Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
May 31, 2023 | Jul. 21, 2023 | Nov. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | May 31, 2023 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | RPM | ||
Entity Registrant Name | RPM INTERNATIONAL INC. | ||
Entity Central Index Key | 0000110621 | ||
Current Fiscal Year End Date | --05-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 129,051,521 | ||
Entity Public Float | $ 13,209,706,497 | ||
Entity File Number | 1-14187 | ||
Entity Tax Identification Number | 02-0642224 | ||
Entity Address, Address Line One | 2628 Pearl Road | ||
Entity Address, City or Town | Medina | ||
Entity Address, State or Province | OH | ||
Entity Address, Postal Zip Code | 44256 | ||
City Area Code | 330 | ||
Local Phone Number | 273-5090 | ||
Entity Incorporation, State or Country Code | DE | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Security Exchange Name | NYSE | ||
Title of 12(b) Security | Common Stock, par value $0.01 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the definitive Proxy Statement to be used in connection with the Registrant’s Annual Meeting of Stockholders to be held on October 5, 2023 (the “2023 Proxy Statement”) are incorporated by reference into Part III of this Annual Report on Form 10-K. Except as otherwise stated, the information contained in this Annual Report on Form 10-K is as of May 31, 2023. | ||
Auditor Name | Deloitte & Touche LLP | ||
Auditor Location | Cleveland, Ohio | ||
Auditor Firm ID | 34 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | May 31, 2023 | May 31, 2022 |
Current Assets | ||
Cash and cash equivalents | $ 215,787 | $ 201,672 |
Trade accounts receivable (less allowances of $49,482 and $46,669, respectively) | 1,503,040 | 1,432,632 |
Inventories | 1,135,496 | 1,212,618 |
Prepaid expenses and other current assets | 329,845 | 304,887 |
Total current assets | 3,184,168 | 3,151,809 |
Property, Plant and Equipment, at Cost | 2,332,916 | 2,132,915 |
Allowance for depreciation | (1,093,440) | (1,028,932) |
Property, plant and equipment, net | 1,239,476 | 1,103,983 |
Other Assets | ||
Goodwill | 1,293,588 | 1,337,868 |
Other intangible assets, net of amortization | 554,991 | 592,261 |
Operating lease right-of-use assets | 329,582 | 307,797 |
Deferred income taxes | 15,470 | 18,914 |
Other | 164,729 | 195,074 |
Total other assets | 2,358,360 | 2,451,914 |
Total Assets | 6,782,004 | 6,707,706 |
Current Liabilities | ||
Accounts payable | 680,938 | 800,369 |
Current portion of long-term debt | 178,588 | 603,454 |
Accrued compensation and benefits | 257,328 | 262,445 |
Accrued losses | 26,470 | 24,508 |
Other accrued liabilities | 347,477 | 325,632 |
Total current liabilities | 1,490,801 | 2,016,408 |
Long-Term Liabilities | ||
Long-term debt, less current maturities | 2,505,221 | 2,083,155 |
Operating lease liabilities | 285,524 | 265,139 |
Other long-term liabilities | 267,111 | 276,990 |
Deferred income taxes | 90,347 | 82,186 |
Total long-term liabilities | 3,148,203 | 2,707,470 |
Contingencies and Accrued Losses (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 145,124 and outstanding 128,766 as of May 2023; issued 144,685 and outstanding 129,199 as of May 2022 | 1,288 | 1,292 |
Paid-in capital | 1,124,825 | 1,096,147 |
Treasury stock, at cost | (784,463) | (717,019) |
Accumulated other comprehensive (loss) | (604,935) | (537,337) |
Retained earnings | 2,404,125 | 2,139,346 |
Total RPM International Inc. stockholders' equity | 2,140,840 | 1,982,429 |
Noncontrolling Interest | 2,160 | 1,399 |
Total equity | 2,143,000 | 1,983,828 |
Total Liabilities and Stockholders' Equity | $ 6,782,004 | $ 6,707,706 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | May 31, 2023 | May 31, 2022 |
Statement of Financial Position [Abstract] | ||
Trade accounts receivable, allowances | $ 49,482 | $ 46,669 |
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 | 145,124,000 | 144,685,000 |
Common stock, outstanding | 128,766,000 | 129,199,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands | 12 Months Ended | |||
May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
Income Statement [Abstract] | ||||
Net Sales | [1] | $ 7,256,414,000 | $ 6,707,728,000 | $ 6,106,288,000 |
Cost of Sales | 4,508,370,000 | 4,274,675,000 | 3,701,129,000 | |
Gross Profit | 2,748,044,000 | 2,433,053,000 | 2,405,159,000 | |
Selling, General and Administrative Expenses | 1,956,040,000 | 1,788,284,000 | 1,664,026,000 | |
Restructuring Expense | 15,465,000 | 6,276,000 | 18,106,000 | |
Goodwill Impairment | 36,745,000 | 0 | 0 | |
Interest Expense | 119,015,000 | 87,928,000 | 85,400,000 | |
Investment (Income) Expense, Net | (9,748,000) | 7,595,000 | (44,450,000) | |
(Gain) on Sales of Assets and Business, Net | (28,632,000) | (51,983,000) | ||
Other Expense (Income), Net | 9,777,000 | (11,846,000) | 13,639,000 | |
Income Before Income Taxes | 649,382,000 | 606,799,000 | 668,438,000 | |
Provision for Income Taxes | 169,651,000 | 114,333,000 | 164,938,000 | |
Net Income | 479,731,000 | 492,466,000 | 503,500,000 | |
Less: Net Income Attributable to Noncontrolling Interests | 1,040,000 | 985,000 | 857,000 | |
Net Income Attributable to RPM International Inc. Stockholders | $ 478,691,000 | $ 491,481,000 | $ 502,643,000 | |
Average Number of Shares of Common Stock Outstanding: | ||||
Basic | 127,507 | 127,948 | 128,334 | |
Diluted | [2] | 128,816 | 129,580 | 128,927 |
Earnings per Share of Common Stock Attributable to RPM International Inc. Stockholders: | ||||
Basic | $ 3.74 | $ 3.81 | $ 3.89 | |
Diluted | $ 3.72 | $ 3.79 | $ 3.87 | |
[1] It is not practicable to obtain the information needed to disclose revenues attributable to each of our product lines. For the years ended May 31, 2023, 2022 and 2021, approximately 750,000 , 655,000 and 362,016 shares of stock, respectively, granted under stock-based compensation plans were excluded from the calculation of d iluted 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, 2023 | May 31, 2022 | May 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income | $ 479,731 | $ 492,466 | $ 503,500 |
Other comprehensive (loss) income | |||
Foreign currency translation adjustments, net of tax | (69,918) | (95,214) | 140,499 |
Pension and other postretirement benefit liability adjustments, net of tax | 4,619 | 37,227 | 87,107 |
Unrealized (loss) on securities and other, net of tax | (549) | (1,725) | (950) |
Unrealized (loss) gain on derivatives, net of tax | (1,766) | 37,153 | (23,911) |
Total other comprehensive (loss) income | (67,614) | (22,559) | 202,745 |
Total Comprehensive Income | 412,117 | 469,907 | 706,245 |
Less: Comprehensive Income Attributable to Noncontrolling Interests | 1,024 | 879 | 988 |
Comprehensive Income Attributable to RPM International Inc. Stockholders | $ 411,093 | $ 469,028 | $ 705,257 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Cash Flows From Operating Activities: | |||
Net Income | $ 479,731,000 | $ 492,466,000 | $ 503,500,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 154,949,000 | 153,074,000 | 146,857,000 |
Restructuring charges, net of payments | (2,516,000) | (2,909,000) | |
Goodwill impairment | 36,745,000 | 0 | 0 |
Fair value adjustments to contingent earnout obligations | 3,253,000 | (582,000) | |
Deferred income taxes | 6,236,000 | (25,067,000) | 20,188,000 |
Stock-based compensation expense | 28,673,000 | 40,114,000 | 40,926,000 |
Net loss (gain) on marketable securities | 2,086,000 | 17,706,000 | (38,774,000) |
Net (gain) on sales of assets and a business | (28,632,000) | (51,983,000) | |
Other | 1,683,000 | (66,000) | (2,340,000) |
Changes in assets and liabilities, net of effect from purchases and sales of businesses: | |||
(Increase) in receivables | (94,585,000) | (187,299,000) | (88,618,000) |
Decrease (increase) in inventory | 66,805,000 | (304,197,000) | (68,802,000) |
Decrease (increase) in prepaid expenses and other current and long-term assets | 1,364,000 | (13,040,000) | (11,457,000) |
(Decrease) increase in accounts payable | (116,053,000) | 101,223,000 | 151,388,000 |
(Decrease) increase in accrued compensation and benefits | (2,643,000) | 9,737,000 | 62,966,000 |
Increase (decrease) in accrued losses | 2,231,000 | (3,956,000) | 8,510,000 |
Increase (decrease) in other accrued liabilities | 38,515,000 | (50,718,000) | 43,010,000 |
Other | 2,293,000 | ||
Cash Provided By Operating Activities | 577,105,000 | 178,731,000 | 766,156,000 |
Cash Flows From Investing Activities: | |||
Capital expenditures | (254,435,000) | (222,403,000) | (157,199,000) |
Acquisition of businesses, net of cash acquired | (47,542,000) | (127,457,000) | (165,223,000) |
Purchase of marketable securities | (18,674,000) | (15,032,000) | (121,669,000) |
Proceeds from sales of marketable securities | 12,731,000 | 21,533,000 | 112,298,000 |
Proceeds from sales of assets and a business | 58,288,000 | 76,590,000 | |
Other | (72,000) | 7,222,000 | 5,405,000 |
Cash (Used For) Investing Activities | (249,704,000) | (259,547,000) | (326,388,000) |
Cash Flows From Financing Activities: | |||
Additions to long-term and short-term debt | 341,720,000 | 437,564,000 | |
Reductions of long-term and short-term debt | (355,463,000) | (101,505,000) | (188,278,000) |
Cash dividends | (213,912,000) | (204,394,000) | (194,720,000) |
Repurchase of common stock | (50,000,000) | (52,500,000) | (49,956,000) |
Shares of common stock returned for taxes | (17,047,000) | (11,549,000) | (22,826,000) |
Payments of acquisition-related contingent consideration | (3,765,000) | (5,774,000) | (2,218,000) |
Other | (2,689,000) | (4,452,000) | (1,621,000) |
Cash (Used For) Provided By Financing Activities | (301,156,000) | 57,390,000 | (459,619,000) |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (12,130,000) | (21,606,000) | 33,139,000 |
Net Change in Cash and Cash Equivalents | 14,115,000 | (45,032,000) | 13,288,000 |
Cash and Cash Equivalents at Beginning of Period | 201,672,000 | 246,704,000 | 233,416,000 |
Cash and Cash Equivalents at End of Period | 215,787,000 | 201,672,000 | 246,704,000 |
Cash paid during the year for: | |||
Interest | 113,953,000 | 81,838,000 | 82,440,000 |
Income taxes, net of refunds | 134,436,000 | 172,254,000 | 147,436,000 |
Supplemental Disclosures of Non-Cash Investing and Financing Activities: | |||
Capital expenditures accrued within accounts payable at year-end | $ 34,470,000 | $ 27,237,000 | $ 29,848,000 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Paid-In Capital | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Total RPM International Inc. Equity | Noncontrolling Interests |
Beginning Balance at May. 31, 2020 | $ 1,264,663 | $ 1,295 | $ 1,014,428 | $ (580,117) | $ (717,497) | $ 1,544,336 | $ 1,262,445 | $ 2,218 |
Beginning Balance (in shares) at May. 31, 2020 | 129,511,000 | |||||||
Net income | 503,500 | 502,643 | 502,643 | 857 | ||||
Other comprehensive income (loss) | 202,745 | 202,613 | 202,613 | 132 | ||||
Dividends declared and paid | (194,720) | (194,720) | (194,720) | |||||
Other noncontrolling interest activity | (1,246) | (1,246) | ||||||
Share repurchases under repurchase program | $ (49,956) | $ (6) | 6 | (49,956) | (49,956) | |||
Share repurchases under repurchase program (in shares) | (594,061) | (594,000) | ||||||
Stock compensation expense and other deferred compensation, shares granted less shares returned for taxes | $ 18,039 | $ 6 | 40,966 | (22,933) | 18,039 | |||
Stock compensation expense and other deferred compensation, shares granted less shares returned for taxes (in shares) | 656,000 | |||||||
Ending Balance at May. 31, 2021 | 1,743,025 | $ 1,295 | 1,055,400 | (653,006) | (514,884) | 1,852,259 | 1,741,064 | 1,961 |
Ending Balance (in shares) at May. 31, 2021 | 129,573,000 | |||||||
Net income | 492,466 | 491,481 | 491,481 | 985 | ||||
Other comprehensive income (loss) | (22,559) | (22,453) | (22,453) | (106) | ||||
Dividends declared and paid | (204,394) | (204,394) | (204,394) | |||||
Other noncontrolling interest activity | (1,441) | (1,441) | ||||||
Share repurchases under repurchase program | $ (52,500) | $ (6) | 6 | (52,500) | (52,500) | |||
Share repurchases under repurchase program (in shares) | (601,155) | (601,000) | ||||||
Stock compensation expense and other deferred compensation, shares granted less shares returned for taxes | $ 29,231 | $ 3 | 40,741 | (11,513) | 29,231 | |||
Stock compensation expense and other deferred compensation, shares granted less shares returned for taxes (in shares) | 227,000 | |||||||
Ending Balance at May. 31, 2022 | 1,983,828 | $ 1,292 | 1,096,147 | (717,019) | (537,337) | 2,139,346 | 1,982,429 | 1,399 |
Ending Balance (in shares) at May. 31, 2022 | 129,199,000 | |||||||
Net income | 479,731 | 478,691 | 478,691 | 1,040 | ||||
Other comprehensive income (loss) | (67,614) | (67,598) | (67,598) | (16) | ||||
Dividends declared and paid | (213,912) | (213,912) | (213,912) | |||||
Other noncontrolling interest activity | (263) | (263) | ||||||
Share repurchases under repurchase program | $ (50,000) | $ (6) | 6 | (50,000) | (50,000) | |||
Share repurchases under repurchase program (in shares) | (598,653) | (598,000) | ||||||
Stock compensation expense and other deferred compensation, shares granted less shares returned for taxes | $ 11,230 | $ 2 | 28,672 | (17,444) | 11,230 | |||
Stock compensation expense and other deferred compensation, shares granted less shares returned for taxes (in shares) | 165,000 | |||||||
Ending Balance at May. 31, 2023 | $ 2,143,000 | $ 1,288 | $ 1,124,825 | $ (784,463) | $ (604,935) | $ 2,404,125 | $ 2,140,840 | $ 2,160 |
Ending Balance (in shares) at May. 31, 2023 | 128,766,000 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared and paid per share | $ 1.66 | $ 1.58 | $ 1.50 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
May 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE A — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 1) Consolidation, Noncontrolling Interests and Basis of Presentation The accompanying Consolidated Financial Statements have been prepared in accordance with GAAP and the instructions to Form 10-K. In our opinion, all adjustments (consisting of normal accruals) considered necessary for fair presentation have been included for the periods ended May 31, 2023, 2022, and 2021. The presentation of the Consolidated Statements of Comprehensive Income has been condensed and our disclosure in Note K, “Accumulated Other Comprehensive Income (Loss),” has correspondingly been expanded. As a result, certain prior period amounts have been reclassified to conform with the current year’s 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, 2023, we completed a total of six acquisitions across our four reportable segments. Most notably, within our Consumer reportable segment, we acquired a distributor of branded chalk paints, primarily targeting the upscale décor market in the U.K. and Ireland. In addition, on January 20, 2023, we completed the divestiture of our Guardian business for proceeds of approximately $ 49.2 million, net of cash disposed. The transaction also includes a future contingent cash receipt of up to an additional $ 7.5 million which may be recognized upon achievement of certain financial goals. In connection with the divestiture, we recognized a gain of $ 24.7 million during fiscal 2023, which is included in (gain) on sales of assets and business, net in our Consolidated Statements of Income. Guardian, headquartered in Hickory, North Carolina, was a reporting unit included in our SPG segment and is a seller of furniture protection plans and protection products for fabric, leather, and wood applications. The sale of Guardian does not represent a strategic shift that will have a major effect on our operations and financial results and therefore is not presented as discontinued operations. During the fiscal year ended May 31, 2022, we completed a total of eight acquisitions in three of our four reportable segments. Most notably, within our CPG reportable segment, we acquired a chemical manufacturing facility located in Corsicana, Texas. The facility is being repurposed to act as a manufacturing campus for a number of RPM's operating companies. Also within our CPG reportable segment, we acquired a provider of indoor air quality solutions headquartered in Clearwater, Florida. We also completed several other acquisitions within our CPG, SPG and PCG reportable segments. No divestitures were completed during fiscal 2022. 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 2022 acquisitions. For acquisitions completed during fiscal 2023, the valuations of consideration transferred, total assets acquired, and liabilities assumed are substantially complete. The primary areas that remain open relate to working capital adjustments. Acquisitions are aggregated by year of purchase in the following table : Fiscal 2023 Acquisitions Fiscal 2022 Acquisitions (In thousands) Weighted-Average Total Weighted-Average Total Current assets $ 17,508 $ 9,604 Property, plant and equipment 3,605 71,658 Goodwill N/A 25,407 N/A 30,747 Trade names - indefinite lives N/A 3,168 N/A 1,050 Other intangible assets 10 14,965 13 21,010 Other long-term assets 1,647 2,316 Total Assets Acquired $ 66,300 $ 136,385 Liabilities assumed ( 12,287 ) ( 7,159 ) Net Assets Acquired $ 54,013 (1) $ 129,226 (2) (1) Figure includes cash acquired of $ 6.5 million. (2) Figure includes cash acquired of $ 1.8 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, 2023 and 2022 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 losses increased during the current fiscal year due to the strengthening of the U.S. dollar, resulting in net transactional losses of approximately $ 8.9 million. This compared to more moderate net transactional foreign exchange losses in fiscal 2022 and fiscal 2021 of approximately $ 4.3 million and $ 2.8 million, respectively as a result of more modest fluctuations in the strength of the U.S. dollar. 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, 2023 2022 (In thousands) Land $ 92,954 $ 88,137 Buildings and leasehold improvements 552,775 519,391 Machinery and equipment 1,687,187 1,525,387 Total property, plant and equipment, at cost 2,332,916 2,132,915 Less: allowance for depreciation and amortization 1,093,440 1,028,932 Property, plant and equipment, net $ 1,239,476 $ 1,103,983 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: Buildings and leasehold improvements 1 to 50 years Machinery and equipment 1 to 36 years Total deprecia tion expense for each fiscal period includes the charges to income that result from the amortization of assets recorded under finance leases. For the periods ended May 31, 2023, 2022 and 2021, we recorded depreciation expense of $ 108.4 million, $ 104.3 million, and $ 99.4 million , respectively. 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 is 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. 8) Shipping Costs We identify shipping and handling costs as costs paid to third-party shippers for transporting products to customers, and we include these costs in cost of sales in our Consolidated Statements of Income. 9) Allowance for Credit Losses Our primary allowance for credit losses is the allowance for doubtful accounts. The allowance for doubtful accounts reduces the trade accounts receivable balance to the estimated net realizable value equal to the amount that is expected to be collected. The allowance is established using assessments of current creditworthiness of customers, historical collection experience, the aging of receivables and other currently available evidence. Trade accounts receivable balances are written-off against the allowance if a final determination of uncollectibility is made. All provisions for allowances for doubtful collection of accounts are included in SG&A expenses. 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, 2023, 2022 and 2021, bad debt expense approximated $ 13.6 million, $ 4.3 million and $ 10.0 million, respectively. 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 2023, we recorded $ 7.6 million of inventory charges within our SPG Segment related to product line and SKU rationalization and related obsolete inventory identification. Inventories were composed of the following major classes: May 31, 2023 2022 (In thousands) Raw materials and supplies $ 451,504 $ 560,886 Finished goods 683,992 651,732 Total Inventory $ 1,135,496 $ 1,212,618 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 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. Goodwill is assigned to reporting units that are expected to benefit from the synergies of the business combination as of the acquisition date. Once goodwill has been allocated to the reporting units, it no longer retains its identification with a particular acquisition and becomes identified with the reporting unit in its entirety. Accordingly, the fair value of the reporting unit as a whole is available to support the recoverability of its goodwill. We evaluate our reporting units when changes in our operating structure occur, and if necessary, reassign goodwill using a relative fair value allocation approach. We test our goodwill balances at least annually, or more frequently as impairment indicators arise, at the reporting unit level. Our annual impairment assessment date has been designated as the first day of our fourth fiscal quarter. Our reporting units have been identified at the component level, which is one level below our operating segments. We follow the FASB guidance found in ASC 350 that simplifies how an entity tests goodwill for impairment. It provides an option to first 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, and whether it is necessary to perform a quantitative goodwill impairment test. We assess qualitative factors in each of our reporting units that carry goodwill. We assess these qualitative factors to determine whether it is necessary to perform the quantitative goodwill impairment test. The 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 quantitative analysis. We applied the quantitative process during our annual goodwill impairment assessments performed during the fourth quarters of fiscal 2023, 2022 and 2021. In applying the quantitative test, we compare the fair value of a reporting unit to its carrying value. If the calculated fair value is less than the current carrying value, then impairment of the reporting unit exists. Calculating the fair value of a reporting unit requires our use of estimates and assumptions. We use significant judgment in determining the most appropriate method to establish the fair value of a reporting unit. We estimate the fair value of a reporting unit by employing various valuation techniques, depending on the availability and reliability of comparable market value indicators, and employ methods and assumptions that include the application of third-party market value indicators and the computation of discounted future cash flows determined from estimated cashflow adjustments to a reporting unit’s annual 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. Our fair value estimations may include a combination of value indications from both the market and income approaches, as the income approach considers the future cash flows from a reporting unit’s ongoing operations as a going concern, while the market approach considers the current financial environment in establishing fair value. In applying the market approach, we use market multiples derived from a set of similar companies. In applying the income approach, we evaluate discounted future cash flows determined from estimated cashflow adjustments to a reporting unit’s projected EBITDA. Under this approach, we calculate the fair value of a reporting unit based on the present value of estimated future cash flows. In applying the discounted cash flow methodology utilized in the income approach, we rely on a number of factors, including future business plans, actual and forecasted operating results, and market data. The significant assumptions employed under this method include discount rates; revenue growth rates, including assumed terminal growth rates; and operating margins used to project future cash flows for a reporting unit. The discount rates utilized reflect market-based estimates of capital costs and discount rates adjusted for management’s assessment of a market participant’s view with respect to other risks associated with the projected cash flows of the individual reporting unit. Our estimates are based upon assumptions we believe to be reasonable, but which by nature are uncertain and unpredictable. We believe we incorporate ample sensitivity ranges into our analysis of goodwill impairment testing for a reporting unit, such that actual experience would need to be materially out of the range of expected assumptions in order for an impairment to remain undetected. Conclusion on Annual Goodwill Impairment Tests As a result of the annual impairment assessments performed for fiscal 2023, 2022 and 2021, there were no goodwill impairments. Impairment Charge Recorded in the Third Quarter of Fiscal 2023 Although no impairment charge was recorded during these periods related to the annual impairment test, we did record a goodwill impairment charge in fiscal 2023. As previously reported, we announced our MAP 2025 operational improvement initiative in August 2022. Due to the challenged macroeconomic environment we evaluated certain business restructuring actions, specifically our go to market strategy for operating in Europe. During the third quarter ended February 28, 2023, due to declining profitability and regulatory headwinds, management decided to restructure the USL reporting unit within our PCG segment, and is correspondingly exploring strategic alternatives for our infrastructure services business within the U.K., which represents approximately 30 % of annual revenues of the reporting unit. Due to this decision, we determined that an interim goodwill impairment assessment was required, as well as an impairment assessment for our other long-lived assets. Accordingly, we recorded an impairment loss totaling $ 36.7 million for the impairment of goodwill in our USL reporting unit during fiscal 2023. Refer to Note C, “Goodwill and Other Intangible Assets,” to the Consolidated Financial Statements for additional details on this goodwill impairment charge. Changes in the Composition of Reporting Units in the Fourth Quarter of Fiscal 2023 Subsequent to our annual impairment assessment, in the fourth quarter of fiscal 2023 and in connection with our MAP 2025 initiative, the Viapol business within our CPG segment was realigned from our Sealants reporting unit to our Euclid reporting unit. We performed an interim goodwill impairment assessment for both of the impacted reporting units using a quantitative assessment. Based on this assessment, we concluded that the estimated fair values exceeded the carrying values for these reporting units, and accordingly, no goodwill impairment was identified as a result of this realignment. Indefinite-Lived Intangible Assets Additionally, we test all indefinite-lived intangible assets for impairment at least annually during our fiscal fourth quarter. We follow the guidance provided by ASC 350 that simplifies how an entity tests indefinite-lived intangible assets for impairment. It provides an option 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 quantitative processes during our annual indefinite-lived intangible asset impairment assessments performed during the fourth quarters of fiscal 2023, 2022 and 2021. 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. Our required annual impairment test of our indefinite-lived intangible assets performed during fiscal 2023, 2022 and 2021 did not result in an impairment charge. Although no impairment losses were recorded during these periods related to the annual impairment test, we did record an intangible asset impairment charge in fiscal 2023. In connection with MAP 2025 and related to the goodwill impairment charge noted above, we determined that an interim impairment assessment for our other long-lived assets was required following management's decision to restructure the USL reporting unit within our PCG segment. Accordingly, we recorded an impairment loss totaling $ 2.5 million for the impairment of an indefinite-lived tradename in our USL reporting unit during fiscal 2023. We did not record any impairments for our definite-lived long-lived assets as a result of this assessment. Refer to Note C, "Goodwill and Other Intangible Assets," to the Consolidated Financial Statements for further discussion. Definite-Lived Intangible Assets In accordance with the guidance provided by ASC 360, "Property, Plant, and Equipment," we assess identifiable, amortizable intangibles assets for impairment whenever events or changes in facts and circumstances indicate the possibility that the carrying values of these assets may not be recoverable over their estimated remaining useful lives. Factors considered important in our assessment, which might trigger an impairment evaluation, include the following: • significant under-performance relative to historical or projected future operating results; • significant changes in the manner of our use of the acquired assets; • significant changes in the strategy for our overall business; and • significant negative industry or economic trends. Measuring a potential impairment of amortizable intangibles assets requires the use of various estimates and assumptions, including the determination of which cash flows are directly related to the assets being evaluated, the respective useful lives over which those cash flows will occur and potential residual values, if any. If we determine that the carrying values of these assets may not be recoverable based upon the existence of one or more of the above-described indicators or other factors, any impairment amounts would be measured based on the projected net cash flows expected from these assets, including any net cash flows related to eventual disposition activities. The determination of any impairment losses would be based on the best information available, including internal estimates of discounted cash flows; market participant assumptions; quoted market prices, when available; and independent appraisals, as appropriate, to determine fair values. Cash flow estimates would be based on our historical experience and our internal business plans, with appropriate discount rates applied. We did not record any impairment charges related to our definite-lived intangible assets during fiscal 2023, 2022 and 2021. 12) Advertising Costs Advertising costs are charged to operations w hen incurred and are included in SG&A expenses. For the years ended May 31, 2023, 2022 and 2021, advertising costs were $ 62.0 million, $ 45.4 million and $ 61.1 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, 2023, 2022 and 2021 were $ 86.6 million, $ 80.5 million and $ 77.6 million, respectively. 14) Stock-Based Compensation Stock-based compensation represents the cost related to stock-based awards granted to our associates 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,” to the Consolidated Financial Statements for further information. 15) Investment (Income) Expense, Net Investment (income) expense, net, consists of the following components: Year Ended May 31, 2023 2022 2021 (In thousands) Interest (income) $ ( 9,250 ) $ ( 4,435 ) $ ( 3,555 ) Net loss (gain) on marketable securities 2,086 17,706 ( 38,774 ) Dividend (income) ( 2,584 ) ( 5,676 ) ( 2,121 ) Investment (income) expense, net $ ( 9,748 ) $ 7,595 $ ( 44,450 ) Net Loss (Gain) on Marketable Securities Year Ended May 31, 2023 2022 2021 (In thousands) Unrealized losses (gains) on marketable equity securities $ 2,667 $ 19,164 $ ( 16,133 ) Realized (gains) on marketable equity securities ( 551 ) ( 1,488 ) ( 22,680 ) Realized (gains) losses on available-for-sale debt securities ( 30 ) 30 39 Net loss (gain) on marketable securities $ 2,086 $ 17,706 $ ( 38,774 ) 16) Other Expense (Income), Net Other expense (income), net, consists of the following components: Year Ended May 31, 2023 2022 2021 (In thousands) Pension non-service costs (credits) $ 10,381 $ ( 10,581 ) $ 14,542 Other ( 604 ) ( 1,265 ) ( 903 ) Other expense (income), net $ 9,777 $ ( 11,846 ) $ 13,639 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 both the treasury stock and two-class method, as our unvested share-based payment awards contain rights to receive non-forfeitable dividends are considered participating securities. We calculate both Basic and Diluted EPS under each method and compare the results, reporting the method that is most dilutive. 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 and restricted stock awards. The treasury stock method also assumes that we use the proceeds from the hypothetical exercise of the stock compensation awards to repurchase common stock at the average market price during the period. 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. See Note L, “Earnings Per Share,” to the Consolidated Financial Statements for additional information. 19) Recent Accounting Pronouncements New Pronouncements The Company has not adopted any Accounting Standard Updates ("ASU") during fiscal 2023 that have a material impact on our Consolidated Financial Statements. Additionally, there are no current ASU's issued, but not adopted, that are expected to have a material impact on the Company. 20) Subsequent Event Effective June 1, 2023, we realigned certain international businesses and management structure, that previously operated under our CPG segment, with our PCG segment. This realignment did not change our reportable segments at May 31, 2023. Rather, our periodic filings, beginning with our first quarter ending August 31, 2023, will include historical segment results recast to reflect the impact of this realignment. |
Restructuring
Restructuring | 12 Months Ended |
May 31, 2023 | |
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 associates, infrastructure charges to vacate facilities and consolidate operations, contract cancellation costs and other costs. We record the short-term portion of our restructuring liability in other accrued liabilities and the long-term portion, if any, in other long-term liabilities in our Consolidated Balance Sheets. MAP to Growth During 2018, we approved and implemented the initial phases of a multi-year restructuring plan, which is referred to as MAP to Growth. On May 31, 2021, we formally concluded MAP to Growth. However, certain projects identified prior to that date were completed during fiscal 2023. For MAP to Growth, we incurred $ 3.8 million, $ 6.3 million and $ 18.1 million of restructuring costs for the years ended May 31, 2023, 2022 and 2021, respectively. We have incurred $ 121.1 million of costs associated with this plan to date and we do not expect any future costs associated with this plan. MAP 2025 In August 2022, we approved and announced MAP 2025, which is a multi-year restructuring plan to build on the achievements of MAP to Growth and designed to improve margins by streamlining business processes, reducing working capital, implementing commercial initiatives to drive improved mix and sales force effectiveness and improving operating efficiency. Initial phases of the plan have focused on commercial initiatives, operational efficiencies, and procurement. Most activities under MAP 2025 are anticipated to be completed by the end of fiscal year 2025. The current total expected costs associated with this plan are outlined below. Throughout our MAP 2025 initiative, we will continue to assess and find areas of improvement and cost savings. As such, the final implementation of the aforementioned phases and total expected costs are subject to change. Following is a summary of the charges recorded in connection with MAP 2025 by reportable segment as well as the total expected costs related to projects identified to date: Year Ended Cumulative Total (In thousands) May 31, 2023 to Date Costs CPG Segment: Severance and benefit costs $ 6,092 $ 6,092 $ 8,494 Facility closure and other related costs - - 321 Total Charges $ 6,092 $ 6,092 $ 8,815 PCG Segment: Severance and benefit costs $ 1,148 $ 1,148 $ 3,155 Facility closure and other related costs - - 1,000 Other asset write-offs (1) 2,537 2,537 2,537 Total Charges $ 3,685 $ 3,685 $ 6,692 Consumer Segment: Severance and benefit costs $ 507 $ 507 $ 507 Facility closure and other related costs 621 621 621 Total Charges $ 1,128 $ 1,128 $ 1,128 SPG Segment: Severance and benefit costs $ 805 $ 805 $ 1,751 Facility closure and other related costs - - 4,359 Total Charges $ 805 $ 805 $ 6,110 Corporate/Other Segment: Severance and benefit (credits) $ ( 50 ) $ ( 50 ) $ ( 50 ) Total Charges $ ( 50 ) $ ( 50 ) $ ( 50 ) Consolidated: Severance and benefit costs $ 8,502 $ 8,502 $ 13,857 Facility closure and other related costs 621 621 6,301 Other asset write-offs 2,537 2,537 2,537 Total Charges $ 11,660 $ 11,660 $ 22,695 (1) Other restructuring costs are associated with the impairment of an indefinite-lived tradename as described below in Note C, "Goodwill and Other Intangible Assets," of the Consolidated Financial Statements . A summary of the activity in the restructuring reserves related to MAP 2025 is as follows: (In thousands) Severance and Facility Other Asset Total Balance at June 1, 2022 $ - $ - $ - $ - Additions charged to expense 8,502 621 2,537 11,660 Cash payments charged against reserve ( 5,486 ) ( 121 ) - ( 5,607 ) Non-cash charges and other adjustments ( 299 ) ( 500 ) ( 2,537 ) ( 3,336 ) Balance at May 31, 2023 $ 2,717 $ - $ - $ 2,717 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
May 31, 2023 | |
