Equipment | May 31, 2019 2018 (In thousands) Land $ 88,638 $ 85,007 Buildings and leasehold improvements 459,542 445,017 Machinery and equipment 1,114,679 1,045,851 Total property, plant and equipment, at cost 1,662,859 1,575,875 Less: allowance for depreciation and amortization 843,648 795,569 Property, plant and equipment, net $ 819,211 $ 780,306 |
Useful Lives | Depreciation is computed primarily using the straight-line method over the following ranges of useful lives: Land improvements 1 to 50 years Buildings and improvements 1 to 50 years Machinery and equipment 1 to 33 years |
Major Classes of Inventories | Inventories were composed of the following major classes: May 31, 2019 2018 (In thousands) Raw material and supplies $ 296,493 $ 288,201 Finished goods 545,380 546,260 Total Inventory $ 841,873 $ 834,461 |
Investment (Income), Net | Investment (income), net, consists of the following components: Year Ended May 31, 2019 2018 2017 (In thousands) Interest (income) $ (4,885 ) $ (5,003 ) $ (4,620 ) Net loss (gain) on marketable securities 8,366 (11,704 ) (8,174 ) Other-than-temporary impairment on securities 420 Dividend (income) (4,211 ) (3,735 ) (1,610 ) Investment (income), net $ (730 ) $ (20,442 ) $ (13,984 ) |
Other Expense (Income), Net | Other expense (income), net, consists of the following components: Year Ended May 31, 2019 2018 2017 (In thousands) Royalty expense (income), net $ (96 ) $ 404 $ 2,680 (Income) related to unconsolidated equity affiliates (332 ) (1,002 ) (1,013 ) Pension non-service costs 1,647 Loss on extinguishment of debt (a) 3,051 Other expense (income), net $ 4,270 $ (598 ) $ 1,667 (a) In connection with the redemption of all of our outstanding 2.25% convertible senior notes in November 2018, we recognized a loss of $3.1 million, due to the fair value remeasurement on the date of conversion. |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
May 31, 2019 | |
Restructuring And Related Activities [Abstract] | |
Summary of Charges Recorded in Connection with Restructuring by Reportable Segment | A summary of the charges recorded in connection with restructuring by reportable segment during is as follows: Year Ended Year Ended Cumulative Costs Total Expected (in thousands) May 31, 2019 May 31, 2018 to Date Costs Industrial Segment: Severance and benefit costs (a) $ 14,032 $ 2,169 $ 16,201 $ 21,123 Facility closure and other related costs 5,398 1,045 6,443 10,532 Other asset write-offs 569 1,373 1,942 2,873 Total Charges $ 19,999 $ 4,587 $ 24,586 $ 34,528 Consumer Segment: Severance and benefit costs (b) $ 2,516 $ 5,652 $ 8,168 $ 8,168 Facility closure and other related costs 2,445 5,139 7,584 12,200 Other asset write-offs 998 - 998 1,212 Total Charges $ 5,959 $ 10,791 $ 16,750 $ 21,580 Specialty Segment: Severance and benefit costs (c) $ 5,987 $ - $ 5,987 $ 8,488 Facility closure and other related costs 352 - 352 4,351 Other asset write-offs 29 - 29 347 Total Charges $ 6,368 $ - $ 6,368 $ 13,186 Corporate/Other Segment: Severance and benefit costs (d) $ 9,984 $ 2,136 $ 12,120 $ 12,120 Total Charges $ 9,984 $ 2,136 $ 12,120 $ 12,120 Consolidated: Severance and benefit costs $ 32,519 $ 9,957 $ 42,476 $ 49,899 Facility closure and other related costs 8,195 6,184 14,379 27,083 Other asset write-offs 1,596 1,373 2,969 4,432 Total Charges $ 42,310 $ 17,514 $ 59,824 $ 81,414 a) Fiscal 2019 and 2018 charges of $14.0 million and $2.2 million, respectively, are associated with the elimination of and 28 positions during fiscal 2019 and 2018, respectively. Additionally, $0.2 million included in the current-year charges are associated with the prior elimination of one position within the legal function during fiscal 2018. b) Fiscal 2019 and 2018 charges of $2.5 million and $5.7 million, respectively, are associated with the elimination of and 155 positions during fiscal 2019 and 2018, respectively. c) Fiscal 2019 c harges of $6.0 million are associated with the elimination of positions. There were no such charges in fiscal 2018. d) Reflects current-year charges related to the severance of two two four three |
Summary of Activity in Restructuring Reserves | A summary of the activity in the restructuring reserves related to the 2020 MAP to Growth plan is as follows: (in thousands) Severance and Benefits Costs Facility Closure and Other Related Costs Other Asset Write-Offs Total Balance at June 1, 2017 $ - $ - $ - $ - Additions charged to expense 9,957 6,184 1,373 17,514 Balance at May 31, 2018 $ 9,957 $ 6,184 $ 1,373 $ 17,514 (in thousands) Severance and Benefits Costs Facility Closure and Other Related Costs Other Asset Write-Offs Total Balance at June 1, 2018 $ 9,957 $ 6,184 $ 1,373 $ 17,514 Additions charged to expense 32,519 8,195 1,596 42,310 Cash payments charged against reserve (31,219 ) (3,019 ) - (34,238 ) Non-cash charges included above (e) (6,420 ) (3,503 ) (2,969 ) (12,892 ) Balance at May 31, 2019 $ 4,837 $ 7,857 $ - $ 12,694 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
May 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill, by Reportable Segment | The changes in the carrying amount of goodwill, by reportable segment, for the years ended May 31, 2019 and 2018, are as follows: Industrial Consumer Specialty (In thousands) Segment Segment Segment Total Balance as of June 1, 2017 $ 516,335 $ 453,600 $ 173,978 $ 1,143,913 Acquisitions 19,736 21,277 2,643 43,656 Translation adjustments 1,247 2,841 517 4,605 Balance as of May 31, 2018 537,318 477,718 177,138 1,192,174 Acquisitions 5,826 25,994 45,639 77,459 Translation adjustments (16,725 ) (4,325 ) (2,821 ) (23,871 ) Balance as of May 31, 2019 $ 526,419 $ 499,387 $ 219,956 $ 1,245,762 |
Other Intangible Assets Major Classes | Other intangible assets consist of the following major classes: Gross Net Other Amortization Carrying Accumulated Intangible (In thousands) Period (In Years) Amount Amortization Assets As of May 31, 2019 Amortized intangible assets Formulae 9 to 33 $ 227,208 $ (150,091 ) $ 77,117 Customer-related intangibles 5 to 33 413,475 (172,238 ) 241,237 Trademarks/names 5 to 40 32,998 (16,867 ) 16,131 Other 1 to 33 36,709 (26,599 ) 10,110 Total Amortized Intangibles 710,390 (365,795 ) 344,595 Indefinite-lived intangible assets Trademarks/names 256,487 256,487 Total Other Intangible Assets $ 966,877 $ (365,795 ) $ 601,082 As of May 31, 2018 Amortized intangible assets Formulae 10 to 33 $ 221,812 $ (140,160 ) $ 81,652 Customer-related intangibles 5 to 33 369,687 (147,831 ) 221,856 Trademarks/names 5 to 40 36,671 (17,998 ) 18,673 Other 2 to 30 37,589 (24,946 ) 12,643 Total Amortized Intangibles 665,759 (330,935 ) 334,824 Indefinite-lived intangible assets Trademarks/names 249,448 249,448 Total Other Intangible Assets $ 915,207 $ (330,935 ) $ 584,272 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
May 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Available-for-Sale Marketable Securities by Asset Type | The following tables summarize marketable securities held at May 31, 2019 and 2018 by asset type: Available-For-Sale Securities (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Net Carrying Amount) May 31, 2019 Fixed maturity: U.S. treasury and other government $ 24,483 $ 372 $ (308 ) $ 24,547 Corporate bonds 422 43 (3 ) 462 Total available-for-sale securities $ 24,905 $ 415 $ (311 ) $ 25,009 Available-For-Sale Securities (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Net Carrying Amount) May 31, 2018 Equity securities: Mutual funds - foreign $ 46,123 $ 1,839 $ (1,197 ) $ 46,765 Mutual funds - domestic 99,833 727 (2,770 ) 97,790 Total equity securities 145,956 2,566 (3,967 ) 144,555 Fixed maturity: U.S. treasury and other government 23,562 39 (552 ) 23,049 Corporate bonds 432 43 (8 ) 467 Total fixed maturity securities 23,994 82 (560 ) 23,516 Total $ 169,950 $ 2,648 $ (4,527 ) $ 168,071 |
Summary of Available-for-Sale Securities in Unrealized Loss Position and Included in Accumulated Other Comprehensive (Loss), Aggregated by Length of Time Investments | Summarized below are the available-for-sale securities we held at May 31, 2019 and 2018 that were in an unrealized loss position and that were included in accumulated other comprehensive income (loss), aggregated by the length of time the investments had been in that position: May 31, 2019 May 31, 2018 (In thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Total investments with unrealized losses $ 11,508 $ (311 ) $ 106,253 $ (4,527 ) Unrealized losses with a loss position for less than 12 months 806 (2 ) 68,376 (1,570 ) Unrealized losses with a loss position for more than 12 months 10,702 (309 ) 37,877 (2,957 ) |
Net Carrying Values of Debt Securities by Contractual Maturity | The net carrying values of available-for-sale debt securities at May 31, 2019, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties. (In thousands) Amortized Cost Fair Value Due: Less than one year $ 8,594 $ 8,563 One year through five years 10,886 10,836 Six years through ten years 4,468 4,582 After ten years 957 1,028 $ 24,905 $ 25,009 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
May 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis and Categorized using Fair Value Hierarchy | 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 thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value at May 31, 2019 Available-for-sale debt securities: U.S. Treasury and other government $ - $ 24,547 $ - $ 24,547 Corporate bonds 462 462 Total available-for-sale debt securities - 25,009 - 25,009 Trading and other equity securities: Mutual funds - foreign 32,082 32,082 Mutual funds - domestic 67,739 67,739 Total trading and other equity securities - 99,821 - 99,821 Contingent consideration (21,551 ) (21,551 ) Total $ - $ 124,830 $ (21,551 ) $ 103,279 (In thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value at May 31, 2018 U.S. Treasury and other government $ - $ 23,049 $ - $ 23,049 Corporate bonds 467 467 Mutual funds - foreign 47,410 47,410 Mutual funds - domestic 107,017 107,017 Contingent consideration (17,998 ) (17,998 ) Total $ - $ 177,943 $ (17,998 ) $ 159,945 |
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 May 31, 2019 and 2018 are as follows: At May 31, 2019 (In thousands) Carrying Value Fair Value Cash and cash equivalents $ 223,168 $ 223,168 Marketable equity securities 87,525 87,525 Marketable debt securities 25,009 25,009 Long-term debt, including current portion 2,525,908 2,526,817 At May 31, 2018 (In thousands) Carrying Value Fair Value Cash and cash equivalents $ 244,422 $ 244,422 Marketable equity securities 144,555 144,555 Marketable debt securities 23,516 23,516 Long-term debt, including current portion 2,174,144 2,215,458 |
Derivatives and Hedging (Tables
Derivatives and Hedging (Tables) | 12 Months Ended |
May 31, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
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 May 31, 2019 and May 31, 2018 are as follows: (In thousands) Fair Value Derivatives Designated as Hedging Instruments Balance Sheet Location May 31, 2019 May 31, 2018 Assets: Foreign Currency Exchange (Cash Flow) Other Current Assets - 133 Interest Rate Swap (Fair Value) Other Current Assets 513 - Cross Currency Swap (Net Investment) Other Current Assets 2,482 2,580 Cross Currency Swap (Net Investment) Other Assets (Long-Term) 6,163 1,986 Liabilities: Interest Rate Swap (Fair Value) Other Accrued Liabilities 230 441 Cross Currency Swap (Net Investment) Other Long-Term Liabilities 4,276 5,293 Interest Rate Swap (Fair Value) Other Long-Term Liabilities - 2,634 (In thousands) Fair Value Derivatives Not Designated as Hedging Instruments Balance Sheet Location May 31, 2019 May 31, 2018 Assets: Foreign Currency Exchange Other Current Assets 51 7 Liabilities: Foreign Currency Exchange Other Accrued Liabilities - 2,985 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
May 31, 2019 | |
Debt Disclosure [Abstract] | |
Description of Long-Term Debt | A description of long-term debt follows: May 31, 2019 2018 (In thousands) Revolving credit facility with a syndicate of banks, through October 31, 2023(1) $ 336,442 $ 235,774 Accounts receivable securitization program with two banks, through May 8, 2020 (2) 99,887 - Unsecured 6.125% senior notes due October 15, 2019(3) 450,454 451,658 Unsecured $205,000 face value at maturity 2.25% senior convertible notes due December 15, 2020 - 196,865 Unsecured 3.45% senior notes due November 15, 2022 299,257 295,596 Unsecured 3.75% notes due March 15, 2027 (4) 396,586 396,110 Unsecured 4.55% senior notes due March 1, 2029(5) 346,006 - Unsecured 5.25% notes due June 1, 2045(6) 298,589 298,514 Unsecured 4.25% notes due January 15, 2048 (7) 296,467 296,344 Other obligations, including capital leases and unsecured notes payable at various rates of interest due in installments through 2021 2,220 3,283 2,525,908 2,174,144 Less: current portion 552,446 3,501 Total Long-Term Debt, Less Current Maturities $ 1,973,462 $ 2,170,643 (1) Interest at May 31, 2019 was tied to LIBOR and averaged 3.6805% for USD denominated debt ($14,268), 2.69% for AUD denominated debt ($34,558), 3.23% on CAD denominated debt ($131,738) and 1.25% on EUR denominated debt ($159,745). Interest was tied to AUD at May 31, 2018, and averaged 2.925% for AUD denominated debt ($23,309) and 0.675% on EUR denominated debt ($213,708). At May 31, 2019 and 2018, the revolving credit facility is adjusted for debt issuance costs, net of amortization, for approximately $3.9 million and $1.2 million, respectively. ( 2 ) At May 31, 2019, the accounts receivable securitization program is adjusted for debt issuance cost, net of amortization, for approximately $0.1 million. (3) Includes the combination of the October 2009 initial issuance of $300.0 million aggregate principal amount and the May 2011 issuance of an additional $150.0 million aggregate principal amount of these notes. The effective interest rate on the notes issued in October 2009, including the amortization of the discount, is 6.139%. The additional $150.0 million aggregate principal amount of the notes due 2019 issued in May 2011 is adjusted for the unamortized premium received at issuance, which approximated $0.7 million and $2.3 million at May 31, 2019 and 2018, respectively. The premium effectively increased the proceeds from the financing. The effective interest rate on the $150.0 million notes issued in May 2011 is 4.934%. At May 31, 2019 and 2018, the notes are adjusted for debt issuance costs, net of amortization, for approximately $0.2 million and $0.6 million, respectively. ( 4 ) The $400.0 million face amount of the notes due 2027 is adjusted for the amortization of the original issue discount, which approximated $0.4 million and $0.5 million at May 31, 2019 and 2018, respectively. The original issue discount effectively reduced the ultimate proceeds from the financing. The effective interest rate on the notes, including the amortization of the discount, is 3.767%. At May 31, 2019 and 2018, the notes are adjusted for debt issuance costs, net of amortization, for approximately $3.0 million and $3.4 million, respectively. ( 5 ) The $350.0 million aggregate principal amount of the notes due 2029 is adjusted for the amortization of the original issue discount, which approximated $0.5 million at May 31, 2019. The original issue discount effectively reduced the ultimate proceeds from the financing. The effective interest rate on the notes, including the amortization of the discount, was 4.568%. At May 31, 2019, the notes were adjusted for debt issuance costs, net of amortization, for approximately $3.5 million. ( 6 ) The $250.0 million face amount of the notes due 2045 is adjusted for the amortization of the original issue discount, which approximated $1.4 million at May 31, 2019 and 2018. The original issue discount effectively reduced the ultimate proceeds from the financing. The effective interest rate on the notes, including the amortization of the discount, is 5.29%. In March 2017, as a further issuance of the 5.25% notes due 2045, we closed an offering of $50.0 million aggregate principal, which is adjusted for the unamortized premium received at issuance, which approximated $3.0 million at May 31, 2019 and 2018. The premium effectively increased the proceeds from the financing. The effective interest rate on the $50.0 million notes issued March 2017 is 4.839%. At May 31, 2019 and 2018, the notes are adjusted for debt issuance costs, net of amortization, for approximately $3.0 million and $3.1 million, respectively. ( 7 ) The $300.0 million face amount of the notes due 2048 is adjusted for the debt issuance cost, net of amortization, which approximated $3.5 million and $3.6 million at May 31, 2019 and 2018, respectively. The effective interest rate on the notes is 4.25%. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
May 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income before Income Taxes | Income before income taxes as shown in the Consolidated Statements of Income is summarized below for the periods indicated. Year Ended May 31, 2019 2018 2017 (In thousands) United States $ 215,201 $ 228,976 $ 133,356 Foreign 124,644 188,072 110,977 Income Before Income Taxes $ 339,845 $ 417,048 $ 244,333 |
Provision (Benefit) for Income Tax | Provision (benefit) for income taxes consists of the following for the periods indicated: Year Ended May 31, 2019 2018 2017 (In thousands) Current: U.S. federal $ 20,388 $ 27,206 $ 3,024 State and local 8,623 8,617 5,115 Foreign 37,713 52,658 27,474 Total Current 66,724 88,481 35,613 Deferred: U.S. federal 15,298 (8,054 ) 15,553 State and local 1,414 4,832 1,928 Foreign (11,278 ) (7,468 ) 6,568 Total Deferred 5,434 (10,690 ) 24,049 Provision for Income Taxes $ 72,158 $ 77,791 $ 59,662 |
Significant Components of Deferred Income Tax Assets and Liabilities | The significant components of deferred income tax assets and liabilities as of May 31, 2019 and 2018 were as follows: 2019 2018 (In thousands) Deferred income tax assets related to: Inventories $ 8,970 $ 12,491 Allowance for losses 7,524 5,349 Accrued compensation and benefits 14,364 14,812 Accrued other expenses 17,036 14,427 Other long-term liabilities 15,947 15,921 Credit and net operating and capital loss carryforwards 63,395 52,687 Net unrealized loss on securities 12,391 10,236 Pension and other postretirement benefits 42,991 39,863 Total Deferred Income Tax Assets 182,618 165,786 Less: valuation allowances (55,274 ) (51,540 ) Net Deferred Income Tax Assets 127,344 114,246 Deferred income tax (liabilities) related to: Depreciation (72,387 ) (62,202 ) Amortization of intangibles (116,097 ) (114,284 ) Unremitted foreign earnings (18,795 ) (19,886 ) Total Deferred Income Tax (Liabilities) (207,279 ) (196,372 ) Deferred Income Tax Assets (Liabilities), Net $ (79,935 ) $ (82,126 ) |
Reconciliation of Income Tax Expense (Benefit) Computed by Applying U.S. Statutory Federal Income Tax Rate against Income (Loss) before Income Taxes to Provision (Benefit) for Income Taxes | The following table reconciles income tax expense (benefit) computed by applying the U.S. statutory federal income tax rate against income (loss) before income taxes to the provision (benefit) for income taxes: Year Ended May 31, 2019 2018 2017 (In thousands, except percentages) Income tax expense at the U.S. statutory federal income tax rate $ 71,367 $ 121,812 $ 85,517 Impact of foreign operations (1,571 ) (16,276 ) (20,156 ) State and local income taxes, net 7,224 9,520 4,734 Impact of global intangible low-taxed income 5,772 Domestic manufacturing deduction - (4,839 ) (2,537 ) Nondeductible business expense 2,259 2,473 2,394 Valuation allowance 7,021 (5,235 ) 933 Deferred tax liability for unremitted foreign earnings - (77,970 ) (621 ) Changes in unrecognized tax benefits (8,480 ) Other 1,195 737 1,476 Equity-based compensation (4,496 ) (4,652 ) (12,078 ) Transition tax liability (1,868 ) 67,899 - Remeasurement of U.S. deferred income taxes (6,265 ) (15,678 ) - Provision for Income Tax Expense $ 72,158 $ 77,791 $ 59,662 Effective Income Tax Rate 21.2 % 18.7 % 24.4 % |
Activity Related to Unrecognized Tax Benefits | Uncertain income tax positions are accounted for in accordance with ASC 740. The following table summarizes the activity related to unrecognized tax benefits: (In millions) 2019 2018 2017 Balance at June 1 $ 14.1 $ 13.2 $ 13.7 Additions based on tax positions related to current year 0.1 5.1 0.2 Additions for tax positions of prior years 2.0 - 2.9 Reductions for tax positions of prior years (7.9 ) (4.5 ) (3.2 ) Foreign currency translation (0.2 ) 0.3 (0.4 ) Balance at May 31 $ 8.1 $ 14.1 $ 13.2 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
May 31, 2019 | |
Stock-Based Compensation Expense Included in Consolidated Statements of Income | The following table represents total stock-based compensation expense included in our Consolidated Statements of Income: Year Ended May 31, 2019 2018 2017 (In thousands) Stock-based compensation expense, included in SG&A $ 31,154 $ 25,440 $ 32,541 Stock-based compensation expense, included in restructuring expense 4,283 2,136 - Total stock-based compensation cost 35,437 27,576 32,541 Income tax (benefit) (6,937 ) (7,178 ) (10,159 ) Total stock-based compensation cost, net of tax $ 28,500 $ 20,398 $ 22,382 |
Summary of Weighted-Average Assumptions Related to SARs Grants | The following is a summary of our weighted-average assumptions related to SARs grants made during the last three fiscal years: Year Ended May 31, 2019 2018 2017 Risk-free interest rate 2.9 % 2.2 % 1.5 % Expected life of option 6.5 yrs 7.0 yrs 7.0 yrs Expected dividend yield 2.1 % 2.2 % 2.2 % Expected volatility rate 25.2 % 26.2 % 25.7 % |
Summary of Option and Share-Based Payment Activity | The following table summarizes option and share-based payment activity (including SARs) under these plans during the fiscal year ended May 31, 2019: 2019 Share-Based Payments Weighted Average Exercise Price Number of Shares Under Option (Shares in thousands) Balance at June 1, 2018 $ 43.36 3,207 Options granted 60.01 480 Options exercised 40.74 (590 ) Balance at May 31, 2019 46.44 3,097 Exercisable at May 31, 2019 $ 41.87 2,085 SARs 2019 2018 2017 (In millions, except per share amounts) Weighted-average grant-date fair value per SAR $ 14.08 $ 12.90 $ 10.90 Intrinsic value of options exercised $ 9.29 $ 11.10 $ 26.50 Tax benefit from options exercised $ 3.21 $ 3.40 $ 9.70 Fair value of SARS vested $ 9.30 $ 6.50 $ 4.60 |
Directors Equity Incentive Plan 2003 | |
Summary of Share-Based Performance Earned Restricted Stock Activity and Restricted Stock Units | The following table summarizes the share-based activity under the 2003 Plan during fiscal 2019: Weighted-Average Grant-Date Fair Value 2019 (Shares in thousands) Balance at June 1, 2018 $ 48.56 67 Shares granted to directors 60.50 23 Shares vested 47.21 (35 ) Balance at May 31, 2019 $ 54.56 55 |
2007 Plan and 2014 Omnibus Plan | |
Summary of Share-Based Performance Earned Restricted Stock Activity and Restricted Stock Units | The following table sets forth such awards for the year ended May 31, 2019: Weighted-Average Grant-Date Fair Value 2019 (Shares in thousands) Balance at June 1, 2018 $ 26.42 702 Shares granted 60.01 39 Shares forfeited - - Shares exercised 26.12 (309 ) Balance at May 31, 2019 $ 31.73 432 |
Performance Earned Restricted Stock Awards | |
