Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
31-May-14 | Aug. 14, 2014 | Nov. 30, 2013 | |
Document Information [Line Items] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-May-14 | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'RPM | ' | ' |
Entity Registrant Name | 'RPM INTERNATIONAL INC/DE/ | ' | ' |
Entity Central Index Key | '0000110621 | ' | ' |
Current Fiscal Year End Date | '--05-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 133,509,649 | ' |
Entity Public Float | ' | ' | $5,185,763,391 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | 31-May-14 | 31-May-13 |
In Thousands, unless otherwise specified | ||
Current Assets | ' | ' |
Cash and cash equivalents | $332,868 | $343,554 |
Trade accounts receivable (less allowances of $27,641 and $28,904, respectively) | 873,946 | 787,517 |
Inventories | 613,644 | 548,680 |
Deferred income taxes | 22,281 | 36,210 |
Prepaid expenses and other current assets | 219,556 | 169,956 |
Total current assets | 2,062,295 | 1,885,917 |
Property, Plant and Equipment, at Cost | 1,191,676 | 1,128,123 |
Allowance for depreciation and amortization | -658,871 | -635,760 |
Property, plant and equipment, net | 532,805 | 492,363 |
Other Assets | ' | ' |
Goodwill | 1,147,374 | 1,113,831 |
Other intangible assets, net of amortization | 459,536 | 459,613 |
Deferred income taxes, non-current | 7,943 | 5,676 |
Other | 168,412 | 163,447 |
Total other assets | 1,783,265 | 1,742,567 |
Total Assets | 4,378,365 | 4,120,847 |
Current Liabilities | ' | ' |
Accounts payable | 525,680 | 478,185 |
Current portion of long-term debt | 5,662 | 4,521 |
Accrued compensation and benefits | 173,846 | 154,844 |
Accrued loss reserves | 27,487 | 27,591 |
Other accrued liabilities | 204,411 | 262,889 |
Total current liabilities | 937,086 | 928,030 |
Long-Term Liabilities | ' | ' |
Long-term debt, less current maturities | 1,345,965 | 1,369,176 |
Other long-term liabilities | 466,659 | 417,160 |
Deferred income taxes | 50,061 | 51,548 |
Total long-term liabilities | 1,862,685 | 1,837,884 |
Stockholders' Equity | ' | ' |
Preferred stock, par value $0.01; authorized 50,000 shares; none issued | 0 | 0 |
Common stock, par value $0.01; authorized 300,000 shares; issued 138,039 and outstanding 133,273 as of May 2014; issued 136,913 and outstanding 132,596 as of May 2013 | 1,333 | 1,326 |
Paid-in capital | 790,102 | 763,505 |
Treasury stock, at cost | -85,400 | -72,494 |
Accumulated other comprehensive (loss) | -156,882 | -159,253 |
Retained earnings | 833,691 | 667,774 |
Total RPM International Inc. stockholders' equity | 1,382,844 | 1,200,858 |
Noncontrolling interest | 195,750 | 154,075 |
Total Equity | 1,578,594 | 1,354,933 |
Total Liabilities and Stockholders' Equity | $4,378,365 | $4,120,847 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | 31-May-14 | 31-May-13 |
In Thousands, except Per Share data, unless otherwise specified | ||
Trade accounts receivable, allowances | $27,641 | $28,904 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, authorized | 50,000 | 50,000 |
Preferred stock, issued | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, authorized | 300,000 | 300,000 |
Common stock, issued | 138,039 | 136,913 |
Common stock, outstanding | 133,273 | 132,596 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | |||||
In Thousands, except Per Share data, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 | |||
Net Sales | $4,376,353 | [1] | $4,078,655 | [1] | $3,777,416 | [1] |
Cost of Sales | 2,500,585 | 2,375,936 | 2,235,153 | |||
Gross Profit | 1,875,768 | 1,702,719 | 1,542,263 | |||
Selling, General and Administrative Expenses | 1,390,128 | 1,309,235 | 1,155,714 | |||
Loss Contingency | ' | 65,134 | ' | |||
Restructuring Expense | 243 | 20,072 | ' | |||
Interest Expense | 80,951 | 79,846 | 72,045 | |||
Investment (Income), Net | -15,715 | -6,178 | -4,186 | |||
Other (Income) Expense, Net | -4,083 | 57,719 | -9,599 | |||
Income (Loss) Before Income Taxes | 424,487 | [2] | 176,891 | [2] | 328,289 | [2] |
Provision for Income Taxes | 118,503 | 67,040 | 94,526 | |||
Net Income | 305,984 | 109,851 | 233,763 | |||
Less: Net Income Attributable to Noncontrolling Interests | 14,324 | 11,248 | 17,827 | |||
Net Income Attributable to RPM International Inc. Stockholders | $291,660 | $98,603 | $215,936 | |||
Average Number of Shares of Common Stock Outstanding: | ' | ' | ' | |||
Basic | 129,438 | 128,956 | 128,130 | |||
Diluted | 132,288 | 129,801 | 128,717 | |||
Earnings per Share of Common Stock Attributable to RPM International Inc. Stockholders: | ' | ' | ' | |||
Basic | $2.20 | $0.75 | $1.65 | |||
Diluted | $2.18 | $0.74 | $1.65 | |||
Cash Dividends Declared per Share of Common Stock | $0.95 | $0.89 | $0.86 | |||
[1] | It is not practicable to obtain the information needed to disclose revenues attributable to each of our product lines. | |||||
[2] | The presentation includes a reconciliation of Income (Loss) Before Income Taxes, a measure defined by Generally Accepted Accounting Principles (GAAP) in the United States, to EBIT. |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
Net income | $305,984 | $109,851 | $233,763 |
Other Comprehensive Income, Before Tax: | ' | ' | ' |
Foreign Currency Translation Adjustments | 14,272 | -7,963 | -112,668 |
Pension and Other Postretirement Benefit Liabilities | ' | ' | ' |
Net Loss Arising During the Period | -33,040 | 27,514 | -138,634 |
Prior Service Cost Arising During the Period | 1,087 | ' | ' |
Less: Amortization of Prior Service Cost Included in Net Periodic Pension Cost | 200 | 310 | 276 |
Less: Amortization of Net Gain (Loss) and Settlement Recognition | 16,086 | 20,412 | 10,693 |
Effect of Exchange Rates on Amounts Included for Pensions | 140 | 529 | 4,500 |
Pension and Other Postretirement Benefit Liability Adjustments | -15,527 | 48,765 | -123,165 |
Unrealized Gains on Available-For-Sale Securities | ' | ' | ' |
Unrealized Holding Gains During the Period | 4,368 | 7,967 | -21,030 |
Less: Reclassification Adjustments for Gains Included in Net Income | 1,220 | -1,953 | 1,043 |
Unrealized Gain (Loss) on Securities | 5,588 | 6,014 | -19,987 |
Unrealized Gain (Loss) on Derivatives | -1,463 | -15 | -6,590 |
Other Comprehensive Income, Before Tax | 2,870 | 46,801 | -262,410 |
Income Tax Expense Related to Components of Other Comprehensive Income | 4,976 | -19,470 | 50,565 |
Other Comprehensive Income, After Tax | 7,846 | 27,331 | -211,845 |
Comprehensive Income | 313,830 | 137,182 | 21,918 |
Less: Comprehensive Income Attributable to Noncontrolling Interests | 19,799 | 19,939 | -10,052 |
Comprehensive Income Attributable to RPM International Inc. Stockholders | $294,031 | $117,243 | $31,970 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
Cash Flows From Operating Activities: | ' | ' | ' |
Net income | $305,984 | $109,851 | $233,763 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation | 58,543 | 55,715 | 51,939 |
Amortization | 31,526 | 30,621 | 24,084 |
Impairment on investment in Kemrock | ' | 51,092 | ' |
Loss Contingency | ' | 65,134 | ' |
Asset impairment charge | ' | 7,416 | ' |
Other-than-temporary impairments on marketable securities | 161 | 14,279 | 1,604 |
Deferred income taxes | 6,572 | -40,991 | -7,088 |
Stock-based compensation expense | 23,568 | 17,145 | 13,904 |
Other | -1,833 | -2,190 | -6,590 |
Changes in assets and liabilities, net of effect from purchases and sales of businesses: | ' | ' | ' |
Decrease (increase) in receivables | -79,080 | -6,853 | -36,791 |
Decrease (increase) in inventory | -59,001 | -40,079 | -14,856 |
Decrease (increase) in prepaid expenses and other current and long-term assets | -12,586 | 2,236 | 24,897 |
Increase in accounts payable | 42,216 | 70,803 | 31,202 |
(Decrease) increase in accrued compensation and benefits | 19,193 | -8,399 | 11,299 |
(Decrease) in accrued loss reserves | -146 | -1,847 | -3,489 |
Increase in other accrued liabilities | 14,855 | 61,035 | -31,998 |
(Decrease) in contingent payment | -63,014 | ' | ' |
Other | -8,809 | -16,514 | 2,992 |
Cash From Operating Activities | 278,149 | 368,454 | 294,872 |
Cash Flows From Investing Activities: | ' | ' | ' |
Capital expenditures | -93,792 | -91,367 | -71,615 |
Acquisition of businesses, net of cash acquired | -39,248 | -397,425 | -163,414 |
Purchase of marketable securities | -83,536 | -106,301 | -69,824 |
Proceeds from sales of marketable securities | 62,896 | 106,509 | 51,415 |
Proceeds from sales of assets and businesses | 2,794 | 128 | 2,171 |
Investment in unconsolidated affiliates | ' | ' | -32,529 |
Other | 1,175 | 11,052 | 16,474 |
Cash (Used For) Investing Activities | -149,711 | -477,404 | -267,322 |
Cash Flows From Financing Activities: | ' | ' | ' |
Additions to long-term and short-term debt | 208,582 | 300,902 | 27,894 |
Reductions of long-term and short-term debt | -215,105 | -49,376 | -36,128 |
Cash dividends | -125,743 | -117,647 | -112,153 |
Repurchase of stock | -12,907 | -3,013 | -6,985 |
Exercise of stock options | 7,930 | 7,284 | 9,931 |
Cash From (Used For) Financing Activities | -137,243 | 138,150 | -117,441 |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | -1,881 | -1,614 | -29,152 |
Net Change in Cash and Cash Equivalents | -10,686 | 27,586 | -119,043 |
Cash and Cash Equivalents at Beginning of Period | 343,554 | 315,968 | 435,011 |
Cash and Cash Equivalents at End of Period | 332,868 | 343,554 | 315,968 |
Cash paid during the year for: | ' | ' | ' |
Interest | 81,505 | 77,869 | 70,517 |
Income taxes | 103,338 | 106,043 | 96,067 |
Supplemental Schedule of Non-Cash Investing and Financing Activities: | ' | ' | ' |
Debt from business combinations | ' | $1,377 | $3,858 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock | Paid-In Capital | Treasury Stock | Accumulated Other Comprehensive Income/(Loss) | Retained Earnings | Total RPM International Inc. Equity | Non-Controlling Interests |
In Thousands | ||||||||
Beginning Balance at May. 31, 2011 | $1,387,368 | $1,306 | $735,245 | ($62,495) | $6,073 | $583,035 | $1,263,164 | $124,204 |
Beginning Balance (in shares) at May. 31, 2011 | ' | 130,580 | ' | ' | ' | ' | ' | ' |
Net income | 233,763 | ' | ' | ' | ' | 215,936 | 215,936 | 17,827 |
Other comprehensive income | -211,845 | ' | ' | ' | -183,966 | ' | -183,966 | -27,879 |
Dividends paid | -112,153 | ' | ' | ' | ' | -112,153 | -112,153 | ' |
Other noncontrolling interest activity | ' | ' | -16,175 | ' | ' | ' | -16,175 | 16,175 |
Shares repurchased (in shares) | ' | -165 | ' | ' | ' | ' | ' | ' |
Shares repurchased | -3,008 | -2 | 2 | -3,008 | ' | ' | -3,008 | ' |
Stock option exercises (in shares) | ' | 577 | ' | ' | ' | ' | ' | ' |
Stock option exercises | 6,599 | 6 | 7,311 | -718 | ' | ' | 6,599 | ' |
Stock option compensation | 3,991 | ' | 3,991 | ' | ' | ' | 3,991 | ' |
Restricted stock award compensation (in shares) | ' | 563 | ' | ' | ' | ' | ' | ' |
Restricted stock award compensation | 9,268 | 6 | 12,521 | -3,259 | ' | ' | 9,268 | ' |
Ending Balance at May. 31, 2012 | 1,313,983 | 1,316 | 742,895 | -69,480 | -177,893 | 686,818 | 1,183,656 | 130,327 |
Ending Balance (in shares) at May. 31, 2012 | ' | 131,555 | ' | ' | ' | ' | ' | ' |
Net income | 109,851 | ' | ' | ' | ' | 98,603 | 98,603 | 11,248 |
Other comprehensive income | 27,331 | ' | ' | ' | 18,640 | ' | 18,640 | 8,691 |
Dividends paid | -117,647 | ' | ' | ' | ' | -117,647 | -117,647 | ' |
Other noncontrolling interest activity | ' | ' | -3,809 | ' | ' | ' | -3,809 | 3,809 |
Stock option exercises (in shares) | ' | 431 | ' | ' | ' | ' | ' | ' |
Stock option exercises | 2,858 | 4 | 4,788 | -1,934 | ' | ' | 2,858 | ' |
Stock option compensation | 1,318 | ' | 1,318 | ' | ' | ' | 1,318 | ' |
Restricted stock award compensation (in shares) | ' | 610 | ' | ' | ' | ' | ' | ' |
Restricted stock award compensation | 17,239 | 6 | 18,313 | -1,080 | ' | ' | 17,239 | ' |
Ending Balance at May. 31, 2013 | 1,354,933 | 1,326 | 763,505 | -72,494 | -159,253 | 667,774 | 1,200,858 | 154,075 |
Ending Balance (in shares) at May. 31, 2013 | ' | 132,596 | ' | ' | ' | ' | ' | ' |
Net income | 305,984 | ' | ' | ' | ' | 291,660 | 291,660 | 14,324 |
Other comprehensive income | 7,846 | ' | ' | ' | 2,371 | ' | 2,371 | 5,475 |
Dividends paid | -125,743 | ' | ' | ' | ' | -125,743 | -125,743 | ' |
Other noncontrolling interest activity | ' | ' | -21,876 | ' | ' | ' | -21,876 | 21,876 |
Stock option exercises (in shares) | ' | 404 | ' | ' | ' | ' | ' | ' |
Stock option exercises | -462 | 4 | 3,920 | -4,386 | ' | ' | -462 | ' |
Stock option compensation | 6,894 | ' | 6,894 | ' | ' | ' | 6,894 | ' |
Restricted stock award compensation (in shares) | ' | 273 | ' | ' | ' | ' | ' | ' |
Restricted stock award compensation | 16,164 | 3 | 24,681 | -8,520 | ' | ' | 16,164 | ' |
Equity component convertible bond | 13,470 | ' | 13,470 | ' | ' | ' | 13,470 | ' |
Deferred financing convertible bond | -492 | ' | -492 | ' | ' | ' | -492 | ' |
Ending Balance at May. 31, 2014 | $1,578,594 | $1,333 | $790,102 | ($85,400) | ($156,882) | $833,691 | $1,382,844 | $195,750 |
Ending Balance (in shares) at May. 31, 2014 | ' | 133,273 | ' | ' | ' | ' | ' | ' |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||||||
31-May-14 | |||||||||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||||||||
NOTE A — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||||||
1) Consolidation, Noncontrolling Interests and Basis of Presentation | |||||||||||||||||
Our financial statements include all of our majority-owned subsidiaries, except for certain subsidiaries that were deconsolidated on May 31, 2010 (please refer to Note A[2]). 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. | |||||||||||||||||
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). | |||||||||||||||||
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. | |||||||||||||||||
2) 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 (the “Bankruptcy Court”). 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 May 31, 2014. | |||||||||||||||||
3) Use of Estimates | |||||||||||||||||
The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Management has evaluated subsequent events through the date the Consolidated Financial Statements were filed with the Securities and Exchange Commission (“SEC”). | |||||||||||||||||
4) Acquisitions/Divestitures | |||||||||||||||||
We account for business combinations using the acquisition method of accounting and, accordingly, the assets and liabilities of the acquired entities are recorded at their estimated fair values at the acquisition date. | |||||||||||||||||
During the fiscal year ended May 31, 2014, we completed four acquisitions. Two of the current-year acquisitions report through our consumer reportable segment, which included the following: a producer of specialty primers based in Westlake, Ohio; and a producer and marketer of premium concrete and wood deck floor coatings based in St. Paul, Minnesota. The other two product line acquisitions report through our industrial reportable segment and included the following: a Nova Scotia limited company that patented structural fibers used to replace steel fibers, welded wire mesh and conventional reinforcing bars in a wide variety of applications; and a producer of terrazzo tile, cork and rubber/cork floor tiles headquartered in Exton, Pennsylvania. | |||||||||||||||||
During the fiscal year ended May 31, 2013, we completed six acquisitions. Two of those acquisitions report through our consumer reportable segment, which included the following: a producer and marketer of innovative and unique exterior wood deck and concrete restoration systems based in Clarkston, Georgia; and a manufacturer of nail care enamels, coatings components and related products for the personal care industry located in Paterson, New Jersey. The remaining product line acquisitions report through our industrial reportable segment, and include our acquisition of a manufacturer of rolled asphalt roofing materials, waterproofing products, chemical admixtures and industrial epoxy flooring systems located in Cacapava, Brazil; and three smaller businesses. | |||||||||||||||||
The purchase price for each acquisition has been allocated to the estimated fair values of the assets acquired and liabilities assumed as of the date of acquisition. Final determinations of the purchase price allocation for these acquisitions have been completed, and are aggregated by year of purchase in the following table: | |||||||||||||||||
Fiscal 2014 Acquisitions | Fiscal 2013 Acquisitions | ||||||||||||||||
(In thousands) | Weighted- | Total | Weighted- | Total | |||||||||||||
Average | Average | ||||||||||||||||
Intangible | Intangible | ||||||||||||||||
Asset | Asset | ||||||||||||||||
Amortization | Amortization | ||||||||||||||||
Life (In | Life (In | ||||||||||||||||
Years) | Years) | ||||||||||||||||
Current assets | $ | 10,874 | $ | 67,397 | |||||||||||||
Property, plant and equipment | 4,234 | 46,306 | |||||||||||||||
Goodwill | N/A | 21,296 | N/A | 260,789 | |||||||||||||
Tradenames - indefinite lives | N/A | 2,000 | N/A | 38,448 | |||||||||||||
Other intangible assets | 14 | 19,462 | 9 | 103,593 | |||||||||||||
Other long-term assets | — | 8,171 | |||||||||||||||
Total Assets Acquired | $ | 57,866 | $ | 524,704 | |||||||||||||
Liabilities assumed | (18,361 | ) | (120,372 | ) | |||||||||||||
Net Assets Acquired | $ | 39,505 | (1) | $ | 404,332 | (2) | |||||||||||
-1 | Figure includes cash acquired of $0.3 million. | ||||||||||||||||
-2 | Figure includes cash acquired of $6.9 million. | ||||||||||||||||
Our Consolidated Financial Statements reflect the results of operations of acquired businesses as of their respective dates of acquisition. Pro-forma results of operations for the years ended May 31, 2014 and May 31, 2013 were not materially different from reported results and, consequently, are not presented. | |||||||||||||||||
