Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Nov. 30, 2013 | Jan. 03, 2014 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Nov-13 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Trading Symbol | 'RPM | ' |
Entity Registrant Name | 'RPM INTERNATIONAL INC/DE/ | ' |
Entity Central Index Key | '0000110621 | ' |
Current Fiscal Year End Date | '--05-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 133,176,107 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Nov. 30, 2013 | 31-May-13 |
In Thousands, unless otherwise specified | ||
Current Assets | ' | ' |
Cash and cash equivalents | $224,172 | $343,554 |
Trade accounts receivable (less allowances of $30,024 and $28,904, respectively) | 772,429 | 787,517 |
Inventories | 597,660 | 548,680 |
Deferred income taxes | 38,146 | 36,565 |
Prepaid expenses and other current assets | 181,220 | 169,956 |
Total current assets | 1,813,627 | 1,886,272 |
Property, Plant and Equipment, at Cost | 1,144,947 | 1,128,123 |
Allowance for depreciation and amortization | -645,594 | -635,760 |
Property, plant and equipment, net | 499,353 | 492,363 |
Other Assets | ' | ' |
Goodwill | 1,125,460 | 1,113,831 |
Other intangible assets, net of amortization | 461,555 | 459,613 |
Other | 170,526 | 163,447 |
Total other assets | 1,757,541 | 1,736,891 |
Total Assets | 4,070,521 | 4,115,526 |
Current Liabilities | ' | ' |
Accounts payable | 370,993 | 478,185 |
Current portion of long-term debt | 4,835 | 4,521 |
Accrued compensation and benefits | 127,150 | 154,844 |
Accrued loss reserves | 22,120 | 27,591 |
Other accrued liabilities | 208,983 | 262,889 |
Total current liabilities | 734,081 | 928,030 |
Long-Term Liabilities | ' | ' |
Long-term debt, less current maturities | 1,365,115 | 1,369,176 |
Other long-term liabilities | 436,335 | 417,160 |
Deferred income taxes | 41,130 | 46,227 |
Total long-term liabilities | 1,842,580 | 1,832,563 |
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 137,811 and outstanding 133,174 as of November 2013; issued 136,913 and outstanding 132,596 as of May 2013 | 1,332 | 1,326 |
Paid-in capital | 776,363 | 763,505 |
Treasury stock, at cost | -80,370 | -72,494 |
Accumulated other comprehensive (loss) | -147,740 | -159,253 |
Retained earnings | 772,637 | 667,774 |
Total RPM International Inc. stockholders' equity | 1,322,222 | 1,200,858 |
Noncontrolling interest | 171,638 | 154,075 |
Total Equity | 1,493,860 | 1,354,933 |
Total Liabilities and Stockholders' Equity | $4,070,521 | $4,115,526 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Nov. 30, 2013 | 31-May-13 |
In Thousands, except Per Share data, unless otherwise specified | ||
Trade accounts receivable, allowances | $30,024 | $28,904 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, authorized | 50,000 | 50,000 |
Preferred stock, issued | ' | ' |
Common stock, par value | $0.01 | $0.01 |
Common stock, authorized | 300,000 | 300,000 |
Common stock, issued | 137,811 | 136,913 |
Common stock, outstanding | 133,174 | 132,596 |
Consolidated_Statements_Of_Inc
Consolidated Statements Of Income (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2013 | Nov. 30, 2012 | ||||
Net Sales | $1,071,487 | $1,017,426 | $2,236,161 | $2,064,140 | ||||
Cost of Sales | 613,542 | 592,425 | 1,279,144 | 1,205,259 | ||||
Gross Profit | 457,945 | 425,001 | 957,017 | 858,881 | ||||
Selling, General and Administrative Expenses | 343,048 | 325,761 | 678,507 | 636,701 | ||||
Interest Expense | 20,809 | 19,868 | 41,534 | 38,298 | ||||
Investment (Income), Net | -2,005 | -1,364 | -5,899 | -8,338 | ||||
Other (Income) Expense, Net | -1,491 | 9,694 | -1,925 | 49,116 | ||||
Income Before Income Taxes | 97,584 | 71,042 | 244,800 | 143,104 | ||||
Provision for Income Taxes | 29,170 | 24,955 | 69,497 | 59,150 | ||||
Net Income | 68,414 | 46,087 | 175,303 | 83,954 | ||||
Less: Net Income Attributable to Noncontrolling Interests | 4,852 | 4,419 | 8,643 | 8,373 | ||||
Net Income Attributable to RPM International Inc. Stockholders | $63,562 | $41,668 | $166,660 | $75,581 | ||||
Average Number of Shares of Common Stock Outstanding: | ' | ' | ' | ' | ||||
Basic | 129,426 | 128,885 | 129,385 | 128,844 | ||||
Diluted | 130,418 | [1],[2] | 129,700 | [1],[2] | 130,359 | [1],[2] | 129,635 | [1],[2] |
Earnings per Share of Common Stock Attributable to RPM International Inc. Stockholders: | ' | ' | ' | ' | ||||
Basic | $0.48 | $0.32 | $1.26 | $0.57 | ||||
Diluted | $0.48 | $0.31 | $1.25 | $0.57 | ||||
Cash Dividends Declared per Share of Common Stock | $0.24 | $0.23 | $0.47 | $0.44 | ||||
[1] | For the quarters ended November 30, 2013 and 2012, respectively, approximately 3,078,000 shares and 3,151,000 shares of stock granted under stock-based compensation plans were excluded from the calculation of diluted EPS, as the effect would have been anti-dilutive. | |||||||
[2] | For the six month periods ended November 30, 2013 and 2012, approximately 2,939,000 shares and 2,970,000 shares of stock, respectively, granted under stock-based compensation plans were excluded from the calculation of diluted EPS for those periods, as the effect would have been anti-dilutive. |
Consolidated_Statements_Of_Com
Consolidated Statements Of Comprehensive Income (Loss) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2013 | Nov. 30, 2012 |
Net income | $68,414 | $46,087 | $175,303 | $83,954 |
Other comprehensive income, net of tax: | ' | ' | ' | ' |
Foreign currency translation adjustments | 24,205 | -2,036 | 10,791 | 37,194 |
Pension and other postretirement benefit liability adjustments (net of tax of $1,379; $1,885; $2,811 and $2,635, respectively) | 2,211 | 3,378 | 5,135 | 4,584 |
Unrealized gain on securities (net of tax of $2,882; $996; $2,062 and $707, respectively) | 6,401 | 2,076 | 4,962 | 1,724 |
Unrealized gain on derivatives (net of tax benefit of $324; $272; $278 and $164, respectively) | -994 | -744 | -885 | -557 |
Total Other Comprehensive Income | 31,823 | 2,674 | 20,003 | 42,945 |
Total Comprehensive Income | 100,237 | 48,761 | 195,306 | 126,899 |
Less: Comprehensive Income Attributable to Noncontrolling Interests | 9,507 | 6,230 | 17,134 | 19,263 |
Comprehensive Income Attributable to RPM International Inc. Stockholders | $90,730 | $42,531 | $178,172 | $107,636 |
Consolidated_Statements_Of_Com1
Consolidated Statements Of Comprehensive Income (Loss) (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2013 | Nov. 30, 2012 |
Pension and Other Postretirement Benefit Liability Adjustments, Tax | $1,379 | $1,885 | $2,811 | $2,635 |
Unrealized gain on securities, Tax | 2,882 | 996 | 2,062 | 707 |
Unrealized gain on derivatives, Tax Benefit | $324 | $272 | $278 | $164 |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 |
Cash Flows From Operating Activities: | ' | ' |
Net income | $175,303 | $83,954 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation | 29,128 | 27,644 |
Amortization | 15,776 | 14,565 |
Impairment on investment in Kemrock | ' | 51,092 |
Deferred income taxes | -8,500 | 3,973 |
Stock-based compensation expense | 9,622 | 8,135 |
Other | -1,229 | -9,655 |
Changes in assets and liabilities, net of effect from purchases and sales of businesses: | ' | ' |
Decrease in receivables | 21,971 | 63,687 |
(Increase) in inventory | -44,020 | -25,936 |
(Increase) decrease in prepaid expenses and other current and long-term assets | -750 | 19,990 |
(Decrease) in accounts payable | -111,598 | -95,485 |
(Decrease) in accrued compensation and benefits | -28,152 | -46,190 |
(Decrease) increase in accrued loss reserves | -5,488 | 3,984 |
Increase in other accrued liabilities | 38,304 | 46,440 |
(Decrease) in contingent payment | -61,894 | ' |
Other | -6,641 | -18,577 |
Cash Provided By Operating Activities | 21,832 | 127,621 |
Cash Flows From Investing Activities: | ' | ' |
Capital expenditures | -34,603 | -30,849 |
Acquisition of businesses, net of cash acquired | -20,827 | -396,785 |
Purchase of marketable securities | -33,770 | -68,442 |
Proceeds from sales of marketable securities | 19,672 | 58,194 |
Other | 1,546 | 4,103 |
Cash (Used For) Investing Activities | -67,982 | -433,779 |
Cash Flows From Financing Activities: | ' | ' |
Additions to long-term and short-term debt | 2,776 | 334,247 |
Reductions of long-term and short-term debt | -6,071 | -41,269 |
Cash dividends | -61,796 | -58,054 |
Repurchase of stock | -7,877 | -1,094 |
Other | -1,330 | 5,650 |
Cash (Used For) Provided By Financing Activities | -74,298 | 239,480 |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 1,066 | 12,650 |
Net Change in Cash and Cash Equivalents | -119,382 | -54,028 |
Cash and Cash Equivalents at Beginning of Period | 343,554 | 315,968 |
Cash and Cash Equivalents at End of Period | $224,172 | $261,940 |
Consolidation_Noncontrolling_I
Consolidation, Noncontrolling Interests and Basis of Presentation | 6 Months Ended |
Nov. 30, 2013 | |
Consolidation, Noncontrolling Interests and Basis of Presentation | ' |
NOTE 1 — CONSOLIDATION, NONCONTROLLING INTERESTS AND BASIS OF PRESENTATION | |
Our financial statements include all of our majority-owned subsidiaries, except for certain subsidiaries that were deconsolidated on May 31, 2010 (please refer to Note 3). 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, except for certain subsidiaries that were deconsolidated, 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. | |
The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and notes required by Generally Accepted Accounting Principles in the U.S. (“GAAP”) for complete financial statements. In our opinion, all adjustments (consisting of normal, recurring accruals) considered necessary for a fair presentation have been included for the three and six-month periods ended November 30, 2013 and 2012. For further information, refer to the Consolidated Financial Statements and Notes included in our Annual Report on Form 10-K for the year ended May 31, 2013. | |
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). | |
Certain reclassifications have been made to prior year amounts to conform to the current year presentation. |
Investment_in_Kemrock_Industri
Investment in Kemrock Industries and Exports Ltd. | 6 Months Ended |
Nov. 30, 2013 | |
Investment in Kemrock Industries and Exports Ltd. | ' |
NOTE 2 — INVESTMENT IN KEMROCK INDUSTRIES AND EXPORTS LTD. | |
Beginning with our fiscal year ended May 31, 2007, we began purchasing shares of Kemrock Industries and Exports Limited (“Kemrock”) common stock. By May 31, 2011, we had acquired a total of approximately 3.2 million shares of Kemrock common stock, for an accumulated cost of approximately $24.2 million, which represented approximately 18% of Kemrock’s outstanding shares at that time. Our investment in Kemrock common stock had been classified in other long-term assets on our balance sheet and included with available-for-sale securities, which are carried at fair value based on quoted market prices. | |
During fiscal 2012, we increased our ownership in Kemrock to over 20% of Kemrock’s outstanding shares of common stock and changed our accounting for this investment to the equity method. Additionally, during fiscal 2012, we entered into three other, separate agreements with Kemrock. First, we agreed to loan Kemrock $15.0 million, which was to be repaid in cash, or alternatively, goods and commercial materials, no later than September 15, 2012. The loan was classified as a note receivable and was included in prepaid and other current assets in our Consolidated Balance Sheet. Second, we entered into a global depository receipt (“GDR”) Purchase Agreement with Kemrock, whereby we purchased 693,072 GDRs of Kemrock for an aggregate purchase price of approximately $7.2 million. The GDRs were included in our investment in Kemrock, which had a carrying value at the end of fiscal 2012 of $42.2 million, and were classified as other long-term assets in our Consolidated Balance Sheet. Lastly, during fiscal 2012 we invested $22.7 million in 5.5% convertible bonds issued by Kemrock. Our investment in Kemrock’s convertible bonds was accounted for as an available-for-sale security and was classified in other long-term assets in our Consolidated Balance Sheet. The convertible feature embedded in the convertible bonds is accounted for as a derivative under the guidance in ASC 815, “Derivatives and Hedging.” | |
At the time of our investment in Kemrock’s convertible bonds, Kemrock was in the midst of major capital expansion for new projects and upcoming technologies, and there were no indications of any adverse business, economic, competitive, or market factors. However, on August 8, 2012, the price of Kemrock’s common stock plunged below our carrying value, declining by approximately 40% from its May 31, 2012 per share price of 531.0 rupees. We later learned that the dramatic drop in Kemrock’s stock price was related to Kemrock’s announcement of declining sales and income, a liquidity problem at Kemrock that stemmed from its explosive growth, combined with the overall tightening of lending practices of banks and credit markets in India. At that time, we also learned that Kemrock was in the process of renegotiating its credit agreements with its banks. Compounding these difficulties for Kemrock was the deterioration in the exchange rate of the Indian rupee against the U.S. dollar and euro, which had a negative impact on Kemrock’s gross profit margin and cash flow as Kemrock procures the majority of its raw material supplies outside of India, but sells its products in Indian rupees. The market value of shares of Kemrock common stock continued to decline significantly, and dropped from 531.0 rupees per share as of May 31, 2012 to 56.70 rupees per share as of November 30, 2012; the majority of which began to occur during the month of August 2012. By the end of our fiscal year ended May 31, 2013, the market value of shares of Kemrock common stock had continued its decline to 43.85 rupees per share. | |
We account for our equity method investment in Kemrock under ASC 323, “Investments – Equity Method and Joint Ventures.” As outlined in ASC 323-10-35-32, a decline in the quoted market price below the carrying amount, when combined with other evidence of a loss in value, may be indicative of a loss in value that is other than temporary. Acting upon the premise that a write-down may be required, we considered all available evidence to evaluate the realizable value of our equity investment, including the decline in the market price of shares of Kemrock stock, the financial condition and near term prospects of Kemrock, and the overall economic situation in India. As a result of these factors, we determined that it was appropriate to record an impairment loss during the three and six month periods ended November 30, 2012 of approximately $10.1 million and $42.2 million, respectively, on our equity method investment. Additionally, we recorded a loss of $5.0 million during the first quarter of fiscal 2012 for the amount deemed uncollectible on our then-outstanding $10.0 million loan to Kemrock. As the value of the embedded conversion derivative is directly correlated to the market value of Kemrock stock, we wrote-down the embedded conversion feature derivative and recorded an approximate $0.8 million and $9.0 million charge to earnings during the three and six month periods ended November 30, 2012, respectively. The investment losses were classified in other (income) expense, net and the loss recorded on the loan was included in selling, general and administrative expense in our Consolidated Statements of Income. By the end of our fiscal year ended May 31, 2013, we wrote-down our entire equity-method investment in Kemrock for $42.2 million, the full value of the embedded conversion feature for $9.0 million and the full value of our convertible debt investment for $13.7 million. |
Deconsolidation_of_Specialty_P
Deconsolidation of Specialty Products Holding Corp. ("SPHC") | 6 Months Ended | ||
Nov. 30, 2013 | |||
Deconsolidation of Specialty Products Holding Corp. ("SPHC") | ' | ||
NOTE 3 — DECONSOLIDATION OF SPECIALTY PRODUCTS HOLDING CORP. (“SPHC”) | |||
On May 31, 2010, Bondex International, Inc. (“Bondex”) and its parent, SPHC, filed Chapter 11 reorganization proceedings in the United States Bankruptcy Court for the District of Delaware. SPHC is our wholly owned subsidiary. In accordance with ASC 810, when a subsidiary becomes subject to the control of a government, court, administrator, or regulator, deconsolidation of that subsidiary is generally required. We therefore deconsolidated SPHC and its subsidiaries from our balance sheet as of May 31, 2010, and eliminated the results of SPHC’s operations from our results of operations beginning on that date. We believe we have no responsibility for liabilities of SPHC and Bondex. As a result of the Chapter 11 reorganization proceedings, on a prospective basis we will continue to account for our investment in SPHC under the cost method. | |||