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, 2023 and 2022, are as follows: CPG PCG Consumer SPG (In thousands) Segment Segment Segment Segment Total Balance as of June 1, 2021 $ 443,515 $ 207,038 $ 525,230 $ 169,971 $ 1,345,754 Acquisitions 24,539 5,342 - 866 30,747 Translation adjustments & other ( 14,403 ) ( 10,565 ) ( 9,633 ) ( 4,032 ) ( 38,633 ) Balance as of May 31, 2022 453,651 201,815 515,597 166,805 1,337,868 Acquisitions 7,306 868 16,952 281 25,407 Divestitures - - - ( 15,723 ) ( 15,723 ) Impairments - ( 36,745 ) - - ( 36,745 ) Translation adjustments & other ( 10,402 ) ( 4,206 ) ( 1,322 ) ( 1,289 ) ( 17,219 ) Balance as of May 31, 2023 $ 450,555 $ 161,732 $ 531,227 $ 150,074 $ 1,293,588 Total accumulated goodwill impairment losses were $ 193.0 million at May 31, 2023. Of the accumulated balance, $ 141.4 million is included in our SPG segment, $ 14.9 million is included in our CPG segment, and $ 36.7 million is included in our PCG segment. There were no impairment losses recorded during fiscal 2022 or 2021. In August 2022, we announced our MAP 2025 operational improvement initiative. Initial phases of the plan focused on commercial initiatives, operational efficiencies, and procurement. However, as previously disclosed, due to the challenged macroeconomic environment, we evaluated certain business restructuring actions, specifically our go to market strategy for operating in Europe. During the third quarter of fiscal 2023, due to declining profitability and regulatory headwinds, management decided to restructure the USL reporting unit within our PCG segment and is correspondingly exploring strategic alternatives for our USL infrastructure services business within the U.K., which represents approximat ely 30 % o f annual revenues of the reporting unit. Due to this decision, we determined that an interim goodwill impairment assessment was required, as well as an impairment assessment for our other long-lived assets. Accordingly, we recorded an impairment loss totali ng $ 36.7 million for the im pairment of goodwill a nd $ 2.5 million f or the impairment of an indefinite-lived tradename in our USL reporting unit during the third quarter of fiscal 2023. We did no t record any impairments for our definite-lived long-lived assets as a result of this assessment. Our goodwill impairment assessment included estimating the fair value of our USL reporting unit and comparing it with its carrying amount at February 28, 2023. Since the carrying amount of the USL reporting unit exceeded its fair value, we recognized an impairment loss. We estimated the fair value of the USL reporting unit using both the income and the market approaches. For the income approach, we estimated the fair value of our USL reporting unit by applying a discounted future cash flow calculation to USL’s projected EBITDA. In applying this methodology, we relied on a number of factors, including actual and forecasted operating results, future operating margins, and market data. The discounted cash flow used in the goodwill impairment test for USL assumed discrete period revenue growth through fiscal 2027 for the ongoing USL businesses in the U.K. and North America as well as probability-weighted cash flows that were dependent on the methodology utilized in determining strategic alternatives for the U.K. infrastructure services business. In applying the market approach, we used market multiples derived from a set of companies similar to USL. After recording the goodwill imp airment charge of $ 36.7 million, $ 1.1 million of goodwill remains on the USL balance sheet as of May 31, 2023. Calculating the fair value of the USL’s indefinite-lived tradenames required the use of various estimates and assumptions. We estimated the fair value of USL’s indefinite-lived tradenames by applying a relief-from-royalty calculation, which included discounted future cash flows related to projected revenues for those USL tradenames impacted by this decision. In applying this methodology, we relied on a number of factors, including actual and forecasted revenues and market data. As the carrying amount of one of the tradenames exceeded its fair value, an impairment loss o f $ 2.5 million was recorded during fiscal 2023. This impairment loss was classified in restructuring expense within our PCG segment. The impairment assessment for our long-lived assets, such as property and equipment and purchased intangibles subject to amortization, involved estimating the fair value of USL’s long-lived assets and comparing it with its carrying amount. Measuring a potential impairment of long-lived assets requires the use of various estimates and assumptions, including the determination of which cash flows are directly related to the assets being evaluated, the respective useful lives over which those cash flows will occur and potential residual values, if any. The results of our testing indicated that the carrying values of these assets were recoverable, as such we did no t record an impairment of our long-lived assets during fiscal 2023. Any changes to underlying assumptions used in USL's goodwill impairment assessment, including if the financial performance of the reporting unit does not meet expectations in future years or changes in management's methodology utilized in determining strategic alternatives for the U.K. infrastructure services business, may cause a change to the results of the impairment assessment in future periods and, as such, could result in an impairment of goodwill or other long-lived assets. 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, 2023 Amortized intangible assets Formulae 9 to 33 $ 236,486 $ ( 190,981 ) $ 45,505 Customer-related intangibles 5 to 33 506,618 ( 275,369 ) 231,249 Trademarks/names 5 to 40 35,374 ( 23,792 ) 11,582 Other 3 to 30 32,583 ( 27,329 ) 5,254 Total Amortized Intangibles 811,061 ( 517,471 ) 293,590 Indefinite-lived intangible assets Trademarks/names 261,401 - 261,401 Total Other Intangible Assets $ 1,072,462 $ ( 517,471 ) $ 554,991 As of May 31, 2022 Amortized intangible assets Formulae 9 to 33 $ 234,366 $ ( 181,983 ) $ 52,383 Customer-related intangibles 5 to 33 508,143 ( 257,219 ) 250,924 Trademarks/names 5 to 40 35,957 ( 21,588 ) 14,369 Other 3 to 30 33,331 ( 26,831 ) 6,500 Total Amortized Intangibles 811,797 ( 487,621 ) 324,176 Indefinite-lived intangible assets Trademarks/names 268,085 - 268,085 Total Other Intangible Assets $ 1,079,882 $ ( 487,621 ) $ 592,261 The aggregate intangible asset amortization expense for the fiscal years ended May 31, 2023, 2022 and 2021 was $ 43.5 million, $ 45.7 million and $ 44.3 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: fiscal 2024 — $ 38.9 million, fiscal 2025 — $ 34.3 million, fiscal 2026 — $ 30.9 million, fiscal 2027 — $ 29.2 million and fiscal 2028 — $ 27.0 million. |
Marketable Securities
Marketable Securities | 12 Months Ended |
May 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | NOTE D — MARKETABLE SECURITIES The following tables summarize available-for-sale debt securities held at May 31, 2023 and 2022 by asset type: Available-For-Sale Debt Securities (In thousands) Amortized Gross Gross Fair Value May 31, 2023 Fixed maturity: U.S. treasury and other government $ 28,841 $ 23 $ ( 1,843 ) $ 27,021 Corporate bonds 147 6 ( 12 ) 141 Total available-for-sale debt securities $ 28,988 $ 29 $ ( 1,855 ) $ 27,162 Available-For-Sale Debt Securities (In thousands) Amortized Gross Gross Fair Value May 31, 2022 Fixed maturity: U.S. treasury and other government $ 26,522 $ 55 $ ( 1,338 ) $ 25,239 Corporate bonds 147 12 ( 4 ) 155 Total available-for-sale debt securities $ 26,669 $ 67 $ ( 1,342 ) $ 25,394 Marketable securities are composed of available-for-sale debt securities and marketable equity securities and all marketable securities 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. Available-for-sale debt securities are included in other current and long-term assets totaling $ 5.1 million and $ 22.1 million at May 31, 2023, respectively, and included in other current and long-term assets totaling $ 6.0 million and $ 19.4 million at May 31, 2022, respectively. Realized gains and losses on sales of available-for-sale debt securities are recognized in net income on the specific identification basis. Changes in the fair values of available-for-sale debt securities that are determined to be holding gains or losses are recorded through accumulated other comprehensive income (loss), net of applicable taxes, within stockholders' equity. In assessing whether a credit loss exists, we evaluate our ability to hold the investment, the strength of the underlying collateral and the extent to which the investment's amortized cost or cost, as appropriate, exceeds it related fair value. As of May 31, 2023 and 2022, we held approximately $ 121.2 million and $ 119.0 million in marketable equity securities, respectively. Realized and unrealized gains and losses on marketable equity securities are included in Investment (Income) Expense, Net in the Consolidated Statements of Income. Refer to Note A(15), “Summary of Significant Accounting Policies - Investment (Income) Expense, Net,” to the Consolidated Financial Statements for further details. Summarized below are the available-for-sale debt securities we held at May 31, 2023 and 2022 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, 2023 May 31, 2022 (In thousands) Fair Value Gross Fair Value Gross Total investments with unrealized losses $ 24,245 $ ( 1,855 ) $ 22,702 $ ( 1,342 ) Unrealized losses with a loss position for less than 12 months 6,285 ( 72 ) 16,273 ( 543 ) Unrealized losses with a loss position for more than 12 months 17,960 ( 1,783 ) 6,429 ( 799 ) 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. The decline in fair value is largely due to changes in interest rates and other market conditions. We have evaluated these securities and have determined no allowance for credit losses is necessary for these investments. The net carrying values of available-for-sale debt securities at May 31, 2023, 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 $ 5,308 $ 5,143 One year through five years 19,172 18,334 Six years through ten years 2,023 1,742 After ten years 2,485 1,943 $ 28,988 $ 27,162 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
May 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE E — FAIR VALUE MEASUREMENTS Financial instruments recorded in the Consolidated Balance Sheets include cash and cash equivalents, trade accounts receivable, marketable securities, notes and accounts payable, and debt. An allowance for credit losses is established for trade accounts receivable using assessments of current creditworthiness of customers, historical collection experience, the aging of receivables and other currently available evidence. Trade accounts receivable balances are written-off against the allowance if a final determination of uncollectibility is made. All provisions for allowance for doubtful collection of accounts are included in SG&A. All derivative instruments were recognized in our Consolidated Balance Sheets and measured at fair value. Changes in the fair values of derivative instruments that did not qualify as hedges and/or any ineffective portion of hedges were 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 were recognized in other comprehensive income (loss), along with the change in the value of the hedged item. We do not hold or issue derivative instruments for speculative purposes. The valuation techniques utilized for establishing the fair values of assets and liabilities are based on observable and unobservable inputs. Observable inputs reflect readily obtainable data from independent sources, while unobservable inputs reflect management’s market assumptions. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value, as follows: Level 1 Inputs — Quoted prices for identical instruments in active markets. Level 2 Inputs — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3 Inputs — Instruments with primarily unobservable value drivers. The following tables present our assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy. In addition, with respect to our derivative assets and liabilities measured at fair value, refer to Note F, "Derivatives and Hedging," to the Consolidated Financial Statements for discussion of their classification within the fair value hierarchy. (In thousands) Quoted Prices Significant Significant Fair Value at Available-for-sale debt securities: U.S. Treasury and other government $ - $ 27,021 $ - $ 27,021 Corporate bonds - 141 - 141 Total available-for-sale debt securities - 27,162 - 27,162 Marketable equity securities: Stocks-foreign 786 - - 786 Stocks-domestic 5,009 - - 5,009 Mutual funds - foreign - 40,074 - 40,074 Mutual funds - domestic - 75,284 - 75,284 Total marketable equity securities 5,795 115,358 - 121,153 Contingent consideration - - ( 2,686 ) ( 2,686 ) Total $ 5,795 $ 142,520 $ ( 2,686 ) $ 145,629 (In thousands) Quoted Prices Significant Significant Fair Value at Available-for-sale debt securities: U.S. Treasury and other government $ - $ 25,239 $ - $ 25,239 Corporate bonds - 155 - 155 Total available-for-sale debt securities - 25,394 - 25,394 Marketable equity securities: Stocks-foreign 598 - - 598 Stocks-domestic 5,085 - - 5,085 Mutual funds - foreign - 39,139 - 39,139 Mutual funds - domestic - 74,227 - 74,227 Total marketable equity securities 5,683 113,366 - 119,049 Contingent consideration - - ( 10,529 ) ( 10,529 ) Total $ 5,683 $ 138,760 $ ( 10,529 ) $ 133,914 Our investments in available-for-sale debt securities and marketable equity securities are valued using a market approach. The availability of inputs observable in the market varies from instrument to instrument and depends on a variety of factors, including the type of instrument, whether the instrument is actively traded and other characteristics particular to the transaction. For most of our financial instruments, pricing inputs are readily observable in the market, the valuation methodology used is widely accepted by market participants, and the valuation does not require significant management discretion. For other financial instruments, pricing inputs are less observable in the market and may require management judgment. The contingent consideration represents the estimated fair value of the additional variable cash consideration payable in connection with recent acquisitions that is contingent upon the achievement of certain performance milestones. We estimated the fair value using expected future cash flows over the period in which the obligation is expected to be settled which is considered to be a Level 3 input. During fiscal 2023, we increased our accrual by $ 2.6 million related to a current year acquisition and paid approximately $ 10.4 million for settlements of contingent consideration obligations relating to certain performance milestones that were established in prior periods and achieved during the current year. During fiscal 2022, we increased our accrual by $ 3.3 million related to fair value adjustments and paid approximately $ 5.8 million for settlements of contingent consideration obligations relating to certain performance milestones that were established in prior periods and achieved during fiscal 2022. In the Consolidated Statements of Cash Flows, payments of acquisition-related contingent consideration for the amount recognized at fair value as of the acquisition date are reported in cash flows from financing activities, while payment of contingent consideration in excess of fair value as of the acquisition date, are reported in cash flows from operating activities within accrued liabilities. 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, 2023 and 2022, 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, 2023 and 2022 are as follows: At May 31, 2023 (In thousands) Carrying Value Fair Value Cash and cash equivalents $ 215,787 $ 215,787 Long-term debt, including current portion 2,683,809 2,490,863 At May 31, 2022 (In thousands) Carrying Value Fair Value Cash and cash equivalents $ 201,672 $ 201,672 Long-term debt, including current portion 2,686,609 2,618,978 |
Derivatives and Hedging
Derivatives and Hedging | 12 Months Ended |
May 31, 2023 | |
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. Derivatives Designated as Hedges In February 2020, as a means of mitigating the impact of currency fluctuations on our Euro investments in foreign entities, we executed a cash flow hedge and two cross currency swap agreements, in which we paid fixed rate interest in Euros and received variable rate interest in U.S. Dollars with a combined notional amount of approximately € 277.73 million ($ 300 million U.S. Dollar equivalent), and which had a maturity date of February 2023 . This effectively converted our U.S. Dollar denominated variable rate debt to Euro denominated fixed rate debt. The cash flow hedge was recognized at fair value in our Consolidated Balance Sheets, while changes in the fair value of the hedge were recognized in AOCI when the hedged items affected earnings. Amounts recognized in AOCI were recognized in earnings in interest expense when the hedged interest payment was accrued. We designated the swaps as net investment hedges of our net investment in our European operations under ASU 2017-12 and applied the spot method to these hedges. The changes in fair value of the derivative instruments that were designated and qualified as hedges of net investments in foreign operations were recognized in AOCI to offset the changes in the values of the net investments being hedged. In addition, in February 2020, as a means of mitigating the variability of the functional-currency-equivalent cash flows associated with the U.S. Dollar denominated term loan facility (referred to as Foreign Borrower’s Term Loan), we executed a cash flow hedge, in which we paid fixed rate interest in Euros and received variable rate interest in U.S. Dollars with a notional amount of approximately € 92.52 million ($ 100 million U.S. Dollar equivalent), and which had a maturity date of February 2023 . This effectively converted our U.S. Dollar denominated variable rate debt to Euro denominated fixed rate debt. The cash flow hedge was recognized at fair value in our Consolidated Balance Sheets, while changes in the fair value of the hedge were recognized in AOCI when the hedged items affected earnings. Amounts recorded in AOCI were recognized in earnings in interest expense when the hedged interest payment was accrued. In addition, since this currency swap was a hedge of variability of the functional-currency-equivalent cash flows of a recognized liability to be remeasured at spot exchange rates under ASC 830, "Foreign Currency Matters," an amount that offset the gain or loss arising from the remeasurement of the hedged liability was reclassified each period from AOCI to earnings as foreign exchange gain/(loss), which is a component of SG&A expenses. In May 2022, the cash flow hedges and cross-currency swaps were terminated, and we received cash in the amount of $ 11.6 million, representing the fair value of the swap and interest accrued through the date of termination. Accordingly, hedge accounting was discontinued. For the cash flow hedges, a hedge accounting reserve balance within AOCI of $ 1.9 million remained and was amortized to interest expense in the Consolidated Statements of Income through the original termination date of the underlying hedged debt in February 2023. Changes in the fair value of the cross-currency swaps were recorded as cumulative translation adjustment within AOCI and will remain in AOCI until either the sale or substantially complete liquidation of the hedged subsidiaries. As such, there were no assets or liabilities recognized in the Consolidated Balance Sheets as of May 31, 2023 and May 31, 2022 for derivatives designated as hedges. The following table summarizes the location and effects of our derivatives instruments on the Consolidated Statements of Comprehensive Income and Consolidated Statements of Income for gains or losses initially recognized in AOCI in the Consolidated Balance Sheets: Pretax gain/(loss) recognized Pretax gain/(loss) reclassified (In thousands) Year Ended May 31, Year Ended May 31, Derivatives in hedging 2023 2022 2021 Income Statement Location 2023 2022 2021 Interest Rate Swap $ - $ 4,508 $ ( 1,226 ) Interest (Expense) Income $ - $ ( 3,272 ) $ ( 3,380 ) Cross Currency Swap - 15,494 ( 9,207 ) Interest Income 1,766 611 638 Cross Currency Swap - - - Foreign Exchange (Loss) - 14,758 ( 9,874 ) Cross Currency Swap - 40,471 ( 31,380 ) Gain or (loss) on sale of subsidiary - - - Total $ - $ 60,473 $ ( 41,813 ) $ 1,766 $ 12,097 $ ( 12,616 ) Derivatives Not Designated as Hedges At May 31, 2023 and 2022, we held one foreign currency forward contract at each period end designed to reduce our exposure to changes in the cash flows of intercompany foreign-currency-denominated loans related to changes in foreign currency exchange rates by fixing the functional currency cash flows. These contracts have not been designated as hedges; therefore, the changes in fair value of the contracts are recognized in earnings as a component of SG&A expenses. Amounts recognized in earnings and in the Consolidated Balance Sheets did not have a material impact on our Consolidated Financial Statements for any period presented. As of May 31, 2023, and May 31, 2022, the notional amounts of the forward contract held to purchase foreign currencies was $ 43.6 million and $ 238.2 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. |
Borrowings
Borrowings | 12 Months Ended |
May 31, 2023 | |
Debt Disclosure [Abstract] | |
Borrowings | NOTE G — BORROWINGS A description of long-term debt follows: May 31, 2023 2022 (In thousands) Revolving credit facility with a syndicate of banks, through August 1, 2027 (1) $ 610,947 $ 442,249 Accounts receivable securitization program with two banks, through May 21, 2024 (2) 174,885 - Unsecured 3.45 % senior notes due November 15, 2022 (3) - 300,119 Unsecured term loan due August 1, 2025 (4) 249,772 299,798 Unsecured 3.75 % notes due March 15, 2027 (5) 398,292 397,842 Unsecured 4.55 % senior notes due March 1, 2029 (6) 347,686 347,295 Unsecured 2.95 % notes due January 15, 2032 (7) 296,815 296,455 Unsecured 5.25 % notes due June 1, 2045 (8) 298,913 298,836 Unsecured 4.25 % notes due January 15, 2048 (9) 296,962 296,836 Other obligations, including finance leases and unsecured notes payable at various rates 2028 9,537 7,179 2,683,809 2,686,609 Less: current portion 178,588 603,454 Total Long-Term Debt, Less Current Maturities $ 2,505,221 $ 2,083,155 (1) Interest as of May 31, 2023 was 6.2600 % for the USD denominated swingline account, which is tied to SOFR; 6.3600 % for the USD denominated revolver, which is tied to SOFR; 4.2926 % on EUR denominated debt which is tied to ESTR; 5.5607 % on GBP denominated debt, which is tied to the Sterling Overnight Index Average; and 4.9200 % on AUD denominated debt, which is tied to the Reserve Bank of Australia rate. The debt balances outstanding, excluding deferred financing fees, as of May 31, 2023 for the USD denominated swingline, USD denominated revolver, EUR denominated revolver, GBP denominated debt, and AUD denominated debt were as follows: $ 8.2 million, $ 30.0 million, $ 527.6 million, $ 46.7 million, and $ 1.2 million. Interest as of May 31, 2022 was tied to LIBOR and was 2.3699 % for the USD denominated swingline account, 2.3096 % for the USD denominated revolver and 1.25 % on EUR denominated debt. The debt balances outstanding excluding deferred financing fees as of May 31, 2022, for the USD denominated swingline, USD denominated revolver, and EUR denominated revolver were as follows: $ 37.7 million, $ 60.0 million, and $ 346.1 million. As of May 31, 2023 and 2022, the revolving credit facility is adjusted for debt issuance costs, net of amortization, for approximately $ 2.8 million and $ 1.5 million, respectively. (2) As of May 31, 2023, the accounts receivable securitization program is adjusted for debt issuance costs, net of amortization, of approximately $ 0.1 million. (3) On November 15, 2022, we repaid the $ 300.0 million aggregate principal amount outstanding on our 3.45 % Notes due 2022. (4) Interest as of May 31, 2023 was 6.2000 %, which is variable and tied to SOFR. As of May 31, 2023 and 2022, the term loan is adjusted for deferred financing fees, net of amortization, of approximately $ 0.2 million. (5) The $ 400.0 million face amount of the notes due 2027 is adjusted for the amortization of the original issue discount, which approximated $ 0.2 million and $ 0.3 million at May 31, 2023 and 2022, 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, 2023 and 2022, the notes are adjusted for debt issuance costs, net of amortization, for approximately $ 1.5 million and $ 1.9 million, respectively. (6) The $ 350.0 million aggregate principal amount of the notes due 2029 is adjusted for the amortization of the original issue discount, which approximated $ 0.3 million and $ 0.4 million at May 31, 2023 and 2022, 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, was 4.568 %. At May 31, 2023 and 2022, the notes are adjusted for debt issuance costs, net of amortization, for approximately $ 2.0 million and $ 2.3 million, respectively. (7) The $ 300.0 million face amount of the notes due 2032 is adjusted for the amortization of the original issue discount, which approximated $ 0.6 million at May 31, 2023 and 2022. 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 2.976 %. At May 31, 2023 and 2022, the notes are adjusted for debt issuance costs, net of amortization, for approximately $ 2.6 million and $ 2.9 million, respectively. (8) The $ 250.0 million face amount of the notes due 2045 is adjusted for the amortization of the original issue discount, which approximated $ 1.3 million at May 31, 2023 and 2022. 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 $ 2.7 million and $ 2.8 million at May 31, 2023 and 2022, respectively. 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, 2023 and 2022, the notes are adjusted for debt issuance costs, net of amortization, for approximately $ 2.5 million and $ 2.6 million, respectively. (9) The $ 300.0 million face amount of the notes due 2048 is adjusted for the debt issuance cost, net of amortization, which approximated $ 3.0 million and $ 3.2 million at May 31, 2023 and 2022, 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, 2023 are as follows: fiscal 2024 — $ 178.6 million; fiscal 2025 — $ 3.6 million; fiscal 2026 — $ 251.9 million; fiscal 2027 — $ 400.6 million; fiscal 2028 — $ 613.9 million and thereafter $ 1,250.0 million. Additionally, at May 31, 2023, we had unused lines of credit totaling $ 811.3 million. Our available liquidity, including our cash and cash equivalents and amounts available under our committed credit facilities, stood at $ 1,027.1 million at May 31, 2023. Our debt-to-capital ratio was 55.5 % at May 31, 2023, compared with 57.5 % at May 31, 2022. Revolving Credit Agreement During the quarter ended August 31, 2022, we amended our $ 1.3 billion unsecured syndicated revolving credit facility (the "Revolving Credit Facility"), which was set to expire on October 31, 2023 . The amendment extended the expiration date to August 1, 2027 and increased the borrowing capacity to $ 1.35 billion. The Revolving Credit Facility bears interest at either the base rate or the adjusted SOFR, as defined, at our option, plus a spread determined by our debt rating. 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 Revolving Credit Facility is available to refinance existing indebtedness, to finance working capital and capital expenditures, and for general corporate purposes. The Revolving Credit Facility requires us to comply with various customary affirmative and negative covenants, including a leverage covenant (i.e. Net Leverage Ratio) and interest coverage ratio, which are calculated in accordance with the terms as defined by the Revolving Credit Facility. 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 1.00. During certain periods and per the terms of the Revolving Credit Facility, this ratio may be increased to 4.25 to 1.00 upon delivery of a notice to our lender requesting an increase to our maximum leverage or in connection with certain “material acquisitions.” The minimum required consolidated interest coverage ratio for EBITDA to interest expense is 3.50 to 1.00. The interest coverage ratio is calculated at the end of each fiscal quarter for the four fiscal quarters then ended using EBITDA as defined in the Revolving Credit Facility. As of May 31, 2023, 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 2.36 to 1, while our interest coverage ratio was 9.02 to 1. Our available liquidity under our Revolving Credit Facility stood at $ 736.3 million at May 31, 2023. 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”) which was subsequently amended on May 22, 2020 to a maximum availability of $ 250.0 million and an extended facility termination date of May 21, 2021 . On March 18, 2021, we amended the AR Program to a maximum availability of $ 250 million during all borrowing periods and an extended facility termination date of May 21, 2024 . The AR Program 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; March 31, 2017; and June 5, 2020 (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, May 22, 2020, March 18, 2021, and March 23, 2023 (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 $ 250.0 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 $ 250.0 million of funding available under the AR Program. As of May 31, 2023, there was $ 175.0 million outstanding under the AR Program, which compares with the maximum availability on that date of $ 250.0 million. The interest rate under the Purchase Agreement through May 31, 2023 was 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 0.85 %. Effective June 1, 2023, as set forth in Amendment No. 8 to the Purchase Agreement dated March 23, 2023, the interest rate was amended from LIBOR to be based on the SOFR. In addition, as set forth in an Amended and Restated Fee Letter, dated March 18, 2021 (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 in the Revolving Credit Facility section above 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. Term Loan Facility Credit Agreement On February 21, 2020, we and our subsidiary, RPM Europe Holdco B.V. (formerly “RPM New Horizons Netherlands, B.V”) (the “Foreign Borrower”), entered into an unsecured syndicated term loan facility credit agreement (the “New Credit Facility”) with the lenders party thereto and PNC Bank, National Association, as administrative agent for the lenders. The New Credit Facility provided for a $ 300 million term loan to us and a $ 100 million term loan to the Foreign Borrower (together, the “Term Loans”), each of which was fully advanced on the closing date. In May of 2022, we paid down the $ 100 million term loan to the Foreign Borrower. On August 1, 2022, we amended the New Credit Facility, which was set to expire on February 21, 2023 , to extend the maturity date to August 1, 2025 , and paid down the borrowings outstanding on the term loan to $ 250 million. The term loan bears interest at either the base rate or the adjusted SOFR, as defined, at our option, plus a spread determined by our debt rating. The New Credit Facility contains customary covenants, including but not limited to, limitations on our ability, and in certain instances, our subsidiaries’ ability, to incur liens, make certain investments, or sell or transfer assets. Additionally, we may not permit (i) our consolidated interest coverage ratio to be less than 3.50 to 1.00, or (ii) our leverage ratio (defined as the ratio of total indebtedness to consolidated EBITDA for the four most recent fiscal quarters) to exceed 3.75 to 1.00. During certain periods this ratio may be increased to 4.25 to 1.0 upon delivery of a notice to our lender requesting an increase to our maximum leverage or in connection with certain “material acquisitions.” See “Revolving Credit Agreement” above for details on our compliance with all significant financial covenants at May 31, 2023. 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 . The indenture governing this indebtedness includes cross-acceleration provisions. Under certain circumstances, where an event of default under our other instruments results in acceleration of the indebtedness under such instruments, holders of the indebtedness under the indenture are entitled to declare amounts outstanding immediately due and payable. 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 and September 1 st of each year, beginning September 1, 2019, at a rate of 4.550% per year. The 2029 Notes mature on March 1, 2029 . The indenture governing this indebtedness includes cross-acceleration provisions. Under certain circumstances, where an event of default under our other instruments results in acceleration of the indebtedness under such instruments, holders of the indebtedness under the indenture are entitled to declare amounts outstanding immediately due and payable. 2.950% Notes due 2032 On January 25, 2022, we closed an offering for $ 300 million aggregate principal amount of 2.950 % Notes due 2032. The proceeds from the 2032 notes were used to repay a portion of the outstanding borrowings under our revolving credit facility and for general corporate purposes. Interest on the Notes accrues from January 25, 2022 and will be payable semiannually in arrears on January 15 and July 15 of each year, beginning July 15, 2022, at a rate of 2.950% per year. The notes mature on January 15, 2032 . The indenture governing this indebtedness includes cross-acceleration provisions. Under certain circumstances, where an event of default under our other instruments results in acceleration of the indebtedness under such instruments, holders of the indebtedness under the indenture are entitled to declare amounts outstanding immediately due and payable. 4.250% Notes due 2048 On December 20, 2017, we closed an offering for $ 300.0 million aggregate principal amount of 4.250 % Notes due 2048 (the “2048 Notes”). The proceeds from the 2048 Notes were used to repay $ 250.0 million in principal amount of unsecured 6.50 % senior notes due February 15, 2018 , and for general corporate purposes. Interest on the 2048 Notes accrues from December 20, 2017 and is payable semiannually in arrears on January 15 th and July 15 th of each year, beginning July 15, 2018, at a rate of 4.250% per year. The 2048 Notes mature on January 15, 2048 . The indenture governing this indebtedness includes cross-acceleration provisions. Under certain circumstances, where an event of default under our other instruments results in acceleration of the indebtedness under such instruments, holders of the indebtedness under the indenture are entitled to declare amounts outstanding immediately due and payable. |
Income Taxes
Income Taxes | 12 Months Ended |
May 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE H — INCOME TAXES The provision for income taxes is calculated in accordance with ASC 740, "Income Taxes," 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, 2023 2022 2021 (In thousands) United States $ 557,401 $ 342,834 $ 462,468 Foreign 91,981 263,965 205,970 Income Before Income Taxes $ 649,382 $ 606,799 $ 668,438 Provision (benefit) for income taxes consists of the following for the periods indicated: Year Ended May 31, 2023 2022 2021 (In thousands) Current: U.S. federal $ 91,749 $ 60,818 $ 60,666 State and local 25,972 19,495 18,959 Foreign 45,694 59,087 65,125 Total Current 163,415 139,400 144,750 Deferred: U.S. federal 16,969 ( 24,025 ) 20,027 State and local 4,359 2,489 3,878 Foreign ( 15,092 ) ( 3,531 ) ( 3,717 ) Total Deferred 6,236 ( 25,067 ) 20,188 Provision for Income Taxes $ 169,651 $ 114,333 $ 164,938 The significant components of deferred income tax assets and liabilities as of May 31, 2023 and 2022 were as follows: 2023 2022 (In thousands) Deferred income tax assets related to: Inventories $ 18,811 $ 15,967 Accrued compensation and benefits 18,331 22,224 Accrued other expenses 21,037 21,782 Deferred income and other long-term liabilities 30,239 25,389 Credit and net operating and capital loss carryforwards 75,366 63,368 Net unrealized loss on securities 3,373 9,386 Research and development 17,360 - Pension and other postretirement benefits 11,813 15,699 Total Deferred Income Tax Assets 196,330 173,815 Less: valuation allowances ( 30,033 ) ( 30,509 ) Net Deferred Income Tax Assets 166,297 143,306 Deferred income tax (liabilities) related to: Depreciation ( 123,421 ) ( 91,227 ) Amortization of intangibles ( 116,763 ) ( 112,349 ) Unremitted foreign earnings ( 990 ) ( 3,002 ) Total Deferred Income Tax (Liabilities) ( 241,174 ) ( 206,578 ) Deferred Income Tax Assets (Liabilities), Net $ ( 74,877 ) $ ( 63,272 ) A s of May 31, 2023, we had foreign tax credit carryforwards of $ 31.8 million, which expire at various dates through fiscal 2032 . Additionally, as of May 31, 2023, we had approximately $ 3.2 million of net tax benefits associated with state net operating loss carryforwards and state tax credit carryforwards, some of which expire at various dates beginning in fiscal 2024 . As of May 31, 2023, we had foreign net operating loss carryforwards of approximately $ 148.2 million, of which approximately $ 37.5 million will expire at various dates beginning in fiscal 2024 and approximately $ 110.7 million that have an indefinite carryforward period. Additionally, as of May 31, 2023, we had foreign capital loss carryforwards of approximately $ 23.5 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 $ 30.0 million and $ 30.5 million have b een recorded as of May 31, 2023 and 2022, respectively. These recorded valuation allowances relate primarily to U.S. capital losses, certain foreign net operating losses, certain state net operating losses, and net foreign deferred tax assets. 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, 2023 2022 2021 (In thousands, except percentages) Income tax expense at the U.S. statutory federal income tax rate $ 136,370 $ 127,428 $ 140,372 Foreign rate differential and other foreign tax adjustments 1,535 6,278 11,942 State and local income taxes, net 22,017 20,393 18,625 Impact of GILTI provisions 4,217 1,709 1,598 Nondeductible business expense 1,257 532 616 Valuation allowance 1,199 ( 32,720 ) ( 4,389 ) Deferred tax liability for unremitted foreign earnings - ( 10,686 ) 5,348 Changes in unrecognized tax benefits ( 3,334 ) ( 1,682 ) ( 1,847 ) Equity-based compensation ( 3,482 ) ( 1,776 ) ( 8,651 ) Nondeductible goodwill impairment 7,264 - - Other 2,608 4,857 1,324 Provision for Income Tax Expense $ 169,651 $ 114,333 $ 164,938 Effective Income Tax Rate 26.1 % 18.8 % 24.7 % 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) 2023 2022 2021 Balance at June 1 $ 5.7 $ 7.5 $ 9.0 Additions for tax positions of prior years 0.1 - - Reductions for tax positions of prior years ( 2.8 ) ( 1.7 ) ( 1.8 ) Foreign currency translation ( 0.1 ) ( 0.1 ) 0.3 Balance at May 31 $ 2.9 $ 5.7 $ 7.5 The total amount of unrecognized tax benefits that would impact the effective tax rate, if recognized, at May 31, 2023, 2022 and 2021 was $ 2.9 million, $ 5.6 million and $ 7.0 million, respectively. We recognize interest and penalties related to unrecognized tax benefits in income tax expense. At May 31, 2023, 2022 and 2021, the accrual for interest and penalties was $ 2.2 million, $ 3.2 million and $ 2.9 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 United States and in various state, local and foreign jurisdictions. With limited exceptions, we are subject to federal, state and local, or non-U.S. income tax examinations by tax authorities for fiscal 2017 through 2023. 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 $ 1.0 million as of May 31, 2023, which represents our estimate of the net tax cost associated with the deemed remittance of $ 204.6 million of foreign earnings that are not considered to be permanently reinvested. We have not provided for U.S. income taxes or foreign withholding taxes on the remaining $ 1.2 billion of foreign unremitted earnings because such earnings have been retained and reinvested by the foreign subsidiaries as of May 31, 2023. 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 United States. 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. |
Stock Repurchase Program
Stock Repurchase Program | 12 Months Ended |
May 31, 2023 | |
Equity [Abstract] | |
Stock Repurchase Program | NOTE I — STOCK REPURCHASE PROGRAM On January 8, 2008 , we announced our authorization of a stock repurchase program under which we may repurchase shares of RPM International Inc. common stock at management’s discretion. As announced on November 28, 2018, our goal was to return $ 1.0 billion in capital to stockholders by May 31, 2021 through share repurchases and the retirement of our convertible note during fiscal 2019. On April 16, 2019, after taking into account share repurchases under our existing stock repurchase program to date, our Board of Directors authorized the repurchase of the remaining $ 600.0 million in value of RPM International Inc. common stock by May 31, 2021. As previously announced, given macroeconomic uncertainty resulting from the Covid pandemic, we had suspended stock repurchases under the program, but in January 2021, our Board of Directors authorized the resumption of the stock repurchases. At the time of resuming the program, $ 469.7 million of shares of common stock remained available for repurchase. The Board of Directors also extended the stock repurchase program beyond its original May 31, 2021 expiration date until such time that the remaining $ 469.7 million of capital has been returned to our stockholders. As a result, we may repurchase shares from time to time in the open market or in private transactions at various times and in amounts and for prices that our management deems appropriate, subject to insider trading rules and other securities law restrictions. The timing of our purchases will depend upon prevailing market conditions, alternative uses of capital and other factors. We may limit or terminate the repurchase program at any time. During the fiscal year ended May 31, 2023, we repurchased 598,653 shares of our common stock at a cost of approximately $ 50.0 million, or an average cost of $ 83.52 per share, under this program. During the fiscal year ended May 31, 2022, we repurchased 601,155 shares of our common stock at a cost of approximately $ 52.5 million, or an average cost of $ 87.33 per share, under this program. During the fiscal year ended May 31, 2021, we repurchased 594,061 shares of our common stock at a cost of approximately $ 50.0 million, or an average cost of $ 84.09 per share, under this program. The maximum dollar amount that may yet be repurchased under our stock repurchase program was approximately $ 317.3 million at May 31, 2023. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