5) Foreign Currency | |||||||||||||||||
The functional currency for each of our foreign subsidiaries is its principal operating currency. Accordingly, for the periods presented, assets and liabilities have been translated using exchange rates at year end, while income and expense for the periods have been translated using a weighted-average exchange rate. | |||||||||||||||||
The resulting translation adjustments have been recorded in accumulated other comprehensive income (loss), a component of stockholders’ equity, and will be included in net earnings only upon the sale or liquidation of the underlying foreign investment, neither of which is contemplated at this time. Transaction gains and losses have been immaterial during the past three fiscal years. | |||||||||||||||||
6) Cash and Cash Equivalents | |||||||||||||||||
For purposes of the statement of cash flows, we consider all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. We do not believe we are exposed to any significant credit risk on cash and cash equivalents. The carrying amounts of cash and cash equivalents approximate fair value. | |||||||||||||||||
7) Property, Plant & Equipment | |||||||||||||||||
May 31, | 2014 | 2013 | |||||||||||||||
(In thousands) | |||||||||||||||||
Land | $ | 50,245 | $ | 45,281 | |||||||||||||
Buildings and leasehold improvements | 328,269 | 311,869 | |||||||||||||||
Machinery and equipment | 813,162 | 770,973 | |||||||||||||||
Total property, plant and equipment, at cost | 1,191,676 | 1,128,123 | |||||||||||||||
Less: allowance for depreciation and amortization | 658,871 | 635,760 | |||||||||||||||
Property, plant and equipment, net | $ | 532,805 | $ | 492,363 | |||||||||||||
We review long-lived assets for impairment when circumstances indicate that the carrying values of these assets may not be recoverable. For assets that are to be held and used, an impairment charge is recognized when the estimated undiscounted future cash flows associated with the asset or group of assets are less than their carrying value. If impairment exists, an adjustment is made to write the asset down to its fair value, and a loss is recorded for the difference between the carrying value and the fair value. Fair values are determined based on quoted market values, discounted cash flows, internal appraisals or external appraisals, as applicable. Assets to be disposed of are carried at the lower of their carrying value or estimated net realizable value. | |||||||||||||||||
Depreciation is computed primarily using the straight-line method over the following ranges of useful lives: | |||||||||||||||||
Land improvements | 3 to 30 years | ||||||||||||||||
Buildings and improvements | 3 to 50 years | ||||||||||||||||
Machinery and equipment | 1 to 30 years | ||||||||||||||||
Total depreciation expense for each fiscal period includes the charges to income that result from the amortization of assets recorded under capital leases. | |||||||||||||||||
8) Revenue Recognition | |||||||||||||||||
Revenues are recognized when realized or realizable, and when earned. In general, this is when title and risk of loss pass to the customer. Further, revenues are realizable when we have persuasive evidence of a sales arrangement, the product has been shipped or the services have been provided to the customer, the sales price is fixed or determinable, and collectibility is reasonably assured. We reduce our revenues for estimated customer returns and allowances, certain rebates, sales incentives, and promotions in the same period the related sales are recorded. | |||||||||||||||||
We also record revenues generated under long-term construction contracts, mainly in connection with the installation of specialized roofing and flooring systems, and related services. Certain long-term construction contracts are accounted for under the percentage-of-completion method, and therefore we record contract revenues and related costs as our contracts progress. This method recognizes the economic results of contract performance on a timelier basis than does the completed-contract method; however, application of this method requires reasonably dependable estimates of progress toward completion, as well as other dependable estimates. When reasonably dependable estimates cannot be made, or if other factors make estimates doubtful, the completed-contract method is applied. Under the completed-contract method, billings and costs are accumulated on the balance sheet as the contract progresses, but no revenue is recognized until the contract is complete or substantially complete. | |||||||||||||||||
9) Shipping Costs | |||||||||||||||||
Shipping costs paid to third-party shippers for transporting products to customers are included in selling, general and administrative expenses. For the years ended May 31, 2014, 2013 and 2012, shipping costs were $133.0 million, $125.6 million and $112.0 million, respectively. | |||||||||||||||||
10) Allowance for Doubtful Accounts Receivable | |||||||||||||||||
An allowance for anticipated uncollectible trade receivable amounts is established using a combination of specifically identified accounts to be reserved and a reserve covering trends in collectibility. These estimates are based on an analysis of trends in 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. Actual collections of trade receivables could differ from our estimates due to changes in future economic or industry conditions or specific customer’s financial conditions. For the periods ended May 31, 2014, 2013 and 2012, bad debt expense approximated $7.6 million, $18.8 million and $5.8 million, respectively. Included in bad debt expense during fiscal 2013 is $9.0 million recognized for amounts written off in relation to our loan to Kemrock. | |||||||||||||||||
11) Inventories | |||||||||||||||||
Inventories are stated at the lower of cost or market, cost being determined on a first-in, first-out (FIFO) basis and market being determined on the basis of replacement cost or net realizable value. Inventory costs include raw materials, labor and manufacturing overhead. We review the net realizable value of our inventory in detail on an on-going basis, with consideration given to various factors, which include our estimated reserves for excess, obsolete, slow moving or distressed inventories. If actual market conditions differ from our projections, and our estimates prove to be inaccurate, write-downs of inventory values and adjustments to cost of sales may be required. Historically, our inventory reserves have approximated actual experience. Inventories were composed of the following major classes: | |||||||||||||||||
May 31, | 2014 | 2013 | |||||||||||||||
(In thousands) | |||||||||||||||||
Raw material and supplies | $ | 213,981 | $ | 185,590 | |||||||||||||
Finished goods | 399,663 | 363,090 | |||||||||||||||
Total Inventory | $ | 613,644 | $ | 548,680 | |||||||||||||
12) Goodwill and Other Intangible Assets | |||||||||||||||||
We account for goodwill and other intangible assets in accordance with the provisions of ASC 350 and account for business combinations using the acquisition method of accounting and accordingly, the assets and liabilities of the entities acquired are recorded at their estimated fair values at the acquisition date. Goodwill represents the excess of the purchase price paid over the fair value of net assets acquired, including the amount assigned to identifiable intangible assets. | |||||||||||||||||
We performed the required annual goodwill impairment assessments as of the first day of our fourth fiscal quarter at the reporting unit level. Our reporting units have been identified at the component level, which is the operating segment level or one level below. First, we assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The traditional two-step quantitative process is required only if we conclude that it is more likely than not that a reporting unit’s fair value is less than its carrying amount. However, we have an unconditional option to bypass a qualitative assessment and proceed directly to performing the traditional two-step quantitative analysis. We applied both the qualitative and traditional two-step quantitative processes during our annual goodwill impairment assessment performed during the fourth quarter of fiscal 2014. | |||||||||||||||||
The traditional two-step quantitative goodwill impairment assessment involves estimating the fair value of a reporting unit and comparing it with its carrying amount. If the carrying amount of the reporting unit exceeds its fair value, additional steps are followed to determine and recognize, if appropriate, an impairment loss. Calculating the fair value of the reporting units requires our significant use of estimates and assumptions. We estimate the fair values of our reporting units by applying a combination of third-party market-value indicators, when observable market data is available, and discounted future cash flows to each of our reporting unit’s projected EBITDA. In applying this methodology, we rely on a number of factors, including actual and forecasted operating results and market data. As a result of the assessments performed for fiscal 2014, 2013 and 2012, there were no indicators of impairment, including no reporting units that were at risk of failing step one of the traditional two-step quantitative analysis. | |||||||||||||||||
Additionally, we test all indefinite-lived intangible assets for impairment annually. We perform the required annual impairment assessments as of the first day of our fourth fiscal quarter. During fiscal 2013, we adopted new FASB guidance that simplifies how an entity tests indefinite-lived intangible assets for impairment. It provides an option to first assess qualitative factors to determine whether it is more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying amount. | |||||||||||||||||
The annual impairment assessment involves estimating the fair value of each indefinite-lived asset and comparing it with its carrying amount. If the carrying amount of the intangible asset exceeds its fair value, we record an impairment loss equal to the difference. Calculating the fair value of the indefinite-lived assets requires our significant use of estimates and assumptions. We estimate the fair values of our intangible assets by applying a relief-from-royalty calculation, which includes discounted future cash flows related to each of our intangible asset’s projected revenues. In applying this methodology, we rely on a number of factors, including actual and forecasted revenues and market data. As a result of the assessments performed for fiscal 2014, 2013 and 2012, there were no indicators of impairment. | |||||||||||||||||
Should the future earnings and cash flows at our reporting units decline and/or discount rates increase, future impairment charges to goodwill and other intangible assets may be required. | |||||||||||||||||
13) Advertising Costs | |||||||||||||||||
Advertising costs are charged to operations when incurred and are included in SG&A expenses. For the years ended May 31, 2014, 2013 and 2012, advertising costs were $49.6 million, $43.2 million and $34.1 million, respectively. | |||||||||||||||||
14) Research and Development | |||||||||||||||||
Research and development costs are charged to operations when incurred and are included in selling, general and administrative expenses. The amounts charged to expense for the years ended May 31, 2014, 2013 and 2012 were $54.6 million, $49.3 million and $45.4 million, respectively. | |||||||||||||||||
15) Stock-Based Compensation | |||||||||||||||||
Stock-based compensation represents the cost related to stock-based awards granted to our employees and directors, which may include restricted stock, stock options and stock appreciation rights (“SARs”). We measure stock-based compensation cost at the date of grant, based on the estimated fair value of the award. We recognize the cost as expense on a straight-line basis (net of estimated forfeitures) over the related vesting period. Refer to Note I, “Stock-Based Compensation,” for further information. | |||||||||||||||||
16) Investment (Income), Net | |||||||||||||||||
Investment (income), net, consists of the following components: | |||||||||||||||||
Year Ended May 31, | 2014 | 2013 | 2012 | ||||||||||||||
(In thousands) | |||||||||||||||||
Interest (income) | $ | (6,327 | ) | $ | (6,814 | ) | $ | (5,031 | ) | ||||||||
Loss (gain) on sale of marketable securities | (7,353 | ) | (11,664 | ) | 862 | ||||||||||||
Other-than-temporary impairment on securities | 161 | 14,279 | 1,604 | ||||||||||||||
Dividend (income) | (2,196 | ) | (1,979 | ) | (1,621 | ) | |||||||||||
Investment (income), net | $ | (15,715 | ) | $ | (6,178 | ) | $ | (4,186 | ) | ||||||||
17) Other (Income) Expense, Net | |||||||||||||||||
Other (income) expense, net, consists of the following components: | |||||||||||||||||
Year Ended May 31, | 2014 | 2013 | 2012 | ||||||||||||||
(In thousands) | |||||||||||||||||
Royalty (income), net | $ | (1,195 | ) | $ | (2,069 | ) | $ | (1,520 | ) | ||||||||
Loss on Brazil operational repositioning | — | 6,087 | |||||||||||||||
Loss on Kemrock conversion option | — | 9,030 | |||||||||||||||
(Income) loss related to unconsolidated equity affiliates | (2,888 | ) | 44,671 | (8,079 | ) | ||||||||||||
Other (income) expense, net | $ | (4,083 | ) | $ | 57,719 | $ | (9,599 | ) | |||||||||
Equity in Income of Unconsolidated Affiliates | |||||||||||||||||
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 purchased approximately 870,000 additional shares of Kemrock common stock, which increased our ownership to 23% of Kemrock’s outstanding shares. Also during fiscal 2012, we entered into a GDR Purchase Agreement with Kemrock, whereby we purchased from Kemrock 693,072 GDRs of Kemrock for an aggregate purchase price of approximately $7.2 million. We account for our investment in the Kemrock GDRs as common stock equivalents within our total investment in Kemrock. Lastly, during fiscal 2012, we invested $22.7 million in 5.5% convertible bonds issued by Kemrock. The bonds are convertible into ordinary shares or GDRs, each representing one ordinary share of Kemrock stock, and may be converted at any time on or after June 4, 2012 and up to the close of business on June 12, 2017. | |||||||||||||||||
Due to the presumption under GAAP that an entity with an ownership percentage greater than 20% has significant influence, and no other factors would refute that presumption, we changed our accounting for this investment to the equity method. Adjustments are made to our investment in order to recognize our share of Kemrock’s earnings as they occur, rather than as dividends or other distributions are received. Any changes in our proportionate share of the underlying equity of Kemrock, which could result from their issuance of additional equity securities, are recognized as increases or decreases in shareholders’ equity, net of any related tax effects. | |||||||||||||||||
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. In consideration of all available evidence to evaluate the realizable value of our equity investment, including a 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, we determined that it was appropriate to record an impairment loss during fiscal 2013 of approximately $55.9 million on our equity method investment, which is classified in other (income) expense, net in our Consolidated Statements of Income. We also recorded a loss of approximately $13.7 million for the write-down of our investment in Kemrock convertible bonds, which is classified in investment (income) expense, net in our Consolidated Statements of Income. | |||||||||||||||||
Our investment in Kemrock had no carrying value at May 31, 2014 or 2013. | |||||||||||||||||
Loss on Repositioning of Operations in Brazil | |||||||||||||||||
During fiscal 2013, we completed a definitive plan to substantially liquidate our StonCor Brazil subsidiary, a small flooring business in Brazil with sales, income and assets that amounted to significantly less than 1% of our consolidated sales, income and assets in any given year, in order to leverage the substantial sales force, manufacturing facilities, broad distribution network and entrepreneurial management team of our Viapol subsidiary, which was acquired in June 2012. The acquisition of Viapol has given us the critical mass needed to sell construction products in Brazil, including RPM’s existing flooring brands such as Stonhard and Flowcrete. Viapol has the local manufacturing capabilities and technically skilled salespeople required to sell epoxy and polyurethane flooring in Brazil where we previously lacked a significant presence. | |||||||||||||||||
As a result of our repositioning of certain of our industrial segment operations in Brazil, we incurred a loss of approximately $6.1 million. Included in the loss was the impact of an adjustment for accumulated foreign currency translation. This non-cash charge was previously recorded as an unrealized foreign exchange loss in our currency translation account as a component of other comprehensive income. | |||||||||||||||||
18) Income Taxes | |||||||||||||||||
The provision for income taxes is calculated using the liability method. Under the liability method, deferred income taxes are recognized for the tax effect of temporary differences between the financial statement carrying amount of assets and liabilities and the amounts used for income tax purposes and for certain changes in valuation allowances. Valuation allowances are recorded to reduce certain deferred tax assets when, in our estimation, it is more likely than not that a tax benefit will not be realized. | |||||||||||||||||