We had a net receivable from SPHC at May 31, 2010, that we expect may change before the bankruptcy proceedings have been finalized. The potential change relates to our indemnification of an insurer on appeal bonds pertaining to Bondex’s appeal of two asbestos cases that had been underway prior to the bankruptcy filing, neither of which are material in amount. During our fiscal 2012, one of the appeal bonds was satisfied, and during fiscal 2013, the remaining appeal bond was satisfied. Included in the net amount due from SPHC are receivables and payables, which we concluded we have the right to report as a net amount based on several factors, including the fact that all amounts are determinable, the balances are due to and from our subsidiaries, and we have been given reasonable assurance that netting the applicable receivables and payables would remain legally enforceable. We analyzed our net investment in SPHC as of May 31, 2010, which included a review of our advances to SPHC, an assessment of the collectibility of our net receivables due from SPHC, and a computation of the gain to be recorded upon deconsolidation based on the carrying amount of our investment in SPHC. In accordance with GAAP, the gain on deconsolidation related to the carrying amount of net assets of SPHC at May 31, 2010, was calculated in accordance with ASC 810-10-40-5, as follows: | |||
a) | the aggregate of (1) the fair value of consideration received, (2) the fair value of any retained noncontrolling investment in the former subsidiary at the date the subsidiary is deconsolidated, and (3) the carrying amount of any noncontrolling interest in the former subsidiary; less | ||
b) | the carrying amount of the former subsidiary’s assets and liabilities. | ||
In determining the carrying value of any retained noncontrolling investment in SPHC at the date of deconsolidation we considered several factors, including analyses of cash flows combined with various assumptions relating to the future performance of this entity and a discounted value of SPHC’s recorded asbestos-related contingent obligations based on information available to us as of the date of deconsolidation. The discounted cash flow approach relies primarily on Level 3 unobservable inputs, whereby expected future cash flows are discounted using a rate that includes assumptions regarding an entity’s average cost of debt and equity, incorporates expected future cash flows based on internal business plans, and applies certain assumptions about risk and uncertainties due to the bankruptcy filing. Our estimates are based upon assumptions we believe to be reasonable, but which by nature are uncertain and unpredictable. As a result of this analysis, we determined that the carrying value of our retained interest in SPHC approximated zero. | |||
As a result of the combined analyses of each of the components of our net investment in SPHC, we recorded a net loss of approximately $7.9 million, which was reflected in Other Expense, Net, during the fourth fiscal quarter of the year ended May 31, 2010. No changes have been made to these amounts through November 30, 2013. |
New_Accounting_Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Nov. 30, 2013 | |
New Accounting Pronouncements | ' |
NOTE 4 — NEW ACCOUNTING PRONOUNCEMENTS | |
In February 2013, the FASB further amended the disclosure requirements for comprehensive income. The update requires companies to disclose items reclassified out of accumulated other comprehensive income and into net income in a single location either in the notes to the consolidated financial statements or parenthetically on the face of the Statements of Operations. The change is effective for fiscal years, and interim periods within those years, beginning after December 15, 2012, and is to be applied prospectively. Our adoption of these provisions on June 1, 2013 did not affect our consolidated results of operations, financial condition or liquidity as it is disclosure-related only. |
Investment_Income_Net
Investment (Income) , Net | 6 Months Ended | ||||||||||||||||
Nov. 30, 2013 | |||||||||||||||||
Investment (Income) , Net | ' | ||||||||||||||||
NOTE 5 — INVESTMENT (INCOME), NET | |||||||||||||||||
Investment (income) expense, net, consists of the following components: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
November 30, | November 30, | ||||||||||||||||
(In thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Interest (income) | $ | (1,641 | ) | $ | (1,565 | ) | $ | (3,144 | ) | $ | (3,860 | ) | |||||
(Gain) on sale of marketable securities | (227 | ) | (8 | ) | (2,424 | ) | (4,592 | ) | |||||||||
Other-than-temporary impairment on securities | 111 | 450 | 162 | 564 | |||||||||||||
Dividend (income) | (248 | ) | (241 | ) | (493 | ) | (450 | ) | |||||||||
Investment (income) expense, net | $ | (2,005 | ) | $ | (1,364 | ) | $ | (5,899 | ) | $ | (8,338 | ) | |||||
Other_Income_Expense_Net
Other (Income) Expense, Net | 6 Months Ended | ||||||||||||||||
Nov. 30, 2013 | |||||||||||||||||
Other (Income) Expense, Net | ' | ||||||||||||||||
NOTE 6 — OTHER (INCOME) EXPENSE, NET | |||||||||||||||||
Other (income) expense, net, consists of the following components: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
November 30, | November 30, | ||||||||||||||||
(In thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Royalty (income), net | $ | (709 | ) | $ | (433 | ) | $ | (391 | ) | $ | (727 | ) | |||||
Loss on Kemrock conversion option | — | 847 | — | 9,030 | |||||||||||||
(Income) loss related to unconsolidated equity affiliates | (782 | ) | 9,280 | (1,534 | ) | 40,813 | |||||||||||
Other (income) expense, net | $ | (1,491 | ) | $ | 9,694 | $ | (1,925 | ) | $ | 49,116 | |||||||
Pension_Plans
Pension Plans | 6 Months Ended | ||||||||||||||||
Nov. 30, 2013 | |||||||||||||||||
Pension Plans | ' | ||||||||||||||||
NOTE 7 — PENSION PLANS | |||||||||||||||||
We offer defined benefit pension plans, defined contribution pension plans, as well as several unfunded health care benefit plans primarily for certain of our retired employees. The following tables provide the retirement-related benefit plans’ impact on income before income taxes for the three and six month periods ended November 30, 2013: | |||||||||||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||
November 30, | November 30, | ||||||||||||||||
Pension Benefits | 2013 | 2012 | 2013 | 2012 | |||||||||||||
(In thousands) | |||||||||||||||||
Service cost | $ | 6,764 | $ | 6,488 | $ | 1,109 | $ | 1,050 | |||||||||
Interest cost | 4,510 | 4,060 | 1,799 | 1,769 | |||||||||||||
Expected return on plan assets | (5,191 | ) | (4,358 | ) | (2,096 | ) | (1,846 | ) | |||||||||
Amortization of: | |||||||||||||||||
Prior service cost | 84 | 87 | 1 | 2 | |||||||||||||
Net actuarial losses recognized | 3,305 | 4,222 | 624 | 692 | |||||||||||||
Net Periodic Benefit Cost | $ | 9,472 | $ | 10,499 | $ | 1,437 | $ | 1,667 | |||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||
November 30, | November 30, | ||||||||||||||||
Postretirement Benefits | 2013 | 2012 | 2013 | 2012 | |||||||||||||
(In thousands) | |||||||||||||||||
Service cost | $ | — | $ | — | $ | 327 | $ | 288 | |||||||||
Interest cost | 81 | 88 | 317 | 289 | |||||||||||||
Amortization of: | |||||||||||||||||
Prior service (credit) | (22 | ) | (22 | ) | |||||||||||||
Net actuarial (gains) losses recognized | (29 | ) | 4 | 134 | 114 | ||||||||||||
Net Periodic Benefit Cost | $ | 30 | $ | 70 | $ | 778 | $ | 691 | |||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||
Six Months Ended | Six Months Ended | ||||||||||||||||
November 30, | November 30, | ||||||||||||||||
Pension Benefits | 2013 | 2012 | 2013 | 2012 | |||||||||||||
(In thousands) | |||||||||||||||||
Service cost | $ | 13,528 | $ | 12,976 | $ | 2,218 | $ | 2,100 | |||||||||
Interest cost | 9,020 | 8,120 | 3,599 | 3,538 | |||||||||||||
Expected return on plan assets | (10,381 | ) | (8,716 | ) | (4,191 | ) | (3,692 | ) | |||||||||
Amortization of: | |||||||||||||||||
Prior service cost | 167 | 174 | 2 | 4 | |||||||||||||
Net actuarial losses recognized | 6,611 | 8,444 | 1,247 | 1,384 | |||||||||||||
Net Periodic Benefit Cost | $ | 18,945 | $ | 20,998 | $ | 2,875 | $ | 3,334 | |||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||
Six Months Ended | Six Months Ended | ||||||||||||||||
November 30, | November 30, | ||||||||||||||||
Postretirement Benefits | 2013 | 2012 | 2013 | 2012 | |||||||||||||
(In thousands) | |||||||||||||||||
Service cost | $ | — | $ | — | $ | 654 | $ | 576 | |||||||||
Interest cost | 162 | 176 | 634 | 578 | |||||||||||||
Amortization of: | |||||||||||||||||
Prior service (credit) | (44 | ) | (44 | ) | — | — | |||||||||||
Net actuarial (gains) losses recognized | (58 | ) | 8 | 267 | 228 | ||||||||||||
Net Periodic Benefit Cost | $ | 60 | $ | 140 | $ | 1,555 | $ | 1,382 | |||||||||
We previously disclosed in our financial statements for the fiscal year ended May 31, 2013 that we expected to contribute approximately $27.4 million to our retirement plans in the U.S. and approximately $7.4 million to plans outside the U.S. during the current fiscal year. As of November 30, 2013, this has not changed. | |||||||||||||||||
We have determined that our postretirement medical plan provides prescription drug benefits that will qualify for the federal subsidy provided by the Medicare Prescription Drug, Improvement and Modernization Act of 2003. For all groups of retirees, we have assumed that the subsidy will continue indefinitely. |
Income_Taxes
Income Taxes | 6 Months Ended |
Nov. 30, 2013 | |
Income Taxes | ' |
NOTE 8 — INCOME TAXES | |
The effective income tax rate was 29.9% for the three months ended November 30, 2013 compared to an effective income tax rate of 35.1% for the three months ended November 30, 2012. The effective income tax rate was 28.4% for the six months ended November 30, 2013 compared to an effective income tax rate of 41.3% for the same period a year ago. | |
For the three and six months ended November 30, 2013 and 2012, the effective tax rates reflect variances from the 35% federal statutory rate primarily due to lower effective tax rates of certain of our foreign subsidiaries, the favorable impact of certain foreign operations on our U.S. taxes, the research and development tax credit, the benefit of the domestic manufacturing deduction and, the impact of lower valuation allowances on foreign tax credit carryforwards. These favorable variances from the statutory tax rate were offset by the net impact of valuation allowances associated with certain foreign net operating losses, state and local income taxes, and non-deductible business operating expenses. | |
Furthermore, for the six month period ended November 30, 2013, the effective tax rate includes a discrete benefit related to the recognition of a foreign deferred income tax asset resulting from the merger of certain foreign subsidiaries. This benefit was partially offset by the impact of the enactment of a Canadian tax law change, Canada Bill C-48, Technical Tax Amendments Act, 2012 (“Bill C-48”), which was effective as of June 26, 2013. | |
Additionally for the three and six month periods ended November 30, 2012, the effective tax rate differed from the federal statutory rate as a result of valuation allowances related to losses associated with our investments in Kemrock and as a result of the impact on our effective tax rate in certain foreign jurisdictions where income tax benefits associated with net operating losses incurred by those foreign businesses are not recognized. | |
As of November 30, 2013, we had unrecognized tax benefits of approximately $14.9 million, of which approximately $14.1 million would impact the effective tax rate, if recognized. We recognize interest and penalties related to unrecognized tax benefits in income tax expense. At November 30, 2013 the accrual for interest and penalties was $4.9 million. These amounts increased from the prior year balances primarily due to additions for prior year positions related to the retroactive impact of Bill C-48. Unrecognized tax benefits, including interest and penalties, have been classified as other long-term liabilities unless expected to be paid in one year. We do not anticipate any significant changes to the total unrecognized tax benefits within the next 12 months. | |
We, or our subsidiaries, file income tax returns in the U.S. and in various state, local and foreign jurisdictions. During the year ended May 31, 2013 we settled U.S. federal examinations of fiscal years 2009 and 2010. During the first quarter of fiscal 2014 we settled a U.S. federal examination of fiscal year 2011 and were notified by the Internal Revenue Service that they will perform a limited scope examination of fiscal year 2012. In addition, with limited exceptions, we, or our subsidiaries, are generally subject to state and local or non-U.S. income tax examinations by tax authorities for the fiscal years 2006 through 2013. | |
We are currently under examination, or have been notified of an upcoming tax examination, for various Non-U.S. and U.S. jurisdictions. Although it is possible that certain tax examinations could be resolved during the next 12 months, the timing and outcomes are uncertain. | |
As of November 30, 2013, we have determined, based on the available evidence, that it is uncertain whether we will be able to recognize certain deferred tax assets. Therefore, we intend to maintain the tax valuation allowances recorded at November 30, 2013 for those deferred tax assets until sufficient positive evidence (for example, cumulative positive foreign earnings or additional foreign source income) exists to support their reversal. These valuation allowances relate to U.S. foreign tax credit carryforwards, capital loss carryforwards, unrealized losses on securities, certain foreign net operating losses and net foreign deferred tax assets. |
Earnings_Per_Share
Earnings Per Share | 6 Months Ended | ||||||||||||||||
Nov. 30, 2013 | |||||||||||||||||
Earnings Per Share | ' | ||||||||||||||||
NOTE 9 — EARNINGS PER SHARE | |||||||||||||||||
The following table sets forth the reconciliation of the numerator and denominator of basic and diluted earnings per share, as calculated using the two-class method, for the three and six month periods ended November 30, 2013 and 2012: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
November 30, | November 30, | ||||||||||||||||
(In thousands, except per share amounts) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Numerator for earnings per share: | |||||||||||||||||
Net income attributable to RPM International Inc. stockholders | $ | 63,562 | $ | 41,668 | $ | 166,660 | $ | 75,581 | |||||||||
Less: Allocation of earnings and dividends to participating securities | (1,379 | ) | (929 | ) | (3,521 | ) | (1,526 | ) | |||||||||
Net income available to common shareholders — basic | 62,183 | 40,739 | 163,139 | 74,055 | |||||||||||||
Add: Undistributed earnings reallocated to unvested shareholders | 6 | 2 | 17 | 2 | |||||||||||||
Net income available to common shareholders — diluted | $ | 62,189 | $ | 40,741 | $ | 163,156 | $ | 74,057 | |||||||||
Denominator for basic and diluted earnings per share: | |||||||||||||||||
Basic weighted average common shares | 129,426 | 128,885 | 129,385 | 128,844 | |||||||||||||
Average diluted options | 992 | 815 | 974 | 791 | |||||||||||||
Net issuable common share equivalents | |||||||||||||||||
Total shares for diluted earnings per share (1), (2) | 130,418 | 129,700 | 130,359 | 129,635 | |||||||||||||
Earnings Per Share of Common Stock Attributable to RPM International Inc. Stockholders: | |||||||||||||||||
Basic Earnings Per Share of Common Stock | $ | 0.48 | $ | 0.32 | $ | 1.26 | $ | 0.57 | |||||||||
Diluted Earnings Per Share of Common Stock | $ | 0.48 | $ | 0.31 | $ | 1.25 | $ | 0.57 | |||||||||
-1 | For the quarters ended November 30, 2013 and 2012, respectively, approximately 3,078,000 shares and 3,151,000 shares of stock granted under stock-based compensation plans were excluded from the calculation of diluted EPS, as the effect would have been anti-dilutive. | ||||||||||||||||
-2 | For the six month periods ended November 30, 2013 and 2012, approximately 2,939,000 shares and 2,970,000 shares of stock, respectively, granted under stock-based compensation plans were excluded from the calculation of diluted EPS for those periods, as the effect would have been anti-dilutive. |
Inventories
Inventories | 6 Months Ended | ||||||||
Nov. 30, 2013 | |||||||||
Inventories | ' | ||||||||
NOTE 10 — INVENTORIES | |||||||||
Inventories were composed of the following major classes: | |||||||||
(In thousands) | November 30, 2013 | May 31, 2013 | |||||||
Raw material and supplies | $ | 193,709 | $ | 185,590 | |||||
Finished goods | 403,951 | 363,090 | |||||||
Total Inventory | $ | 597,660 | $ | 548,680 | |||||
Restructuring
Restructuring | 6 Months Ended | ||||||||||||||||
Nov. 30, 2013 | |||||||||||||||||
Restructuring | ' | ||||||||||||||||
NOTE 11 — RESTRUCTURING | |||||||||||||||||
We record restructuring charges associated with management-approved restructuring plans to either reorganize one or more of our business segments, or to remove duplicative headcount and infrastructure associated with our businesses. Restructuring charges can include severance costs to eliminate a specified number of employees, infrastructure charges to vacate facilities and consolidate operations, and contract cancellation costs. Restructuring charges are recorded based upon planned employee termination dates and site closure and consolidation plans. The timing of associated cash payments is dependent upon the type of restructuring charge and can extend over a multi-year period. We record the short-term portion of our restructuring liability in Other accrued liabilities and the long-term portion, if any, in Other long-term liabilities in our Consolidated Balance Sheets. | |||||||||||||||||
Fiscal 2013 Plans | |||||||||||||||||