Summary of Share-Based Performance Earned Restricted Stock Activity and Restricted Stock Units | The following table summarizes the share-based performance-earned restricted stock (“PERS”) and performance stock units (“PSUs”) activity during the fiscal year ended May 31, 2019: Weighted-Average Grant-Date Fair Value 2019 (Shares in thousands) Balance at June 1, 2018 $ 48.97 1,047 Shares granted 60.36 440 Shares forfeited 57.99 (34 ) Shares vested 48.65 (624 ) Balance at May 31, 2019 $ 54.90 829 |
Nonvested Shares | |
Summary of Share-Based Performance Earned Restricted Stock Activity and Restricted Stock Units | The following table summarizes the activity for all nonvested restricted shares during the year ended May 31, 2019: Weighted-Average Grant-Date Fair Number of (Shares in thousands) Value Shares Balance at June 1, 2018 $ 45.85 1,755 Granted 60.34 503 Vested 45.44 (833 ) Forfeited 47.98 (334 ) Balance at May 31, 2019 $ 52.35 1,091 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
May 31, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive income (loss) consists of the following components: Pension And Other Postretirement Unrealized Unrealized Foreign Benefit Gain Gain (Loss) Currency Liability (Loss) On On Translation Adjustments, Derivatives, Securities, (In thousands) Adjustments Net of Tax Net of Tax Net of Tax Total Balance at June 1, 2016 $ (291,233 ) $ (208,206 ) $ - $ (2,608 ) $ (502,047 ) Reclassification adjustments for gains included in net income, net of taxes of $401 - (1,847 ) (1,847 ) Other comprehensive income (20,358 ) 66,264 16 7,849 53,771 Deferred taxes 3,176 (24,782 ) - (2,257 ) (23,863 ) Balance at May 31, 2017 (308,415 ) (166,724 ) 16 1,137 (473,986 ) Reclassification adjustments for gains included in net income, net of taxes of $591 - (1,244 ) (1,244 ) Other comprehensive income 10,989 11,375 (359 ) (2,050 ) 19,955 Deferred taxes (2,587 ) (2,146 ) 212 748 (3,773 ) Balance at May 31, 2018 (300,013 ) (157,495 ) (131 ) (1,409 ) (459,048 ) Reclassification adjustments for losses included in net income, net of taxes of $151 1,777 1,777 Other comprehensive income (73,660 ) (70,785 ) 4,713 307 (139,425 ) Deferred taxes 3,178 16,635 (203 ) (542 ) 19,068 Balance at May 31, 2019 $ (370,495 ) $ (211,645 ) $ 4,379 $ 133 $ (577,628 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
May 31, 2019 | |
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 years ended May 31, 2019, 2018 and 2017: Year Ended May 31, 2019 2018 2017 (In thousands, except per share amounts) Numerator for earnings per share: Net income attributable to RPM International Inc. stockholders $ 266,558 $ 337,770 $ 181,823 Less: Allocation of earnings and dividends to participating securities (1,514 ) (3,858 ) (2,795 ) Net income available to common shareholders - basic 265,044 333,912 179,028 Add: Undistributed earnings reallocated to unvested shareholders 2 Reverse: Allocation of earnings and dividends to participating securities 1,514 3,858 Add: Income effect of contingently issuable shares 3,655 5,673 5,457 Net income available to common shareholders - diluted $ 270,213 $ 343,443 $ 184,487 Denominator for basic and diluted earnings per share: Basic weighted average common shares (1) 130,552 131,179 130,662 Average diluted options 1,838 2,064 598 Net issuable common share equivalents (2) 1,943 3,928 3,905 Total shares for diluted earnings per share (1), (3) 134,333 137,171 135,165 Earnings Per Share of Common Stock Attributable to RPM International Inc. Stockholders: Basic Earnings Per Share of Common Stock $ 2.03 $ 2.55 $ 1.37 Diluted Earnings Per Share of Common Stock $ 2.01 $ 2.50 $ 1.36 (1) For the year ended May 31, 2019 and 2018, basic and diluted earnings per share are calculated under the two-class method and the treasury method, respectively, as those methods resulted in the most dilutive earnings per share. For the year ended May 31, 2017, b (2) Represents the number of shares that would be issued if our contingently convertible notes had been converted. We included these shares in the calculation of diluted EPS as the conversion of the notes were eligible to be settled, at our election, in cash, shares of our common stock, or a combination of cash and shares of our common stock. On November 27, 2018, we redeemed all of our 2.25% convertible senior notes due 2020, primarily for cash, but also issued 598,601 shares of our common stock in the transaction. (3) For the years ended May 31, 2019, 2018 and 2017, approximately 862,500, 799,362 and 606,048 shares of stock, respectively, granted under stock-based compensation plans were excluded from the calculation of diluted EPS, as the effect would have been anti-dilutive. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
May 31, 2019 | |
Leases [Abstract] | |
Future Minimum Lease Commitments under Non-Cancelable Lease Agreements | The following table illustrates our future minimum lease commitments under all non-cancelable lease agreements, for each of the next five years and in the aggregate, as of May 31, 2019: May 31, (In thousands) 2020 $ 59,163 2021 49,731 2022 40,339 2023 32,798 2024 27,716 Thereafter 119,607 Total Minimum Lease Commitments $ 329,354 |
Pension Plans (Tables)
Pension Plans (Tables) - Pension Benefits | 12 Months Ended |
May 31, 2019 | |
Components of Net Periodic Pension and Postretirement Costs | Net periodic pension cost consisted of the following for the year ended May 31: U.S. Plans Non-U.S. Plans (In thousands) 2019 2018 2017 2019 2018 2017 Service cost $ 37,528 $ 37,859 $ 37,603 $ 4,693 $ 4,620 $ 4,070 Interest cost 21,987 17,518 17,323 5,420 5,025 4,614 Expected return on plan assets (33,867 ) (32,342 ) (25,007 ) (7,907 ) (8,270 ) (7,109 ) Amortization of: Prior service cost 118 117 217 (30 ) (31 ) (24 ) Net actuarial losses recognized 13,087 14,470 22,160 1,229 1,758 2,150 Curtailment/settlement losses 89 128 904 Net Pension Cost $ 38,853 $ 37,622 $ 52,296 $ 3,494 $ 3,230 $ 4,605 |
Changes in Benefit Obligations and Plan Assets | The changes in benefit obligations and plan assets, as well as the funded status of our pension plans at May 31, 2019 and 2018, were as follows: U.S. Plans Non-U.S. Plans (In thousands) 2019 2018 2019 2018 Benefit obligation at beginning of year $ 617,255 $ 591,948 $ 194,149 $ 195,884 Service cost 37,528 37,859 4,693 4,620 Interest cost 21,987 17,518 5,420 5,025 Benefits paid (45,917 ) (34,368 ) (7,488 ) (6,545 ) Participant contributions 1,003 980 Plan amendments 11 (33 ) (61 ) Plan settlements/curtailments (607 ) (2,984 ) Actuarial (gains)/losses 29,413 4,298 17,286 (9,523 ) Premiums paid (97 ) (106 ) Currency exchange rate changes (8,359 ) 6,859 Benefit Obligation at End of Year $ 660,277 $ 617,255 $ 205,967 $ 194,149 Fair value of plan assets at beginning of year $ 487,233 $ 437,481 $ 188,960 $ 179,928 Actual return on plan assets (2,272 ) 30,291 6,737 3,166 Employer contributions 57,821 53,829 6,770 7,460 Participant contributions 1,003 980 Benefits paid (45,917 ) (34,368 ) (7,488 ) (6,545 ) Premiums paid (97 ) (106 ) Plan settlements/curtailments (580 ) (2,267 ) Currency exchange rate changes (8,193 ) 6,344 Fair Value of Plan Assets at End of Year $ 496,865 $ 487,233 $ 187,112 $ 188,960 (Deficit) of plan assets versus benefit obligations at end of year $ (163,412 ) $ (130,022 ) $ (18,855 ) $ (5,189 ) Net Amount Recognized $ (163,412 ) $ (130,022 ) $ (18,855 ) $ (5,189 ) Accumulated Benefit Obligation $ 553,392 $ 510,984 $ 192,533 $ 181,462 |
Amounts Recognized in Consolidated Balance Sheet | Amounts recognized in the Consolidated Balance Sheets for the years ended May 31, 2019 and 2018 are as follows: U.S. Plans Non-U.S. Plans (In thousands) 2019 2018 2019 2018 Noncurrent assets $ - $ - $ 9,047 $ 10,483 Current liabilities (8 ) (7 ) (435 ) (421 ) Noncurrent liabilities (163,404 ) (130,015 ) (27,467 ) (15,251 ) Net Amount Recognized $ (163,412 ) $ (130,022 ) $ (18,855 ) $ (5,189 ) |
Relationship between Plans Benefit Obligations and Assets | The following table summarizes the relationship between our plans' benefit obligations and assets: U.S. Plans 2019 2018 (In thousands) Benefit Obligation Plan Assets Benefit Obligation Plan Assets Plans with projected benefit obligations in excess of plan assets $ 660,277 $ 496,865 $ 617,255 $ 487,233 Plans with accumulated benefit obligations in excess of plan assets 553,392 496,865 510,984 487,233 Plans with assets in excess of projected benefit obligations - - - - Plans with assets in excess of accumulated benefit obligations - - - - Non-U.S. Plans 2019 2018 (In thousands) Benefit Obligation Plan Assets Benefit Obligation Plan Assets Plans with projected benefit obligations in excess of plan assets $ 162,824 $ 134,921 $ 152,533 $ 136,861 Plans with accumulated benefit obligations in excess of plan assets 149,390 134,921 43,054 29,855 Plans with assets in excess of projected benefit obligations 43,143 52,191 41,616 52,099 Plans with assets in excess of accumulated benefit obligations 43,143 52,191 138,408 159,105 |
Pretax Net Actuarial Loss and Prior Service (Costs) Recognized in Accumulated Other Comprehensive Income (Loss) not Affecting Retained Earnings | The following table presents the pretax net actuarial loss and prior service (costs) recognized in accumulated other comprehensive income (loss) not affecting retained earnings: U.S. Plans Non-U.S. Plans (In thousands) 2019 2018 2019 2018 Net actuarial loss $ (250,286 ) $ (197,821 ) $ (51,184 ) $ (35,668 ) Prior service (costs) credits (28 ) (135 ) 224 224 Total recognized in accumulated other comprehensive income not affecting retained earnings $ (250,314 ) $ (197,956 ) $ (50,960 ) $ (35,444 ) |
Changes Recognized in Other Comprehensive Income | The following table includes the changes recognized in other comprehensive income: U.S. Plans Non-U.S. Plans (In thousands) 2019 2018 2019 2018 Changes in plan assets and benefit obligations recognized in other comprehensive income: Prior service cost $ 11 $ - $ (33 ) $ (61 ) Net loss (gain) arising during the year 65,552 6,349 18,456 (5,098 ) Effect of exchange rates on amounts included in AOCI (1,593 ) 1,517 Amounts recognized as a component of net periodic benefit cost: Amortization or curtailment recognition of prior service (cost) benefit (118 ) (117 ) 30 18 Amortization or settlement recognition of net (loss) (13,087 ) (14,470 ) (1,345 ) (1,912 ) Total recognized in other comprehensive loss (income) $ 52,358 $ (8,238 ) $ 15,515 $ (5,536 ) |
Amounts in Accumulated Other Comprehensive Income (Loss) that have not yet been Recognized in Net Periodic Pension Cost, but will be Recognized in Consolidated Statements of Income | The following table presents the amounts in accumulated other comprehensive income (loss) as of May 31, 2019 that have not yet been recognized in net periodic pension cost, but are expected to be recognized in our Consolidated Statements of Income during the fiscal year ending May 31, 2020: (In thousands) U.S. Plans Non-U.S. Plans Net actuarial loss $ (17,973 ) $ (2,091 ) Prior service (cost) credit $ (8 ) $ 35 |
Weighted-Average Assumptions used to Determine Benefit Obligations and Net Periodic and Postretirement Costs | The following weighted-average assumptions were used to determine our year-end benefit obligations and net periodic pension cost under the plans: U.S. Plans Non-U.S. Plans Year-End Benefit Obligations 2019 2018 2019 2018 Discount rate 3.64 % 4.12 % 2.61 % 3.09 % Rate of compensation increase 3.80 % 3.80 % 2.86 % 2.85 % U.S. Plans Non-U.S. Plans Net Periodic Pension Cost 2019 2018 2017 2019 2018 2017 Discount rate 4.12 % 3.81 % 3.85 % 3.09 % 2.79 % 3.13 % Expected return on plan assets 7.40 % 7.89 % 7.89 % 4.30 % 4.37 % 4.50 % Rate of compensation increase 3.80 % 3.80 % 3.80 % 2.85 % 3.00 % 2.81 % |
Weighted-Average Actual and Target Allocation of Plan Assets | The following tables illustrate the weighted-average actual and target allocation of plan assets: U.S. Plans Target Allocation Actual Asset Allocation (Dollars in millions) as of May 31, 2019 2019 2018 Equity securities 55 % $ 295.1 $ 309.3 Fixed income securities 25 % 83.8 76.5 Multi-class 20 % 78.1 72.8 Cash (1) 39.7 28.4 Other 0.2 0.2 Total assets 100 % $ 496.9 $ 487.2 Non-U.S. Plans Target Allocation Actual Asset Allocation (Dollars in millions) as of May 31, 2019 2019 2018 Equity securities 41 % $ 79.9 $ 90.0 Fixed income securities 42 % 79.3 70.2 Cash 0.1 0.5 Property and other 17 % 27.8 28.3 Total assets 100 % $ 187.1 $ 189.0 (1) The larger than target cash position at May 31, 2019 results from our February 2019 contribution to the RPM International Inc. Retirement Plan because of our plans to invest the February contribution over a period of time, due to dollar cost averaging. |
Pension Plan Assets Categorized using Fair Value Hierarchy | The following tables present our pension plan assets as categorized using the fair value hierarchy at May 31, 2019 and 2018: U.S. Plans (In thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value at May 31, 2019 U.S. Treasury and other government $ - $ 13,854 $ - $ 13,854 State and municipal bonds 386 386 Foreign bonds 1,031 1,031 Mortgage-backed securities 20,075 20,075 Corporate bonds 26,204 26,204 Stocks - mid cap 13,392 13,392 Stocks - small cap 15,720 15,720 Mutual funds - equity 265,969 265,969 Mutual funds - multi-class 78,143 78,143 Mutual funds - fixed 22,215 22,215 Cash and cash equivalents 39,704 39,704 Limited partnerships 172 172 Total $ 68,816 $ 427,877 $ 172 $ 496,865 Non-U.S. Plans (In thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value at May 31, 2019 Pooled equities $ - $ 78,733 $ - $ 78,733 Pooled fixed income 79,061 79,061 Foreign bonds 227 227 Insurance contracts 27,843 27,843 Mutual funds 1,125 1,125 Cash and cash equivalents 123 123 Total $ 123 $ 159,146 $ 27,843 $ 187,112 U.S. Plans (In thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value at May 31, 2018 U.S. Treasury and other government $ - $ 10,197 $ - $ 10,197 State and municipal bonds 605 605 Foreign bonds 1,748 1,748 Mortgage-backed securities 26,081 26,081 Corporate bonds 17,413 17,413 Stocks - large cap 1,927 1,927 Stocks - mid cap 11,748 11,748 Stocks - small cap 18,419 18,419 Stocks - international 3,333 3,333 Mutual funds - equity 273,893 273,893 Mutual funds - multi-class 72,802 72,802 Mutual funds - fixed 20,516 20,516 Cash and cash equivalents 28,371 28,371 Limited partnerships 180 180 Total $ 63,798 $ 423,255 $ 180 $ 487,233 Non-U.S. Plans (In thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value at May 31, 2018 Pooled equities $ - $ 88,540 $ - $ 88,540 Pooled fixed income 70,180 70,180 Foreign bonds 182 182 Insurance contracts 28,268 28,268 Mutual funds 1,334 1,334 Cash and cash equivalents 456 456 Total $ 456 $ 160,236 $ 28,268 $ 188,960 |
Activity that Occurred for Level Three Assets | The following table includes the activity that occurred during the years ended May 31, 2019 and 2018 for our Level 3 assets: Actual Return on Plan Assets For: Balance at Assets Still Held Assets Sold Purchases, Sales and Balance at (In thousands) Beginning of Period at Reporting Date During Year Settlements, net (1) End of Period Year ended May 31, 2019 $ 28,448 1,228 (1,661 ) $ 28,015 Year ended May 31, 2018 30,387 (65 ) - (1,874 ) 28,448 (1) Includes the impact of exchange rate changes during the year. |
Postretirement Benefits (Tables
Postretirement Benefits (Tables) - Postretirement Benefits - Unfunded-Health-Care-Benefit Plans | 12 Months Ended |
May 31, 2019 | |
Components of Net Periodic Pension and Postretirement Costs | The following table illustrates the effect on operations of these plans for the three years ended May 31, 2019: U.S. Plans Non-U.S. Plans (In thousands) 2019 2018 2017 2019 2018 2017 Service cost - benefits earned during the period $ - $ - $ - $ 1,507 $ 1,307 $ 1,097 Interest cost on the accumulated obligation 192 173 229 1,122 939 854 Amortization of: Prior service (credit) (219 ) (220 ) (235 ) Net actuarial (gains) losses (26 ) 24 442 332 230 Net Postretirement Benefit (Income) Cost $ (53 ) $ (23 ) $ (6 ) $ 3,071 $ 2,578 $ 2,181 |
Changes in Benefit Obligations | The changes in benefit obligations of the plans at May 31, 2019 and 2018 were as follows: U.S. Plans Non-U.S. Plans (In thousands) 2019 2018 2019 2018 Accumulated postretirement benefit obligation at beginning of year $ 5,368 $ 5,892 $ 33,281 $ 27,868 Service cost 1,507 1,307 Interest cost 192 173 1,122 939 Benefit payments (287 ) (297 ) (664 ) (604 ) Actuarial (gains) losses (283 ) (400 ) 3,801 2,638 Currency exchange rate changes (1,384 ) 1,133 Accumulated and accrued postretirement benefit obligation at end of year $ 4,990 $ 5,368 $ 37,663 $ 33,281 |
Amounts Recognized in Consolidated Balance Sheet | Amounts recognized in the Consolidated Balance Sheets for the years ended May 31, 2019 and 2018 are as follows: U.S. Plans Non-U.S. Plans (In thousands) 2019 2018 2019 2018 Current liabilities $ (423 ) $ (427 ) $ (741 ) $ (696 ) Noncurrent liabilities (4,567 ) (4,941 ) (36,922 ) (32,585 ) Net Amount Recognized $ (4,990 ) $ (5,368 ) $ (37,663 ) $ (33,281 ) |
Pretax Net Actuarial Loss and Prior Service (Costs) Recognized in Accumulated Other Comprehensive Income (Loss) not Affecting Retained Earnings | The following table presents the pretax net actuarial gain (loss) and prior service credits recognized in accumulated other comprehensive income (loss) not affecting retained earnings: U.S. Plans Non-U.S. Plans (In thousands) 2019 2018 2019 2018 Net actuarial gain (loss) $ 381 $ 124 $ (12,891 ) $ (9,951 ) Prior service credits 667 887 Total recognized in accumulated other comprehensive income not affecting retained earnings $ 1,048 $ 1,011 $ (12,891 ) $ (9,951 ) |
Changes Recognized in Other Comprehensive Income | The following table includes the changes recognized in other comprehensive income: U.S. Plans Non-U.S. Plans (In thousands) 2019 2018 2019 2018 Changes in plan assets and benefit obligations recognized in other comprehensive income: Prior service cost $ - $ - $ - $ - Net loss (gain) arising during the year (283 ) (400 ) 3,801 2,638 Effect of exchange rates on amounts included in AOCI (419 ) 291 Amounts recognized as a component of net periodic benefit cost: Amortization or curtailment recognition of prior service credit (cost) 219 220 Amortization or settlement recognition of net gain (loss) 26 (24 ) (442 ) (332 ) Total recognized in other comprehensive loss (income) $ (38 ) $ (204 ) $ 2,940 $ 2,597 |
Weighted-Average Assumptions used to Determine Benefit Obligations and Net Periodic and Postretirement Costs | The following weighted-average assumptions were used to determine our year-end benefit obligations and net periodic postretirement benefit costs under the plans: U.S. Plans Non-U.S. Plans Year-End Benefit Obligations 2019 2018 2019 2018 Discount rate 3.44 % 4.03 % 3.22 % 3.70 % Current healthcare cost trend rate 7.29 % 7.86 % 5.77 % 6.02 % Ultimate healthcare cost trend rate 4.36 % 4.36 % 3.70 % 4.20 % Year ultimate healthcare cost trend rate will be realized 2037 2037 2040 2032 U.S. Plans Non-U.S. Plans Net Periodic Postretirement Cost 2019 2018 2017 2019 2018 2017 Discount rate 4.03 % 3.61 % 3.76 % 3.70 % 3.61 % 3.92 % Healthcare cost trend rate 7.86 % 14.75 % 10.37 % 6.02 % 5.85 % 5.98 % Ultimate healthcare cost trend rate 4.36 % 4.36 % 4.36 % 4.20 % 4.20 % 4.20 % Year ultimate healthcare cost trend rate will be realized 2037 2037 2037 2032 2030 2030 |
Increasing or Decreasing Current Healthcare Cost Trend Rates by One Percentage would affect Accumulated Postretirement Benefit Obligation and Net Postretirement Expense | We utilize a sensitivity analysis to measure the potential impact of changes in our healthcare cost trend rate on our Consolidated Financial Statements. Increasing or decreasing current healthcare cost trend rates by 1% would affect our accumulated postretirement benefit obligation and net postretirement expense by the following amounts for the years ended May 31, 2019 and 2018: U.S. Plans Non-U.S. Plans (In thousands) 2019 2018 2019 2018 1% Increase in Healthcare Cost Trend Rate Accumulated benefit obligation $ 124 $ 185 $ 8,300 $ 6,978 Postretirement cost 7 7 731 673 1% Decrease in Healthcare Cost Trend Rate Accumulated benefit obligation $ (112 ) $ (163 ) $ (6,390 ) $ (5,391 ) Postretirement cost (6 ) (6 ) (539 ) (493 ) |
Contingencies and Other Accru_2
Contingencies and Other Accrued Losses (Tables) | 12 Months Ended |
May 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Accrued Loss Reserves | Accrued loss reserves consist of the following: May 31, 2019 2018 (In thousands) Accrued product liability reserves $ 11,739 $ 12,900 Accrued warranty reserves 7,013 8,088 Accrued environmental reserves 1,147 1,144 Total Accrued Loss Reserves - Current $ 19,899 $ 22,132 Accrued product liability reserves - noncurrent $ 29,942 $ 29,902 Accrued warranty liability - noncurrent 3,401 3,633 Accrued environmental reserves - noncurrent 4,211 3,571 Total Accrued Loss Reserves - Noncurrent $ 37,554 $ 37,106 |
Changes in Accrued Warranty Balances | The following table includes the changes in our accrued warranty balances: Year Ended May 31, 2019 2018 2017 (In thousands) Beginning Balance $ 11,721 $ 19,149 $ 13,314 Deductions (1) (22,262 ) (26,199 ) (18,269 ) Provision charged to SG&A expense 20,955 17,924 23,862 Acquisitions 847 242 Ending Balance $ 10,414 $ 11,721 $ 19,149 (1) Primarily claims paid during the year. |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
May 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Accounts Receivable Net of Allowances and Net Contract Assets (Liabilities) | Accounts receivable, net of allowances, and net contract assets (liabilities) consisted of the following: Year Ended May 31, 2019 2018 $ Change % Change (In thousands, except percents) Accounts receivable, less allowance $ 1,232,350 $ 1,113,818 $ 118,532 10.6 % Contract assets $ 21,628 $ 18,212 $ 3,416 18.8 % Contract liabilities - short-term (25,896 ) (23,335 ) (2,561 ) 11.0 % Net Contract Liabilities $ (4,268 ) $ (5,123 ) $ 855 -16.7 % |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
May 31, 2019 | |
Segment Reporting [Abstract] | |
Results of Reportable Segments | The following tables reflect the results of our reportable segments consistent with our management philosophy, and represent the information we utilize, in conjunction with various strategic, operational and other financial performance criteria, in evaluating the performance of our portfolio of businesses. Year Ended May 31, 2019 2018 2017 (In thousands) Net Sales Industrial $ 2,889,822 $ 2,814,755 $ 2,564,202 Consumer 1,887,767 1,754,339 1,680,384 Specialty 786,962 752,549 713,589 Total $ 5,564,551 $ 5,321,643 $ 4,958,175 Income (Loss) Before Income Taxes Industrial $ 243,234 $ 270,792 $ 243,335 Consumer 215,002 171,874 58,726 Specialty 101,441 123,307 107,904 Corporate/Other (219,832 ) (148,925 ) (165,632 ) Total $ 339,845 $ 417,048 $ 244,333 Identifiable Assets Industrial $ 2,322,511 $ 2,422,799 $ 2,382,784 Consumer 1,984,332 1,859,381 1,821,190 Specialty 860,125 740,952 759,822 Corporate/Other 274,387 248,690 126,653 Total $ 5,441,355 $ 5,271,822 $ 5,090,449 Capital Expenditures Industrial $ 54,514 $ 60,145 $ 65,083 Consumer 54,444 38,921 45,690 Specialty 26,364 14,958 14,104 Corporate/Other 1,435 595 1,232 Total $ 136,757 $ 114,619 $ 126,109 Depreciation and Amortization Industrial $ 62,435 $ 57,267 $ 51,529 Consumer 41,882 38,037 33,374 Specialty 32,379 27,457 26,453 Corporate/Other 5,046 5,738 5,417 Total $ 141,742 $ 128,499 $ 116,773 |