May 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | NOTE J — STOCK-BASED COMPENSATION Stock-based compensation represents the cost related to stock-based awards granted to our associates 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 associates and our directors under various share-based compensation plans. The plan that is active or provides for stock option grants or share-based payment awards is the Amended and Restated 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”). The shares available for grant out of the 2003 Plan and the 2007 Plan have been exhausted, and all future grants will be issued from the 2014 Omnibus 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, 2023 2022 2021 (In thousands) Stock-based compensation expense, included in SG&A $ 28,723 $ 40,114 $ 40,926 Stock-based compensation expense, included in restructuring expense ( 50 ) 630 47 Total stock-based compensation cost 28,673 40,744 40,973 Income tax (benefit) ( 4,234 ) ( 5,621 ) ( 6,877 ) Total stock-based compensation cost, net of tax $ 24,439 $ 35,123 $ 34,096 SARs SARs are awards that allow our associates 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, 2023 2022 2021 Risk-free interest rate 3.0 % 0.9 % 0.4 % Expected life of option 6.0 yrs 6.0 yrs 6.5 yrs Expected dividend yield 2.0 % 1.8 % 1.8 % Expected volatility rate 23.6 % 24.1 % 24.0 % The 2014 Omnibus Plan was approved by our stockholders on October 9, 2014 , and amendments to the 2014 Omnibus Plan were subsequently approved by our stockholders in 2018 and 2019. 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 associates. 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, 2023, there were 2,287,500 SARs outstanding. The following tables summarize option and share-based payment activity (including SARs) under these plans during the fiscal year ended May 31, 2023: 2023 Share-Based Payments Weighted Number of (Shares in thousands) Balance at June 1, 2022 $ 63.16 2,300 Options granted 81.01 360 Options exercised 49.52 ( 372 ) Balance at May 31, 2023 68.19 2,288 Exercisable at May 31, 2023 $ 61.09 1,448 SARs 2023 2022 2021 (In thousands, except per share amounts) Weighted-average grant-date fair value per SAR $ 18.09 $ 16.72 $ 14.38 Fair value of SARS vested 14.19 13.49 12.59 Intrinsic value of options exercised 11.26 13.77 8.80 Tax benefit from options exercised $ 3,292 $ 88 $ 8,821 At May 31, 2023, the aggregate intrinsic value and weighted-average remaining contractual life of options outstanding was $ 29.4 million and 5.95 years, respectively, while the aggregate intrinsic value and weighted-average remaining contractual life of options exercisable was $ 27.8 million and 4.65 years, respectively. At May 31, 2023, the total unamortized stock-based compensation expense related to SARs that were previously granted was $ 9.3 million, which is expected to be recognized over 2.51 years. We anticipate that approximately 2.3 million shares at a weighted-average exercise price of $ 68.17 and a weighted-average remaining contractual term of 5.94 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 associates 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 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. In October 2019, shareholders approved an amendment to the 2014 Omnibus Plan making an additional 5,000,000 shares of common stock subject to awards. Of those additional issuable shares, 2,250,000 shares 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, 2023: Weighted-Average Grant-Date Fair Value 2023 (Shares in thousands) Balance at June 1, 2022 $ 77.71 1,110 Shares granted 81.03 223 Shares forfeited 75.03 ( 68 ) Shares vested 66.50 ( 359 ) Balance at May 31, 2023 $ 83.17 906 The weighted-average grant-date fair value was $ 81.03 , $ 86.88 and $ 80.67 for the fiscal years ended May 31, 2023, 2022 and 2021, respectively. The restricted stock and performance stock cliff vest after three years . Nonvested restricted shares of common stock under the 2014 Omnibus Plan are eligible for dividend payments, while performance stock units are not eligible for dividend payments. At May 31, 2023, remaining unamortized deferred compensation expense for performance-earned restricted stock totaled $ 11.5 million. The remaining amount is being amortized over the applicable vesting period for each participant. The Performance Stock Units (“PSU”) have been granted to certain executives and the awards are contingent upon the level of attainment of performance goals for the three-year performance period. Vesting of 50 % of the 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. The following table sets forth such awards for the year ended May 31, 2023: Performance Stock Units ("PSUs") Shares Granted Weighted-Average Grant Date Fair Value Shares Outstanding as of May 31, 2023 Unamortized Expense, as of May 31, 2023 (In thousands, except per share amounts) 2020 PSUs (1) 226 $ 78.49 181 $ — 2021 PSU's (2) 158 86.93 137 4,188 2022 PSU's (3) 162 81.01 156 5,427 (1) The "2020 PSUs" were granted on July 22, 2020. The expense has been fully recognized, in line with the final results achieved for the three-year performance plan. (2) The "2021 PSUs were granted on July 21, 2021. The unamortized expense is expected to be recognized over a weighted average period of 1.0 years. (3) The "2022 PSUs were granted on July 18, 2022. The unamortized expense 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 associates 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 shares available for grant out of the 2003 Plan have been exhausted, and all future grants will be issued from the 2014 Omnibus Plan. The following table summarizes the share-based activity under the 2003 Plan and 2014 Omnibus Plan related to directors during fiscal 2023: Weighted-Average Grant-Date Fair Value 2023 (Shares in thousands) Balance at June 1, 2022 $ 77.95 56 Shares granted to directors 92.87 21 Shares vested 69.70 ( 25 ) Balance at May 31, 2023 $ 87.75 52 The weighted-average grant-date fair value was $ 92.87 , $ 81.53 and $ 87.35 for the fiscal years ended May 31, 2023, 2022 and 2021, respectively. Unamortized deferred compensation expense relating to restricted stock grants for directors of $ 2.3 million at May 31, 2023, 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. The shares available for grant out of the 2003 Plan have been exhausted, and all future grants will be issued from the 2014 Omnibus Plan. During fiscal 2023, a total of 23,705 shares were awarded under the 2014 Omnibus Plan to certain associates 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 immediately preceding the date of the grant. The following table sets forth such awards for the year ended May 31, 2023: Weighted-Average Grant-Date Fair Value 2023 (Shares in thousands) Balance at June 1, 2022 $ 40.08 386 Shares granted 81.01 24 Shares forfeited 72.12 ( 7 ) Shares exercised 64.03 ( 13 ) Balance at May 31, 2023 $ 41.37 390 The weighted-average grant-date fair value was $ 81.01 , $ 86.93 and $ 78.49 for the fiscal years ended May 31, 2023, 2022 and 2021, respectively. As noted above, no shares remain avai lable 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, 2023, unamortized stock-based compensation expense of $ 4.1 million relating to the 2014 Omnibus Plan is 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, 2023: Weighted-Average Grant-Date Fair Number of Value Shares (Shares in thousands) Balance at June 1, 2022 $ 76.38 1,296 Granted 81.95 268 Vested 66.19 ( 432 ) Forfeited 79.90 ( 54 ) Balance at May 31, 2023 $ 81.66 1,078 The fair value of the nonvested restricted share awards have been calculated using the market value of the shares on the date of issuance. Total unrecognized compensation cost related to all nonvested awards of restricted shares of common stock was $ 27.5 million as of May 31, 2023. The remaining weighted-average contractual term of nonvested restricted shares at May 31, 2023 is the same as the period over which the remaining cost of the awards will be recognized, which is approximately 2.13 years. We anticipate that approximately 1.08 million shares will ultimately vest, based upon the unique terms and participants of each plan. We did not receive any cash from associates as a result of associate vesting and release of restricted shares for the year ended May 31, 2023. The following table summarizes the grant date and vested values of restricted shares during the last three fiscal years: Year Ended May 31, Weighted-Average Grant Date Fair Value Fair Value of Restricted Shares Vested Shares of Restricted Stock Vested Intrinsic Value of Restricted Shares Vested (In thousands, except per share amounts) 2021 $ 80.77 $ 12,505 250 $ 20,670 2022 86.68 27,163 441 33,032 2023 81.95 28,553 432 33,186 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
May 31, 2023 | |
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 Foreign Postretirement Unrealized Unrealized Currency Benefit Gain Gain (Loss) Translation Liability (Loss) On On (In thousands) Adjustments Adjustments (1) Derivatives (2) Securities Total Balance at May 31, 2020 $ ( 440,732 ) $ ( 277,717 ) $ ( 71 ) $ 1,023 $ ( 717,497 ) Current period comprehensive income (loss) 148,360 80,949 ( 43,703 ) ( 1,052 ) 184,554 Income taxes associated with current period comprehensive (loss) income ( 7,993 ) ( 19,395 ) 10,281 ( 89 ) ( 17,196 ) Amounts reclassified from accumulated other comprehensive income (loss) - 33,035 12,616 268 45,919 Income taxes reclassified into earnings - ( 7,482 ) ( 3,105 ) ( 77 ) ( 10,664 ) Balance at May 31, 2021 ( 300,365 ) ( 190,610 ) ( 23,982 ) 73 ( 514,884 ) Current period comprehensive (loss) income ( 98,834 ) 31,802 60,669 ( 1,785 ) ( 8,148 ) Income taxes associated with current period comprehensive income (loss) 3,726 ( 7,763 ) ( 14,491 ) 3 ( 18,525 ) Amounts reclassified from accumulated other comprehensive income (loss) - 17,276 ( 12,097 ) 59 5,238 Income taxes reclassified into earnings - ( 4,088 ) 3,072 ( 2 ) ( 1,018 ) Balance at May 31, 2022 ( 395,473 ) ( 153,383 ) 13,171 ( 1,652 ) ( 537,337 ) Current period comprehensive (loss) income ( 71,772 ) ( 12,242 ) - ( 482 ) ( 84,496 ) Income taxes associated with current period comprehensive income (loss) 1,870 2,785 - 4 4,659 Amounts reclassified from accumulated other comprehensive income (loss) - 18,363 ( 1,766 ) ( 67 ) 16,530 Income taxes reclassified into earnings - ( 4,287 ) - ( 4 ) ( 4,291 ) Balance at May 31, 2023 $ ( 465,375 ) $ ( 148,764 ) $ 11,405 $ ( 2,201 ) $ ( 604,935 ) (1) For additional information, see Note N, "Pension Plans," and Note O, "Postretirement Benefits," to the Consolidated Financial Statements for details. Amounts reclassified from accumulated other comprehensive income (loss) are included in pension non-service costs (credits) as a component of "Other Expense (Income), Net" on the Consolidated Statements of Income. (2) For additional information, see Note F, "Derivatives and Hedging," to the Consolidated Financial Statements for details. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
May 31, 2023 | |
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, 2023, 2022 and 2021: Year Ended May 31, 2023 2022 2021 (In thousands, except per share amounts) Numerator for earnings per share: Net income attributable to RPM International Inc. stockholders $ 478,691 $ 491,481 $ 502,643 Less: Allocation of earnings and dividends to participating securities ( 2,156 ) ( 3,924 ) ( 4,018 ) Net income available to common shareholders - basic 476,535 487,557 498,625 Reverse: Allocation of earnings and dividends to participating securities 2,156 3,924 - Add: Undistributed earnings reallocated to unvested shareholders - - 13 Net income available to common shareholders - diluted $ 478,691 $ 491,481 $ 498,638 Denominator for basic and diluted earnings per share: Basic weighted average common shares 127,507 127,948 128,334 Average diluted options and awards 1,309 1,632 593 Total shares for diluted earnings per share (1) 128,816 129,580 128,927 Earnings Per Share of Common Stock Attributable to RPM International Inc. Stockholders: Basic Earnings Per Share of Common Stock $ 3.74 $ 3.81 $ 3.89 Method used to calculate basic earnings per share Two-Class Two-Class Two-Class Diluted Earnings Per Share of Common Stock $ 3.72 $ 3.79 $ 3.87 Method used to calculate diluted earnings per share Treasury Treasury Two-Class (1) For the years ended May 31, 2023, 2022 and 2021, approximately 750,000 , 655,000 and 362,016 shares of stock, respectively, granted under stock-based compensation plans were excluded from the calculation of d iluted EPS, as the effect would have been anti-dilutive. |
Leases
Leases | 12 Months Ended |
May 31, 2023 | |
Leases [Abstract] | |
Leases | NOTE M — LEASES We have leases for manufacturing facilities, warehouses, office facilities, equipment, and vehicles, which are primarily classified and accounted for as operating leases. Some leases include one or more options to renew, generally at our sole discretion, with renewal terms that can extend the lease term from one to five years or more. In addition, certain leases contain termination options, where the rights to terminate are held by either us, the lessor, or both parties. These options to extend or terminate a lease are included in the lease terms when it is reasonably certain that we will exercise that option. We have made an accounting policy election not to recognize ROU assets and lease liabilities for leases with a term of twelve months or less, with no renewal option that we are reasonably certain to exercise. ROU assets and lease liabilities are recognized based on the present value of the fixed and in-substance fixed lease payments over the lease term at the commencement date. The ROU assets also include any initial direct costs incurred and lease payments made at or before the commencement date and are reduced by lease incentives. We use our incremental borrowing rate as the discount rate to determine the present value of the lease payments for leases, as our leases do not have readily determinable implicit discount rates. Our incremental borrowing rate is the rate of interest that we would have to borrow on a collateralized basis over a similar term and amount in a similar economic environment. We determine the incremental borrowing rates for our leases by adjusting the local risk-free interest rate with a credit risk premium corresponding to our credit rating. Operating lease expense is recognized on a straight-line basis over the lease term. For a small portfolio of finance leases, lease expense is recognized as a combination of the amortization expense for the ROU assets and interest expense for the outstanding lease liabilities using the discount rate discussed above. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Our lease agreements do not contain any significant residual value guarantees or material restrictive covenants. Income from subleases was not significant for any period presented. The following represents our lease costs as of May 31, 2023 and 2022: May 31, 2023 2022 2021 (In thousands) Operating lease expense $ 78,783 $ 78,479 $ 76,581 Variable lease expense 13,550 10,795 9,292 Short-term lease expense 1,960 2,132 2,022 The following represents our supplemental cash flow, balance sheet, and other required disclosures as of May 31, 2023 and 2022: May 31, 2023 2022 (In thousands) Operating cash outflows from operating leases $ 74,251 $ 73,566 Leased assets obtained in exchange for operating lease obligations 90,399 79,150 Current portion of operating leases within other accrued liabilities $ 59,590 $ 58,292 Weighted average remaining lease term for operating leases (in years) 8.5 8.5 Weighted average discount rate for operating leases 3.9 % 3.3 % The following represents our future undiscounted cash flows for each of the next five years and thereafter and reconciliation to the lease liabilities, as of May 31, 2023: (In thousands) Year ending May 31, Operating Leases 2024 $ 71,801 2025 61,178 2026 51,608 2027 44,451 2028 36,540 Thereafter 148,773 Total lease payments $ 414,351 Less imputed interest 69,237 Total present value of lease liabilities $ 345,114 Sale Leaseback Agreement During the fiscal year ended May 31, 2022, we recognized net gains of $ 52.0 million on the sales of certain real property assets. Most significantly, certain real property assets for the Toronto, Ontario location, within our CPG segment, were sold on September 15, 2021 for $ 49.8 million. We received $ 48.0 million of net proceeds after adjustments and expenses and recognized a gain on sale of $ 41.9 million. The purpose of the transaction was to generate cash by monetizing a real estate market opportunity. In conjunction with the sale, we executed a leaseback agreement commencing September 15, 2021 and expiring on September 14, 2024 . During the second quarter of fiscal 2022, the lease was classified as an operating lease with total future minimum payments during the initial term of the lease of approximately $ 3.4 million. An incremental borrowing rate of 1.3 % was used to determine the ROU asset. We recorded a $ 3.7 million operating lease right-of-use asset and corresponding liabilities in our Consolidated Balance Sheets during the second quarter of fiscal 2022. |
Pension Plans
Pension Plans | 12 Months Ended |
May 31, 2023 | |
Retirement Benefits [Abstract] | |
Pension Plans | NOTE N — PENSION PLANS We sponsor several pension plans for our associates, including our principal plan (the “Retirement Plan”), which is a non-contributory defined benefit pension plan covering substantially all domestic non-union associates. Pension benefits are provided for certain domestic union associates through separate plans. Associates 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 associates 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, 2024, we are required to contribute approximately $ 0.7 million to the retirement plans in the United States and approximately $ 5.7 million to our foreign plans. During the year, we will evaluate whether to make additional contributions. During fiscal 2023, we contributed $ 63.6 million to the pension plans in the United States which was in excess of the required contribution of $ 1.3 million but serves to improve the funded status of the plans. Net periodic pension cost consisted of the following for the year ended May 31: U.S. Plans Non-U.S. Plans (In thousands) 2023 2022 2021 2023 2022 2021 Service cost $ 43,558 $ 47,655 $ 44,520 $ 3,633 $ 5,023 $ 6,355 Interest cost 28,692 15,366 15,223 6,619 4,948 5,308 Expected return on plan assets ( 38,144 ) ( 41,544 ) ( 33,115 ) ( 6,581 ) ( 7,691 ) ( 7,286 ) Amortization of: Prior service cost (credit) 1 5 8 ( 116 ) ( 139 ) ( 150 ) Net actuarial losses recognized 17,948 16,900 30,005 473 465 2,377 Curtailment/settlement (gains) losses ( 3 ) 16 - 188 7 356 Net Pension Cost $ 52,052 $ 38,398 $ 56,641 $ 4,216 $ 2,613 $ 6,960 The changes in benefit obligations and plan assets, as well as the funded status of our pension plans at May 31, 2023 and 2022, were as follows: U.S. Plans Non-U.S. Plans (In thousands) 2023 2022 2023 2022 Benefit obligation at beginning of year $ 703,735 $ 822,073 $ 182,534 $ 232,028 Service cost 43,558 47,655 3,633 5,023 Interest cost 28,692 15,366 6,619 4,948 Benefits paid ( 44,604 ) ( 59,795 ) ( 8,676 ) ( 7,657 ) Participant contributions - - 1,221 1,138 Plan amendments 4 - ( 97 ) 293 Plan settlements/curtailments ( 137 ) ( 190 ) ( 2,852 ) ( 1,330 ) Actuarial (gains) ( 34,075 ) ( 121,374 ) ( 16,004 ) ( 34,638 ) Premiums paid - - ( 108 ) ( 107 ) Currency exchange rate changes - - ( 7,458 ) ( 17,164 ) Benefit Obligation at End of Year $ 697,173 $ 703,735 $ 158,812 $ 182,534 Fair value of plan assets at beginning of year $ 616,960 $ 672,377 $ 193,375 $ 239,853 Actual (loss) on plan assets ( 4,294 ) ( 61,036 ) ( 15,239 ) ( 25,430 ) Employer contributions 63,561 65,604 6,647 4,626 Participant contributions - - 1,221 1,138 Benefits paid ( 44,604 ) ( 59,795 ) ( 8,676 ) ( 7,657 ) Premiums paid - - ( 108 ) ( 107 ) Plan settlements/curtailments ( 137 ) ( 190 ) ( 2,852 ) ( 1,330 ) Currency exchange rate changes - - ( 8,248 ) ( 17,718 ) Fair Value of Plan Assets at End of Year $ 631,486 $ 616,960 $ 166,120 $ 193,375 (Deficit)/Surplus of plan assets versus benefit obligations at end of year $ ( 65,687 ) $ ( 86,775 ) $ 7,308 $ 10,841 Net Amount Recognized $ ( 65,687 ) $ ( 86,775 ) $ 7,308 $ 10,841 Accumulated Benefit Obligation $ 598,094 $ 610,433 $ 148,635 $ 172,141 The fair value of the assets held by our pension plans has decreased at May 31, 2023 since our previous measurement date at May 31, 2022, due to benefit payments and market losses. Total plan liabilities have decreased due to an increase in the discount rate used to value the liability. We have decreased our recorded liability for the net underfunded status of our pension plans. We expect pension expense in fiscal 2024 to be similar to our fiscal 2023 expense level due to higher interest costs, which will be partially offset by an increase in expected return on plan assets and a reduction in service cost due to higher discount rates. 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, 2023 and 2022 are as follows: U.S. Plans Non-U.S. Plans (In thousands) 2023 2022 2023 2022 Noncurrent assets $ 279 $ 77 $ 15,641 $ 22,399 Current liabilities ( 8 ) ( 8 ) ( 659 ) ( 443 ) Noncurrent liabilities ( 65,958 ) ( 86,844 ) ( 7,674 ) ( 11,115 ) Net Amount Recognized $ ( 65,687 ) $ ( 86,775 ) $ 7,308 $ 10,841 The following table summarizes the relationship between our plans' benefit obligations and assets: U.S. Plans 2023 2022 (In thousands) Benefit Plan Assets Benefit Plan Assets Plans with projected benefit obligations in excess of plan assets $ 696,280 $ 630,315 $ 702,511 $ 615,659 Plans with accumulated benefit obligations in excess of plan assets 44 - 10,542 10,024 Plans with assets in excess of projected benefit obligations 893 1,171 1,224 1,301 Plans with assets in excess of accumulated benefit obligations 598,050 631,486 599,891 606,936 Non-U.S. Plans 2023 2022 (In thousands) Benefit Plan Assets Benefit Plan Assets Plans with projected benefit obligations in excess of plan assets $ 26,918 $ 18,585 $ 36,607 $ 25,049 Plans with accumulated benefit obligations in excess of plan assets 24,837 17,839 32,808 22,844 Plans with assets in excess of projected benefit obligations 131,894 147,535 145,927 168,326 Plans with assets in excess of accumulated benefit obligations 123,798 148,281 139,333 170,531 The following table presents the pretax net actuarial loss and prior service (cost) credits recognized in accumulated other comprehensive income (loss) not affecting retained earnings: U.S. Plans Non-U.S. Plans (In thousands) 2023 2022 2023 2022 Net actuarial loss $ ( 205,025 ) $ ( 214,607 ) $ ( 29,764 ) $ ( 25,984 ) Prior service (costs) credits ( 10 ) ( 7 ) 530 518 Total recognized in accumulated other comprehensive $ ( 205,035 ) $ ( 214,614 ) $ ( 29,234 ) $ ( 25,466 ) The following table includes the changes recognized in other comprehensive income: U.S. Plans Non-U.S. Plans (In thousands) 2023 2022 2023 2022 Changes in plan assets and benefit obligations recognized in other Prior service cost (credit) $ 4 $ - $ ( 98 ) $ 294 Net loss (gain) arising during the year 8,363 ( 18,794 ) 5,816 ( 1,517 ) Effect of exchange rates on amounts included in AOCI - - ( 1,405 ) ( 1,999 ) Amounts recognized as a component of net periodic benefit cost: Amortization or curtailment recognition of prior service (cost) benefit ( 1 ) ( 5 ) 115 139 Amortization or settlement recognition of net (loss) ( 17,945 ) ( 16,916 ) ( 660 ) ( 473 ) Total recognized in other comprehensive (income) loss $ ( 9,579 ) $ ( 35,715 ) $ 3,768 $ ( 3,556 ) 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 2023 2022 2023 2022 Discount rate 5.26 % 4.43 % 4.88 % 4.02 % Rate of compensation increase 3.39 % 3.21 % 2.97 % 2.94 % U.S. Plans Non-U.S. Plans Net Periodic Pension Cost 2023 2022 2021 2023 2022 2021 Discount rate 4.43 % 2.76 % 2.78 % 4.02 % 2.72 % 2.49 % Expected return on plan assets 6.50 % 6.50 % 7.00 % 3.58 % 3.46 % 3.30 % Rate of compensation increase 3.21 % 3.19 % 3.19 % 2.94 % 2.91 % 2.86 % 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, 2023 2023 2022 Equity securities 55 % $ 340.1 $ 326.2 Fixed income securities 20 % 129.2 117.0 Multi-class 20 % 125.3 136.6 Cash 5 % 36.6 37.0 Other 0.3 0.2 Total assets 100 % $ 631.5 $ 617.0 Non-U.S. Plans Target Allocation Actual Asset Allocation (Dollars in millions) as of May 31, 2023 2023 2022 Equity securities 40 % $ 61.8 $ 69.2 Fixed income securities 48 % 81.5 101.1 Cash 0.1 0.1 Property and other 12 % 22.7 23.0 Total assets 100 % $ 166.1 $ 193.4 The following tables present our pension plan assets as categorized using the fair value hierarchy at May 31, 2023 and 2022: U.S. Plans (In thousands) Quoted Prices Significant Significant Fair Value at U.S. Treasury and other government $ - $ 49,297 $ - $ 49,297 State and municipal bonds - 450 - 450 Foreign bonds - 690 - 690 Mortgage-backed securities - 8,515 - 8,515 Corporate bonds - 17,376 - 17,376 Stocks - large cap 35,467 - - 35,467 Mutual funds - equity - 304,590 - 304,590 Mutual funds - multi-class - 125,345 - 125,345 Mutual funds - fixed - 2,553 - 2,553 Cash and cash equivalents 36,573 - - 36,573 Limited partnerships - - 170 170 Futures contracts - - 112 112 Investments measured at NAV (1) 50,348 Total $ 72,040 $ 508,816 $ 282 $ 631,486 (1) In accordance with Subtopic 820-10, Fair Value Measurements and Disclosures, certain investments that are measured at fair value using the net asset value ("NAV") per share practical expedient have not been classified in the fair value hierarchy. The investments that are measured at fair value using NAV per share included in the table above are intended to permit reconciliation of the fair value hierarchy to the fair value of the plan assets at the end of each period. Non-U.S. Plans (In thousands) Quoted Prices Significant Significant Fair Value at Pooled equities $ - $ 61,827 $ - $ 61,827 Pooled fixed income - 80,650 - 80,650 Foreign bonds - 774 - 774 Insurance contracts - - 19,136 19,136 Mutual funds - Real Estate - 3,587 - 3,587 Cash and cash equivalents 146 - - 146 Total $ 146 $ 146,838 $ 19,136 $ 166,120 U.S. Plans (In thousands) Quoted Prices Significant Significant Fair Value at U.S. Treasury and other government $ - $ 34,902 $ - $ 34,902 State and municipal bonds - 576 - 576 Foreign bonds - 1,150 - 1,150 Mortgage-backed securities - 10,254 - 10,254 Corporate bonds - 23,883 - 23,883 Stocks - large cap 30,295 - - 30,295 Mutual funds - equity - 295,905 - 295,905 Mutual funds - multi-class - 136,583 - 136,583 Mutual funds - fixed - 16,368 - 16,368 Cash and cash equivalents 37,004 - - 37,004 Limited partnerships - - 166 166 Investments measured at NAV (1) 29,874 Total $ 67,299 $ 519,621 $ 166 $ 616,960 Non-U.S. Plans (In thousands) Quoted Prices Significant Significant Fair Value at Pooled equities $ - $ 68,067 $ - $ 68,067 Pooled fixed income - 100,151 - 100,151 Foreign bonds - 920 - 920 Insurance contracts - - 23,013 23,013 Mutual funds - 1,115 - 1,115 Cash and cash equivalents 109 - - 109 Total $ 109 $ 170,253 $ 23,013 $ 193,375 The following table includes the activity that occurred during the years ended May 31, 2023 and 2022 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, 2023 $ 23,179 ( 2,399 ) - ( 1,362 ) $ 19,418 Year ended May 31, 2022 28,398 ( 1,009 ) - ( 4,210 ) 23,179 (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 diversified portfolio 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 United States, 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 Long-Term Government/Credit 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 Long-Term Government/Credit Index over a full market cycle. The purpose of the fixed-income fund is to reduce the overall volatility of the plan liabilities and provide a hedge against interest rate fluctuations. Therefore, the primary objective of the fixed-income portion is to match the Barclays Long-Term Government/Credit Index. We expect to pay the following estimated pension benefit payments in the next five years (in millions): $ 64.2 in 2024, $ 69.5 in 2025, $ 74.6 in 2026, $ 76.7 in 2027 and $ 81.8 in 2028. In the five years thereafter (2029-2033), we expect to pay $ 416.7 million. In addition to the defined benefit pension plans discussed above, we also sponsor associate savings plans under Section 401(k) of the Internal Revenue Code, which cover most of our associates in the United States. We record expense for defined contribution plans for any employer-matching contributions made in conjunction with services rendered by associates. The majority of our plans provide for matching contributions made in conjunction with services rendered by associates. Matching contributions are invested in the same manner that the participants invest their own contributions. Matching contributions charged to income wer e $ 27.6 million, $ 24.7 million and $ 21.7 million for the years ending May 31, 2023, 2022 and 2021, respectively. |
Postretirement Benefits
Postretirement Benefits | 12 Months Ended |
May 31, 2023 | |
Postemployment Benefits [Abstract] | |
Postretirement Benefits | NOTE O — POSTRETIREMENT BENEFITS We sponsor several unfunded-healthcare-benefit plans for certain of our retired associates, as well as postretirement life insurance for certain key former associates. 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, 2023: U.S. Plans Non-U.S. Plans (In thousands) 2023 2022 2021 2023 2022 2021 Service cost $ - $ - $ - $ 1,951 $ 1,623 $ 1,959 Interest cost 84 41 74 1,374 1,124 1,286 Amortization of: Prior service (credit) ( 121 ) ( 161 ) ( 167 ) - - - Net actuarial losses (gains) 43 61 42 ( 51 ) 121 590 Net Postretirement Benefit Cost (Income) $ 6 $ ( 59 ) $ ( 51 ) $ 3,274 $ 2,868 $ 3,835 The changes in benefit obligations of the plans at May 31, 2023 and 2022 were as follows: U.S. Plans Non-U.S. Plans (In thousands) 2023 2022 2023 2022 Accumulated postretirement benefit obligation at beginning of year $ 2,260 $ 2,506 $ 30,645 $ 39,974 Service cost - - 1,951 1,623 Interest cost 84 41 1,374 1,124 Benefit payments ( 207 ) ( 164 ) ( 557 ) ( 875 ) Actuarial (gains) ( 369 ) ( 123 ) ( 276 ) ( 9,240 ) Currency exchange rate changes - - ( 2,100 ) ( 1,961 ) Accumulated and accrued postretirement benefit obligation at end of year $ 1,768 $ 2,260 $ 31,037 $ 30,645 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, 2023 and 2022 are as follows: U.S. Plans Non-U.S. Plans (In thousands) 2023 2022 2023 2022 Current liabilities $ ( 207 ) $ ( 252 ) $ ( 989 ) $ ( 968 ) Noncurrent liabilities ( 1,561 ) ( 2,008 ) ( 30,048 ) ( 29,677 ) Net Amount Recognized $ ( 1,768 ) $ ( 2,260 ) $ ( 31,037 ) $ ( 30,645 ) The following table presents the pretax net actuarial (loss) gain and prior service credits recognized in accumulated other comprehensive income (loss) not affecting retained earnings: U.S. Plans Non-U.S. Plans (In thousands) 2023 2022 2023 2022 Net actuarial gain (loss) $ 99 $ ( 314 ) $ 3,838 $ 3,878 Prior service credit - 121 - - Total recognized in accumulated other comprehensive income not affecting retained $ 99 $ ( 193 ) $ 3,838 $ 3,878 The following table includes the changes recognized in other comprehensive loss (income): U.S. Plans Non-U.S. Plans (In thousands) 2023 2022 2023 2022 Changes in plan assets and benefit obligations recognized in other comprehensive loss Net (gain) arising during the year $ ( 369 ) $ ( 123 ) $ ( 276 ) $ ( 9,240 ) Effect of exchange rates on amounts included in AOCI - - 265 ( 418 ) Amounts recognized as a component of net periodic benefit cost: Amortization or curtailment recognition of prior service credit 121 160 - - Amortization or settlement recognition of net (loss) gain ( 44 ) ( 60 ) 51 ( 121 ) Total recognized in other comprehensive (income) loss $ ( 292 ) $ ( 23 ) $ 40 $ ( 9,779 ) 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 2023 2022 2023 2022 Discount rate 5.20 % 4.36 % 5.10 % 5.13 % Current healthcare cost trend rate 6.00 % 6.23 % 5.53 % 5.58 % Ultimate healthcare cost trend rate 4.03 % 4.03 % 3.70 % 3.70 % Year ultimate healthcare cost trend rate will be realized 2045 2045 2040 2040 U.S. Plans Non-U.S. Plans Net Periodic Postretirement Cost 2023 2022 2021 2023 2022 2021 Discount rate 4.36 % 2.47 % 2.44 % 5.13 % 3.51 % 3.32 % Current healthcare cost trend rate 6.23 % 6.07 % 6.68 % 5.58 % 5.68 % 5.73 % Ultimate healthcare cost trend rate 4.03 % 4.36 % 4.36 % 3.70 % 3.70 % 3.70 % Year ultimate healthcare cost trend rate will be realized 2045 2037 2037 2040 2040 2040 We expect to pay approximately $ 1.2 million to $ 1.6 million in estimated postretirement benefits in each of the next five years. In the five years thereafter (2029-2033), we expect to pay a cumulative total of $ 9.4 million. |
Contingencies and Accrued Losse
Contingencies and Accrued Losses | 12 Months Ended |
May 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Accrued Losses | NOTE P — CONTINGENCIES AND ACCRUED LOSSES Accrued loss reserves consist of the following: May 31, 2023 2022 (In thousands) Accrued product liability and other loss reserves $ 16,995 $ 16,003 Accrued warranty reserves 8,448 7,450 Accrued environmental reserves 1,027 1,055 Total Accrued Loss Reserves - Current $ 26,470 $ 24,508 Accrued product liability and other loss reserves - noncurrent $ 22,849 $ 26,226 Accrued warranty liability - noncurrent 3,328 3,455 Accrued environmental reserves - noncurrent 6,173 6,254 Total Accrued Loss Reserves - Noncurrent $ 32,350 $ 35,935 Product Liability Matters We provide, through our wholly owned insurance subsidiaries, certain insurance coverage, primarily product liability coverage, to our other subsidiaries. Excess coverage is provided by third-party insurers. Our product liability accruals provide for these potential losses, as well as other uninsured claims. Product liability accruals are established based upon actuarial calculations of potential liability using industry experience, actual historical experience and actuarial assumptions developed for similar types of product liability claims, including development factors and lag times. To the extent there is a reasonable possibility that potential losses could exceed the amounts already accrued, we believe that the amount of any such additional loss would be immaterial to our results of operations, liquidity and consolidated financial position. Warranty Matters We also offer warranties on many of our products, as well as long-term warranty programs at certain of our businesses, and have established product warranty liabilities. We review these liabilities for adequacy on a quarterly basis and adjust them as necessary. The primary factors that could affect these liabilities may include changes in performance rates, as well as costs of replacement. Provision for estimated warranty costs is recorded at the time of sale and periodically adjusted, as required, to reflect actual experience. It is probable that we will incur future losses related to warranty claims we have received but that have not been fully investigated and related to claims not yet received. While our warranty liabilities represent our best estimates at May 31, 2023, we can provide no assurances that we will not experience material claims in the future or that we will not incur significant costs to resolve such claims beyond the amounts accrued or beyond what we may recover from our suppliers. Based upon the nature of the expense, product warranty expense is recorded as a component of cost of sales or within SG&A. Also, due to the nature of our businesses, the amount of claims paid can fluctuate from one period to the next. While our warranty liabilities represent our best estimates of our expected losses at any given time, from time to time we may revise our estimates based on our experience relating to factors such as weather conditions, specific circumstances surrounding product installations and other factors. The following table includes the changes in our accrued warranty balances: Year Ended May 31, 2023 2022 2021 (In thousands) Beginning Balance $ 10,905 $ 13,175 $ 11,106 Deductions (1) ( 27,851 ) ( 26,332 ) ( 25,817 ) Provision charged to expense 28,722 24,062 27,886 Ending Balance $ 11,776 $ 10,905 $ 13,175 (1) Primarily claims paid during the year. Environmental Matters Like other companies participating in similar lines of business, some of our subsidiaries are involved in environmental remediation matters. It is our policy to accrue remediation costs when the liability is probable and the costs are reasonably estimable, which generally is not later than at completion of a feasibility study or when we have committed to an appropriate plan of action. We also take into consideration the estimated period of time over which payments may be required. The liabilities are reviewed periodically and, as investigation and remediation activities continue, adjustments are made as necessary. Liabilities for losses from environmental remediation obligations do not consider the effects of inflation and anticipated expenditures are not discounted to their present value. The liabilities are not offset by possible recoveries from insurance carriers or other third parties but do reflect anticipated allocations among potentially responsible parties at federal superfund sites or similar state-managed sites, third party indemnity obligations, and an assessment of the likelihood that such parties will fulfill their obligations at such sites. Other Contingencies One of our former subsidiaries in our SPG reportable segment has been the subject of a proceeding in which one of its former distributors brought suit against the subsidiary for breach of contract. Following a June 2017 trial, a jury determined that the distributor was not entitled to any damages on the distributor's claims. On appeal, the Ninth Circuit Court of Appeals ordered a new trial with respect to certain issues. On December 10, 2021, a new jury awarded $ 6.0 million in damages to the distributor. Per the parties' contracts, the distributor may also be entitled to recover some portion of its attorneys' fees. On July 3, 2023, the Ninth Circuit Court of Appeals issued its decision rejecting the distributor's arguments and denying all appellate relief to the distributor, which also rendered our cross-appeal moot. As a result of this recent decision, we increased our accrual from $ 2.6 million to $ 6.0 million for the year ended May 31, 2023, which we believe to be the new low end of the range of loss. While an ultimate loss in excess of the accrued amount is reasonably possible given the potential for attorney fees to be awarded, we believe that the high end of the range of loss would not be materially more than the $ 6.0 million noted above. This contingency remains a retained liability of the Company. Gain on Business Interruption Insurance In April 2021, there was a significant plant explosion at a key alkyd resin supplier which caused severe supply chain disruptions. As a result of this disruption, the Consumer segment incurred incremental costs and lost sales during fiscal 2021 and 2022. A claim for these losses was submitted under our business interruption insurance policy. During the third quarter of fiscal 2023 the Consumer segment recovered $ 20.0 million from insurance. The insurance gain is recorded as a reduction to SG&A expenses in our Consolidated Statements of Income, and the proceeds are included within cash flows from operating activities in our Consolidated Statement of Cash Flows for the year ended May 31, 2023. |
Revenue
Revenue | 12 Months Ended |