In May 2013, we approved a restructuring plan for one of our consumer operating segments designed to eliminate duplicative processes and overhead and to exit certain processes and product lines. This restructuring plan allows management to refocus its attention on faster growing brands within the consumer operating segment. In connection with this plan, we recorded aggregate charges of approximately $15.6 million, of which approximately $8.2 million relates to the elimination of 133 positions and approximately $7.4 million results from the shutdown of 2 manufacturing facilities. These actions are expected to be completed during the first seven months of fiscal 2014. In addition, there were approximately $3.9 million of inventory markdowns, which are reflected in Cost of Sales in our Consolidated Statements of Income. | |||||||||||||||||
Additionally, one of our industrial operating businesses adopted a restructuring plan designed to simplify business processes, accelerate innovation and deliver better results for customers, employees and stockholders. We estimate that this plan will eliminate approximately 34 positions and severance payments will be made generally through the end of fiscal 2014. In connection with the plan, we recorded aggregate charges of approximately $4.5 million, all of which relates to workforce reductions. | |||||||||||||||||
The following table includes the changes in our accrued restructuring balances: | |||||||||||||||||
(In thousands) | Long-Lived | Employee | Site | Total | |||||||||||||
Asset | Severance | Preparation | |||||||||||||||
Charges | and | ||||||||||||||||
Equipment | |||||||||||||||||
Relocation | |||||||||||||||||
Balance at May 31, 2013 | $ | 4,729 | $ | 12,656 | $ | 397 | $ | 17,782 | |||||||||
Charge to expense | — | 128 | — | 128 | |||||||||||||
Cash payments | — | (1,416 | ) | — | (1,416 | ) | |||||||||||
Noncash and foreign exchange impacts | 123 | 165 | 10 | 298 | |||||||||||||
Balance at August 31, 2013 | $ | 4,852 | $ | 11,533 | $ | 407 | $ | 16,792 | |||||||||
Charge to expense | — | — | — | — | |||||||||||||
Cash payments | — | (7,121 | ) | — | (7,121 | ) | |||||||||||
Noncash and foreign exchange impacts | 136 | 185 | 12 | 333 | |||||||||||||
Balance at November 30, 2013 | $ | 4,988 | $ | 4,597 | $ | 419 | $ | 10,004 | |||||||||
Marketable_Securities
Marketable Securities | 6 Months Ended | ||||||||||||||||
Nov. 30, 2013 | |||||||||||||||||
Marketable Securities | ' | ||||||||||||||||
NOTE 12 — MARKETABLE SECURITIES | |||||||||||||||||
The following tables summarize marketable securities held at November 30, 2013 and May 31, 2013 by asset type: | |||||||||||||||||
Available-For-Sale Securities | |||||||||||||||||
(In thousands) | Amortized | Gross | Gross | Fair Value | |||||||||||||
Cost | Unrealized | Unrealized | (Net | ||||||||||||||
Gains | Losses | Carrying | |||||||||||||||
Amount) | |||||||||||||||||
November 30, 2013 | |||||||||||||||||
Equity securities: | |||||||||||||||||
Stocks — foreign | $ | 372 | $ | 107 | $ | (39 | ) | $ | 440 | ||||||||
Stocks — domestic | 31,849 | 7,947 | (239 | ) | 39,557 | ||||||||||||
Mutual funds — foreign | 26,367 | 5,535 | — | 31,902 | |||||||||||||
Mutual funds — domestic | 40,649 | 2,132 | (1,017 | ) | 41,764 | ||||||||||||
Total equity securities | 99,237 | 15,721 | (1,295 | ) | 113,663 | ||||||||||||
Fixed maturity: | |||||||||||||||||
U.S. treasury and other government | 19,595 | 163 | (286 | ) | 19,472 | ||||||||||||
Corporate bonds | 1,709 | 196 | — | 1,905 | |||||||||||||
Foreign bonds | 37 | 3 | — | 40 | |||||||||||||
Mortgage-backed securities | 87 | 57 | — | 144 | |||||||||||||
Total fixed maturity securities | 21,428 | 419 | (286 | ) | 21,561 | ||||||||||||
Total | $ | 120,665 | $ | 16,140 | $ | (1,581 | ) | $ | 135,224 | ||||||||
Available-For-Sale Securities | |||||||||||||||||
(In thousands) | Amortized | Gross | Gross | Fair Value | |||||||||||||
Cost | Unrealized | Unrealized | (Net | ||||||||||||||
Gains | Losses | Carrying | |||||||||||||||
Amount) | |||||||||||||||||
May 31, 2013 | |||||||||||||||||
Equity securities: | |||||||||||||||||
Stocks — foreign | $ | 1,090 | $ | 244 | $ | — | $ | 1,334 | |||||||||
Stocks — domestic | 24,492 | 5,265 | (392 | ) | 29,365 | ||||||||||||
Mutual funds — foreign | 18,328 | 1,901 | (7 | ) | 20,222 | ||||||||||||
Mutual funds — domestic | 39,184 | 679 | (492 | ) | 39,371 | ||||||||||||
Total equity securities | 83,094 | 8,089 | (891 | ) | 90,292 | ||||||||||||
Fixed maturity: | |||||||||||||||||
U.S. treasury and other government | 20,528 | 247 | (139 | ) | 20,636 | ||||||||||||
Coporate bonds | 1,724 | 244 | — | 1,968 | |||||||||||||
Foreign bonds | 37 | 4 | — | 41 | |||||||||||||
Mortgage-backed securities | 100 | 60 | (4 | ) | 156 | ||||||||||||
Total fixed maturity securities | 22,389 | 555 | (143 | ) | 22,801 | ||||||||||||
Total | $ | 105,483 | $ | 8,644 | $ | (1,034 | ) | $ | 113,093 | ||||||||
Marketable securities, included in other current and long-term assets totaling $59.4 million and $75.8 million at November 30, 2013, respectively, and included in other current and long-term assets totaling $49.1 million and $64.0 million at May 31, 2013, respectively, are composed of available-for-sale securities and are reported at fair value. We carry a portion of our marketable securities portfolio in long-term assets since they are generally held for the settlement of our general and product liability insurance claims processed through our wholly owned captive insurance subsidiaries. | |||||||||||||||||
Marketable securities are composed of available-for-sale securities and are reported at fair value. Realized gains and losses on sales of investments are recognized in net income on the specific identification basis. Changes in the fair values of securities that are considered temporary are recorded as unrealized gains and losses, net of applicable taxes, in accumulated other comprehensive income (loss) within stockholders’ equity. Other-than-temporary declines in market value from original cost are reflected in operating income in the period in which the unrealized losses are deemed other than temporary. In order to determine whether other-than-temporary declines in market value have occurred, the duration of the decline in value and our ability to hold the investment are considered in conjunction with an evaluation of the strength of the underlying collateral and the extent to which the investment’s amortized cost or cost, as appropriate, exceeds its related market value. | |||||||||||||||||
Gross gains realized on sales of investments were $0.2 million for the quarter ended November 30, 2013. Gross gains and losses realized on sales of investments were insignificant for the quarter ended November 30, 2012. During the three months ended November 30, 2013 and 2012, we recognized losses of approximately $0.1 million and $0.5 million, respectively, for securities deemed to have other-than-temporary impairments. These amounts are included in investment expense (income), net in the Consolidated Statements of Income. | |||||||||||||||||
Gross gains realized on sales of investments were $2.4 million for the six months ended November 30, 2013. Gross gains and losses realized on sales of investments were $5.0 million and $0.4 million, respectively, for the six months ended November 30, 2012. During the first half of fiscal 2013 and 2012, we recognized losses of approximately $0.2 million and $0.6 million, respectively, for securities deemed to have other-than-temporary impairments. | |||||||||||||||||
Summarized below are the securities we held at November 30, 2013 and May 31, 2013 that were in an unrealized loss position and that were included in accumulated other comprehensive income, aggregated by the length of time the investments had been in that position: | |||||||||||||||||
November 30, 2013 | May 31, 2013 | ||||||||||||||||
(In thousands) | Fair Value | Gross | Fair Value | Gross | |||||||||||||
Unrealized | Unrealized | ||||||||||||||||
Losses | Losses | ||||||||||||||||
Total investments with unrealized losses | $ | 35,851 | $ | (1,581 | ) | $ | 36,582 | $ | (1,034 | ) | |||||||
Unrealized losses with a loss position for less than 12 months | 23,819 | (1,065 | ) | 36,327 | (956 | ) | |||||||||||
Unrealized losses with a loss position for more than 12 months | 12,032 | (516 | ) | 255 | (78 | ) | |||||||||||
We have reviewed all of the securities included in the table above and have concluded that we have the ability and intent to hold these investments until their cost can be recovered, based upon the severity and duration of the decline. Therefore, we did not recognize any other-than-temporary impairment losses on these investments. Unrealized losses at November 30, 2013 were generally related to the lower levels of volatility in valuations over the last several months for a portion of our portfolio of investments in marketable securities. The unrealized losses generally relate to investments whose fair values at November 30, 2013 were less than 15% below their original cost or have been in a loss position for less than six consecutive months. From time to time, we may experience significant volatility in general economic and market conditions. If we were to experience unrealized losses that were to continue for longer periods of time, or arise to more significant levels of unrealized losses within our portfolio of investments in marketable securities in the future, we may recognize additional other-than-temporary impairment losses. Such potential losses could have a material impact on our results of operations in any given reporting period. As such, we continue to closely evaluate the status of our investments and our ability and intent to hold these investments. | |||||||||||||||||
The net carrying values of debt securities at November 30, 2013, 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 | Fair | |||||||||||||||
Cost | Value | ||||||||||||||||
Due: | |||||||||||||||||
Less than one year | $ | 3,210 | $ | 3,227 | |||||||||||||
One year through five years | 12,055 | 12,118 | |||||||||||||||
Six years through ten years | 4,712 | 4,647 | |||||||||||||||
After ten years | 1,451 | 1,569 | |||||||||||||||
$ | 21,428 | $ | 21,561 | ||||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 6 Months Ended | ||||||||||||||||
Nov. 30, 2013 | |||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
NOTE 13 — FAIR VALUE MEASUREMENTS | |||||||||||||||||
Financial instruments recorded on the balance sheet include cash and cash equivalents, trade accounts receivable, marketable securities, notes and accounts payable, and debt. | |||||||||||||||||
An allowance for anticipated uncollectible trade receivable amounts is established using a combination of specifically identified accounts to be reserved, and a reserve covering trends in collectibility. These estimates are based on an analysis of trends in collectability and past experience, but are primarily made up of individual account balances identified as doubtful based on specific facts and conditions. Receivable losses are charged against the allowance when we confirm uncollectibility. | |||||||||||||||||
All derivative instruments are recognized on our Consolidated Balance Sheet and measured at fair value. Changes in the fair values of derivative instruments that do not qualify as hedges and/or any ineffective portion of hedges are recognized as a gain or (loss) in our Consolidated Statement of Income in the current period. Changes in the fair value of derivative instruments used effectively as cash flow hedges are recognized in other comprehensive income (loss), along with the change in the value of the hedged item. We do not hold or issue derivative instruments for speculative purposes. | |||||||||||||||||
The valuation techniques utilized for establishing the fair values of assets and liabilities are based on observable and unobservable inputs. Observable inputs reflect readily obtainable data from independent sources, while unobservable inputs reflect management’s market assumptions. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value, as follows: | |||||||||||||||||
Level 1 Inputs — Quoted prices for identical instruments in active markets. | |||||||||||||||||
Level 2 Inputs — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. | |||||||||||||||||
Level 3 Inputs — Instruments with primarily unobservable value drivers. | |||||||||||||||||
The following tables present our assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy. | |||||||||||||||||
(In thousands) | Quoted Prices in | Significant | Significant | Fair Value at | |||||||||||||
Active Markets | Other | Unobservable | November 30, 2013 | ||||||||||||||
for Identical | Observable | Inputs (Level 3) | |||||||||||||||
Assets (Level 1) | Inputs (Level 2) | ||||||||||||||||
U.S. Treasury and other government | $ | — | $ | 19,472 | $ | — | $ | 19,472 | |||||||||
Foreign bonds | 40 | 40 | |||||||||||||||
Mortgage-backed securities | 144 | 144 | |||||||||||||||
Corporate bonds | 1,905 | 1,905 | |||||||||||||||
Stocks — foreign | 440 | 440 | |||||||||||||||
Stocks — domestic | 39,557 | 39,557 | |||||||||||||||
Mutual funds — foreign | 31,902 | 31,902 | |||||||||||||||
Mutual funds — domestic | 41,764 | 41,764 | |||||||||||||||
Foreign currency forward contract | 2,620 | 2,620 | |||||||||||||||
Cross-currency swap | (18,668 | ) | (18,668 | ) | |||||||||||||
Contingent consideration | — | (72,386 | ) | (72,386 | ) | ||||||||||||
Total | $ | 39,997 | $ | 79,179 | $ | (72,386 | ) | $ | 46,790 | ||||||||
(In thousands) | Quoted Prices in | Significant | Significant | Fair Value at | |||||||||||||
Active Markets | Other | Unobservable | May 31, 2013 | ||||||||||||||
for Identical | Observable | Inputs (Level 3) | |||||||||||||||
Assets (Level 1) | Inputs (Level 2) | ||||||||||||||||
U.S. Treasury and other government | $ | — | $ | 20,636 | $ | — | $ | 20,636 | |||||||||
Foreign bonds | 41 | 41 | |||||||||||||||
Mortgage-backed securities | 156 | 156 | |||||||||||||||
Corporate bonds | 1,968 | 1,968 | |||||||||||||||
Stocks — foreign | 1,334 | 1,334 | |||||||||||||||
Stocks — domestic | 29,365 | 29,365 | |||||||||||||||
Mutual funds — foreign | 20,222 | 20,222 | |||||||||||||||
Mutual funds — domestic | 39,371 | 39,371 | |||||||||||||||
Foreign currency forward contract | (4,751 | ) | (4,751 | ) | |||||||||||||
Cross-currency swap | (10,048 | ) | (10,048 | ) | |||||||||||||
Contingent consideration | (64,500 | ) | (64,500 | ) | |||||||||||||
Total | $ | 30,699 | $ | 67,595 | $ | (64,500 | ) | $ | 33,794 | ||||||||
Our marketable securities are composed of mainly available-for-sale securities, and 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. | |||||||||||||||||
Our cross-currency swap is a liability that has a fair value of $18.7 million at November 30, 2013, that was originally designed to fix our interest and principal payments in euros for the life of our unsecured 6.70% senior notes due November 1, 2015, which resulted in an effective euro fixed-rate borrowing of 5.31%. The basis for determining the rates for this swap included three legs at the inception of the agreement: the U.S. dollar (USD) fixed rate to a USD floating rate; the euro floating to euro fixed rate; and the dollar to euro basis fixed rate at inception. Therefore, we essentially exchanged fixed payments denominated in USD for fixed payments denominated in euros, paying fixed euros at 5.31% and receiving fixed USD at 6.70%. The ultimate payments are based on the notional principal amounts of $150 million and approximately 125 million euros. There will be an exchange of the notional amounts at maturity. The rates included in this swap are based upon observable market data, but are not quoted market prices, and therefore, the cross-currency swap is considered a Level 2 liability on the fair value hierarchy. Additionally, this cross-currency swap has been designated as a hedging instrument, and is classified as other long-term liabilities in our Consolidated Balance Sheets. | |||||||||||||||||
At November 30, 2013, we had a foreign currency forward contract with a fair value of approximately $2.6 million, which is classified in other current assets in our Consolidated Balance Sheets. At May 31, 2013, we had a foreign currency forward contract with a fair value of approximately $4.8 million, which is classified in other accrued liabilities in our Consolidated Balance Sheets. Our foreign currency forward contract, which has not been designated as a hedge, was designed to reduce our exposure to the 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. The foreign exchange rates included in the forward contract are based upon observable market data, but are not quoted market prices, and therefore, the forward currency forward contract is considered a Level 2 liability on the fair value hierarchy. | |||||||||||||||||
The contingent consideration represents the estimated fair value of the additional variable cash consideration payable in connection with recent acquisitions that is contingent upon the achievement of certain performance milestones. We estimated the fair value using expected future cash flows over the period in which the obligation is expected to be settled, and applied a discount rate that appropriately captures a market participant’s view of the risk associated with the obligation. | |||||||||||||||||
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 November 30, 2013 and May 31, 2013, 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 considered to be 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 November 30, 2013 and May 31, 2013 are as follows: | |||||||||||||||||
At November 30, 2013 | |||||||||||||||||
(In thousands) | Carrying | Fair Value | |||||||||||||||
Value | |||||||||||||||||