Net Sales and Long Lived Assets by Regions | Year Ended May 31, 2019 Industrial Segment Consumer Segment Specialty Segment Consolidated (In thousands) Net Sales (based on shipping location) (a) United States $ 1,570,891 $ 1,487,205 $ 618,408 $ 3,676,504 Foreign Canada 229,386 117,305 43,508 390,199 Europe 717,659 218,021 93,344 1,029,024 Latin America 189,627 28,020 1,397 219,044 Asia Pacific 118,393 29,170 30,305 177,868 Other Foreign 63,866 8,046 71,912 Total Foreign 1,318,931 400,562 168,554 1,888,047 Total $ 2,889,822 $ 1,887,767 $ 786,962 $ 5,564,551 Year Ended May 31, 2018 Industrial Segment Consumer Segment Specialty Segment Consolidated (In thousands) Net Sales (based on shipping location) (a) United States $ 1,480,189 $ 1,351,065 $ 600,780 $ 3,432,034 Foreign Canada 236,594 106,460 22,295 365,349 Europe 715,754 228,046 96,618 1,040,418 Latin America 197,859 27,834 1,514 227,207 Asia Pacific 112,712 32,493 31,342 176,547 Other Foreign 71,647 8,441 80,088 Total Foreign 1,334,566 403,274 151,769 1,889,609 Total $ 2,814,755 $ 1,754,339 $ 752,549 $ 5,321,643 Year Ended May 31, 2017 Industrial Segment Consumer Segment Specialty Segment Consolidated (In thousands) Net Sales (based on shipping location) (a) United States $ 1,357,945 $ 1,355,262 $ 556,193 $ 3,269,400 Foreign Canada 216,218 86,773 18,705 321,696 Europe 625,399 174,304 109,096 908,799 Latin America 195,502 23,407 1,427 220,336 Asia Pacific 100,389 33,528 28,168 162,085 Other Foreign 68,749 7,110 75,859 Total Foreign 1,206,257 325,122 157,396 1,688,775 Total $ 2,564,202 $ 1,680,384 $ 713,589 $ 4,958,175 Year Ended May 31, 2019 2018 2017 (In thousands) Long-Lived Assets (b) United States $ 1,859,628 $ 1,807,046 $ 1,738,180 Foreign Canada 242,582 139,259 137,211 Europe 343,501 361,317 349,979 United Kingdom 217,414 230,071 199,415 Other Foreign 225,230 241,301 248,435 Total Foreign 1,028,727 971,948 935,040 Total $ 2,888,355 $ 2,778,994 $ 2,673,220 (a) It is not practicable to obtain the information needed to disclose revenues attributable to each of our product lines. (b) Long-lived assets include all non-current assets, excluding non-current deferred income taxes. |
Quarterly Information (Unaudi_2
Quarterly Information (Unaudited) (Tables) | 12 Months Ended |
May 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Result of Operations | The following is a summary of the quarterly results of operations for the years ended May 31, 2019 and 2018: For Quarter Ended (In thousands, except per share amounts) August 31 November 30 February 28 May 31 2019 Net Sales $ 1,459,989 $ 1,362,531 $ 1,140,630 $ 1,601,401 Gross Profit $ 594,042 $ 537,969 $ 446,140 $ 683,756 Net Income Attributable to RPM International Inc. Stockholders (a) $ 69,764 $ 49,224 $ 14,190 $ 133,380 Basic Earnings Per Share $ 0.52 $ 0.37 $ 0.11 $ 1.03 Diluted Earnings Per Share $ 0.52 $ 0.37 $ 0.11 $ 1.02 Dividends Per Share $ 0.320 $ 0.350 $ 0.350 $ 0.350 (In thousands, except per share amounts) August 31 November 30 February 28 May 31 (b) 2018 Net Sales $ 1,345,394 $ 1,315,416 $ 1,102,677 $ 1,558,156 Gross Profit $ 572,008 $ 551,015 $ 439,493 $ 618,696 Net Income Attributable to RPM International Inc. Stockholders $ 116,416 $ 95,463 $ 40,227 $ 85,664 Basic Earnings Per Share $ 0.87 $ 0.72 $ 0.30 $ 0.65 Diluted Earnings Per Share $ 0.86 $ 0.70 $ 0.30 $ 0.63 Dividends Per Share $ 0.300 $ 0.320 $ 0.320 $ 0.320 (a) Reflects inventory-related charges of $10.5 million in our consumer reportable segment resulting from more proactive management of inventory and $10.0 million in inventory reductions related to restructuring activities in our industrial reportable segment. Reflects restructuring charges totaling $42.3 million that were incurred throughout fiscal 2019, as further described in Note B, “Restructuring.” (b) Reflects inventory-related charges of $36.5 million in our consumer reportable segment for product line rationalization and related obsolete inventory identification and $1.2 million in inventory reductions related to restructuring activities in our industrial reportable segment. Additional restructuring charges totaling $17.5 million were incurred during the fourth quarter of fiscal 2018, as further described in Note B, “Restructuring.” We also incurred charges in our industrial segment totaling $4.2 million in connection with the decision to exit Flowcrete China. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) | Jun. 12, 2019USD ($) | Apr. 15, 2018FacilityPosition | Jul. 19, 2019USD ($)$ / sharesshares | Aug. 31, 2019Segment | May 31, 2019USD ($) | Feb. 28, 2019USD ($) | Nov. 30, 2018USD ($) | Aug. 31, 2018USD ($) | May 31, 2018USD ($) | Feb. 28, 2018USD ($) | Nov. 30, 2017USD ($) | Aug. 31, 2017USD ($) | May 31, 2019USD ($)EntitySegmentReportingunit$ / sharesshares | May 31, 2018USD ($)EntitySegmentReportingunitshares | May 31, 2017USD ($)shares | ||||
Significant Of Accounting Policies [Line Items] | |||||||||||||||||||
Percentage of controlled subsidiary's earnings | 100.00% | 100.00% | |||||||||||||||||
Number of business acquisition | Entity | 5 | 7 | |||||||||||||||||
Number of reportable segments | Segment | 3 | 3 | |||||||||||||||||
Net transactional foreign exchange losses | $ 4,800,000 | $ 12,300,000 | $ 6,400,000 | ||||||||||||||||
Cost of sales | 3,302,644,000 | 3,140,431,000 | 2,792,487,000 | ||||||||||||||||
Bad debt expense | 18,600,000 | $ 9,100,000 | 16,000,000 | ||||||||||||||||
Number of manufacturing facilities closed | Facility | 2 | ||||||||||||||||||
Number of positions eliminated | Position | 154 | ||||||||||||||||||
Inventory write-downs | $ 36,500,000 | 10,500,000 | |||||||||||||||||
Inventory write-offs | 1,200,000 | 10,000,000 | |||||||||||||||||
Goodwill and other intangible asset impairments | $ 4,190,000 | 193,198,000 | |||||||||||||||||
Number of reporting units | Reportingunit | 0 | 0 | |||||||||||||||||
Intangible asset impairment loss | $ 4,200,000 | $ 0 | |||||||||||||||||
Advertising cost | 57,500,000 | 58,000,000 | 52,300,000 | ||||||||||||||||
Research and development cost | 71,600,000 | 69,700,000 | 64,900,000 | ||||||||||||||||
Realized losses on sales of available-for-sale securities | 3,000,000 | ||||||||||||||||||
Realized gains on trading securities | 500,000 | ||||||||||||||||||
Unrealized losses on trading securities | 1,300,000 | ||||||||||||||||||
Unrealized losses on marketable equity securities | 4,600,000 | ||||||||||||||||||
Gross gains realized on sales of marketable securities | 11,900,000 | 12,600,000 | |||||||||||||||||
Gross losses realized on sales of marketable securities | 1,800,000 | 4,400,000 | |||||||||||||||||
Net Sales | $ 1,601,401,000 | $ 1,140,630,000 | $ 1,362,531,000 | $ 1,459,989,000 | 1,558,156,000 | [1] | $ 1,102,677,000 | $ 1,315,416,000 | $ 1,345,394,000 | $ 5,564,551,000 | [2] | $ 5,321,643,000 | [2] | $ 4,958,175,000 | [2] | ||||
Shares repurchased | shares | 3,286,907 | 0 | 0 | ||||||||||||||||
Shares repurchased, value | $ 200,222,000 | ||||||||||||||||||
Repurchase of common stock price per shares | $ / shares | $ 60.92 | ||||||||||||||||||
Subsequent Event | |||||||||||||||||||
Significant Of Accounting Policies [Line Items] | |||||||||||||||||||
Shares repurchased | shares | 1,655,616 | ||||||||||||||||||
Shares repurchased, value | $ 100,000,000 | ||||||||||||||||||
Repurchase of common stock price per shares | $ / shares | $ 60.40 | ||||||||||||||||||
Schul International Co., LLC And Willseal LLC | Subsequent Event | |||||||||||||||||||
Significant Of Accounting Policies [Line Items] | |||||||||||||||||||
Net Sales | $ 15,000,000 | ||||||||||||||||||
Restore Indefinite-lived Tradename | |||||||||||||||||||
Significant Of Accounting Policies [Line Items] | |||||||||||||||||||
Intangible asset impairment loss | $ 4,900,000 | ||||||||||||||||||
Kirker Reporting Unit | |||||||||||||||||||
Significant Of Accounting Policies [Line Items] | |||||||||||||||||||
Goodwill and other intangible asset impairments | $ 0 | $ 0 | |||||||||||||||||
Third Party | |||||||||||||||||||
Significant Of Accounting Policies [Line Items] | |||||||||||||||||||
Cost of sales | $ 173,600,000 | $ 164,700,000 | $ 148,900,000 | ||||||||||||||||
Type of Cost, Good or Service [Extensible List] | us-gaap:ShippingAndHandlingMember | us-gaap:ShippingAndHandlingMember | us-gaap:ShippingAndHandlingMember | ||||||||||||||||
Scenario Forecast | |||||||||||||||||||
Significant Of Accounting Policies [Line Items] | |||||||||||||||||||
Number of reportable segments | Segment | 4 | ||||||||||||||||||
Industrial Segment | |||||||||||||||||||
Significant Of Accounting Policies [Line Items] | |||||||||||||||||||
Number of business acquisition | Entity | 2 | 3 | |||||||||||||||||
Inventory write-downs | 1,200,000 | $ 10,000,000 | |||||||||||||||||
Consumer Segment | |||||||||||||||||||
Significant Of Accounting Policies [Line Items] | |||||||||||||||||||
Inventory write-downs | $ 36,500,000 | 10,500,000 | |||||||||||||||||
Consumer Segment | Kirker Reporting Unit | |||||||||||||||||||
Significant Of Accounting Policies [Line Items] | |||||||||||||||||||
Goodwill and other intangible asset impairments | $ 188,300,000 | ||||||||||||||||||
Trade names | |||||||||||||||||||
Significant Of Accounting Policies [Line Items] | |||||||||||||||||||
Intangible asset impairment loss | 2,000,000 | ||||||||||||||||||
Customer-related Intangibles | |||||||||||||||||||
Significant Of Accounting Policies [Line Items] | |||||||||||||||||||
Intangible asset impairment loss | $ 2,200,000 | ||||||||||||||||||
[1] | Reflects inventory-related charges of $36.5 million in our consumer reportable segment for product line rationalization and related obsolete inventory identification and $1.2 million in inventory reductions related to restructuring activities in our industrial reportable segment. Additional restructuring charges totaling $17.5 million were incurred during the fourth quarter of fiscal 2018, as further described in Note B, “Restructuring.” We also incurred charges in our industrial segment totaling $4.2 million in connection with the decision to exit Flowcrete China. | ||||||||||||||||||
[2] | It is not practicable to obtain the information needed to disclose revenues attributable to each of our product lines. |
Assets Acquired and Liabilities
Assets Acquired and Liabilities Assumed on Acquisition (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
May 31, 2019 | May 31, 2018 | May 31, 2017 | ||
Acquisitions | ||||
Goodwill | $ 1,245,762 | $ 1,192,174 | $ 1,143,913 | |
Weighted-average other intangible asset amortization life (in years) | 10 years | 12 years | ||
2019 Acquisitions | ||||
Acquisitions | ||||
Current assets | $ 29,734 | |||
Property, plant and equipment | 22,607 | |||
Goodwill | 77,459 | |||
Trade names - indefinite lives | 14,033 | |||
Other intangible assets | 59,748 | |||
Other long-term assets | 3,095 | |||
Total Assets Acquired | 206,676 | |||
Liabilities assumed | (36,083) | |||
Net Assets Acquired | [1] | $ 170,593 | ||
2018 Acquisitions | ||||
Acquisitions | ||||
Current assets | $ 28,939 | |||
Property, plant and equipment | 10,875 | |||
Goodwill | 43,656 | |||
Trade names - indefinite lives | 15,096 | |||
Other intangible assets | 36,450 | |||
Other long-term assets | 81 | |||
Total Assets Acquired | 135,097 | |||
Liabilities assumed | (19,369) | |||
Net Assets Acquired | [2] | $ 115,728 | ||
[1] | Figure includes cash acquired of $2.3 million. | |||
[2] | Figure includes cash acquired of $3.3 million. |
Assets Acquired and Liabiliti_2
Assets Acquired and Liabilities Assumed on Acquisition (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
May 31, 2019 | May 31, 2018 | |
Business Combinations [Abstract] | ||
Business acquisition cash acquired | $ 2.3 | $ 3.3 |
Property, Plant and Equipment (
Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | May 31, 2019 | May 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 1,662,859 | $ 1,575,875 |
Less: allowance for depreciation and amortization | 843,648 | 795,569 |
Property, plant and equipment, net | 819,211 | 780,306 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, at cost | 88,638 | 85,007 |
Building And Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, at cost | 459,542 | 445,017 |
Machinery and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 1,114,679 | $ 1,045,851 |
Useful Lives (Detail)
Useful Lives (Detail) | 12 Months Ended |
May 31, 2019 | |
Land Improvements | Minimum | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property Plant and equipment useful life | 1 year |
Land Improvements | Maximum | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property Plant and equipment useful life | 50 years |
Building and Building Improvements | Minimum | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property Plant and equipment useful life | 1 year |
Building and Building Improvements | Maximum | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property Plant and equipment useful life | 50 years |
Machinery and Equipment | Minimum | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property Plant and equipment useful life | 1 year |
Machinery and Equipment | Maximum | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property Plant and equipment useful life | 33 years |
Major Class of Inventory (Detai
Major Class of Inventory (Detail) - USD ($) $ in Thousands | May 31, 2019 | May 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw material and supplies | $ 296,493 | $ 288,201 |
Finished goods | 545,380 | 546,260 |
Total Inventory | $ 841,873 | $ 834,461 |
Investment (Income), Net (Detai
Investment (Income), Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2017 | |
Other Income And Expenses [Abstract] | |||
Interest (income) | $ (4,885) | $ (5,003) | $ (4,620) |
Net loss (gain) on marketable securities | 8,366 | (11,704) | (8,174) |
Other-than-temporary impairment on securities | 420 | ||
Dividend (income) | (4,211) | (3,735) | (1,610) |
Investment (income), net | $ (730) | $ (20,442) | $ (13,984) |
Other Expenses (Income), Net (D
Other Expenses (Income), Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
May 31, 2019 | May 31, 2018 | May 31, 2017 | ||
Other Income And Expenses [Abstract] | ||||
Royalty expense (income), net | $ (96) | $ 404 | $ 2,680 | |
(Income) related to unconsolidated equity affiliates | (332) | (1,002) | (1,013) | |
Pension non-service costs | 1,647 | |||
Loss on extinguishment of debt | [1] | 3,051 | ||
Other expense (income), net | $ 4,270 | $ (598) | $ 1,667 | |
[1] | In connection with the redemption of all of our outstanding 2.25% convertible senior notes in November 2018, we recognized a loss of $3.1 million, due to the fair value remeasurement on the date of conversion. |
Other Expense (Income), Net (Pa
Other Expense (Income), Net (Parenthetical) (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2018 | May 31, 2019 | Nov. 27, 2018 | ||
Other Income And Expenses [Line Items] | ||||
Loss on extinguishment of debt | [1] | $ 3,051 | ||
2.25% Convertible Senior Notes | ||||
Other Income And Expenses [Line Items] | ||||
Debt, interest rate | 2.25% | 2.25% | ||
Debt instrument redemption period | 2018-11 | |||
Loss on extinguishment of debt | $ 3,100 | |||
[1] | In connection with the redemption of all of our outstanding 2.25% convertible senior notes in November 2018, we recognized a loss of $3.1 million, due to the fair value remeasurement on the date of conversion. |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
May 31, 2018 | May 31, 2019 | May 31, 2018 | |
Restructuring Cost And Reserve [Line Items] | |||
Inventory-related charges | $ 36.5 | $ 10.5 | |
Industrial Segment | |||
Restructuring Cost And Reserve [Line Items] | |||
Inventory-related charges | 1.2 | 10 | |
Consumer Segment | |||
Restructuring Cost And Reserve [Line Items] | |||
Inventory-related charges | $ 36.5 | $ 10.5 | |
2020 MAP to Growth | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring plan, expected to be formulated | During the second quarter ended November 30, 2018 | ||
Increase in current total expected costs | $ 13.1 | ||
Restructuring plan, anticipated to be completed | by the end of calendar year 2020 | ||
2020 MAP to Growth | Industrial Segment | Cost of Sales | |||
Restructuring Cost And Reserve [Line Items] | |||
Inventory-related charges | $ 10 | $ 1.2 | |
2020 MAP to Growth | Consumer Segment | Cost of Sales | |||
Restructuring Cost And Reserve [Line Items] | |||
Inventory-related charges | 2.1 | $ 36.5 | |
Inventory-related charges, favorable adjustment | $ 0.2 |
Summary of Charges Recorded in
Summary of Charges Recorded in Connection with Restructuring by Reportable Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
May 31, 2019 | May 31, 2018 | |
Restructuring Cost And Reserve [Line Items] | ||
Current Year Charges | $ 42,310 | $ 17,514 |
2020 MAP to Growth | ||
Restructuring Cost And Reserve [Line Items] | ||
Current Year Charges | 42,310 | 17,514 |
Cumulative Costs to Date | 59,824 | |
Total Expected Costs | 81,414 | |
2020 MAP to Growth | Severance and Benefit Costs | ||
Restructuring Cost And Reserve [Line Items] | ||
Current Year Charges | 32,519 | 9,957 |
Cumulative Costs to Date | 42,476 | |
Total Expected Costs | 49,899 | |
2020 MAP to Growth | Facility Closure and Other Related Costs | ||
Restructuring Cost And Reserve [Line Items] | ||
Current Year Charges | 8,195 | 6,184 |
Cumulative Costs to Date | 14,379 | |
Total Expected Costs | 27,083 | |
2020 MAP to Growth | Other Asset Write-offs | ||
Restructuring Cost And Reserve [Line Items] | ||
Current Year Charges | 1,596 | 1,373 |
Cumulative Costs to Date | 2,969 | |
Total Expected Costs | 4,432 | |
2020 MAP to Growth | Industrial Segment | ||
Restructuring Cost And Reserve [Line Items] | ||
Current Year Charges | 19,999 | 4,587 |
Cumulative Costs to Date | 24,586 | |
Total Expected Costs | 34,528 | |
2020 MAP to Growth | Industrial Segment | Severance and Benefit Costs | ||
Restructuring Cost And Reserve [Line Items] | ||
Current Year Charges | 14,032 | 2,169 |
Cumulative Costs to Date | 16,201 | |
Total Expected Costs | 21,123 | |
2020 MAP to Growth | Industrial Segment | Facility Closure and Other Related Costs | ||
Restructuring Cost And Reserve [Line Items] | ||
Current Year Charges | 5,398 | 1,045 |
Cumulative Costs to Date | 6,443 | |
Total Expected Costs | 10,532 | |
2020 MAP to Growth | Industrial Segment | Other Asset Write-offs | ||
Restructuring Cost And Reserve [Line Items] | ||
Current Year Charges | 569 | 1,373 |
Cumulative Costs to Date | 1,942 | |
Total Expected Costs | 2,873 | |
2020 MAP to Growth | Consumer Segment | ||
Restructuring Cost And Reserve [Line Items] | ||
Current Year Charges | 5,959 | 10,791 |
Cumulative Costs to Date | 16,750 | |
Total Expected Costs | 21,580 | |
2020 MAP to Growth | Consumer Segment | Severance and Benefit Costs | ||
Restructuring Cost And Reserve [Line Items] | ||
Current Year Charges | 2,516 | 5,652 |
Cumulative Costs to Date | 8,168 | |
Total Expected Costs | 8,168 | |
2020 MAP to Growth | Consumer Segment | Facility Closure and Other Related Costs | ||
Restructuring Cost And Reserve [Line Items] | ||
Current Year Charges | 2,445 | 5,139 |
Cumulative Costs to Date | 7,584 | |
Total Expected Costs | 12,200 | |
2020 MAP to Growth | Consumer Segment | Other Asset Write-offs | ||
Restructuring Cost And Reserve [Line Items] | ||
Current Year Charges | 998 | |
Cumulative Costs to Date | 998 | |
Total Expected Costs | 1,212 | |
2020 MAP to Growth | Specialty Segment | ||
Restructuring Cost And Reserve [Line Items] | ||
Current Year Charges | 6,368 | |
Cumulative Costs to Date | 6,368 | |
Total Expected Costs | 13,186 | |
2020 MAP to Growth | Specialty Segment | Severance and Benefit Costs | ||
Restructuring Cost And Reserve [Line Items] | ||
Current Year Charges | 5,987 | 0 |
Cumulative Costs to Date | 5,987 | |
Total Expected Costs | 8,488 | |
2020 MAP to Growth | Specialty Segment | Facility Closure and Other Related Costs | ||
Restructuring Cost And Reserve [Line Items] | ||
Current Year Charges | 352 | |
Cumulative Costs to Date | 352 | |
Total Expected Costs | 4,351 | |
2020 MAP to Growth | Specialty Segment | Other Asset Write-offs | ||
Restructuring Cost And Reserve [Line Items] | ||
Current Year Charges | 29 | |
Cumulative Costs to Date | 29 | |
Total Expected Costs | 347 | |
2020 MAP to Growth | Corporate/Other Segment | ||
Restructuring Cost And Reserve [Line Items] | ||
Current Year Charges | 9,984 | 2,136 |
Cumulative Costs to Date | 12,120 | |
Total Expected Costs | 12,120 | |
2020 MAP to Growth | Corporate/Other Segment | Severance and Benefit Costs | ||
Restructuring Cost And Reserve [Line Items] | ||
Current Year Charges | 9,984 | $ 2,136 |
Cumulative Costs to Date | 12,120 | |
Total Expected Costs | $ 12,120 |
Summary of Charges Recorded i_2
Summary of Charges Recorded in Connection with Restructuring by Reportable Segment (Parenthetical) (Detail) $ in Thousands | Apr. 15, 2018Position | May 31, 2019USD ($)PositionExecutive | May 31, 2018USD ($)Position |
Restructuring Cost And Reserve [Line Items] | |||
Restructuring charges | $ 42,310 | $ 17,514 | |
Number of positions eliminated | Position | 154 | ||
2020 MAP to Growth | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring charges | 42,310 | 17,514 | |
2020 MAP to Growth | Severance and Benefit Costs | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring charges | 32,519 | 9,957 | |
Industrial Segment | 2020 MAP to Growth Related to Current Elimination | Severance and Benefit Costs | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring charges | $ 14,000 | $ 2,200 | |
Number of positions eliminated | Position | 199 | 28 | |
Industrial Segment | 2020 MAP to Growth Plan Related to Legal Function | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring charges | $ 200 | ||
Number of positions eliminated | Position | 1 | ||
Industrial Segment | 2020 MAP to Growth | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring charges | $ 19,999 | $ 4,587 | |
Number of corporate executives | Executive | 3 | ||
Industrial Segment | 2020 MAP to Growth | Severance and Benefit Costs | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring charges | $ 14,032 | 2,169 | |
Consumer Segment | 2020 MAP to Growth | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring charges | $ 5,959 | $ 10,791 | |
Number of positions eliminated | Position | 66 | 155 | |
Consumer Segment | 2020 MAP to Growth | Severance and Benefit Costs | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring charges | $ 2,516 | $ 5,652 | |
Specialty Segment | 2020 MAP to Growth | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring charges | $ 6,368 | ||
Number of positions eliminated | Position | 109 | 0 | |
Number of corporate executives | Executive | 4 | ||
Specialty Segment | 2020 MAP to Growth | Severance and Benefit Costs | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring charges | $ 5,987 | $ 0 | |
Corporate/Other Segment | 2020 MAP to Growth | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring charges | 9,984 | 2,136 | |
Corporate/Other Segment | 2020 MAP to Growth | Severance and Benefit Costs | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring charges | $ 9,984 | $ 2,136 | |
Number of corporate executives | Executive | 2 | ||
Corporate/Other Segment | 2020 MAP to Growth | Vesting Equity Awards | |||
Restructuring Cost And Reserve [Line Items] | |||
Number of corporate executives | Executive | 2 |
Summary of Activity in Restruct
Summary of Activity in Restructuring Reserves (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
May 31, 2019 | May 31, 2018 | |