As of May 31, 2014, it is possible that we could repatriate approximately $50.0 million of undistributed foreign earnings in the foreseeable future. Accordingly, the estimated tax impact, $2.5 million, of this potential repatriation has been reflected in our current results. We have not provided for U.S. income and foreign withholding taxes on the remaining foreign subsidiaries’ undistributed earnings of approximately $1.2 billion because such earnings have been retained and reinvested by the subsidiaries as of May 31, 2014. Accordingly, no provision has been made for U.S. income taxes or foreign withholding taxes, which may become payable if the remaining undistributed earnings of foreign subsidiaries were paid to us as dividends. The additional income taxes and applicable withholding taxes that would result had such earnings actually been repatriated are not practically determinable. | |||||||||||||||||
19) Earnings Per Share of Common Stock | |||||||||||||||||
Earnings per share (EPS) is computed using the two-class method. The two-class method determines EPS for each class of common stock and participating securities according to dividends and dividend equivalents and their respective participation rights in undistributed earnings. Our unvested share-based payment awards that contain rights to receive non-forfeitable dividends are considered participating securities. Basic EPS of common stock is computed by dividing net income by the weighted-average number of shares of common stock outstanding for the period. Diluted EPS of common stock is computed on the basis of the weighted-average number of shares of common stock plus the effect of dilutive potential shares of common stock outstanding during the period using the treasury stock method. Dilutive potential shares of common stock include outstanding stock options, stock awards and convertible notes. See Note K, “Earnings Per Share of Common Stock,” for additional information. | |||||||||||||||||
20) Other Recent 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. | |||||||||||||||||
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers,” which establishes a comprehensive revenue recognition standard for virtually all industries in U.S. GAAP. The new standard will apply for annual periods beginning after December 15, 2016, including interim periods therein. Early adoption is prohibited. We have not yet determined the effects, if any, adoption of this update may have on our consolidated financial statements. |
Restructuring
Restructuring | 12 Months Ended | ||||||||||||
31-May-14 | |||||||||||||
Restructuring | ' | ||||||||||||
NOTE B — RESTRUCTURING | |||||||||||||
We record restructuring charges associated with management-approved restructuring plans to either reorganize one or more of our business segments, or to remove duplicative headcount and infrastructure associated with our businesses. Restructuring charges can include severance costs to eliminate a specified number of employees, infrastructure charges to vacate facilities and consolidate operations, and contract cancellation costs. Restructuring charges are recorded based upon planned employee termination dates and site closure and consolidation plans. The timing of associated cash payments is dependent upon the type of restructuring charge and can extend over a multi-year period. We record the short-term portion of our restructuring liability in Other accrued liabilities and the long-term portion, if any, in Other long-term liabilities in our Consolidated Balance Sheets. | |||||||||||||
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 during the year ended May 31, 2013, of which approximately $8.2 million related to the elimination of 133 positions and approximately $7.4 million resulted from the shutdown of two manufacturing facilities. The facilities have been closed and are awaiting sale. Related severance payments will be paid in full by approximately the third quarter of fiscal 2015. In addition, there were approximately $3.9 million of inventory markdowns, which were reflected in Cost of Sales in our Consolidated Statements of Income during the year ended May 31, 2013. | |||||||||||||
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. This plan eliminated approximately 34 positions. Severance payments will be paid out in full generally by the first half of fiscal 2015. In connection with the plan, we recorded aggregate charges of approximately $4.5 million during the year ended May 31, 2013, all of which relates to workforce reductions. | |||||||||||||
The following table includes the changes in our accrued restructuring balances: | |||||||||||||
(In thousands) | Employee | Other | Total | ||||||||||
Severance | |||||||||||||
Balance at May 31, 2013 | $ | 12,656 | $ | 397 | $ | 13,053 | |||||||
Charge to expense | (243 | ) | — | (243 | ) | ||||||||
Cash payments | (10,688 | ) | (40 | ) | (10,728 | ) | |||||||
Noncash and foreign exchange impacts | 357 | 24 | 381 | ||||||||||
Balance at May 31, 2014 | $ | 2,082 | $ | 381 | $ | 2,463 | |||||||
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 12 Months Ended | ||||||||||||||||
31-May-14 | |||||||||||||||||
Goodwill and Other Intangible Assets | ' | ||||||||||||||||
NOTE C – GOODWILL AND OTHER INTANGIBLE ASSETS | |||||||||||||||||
The changes in the carrying amount of goodwill, by reportable segment, for the years ended May 31, 2014 and 2013, are as follows: | |||||||||||||||||
(In thousands) | Industrial | Consumer | Total | ||||||||||||||
Segment | Segment | ||||||||||||||||
Balance as of June 1, 2012 | $ | 465,891 | $ | 383,455 | $ | 849,346 | |||||||||||
Acquisitions | 98,718 | 162,071 | 260,789 | ||||||||||||||
Translation adjustments | 209 | 3,487 | 3,696 | ||||||||||||||
Balance as of May 31, 2013 | 564,818 | 549,013 | 1,113,831 | ||||||||||||||
Acquisitions | 3,147 | 18,149 | 21,296 | ||||||||||||||
Translation adjustments | 4,193 | 8,054 | 12,247 | ||||||||||||||
Balance as of May 31, 2014 | $ | 572,158 | $ | 575,216 | $ | 1,147,374 | |||||||||||
Total accumulated impairment losses were $14.9 million at May 31, 2014 and 2013, which was recorded during the fiscal year ended May 31, 2009 by our industrial reportable segment. | |||||||||||||||||
Other intangible assets consist of the following major classes: | |||||||||||||||||
(In thousands) | Amortization | Gross | Accumulated | Net Other | |||||||||||||
Period (In | Carrying | Amortization | Intangible | ||||||||||||||
Years) | Amount | Assets | |||||||||||||||
As of May 31, 2014 | |||||||||||||||||
Amortized intangible assets | |||||||||||||||||
Formulae | 3 to 33 | $ | 226,200 | $ | 124,413 | $ | 101,787 | ||||||||||
Customer-related intangibles | 3 to 33 | 201,968 | 80,667 | 121,301 | |||||||||||||
Trademarks/names | 3 to 40 | 33,219 | 15,435 | 17,784 | |||||||||||||
Other | 2 to 40 | 57,476 | 30,329 | 27,147 | |||||||||||||
Total Amortized Intangibles | 518,863 | 250,844 | 268,019 | ||||||||||||||
Indefinite-lived intangible assets | |||||||||||||||||
Trademarks/names | 191,517 | 191,517 | |||||||||||||||
Total Other Intangible Assets | $ | 710,380 | $ | 250,844 | $ | 459,536 | |||||||||||
As of May 31, 2013 | |||||||||||||||||
Amortized intangible assets | |||||||||||||||||
Formulae | 3 to 33 | $ | 216,418 | $ | 113,315 | $ | 103,103 | ||||||||||
Customer-related intangibles | 3 to 33 | 196,376 | 66,077 | 130,299 | |||||||||||||
Trademarks/names | 2 to 40 | 30,223 | 13,222 | 17,001 | |||||||||||||
Other | 1 to 40 | 48,817 | 27,046 | 21,771 | |||||||||||||
Total Amortized Intangibles | 491,834 | 219,660 | 272,174 | ||||||||||||||
Indefinite-lived intangible assets | |||||||||||||||||
Trademarks/names | 187,439 | 187,439 | |||||||||||||||
Total Other Intangible Assets | $ | 679,273 | $ | 219,660 | $ | 459,613 | |||||||||||
The aggregate intangible asset amortization expense for the fiscal years ended May 31, 2014, 2013 and 2012 was $28.2 million, $27.7 million and $21.4 million, respectively. For the next five fiscal years, we estimate annual intangible asset amortization expense related to our existing intangible assets to approximate the following: 2015 — $26.5 million, 2016 — $25.6 million, 2017 — $25.1 million, 2018 — $24.4 million and 2019 — $23.1 million. |
Marketable_Securities
Marketable Securities | 12 Months Ended | ||||||||||||||||
31-May-14 | |||||||||||||||||
Marketable Securities | ' | ||||||||||||||||
NOTE D – MARKETABLE SECURITIES | |||||||||||||||||
The following tables summarize marketable securities held at May 31, 2014 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) | |||||||||||||||||
May 31, 2014 | |||||||||||||||||
Equity securities: | |||||||||||||||||
Stocks - foreign | $ | 984 | $ | 669 | $ | (20 | ) | $ | 1,633 | ||||||||
Stocks - domestic | 31,071 | 8,965 | (132 | ) | 39,904 | ||||||||||||
Mutual funds - foreign | 30,541 | 2,799 | — | 33,340 | |||||||||||||
Mutual funds - domestic | 44,242 | 1,790 | (1,109 | ) | 44,923 | ||||||||||||
Total equity securities | 106,838 | 14,223 | (1,261 | ) | 119,800 | ||||||||||||
Fixed maturity: | |||||||||||||||||
U.S. treasury and other government | 21,156 | 152 | (164 | ) | 21,144 | ||||||||||||
Corporate bonds | 1,544 | 212 | — | 1,756 | |||||||||||||
Foreign bonds | 37 | 3 | — | 40 | |||||||||||||
Mortgage-backed securities | 85 | 55 | — | 140 | |||||||||||||
Total fixed maturity securities | 22,822 | 422 | (164 | ) | 23,080 | ||||||||||||
Total | $ | 129,660 | $ | 14,645 | $ | (1,425 | ) | $ | 142,880 | ||||||||
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 | ||||||||||||
Corporate 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 $71.9 million and $71.0 million at May 31, 2014, 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 and losses realized on sales of investments were $7.5 million and $0.1 million, respectively, for the year ended May 31, 2014. Gross gains and losses realized on sales of investments were $12.3 million and $0.6 million, respectively, for the year ended May 31, 2013. During fiscal 2014 and 2013, we recognized losses of approximately $0.2 million and $14.3 million, respectively, for securities deemed to have other-than-temporary impairments. Included in the other-than-temporary impairments recorded during fiscal 2013 is the loss recognized for our remaining investment in Kemrock convertible bonds, totaling $13.7 million. These amounts are included in investment (income), net in the Consolidated Statements of Income. | |||||||||||||||||
Summarized below are the securities we held at May 31, 2014 and 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: | |||||||||||||||||
May 31, 2014 | May 31, 2013 | ||||||||||||||||
(In thousands) | Fair | Gross | Fair | Gross | |||||||||||||
Value | Unrealized | Value | Unrealized | ||||||||||||||
Losses | Losses | ||||||||||||||||
Total investments with unrealized losses | $ | 35,465 | $ | (1,425 | ) | $ | 36,582 | $ | (1,034 | ) | |||||||
Unrealized losses with a loss position for less than 12 months | 16,611 | (845 | ) | 36,327 | (956 | ) | |||||||||||
Unrealized losses with a loss position for more than 12 months | 18,854 | (580 | ) | 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. The unrealized losses generally relate to investments whose fair values at May 31, 2014 were less than 15% below their original cost. From time to time, we may experience significant volatility in general economic and market conditions. If we were to experience unrealized losses that were to continue for longer periods of time, or 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 May 31, 2014, 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 | $ | 3,198 | $ | 3,214 | |||||||||||||
One year through five years | 14,984 | 15,015 | |||||||||||||||
Six years through ten years | 3,271 | 3,304 | |||||||||||||||
After ten years | 1,369 | 1,547 | |||||||||||||||
$ | 22,822 | $ | 23,080 | ||||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||
31-May-14 | |||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
NOTE E — 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 | Significant | Significant | Fair Value at | |||||||||||||
in Active | Other | Unobservable | May 31, 2014 | ||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||
Identical Assets | Inputs (Level 2) | (Level 3) | |||||||||||||||
(Level 1) | |||||||||||||||||
U.S. Treasury and other government | $ | — | $ | 21,144 | $ | — | $ | 21,144 | |||||||||
Foreign bonds | 40 | 40 | |||||||||||||||
Mortgage-backed securities | 140 | 140 | |||||||||||||||
Corporate bonds | 1,756 | 1,756 | |||||||||||||||
Stocks - foreign | 1,633 | 1,633 | |||||||||||||||
Stocks - domestic | 39,904 | 39,904 | |||||||||||||||
Mutual funds - foreign | 33,340 | 33,340 | |||||||||||||||
Mutual funds - domestic | 44,923 | 44,923 | |||||||||||||||
Foreign currency forward contract | 2,582 | 2,582 | |||||||||||||||
Cross-currency swap | (19,550 | ) | (19,550 | ) | |||||||||||||
Contingent consideration | (81,296 | ) | (81,296 | ) | |||||||||||||
Total | $ | 41,537 | $ | 84,375 | $ | (81,296 | ) | $ | 44,616 | ||||||||
(In thousands) | Quoted Prices | Significant | Significant | Fair Value at | |||||||||||||
in Active | Other | Unobservable | May 31, 2013 | ||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||
Identical Assets | Inputs (Level 2) | (Level 3) | |||||||||||||||
(Level 1) | |||||||||||||||||
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 | (69,020 | ) | (69,020 | ) | |||||||||||||
Total | $ | 30,699 | $ | 67,595 | $ | (69,020 | ) | $ | 29,274 | ||||||||
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 $19.6 million at May 31, 2014, which 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 May 31, 2014, 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, which are considered to be Level 3 inputs. During the fiscal year ended May 31, 2014, current-year acquisitions resulted in an increase of approximately $17.3 million, and we paid approximately $5.0 million for settlements of contingent obligations established in the prior-year period. | |||||||||||||||||
The carrying value of our current financial instruments, which include cash and cash equivalents, marketable securities, trade accounts receivable, accounts payable and short-term debt approximates fair value because of the short-term maturity of these financial instruments. At May 31, 2014 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 May 31, 2014 and May 31, 2013 are as follows: | |||||||||||||||||
At May 31, 2014 | |||||||||||||||||
(In thousands) | Carrying Value | Fair Value | |||||||||||||||
Cash and cash equivalents | $ | 332,868 | $ | 332,868 | |||||||||||||
Marketable equity securities | 119,800 | 119,800 | |||||||||||||||
Marketable debt securities | 23,080 | 23,080 | |||||||||||||||
Long-term debt, including current portion | 1,351,627 | 1,516,062 | |||||||||||||||
At May 31, 2013 | |||||||||||||||||
(In thousands) | Carrying Value | Fair 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 | |||||||||||||||
Borrowings
Borrowings | 12 Months Ended | ||||||||
31-May-14 | |||||||||
Borrowings | ' | ||||||||
NOTE F — BORROWINGS | |||||||||
A description of long-term debt follows: | |||||||||
May 31, | 2014 | 2013 | |||||||
(In thousands) | |||||||||
Unsecured 6.25% senior notes due December 15, 2013 | $ | — | $ | 200,000 | |||||
Unsecured 6.70% senior notes due November 1, 2015(1) | 150,000 | 150,000 | |||||||
Unsecured 6.50% senior notes due February 14, 2018(2) | 248,627 | 248,259 | |||||||
Unsecured 6.125% senior note due October 15, 2019(3) | 458,163 | 459,457 | |||||||
Unsecured $205,000 face value at maturity 2.25% senior convertible notes due December 15, 2020 | 185,474 | — | |||||||
Unsecured 3.45% senior notes due November 15, 2022 | 300,000 | 300,000 | |||||||
Revolving credit agreement for $600,000 with a syndicate of banks, through June 29, 2017 (4) | 2,090 | 7,701 | |||||||
Other obligations, including capital leases and unsecured notes payable at various rates of interest due in installments through 2017 | 7,273 | 8,280 | |||||||
1,351,627 | 1,373,697 | ||||||||
Less: current portion | 5,662 | 4,521 | |||||||
Total Long-Term Debt, Less Current Maturities | $ | 1,345,965 | $ | 1,369,176 | |||||
-1 | We entered into a cross-currency swap, which fixed the interest and principal payments in euros, resulting in an effective fixed-rate borrowing of 5.31%. | ||||||||
-2 | The $250.0 million aggregate principal amount of the notes due 2018 is adjusted for the amortization of the original issue discount, which approximated $1.4 million and $1.7 million at May 31, 2014 and 2013, respectively. The original issue discount effectively reduced the ultimate proceeds from the financing. The effective interest rate on the notes, including the amortization of the discount, is 6.704% for both years presented. | ||||||||
-3 | Includes the combination of the October 2009 initial issuance of $300.0 million aggregate principal amount and the May 2011 issuance of an additional $150.0 million aggregate principal amount of these notes. The $300.0 million aggregate principal amount of the notes due 2019 from the initial issuance is adjusted for the amortization of the original issue discount, which approximated $0.2 million at May 31, 2014 and 2013. The original issue discount effectively reduced the ultimate proceeds from the October 2009 financing. The effective interest rate on the notes issued in October 2009, including the amortization of the discount, is 6.139%. The additional $150.0 million aggregate principal amount of the notes due 2019 issued in May 2011 is adjusted for the unamortized premium received at issuance, which approximated $8.3 million and $9.7 million at May 31, 2014 and 2013, respectively. The premium effectively increased the proceeds from the financing. The effective interest rate on the $150.0 million notes issued in May 2011 is 4.934%. | ||||||||