Cash and cash equivalents | $ | 224,172 | $ | 224,172 | |||||||||||||
Marketable equity securities | 113,663 | 113,663 | |||||||||||||||
Marketable debt securities | 21,561 | 21,561 | |||||||||||||||
Long-term debt, including current portion | 1,369,950 | 1,452,556 | |||||||||||||||
At May 31, 2013 | |||||||||||||||||
(In thousands) | Carrying | Fair Value | |||||||||||||||
Value | |||||||||||||||||
Cash and cash equivalents | $ | 343,554 | $ | 343,554 | |||||||||||||
Marketable equity securities | 90,292 | 90,292 | |||||||||||||||
Marketable debt securities | 22,801 | 22,801 | |||||||||||||||
Long-term debt, including current portion | 1,373,697 | 1,501,850 |
Reorganization_Proceedings_of_
Reorganization Proceedings of Certain Subsidiaries | 6 Months Ended |
Nov. 30, 2013 | |
Reorganization Proceedings of Certain Subsidiaries | ' |
NOTE 14 — REORGANIZATION PROCEEDINGS OF CERTAIN SUBSIDIARIES | |
General — Prior to May 31, 2010, Bondex and SPHC were defendants in various asbestos-related bodily injury lawsuits filed in various state courts. These cases generally sought unspecified damages for asbestos-related diseases based on alleged exposures to asbestos-containing products. | |
On May 31, 2010, Bondex and its parent, SPHC, filed voluntary petitions in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”) to reorganize under Chapter 11 of the U.S. Bankruptcy Code. SPHC and Bondex took this action in an effort to permanently and comprehensively resolve all pending and future asbestos-related liability claims associated with Bondex and SPHC. As a result of the filing, all litigation related to Bondex and SPHC asbestos personal injury claims has been stayed, with the exception of the cases referenced in Note 3 with respect to which the stay was lifted. The objective of the bankruptcy proceedings is to enable the filing entities to establish a section 524(g) trust accompanied by a court order that will direct all existing and future SPHC-related and Bondex-related claims to such trust, which will then compensate asbestos claimants based upon factors set forth in an approved plan of reorganization. Since the date of the filing, and in accordance with GAAP, the financial results of SPHC and Bondex have been deconsolidated from our financial results. | |
At a hearing held on November 13, 2013, the Bankruptcy Court granted the motion of the Official Committee of Asbestos Personal Injury Claimants and the Future Claimants’ Representative (collectively, the “ACC/FCR”) for standing to pursue SPHC estate claims against us, certain of our current and former directors and executive officers, and third party advisors. As previously disclosed, we anticipated that the ACC/FCR might be permitted to pursue claims on behalf of the SPHC and Bondex estates against us. We believe that the alleged SPHC estate claims are without merit and, if such claims are made, intend to contest them vigorously. | |
Both SPHC and Bondex (collectively, the “Debtors”), and the ACC/FCR have filed proposed plans of reorganization with the Bankruptcy Court. The Debtors’ proposed plan, which we support, would establish an asbestos trust to compensate legitimate asbestos claimants of the Debtors. The asbestos trust would be funded by two notes (one issued by SPHC and us as co-obligors, the other issued by Bondex and us as co-obligors). The notes would provide for an initial payment of $125 million to the trust. Additional payments under the notes would be determined by the final outcome (whether by court order or settlement) of the pending litigation of the estimated value of the Debtors’ asbestos claims and the anticipated litigation of the SPHC estate claims against us and other parties and possibly Bondex estate claims against us and other parties. The note payments would be made in cash or shares of our common stock. Upon consummation of the plan, SPHC and Bondex would continue to be our wholly owned direct and indirect subsidiaries, respectively, and have no further liability with respect to asbestos claims. We and our affiliates would likewise have no liability for such claims under the proposed plan, except as may be determined in the litigation of the SPHC and Bondex estate claims described above. | |
The proposed ACC/FCR plan, which is opposed by the Debtors and us, is an SPHC-only plan. It likewise provides for the creation of an asbestos trust, but only for SPHC asbestos claims. Pursuant to the ACC/FCR plan, our equity interest in SPHC would be cancelled, and 100% of the new stock in SPHC would be issued to the asbestos trust. Although the ACC/FCR plan would permanently protect SPHC against current and future asbestos claims, it would provide no protection to us and our affiliates and would contemplate that we would again be subject to suit in the tort system by current and future asbestos claimants of SPHC and Bondex. In addition, the plan would provide that the asbestos trust could sue us and our affiliates with respect to any claims that SPHC holds against us and our affiliates. | |
The Bankruptcy Court initially scheduled a hearing with respect to the disclosure statements for the two plans for December 17, 2013, but that hearing was adjourned until February 5, 2014. At or subsequent to that hearing, the Bankruptcy Court may take a variety of actions, including ordering one or both of the plans to be submitted to creditors for a vote, or determining not to authorize the submission of either of the plans to a vote. A vote of the creditors is an interim step toward the ultimate confirmation of a plan, which would remain subject to further proceedings before the Bankruptcy Court and the United States District Court for the District of Delaware (the “District Court”), and potential appeals of actions taken by those courts. The Debtors contend that the ACC/FCR plan is not confirmable, and the ACC/FCR have made similar contentions with respect to the Debtors’ plan. | |
At this time, we have no basis to make a determination as to whether either of the proposed plans of reorganization will be confirmed or otherwise move forward, or as to when, or whether, a consensual resolution of the bankruptcy proceedings will be reached, or as to the terms and conditions that may be set forth in any plan of reorganization that may ultimately be confirmed by the Bankruptcy Court and the District Court, whether by agreement or otherwise. | |
As previously disclosed, the Bankruptcy Court issued an opinion in May 2013 estimating the current and future asbestos claims associated with Bondex and SPHC at approximately $1.17 billion, which represented one step in the legal process in helping to determine the amount of potential funding for a 524(g) asbestos trust. The Debtors firmly believe that the opinion substantially overstates the amount of their liability and is not supported by the facts or the law, and we and the Debtors have appealed the ruling. Those appeals have been consolidated by the District Court and are pending in that court. The ACC/FCR have filed a motion to dismiss the appeals and we and the Debtors have filed a motion seeking certification of the estimation order for direct review by the United States Court of Appeals for the Third Circuit. Both motions are opposed and both remain pending. Briefing of the appeal has been stayed pending the disposition of the motions. Unless the motions to dismiss and for certification pending in the District Court are ruled on in the near term, we currently expect that the appeal process could take an additional two to three years. | |
Prior to the bankruptcy filing, the filing entities had litigated and, on many occasions, settled asbestos-related products liability claims brought against them. The debtors paid $92.6 million during the year ended May 31, 2010, prior to the bankruptcy filing, in connection with the litigation and settlement of asbestos claims, $42.6 million of which consisted of defense costs. With the exception of the appeal bonds described in Note 3, no claims have been paid since the bankruptcy filing and it is not contemplated that any claims will be paid until a plan of reorganization is confirmed and an asbestos trust is established and operating. | |
Prior to the Chapter 11 bankruptcy filing, we recorded asbestos-related contingent liabilities that included estimations of future costs. Such estimates by their nature are subject to many uncertainties that may change over time, including (i) the ultimate number of claims filed; (ii) the amounts required to resolve both currently known and future unknown claims; (iii) the amount of insurance, if any, available to cover such claims, including the outcome of coverage litigation against the filing entities’ third-party insurers; (iv) future earnings and cash flow of the filing entities; (v) the impact of bankruptcies of other companies whose share of liability may be imposed on the filing entities under certain state liability laws; (vi) the unpredictable aspects of the litigation process including a changing trial docket and the jurisdictions in which trials are scheduled; (vii) the outcome of any such trials, including potential judgments or jury verdicts, as a result of the strategy of Bondex and SPHC to take selective cases to verdict; (viii) the lack of specific information in many cases concerning exposure to products for which Bondex, SPHC, or another of our subsidiaries is allegedly responsible, and the claimants’ alleged diseases resulting from such exposure; (ix) potential changes in applicable federal and/or state tort liability law; and (x) the potential impact of various proposed structured settlement transactions. All these factors may have a material effect upon future asbestos-related liability estimates. | |
As a result of their bankruptcy filing, SPHC and Bondex are precluded from paying dividends to shareholders and from making payments on any pre-bankruptcy filing accounts or notes payable that are due and owing to any other entity within the RPM group of companies (the “Pre-Petition Intercompany Payables”) or other pre-petition creditors during the pendency of the bankruptcy case, without the Bankruptcy Court’s approval. Moreover, no assurances can be given that any of the Pre-Petition Intercompany Payables will ever be paid or otherwise satisfied. | |
When SPHC emerges from the jurisdiction of the Bankruptcy Court, the subsequent accounting will be determined based upon the applicable circumstances and facts at such time, including the terms of any plan of reorganization. | |
SPHC has assessed its liquidity position as a result of the bankruptcy filing and believes that it can continue to fund its and its subsidiaries’ operating activities and meet its debt and capital requirements for the foreseeable future. | |
Historical Asbestos Liability Reserve — In fiscal 2006, management retained Crawford & Winiarski (“C&W”), an independent, third-party consulting firm with expertise in the area of asbestos valuation work, to assist it in calculating an estimate of Bondex’s liability for unasserted-potential-future-asbestos-related claims. C&W’s methodology to project Bondex’s liability for unasserted-potential-future-asbestos-related claims included an analysis of: (a) a widely accepted forecast of the population likely to have been exposed to asbestos; (b) epidemiological studies estimating the number of people likely to develop asbestos-related diseases; (c) the historical rate at which mesothelioma incidences resulted in the payment of claims by Bondex; (d) the historical settlement averages to value the projected number of future compensable mesothelioma claims; (e) the historical ratio of mesothelioma-related indemnity payments to non-mesothelioma indemnity payments; and (f) the historical defense costs and their relationship with total indemnity payments. Based upon the results of this analysis, Bondex recorded an accrued liability for asbestos claims through 2016 as of May 31, 2006 of $421.3 million. This amount was calculated on a pretax basis and was not discounted for the time value of money. | |
During the fiscal year ended May 31, 2008, the ten-year asbestos liability established as of May 31, 2006 was reviewed and evaluated. As part of that process, the credibility of epidemiological studies of Bondex’s mesothelioma claims, first introduced to management by C&W some two-and-one-half years earlier, was validated. At the core of the evaluation process, and the basis of C&W’s actuarial work on behalf of Bondex, is the Nicholson Study. The Nicholson Study is the most widely recognized reference in bankruptcy trust valuations, global settlement negotiations and the Congressional Budget Office’s work done on the proposed FAIR Act in 2006. Based on our ongoing comparison of the Nicholson Study projections and Bondex’s specific actual experience, which at that time continued to bear an extremely close correlation to the study’s projections, the asbestos liability projection was extended out to the year 2028. C&W assisted in calculating an estimate of our liability for unasserted-potential-future-asbestos-related claims out to 2028. C&W projected that the cost of extending the asbestos liability to 2028, coupled with an updated evaluation of Bondex’s current known claims to reflect its most recent actual experience, would be $288.1 million. Therefore, management added $288.1 million to the existing asbestos liability, which brought Bondex’s total asbestos-related balance sheet liabilities at May 31, 2008 to $559.7 million. On May 30, 2010, the day prior to the bankruptcy filing, Bondex had recorded an asbestos related product liability of $397.7 million. | |
As noted above, however, the Bankruptcy Court has now estimated the present and future asbestos-related liabilities of Bondex and SPHC at $1.17 billion, and that determination is the subject of pending appeals. |
Contingencies_and_Other_Accrue
Contingencies and Other Accrued Losses | 6 Months Ended | ||||||||||||||||
Nov. 30, 2013 | |||||||||||||||||
Contingencies and Other Accrued Losses | ' | ||||||||||||||||
NOTE 15 — CONTINGENCIES AND OTHER ACCRUED LOSSES | |||||||||||||||||
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 reserves provide for these potential losses as well as other uninsured claims. Product liability reserves 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. While it is reasonably possible that excess liabilities, if they were to occur, could be material to operating results in any given quarter or year of their recognition, we do not believe that it is reasonably possible that excess liabilities would have a material adverse effect on our long-term results of operations, liquidity or consolidated financial position. | |||||||||||||||||
We also offer warranty programs at several of our industrial businesses and have established a product warranty liability. We review this liability for adequacy on a quarterly basis and adjust it as necessary. The primary factors that could affect this liability may include changes in the historical system performance rate as well as the 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 liability represents our best estimate at November 30, 2013, we can provide no assurances that we will not experience material claims in the future or that we will not incur significant costs to resolve such claims beyond the amounts accrued or beyond what we may recover from our suppliers. Product warranty expense is recorded within selling, general and administrative expense. | |||||||||||||||||
The following table includes the changes in our accrued warranty balances: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
November 30, | November 30, | ||||||||||||||||
(In thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Beginning Balance | $ | 9,842 | $ | 14,527 | $ | 9,330 | $ | 14,751 | |||||||||
Deductions (1) | (7,179 | ) | (4,082 | ) | (11,975 | ) | (7,987 | ) | |||||||||
Provision charged to SG&A expense | 5,916 | 4,693 | 11,224 | 8,374 | |||||||||||||
Ending Balance | $ | 8,579 | $ | 15,138 | $ | 8,579 | $ | 15,138 | |||||||||
-1 | Primarily claims paid during the year. | ||||||||||||||||
In addition, like other companies participating in similar lines of business, some of our subsidiaries are involved in several proceedings relating to environmental matters. It is our policy to accrue remediation costs when it is probable that such efforts will be required and the related costs can be reasonably estimated. These liabilities are undiscounted and are not material to our financial statements during any of the periods presented. | |||||||||||||||||
As previously disclosed, we recorded a $65.1 million accrual during the year ended May 31, 2013 associated with settlement discussions with the U.S. Department of Justice (the “DOJ”) and the U.S. General Services Administration (the “GSA”) Office of Inspector General aimed at resolving an existing investigation. Since first receiving a broad request for documents from the GSA in March 2011, we cooperated with that investigation, which involved our compliance with certain pricing terms and conditions of our GSA Multiple Award Schedule contracts under which the roofing division of our Building Solutions Group sold products and services to the federal government. A substantial majority of the transactions as to which potential compliance issues were raised took place during the period from 2002 to 2008. In August 2013, we entered into a final agreement with the DOJ and the GSA Office of Inspector General regarding this matter. During the six months ended November 30, 2013, we paid the GSA Office of Inspector General $61.9 million and made other payments for miscellaneous expenses relating to this matter for approximately $0.4 million. We expect to pay approximately $2.8 million more in legal fees and other related costs arising out of this investigation. The accrual for this contingency represents our assessment of the amount of probable loss that may result from this matter. In assessing our probable loss, we have considered the potentially disputed amounts under the relevant contracts, together with our understanding of policies for resolving such matters. The actual amount of our loss under the terms of any settlement may vary from the amount of the accrual. The accrual for this contingency is classified in other accrued liabilities in our Consolidated Balance Sheets. |