Restructuring Cost And Reserve [Line Items] | ||
Additions charged to expense | $ 42,310 | $ 17,514 |
2020 MAP to Growth | ||
Restructuring Cost And Reserve [Line Items] | ||
Beginning balance | 17,514 | |
Additions charged to expense | 42,310 | 17,514 |
Cash payments charged against reserve | (34,238) | |
Non-cash charges included above | (12,892) | |
Ending balance | 12,694 | 17,514 |
2020 MAP to Growth | Severance and Benefit Costs | ||
Restructuring Cost And Reserve [Line Items] | ||
Beginning balance | 9,957 | |
Additions charged to expense | 32,519 | 9,957 |
Cash payments charged against reserve | (31,219) | |
Non-cash charges included above | (6,420) | |
Ending balance | 4,837 | 9,957 |
2020 MAP to Growth | Facility Closure and Other Related Costs | ||
Restructuring Cost And Reserve [Line Items] | ||
Beginning balance | 6,184 | |
Additions charged to expense | 8,195 | 6,184 |
Cash payments charged against reserve | (3,019) | |
Non-cash charges included above | (3,503) | |
Ending balance | 7,857 | 6,184 |
2020 MAP to Growth | Other Asset Write-offs | ||
Restructuring Cost And Reserve [Line Items] | ||
Beginning balance | 1,373 | |
Additions charged to expense | 1,596 | 1,373 |
Non-cash charges included above | $ (2,969) | |
Ending balance | $ 1,373 |
Changes in Carrying Amount of G
Changes in Carrying Amount of Goodwill, by Reportable Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
May 31, 2019 | May 31, 2018 | |
Goodwill [Line Items] | ||
Goodwill beginning balance | $ 1,192,174 | $ 1,143,913 |
Acquisitions | 77,459 | 43,656 |
Translation adjustments | (23,871) | 4,605 |
Goodwill ending balance | 1,245,762 | 1,192,174 |
Industrial Segment | ||
Goodwill [Line Items] | ||
Goodwill beginning balance | 537,318 | 516,335 |
Acquisitions | 5,826 | 19,736 |
Translation adjustments | (16,725) | 1,247 |
Goodwill ending balance | 526,419 | 537,318 |
Consumer Segment | ||
Goodwill [Line Items] | ||
Goodwill beginning balance | 477,718 | 453,600 |
Acquisitions | 25,994 | 21,277 |
Translation adjustments | (4,325) | 2,841 |
Goodwill ending balance | 499,387 | 477,718 |
Specialty Segment | ||
Goodwill [Line Items] | ||
Goodwill beginning balance | 177,138 | 173,978 |
Acquisitions | 45,639 | 2,643 |
Translation adjustments | (2,821) | 517 |
Goodwill ending balance | $ 219,956 | $ 177,138 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
May 31, 2019 | May 31, 2018 | May 31, 2017 | May 31, 2009 | |
Goodwill And Intangible Assets [Line Items] | ||||
Accumulated goodwill impairment losses | $ 156,300,000 | |||
Impairment losses | 0 | $ 0 | ||
Intangible asset amortization expense | 45,100,000 | 43,200,000 | $ 41,900,000 | |
Future amortization expense of intangible asset in 2020 | 43,000,000 | |||
Future amortization expense of intangible asset in 2021 | 39,900,000 | |||
Future amortization expense of intangible asset in 2022 | 38,600,000 | |||
Future amortization expense of intangible asset in 2023 | 34,900,000 | |||
Future amortization expense of intangible asset in 2024 | 31,500,000 | |||
Other intangible asset accumulated impairment losses, gross | 53,600,000 | |||
Other intangible asset impairment losses | 4,200,000 | $ 0 | ||
Consumer Segment | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Accumulated goodwill impairment losses | 141,400,000 | |||
Other intangible asset accumulated impairment losses, gross | $ 53,000,000 | |||
Industrial Segment | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Accumulated goodwill impairment losses | $ 14,900,000 | |||
Other intangible asset accumulated impairment losses, gross | $ 600,000 | |||
Trade names | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Other intangible asset impairment losses | 2,000,000 | |||
Customer-related Intangibles | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Other intangible asset impairment losses | $ 2,200,000 |
Other Intangible Assets Major C
Other Intangible Assets Major Classes (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
May 31, 2019 | May 31, 2018 | |
Intangible Assets by Major Class [Line Items] | ||
Amortized intangible assets, gross carrying amount | $ 710,390 | $ 665,759 |
Amortized intangible assets, accumulated amortization | (365,795) | (330,935) |
Amortized intangible assets, net other intangible assets | 344,595 | 334,824 |
Total Other Intangible Assets, gross carrying amount | 966,877 | 915,207 |
Total Other Intangible Assets, net other intangible assets | 601,082 | 584,272 |
Trademarks and Trade Names | ||
Intangible Assets by Major Class [Line Items] | ||
Indefinite-lived intangible assets, acquisitions | 256,487 | 249,448 |
Indefinite-lived intangible assets, net other intangible assets | 256,487 | 249,448 |
Formulae | ||
Intangible Assets by Major Class [Line Items] | ||
Amortized intangible assets, gross carrying amount | 227,208 | 221,812 |
Amortized intangible assets, accumulated amortization | (150,091) | (140,160) |
Amortized intangible assets, net other intangible assets | $ 77,117 | $ 81,652 |
Formulae | Minimum | ||
Intangible Assets by Major Class [Line Items] | ||
Amortized intangible assets, amortization period | 9 years | 5 years |
Formulae | Maximum | ||
Intangible Assets by Major Class [Line Items] | ||
Amortized intangible assets, amortization period | 33 years | 33 years |
Customer-Related Intangible Assets | ||
Intangible Assets by Major Class [Line Items] | ||
Amortized intangible assets, gross carrying amount | $ 413,475 | $ 369,687 |
Amortized intangible assets, accumulated amortization | (172,238) | (147,831) |
Amortized intangible assets, net other intangible assets | $ 241,237 | $ 221,856 |
Customer-Related Intangible Assets | Minimum | ||
Intangible Assets by Major Class [Line Items] | ||
Amortized intangible assets, amortization period | 5 years | 5 years |
Customer-Related Intangible Assets | Maximum | ||
Intangible Assets by Major Class [Line Items] | ||
Amortized intangible assets, amortization period | 33 years | 33 years |
Trademarks and Trade Names | ||
Intangible Assets by Major Class [Line Items] | ||
Amortized intangible assets, gross carrying amount | $ 32,998 | $ 36,671 |
Amortized intangible assets, accumulated amortization | (16,867) | (17,998) |
Amortized intangible assets, net other intangible assets | $ 16,131 | $ 18,673 |
Trademarks and Trade Names | Minimum | ||
Intangible Assets by Major Class [Line Items] | ||
Amortized intangible assets, amortization period | 5 years | 5 years |
Trademarks and Trade Names | Maximum | ||
Intangible Assets by Major Class [Line Items] | ||
Amortized intangible assets, amortization period | 40 years | 40 years |
Other Intangible Assets | ||
Intangible Assets by Major Class [Line Items] | ||
Amortized intangible assets, gross carrying amount | $ 36,709 | $ 37,589 |
Amortized intangible assets, accumulated amortization | (26,599) | (24,946) |
Amortized intangible assets, net other intangible assets | $ 10,110 | $ 12,643 |
Other Intangible Assets | Minimum | ||
Intangible Assets by Major Class [Line Items] | ||
Amortized intangible assets, amortization period | 1 year | 2 years |
Other Intangible Assets | Maximum | ||
Intangible Assets by Major Class [Line Items] | ||
Amortized intangible assets, amortization period | 33 years | 20 years |
Summary of Available-for-Sale M
Summary of Available-for-Sale Marketable Securities by Asset Type (Detail) - USD ($) $ in Thousands | May 31, 2019 | May 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-Sale Debt Securities, Amortized Cost | $ 24,905 | $ 23,994 |
Available-for-Sale Debt Securities, Gross Unrealized Gains | 415 | 82 |
Available-for-Sale Debt Securities, Gross Unrealized Losses | (311) | (560) |
Available-for-Sale Debt Securities, Fair Value (Net Carrying Amount) | 25,009 | 23,516 |
Equity Securities, Amortized Cost | 145,956 | |
Equity Securities, Gross Unrealized Gains | 2,566 | |
Equity Securities, Gross Unrealized Losses | (3,967) | |
Equity Securities, Fair Value (Net Carrying Amount) | 87,500 | 144,555 |
Total Securities, Amortized Cost | 169,950 | |
Total Securities, Gross Unrealized Gains | 2,648 | |
Total Securities, Gross Unrealized Losses | (4,527) | |
Total Securities, Fair Value (Net Carrying Amount) | $ 168,071 | |
Foreign | ||
Debt Securities, Available-for-sale [Line Items] | ||
Equity Securities, FV-NI, Type [Extensible List] | us-gaap:MutualFundMember | |
Equity Securities, Amortized Cost | $ 46,123 | |
Equity Securities, Gross Unrealized Gains | 1,839 | |
Equity Securities, Gross Unrealized Losses | (1,197) | |
Equity Securities, Fair Value (Net Carrying Amount) | $ 46,765 | |
Domestic | ||
Debt Securities, Available-for-sale [Line Items] | ||
Equity Securities, FV-NI, Type [Extensible List] | us-gaap:MutualFundMember | |
Equity Securities, Amortized Cost | $ 99,833 | |
Equity Securities, Gross Unrealized Gains | 727 | |
Equity Securities, Gross Unrealized Losses | (2,770) | |
Equity Securities, Fair Value (Net Carrying Amount) | 97,790 | |
U.S. Treasury and other government | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-Sale Debt Securities, Amortized Cost | 24,483 | 23,562 |
Available-for-Sale Debt Securities, Gross Unrealized Gains | 372 | 39 |
Available-for-Sale Debt Securities, Gross Unrealized Losses | (308) | (552) |
Available-for-Sale Debt Securities, Fair Value (Net Carrying Amount) | 24,547 | 23,049 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-Sale Debt Securities, Amortized Cost | 422 | 432 |
Available-for-Sale Debt Securities, Gross Unrealized Gains | 43 | 43 |
Available-for-Sale Debt Securities, Gross Unrealized Losses | (3) | (8) |
Available-for-Sale Debt Securities, Fair Value (Net Carrying Amount) | $ 462 | $ 467 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Detail) - USD ($) $ in Thousands | May 31, 2019 | May 31, 2018 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, current | $ 8,600 | $ 97,400 |
Available-for-sale securities, long-term | 16,400 | 70,700 |
Equity securities | $ 87,500 | $ 144,555 |
Maximum | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments with unrealized loss, percentage of fair values less than original cost | 15.00% | 15.00% |
Trading Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities held in relation to deferred compensation plan | $ 12,300 | $ 9,900 |
Summary of Available-for-Sale S
Summary of Available-for-Sale Securities in Unrealized Loss Position and Included in Accumulated Other Comprehensive Income (Loss), Aggregated by Length of Time Investments (Detail) - USD ($) $ in Thousands | May 31, 2019 | May 31, 2018 |
Investments Debt And Equity Securities [Abstract] | ||
Total investments with unrealized losses, fair value | $ 11,508 | $ 106,253 |
Unrealized losses with a loss position for less than 12 months, fair value | 806 | 68,376 |
Unrealized losses with a loss position for more than 12 months, fair value | 10,702 | 37,877 |
Total investments with unrealized losses, gross unrealized losses | (311) | (4,527) |
Unrealized losses with a loss position for less than 12 months, gross unrealized losses | (2) | (1,570) |
Unrealized losses with a loss position for more than 12 months, gross unrealized losses | $ (309) | $ (2,957) |
Net Carrying Values of Debt Sec
Net Carrying Values of Debt Securities by Contractual Maturity (Detail) - USD ($) $ in Thousands | May 31, 2019 | May 31, 2018 |
Available-for-Sale Securities, Amortized Cost | ||
Less than one year, amortized cost | $ 8,594 | |
One year through five years, amortized cost | 10,886 | |
Six years through ten years, amortized cost | 4,468 | |
After ten years, amortized cost | 957 | |
Available-for-Sale Debt Securities, Amortized Cost | 24,905 | $ 23,994 |
Available-for-Sale Securities, Fair Value | ||
Less than one year, fair value | 8,563 | |
One year through five years, fair value | 10,836 | |
Six years through ten years, fair value | 4,582 | |
After ten years, fair value | 1,028 | |
Available-for-sale debt securities, fair value | $ 25,009 | $ 23,516 |
Assets and Liabilities Measured
Assets and Liabilities Measured at Fair Value on Recurring Basis and Categorized using Fair Value Hierarchy (Detail) - USD ($) $ in Thousands | May 31, 2019 | May 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale debt securities | $ 25,009 | $ 23,516 |
U.S. Treasury and other government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale debt securities | 24,547 | 23,049 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale debt securities | 462 | 467 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale debt securities | 25,009 | |
Total trading and other equity securities | 99,821 | |
Assets (liabilities) at fair value | 103,279 | 159,945 |
Fair Value, Measurements, Recurring | U.S. Treasury and other government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale debt securities | 24,547 | 23,049 |
Fair Value, Measurements, Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale debt securities | 462 | 467 |
Fair Value, Measurements, Recurring | Mutual funds | Domestic | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total trading and other equity securities | 67,739 | 107,017 |
Fair Value, Measurements, Recurring | Mutual funds | Foreign | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total trading and other equity securities | 32,082 | 47,410 |
Fair Value, Measurements, Recurring | Contingent consideration liability | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | (21,551) | (17,998) |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale debt securities | 25,009 | |
Total trading and other equity securities | 99,821 | |
Assets (liabilities) at fair value | 124,830 | 177,943 |
Fair Value, Measurements, Recurring | 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 debt securities | 24,547 | 23,049 |
Fair Value, Measurements, Recurring | 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 debt securities | 462 | 467 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Mutual funds | Domestic | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total trading and other equity securities | 67,739 | 107,017 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Mutual funds | Foreign | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total trading and other equity securities | 32,082 | 47,410 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets (liabilities) at fair value | (21,551) | (17,998) |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Contingent consideration liability | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | $ (21,551) | $ (17,998) |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
May 31, 2019 | May 31, 2018 | |
Fair Value Disclosures [Abstract] | ||
Settlements of contingent consideration obligations | $ 5.2 | $ 3.9 |
Increase in accrual related to fair value adjustments | 3 | 0.5 |
Increase in accrual related to new acquisitions | $ 5.8 | $ 3.4 |
Fair Value and Carrying Value o
Fair Value and Carrying Value of Financial Instruments and Long-Term Debt (Detail) - USD ($) $ in Thousands | May 31, 2019 | May 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable equity securities | $ 87,500 | $ 144,555 |
Marketable debt securities | 25,009 | 23,516 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 223,168 | 244,422 |
Marketable equity securities | 87,525 | 144,555 |
Marketable debt securities | 25,009 | 23,516 |
Long-term debt, including current portion | 2,525,908 | 2,174,144 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 223,168 | 244,422 |
Marketable equity securities | 87,525 | 144,555 |
Marketable debt securities | 25,009 | 23,516 |
Long-term debt, including current portion | $ 2,526,817 | $ 2,215,458 |
Derivatives and Hedging - Addit
Derivatives and Hedging - Additional Information (Detail) | Oct. 31, 2017USD ($)CrossCurrencySwap | May 31, 2019USD ($)ForwardContract | May 31, 2018USD ($)ForwardContract | Oct. 31, 2017EUR (€)CrossCurrencySwap |
Derivatives Not Designated as Hedges | ||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||
Number of foreign currency forward contracts held | ForwardContract | 1 | 4 | ||
Forward Contracts Held to Sell International Currencies | ||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||
Notional amount | $ 0 | $ 8,700,000 | ||
Forward Contracts Held to Purchase Foreign Currencies | Derivatives Not Designated as Hedges | ||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||
Notional amount | $ 38,700,000 | $ 147,400,000 | ||
Net Investment Hedge | ||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||
Number of cross currency swaps executed | CrossCurrencySwap | 2 | 2 | ||
Notional amount | $ 100,000,000 | € 85,250,000 | ||
Derivative instruments maturity date | 2022-11 |
Derivatives and Hedging - Sched
Derivatives and Hedging - Schedule of Fair Values of Qualifying and Non-Qualifying Instruments Used in Hedging Transactions (Detail) - USD ($) $ in Thousands | May 31, 2019 | May 31, 2018 |
Derivatives Designated as Hedging Instruments | Foreign Currency Exchange (Cash Flow) | Other Current Assets | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Fair value of derivatives assets | $ 133 | |
Derivatives Designated as Hedging Instruments | Interest Rate Swap (Fair Value) | Other Current Assets | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Fair value of derivatives assets | $ 513 | |
Derivatives Designated as Hedging Instruments | Interest Rate Swap (Fair Value) | Other Accrued Liabilities | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Fair value of derivatives liabilities | 230 | 441 |
Derivatives Designated as Hedging Instruments | Interest Rate Swap (Fair Value) | Other Long-Term Liabilities | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Fair value of derivatives liabilities | 2,634 | |
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 | 2,482 | 2,580 |
Derivatives Designated as Hedging Instruments | Cross Currency Swap (Net Investment) | Other Assets (Long-Term) | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Fair value of derivatives assets | 6,163 | 1,986 |
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 | 4,276 | 5,293 |
Derivatives Not Designated as Hedging Instruments | Foreign Currency Exchange (Cash Flow) | Other Current Assets | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Fair value of derivatives assets | $ 51 | 7 |
Derivatives Not Designated as Hedging Instruments | Foreign Currency Exchange (Cash Flow) | Other Accrued Liabilities | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Fair value of derivatives liabilities | $ 2,985 |
Description of Long Term Debt (
Description of Long Term Debt (Detail) - USD ($) $ in Thousands | May 31, 2019 | May 31, 2018 | |
Debt Instrument [Line Items] | |||
Debt | $ 2,525,908 | $ 2,174,144 | |
Less: current portion | 552,446 | 3,501 | |
Long-term debt, less current maturities | 1,973,462 | 2,170,643 | |
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Debt | [1] | 336,442 | 235,774 |
Accounts Receivable Securitization Program with Two Banks, through May 8, 2020 | |||
Debt Instrument [Line Items] | |||
Debt | [2] | 99,887 | |
Unsecured 6.125% senior notes due October 15, 2019 | |||
Debt Instrument [Line Items] | |||
Debt | [3] | 450,454 | 451,658 |
Unsecured 2.25% senior convertible notes due December 15, 2020 | |||
Debt Instrument [Line Items] | |||
Debt | 196,865 | ||
Unsecured 3.45% senior notes due November 15, 2022 | |||
Debt Instrument [Line Items] | |||
Debt | 299,257 | 295,596 | |
Unsecured 3.75% notes due March 15, 2027 | |||
Debt Instrument [Line Items] | |||
Debt | [4] | 396,586 | 396,110 |
Unsecured 4.55% senior notes due March 1, 2029 | |||
Debt Instrument [Line Items] | |||
Debt | [5] | 346,006 | |
Unsecured 5.25% notes due June 1, 2045 | |||
Debt Instrument [Line Items] | |||
Debt | [6] | 298,589 | 298,514 |
Unsecured 4.25% notes due January 15, 2048 | |||
Debt Instrument [Line Items] | |||
Debt | [7] | 296,467 | 296,344 |
Other Borrowings | |||
Debt Instrument [Line Items] | |||
Other obligations, including capital leases and unsecured notes payable at various rates of interest due in installments through 2021 | $ 2,220 | $ 3,283 | |
[1] | Interest at May 31, 2019 was tied to LIBOR and averaged 3.6805% for USD denominated debt ($14,268), 2.69% for AUD denominated debt ($34,558), 3.23% on CAD denominated debt ($131,738) and 1.25% on EUR denominated debt ($159,745). Interest was tied to AUD at May 31, 2018, and averaged 2.925% for AUD denominated debt ($23,309) and 0.675% on EUR denominated debt ($213,708). At May 31, 2019 and 2018, the revolving credit facility is adjusted for debt issuance costs, net of amortization, for approximately $3.9 million and $1.2 million, respectively. | ||
[2] | At May 31, 2019, the accounts receivable securitization program is adjusted for debt issuance cost, net of amortization, for approximately $0.1 million. | ||
[3] | Includes the combination of the October 2009 initial issuance of $300.0 million aggregate principal amount and the May 2011 issuance of an additional $150.0 million aggregate principal amount of these notes. The effective interest rate on the notes issued in October 2009, including the amortization of the discount, is 6.139%. The additional $150.0 million aggregate principal amount of the notes due 2019 issued in May 2011 is adjusted for the unamortized premium received at issuance, which approximated $0.7 million and $2.3 million at May 31, 2019 and 2018, respectively. The premium effectively increased the proceeds from the financing. The effective interest rate on the $150.0 million notes issued in May 2011 is 4.934%. At May 31, 2019 and 2018, the notes are adjusted for debt issuance costs, net of amortization, for approximately $0.2 million and $0.6 million, respectively. | ||
[4] | The $400.0 million face amount of the notes due 2027 is adjusted for the amortization of the original issue discount, which approximated $0.4 million and $0.5 million at May 31, 2019 and 2018, respectively. The original issue discount effectively reduced the ultimate proceeds from the financing. The effective interest rate on the notes, including the amortization of the discount, is 3.767%. At May 31, 2019 and 2018, the notes are adjusted for debt issuance costs, net of amortization, for approximately $3.0 million and $3.4 million, respectively. | ||
[5] | The $350.0 million aggregate principal amount of the notes due 2029 is adjusted for the amortization of the original issue discount, which approximated $0.5 million at May 31, 2019. The original issue discount effectively reduced the ultimate proceeds from the financing. The effective interest rate on the notes, including the amortization of the discount, was 4.568%. At May 31, 2019, the notes were adjusted for debt issuance costs, net of amortization, for approximately $3.5 million. | ||
[6] | The $250.0 million face amount of the notes due 2045 is adjusted for the amortization of the original issue discount, which approximated $1.4 million at May 31, 2019 and 2018. The original issue discount effectively reduced the ultimate proceeds from the financing. The effective interest rate on the notes, including the amortization of the discount, is 5.29%. In March 2017, as a further issuance of the 5.25% notes due 2045, we closed an offering of $50.0 million aggregate principal, which is adjusted for the unamortized premium received at issuance, which approximated $3.0 million at May 31, 2019 and 2018. The premium effectively increased the proceeds from the financing. The effective interest rate on the $50.0 million notes issued March 2017 is 4.839%. At May 31, 2019 and 2018, the notes are adjusted for debt issuance costs, net of amortization, for approximately $3.0 million and $3.1 million, respectively. | ||