-4 | Interest was tied to AUD LIBOR at May 31, 2014, and averaged 3.96% for AUD denominated debt. Interest was tied to AUD LIBOR at May 31, 2013, and averaged 4.16% for AUD denominated debt. | ||||||||
The aggregate maturities of long-term debt for the five years subsequent to May 31, 2014 are as follows: 2015 — $5.7 million; 2016 — $151.0 million; 2017 — $0.4 million; 2018 — $0.2 million; 2019 — $250.7 million and thereafter $943.6 million. Additionally, at May 31, 2014, we had unused lines of credit totaling $797.8 million. | |||||||||
Our available liquidity, including our cash and cash equivalents and amounts available under our committed credit facilities, stood at $1.1 billion at May 31, 2014. Our debt-to-capital ratio was 49.4% at May 31, 2014, compared with 53.4% at May 31, 2013. | |||||||||
2.25% Convertible Senior Notes due 2020 | |||||||||
On December 9, 2013, we issued $205 million of 2.25% convertible senior notes due 2020 (the “Convertible Notes”). We will pay interest on the Convertible Notes semi-annually on June 15th and December 15th of each year, and began doing so on June 15, 2014. Net proceeds of approximately $200.1 million from the sale were used to refinance $200 million in principal amount of unsecured senior notes due December 15, 2013, which bear interest at 6.25%. | |||||||||
The Convertible Notes will be convertible under certain circumstances and during certain periods at an initial conversion rate of 18.8905 shares of RPM 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. The initial conversion price represents a conversion premium of approximately 37% over the last reported sale price of RPM common stock of $38.64 on December 3, 2013. Prior to June 15, 2020, the Convertible Notes may be converted only upon specified events, and, thereafter, at any time. Upon conversion, the Convertible Notes may be settled, at RPM’s election, in cash, shares of RPM’s common stock, or a combination of cash and shares of RPM’s common stock. | |||||||||
We account for the liability and equity components of the Convertible Notes separately, and in a manner that will reflect our nonconvertible debt borrowing rate when interest cost is recognized in subsequent periods. The effective interest rate on the liability component is 3.92%. Contractual interest was $2.2 million in fiscal 2014, and amortization of the debt discount was $1.2 million in fiscal 2014. At May 31, 2014, the remaining period over which the debt discount will be amortized was 6.5 years, the unamortized debt discount was $19.5 million, and the carrying amount of the equity component was $20.7 million. | |||||||||
6.25% Notes due 2013 | |||||||||
On December 15, 2013, our $200 million 6.25% senior notes matured. In December 2013, we refinanced this debt with proceeds received from our issuance of $205 million of Convertible Notes. | |||||||||
3.45% Notes due 2022 | |||||||||
On October 23, 2012, we sold $300 million aggregated principal amount of 3.45% Notes due 2022 (the “New Notes”). The net proceeds of $297.7 million from the offering of the New Notes were used to repay short-term borrowings outstanding under our $600 million revolving credit facility. | |||||||||
Revolving Credit Agreement | |||||||||
On June 29, 2012, we entered into an unsecured syndicated revolving credit facility (the “Credit Facility”) with a group of banks. The Credit Facility expires on June 29, 2017 and provides for a five-year $600.0 million revolving credit facility, which includes sublimits for the issuance of $50.0 million in swingline loans, which are comparatively short-term loans used for working capital purposes, and letters of credit. The aggregate maximum principal amount of the commitments under the Credit Facility may be expanded upon our request, subject to certain conditions, to $800.0 million. The Credit Facility is available to refinance existing indebtedness, to finance working capital and capital expenditure needs, and for general corporate purposes. | |||||||||
The Credit Facility requires us to comply with various customary affirmative and negative covenants, including a leverage covenant and interest coverage ratio. Under the terms of the leverage covenant, we may not permit our consolidated indebtedness as of any fiscal quarter end to exceed 60% of the sum of such indebtedness and our consolidated shareholders’ equity on such date. The minimum required consolidated interest coverage ratio for EBITDA to interest expense is 3.50 to 1. The interest coverage ratio is calculated at the end of each fiscal quarter for the four fiscal quarters then ended. | |||||||||
As of May 31, 2014, we were in compliance with all covenants contained in our Credit Facility, including the leverage and interest coverage ratio covenants. At that date, our leverage ratio was 49.6%, while our interest coverage ratio was 7.85 to 1. | |||||||||
Our access to funds under our Credit Facility is dependent on the ability of the financial institutions that are parties to the Credit Facility to meet their funding commitments. Those financial institutions may not be able to meet their funding commitments if they experience shortages of capital and liquidity or if they experience excessive volumes of borrowing requests within a short period of time. Moreover, the obligations of the financial institutions under our Credit Facility are several and not joint and, as a result, a funding default by one or more institutions does not need to be made up by the others. | |||||||||
Accounts Receivable Securitization Program | |||||||||
On May 31, 2011, we entered into Amendment No. 5 to our Receivables Purchase Agreement, dated April 7, 2009. Amendment No. 5 extended the term of our accounts receivable securitization program (the “AR Program”) to May 30, 2014, subject to possible earlier termination upon the occurrence of certain events. Pricing was based on the Alternate Base Rate, a LIBOR market index rate or LIBOR for a specified tranche period plus a margin of 1.0%. This margin would have increased to 1.25% if we had not maintained our public debt rating of at least BB+/Ba1/BB+ from any two of Standard & Poor’s, Moody’s or Fitch. In addition, a monthly unused fee was payable to the purchasers. Amendment No. 5 also modified or eliminated certain of the financial covenants under the AR Program. Under the terms of the amended AR Program, we could not permit our consolidated indebtedness calculated on the last day of each fiscal quarter to exceed 60% of the sum of such indebtedness and our consolidated shareholders’ equity on such date. The interest coverage ratio covenant required that we not permit the ratio, calculated at the end of each fiscal quarter for the four fiscal quarters then ended, of EBITDA to interest expense for such period to be less than 3.5 to 1. Finally, the fixed charge coverage ratio covenant under the pre-amended AR Program was eliminated. The financial tests that remained in the AR Program were substantially identical to the financial covenants contained in our Credit Facility. | |||||||||
On May 9, 2014, we replaced our existing $150.0 million AR Program (which immediately prior to such replacement was assigned from Wells Fargo Bank, National Association [as successor to Wachovia Bank, National Association] to PNC Bank, National Association, as administrative agent) with a new, three-year, $200.0 million accounts receivable securitization facility (the “New Facility”). The New Facility was entered into pursuant to (1) a second amended and restated receivables sale agreement, dated as of May 9, 2014 (the “Sale Agreement”), among certain of our subsidiaries (the “Originators”), and RPM Funding Corporation, a special purpose entity (the “SPE”) whose voting interests are wholly owned by us, and (2) an amended and restated receivables purchase agreement, dated as of May 9, 2014 (the “Purchase Agreement”), among the SPE, certain purchasers from time to time party thereto (the “Purchasers”), and PNC Bank, National Association as administrative agent. | |||||||||
Under the Sale Agreement, the Originators may, during the term thereof, sell specified accounts receivable to the SPE, which may in turn, pursuant to the Purchase Agreement, transfer an undivided interest in such accounts receivable to the Purchasers. Once transferred to the SPE, such receivables are owned in their entirety by the SPE and are not available to satisfy claims of our creditors or creditors of the originating subsidiaries until the obligations owing to the participating banks have been paid in full. We indirectly hold a 100% economic interest in the SPE and will, along with our subsidiaries, receive the economic benefit of the New Facility. The transactions contemplated by the New Facility do not constitute a form of off-balance sheet financing, and will be fully reflected in our financial statements. | |||||||||
The maximum availability under the New Facility is $200.0 million. Availability is further subject to changes in the credit ratings of the Originator’s customers, customer concentration levels or certain characteristics of the accounts receivable being transferred and therefore at certain times we may not be able to fully access the $200.0 million of funding available under the New Facility. The interest rate under the Purchase Agreement is based on the Alternate Base Rate, LIBOR Market Index Rate, one-month LIBOR or LIBOR for a specified tranche period, as selected by the SPE, at its option, plus in each case, a margin of 0.70%. In addition, as set forth in an Amended and Restated Fee Letter, dated May 9, 2014 (the “Fee Letter”), the SPE is obligated to pay a monthly unused commitment fee to the Purchasers based on the daily amount of unused commitments under the Agreement which fee ranges from 0.30% to 0.50% based on usage. | |||||||||
The New Facility contains various customary affirmative and negative covenants and also contains customary default and termination provisions, which provide for acceleration of amounts owed under the New Facility upon the occurrence of certain specified events, including, but not limited to, failure by the SPE to pay interest and other amounts due, defaults on certain indebtedness, certain judgments, change in control, certain events negatively affecting the overall credit quality of transferred accounts receivable, bankruptcy and insolvency events, and failure by us to meet financial tests requiring maintenance of an interest coverage ratio, if applicable. If we do not maintain an investment grade public debt rating with at least two specified rating agencies, we must comply with the interest coverage ratio which requires us not to permit the ratio, calculated at the end of each fiscal quarter for the four fiscal quarters then ended, of EBITDA, as defined in the New Facility, for such period to interest expense for such period, to be less than 3.5:1. This financial test, to the extent applicable, is substantively identical to a similar covenant already contained in our revolving credit facility. There were no outstanding borrowings under the New Facility as of May 31, 2014. | |||||||||
Our failure to comply with the covenants described above and other covenants contained in the Credit Facility could result in an event of default under that agreement, entitling the lenders to, among other things, declare the entire amount outstanding under the Credit Facility to be due and payable. The instruments governing our other outstanding indebtedness generally include cross-default provisions that provide that under certain circumstances, an event of default that results in acceleration of our indebtedness under the Credit Facility will entitle the holders of such other indebtedness to declare amounts outstanding immediately due and payable. | |||||||||
We are exposed to market risk associated with interest rates. We do not use financial derivative instruments for trading purposes, nor do we engage in foreign currency, commodity or interest rate speculation. Concurrent with the issuance of our 6.7% Senior Unsecured Notes, RPM United Kingdom G.P. entered into a cross currency swap, which fixed the interest and principal payments in euros for the life of the 6.7% Senior Unsecured Notes and resulted in an effective euro fixed rate borrowing of 5.31%. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
31-May-14 | |||||||||||||
Income Taxes | ' | ||||||||||||
NOTE G — INCOME TAXES | |||||||||||||
The provision for income taxes is calculated in accordance with ASC 740, which requires the recognition of deferred income taxes using the liability method. | |||||||||||||
Income (loss) before income taxes as shown in the Consolidated Statements of Income is summarized below for the periods indicated. Certain foreign operations are branches of RPM International Inc.’s subsidiaries and are therefore subject to income taxes in both the United States and the respective foreign jurisdictions. Accordingly, the provision (benefit) for income taxes by jurisdiction and the income (loss) before income taxes by jurisdiction may not be directly related. | |||||||||||||
Year Ended May 31, | 2014 | 2013 | 2012 | ||||||||||
(In thousands) | |||||||||||||
United States | $ | 209,626 | $ | 5,104 | $ | 187,687 | |||||||
Foreign | 214,861 | 171,787 | 140,602 | ||||||||||
Income Before Income Taxes | $ | 424,487 | $ | 176,891 | $ | 328,289 | |||||||
Provision (benefit) for income taxes consists of the following for the periods indicated: | |||||||||||||
Year Ended May 31, | 2014 | 2013 | 2012 | ||||||||||
(In thousands) | |||||||||||||
Current: | |||||||||||||
U.S. Federal | $ | 46,846 | $ | 56,590 | $ | 45,547 | |||||||
State and local | 5,660 | 6,694 | 6,836 | ||||||||||
Foreign | 59,425 | 44,747 | 49,231 | ||||||||||
Total Current | 111,931 | 108,031 | 101,614 | ||||||||||
Deferred: | |||||||||||||
U.S. Federal | 16,747 | (31,987 | ) | (787 | ) | ||||||||
State and local | 1,292 | (3,649 | ) | (572 | ) | ||||||||
Foreign | (11,467 | ) | (5,355 | ) | (5,729 | ) | |||||||
Total Deferred | 6,572 | (40,991 | ) | (7,088 | ) | ||||||||
Provision for Income Taxes | $ | 118,503 | $ | 67,040 | $ | 94,526 | |||||||
The significant components of deferred income tax assets and liabilities as of May 31, 2014 and 2013 were as follows: | |||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Deferred income tax assets related to: | |||||||||||||
Inventories | $ | 6,944 | $ | 6,795 | |||||||||
Allowance for losses | 6,410 | 7,584 | |||||||||||
Accrued compensation and benefits | 102,579 | 113,394 | |||||||||||
Accrued other expenses | 10,256 | 16,322 | |||||||||||
Other long-term liabilities | 19,646 | 29,954 | |||||||||||
Net operating loss and credit carryforwards | 71,534 | 70,208 | |||||||||||
Net unrealized loss on securities | 19,185 | 21,727 | |||||||||||
Total Deferred Income Tax Assets | 236,554 | 265,984 | |||||||||||
Less: valuation allowances | (85,719 | ) | (89,909 | ) | |||||||||
Net Deferred Income Tax Assets | 150,835 | 176,075 | |||||||||||
Deferred income tax (liabilities) related to: | |||||||||||||
Depreciation | (47,639 | ) | (48,491 | ) | |||||||||
Pension and other postretirement benefits | (7,867 | ) | (12,204 | ) | |||||||||
Amortization of intangibles | (115,166 | ) | (125,042 | ) | |||||||||
Total Deferred Income Tax (Liabilities) | (170,672 | ) | (185,737 | ) | |||||||||
Deferred Income Tax Assets (Liabilities), Net | $ | (19,837 | ) | $ | (9,662 | ) | |||||||
At May 31, 2014, we had U.S. federal foreign tax credit carryforwards of approximately $9.7 million, which expire in 2021. Additionally, at May 31, 2014, we had approximately $37.6 million of state net operating loss carryforwards that expire at various dates beginning in 2015 and foreign net operating loss carryforwards of approximately $182.9 million, of which approximately $35.4 million will expire at various dates beginning in 2015 and approximately $147.5 million that have an indefinite carryforward period. Also, as of May 31, 2014, we had foreign capital loss carryforwards of approximately $19.2 million that can be carried forward indefinitely. These net operating loss, capital loss and foreign tax credit carryforwards may be used to offset a portion of future taxable income and, thereby, reduce or eliminate our U.S. federal, state or foreign income taxes otherwise payable. | |||||||||||||
When evaluating the realizability of deferred income tax assets, we consider, among other items, whether a jurisdiction has experienced cumulative pretax losses and whether a jurisdiction will generate the appropriate character of income to recognize a deferred income tax asset. More specifically, if a jurisdiction experiences cumulative pretax losses for a period of three years, including the current fiscal year, or if a jurisdiction does not have sufficient income of the appropriate character in the relevant carryback or projected carryforward periods, we generally conclude that it is more likely than not that the respective deferred tax asset will not be realized unless factors such as expected operational changes, availability of prudent and feasible tax planning strategies, reversal of taxable temporary differences or other information exists that would lead us to conclude otherwise. If, after we have evaluated these factors, the deferred income tax assets are not expected to be realized within the carryforward or carryback periods allowed for that jurisdiction, we would conclude that a valuation allowance is required. To the extent that the deferred income tax asset is expected to be utilized within the carryback or carryforward periods, we would conclude that a valuation allowance would not be required. | |||||||||||||