Stock_Repurchase_Program
Stock Repurchase Program | 6 Months Ended |
Nov. 30, 2013 | |
Stock Repurchase Program | ' |
NOTE 16 — 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 for general corporate purposes. Our current intent is to limit our repurchases only to amounts required to offset dilution created by stock issued in connection with our equity-based compensation plans, or approximately one to two million shares per year. As a result of this authorization, we may repurchase shares from time to time in the open market or in private transactions at various times and in amounts and for prices that our management deems appropriate, subject to insider trading rules and other securities law restrictions. The timing of our purchases will depend upon prevailing market conditions, alternative uses of capital and other factors. We may limit or terminate the repurchase program at any time. During the three months ended November 30, 2013, we did not repurchase any shares of our common stock under this program. |
Equity
Equity | 6 Months Ended | ||||||||||||
Nov. 30, 2013 | |||||||||||||
Equity | ' | ||||||||||||
NOTE 17 — EQUITY | |||||||||||||
The following tables illustrate the components of total equity and comprehensive income for the three months ended November 30, 2013 and 2012: | |||||||||||||
(In thousands) | Total RPM | Noncontrolling | Total Equity | ||||||||||
International | Interest | ||||||||||||
Inc. Equity | |||||||||||||
Total equity at August 31, 2013 | $ | 1,261,684 | $ | 162,043 | $ | 1,423,727 | |||||||
Net income | 63,562 | 4,852 | 68,414 | ||||||||||
Other Comprehensive Income: | |||||||||||||
Foreign currency translation adjustments | 19,409 | 4,796 | 24,205 | ||||||||||
Pension and other postretirement benefit liability adjustments, net of tax | 2,200 | 11 | 2,211 | ||||||||||
Unrealized (loss) on securities, net of tax | 6,341 | 60 | 6,401 | ||||||||||
Unrealized gain on derivatives, net of tax | (782 | ) | (212 | ) | (994 | ) | |||||||
Total Other Comprehensive Income, net of tax | 27,168 | 4,655 | 31,823 | ||||||||||
Comprehensive Income | 90,730 | 9,507 | 100,237 | ||||||||||
Dividends paid | (31,960 | ) | (31,960 | ) | |||||||||
Other noncontrolling interest activity | (88 | ) | 88 | — | |||||||||
Shares repurchased | (3,201 | ) | (3,201 | ) | |||||||||
Stock option exercises, net | 261 | 261 | |||||||||||
Stock based compensation expense | 773 | 773 | |||||||||||
Restricted awards, net | 4,023 | 4,023 | |||||||||||
Total Equity at November 30, 2013 | $ | 1,322,222 | $ | 171,638 | $ | 1,493,860 | |||||||
(In thousands) | Total RPM | Noncontrolling | Total Equity | ||||||||||
International | Interest | ||||||||||||
Inc. Equity | |||||||||||||
Total equity at August 31, 2012 | $ | 1,226,240 | $ | 143,360 | $ | 1,369,600 | |||||||
Net income | 41,668 | 4,419 | 46,087 | ||||||||||
Other Comprehensive Income: | |||||||||||||
Foreign currency translation adjustments | (3,659 | ) | 1,623 | (2,036 | ) | ||||||||
Pension and other postretirement benefit liability adjustments, net of tax | 3,242 | 136 | 3,378 | ||||||||||
Unrealized gain (loss) on securities, net of tax | 1,865 | 211 | 2,076 | ||||||||||
Unrealized gain on derivatives, net of tax | (585 | ) | (159 | ) | (744 | ) | |||||||
Total Other Comprehensive Income, net of tax | 863 | 1,811 | 2,674 | ||||||||||
Comprehensive Income | 42,531 | 6,230 | 48,761 | ||||||||||
Dividends paid | (29,773 | ) | (29,773 | ) | |||||||||
Other noncontrolling interest activity | (975 | ) | — | (975 | ) | ||||||||
Shares repurchased | (1,094 | ) | (1,094 | ) | |||||||||
Stock option exercises, net | 1,762 | 1,762 | |||||||||||
Stock based compensation expense | 623 | 623 | |||||||||||
Restricted awards, net | 3,638 | 3,638 | |||||||||||
Total Equity at November 30, 2012 | $ | 1,242,952 | $ | 149,590 | $ | 1,392,542 | |||||||
The following table illustrates the components of total equity and comprehensive income for the six months ended November 30, 2013 and 2012: | |||||||||||||
(In thousands) | Total RPM | Noncontrolling | Total Equity | ||||||||||
International | Interest | ||||||||||||
Inc. Equity | |||||||||||||
Total equity at May 31, 2013 | $ | 1,200,858 | $ | 154,075 | $ | 1,354,933 | |||||||
Net income | 166,660 | 8,643 | 175,303 | ||||||||||
Other Comprehensive Income: | |||||||||||||
Foreign currency translation adjustments | 2,338 | 8,453 | 10,791 | ||||||||||
Pension and other postretirement benefit liability adjustments, net of tax | 4,961 | 174 | 5,135 | ||||||||||
Unrealized gain (loss) on securities, net of tax | 4,909 | 53 | 4,962 | ||||||||||
Unrealized (loss) on derivatives, net of tax | (696 | ) | (189 | ) | (885 | ) | |||||||
Total Other Comprehensive Income, net of tax | 11,512 | 8,491 | 20,003 | ||||||||||
Comprehensive Income | 178,172 | 17,134 | 195,306 | ||||||||||
Dividends paid | (61,796 | ) | (61,796 | ) | |||||||||
Other noncontrolling interest activity | (429 | ) | 429 | — | |||||||||
Shares repurchased | (6,867 | ) | (6,867 | ) | |||||||||
Stock option exercises, net | 2,662 | 2,662 | |||||||||||
Stock based compensation expense | 1,482 | 1,482 | |||||||||||
Restricted awards, net | 8,140 | 8,140 | |||||||||||
Total Equity at November 30, 2013 | $ | 1,322,222 | $ | 171,638 | $ | 1,493,860 | |||||||
(In thousands) | Total RPM | Noncontrolling | Total Equity | ||||||||||
International | Interest | ||||||||||||
Inc. Equity | |||||||||||||
Total equity at May 31, 2012 | $ | 1,183,656 | $ | 130,327 | $ | 1,313,983 | |||||||
Net income | 75,581 | 8,373 | 83,954 | ||||||||||
Other Comprehensive Income: | |||||||||||||
Foreign currency translation adjustments | 25,005 | 12,189 | 37,194 | ||||||||||
Pension and other postretirement benefit liability adjustments, net of tax | 4,776 | (192 | ) | 4,584 | |||||||||
Unrealized gain (loss) on securities, net of tax | 2,690 | (966 | ) | 1,724 | |||||||||
Unrealized gain on derivatives, net of tax | (416 | ) | (141 | ) | (557 | ) | |||||||
Total Other Comprehensive Income, net of tax | 32,055 | 10,890 | 42,945 | ||||||||||
Comprehensive Income | 107,636 | 19,263 | 126,899 | ||||||||||
Dividends paid | (58,054 | ) | (58,054 | ) | |||||||||
Other noncontrolling interest activity | 309 | 309 | |||||||||||
Shares repurchased | (1,094 | ) | (1,094 | ) | |||||||||
Stock option exercises, net | 2,365 | 2,365 | |||||||||||
Stock based compensation expense | 1,211 | 1,211 | |||||||||||
Restricted awards, net | 6,923 | 6,923 | |||||||||||
Total Equity at November 30, 2012 | $ | 1,242,952 | $ | 149,590 | $ | 1,392,542 | |||||||
Segment_Information
Segment Information | 6 Months Ended | ||||||||||||||||
Nov. 30, 2013 | |||||||||||||||||
Segment Information | ' | ||||||||||||||||
NOTE 18 — SEGMENT INFORMATION | |||||||||||||||||
We operate a portfolio of businesses and product lines that manufacture and sell a variety of specialty paints, protective coatings and roofing systems, sealants and adhesives. We manage our portfolio by organizing our businesses and product lines into two reportable segments: the industrial reportable segment and the consumer reportable segment. Within each reportable segment, we aggregate several operating segments that consist of individual groups of companies and product lines, which generally address common markets, share similar economic characteristics, utilize similar technologies and can share manufacturing or distribution capabilities. Our seven operating segments represent components of our business for which separate financial information is available that is utilized on a regular basis by our chief executive officer in determining how to allocate the assets of the company and evaluate performance. These seven 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. | |||||||||||||||||
Our industrial reportable segment products are sold throughout North America and also account for the majority of our international sales. Our industrial product lines are sold directly to contractors, distributors and end-users, such as industrial manufacturing facilities, public institutions and other commercial customers. This reportable segment comprises four separate operating segments — Tremco Group, Tremco illbruck Group, Performance Coatings Group and RPM2-Industrial Group. Products and services within this reportable segment include construction chemicals; roofing systems; weatherproofing and other sealants; polymer flooring; edible coatings and specialty glazes for pharmaceutical, cosmetic and food industries; and other specialty chemicals. | |||||||||||||||||
Our consumer reportable segment manufactures and markets professional use and do-it-yourself (“DIY”) products for a variety of mainly consumer applications, including home improvement and personal leisure activities. Our consumer segment’s major manufacturing and distribution operations are located primarily in North America, along with a few locations in Europe. Consumer segment products are primarily sold directly to mass merchandisers, home improvement centers, hardware stores, paint stores, craft shops, cosmetic companies and to other smaller customers through distributors. This reportable segment comprises three operating segments — DAP Group, RPM2-Consumer Group and Rust-Oleum Group. Products within this reportable segment include specialty, hobby and professional paints; nail care enamels; caulks; adhesives; silicone sealants and wood stains. | |||||||||||||||||
In addition to our two 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 either 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 reflect the results of our reportable segments consistent with our management philosophy, and represent the information we utilize, in conjunction with various strategic, operational and other financial performance criteria, in evaluating the performance of our portfolio of businesses. | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
(In thousands) | November 30, | November 30, | November 30, | November 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net Sales | |||||||||||||||||
Industrial Segment | $ | 708,713 | $ | 691,076 | $ | 1,439,939 | $ | 1,394,411 | |||||||||
Consumer Segment | 362,774 | 326,350 | 796,222 | 669,729 | |||||||||||||
Consolidated | $ | 1,071,487 | $ | 1,017,426 | $ | 2,236,161 | $ | 2,064,140 | |||||||||
Income (Loss) Before Income Taxes | |||||||||||||||||
Industrial Segment | $ | 81,394 | $ | 75,495 | $ | 178,975 | $ | 149,799 | |||||||||
Consumer Segment | 51,720 | 38,561 | 134,437 | 97,349 | |||||||||||||
Corporate/Other | (35,530 | ) | (43,014 | ) | (68,612 | ) | (104,044 | ) | |||||||||
Consolidated | $ | 97,584 | $ | 71,042 | $ | 244,800 | $ | 143,104 | |||||||||
November 30, | May 31, | ||||||||||||||||
2013 | 2013 | ||||||||||||||||
Identifiable Assets | |||||||||||||||||
Industrial Segment | $ | 2,338,802 | $ | 2,461,163 | |||||||||||||
Consumer Segment | 1,613,339 | 1,584,336 | |||||||||||||||
Corporate/Other | 118,380 | 70,027 | |||||||||||||||
Consolidated | $ | 4,070,521 | $ | 4,115,526 | |||||||||||||
205_Million_Convertible_Note_O
$205 Million Convertible Note Offering | 6 Months Ended |
Nov. 30, 2013 | |
$205 Million Convertible Note Offering | ' |
NOTE 19 — $205 MILLION CONVERTIBLE NOTE OFFERING | |
Subsequent to the current quarter, we sold $205 million of our 2.25% Convertible Senior Notes (the “Convertible Notes”) due December 15, 2020. In accordance with the agreement, we will pay interest on the Convertible Notes semi-annually on June 15th and December 15th of each year, beginning on June 15th, 2014. The notes will be convertible under certain circumstances and during certain periods at an initial conversion rate of 18.8905 shares of RPM’s common stock per $1,000 principal amount of notes (representing an initial conversion price of approximately $52.94 per share of common stock), subject to adjustment in certain circumstances. Upon conversion, the notes may be settled, at our election, in cash, shares of RPM’s common stock, or any combination thereof. | |
The net proceeds, totaling approximately $200.1 million, were used to repay $200.0 million in principal amount of unsecured senior notes due December 15, 2013, which had an interest rate of 6.25%, together with accrued and unpaid interest thereon. Since we refinanced this debt with proceeds received from our issuance of $205 million of 2.25% convertible notes due 2020, the senior notes were classified as long-term debt at November 30, 2013. |
Investment_Income_Net_Tables
Investment (Income) , Net (Tables) | 6 Months Ended | ||||||||||||||||
Nov. 30, 2013 | |||||||||||||||||
Investment (Income) Expenses, Net | ' | ||||||||||||||||
Investment (income) expense, net, consists of the following components: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
November 30, | November 30, | ||||||||||||||||
(In thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Interest (income) | $ | (1,641 | ) | $ | (1,565 | ) | $ | (3,144 | ) | $ | (3,860 | ) | |||||
(Gain) on sale of marketable securities | (227 | ) | (8 | ) | (2,424 | ) | (4,592 | ) | |||||||||
Other-than-temporary impairment on securities | 111 | 450 | 162 | 564 | |||||||||||||
Dividend (income) | (248 | ) | (241 | ) | (493 | ) | (450 | ) | |||||||||
Investment (income) expense, net | $ | (2,005 | ) | $ | (1,364 | ) | $ | (5,899 | ) | $ | (8,338 | ) | |||||
Other_Income_Expense_Net_Table
Other (Income) Expense, Net (Tables) | 6 Months Ended | ||||||||||||||||
Nov. 30, 2013 | |||||||||||||||||
Other (Income) Expense, Net | ' | ||||||||||||||||
Other (income) expense, net, consists of the following components: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
November 30, | November 30, | ||||||||||||||||
(In thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Royalty (income), net | $ | (709 | ) | $ | (433 | ) | $ | (391 | ) | $ | (727 | ) | |||||
Loss on Kemrock conversion option | — | 847 | — | 9,030 | |||||||||||||
(Income) loss related to unconsolidated equity affiliates | (782 | ) | 9,280 | (1,534 | ) | 40,813 | |||||||||||
Other (income) expense, net | $ | (1,491 | ) | $ | 9,694 | $ | (1,925 | ) | $ | 49,116 | |||||||
Pension_Plans_Tables
Pension Plans (Tables) | 6 Months Ended | ||||||||||||||||
Nov. 30, 2013 | |||||||||||||||||
Retirement-Related Benefit Plans' Impact on Income Before Income Taxes | ' | ||||||||||||||||
The following tables provide the retirement-related benefit plans’ impact on income before income taxes for the three and six month periods ended November 30, 2013: | |||||||||||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||
November 30, | November 30, | ||||||||||||||||
Pension Benefits | 2013 | 2012 | 2013 | 2012 | |||||||||||||
(In thousands) | |||||||||||||||||
Service cost | $ | 6,764 | $ | 6,488 | $ | 1,109 | $ | 1,050 | |||||||||
Interest cost | 4,510 | 4,060 | 1,799 | 1,769 | |||||||||||||
Expected return on plan assets | (5,191 | ) | (4,358 | ) | (2,096 | ) | (1,846 | ) | |||||||||
Amortization of: | |||||||||||||||||
Prior service cost | 84 | 87 | 1 | 2 | |||||||||||||
Net actuarial losses recognized | 3,305 | 4,222 | 624 | 692 | |||||||||||||
Net Periodic Benefit Cost | $ | 9,472 | $ | 10,499 | $ | 1,437 | $ | 1,667 | |||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||
November 30, | November 30, | ||||||||||||||||
Postretirement Benefits | 2013 | 2012 | 2013 | 2012 | |||||||||||||
(In thousands) | |||||||||||||||||
Service cost | $ | — | $ | — | $ | 327 | $ | 288 | |||||||||
Interest cost | 81 | 88 | 317 | 289 | |||||||||||||
Amortization of: | |||||||||||||||||
Prior service (credit) | (22 | ) | (22 | ) | |||||||||||||
Net actuarial (gains) losses recognized | (29 | ) | 4 | 134 | 114 | ||||||||||||
Net Periodic Benefit Cost | $ | 30 | $ | 70 | $ | 778 | $ | 691 | |||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||
Six Months Ended | Six Months Ended | ||||||||||||||||
November 30, | November 30, | ||||||||||||||||
Pension Benefits | 2013 | 2012 | 2013 | 2012 | |||||||||||||
(In thousands) | |||||||||||||||||
Service cost | $ | 13,528 | $ | 12,976 | $ | 2,218 | $ | 2,100 | |||||||||
Interest cost | 9,020 | 8,120 | 3,599 | 3,538 | |||||||||||||
Expected return on plan assets | (10,381 | ) | (8,716 | ) | (4,191 | ) | (3,692 | ) | |||||||||
Amortization of: | |||||||||||||||||
Prior service cost | 167 | 174 | 2 | 4 | |||||||||||||
Net actuarial losses recognized | 6,611 | 8,444 | 1,247 | 1,384 | |||||||||||||
Net Periodic Benefit Cost | $ | 18,945 | $ | 20,998 | $ | 2,875 | $ | 3,334 | |||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||
Six Months Ended | Six Months Ended | ||||||||||||||||
November 30, | November 30, | ||||||||||||||||
Postretirement Benefits | 2013 | 2012 | 2013 | 2012 | |||||||||||||
(In thousands) | |||||||||||||||||
Service cost | $ | — | $ | — | $ | 654 | $ | 576 | |||||||||
Interest cost | 162 | 176 | 634 | 578 | |||||||||||||