[7] | The $300.0 million face amount of the notes due 2048 is adjusted for the debt issuance cost, net of amortization, which approximated $3.5 million and $3.6 million at May 31, 2019 and 2018, respectively. The effective interest rate on the notes is 4.25%. |
Description of Long Term Debt_2
Description of Long Term Debt (Parenthetical) (Detail) - USD ($) | 12 Months Ended | |||||||||||
May 31, 2019 | May 31, 2018 | Feb. 27, 2019 | Dec. 20, 2017 | Mar. 31, 2017 | Mar. 02, 2017 | May 29, 2015 | May 27, 2011 | Oct. 09, 2009 | ||||
Debt Instrument [Line Items] | ||||||||||||
Debt | $ 205,000,000 | $ 205,000,000 | ||||||||||
Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt, due date | [1] | Oct. 31, 2023 | Oct. 31, 2023 | |||||||||
Debt issuance costs, net of amortization | $ 3,900,000 | $ 1,200,000 | ||||||||||
Unsecured 6.125% senior notes due October 15, 2019 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt, interest rate | [2] | 6.125% | 6.125% | |||||||||
Debt, due date | [2] | Oct. 15, 2019 | Oct. 15, 2019 | |||||||||
Debt issuance costs, net of amortization | $ 200,000 | $ 600,000 | ||||||||||
Debt instrument, effective interest rate | 4.934% | 6.139% | ||||||||||
Debt | $ 150,000,000 | $ 300,000,000 | ||||||||||
Unamortization of debt premium | 700,000 | $ 2,300,000 | ||||||||||
Unsecured 2.25% senior convertible notes due December 15, 2020 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt | $ 205,000,000 | |||||||||||
Debt, interest rate | 2.25% | |||||||||||
Debt, due date | Dec. 15, 2020 | |||||||||||
Unsecured 3.45% senior notes due November 15, 2022 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt, interest rate | 3.45% | 3.45% | ||||||||||
Debt, due date | Nov. 15, 2022 | Nov. 15, 2022 | ||||||||||
Unsecured 3.75% notes due March 15, 2027 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt | $ 400,000,000 | $ 400,000,000 | $ 400,000,000 | |||||||||
Debt, interest rate | 3.75% | [3] | 3.75% | [3] | 3.75% | |||||||
Debt, due date | [3] | Mar. 15, 2027 | Mar. 15, 2027 | |||||||||
Amortization of debt discount premium | $ 400,000 | $ 500,000 | ||||||||||
Debt instrument, effective interest rate | 3.767% | |||||||||||
Amortization of debt discount and issuance cost | $ 3,000,000 | 3,400,000 | ||||||||||
Unsecured 4.55% senior notes due March 1, 2029 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt | $ 350,000,000 | $ 350,000,000 | ||||||||||
Debt, interest rate | 4.55% | [4] | 4.55% | |||||||||
Debt, due date | [4] | Mar. 1, 2029 | ||||||||||
Debt issuance costs, net of amortization | $ 3,500,000 | |||||||||||
Amortization of debt discount premium | $ 500,000 | |||||||||||
Debt instrument, effective interest rate | 4.568% | |||||||||||
Unsecured 5.25% notes due June 1, 2045 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt | $ 250,000,000 | $ 250,000,000 | $ 50,000,000 | $ 250,000,000 | ||||||||
Debt, interest rate | 5.25% | [5] | 5.25% | [5] | 5.25% | 5.25% | ||||||
Debt, due date | [5] | Jun. 1, 2045 | Jun. 1, 2045 | |||||||||
Debt issuance costs, net of amortization | $ 3,000,000 | $ 3,100,000 | ||||||||||
Amortization of debt discount premium | $ 1,400,000 | 1,400,000 | ||||||||||
Debt instrument, effective interest rate | 5.29% | 4.839% | ||||||||||
Debt | $ 50,000,000 | |||||||||||
Unamortization of debt premium | $ 3,000,000 | $ 3,000,000 | ||||||||||
Accounts Receivable Securitization Program with Two Banks, through May 8, 2020 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt, due date | May 8, 2020 | |||||||||||
Debt issuance costs, net of amortization | $ 100,000 | |||||||||||
Other Borrowings | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt, maturity year | 2021 | 2021 | ||||||||||
Unsecured 4.25% notes due January 15, 2048 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt | $ 300,000,000 | $ 300,000,000 | ||||||||||
Debt, interest rate | 4.25% | [6] | 4.25% | [6] | 4.25% | |||||||
Debt, due date | [6] | Jan. 15, 2048 | Jan. 15, 2048 | |||||||||
Debt instrument, effective interest rate | 4.25% | |||||||||||
Amortization of debt discount and issuance cost | $ 3,500,000 | $ 3,600,000 | ||||||||||
United States Dollar Denominated Debt | Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest expense | $ 14,268,000 | |||||||||||
United States Dollar Denominated Debt | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Average interest rate | 3.6805% | |||||||||||
Australian Dollar Denominated Debt | Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest expense | $ 34,558,000 | $ 23,309,000 | ||||||||||
Australian Dollar Denominated Debt | Revolving Credit Facility | Australian Bank Bill Swap Bid Rate | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Average interest rate | 2.69% | 2.925% | ||||||||||
Canadian Dollar Denominated Debt | Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest expense | $ 131,738,000 | |||||||||||
Canadian Dollar Denominated Debt | Revolving Credit Facility | CDOR | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Average interest rate | 3.23% | |||||||||||
Euro Denominated Debt | Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest expense | $ 159,745,000 | $ 213,708,000 | ||||||||||
Euro Denominated Debt | Revolving Credit Facility | EUR LIBOR | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Average interest rate | 1.25% | 0.675% | ||||||||||
[1] | Interest at May 31, 2019 was tied to LIBOR and averaged 3.6805% for USD denominated debt ($14,268), 2.69% for AUD denominated debt ($34,558), 3.23% on CAD denominated debt ($131,738) and 1.25% on EUR denominated debt ($159,745). Interest was tied to AUD at May 31, 2018, and averaged 2.925% for AUD denominated debt ($23,309) and 0.675% on EUR denominated debt ($213,708). At May 31, 2019 and 2018, the revolving credit facility is adjusted for debt issuance costs, net of amortization, for approximately $3.9 million and $1.2 million, respectively. | |||||||||||
[2] | Includes the combination of the October 2009 initial issuance of $300.0 million aggregate principal amount and the May 2011 issuance of an additional $150.0 million aggregate principal amount of these notes. The effective interest rate on the notes issued in October 2009, including the amortization of the discount, is 6.139%. The additional $150.0 million aggregate principal amount of the notes due 2019 issued in May 2011 is adjusted for the unamortized premium received at issuance, which approximated $0.7 million and $2.3 million at May 31, 2019 and 2018, respectively. The premium effectively increased the proceeds from the financing. The effective interest rate on the $150.0 million notes issued in May 2011 is 4.934%. At May 31, 2019 and 2018, the notes are adjusted for debt issuance costs, net of amortization, for approximately $0.2 million and $0.6 million, respectively. | |||||||||||
[3] | The $400.0 million face amount of the notes due 2027 is adjusted for the amortization of the original issue discount, which approximated $0.4 million and $0.5 million at May 31, 2019 and 2018, respectively. The original issue discount effectively reduced the ultimate proceeds from the financing. The effective interest rate on the notes, including the amortization of the discount, is 3.767%. At May 31, 2019 and 2018, the notes are adjusted for debt issuance costs, net of amortization, for approximately $3.0 million and $3.4 million, respectively. | |||||||||||
[4] | The $350.0 million aggregate principal amount of the notes due 2029 is adjusted for the amortization of the original issue discount, which approximated $0.5 million at May 31, 2019. The original issue discount effectively reduced the ultimate proceeds from the financing. The effective interest rate on the notes, including the amortization of the discount, was 4.568%. At May 31, 2019, the notes were adjusted for debt issuance costs, net of amortization, for approximately $3.5 million. | |||||||||||
[5] | The $250.0 million face amount of the notes due 2045 is adjusted for the amortization of the original issue discount, which approximated $1.4 million at May 31, 2019 and 2018. The original issue discount effectively reduced the ultimate proceeds from the financing. The effective interest rate on the notes, including the amortization of the discount, is 5.29%. In March 2017, as a further issuance of the 5.25% notes due 2045, we closed an offering of $50.0 million aggregate principal, which is adjusted for the unamortized premium received at issuance, which approximated $3.0 million at May 31, 2019 and 2018. The premium effectively increased the proceeds from the financing. The effective interest rate on the $50.0 million notes issued March 2017 is 4.839%. At May 31, 2019 and 2018, the notes are adjusted for debt issuance costs, net of amortization, for approximately $3.0 million and $3.1 million, respectively. | |||||||||||
[6] | The $300.0 million face amount of the notes due 2048 is adjusted for the debt issuance cost, net of amortization, which approximated $3.5 million and $3.6 million at May 31, 2019 and 2018, respectively. The effective interest rate on the notes is 4.25%. |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) - USD ($) | Dec. 20, 2017 | May 09, 2014 | Dec. 09, 2013 | Nov. 30, 2018 | May 31, 2019 | May 31, 2018 | May 31, 2015 | Feb. 27, 2019 | Mar. 02, 2017 | May 29, 2015 | |||
Debt Instrument [Line Items] | |||||||||||||
Maturities of long-term debt in 2020 | $ 552,400,000 | ||||||||||||
Maturities of long-term debt in 2021 | 100,000 | ||||||||||||
Maturities of long-term debt in 2022 | 100,000 | ||||||||||||
Maturities of long-term debt in 2023 | 299,300,000 | ||||||||||||
Maturities of long-term debt in 2024 | 336,400,000 | ||||||||||||
Maturities of long-term debt thereafter | 1,337,600,000 | ||||||||||||
Credit facility, available liquidity | 1,059,100,000 | ||||||||||||
Liquidity available | $ 1,280,000,000 | ||||||||||||
Consolidated indebtedness | 64.20% | 57.10% | |||||||||||
Issuance of note | $ 205,000,000 | $ 205,000,000 | |||||||||||
Credit facility borrowing potential maximum capacity | 1,500,000,000 | ||||||||||||
Outstanding balance on senior notes including amortizable cost | 2,525,908,000 | $ 2,174,144,000 | |||||||||||
Outstanding balance | $ 100,000,000 | ||||||||||||
Convertible Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, interest rate | 2.25% | ||||||||||||
Note Interest payment frequency, term | Interest on the Convertible Notes semi-annually on June 15th and December 15th of each year | ||||||||||||
Notes maturity date | 2020 | ||||||||||||
Margin | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate margin | 0.80% | ||||||||||||
Revolving Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Credit facility, available liquidity | $ 959,100,000 | ||||||||||||
Unsecured senior notes , maturity date | [1] | Oct. 31, 2023 | Oct. 31, 2023 | ||||||||||
Credit facility borrowing maximum capacity | $ 1,300,000,000 | $ 800,000,000 | |||||||||||
Credit facility expiration date | Oct. 31, 2023 | Dec. 5, 2019 | |||||||||||
Outstanding balance on senior notes including amortizable cost | [1] | $ 336,442,000 | $ 235,774,000 | ||||||||||
Interest coverage ratio | 746.00% | ||||||||||||
Leverage ratio | 315.00% | ||||||||||||
Unsecured 4.55% senior notes due March 1, 2029 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Issuance of note | $ 350,000,000 | $ 350,000,000 | |||||||||||
Debt, interest rate | 4.55% | [2] | 4.55% | ||||||||||
Note Interest payment frequency, term | Interest on the 2029 Notes accrues from February 27, 2019 and is payable semiannually in arrears on March 1st and September 1st of each year, beginning September 1, 2019, at a rate of 4.550% per year. | ||||||||||||
Unsecured senior notes , maturity date | [2] | Mar. 1, 2029 | |||||||||||
Outstanding balance on senior notes including amortizable cost | [2] | $ 346,006,000 | |||||||||||
Unsecured 4.25% notes due January 15, 2048 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Issuance of note | $ 300,000,000 | $ 300,000,000 | |||||||||||
Debt, interest rate | 4.25% | 4.25% | [3] | 4.25% | [3] | ||||||||
Note Interest payment frequency, term | Interest on the 2048 Notes accrues from December 20, 2017 and is payable semiannually in arrears on January 15th and July 15th of each year, beginning July 15, 2018, at a rate of 4.250% per year. | ||||||||||||
Unsecured senior notes , maturity date | [3] | Jan. 15, 2048 | Jan. 15, 2048 | ||||||||||
Outstanding balance on senior notes including amortizable cost | [3] | $ 296,467,000 | $ 296,344,000 | ||||||||||
Unsecured 6.50% senior notes due February 15, 2018 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, interest rate | 6.50% | ||||||||||||
Unsecured senior notes , maturity date | Feb. 15, 2018 | ||||||||||||
Repayments of unsecured senior notes | $ 250,000,000 | ||||||||||||
Unsecured 5.25% notes due June 1, 2045 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Issuance of note | $ 250,000,000 | $ 250,000,000 | $ 50,000,000 | $ 250,000,000 | |||||||||
Debt, interest rate | 5.25% | [4] | 5.25% | [4] | 5.25% | 5.25% | |||||||
Note Interest payment frequency, term | Interest on the 2045 Notes is payable semiannually in arrears on June 1st and December 1st of each year at a rate of 5.250% per year | ||||||||||||
Unsecured senior notes , maturity date | [4] | Jun. 1, 2045 | Jun. 1, 2045 | ||||||||||
Outstanding balance on senior notes including amortizable cost | [4] | $ 298,589,000 | $ 298,514,000 | ||||||||||
Unsecured 3.75% notes due March 15, 2027 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Issuance of note | $ 400,000,000 | $ 400,000,000 | $ 400,000,000 | ||||||||||
Debt, interest rate | 3.75% | [5] | 3.75% | [5] | 3.75% | ||||||||
Note Interest payment frequency, term | Interest on the 2027 Notes is payable semiannually in arrears on March 15th and September 15th of each year, at a rate of 3.750% per year | ||||||||||||
Unsecured senior notes , maturity date | [5] | Mar. 15, 2027 | Mar. 15, 2027 | ||||||||||
Outstanding balance on senior notes including amortizable cost | [5] | $ 396,586,000 | $ 396,110,000 | ||||||||||
Unsecured 6.125% senior notes due October 15, 2019 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, interest rate | [6] | 6.125% | 6.125% | ||||||||||
Unsecured senior notes , maturity date | [6] | Oct. 15, 2019 | Oct. 15, 2019 | ||||||||||
Outstanding balance on senior notes including amortizable cost | [6] | $ 450,454,000 | $ 451,658,000 | ||||||||||
Issuance of Debt | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Covenant leverage ratio | 425.00% | ||||||||||||
Issuance of Debt | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Covenant leverage ratio | 375.00% | ||||||||||||
Aggregate consideration for acquisition | $ 100,000,000 | ||||||||||||
Interest coverage ratio | 350.00% | ||||||||||||
Accounts Receivable Securitization Program with Two Banks, through May 8, 2020 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Unsecured senior notes , maturity date | May 8, 2020 | ||||||||||||
Credit facility borrowing maximum capacity | $ 200,000,000 | ||||||||||||
Credit facility expiration date | May 8, 2020 | ||||||||||||
Outstanding balance on senior notes including amortizable cost | [7] | $ 99,887,000 | |||||||||||
Percentage of indirect economic interest held in SPE | 100.00% | ||||||||||||
Accounts Receivable Securitization Program with Two Banks, through May 8, 2020 | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Monthly unused commitment fee | 0.50% | ||||||||||||
Accounts Receivable Securitization Program with Two Banks, through May 8, 2020 | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Monthly unused commitment fee | 0.30% | ||||||||||||
Unsecured 2.25% senior convertible notes due December 15, 2020 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Issuance of note | $ 205,000,000 | ||||||||||||
Debt, interest rate | 2.25% | ||||||||||||
Unsecured senior notes , maturity date | Dec. 15, 2020 | ||||||||||||
Outstanding balance on senior notes including amortizable cost | $ 196,865,000 | ||||||||||||
Debt instrument, redemption price, percentage | 100.00% | ||||||||||||
Debt instrument, conversion rate | 19,221.062 | ||||||||||||
Debt instrument, conversion of common stock, debt amount | $ 1,000 | ||||||||||||
Debt instrument, conversion price | $ 52.12 | ||||||||||||
Debt conversion, description | The Convertible Notes became convertible at any time prior to the close of business on November 26, 2018 | ||||||||||||
Settlement of convertible notes in cash | $ 204,600,000 | ||||||||||||
Number of shares issued to settle convertible notes | 598,601 | ||||||||||||
Unsecured 2.25% senior convertible notes due December 15, 2020 | Convertible Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Issuance of note | $ 205,000,000 | ||||||||||||
[1] | Interest at May 31, 2019 was tied to LIBOR and averaged 3.6805% for USD denominated debt ($14,268), 2.69% for AUD denominated debt ($34,558), 3.23% on CAD denominated debt ($131,738) and 1.25% on EUR denominated debt ($159,745). Interest was tied to AUD at May 31, 2018, and averaged 2.925% for AUD denominated debt ($23,309) and 0.675% on EUR denominated debt ($213,708). At May 31, 2019 and 2018, the revolving credit facility is adjusted for debt issuance costs, net of amortization, for approximately $3.9 million and $1.2 million, respectively. | ||||||||||||
[2] | The $350.0 million aggregate principal amount of the notes due 2029 is adjusted for the amortization of the original issue discount, which approximated $0.5 million at May 31, 2019. The original issue discount effectively reduced the ultimate proceeds from the financing. The effective interest rate on the notes, including the amortization of the discount, was 4.568%. At May 31, 2019, the notes were adjusted for debt issuance costs, net of amortization, for approximately $3.5 million. | ||||||||||||
[3] | The $300.0 million face amount of the notes due 2048 is adjusted for the debt issuance cost, net of amortization, which approximated $3.5 million and $3.6 million at May 31, 2019 and 2018, respectively. The effective interest rate on the notes is 4.25%. | ||||||||||||
[4] | The $250.0 million face amount of the notes due 2045 is adjusted for the amortization of the original issue discount, which approximated $1.4 million at May 31, 2019 and 2018. The original issue discount effectively reduced the ultimate proceeds from the financing. The effective interest rate on the notes, including the amortization of the discount, is 5.29%. In March 2017, as a further issuance of the 5.25% notes due 2045, we closed an offering of $50.0 million aggregate principal, which is adjusted for the unamortized premium received at issuance, which approximated $3.0 million at May 31, 2019 and 2018. The premium effectively increased the proceeds from the financing. The effective interest rate on the $50.0 million notes issued March 2017 is 4.839%. At May 31, 2019 and 2018, the notes are adjusted for debt issuance costs, net of amortization, for approximately $3.0 million and $3.1 million, respectively. | ||||||||||||
[5] | The $400.0 million face amount of the notes due 2027 is adjusted for the amortization of the original issue discount, which approximated $0.4 million and $0.5 million at May 31, 2019 and 2018, respectively. The original issue discount effectively reduced the ultimate proceeds from the financing. The effective interest rate on the notes, including the amortization of the discount, is 3.767%. At May 31, 2019 and 2018, the notes are adjusted for debt issuance costs, net of amortization, for approximately $3.0 million and $3.4 million, respectively. | ||||||||||||
[6] | Includes the combination of the October 2009 initial issuance of $300.0 million aggregate principal amount and the May 2011 issuance of an additional $150.0 million aggregate principal amount of these notes. The effective interest rate on the notes issued in October 2009, including the amortization of the discount, is 6.139%. The additional $150.0 million aggregate principal amount of the notes due 2019 issued in May 2011 is adjusted for the unamortized premium received at issuance, which approximated $0.7 million and $2.3 million at May 31, 2019 and 2018, respectively. The premium effectively increased the proceeds from the financing. The effective interest rate on the $150.0 million notes issued in May 2011 is 4.934%. At May 31, 2019 and 2018, the notes are adjusted for debt issuance costs, net of amortization, for approximately $0.2 million and $0.6 million, respectively. | ||||||||||||
[7] | At May 31, 2019, the accounts receivable securitization program is adjusted for debt issuance cost, net of amortization, for approximately $0.1 million. |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | Jan. 01, 2018 | Dec. 22, 2017 | Dec. 21, 2017 | Feb. 28, 2019 | May 31, 2019 | May 31, 2018 | May 31, 2017 |
Income Tax [Line Items] | |||||||
Corporate income tax rate | 21.00% | 35.00% | |||||
Corporate tax rate reduction effective date | Jan. 1, 2018 | ||||||
Percentage of blended rate | 29.20% | ||||||
Federal statutory rate | 21.00% | ||||||
Provisional income tax expense (benefit) | $ (8,100,000) | $ 7,300,000 | |||||
Provisional income tax expense (benefit) related to provisional re-measurement of deferred tax assets and liabilities | $ (6,265,000) | (15,678,000) | |||||
Provisional income tax benefit for the partial reversal of existing deferred tax liabilities | 44,900,000 | ||||||
Provisional charge for the transition tax on previously deferred foreign earnings | 67,900,000 | ||||||
Income tax expense (benefit) related to re-measurement of deferred tax assets and liabilities | (6,300,000) | ||||||
Benefit from reduction of transition tax on unremitted earnings from foreign subsidiaries | $ 1,800,000 | (1,868,000) | 67,899,000 | ||||
Foreign capital loss carryforwards | 29,600,000 | ||||||
Total Valuation Allowances | 55,274,000 | 51,540,000 | |||||
Unrecognized tax benefits that would impact effective tax rate, if recognized | 7,700,000 | 13,600,000 | $ 4,600,000 | ||||
Accrued interest and penalties related to unrecognized tax benefits | 3,000,000 | 2,800,000 | $ 3,100,000 | ||||
Unremitted foreign earnings | 413,300,000 | 549,800,000 | |||||
Deferred income tax liability | 18,795,000 | $ 19,886,000 | |||||
Remaining unremitted foreign earnings | 1,100,000,000 | ||||||
Provision for deferred income taxes | 0 | ||||||
Capital Loss Carryforwards | |||||||
Income Tax [Line Items] | |||||||
Tax credit carryforwards | 47,000,000 | ||||||
Tax credit carry forward amount subject to expiration | $ 43,400,000 | ||||||
Tax credit carryforwards expiration year | 2022 | ||||||
State | |||||||
Income Tax [Line Items] | |||||||
Tax credit carryforwards | $ 2,400,000 | ||||||
Net operating loss carryforwards | $ 2,400,000 | ||||||
Net operating loss carryforwards beginning expiration year | 2020 | ||||||
Foreign | |||||||
Income Tax [Line Items] | |||||||
Tax credit carryforwards | $ 8,300,000 | ||||||
Tax credit carryforwards expiration year | 2029 | ||||||
Foreign Net Operating Loss Carryforwards | |||||||
Income Tax [Line Items] | |||||||
Net operating loss carryforwards | $ 182,800,000 | ||||||
Net operating loss carryforwards beginning expiration year | 2020 | ||||||
Net operating loss carryforwards subject to expiration | $ 27,100,000 | ||||||