In applying the above, we determined, based on the available evidence, that future U.S. taxable income along with anticipated foreign source income, will be sufficient to recognize certain deferred tax assets, which were previously subject to valuation allowances. As a result, during this fiscal year, we recorded a reduction in valuation allowances associated with the estimated utilization of foreign tax credit carryforwards of approximately $4.7 million. This reduction was partially offset by approximately $0.5 million of other incremental adjustments to the valuation allowances. Further, we believe it is uncertain whether future taxable income of certain of our foreign subsidiaries, future taxable income of the appropriate character and anticipated foreign source income, will be sufficient to recognize the remaining corresponding deferred tax assets. Accordingly, we intend to maintain the recorded valuation allowances until sufficient positive evidence exists to support a reversal of the tax valuation allowances. | |||||||||||||
Total valuation allowances of approximately $85.7 million and $89.9 million have been recorded as of May 31, 2014 and 2013, respectively. The recorded valuation allowances relate to U.S. federal foreign tax credit carryforwards, foreign capital loss carryforwards, certain foreign net operating losses, net foreign deferred tax assets and unrealized losses on securities. | |||||||||||||
The following table reconciles income tax expense (benefit) computed by applying the U.S. statutory federal income tax rate against income (loss) before income taxes to the provision (benefit) for income taxes: | |||||||||||||
Year Ended May 31, | 2014 | 2013 | 2012 | ||||||||||
(In thousands) | |||||||||||||
Income tax expense (benefit) at the U.S. statutory federal income tax rate | $ | 148,570 | $ | 61,912 | $ | 114,901 | |||||||
Impact of foreign operations | (24,874 | ) | (11,552 | ) | (32,192 | ) | |||||||
State and local income taxes net of federal income tax benefit | 4,519 | 1,979 | 4,073 | ||||||||||
Tax benefits from the domestic manufacturing deduction | (4,878 | ) | (4,489 | ) | (3,744 | ) | |||||||
Nondeductible fines and penalties | (2,002 | ) | 4,802 | — | |||||||||
Nondeductible business expense | 1,508 | 1,269 | 1,304 | ||||||||||
Valuation allowance | (2,998 | ) | 14,729 | 9,353 | |||||||||
Other | (1,342 | ) | (1,610 | ) | 831 | ||||||||
Provision for Income Tax Expense | $ | 118,503 | $ | 67,040 | $ | 94,526 | |||||||
Effective Income Tax Rate | 27.9 | % | 37.9 | % | 28.8 | % | |||||||
Uncertain income tax positions are accounted for in accordance with ASC 740. The following table summarizes the activity related to unrecognized tax benefits: | |||||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||
Balance at June 1 | $ | 8.4 | $ | 3.3 | $ | 6.4 | |||||||
Additions based on tax positions related to current year | 0.1 | — | — | ||||||||||
Additions for tax positions of prior years | 8.9 | 6 | 0.5 | ||||||||||
Reductions for tax positions of prior years | (1.7 | ) | (0.9 | ) | (0.4 | ) | |||||||
Settlements | — | — | (3.2 | ) | |||||||||
Balance at May 31 | $ | 15.7 | $ | 8.4 | $ | 3.3 | |||||||
The line item titled, “Additions for tax positions of prior years,” in the table above reflects our estimate of the impact of the Canadian law change, Canada Bill C-48, Technical Tax Amendments Act, 2012, which was effective June 26, 2013. | |||||||||||||
The total amount of unrecognized tax benefits that would impact the effective tax rate, if recognized, was $15.0 million at May 31, 2014, $7.5 million at May 31, 2013 and $2.4 million at May 31, 2012. We do not anticipate any significant changes to the above total unrecognized tax benefits within the next 12 months. | |||||||||||||
We recognize interest and penalties related to unrecognized tax benefits in income tax expense. At May 31, 2014, 2013 and 2012, the accrual for interest and penalties was $5.2 million, $5.2 million and $1.5 million, respectively. Unrecognized tax benefits, including interest and penalties, have been classified as other long-term liabilities unless expected to be paid in one year. | |||||||||||||
We, or our subsidiaries, file income tax returns in the U.S. and in various state, local and foreign jurisdictions. 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 2008 through 2014. | |||||||||||||
During the current fiscal year, we settled a U.S. federal examination of fiscal year 2011 and were notified by the Internal Revenue Service that they will perform limited scope examinations of fiscal years 2012 and 2013. | |||||||||||||
We are currently under examination, or have been notified of an upcoming tax examination for various non-U.S. and domestic state and local jurisdictions. Although it is possible that certain tax examinations could be resolved during the next 12 months, the timing and outcomes are uncertain. | |||||||||||||
We include SPHC and its domestic subsidiaries (collectively, the “SPHC Group”) in our consolidated federal income tax return. We entered into a tax-cooperation agreement (the “Agreement”) with the SPHC Group, effective from June 1, 2010. Generally, the Agreement provides, amongst other items, that the federal income taxes of the SPHC Group are to be computed on a stand-alone separate return basis. The current portion of such income tax payable, if any, is due from the SPHC Group to us. Conversely, subject to the terms of the Agreement, income tax benefits associated with net operating loss or tax credit carryovers generated by the SPHC Group, if any, for the taxable year that benefits our consolidated income tax return for that taxable year are payable by us to the SPHC Group. Additionally, pursuant to the terms of the Agreement, a similar approach is applied to consolidated, combined or unitary state tax returns. |
Common_Stock
Common Stock | 12 Months Ended |
31-May-14 | |
Common Stock | ' |
NOTE H — COMMON STOCK | |
On April 21, 2009, our board of directors adopted a Stockholder Rights Plan to replace the rights plan that was originally adopted in 1999 and expired in May 2009. The plan is substantively similar to its predecessor. Under the new plan, our board declared a dividend distribution of one right for each outstanding share of our common stock, payable May 11, 2009. The rights initially trade together with shares of our common stock and will not be exercisable. The rights generally will become exercisable and allow the holder to acquire shares of our common stock at a discounted price if a person or group acquires 15% or more of our outstanding shares. Rights held by persons who exceed the applicable threshold will be void. Under certain circumstances, the rights will entitle the holder to buy shares in an acquiring entity at a discounted price. Our board may, at its option, redeem all rights for $0.001 per right, generally at any time prior to the rights becoming exercisable. The rights will expire May 11, 2019, unless earlier redeemed, exchanged or amended by the board. The plan specifically provides that our board will review the status of the plan before its fifth anniversary to determine if any such action should be taken, which it did. | |
On January 8, 2008, we announced our authorization of a stock repurchase program under which we may repurchase shares of our common stock at our discretion for general corporate purposes. Our intention with regard to this program 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 we deem appropriate, subject to insider trading rules and other securities law restrictions. The timing of our purchases has depended upon, and will continue to depend upon, prevailing market conditions, alternative uses of capital and other factors. We may limit or terminate the repurchase program at any time. During the fiscal years ended May 31, 2014 and 2013, we did not repurchase any shares of our common stock under this program. During the fiscal year ended May 31, 2012, we repurchased 164,773 shares of our common stock at a cost of approximately $3.0 million, or an average cost of $18.25 per share, under this program. |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||||||||
31-May-14 | |||||||||||||
Stock-Based Compensation | ' | ||||||||||||
NOTE I — STOCK-BASED COMPENSATION | |||||||||||||
Stock-based compensation represents the cost related to stock-based awards granted to our employees and directors; these awards include restricted stock, restricted stock units and SARs. We grant stock-based incentive awards to our employees and/or our directors under various share-based compensation plans. Plans that provide for stock option grants or share-based payment awards include the 1996 Key Employees Stock Option Plan (the “1996 Plan”) and the Amended and Restated 2004 Omnibus Equity and Incentive Plan (the “Omnibus Plan”), which includes provisions for grants of restricted stock, restricted stock units, performance stock, performance stock units and SARs. Other plans, which provide for restricted stock grants only, include the 2003 Restricted Stock Plan for Directors (the “2003 Plan”) and the 2007 Restricted Stock Plan (the “2007 Plan”). | |||||||||||||
We measure stock-based compensation cost at the date of grant, based on the estimated fair value of the award. We recognize the cost as expense on a straight-line basis (net of estimated forfeitures) over the related vesting period. | |||||||||||||
The following table represents total stock-based compensation expense included in our Consolidated Statements of Income: | |||||||||||||
Year Ended May 31, | 2014 | 2013 | 2012 | ||||||||||
(In thousands) | |||||||||||||
Selling, general and administrative expense | $ | 23,568 | $ | 17,145 | $ | 13,904 | |||||||
Income tax (benefit) | (7,776 | ) | (5,627 | ) | (4,921 | ) | |||||||
Total stock-based compensation cost | $ | 15,792 | $ | 11,518 | $ | 8,983 | |||||||
Stock Option Plans | |||||||||||||
Stock options are awards that allow our employees to purchase shares of our common stock at a fixed price. We grant stock options at an exercise price equal to the stock price on the date of the grant. The fair value of SARs granted is estimated as of the date of grant using a Black-Scholes option-pricing model. The Black-Scholes option pricing model was developed for use in estimating the fair value of traded options that have no vesting restrictions and are fully transferable. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The expected life of options granted is derived from the input of the option-pricing model and represents the period of time that options granted are expected to be outstanding. Expected volatility rates are based on historical volatility of shares of our common stock. | |||||||||||||
The following is a summary of our weighted-average assumptions related to grants made during the last three fiscal years: | |||||||||||||
Year Ended May 31, | 2014 | 2013 | 2012 | ||||||||||
Risk-free interest rate | 2.2 | % | 1.1 | % | 2.5 | % | |||||||
Expected life of option | 7.5 yrs | 7.5 yrs | 7.5 yrs | ||||||||||
Expected dividend yield | 2.7 | % | 3.3 | % | 3.8 | % | |||||||
Expected volatility rate | 26.1 | % | 28.2 | % | 29.5 | % | |||||||
Compensation cost for awards under the 1996 Plan is recognized on a straight-line basis over the related vesting period. Shares of common stock under option are not eligible for dividend payments until the shares are exercised. | |||||||||||||
The Omnibus Plan was approved by our stockholders on October 8, 2004, and is intended to be the primary stock-based award program for covered employees. A wide variety of stock and stock-based awards, as well as dollar-denominated performance-based awards, may be granted under the Omnibus Plan. SARs are issued at fair value at the date of grant, have up to ten-year terms and have graded-vesting terms over four years. Compensation cost for these awards is recognized on a straight-line basis over the related vesting period. Currently all SARs outstanding are to be settled with stock. As of May 31, 2014, there were 3,159,500 SARs outstanding and 59,450 stock options outstanding. | |||||||||||||
The following table summarizes option and share-based payment activity (including SARs) under these plans during the fiscal year ended May 31, 2014: | |||||||||||||
2014 | |||||||||||||
Share-Based Payments | Weighted | Number of | |||||||||||
Average | Shares Under | ||||||||||||
Exercise Price | Option | ||||||||||||
(Shares in thousands) | |||||||||||||
Balance at June 1 | $ | 20.54 | 3,502 | ||||||||||
Options granted | 33.8 | 540 | |||||||||||
Options canceled/expired | 23.29 | (47 | ) | ||||||||||
Options exercised | 18.63 | (776 | ) | ||||||||||
Balance at May 31 | 23.18 | 3,219 | |||||||||||
Exercisable at May 31 | $ | 20.04 | 1,806 | ||||||||||
Stock Option Plans | 2014 | 2013 | 2012 | ||||||||||
(In millions, except per share amounts) | |||||||||||||
Weighted-average grant-date fair value per share | $ | 7.38 | $ | 4.96 | $ | 4.69 | |||||||
Intrinsic value of options exercised | $ | 15.6 | $ | 9.8 | $ | 7 | |||||||
Tax benefit from options exercised | $ | 5.2 | $ | 3.5 | $ | 1.4 | |||||||
Fair value of SARS vested | $ | 2 | $ | 1.9 | $ | 2 | |||||||
At May 31, 2014, the aggregate intrinsic value and weighted-average remaining contractual life of options outstanding was $64.0 million and 6.1 years respectively, while the aggregate intrinsic value and weighted-average remaining contractual life of options exercisable was $41.6 million and 4.9 years, respectively. | |||||||||||||
At May 31, 2014, the total unamortized stock-based compensation expense related to SARs that were previously granted was $5.3 million, which is expected to be recognized over 3.25 years. We anticipate that approximately 1.4 million shares at a weighted-average exercise price of $27.20 and a weighted-average remaining contractual term of 7.7 years will ultimately vest under these plans. | |||||||||||||
Restricted Stock Plans | |||||||||||||
We also grant stock-based awards, which may be made in the form of restricted stock, restricted stock units, performance stock and performance stock units. These awards are granted to eligible employees or directors, and entitle the holder to shares of our common stock as the award vests. The fair value of the awards is determined and fixed based on the stock price at the date of grant. A description of our restricted stock plans follows. | |||||||||||||
Under the Omnibus Plan, a total of 12,000,000 shares of our common stock may be subject to awards. Of the 12,000,000 shares of common stock issuable under the Omnibus Plan, up to 6,000,000 shares may be subject to “full-value” awards such as restricted stock, restricted stock unit, performance stock and performance stock unit awards. | |||||||||||||
The following table summarizes the share-based performance-earned restricted stock (“PERS”) activity during the fiscal year ended May 31, 2014: | |||||||||||||
Weighted-Average | 2014 | ||||||||||||
Grant-Date | |||||||||||||
Fair Value | |||||||||||||
(Shares in thousands) | |||||||||||||
Balance at June 1 | $ | 22.31 | 1,454 | ||||||||||
Shares granted | 35.11 | 507 | |||||||||||
Shares forfeited | 24.42 | (27 | ) | ||||||||||
Shares vested | 19.3 | (520 | ) | ||||||||||
Balance at May 31 | $ | 27.96 | 1,414 | ||||||||||
The weighted-average grant-date fair value was $35.11, $26.22 and $21.49 for the fiscal years ended May 31, 2014, 2013 and 2012, respectively. The restricted stock cliff vests after three years. Nonvested restricted shares of common stock under the Omnibus Plan are eligible for dividend payments. At May 31, 2014, unamortized deferred compensation expense of $17.5 million remained and is being amortized over the applicable vesting period for each participant. | |||||||||||||
On October 7, 2010, our Compensation Committee approved contingent awards of PCRS, (the “2011 PCRS”), for certain executives. During October 2010, 680,000 shares were granted at a weighted-average grant-date price of $20.73. Additional grants were made in July 2011, June 2012 and July 2012, totaling 115,000 shares, 10,000 shares and 50,000 shares, respectively, and were granted at a weighted-average grant-date price of $22.16, $25.76 and $25.87, respectively. The awards are contingent upon the level of attainment of performance goals for the three-year and five-year periods from June 1, 2010 ending May 31, 2013, and from June 1, 2010 ending May 31, 2015, respectively. At May 31, 2014, we expect that up to 596,250 shares of stock may ultimately vest in relation to these awards. Compensation cost for these awards will be recognized on a straight-line basis over the related performance period, with consideration given to the probability of attaining the performance goals. As of May 31, 2014, there were 795,000 2011 PCRS shares outstanding and $3.0 million in total unamortized stock-based compensation expense. At May 31, 2014, approximately 392,500 shares have been earned, but not vested. | |||||||||||||
The 2003 Plan was approved on October 10, 2003 by our stockholders, and was established primarily for the purpose of recruiting and retaining directors, and to align the interests of directors with the interests of our stockholders. Only directors who are not our employees are eligible to participate. Under the 2003 Plan, up to 500,000 shares of our common stock may be awarded, with awards cliff vesting over a three-year period. The following table summarizes the share-based activity under the 2003 Plan during fiscal 2014: | |||||||||||||
Weighted-Average | 2014 | ||||||||||||
Grant-Date | |||||||||||||
Fair Value | |||||||||||||
(Shares in thousands) | |||||||||||||
Balance at June 1 | $ | 22.5 | 113 | ||||||||||
Shares granted to Directors | 36.63 | 30 | |||||||||||
Shares vested | 21.13 | (45 | ) | ||||||||||
Balance at May 31 | $ | 27.48 | 98 | ||||||||||