Amortization of: | |||||||||||||||||
Prior service (credit) | (44 | ) | (44 | ) | — | — | |||||||||||
Net actuarial (gains) losses recognized | (58 | ) | 8 | 267 | 228 | ||||||||||||
Net Periodic Benefit Cost | $ | 60 | $ | 140 | $ | 1,555 | $ | 1,382 | |||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 6 Months Ended | ||||||||||||||||
Nov. 30, 2013 | |||||||||||||||||
Reconciliation of Numerator and Denominator of Basic and Diluted Earnings Per Share Calculated using Two-Class Method | ' | ||||||||||||||||
The following table sets forth the reconciliation of the numerator and denominator of basic and diluted earnings per share, as calculated using the two-class method, for the three and six month periods ended November 30, 2013 and 2012: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
November 30, | November 30, | ||||||||||||||||
(In thousands, except per share amounts) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Numerator for earnings per share: | |||||||||||||||||
Net income attributable to RPM International Inc. stockholders | $ | 63,562 | $ | 41,668 | $ | 166,660 | $ | 75,581 | |||||||||
Less: Allocation of earnings and dividends to participating securities | (1,379 | ) | (929 | ) | (3,521 | ) | (1,526 | ) | |||||||||
Net income available to common shareholders — basic | 62,183 | 40,739 | 163,139 | 74,055 | |||||||||||||
Add: Undistributed earnings reallocated to unvested shareholders | 6 | 2 | 17 | 2 | |||||||||||||
Net income available to common shareholders — diluted | $ | 62,189 | $ | 40,741 | $ | 163,156 | $ | 74,057 | |||||||||
Denominator for basic and diluted earnings per share: | |||||||||||||||||
Basic weighted average common shares | 129,426 | 128,885 | 129,385 | 128,844 | |||||||||||||
Average diluted options | 992 | 815 | 974 | 791 | |||||||||||||
Net issuable common share equivalents | |||||||||||||||||
Total shares for diluted earnings per share (1), (2) | 130,418 | 129,700 | 130,359 | 129,635 | |||||||||||||
Earnings Per Share of Common Stock Attributable to RPM International Inc. Stockholders: | |||||||||||||||||
Basic Earnings Per Share of Common Stock | $ | 0.48 | $ | 0.32 | $ | 1.26 | $ | 0.57 | |||||||||
Diluted Earnings Per Share of Common Stock | $ | 0.48 | $ | 0.31 | $ | 1.25 | $ | 0.57 | |||||||||
-1 | For the quarters ended November 30, 2013 and 2012, respectively, approximately 3,078,000 shares and 3,151,000 shares of stock granted under stock-based compensation plans were excluded from the calculation of diluted EPS, as the effect would have been anti-dilutive. | ||||||||||||||||
-2 | For the six month periods ended November 30, 2013 and 2012, approximately 2,939,000 shares and 2,970,000 shares of stock, respectively, granted under stock-based compensation plans were excluded from the calculation of diluted EPS for those periods, as the effect would have been anti-dilutive. |
Inventories_Tables
Inventories (Tables) | 6 Months Ended | ||||||||
Nov. 30, 2013 | |||||||||
Major Classes of Inventories | ' | ||||||||
Inventories were composed of the following major classes: | |||||||||
(In thousands) | November 30, 2013 | May 31, 2013 | |||||||
Raw material and supplies | $ | 193,709 | $ | 185,590 | |||||
Finished goods | 403,951 | 363,090 | |||||||
Total Inventory | $ | 597,660 | $ | 548,680 | |||||
Restructuring_Tables
Restructuring (Tables) | 6 Months Ended | ||||||||||||||||
Nov. 30, 2013 | |||||||||||||||||
Changes in Accrued Restructuring Balances | ' | ||||||||||||||||
The following table includes the changes in our accrued restructuring balances: | |||||||||||||||||
(In thousands) | Long-Lived | Employee | Site | Total | |||||||||||||
Asset | Severance | Preparation | |||||||||||||||
Charges | and | ||||||||||||||||
Equipment | |||||||||||||||||
Relocation | |||||||||||||||||
Balance at May 31, 2013 | $ | 4,729 | $ | 12,656 | $ | 397 | $ | 17,782 | |||||||||
Charge to expense | — | 128 | — | 128 | |||||||||||||
Cash payments | — | (1,416 | ) | — | (1,416 | ) | |||||||||||
Noncash and foreign exchange impacts | 123 | 165 | 10 | 298 | |||||||||||||
Balance at August 31, 2013 | $ | 4,852 | $ | 11,533 | $ | 407 | $ | 16,792 | |||||||||
Charge to expense | — | — | — | — | |||||||||||||
Cash payments | — | (7,121 | ) | — | (7,121 | ) | |||||||||||
Noncash and foreign exchange impacts | 136 | 185 | 12 | 333 | |||||||||||||
Balance at November 30, 2013 | $ | 4,988 | $ | 4,597 | $ | 419 | $ | 10,004 | |||||||||
Marketable_Securities_Tables
Marketable Securities (Tables) | 6 Months Ended | ||||||||||||||||
Nov. 30, 2013 | |||||||||||||||||
Summary of Marketable Securities by Asset Type | ' | ||||||||||||||||
The following tables summarize marketable securities held at November 30, 2013 and May 31, 2013 by asset type: | |||||||||||||||||
Available-For-Sale Securities | |||||||||||||||||
(In thousands) | Amortized | Gross | Gross | Fair Value | |||||||||||||
Cost | Unrealized | Unrealized | (Net | ||||||||||||||
Gains | Losses | Carrying | |||||||||||||||
Amount) | |||||||||||||||||
November 30, 2013 | |||||||||||||||||
Equity securities: | |||||||||||||||||
Stocks — foreign | $ | 372 | $ | 107 | $ | (39 | ) | $ | 440 | ||||||||
Stocks — domestic | 31,849 | 7,947 | (239 | ) | 39,557 | ||||||||||||
Mutual funds — foreign | 26,367 | 5,535 | — | 31,902 | |||||||||||||
Mutual funds — domestic | 40,649 | 2,132 | (1,017 | ) | 41,764 | ||||||||||||
Total equity securities | 99,237 | 15,721 | (1,295 | ) | 113,663 | ||||||||||||
Fixed maturity: | |||||||||||||||||
U.S. treasury and other government | 19,595 | 163 | (286 | ) | 19,472 | ||||||||||||
Corporate bonds | 1,709 | 196 | — | 1,905 | |||||||||||||
Foreign bonds | 37 | 3 | — | 40 | |||||||||||||
Mortgage-backed securities | 87 | 57 | — | 144 | |||||||||||||
Total fixed maturity securities | 21,428 | 419 | (286 | ) | 21,561 | ||||||||||||
Total | $ | 120,665 | $ | 16,140 | $ | (1,581 | ) | $ | 135,224 | ||||||||
Available-For-Sale Securities | |||||||||||||||||
(In thousands) | Amortized | Gross | Gross | Fair Value | |||||||||||||
Cost | Unrealized | Unrealized | (Net | ||||||||||||||
Gains | Losses | Carrying | |||||||||||||||
Amount) | |||||||||||||||||
May 31, 2013 | |||||||||||||||||
Equity securities: | |||||||||||||||||
Stocks — foreign | $ | 1,090 | $ | 244 | $ | — | $ | 1,334 | |||||||||
Stocks — domestic | 24,492 | 5,265 | (392 | ) | 29,365 | ||||||||||||
Mutual funds — foreign | 18,328 | 1,901 | (7 | ) | 20,222 | ||||||||||||
Mutual funds — domestic | 39,184 | 679 | (492 | ) | 39,371 | ||||||||||||
Total equity securities | 83,094 | 8,089 | (891 | ) | 90,292 | ||||||||||||
Fixed maturity: | |||||||||||||||||
U.S. treasury and other government | 20,528 | 247 | (139 | ) | 20,636 | ||||||||||||
Coporate bonds | 1,724 | 244 | — | 1,968 | |||||||||||||
Foreign bonds | 37 | 4 | — | 41 | |||||||||||||
Mortgage-backed securities | 100 | 60 | (4 | ) | 156 | ||||||||||||
Total fixed maturity securities | 22,389 | 555 | (143 | ) | 22,801 | ||||||||||||
Total | $ | 105,483 | $ | 8,644 | $ | (1,034 | ) | $ | 113,093 | ||||||||
Summary of Securities in Unrealized Loss Position and Included in Accumulated Other Comprehensive Income, Aggregated by Length of Time Investments | ' | ||||||||||||||||
Summarized below are the securities we held at November 30, 2013 and May 31, 2013 that were in an unrealized loss position and that were included in accumulated other comprehensive income, aggregated by the length of time the investments had been in that position: | |||||||||||||||||
November 30, 2013 | May 31, 2013 | ||||||||||||||||
(In thousands) | Fair Value | Gross | Fair Value | Gross | |||||||||||||
Unrealized | Unrealized | ||||||||||||||||
Losses | Losses | ||||||||||||||||
Total investments with unrealized losses | $ | 35,851 | $ | (1,581 | ) | $ | 36,582 | $ | (1,034 | ) | |||||||
Unrealized losses with a loss position for less than 12 months | 23,819 | (1,065 | ) | 36,327 | (956 | ) | |||||||||||
Unrealized losses with a loss position for more than 12 months | 12,032 | (516 | ) | 255 | (78 | ) | |||||||||||
Net Carrying Values of Debt Securities by Contractual Maturity | ' | ||||||||||||||||
The net carrying values of debt securities at November 30, 2013, 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 | Fair | |||||||||||||||
Cost | Value | ||||||||||||||||
Due: | |||||||||||||||||
Less than one year | $ | 3,210 | $ | 3,227 | |||||||||||||
One year through five years | 12,055 | 12,118 | |||||||||||||||
Six years through ten years | 4,712 | 4,647 | |||||||||||||||
After ten years | 1,451 | 1,569 | |||||||||||||||
$ | 21,428 | $ | 21,561 | ||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 6 Months Ended | ||||||||||||||||
Nov. 30, 2013 | |||||||||||||||||
Assets and Liabilities Measured at Fair Value on Recurring Basis and Categorized using Fair Value Hierarchy | ' | ||||||||||||||||
The following tables present our assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy. | |||||||||||||||||
(In thousands) | Quoted Prices in | Significant | Significant | Fair Value at | |||||||||||||
Active Markets | Other | Unobservable | November 30, 2013 | ||||||||||||||
for Identical | Observable | Inputs (Level 3) | |||||||||||||||
Assets (Level 1) | Inputs (Level 2) | ||||||||||||||||
U.S. Treasury and other government | $ | — | $ | 19,472 | $ | — | $ | 19,472 | |||||||||
Foreign bonds | 40 | 40 | |||||||||||||||
Mortgage-backed securities | 144 | 144 | |||||||||||||||
Corporate bonds | 1,905 | 1,905 | |||||||||||||||
Stocks — foreign | 440 | 440 | |||||||||||||||
Stocks — domestic | 39,557 | 39,557 | |||||||||||||||
Mutual funds — foreign | 31,902 | 31,902 | |||||||||||||||
Mutual funds — domestic | 41,764 | 41,764 | |||||||||||||||
Foreign currency forward contract | 2,620 | 2,620 | |||||||||||||||
Cross-currency swap | (18,668 | ) | (18,668 | ) | |||||||||||||
Contingent consideration | — | (72,386 | ) | (72,386 | ) | ||||||||||||
Total | $ | 39,997 | $ | 79,179 | $ | (72,386 | ) | $ | 46,790 | ||||||||
(In thousands) | Quoted Prices in | Significant | Significant | Fair Value at | |||||||||||||
Active Markets | Other | Unobservable | May 31, 2013 | ||||||||||||||
for Identical | Observable | Inputs (Level 3) | |||||||||||||||
Assets (Level 1) | Inputs (Level 2) | ||||||||||||||||
U.S. Treasury and other government | $ | — | $ | 20,636 | $ | — | $ | 20,636 | |||||||||
Foreign bonds | 41 | 41 | |||||||||||||||
Mortgage-backed securities | 156 | 156 | |||||||||||||||
Corporate bonds | 1,968 | 1,968 | |||||||||||||||
Stocks — foreign | 1,334 | 1,334 | |||||||||||||||
Stocks — domestic | 29,365 | 29,365 | |||||||||||||||
Mutual funds — foreign | 20,222 | 20,222 | |||||||||||||||
Mutual funds — domestic | 39,371 | 39,371 | |||||||||||||||
Foreign currency forward contract | (4,751 | ) | (4,751 | ) | |||||||||||||
Cross-currency swap | (10,048 | ) | (10,048 | ) | |||||||||||||
Contingent consideration | (64,500 | ) | (64,500 | ) | |||||||||||||
Total | $ | 30,699 | $ | 67,595 | $ | (64,500 | ) | $ | 33,794 | ||||||||
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 November 30, 2013 and May 31, 2013 are as follows: | |||||||||||||||||
At November 30, 2013 | |||||||||||||||||
(In thousands) | Carrying | Fair Value | |||||||||||||||
Value | |||||||||||||||||
Cash and cash equivalents | $ | 224,172 | $ | 224,172 | |||||||||||||
Marketable equity securities | 113,663 | 113,663 | |||||||||||||||
Marketable debt securities | 21,561 | 21,561 | |||||||||||||||
Long-term debt, including current portion | 1,369,950 | 1,452,556 | |||||||||||||||
At May 31, 2013 | |||||||||||||||||
(In thousands) | Carrying | Fair Value | |||||||||||||||
Value | |||||||||||||||||
Cash and cash equivalents | $ | 343,554 | $ | 343,554 | |||||||||||||
Marketable equity securities | 90,292 | 90,292 | |||||||||||||||
Marketable debt securities | 22,801 | 22,801 | |||||||||||||||
Long-term debt, including current portion | 1,373,697 | 1,501,850 |
Contingencies_and_Other_Accrue1
Contingencies and Other Accrued Losses (Tables) | 6 Months Ended | ||||||||||||||||
Nov. 30, 2013 | |||||||||||||||||
Changes in Accrued Warranty Balances | ' | ||||||||||||||||
The following table includes the changes in our accrued warranty balances: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
November 30, | November 30, | ||||||||||||||||
(In thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Beginning Balance | $ | 9,842 | $ | 14,527 | $ | 9,330 | $ | 14,751 | |||||||||
Deductions (1) | (7,179 | ) | (4,082 | ) | (11,975 | ) | (7,987 | ) | |||||||||
Provision charged to SG&A expense | 5,916 | 4,693 | 11,224 | 8,374 | |||||||||||||
Ending Balance | $ | 8,579 | $ | 15,138 | $ | 8,579 | $ | 15,138 | |||||||||
-1 | Primarily claims paid during the year. |
Equity_Tables
Equity (Tables) | 6 Months Ended | ||||||||||||
Nov. 30, 2013 | |||||||||||||
Components of Total Equity and Comprehensive Income | ' | ||||||||||||
The following tables illustrate the components of total equity and comprehensive income for the three months ended November 30, 2013 and 2012: | |||||||||||||
(In thousands) | Total RPM | Noncontrolling | Total Equity | ||||||||||
International | Interest | ||||||||||||
Inc. Equity | |||||||||||||
Total equity at August 31, 2013 | $ | 1,261,684 | $ | 162,043 | $ | 1,423,727 | |||||||
Net income | 63,562 | 4,852 | 68,414 | ||||||||||
Other Comprehensive Income: | |||||||||||||
Foreign currency translation adjustments | 19,409 | 4,796 | 24,205 | ||||||||||
Pension and other postretirement benefit liability adjustments, net of tax | 2,200 | 11 | 2,211 | ||||||||||
Unrealized (loss) on securities, net of tax | 6,341 | 60 | 6,401 | ||||||||||
Unrealized gain on derivatives, net of tax | (782 | ) | (212 | ) | (994 | ) | |||||||
Total Other Comprehensive Income, net of tax | 27,168 | 4,655 | 31,823 | ||||||||||
Comprehensive Income | 90,730 | 9,507 | 100,237 | ||||||||||
Dividends paid | (31,960 | ) | (31,960 | ) | |||||||||
Other noncontrolling interest activity | (88 | ) | 88 | — | |||||||||
Shares repurchased | (3,201 | ) | (3,201 | ) | |||||||||
Stock option exercises, net | 261 | 261 | |||||||||||
Stock based compensation expense | 773 | 773 | |||||||||||
Restricted awards, net | 4,023 | 4,023 | |||||||||||
Total Equity at November 30, 2013 | $ | 1,322,222 | $ | 171,638 | $ | 1,493,860 | |||||||
(In thousands) | Total RPM | Noncontrolling | Total Equity | ||||||||||
International | Interest | ||||||||||||
Inc. Equity | |||||||||||||
Total equity at August 31, 2012 | $ | 1,226,240 | $ | 143,360 | $ | 1,369,600 | |||||||
Net income | 41,668 | 4,419 | 46,087 | ||||||||||
Other Comprehensive Income: | |||||||||||||
Foreign currency translation adjustments | (3,659 | ) | 1,623 | (2,036 | ) | ||||||||
Pension and other postretirement benefit liability adjustments, net of tax | 3,242 | 136 | 3,378 | ||||||||||
Unrealized gain (loss) on securities, net of tax | 1,865 | 211 | 2,076 | ||||||||||
Unrealized gain on derivatives, net of tax | (585 | ) | (159 | ) | (744 | ) | |||||||
Total Other Comprehensive Income, net of tax | 863 | 1,811 | 2,674 | ||||||||||
Comprehensive Income | 42,531 | 6,230 | 48,761 | ||||||||||
Dividends paid | (29,773 | ) | (29,773 | ) | |||||||||
Other noncontrolling interest activity | (975 | ) | — | (975 | ) | ||||||||
Shares repurchased | (1,094 | ) | (1,094 | ) | |||||||||
Stock option exercises, net | 1,762 | 1,762 | |||||||||||
Stock based compensation expense | 623 | 623 | |||||||||||
Restricted awards, net | 3,638 | 3,638 | |||||||||||
Total Equity at November 30, 2012 | $ | 1,242,952 | $ | 149,590 | $ | 1,392,542 | |||||||
The following table illustrates the components of total equity and comprehensive income for the six months ended November 30, 2013 and 2012: | |||||||||||||
(In thousands) | Total RPM | Noncontrolling | Total Equity | ||||||||||
International | Interest | ||||||||||||
Inc. Equity | |||||||||||||
Total equity at May 31, 2013 | $ | 1,200,858 | $ | 154,075 | $ | 1,354,933 | |||||||
Net income | 166,660 | 8,643 | 175,303 | ||||||||||
Other Comprehensive Income: | |||||||||||||
Foreign currency translation adjustments | 2,338 | 8,453 | 10,791 | ||||||||||
Pension and other postretirement benefit liability adjustments, net of tax | 4,961 | 174 | 5,135 | ||||||||||
Unrealized gain (loss) on securities, net of tax | 4,909 | 53 | 4,962 | ||||||||||
Unrealized (loss) on derivatives, net of tax | (696 | ) | (189 | ) | (885 | ) | |||||||
Total Other Comprehensive Income, net of tax | 11,512 | 8,491 | 20,003 | ||||||||||
Comprehensive Income | 178,172 | 17,134 | 195,306 | ||||||||||
Dividends paid | (61,796 | ) | (61,796 | ) | |||||||||
Other noncontrolling interest activity | (429 | ) | 429 | — | |||||||||
Shares repurchased | (6,867 | ) | (6,867 | ) | |||||||||
Stock option exercises, net | 2,662 | 2,662 | |||||||||||
Stock based compensation expense | 1,482 | 1,482 | |||||||||||
Restricted awards, net | 8,140 | 8,140 | |||||||||||
Total Equity at November 30, 2013 | $ | 1,322,222 | $ | 171,638 | $ | 1,493,860 | |||||||
(In thousands) | Total RPM | Noncontrolling | Total Equity | ||||||||||
International | Interest | ||||||||||||
Inc. Equity | |||||||||||||
Total equity at May 31, 2012 | $ | 1,183,656 | $ | 130,327 | $ | 1,313,983 | |||||||
Net income | 75,581 | 8,373 | 83,954 | ||||||||||
Other Comprehensive Income: | |||||||||||||
Foreign currency translation adjustments | 25,005 | 12,189 | 37,194 | ||||||||||
Pension and other postretirement benefit liability adjustments, net of tax | 4,776 | (192 | ) | 4,584 | |||||||||
Unrealized gain (loss) on securities, net of tax | 2,690 | (966 | ) | 1,724 | |||||||||