Net operating loss carryforwards indefinite carry forward period | $ 155,700,000 |
Income before Income Taxes (Det
Income before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Income Before Income Taxes, United States | $ 215,201 | $ 228,976 | $ 133,356 |
Income Before Income Taxes, Foreign | 124,644 | 188,072 | 110,977 |
Income Before Income Taxes | $ 339,845 | $ 417,048 | $ 244,333 |
Provision (Benefit) for Income
Provision (Benefit) for Income Tax (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2017 | |
Current: | |||
U.S. federal | $ 20,388 | $ 27,206 | $ 3,024 |
State and local | 8,623 | 8,617 | 5,115 |
Foreign | 37,713 | 52,658 | 27,474 |
Total Current | 66,724 | 88,481 | 35,613 |
Deferred: | |||
U.S. federal | 15,298 | (8,054) | 15,553 |
State and local | 1,414 | 4,832 | 1,928 |
Foreign | (11,278) | (7,468) | 6,568 |
Total Deferred | 5,434 | (10,690) | 24,049 |
Provision for Income Taxes | $ 72,158 | $ 77,791 | $ 59,662 |
Significant Components of Defer
Significant Components of Deferred Income Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | May 31, 2019 | May 31, 2018 |
Deferred income tax assets related to: | ||
Inventories | $ 8,970 | $ 12,491 |
Allowance for losses | 7,524 | 5,349 |
Accrued compensation and benefits | 14,364 | 14,812 |
Accrued other expenses | 17,036 | 14,427 |
Other long-term liabilities | 15,947 | 15,921 |
Credit and net operating and capital loss carryforwards | 63,395 | 52,687 |
Net unrealized loss on securities | 12,391 | 10,236 |
Pension and other postretirement benefits | 42,991 | 39,863 |
Total Deferred Income Tax Assets | 182,618 | 165,786 |
Less: valuation allowances | (55,274) | (51,540) |
Net Deferred Income Tax Assets | 127,344 | 114,246 |
Deferred income tax (liabilities) related to: | ||
Depreciation | (72,387) | (62,202) |
Amortization of intangibles | (116,097) | (114,284) |
Unremitted foreign earnings | (18,795) | (19,886) |
Total Deferred Income Tax (Liabilities) | (207,279) | (196,372) |
Deferred Income Tax Assets (Liabilities), Net | $ (79,935) | $ (82,126) |
Reconciliation of Income Tax Ex
Reconciliation of Income Tax Expense (Benefit) Computed by Applying U.S. Statutory Federal Income Tax Rate against Income (Loss) before Income Taxes to Provision (Benefit) for Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Feb. 28, 2019 | May 31, 2019 | May 31, 2018 | May 31, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense at the U.S. statutory federal income tax rate | $ 71,367 | $ 121,812 | $ 85,517 | |
Impact of foreign operations | (1,571) | (16,276) | (20,156) | |
State and local income taxes, net | 7,224 | 9,520 | 4,734 | |
Impact of global intangible low-taxed income | 5,772 | |||
Domestic manufacturing deduction | (4,839) | (2,537) | ||
Nondeductible business expense | 2,259 | 2,473 | 2,394 | |
Valuation allowance | 7,021 | (5,235) | 933 | |
Deferred tax liability for unremitted foreign earnings | (77,970) | (621) | ||
Changes in unrecognized tax benefits | (8,480) | |||
Other | 1,195 | 737 | 1,476 | |
Equity-based compensation | (4,496) | (4,652) | (12,078) | |
Transition tax liability | $ 1,800 | (1,868) | 67,899 | |
Remeasurement of U.S. deferred income taxes | (6,265) | (15,678) | ||
Provision for Income Taxes | $ 72,158 | $ 77,791 | $ 59,662 | |
Effective Income Tax Rate | 21.20% | 18.70% | 24.40% |
Activity Related to Unrecognize
Activity Related to Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits, beginning balance | $ 14.1 | $ 13.2 | $ 13.7 |
Additions based on tax positions related to current year | 0.1 | 5.1 | 0.2 |
Additions for tax positions of prior years | 2 | 2.9 | |
Reductions for tax positions of prior years | (7.9) | (4.5) | (3.2) |
Foreign currency translation | (0.2) | (0.4) | |
Foreign currency translation | 0.3 | ||
Unrecognized tax benefits, ending balance | $ 8.1 | $ 14.1 | $ 13.2 |
Common Stock - Additional Infor
Common Stock - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
May 31, 2019 | May 31, 2018 | May 31, 2017 | May 31, 2021 | |
Stock Repurchase Programs [Line Items] | ||||
Authorization of stock repurchase program | Jan. 8, 2008 | |||
Shares repurchased | 3,286,907 | 0 | 0 | |
Shares repurchased, value | $ 200,222,000 | |||
Repurchase of common stock price per shares | $ 60.92 | |||
Scenario Forecast | ||||
Stock Repurchase Programs [Line Items] | ||||
Capital to be returned to stockholders through share repurchases | $ 1,000,000,000 | |||
Stock repurchase program, remaining authorized repurchase amount | $ 600,000,000 |
Stock-Based Compensation Expens
Stock-Based Compensation Expense Included in Consolidated Statements of Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 31,154 | $ 25,440 | $ 32,541 |
Stock-based compensation expense, included in restructuring expense | 4,283 | 2,136 | |
Total stock-based compensation cost | 35,437 | 27,576 | 32,541 |
Income tax (benefit) | (6,937) | (7,178) | (10,159) |
Total stock-based compensation cost, net of tax | 28,500 | 20,398 | 22,382 |
SG&A | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 31,154 | $ 25,440 | $ 32,541 |
Summary of Weighted-Average Ass
Summary of Weighted-Average Assumptions Related to SARs Grants (Detail) - SARs | 12 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2017 | |
Schedule Of Weighted Average Assumptions [Line Items] | |||
Risk-free interest rate | 2.90% | 2.20% | 1.50% |
Expected life of option | 6 years 6 months | 7 years | 7 years |
Expected dividend yield | 2.10% | 2.20% | 2.20% |
Expected volatility rate | 25.20% | 26.20% | 25.70% |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Oct. 03, 2018 | Oct. 10, 2003 | Jul. 31, 2015 | May 31, 2019 | May 31, 2018 | May 31, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Aggregate intrinsic value of options outstanding | $ 25,900 | |||||
Weighted-average remaining contractual life of options outstanding | 5 years 7 months 28 days | |||||
Aggregate intrinsic value of options exercisable | $ 24,900 | |||||
Weighted-average remaining contractual life of options exercisable | 4 years 4 months 24 days | |||||
Omnibus Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Incentive plan approval date | Oct. 9, 2014 | |||||
2004 Omnibus Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares of common stock authorized | 12,000,000 | |||||
2014 Omnibus Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unamortized stock-based compensation expense | $ 2,100 | |||||
Shares of common stock authorized | 6,000,000 | |||||
Directors Equity Incentive Plan 2003 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Incentive plan approval date | Oct. 10, 2003 | |||||
Share based compensation arrangement vesting period | 3 years | |||||
Unamortized stock-based compensation expense | $ 1,400 | |||||
Shares granted to Directors | $ 60.50 | $ 51.63 | $ 50.61 | |||
Shares granted | 23,000 | |||||
Shares of common stock available for grant | 500,000 | 30,300 | ||||
Shares of restricted stock vested | 35,000 | |||||
2007 Plan and 2014 Omnibus Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares granted to Directors | $ 60.01 | $ 55.19 | $ 50.99 | |||
Shares granted | 38,946 | |||||
Shares outstanding | 432,000 | 702,000 | ||||
Employee Incentive Plan 2007 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unamortized stock-based compensation expense | $ 1,200 | |||||
Shares of common stock available for grant | 0 | |||||
SARs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock appreciation rights expected term | 6 years 6 months | 7 years | 7 years | |||
Unamortized stock-based compensation expense | $ 8,600 | |||||
Unamortized stock-based compensation expense expected recognition period | 2 years 6 months 7 days | |||||
Shares expected to vest | 3,100,000 | |||||
Shares expected to vest, weighted-average exercise price | $ 46.38 | |||||
Shares expected to vest, weighted-average remaining contractual term | 5 years 7 months 6 days | |||||
SARs | Omnibus Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock appreciation rights expected term | 10 years | |||||
Share based compensation arrangement vesting period | 4 years | |||||
Stock options outstanding | 3,097,500 | |||||
Full Value Stock Award | 2004 Omnibus Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares of common stock authorized | 6,000,000 | |||||
Full Value Stock Award | 2014 Omnibus Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares of common stock authorized | 3,000,000 | |||||
Performance Earned Restricted Stock Awards and Performance Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share based compensation arrangement vesting period | 3 years | |||||
Unamortized stock-based compensation expense | $ 11,700 | |||||
Shares granted to Directors | $ 60.36 | $ 52.26 | $ 50.84 | |||
Shares granted | 440,000 | |||||
Shares of restricted stock vested | 624,000 | |||||
2015 Performance Contingent Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares granted to Directors | $ 46.87 | |||||
Shares granted | 329,000 | |||||
Performance goals attainment period for PCRS awards | 3 years | |||||
Shares outstanding | 301,000 | |||||
2015 Performance Contingent Restricted Stock | Earnings Before Interest Taxes | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 67.00% | |||||
2015 Performance Contingent Restricted Stock | Earnings Before Interest Taxes Margin | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 33.00% | |||||
2018 Contingent Performance Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unamortized stock-based compensation expense | $ 5,600 | |||||
Unamortized stock-based compensation expense expected recognition period | 2 years | |||||
Shares granted to Directors | $ 60.50 | |||||
Shares granted | 192,000 | |||||
Performance goals attainment period for PCRS awards | 3 years | |||||
Shares outstanding | 166,000 | |||||
2018 Contingent Performance Stock Units | Earnings Before Interest Taxes | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 50.00% | |||||
2018 Contingent Performance Stock Units | Earnings Before Interest Taxes Margin | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 50.00% | |||||
2018 Contingent Performance Stock Units | Upon Achievement of Performance Goals | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 0.00% | |||||
2018 Contingent Performance Stock Units | Upon Achievement of Performance Goals | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 200.00% | |||||
Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unamortized stock-based compensation expense | $ 70 | |||||
Nonvested Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unamortized stock-based compensation expense | $ 24,700 | |||||
Unamortized stock-based compensation expense expected recognition period | 2 years 2 months 26 days | |||||
Shares granted to Directors | $ 60.34 | $ 52.62 | $ 50.84 | |||
Shares granted | 503,000 | |||||
Remaining weighted-average contractual term | 2 years 2 months 26 days | |||||
Total fair value of shares vested | $ 37,800 | $ 29,900 | $ 20,300 | |||
Shares expected to vest | 1,090,000 | |||||
Shares expected to vest, weighted-average grant-date fair value | $ 52.35 | |||||
Shares of restricted stock vested | 833,000 | |||||
Total intrinsic value of restricted shares converted | $ 58,100 | $ 7,600 | $ 9,000 | |||
Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares of restricted stock vested | 832,717 | 360,762 |
Summary of Option and Share-Bas
Summary of Option and Share-Based Payment Activity (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2017 | |
Stock Options And Stock Appreciation Rights | |||
Weighted Average Exercise Price | |||
Beginning balance | $ 43.36 | ||
Options granted | 60.01 | ||
Options exercised | 40.74 | ||
Ending balance | 46.44 | $ 43.36 | |
Exercisable at May 31, 2019 | $ 41.87 | ||
Number of Shares Under Option | |||
Beginning balance | 3,207 | ||
Options granted | 480 | ||
Options exercised | (590) | ||
Ending balance | 3,097 | 3,207 | |
Exercisable at May 31, 2019 | 2,085 | ||
SARs | |||
Number of Shares Under Option | |||
Weighted-average grant-date fair value per SAR | $ 14.08 | $ 12.90 | $ 10.90 |
Intrinsic value of options exercised | $ 9,290 | $ 11,100 | $ 26,500 |
Tax benefit from options exercised | 3,210 | 3,400 | 9,700 |
Fair value of SARS vested | $ 9,300 | $ 6,500 | $ 4,600 |
Summary of Share-Based Performa
Summary of Share-Based Performance-Earned Restricted Stock and Performance Stock Units Activity (Detail) - Performance Earned Restricted Stock Awards and Performance Stock Units - $ / shares shares in Thousands | 12 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2017 | |
Weighted-Average Grant-Date Fair Value | |||
Beginning balance | $ 48.97 | ||
Shares granted | 60.36 | $ 52.26 | $ 50.84 |
Shares forfeited | 57.99 | ||
Shares vested | 48.65 | ||
Ending balance | $ 54.90 | $ 48.97 | |
Shares | |||
Beginning balance | 1,047 | ||
Shares granted | 440 | ||
Shares forfeited | (34) | ||
Shares vested | (624) | ||
Ending balance | 829 | 1,047 |
Share-Based Activity under 2003
Share-Based Activity under 2003 Plan (Detail) - Directors Equity Incentive Plan 2003 - $ / shares shares in Thousands | 12 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2017 | |
Weighted Average Grant-Date Fair Value | |||
Beginning balance | $ 48.56 | ||
Shares granted to Directors | 60.50 | $ 51.63 | $ 50.61 |
Shares vested | 47.21 | ||
Ending balance | $ 54.56 | $ 48.56 | |
Shares | |||
Beginning balance | 67 | ||
Shares granted to directors | 23 | ||
Shares vested | (35) | ||
Ending balance | 55 | 67 |
Awards and Restricted Stock Uni
Awards and Restricted Stock Units Issued under 2007 Plan and 2014 Omnibus Plan (Detail) - 2007 Plan and 2014 Omnibus Plan - $ / shares | 12 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2017 | |
Weighted-Average Grant-Date Fair Value | |||
Beginning Balance | $ 26.42 | ||
Shares granted | 60.01 | $ 55.19 | $ 50.99 |
Shares exercised | 26.12 | ||
Ending Balance | $ 31.73 | $ 26.42 | |
Shares | |||
Beginning Balance | 702,000 | ||
Shares granted | 38,946 | ||
Shares exercised | (309,000) | ||
Ending Balance | 432,000 | 702,000 |
Summary of Activity for Nonvest
Summary of Activity for Nonvested Restricted Shares (Detail) - Nonvested Restricted Stock - $ / shares shares in Thousands | 12 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2017 | |
Weighted-Average Grant-Date Fair Value | |||
Beginning balance | $ 45.85 | ||
Granted | 60.34 | $ 52.62 | $ 50.84 |
Vested | 45.44 | ||
Forfeited | 47.98 | ||
Ending balance | $ 52.35 | $ 45.85 | |
Shares | |||
Beginning balance | 1,755 | ||
Granted | 503 | ||
Vested | (833) | ||
Forfeited | (334) | ||
Ending balance | 1,091 | 1,755 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | $ 1,633,538 | $ 1,438,700 | $ 1,374,748 |
Deferred taxes | (19,068) | 3,773 | 23,863 |
Ending Balance | 1,408,605 | 1,633,538 | 1,438,700 |
Foreign Currency Translation Adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (300,013) | (308,415) | (291,233) |
Other comprehensive income (loss) | (73,660) | 10,989 | (20,358) |
Deferred taxes | 3,178 | (2,587) | 3,176 |
Ending Balance | (370,495) | (300,013) | (308,415) |
Pension And Other Postretirement Benefit Liability Adjustments, Net of Tax | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (157,495) | (166,724) | (208,206) |
Other comprehensive income (loss) | (70,785) | 11,375 | 66,264 |
Deferred taxes | 16,635 | (2,146) | (24,782) |
Ending Balance | (211,645) | (157,495) | (166,724) |
Unrealized Gain (Loss) On Derivatives, Net of Tax | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (131) | 16 | |
Other comprehensive income (loss) | 4,713 | (359) | 16 |
Deferred taxes | (203) | 212 | |
Ending Balance | 4,379 | (131) | 16 |
Unrealized Gain (Loss) On Securities, Net of Tax | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (1,409) | 1,137 | (2,608) |
Reclassification adjustments for gains (losses) included in net income, net of taxes of $151, $591, $401 in 2019, 2018 and 2017 | 1,777 | (1,244) | (1,847) |
Other comprehensive income (loss) | 307 | (2,050) | 7,849 |
Deferred taxes | (542) | 748 | (2,257) |
Ending Balance | 133 | (1,409) | 1,137 |
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (459,048) | (473,986) | (502,047) |
Reclassification adjustments for gains (losses) included in net income, net of taxes of $151, $591, $401 in 2019, 2018 and 2017 | 1,777 | (1,244) | (1,847) |
Other comprehensive income (loss) | (139,425) | 19,955 | 53,771 |
Deferred taxes | 19,068 | (3,773) | (23,863) |
Ending Balance | $ (577,628) | $ (459,048) | $ (473,986) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (loss) (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2017 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |||
Reclassification adjustments for gains (losses) included in net income, taxes | $ 151 | $ 591 | $ 401 |
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 | 12 Months Ended | |||||||||||||||
May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | [2] | Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2017 | May 31, 2019 | May 31, 2018 | May 31, 2017 | ||||||
Numerator for earnings per share: | |||||||||||||||||
Net income attributable to RPM International Inc. stockholders | $ 133,380 | [1] | $ 14,190 | [1] | $ 49,224 | [1] | $ 69,764 | [1] | $ 85,664 | $ 40,227 | $ 95,463 | $ 116,416 | $ 266,558 | $ 337,770 | $ 181,823 | ||
Less: Allocation of earnings and dividends to participating securities | (1,514) | (3,858) | (2,795) | ||||||||||||||
Net income available to common shareholders - basic | 265,044 | 333,912 | 179,028 | ||||||||||||||
Add: Undistributed earnings reallocated to unvested shareholders | 2 | ||||||||||||||||
Reverse: Allocation of earnings and dividends to participating securities | 1,514 | 3,858 | |||||||||||||||
Add: Income effect of contingently issuable shares | 3,655 | 5,673 | 5,457 | ||||||||||||||
Net income available to common shareholders - diluted | $ 270,213 | $ 343,443 | $ 184,487 | ||||||||||||||
Denominator for basic and diluted earnings per share: | |||||||||||||||||
Basic weighted average common shares | [3] | 130,552 | 131,179 | 130,662 | |||||||||||||
Average diluted options | 1,838 | 2,064 | 598 | ||||||||||||||
Net issuable common share equivalents | [4] | 1,943 | 3,928 | 3,905 | |||||||||||||
Total shares for diluted earnings per share | [3],[5] | 134,333 | 137,171 | 135,165 | |||||||||||||
Earnings Per Share of Common Stock Attributable to RPM International Inc. Stockholders: | |||||||||||||||||
Basic Earnings Per Share of Common Stock | $ 1.03 | $ 0.11 | $ 0.37 | $ 0.52 | $ 0.65 | $ 0.30 | $ 0.72 | $ 0.87 | $ 2.03 | $ 2.55 | $ 1.37 | ||||||
Diluted Earnings Per Share of Common Stock | $ 1.02 | $ 0.11 | $ 0.37 | $ 0.52 | $ 0.63 | $ 0.30 | $ 0.70 | $ 0.86 | $ 2.01 | $ 2.50 | $ 1.36 | ||||||
[1] | Reflects inventory-related charges of $10.5 million in our consumer reportable segment resulting from more proactive management of inventory and $10.0 million in inventory reductions related to restructuring activities in our industrial reportable segment. Reflects restructuring charges totaling $42.3 million that were incurred throughout fiscal 2019, as further described in Note B, “Restructuring. | ||||||||||||||||
[2] | Reflects inventory-related charges of $36.5 million in our consumer reportable segment for product line rationalization and related obsolete inventory identification and $1.2 million in inventory reductions related to restructuring activities in our industrial reportable segment. Additional restructuring charges totaling $17.5 million were incurred during the fourth quarter of fiscal 2018, as further described in Note B, “Restructuring.” We also incurred charges in our industrial segment totaling $4.2 million in connection with the decision to exit Flowcrete China. | ||||||||||||||||
[3] | For the year ended May 31, 2019 and 2018, basic and diluted earnings per share are calculated under the two-class method and the treasury method, respectively, as those methods resulted in the most dilutive earnings per share. For the year ended May 31, 2017, basic and diluted earnings per share are calculated using the two-class method. | ||||||||||||||||
[4] | Represents the number of shares that would be issued if our contingently convertible notes had been converted. We included these shares in the calculation of diluted EPS as the conversion of the notes were eligible to be settled, at our election, in cash, shares of our common stock, or a combination of cash and shares of our common stock. On November 27, 2018, we redeemed all of our 2.25% convertible senior notes due 2020, primarily for cash, but also issued 598,601 shares of our common stock in the transaction. | ||||||||||||||||
[5] | For the years ended May 31, 2019, 2018 and 2017, approximately 862,500, 799,362 and 606,048 shares of stock, respectively, granted under stock-based compensation plans were excluded from the calculation of diluted EPS, as the 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 | Nov. 27, 2018 | May 31, 2019 | May 31, 2018 | May 31, 2017 | Nov. 30, 2018 |
Stock-Based Compensation Plans | |||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||||
Shares excluded from the calculation of diluted earnings per share | 862,500 | 799,362 | 606,048 | ||
2.25% Convertible Senior Notes | |||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||||
Debt instrument redemption date | Nov. 27, 2018 | ||||
Debt, interest rate | 2.25% | 2.25% | |||
Debt instrument maturity year | 2020 | ||||
Debt conversion, common stock shares issued | 598,601 |
Future Minimum Lease Commitment
Future Minimum Lease Commitments Under Non-Cancelable Lease Agreement (Detail) $ in Thousands | May 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 59,163 |
2021 | 49,731 |
2022 | 40,339 |
2023 | 32,798 |
2024 | 27,716 |
Thereafter | 119,607 |
Total Minimum Lease Commitments | $ 329,354 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2017 | |
Leases [Abstract] | |||
Rental expenses for all operating lease | $ 64.9 | $ 64.3 | $ 61.3 |
Pension Plans - Additional Info
Pension Plans - Additional Information (Detail) - Pension Benefits - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Feb. 28, 2019 | May 31, 2019 | May 31, 2018 | May 31, 2017 | |
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Average compensation with accrued benefits vesting period | 5 years | |||
Matching contribution charged to income | $ 19,400 | $ 18,700 | $ 17,400 | |
Estimated benefits payable in the first year | 60,700 | |||
Estimated benefits payable in the second year | 57,300 | |||
Estimated benefits payable in the third year | 62,300 | |||
Estimated benefits payable in the fourth year | 62,800 | |||
Estimated benefits payable in the fifth year | 62,100 | |||
Estimated benefits payable in the years thereafter | 320,000 | |||
U.S. Plans | ||||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Contribution to retirement plans in the next fiscal year | 900 | |||
Additional contribution to retirement plan in the current | $ 56,500 | 57,821 | 53,829 | |
Non-U.S. Plans | ||||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Contribution to retirement plans in the next fiscal year | 6,400 | |||
Additional contribution to retirement plan in the current | $ 6,770 | $ 7,460 |
Retirement-Related Benefit Plan
Retirement-Related Benefit Plans' Impact on Income Before Income Taxes (Detail) - Pension Benefits - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2017 | |
U.S. Plans | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | $ 37,528 | $ 37,859 | $ 37,603 |