The weighted-average grant-date fair value was $36.63, $26.63 and $20.60 for the fiscal years ended May 31, 2014, 2013 and 2012, respectively. Unamortized deferred compensation expense relating to restricted stock grants for directors of $1.3 million at May 31, 2014, is being amortized over the applicable remaining vesting period for each director. Nonvested restricted shares of common stock under the 2003 Plan are eligible for dividend payments. As of May 31, 2014, there were 162,750 shares available for future grant. | |||||||||||||
Under the 2007 Plan, up to 1,000,000 shares may be awarded to certain employees, generally subject to forfeiture. The shares vest upon the latter of attainment of age 55 and the fifth anniversary of the May 31st immediately preceding the date of the grant. In addition, we also grant restricted stock units to certain employees under this plan. The following table sets forth awards and restricted stock units issued under the 2007 Plan for the year ended May 31, 2014: | |||||||||||||
Weighted-Average | 2014 | ||||||||||||
Grant-Date | |||||||||||||
Fair Value | |||||||||||||
(Shares in thousands) | |||||||||||||
Balance at June 1 | $ | 17.94 | 815 | ||||||||||
Shares granted | 33.8 | 76 | |||||||||||
Shares forfeited | 19.78 | (20 | ) | ||||||||||
Shares vested | 18.96 | (14 | ) | ||||||||||
Balance at May 31 | $ | 19.27 | 857 | ||||||||||
The weighted-average grant-date fair value was $33.80, $25.87 and $22.16 for the fiscal years ended May 31, 2014, 2013 and 2012, respectively. As of May 31, 2014, 159,183 shares were available for future issuance under the 2007 Plan. At May 31, 2014, unamortized stock-based compensation expense of $5.0 million, $0.1 million and $1.0 million relating to the 2007 Plan, the 1997 Plan and the Restricted Stock Units, respectively, which are being amortized over the applicable vesting period associated with each participant. | |||||||||||||
The following table summarizes the activity for all nonvested restricted shares during the year ended May 31, 2014: | |||||||||||||
Weighted-Average | Number of | ||||||||||||
Grant-Date Fair | Shares | ||||||||||||
Value | |||||||||||||
(Shares in thousands) | |||||||||||||
Balance at June 1 | $ | 20.94 | 3,236 | ||||||||||
Granted | 35.02 | 613 | |||||||||||
Vested | 18.71 | (682 | ) | ||||||||||
Forfeited | 21.49 | (107 | ) | ||||||||||
Balance at May 31 | $ | 24.24 | 3,060 | ||||||||||
The remaining weighted-average contractual term of nonvested restricted shares at May 31, 2014 is the same as the period over which the remaining cost of the awards will be recognized, which is approximately 3.2 years. The fair value of the nonvested restricted share awards have been calculated using the market value of the shares on the date of issuance. For the years ended May 31, 2014, 2013 and 2012, the weighted-average grant-date fair value for restricted share grants was $35.02, $26.16 and $21.62, respectively. The total fair value of shares that vested during the years ended May 31, 2014, 2013 and 2012 was $12.8 million, $3.3 million and $7.0 million, respectively. We anticipate that approximately 2.6 million shares at a weighted-average grant-date fair value of $24.24 and a weighted-average remaining contractual term of 3.4 years will ultimately vest, based upon the unique terms and participants of each plan. Approximately 56,291 shares of restricted stock were vested at June 1, 2013, with 121,733 restricted shares vested as of May 31, 2014. The total intrinsic value of restricted shares converted during the years ended May 31, 2014, 2013 and 2012 was $10.4 million, $1.3 million and $3.1 million, respectively. | |||||||||||||
Total unrecognized compensation cost related to all nonvested awards of restricted shares of common stock was $27.7 million as of May 31, 2014. That cost is expected to be recognized over a weighted-average period of 3.4 years. We did not receive any cash from employees as a result of employee vesting and release of restricted shares for the year ended May 31, 2014. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended | ||||||||||||||||||||
31-May-14 | |||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||||||||
NOTE J — ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||||
Accumulated other comprehensive income (loss) consists of the following components: | |||||||||||||||||||||
(In thousands) | Foreign | Pension And | Unrealized | Unrealized | Total | ||||||||||||||||
Currency | Other | Gain | Gain (Loss) | ||||||||||||||||||
Translation | Postretirement | (Loss) On | On | ||||||||||||||||||
Adjustments | Benefit | Derivatives, | Securities, | ||||||||||||||||||
Liability | Net of Tax | Net of Tax | |||||||||||||||||||
Adjustments, | |||||||||||||||||||||
Net of Tax | |||||||||||||||||||||
Balance at June 1, 2011 | $ | 81,346 | $ | (96,705 | ) | $ | 5,267 | $ | 16,165 | $ | 6,073 | ||||||||||
Reclassification adjustments for gains included in net income, net of tax benefit of $844 | 1,043 | 1,043 | |||||||||||||||||||
Other comprehensive income (loss) | (89,863 | ) | (119,189 | ) | (5,512 | ) | (21,010 | ) | (235,574 | ) | |||||||||||
Deferred taxes | 41,720 | 1,445 | 7,400 | 50,565 | |||||||||||||||||
Balance at May 31, 2012 | (8,517 | ) | (174,174 | ) | 1,200 | 3,598 | (177,893 | ) | |||||||||||||
Reclassification adjustments for gains included in net income, net of tax benefit of $633 | (1,953 | ) | (1,953 | ) | |||||||||||||||||
Other comprehensive income | (15,911 | ) | 48,100 | 14 | 7,860 | 40,063 | |||||||||||||||
Deferred taxes | (17,481 | ) | (18 | ) | (1,971 | ) | (19,470 | ) | |||||||||||||
Balance at May 31, 2013 | (24,428 | ) | (143,555 | ) | 1,196 | 7,534 | (159,253 | ) | |||||||||||||
Reclassification adjustments for gains included in net income, net of tax benefit of $586 | 1,220 | 1,220 | |||||||||||||||||||
Other comprehensive income | 9,533 | (16,418 | ) | (1,215 | ) | 4,275 | (3,825 | ) | |||||||||||||
Deferred taxes | 6,325 | 304 | (1,653 | ) | 4,976 | ||||||||||||||||
Balance at May 31, 2014 | $ | (14,895 | ) | $ | (153,648 | ) | $ | 285 | $ | 11,376 | $ | (156,882 | ) | ||||||||
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||
31-May-14 | |||||||||||||
Earnings Per Share | ' | ||||||||||||
NOTE K — 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 years ended May 31, 2014, 2013 and 2012: | |||||||||||||
Year Ended May 31, | 2014 | 2013 | 2012 | ||||||||||
(In thousands, except per share amounts) | |||||||||||||
Numerator for earnings per share: | |||||||||||||
Net income attributable to RPM International Inc. stockholders | $ | 291,660 | $ | 98,603 | $ | 215,936 | |||||||
Less: Allocation of earnings and dividends to participating securities | (6,366 | ) | (1,999 | ) | (4,024 | ) | |||||||
Net income available to common shareholders - basic | 285,294 | 96,604 | 211,912 | ||||||||||
Add: Undistributed earnings reallocated to unvested shareholders | 29 | (3 | ) | 9 | |||||||||
Add: Income effect of contingently issuable shares | 2,493 | — | |||||||||||
Net income available to common shareholders - diluted | $ | 287,816 | $ | 96,601 | $ | 211,921 | |||||||
Denominator for basic and diluted earnings per share: | |||||||||||||
Basic weighted average common shares | 129,438 | 128,956 | 128,130 | ||||||||||
Average diluted options | 1,003 | 845 | 587 | ||||||||||
Net issuable common share equivalents (1) | 1,847 | — | |||||||||||
Total shares for diluted earnings per share | 132,288 | 129,801 | 128,717 | ||||||||||
Earnings Per Share of Common Stock Attributable to RPM International Inc. Stockholders: | |||||||||||||
Basic Earnings Per Share of Common Stock | $ | 2.2 | $ | 0.75 | $ | 1.65 | |||||||
Diluted Earnings Per Share of Common Stock | $ | 2.18 | $ | 0.74 | $ | 1.65 | |||||||
-1 | For the year ended May 31, 2014, represents the number of shares that would be issued if our contingently convertible notes were converted. We include these shares in the calculation of diluted EPS as the conversion of the notes may be settled, at our election, in cash, shares of our common stock, or a combination of cash and shares of our common stock. | ||||||||||||
For the years ended May 31, 2014, 2013 and 2012, approximately 3,057,000, 3,095,000, and 2,625,000 shares of stock, respectively, granted under stock-based compensation plans were excluded from the calculation of diluted EPS, as the effect would have been anti-dilutive. |
Leases
Leases | 12 Months Ended | ||||
31-May-14 | |||||
Leases | ' | ||||
NOTE L — LEASES | |||||
We lease certain property, plant and equipment under long-term operating lease agreements, some of which provide for increased rental payments based upon increases in the cost-of-living index. The following table illustrates our future minimum lease commitments under all non-cancelable lease agreements, for each of the next five years and in the aggregate, as of May 31, 2014: | |||||
May 31, | |||||
(In thousands) | |||||
2015 | $ | 48,695 | |||
2016 | 39,054 | ||||
2017 | 28,971 | ||||
2018 | 21,459 | ||||
2019 | 15,405 | ||||
Thereafter | 68,280 | ||||
Total Minimum Lease Commitments | $ | 221,864 | |||
Total rental expense for all operating leases amounted to $50.9 million, $46.5 million and $40.6 million for the fiscal years ended May 31, 2014, 2013 and 2012, respectively. |
Pension_Plans
Pension Plans | 12 Months Ended | ||||||||||||||||||||||||
31-May-14 | |||||||||||||||||||||||||
Pension Plans | ' | ||||||||||||||||||||||||
NOTE M — PENSION PLANS | |||||||||||||||||||||||||
We sponsor several pension plans for our employees, including our principal plan (the “Retirement Plan”), which is a non-contributory defined benefit pension plan covering substantially all domestic non-union employees. Pension benefits are provided for certain domestic union employees through separate plans. Employees of our foreign subsidiaries receive pension coverage, to the extent deemed appropriate, through plans that are governed by local statutory requirements. | |||||||||||||||||||||||||
The Retirement Plan provides benefits that are based upon years of service and average compensation with accrued benefits vesting after five years. Benefits for union employees are generally based upon years of service, or a combination of years of service and average compensation. Our pension funding policy is to contribute an amount on an annual basis that can be deducted for federal income tax purposes, using a different actuarial cost method and different assumptions from those used for financial reporting. For the fiscal year ending May 31, 2015, we expect to contribute approximately $53.1 million to the retirement plans in the U.S. and approximately $6.3 million to our foreign plans. | |||||||||||||||||||||||||
Net periodic pension cost consisted of the following for the year ended May 31: | |||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Service cost | $ | 27,056 | $ | 25,950 | $ | 19,906 | $ | 4,375 | $ | 4,337 | $ | 3,731 | |||||||||||||
Interest cost | 18,039 | 16,240 | 15,307 | 7,382 | 7,246 | 8,076 | |||||||||||||||||||
Expected return on plan assets | (20,761 | ) | (17,431 | ) | (17,416 | ) | (8,411 | ) | (7,715 | ) | (7,867 | ) | |||||||||||||
Amortization of: | |||||||||||||||||||||||||
Prior service cost | 334 | 348 | 352 | 19 | 7 | 10 | |||||||||||||||||||
Net actuarial losses recognized | 13,222 | 16,888 | 8,510 | 2,448 | 2,771 | 2,169 | |||||||||||||||||||
Curtailment/settlement (gains) losses | — | 72 | — | 44 | 234 | — | |||||||||||||||||||
Net Pension Cost | $ | 37,890 | $ | 42,067 | $ | 26,659 | $ | 5,857 | $ | 6,880 | $ | 6,119 | |||||||||||||
The changes in benefit obligations and plan assets, as well as the funded status of our pension plans at May 31, 2014 and 2013, were as follows: | |||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Benefit obligation at beginning of year | $ | 402,686 | $ | 385,013 | $ | 185,993 | $ | 175,338 | |||||||||||||||||
Service cost | 27,056 | 25,950 | 4,375 | 4,337 | |||||||||||||||||||||
Interest cost | 18,039 | 16,240 | 7,382 | 7,246 | |||||||||||||||||||||
Benefits paid | (17,683 | ) | (16,503 | ) | (5,482 | ) | (8,761 | ) | |||||||||||||||||
Participant contributions | 831 | 929 | |||||||||||||||||||||||
Plan amendments | 384 | ||||||||||||||||||||||||
Actuarial (gains)/losses | 46,492 | (8,014 | ) | 6,348 | 9,820 | ||||||||||||||||||||
Settlements/Curtailments | (3,874 | ) | |||||||||||||||||||||||
Premiums paid | (138 | ) | (127 | ) | |||||||||||||||||||||
Currency exchange rate changes | 2,475 | 1,085 | |||||||||||||||||||||||
Benefit Obligation at End of Year | $ | 476,590 | $ | 402,686 | $ | 202,168 | $ | 185,993 | |||||||||||||||||
Fair value of plan assets at beginning of year | $ | 241,960 | $ | 198,208 | $ | 155,056 | $ | 137,318 | |||||||||||||||||
Actual return on plan assets | 30,547 | 35,708 | 17,432 | 15,859 | |||||||||||||||||||||
Employer contributions | 27,289 | 24,547 | 8,111 | 9,422 | |||||||||||||||||||||
Participant contributions | 831 | 929 | |||||||||||||||||||||||
Benefits paid | (17,683 | ) | (16,503 | ) | (5,482 | ) | (8,761 | ) | |||||||||||||||||
Premiums paid | (138 | ) | (127 | ) | |||||||||||||||||||||
Currency exchange rate changes | 1,269 | 416 | |||||||||||||||||||||||
Fair Value of Plan Assets at End of Year | $ | 282,113 | $ | 241,960 | $ | 177,079 | $ | 155,056 | |||||||||||||||||
(Deficit) of plan assets versus benefit obligations at end of year | $ | (194,477 | ) | $ | (160,726 | ) | $ | (25,089 | ) | $ | (30,937 | ) | |||||||||||||
Net Amount Recognized | $ | (194,477 | ) | $ | (160,726 | ) | $ | (25,089 | ) | $ | (30,937 | ) | |||||||||||||
Accumulated Benefit Obligation | $ | 385,492 | $ | 340,742 | $ | 188,835 | $ | 173,586 | |||||||||||||||||
The fair value of the assets held by our pension plans has increased at May 31, 2014 since our previous measurement date at May 31, 2013, due primarily to the combination of gains in the stock market and plan contributions. At the same time, plan liabilities have increased due to a decrease in interest rates. As such, we have increased our recorded liability for the net underfunded status of our pension plans. Due to lower interest rates, we expect pension expense in fiscal 2015 to be above our fiscal 2014 expense level. Any future declines in the value of our pension plan assets or increases in our plan liabilities could require us to further increase our recorded liability for the net underfunded status of our pension plans and could also require accelerated and higher cash contributions to our pension plans. | |||||||||||||||||||||||||
Amounts recognized in the Consolidated Balance Sheets for the years ended May 31, 2014 and 2013 are as follows: | |||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Noncurrent assets | $ | — | $ | — | $ | 227 | $ | — | |||||||||||||||||
Current liabilities | (15 | ) | (43 | ) | (458 | ) | (436 | ) | |||||||||||||||||
Noncurrent liabilities | (194,462 | ) | (160,683 | ) | (24,858 | ) | (30,501 | ) | |||||||||||||||||
Net Amount Recognized | $ | (194,477 | ) | $ | (160,726 | ) | $ | (25,089 | ) | $ | (30,937 | ) | |||||||||||||
The following table summarizes the relationship between our plans’ benefit obligations and assets: | |||||||||||||||||||||||||
U.S. Plans | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(In thousands) | Benefit | Plan Assets | Benefit | Plan Assets | |||||||||||||||||||||
Obligation | Obligation | ||||||||||||||||||||||||
Plans with projected benefit obligation in excess of plan assets | $ | 476,590 | $ | 282,113 | $ | 402,686 | $ | 241,960 | |||||||||||||||||
Plans with accumulated benefit obligation in excess of plan assets | 385,492 | 282,113 | 340,742 | 241,960 | |||||||||||||||||||||
Non-U.S. Plans | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(In thousands) | Benefit | Plan Assets | Benefit | Plan Assets | |||||||||||||||||||||
Obligation | Obligation | ||||||||||||||||||||||||
Plans with projected benefit obligation in excess of plan assets | $ | 105,327 | $ | 80,011 | $ | 185,993 | $ | 155,056 | |||||||||||||||||
Plans with accumulated benefit obligation in excess of plan assets | 103,734 | 80,011 | 94,423 | 70,642 | |||||||||||||||||||||
Plans with assets in excess of projected benefit obligations | 96,841 | 97,068 | |||||||||||||||||||||||
Plans with assets in excess of accumulated benefit obligations | 85,101 | 97,068 | 79,163 | 84,414 | |||||||||||||||||||||
The following table presents the pretax net actuarial loss, prior service (costs) and transition assets/(obligations) recognized in accumulated other comprehensive income (loss) not affecting retained earnings: | |||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Net actuarial loss | $ | (185,320 | ) | $ | (161,835 | ) | $ | (52,573 | ) | $ | (57,882 | ) | |||||||||||||
Prior service (costs) | (997 | ) | (1,331 | ) | (423 | ) | (51 | ) | |||||||||||||||||
Total recognized in accumulated other comprehensive income not affecting retained earnings | $ | (186,317 | ) | $ | (163,166 | ) | $ | (52,996 | ) | $ | (57,933 | ) | |||||||||||||
The following table includes the changes recognized in other comprehensive income: | |||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Changes in plan assets and benefit obligations recognized in other comprehensive income: | |||||||||||||||||||||||||
Prior service cost | $ | — | $ | — | $ | 384 | $ | — | |||||||||||||||||
Net loss (gain) arising during the year | 36,707 | (26,291 | ) | (2,673 | ) | (2,197 | ) | ||||||||||||||||||
Effect of exchange rates on amounts included in AOCI | (137 | ) | 300 | ||||||||||||||||||||||
Amounts recognized as a component of net periodic benefit cost: | |||||||||||||||||||||||||
Amortization or curtailment recognition of prior service credit (cost) | (334 | ) | (348 | ) | (19 | ) | (48 | ) | |||||||||||||||||
Amortization or settlement recognition of net gain (loss) | (13,222 | ) | (16,960 | ) | (2,492 | ) | (2,966 | ) | |||||||||||||||||
Total recognized in other comprehensive loss (income) | $ | 23,151 | $ | (43,599 | ) | $ | (4,937 | ) | $ | (4,911 | ) | ||||||||||||||