Unrealized gain on derivatives, net of tax | (416 | ) | (141 | ) | (557 | ) | |||||||
Total Other Comprehensive Income, net of tax | 32,055 | 10,890 | 42,945 | ||||||||||
Comprehensive Income | 107,636 | 19,263 | 126,899 | ||||||||||
Dividends paid | (58,054 | ) | (58,054 | ) | |||||||||
Other noncontrolling interest activity | 309 | 309 | |||||||||||
Shares repurchased | (1,094 | ) | (1,094 | ) | |||||||||
Stock option exercises, net | 2,365 | 2,365 | |||||||||||
Stock based compensation expense | 1,211 | 1,211 | |||||||||||
Restricted awards, net | 6,923 | 6,923 | |||||||||||
Total Equity at November 30, 2012 | $ | 1,242,952 | $ | 149,590 | $ | 1,392,542 | |||||||
Segment_Information_Tables
Segment Information (Tables) | 6 Months Ended | ||||||||||||||||
Nov. 30, 2013 | |||||||||||||||||
Results of Reportable Segments | ' | ||||||||||||||||
The following tables reflect the results of our reportable segments consistent with our management philosophy, and represent the information we utilize, in conjunction with various strategic, operational and other financial performance criteria, in evaluating the performance of our portfolio of businesses. | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
(In thousands) | November 30, | November 30, | November 30, | November 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net Sales | |||||||||||||||||
Industrial Segment | $ | 708,713 | $ | 691,076 | $ | 1,439,939 | $ | 1,394,411 | |||||||||
Consumer Segment | 362,774 | 326,350 | 796,222 | 669,729 | |||||||||||||
Consolidated | $ | 1,071,487 | $ | 1,017,426 | $ | 2,236,161 | $ | 2,064,140 | |||||||||
Income (Loss) Before Income Taxes | |||||||||||||||||
Industrial Segment | $ | 81,394 | $ | 75,495 | $ | 178,975 | $ | 149,799 | |||||||||
Consumer Segment | 51,720 | 38,561 | 134,437 | 97,349 | |||||||||||||
Corporate/Other | (35,530 | ) | (43,014 | ) | (68,612 | ) | (104,044 | ) | |||||||||
Consolidated | $ | 97,584 | $ | 71,042 | $ | 244,800 | $ | 143,104 | |||||||||
November 30, | May 31, | ||||||||||||||||
2013 | 2013 | ||||||||||||||||
Identifiable Assets | |||||||||||||||||
Industrial Segment | $ | 2,338,802 | $ | 2,461,163 | |||||||||||||
Consumer Segment | 1,613,339 | 1,584,336 | |||||||||||||||
Corporate/Other | 118,380 | 70,027 | |||||||||||||||
Consolidated | $ | 4,070,521 | $ | 4,115,526 | |||||||||||||
Investment_in_Kemrock_Industri1
Investment in Kemrock Industries and Exports Ltd - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||
Nov. 30, 2012 | Nov. 30, 2012 | 31-May-13 | Nov. 30, 2012 | Aug. 08, 2012 | 31-May-12 | Aug. 31, 2012 | 31-May-13 | 31-May-12 | 31-May-11 | 31-May-12 | 31-May-12 | 31-May-13 | 31-May-13 | |
USD ($) | USD ($) | INR | INR | INR | Kemrock Industries and Exports Limited | Kemrock Industries and Exports Limited | Kemrock Industries and Exports Limited | Kemrock Industries and Exports Limited | Kemrock global depository receipts | Conversion option, Kemrock 5.5% bonds | Conversion option, Kemrock 5.5% bonds | Embedded Conversion Feature | ||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Kemrock Industries and Exports Limited | Kemrock Industries and Exports Limited | |||||||
USD ($) | USD ($) | |||||||||||||
Basis of Presentation [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition of equity method investment, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,200,000 | 693,072 | ' | ' | ' |
Equity method investment, carrying value | ' | ' | ' | ' | ' | ' | ' | ' | ' | $24,200,000 | $42,200,000 | ' | ' | ' |
Equity method investment, ownership percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18.00% | ' | ' | ' | ' |
Advances to affiliate | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | 15,000,000 | ' | ' | ' | ' | ' |
Agreement expiration period | ' | ' | ' | ' | ' | ' | ' | ' | 15-Sep-12 | ' | ' | ' | ' | ' |
Purchase of global depository receipt, value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,200,000 | ' | ' | ' |
Investment in affiliate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22,700,000 | ' | ' |
Investment in affiliate, interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.50% | ' | ' |
Kemrock common stock market value per share | ' | ' | 43.85 | 56.7 | ' | 531 | ' | ' | ' | ' | ' | ' | ' | ' |
Kemrock common stock price declining percentage | ' | ' | ' | ' | 40.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment loss on equity method investment | 10,100,000 | 42,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans deemed uncollectible, recorded as loss | ' | ' | ' | ' | ' | ' | 5,000,000 | ' | ' | ' | ' | ' | ' | ' |
Loss on Kemrock conversion option | 847,000 | 9,030,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment on investment in Kemrock | ' | $51,092,000 | ' | ' | ' | ' | ' | $42,200,000 | ' | ' | ' | ' | $13,700,000 | $9,000,000 |
Deconsolidation_of_Specialty_P1
Deconsolidation of Specialty Products Holding Corp. ("SPHC") - Additional Information (Detail) (USD $) | 3 Months Ended | |
31-May-10 | 31-May-12 | |
Reorganization [Line Items] | ' | ' |
Number of appeal bonds satisfied | ' | 1 |
Carrying value of retained interest in SPHC | $0 | ' |
Net loss from deconsolidation of business | ($7,900,000) | ' |
Investment_Income_Expense_Net_
Investment (Income) Expense, Net (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2013 | Nov. 30, 2012 |
Component Of Other Expense Income Nonoperating [Line Items] | ' | ' | ' | ' |
Interest (income) | ($1,641) | ($1,565) | ($3,144) | ($3,860) |
(Gain) loss on sale of marketable securities | -227 | -8 | -2,424 | -4,592 |
Other-than-temporary impairment on securities | 111 | 450 | 162 | 564 |
Dividend (income) | -248 | -241 | -493 | -450 |
Investment (income) expense, net | ($2,005) | ($1,364) | ($5,899) | ($8,338) |
Other_Income_Expense_Net_Detai
Other (Income) Expense, Net (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2013 | Nov. 30, 2012 |
Component Of Other Expense Income Nonoperating [Line Items] | ' | ' | ' | ' |
Royalty (income), net | ($709) | ($433) | ($391) | ($727) |
Loss on Kemrock conversion option | ' | 847 | ' | 9,030 |
(Income) loss related to unconsolidated equity affiliates | -782 | 9,280 | -1,534 | 40,813 |
Other (income) expense, net | ($1,491) | $9,694 | ($1,925) | $49,116 |
RetirementRelated_Benefit_Plan
Retirement-Related Benefit Plans' Impact on Income Before Income Taxes (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2013 | Nov. 30, 2012 |
Pension Benefits, U.S. Plans | ' | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ' |
Service cost | $6,764 | $6,488 | $13,528 | $12,976 |
Interest cost | 4,510 | 4,060 | 9,020 | 8,120 |
Expected return on plan assets | -5,191 | -4,358 | -10,381 | -8,716 |
Amortization of: | ' | ' | ' | ' |
Prior service cost (credit) | 84 | 87 | 167 | 174 |
Net actuarial (gains) losses recognized | 3,305 | 4,222 | 6,611 | 8,444 |
Net Periodic Benefit Cost | 9,472 | 10,499 | 18,945 | 20,998 |
Pension Benefits, Non-U.S. Plans | ' | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ' |
Service cost | 1,109 | 1,050 | 2,218 | 2,100 |
Interest cost | 1,799 | 1,769 | 3,599 | 3,538 |
Expected return on plan assets | -2,096 | -1,846 | -4,191 | -3,692 |
Amortization of: | ' | ' | ' | ' |
Prior service cost (credit) | 1 | 2 | 2 | 4 |
Net actuarial (gains) losses recognized | 624 | 692 | 1,247 | 1,384 |
Net Periodic Benefit Cost | 1,437 | 1,667 | 2,875 | 3,334 |
Postretirement Benefits, U.S. Plans | ' | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ' |
Interest cost | 81 | 88 | 162 | 176 |
Amortization of: | ' | ' | ' | ' |
Prior service cost (credit) | -22 | -22 | -44 | -44 |
Net actuarial (gains) losses recognized | -29 | 4 | -58 | 8 |
Net Periodic Benefit Cost | 30 | 70 | 60 | 140 |
Postretirement Benefits, Non-U.S. Plans | ' | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ' |
Service cost | 327 | 288 | 654 | 576 |
Interest cost | 317 | 289 | 634 | 578 |
Amortization of: | ' | ' | ' | ' |
Net actuarial (gains) losses recognized | 134 | 114 | 267 | 228 |
Net Periodic Benefit Cost | $778 | $691 | $1,555 | $1,382 |
Pension_Plans_Additional_Infor
Pension Plans - Additional Information (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | 31-May-13 |
Pension Benefits, U.S. Plans | ' |
Schedule of Pension and Other Postretirement Benefits Expected Benefit Payments [Line Items] | ' |
Contribution to retirement plans in current fiscal year | $27.40 |
Pension Benefits, Non-U.S. Plans | ' |
Schedule of Pension and Other Postretirement Benefits Expected Benefit Payments [Line Items] | ' |
Contribution to retirement plans in current fiscal year | $7.40 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2013 | Nov. 30, 2012 |
Income Tax [Line Items] | ' | ' | ' | ' |
Effective income tax rate | 29.90% | 35.10% | 28.40% | 41.30% |
Federal Statutory Rate | 35.00% | 35.00% | 35.00% | 35.00% |
Unrecognized tax benefits | $14.90 | ' | $14.90 | ' |
Unrecognized tax benefits that would impact effective tax rate, if recognized | 14.1 | ' | 14.1 | ' |
Accrued interest and penalties related to unrecognized tax benefits | $4.90 | ' | $4.90 | ' |
Reconciliation_of_Numerator_an
Reconciliation of Numerator and Denominator of Basic and Diluted Earnings Per Share, Calculated using Two-Class Method (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2013 | Nov. 30, 2012 | ||||
Numerator for earnings per share: | ' | ' | ' | ' | ||||
Net income attributable to RPM International Inc. stockholders | $63,562 | $41,668 | $166,660 | $75,581 | ||||
Less: Allocation of earnings and dividends to participating securities | -1,379 | -929 | -3,521 | -1,526 | ||||
Net income available to common shareholders - basic | 62,183 | 40,739 | 163,139 | 74,055 | ||||
Add: Undistributed earnings reallocated to unvested shareholders | 6 | 2 | 17 | 2 | ||||
Net income available to common shareholders - diluted | $62,189 | $40,741 | $163,156 | $74,057 | ||||
Denominator for basic and diluted earnings per share: | ' | ' | ' | ' | ||||
Basic weighted average common shares | 129,426 | 128,885 | 129,385 | 128,844 | ||||
Average diluted options | 992 | 815 | 974 | 791 | ||||
Net issuable common share equivalents | ' | ' | ' | ' | ||||
Total shares for diluted earnings per share | 130,418 | [1],[2] | 129,700 | [1],[2] | 130,359 | [1],[2] | 129,635 | [1],[2] |
Earnings per Share of Common Stock Attributable to RPM International Inc. Stockholders: | ' | ' | ' | ' | ||||
Basic Earnings Per Share of Common Stock | $0.48 | $0.32 | $1.26 | $0.57 | ||||
Diluted Earnings Per Share of Common Stock | $0.48 | $0.31 | $1.25 | $0.57 | ||||
[1] | For the quarters ended November 30, 2013 and 2012, respectively, approximately 3,078,000 shares and 3,151,000 shares of stock granted under stock-based compensation plans were excluded from the calculation of diluted EPS, as the effect would have been anti-dilutive. | |||||||
[2] | For the six month periods ended November 30, 2013 and 2012, approximately 2,939,000 shares and 2,970,000 shares of stock, respectively, granted under stock-based compensation plans were excluded from the calculation of diluted EPS for those periods, as the effect would have been anti-dilutive. |
Reconciliation_of_Numerator_an1
Reconciliation of Numerator and Denominator of Basic and Diluted Earnings Per Share, Calculated using Two-Class Method (Parenthetical) (Detail) | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2013 | Nov. 30, 2012 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Stock-based compensation plans, excluded from the calculation of diluted earnings per share, anti-dilutive shares of stock | 3,078,000 | 3,151,000 | 2,939,000 | 2,970,000 |
Major_Classes_of_Inventories_D
Major Classes of Inventories (Detail) (USD $) | Nov. 30, 2013 | 31-May-13 |
In Thousands, unless otherwise specified | ||
Inventory [Line Items] | ' | ' |
Raw material and supplies | $193,709 | $185,590 |
Finished goods | 403,951 | 363,090 |
Total Inventory | $597,660 | $548,680 |
Restructuring_Additional_Infor
Restructuring - Additional Information (Detail) (USD $) | 3 Months Ended | 1 Months Ended | |||||
Aug. 31, 2013 | Aug. 31, 2013 | 31-May-13 | 31-May-13 | 31-May-13 | 31-May-13 | 31-May-13 | |
Employee Severance | Consumer Segment | Consumer Segment | Consumer Segment | Industrial Segment | Industrial Segment | ||
Two Thousand Thirteen Plan | Two Thousand Thirteen Plan | Two Thousand Thirteen Plan | Two Thousand Thirteen Plan | Two Thousand Thirteen Plan | |||
Facility | Employee Severance | Facility Closing | Employee Severance | ||||
Position | Position | ||||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Restructuring charges | $128,000 | $128,000 | $15,600,000 | $8,200,000 | $7,400,000 | $4,500,000 | ' |
Number of position eliminated | ' | ' | 133 | ' | ' | ' | ' |
Number of shutdown manufacturing facilities | ' | ' | 2 | ' | ' | ' | ' |
Inventory markdowns | ' | ' | $3,900,000 | ' | ' | ' | ' |
Expected number of positions to be eliminated | ' | ' | ' | ' | ' | ' | 34 |
Changes_in_Accrued_Restructuri
Changes in Accrued Restructuring Balances (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Nov. 30, 2013 | Aug. 31, 2013 |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Balance at May 31, 2013 | $16,792 | $17,782 |
Charge to expense | ' | 128 |
Cash payments | -7,121 | -1,416 |
Noncash and foreign exchange impacts | 333 | 298 |
Balance at August 31, 2013 | 10,004 | 16,792 |
Long-Lived Asset Charges | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Balance at May 31, 2013 | 4,852 | 4,729 |
Noncash and foreign exchange impacts | 136 | 123 |
Balance at August 31, 2013 | 4,988 | 4,852 |
Employee Severance | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Balance at May 31, 2013 | 11,533 | 12,656 |
Charge to expense | ' | 128 |
Cash payments | -7,121 | -1,416 |
Noncash and foreign exchange impacts | 185 | 165 |
Balance at August 31, 2013 | 4,597 | 11,533 |
Site Preparation and Equipment Relocation | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Balance at May 31, 2013 | 407 | 397 |
Noncash and foreign exchange impacts | 12 | 10 |
Balance at August 31, 2013 | $419 | $407 |
Summary_of_Marketable_Securiti
Summary of Marketable Securities by Asset Type (Detail) (USD $) | Nov. 30, 2013 | 31-May-13 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-Sale Securities, Amortized Cost | $120,665 | $105,483 |
Available-for-Sale Securities, Gross Unrealized Gains | 16,140 | 8,644 |
Available-for-Sale Securities, Gross Unrealized Losses | -1,581 | -1,034 |
Available-for-Sale Securities, Fair Value (Net Carrying Amount) | 135,224 | 113,093 |
Equity securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-Sale Securities, Amortized Cost | 99,237 | 83,094 |
Available-for-Sale Securities, Gross Unrealized Gains | 15,721 | 8,089 |
Available-for-Sale Securities, Gross Unrealized Losses | -1,295 | -891 |
Available-for-Sale Securities, Fair Value (Net Carrying Amount) | 113,663 | 90,292 |
Equity securities | Stocks | Foreign | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-Sale Securities, Amortized Cost | 372 | 1,090 |
Available-for-Sale Securities, Gross Unrealized Gains | 107 | 244 |
Available-for-Sale Securities, Gross Unrealized Losses | -39 | ' |
Available-for-Sale Securities, Fair Value (Net Carrying Amount) | 440 | 1,334 |
Equity securities | Stocks | Domestic | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-Sale Securities, Amortized Cost | 31,849 | 24,492 |
Available-for-Sale Securities, Gross Unrealized Gains | 7,947 | 5,265 |
Available-for-Sale Securities, Gross Unrealized Losses | -239 | -392 |
Available-for-Sale Securities, Fair Value (Net Carrying Amount) | 39,557 | 29,365 |
Equity securities | Mutual funds | Foreign | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-Sale Securities, Amortized Cost | 26,367 | 18,328 |
Available-for-Sale Securities, Gross Unrealized Gains | 5,535 | 1,901 |
Available-for-Sale Securities, Gross Unrealized Losses | ' | -7 |
Available-for-Sale Securities, Fair Value (Net Carrying Amount) | 31,902 | 20,222 |
Equity securities | Mutual funds | Domestic | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-Sale Securities, Amortized Cost | 40,649 | 39,184 |
Available-for-Sale Securities, Gross Unrealized Gains | 2,132 | 679 |
Available-for-Sale Securities, Gross Unrealized Losses | -1,017 | -492 |
Available-for-Sale Securities, Fair Value (Net Carrying Amount) | 41,764 | 39,371 |
Fixed securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-Sale Securities, Amortized Cost | 21,428 | 22,389 |
Available-for-Sale Securities, Gross Unrealized Gains | 419 | 555 |
Available-for-Sale Securities, Gross Unrealized Losses | -286 | -143 |
Available-for-Sale Securities, Fair Value (Net Carrying Amount) | 21,561 | 22,801 |
Fixed securities | U.S. Treasury and other government | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-Sale Securities, Amortized Cost | 19,595 | 20,528 |
Available-for-Sale Securities, Gross Unrealized Gains | 163 | 247 |
Available-for-Sale Securities, Gross Unrealized Losses | -286 | -139 |
Available-for-Sale Securities, Fair Value (Net Carrying Amount) | 19,472 | 20,636 |
Fixed securities | Corporate bonds | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-Sale Securities, Amortized Cost | 1,709 | 1,724 |
Available-for-Sale Securities, Gross Unrealized Gains | 196 | 244 |
Available-for-Sale Securities, Fair Value (Net Carrying Amount) | 1,905 | 1,968 |
Fixed securities | Foreign bonds | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-Sale Securities, Amortized Cost | 37 | 37 |
Available-for-Sale Securities, Gross Unrealized Gains | 3 | 4 |