Interest cost | 21,987 | 17,518 | 17,323 |
Expected return on plan assets | (33,867) | (32,342) | (25,007) |
Prior service cost | 118 | 117 | 217 |
Net actuarial losses recognized | 13,087 | 14,470 | 22,160 |
Net Pension Cost | 38,853 | 37,622 | 52,296 |
Non-U.S. Plans | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | 4,693 | 4,620 | 4,070 |
Interest cost | 5,420 | 5,025 | 4,614 |
Expected return on plan assets | (7,907) | (8,270) | (7,109) |
Prior service cost | (30) | (31) | (24) |
Net actuarial losses recognized | 1,229 | 1,758 | 2,150 |
Curtailment/settlement losses | 89 | 128 | 904 |
Net Pension Cost | $ 3,494 | $ 3,230 | $ 4,605 |
Changes in Benefits Obligations
Changes in Benefits Obligations and Plan Assets, Pension (Detail) - Pension Benefits - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Feb. 28, 2019 | May 31, 2019 | May 31, 2018 | May 31, 2017 | |
U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Benefit obligation at beginning of year | $ 617,255 | $ 591,948 | ||
Service cost | 37,528 | 37,859 | $ 37,603 | |
Interest cost | 21,987 | 17,518 | 17,323 | |
Benefits paid | (45,917) | (34,368) | ||
Plan amendments | 11 | |||
Actuarial (gains)/losses | 29,413 | 4,298 | ||
Benefit Obligation at End of Year | 660,277 | 617,255 | 591,948 | |
Balance at Beginning of Period | 487,233 | 437,481 | ||
Actual return on plan assets | (2,272) | 30,291 | ||
Employer contributions | $ 56,500 | 57,821 | 53,829 | |
Benefits paid | (45,917) | (34,368) | ||
Balance at End of Period | 496,865 | 487,233 | 437,481 | |
(Deficit) of plan assets versus benefit obligations at end of year | (163,412) | (130,022) | ||
Net Amount Recognized | (163,412) | (130,022) | ||
Accumulated Benefit Obligation | 553,392 | 510,984 | ||
Non-U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Benefit obligation at beginning of year | 194,149 | 195,884 | ||
Service cost | 4,693 | 4,620 | 4,070 | |
Interest cost | 5,420 | 5,025 | 4,614 | |
Benefits paid | (7,488) | (6,545) | ||
Participant contributions | 1,003 | 980 | ||
Plan amendments | (33) | (61) | ||
Plan settlements/curtailments | (607) | (2,984) | ||
Actuarial (gains)/losses | 17,286 | (9,523) | ||
Premiums paid | (97) | (106) | ||
Currency exchange rate changes | (8,359) | 6,859 | ||
Benefit Obligation at End of Year | 205,967 | 194,149 | 195,884 | |
Balance at Beginning of Period | 188,960 | 179,928 | ||
Actual return on plan assets | 6,737 | 3,166 | ||
Employer contributions | 6,770 | 7,460 | ||
Participant contributions | 1,003 | 980 | ||
Benefits paid | (7,488) | (6,545) | ||
Premiums paid | (97) | (106) | ||
Plan settlements/curtailments | (580) | (2,267) | ||
Currency exchange rate changes | (8,193) | 6,344 | ||
Balance at End of Period | 187,112 | 188,960 | $ 179,928 | |
(Deficit) of plan assets versus benefit obligations at end of year | (18,855) | (5,189) | ||
Net Amount Recognized | (18,855) | (5,189) | ||
Accumulated Benefit Obligation | $ 192,533 | $ 181,462 |
Amounts Recognized in Consolida
Amounts Recognized in Consolidated Balance Sheet, Pension (Detail) - Pension Benefits - USD ($) $ in Thousands | May 31, 2019 | May 31, 2018 |
U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current liabilities | $ (8) | $ (7) |
Noncurrent liabilities | (163,404) | (130,015) |
Net Amount Recognized | (163,412) | (130,022) |
Non-U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent assets | 9,047 | 10,483 |
Current liabilities | (435) | (421) |
Noncurrent liabilities | (27,467) | (15,251) |
Net Amount Recognized | $ (18,855) | $ (5,189) |
Relationship between Plans Bene
Relationship between Plans Benefit Obligations and Assets (Detail) - Pension Benefits - USD ($) $ in Thousands | May 31, 2019 | May 31, 2018 |
U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plans with projected benefit obligations in excess of plan assets, benefit obligation | $ 660,277 | $ 617,255 |
Plans with accumulated benefit obligations in excess of plan assets, benefit obligation | 553,392 | 510,984 |
Plans with projected benefit obligations in excess of plan assets, plan asset | 496,865 | 487,233 |
Plans with accumulated benefit obligations in excess of plan assets, plan asset | 496,865 | 487,233 |
Non-U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plans with projected benefit obligations in excess of plan assets, benefit obligation | 162,824 | 152,533 |
Plans with accumulated benefit obligations in excess of plan assets, benefit obligation | 149,390 | 43,054 |
Plans with assets in excess of projected benefit obligations | 43,143 | 41,616 |
Plans with assets in excess of accumulated benefit obligations | 43,143 | 138,408 |
Plans with projected benefit obligations in excess of plan assets, plan asset | 134,921 | 136,861 |
Plans with accumulated benefit obligations in excess of plan assets, plan asset | 134,921 | 29,855 |
Plans with assets in excess of projected benefit obligations, plan asset | 52,191 | 52,099 |
Plans with assets in excess of accumulated benefit obligations, plan asset | $ 52,191 | $ 159,105 |
Pretax Net Actuarial Loss and P
Pretax Net Actuarial Loss and Prior Service (Costs) Recognized in Accumulated Other Comprehensive Income (Loss) not Affecting Retained Earnings,Pension (Detail) - Pension Benefits - USD ($) $ in Thousands | May 31, 2019 | May 31, 2018 |
U.S. Plans | ||
Schedule of Net Periodic Benefit Costs and Assumptions for Defined Benefit Postretirement Plans [Line Items] | ||
Net actuarial loss | $ (250,286) | $ (197,821) |
Prior service (costs) credits | (28) | (135) |
Total recognized in accumulated other comprehensive income not affecting retained earnings | (250,314) | (197,956) |
Non-U.S. Plans | ||
Schedule of Net Periodic Benefit Costs and Assumptions for Defined Benefit Postretirement Plans [Line Items] | ||
Net actuarial loss | (51,184) | (35,668) |
Prior service (costs) credits | 224 | 224 |
Total recognized in accumulated other comprehensive income not affecting retained earnings | $ (50,960) | $ (35,444) |
Changes Recognized in Other Com
Changes Recognized in Other Comprehensive Income, Pension (Detail) - Pension Benefits - USD ($) $ in Thousands | 12 Months Ended | |
May 31, 2019 | May 31, 2018 | |
U.S. Plans | ||
Changes in plan assets and benefit obligations recognized in other comprehensive income: | ||
Prior service cost | $ 11 | |
Net loss (gain) arising during the year | 65,552 | $ 6,349 |
Amounts recognized as a component of net periodic benefit cost: | ||
Amortization or curtailment recognition of prior service (cost) benefit | (118) | (117) |
Amortization or settlement recognition of net (loss) | (13,087) | (14,470) |
Total recognized in other comprehensive loss (income) | 52,358 | (8,238) |
Non-U.S. Plans | ||
Changes in plan assets and benefit obligations recognized in other comprehensive income: | ||
Prior service cost | (33) | (61) |
Net loss (gain) arising during the year | 18,456 | (5,098) |
Effect of exchange rates on amounts included in AOCI | (1,593) | 1,517 |
Amounts recognized as a component of net periodic benefit cost: | ||
Amortization or curtailment recognition of prior service (cost) benefit | 30 | 18 |
Amortization or settlement recognition of net (loss) | (1,345) | (1,912) |
Total recognized in other comprehensive loss (income) | $ 15,515 | $ (5,536) |
Amounts in Accumulated Other Co
Amounts in Accumulated Other Comprehensive Income (Loss) that have not yet been Recognized in Net Periodic Pension Cost, but are Expected to be Recognized in Consolidated Statements of Income (Detail) - Pension Benefits $ in Thousands | May 31, 2019USD ($) |
U.S. Plans | |
Schedule of Pension Amounts in Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Net actuarial loss | $ (17,973) |
Prior service (cost) credit | (8) |
Non-U.S. Plans | |
Schedule of Pension Amounts in Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Net actuarial loss | (2,091) |
Prior service (cost) credit | $ 35 |
Weighted-Average Assumptions us
Weighted-Average Assumptions used to Determine Benefit Obligations and Net Periodic Pension Cost (Detail) - Pension Benefits | 12 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2017 | |
U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Year-End Benefit Obligations, Discount rate | 3.64% | 4.12% | |
Year-End Benefit Obligations, Rate of compensation increase | 3.80% | 3.80% | |
Net Periodic Pension Cost, Discount rate | 4.12% | 3.81% | 3.85% |
Net Periodic Pension Cost, Expected return on plan assets | 7.40% | 7.89% | 7.89% |
Net Periodic Pension Cost, Rate of compensation increase | 3.80% | 3.80% | 3.80% |
Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Year-End Benefit Obligations, Discount rate | 2.61% | 3.09% | |
Year-End Benefit Obligations, Rate of compensation increase | 2.86% | 2.85% | |
Net Periodic Pension Cost, Discount rate | 3.09% | 2.79% | 3.13% |
Net Periodic Pension Cost, Expected return on plan assets | 4.30% | 4.37% | 4.50% |
Net Periodic Pension Cost, Rate of compensation increase | 2.85% | 3.00% | 2.81% |
Weighted-Average Actual Target
Weighted-Average Actual Target Allocation of Plan Assets (Detail) - Pension Benefits - USD ($) $ in Thousands | May 31, 2019 | May 31, 2018 | May 31, 2017 | |
U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target Allocation | 100.00% | |||
Actual Asset Allocation | $ 496,865 | $ 487,233 | $ 437,481 | |
Non-U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target Allocation | 100.00% | |||
Actual Asset Allocation | $ 187,112 | 188,960 | $ 179,928 | |
Equity securities | U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target Allocation | 55.00% | |||
Actual Asset Allocation | $ 295,100 | 309,300 | ||
Equity securities | Non-U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target Allocation | 41.00% | |||
Actual Asset Allocation | $ 79,900 | 90,000 | ||
Fixed income securities | U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target Allocation | 25.00% | |||
Actual Asset Allocation | $ 83,800 | 76,500 | ||
Fixed income securities | Non-U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target Allocation | 42.00% | |||
Actual Asset Allocation | $ 79,300 | 70,200 | ||
Multi-class | U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target Allocation | 20.00% | |||
Actual Asset Allocation | $ 78,100 | 72,800 | ||
Cash | U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Actual Asset Allocation | [1] | 39,700 | 28,400 | |
Cash | Non-U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Actual Asset Allocation | 100 | 500 | ||
Real Estate | U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Actual Asset Allocation | $ 200 | 200 | ||
Real Estate | Non-U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target Allocation | 17.00% | |||
Actual Asset Allocation | $ 27,800 | $ 28,300 | ||
[1] | The larger than target cash position at May 31, 2019 results from our February 2019 contribution to the RPM International Inc. Retirement Plan because of our plans to invest the February contribution over a period of time, due to dollar cost averaging. |
Pension Plan Assets Categorized
Pension Plan Assets Categorized Using Fair Value Hierarchy (Detail) - Pension Benefits - USD ($) $ in Thousands | May 31, 2019 | May 31, 2018 | May 31, 2017 |
U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Pension plans with Plan Assets | $ 496,865 | $ 487,233 | $ 437,481 |
U.S. Plans | U.S. Treasury and other government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Pension plans with Plan Assets | 13,854 | 10,197 | |
U.S. Plans | State and Municipal Debt Obligations | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Pension plans with Plan Assets | 386 | 605 | |
U.S. Plans | Foreign Covered Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Pension plans with Plan Assets | 1,031 | 1,748 | |
U.S. Plans | Mortgage-backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Pension plans with Plan Assets | 20,075 | 26,081 | |
U.S. Plans | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Pension plans with Plan Assets | 26,204 | 17,413 | |
U.S. Plans | Mid Cap Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Pension plans with Plan Assets | 13,392 | 11,748 | |
U.S. Plans | Small Cap Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Pension plans with Plan Assets | 15,720 | 18,419 | |
U.S. Plans | Equity Mutual Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Pension plans with Plan Assets | 265,969 | 273,893 | |
U.S. Plans | Mutal Funds - Multi-class | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Pension plans with Plan Assets | 78,143 | 72,802 | |
U.S. Plans | Debt Mutual Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Pension plans with Plan Assets | 22,215 | 20,516 | |
U.S. Plans | Cash and Cash Equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Pension plans with Plan Assets | 39,704 | 28,371 | |
U.S. Plans | Limited Partner | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Pension plans with Plan Assets | 172 | 180 | |
U.S. Plans | Large Cap Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Pension plans with Plan Assets | 1,927 | ||
U.S. Plans | International Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Pension plans with Plan Assets | 3,333 | ||
Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Pension plans with Plan Assets | 187,112 | 188,960 | 179,928 |
Non-U.S. Plans | Foreign Covered Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Pension plans with Plan Assets | 227 | 182 | |
Non-U.S. Plans | Cash and Cash Equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Pension plans with Plan Assets | 123 | 456 | |
Non-U.S. Plans | Pooled Equity Securities Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Pension plans with Plan Assets | 78,733 | 88,540 | |
Non-U.S. Plans | Pooled Funds Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Pension plans with Plan Assets | 79,061 | 70,180 | |
Non-U.S. Plans | Insurance Contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Pension plans with Plan Assets | 27,843 | 28,268 | |
Non-U.S. Plans | Mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Pension plans with Plan Assets | 1,125 | 1,334 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Pension plans with Plan Assets | 68,816 | 63,798 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Plans | Mid Cap Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Pension plans with Plan Assets | 13,392 | 11,748 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Plans | Small Cap Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Pension plans with Plan Assets | 15,720 | 18,419 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Plans | Cash and Cash Equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Pension plans with Plan Assets | 39,704 | 28,371 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Plans | Large Cap Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Pension plans with Plan Assets | 1,927 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Plans | International Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Pension plans with Plan Assets | 3,333 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Pension plans with Plan Assets | 123 | 456 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-U.S. Plans | Cash and Cash Equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Pension plans with Plan Assets | 123 | 456 | |
Significant Other Observable Inputs (Level 2) | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Pension plans with Plan Assets | 427,877 | 423,255 | |
Significant Other Observable Inputs (Level 2) | U.S. Plans | U.S. Treasury and other government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Pension plans with Plan Assets | 13,854 | 10,197 | |
Significant Other Observable Inputs (Level 2) | U.S. Plans | State and Municipal Debt Obligations | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Pension plans with Plan Assets | 386 | 605 | |
Significant Other Observable Inputs (Level 2) | U.S. Plans | Foreign Covered Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Pension plans with Plan Assets | 1,031 | 1,748 | |
Significant Other Observable Inputs (Level 2) | U.S. Plans | Mortgage-backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Pension plans with Plan Assets | 20,075 | 26,081 | |
Significant Other Observable Inputs (Level 2) | U.S. Plans | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Pension plans with Plan Assets | 26,204 | 17,413 | |
Significant Other Observable Inputs (Level 2) | U.S. Plans | Equity Mutual Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Pension plans with Plan Assets | 265,969 | 273,893 | |
Significant Other Observable Inputs (Level 2) | U.S. Plans | Mutal Funds - Multi-class | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Pension plans with Plan Assets | 78,143 | 72,802 | |
Significant Other Observable Inputs (Level 2) | U.S. Plans | Debt Mutual Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Pension plans with Plan Assets | 22,215 | 20,516 | |
Significant Other Observable Inputs (Level 2) | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Pension plans with Plan Assets | 159,146 | 160,236 | |
Significant Other Observable Inputs (Level 2) | Non-U.S. Plans | Foreign Covered Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Pension plans with Plan Assets | 227 | 182 | |
Significant Other Observable Inputs (Level 2) | Non-U.S. Plans | Pooled Equity Securities Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Pension plans with Plan Assets | 78,733 | 88,540 | |
Significant Other Observable Inputs (Level 2) | Non-U.S. Plans | Pooled Funds Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Pension plans with Plan Assets | 79,061 | 70,180 | |
Significant Other Observable Inputs (Level 2) | Non-U.S. Plans | Mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Pension plans with Plan Assets | 1,125 | 1,334 | |
Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Pension plans with Plan Assets | 28,015 | 28,448 | $ 30,387 |
Significant Unobservable Inputs (Level 3) | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Pension plans with Plan Assets | 172 | 180 | |
Significant Unobservable Inputs (Level 3) | U.S. Plans | Limited Partner | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Pension plans with Plan Assets | 172 | 180 | |
Significant Unobservable Inputs (Level 3) | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Pension plans with Plan Assets | 27,843 | 28,268 | |
Significant Unobservable Inputs (Level 3) | Non-U.S. Plans | Insurance Contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Pension plans with Plan Assets | $ 27,843 | $ 28,268 |
Activity that Occurred for Leve
Activity that Occurred for Level Three Assets (Detail) - Significant Unobservable Inputs (Level 3) - Pension Benefits - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2019 | May 31, 2018 | ||
Defined Benefit Plan Disclosure [Line Items] | |||
Balance at Beginning of Period | $ 28,448 | $ 30,387 | |
Actual Return on Plan Assets For Assets Still Held at Reporting Date | 1,228 | (65) | |
Settlements | [1] | (1,661) | (1,874) |
Balance at End of Period | $ 28,015 | $ 28,448 | |
[1] | Includes the impact of exchange rate changes during the year. |
Components of Net Postretiremen
Components of Net Postretirement Expense (Detail) - Postretirement Benefits - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2017 | |
Domestic | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Interest cost on the accumulated obligation | $ 192 | $ 173 | $ 229 |
Prior service (credit) | (219) | (220) | (235) |
Net actuarial (gains) losses | (26) | 24 | |
Net Pension Cost | (53) | (23) | (6) |
Non-U.S. Plans | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost - benefits earned during the period | 1,507 | 1,307 | 1,097 |
Interest cost on the accumulated obligation | 1,122 | 939 | 854 |
Net actuarial (gains) losses | 442 | 332 | 230 |
Net Pension Cost | $ 3,071 | $ 2,578 | $ 2,181 |
Changes in Benefit Obligation (
Changes in Benefit Obligation (Detail) - Postretirement Benefits - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2017 | |
Domestic | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Benefit obligation at beginning of year | $ 5,368 | $ 5,892 | |
Interest cost | 192 | 173 | $ 229 |
Benefit payments | (287) | (297) | |
Actuarial (gains) losses | (283) | (400) | |
Benefit Obligation at End of Year | 4,990 | 5,368 | 5,892 |
Non-U.S. Plans | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Benefit obligation at beginning of year | 33,281 | 27,868 | |
Service cost | 1,507 | 1,307 | 1,097 |
Interest cost | 1,122 | 939 | 854 |
Benefit payments | (664) | (604) | |
Actuarial (gains) losses | 3,801 | 2,638 | |
Currency exchange rate changes | (1,384) | 1,133 | |
Benefit Obligation at End of Year | $ 37,663 | $ 33,281 | $ 27,868 |
Amounts Recognized in Consoli_2
Amounts Recognized in Consolidated Balance Sheets, Postretirement (Detail) - Postretirement Benefits - USD ($) $ in Thousands | May 31, 2019 | May 31, 2018 |
Domestic | ||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Current liabilities | $ (423) | $ (427) |
Noncurrent liabilities | (4,567) | (4,941) |
Net Amount Recognized | (4,990) | (5,368) |
Non-U.S. Plans | ||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Current liabilities | (741) | (696) |
Noncurrent liabilities | (36,922) | (32,585) |
Net Amount Recognized | $ (37,663) | $ (33,281) |
Pretax Net Actuarial Loss, Prio
Pretax Net Actuarial Loss, Prior Service (Cost) and Transition Assets/(Obligation) Recognized in Accumulated Other Comprehensive Income (Loss) not Affecting Retained Earnings, Postretirement (Detail) - Postretirement Benefits - USD ($) $ in Thousands | May 31, 2019 | May 31, 2018 |
Domestic | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Net actuarial gain (loss) | $ 381 | $ 124 |
Prior service credits | 667 | 887 |
Total recognized in accumulated other comprehensive income not affecting retained earnings | 1,048 | 1,011 |
Non-U.S. Plans | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Net actuarial gain (loss) | (12,891) | (9,951) |
Total recognized in accumulated other comprehensive income not affecting retained earnings | $ (12,891) | $ (9,951) |
Changes Recognized in Other C_2
Changes Recognized in Other Comprehensive Income, Postretirement Benefits (Detail) - Postretirement Benefits - USD ($) $ in Thousands | 12 Months Ended | |
May 31, 2019 | May 31, 2018 | |
Domestic | ||
Changes in plan assets and benefit obligations recognized in other comprehensive income: | ||
Net loss (gain) arising during the year | $ (283) | $ (400) |
Amounts recognized as a component of net periodic benefit cost: | ||
Amortization or curtailment recognition of prior service credit (cost) | 219 | 220 |
Amortization or settlement recognition of net gain (loss) | 26 | (24) |
Total recognized in other comprehensive loss (income) | (38) | (204) |
Non-U.S. Plans | ||
Changes in plan assets and benefit obligations recognized in other comprehensive income: | ||
Net loss (gain) arising during the year | 3,801 | 2,638 |
Effect of exchange rates on amounts included in AOCI | (419) | 291 |
Amounts recognized as a component of net periodic benefit cost: | ||
Amortization or settlement recognition of net gain (loss) | (442) | (332) |
Total recognized in other comprehensive loss (income) | $ 2,940 | $ 2,597 |
Weighted-Average Assumptions _2
Weighted-Average Assumptions used to Determine Benefit Obligations and Net Periodic Postretirement Cost (Detail) - Postretirement Benefits | 12 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2017 | |