May 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | NOTE Q — REVENUE We operate a portfolio of businesses that manufacture and sell a variety of product lines that include specialty paints, protective coatings, roofing systems, sealants and adhesives, among other things. 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,” to the Consolidated Financial Statements for further details regarding our disaggregated revenues, as well as a description of each of the unique revenue streams related to each of our four reportable segments. Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. The majority of our revenue is recognized at a point in time. However, we also record revenues generated under construction contracts, mainly in connection with the installation of specialized roofing and flooring systems and related services. For certain polymer flooring installation projects, we account for our revenue using the output method, as we consider square footage of completed flooring to be the best measure of progress toward the complete satisfaction of the performance obligation. In contrast, for certain of our roofing installation projects, we account for our revenue using the input method, as that method is the best measure of performance as it considers costs incurred in relation to total expected project costs, which essentially represents the transfer of control for roofing systems to the customer. In general, for our construction contracts, we record contract revenues and related costs as our contracts progress on an over-time model. We have elected to apply the practical expedient to recognize revenue net of allowances for returns and any taxes collected from customers, which are subsequently remitted to governmental authorities. Payment terms and conditions vary by contract type, although our customers’ payment terms generally include a requirement to pay within 30 to 60 days of fulfilling our performance obligations. In instances where the timing of revenue recognition differs from the timing of invoicing, we have determined that our contracts generally do not include a significant financing component. We have elected to apply the practical expedient to treat all shipping and handling costs as fulfillment costs, as a significant portion of these costs are incurred prior to control transfer. Significant Judgments Our contracts with customers may include promises to transfer multiple products and/or services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. For example, judgment is required to determine whether products sold in connection with the sale of installation services are considered distinct and accounted for separately, or not distinct and accounted for together with installation services and recognized over time. We provide customer rebate programs and incentive offerings, including special pricing and co-operative advertising arrangements, promotions and other volume-based incentives. These customer programs and incentives are considered variable consideration and recognized as a reduction of net sales. Up-front consideration provided to customers is capitalized as a component of other assets and amortized over the estimated life of the contractual arrangement. We include in revenue variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the variable consideration is resolved. In general, this determination is made based upon known customer program and incentive offerings at the time of sale, and expected sales volume forecasts as it relates to our volume-based incentives. This determination is updated each reporting period. Certain of our contracts include contingent consideration that is receivable only upon the final inspection and acceptance of a project. We include estimates of such variable consideration in our transaction price. Based on historical experience, we consider the probability-based expected value method appropriate to estimate the amount of such variable consideration. Our products are generally sold with a right of return, and we may provide other credits or incentives, which are accounted for as variable consideration when estimating the amount of revenue to recognize. Returns and credits are estimated at contract inception and updated at the end of each reporting period as additional information becomes available. We record a right of return liability to accrue for expected customer returns. Historical actual returns are used to estimate future returns as a percentage of current sales. Obligations for returns and refunds were not material individually or in the aggregate. We offer assurance type warranties on our products as well as separately sold warranty contracts. Revenue related to warranty contracts that are sold separately is recognized over the life of the warranty term. Warranty liabilities for our assurance type warranties are discussed further in Note P, “Contingencies and Accrued Losses,” to the Consolidated Financial Statements. Contract Balances Timing of revenue recognition may differ from the timing of invoicing customers. Our contract assets are recorded for products and services that have been provided to our customer but have not yet been billed and are included in prepaid expenses and other current assets in our Consolidated Balance Sheets. Our short-term contract liabilities consist of advance payments, or deferred revenue, and are included in other accrued liabilities in our Consolidated Balance Sheets. Trade accounts receivable, net of allowances, and net contract assets consisted of the following: Year Ended May 31, 2023 2022 $ Change % Change (In thousands, except percents) Trade accounts receivable, less allowances $ 1,503,040 $ 1,432,632 $ 70,408 4.9 % Contract assets $ 49,188 $ 57,234 $ ( 8,046 ) - 14.1 % Contract liabilities - short-term ( 42,396 ) ( 44,938 ) 2,542 - 5.7 % Net Contract Assets $ 6,792 $ 12,296 $ ( 5,504 ) - 44.8 % The $ 5.5 million decrease in our net contract assets from May 31, 2022 to May 31, 2023, resulted primarily due to the timing and volume of construction jobs in progress at May 31, 2023 versus May 31, 2022. During the years ended May 31, 2023 and May 31, 2022 we recognized $ 26.6 million and $ 24.5 million of revenue, which was included in contract liabilities as of May 31, 2022 and 2021, respectively. We also record long-term deferred revenue, which amounted to $ 76.6 million and $ 62.5 million as of May 31, 2023 and 2022, respectively. The long-term portion of deferred revenue is related to warranty contracts and is included in other long-term liabilities in our Consolidated Balance Sheets. We have elected to adopt the practical expedient to not disclose the aggregate amount of transaction price allocated to performance obligations that are unsatisfied as of the end of the reporting period for performance obligations that are part of a contract with an original expected duration of one year or less. We recognize an asset for the incremental costs of obtaining a contract with a customer if we expect the benefit of those costs to be longer than one year. As our contract terms are primarily one year or less in duration, we have elected to apply a practical expedient to expense costs as incurred for costs to obtain a contract with a customer when the amortization period would have been one year or less. These costs include our internal sales force compensation program and certain incentive programs as we have determined annual compensation is commensurate with annual sales activities. Allowance for Credit Losses Our primary allowance for credit losses is the allowance for doubtful accounts. The allowance for doubtful accounts reduces the trade accounts receivable balance to the estimated net realizable value equal to the amount that is expected to be collected. The allowance was based on assessments of current creditworthiness of customers, historical collection experience, the aging of receivables and other currently available evidence. Trade accounts receivable balances are written-off against the allowance if a final determination of uncollectibility is made. All provisions for allowances for doubtful collection of accounts are included in SG&A expenses. The following tables summarize the activity for the allowance for credit losses for the fiscal year ended May 31, 2023: (In thousands) Balance at June 1, 2022 $ 46,669 Bad debt provision 13,557 Uncollectible accounts written off, net of recoveries ( 9,780 ) Translation adjustments ( 964 ) Balance at May 31, 2023 $ 49,482 |
Segment Information
Segment Information | 12 Months Ended |
May 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE R — SEGMENT INFORMATION We operate a portfolio of businesses and product lines that manufacture and sell a variety of specialty paints, protective coatings, roofing systems, flooring solutions, sealants, cleaners and adhesives. We manage our portfolio by organizing our businesses and product lines into four reportable segments as outlined below, which also represent our operating segments. Within each operating segment, we manage product lines and businesses which generally address common markets, share similar economic characteristics, utilize similar technologies and can share manufacturing or distribution capabilities. Our four operating segments represent components of our business for which separate financial information is available that is utilized on a regular basis by our chief operating decision maker in determining how to allocate the assets of the company and evaluate performance. These four operating segments are each managed by an operating segment manager, who is responsible for the day-to-day operating decisions and performance evaluation of the operating segment’s underlying businesses. We evaluate the profit performance of our segments primarily based on income before income taxes, but also look to EBIT, as a performance evaluation measure because interest (income) expense, net is essentially related to corporate functions, as opposed to segment operations. Our CPG reportable segment products and services are sold throughout North America and also account for the majority of our international sales. Our construction product lines are sold directly to manufacturers, contractors, distributors and end-users, including industrial manufacturing facilities, concrete and cement producers, public institutions and other commercial customers. Products and services within this reportable segment include construction sealants and adhesives, coatings and chemicals, roofing systems, concrete admixture and repair products, building envelope solutions, insulated cladding, flooring systems, and weatherproofing solutions. Our PCG reportable segment products and services are sold throughout North America, as well as internationally, and are sold directly to contractors, distributors and end-users, such as industrial manufacturing facilities, public institutions and other commercial customers. Products and services within this reportable segment include high-performance flooring solutions, corrosion control and fireproofing coatings, infrastructure repair systems, fiberglass reinforced plastic gratings and drainage systems. Our Consumer reportable segment manufactures and markets professional use and DIY products for a variety of mainly residential applications, including home improvement and personal leisure activities. Our Consumer reportable segment’s major manufacturing and distribution operations are located primarily in North America, along with a few locations in Europe, Australia and South America. Our Consumer reportable segment products are primarily sold directly to mass merchandisers, home improvement centers, hardware stores, paint stores, craft shops and through distributors. The Consumer reportable segment offers products that include specialty, hobby and professional paints; caulks; adhesives; cleaners; sandpaper and other abrasives; silicone sealants and wood stains. Sales to The Home Depot, Inc. represented less than 10 % of our consolidated net sales for fiscal 2023, 2022 and 2021, respectively. Furthermore, sales to The Home Depot, Inc. represented 23 %, 25 % and 26 % of our Consumer segment net sales for each of the fiscal years ended May 31, 2023, 2022 and 2021, respectively. Our SPG reportable segment products are sold throughout North America and internationally, primarily in Europe. Our SPG product lines are sold directly to contractors, distributors and end-users, such as industrial manufacturing facilities, public institutions and other commercial customers. The SPG reportable segment offers products that include industrial cleaners, restoration services equipment, colorants, nail enamels, exterior finishes, edible coatings and specialty glazes for pharmaceutical and food industries, and other specialty OEM coatings. In addition to our four reportable segments, there is a category of certain business activities and expenses, referred to as corporate/other, that does not constitute an operating segment. This category includes our corporate headquarters and related administrative expenses, results of our captive insurance companies, gains or losses on the sales of certain assets and other expenses not directly associated with any reportable segment. Assets related to the corporate/other category consist primarily of investments, prepaid expenses and headquarters’ property and equipment. These corporate and other assets and expenses reconcile reportable segment data to total consolidated income before income taxes and identifiable assets. We reflect income from our joint ventures on the equity method and receive royalties from our licensees. The following tables present a disaggregation of revenues by geography, and the results of our reportable segments consistent with our management philosophy, by representing the information we utilize, in conjunction with various strategic, operational and other financial performance criteria, in evaluating the performance of our portfolio of businesses. Year Ended May 31, 2023 2022 2021 (In thousands) Net Sales CPG $ 2,608,872 $ 2,486,486 $ 2,076,565 PCG 1,333,567 1,188,379 1,028,456 Consumer 2,514,770 2,242,047 2,295,277 SPG 799,205 790,816 705,990 Total $ 7,256,414 $ 6,707,728 $ 6,106,288 Income (Loss) Before Income Taxes CPG $ 309,683 $ 396,509 $ 291,773 PCG 133,757 139,068 90,687 Consumer 378,157 175,084 354,789 SPG 103,279 121,937 108,242 Corporate/Other ( 275,494 ) ( 225,799 ) ( 177,053 ) Total $ 649,382 $ 606,799 $ 668,438 Identifiable Assets CPG $ 2,297,862 $ 2,160,071 $ 1,815,303 PCG 1,118,360 1,115,780 1,051,334 Consumer 2,384,782 2,405,764 2,386,703 SPG 804,762 839,419 772,540 Corporate/Other 176,238 186,672 227,089 Total $ 6,782,004 $ 6,707,706 $ 6,252,969 Capital Expenditures CPG $ 110,777 $ 93,327 $ 65,830 PCG 29,454 28,887 19,413 Consumer 61,500 70,227 54,986 SPG 49,801 26,939 18,989 Corporate/Other 1,979 585 223 Total $ 253,511 $ 219,965 $ 159,441 Depreciation and Amortization CPG $ 49,993 $ 48,009 $ 45,079 PCG 23,064 22,287 22,633 Consumer 52,081 50,857 47,763 SPG 24,897 26,718 26,017 Corporate/Other 4,914 5,203 5,365 Total $ 154,949 $ 153,074 $ 146,857 Year Ended May 31, 2023 CPG PCG Consumer SPG Consolidated (In thousands) Net Sales (based on shipping location) (1) United States $ 1,572,060 $ 861,190 $ 2,078,519 $ 680,159 $ 5,191,928 Foreign Canada 243,608 85,812 178,678 4,084 512,182 Europe 469,064 233,872 212,558 81,260 996,754 Latin America 224,073 39,395 26,315 1,720 291,503 Asia Pacific 100,067 23,234 18,700 31,982 173,983 Other Foreign - 90,064 - - 90,064 Total Foreign 1,036,812 472,377 436,251 119,046 2,064,486 Total $ 2,608,872 $ 1,333,567 $ 2,514,770 $ 799,205 $ 7,256,414 Year Ended May 31, 2022 CPG PCG Consumer SPG Consolidated (In thousands) Net Sales (based on shipping location) (1) United States $ 1,423,473 $ 739,731 $ 1,829,384 $ 647,660 $ 4,640,248 Foreign Canada 265,933 76,085 144,032 7,208 493,258 Europe 509,891 235,678 221,280 99,324 1,066,173 Latin America 203,135 29,792 29,940 1,772 264,639 Asia Pacific 83,989 23,435 17,411 34,852 159,687 Other Foreign 65 83,658 - - 83,723 Total Foreign 1,063,013 448,648 412,663 143,156 2,067,480 Total $ 2,486,486 $ 1,188,379 $ 2,242,047 $ 790,816 $ 6,707,728 Year Ended May 31, 2021 CPG PCG Consumer SPG Consolidated (In thousands) Net Sales (based on shipping location) (1) United States $ 1,135,341 $ 611,808 $ 1,832,826 $ 581,094 $ 4,161,069 Foreign Canada 208,289 69,754 153,631 8,982 440,656 Europe 481,244 242,102 257,372 82,170 1,062,888 Latin America 159,197 26,283 31,358 1,826 218,664 Asia Pacific 79,413 22,658 20,090 31,918 154,079 Other Foreign 13,081 55,851 - - 68,932 Total Foreign 941,224 416,648 462,451 124,896 1,945,219 Total $ 2,076,565 $ 1,028,456 $ 2,295,277 $ 705,990 $ 6,106,288 Year Ended May 31, 2023 2022 2021 (In thousands) Long-Lived Assets (2) United States $ 2,551,717 $ 2,533,568 $ 2,325,365 Foreign Canada 244,182 223,793 235,810 Europe 357,359 324,001 394,168 United Kingdom 245,411 259,956 290,078 Other Foreign 183,697 195,665 198,740 Total Foreign 1,030,649 1,003,415 1,118,796 Total $ 3,582,366 $ 3,536,983 $ 3,444,161 (1) It is not practicable to obtain the information needed to disclose revenues attributable to each of our product lines. (2) Long-lived assets include all non-current assets, excluding non-current deferred income taxes. |
Valuation And Qualifying Accoun
Valuation And Qualifying Accounts and Reserves (Schedule II) | 12 Months Ended |
May 31, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts and Reserves (Schedule II) | RPM International In c. and Subsidiaries Valuation And Qualifying Accou nts 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, 2023 Current: Allowance for credit losses $ 46,669 $ 13,557 $ — $ ( 10,744 ) (1) $ 49,482 Accrued product liability and other loss reserves $ 16,003 $ 10,056 $ 76 $ ( 9,140 ) (2) $ 16,995 Accrued environmental reserves $ 1,055 $ 932 $ — $ ( 960 ) $ 1,027 Noncurrent: Accrued product liability and other loss reserves $ 26,226 $ 3,055 $ — $ ( 6,432 ) (2) $ 22,849 Accrued environmental reserves $ 6,254 $ 271 $ — $ ( 352 ) $ 6,173 Year Ended May 31, 2022 Current: Allowance for credit losses $ 55,922 $ 4,326 $ — $ ( 13,579 ) (1) $ 46,669 Accrued product liability and other loss reserves $ 18,297 $ 8,358 $ — $ ( 10,652 ) (2) $ 16,003 Accrued environmental reserves $ 1,329 $ 674 $ — $ ( 948 ) $ 1,055 Noncurrent: Accrued product liability and other loss reserves $ 26,614 $ 10,760 $ — $ ( 11,148 ) (2) $ 26,226 Accrued environmental reserves $ 6,267 $ 318 $ — $ ( 331 ) $ 6,254 Year Ended May 31, 2021 Current: Allowance for credit losses $ 55,847 $ 10,044 $ — $ ( 9,969 ) (1) $ 55,922 Accrued product liability and other loss reserves $ 10,458 $ 14,173 $ — $ ( 6,334 ) (2) $ 18,297 Accrued environmental reserves $ 1,970 $ 1,045 $ — $ ( 1,686 ) $ 1,329 Noncurrent: Accrued product liability and other loss reserves $ 27,016 $ 15,366 $ — $ ( 15,768 ) (2) $ 26,614 Accrued environmental reserves $ 4,125 $ 1,918 $ — $ 224 $ 6,267 (1) Uncollectible accounts written off, net of recoveries. (2) Primarily claims paid during the year, net of insurance contributions. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
May 31, 2023 | |
Accounting Policies [Abstract] | |
Consolidation, Noncontrolling Interests and Basis of Presentation | 1) Consolidation, Noncontrolling Interests and Basis of Presentation The accompanying Consolidated Financial Statements have been prepared in accordance with GAAP and the instructions to Form 10-K. In our opinion, all adjustments (consisting of normal accruals) considered necessary for fair presentation have been included for the periods ended May 31, 2023, 2022, and 2021. The presentation of the Consolidated Statements of Comprehensive Income has been condensed and our disclosure in Note K, “Accumulated Other Comprehensive Income (Loss),” has correspondingly been expanded. As a result, certain prior period amounts have been reclassified to conform with the current year’s 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, 2023, we completed a total of six acquisitions across our four reportable segments. Most notably, within our Consumer reportable segment, we acquired a distributor of branded chalk paints, primarily targeting the upscale décor market in the U.K. and Ireland. In addition, on January 20, 2023, we completed the divestiture of our Guardian business for proceeds of approximately $ 49.2 million, net of cash disposed. The transaction also includes a future contingent cash receipt of up to an additional $ 7.5 million which may be recognized upon achievement of certain financial goals. In connection with the divestiture, we recognized a gain of $ 24.7 million during fiscal 2023, which is included in (gain) on sales of assets and business, net in our Consolidated Statements of Income. Guardian, headquartered in Hickory, North Carolina, was a reporting unit included in our SPG segment and is a seller of furniture protection plans and protection products for fabric, leather, and wood applications. The sale of Guardian does not represent a strategic shift that will have a major effect on our operations and financial results and therefore is not presented as discontinued operations. During the fiscal year ended May 31, 2022, we completed a total of eight acquisitions in three of our four reportable segments. Most notably, within our CPG reportable segment, we acquired a chemical manufacturing facility located in Corsicana, Texas. The facility is being repurposed to act as a manufacturing campus for a number of RPM's operating companies. Also within our CPG reportable segment, we acquired a provider of indoor air quality solutions headquartered in Clearwater, Florida. We also completed several other acquisitions within our CPG, SPG and PCG reportable segments. No divestitures were completed during fiscal 2022. 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 2022 acquisitions. For acquisitions completed during fiscal 2023, the valuations of consideration transferred, total assets acquired, and liabilities assumed are substantially complete. The primary areas that remain open relate to working capital adjustments. Acquisitions are aggregated by year of purchase in the following table : Fiscal 2023 Acquisitions Fiscal 2022 Acquisitions (In thousands) Weighted-Average Total Weighted-Average Total Current assets $ 17,508 $ 9,604 Property, plant and equipment 3,605 71,658 Goodwill N/A 25,407 N/A 30,747 Trade names - indefinite lives N/A 3,168 N/A 1,050 Other intangible assets 10 14,965 13 21,010 Other long-term assets 1,647 2,316 Total Assets Acquired $ 66,300 $ 136,385 Liabilities assumed ( 12,287 ) ( 7,159 ) Net Assets Acquired $ 54,013 (1) $ 129,226 (2) (1) Figure includes cash acquired of $ 6.5 million. (2) Figure includes cash acquired of $ 1.8 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, 2023 and 2022 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 losses increased during the current fiscal year due to the strengthening of the U.S. dollar, resulting in net transactional losses of approximately $ 8.9 million. This compared to more moderate net transactional foreign exchange losses in fiscal 2022 and fiscal 2021 of approximately $ 4.3 million and $ 2.8 million, respectively as a result of more modest fluctuations in the strength of the U.S. dollar. |
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, 2023 2022 (In thousands) Land $ 92,954 $ 88,137 Buildings and leasehold improvements 552,775 519,391 Machinery and equipment 1,687,187 1,525,387 Total property, plant and equipment, at cost 2,332,916 2,132,915 Less: allowance for depreciation and amortization 1,093,440 1,028,932 Property, plant and equipment, net $ 1,239,476 $ 1,103,983 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: Buildings and leasehold improvements 1 to 50 years Machinery and equipment 1 to 36 years Total deprecia tion expense for each fiscal period includes the charges to income that result from the amortization of assets recorded under finance leases. For the periods ended May 31, 2023, 2022 and 2021, we recorded depreciation expense of $ 108.4 million, $ 104.3 million, and $ 99.4 million , respectively. |
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 is 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. |
Shipping Costs | 8) Shipping Costs We identify shipping and handling costs as costs paid to third-party shippers for transporting products to customers, and we include these costs in cost of sales in our Consolidated Statements of Income. |
Allowance for Credit Losses | 9) Allowance for Credit Losses Our primary allowance for credit losses is the allowance for doubtful accounts. The allowance for doubtful accounts reduces the trade accounts receivable balance to the estimated net realizable value equal to the amount that is expected to be collected. The allowance is established using assessments of current creditworthiness of customers, historical collection experience, the aging of receivables and other currently available evidence. Trade accounts receivable balances are written-off against the allowance if a final determination of uncollectibility is made. All provisions for allowances for doubtful collection of accounts are included in SG&A expenses. 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, 2023, 2022 and 2021, bad debt expense approximated $ 13.6 million, $ 4.3 million and $ 10.0 million, respectively. |
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 2023, we recorded $ 7.6 million of inventory charges within our SPG Segment related to product line and SKU rationalization and related obsolete inventory identification. Inventories were composed of the following major classes: May 31, 2023 2022 (In thousands) Raw materials and supplies $ 451,504 $ 560,886 Finished goods 683,992 651,732 Total Inventory $ 1,135,496 $ 1,212,618 |
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 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. Goodwill is assigned to reporting units that are expected to benefit from the synergies of the business combination as of the acquisition date. Once goodwill has been allocated to the reporting units, it no longer retains its identification with a particular acquisition and becomes identified with the reporting unit in its entirety. Accordingly, the fair value of the reporting unit as a whole is available to support the recoverability of its goodwill. We evaluate our reporting units when changes in our operating structure occur, and if necessary, reassign goodwill using a relative fair value allocation approach. We test our goodwill balances at least annually, or more frequently as impairment indicators arise, at the reporting unit level. Our annual impairment assessment date has been designated as the first day of our fourth fiscal quarter. Our reporting units have been identified at the component level, which is one level below our operating segments. We follow the FASB guidance found in ASC 350 that simplifies how an entity tests goodwill for impairment. It provides an option to first 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, and whether it is necessary to perform a quantitative goodwill impairment test. We assess qualitative factors in each of our reporting units that carry goodwill. We assess these qualitative factors to determine whether it is necessary to perform the quantitative goodwill impairment test. The 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 quantitative analysis. We applied the quantitative process during our annual goodwill impairment assessments performed during the fourth quarters of fiscal 2023, 2022 and 2021. In applying the quantitative test, we compare the fair value of a reporting unit to its carrying value. If the calculated fair value is less than the current carrying value, then impairment of the reporting unit exists. Calculating the fair value of a reporting unit requires our use of estimates and assumptions. We use significant judgment in determining the most appropriate method to establish the fair value of a reporting unit. We estimate the fair value of a reporting unit by employing various valuation techniques, depending on the availability and reliability of comparable market value indicators, and employ methods and assumptions that include the application of third-party market value indicators and the computation of discounted future cash flows determined from estimated cashflow adjustments to a reporting unit’s annual 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. Our fair value estimations may include a combination of value indications from both the market and income approaches, as the income approach considers the future cash flows from a reporting unit’s ongoing operations as a going concern, while the market approach considers the current financial environment in establishing fair value. In applying the market approach, we use market multiples derived from a set of similar companies. In applying the income approach, we evaluate discounted future cash flows determined from estimated cashflow adjustments to a reporting unit’s projected EBITDA. Under this approach, we calculate the fair value of a reporting unit based on the present value of estimated future cash flows. In applying the discounted cash flow methodology utilized in the income approach, we rely on a number of factors, including future business plans, actual and forecasted operating results, and market data. The significant assumptions employed under this method include discount rates; revenue growth rates, including assumed terminal growth rates; and operating margins used to project future cash flows for a reporting unit. The discount rates utilized reflect market-based estimates of capital costs and discount rates adjusted for management’s assessment of a market participant’s view with respect to other risks associated with the projected cash flows of the individual reporting unit. Our estimates are based upon assumptions we believe to be reasonable, but which by nature are uncertain and unpredictable. We believe we incorporate ample sensitivity ranges into our analysis of goodwill impairment testing for a reporting unit, such that actual experience would need to be materially out of the range of expected assumptions in order for an impairment to remain undetected. Conclusion on Annual Goodwill Impairment Tests As a result of the annual impairment assessments performed for fiscal 2023, 2022 and 2021, there were no goodwill impairments. Impairment Charge Recorded in the Third Quarter of Fiscal 2023 Although no impairment charge was recorded during these periods related to the annual impairment test, we did record a goodwill impairment charge in fiscal 2023. As previously reported, we announced our MAP 2025 operational improvement initiative in August 2022. Due to the challenged macroeconomic environment we evaluated certain business restructuring actions, specifically our go to market strategy for operating in Europe. During the third quarter ended February 28, 2023, due to declining profitability and regulatory headwinds, management decided to restructure the USL reporting unit within our PCG segment, and is correspondingly exploring strategic alternatives for our infrastructure services business within the U.K., which represents approximately 30 % of annual revenues of the reporting unit. Due to this decision, we determined that an interim goodwill impairment assessment was required, as well as an impairment assessment for our other long-lived assets. Accordingly, we recorded an impairment loss totaling $ 36.7 million for the impairment of goodwill in our USL reporting unit during fiscal 2023. Refer to Note C, “Goodwill and Other Intangible Assets,” to the Consolidated Financial Statements for additional details on this goodwill impairment charge. Changes in the Composition of Reporting Units in the Fourth Quarter of Fiscal 2023 Subsequent to our annual impairment assessment, in the fourth quarter of fiscal 2023 and in connection with our MAP 2025 initiative, the Viapol business within our CPG segment was realigned from our Sealants reporting unit to our Euclid reporting unit. We performed an interim goodwill impairment assessment for both of the impacted reporting units using a quantitative assessment. Based on this assessment, we concluded that the estimated fair values exceeded the carrying values for these reporting units, and accordingly, no goodwill impairment was identified as a result of this realignment. Indefinite-Lived Intangible Assets Additionally, we test all indefinite-lived intangible assets for impairment at least annually during our fiscal fourth quarter. We follow the guidance provided by ASC 350 that simplifies how an entity tests indefinite-lived intangible assets for impairment. It provides an option 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 quantitative processes during our annual indefinite-lived intangible asset impairment assessments performed during the fourth quarters of fiscal 2023, 2022 and 2021. 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. Our required annual impairment test of our indefinite-lived intangible assets performed during fiscal 2023, 2022 and 2021 did not result in an impairment charge. Although no impairment losses were recorded during these periods related to the annual impairment test, we did record an intangible asset impairment charge in fiscal 2023. In connection with MAP 2025 and related to the goodwill impairment charge noted above, we determined that an interim impairment assessment for our other long-lived assets was required following management's decision to restructure the USL reporting unit within our PCG segment. Accordingly, we recorded an impairment loss totaling $ 2.5 million for the impairment of an indefinite-lived tradename in our USL reporting unit during fiscal 2023. We did not record any impairments for our definite-lived long-lived assets as a result of this assessment. Refer to Note C, "Goodwill and Other Intangible Assets," to the Consolidated Financial Statements for further discussion. Definite-Lived Intangible Assets In accordance with the guidance provided by ASC 360, "Property, Plant, and Equipment," we assess identifiable, amortizable intangibles assets for impairment whenever events or changes in facts and circumstances indicate the possibility that the carrying values of these assets may not be recoverable over their estimated remaining useful lives. Factors considered important in our assessment, which might trigger an impairment evaluation, include the following: • significant under-performance relative to historical or projected future operating results; • significant changes in the manner of our use of the acquired assets; • significant changes in the strategy for our overall business; and • significant negative industry or economic trends. Measuring a potential impairment of amortizable intangibles assets requires the use of various estimates and assumptions, including the determination of which cash flows are directly related to the assets being evaluated, the respective useful lives over which those cash flows will occur and potential residual values, if any. If we determine that the carrying values of these assets may not be recoverable based upon the existence of one or more of the above-described indicators or other factors, any impairment amounts would be measured based on the projected net cash flows expected from these assets, including any net cash flows related to eventual disposition activities. The determination of any impairment losses would be based on the best information available, including internal estimates of discounted cash flows; market participant assumptions; quoted market prices, when available; and independent appraisals, as appropriate, to determine fair values. Cash flow estimates would be based on our historical experience and our internal business plans, with appropriate discount rates applied. We did not record any impairment charges related to our definite-lived intangible assets during fiscal 2023, 2022 and 2021. |
Advertising Costs | 12) Advertising Costs Advertising costs are charged to operations w hen incurred and are included in SG&A expenses. For the years ended May 31, 2023, 2022 and 2021, advertising costs were $ 62.0 million, $ 45.4 million and $ 61.1 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, 2023, 2022 and 2021 were $ 86.6 million, $ 80.5 million and $ 77.6 million, respectively. |
Stock-Based Compensation | 14) Stock-Based Compensation Stock-based compensation represents the cost related to stock-based awards granted to our associates 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,” to the Consolidated Financial Statements for further information. |
Investment (Income) Expense, Net | 15) Investment (Income) Expense, Net Investment (income) expense, net, consists of the following components: Year Ended May 31, 2023 2022 2021 (In thousands) Interest (income) $ ( 9,250 ) $ ( 4,435 ) $ ( 3,555 ) Net loss (gain) on marketable securities 2,086 17,706 ( 38,774 ) Dividend (income) ( 2,584 ) ( 5,676 ) ( 2,121 ) Investment (income) expense, net $ ( 9,748 ) $ 7,595 $ ( 44,450 ) Net Loss (Gain) on Marketable Securities Year Ended May 31, 2023 2022 2021 (In thousands) Unrealized losses (gains) on marketable equity securities $ 2,667 $ 19,164 $ ( 16,133 ) Realized (gains) on marketable equity securities ( 551 ) ( 1,488 ) ( 22,680 ) Realized (gains) losses on available-for-sale debt securities ( 30 ) 30 39 Net loss (gain) on marketable securities $ 2,086 $ 17,706 $ ( 38,774 ) |
Other Expense (Income), Net | 16) Other Expense (Income), Net Other expense (income), net, consists of the following components: Year Ended May 31, 2023 2022 2021 (In thousands) Pension non-service costs (credits) $ 10,381 $ ( 10,581 ) $ 14,542 Other ( 604 ) ( 1,265 ) ( 903 ) Other expense (income), net $ 9,777 $ ( 11,846 ) $ 13,639 |
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 both the treasury stock and two-class method, as our unvested share-based payment awards contain rights to receive non-forfeitable dividends are considered participating securities. We calculate both Basic and Diluted EPS under each method and compare the results, reporting the method that is most dilutive. 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 and restricted stock awards. The treasury stock method also assumes that we use the proceeds from the hypothetical exercise of the stock compensation awards to repurchase common stock at the average market price during the period. 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. See Note L, “Earnings Per Share,” to the Consolidated Financial Statements for additional information. |
Recent Accounting Pronouncements | 19) Recent Accounting Pronouncements New Pronouncements The Company has not adopted any Accounting Standard Updates ("ASU") during fiscal 2023 that have a material impact on our Consolidated Financial Statements. Additionally, there are no current ASU's issued, but not adopted, that are expected to have a material impact on the Company. |
Subsequent Event | 20) Subsequent Event Effective June 1, 2023, we realigned certain international businesses and management structure, that previously operated under our CPG segment, with our PCG segment. This realignment did not change our reportable segments at May 31, 2023. Rather, our periodic filings, beginning with our first quarter ending August 31, 2023, will include historical segment results recast to reflect the impact of this realignment. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
May 31, 2023 | |
Accounting Policies [Abstract] | |
Asset Acquired and Liabilities Assumed on Acquisition | Acquisitions are aggregated by year of purchase in the following table : Fiscal 2023 Acquisitions Fiscal 2022 Acquisitions (In thousands) Weighted-Average Total Weighted-Average Total Current assets $ 17,508 $ 9,604 Property, plant and equipment 3,605 71,658 Goodwill N/A 25,407 N/A 30,747 Trade names - indefinite lives N/A 3,168 N/A 1,050 Other intangible assets 10 14,965 13 21,010 Other long-term assets 1,647 2,316 Total Assets Acquired $ 66,300 $ 136,385 Liabilities assumed ( 12,287 ) ( 7,159 ) Net Assets Acquired $ 54,013 (1) $ 129,226 (2) (1) Figure includes cash acquired of $ 6.5 million. (2) Figure includes cash acquired of $ 1.8 million. |
Property, Plant and Equipment | Property, Plant & Equipment May 31, 2023 2022 (In thousands) Land $ 92,954 $ 88,137 Buildings and leasehold improvements 552,775 519,391 Machinery and equipment 1,687,187 1,525,387 Total property, plant and equipment, at cost 2,332,916 2,132,915 Less: allowance for depreciation and amortization 1,093,440 1,028,932 Property, plant and equipment, net $ 1,239,476 $ 1,103,983 |
Useful Lives | Depreciation is computed primarily using the straight-line method over the following ranges of useful lives: Buildings and leasehold improvements 1 to 50 years Machinery and equipment 1 to 36 years |
Major Classes of Inventories | Inventories were composed of the following major classes: May 31, 2023 2022 (In thousands) Raw materials and supplies $ 451,504 $ 560,886 Finished goods 683,992 651,732 Total Inventory $ 1,135,496 $ 1,212,618 |