The following table presents the amounts in accumulated other comprehensive income (loss) as of May 31, 2014 that have not yet been recognized in net periodic pension cost, but will be recognized in our Consolidated Statements of Income during the fiscal year ending May 31, 2015: | |||||||||||||||||||||||||
(In thousands) | U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||
Net actuarial loss | $ | (13,413 | ) | $ | (1,947 | ) | |||||||||||||||||||
Prior service (costs) | $ | (294 | ) | $ | (41 | ) | |||||||||||||||||||
In measuring the projected benefit obligation and net periodic pension cost for our plans, we utilize actuarial valuations. These valuations include specific information pertaining to individual plan participants, such as salary, age and years of service, along with certain assumptions. The most significant assumptions applied include discount rates, expected return on plan assets and rate of compensation increases. We evaluate these assumptions, at a minimum, on an annual basis, and make required changes, as applicable. In developing our expected long-term rate of return on pension plan assets, we consider the current and expected target asset allocations of the pension portfolio, as well as historical returns and future expectations for returns on various categories of plan assets. Expected return on assets is determined by using the weighted-average return on asset classes based on expected return for the target asset allocations of the principal asset categories held by each plan. In determining expected return, we consider both historical performance and an estimate of future long-term rates of return. Actual experience is used to develop the assumption for compensation increases. | |||||||||||||||||||||||||
The following weighted-average assumptions were used to determine our year-end benefit obligations and net periodic pension cost under the plans: | |||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||||
Year-End Benefit Obligations | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Discount rate | 4.3 | % | 4.45 | % | 3.82 | % | 3.95 | % | |||||||||||||||||
Rate of compensation increase | 3.81 | % | 3.14 | % | 3.3 | % | 3.32 | % | |||||||||||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||||
Net Periodic Pension Cost | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Discount rate | 4.45 | % | 4.25 | % | 5.25 | % | 3.95 | % | 4.19 | % | 5.14 | % | |||||||||||||
Expected return on plan assets | 8.5 | % | 8.5 | % | 8.5 | % | 5.37 | % | 5.32 | % | 5.63 | % | |||||||||||||
Rate of compensation increase | 3.14 | % | 3.15 | % | 3.15 | % | 3.32 | % | 3.76 | % | 3.83 | % | |||||||||||||
The following tables illustrate the weighted-average actual and target allocation of plan assets: | |||||||||||||||||||||||||
U.S. Plans | |||||||||||||||||||||||||
Target Allocation | Actual Asset Allocation | ||||||||||||||||||||||||
as of May 31, | |||||||||||||||||||||||||
(Dollars in millions) | 2014 | 2014 | 2013 | ||||||||||||||||||||||
Equity securities | 55 | % | $ | 193.8 | $ | 146.2 | |||||||||||||||||||
Fixed income securities | 25 | % | 81.5 | 74.1 | |||||||||||||||||||||
Cash | 5.9 | 3.9 | |||||||||||||||||||||||
Other | 20 | % | 0.9 | 17.8 | |||||||||||||||||||||
Total assets | 100 | % | $ | 282.1 | $ | 242 | |||||||||||||||||||
Non-U.S. Plans | |||||||||||||||||||||||||
Target Allocation | Actual Asset Allocation | ||||||||||||||||||||||||
as of May 31, | |||||||||||||||||||||||||
(Dollars in millions) | 2014 | 2014 | 2013 | ||||||||||||||||||||||
Equity securities | 42 | % | $ | 84 | $ | 81.8 | |||||||||||||||||||
Fixed income securities | 51 | % | 63.9 | 46.7 | |||||||||||||||||||||
Cash | 1 | % | 0.5 | 0.2 | |||||||||||||||||||||
Property and other | 6 | % | 28.7 | 26.3 | |||||||||||||||||||||
Total assets | 100 | % | $ | 177.1 | $ | 155 | |||||||||||||||||||
The following tables present our pension plan assets as categorized using the fair value hierarchy at May 31, 2014 and 2013: | |||||||||||||||||||||||||
U.S. Plans | |||||||||||||||||||||||||
(In thousands) | Quoted Prices in | Significant | Significant | Fair Value at | |||||||||||||||||||||
Active Markets | Other | Unobservable | May 31, 2014 | ||||||||||||||||||||||
for Identical | Observable | Inputs (Level 3) | |||||||||||||||||||||||
Assets (Level 1) | Inputs (Level 2) | ||||||||||||||||||||||||
U.S. Treasury and other government | $ | — | $ | 11,203 | $ | — | $ | 11,203 | |||||||||||||||||
State and municipal bonds | 456 | 456 | |||||||||||||||||||||||
Foreign bonds | 1,264 | 1,264 | |||||||||||||||||||||||
Mortgage-backed securities | 7,255 | 7,255 | |||||||||||||||||||||||
Corporate bonds | 17,254 | 17,254 | |||||||||||||||||||||||
Stocks - large cap | 34,442 | 34,442 | |||||||||||||||||||||||
Stocks - mid cap | 18,183 | 18,183 | |||||||||||||||||||||||
Stocks - small cap | 12,145 | 12,145 | |||||||||||||||||||||||
Stocks - international | 2,525 | 2,525 | |||||||||||||||||||||||
Mutual funds - equity | 126,513 | 126,513 | |||||||||||||||||||||||
Mutual funds - fixed | 44,094 | 44,094 | |||||||||||||||||||||||
Cash and cash equivalents | 5,869 | 5,869 | |||||||||||||||||||||||
Limited partnerships | 910 | 910 | |||||||||||||||||||||||
Total | $ | 73,164 | $ | 208,039 | $ | 910 | $ | 282,113 | |||||||||||||||||
Non-U.S. Plans | |||||||||||||||||||||||||
(In thousands) | Quoted Prices in | Significant | Significant | Fair Value at | |||||||||||||||||||||
Active Markets | Other | Unobservable | May 31, 2014 | ||||||||||||||||||||||
for Identical | Observable | Inputs (Level 3) | |||||||||||||||||||||||
Assets (Level 1) | Inputs (Level 2) | ||||||||||||||||||||||||
Pooled equities | $ | — | $ | 82,534 | $ | — | $ | 82,534 | |||||||||||||||||
Pooled fixed income | 63,657 | 63,657 | |||||||||||||||||||||||
Foreign bonds | 210 | 210 | |||||||||||||||||||||||
Insurance contracts | 28,658 | 28,658 | |||||||||||||||||||||||
Mutual funds | 1,448 | 1,448 | |||||||||||||||||||||||
Cash and cash equivalents | 572 | 572 | |||||||||||||||||||||||
Total | $ | 572 | $ | 147,849 | $ | 28,658 | $ | 177,079 | |||||||||||||||||
U.S. Plans | |||||||||||||||||||||||||
(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 | $ | — | $ | 10,288 | $ | — | $ | 10,288 | |||||||||||||||||
State and municipal bonds | 455 | 455 | |||||||||||||||||||||||
Foreign bonds | 2,342 | 2,342 | |||||||||||||||||||||||
Mortgage-backed securities | 7,332 | 7,332 | |||||||||||||||||||||||
Corporate bonds | 14,550 | 14,550 | |||||||||||||||||||||||
Stocks - large cap | 26,443 | 26,443 | |||||||||||||||||||||||
Stocks - mid cap | 15,423 | 15,423 | |||||||||||||||||||||||
Stocks - small cap | 11,451 | 11,451 | |||||||||||||||||||||||
Stocks - international | 2,643 | 2,643 | |||||||||||||||||||||||
Mutual funds - equity | 90,260 | 90,260 | |||||||||||||||||||||||
Mutual funds - fixed | 39,080 | 39,080 | |||||||||||||||||||||||
Cash and cash equivalents | 3,848 | 3,848 | |||||||||||||||||||||||
Limited partnerships | 1,159 | 1,159 | |||||||||||||||||||||||
Common/collective trusts | 16,686 | 16,686 | |||||||||||||||||||||||
Total | $ | 59,808 | $ | 164,307 | $ | 17,845 | $ | 241,960 | |||||||||||||||||
Non-U.S. Plans | |||||||||||||||||||||||||
(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) | ||||||||||||||||||||||||
Pooled equities | $ | — | $ | 80,550 | $ | — | $ | 80,550 | |||||||||||||||||
Pooled fixed income | 46,428 | 46,428 | |||||||||||||||||||||||
Foreign bonds | 261 | 261 | |||||||||||||||||||||||
Insurance contracts | 26,313 | 26,313 | |||||||||||||||||||||||
Mutual funds | 1,289 | 1,289 | |||||||||||||||||||||||
Cash and cash equivalents | 215 | 215 | |||||||||||||||||||||||
Total | $ | 215 | $ | 128,528 | $ | 26,313 | $ | 155,056 | |||||||||||||||||
The following table includes the activity that occurred during the years ended May 31, 2014 and 2013 for our Level 3 assets: | |||||||||||||||||||||||||
Actual Return on Plan Assets For: | |||||||||||||||||||||||||
(In thousands) | Balance at | Assets Still Held | Assets Sold | Purchases, Sales and | Balance at | ||||||||||||||||||||
Beginning of Period | at Reporting Date | During Year | Settlements, net (1) | End of Period | |||||||||||||||||||||
Year ended May 31, 2014 | $ | 44,158 | 564 | 47 | (15,201 | ) | $ | 29,568 | |||||||||||||||||
Year ended May 31, 2013 | 43,569 | 1,283 | 924 | (1,618 | ) | 44,158 | |||||||||||||||||||
-1 | Includes the impact of exchange rate changes during the year. | ||||||||||||||||||||||||
The primary objective for the investments of the Retirement Plan is to provide for long-term growth of capital without undue exposure to risk. This objective is accomplished by utilizing a strategy of equities, fixed income securities and cash equivalents in a mix that is conducive to participation in a rising market, while allowing for adequate protection in a falling market. Our Investment Committee oversees the investment allocation process, which includes the selection and evaluation of investment managers, the determination of investment objectives and risk guidelines, and the monitoring of actual investment performance. In order to manage investment risk properly, Plan policy prohibits short selling, securities lending, financial futures, options and other specialized investments except for certain alternative investments specifically approved by the Investment Committee. The Investment Committee reviews, on a quarterly basis, reports of actual Plan investment performance provided by independent third parties, in addition to its review of the Plan investment policy on an annual basis. The investment objectives are similar for our plans outside of the U.S., subject to local regulations. In general, investments for all plans are managed by private investment managers, reporting to our Investment Committee on a regular basis. | |||||||||||||||||||||||||
The goals of the investment strategy for pension assets include: The total return of the funds shall, over an extended period of time, surpass an index composed of the Standard & Poor’s 500 Stock Index (equity), the Barclays Aggregate Bond Index (fixed income), and 30-day Treasury Bills (cash); weighted appropriately to match the asset allocation of the plans. The equity portion of the funds shall surpass the Standard & Poor’s 500 Stock Index over a full market cycle, while the fixed income portion shall surpass Barclays Aggregate Bond Index over a full market cycle. The purpose of the core fixed income fund is to increase return in the form of cash flow, provide a hedge against inflation and to reduce the volatility of the fund overall. Therefore, the primary objective of the core fixed income portion is to match the Barclays Aggregate Bond Index. The purpose of including opportunistic fixed income assets such as, but not limited to, global and high yield securities in the portfolio is to enhance the overall risk-return characteristics of the Fund. | |||||||||||||||||||||||||
In addition to the defined benefit pension plans discussed above, we also sponsor employee savings plans under Section 401(k) of the Internal Revenue Code, which cover most of our employees in the U.S. We record expense for defined contribution plans for any employer matching contributions made in conjunction with services rendered by employees. The majority of our plans provide for matching contributions made in conjunction with services rendered by employees. Matching contributions are invested in the same manner that the participants invest their own contributions. Matching contributions charged to income were $13.6 million, $13.1 million and $11.9 million for the years ending May 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||||
We expect to pay the following estimated pension benefit payments in the next five years (in millions): $30.8 in 2015; $32.0 in 2016; $34.7 in 2017; $36.5 in 2018; and $38.9 in 2019. In the five years thereafter (2020-2024) we expect to pay $226.1 million. |
Postretirement_Benefits
Postretirement Benefits | 12 Months Ended | ||||||||||||||||||||||||
31-May-14 | |||||||||||||||||||||||||
Postretirement Benefits | ' | ||||||||||||||||||||||||
NOTE N – POSTRETIREMENT BENEFITS | |||||||||||||||||||||||||
We sponsor several unfunded-health-care-benefit plans for certain of our retired employees as well as post-retirement life insurance for certain key employees. Eligibility for these benefits is based upon various requirements. The following table illustrates the effect on operations of these plans for the three years ended May 31, 2014: | |||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Service cost - Benefits earned during the period | $ | — | $ | — | $ | — | $ | 1,264 | $ | 1,185 | $ | 745 | |||||||||||||
Interest cost on the accumulated obligation | 297 | 349 | 416 | 1,225 | 1,188 | 968 | |||||||||||||||||||
Amortization of: | |||||||||||||||||||||||||
Prior service (credit) | (153 | ) | (86 | ) | (86 | ) | |||||||||||||||||||
Net actuarial (gains) losses | (144 | ) | 16 | (58 | ) | 516 | 470 | 72 | |||||||||||||||||
Net Periodic Postretirement Expense | $ | — | $ | 279 | $ | 272 | $ | 3,005 | $ | 2,843 | $ | 1,785 | |||||||||||||
The changes in benefit obligations of the plans at May 31, 2014 and 2013 were as follows: | |||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Accumulated postretirement benefit obligation at beginning of year | $ | 8,514 | $ | 9,677 | $ | 28,415 | $ | 24,517 | |||||||||||||||||
Service cost | — | 1,264 | 1,185 | ||||||||||||||||||||||
Interest cost | 297 | 349 | 1,225 | 1,188 | |||||||||||||||||||||
Benefit payments | (362 | ) | (572 | ) | (421 | ) | (441 | ) | |||||||||||||||||
Medicare subsidy received | 37 | 74 | |||||||||||||||||||||||
Plan amendments | (1,471 | ) | |||||||||||||||||||||||
Actuarial (gains) losses | (228 | ) | (1,014 | ) | (766 | ) | 1,988 | ||||||||||||||||||
Currency exchange rate changes | (1,462 | ) | (22 | ) | |||||||||||||||||||||
Accumulated and accrued postretirement benefit obligation at end of year | $ | 6,787 | $ | 8,514 | $ | 28,255 | $ | 28,415 | |||||||||||||||||
In determining the postretirement benefit amounts outlined above, measurement dates as of May 31 for each period were applied. | |||||||||||||||||||||||||
Amounts recognized in the Consolidated Balance Sheets for the years ended May 31, 2014 and 2013 are as follows: | |||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Current liabilities | $ | (410 | ) | $ | (642 | ) | $ | (522 | ) | $ | (486 | ) | |||||||||||||
Noncurrent liabilities | (6,377 | ) | (7,872 | ) | (27,733 | ) | (27,929 | ) | |||||||||||||||||
Net Amount Recognized | $ | (6,787 | ) | $ | (8,514 | ) | $ | (28,255 | ) | $ | (28,415 | ) | |||||||||||||
The following table presents the pretax net actuarial gain (loss) and prior service credits recognized in accumulated other comprehensive income (loss) not affecting retained earnings: | |||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Net actuarial gain (loss) | $ | 1,080 | $ | 996 | $ | (9,136 | ) | $ | (10,950 | ) | |||||||||||||||
Prior service credits | 1,834 | 516 | |||||||||||||||||||||||
Total recognized in accumulated other comprehensive income not affecting retained earnings | $ | 2,914 | $ | 1,512 | $ | (9,136 | ) | $ | (10,950 | ) | |||||||||||||||
The following table includes the changes recognized in other comprehensive income: | |||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Changes in plan assets and benefit obligations recognized in other comprehensive income: | |||||||||||||||||||||||||
Prior service cost | $ | (1,471 | ) | $ | — | $ | — | $ | — | ||||||||||||||||
Net loss (gain) arising during the year | (228 | ) | (1,014 | ) | (766 | ) | 1,988 | ||||||||||||||||||
Effect of exchange rates on amounts included in AOCI | (532 | ) | (9 | ) | |||||||||||||||||||||
Amounts recognized as a component of net periodic benefit cost: | |||||||||||||||||||||||||
Amortization or curtailment recognition of prior service credit (cost) | 153 | 86 | |||||||||||||||||||||||
Amortization or settlement recognition of net gain (loss) | 144 | (16 | ) | (516 | ) | (470 | ) | ||||||||||||||||||
Total recognized in other comprehensive loss (income) | $ | (1,402 | ) | $ | (944 | ) | $ | (1,814 | ) | $ | 1,509 | ||||||||||||||
The following weighted-average assumptions were used to determine our year-end benefit obligations and net periodic postretirement benefit costs under the plans: | |||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||||
Year-End Benefit Obligations | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Discount rate | 4 | % | 3.95 | % | 4.4 | % | 4.5 | % | |||||||||||||||||
Current healthcare cost trend rate | 12.28 | % | 7.54 | % | 6.31 | % | 6.43 | % | |||||||||||||||||
Ultimate healthcare cost trend rate | 4.5 | % | 4.5 | % | 4.2 | % | 4.2 | % | |||||||||||||||||
Year ultimate healthcare cost trend rate will be realized | 2029 | 2029 | 2030 | 2030 | |||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||||
Net Periodic Postretirement Cost | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Discount rate | 3.95 | % | 3.75 | % | 4.75 | % | 4.5 | % | 4.75 | % | 5.75 | % | |||||||||||||
Healthcare cost trend rate | 7.54 | % | 7.7 | % | 7.87 | % | 6.43 | % | 6.92 | % | 7 | % | |||||||||||||
Ultimate healthcare cost trend rate | 4.5 | % | 4.5 | % | 4.5 | % | 4.2 | % | 4.2 | % | 4.5 | % | |||||||||||||
Year ultimate healthcare cost trend rate will be realized | 2029 | 2029 | 2029 | 2030 | 2030 | 2030 | |||||||||||||||||||
Increasing or decreasing current healthcare cost trend rates by 1% would affect our accumulated postretirement benefit obligation and net postretirement expense by the following amounts for the years ended May 31, 2014 and 2013: | |||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
1% Increase in trend rate | |||||||||||||||||||||||||
Accumulated Benefit Obligation | $ | 239 | $ | 296 | $ | 6,502 | $ | 9,080 | |||||||||||||||||