Domestic | |||
Health Care Cost Trend Rates Assumptions [Line Items] | |||
Year-End Benefit Obligations, Discount rate | 3.44% | 4.03% | |
Year-End Benefit Obligations, Current healthcare cost trend rate | 7.29% | 7.86% | |
Year-End Benefit Obligations, Ultimate healthcare cost trend rate | 4.36% | 4.36% | |
Year-End Benefit Obligation, Year ultimate healthcare cost trend rate will be realized | 2037 | 2037 | |
Net Periodic Postretirement Cost, Discount rate | 4.03% | 3.61% | 3.76% |
Net Periodic Postretirement Cost, Healthcare cost trend rate | 7.86% | 14.75% | 10.37% |
Net Periodic Postretirement Cost, Ultimate healthcare cost trend rate | 4.36% | 4.36% | 4.36% |
Net Periodic Postretirement Cost, Year ultimate healthcare cost trend rate will be realized | 2037 | 2037 | 2037 |
Non-U.S. Plans | |||
Health Care Cost Trend Rates Assumptions [Line Items] | |||
Year-End Benefit Obligations, Discount rate | 3.22% | 3.70% | |
Year-End Benefit Obligations, Current healthcare cost trend rate | 5.77% | 6.02% | |
Year-End Benefit Obligations, Ultimate healthcare cost trend rate | 3.70% | 4.20% | |
Year-End Benefit Obligation, Year ultimate healthcare cost trend rate will be realized | 2040 | 2032 | |
Net Periodic Postretirement Cost, Discount rate | 3.70% | 3.61% | 3.92% |
Net Periodic Postretirement Cost, Healthcare cost trend rate | 6.02% | 5.85% | 5.98% |
Net Periodic Postretirement Cost, Ultimate healthcare cost trend rate | 4.20% | 4.20% | 4.20% |
Net Periodic Postretirement Cost, Year ultimate healthcare cost trend rate will be realized | 2032 | 2030 | 2030 |
Increasing or Decreasing Curren
Increasing or Decreasing Current Health Care Cost Trend (Detail) - Postretirement Benefits - USD ($) $ in Thousands | 12 Months Ended | |
May 31, 2019 | May 31, 2018 | |
Domestic | ||
1% Increase (Decrease) in healthcare cost trend rate | ||
1% Increase in trend rate, accumulated benefit obligation | $ 124 | $ 185 |
1% Increase in trend rate, postretirement cost | 7 | 7 |
1% Decrease in trend rate, accumulated benefit obligation | (112) | (163) |
1% Decrease in trend rate, postretirement cost | (6) | (6) |
Non-U.S. Plans | ||
1% Increase (Decrease) in healthcare cost trend rate | ||
1% Increase in trend rate, accumulated benefit obligation | 8,300 | 6,978 |
1% Increase in trend rate, postretirement cost | 731 | 673 |
1% Decrease in trend rate, accumulated benefit obligation | (6,390) | (5,391) |
1% Decrease in trend rate, postretirement cost | $ (539) | $ (493) |
Postretirement Benefits - Addit
Postretirement Benefits - Additional Information (Detail) - Postretirement Benefits $ in Millions | May 31, 2019USD ($) |
Schedule of Pension and Other Postretirement Benefits Expected Benefit Payments [Line Items] | |
Estimated benefits payable in the years thereafter | $ 9 |
Minimum | |
Schedule of Pension and Other Postretirement Benefits Expected Benefit Payments [Line Items] | |
Estimated benefits payable in the first year | 1.2 |
Estimated benefits payable in the second year | 1.2 |
Estimated benefits payable in the third year | 1.2 |
Estimated benefits payable in the fourth year | 1.2 |
Estimated benefits payable in the fifth year | 1.2 |
Maximum | |
Schedule of Pension and Other Postretirement Benefits Expected Benefit Payments [Line Items] | |
Estimated benefits payable in the first year | 1.5 |
Estimated benefits payable in the second year | 1.5 |
Estimated benefits payable in the third year | 1.5 |
Estimated benefits payable in the fourth year | 1.5 |
Estimated benefits payable in the fifth year | $ 1.5 |
Accrued Loss Reserves (Detail)
Accrued Loss Reserves (Detail) - USD ($) $ in Thousands | May 31, 2019 | May 31, 2018 |
Schedule Of Accrued Liabilities [Line Items] | ||
Accrued losses | $ 19,899 | $ 22,132 |
Accrued Loss Reserves - Noncurrent | 37,554 | 37,106 |
Accrued product liability reserves | ||
Schedule Of Accrued Liabilities [Line Items] | ||
Accrued losses | 11,739 | 12,900 |
Accrued Loss Reserves - Noncurrent | 29,942 | 29,902 |
Accrued warranty reserves | ||
Schedule Of Accrued Liabilities [Line Items] | ||
Accrued losses | 7,013 | 8,088 |
Accrued Loss Reserves - Noncurrent | 3,401 | 3,633 |
Accrued environmental reserves | ||
Schedule Of Accrued Liabilities [Line Items] | ||
Accrued losses | 1,147 | 1,144 |
Accrued Loss Reserves - Noncurrent | $ 4,211 | $ 3,571 |
Changes in Accrued Warranty Bal
Changes in Accrued Warranty Balances (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
May 31, 2019 | May 31, 2018 | May 31, 2017 | ||
Commitments And Contingencies Disclosure [Abstract] | ||||
Beginning Balance | $ 11,721 | $ 19,149 | $ 13,314 | |
Deductions | [1] | (22,262) | (26,199) | (18,269) |
Provision charged to SG&A expense | 20,955 | 17,924 | 23,862 | |
Acquisitions | 847 | 242 | ||
Ending Balance | $ 10,414 | $ 11,721 | $ 19,149 | |
[1] | Primarily claims paid during the year. |
Contingencies and Other Accru_3
Contingencies and Other Accrued Losses - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
May 31, 2019 | May 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Environmental reserve for estimate of remediation costs | $ 1.7 | |
Litigation settlement amount | $ 6.5 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) $ in Thousands | 12 Months Ended | |
May 31, 2019USD ($)Segment | May 31, 2018USD ($)Segment | |
Revenue From Contract With Customer [Abstract] | ||
Number of reportable segments | Segment | 3 | 3 |
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 | |
Net contract assets (liabilities) | $ 855 | |
Long-term deferred revenue | $ 66,500 | $ 64,100 |
Summary of Accounts Receivable
Summary of Accounts Receivable Net of Allowances and Net Contract Assets (Liabilities) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
May 31, 2019 | May 31, 2018 | |
Disaggregation Of Revenue [Line Items] | ||
Accounts receivable, less allowance | $ 1,232,350 | $ 1,113,818 |
Contract assets | 21,628 | 18,212 |
Contract liabilities - short-term | (25,896) | (23,335) |
Net Contract Liabilities | (4,268) | $ (5,123) |
Change in Contract with Customer, Asset and Liability [Abstract] | ||
Change in accounts receivable, less allowance | 118,532 | |
Change in contract assets | 3,416 | |
Change in Net Contract Liabilities | $ 855 | |
Percentage of change in accounts receivable, less allowance | 10.60% | |
Percentage of change in contract assets | 18.80% | |
Percentage of change in Net Contract Liabilities | (16.70%) | |
Short-term | ||
Change in Contract with Customer, Asset and Liability [Abstract] | ||
Change in contract liabilities | $ (2,561) | |
Percentage of change in contract liabilities | 11.00% |
Segment Information - Additiona
Segment Information - Additional Information (Detail) - Segment | 12 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | 3 | 3 | |
Number of operating segments | 6 | ||
Consumer Segment | Sales | Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Percentage of net sales | 29.00% | 28.00% | 28.00% |
Maximum | Sales | Customer Concentration Risk | Home Depot | |||
Segment Reporting Information [Line Items] | |||
Percentage of net sales | 10.00% | 10.00% | 10.00% |
Results of Reportable Segments
Results of Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||
May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2017 | May 31, 2019 | May 31, 2018 | May 31, 2017 | ||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net Sales | $ 1,601,401 | $ 1,140,630 | $ 1,362,531 | $ 1,459,989 | $ 1,558,156 | [1] | $ 1,102,677 | $ 1,315,416 | $ 1,345,394 | $ 5,564,551 | [2] | $ 5,321,643 | [2] | $ 4,958,175 | [2] | |
Income (Loss) Before Income Taxes | 339,845 | 417,048 | 244,333 | |||||||||||||
Identifiable Assets | 5,441,355 | 5,271,822 | 5,441,355 | 5,271,822 | 5,090,449 | |||||||||||
Capital Expenditures | 136,757 | 114,619 | 126,109 | |||||||||||||
Depreciation and Amortization | 141,742 | 128,499 | 116,773 | |||||||||||||
Operating Segments | Industrial Segment | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net Sales | [2] | 2,889,822 | 2,814,755 | 2,564,202 | ||||||||||||
Income (Loss) Before Income Taxes | 243,234 | 270,792 | 243,335 | |||||||||||||
Identifiable Assets | 2,322,511 | 2,422,799 | 2,322,511 | 2,422,799 | 2,382,784 | |||||||||||
Capital Expenditures | 54,514 | 60,145 | 65,083 | |||||||||||||
Depreciation and Amortization | 62,435 | 57,267 | 51,529 | |||||||||||||
Operating Segments | Consumer Segment | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net Sales | [2] | 1,887,767 | 1,754,339 | 1,680,384 | ||||||||||||
Income (Loss) Before Income Taxes | 215,002 | 171,874 | 58,726 | |||||||||||||
Identifiable Assets | 1,984,332 | 1,859,381 | 1,984,332 | 1,859,381 | 1,821,190 | |||||||||||
Capital Expenditures | 54,444 | 38,921 | 45,690 | |||||||||||||
Depreciation and Amortization | 41,882 | 38,037 | 33,374 | |||||||||||||
Operating Segments | Specialty Segment | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net Sales | [2] | 786,962 | 752,549 | 713,589 | ||||||||||||
Income (Loss) Before Income Taxes | 101,441 | 123,307 | 107,904 | |||||||||||||
Identifiable Assets | 860,125 | 740,952 | 860,125 | 740,952 | 759,822 | |||||||||||
Capital Expenditures | 26,364 | 14,958 | 14,104 | |||||||||||||
Depreciation and Amortization | 32,379 | 27,457 | 26,453 | |||||||||||||
Corporate/Other | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Income (Loss) Before Income Taxes | (219,832) | (148,925) | (165,632) | |||||||||||||
Identifiable Assets | $ 274,387 | $ 248,690 | 274,387 | 248,690 | 126,653 | |||||||||||
Capital Expenditures | 1,435 | 595 | 1,232 | |||||||||||||
Depreciation and Amortization | $ 5,046 | $ 5,738 | $ 5,417 | |||||||||||||
[1] | Reflects inventory-related charges of $36.5 million in our consumer reportable segment for product line rationalization and related obsolete inventory identification and $1.2 million in inventory reductions related to restructuring activities in our industrial reportable segment. Additional restructuring charges totaling $17.5 million were incurred during the fourth quarter of fiscal 2018, as further described in Note B, “Restructuring.” We also incurred charges in our industrial segment totaling $4.2 million in connection with the decision to exit Flowcrete China. | |||||||||||||||
[2] | It is not practicable to obtain the information needed to disclose revenues attributable to each of our product lines. |
Net Sales and Long Lived Assets
Net Sales and Long Lived Assets by Regions (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||
May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2017 | May 31, 2019 | May 31, 2018 | May 31, 2017 | ||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net Sales | $ 1,601,401 | $ 1,140,630 | $ 1,362,531 | $ 1,459,989 | $ 1,558,156 | [1] | $ 1,102,677 | $ 1,315,416 | $ 1,345,394 | $ 5,564,551 | [2] | $ 5,321,643 | [2] | $ 4,958,175 | [2] | |
Long-Lived Assets | [3] | 2,888,355 | 2,778,994 | 2,888,355 | 2,778,994 | 2,673,220 | ||||||||||
Domestic | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net Sales | [2] | 3,676,504 | 3,432,034 | 3,269,400 | ||||||||||||
Long-Lived Assets | [3] | 1,859,628 | 1,807,046 | 1,859,628 | 1,807,046 | 1,738,180 | ||||||||||
Foreign | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net Sales | [2] | 1,888,047 | 1,889,609 | 1,688,775 | ||||||||||||
Long-Lived Assets | [3] | 1,028,727 | 971,948 | 1,028,727 | 971,948 | 935,040 | ||||||||||
Foreign | Canada | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net Sales | [2] | 390,199 | 365,349 | 321,696 | ||||||||||||
Long-Lived Assets | [3] | 242,582 | 139,259 | 242,582 | 139,259 | 137,211 | ||||||||||
Foreign | Europe | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net Sales | [2] | 1,029,024 | 1,040,418 | 908,799 | ||||||||||||
Long-Lived Assets | [3] | 343,501 | 361,317 | 343,501 | 361,317 | 349,979 | ||||||||||
Foreign | United Kingdom | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Long-Lived Assets | [3] | 217,414 | 230,071 | 217,414 | 230,071 | 199,415 | ||||||||||
Foreign | Latin America | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net Sales | [2] | 219,044 | 227,207 | 220,336 | ||||||||||||
Foreign | Asia Pacific | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net Sales | [2] | 177,868 | 176,547 | 162,085 | ||||||||||||
Foreign | Other Foreign | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net Sales | [2] | 71,912 | 80,088 | 75,859 | ||||||||||||
Long-Lived Assets | [3] | $ 225,230 | $ 241,301 | 225,230 | 241,301 | 248,435 | ||||||||||
Operating Segments | Industrial Segment | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net Sales | [2] | 2,889,822 | 2,814,755 | 2,564,202 | ||||||||||||
Operating Segments | Industrial Segment | Domestic | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net Sales | [2] | 1,570,891 | 1,480,189 | 1,357,945 | ||||||||||||
Operating Segments | Industrial Segment | Foreign | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net Sales | [2] | 1,318,931 | 1,334,566 | 1,206,257 | ||||||||||||
Operating Segments | Industrial Segment | Foreign | Canada | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net Sales | [2] | 229,386 | 236,594 | 216,218 | ||||||||||||
Operating Segments | Industrial Segment | Foreign | Europe | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net Sales | [2] | 717,659 | 715,754 | 625,399 | ||||||||||||
Operating Segments | Industrial Segment | Foreign | Latin America | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net Sales | [2] | 189,627 | 197,859 | 195,502 | ||||||||||||
Operating Segments | Industrial Segment | Foreign | Asia Pacific | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net Sales | [2] | 118,393 | 112,712 | 100,389 | ||||||||||||
Operating Segments | Industrial Segment | Foreign | Other Foreign | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net Sales | [2] | 63,866 | 71,647 | 68,749 | ||||||||||||
Operating Segments | Consumer Segment | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net Sales | [2] | 1,887,767 | 1,754,339 | 1,680,384 | ||||||||||||
Operating Segments | Consumer Segment | Domestic | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net Sales | [2] | 1,487,205 | 1,351,065 | 1,355,262 | ||||||||||||
Operating Segments | Consumer Segment | Foreign | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net Sales | [2] | 400,562 | 403,274 | 325,122 | ||||||||||||
Operating Segments | Consumer Segment | Foreign | Canada | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net Sales | [2] | 117,305 | 106,460 | 86,773 | ||||||||||||
Operating Segments | Consumer Segment | Foreign | Europe | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net Sales | [2] | 218,021 | 228,046 | 174,304 | ||||||||||||
Operating Segments | Consumer Segment | Foreign | Latin America | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net Sales | [2] | 28,020 | 27,834 | 23,407 | ||||||||||||
Operating Segments | Consumer Segment | Foreign | Asia Pacific | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net Sales | [2] | 29,170 | 32,493 | 33,528 | ||||||||||||
Operating Segments | Consumer Segment | Foreign | Other Foreign | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net Sales | [2] | 8,046 | 8,441 | 7,110 | ||||||||||||
Operating Segments | Specialty Segment | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net Sales | [2] | 786,962 | 752,549 | 713,589 | ||||||||||||
Operating Segments | Specialty Segment | Domestic | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net Sales | [2] | 618,408 | 600,780 | 556,193 | ||||||||||||
Operating Segments | Specialty Segment | Foreign | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net Sales | [2] | 168,554 | 151,769 | 157,396 | ||||||||||||
Operating Segments | Specialty Segment | Foreign | Canada | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net Sales | [2] | 43,508 | 22,295 | 18,705 | ||||||||||||
Operating Segments | Specialty Segment | Foreign | Europe | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net Sales | [2] | 93,344 | 96,618 | 109,096 | ||||||||||||
Operating Segments | Specialty Segment | Foreign | Latin America | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net Sales | [2] | 1,397 | 1,514 | 1,427 | ||||||||||||
Operating Segments | Specialty Segment | Foreign | Asia Pacific | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net Sales | [2] | $ 30,305 | $ 31,342 | $ 28,168 | ||||||||||||
[1] | Reflects inventory-related charges of $36.5 million in our consumer reportable segment for product line rationalization and related obsolete inventory identification and $1.2 million in inventory reductions related to restructuring activities in our industrial reportable segment. Additional restructuring charges totaling $17.5 million were incurred during the fourth quarter of fiscal 2018, as further described in Note B, “Restructuring.” We also incurred charges in our industrial segment totaling $4.2 million in connection with the decision to exit Flowcrete China. | |||||||||||||||
[2] | It is not practicable to obtain the information needed to disclose revenues attributable to each of our product lines. | |||||||||||||||
[3] | Long-lived assets include all non-current assets, excluding non-current deferred income taxes. |
Quarterly Result of Operations
Quarterly Result of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | [1] | Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2017 | May 31, 2019 | May 31, 2018 | May 31, 2017 | ||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||
Net Sales | $ 1,601,401 | $ 1,140,630 | $ 1,362,531 | $ 1,459,989 | $ 1,558,156 | $ 1,102,677 | $ 1,315,416 | $ 1,345,394 | $ 5,564,551 | [2] | $ 5,321,643 | [2] | $ 4,958,175 | [2] | |||||
Gross Profit | 683,756 | 446,140 | 537,969 | 594,042 | 618,696 | 439,493 | 551,015 | 572,008 | 2,261,907 | 2,181,212 | 2,165,688 | ||||||||
Net Income Attributable to RPM International Inc. Stockholders | $ 133,380 | [3] | $ 14,190 | [3] | $ 49,224 | [3] | $ 69,764 | [3] | $ 85,664 | $ 40,227 | $ 95,463 | $ 116,416 | $ 266,558 | $ 337,770 | $ 181,823 | ||||
Basic Earnings Per Share | $ 1.03 | $ 0.11 | $ 0.37 | $ 0.52 | $ 0.65 | $ 0.30 | $ 0.72 | $ 0.87 | $ 2.03 | $ 2.55 | $ 1.37 | ||||||||
Diluted Earnings Per Share | 1.02 | 0.11 | 0.37 | 0.52 | 0.63 | 0.30 | 0.70 | 0.86 | $ 2.01 | $ 2.50 | $ 1.36 | ||||||||
Dividends Per Share | $ 0.350 | $ 0.350 | $ 0.350 | $ 0.320 | $ 0.320 | $ 0.320 | $ 0.320 | $ 0.300 | |||||||||||
[1] | Reflects inventory-related charges of $36.5 million in our consumer reportable segment for product line rationalization and related obsolete inventory identification and $1.2 million in inventory reductions related to restructuring activities in our industrial reportable segment. Additional restructuring charges totaling $17.5 million were incurred during the fourth quarter of fiscal 2018, as further described in Note B, “Restructuring.” We also incurred charges in our industrial segment totaling $4.2 million in connection with the decision to exit Flowcrete China. | ||||||||||||||||||
[2] | It is not practicable to obtain the information needed to disclose revenues attributable to each of our product lines. | ||||||||||||||||||
[3] | Reflects inventory-related charges of $10.5 million in our consumer reportable segment resulting from more proactive management of inventory and $10.0 million in inventory reductions related to restructuring activities in our industrial reportable segment. Reflects restructuring charges totaling $42.3 million that were incurred throughout fiscal 2019, as further described in Note B, “Restructuring. |
Quarterly Result of Operation_2
Quarterly Result of Operations (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
May 31, 2018 | May 31, 2019 | May 31, 2018 | |
Quarterly Financial Information [Line Items] | |||
Inventory markdowns | $ 36,500 | $ 10,500 | |
Restructuring charges | 42,310 | $ 17,514 | |
Additional restructuring charges | 17,500 | ||
Consumer Segment | |||
Quarterly Financial Information [Line Items] | |||
Inventory markdowns | 36,500 | 10,500 | |
Industrial Segment | |||
Quarterly Financial Information [Line Items] | |||
Inventory markdowns | 1,200 | $ 10,000 | |
Industrial Segment | Location Closing | China | Bad Debt and Inventory Reserve | |||
Quarterly Financial Information [Line Items] | |||
Pretax charges relating to decision to exit | $ 4,200 |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts and Reserves (Schedule II) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
May 31, 2019 | May 31, 2018 | May 31, 2017 | |||
Allowance for Doubtful Accounts, Current | |||||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||||
Balance at Beginning of Period | $ 46,344 | $ 44,138 | $ 24,600 | ||
Additions Charged to Selling, General and Administrative | 18,646 | 4,487 | 13,747 | ||
Acquisitions (Disposals) of Businesses and Reclassifications | (131) | ||||
(Deductions) Additions | [1] | (10,111) | (2,281) | 5,791 | |
Balance at End of Period | 54,748 | 46,344 | 44,138 | ||
Accrued Product Liability Reserves, Current | |||||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||||
Balance at Beginning of Period | 12,900 | 14,932 | 25,100 | ||
Additions Charged to Selling, General and Administrative | 12,696 | 6,169 | 5,262 | ||
(Deductions) Additions | [2] | (13,857) | (8,201) | (15,430) | |
Balance at End of Period | 11,739 | 12,900 | 14,932 | ||
Accrued Loss Reserves, Current | |||||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||||
Balance at Beginning of Period | 1,144 | 1,102 | 1,053 | ||
Additions Charged to Selling, General and Administrative | 875 | 413 | 636 | ||
Acquisitions (Disposals) of Businesses and Reclassifications | [3] | (322) | |||
(Deductions) Additions | [2] | (872) | (371) | (265) | |
Balance at End of Period | 1,147 | 1,144 | 1,102 | ||
Accrued Product Liability, Noncurrent | |||||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||||
Balance at Beginning of Period | 29,902 | 28,222 | 29,045 | ||
Additions Charged to Selling, General and Administrative | 8,301 | 16,581 | 15,005 | ||
Acquisitions (Disposals) of Businesses and Reclassifications | 281 | ||||
(Deductions) Additions | [2] | (8,261) | (14,901) | (16,109) | |
Balance at End of Period | 29,942 | 29,902 | 28,222 | ||
Environmental Reserves, Noncurrent | |||||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||||
Balance at Beginning of Period | 3,571 | 1,747 | 1,676 | ||
Additions Charged to Selling, General and Administrative | 895 | 5,350 | [4] | 404 | |
Acquisitions (Disposals) of Businesses and Reclassifications | [3] | 328 | |||
(Deductions) Additions | (255) | (3,526) | (661) | ||
Balance at End of Period | $ 4,211 | $ 3,571 | $ 1,747 | ||
[1] | Uncollectible accounts written off, net of recoveries | ||||
[2] | Primarily claims paid during the year, net of insurance contributions | ||||
[3] | Primarily transfers between current and noncurrent | ||||
[4] | Approximately $1.7 million of the additions are reflected in the line item entitled, “Restructuring Expense,” in our Consolidated Statements of Income. |
Valuation and Qualifying Acco_3
Valuation and Qualifying Accounts and Reserves (Schedule II) (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
May 31, 2019 | May 31, 2018 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Restructuring Expense | $ 42,310 | $ 17,514 |
Environmental Reserves, Noncurrent | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Restructuring Expense | $ 1,700 |