Investment (Income) Expense, Net | Investment (income) expense, net, consists of the following components: Year Ended May 31, 2023 2022 2021 (In thousands) Interest (income) $ ( 9,250 ) $ ( 4,435 ) $ ( 3,555 ) Net loss (gain) on marketable securities 2,086 17,706 ( 38,774 ) Dividend (income) ( 2,584 ) ( 5,676 ) ( 2,121 ) Investment (income) expense, net $ ( 9,748 ) $ 7,595 $ ( 44,450 ) |
Net Loss (Gain) on Marketable Securities | Net Loss (Gain) on Marketable Securities Year Ended May 31, 2023 2022 2021 (In thousands) Unrealized losses (gains) on marketable equity securities $ 2,667 $ 19,164 $ ( 16,133 ) Realized (gains) on marketable equity securities ( 551 ) ( 1,488 ) ( 22,680 ) Realized (gains) losses on available-for-sale debt securities ( 30 ) 30 39 Net loss (gain) on marketable securities $ 2,086 $ 17,706 $ ( 38,774 ) |
Other Expense (Income), Net | Other expense (income), net, consists of the following components: Year Ended May 31, 2023 2022 2021 (In thousands) Pension non-service costs (credits) $ 10,381 $ ( 10,581 ) $ 14,542 Other ( 604 ) ( 1,265 ) ( 903 ) Other expense (income), net $ 9,777 $ ( 11,846 ) $ 13,639 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
May 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Summary of Charges Recorded in Connection with Restructuring by Reportable Segment | Following is a summary of the charges recorded in connection with MAP 2025 by reportable segment as well as the total expected costs related to projects identified to date: Year Ended Cumulative Total (In thousands) May 31, 2023 to Date Costs CPG Segment: Severance and benefit costs $ 6,092 $ 6,092 $ 8,494 Facility closure and other related costs - - 321 Total Charges $ 6,092 $ 6,092 $ 8,815 PCG Segment: Severance and benefit costs $ 1,148 $ 1,148 $ 3,155 Facility closure and other related costs - - 1,000 Other asset write-offs (1) 2,537 2,537 2,537 Total Charges $ 3,685 $ 3,685 $ 6,692 Consumer Segment: Severance and benefit costs $ 507 $ 507 $ 507 Facility closure and other related costs 621 621 621 Total Charges $ 1,128 $ 1,128 $ 1,128 SPG Segment: Severance and benefit costs $ 805 $ 805 $ 1,751 Facility closure and other related costs - - 4,359 Total Charges $ 805 $ 805 $ 6,110 Corporate/Other Segment: Severance and benefit (credits) $ ( 50 ) $ ( 50 ) $ ( 50 ) Total Charges $ ( 50 ) $ ( 50 ) $ ( 50 ) Consolidated: Severance and benefit costs $ 8,502 $ 8,502 $ 13,857 Facility closure and other related costs 621 621 6,301 Other asset write-offs 2,537 2,537 2,537 Total Charges $ 11,660 $ 11,660 $ 22,695 (1) Other restructuring costs are associated with the impairment of an indefinite-lived tradename as described below in Note C, "Goodwill and Other Intangible Assets," of the Consolidated Financial Statements . |
Summary of Activity in Restructuring Reserves | A summary of the activity in the restructuring reserves related to MAP 2025 is as follows: (In thousands) Severance and Facility Other Asset Total Balance at June 1, 2022 $ - $ - $ - $ - Additions charged to expense 8,502 621 2,537 11,660 Cash payments charged against reserve ( 5,486 ) ( 121 ) - ( 5,607 ) Non-cash charges and other adjustments ( 299 ) ( 500 ) ( 2,537 ) ( 3,336 ) Balance at May 31, 2023 $ 2,717 $ - $ - $ 2,717 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
May 31, 2023 | |
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, 2023 and 2022, are as follows: CPG PCG Consumer SPG (In thousands) Segment Segment Segment Segment Total Balance as of June 1, 2021 $ 443,515 $ 207,038 $ 525,230 $ 169,971 $ 1,345,754 Acquisitions 24,539 5,342 - 866 30,747 Translation adjustments & other ( 14,403 ) ( 10,565 ) ( 9,633 ) ( 4,032 ) ( 38,633 ) Balance as of May 31, 2022 453,651 201,815 515,597 166,805 1,337,868 Acquisitions 7,306 868 16,952 281 25,407 Divestitures - - - ( 15,723 ) ( 15,723 ) Impairments - ( 36,745 ) - - ( 36,745 ) Translation adjustments & other ( 10,402 ) ( 4,206 ) ( 1,322 ) ( 1,289 ) ( 17,219 ) Balance as of May 31, 2023 $ 450,555 $ 161,732 $ 531,227 $ 150,074 $ 1,293,588 |
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, 2023 Amortized intangible assets Formulae 9 to 33 $ 236,486 $ ( 190,981 ) $ 45,505 Customer-related intangibles 5 to 33 506,618 ( 275,369 ) 231,249 Trademarks/names 5 to 40 35,374 ( 23,792 ) 11,582 Other 3 to 30 32,583 ( 27,329 ) 5,254 Total Amortized Intangibles 811,061 ( 517,471 ) 293,590 Indefinite-lived intangible assets Trademarks/names 261,401 - 261,401 Total Other Intangible Assets $ 1,072,462 $ ( 517,471 ) $ 554,991 As of May 31, 2022 Amortized intangible assets Formulae 9 to 33 $ 234,366 $ ( 181,983 ) $ 52,383 Customer-related intangibles 5 to 33 508,143 ( 257,219 ) 250,924 Trademarks/names 5 to 40 35,957 ( 21,588 ) 14,369 Other 3 to 30 33,331 ( 26,831 ) 6,500 Total Amortized Intangibles 811,797 ( 487,621 ) 324,176 Indefinite-lived intangible assets Trademarks/names 268,085 - 268,085 Total Other Intangible Assets $ 1,079,882 $ ( 487,621 ) $ 592,261 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
May 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Available-for-Sale Debt Securities by Asset Type | The following tables summarize available-for-sale debt securities held at May 31, 2023 and 2022 by asset type: Available-For-Sale Debt Securities (In thousands) Amortized Gross Gross Fair Value May 31, 2023 Fixed maturity: U.S. treasury and other government $ 28,841 $ 23 $ ( 1,843 ) $ 27,021 Corporate bonds 147 6 ( 12 ) 141 Total available-for-sale debt securities $ 28,988 $ 29 $ ( 1,855 ) $ 27,162 Available-For-Sale Debt Securities (In thousands) Amortized Gross Gross Fair Value May 31, 2022 Fixed maturity: U.S. treasury and other government $ 26,522 $ 55 $ ( 1,338 ) $ 25,239 Corporate bonds 147 12 ( 4 ) 155 Total available-for-sale debt securities $ 26,669 $ 67 $ ( 1,342 ) $ 25,394 |
Summary of Available-for-Sale Debt 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 debt securities we held at May 31, 2023 and 2022 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, 2023 May 31, 2022 (In thousands) Fair Value Gross Fair Value Gross Total investments with unrealized losses $ 24,245 $ ( 1,855 ) $ 22,702 $ ( 1,342 ) Unrealized losses with a loss position for less than 12 months 6,285 ( 72 ) 16,273 ( 543 ) Unrealized losses with a loss position for more than 12 months 17,960 ( 1,783 ) 6,429 ( 799 ) |
Net Carrying Values of Debt Securities by Contractual Maturity | The net carrying values of available-for-sale debt securities at May 31, 2023, 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 $ 5,308 $ 5,143 One year through five years 19,172 18,334 Six years through ten years 2,023 1,742 After ten years 2,485 1,943 $ 28,988 $ 27,162 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
May 31, 2023 | |
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 addition, with respect to our derivative assets and liabilities measured at fair value, refer to Note F, "Derivatives and Hedging," to the Consolidated Financial Statements for discussion of their classification within the fair value hierarchy. (In thousands) Quoted Prices Significant Significant Fair Value at Available-for-sale debt securities: U.S. Treasury and other government $ - $ 27,021 $ - $ 27,021 Corporate bonds - 141 - 141 Total available-for-sale debt securities - 27,162 - 27,162 Marketable equity securities: Stocks-foreign 786 - - 786 Stocks-domestic 5,009 - - 5,009 Mutual funds - foreign - 40,074 - 40,074 Mutual funds - domestic - 75,284 - 75,284 Total marketable equity securities 5,795 115,358 - 121,153 Contingent consideration - - ( 2,686 ) ( 2,686 ) Total $ 5,795 $ 142,520 $ ( 2,686 ) $ 145,629 (In thousands) Quoted Prices Significant Significant Fair Value at Available-for-sale debt securities: U.S. Treasury and other government $ - $ 25,239 $ - $ 25,239 Corporate bonds - 155 - 155 Total available-for-sale debt securities - 25,394 - 25,394 Marketable equity securities: Stocks-foreign 598 - - 598 Stocks-domestic 5,085 - - 5,085 Mutual funds - foreign - 39,139 - 39,139 Mutual funds - domestic - 74,227 - 74,227 Total marketable equity securities 5,683 113,366 - 119,049 Contingent consideration - - ( 10,529 ) ( 10,529 ) Total $ 5,683 $ 138,760 $ ( 10,529 ) $ 133,914 |
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, 2023 and 2022 are as follows: At May 31, 2023 (In thousands) Carrying Value Fair Value Cash and cash equivalents $ 215,787 $ 215,787 Long-term debt, including current portion 2,683,809 2,490,863 At May 31, 2022 (In thousands) Carrying Value Fair Value Cash and cash equivalents $ 201,672 $ 201,672 Long-term debt, including current portion 2,686,609 2,618,978 |
Derivatives and Hedging (Tables
Derivatives and Hedging (Tables) | 12 Months Ended |
May 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivatives Instruments for Gains or Losses Initially Recognized in AOCI in Consolidated Balance Sheet | Pretax gain/(loss) recognized Pretax gain/(loss) reclassified (In thousands) Year Ended May 31, Year Ended May 31, Derivatives in hedging 2023 2022 2021 Income Statement Location 2023 2022 2021 Interest Rate Swap $ - $ 4,508 $ ( 1,226 ) Interest (Expense) Income $ - $ ( 3,272 ) $ ( 3,380 ) Cross Currency Swap - 15,494 ( 9,207 ) Interest Income 1,766 611 638 Cross Currency Swap - - - Foreign Exchange (Loss) - 14,758 ( 9,874 ) Cross Currency Swap - 40,471 ( 31,380 ) Gain or (loss) on sale of subsidiary - - - Total $ - $ 60,473 $ ( 41,813 ) $ 1,766 $ 12,097 $ ( 12,616 ) |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
May 31, 2023 | |
Debt Disclosure [Abstract] | |
Description of Long-Term Debt | A description of long-term debt follows: May 31, 2023 2022 (In thousands) Revolving credit facility with a syndicate of banks, through August 1, 2027 (1) $ 610,947 $ 442,249 Accounts receivable securitization program with two banks, through May 21, 2024 (2) 174,885 - Unsecured 3.45 % senior notes due November 15, 2022 (3) - 300,119 Unsecured term loan due August 1, 2025 (4) 249,772 299,798 Unsecured 3.75 % notes due March 15, 2027 (5) 398,292 397,842 Unsecured 4.55 % senior notes due March 1, 2029 (6) 347,686 347,295 Unsecured 2.95 % notes due January 15, 2032 (7) 296,815 296,455 Unsecured 5.25 % notes due June 1, 2045 (8) 298,913 298,836 Unsecured 4.25 % notes due January 15, 2048 (9) 296,962 296,836 Other obligations, including finance leases and unsecured notes payable at various rates 2028 9,537 7,179 2,683,809 2,686,609 Less: current portion 178,588 603,454 Total Long-Term Debt, Less Current Maturities $ 2,505,221 $ 2,083,155 (1) Interest as of May 31, 2023 was 6.2600 % for the USD denominated swingline account, which is tied to SOFR; 6.3600 % for the USD denominated revolver, which is tied to SOFR; 4.2926 % on EUR denominated debt which is tied to ESTR; 5.5607 % on GBP denominated debt, which is tied to the Sterling Overnight Index Average; and 4.9200 % on AUD denominated debt, which is tied to the Reserve Bank of Australia rate. The debt balances outstanding, excluding deferred financing fees, as of May 31, 2023 for the USD denominated swingline, USD denominated revolver, EUR denominated revolver, GBP denominated debt, and AUD denominated debt were as follows: $ 8.2 million, $ 30.0 million, $ 527.6 million, $ 46.7 million, and $ 1.2 million. Interest as of May 31, 2022 was tied to LIBOR and was 2.3699 % for the USD denominated swingline account, 2.3096 % for the USD denominated revolver and 1.25 % on EUR denominated debt. The debt balances outstanding excluding deferred financing fees as of May 31, 2022, for the USD denominated swingline, USD denominated revolver, and EUR denominated revolver were as follows: $ 37.7 million, $ 60.0 million, and $ 346.1 million. As of May 31, 2023 and 2022, the revolving credit facility is adjusted for debt issuance costs, net of amortization, for approximately $ 2.8 million and $ 1.5 million, respectively. (2) As of May 31, 2023, the accounts receivable securitization program is adjusted for debt issuance costs, net of amortization, of approximately $ 0.1 million. (3) On November 15, 2022, we repaid the $ 300.0 million aggregate principal amount outstanding on our 3.45 % Notes due 2022. (4) Interest as of May 31, 2023 was 6.2000 %, which is variable and tied to SOFR. As of May 31, 2023 and 2022, the term loan is adjusted for deferred financing fees, net of amortization, of approximately $ 0.2 million. (5) The $ 400.0 million face amount of the notes due 2027 is adjusted for the amortization of the original issue discount, which approximated $ 0.2 million and $ 0.3 million at May 31, 2023 and 2022, 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, 2023 and 2022, the notes are adjusted for debt issuance costs, net of amortization, for approximately $ 1.5 million and $ 1.9 million, respectively. (6) The $ 350.0 million aggregate principal amount of the notes due 2029 is adjusted for the amortization of the original issue discount, which approximated $ 0.3 million and $ 0.4 million at May 31, 2023 and 2022, 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, was 4.568 %. At May 31, 2023 and 2022, the notes are adjusted for debt issuance costs, net of amortization, for approximately $ 2.0 million and $ 2.3 million, respectively. (7) The $ 300.0 million face amount of the notes due 2032 is adjusted for the amortization of the original issue discount, which approximated $ 0.6 million at May 31, 2023 and 2022. 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 2.976 %. At May 31, 2023 and 2022, the notes are adjusted for debt issuance costs, net of amortization, for approximately $ 2.6 million and $ 2.9 million, respectively. (8) The $ 250.0 million face amount of the notes due 2045 is adjusted for the amortization of the original issue discount, which approximated $ 1.3 million at May 31, 2023 and 2022. 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 $ 2.7 million and $ 2.8 million at May 31, 2023 and 2022, respectively. 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, 2023 and 2022, the notes are adjusted for debt issuance costs, net of amortization, for approximately $ 2.5 million and $ 2.6 million, respectively. (9) The $ 300.0 million face amount of the notes due 2048 is adjusted for the debt issuance cost, net of amortization, which approximated $ 3.0 million and $ 3.2 million at May 31, 2023 and 2022, respectively. The effective interest rate on the notes is 4.25 %. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
May 31, 2023 | |
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, 2023 2022 2021 (In thousands) United States $ 557,401 $ 342,834 $ 462,468 Foreign 91,981 263,965 205,970 Income Before Income Taxes $ 649,382 $ 606,799 $ 668,438 |
Provision (Benefit) for Income Tax | Provision (benefit) for income taxes consists of the following for the periods indicated: Year Ended May 31, 2023 2022 2021 (In thousands) Current: U.S. federal $ 91,749 $ 60,818 $ 60,666 State and local 25,972 19,495 18,959 Foreign 45,694 59,087 65,125 Total Current 163,415 139,400 144,750 Deferred: U.S. federal 16,969 ( 24,025 ) 20,027 State and local 4,359 2,489 3,878 Foreign ( 15,092 ) ( 3,531 ) ( 3,717 ) Total Deferred 6,236 ( 25,067 ) 20,188 Provision for Income Taxes $ 169,651 $ 114,333 $ 164,938 |
Significant Components of Deferred Income Tax Assets and Liabilities | The significant components of deferred income tax assets and liabilities as of May 31, 2023 and 2022 were as follows: 2023 2022 (In thousands) Deferred income tax assets related to: Inventories $ 18,811 $ 15,967 Accrued compensation and benefits 18,331 22,224 Accrued other expenses 21,037 21,782 Deferred income and other long-term liabilities 30,239 25,389 Credit and net operating and capital loss carryforwards 75,366 63,368 Net unrealized loss on securities 3,373 9,386 Research and development 17,360 - Pension and other postretirement benefits 11,813 15,699 Total Deferred Income Tax Assets 196,330 173,815 Less: valuation allowances ( 30,033 ) ( 30,509 ) Net Deferred Income Tax Assets 166,297 143,306 Deferred income tax (liabilities) related to: Depreciation ( 123,421 ) ( 91,227 ) Amortization of intangibles ( 116,763 ) ( 112,349 ) Unremitted foreign earnings ( 990 ) ( 3,002 ) Total Deferred Income Tax (Liabilities) ( 241,174 ) ( 206,578 ) Deferred Income Tax Assets (Liabilities), Net $ ( 74,877 ) $ ( 63,272 ) A |
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, 2023 2022 2021 (In thousands, except percentages) Income tax expense at the U.S. statutory federal income tax rate $ 136,370 $ 127,428 $ 140,372 Foreign rate differential and other foreign tax adjustments 1,535 6,278 11,942 State and local income taxes, net 22,017 20,393 18,625 Impact of GILTI provisions 4,217 1,709 1,598 Nondeductible business expense 1,257 532 616 Valuation allowance 1,199 ( 32,720 ) ( 4,389 ) Deferred tax liability for unremitted foreign earnings - ( 10,686 ) 5,348 Changes in unrecognized tax benefits ( 3,334 ) ( 1,682 ) ( 1,847 ) Equity-based compensation ( 3,482 ) ( 1,776 ) ( 8,651 ) Nondeductible goodwill impairment 7,264 - - Other 2,608 4,857 1,324 Provision for Income Tax Expense $ 169,651 $ 114,333 $ 164,938 Effective Income Tax Rate 26.1 % 18.8 % 24.7 % |
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) 2023 2022 2021 Balance at June 1 $ 5.7 $ 7.5 $ 9.0 Additions for tax positions of prior years 0.1 - - Reductions for tax positions of prior years ( 2.8 ) ( 1.7 ) ( 1.8 ) Foreign currency translation ( 0.1 ) ( 0.1 ) 0.3 Balance at May 31 $ 2.9 $ 5.7 $ 7.5 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
May 31, 2023 | |
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, 2023 2022 2021 (In thousands) Stock-based compensation expense, included in SG&A $ 28,723 $ 40,114 $ 40,926 Stock-based compensation expense, included in restructuring expense ( 50 ) 630 47 Total stock-based compensation cost 28,673 40,744 40,973 Income tax (benefit) ( 4,234 ) ( 5,621 ) ( 6,877 ) Total stock-based compensation cost, net of tax $ 24,439 $ 35,123 $ 34,096 |
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, 2023 2022 2021 Risk-free interest rate 3.0 % 0.9 % 0.4 % Expected life of option 6.0 yrs 6.0 yrs 6.5 yrs Expected dividend yield 2.0 % 1.8 % 1.8 % Expected volatility rate 23.6 % 24.1 % 24.0 % |
Summary of Option and Share-Based Payment Activity | The following tables summarize option and share-based payment activity (including SARs) under these plans during the fiscal year ended May 31, 2023: 2023 Share-Based Payments Weighted Number of (Shares in thousands) Balance at June 1, 2022 $ 63.16 2,300 Options granted 81.01 360 Options exercised 49.52 ( 372 ) Balance at May 31, 2023 68.19 2,288 Exercisable at May 31, 2023 $ 61.09 1,448 SARs 2023 2022 2021 (In thousands, except per share amounts) Weighted-average grant-date fair value per SAR $ 18.09 $ 16.72 $ 14.38 Fair value of SARS vested 14.19 13.49 12.59 Intrinsic value of options exercised 11.26 13.77 8.80 Tax benefit from options exercised $ 3,292 $ 88 $ 8,821 |
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 and 2014 Omnibus Plan related to directors during fiscal 2023: Weighted-Average Grant-Date Fair Value 2023 (Shares in thousands) Balance at June 1, 2022 $ 77.95 56 Shares granted to directors 92.87 21 Shares vested 69.70 ( 25 ) Balance at May 31, 2023 $ 87.75 52 |
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, 2023: Weighted-Average Grant-Date Fair Value 2023 (Shares in thousands) Balance at June 1, 2022 $ 40.08 386 Shares granted 81.01 24 Shares forfeited 72.12 ( 7 ) Shares exercised 64.03 ( 13 ) Balance at May 31, 2023 $ 41.37 390 |
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, 2023: Weighted-Average Grant-Date Fair Value 2023 (Shares in thousands) Balance at June 1, 2022 $ 77.71 1,110 Shares granted 81.03 223 Shares forfeited 75.03 ( 68 ) Shares vested 66.50 ( 359 ) Balance at May 31, 2023 $ 83.17 906 |
Performance Stock Units | |
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, 2023: Performance Stock Units ("PSUs") Shares Granted Weighted-Average Grant Date Fair Value Shares Outstanding as of May 31, 2023 Unamortized Expense, as of May 31, 2023 (In thousands, except per share amounts) 2020 PSUs (1) 226 $ 78.49 181 $ — 2021 PSU's (2) 158 86.93 137 4,188 2022 PSU's (3) 162 81.01 156 5,427 (1) The "2020 PSUs" were granted on July 22, 2020. The expense has been fully recognized, in line with the final results achieved for the three-year performance plan. (2) The "2021 PSUs were granted on July 21, 2021. The unamortized expense is expected to be recognized over a weighted average period of 1.0 years. (3) The "2022 PSUs were granted on July 18, 2022. The unamortized expense is expected to be recognized over a weighted average period of 2.0 years. |
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, 2023: Weighted-Average Grant-Date Fair Number of Value Shares (Shares in thousands) Balance at June 1, 2022 $ 76.38 1,296 Granted 81.95 268 Vested 66.19 ( 432 ) Forfeited 79.90 ( 54 ) Balance at May 31, 2023 $ 81.66 1,078 |
Vested Shares | |
Summary of Share-Based Performance Earned Restricted Stock Activity and Restricted Stock Units | The following table summarizes the grant date and vested values of restricted shares during the last three fiscal years: Year Ended May 31, Weighted-Average Grant Date Fair Value Fair Value of Restricted Shares Vested Shares of Restricted Stock Vested Intrinsic Value of Restricted Shares Vested (In thousands, except per share amounts) 2021 $ 80.77 $ 12,505 250 $ 20,670 2022 86.68 27,163 441 33,032 2023 81.95 28,553 432 33,186 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
May 31, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive income (loss) consists of the following components: Pension And Other Foreign Postretirement Unrealized Unrealized Currency Benefit Gain Gain (Loss) Translation Liability (Loss) On On (In thousands) Adjustments Adjustments (1) Derivatives (2) Securities Total Balance at May 31, 2020 $ ( 440,732 ) $ ( 277,717 ) $ ( 71 ) $ 1,023 $ ( 717,497 ) Current period comprehensive income (loss) 148,360 80,949 ( 43,703 ) ( 1,052 ) 184,554 Income taxes associated with current period comprehensive (loss) income ( 7,993 ) ( 19,395 ) 10,281 ( 89 ) ( 17,196 ) Amounts reclassified from accumulated other comprehensive income (loss) - 33,035 12,616 268 45,919 Income taxes reclassified into earnings - ( 7,482 ) ( 3,105 ) ( 77 ) ( 10,664 ) Balance at May 31, 2021 ( 300,365 ) ( 190,610 ) ( 23,982 ) 73 ( 514,884 ) Current period comprehensive (loss) income ( 98,834 ) 31,802 60,669 ( 1,785 ) ( 8,148 ) Income taxes associated with current period comprehensive income (loss) 3,726 ( 7,763 ) ( 14,491 ) 3 ( 18,525 ) Amounts reclassified from accumulated other comprehensive income (loss) - 17,276 ( 12,097 ) 59 5,238 Income taxes reclassified into earnings - ( 4,088 ) 3,072 ( 2 ) ( 1,018 ) Balance at May 31, 2022 ( 395,473 ) ( 153,383 ) 13,171 ( 1,652 ) ( 537,337 ) Current period comprehensive (loss) income ( 71,772 ) ( 12,242 ) - ( 482 ) ( 84,496 ) Income taxes associated with current period comprehensive income (loss) 1,870 2,785 - 4 4,659 Amounts reclassified from accumulated other comprehensive income (loss) - 18,363 ( 1,766 ) ( 67 ) 16,530 Income taxes reclassified into earnings - ( 4,287 ) - ( 4 ) ( 4,291 ) Balance at May 31, 2023 $ ( 465,375 ) $ ( 148,764 ) $ 11,405 $ ( 2,201 ) $ ( 604,935 ) (1) For additional information, see Note N, "Pension Plans," and Note O, "Postretirement Benefits," to the Consolidated Financial Statements for details. Amounts reclassified from accumulated other comprehensive income (loss) are included in pension non-service costs (credits) as a component of "Other Expense (Income), Net" on the Consolidated Statements of Income. (2) For additional information, see Note F, "Derivatives and Hedging," to the Consolidated Financial Statements for details. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
May 31, 2023 | |
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, 2023, 2022 and 2021: Year Ended May 31, 2023 2022 2021 (In thousands, except per share amounts) Numerator for earnings per share: Net income attributable to RPM International Inc. stockholders $ 478,691 $ 491,481 $ 502,643 Less: Allocation of earnings and dividends to participating securities ( 2,156 ) ( 3,924 ) ( 4,018 ) Net income available to common shareholders - basic 476,535 487,557 498,625 Reverse: Allocation of earnings and dividends to participating securities 2,156 3,924 - Add: Undistributed earnings reallocated to unvested shareholders - - 13 Net income available to common shareholders - diluted $ 478,691 $ 491,481 $ 498,638 Denominator for basic and diluted earnings per share: Basic weighted average common shares 127,507 127,948 128,334 Average diluted options and awards 1,309 1,632 593 Total shares for diluted earnings per share (1) 128,816 129,580 128,927 Earnings Per Share of Common Stock Attributable to RPM International Inc. Stockholders: Basic Earnings Per Share of Common Stock $ 3.74 $ 3.81 $ 3.89 Method used to calculate basic earnings per share Two-Class Two-Class Two-Class Diluted Earnings Per Share of Common Stock $ 3.72 $ 3.79 $ 3.87 Method used to calculate diluted earnings per share Treasury Treasury Two-Class (1) For the years ended May 31, 2023, 2022 and 2021, approximately 750,000 , 655,000 and 362,016 shares of stock, respectively, granted under stock-based compensation plans were excluded from the calculation of d iluted EPS, as the effect would have been anti-dilutive. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
May 31, 2023 | |
Leases [Abstract] | |
Summary of Lease Costs | The following represents our lease costs as of May 31, 2023 and 2022: May 31, 2023 2022 2021 (In thousands) Operating lease expense $ 78,783 $ 78,479 $ 76,581 Variable lease expense 13,550 10,795 9,292 Short-term lease expense 1,960 2,132 2,022 |
Summary of Supplemental Cash Flow, Balance Sheet, and Other Required Disclosures | The following represents our supplemental cash flow, balance sheet, and other required disclosures as of May 31, 2023 and 2022: May 31, 2023 2022 (In thousands) Operating cash outflows from operating leases $ 74,251 $ 73,566 Leased assets obtained in exchange for operating lease obligations 90,399 79,150 Current portion of operating leases within other accrued liabilities $ 59,590 $ 58,292 Weighted average remaining lease term for operating leases (in years) 8.5 8.5 Weighted average discount rate for operating leases 3.9 % 3.3 % |
Schedule of Future Undiscounted Cash Flows and Reconciliation to Lease Liabilities | The following represents our future undiscounted cash flows for each of the next five years and thereafter and reconciliation to the lease liabilities, as of May 31, 2023: (In thousands) Year ending May 31, Operating Leases 2024 $ 71,801 2025 61,178 2026 51,608 2027 44,451 2028 36,540 Thereafter 148,773 Total lease payments $ 414,351 Less imputed interest 69,237 Total present value of lease liabilities $ 345,114 |
Pension Plans (Tables)
Pension Plans (Tables) - Pension Benefits | 12 Months Ended |
May 31, 2023 | |
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) 2023 2022 2021 2023 2022 2021 Service cost $ 43,558 $ 47,655 $ 44,520 $ 3,633 $ 5,023 $ 6,355 Interest cost 28,692 15,366 15,223 6,619 4,948 5,308 Expected return on plan assets ( 38,144 ) ( 41,544 ) ( 33,115 ) ( 6,581 ) ( 7,691 ) ( 7,286 ) Amortization of: Prior service cost (credit) 1 5 8 ( 116 ) ( 139 ) ( 150 ) Net actuarial losses recognized 17,948 16,900 30,005 473 465 2,377 Curtailment/settlement (gains) losses ( 3 ) 16 - 188 7 356 Net Pension Cost $ 52,052 $ 38,398 $ 56,641 $ 4,216 $ 2,613 $ 6,960 |
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, 2023 and 2022, were as follows: U.S. Plans Non-U.S. Plans (In thousands) 2023 2022 2023 2022 Benefit obligation at beginning of year $ 703,735 $ 822,073 $ 182,534 $ 232,028 Service cost 43,558 47,655 3,633 5,023 Interest cost 28,692 15,366 6,619 4,948 Benefits paid ( 44,604 ) ( 59,795 ) ( 8,676 ) ( 7,657 ) Participant contributions - - 1,221 1,138 Plan amendments 4 - ( 97 ) 293 Plan settlements/curtailments ( 137 ) ( 190 ) ( 2,852 ) ( 1,330 ) Actuarial (gains) ( 34,075 ) ( 121,374 ) ( 16,004 ) ( 34,638 ) Premiums paid - - ( 108 ) ( 107 ) Currency exchange rate changes - - ( 7,458 ) ( 17,164 ) Benefit Obligation at End of Year $ 697,173 $ 703,735 $ 158,812 $ 182,534 Fair value of plan assets at beginning of year $ 616,960 $ 672,377 $ 193,375 $ 239,853 Actual (loss) on plan assets ( 4,294 ) ( 61,036 ) ( 15,239 ) ( 25,430 ) Employer contributions 63,561 65,604 6,647 4,626 Participant contributions - - 1,221 1,138 Benefits paid ( 44,604 ) ( 59,795 ) ( 8,676 ) ( 7,657 ) Premiums paid - - ( 108 ) ( 107 ) Plan settlements/curtailments ( 137 ) ( 190 ) ( 2,852 ) ( 1,330 ) Currency exchange rate changes - - ( 8,248 ) ( 17,718 ) Fair Value of Plan Assets at End of Year $ 631,486 $ 616,960 $ 166,120 $ 193,375 (Deficit)/Surplus of plan assets versus benefit obligations at end of year $ ( 65,687 ) $ ( 86,775 ) $ 7,308 $ 10,841 Net Amount Recognized $ ( 65,687 ) $ ( 86,775 ) $ 7,308 $ 10,841 Accumulated Benefit Obligation $ 598,094 $ 610,433 $ 148,635 $ 172,141 |
Amounts Recognized in Consolidated Balance Sheet | Amounts recognized in the Consolidated Balance Sheets for the years ended May 31, 2023 and 2022 are as follows: U.S. Plans Non-U.S. Plans (In thousands) 2023 2022 2023 2022 Noncurrent assets $ 279 $ 77 $ 15,641 $ 22,399 Current liabilities ( 8 ) ( 8 ) ( 659 ) ( 443 ) Noncurrent liabilities ( 65,958 ) ( 86,844 ) ( 7,674 ) ( 11,115 ) Net Amount Recognized $ ( 65,687 ) $ ( 86,775 ) $ 7,308 $ 10,841 |
Relationship between Plans Benefit Obligations and Assets | The following table summarizes the relationship between our plans' benefit obligations and assets: U.S. Plans 2023 2022 (In thousands) Benefit Plan Assets Benefit Plan Assets Plans with projected benefit obligations in excess of plan assets $ 696,280 $ 630,315 $ 702,511 $ 615,659 Plans with accumulated benefit obligations in excess of plan assets 44 - 10,542 10,024 Plans with assets in excess of projected benefit obligations 893 1,171 1,224 1,301 Plans with assets in excess of accumulated benefit obligations 598,050 631,486 599,891 606,936 Non-U.S. Plans 2023 2022 (In thousands) Benefit Plan Assets Benefit Plan Assets Plans with projected benefit obligations in excess of plan assets $ 26,918 $ 18,585 $ 36,607 $ 25,049 Plans with accumulated benefit obligations in excess of plan assets 24,837 17,839 32,808 22,844 Plans with assets in excess of projected benefit obligations 131,894 147,535 145,927 168,326 Plans with assets in excess of accumulated benefit obligations 123,798 148,281 139,333 170,531 |
Pretax Net Actuarial (Loss) Gain and Prior Service (Cost) Credits Recognized in Accumulated Other Comprehensive Income (Loss) not Affecting Retained Earnings | The following table presents the pretax net actuarial loss and prior service (cost) credits recognized in accumulated other comprehensive income (loss) not affecting retained earnings: U.S. Plans Non-U.S. Plans (In thousands) 2023 2022 2023 2022 Net actuarial loss $ ( 205,025 ) $ ( 214,607 ) $ ( 29,764 ) $ ( 25,984 ) Prior service (costs) credits ( 10 ) ( 7 ) 530 518 Total recognized in accumulated other comprehensive $ ( 205,035 ) $ ( 214,614 ) $ ( 29,234 ) $ ( 25,466 ) |
Changes Recognized in Other Comprehensive loss (Income) | The following table includes the changes recognized in other comprehensive income: U.S. Plans Non-U.S. Plans (In thousands) 2023 2022 2023 2022 Changes in plan assets and benefit obligations recognized in other Prior service cost (credit) $ 4 $ - $ ( 98 ) $ 294 Net loss (gain) arising during the year 8,363 ( 18,794 ) 5,816 ( 1,517 ) Effect of exchange rates on amounts included in AOCI - - ( 1,405 ) ( 1,999 ) Amounts recognized as a component of net periodic benefit cost: Amortization or curtailment recognition of prior service (cost) benefit ( 1 ) ( 5 ) 115 139 Amortization or settlement recognition of net (loss) ( 17,945 ) ( 16,916 ) ( 660 ) ( 473 ) Total recognized in other comprehensive (income) loss $ ( 9,579 ) $ ( 35,715 ) $ 3,768 $ ( 3,556 ) |
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 2023 2022 2023 2022 Discount rate 5.26 % 4.43 % 4.88 % 4.02 % Rate of compensation increase 3.39 % 3.21 % 2.97 % 2.94 % U.S. Plans Non-U.S. Plans Net Periodic Pension Cost 2023 2022 2021 2023 2022 2021 Discount rate 4.43 % 2.76 % 2.78 % 4.02 % 2.72 % 2.49 % Expected return on plan assets 6.50 % 6.50 % 7.00 % 3.58 % 3.46 % 3.30 % Rate of compensation increase 3.21 % 3.19 % 3.19 % 2.94 % 2.91 % 2.86 % |
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, 2023 2023 2022 Equity securities 55 % $ 340.1 $ 326.2 Fixed income securities 20 % 129.2 117.0 Multi-class 20 % 125.3 136.6 Cash 5 % 36.6 37.0 Other 0.3 0.2 Total assets 100 % $ 631.5 $ 617.0 Non-U.S. Plans Target Allocation Actual Asset Allocation (Dollars in millions) as of May 31, 2023 2023 2022 Equity securities 40 % $ 61.8 $ 69.2 Fixed income securities 48 % 81.5 101.1 Cash 0.1 0.1 Property and other 12 % 22.7 23.0 Total assets 100 % $ 166.1 $ 193.4 |
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, 2023 and 2022: U.S. Plans (In thousands) Quoted Prices Significant Significant Fair Value at U.S. Treasury and other government $ - $ 49,297 $ - $ 49,297 State and municipal bonds - 450 - 450 Foreign bonds - 690 - 690 Mortgage-backed securities - 8,515 - 8,515 Corporate bonds - 17,376 - 17,376 Stocks - large cap 35,467 - - 35,467 Mutual funds - equity - 304,590 - 304,590 Mutual funds - multi-class - 125,345 - 125,345 Mutual funds - fixed - 2,553 - 2,553 Cash and cash equivalents 36,573 - - 36,573 Limited partnerships - - 170 170 Futures contracts - - 112 112 Investments measured at NAV (1) 50,348 Total $ 72,040 $ 508,816 $ 282 $ 631,486 (1) In accordance with Subtopic 820-10, Fair Value Measurements and Disclosures, certain investments that are measured at fair value using the net asset value ("NAV") per share practical expedient have not been classified in the fair value hierarchy. The investments that are measured at fair value using NAV per share included in the table above are intended to permit reconciliation of the fair value hierarchy to the fair value of the plan assets at the end of each period. Non-U.S. Plans (In thousands) Quoted Prices Significant Significant Fair Value at Pooled equities $ - $ 61,827 $ - $ 61,827 Pooled fixed income - 80,650 - 80,650 Foreign bonds - 774 - 774 Insurance contracts - - 19,136 19,136 Mutual funds - Real Estate - 3,587 - 3,587 Cash and cash equivalents 146 - - 146 Total $ 146 $ 146,838 $ 19,136 $ 166,120 U.S. Plans (In thousands) Quoted Prices Significant Significant Fair Value at U.S. Treasury and other government $ - $ 34,902 $ - $ 34,902 State and municipal bonds - 576 - 576 Foreign bonds - 1,150 - 1,150 Mortgage-backed securities - 10,254 - 10,254 Corporate bonds - 23,883 - 23,883 Stocks - large cap 30,295 - - 30,295 Mutual funds - equity - 295,905 - 295,905 Mutual funds - multi-class - 136,583 - 136,583 Mutual funds - fixed - 16,368 - 16,368 Cash and cash equivalents 37,004 - - 37,004 Limited partnerships - - 166 166 Investments measured at NAV (1) 29,874 Total $ 67,299 $ 519,621 $ 166 $ 616,960 Non-U.S. Plans (In thousands) Quoted Prices Significant Significant Fair Value at Pooled equities $ - $ 68,067 $ - $ 68,067 Pooled fixed income - 100,151 - 100,151 Foreign bonds - 920 - 920 Insurance contracts - - 23,013 23,013 Mutual funds - 1,115 - 1,115 Cash and cash equivalents 109 - - 109 Total $ 109 $ 170,253 $ 23,013 $ 193,375 |
Activity that Occurred for Level Three Assets | The following table includes the activity that occurred during the years ended May 31, 2023 and 2022 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, 2023 $ 23,179 ( 2,399 ) - ( 1,362 ) $ 19,418 Year ended May 31, 2022 28,398 ( 1,009 ) - ( 4,210 ) 23,179 (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, 2023 | |
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, 2023: U.S. Plans Non-U.S. Plans (In thousands) 2023 2022 2021 2023 2022 2021 Service cost $ - $ - $ - $ 1,951 $ 1,623 $ 1,959 Interest cost 84 41 74 1,374 1,124 1,286 Amortization of: Prior service (credit) ( 121 ) ( 161 ) ( 167 ) - - - Net actuarial losses (gains) 43 61 42 ( 51 ) 121 590 Net Postretirement Benefit Cost (Income) $ 6 $ ( 59 ) $ ( 51 ) $ 3,274 $ 2,868 $ 3,835 |
Changes in Benefit Obligations | The changes in benefit obligations of the plans at May 31, 2023 and 2022 were as follows: U.S. Plans Non-U.S. Plans (In thousands) 2023 2022 2023 2022 Accumulated postretirement benefit obligation at beginning of year $ 2,260 $ 2,506 $ 30,645 $ 39,974 Service cost - - 1,951 1,623 Interest cost 84 41 1,374 1,124 Benefit payments ( 207 ) ( 164 ) ( 557 ) ( 875 ) Actuarial (gains) ( 369 ) ( 123 ) ( 276 ) ( 9,240 ) Currency exchange rate changes - - ( 2,100 ) ( 1,961 ) Accumulated and accrued postretirement benefit obligation at end of year $ 1,768 $ 2,260 $ 31,037 $ 30,645 |
Amounts Recognized in Consolidated Balance Sheet | Amounts recognized in the Consolidated Balance Sheets for the years ended May 31, 2023 and 2022 are as follows: U.S. Plans Non-U.S. Plans (In thousands) 2023 2022 2023 2022 Current liabilities $ ( 207 ) $ ( 252 ) $ ( 989 ) $ ( 968 ) Noncurrent liabilities ( 1,561 ) ( 2,008 ) ( 30,048 ) ( 29,677 ) Net Amount Recognized $ ( 1,768 ) $ ( 2,260 ) $ ( 31,037 ) $ ( 30,645 ) |
Pretax Net Actuarial (Loss) Gain and Prior Service (Cost) Credits Recognized in Accumulated Other Comprehensive Income (Loss) not Affecting Retained Earnings | The following table presents the pretax net actuarial (loss) gain and prior service credits recognized in accumulated other comprehensive income (loss) not affecting retained earnings: U.S. Plans Non-U.S. Plans (In thousands) 2023 2022 2023 2022 Net actuarial gain (loss) $ 99 $ ( 314 ) $ 3,838 $ 3,878 Prior service credit - 121 - - Total recognized in accumulated other comprehensive income not affecting retained $ 99 $ ( 193 ) $ 3,838 $ 3,878 |
Changes Recognized in Other Comprehensive loss (Income) | The following table includes the changes recognized in other comprehensive loss (income): U.S. Plans Non-U.S. Plans (In thousands) 2023 2022 2023 2022 Changes in plan assets and benefit obligations recognized in other comprehensive loss Net (gain) arising during the year $ ( 369 ) $ ( 123 ) $ ( 276 ) $ ( 9,240 ) Effect of exchange rates on amounts included in AOCI - - 265 ( 418 ) Amounts recognized as a component of net periodic benefit cost: Amortization or curtailment recognition of prior service credit 121 160 - - Amortization or settlement recognition of net (loss) gain ( 44 ) ( 60 ) 51 ( 121 ) Total recognized in other comprehensive (income) loss $ ( 292 ) $ ( 23 ) $ 40 $ ( 9,779 ) |
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 2023 2022 2023 2022 Discount rate 5.20 % 4.36 % 5.10 % 5.13 % Current healthcare cost trend rate 6.00 % 6.23 % 5.53 % 5.58 % Ultimate healthcare cost trend rate 4.03 % 4.03 % 3.70 % 3.70 % Year ultimate healthcare cost trend rate will be realized 2045 2045 2040 2040 U.S. Plans Non-U.S. Plans Net Periodic Postretirement Cost 2023 2022 2021 2023 2022 2021 Discount rate 4.36 % 2.47 % 2.44 % 5.13 % 3.51 % 3.32 % Current healthcare cost trend rate 6.23 % 6.07 % 6.68 % 5.58 % 5.68 % 5.73 % Ultimate healthcare cost trend rate 4.03 % 4.36 % 4.36 % 3.70 % 3.70 % 3.70 % Year ultimate healthcare cost trend rate will be realized 2045 2037 2037 2040 2040 2040 |
Contingencies and Accrued Los_2
Contingencies and Accrued Losses (Tables) | 12 Months Ended |
May 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Accrued Loss Reserves | Accrued loss reserves consist of the following: May 31, 2023 2022 (In thousands) Accrued product liability and other loss reserves $ 16,995 $ 16,003 Accrued warranty reserves 8,448 7,450 Accrued environmental reserves 1,027 1,055 Total Accrued Loss Reserves - Current $ 26,470 $ 24,508 Accrued product liability and other loss reserves - noncurrent $ 22,849 $ 26,226 Accrued warranty liability - noncurrent 3,328 3,455 Accrued environmental reserves - noncurrent 6,173 6,254 Total Accrued Loss Reserves - Noncurrent $ 32,350 $ 35,935 |
Changes in Accrued Warranty Balances | The following table includes the changes in our accrued warranty balances: Year Ended May 31, 2023 2022 2021 (In thousands) Beginning Balance $ 10,905 $ 13,175 $ 11,106 Deductions (1) ( 27,851 ) ( 26,332 ) ( 25,817 ) Provision charged to expense 28,722 24,062 27,886 Ending Balance $ 11,776 $ 10,905 $ 13,175 (1) Primarily claims paid during the year. |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