Available-for-Sale Securities, Fair Value (Net Carrying Amount) | 40 | 41 |
Fixed securities | Mortgage-backed securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-Sale Securities, Amortized Cost | 87 | 100 |
Available-for-Sale Securities, Gross Unrealized Gains | 57 | 60 |
Available-for-Sale Securities, Gross Unrealized Losses | ' | -4 |
Available-for-Sale Securities, Fair Value (Net Carrying Amount) | $144 | $156 |
Marketable_Securities_Addition
Marketable Securities - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Millions, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2013 | Nov. 30, 2012 | 31-May-13 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' |
Available-for-sale securities, current | $59.40 | ' | $59.40 | ' | $49.10 |
Available-for-sale securities, long-term | 75.8 | ' | 75.8 | ' | 64 |
Gross gains realized on sales of investments | 0.2 | ' | 2.4 | 5 | ' |
Losses recognized for securities deemed to have other-than-temporary impairments | 0.1 | 0.5 | 0.2 | 0.6 | ' |
Gross losses realized on sales of investments | ' | ' | ' | $0.40 | ' |
Maximum | ' | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' |
Investments with unrealized loss, percentage of fair values less than original cost | 15.00% | ' | 15.00% | ' | ' |
Summary_of_Securities_in_Unrea
Summary of Securities in Unrealized Loss Position and Included in Accumulated Other Comprehensive Income, Aggregated by Length of Time Investments (Detail) (USD $) | Nov. 30, 2013 | 31-May-13 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total investments with unrealized losses, fair value | $35,851 | $36,582 |
Unrealized losses with a loss position for less than 12 months, fair value | 23,819 | 36,327 |
Unrealized losses with a loss position for more than 12 months, fair value | 12,032 | 255 |
Total investments with unrealized losses, gross unrealized losses | -1,581 | -1,034 |
Unrealized losses with a loss position for less than 12 months, gross unrealized losses | -1,065 | -956 |
Unrealized losses with a loss position for more than 12 months, gross unrealized losses | ($516) | ($78) |
Net_Carrying_Values_of_Debt_Se
Net Carrying Values of Debt Securities by Contractual Maturity (Detail) (USD $) | Nov. 30, 2013 | 31-May-13 |
In Thousands, unless otherwise specified | ||
Available-for-Sale Securities, amortized cost | ' | ' |
Less than one year, amortized cost | $3,210 | ' |
One year through five years, amortized cost | 12,055 | ' |
Six years through ten years, amortized cost | 4,712 | ' |
After ten years, amortized cost | 1,451 | ' |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Total | 21,428 | ' |
Available-for-Sale Securities, fair value | ' | ' |
Less than one year, fair value | 3,227 | ' |
One year through five years, fair value | 12,118 | ' |
Six years through ten years, fair value | 4,647 | ' |
After ten years, fair value | 1,569 | ' |
Marketable debt securities, carrying value | $21,561 | $22,801 |
Assets_and_Liabilities_Measure
Assets and Liabilities Measured at Fair Value on Recurring Basis and Categorized using Fair Value Hierarchy (Detail) (Fair Value, Measurements, Recurring, USD $) | Nov. 30, 2013 | 31-May-13 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Contingent consideration | ($72,386) | ($64,500) |
Assets (liabilities) at fair value | 46,790 | 33,794 |
Foreign currency forward contract | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Foreign currency forward contract | 2,620 | ' |
Foreign currency contracts, fair value of liability | ' | -4,751 |
Cross-currency swap | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Foreign currency contracts, fair value of liability | -18,668 | -10,048 |
U.S. Treasury and other government | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets measured at fair value on recurring basis | 19,472 | 20,636 |
Foreign bonds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets measured at fair value on recurring basis | 40 | 41 |
Mortgage-backed securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets measured at fair value on recurring basis | 144 | 156 |
Corporate bonds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets measured at fair value on recurring basis | 1,905 | 1,968 |
Stocks | Foreign | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets measured at fair value on recurring basis | 440 | 1,334 |
Stocks | Domestic | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets measured at fair value on recurring basis | 39,557 | 29,365 |
Mutual funds | Foreign | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets measured at fair value on recurring basis | 31,902 | 20,222 |
Mutual funds | Domestic | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets measured at fair value on recurring basis | 41,764 | 39,371 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets (liabilities) at fair value | 39,997 | 30,699 |
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] | ' | ' |
Assets measured at fair value on recurring basis | 440 | 1,334 |
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] | ' | ' |
Assets measured at fair value on recurring basis | 39,557 | 29,365 |
Significant Other Observable Inputs (Level 2) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets (liabilities) at fair value | 79,179 | 67,595 |
Significant Other Observable Inputs (Level 2) | Foreign currency forward contract | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Foreign currency forward contract | 2,620 | ' |
Foreign currency contracts, fair value of liability | ' | -4,751 |
Significant Other Observable Inputs (Level 2) | Cross-currency swap | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Foreign currency contracts, fair value of liability | -18,668 | -10,048 |
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] | ' | ' |
Assets measured at fair value on recurring basis | 19,472 | 20,636 |
Significant Other Observable Inputs (Level 2) | Foreign bonds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets measured at fair value on recurring basis | 40 | 41 |
Significant Other Observable Inputs (Level 2) | Mortgage-backed securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets measured at fair value on recurring basis | 144 | 156 |
Significant Other Observable Inputs (Level 2) | Corporate bonds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets measured at fair value on recurring basis | 1,905 | 1,968 |
Significant Other Observable Inputs (Level 2) | Mutual funds | Foreign | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets measured at fair value on recurring basis | 31,902 | 20,222 |
Significant Other Observable Inputs (Level 2) | Mutual funds | Domestic | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets measured at fair value on recurring basis | 41,764 | 39,371 |
Significant Unobservable Inputs (Level 3) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Contingent consideration | -72,386 | -64,500 |
Assets (liabilities) at fair value | ($72,386) | ($64,500) |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) | Nov. 30, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | 31-May-13 | Nov. 30, 2013 | 31-May-13 |
USD ($) | EUR (€) | Unsecured Senior Notes | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | |
Cross-currency swap | Cross-currency swap | Foreign currency forward contract | Foreign currency forward contract | ||||
USD ($) | USD ($) | USD ($) | USD ($) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Foreign currency contracts, fair value of liability | ' | ' | ' | $18,668,000 | $10,048,000 | ' | $4,751,000 |
Debt, interest rate | ' | ' | 6.70% | ' | ' | ' | ' |
Debt, due date | ' | ' | 1-Nov-15 | ' | ' | ' | ' |
Effective euro fixed-rate borrowing | 5.31% | 5.31% | ' | ' | ' | ' | ' |
Notional principal amount of cross-currency swap | 150,000,000 | 125,000,000 | ' | ' | ' | ' | ' |
Foreign currency forward contract | ' | ' | ' | ' | ' | $2,620,000 | ' |
Fair_Value_and_Carrying_Value_
Fair Value and Carrying Value of Financial Instruments and Long-Term Debt (Detail) (USD $) | Nov. 30, 2013 | 31-May-13 | Nov. 30, 2012 | 31-May-12 |
In Thousands, unless otherwise specified | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents, carrying value | $224,172 | $343,554 | $261,940 | $315,968 |
Marketable equity securities, carrying value | 113,663 | 90,292 | ' | ' |
Marketable debt securities, carrying value | 21,561 | 22,801 | ' | ' |
Long-term debt, including current portion, carrying value | 1,369,950 | 1,373,697 | ' | ' |
Cash and cash equivalents, fair value | 224,172 | 343,554 | ' | ' |
Marketable securities, fair value | 135,224 | 113,093 | ' | ' |
Long-term debt, including current portion, fair value | 1,452,556 | 1,501,850 | ' | ' |
Equity securities | ' | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Marketable securities, fair value | 113,663 | 90,292 | ' | ' |
Fixed securities | ' | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Marketable securities, fair value | $21,561 | $22,801 | ' | ' |
Reorganization_Proceedings_of_1
Reorganization Proceedings of Certain Subsidiaries - Additional Information (Detail) (USD $) | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Nov. 30, 2013 | 31-May-10 | 31-May-08 | Nov. 30, 2013 | 31-May-08 | 31-May-13 | 30-May-10 | 31-May-06 | |
Asbestos Trust | Subsidiaries | Subsidiaries | Subsidiaries | Subsidiaries | ||||
Reorganization [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Asbestos-related products liability claims paid | ' | $92,600,000 | ' | $125,000,000 | ' | ' | ' | ' |
Percentage of issuance of common stock | ' | ' | ' | 100.00% | ' | ' | ' | ' |
Current and future asbestos claims | ' | ' | ' | ' | ' | 1,170,000,000 | ' | ' |
Asbestos-related products liability, defense-related payments | 400,000 | 42,600,000 | ' | ' | ' | ' | ' | ' |
Accrued liability for asbestos | ' | ' | ' | ' | 559,700,000 | ' | 397,700,000 | 421,300,000 |
Asbestos liability, term | ' | ' | '10 years | ' | ' | ' | ' | ' |
Increase in Asbestos liability | ' | ' | ' | ' | $288,100,000 | ' | ' | ' |
Changes_in_Accrued_Warranty_Ba
Changes in Accrued Warranty Balances (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2013 | Nov. 30, 2012 | ||||
Product Liability Contingency [Line Items] | ' | ' | ' | ' | ||||
Beginning Balance | $9,842 | $14,527 | $9,330 | $14,751 | ||||
Deductions | -7,179 | [1] | -4,082 | [1] | -11,975 | [1] | -7,987 | [1] |
Provision charged to SG&A expense | 5,916 | 4,693 | 11,224 | 8,374 | ||||
Ending Balance | $8,579 | $15,138 | $8,579 | $15,138 | ||||
[1] | Primarily claims paid during the year. |
Contingencies_and_Other_Accrue2
Contingencies and Other Accrued Losses - Additional Information (Detail) (USD $) | 6 Months Ended | 12 Months Ended | |
Nov. 30, 2013 | 31-May-10 | 31-May-13 | |
Schedule Of Commitments And Contingencies [Line Items] | ' | ' | ' |
Accrued contingencies | ' | ' | $65,100,000 |
(Decrease) in contingent payment | -61,894,000 | ' | ' |
Expected payment to resolve issues arising out of investigation and other related costs | 2,800,000 | ' | ' |
Miscellaneous expenses | $400,000 | $42,600,000 | ' |
Stock_Repurchase_Program_Addit
Stock Repurchase Program - Additional Information (Detail) | 3 Months Ended |
In Millions, unless otherwise specified | Nov. 30, 2013 |
Stock Repurchase Programs [Line Items] | ' |
Authorization of stock repurchase program | 8-Jan-08 |
Shares repurchased | 0 |
Minimum | ' |
Stock Repurchase Programs [Line Items] | ' |
Shares authorized to be repurchased, per year | 1 |
Maximum | ' |
Stock Repurchase Programs [Line Items] | ' |
Shares authorized to be repurchased, per year | 2 |
Components_of_Total_Equity_and
Components of Total Equity and Comprehensive Income (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2013 | Nov. 30, 2012 |
Stockholders Equity Note [Line Items] | ' | ' | ' | ' |
Total equity, beginning of period | $1,423,727 | $1,369,600 | $1,354,933 | $1,313,983 |
Net income | 68,414 | 46,087 | 175,303 | 83,954 |
Other Comprehensive Income: | ' | ' | ' | ' |
Foreign currency translation adjustments | 24,205 | -2,036 | 10,791 | 37,194 |
Pension and other postretirement benefit liability adjustments, net of tax | 2,211 | 3,378 | 5,135 | 4,584 |
Unrealized (loss) on securities, net of tax | 6,401 | 2,076 | 4,962 | 1,724 |
Unrealized (loss) on derivatives, net of tax | -994 | -744 | -885 | -557 |
Total Other Comprehensive Income | 31,823 | 2,674 | 20,003 | 42,945 |
Total Comprehensive Income | 100,237 | 48,761 | 195,306 | 126,899 |
Dividends paid | -31,960 | -29,773 | -61,796 | -58,054 |
Other noncontrolling interest activity | ' | -975 | ' | 309 |
Stock option exercises, net | 261 | 1,762 | 2,662 | 2,365 |
Stock based compensation expense | 773 | 623 | 1,482 | 1,211 |
Restricted awards, net | 4,023 | 3,638 | 8,140 | 6,923 |
Total Equity, end of period | 1,493,860 | 1,392,542 | 1,493,860 | 1,392,542 |
Shares repurchased | -6,867 | -1,094 | ' | -1,094 |
Total RPM International Inc. Equity | ' | ' | ' | ' |
Stockholders Equity Note [Line Items] | ' | ' | ' | ' |
Total equity, beginning of period | 1,261,684 | 1,226,240 | 1,200,858 | 1,183,656 |
Net income | 63,562 | 41,668 | 166,660 | 75,581 |
Other Comprehensive Income: | ' | ' | ' | ' |
Foreign currency translation adjustments | 19,409 | -3,659 | 2,338 | 25,005 |
Pension and other postretirement benefit liability adjustments, net of tax | 2,200 | 3,242 | 4,961 | 4,776 |
Unrealized (loss) on securities, net of tax | 6,341 | 1,865 | 4,909 | 2,690 |
Unrealized (loss) on derivatives, net of tax | -782 | -585 | -696 | -416 |
Total Other Comprehensive Income | 27,168 | 863 | 11,512 | 32,055 |
Total Comprehensive Income | 90,730 | 42,531 | 178,172 | 107,636 |
Dividends paid | -31,960 | -29,773 | -61,796 | -58,054 |
Other noncontrolling interest activity | -88 | -975 | -429 | 309 |
Stock option exercises, net | 261 | 1,762 | 2,662 | 2,365 |
Stock based compensation expense | 773 | 623 | 1,482 | 1,211 |
Restricted awards, net | 4,023 | 3,638 | 8,140 | 6,923 |
Total Equity, end of period | 1,322,222 | 1,242,952 | 1,322,222 | 1,242,952 |
Shares repurchased | -6,867 | -1,094 | ' | -1,094 |
Noncontrolling Interest | ' | ' | ' | ' |
Stockholders Equity Note [Line Items] | ' | ' | ' | ' |
Total equity, beginning of period | 162,043 | 143,360 | 154,075 | 130,327 |
Net income | 4,852 | 4,419 | 8,643 | 8,373 |
Other Comprehensive Income: | ' | ' | ' | ' |
Foreign currency translation adjustments | 4,796 | 1,623 | 8,453 | 12,189 |
Pension and other postretirement benefit liability adjustments, net of tax | 11 | 136 | 174 | -192 |
Unrealized (loss) on securities, net of tax | 60 | 211 | 53 | -966 |
Unrealized (loss) on derivatives, net of tax | -212 | -159 | -189 | -141 |
Total Other Comprehensive Income | 4,655 | 1,811 | 8,491 | 10,890 |
Total Comprehensive Income | 9,507 | 6,230 | 17,134 | 19,263 |
Other noncontrolling interest activity | 88 | ' | 429 | ' |
Total Equity, end of period | $171,638 | $149,590 | $171,638 | $149,590 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 3 Months Ended |
Aug. 31, 2013 | |
Segment | |
Segment Reporting Information [Line Items] | ' |
Number of reportable segments | 2 |
Number of operating segments | 7 |
Results_of_Reportable_Segments
Results of Reportable Segments (Detail) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2013 | Nov. 30, 2012 | 31-May-13 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net Sales | $1,071,487 | $1,017,426 | $2,236,161 | $2,064,140 | ' |
Income (Loss) Before Income Taxes | 97,584 | 71,042 | 244,800 | 143,104 | ' |
Total Assets | 4,070,521 | 4,115,526 | 4,070,521 | 4,115,526 | 4,115,526 |
Industrial Segment | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net Sales | 708,713 | 691,076 | 1,439,939 | 1,394,411 | ' |
Income (Loss) Before Income Taxes | 81,394 | 75,495 | 178,975 | 149,799 | ' |
Total Assets | 2,338,802 | 2,461,163 | 2,338,802 | 2,461,163 | ' |
Consumer Segment | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net Sales | 362,774 | 326,350 | 796,222 | 669,729 | ' |
Income (Loss) Before Income Taxes | 51,720 | 38,561 | 134,437 | 97,349 | ' |
Total Assets | 1,613,339 | 1,584,336 | 1,613,339 | 1,584,336 | ' |
Corporate/Other | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Income (Loss) Before Income Taxes | -35,530 | -43,014 | -68,612 | -104,044 | ' |
Total Assets | $118,380 | $70,027 | $118,380 | $70,027 | ' |
205_Million_Convertible_Note_O1
$205 Million Convertible Note Offering - Additional Information (Detail) (USD $) | 6 Months Ended | |
Nov. 30, 2013 | Nov. 30, 2012 | |
Debt Instrument [Line Items] | ' | ' |
Proceeds from not issuance, net | $2,776,000 | $334,247,000 |
Unsecured Senior Notes | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Interest rate on notes issue | 6.70% | ' |
Notes maturity date | 1-Nov-15 | ' |
Subsequent Event | Convertible Notes | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Issuance of note | 205,000,000 | ' |
Interest rate on notes issue | 2.25% | ' |
Notes maturity date | 15-Dec-20 | ' |
Note Interest payment frequency, term | 'Interest on the Convertible Notes semi-annually on June 15th and December 15th of each year, beginning on June 15th, 2014 | ' |
Debt instrument, conversion rate | 18.8905 | ' |
Principal amount of each convertible note | 1,000 | ' |
Convertible notes, initial conversion price per share | $52.94 | ' |
Proceeds from not issuance, net | 200,100,000 | ' |
Subsequent Event | Unsecured Senior Notes | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Notes maturity date | 15-Dec-13 | ' |
Principal amount of unsecured senior notes, repayments | $200,000,000 | ' |
Unsecured senior notes , interest rate | 6.25% | ' |