May 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Trade Accounts Receivable Net of Allowances and Net Contract Assets | Trade accounts receivable, net of allowances, and net contract assets consisted of the following: Year Ended May 31, 2023 2022 $ Change % Change (In thousands, except percents) Trade accounts receivable, less allowances $ 1,503,040 $ 1,432,632 $ 70,408 4.9 % Contract assets $ 49,188 $ 57,234 $ ( 8,046 ) - 14.1 % Contract liabilities - short-term ( 42,396 ) ( 44,938 ) 2,542 - 5.7 % Net Contract Assets $ 6,792 $ 12,296 $ ( 5,504 ) - 44.8 % The $ 5.5 million decrease in our net contract assets from May 31, 2022 to May 31, 2023, resulted primarily due to the timing and volume of construction jobs in progress at May 31, 2023 versus May 31, 2022. During the years ended May 31, 2023 and May 31, 2022 we recognized $ 26.6 million and $ 24.5 million of revenue, which was included in contract liabilities as of May 31, 2022 and 2021, respectively. |
Summary of Activity for Allowance for Credit Losses | The following tables summarize the activity for the allowance for credit losses for the fiscal year ended May 31, 2023: (In thousands) Balance at June 1, 2022 $ 46,669 Bad debt provision 13,557 Uncollectible accounts written off, net of recoveries ( 9,780 ) Translation adjustments ( 964 ) Balance at May 31, 2023 $ 49,482 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
May 31, 2023 | |
Segment Reporting [Abstract] | |
Summary of Disaggregation of Revenues by Geography and Results of Reportable Segments | The following tables present a disaggregation of revenues by geography, and the results of our reportable segments consistent with our management philosophy, by representing the information we utilize, in conjunction with various strategic, operational and other financial performance criteria, in evaluating the performance of our portfolio of businesses. Year Ended May 31, 2023 2022 2021 (In thousands) Net Sales CPG $ 2,608,872 $ 2,486,486 $ 2,076,565 PCG 1,333,567 1,188,379 1,028,456 Consumer 2,514,770 2,242,047 2,295,277 SPG 799,205 790,816 705,990 Total $ 7,256,414 $ 6,707,728 $ 6,106,288 Income (Loss) Before Income Taxes CPG $ 309,683 $ 396,509 $ 291,773 PCG 133,757 139,068 90,687 Consumer 378,157 175,084 354,789 SPG 103,279 121,937 108,242 Corporate/Other ( 275,494 ) ( 225,799 ) ( 177,053 ) Total $ 649,382 $ 606,799 $ 668,438 Identifiable Assets CPG $ 2,297,862 $ 2,160,071 $ 1,815,303 PCG 1,118,360 1,115,780 1,051,334 Consumer 2,384,782 2,405,764 2,386,703 SPG 804,762 839,419 772,540 Corporate/Other 176,238 186,672 227,089 Total $ 6,782,004 $ 6,707,706 $ 6,252,969 Capital Expenditures CPG $ 110,777 $ 93,327 $ 65,830 PCG 29,454 28,887 19,413 Consumer 61,500 70,227 54,986 SPG 49,801 26,939 18,989 Corporate/Other 1,979 585 223 Total $ 253,511 $ 219,965 $ 159,441 Depreciation and Amortization CPG $ 49,993 $ 48,009 $ 45,079 PCG 23,064 22,287 22,633 Consumer 52,081 50,857 47,763 SPG 24,897 26,718 26,017 Corporate/Other 4,914 5,203 5,365 Total $ 154,949 $ 153,074 $ 146,857 |
Net Sales and Long Lived Assets by Regions | Year Ended May 31, 2023 CPG PCG Consumer SPG Consolidated (In thousands) Net Sales (based on shipping location) (1) United States $ 1,572,060 $ 861,190 $ 2,078,519 $ 680,159 $ 5,191,928 Foreign Canada 243,608 85,812 178,678 4,084 512,182 Europe 469,064 233,872 212,558 81,260 996,754 Latin America 224,073 39,395 26,315 1,720 291,503 Asia Pacific 100,067 23,234 18,700 31,982 173,983 Other Foreign - 90,064 - - 90,064 Total Foreign 1,036,812 472,377 436,251 119,046 2,064,486 Total $ 2,608,872 $ 1,333,567 $ 2,514,770 $ 799,205 $ 7,256,414 Year Ended May 31, 2022 CPG PCG Consumer SPG Consolidated (In thousands) Net Sales (based on shipping location) (1) United States $ 1,423,473 $ 739,731 $ 1,829,384 $ 647,660 $ 4,640,248 Foreign Canada 265,933 76,085 144,032 7,208 493,258 Europe 509,891 235,678 221,280 99,324 1,066,173 Latin America 203,135 29,792 29,940 1,772 264,639 Asia Pacific 83,989 23,435 17,411 34,852 159,687 Other Foreign 65 83,658 - - 83,723 Total Foreign 1,063,013 448,648 412,663 143,156 2,067,480 Total $ 2,486,486 $ 1,188,379 $ 2,242,047 $ 790,816 $ 6,707,728 Year Ended May 31, 2021 CPG PCG Consumer SPG Consolidated (In thousands) Net Sales (based on shipping location) (1) United States $ 1,135,341 $ 611,808 $ 1,832,826 $ 581,094 $ 4,161,069 Foreign Canada 208,289 69,754 153,631 8,982 440,656 Europe 481,244 242,102 257,372 82,170 1,062,888 Latin America 159,197 26,283 31,358 1,826 218,664 Asia Pacific 79,413 22,658 20,090 31,918 154,079 Other Foreign 13,081 55,851 - - 68,932 Total Foreign 941,224 416,648 462,451 124,896 1,945,219 Total $ 2,076,565 $ 1,028,456 $ 2,295,277 $ 705,990 $ 6,106,288 Year Ended May 31, 2023 2022 2021 (In thousands) Long-Lived Assets (2) United States $ 2,551,717 $ 2,533,568 $ 2,325,365 Foreign Canada 244,182 223,793 235,810 Europe 357,359 324,001 394,168 United Kingdom 245,411 259,956 290,078 Other Foreign 183,697 195,665 198,740 Total Foreign 1,030,649 1,003,415 1,118,796 Total $ 3,582,366 $ 3,536,983 $ 3,444,161 (1) It is not practicable to obtain the information needed to disclose revenues attributable to each of our product lines. (2) Long-lived assets include all non-current assets, excluding non-current deferred income taxes. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | |||
Jan. 20, 2023 USD ($) | Feb. 28, 2023 USD ($) | May 31, 2023 USD ($) Segment Entity $ / shares shares | May 31, 2022 USD ($) Segment Entity $ / shares shares | May 31, 2021 USD ($) $ / shares shares | |
Significant Of Accounting Policies [Line Items] | |||||
Percentage of controlled subsidiary's earnings | 100% | ||||
Number of business acquisition | Entity | 6 | 8 | |||
Number of reportable segments | Segment | 4 | 4 | |||
Net transactional foreign exchange losses gains | $ (8,900,000) | $ (4,300,000) | $ (2,800,000) | ||
Depreciation | 108,400,000 | 104,300,000 | 99,400,000 | ||
Bad debt expense | 13,557,000 | 4,300,000 | 10,000,000 | ||
Divestiture of businesses | $ 49,200,000 | ||||
Cash receipt upon achievement of financial milestones | 7,500,000 | ||||
Gain on divestiture | $ 24,700,000 | ||||
Impairment loss of goodwill on annual impairment test | 0 | 0 | 0 | ||
Goodwill impairments | $ 36,700,000 | 36,745,000 | 0 | 0 | |
Impairment loss of indefinite lived intangible assets on annual impairment tests | 0 | ||||
Impairment charge of indefinite lived intangible assets | $ 2,500,000 | ||||
Impairment, Intangible Asset, Indefinite-Lived (Excluding Goodwill), Statement of Income or Comprehensive Income [Extensible Enumeration] | Restructuring charges | ||||
Advertising cost | $ 62,000,000 | 45,400,000 | 61,100,000 | ||
Research and development cost | $ 86,600,000 | $ 80,500,000 | $ 77,600,000 | ||
Shares repurchased | shares | 598,653 | 601,155 | 594,061 | ||
Shares repurchased, value | $ 50,000,000 | $ 52,500,000 | $ 49,956,000 | ||
Repurchase of common stock price per shares | $ / shares | $ 83.52 | $ 87.33 | $ 84.09 | ||
SPG Segments | |||||
Significant Of Accounting Policies [Line Items] | |||||
Inventory write-downs | $ 7,600,000 | ||||
PCG Segment | |||||
Significant Of Accounting Policies [Line Items] | |||||
Goodwill impairments | $ 36,745,000 | ||||
Universal Sealants | |||||
Significant Of Accounting Policies [Line Items] | |||||
Goodwill impairments | $ 36,700,000 | ||||
Universal Sealants | PCG Segment | |||||
Significant Of Accounting Policies [Line Items] | |||||
Percentage of annual revenue | 30% | 30% |
Assets Acquired and Liabilities
Assets Acquired and Liabilities Assumed on Acquisition (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
Acquisitions | ||||
Goodwill | $ 1,293,588 | $ 1,337,868 | $ 1,345,754 | |
2023 Acquisitions | ||||
Acquisitions | ||||
Current assets | 17,508 | |||
Property, plant and equipment | 3,605 | |||
Goodwill | 25,407 | |||
Trade names - indefinite lives | 3,168 | |||
Other intangible assets | 14,965 | |||
Other long-term assets | 1,647 | |||
Total Assets Acquired | 66,300 | |||
Liabilities assumed | (12,287) | |||
Net Assets Acquired | [1] | $ 54,013 | ||
Weighted-average other intangible asset amortization life (in years) | 10 years | |||
2022 Acquisitions | ||||
Acquisitions | ||||
Current assets | 9,604 | |||
Property, plant and equipment | 71,658 | |||
Goodwill | 30,747 | |||
Trade names - indefinite lives | 1,050 | |||
Other intangible assets | 21,010 | |||
Other long-term assets | 2,316 | |||
Total Assets Acquired | 136,385 | |||
Liabilities assumed | (7,159) | |||
Net Assets Acquired | [2] | $ 129,226 | ||
Weighted-average other intangible asset amortization life (in years) | 13 years | |||
[1] Figure includes cash acquired of $ 6.5 million. Figure includes cash acquired of $ 1.8 million. |
Assets Acquired and Liabiliti_2
Assets Acquired and Liabilities Assumed on Acquisition (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
May 31, 2023 | May 31, 2022 | |
Business Combinations [Abstract] | ||
Business acquisition cash acquired | $ 6.5 | $ 1.8 |
Property, Plant and Equipment (
Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | May 31, 2023 | May 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 2,332,916 | $ 2,132,915 |
Less: allowance for depreciation and amortization | 1,093,440 | 1,028,932 |
Property, plant and equipment, net | 1,239,476 | 1,103,983 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, at cost | 92,954 | 88,137 |
Building And Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, at cost | 552,775 | 519,391 |
Machinery and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 1,687,187 | $ 1,525,387 |
Useful Lives (Detail)
Useful Lives (Detail) | 12 Months Ended |
May 31, 2023 | |
Building And Leasehold Improvements | Minimum | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property Plant and equipment useful life | 1 year |
Building And Leasehold 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 | 36 years |
Major Class of Inventory (Detai
Major Class of Inventory (Detail) - USD ($) $ in Thousands | May 31, 2023 | May 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 451,504 | $ 560,886 |
Finished goods | 683,992 | 651,732 |
Total Inventory | $ 1,135,496 | $ 1,212,618 |
Investment (Income) Expense, Ne
Investment (Income) Expense, Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Investment Income, Net [Abstract] | |||
Interest (income) | $ (9,250) | $ (4,435) | $ (3,555) |
Net loss (gain) on marketable securities | 2,086 | 17,706 | (38,774) |
Dividend (income) | (2,584) | (5,676) | (2,121) |
Investment (income) expense, net | $ (9,748) | $ (7,595) | $ 44,450 |
Net Loss (Gain) on Marketable S
Net Loss (Gain) on Marketable Securities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Net Loss (Gain) on Marketable Securities | |||
Unrealized losses (gains) on marketable equity securities | $ 2,667 | $ 19,164 | $ (16,133) |
Realized (gains) losses on marketable equity securities | (551) | (1,488) | (22,680) |
Realized (gains) losses on available-for-sale debt securities | (30) | 30 | 39 |
Net loss (gain) on marketable securities | $ 2,086 | $ 17,706 | $ (38,774) |
Other Expense (Income), Net (De
Other Expense (Income), Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Other Income and Expenses [Abstract] | |||
Pension non-service costs (credits) | $ 10,381 | $ (10,581) | $ 14,542 |
Other | (604) | (1,265) | (903) |
Other Expense (Income), Net | $ 9,777 | $ (11,846) | $ 13,639 |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) - MAP to Growth - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Restructuring Cost And Reserve [Line Items] | |||
Restructuring costs | $ 3.8 | $ 6.3 | $ 18.1 |
Restructuring, Incurred Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Restructuring charges | Restructuring charges | Restructuring charges |
Restructuring and related cost incurred to date | $ 121.1 |
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, 2023 | May 31, 2022 | May 31, 2021 | ||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | $ 15,465 | $ 6,276 | $ 18,106 | |
MAP 2025 | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 11,660 | |||
Cumulative Costs to Date | 11,660 | |||
Total Expected Costs | 22,695 | |||
MAP 2025 | Severance and benefit costs (credits) | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 8,502 | |||
Cumulative Costs to Date | 8,502 | |||
Total Expected Costs | 13,857 | |||
MAP 2025 | Facility Closure and Other Related Costs | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 621 | |||
Cumulative Costs to Date | 621 | |||
Total Expected Costs | 6,301 | |||
MAP 2025 | Other Asset Write-offs | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 2,537 | |||
Cumulative Costs to Date | 2,537 | |||
Total Expected Costs | 2,537 | |||
MAP 2025 | Construction Products Segment | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 6,092 | |||
Cumulative Costs to Date | 6,092 | |||
Total Expected Costs | 8,815 | |||
MAP 2025 | Construction Products Segment | Severance and benefit costs (credits) | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 6,092 | |||
Cumulative Costs to Date | 6,092 | |||
Total Expected Costs | 8,494 | |||
MAP 2025 | Construction Products Segment | Facility Closure and Other Related Costs | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 0 | |||
Cumulative Costs to Date | 0 | |||
Total Expected Costs | 321 | |||
MAP 2025 | Performance Coatings Segment | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 3,685 | |||
Cumulative Costs to Date | 3,685 | |||
Total Expected Costs | 6,692 | |||
MAP 2025 | Performance Coatings Segment | Severance and benefit costs (credits) | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 1,148 | |||
Cumulative Costs to Date | 1,148 | |||
Total Expected Costs | 3,155 | |||
MAP 2025 | Performance Coatings Segment | Facility Closure and Other Related Costs | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 0 | |||
Cumulative Costs to Date | 0 | |||
Total Expected Costs | 1,000 | |||
MAP 2025 | Performance Coatings Segment | Other Asset Write-offs | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | [1] | 2,537 | ||
Cumulative Costs to Date | [1] | 2,537 | ||
Total Expected Costs | [1] | 2,537 | ||
MAP 2025 | Consumer Segment | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 1,128 | |||
Cumulative Costs to Date | 1,128 | |||
Total Expected Costs | 1,128 | |||
MAP 2025 | Consumer Segment | Severance and benefit costs (credits) | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 507 | |||
Cumulative Costs to Date | 507 | |||
Total Expected Costs | 507 | |||
MAP 2025 | Consumer Segment | Facility Closure and Other Related Costs | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 621 | |||
Cumulative Costs to Date | 621 | |||
Total Expected Costs | 621 | |||
MAP 2025 | SPG Segments | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 805 | |||
Cumulative Costs to Date | 805 | |||
Total Expected Costs | 6,110 | |||
MAP 2025 | SPG Segments | Severance and benefit costs (credits) | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 805 | |||
Cumulative Costs to Date | 805 | |||
Total Expected Costs | 1,751 | |||
MAP 2025 | SPG Segments | Facility Closure and Other Related Costs | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 0 | |||
Cumulative Costs to Date | 0 | |||
Total Expected Costs | 4,359 | |||
MAP 2025 | Corporate/Other Segment | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | (50) | |||
Cumulative Costs to Date | (50) | |||
Total Expected Costs | (50) | |||
MAP 2025 | Corporate/Other Segment | Severance and benefit costs (credits) | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | (50) | |||
Cumulative Costs to Date | (50) | |||
Total Expected Costs | $ (50) | |||
[1] Other restructuring costs are associated with the impairment of an indefinite-lived tradename as described below in Note C, "Goodwill and Other Intangible Assets," of the Consolidated Financial Statements . |
Summary of Activity in Restruct
Summary of Activity in Restructuring Reserves (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Restructuring Cost And Reserve [Line Items] | |||
Additions charged to expense | $ 15,465 | $ 6,276 | $ 18,106 |
MAP to Growth | |||
Restructuring Cost And Reserve [Line Items] | |||
Beginning balance | 0 | ||
Additions charged to expense | 11,660 | ||
Cash payments charged against reserve | (5,607) | ||
Non-cash charges and other adjustments | (3,336) | ||
Ending balance | 2,717 | 0 | |
MAP to Growth | Severance and benefit costs (credits) | |||
Restructuring Cost And Reserve [Line Items] | |||
Beginning balance | 0 | ||
Additions charged to expense | 8,502 | ||
Cash payments charged against reserve | (5,486) | ||
Non-cash charges and other adjustments | (299) | ||
Ending balance | 2,717 | 0 | |
MAP to Growth | Facility Closure and Other Related Costs | |||
Restructuring Cost And Reserve [Line Items] | |||
Beginning balance | 0 | ||
Additions charged to expense | 621 | ||
Cash payments charged against reserve | (121) | ||
Non-cash charges and other adjustments | (500) | ||
Ending balance | 0 | 0 | |
MAP to Growth | Other Asset Write-offs | |||
Restructuring Cost And Reserve [Line Items] | |||
Beginning balance | 0 | ||
Additions charged to expense | 2,537 | ||
Cash payments charged against reserve | 0 | ||
Non-cash charges and other adjustments | (2,537) | ||
Ending balance | $ 0 | $ 0 |
Changes in Carrying Amount of G
Changes in Carrying Amount of Goodwill, by Reportable Segment (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Feb. 28, 2023 | May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Goodwill [Line Items] | ||||
Goodwill beginning balance | $ 1,337,868,000 | $ 1,345,754,000 | ||
Acquisitions | 25,407,000 | 30,747,000 | ||
Divestitures | (15,723,000) | |||
Impairments | $ (36,700,000) | (36,745,000) | 0 | $ 0 |
Translation adjustments & other | (17,219,000) | (38,633,000) | ||
Goodwill ending balance | 1,293,588,000 | 1,337,868,000 | 1,345,754,000 | |
CPG Segment | ||||
Goodwill [Line Items] | ||||
Goodwill beginning balance | 453,651,000 | 443,515,000 | ||
Acquisitions | 7,306,000 | 24,539,000 | ||
Translation adjustments & other | (10,402,000) | (14,403,000) | ||
Goodwill ending balance | 450,555,000 | 453,651,000 | 443,515,000 | |
PCG Segment | ||||
Goodwill [Line Items] | ||||
Goodwill beginning balance | 201,815,000 | 207,038,000 | ||
Acquisitions | 868,000 | 5,342,000 | ||
Impairments | (36,745,000) | |||
Translation adjustments & other | (4,206,000) | (10,565,000) | ||
Goodwill ending balance | 161,732,000 | 201,815,000 | 207,038,000 | |
Consumer Segment | ||||
Goodwill [Line Items] | ||||
Goodwill beginning balance | 515,597,000 | 525,230,000 | ||
Acquisitions | 16,952,000 | |||
Translation adjustments & other | (1,322,000) | (9,633,000) | ||
Goodwill ending balance | 531,227,000 | 515,597,000 | 525,230,000 | |
SPG Segments | ||||
Goodwill [Line Items] | ||||
Goodwill beginning balance | 166,805,000 | 169,971,000 | ||
Acquisitions | 281,000 | 866,000 | ||
Divestitures | (15,723,000) | |||
Translation adjustments & other | (1,289,000) | (4,032,000) | ||
Goodwill ending balance | $ 150,074,000 | $ 166,805,000 | $ 169,971,000 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Feb. 28, 2023 | May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Goodwill And Intangible Assets [Line Items] | ||||
Accumulated goodwill impairment losses | $ 193,000,000 | |||
Goodwill impairment | $ 36,700,000 | 36,745,000 | $ 0 | $ 0 |
Intangible asset amortization expense | 43,500,000 | 45,700,000 | 44,300,000 | |
Goodwill | 1,293,588,000 | 1,337,868,000 | 1,345,754,000 | |
Impairment of our long-lived assets | 0 | |||
Future amortization expense of intangible asset in 2024 | 38,900,000 | |||
Future amortization expense of intangible asset in 2025 | 34,300,000 | |||
Future amortization expense of intangible asset in 2026 | 30,900,000 | |||
Future amortization expense of intangible asset in 2027 | 29,200,000 | |||
Future amortization expense of intangible asset in 2028 | 27,000,000 | |||
Impairment charge of indefinite lived intangible assets | 2,500,000 | |||
Universal Sealants | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Goodwill impairment | 36,700,000 | |||
Goodwill | 1,100,000 | |||
Impairments for definite-lived long-lived assets | 0 | |||
Universal Sealants | Trade names | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Impairment charge of indefinite lived intangible assets | $ 2,500,000 | 2,500,000 | ||
SPG Segments | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Accumulated goodwill impairment losses | 141,400,000 | |||
Goodwill | 150,074,000 | 166,805,000 | 169,971,000 | |
CPG Segment | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Accumulated goodwill impairment losses | 14,900,000 | |||
Goodwill | 450,555,000 | 453,651,000 | 443,515,000 | |
Consumer Segment | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Goodwill | 531,227,000 | 515,597,000 | 525,230,000 | |
PCG Segment | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Accumulated goodwill impairment losses | 36,700,000 | |||
Goodwill impairment | 36,745,000 | |||
Goodwill | $ 161,732,000 | $ 201,815,000 | $ 207,038,000 | |
PCG Segment | Universal Sealants | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Percentage of annual revenue | 30% | 30% |
Other Intangible Assets Major C
Other Intangible Assets Major Classes (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
May 31, 2023 | May 31, 2022 | |
Intangible Assets by Major Class [Line Items] | ||
Amortized intangible assets, gross carrying amount | $ 811,061 | $ 811,797 |
Amortized intangible assets, accumulated amortization | (517,471) | (487,621) |
Amortized intangible assets, net other intangible assets | 293,590 | 324,176 |
Total Other Intangible Assets, gross carrying amount | 1,072,462 | 1,079,882 |
Total Other Intangible Assets, net other intangible assets | 554,991 | 592,261 |
Trademarks and Trade Names | ||
Intangible Assets by Major Class [Line Items] | ||
Indefinite-lived intangible assets, acquisitions | 261,401 | 268,085 |
Indefinite-lived intangible assets, net other intangible assets | 261,401 | 268,085 |
Formulae | ||
Intangible Assets by Major Class [Line Items] | ||
Amortized intangible assets, gross carrying amount | 236,486 | 234,366 |
Amortized intangible assets, accumulated amortization | (190,981) | (181,983) |
Amortized intangible assets, net other intangible assets | $ 45,505 | $ 52,383 |
Formulae | Minimum | ||
Intangible Assets by Major Class [Line Items] | ||
Amortized intangible assets, amortization period | 9 years | 9 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 | $ 506,618 | $ 508,143 |
Amortized intangible assets, accumulated amortization | (275,369) | (257,219) |
Amortized intangible assets, net other intangible assets | $ 231,249 | $ 250,924 |
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 | $ 35,374 | $ 35,957 |
Amortized intangible assets, accumulated amortization | (23,792) | (21,588) |
Amortized intangible assets, net other intangible assets | $ 11,582 | $ 14,369 |
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 | $ 32,583 | $ 33,331 |
Amortized intangible assets, accumulated amortization | (27,329) | (26,831) |
Amortized intangible assets, net other intangible assets | $ 5,254 | $ 6,500 |
Other Intangible Assets | Minimum | ||
Intangible Assets by Major Class [Line Items] | ||
Amortized intangible assets, amortization period | 3 years | 3 years |
Other Intangible Assets | Maximum | ||
Intangible Assets by Major Class [Line Items] | ||
Amortized intangible assets, amortization period | 30 years | 30 years |
Summary of Available-for-Sale D
Summary of Available-for-Sale Debt Securities by Asset Type (Detail) - USD ($) $ in Thousands | May 31, 2023 | May 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-Sale Debt Securities, Amortized Cost | $ 28,988 | $ 26,669 |
Available-for-Sale Debt Securities, Gross Unrealized Gains | 29 | 67 |
Available-for-Sale Debt Securities, Gross Unrealized Losses | (1,855) | (1,342) |
Available-for-Sale Debt Securities, Fair Value (Net Carrying Amount) | 27,162 | 25,394 |
U.S. Treasury and other government | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-Sale Debt Securities, Amortized Cost | 28,841 | 26,522 |
Available-for-Sale Debt Securities, Gross Unrealized Gains | 23 | 55 |
Available-for-Sale Debt Securities, Gross Unrealized Losses | (1,843) | (1,338) |
Available-for-Sale Debt Securities, Fair Value (Net Carrying Amount) | 27,021 | 25,239 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-Sale Debt Securities, Amortized Cost | 147 | 147 |
Available-for-Sale Debt Securities, Gross Unrealized Gains | 6 | 12 |
Available-for-Sale Debt Securities, Gross Unrealized Losses | (12) | (4) |
Available-for-Sale Debt Securities, Fair Value (Net Carrying Amount) | $ 141 | $ 155 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Detail) - USD ($) $ in Millions | May 31, 2023 | May 31, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale debt securities, current | $ 5.1 | $ 6 |
Available-for-sale debt securities, long-term | 22.1 | 19.4 |
Equity securities | $ 121.2 | $ 119 |
Summary of Available-for-Sale_2
Summary of Available-for-Sale Debt Securities in Unrealized Loss Position and Included in Accumulated Other Comprehensive (Loss), Aggregated by Length of Time Investments (Detail) - USD ($) $ in Thousands | May 31, 2023 | May 31, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||
Total investments with unrealized losses, fair value | $ 24,245 | $ 22,702 |
Unrealized losses with a loss position for less than 12 months, fair value | 6,285 | 16,273 |
Unrealized losses with a loss position for more than 12 months, fair value | 17,960 | 6,429 |
Total investments with unrealized losses, gross unrealized losses | (1,855) | (1,342) |
Unrealized losses with a loss position for less than 12 months, gross unrealized losses | (72) | (543) |
Unrealized losses with a loss position for more than 12 months, gross unrealized losses | $ (1,783) | $ (799) |
Net Carrying Values of Debt Sec
Net Carrying Values of Debt Securities by Contractual Maturity (Detail) - USD ($) $ in Thousands | May 31, 2023 | May 31, 2022 |
Available-for-Sale Debt Securities, Amortized Cost | ||
Less than one year, amortized cost | $ 5,308 | |
One year through five years, amortized cost | 19,172 | |
Six years through ten years, amortized cost | 2,023 | |
After ten years, amortized cost | 2,485 | |
Available-for-Sale Debt Securities, Amortized Cost | 28,988 | $ 26,669 |
Available-for-Sale Debt Securities, Fair Value | ||
Less than one year, fair value | 5,143 | |
One year through five years, fair value | 18,334 | |
Six years through ten years, fair value | 1,742 | |
After ten years, fair value | 1,943 | |
Available-for-sale debt securities, fair value | $ 27,162 | $ 25,394 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis and Categorized using Fair Value Hierarchy (Detail) - USD ($) $ in Thousands | May 31, 2023 | May 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities | $ 27,162 | $ 25,394 |
Total marketable equity securities | 121,200 | 119,000 |
U.S. Treasury and other government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities | 27,021 | 25,239 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities | 141 | 155 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities | 27,162 | 25,394 |
Total marketable equity securities | 121,153 | 119,049 |
Assets (liabilities) at fair value | 145,629 | 133,914 |
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 securities | 27,021 | 25,239 |
Fair Value, Measurements, Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities | 141 | 155 |
Fair Value, Measurements, Recurring | Stocks | Foreign | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable equity securities | 786 | 598 |
Fair Value, Measurements, Recurring | Stocks | Domestic | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable equity securities | 5,009 | 5,085 |
Fair Value, Measurements, Recurring | Mutual funds | Foreign | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable equity securities | 40,074 | 39,139 |
Fair Value, Measurements, Recurring | Mutual funds | Domestic | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable equity securities | 75,284 | 74,227 |
Fair Value, Measurements, Recurring | Contingent consideration liability | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | (2,686) | (10,529) |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable equity securities | 5,795 | 5,683 |
Assets (liabilities) at fair value | 5,795 | 5,683 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Stocks | Foreign | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable equity securities | 786 | 598 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Stocks | Domestic | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable equity securities | 5,009 | 5,085 |
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 securities | 27,162 | 25,394 |
Total marketable equity securities | 115,358 | 113,366 |
Assets (liabilities) at fair value | 142,520 | 138,760 |
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 securities | 27,021 | 25,239 |
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 securities | 141 | 155 |
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 marketable equity securities | 40,074 | 39,139 |
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 marketable equity securities | 75,284 | 74,227 |
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 | (2,686) | (10,529) |
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 | $ (2,686) | $ (10,529) |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
May 31, 2023 | May 31, 2022 | |
Fair Value Disclosures [Abstract] | ||
Settlements of contingent consideration obligations | $ 10.4 | $ 5.8 |
Increase in accrual related to acquisitions | $ 2.6 | |
Increase in accrual related to fair value adjustments | $ 3.3 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value and Carrying Value of Financial Instruments and Long-Term Debt (Detail) - USD ($) $ in Thousands | May 31, 2023 | May 31, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable equity securities | $ 121,200 | $ 119,000 |
Available-for-sale debt securities | 27,162 | 25,394 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 215,787 | 201,672 |
Long-term debt, including current portion | 2,683,809 | 2,686,609 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 215,787 | 201,672 |
Long-term debt, including current portion | $ 2,490,863 | $ 2,618,978 |
Derivatives and Hedging - Addit
Derivatives and Hedging - Additional Information (Detail) | 1 Months Ended | |||
May 31, 2022 USD ($) ForwardContract | Feb. 29, 2020 EUR (€) CrossCurrencySwap | May 31, 2023 USD ($) ForwardContract | Feb. 29, 2020 USD ($) CrossCurrencySwap | |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||
Derivatives designated as hedges, assets recognized | $ 0 | $ 0 | ||
Derivatives designated as hedges, liabilities recognized | 0 | $ 0 | ||
Derivatives Designated as Hedging Instruments | ||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||
Cash received on derivative fair value hedge | 11,600,000 | |||
Cash flow hedges accounting reserve balance within AOCI | $ 1,900,000 | |||
Derivatives Designated as Hedging Instruments | Variable Interest Rate | ||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||
Number of cross currency swaps executed | CrossCurrencySwap | 2 | 2 | ||
Notional amount | € 277,730,000 | $ 300,000,000 | ||
Derivative instruments maturity date | 2023-02 | |||
Derivatives Designated as Hedging Instruments | Foreign Borrower's Term Loan | Variable Interest Rate | ||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||
Notional amount | € 92,520,000 | $ 100,000,000 | ||
Derivative instruments maturity date | 2023-02 | |||
Derivatives Not Designated as Hedges | ||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||
Number of foreign currency forward contract held | ForwardContract | 1 | 1 | ||
Derivatives Not Designated as Hedges | Forward Contracts Held to Purchase Foreign Currencies | ||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||
Notional amount | $ 238,200,000 | $ 43,600,000 |
Derivatives and Hedging - Sched
Derivatives and Hedging - Schedule of Derivatives Instruments for Gains or Losses Initially Recognized in AOCI in Consolidated Balance Sheet (Detail) - Derivatives Designated as Hedging Instruments - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||
Pretax gain/(loss) recognized in AOCI | $ 60,473 | $ (41,813) | |
Pretax gain/(loss) reclassified from AOCI into income | $ 1,766 | 12,097 | (12,616) |
Interest Rate Swap | Interest (Expense) Income | Cash Flow | |||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||
Pretax gain/(loss) recognized in AOCI | 4,508 | (1,226) | |
Pretax gain/(loss) reclassified from AOCI into income, cash flow | (3,272) | (3,380) | |
Cross Currency Swap | Interest Income | Cash Flow | |||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||
Pretax gain/(loss) recognized in AOCI | 15,494 | (9,207) | |
Pretax gain/(loss) reclassified from AOCI into income, cash flow | $ 1,766 | 611 | 638 |
Cross Currency Swap | Foreign Exchange (Loss) | Cash Flow | |||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||
Pretax gain/(loss) reclassified from AOCI into income, cash flow | 14,758 | (9,874) | |
Cross Currency Swap | Gain or (loss) on sale of subsidiary | Net Investment | |||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||
Pretax gain/(loss) recognized in AOCI | $ 40,471 | $ (31,380) |
Borrowings - Description of Lon
Borrowings - Description of Long Term Debt (Detail) - USD ($) $ in Thousands | May 31, 2023 | May 31, 2022 | |
Debt Instrument [Line Items] | |||
Long-term debt including finance lease | $ 2,683,809 | $ 2,686,609 | |
Less: current portion | 178,588 | 603,454 | |
Long-term debt, less current maturities | 2,505,221 | 2,083,155 | |
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Debt | [1] | 610,947 | 442,249 |
Accounts Receivable Securitization Program with Two Banks, through May 21, 2024 | |||
Debt Instrument [Line Items] | |||
Debt | [2] | 174,885 | |
Unsecured 3.45% senior notes due November 15, 2022 | |||
Debt Instrument [Line Items] | |||
Debt | [3] | 300,119 | |
Unsecured Term Loan due August 1, 2025 | |||
Debt Instrument [Line Items] | |||
Debt | [4] | 249,772 | 299,798 |
Unsecured 3.75% notes due March 15, 2027 | |||
Debt Instrument [Line Items] | |||
Debt | [5] | 398,292 | 397,842 |
Unsecured 4.55% senior notes due March 1, 2029 | |||
Debt Instrument [Line Items] | |||
Debt | [6] | 347,686 | 347,295 |
Unsecured 2.95% notes due January 15, 2032 | |||
Debt Instrument [Line Items] | |||
Debt | [7] | 296,815 | 296,455 |
Unsecured 5.25% notes due June 1, 2045 | |||
Debt Instrument [Line Items] | |||
Debt | [8] | 298,913 | 298,836 |
Unsecured 4.25% notes due January 15, 2048 | |||
Debt Instrument [Line Items] | |||
Debt | [9] | 296,962 | 296,836 |
Other Borrowings | |||
Debt Instrument [Line Items] | |||
Long-term debt including finance lease | $ 9,537 | $ 7,179 | |
[1] Interest as of May 31, 2023 was 6.2600 % for the USD denominated swingline account, which is tied to SOFR; 6.3600 % for the USD denominated revolver, which is tied to SOFR; 4.2926 % on EUR denominated debt which is tied to ESTR; 5.5607 % on GBP denominated debt, which is tied to the Sterling Overnight Index Average; and 4.9200 % on AUD denominated debt, which is tied to the Reserve Bank of Australia rate. The debt balances outstanding, excluding deferred financing fees, as of May 31, 2023 for the USD denominated swingline, USD denominated revolver, EUR denominated revolver, GBP denominated debt, and AUD denominated debt were as follows: $ 8.2 million, $ 30.0 million, $ 527.6 million, $ 46.7 million, and $ 1.2 million. Interest as of May 31, 2022 was tied to LIBOR and was 2.3699 % for the USD denominated swingline account, 2.3096 % for the USD denominated revolver and 1.25 % on EUR denominated debt. The debt balances outstanding excluding deferred financing fees as of May 31, 2022, for the USD denominated swingline, USD denominated revolver, and EUR denominated revolver were as follows: $ 37.7 million, $ 60.0 million, and $ 346.1 million. As of May 31, 2023 and 2022, the revolving credit facility is adjusted for debt issuance costs, net of amortization, for approximately $ 2.8 million and $ 1.5 million, respectively. As of May 31, 2023, the accounts receivable securitization program is adjusted for debt issuance costs, net of amortization, of approximately $ 0.1 million. On November 15, 2022, we repaid the $ 300.0 million aggregate principal amount outstanding on our 3.45 % Notes due 2022. Interest as of May 31, 2023 was 6.2000 %, which is variable and tied to SOFR. As of May 31, 2023 and 2022, the term loan is adjusted for deferred financing fees, net of amortization, of approximately $ 0.2 million. The $ 400.0 million face amount of the notes due 2027 is adjusted for the amortization of the original issue discount, which approximated $ 0.2 million and $ 0.3 million at May 31, 2023 and 2022, 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, 2023 and 2022, the notes are adjusted for debt issuance costs, net of amortization, for approximately $ 1.5 million and $ 1.9 million, respectively. The $ 350.0 million aggregate principal amount of the notes due 2029 is adjusted for the amortization of the original issue discount, which approximated $ 0.3 million and $ 0.4 million at May 31, 2023 and 2022, 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, was 4.568 %. At May 31, 2023 and 2022, the notes are adjusted for debt issuance costs, net of amortization, for approximately $ 2.0 million and $ 2.3 million, respectively. The $ 300.0 million face amount of the notes due 2032 is adjusted for the amortization of the original issue discount, which approximated $ 0.6 million at May 31, 2023 and 2022. 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 2.976 %. At May 31, 2023 and 2022, the notes are adjusted for debt issuance costs, net of amortization, for approximately $ 2.6 million and $ 2.9 million, respectively. The $ 250.0 million face amount of the notes due 2045 is adjusted for the amortization of the original issue discount, which approximated $ 1.3 million at May 31, 2023 and 2022. 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 $ 2.7 million and $ 2.8 million at May 31, 2023 and 2022, respectively. 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, 2023 and 2022, the notes are adjusted for debt issuance costs, net of amortization, for approximately $ 2.5 million and $ 2.6 million, respectively. The $ 300.0 million face amount of the notes due 2048 is adjusted for the debt issuance cost, net of amortization, which approximated $ 3.0 million and $ 3.2 million at May 31, 2023 and 2022, respectively. The effective interest rate on the notes is 4.25 %. |
Borrowings - Description of L_2
Borrowings - Description of Long Term Debt (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||||||||||
Nov. 15, 2022 | Aug. 01, 2022 | Feb. 21, 2020 | May 31, 2023 | May 31, 2022 | Feb. 27, 2019 | Dec. 20, 2017 | Mar. 31, 2017 | Mar. 02, 2017 | May 29, 2015 | ||||
Revolving Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, due date | [1] | Aug. 01, 2027 | Aug. 01, 2027 | ||||||||||
Debt issuance costs, net of amortization | $ 2.8 | $ 1.5 | |||||||||||
Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, interest rate | 6.20% | ||||||||||||
Unsecured Term Loan due August 1, 2025 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, due date | Aug. 01, 2025 | Aug. 01, 2025 | |||||||||||
Unsecured 3.45% senior notes due November 15, 2022 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, interest rate | 3.45% | 3.45% | [2] | 3.45% | [2] | ||||||||
Debt, due date | [2] | Nov. 15, 2022 | Nov. 15, 2022 | ||||||||||
Repayment of aggregate principal amount outstanding | $ 300 | ||||||||||||
Unsecured 3.75% notes due March 15, 2027 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt | $ 400 | $ 400 | $ 400 | ||||||||||
Debt, interest rate | 3.75% | [3] | 3.75% | [3] | 3.75% | ||||||||
Debt, due date | [3] | Mar. 15, 2027 | Mar. 15, 2027 | ||||||||||
Debt issuance costs, net of amortization | $ 1.5 | $ 1.9 | |||||||||||
Amortization of debt discount premium | $ 0.2 | $ 0.3 | |||||||||||
Debt instrument, effective interest rate | 3.767% | 3.767% | |||||||||||
Unsecured 4.55% senior notes due March 1, 2029 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt | $ 350 | $ 350 | $ 350 | ||||||||||
Debt, interest rate | 4.55% | [4] | 4.55% | [4] | 4.55% | ||||||||
Debt, due date | [4] | Mar. 01, 2029 | Mar. 01, 2029 | ||||||||||
Debt issuance costs, net of amortization | $ 2 | $ 2.3 | |||||||||||
Amortization of debt discount premium | $ 0.3 | $ 0.4 | |||||||||||
Debt instrument, effective interest rate | 4.568% | 4.568% | |||||||||||
Unsecured 2.95% notes due January 15, 2032 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt | $ 300 | ||||||||||||
Debt, interest rate | [5] | 2.95% | 2.95% | ||||||||||
Debt, due date | [5] | Jan. 15, 2032 | Jan. 15, 2032 | ||||||||||
Debt issuance costs, net of amortization | $ 2.6 | $ 2.9 | |||||||||||
Amortization of debt discount premium | $ 0.6 | $ 0.6 | |||||||||||
Debt instrument, effective interest rate | 2.976% | 2.976% | |||||||||||
Unsecured 5.25% notes due June 1, 2045 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt | $ 50 | $ 250 | |||||||||||
Debt, interest rate | 5.25% | [6] | 5.25% | [6] | 5.25% | 5.25% | |||||||
Debt, due date | [6] | Jun. 01, 2045 | Jun. 01, 2045 | ||||||||||
Debt issuance costs, net of amortization | $ 2.5 | $ 2.6 | |||||||||||
Amortization of debt discount premium | $ 1.3 | $ 1.3 | |||||||||||
Debt instrument, effective interest rate | 5.29% | 5.29% | |||||||||||
Accounts Receivable Securitization Program with Two Banks, through May 21, 2024 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, due date | [7] | May 21, 2024 | May 21, 2024 | ||||||||||
Debt issuance costs, net of amortization | $ 0.1 | ||||||||||||
Other Borrowings | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, maturity year | 2028 | 2028 | |||||||||||
Unsecured 4.25% notes due January 15, 2048 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt | $ 300 | $ 300 | $ 300 | ||||||||||
Debt, interest rate | 4.25% | [8] | 4.25% | [8] | 4.25% | ||||||||
Debt, due date | [8] | Jan. 15, 2048 | Jan. 15, 2048 | ||||||||||
Debt issuance costs, net of amortization | $ 3 | $ 3.2 | |||||||||||
Debt instrument, effective interest rate | 4.25% | 4.25% | |||||||||||
Term Loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, due date | Aug. 01, 2025 | Feb. 21, 2023 | |||||||||||
Debt issuance costs, net of amortization | $ 0.2 | $ 0.2 | |||||||||||
United States Dollar Denominated Swingline Account | Revolving Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, interest rate | 6.26% | ||||||||||||
Outstanding debt | $ 8.2 | $ 37.7 | |||||||||||
United States Dollar Denominated Swingline Account | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, interest rate | 2.3699% | ||||||||||||
United States Dollar Denominated Revolver | Revolving Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, interest rate | 6.36% | ||||||||||||
Outstanding debt | $ 30 | $ 60 | |||||||||||
United States Dollar Denominated Revolver | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, interest rate | 2.3096% | ||||||||||||
Australian Dollar Denominated Debt | Revolving Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, interest rate | 4.92% | ||||||||||||
Outstanding debt | $ 1.2 | ||||||||||||
Euro Denominated Debt | Revolving Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, interest rate | 4.2926% | ||||||||||||
Outstanding debt | $ 527.6 | $ 346.1 | |||||||||||
Euro Denominated Debt | Revolving Credit Facility | EUR LIBOR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, interest rate | 1.25% | ||||||||||||
GBP Denominated Debt | Revolving Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, interest rate | 5.5607% | ||||||||||||
Outstanding debt | $ 46.7 | ||||||||||||
Initial Aggregate Principal | Unsecured 5.25% notes due June 1, 2045 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt | 250 | $ 250 | |||||||||||
Additional Aggregate Principal | Unsecured 5.25% notes due June 1, 2045 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt | $ 50 | 50 | $ 50 | ||||||||||
Debt instrument, effective interest rate | 4.839% | 4.839% | |||||||||||
Unamortization of debt premium | $ 2.7 | $ 2.8 | |||||||||||
[1] Interest as of May 31, 2023 was 6.2600 % for the USD denominated swingline account, which is tied to SOFR; 6.3600 % for the USD denominated revolver, which is tied to SOFR; 4.2926 % on EUR denominated debt which is tied to ESTR; 5.5607 % on GBP denominated debt, which is tied to the Sterling Overnight Index Average; and 4.9200 % on AUD denominated debt, which is tied to the Reserve Bank of Australia rate. The debt balances outstanding, excluding deferred financing fees, as of May 31, 2023 for the USD denominated swingline, USD denominated revolver, EUR denominated revolver, GBP denominated debt, and AUD denominated debt were as follows: $ 8.2 million, $ 30.0 million, $ 527.6 million, $ 46.7 million, and $ 1.2 million. Interest as of May 31, 2022 was tied to LIBOR and was 2.3699 % for the USD denominated swingline account, 2.3096 % for the USD denominated revolver and 1.25 % on EUR denominated debt. The debt balances outstanding excluding deferred financing fees as of May 31, 2022, for the USD denominated swingline, USD denominated revolver, and EUR denominated revolver were as follows: $ 37.7 million, $ 60.0 million, and $ 346.1 million. As of May 31, 2023 and 2022, the revolving credit facility is adjusted for debt issuance costs, net of amortization, for approximately $ 2.8 million and $ 1.5 million, respectively. On November 15, 2022, we repaid the $ 300.0 million aggregate principal amount outstanding on our 3.45 % Notes due 2022. The $ 400.0 million face amount of the notes due 2027 is adjusted for the amortization of the original issue discount, which approximated $ 0.2 million and $ 0.3 million at May 31, 2023 and 2022, 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, 2023 and 2022, the notes are adjusted for debt issuance costs, net of amortization, for approximately $ 1.5 million and $ 1.9 million, respectively. The $ 350.0 million aggregate principal amount of the notes due 2029 is adjusted for the amortization of the original issue discount, which approximated $ 0.3 million and $ 0.4 million at May 31, 2023 and 2022, 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, was 4.568 %. At May 31, 2023 and 2022, the notes are adjusted for debt issuance costs, net of amortization, for approximately $ 2.0 million and $ 2.3 million, respectively. The $ 300.0 million face amount of the notes due 2032 is adjusted for the amortization of the original issue discount, which approximated $ 0.6 million at May 31, 2023 and 2022. 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 2.976 %. At May 31, 2023 and 2022, the notes are adjusted for debt issuance costs, net of amortization, for approximately $ 2.6 million and $ 2.9 million, respectively. The $ 250.0 million face amount of the notes due 2045 is adjusted for the amortization of the original issue discount, which approximated $ 1.3 million at May 31, 2023 and 2022. 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 $ 2.7 million and $ 2.8 million at May 31, 2023 and 2022, respectively. 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, 2023 and 2022, the notes are adjusted for debt issuance costs, net of amortization, for approximately $ 2.5 million and $ 2.6 million, respectively. As of May 31, 2023, the accounts receivable securitization program is adjusted for debt issuance costs, net of amortization, of approximately $ 0.1 million. The $ 300.0 million face amount of the notes due 2048 is adjusted for the debt issuance cost, net of amortization, which approximated $ 3.0 million and $ 3.2 million at May 31, 2023 and 2022, respectively. The effective interest rate on the notes is 4.25 %. |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Nov. 15, 2022 | Aug. 01, 2022 | Mar. 18, 2021 | Feb. 21, 2020 | Nov. 30, 2018 | Dec. 20, 2017 | May 09, 2014 | Aug. 31, 2022 | May 31, 2023 | May 31, 2022 | Jan. 25, 2022 | May 22, 2020 | Feb. 27, 2019 | Mar. 02, 2017 | May 29, 2015 | ||||
Debt Instrument [Line Items] | ||||||||||||||||||
Maturities of long-term debt in 2024 | $ 178,600,000 | |||||||||||||||||
Maturities of long-term debt in 2025 | 3,600,000 | |||||||||||||||||
Maturities of long-term debt in 2026 | 251,900,000 | |||||||||||||||||
Maturities of long-term debt in 2027 | 400,600,000 | |||||||||||||||||
Maturities of long-term debt in 2028 | 613,900,000 | |||||||||||||||||
Maturities of long-term debt thereafter | 1,250,000,000 | |||||||||||||||||
Credit facility, available liquidity | 811,300,000 | |||||||||||||||||
Liquidity available | $ 1,027,100,000 | |||||||||||||||||
Consolidated indebtedness | 55.50% | 57.50% | ||||||||||||||||
Issuance of Debt | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Covenant leverage ratio | 4.25% | |||||||||||||||||
Accounts Receivable Securitization Program with Two Banks, through May 21, 2024 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Credit facility borrowing maximum capacity | $ 250,000,000 | $ 200,000,000 | $ 250,000,000 | $ 250,000,000 | ||||||||||||||
Credit facility expiration date | May 21, 2024 | May 21, 2021 | ||||||||||||||||
Percentage of indirect economic interest held in SPE | 100% | |||||||||||||||||
Outstanding balance | $ 175,000,000 | |||||||||||||||||
Maturity date | [1] | May 21, 2024 | May 21, 2024 | |||||||||||||||
Unsecured 3.45% senior notes due November 15, 2022 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt, interest rate | 3.45% | 3.45% | [2] | 3.45% | [2] | |||||||||||||
Maturity date | [2] | Nov. 15, 2022 | Nov. 15, 2022 | |||||||||||||||
Repayment of aggregate principal amount outstanding | $ 300,000,000 | |||||||||||||||||
Term Loan | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Outstanding balance | $ 250,000,000 | |||||||||||||||||
Maturity date | Aug. 01, 2025 | Feb. 21, 2023 | ||||||||||||||||
Unsecured 5.25% notes due June 1, 2045 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Issuance of note | $ 50,000,000 | $ 250,000,000 | ||||||||||||||||
Debt, interest rate | 5.25% | [3] | 5.25% | [3] | 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 | |||||||||||||||||
Maturity date | [3] | Jun. 01, 2045 | Jun. 01, 2045 | |||||||||||||||
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% | [4] | 3.75% | [4] | 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 | |||||||||||||||||
Maturity date | [4] | Mar. 15, 2027 | Mar. 15, 2027 | |||||||||||||||
2.950% Notes due 2032 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Interest payment terms | Interest on the Notes accrues from January 25, 2022 and will be payable semiannually in arrears on January 15 and July 15 of each year, beginning July 15, 2022, at a rate of 2.950% per year. | |||||||||||||||||
Interest frequency of payment term | semiannually | |||||||||||||||||
Issuance of note | $ 300,000,000 | |||||||||||||||||
Debt, interest rate | 2.95% | |||||||||||||||||
Maturity date | Jan. 15, 2032 | |||||||||||||||||
Unsecured 4.55% senior notes due March 1, 2029 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Issuance of note | $ 350,000,000 | $ 350,000,000 | $ 350,000,000 | |||||||||||||||
Debt, interest rate | 4.55% | [5] | 4.55% | [5] | 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. | |||||||||||||||||
Maturity date | [5] | Mar. 01, 2029 | Mar. 01, 2029 | |||||||||||||||
Unsecured 4.25% notes due January 15, 2048 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Issuance of note | $ 300,000,000 | $ 300,000,000 | $ 300,000,000 | |||||||||||||||
Debt, interest rate | 4.25% | 4.25% | [6] | 4.25% | [6] | |||||||||||||
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. | |||||||||||||||||
Maturity date | [6] | Jan. 15, 2048 | Jan. 15, 2048 | |||||||||||||||
Unsecured 6.50% senior notes due February 15, 2018 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt, interest rate | 6.50% | |||||||||||||||||
Maturity date | Feb. 15, 2018 | |||||||||||||||||
Repayment of aggregate principal amount outstanding | $ 250,000,000 | |||||||||||||||||
Minimum | Issuance of Debt | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Covenant leverage ratio | 3.75% | |||||||||||||||||
Interest coverage ratio | 3.50% | |||||||||||||||||
Minimum | Accounts Receivable Securitization Program with Two Banks, through May 21, 2024 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Monthly unused commitment fee | 0.30% | |||||||||||||||||
Maximum | Accounts Receivable Securitization Program with Two Banks, through May 21, 2024 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Monthly unused commitment fee | 0.50% | |||||||||||||||||
Margin | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Basis spread on variable rate | 85% | |||||||||||||||||
Revolving Credit Facility | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Credit facility, available liquidity | $ 736,300,000 | |||||||||||||||||
Credit facility borrowing maximum capacity | $ 1,300,000,000 | $ 1,350,000,000 | ||||||||||||||||
Credit facility expiration date | Oct. 31, 2023 | Aug. 01, 2027 | ||||||||||||||||
Interest coverage ratio | 9.02% | |||||||||||||||||
Leverage ratio | 2.36% | |||||||||||||||||
Maturity date | [7] | Aug. 01, 2027 | Aug. 01, 2027 | |||||||||||||||
New Credit Facility | Term Loan | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Credit facility borrowing maximum capacity | $ 300,000,000 | |||||||||||||||||
New Credit Facility | Term Loan | Foreign Borrower | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Credit facility borrowing maximum capacity | $ 100,000,000 | |||||||||||||||||
New Credit Facility | Interest Rate Swap Agreements | Term Loan | Foreign Borrower | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Credit facility borrowing maximum capacity | $ 100,000,000 | |||||||||||||||||
New Credit Facility | Minimum | Issuance of Debt | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Interest coverage ratio | 3.50% | |||||||||||||||||
New Credit Facility | Maximum | Issuance of Debt | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Covenant leverage ratio | 3.75% | |||||||||||||||||
Expected increase in covenant leverage ratio | 4.25% | |||||||||||||||||
[1] As of May 31, 2023, the accounts receivable securitization program is adjusted for debt issuance costs, net of amortization, of approximately $ 0.1 million. On November 15, 2022, we repaid the $ 300.0 million aggregate principal amount outstanding on our 3.45 % Notes due 2022. The $ 250.0 million face amount of the notes due 2045 is adjusted for the amortization of the original issue discount, which approximated $ 1.3 million at May 31, 2023 and 2022. 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 $ 2.7 million and $ 2.8 million at May 31, 2023 and 2022, respectively. 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, 2023 and 2022, the notes are adjusted for debt issuance costs, net of amortization, for approximately $ 2.5 million and $ 2.6 million, respectively. The $ 400.0 million face amount of the notes due 2027 is adjusted for the amortization of the original issue discount, which approximated $ 0.2 million and $ 0.3 million at May 31, 2023 and 2022, 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, 2023 and 2022, the notes are adjusted for debt issuance costs, net of amortization, for approximately $ 1.5 million and $ 1.9 million, respectively. The $ 350.0 million aggregate principal amount of the notes due 2029 is adjusted for the amortization of the original issue discount, which approximated $ 0.3 million and $ 0.4 million at May 31, 2023 and 2022, 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, was 4.568 %. At May 31, 2023 and 2022, the notes are adjusted for debt issuance costs, net of amortization, for approximately $ 2.0 million and $ 2.3 million, respectively. The $ 300.0 million face amount of the notes due 2048 is adjusted for the debt issuance cost, net of amortization, which approximated $ 3.0 million and $ 3.2 million at May 31, 2023 and 2022, respectively. The effective interest rate on the notes is 4.25 %. Interest as of May 31, 2023 was 6.2600 % for the USD denominated swingline account, which is tied to SOFR; 6.3600 % for the USD denominated revolver, which is tied to SOFR; 4.2926 % on EUR denominated debt which is tied to ESTR; 5.5607 % on GBP denominated debt, which is tied to the Sterling Overnight Index Average; and 4.9200 % on AUD denominated debt, which is tied to the Reserve Bank of Australia rate. The debt balances outstanding, excluding deferred financing fees, as of May 31, 2023 for the USD denominated swingline, USD denominated revolver, EUR denominated revolver, GBP denominated debt, and AUD denominated debt were as follows: $ 8.2 million, $ 30.0 million, $ 527.6 million, $ 46.7 million, and $ 1.2 million. Interest as of May 31, 2022 was tied to LIBOR and was 2.3699 % for the USD denominated swingline account, 2.3096 % for the USD denominated revolver and 1.25 % on EUR denominated debt. The debt balances outstanding excluding deferred financing fees as of May 31, 2022, for the USD denominated swingline, USD denominated revolver, and EUR denominated revolver were as follows: $ 37.7 million, $ 60.0 million, and $ 346.1 million. As of May 31, 2023 and 2022, the revolving credit facility is adjusted for debt issuance costs, net of amortization, for approximately $ 2.8 million and $ 1.5 million, respectively. |
Income before Income Taxes (Det
Income before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Income Before Income Taxes, United States | $ 557,401 | $ 342,834 | $ 462,468 |
Income Before Income Taxes, Foreign | 91,981 | 263,965 | 205,970 |
Income Before Income Taxes | $ 649,382 | $ 606,799 | $ 668,438 |
Provision (Benefit) for Income
Provision (Benefit) for Income Tax (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Current: | |||
U.S. federal | $ 91,749 | $ 60,818 | $ 60,666 |
State and local | 25,972 | 19,495 | 18,959 |
Foreign | 45,694 | 59,087 | 65,125 |
Total Current | 163,415 | 139,400 | 144,750 |
Deferred: | |||
U.S. federal | 16,969 | (24,025) | 20,027 |
State and local | 4,359 | 2,489 | 3,878 |
Foreign | (15,092) | (3,531) | (3,717) |
Total Deferred | 6,236 | (25,067) | 20,188 |
Provision for Income Taxes | $ 169,651 | $ 114,333 | $ 164,938 |
Significant Components of Defer
Significant Components of Deferred Income Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | May 31, 2023 | May 31, 2022 |
Deferred income tax assets related to: | ||
Inventories | $ 18,811 | $ 15,967 |
Accrued compensation and benefits | 18,331 | 22,224 |
Accrued other expenses | 21,037 | 21,782 |
Deferred income and other long-term liabilities | 30,239 | 25,389 |
Credit and net operating and capital loss carryforwards | 75,366 | 63,368 |
Net unrealized loss on securities | 3,373 | 9,386 |
Research and development | 17,360 | |
Pension and other postretirement benefits | 11,813 | 15,699 |
Total Deferred Income Tax Assets | 196,330 | 173,815 |
Less: valuation allowances | (30,033) | (30,509) |
Net Deferred Income Tax Assets | 166,297 | 143,306 |
Deferred income tax (liabilities) related to: | ||
Depreciation | (123,421) | (91,227) |
Amortization of intangibles | (116,763) | (112,349) |
Unremitted foreign earnings | (990) | (3,002) |
Total Deferred Income Tax (Liabilities) | (241,174) | (206,578) |
Deferred Income Tax Assets (Liabilities), Net | $ (74,877) | $ (63,272) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Income Tax [Line Items] | |||
Foreign capital loss carryforwards | $ 23,500,000 | ||
Total Valuation Allowances | 30,033,000 | $ 30,509,000 | |
Unrecognized tax benefits that would impact effective tax rate, if recognized | 2,900,000 | 5,600,000 | $ 7,000,000 |
Accrued interest and penalties related to unrecognized tax benefits | 2,200,000 | 3,200,000 | $ 2,900,000 |
Unremitted foreign earnings | 204,600,000 | ||
Deferred income tax liability | 990,000 | $ 3,002,000 | |
Remaining unremitted foreign earnings | 1,200,000,000 | ||
Provision for deferred income taxes | 0 | ||
State | |||
Income Tax [Line Items] | |||
Net operating loss carryforwards | $ 3,200,000 | ||
Net operating loss carryforwards beginning expiration year | 2024 | ||
Foreign | |||
Income Tax [Line Items] | |||
Tax credit carryforwards | $ 31,800,000 | ||
Tax credit carryforwards expiration year | 2032 | ||
Foreign Net Operating Loss Carryforwards | |||
Income Tax [Line Items] | |||
Net operating loss carryforwards | $ 148,200,000 | ||
Net operating loss carryforwards beginning expiration year | 2024 | ||
Net operating loss carryforwards subject to expiration | $ 37,500,000 | ||
Net operating loss carryforwards indefinite carry forward period | $ 110,700,000 |
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 | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense at the U.S. statutory federal income tax rate | $ 136,370 | $ 127,428 | $ 140,372 |
Foreign rate differential and other foreign tax adjustments | 1,535 | 6,278 | 11,942 |
State and local income taxes, net | 22,017 | 20,393 | 18,625 |
Impact of GILTI provisions | 4,217 | 1,709 | 1,598 |
Nondeductible business expense | 1,257 | 532 | 616 |
Valuation allowance | (1,199) | (32,720) | (4,389) |
Deferred tax liability for unremitted foreign earnings | (10,686) | 5,348 | |
Changes in unrecognized tax benefits | (3,334) | (1,682) | (1,847) |
Equity-based compensation | (3,482) | (1,776) | (8,651) |
Nondeductible goodwill impairment | 7,264 | ||
Other | 2,608 | 4,857 | 1,324 |
Provision for Income Taxes | $ 169,651 | $ 114,333 | $ 164,938 |
Effective Income Tax Rate | 26.10% | 18.80% | 24.70% |
Activity Related to Unrecognize
Activity Related to Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits, beginning balance | $ 5.7 | $ 7.5 | $ 9 |
Additions for tax positions of prior years | 0.1 | ||
Reductions for tax positions of prior years | (2.8) | (1.7) | (1.8) |
Foreign currency translation | 0.3 | ||
Foreign currency translation | (0.1) | (0.1) | |
Unrecognized tax benefits, ending balance | $ 2.9 | $ 5.7 | $ 7.5 |
Stock Repurchase Program - Addi
Stock Repurchase Program - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2021 | May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Stock Repurchase Programs [Line Items] | ||||
Authorization of stock repurchase program | Jan. 08, 2008 | |||
Capital to be returned to stockholders through share repurchases | $ 1,000,000 | |||
Stock repurchase program, remaining authorized repurchase, value | $ 469,700 | $ 317,300 | $ 600,000 | |
Stock repurchase program expiration date | May 31, 2021 | |||
Shares repurchased | 598,653 | 601,155 | 594,061 | |
Shares repurchased, value | $ 50,000 | $ 52,500 | $ 49,956 | |
Repurchase of common stock price per shares | $ 83.52 | $ 87.33 | $ 84.09 |
Stock-Based Compensation Expens
Stock-Based Compensation Expense Included in Consolidated Statements of Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 28,673 | $ 40,114 | $ 40,926 |
Stock-based compensation expense, included in restructuring expense | (50) | 630 | 47 |
Total stock-based compensation cost | 28,673 | 40,744 | 40,973 |
Income tax (benefit) | (4,234) | (5,621) | (6,877) |
Total stock-based compensation cost, net of tax | 24,439 | 35,123 | 34,096 |
SG&A | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 28,723 | $ 40,114 | $ 40,926 |
Summary of Weighted-Average Ass
Summary of Weighted-Average Assumptions Related to SARs Grants (Detail) - SARs | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Schedule Of Weighted Average Assumptions [Line Items] | |||
Risk-free interest rate | 3% | 0.90% | 0.40% |
Expected life of option | 6 years | 6 years | 6 years 6 months |
Expected dividend yield | 2% | 1.80% | 1.80% |
Expected volatility rate | 23.60% | 24.10% | 24% |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |||
Oct. 10, 2003 | Oct. 31, 2019 | May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Aggregate intrinsic value of options outstanding | $ 29.4 | ||||
Weighted-average remaining contractual life of options outstanding | 5 years 11 months 12 days | ||||
Aggregate intrinsic value of options exercisable | $ 27.8 | ||||
Weighted-average remaining contractual life of options exercisable | 4 years 7 months 24 days | ||||
Omnibus Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Incentive plan approval date | Oct. 09, 2014 | ||||
2014 Omnibus Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares of common stock authorized | 6,000,000 | ||||
Additional shares of common stock authorized | 5,000,000 | ||||
Shares available for future issuance | 0 | ||||
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 | $ 2.3 | ||||
Weighted-average grant date fair value | $ 92.87 | $ 81.53 | $ 87.35 | ||
Shares granted | 21,000 | ||||
Shares of common stock available for grant | 500,000 | ||||
Shares of restricted stock vested | 25,000 | ||||
2007 Plan and 2014 Omnibus Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted-average grant date fair value | $ 81.01 | $ 86.93 | $ 78.49 | ||
Shares granted | 23,705 | ||||
Shares outstanding | 390,000 | 386,000 | |||
Employee Incentive Plan 2007 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unamortized stock-based compensation expense | $ 4.1 | ||||
Shares granted | 0 | ||||
SARs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock appreciation rights expected term | 6 years | 6 years | 6 years 6 months | ||
Unamortized stock-based compensation expense | $ 9.3 | ||||
Unamortized stock-based compensation expense expected recognition period | 2 years 6 months 3 days | ||||
Shares expected to vest | 2,300,000 | ||||
Shares expected to vest, weighted-average exercise price | $ 68.17 | ||||
Shares expected to vest, weighted-average remaining contractual term | 5 years 11 months 8 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 | 2,287,500 | ||||
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 | ||||
Additional shares of common stock authorized | 2,250,000 | ||||
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 | $ 11.5 | ||||
Weighted-average grant date fair value | $ 81.03 | $ 86.88 | $ 80.67 | ||
Shares granted | 223,000 | ||||
Shares of restricted stock vested | 359,000 | ||||
Performance Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance goals attainment period for PSUs awards | 3 years | ||||
Performance Stock Units | Earnings Before Interest Taxes Margin | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage | 50% | ||||
Performance Stock Units | Upon Achievement of Performance Goals | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage | 0% | ||||
Performance Stock Units | Upon Achievement of Performance Goals | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage | 200% | ||||
Nonvested Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unamortized stock-based compensation expense | $ 27.5 | ||||
Weighted-average grant date fair value | $ 81.95 | ||||
Shares granted | 268,000 | ||||
Remaining weighted-average contractual term | 2 years 1 month 17 days | ||||
Shares expected to vest | 1,080,000 | ||||
Shares of restricted stock vested | 432,000 |
Summary of Option and Share-Bas
Summary of Option and Share-Based Payment Activity (Detail) - USD ($) $ / shares in Units, shares in Thousands | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Stock Options And Stock Appreciation Rights | |||
Weighted Average Exercise Price | |||
Beginning balance | $ 63.16 | ||
Options granted | 81.01 | ||
Options exercised | 49.52 | ||
Ending balance | 68.19 | $ 63.16 | |
Exercisable at May 31, 2023 | $ 61.09 | ||
Number of Shares Under Option | |||
Beginning balance | 2,300 | ||
Options granted | 360 | ||
Options exercised | (372) | ||
Ending balance | 2,288 | 2,300 | |
Exercisable at May 31, 2023 | 1,448 | ||
SARs | |||
Number of Shares Under Option | |||
Weighted-average grant-date fair value per SAR | $ 18.09 | $ 16.72 | $ 14.38 |
Fair value of SARS vested | $ 14,190 | $ 13,490 | $ 12,590 |
Intrinsic value of options exercised | 11,260 | 13,770 | 8,800 |
Tax benefit from options exercised | $ 3,292,000 | $ 88,000 | $ 8,821,000 |
Summary of Share-Based Performa
Summary of Share-Based Performance-Earned Restricted Stock and Performance Stock Units Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Performance Earned Restricted Stock Awards and Performance Stock Units | |||
Weighted-Average Grant-Date Fair Value | |||
Beginning balance | $ 77.71 | ||
Weighted-average grant date fair value | 81.03 | $ 86.88 | $ 80.67 |
Shares forfeited | 75.03 | ||
Shares vested | 66.50 | ||
Ending balance | $ 83.17 | $ 77.71 | |
Shares | |||
Beginning balance | 1,110,000 | ||
Shares granted | 223,000 | ||
Shares forfeited | (68,000) | ||
Shares vested | (359,000) | ||
Ending balance | 906,000 | 1,110,000 | |
Unamortized Expense | $ 11,500 | ||
Performance Stock Units | 2020 PSUs | |||
Weighted-Average Grant-Date Fair Value | |||
Weighted-average grant date fair value | $ 78.49 | ||
Shares | |||
Shares granted | 226 | ||
Ending balance | 181 | ||
Performance Stock Units | 2021 PSUs | |||
Weighted-Average Grant-Date Fair Value | |||
Weighted-average grant date fair value | $ 86.93 | ||
Shares | |||
Shares granted | 158 | ||
Ending balance | 137 | ||
Unamortized Expense | $ 4,188 | ||
Performance Stock Units | 2022 PSUs | |||
Weighted-Average Grant-Date Fair Value | |||
Weighted-average grant date fair value | $ 81.01 | ||
Shares | |||
Shares granted | 162 | ||
Ending balance | 156 | ||
Unamortized Expense | $ 5,427 |
Summary of Share-Based Perfor_2
Summary of Share-Based Performance-Earned Restricted Stock and Performance Stock Units Activity (Parenthetical) (Details) | Jul. 18, 2022 | Jul. 21, 2021 |
2021 PSUs | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Unamortized expense recognized weighted average period | 1 year | |
2022 PSUs | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Unamortized expense recognized weighted average period | 2 years |
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, 2023 | May 31, 2022 | May 31, 2021 | |
Weighted Average Grant-Date Fair Value | |||
Beginning balance | $ 77.95 | ||
Shares granted | 92.87 | $ 81.53 | $ 87.35 |
Shares vested | 69.70 | ||
Ending balance | $ 87.75 | $ 77.95 | |
Shares | |||
Beginning balance | 56 | ||
Granted | 21 | ||
Shares vested | (25) | ||
Ending balance | 52 | 56 |
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, 2023 | May 31, 2022 | May 31, 2021 | |
Weighted-Average Grant-Date Fair Value | |||
Beginning Balance | $ 40.08 | ||
Shares granted | 81.01 | $ 86.93 | $ 78.49 |
Shares forfeited | 72.12 | ||
Shares exercised | 64.03 | ||
Ending Balance | $ 41.37 | $ 40.08 | |
Shares | |||
Beginning Balance | 386,000 | ||
Shares granted | 23,705 | ||
Shares forfeited | (7,000) | ||
Shares exercised | (13,000) | ||
Ending Balance | 390,000 | 386,000 |
Summary of Activity for Nonvest
Summary of Activity for Nonvested Restricted Shares (Detail) - Nonvested Restricted Stock shares in Thousands | 12 Months Ended |
May 31, 2023 $ / shares shares | |
Weighted-Average Grant-Date Fair Value | |
Beginning balance | $ / shares | $ 76.38 |
Granted | $ / shares | 81.95 |
Vested | $ / shares | 66.19 |
Forfeited | $ / shares | 79.90 |
Ending balance | $ / shares | $ 81.66 |
Shares | |
Beginning balance | shares | 1,296 |
Granted | shares | 268 |
Vested | shares | (432) |
Forfeited | shares | (54) |
Ending balance | shares | 1,078 |
Summary of Activity for Vested
Summary of Activity for Vested Restricted Shares (Details) - Vested Restricted Stock - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Weighted-average grant date fair value | $ 81.95 | $ 86.68 | $ 80.77 |
Fair value of restricted share vested | $ 28,553 | $ 27,163 | $ 12,505 |
Shares of restricted stock vested | 432 | 441 | 250 |
Intrinsic value of restricted shares vested | $ 33,186 | $ 33,032 | $ 20,670 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | $ 1,983,828 | $ 1,743,025 | $ 1,264,663 |
Ending Balance | 2,143,000 | 1,983,828 | 1,743,025 |
Foreign Currency Translation Adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (395,473) | (300,365) | (440,732) |
Current period comprehensive income (loss) | (71,772) | (98,834) | 148,360 |
Income taxes associated with current period comprehensive (loss) income | 1,870 | 3,726 | (7,993) |
Ending Balance | (465,375) | (395,473) | (300,365) |
Pension And Other Postretirement Benefit Liability Adjustments, Net of Tax | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (153,383) | (190,610) | (277,717) |
Current period comprehensive income (loss) | (12,242) | 31,802 | 80,949 |
Income taxes associated with current period comprehensive (loss) income | 2,785 | (7,763) | (19,395) |
Amounts reclassified from accumulated other comprehensive income (loss) | 18,363 | 17,276 | 33,035 |
Income taxes reclassified into earnings | (4,287) | (4,088) | (7,482) |
Ending Balance | (148,764) | (153,383) | (190,610) |
Unrealized Gain (Loss) On Derivatives, Net of Tax | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | 13,171 | (23,982) | (71) |
Current period comprehensive income (loss) | 60,669 | (43,703) | |
Income taxes associated with current period comprehensive (loss) income | (14,491) | 10,281 | |
Amounts reclassified from accumulated other comprehensive income (loss) | (1,766) | (12,097) | 12,616 |
Income taxes reclassified into earnings | 3,072 | (3,105) | |
Ending Balance | 11,405 | 13,171 | (23,982) |
Unrealized Gain (Loss) On Securities, Net of Tax | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (1,652) | 73 | 1,023 |
Current period comprehensive income (loss) | (482) | (1,785) | (1,052) |
Income taxes associated with current period comprehensive (loss) income | 4 | 3 | (89) |
Amounts reclassified from accumulated other comprehensive income (loss) | (67) | 59 | 268 |
Income taxes reclassified into earnings | (4) | (2) | (77) |
Ending Balance | (2,201) | (1,652) | 73 |
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (537,337) | (514,884) | (717,497) |
Current period comprehensive income (loss) | (84,496) | (8,148) | 184,554 |
Income taxes associated with current period comprehensive (loss) income | 4,659 | (18,525) | (17,196) |
Amounts reclassified from accumulated other comprehensive income (loss) | 16,530 | 5,238 | 45,919 |
Income taxes reclassified into earnings | (4,291) | (1,018) | (10,664) |
Ending Balance | $ (604,935) | $ (537,337) | $ (514,884) |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Numerator and Denominator of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
Numerator for earnings per share: | ||||
Net income attributable to RPM International Inc. stockholders | $ 478,691 | $ 491,481 | $ 502,643 | |
Less: Allocation of earnings and dividends to participating securities | (2,156) | (3,924) | (4,018) | |
Net income available to common shareholders - basic | 476,535 | 487,557 | 498,625 | |
Reverse: Allocation of earnings and dividends to participating securities | 2,156 | 3,924 | ||
Add: Undistributed earnings reallocated to unvested shareholders | 13 | |||
Net income available to common shareholders - diluted | $ 478,691 | $ 491,481 | $ 498,638 | |
Denominator for basic and diluted earnings per share: | ||||
Basic weighted average common shares | 127,507 | 127,948 | 128,334 | |
Average diluted options and awards | 1,309 | 1,632 | 593 | |
Total shares for diluted earnings per share | [1] | 128,816 | 129,580 | 128,927 |
Earnings Per Share of Common Stock Attributable to RPM International Inc. Stockholders: | ||||
Basic Earnings Per Share of Common Stock | $ 3.74 | $ 3.81 | $ 3.89 | |
Method used to calculate basic earnings per share | Two-Class | Two-Class | Two-Class | |
Diluted Earnings Per Share of Common Stock | $ 3.72 | $ 3.79 | $ 3.87 | |
Method used to calculate diluted earnings per share | Treasury | Treasury | Two-Class | |
[1] For the years ended May 31, 2023, 2022 and 2021, approximately 750,000 , 655,000 and 362,016 shares of stock, respectively, granted under stock-based compensation plans were excluded from the calculation of d iluted EPS, as the effect would have been anti-dilutive. |
Earnings Per Share - Reconcil_2
Earnings Per Share - Reconciliation of Numerator and Denominator of Basic and Diluted Earnings Per Share (Parenthetical) (Detail) - shares | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
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 | 750,000 | 655,000 | 362,016 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 15, 2021 | May 31, 2023 | May 31, 2022 | Nov. 30, 2021 | |
Lessee Lease Description [Line Items] | ||||
Lessee, operating lease, option to extend description | Some leases include one or more options to renew, generally at our sole discretion, with renewal terms that can extend the lease term from one to five years or more. | |||
Lessee, operating lease, existence of option to extend | true | |||
Lessee, operating lease, option to terminate description | In addition, certain leases contain termination options, where the rights to terminate are held by either us, the lessor, or both parties. | |||
Lessee, operating lease, existence of option to terminate | true | |||
Net gain sales of assets | $ 28,632 | $ 51,983 | ||
Operating lease, ROU assets | 329,582 | 307,797 | ||
Operating lease, future minimum lease payments | $ 414,351 | |||
Leaseback Agreement | ||||
Lessee Lease Description [Line Items] | ||||
Net gain sales of assets | $ 41,900 | $ 52,000 | ||
Sale of property assets | 49,800 | |||
Operating lease, ROU assets | $ 3,700 | |||
Operating lease, borrowing rate | 1.30% | |||
Operating lease, future minimum lease payments | $ 3,400 | |||
Net proceeds after adjustments and expenses | $ 48,000 | |||
Sale leaseback agreement commencement date | Sep. 15, 2021 | |||
Sale leaseback agreement expiration date | Sep. 14, 2024 | |||
Minimum | ||||
Lessee Lease Description [Line Items] | ||||
Lessee, operating lease, renewal term | 1 year | |||
Maximum | ||||
Lessee Lease Description [Line Items] | ||||
Lessee, operating lease, renewal term | 5 years |
Summary of Lease Costs (Details
Summary of Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Leases [Abstract] | |||
Operating lease expense | $ 78,783 | $ 78,479 | $ 76,581 |
Variable lease expense | 13,550 | 10,795 | 9,292 |
Short-term lease expense | $ 1,960 | $ 2,132 | $ 2,022 |
Summary of Supplemental Cash Fl
Summary of Supplemental Cash Flow, Balance Sheet, and Other Required Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | |
May 31, 2023 | May 31, 2022 | |
Leases [Abstract] | ||
Operating cash outflows from operating leases | $ 74,251 | $ 73,566 |
Leased assets obtained in exchange for operating lease obligations | 90,399 | 79,150 |
Current portion of operating leases within other accrued liabilities | $ 59,590 | $ 58,292 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other accrued liabilities | Other accrued liabilities |
Weighted average remaining lease term for operating leases (in years) | 8 years 6 months | 8 years 6 months |
Weighted average discount rate for operating leases | 3.90% | 3.30% |
Schedule of Future Undiscounted
Schedule of Future Undiscounted Cash Flows and Reconciliation to Lease Liabilities (Detail) $ in Thousands | May 31, 2023 USD ($) |
Leases [Abstract] | |
2024 | $ 71,801 |
2025 | 61,178 |
2026 | 51,608 |
2027 | 44,451 |
2028 | 36,540 |
Thereafter | 148,773 |
Total lease payments | 414,351 |
Less imputed interest | 69,237 |
Total present value of lease liabilities | $ 345,114 |
(Gain) on Sales of Assets, Net
(Gain) on Sales of Assets, Net - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 15, 2021 | May 31, 2023 | May 31, 2022 | Nov. 30, 2021 | |
Sale Leaseback Transaction [Line Items] | ||||
Net gain sales of assets | $ 28,632 | $ 51,983 | ||
Operating lease, future minimum lease payments | 414,351 | |||
Operating lease, ROU assets | $ 329,582 | 307,797 | ||
Leaseback Agreement | ||||
Sale Leaseback Transaction [Line Items] | ||||
Net gain sales of assets | $ 41,900 | $ 52,000 | ||
Sale of property assets | 49,800 | |||
Net proceeds after adjustments and expenses | $ 48,000 | |||
Sale leaseback agreement commencement date | Sep. 15, 2021 | |||
Sale leaseback agreement expiration date | Sep. 14, 2024 | |||
Operating lease, future minimum lease payments | $ 3,400 | |||
Operating lease, borrowing rate | 1.30% | |||
Operating lease, ROU assets | $ 3,700 |
Pension Plans - Additional Info
Pension Plans - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2024 | |
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Estimated benefits payable in the first year | $ 64,200 | |||
Estimated benefits payable in the second year | 69,500 | |||
Estimated benefits payable in the third year | 74,600 | |||
Estimated benefits payable in the fourth year | 76,700 | |||
Estimated benefits payable in the fifth year | 81,800 | |||
Estimated benefits payable in the years thereafter | 416,700 | |||
Matching contribution charged to income | $ 27,600 | $ 24,700 | $ 21,700 | |
Pension Benefits | ||||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Average compensation with accrued benefits vesting period | 5 years | |||
U.S. Plans | Pension Benefits | ||||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Contribution to retirement plans in the next fiscal year | $ 700 | |||
Contribution to retirement plan in the current | 63,561 | 65,604 | ||
Required contribution to retirement plans in the current fiscal year | 1,300 | |||
Non-U.S. Plans | Pension Benefits | ||||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Contribution to retirement plans in the next fiscal year | $ 5,700 | |||
Contribution to retirement plan in the current | $ 6,647 | $ 4,626 |
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, 2023 | May 31, 2022 | May 31, 2021 | |
U.S. Plans | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | $ 43,558 | $ 47,655 | $ 44,520 |
Interest cost | 28,692 | 15,366 | 15,223 |
Expected return on plan assets | (38,144) | (41,544) | (33,115) |
Prior service cost (credit) | 1 | 5 | 8 |
Net actuarial losses recognized | 17,948 | 16,900 | 30,005 |
Curtailment/settlement (gains) losses | (3) | 16 | |
Net Pension Cost | 52,052 | 38,398 | 56,641 |
Non-U.S. Plans | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | 3,633 | 5,023 | 6,355 |
Interest cost | 6,619 | 4,948 | 5,308 |
Expected return on plan assets | (6,581) | (7,691) | (7,286) |
Prior service cost (credit) | (116) | (139) | (150) |
Net actuarial losses recognized | 473 | 465 | 2,377 |
Curtailment/settlement (gains) losses | 188 | 7 | 356 |
Net Pension Cost | $ 4,216 | $ 2,613 | $ 6,960 |
Changes in Benefits Obligations
Changes in Benefits Obligations and Plan Assets, Pension (Detail) - Pension Benefits - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligation at beginning of year | $ 703,735 | $ 822,073 | |
Service cost | 43,558 | 47,655 | $ 44,520 |
Interest cost | 28,692 | 15,366 | 15,223 |
Benefits paid | (44,604) | (59,795) | |
Plan amendments | 4 | ||
Plan settlements/curtailments | (137) | (190) | |
Actuarial (gains)/losses | (34,075) | (121,374) | |
Benefit Obligation at End of Year | 697,173 | 703,735 | 822,073 |
Balance at Beginning of Period | 616,960 | 672,377 | |
Actual (loss) on plan assets | (4,294) | (61,036) | |
Employer contributions | 63,561 | 65,604 | |
Benefits paid | (44,604) | (59,795) | |
Plan settlements/curtailments | (137) | (190) | |
Balance at End of Period | 631,486 | 616,960 | 672,377 |
(Deficit)/Surplus of plan assets versus benefit obligations at end of year | (65,687) | (86,775) | |
Net Amount Recognized | (65,687) | (86,775) | |
Accumulated Benefit Obligation | 598,094 | 610,433 | |
Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligation at beginning of year | 182,534 | 232,028 | |
Service cost | 3,633 | 5,023 | 6,355 |
Interest cost | 6,619 | 4,948 | 5,308 |
Benefits paid | (8,676) | (7,657) | |
Participant contributions | 1,221 | 1,138 | |
Plan amendments | (97) | 293 | |
Plan settlements/curtailments | (2,852) | (1,330) | |
Actuarial (gains)/losses | (16,004) | (34,638) | |
Premiums paid | (108) | (107) | |
Currency exchange rate changes | (7,458) | (17,164) | |
Benefit Obligation at End of Year | 158,812 | 182,534 | 232,028 |
Balance at Beginning of Period | 193,375 | 239,853 | |
Actual (loss) on plan assets | (15,239) | (25,430) | |
Employer contributions | 6,647 | 4,626 | |
Participant contributions | 1,221 | 1,138 | |
Benefits paid | (8,676) | (7,657) | |
Premiums paid | (108) | (107) | |
Plan settlements/curtailments | (2,852) | (1,330) | |
Currency exchange rate changes | (8,248) | (17,718) | |
Balance at End of Period | 166,120 | 193,375 | $ 239,853 |
(Deficit)/Surplus of plan assets versus benefit obligations at end of year | 7,308 | 10,841 | |
Net Amount Recognized | 7,308 | 10,841 | |
Accumulated Benefit Obligation | $ 148,635 | $ 172,141 |
Amounts Recognized in Consolida
Amounts Recognized in Consolidated Balance Sheet, Pension (Detail) - Pension Benefits - USD ($) $ in Thousands | May 31, 2023 | May 31, 2022 |
U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent assets | $ 279 | $ 77 |
Current liabilities | (8) | (8) |
Noncurrent liabilities | (65,958) | (86,844) |
Net Amount Recognized | (65,687) | (86,775) |
Non-U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent assets | 15,641 | 22,399 |
Current liabilities | (659) | (443) |
Noncurrent liabilities | (7,674) | (11,115) |
Net Amount Recognized | $ 7,308 | $ 10,841 |
Relationship between Plans Bene
Relationship between Plans Benefit Obligations and Assets (Detail) - Pension Benefits - USD ($) $ in Thousands | May 31, 2023 | May 31, 2022 |
U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plans with projected benefit obligations in excess of plan assets, benefit obligation | $ 696,280 | $ 702,511 |
Plans with accumulated benefit obligations in excess of plan assets, benefit obligation | 44 | 10,542 |
Plans with assets in excess of projected benefit obligations | 893 | 1,224 |
Plans with assets in excess of accumulated benefit obligations | 598,050 | 599,891 |
Plans with projected benefit obligations in excess of plan assets, plan asset | 630,315 | 615,659 |
Plans with accumulated benefit obligations in excess of plan assets, plan asset | 10,024 | |
Plans with assets in excess of projected benefit obligations, plan asset | 1,171 | 1,301 |
Plans with assets in excess of accumulated benefit obligations, plan asset | 631,486 | 606,936 |
Non-U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plans with projected benefit obligations in excess of plan assets, benefit obligation | 26,918 | 36,607 |
Plans with accumulated benefit obligations in excess of plan assets, benefit obligation | 24,837 | 32,808 |
Plans with assets in excess of projected benefit obligations | 131,894 | 145,927 |
Plans with assets in excess of accumulated benefit obligations | 123,798 | 139,333 |
Plans with projected benefit obligations in excess of plan assets, plan asset | 18,585 | 25,049 |
Plans with accumulated benefit obligations in excess of plan assets, plan asset | 17,839 | 22,844 |
Plans with assets in excess of projected benefit obligations, plan asset | 147,535 | 168,326 |
Plans with assets in excess of accumulated benefit obligations, plan asset | $ 148,281 | $ 170,531 |
Pretax Net Actuarial Loss and P
Pretax Net Actuarial Loss and Prior Service (Cost) Credits Recognized in Accumulated Other Comprehensive Income (Loss) not Affecting Retained Earnings, Pension (Detail) - Pension Benefits - USD ($) $ in Thousands | May 31, 2023 | May 31, 2022 |
U.S. Plans | ||
Schedule of Net Periodic Benefit Costs and Assumptions for Defined Benefit Postretirement Plans [Line Items] | ||
Net actuarial loss | $ (205,025) | $ (214,607) |
Prior service (costs) credit | (10) | (7) |
Total recognized in accumulated other comprehensive income not affecting retained earnings | (205,035) | (214,614) |
Non-U.S. Plans | ||
Schedule of Net Periodic Benefit Costs and Assumptions for Defined Benefit Postretirement Plans [Line Items] | ||
Net actuarial loss | (29,764) | (25,984) |
Prior service (costs) credit | 530 | 518 |
Total recognized in accumulated other comprehensive income not affecting retained earnings | $ (29,234) | $ (25,466) |
Changes Recognized in Other Com
Changes Recognized in Other Comprehensive Income, Pension (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Amounts recognized as a component of net periodic benefit cost: | |||
Total recognized in other comprehensive (income) loss | $ (4,619) | $ (37,227) | $ (87,107) |
Pension Benefits | U.S. Plans | |||
Changes in plan assets and benefit obligations recognized in other comprehensive loss (income): | |||
Prior service cost | 4 | ||
Net loss (gain) arising during the year | 8,363 | (18,794) | |
Amounts recognized as a component of net periodic benefit cost: | |||
Amortization or curtailment recognition of prior service (cost) benefit | (1) | (5) | |
Amortization or settlement recognition of net (loss) | (17,945) | (16,916) | |
Total recognized in other comprehensive (income) loss | (9,579) | (35,715) | |
Pension Benefits | Non-U.S. Plans | |||
Changes in plan assets and benefit obligations recognized in other comprehensive loss (income): | |||
Prior service cost | (98) | 294 | |
Net loss (gain) arising during the year | 5,816 | (1,517) | |
Effect of exchange rates on amounts included in AOCI | (1,405) | (1,999) | |
Amounts recognized as a component of net periodic benefit cost: | |||
Amortization or curtailment recognition of prior service (cost) benefit | 115 | 139 | |
Amortization or settlement recognition of net (loss) | (660) | (473) | |
Total recognized in other comprehensive (income) loss | $ 3,768 | $ (3,556) |
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, 2023 | May 31, 2022 | May 31, 2021 | |
Domestic | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Year-End Benefit Obligations, Discount rate | 5.26% | 4.43% | |
Year-End Benefit Obligations, Rate of compensation increase | 3.39% | 3.21% | |
Net Periodic Pension Cost, Discount rate | 4.43% | 2.76% | 2.78% |
Net Periodic Pension Cost, Expected return on plan assets | 6.50% | 6.50% | 7% |
Net Periodic Pension Cost, Rate of compensation increase | 3.21% | 3.19% | 3.19% |
Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Year-End Benefit Obligations, Discount rate | 4.88% | 4.02% | |
Year-End Benefit Obligations, Rate of compensation increase | 2.97% | 2.94% | |
Net Periodic Pension Cost, Discount rate | 4.02% | 2.72% | 2.49% |
Net Periodic Pension Cost, Expected return on plan assets | 3.58% | 3.46% | 3.30% |
Net Periodic Pension Cost, Rate of compensation increase | 2.94% | 2.91% | 2.86% |
Weighted-Average Actual Target
Weighted-Average Actual Target Allocation of Plan Assets (Detail) - Pension Benefits - USD ($) $ in Thousands | May 31, 2023 | May 31, 2022 | May 31, 2021 |
U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation | 100% | ||
Actual Asset Allocation | $ 631,486 | $ 616,960 | $ 672,377 |
Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation | 100% | ||
Actual Asset Allocation | $ 166,120 | 193,375 | $ 239,853 |
Equity securities | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation | 55% | ||
Actual Asset Allocation | $ 340,100 | 326,200 | |
Equity securities | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation | 40% | ||
Actual Asset Allocation | $ 61,800 | 69,200 | |
Fixed income securities | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation | 20% | ||
Actual Asset Allocation | $ 129,200 | 117,000 | |
Fixed income securities | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation | 48% | ||
Actual Asset Allocation | $ 81,500 | 101,100 | |
Multi-class | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation | 20% | ||
Actual Asset Allocation | $ 125,300 | 136,600 | |
Cash | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation | 5% | ||
Actual Asset Allocation | $ 36,600 | 37,000 | |
Cash | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual Asset Allocation | 100 | 100 | |
Real Estate | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual Asset Allocation | $ 300 | 200 | |
Real Estate | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation | 12% | ||
Actual Asset Allocation | $ 22,700 | $ 23,000 |
Pension Plan Assets Categorized
Pension Plan Assets Categorized Using Fair Value Hierarchy (Detail) - Pension Benefits - USD ($) $ in Thousands | May 31, 2023 | May 31, 2022 | May 31, 2021 | |
U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Pension plans with Plan Assets | $ 631,486 | $ 616,960 | $ 672,377 | |
U.S. Plans | U.S. Treasury and other government | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Pension plans with Plan Assets | 49,297 | 34,902 | ||
U.S. Plans | State and Municipal Debt Obligations | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Pension plans with Plan Assets | 450 | 576 | ||
U.S. Plans | Foreign Covered Bonds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Pension plans with Plan Assets | 690 | 1,150 | ||
U.S. Plans | Mortgage-backed securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Pension plans with Plan Assets | 8,515 | 10,254 | ||
U.S. Plans | Corporate bonds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Pension plans with Plan Assets | 17,376 | 23,883 | ||
U.S. Plans | Large Cap Equity Securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Pension plans with Plan Assets | 35,467 | 30,295 | ||
U.S. Plans | Equity Mutual Funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Pension plans with Plan Assets | 304,590 | 295,905 | ||
U.S. Plans | Mutal Funds - Multi-class | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Pension plans with Plan Assets | 125,345 | 136,583 | ||
U.S. Plans | Debt Mutual Funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Pension plans with Plan Assets | 2,553 | 16,368 | ||
U.S. Plans | Cash and Cash Equivalents | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Pension plans with Plan Assets | 36,573 | 37,004 | ||
U.S. Plans | Limited Partner | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Pension plans with Plan Assets | 170 | 166 | ||
U.S. Plans | Futures contracts | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Pension plans with Plan Assets | 112 | |||
U.S. Plans | Investments Measured at NAV | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Pension plans with Plan Assets | [1] | 50,348 | 29,874 | |
Non-U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Pension plans with Plan Assets | 166,120 | 193,375 | 239,853 | |
Non-U.S. Plans | Foreign Covered Bonds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Pension plans with Plan Assets | 774 | 920 | ||
Non-U.S. Plans | Cash and Cash Equivalents | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Pension plans with Plan Assets | 146 | 109 | ||
Non-U.S. Plans | Pooled Equity Securities Funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Pension plans with Plan Assets | 61,827 | 68,067 | ||
Non-U.S. Plans | Pooled Funds Fixed Income Securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Pension plans with Plan Assets | 80,650 | 100,151 | ||
Non-U.S. Plans | Insurance Contracts | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Pension plans with Plan Assets | 19,136 | 23,013 | ||
Non-U.S. Plans | Mutual funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Pension plans with Plan Assets | 3,587 | 1,115 | ||
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 | 72,040 | 67,299 | ||
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 | 35,467 | 30,295 | ||
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 | 36,573 | 37,004 | ||
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 | 146 | 109 | ||
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 | 146 | 109 | ||
Significant Other Observable Inputs (Level 2) | U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Pension plans with Plan Assets | 508,816 | 519,621 | ||
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 | 49,297 | 34,902 | ||
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 | 450 | 576 | ||
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 | 690 | 1,150 | ||
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 | 8,515 | 10,254 | ||
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 | 17,376 | 23,883 | ||
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 | 304,590 | 295,905 | ||
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 | 125,345 | 136,583 | ||
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 | 2,553 | 16,368 | ||
Significant Other Observable Inputs (Level 2) | Non-U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Pension plans with Plan Assets | 146,838 | 170,253 | ||
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 | 774 | 920 | ||
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 | 61,827 | 68,067 | ||
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 | 80,650 | 100,151 | ||
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 | 3,587 | 1,115 | ||
Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Pension plans with Plan Assets | 19,418 | 23,179 | $ 28,398 | |
Significant Unobservable Inputs (Level 3) | U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Pension plans with Plan Assets | 282 | 166 | ||
Significant Unobservable Inputs (Level 3) | U.S. Plans | Limited Partner | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Pension plans with Plan Assets | 170 | 166 | ||
Significant Unobservable Inputs (Level 3) | U.S. Plans | Futures contracts | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Pension plans with Plan Assets | 112 | |||
Significant Unobservable Inputs (Level 3) | Non-U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Pension plans with Plan Assets | 19,136 | 23,013 | ||
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 | $ 19,136 | $ 23,013 | ||
[1] In accordance with Subtopic 820-10, Fair Value Measurements and Disclosures, certain investments that are measured at fair value using the net asset value ("NAV") per share practical expedient have not been classified in the fair value hierarchy. The investments that are measured at fair value using NAV per share included in the table above are intended to permit reconciliation of the fair value hierarchy to the fair value of the plan assets at the end of each period. |
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, 2023 | May 31, 2022 | ||
Defined Benefit Plan Disclosure [Line Items] | |||
Balance at Beginning of Period | $ 23,179 | $ 28,398 | |
Actual Return on Plan Assets For Assets Still Held at Reporting Date | (2,399) | (1,009) | |
Settlements | [1] | (1,362) | (4,210) |
Balance at End of Period | $ 19,418 | $ 23,179 | |
[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, 2023 | May 31, 2022 | May 31, 2021 | |
Domestic | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Interest cost | $ 84 | $ 41 | $ 74 |
Prior service (credit) | (121) | (161) | (167) |
Net actuarial losses (gains) | 43 | 61 | 42 |
Net Pension Cost | 6 | (59) | (51) |
Non-U.S. Plans | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | 1,951 | 1,623 | 1,959 |
Interest cost | 1,374 | 1,124 | 1,286 |
Net actuarial losses (gains) | (51) | 121 | 590 |
Net Pension Cost | $ 3,274 | $ 2,868 | $ 3,835 |
Changes in Benefit Obligation (
Changes in Benefit Obligation (Detail) - Postretirement Benefits - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Domestic | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Benefit obligation at beginning of year | $ 2,260 | $ 2,506 | |
Interest cost | 84 | 41 | $ 74 |
Benefit payments | (207) | (164) | |
Actuarial (gains) | (369) | (123) | |
Benefit Obligation at End of Year | 1,768 | 2,260 | 2,506 |
Non-U.S. Plans | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Benefit obligation at beginning of year | 30,645 | 39,974 | |
Service cost | 1,951 | 1,623 | 1,959 |
Interest cost | 1,374 | 1,124 | 1,286 |
Benefit payments | (557) | (875) | |
Actuarial (gains) | (276) | (9,240) | |
Currency exchange rate changes | (2,100) | (1,961) | |
Benefit Obligation at End of Year | $ 31,037 | $ 30,645 | $ 39,974 |
Amounts Recognized in Consoli_2
Amounts Recognized in Consolidated Balance Sheets, Postretirement (Detail) - Postretirement Benefits - USD ($) $ in Thousands | May 31, 2023 | May 31, 2022 |
Domestic | ||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Current liabilities | $ (207) | $ (252) |
Noncurrent liabilities | (1,561) | (2,008) |
Net Amount Recognized | (1,768) | (2,260) |
Non-U.S. Plans | ||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Current liabilities | (989) | (968) |
Noncurrent liabilities | (30,048) | (29,677) |
Net Amount Recognized | $ (31,037) | $ (30,645) |
Pretax Net Actuarial (Loss) Gai
Pretax Net Actuarial (Loss) Gain, 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, 2023 | May 31, 2022 |
Domestic | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Net actuarial gain (loss) | $ (99) | $ (314) |
Prior service credit | 121 | |
Total recognized in accumulated other comprehensive income not affecting retained earnings | (99) | (193) |
Non-U.S. Plans | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Net actuarial gain (loss) | 3,838 | 3,878 |
Total recognized in accumulated other comprehensive income not affecting retained earnings | $ 3,838 | $ 3,878 |
Changes Recognized in Other C_2
Changes Recognized in Other Comprehensive loss (income), Postretirement Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Amounts recognized as a component of net periodic benefit cost: | |||
Total recognized in other comprehensive (income) loss | $ (4,619) | $ (37,227) | $ (87,107) |
Postretirement Benefits | Domestic | |||
Changes in plan assets and benefit obligations recognized in other comprehensive loss (income): | |||
Net loss (gain) arising during the year | (369) | (123) | |
Amounts recognized as a component of net periodic benefit cost: | |||
Amortization or curtailment recognition of prior service credit | 121 | 160 | |
Amortization or settlement recognition of net (loss) gain | (44) | (60) | |
Total recognized in other comprehensive (income) loss | (292) | (23) | |
Postretirement Benefits | Non-U.S. Plans | |||
Changes in plan assets and benefit obligations recognized in other comprehensive loss (income): | |||
Net loss (gain) arising during the year | (276) | (9,240) | |
Effect of exchange rates on amounts included in AOCI | (265) | (418) | |
Amounts recognized as a component of net periodic benefit cost: | |||
Amortization or settlement recognition of net (loss) gain | (51) | (121) | |
Total recognized in other comprehensive (income) loss | $ (40) | $ (9,779) |
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, 2023 | May 31, 2022 | May 31, 2021 | |
Domestic | |||
Health Care Cost Trend Rates Assumptions [Line Items] | |||
Year-End Benefit Obligations, Discount rate | 5.20% | 4.36% | |
Year-End Benefit Obligations, Current healthcare cost trend rate | 6% | 6.23% | |
Year-End Benefit Obligations, Ultimate healthcare cost trend rate | 4.03% | 4.03% | |
Year-End Benefit Obligation, Year ultimate healthcare cost trend rate will be realized | 2045 | 2045 | |
Net Periodic Postretirement Cost, Discount rate | 4.36% | 2.47% | 2.44% |
Net Periodic Postretirement Cost, Current healthcare cost trend rate | 6.23% | 6.07% | 6.68% |
Net Periodic Postretirement Cost, Ultimate healthcare cost trend rate | 4.03% | 4.36% | 4.36% |
Net Periodic Postretirement Cost, Year ultimate healthcare cost trend rate will be realized | 2045 | 2037 | 2037 |
Non-U.S. Plans | |||
Health Care Cost Trend Rates Assumptions [Line Items] | |||
Year-End Benefit Obligations, Discount rate | 5.10% | 5.13% | |
Year-End Benefit Obligations, Current healthcare cost trend rate | 5.53% | 5.58% | |
Year-End Benefit Obligations, Ultimate healthcare cost trend rate | 3.70% | 3.70% | |
Year-End Benefit Obligation, Year ultimate healthcare cost trend rate will be realized | 2040 | 2040 | |
Net Periodic Postretirement Cost, Discount rate | 5.13% | 3.51% | 3.32% |
Net Periodic Postretirement Cost, Current healthcare cost trend rate | 5.58% | 5.68% | 5.73% |
Net Periodic Postretirement Cost, Ultimate healthcare cost trend rate | 3.70% | 3.70% | 3.70% |
Net Periodic Postretirement Cost, Year ultimate healthcare cost trend rate will be realized | 2040 | 2040 | 2040 |
Postretirement Benefits - Addit
Postretirement Benefits - Additional Information (Detail) $ in Millions | May 31, 2023 USD ($) |
Schedule of Pension and Other Postretirement Benefits Expected Benefit Payments [Line Items] | |
Estimated benefits payable in the first year | $ 64.2 |
Estimated benefits payable in the second year | 69.5 |
Estimated benefits payable in the third year | 74.6 |
Estimated benefits payable in the fourth year | 76.7 |
Estimated benefits payable in the fifth year | 81.8 |
Estimated benefits payable in the years thereafter | 416.7 |
Postretirement Benefits | |
Schedule of Pension and Other Postretirement Benefits Expected Benefit Payments [Line Items] | |
Estimated benefits payable in the years thereafter | 9.4 |
Minimum | Postretirement Benefits | |
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 | Postretirement Benefits | |
Schedule of Pension and Other Postretirement Benefits Expected Benefit Payments [Line Items] | |
Estimated benefits payable in the first year | 1.6 |
Estimated benefits payable in the second year | 1.6 |
Estimated benefits payable in the third year | 1.6 |
Estimated benefits payable in the fourth year | 1.6 |
Estimated benefits payable in the fifth year | $ 1.6 |
Accrued Loss Reserves (Detail)
Accrued Loss Reserves (Detail) - USD ($) $ in Thousands | May 31, 2023 | May 31, 2022 |
Schedule Of Accrued Liabilities [Line Items] | ||
Accrued losses | $ 26,470 | $ 24,508 |
Accrued Loss Reserves - Noncurrent | 32,350 | 35,935 |
Accrued product liability and other loss reserves | ||
Schedule Of Accrued Liabilities [Line Items] | ||
Accrued losses | 16,995 | 16,003 |
Accrued Loss Reserves - Noncurrent | 22,849 | 26,226 |
Accrued warranty reserves | ||
Schedule Of Accrued Liabilities [Line Items] | ||
Accrued losses | 8,448 | 7,450 |
Accrued Loss Reserves - Noncurrent | 3,328 | 3,455 |
Accrued environmental reserves | ||
Schedule Of Accrued Liabilities [Line Items] | ||
Accrued losses | 1,027 | 1,055 |
Accrued Loss Reserves - Noncurrent | $ 6,173 | $ 6,254 |
Contingencies and Accrued Los_3
Contingencies and Accrued Losses - Changes in Accrued Warranty Balances (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
Commitments and Contingencies Disclosure [Abstract] | ||||
Beginning Balance | $ 10,905 | $ 13,175 | $ 11,106 | |
Deductions | [1] | (27,851) | (26,332) | (25,817) |
Provision charged to expense | 28,722 | 24,062 | 27,886 | |
Ending Balance | $ 11,776 | $ 10,905 | $ 13,175 | |
[1] Primarily claims paid during the year. |
Contingencies and Accrued Los_4
Contingencies and Accrued Losses - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Dec. 10, 2021 | Feb. 28, 2023 | May 31, 2023 | May 31, 2022 | |
Loss Contingencies [Line Items] | ||||
New jury awarded damages value to distributor | $ 6,000 | |||
Accrued losses | $ 26,470 | $ 24,508 | ||
Maximum range of reasonably possible loss | $ 6,000 | |||
Gain on business interruption insurance recovery | $ 20,000 | |||
Gain on Business Interruption Insurance Recovery, Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling, General and Administrative Expense | |||
Subsidiary's Appeal, Including Available Contractual Arguments | Minimum | ||||
Loss Contingencies [Line Items] | ||||
Accrued losses | 2,600 | |||
Subsidiary's Appeal, Including Available Contractual Arguments | Maximum | ||||
Loss Contingencies [Line Items] | ||||
Accrued losses | $ 6,000 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) $ in Thousands | 12 Months Ended | |
May 31, 2023 USD ($) Segment | May 31, 2022 USD ($) Segment | |
Disaggregation Of Revenue [Line Items] | ||
Number of reportable segments | Segment | 4 | 4 |
Revenue performance obligation description of payment terms | Payment terms and conditions vary by contract type, although our customers’ payment terms generally include a requirement to pay within 30 to 60 days of fulfilling our performance obligations. | |
Revenue, Practical Expedient, Financing Component [true false] | false | |
Increase (decrease) in net contract assets | $ (5,504) | |
Contract liabilities, revenue recognized | 26,600 | $ 24,500 |
Long-term deferred revenue | $ 76,600 | $ 62,500 |
Revenue - Summary of Trade Acco
Revenue - Summary of Trade Accounts Receivable Net of Allowances and Net Contract Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
May 31, 2023 | May 31, 2022 | |
Disaggregation Of Revenue [Line Items] | ||
Trade accounts receivable, less allowances | $ 1,503,040 | $ 1,432,632 |
Contract assets | 49,188 | 57,234 |
Contract liabilities - short-term | (42,396) | (44,938) |
Net Contract Assets | 6,792 | $ 12,296 |
Change in Contract with Customer, Asset and Liability [Abstract] | ||
Change in trade accounts receivable, less allowances | 70,408 | |
Change in contract assets | (8,046) | |
Change in Net Contract Assets (Liabilities) | $ (5,504) | |
Percentage of change in trade accounts receivable, less allowances | 4.90% | |
Percentage of change in contract assets | (14.10%) | |
Percentage of change in Net Contract Assets/(Liabilities) | (44.80%) | |
Short-term | ||
Change in Contract with Customer, Asset and Liability [Abstract] | ||
Change in contract liabilities | $ 2,542 | |
Percentage of change in contract liabilities | (5.70%) |
Revenue - Summary of Activity f
Revenue - Summary of Activity for Allowance for Credit Losses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Accounts receivable, allowance for credit loss [Roll Forward] | |||
Beginning balance | $ 46,669 | ||
Bad debt provision | 13,557 | $ 4,300 | $ 10,000 |
Uncollectible accounts written off, net of recoveries | (9,780) | ||
Translation adjustments | (964) | ||
Ending balance | $ 49,482 | $ 46,669 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) - Segment | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | 4 | 4 | |
Number of operating segments | 4 | ||
Consumer Segment | Sales | Customer Concentration Risk | Home Depot | |||
Segment Reporting Information [Line Items] | |||
Percentage of net sales | 23% | 25% | 26% |
Maximum | Sales | Customer Concentration Risk | Home Depot | |||
Segment Reporting Information [Line Items] | |||
Percentage of net sales | 10% | 10% | 10% |
Segment Information - Summary o
Segment Information - Summary of Disaggregation of Revenues by Geography and Results of Reportable Segments (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
Segment Reporting Information [Line Items] | ||||
Net Sales | [1] | $ 7,256,414 | $ 6,707,728 | $ 6,106,288 |
Income (Loss) Before Income Taxes | 649,382 | 606,799 | 668,438 | |
Identifiable Assets | 6,782,004 | 6,707,706 | 6,252,969 | |
Capital Expenditures | 253,511 | 219,965 | 159,441 | |
Depreciation and Amortization | 154,949 | 153,074 | 146,857 | |
Operating Segments | CPG Segment | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | [1] | 2,608,872 | 2,486,486 | 2,076,565 |
Income (Loss) Before Income Taxes | 309,683 | 396,509 | 291,773 | |
Identifiable Assets | 2,297,862 | 2,160,071 | 1,815,303 | |
Capital Expenditures | 110,777 | 93,327 | 65,830 | |
Depreciation and Amortization | 49,993 | 48,009 | 45,079 | |
Operating Segments | PCG Segment | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | [1] | 1,333,567 | 1,188,379 | 1,028,456 |
Income (Loss) Before Income Taxes | 133,757 | 139,068 | 90,687 | |
Identifiable Assets | 1,118,360 | 1,115,780 | 1,051,334 | |
Capital Expenditures | 29,454 | 28,887 | 19,413 | |
Depreciation and Amortization | 23,064 | 22,287 | 22,633 | |
Operating Segments | Consumer Segment | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | [1] | 2,514,770 | 2,242,047 | 2,295,277 |
Income (Loss) Before Income Taxes | 378,157 | 175,084 | 354,789 | |
Identifiable Assets | 2,384,782 | 2,405,764 | 2,386,703 | |
Capital Expenditures | 61,500 | 70,227 | 54,986 | |
Depreciation and Amortization | 52,081 | 50,857 | 47,763 | |
Operating Segments | SPG Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | [1] | 799,205 | 790,816 | 705,990 |
Income (Loss) Before Income Taxes | 103,279 | 121,937 | 108,242 | |
Identifiable Assets | 804,762 | 839,419 | 772,540 | |
Capital Expenditures | 49,801 | 26,939 | 18,989 | |
Depreciation and Amortization | 24,897 | 26,718 | 26,017 | |
Corporate/Other | ||||
Segment Reporting Information [Line Items] | ||||
Income (Loss) Before Income Taxes | (275,494) | (225,799) | (177,053) | |
Identifiable Assets | 176,238 | 186,672 | 227,089 | |
Capital Expenditures | 1,979 | 585 | 223 | |
Depreciation and Amortization | $ 4,914 | $ 5,203 | $ 5,365 | |
[1] It is not practicable to obtain the information needed to disclose revenues attributable to each of our product lines. |
Segment Information - Net Sales
Segment Information - Net Sales and Long Lived Assets by Regions (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
Segment Reporting Information [Line Items] | ||||
Net Sales | [1] | $ 7,256,414 | $ 6,707,728 | $ 6,106,288 |
Long-Lived Assets | [2] | 3,582,366 | 3,536,983 | 3,444,161 |
Domestic | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | [1] | 5,191,928 | 4,640,248 | 4,161,069 |
Long-Lived Assets | [2] | 2,551,717 | 2,533,568 | 2,325,365 |
Foreign | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | [1] | 2,064,486 | 2,067,480 | 1,945,219 |
Long-Lived Assets | [2] | 1,030,649 | 1,003,415 | 1,118,796 |
Foreign | Canada | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | [1] | 512,182 | 493,258 | 440,656 |
Long-Lived Assets | [2] | 244,182 | 223,793 | 235,810 |
Foreign | Europe | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | [1] | 996,754 | 1,066,173 | 1,062,888 |
Long-Lived Assets | [2] | 357,359 | 324,001 | 394,168 |
Foreign | United Kingdom | ||||
Segment Reporting Information [Line Items] | ||||
Long-Lived Assets | [2] | 245,411 | 259,956 | 290,078 |
Foreign | Latin America | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | [1] | 291,503 | 264,639 | 218,664 |
Foreign | Asia Pacific | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | [1] | 173,983 | 159,687 | 154,079 |
Foreign | Other Foreign | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | [1] | 90,064 | 83,723 | 68,932 |
Long-Lived Assets | [2] | 183,697 | 195,665 | 198,740 |
Operating Segments | CPG Segment | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | [1] | 2,608,872 | 2,486,486 | 2,076,565 |
Operating Segments | CPG Segment | Domestic | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | [1] | 1,572,060 | 1,423,473 | 1,135,341 |
Operating Segments | CPG Segment | Foreign | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | [1] | 1,036,812 | 1,063,013 | 941,224 |
Operating Segments | CPG Segment | Foreign | Canada | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | [1] | 243,608 | 265,933 | 208,289 |
Operating Segments | CPG Segment | Foreign | Europe | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | [1] | 469,064 | 509,891 | 481,244 |
Operating Segments | CPG Segment | Foreign | Latin America | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | [1] | 224,073 | 203,135 | 159,197 |
Operating Segments | CPG Segment | Foreign | Asia Pacific | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | [1] | 100,067 | 83,989 | 79,413 |
Operating Segments | CPG Segment | Foreign | Other Foreign | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | [1] | 65 | 13,081 | |
Operating Segments | PCG Segment | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | [1] | 1,333,567 | 1,188,379 | 1,028,456 |
Operating Segments | PCG Segment | Domestic | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | [1] | 861,190 | 739,731 | 611,808 |
Operating Segments | PCG Segment | Foreign | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | [1] | 472,377 | 448,648 | 416,648 |
Operating Segments | PCG Segment | Foreign | Canada | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | [1] | 85,812 | 76,085 | 69,754 |
Operating Segments | PCG Segment | Foreign | Europe | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | [1] | 233,872 | 235,678 | 242,102 |
Operating Segments | PCG Segment | Foreign | Latin America | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | [1] | 39,395 | 29,792 | 26,283 |
Operating Segments | PCG Segment | Foreign | Asia Pacific | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | [1] | 23,234 | 23,435 | 22,658 |
Operating Segments | PCG Segment | Foreign | Other Foreign | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | [1] | 90,064 | 83,658 | 55,851 |
Operating Segments | Consumer Segment | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | [1] | 2,514,770 | 2,242,047 | 2,295,277 |
Operating Segments | Consumer Segment | Domestic | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | [1] | 2,078,519 | 1,829,384 | 1,832,826 |
Operating Segments | Consumer Segment | Foreign | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | [1] | 436,251 | 412,663 | 462,451 |
Operating Segments | Consumer Segment | Foreign | Canada | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | [1] | 178,678 | 144,032 | 153,631 |
Operating Segments | Consumer Segment | Foreign | Europe | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | [1] | 212,558 | 221,280 | 257,372 |
Operating Segments | Consumer Segment | Foreign | Latin America | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | [1] | 26,315 | 29,940 | 31,358 |
Operating Segments | Consumer Segment | Foreign | Asia Pacific | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | [1] | 18,700 | 17,411 | 20,090 |
Operating Segments | SPG Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | [1] | 799,205 | 790,816 | 705,990 |
Operating Segments | SPG Segments | Domestic | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | [1] | 680,159 | 647,660 | 581,094 |
Operating Segments | SPG Segments | Foreign | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | [1] | 119,046 | 143,156 | 124,896 |
Operating Segments | SPG Segments | Foreign | Canada | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | [1] | 4,084 | 7,208 | 8,982 |
Operating Segments | SPG Segments | Foreign | Europe | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | [1] | 81,260 | 99,324 | 82,170 |
Operating Segments | SPG Segments | Foreign | Latin America | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | [1] | 1,720 | 1,772 | 1,826 |
Operating Segments | SPG Segments | Foreign | Asia Pacific | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | [1] | $ 31,982 | $ 34,852 | $ 31,918 |
[1] It is not practicable to obtain the information needed to disclose revenues attributable to each of our product lines. Long-lived assets include all non-current assets, excluding non-current deferred income taxes. |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts and Reserves (Schedule II) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
Accrued Product Liability Reserves, Current | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | $ 16,003 | $ 18,297 | $ 10,458 | |
Additions Charged to Selling, General and Administrative | 10,056 | 8,358 | 14,173 | |
Acquisitions (Disposals) of Businesses and Reclassifications | 76 | |||
(Deductions) Additions | [1] | 9,140 | (10,652) | (6,334) |
Balance at End of Period | 16,995 | 16,003 | 18,297 | |
Accrued Environmental Reserves, Current | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | 1,055 | 1,329 | 1,970 | |
Additions Charged to Selling, General and Administrative | 932 | 674 | 1,045 | |
(Deductions) Additions | [1] | (960) | (948) | (1,686) |
Balance at End of Period | 1,027 | 1,055 | 1,329 | |
Accrued Product Liability Reserves, Noncurrent | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | 26,226 | 26,614 | 27,016 | |
Additions Charged to Selling, General and Administrative | 3,055 | 10,760 | 15,366 | |
(Deductions) Additions | [1] | (6,432) | (11,148) | (15,768) |
Balance at End of Period | 22,849 | 26,226 | 26,614 | |
Accrued Environmental Reserves, Noncurrent | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | 6,254 | 6,267 | 4,125 | |
Additions Charged to Selling, General and Administrative | 271 | 318 | 1,918 | |
(Deductions) Additions | (352) | (331) | 224 | |
Balance at End of Period | 6,173 | 6,254 | 6,267 | |
Allowance For Credit Loss Current | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | 46,669 | 55,922 | 55,847 | |
Additions Charged to Selling, General and Administrative | 13,557 | 4,326 | 10,044 | |
(Deductions) Additions | [2] | (10,744) | (13,579) | (9,969) |
Balance at End of Period | $ 49,482 | $ 46,669 | $ 55,922 | |
[1] Primarily claims paid during the year, net of insurance contributions. Uncollectible accounts written off, net of recoveries. |