Postretirement Cost | 11 | 15 | 727 | 647 | |||||||||||||||||||||
1% Decrease in trend rate | |||||||||||||||||||||||||
Accumulated Benefit Obligation | $ | (209 | ) | $ | (265 | ) | $ | (5,011 | ) | $ | (3,802 | ) | |||||||||||||
Postretirement Cost | (10 | ) | (13 | ) | (534 | ) | (481 | ) | |||||||||||||||||
We expect to pay approximately $0.9 million to $1.3 million in estimated postretirement benefits in each of the next five years. In the five years thereafter (2020-2024) we expect to pay a cumulative total of $8.2 million. | |||||||||||||||||||||||||
The Medicare Prescription Drug, Improvement and Modernization Act of 2003 (the “Act”), was signed into law on December 8, 2003. The Act provides for prescription drug benefits under Medicare Part D and contains a subsidy to plan sponsors who provide “actuarially equivalent” prescription drug plans. Our actuary has determined that the prescription drug benefit provided by our postretirement plan is considered to be actuarially equivalent to the benefits provided under the Act for all years since inception. However, effective January 1, 2014, we changed our retiree medical offering to a Medicare Advantage Plan. Under the Medicare Advantage Plan, any Part D subsidy belongs to the insurance carrier. Our results reflect this change. | |||||||||||||||||||||||||
We have included the impact of our portion of the Medicare Prescription Drug, Improvement and Modernization Act of 2003 subsidy in the determination of accumulated postretirement benefit obligation for the U.S. nonpension postretirement benefit plan for the periods ended May 31, 2014 and 2013. For the fiscal years ended May 31, 2014 and 2013, we received reimbursements from Medicare related to this law amounting to approximately $37,000 and $74,000, respectively. |
Reorganization_Proceedings_of_
Reorganization Proceedings of Certain Subsidiaries | 12 Months Ended | |||
31-May-14 | ||||
Reorganization Proceedings of Certain Subsidiaries | ' | |||
NOTE O — 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 U.S. Bankruptcy Court in Delaware (the “Bankruptcy Court”) to reorganize under chapter 11 of the 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. | ||||
We have entered into an agreement in principle with the official representatives of current and future claimants that would resolve all present and future asbestos personal injury claims related to Bondex and other related entities. The agreement contemplates the filing of a plan or plans of reorganization and related documents (the “Plan”) with the Bankruptcy Court. The Plan will be subject to approval of the claimants, as well as the Bankruptcy Court and U.S. District Court. | ||||
Under the terms of the agreement in principle, a trust or trusts (the “Trust”) will be established under Section 524(g) of the Bankruptcy Code for the benefit of current and future asbestos personal injury claimants. Upon effectiveness of the Plan (the “Effective Date”), the Trust will be funded with $450 million in cash and one or more promissory notes, bearing no interest and maturing on or before the fourth anniversary of the Effective Date. The Plan shall provide for the following contributions to the Trust: | ||||
• | On or before the second anniversary of the Effective Date, an additional $102.5 million in cash, RPM International stock or a combination thereof (at our discretion in this and all subsequent cases) will be deposited into the Trust; | |||
• | On or before the third anniversary of the Effective Date, an additional $120 million in cash, RPM International stock or a combination thereof will be deposited into the Trust; and | |||
• | On or before the fourth anniversary of the Effective Date, a final payment of $125 million in cash, RPM International stock or a combination thereof will be deposited into the Trust. | |||
Of the first $450 million payment, $2.5 million relates to the resolution of all present and future asbestos personal injury claims related to NMBFil, Inc., an indirect subsidiary of RPM International, which is the subject of a separate settlement term sheet. A portion of the payments due under the promissory note(s) will be secured by a right to the equity of Bondex and related chapter 11 debtor entities. All present and future asbestos personal injury claims against Bondex and the other related entities would be channeled to and paid by the Trust. | ||||
The agreement in principle will automatically terminate if the Plan is not filed by October 31, 2014. Pursuant to the terms of the agreement, the Plan must be confirmed and effective no later than October 31, 2015, otherwise simple interest at the rate of 3.45% will begin to accrue on the aggregate funding amount of the trust through the effective date of the Plan. | ||||
There is no guaranty that the Plan will be filed or confirmed or the timing of any such confirmation. If the Plan is not filed or if the Plan, or a substantially similar plan, is not confirmed, the interests of SPHC, Bondex and RPM International may be significantly and adversely affected, SPHC and Bondex will remain in chapter 11, the amount of the asbestos liabilities of SPHC and Bondex will remain unresolved and the terms, timing and impact of any plan of reorganization ultimately confirmed in the cases will be unknown. If the Plan is not confirmed, the amount of SPHC’s and Bondex’s asbestos-related personal injury liabilities will not be resolved and will continue to be subject to substantial dispute and uncertainty as the appeals process with respect to the estimation ruling will then move forward. If the Plan is not confirmed, the amount of the asbestos personal injury liabilities could ultimately be determined to be significantly different from the amount agreed to by the parties in the agreement. This difference could be material to our financial position, cash flows and results of operations. In the event the Plan is not confirmed it is unclear whether any channeling injunction entered in connection with a plan of reorganization will extend to all non-filing affiliates of the filing entities, including RPM International. | ||||
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. The ACC/FCR have agreed not to proceed with any such claims unless the Plan is not confirmed. | ||||
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, on February 7, 2014, were certified by the District Court for direct review by the U.S. Court of Appeals for the Third Circuit, but the Third Circuit declined to accept the certification. The appeals remain pending before the District Court. The ACC/FCR have also filed a motion with the District Court to dismiss the appeal on the ground that the estimation decision was not a final, appealable order. Briefing of the appeal, and the motion to dismiss the appeal, at the District Court level will be stayed pending confirmation of the Plan. | ||||
Prior to the bankruptcy filing, the filing entities had litigated and, on many occasions, settled asbestos 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 A, 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 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 | 12 Months Ended | ||||||||||||
31-May-14 | |||||||||||||
Contingencies and Other Accrued Losses | ' | ||||||||||||
NOTE P — CONTINGENCIES AND OTHER ACCRUED LOSSES | |||||||||||||
Accrued loss reserves consist of the following: | |||||||||||||
May 31, | 2014 | 2013 | |||||||||||
(In thousands) | |||||||||||||
Accrued product liability reserves | $ | 10,589 | $ | 15,582 | |||||||||
Accrued warranty reserves | 14,167 | 8,591 | |||||||||||
Accrued environmental reserves | 2,731 | 3,418 | |||||||||||
Total accrued loss reserves - Current | $ | 27,487 | $ | 27,591 | |||||||||
Accrued product liability reserves - noncurrent | $ | 29,653 | $ | 29,489 | |||||||||
Accrued warranty liability - noncurrent | 574 | 739 | |||||||||||
Accrued environmental reserves - noncurrent | 2,005 | 3,274 | |||||||||||
Total accrued loss reserves - Noncurrent | $ | 32,232 | $ | 33,502 | |||||||||
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. To the extent there is a reasonable possibility that potential losses could exceed the amounts already accrued, we believe that the amount of any such additional loss would be immaterial to our results of operations, liquidity and consolidated financial position. | |||||||||||||
We also offer 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 May 31, 2014, 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: | |||||||||||||
Year Ended May 31, | 2014 | 2013 | 2012 | ||||||||||
(In thousands) | |||||||||||||
Beginning Balance | $ | 9,330 | $ | 14,751 | $ | 17,196 | |||||||
Deductions (1) | (19,155 | ) | (20,115 | ) | (18,143 | ) | |||||||
Provision charged to SG&A expense | 24,566 | 14,260 | 15,513 | ||||||||||
Acquisitions | — | 434 | 185 | ||||||||||
Ending Balance | $ | 14,741 | $ | 9,330 | $ | 14,751 | |||||||
-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 DOJ and 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 Tremco 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 year ended May 31, 2014, we paid the GSA Office of Inspector General $61.9 million and made other payments for miscellaneous legal expenses for approximately $1.1 million. We expect to pay approximately $2.1 million more in legal fees and other related costs arising out of this investigation. The accrual for this contingency is classified in other accrued liabilities in our Consolidated Balance Sheets. | |||||||||||||
We were notified by the SEC on June 24, 2014 that we are the subject of a formal investigation pertaining to the timing of our disclosure and accrual of loss reserves in fiscal 2013 with respect to the previously disclosed GSA and DOJ investigation into compliance issues relating to Tremco Roofing Division’s GSA contracts. We are cooperating with the SEC in its ongoing investigation. At this time, we are unable to predict the outcome of this matter or provide any quantification of how the final resolution of this matter may impact our future consolidated financial condition, results of operations or cash flows. | |||||||||||||
In January 2013, we entered into a Voluntary Self-Disclosure Agreement (“VSDA”) with the State of Delaware relating to certain property that may be held by us, including securities, payments, and refunds to employees, vendors and customers, that has been unclaimed for a specified period of time. Delaware’s Abandoned Property Law, like other state and federal escheat laws, generally requires companies to report and remit unclaimed property to the state. Although we believe we have procedures in place to comply with these laws, we entered into the VSDA so that we may identify any previously unreported abandoned property and remit any such property to the State of Delaware. We cannot estimate the amount or range of any such potential loss. However, we do not expect the outcome of this review to have a material impact on our results of operations or financial position. | |||||||||||||
Recently, two complaints were filed against Rust-Oleum and RPM International both seeking to have a class certified and alleging breach of warranty, breach of contract and other claims regarding certain deck coating products of Rust-Oleum. We plan to vigorously defend these actions, including any attempts at class certification. At this time, we are unable to predict the outcome of this matter or provide any quantification of how the final resolution of this matter may impact our future consolidated financial condition, results of operations or cash flows. |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||
31-May-14 | |||||||||||||
Segment Information | ' | ||||||||||||
NOTE Q — 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. Sales to the Home Depot represented less than 10% of our consolidated net sales for fiscal 2012 and 2013; 11% of our consolidated net sales for fiscal 2014; and 29%, 28% and 28% of our consumer segment net sales for 2014, 2013 and 2012, respectively. | |||||||||||||
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, interest expense and earnings before interest and taxes; as well as identifiable assets, capital expenditures and depreciation and amortization. | |||||||||||||
We reflect income from our joint ventures on the equity method, and receive royalties from our licensees. | |||||||||||||
The following tables reflect the results of our reportable segments consistent with our management philosophy, and represent the information we utilize, in conjunction with various strategic, operational and other financial performance criteria, in evaluating the performance of our portfolio of businesses. | |||||||||||||
Year Ended May 31, | 2014 | 2013 | 2012 | ||||||||||
(In thousands) | |||||||||||||
Net Sales | |||||||||||||
Industrial | $ | 2,769,657 | $ | 2,635,976 | $ | 2,535,238 | |||||||
Consumer | 1,606,696 | 1,442,679 | 1,242,178 | ||||||||||
Total | $ | 4,376,353 | $ | 4,078,655 | $ | 3,777,416 | |||||||
Income (Loss) Before Income Taxes | |||||||||||||
Industrial | |||||||||||||
Income Before Income Taxes (a) | $ | 295,751 | $ | 164,578 | $ | 278,676 | |||||||
Interest (Expense), Net (b) | (10,227 | ) | (10,318 | ) | (3,770 | ) | |||||||
EBIT (c) | $ | 305,978 | $ | 174,896 | $ | 282,446 | |||||||
Consumer | |||||||||||||
Income Before Income Taxes (a) | $ | 251,229 | $ | 190,611 | $ | 160,099 | |||||||
Interest (Expense), Net (b) | 122 | (10 | ) | 18 | |||||||||
EBIT (c) | $ | 251,107 | $ | 190,621 | $ | 160,081 | |||||||
Corporate/Other | |||||||||||||
(Expense) Before Income Taxes (a) | $ | (122,493 | ) | $ | (178,298 | ) | $ | (110,486 | ) | ||||
Interest (Expense), Net (b) | (55,131 | ) | (63,340 | ) | (64,107 | ) | |||||||
EBIT (c) | $ | (67,362 | ) | $ | (114,958 | ) | $ | (46,379 | ) | ||||
Consolidated | |||||||||||||
Income Before Income Taxes (a) | $ | 424,487 | $ | 176,891 | $ | 328,289 | |||||||
Interest (Expense), Net (b) | (65,236 | ) | (73,668 | ) | (67,859 | ) | |||||||
EBIT (c) | $ | 489,723 | $ | 250,559 | $ | 396,148 | |||||||
Identifiable Assets | |||||||||||||
Industrial | $ | 2,507,257 | $ | 2,461,163 | $ | 2,195,702 | |||||||
Consumer | 1,648,272 | 1,584,336 | 1,184,609 | ||||||||||
Corporate/Other | 222,836 | 75,348 | 181,502 | ||||||||||
Total | $ | 4,378,365 | $ | 4,120,847 | $ | 3,561,813 | |||||||
Capital Expenditures | |||||||||||||
Industrial | $ | 54,556 | $ | 50,025 | $ | 47,529 | |||||||
Consumer | 35,391 | 35,081 | 17,156 | ||||||||||
Corporate/Other | 3,845 | 6,261 | 6,930 | ||||||||||
Total | $ | 93,792 | $ | 91,367 | $ | 71,615 | |||||||
Depreciation and Amortization | |||||||||||||
Industrial | $ | 53,670 | $ | 53,549 | $ | 48,701 | |||||||
Consumer | 31,378 | 28,624 | 23,656 | ||||||||||
Corporate/Other | 5,021 | 4,163 | 3,666 | ||||||||||
Total | $ | 90,069 | $ | 86,336 | $ | 76,023 | |||||||
(a) | The presentation includes a reconciliation of Income (Loss) Before Income Taxes, a measure defined by Generally Accepted Accounting Principles (GAAP) in the United States, to EBIT. | ||||||||||||
(b) | Interest (expense), net includes the combination of interest expense and investment expense (income), net. | ||||||||||||
(c) | EBIT is defined as earnings (loss) before interest and taxes. We evaluate the profit performance of our segments based on income before income taxes, but also look to EBIT as a performance evaluation measure because interest expense is essentially related to corporate acquisitions, as opposed to segment operations. For that reason, we believe EBIT is also useful to investors as a metric in their investment decisions. EBIT should not be considered an alternative to, or more meaningful than, operating income as determined in accordance with GAAP, since EBIT omits the impact of interest and taxes in determining operating performance, which represent items necessary to our continued operations, given our level of indebtedness and ongoing tax obligations. Nonetheless, EBIT is a key measure expected by and useful to our fixed income investors, rating agencies and the banking community, all of whom believe, and we concur, that this measure is critical to the capital markets’ analysis of our segments’ core operating performance. We also evaluate EBIT because it is clear that movements in EBIT impact our ability to attract financing. Our underwriters and bankers consistently require inclusion of this measure in offering memoranda in conjunction with any debt underwriting or bank financing. EBIT may not be indicative of our historical operating results, nor is it meant to be predictive of potential future results. | ||||||||||||
Year Ended May 31, | 2014 | 2013 | 2012 | ||||||||||
(In thousands) | |||||||||||||
Net Sales (based on shipping location) (a) | |||||||||||||
United States | $ | 2,581,208 | $ | 2,404,835 | $ | 2,219,680 | |||||||
Foreign | |||||||||||||
Canada | 342,312 | 350,579 | 346,238 | ||||||||||
Europe | 1,031,686 | 908,139 | 919,124 | ||||||||||
Other Foreign | 421,147 | 415,102 | 292,374 | ||||||||||
Total Foreign | 1,795,145 | 1,673,820 | 1,557,736 | ||||||||||
Total | $ | 4,376,353 | $ | 4,078,655 | $ | 3,777,416 | |||||||
Long-Lived Assets (b) | |||||||||||||
United States | $ | 1,374,340 | $ | 1,311,640 | $ | 1,124,403 | |||||||
Foreign | |||||||||||||
Canada | 125,401 | 126,172 | 128,392 | ||||||||||
Europe | 340,146 | 340,592 | 315,228 | ||||||||||
United Kingdom | 259,829 | 237,124 | 192,155 | ||||||||||
Other Foreign | 208,411 | 213,726 | 64,316 | ||||||||||
Total Foreign | 933,787 | 917,614 | 700,091 | ||||||||||
Total | $ | 2,308,127 | $ | 2,229,254 | $ | 1,824,494 | |||||||
(a) | It is not practicable to obtain the information needed to disclose revenues attributable to each of our product lines. | ||||||||||||
(b) | Long-lived assets include all non-current assets, excluding non-current deferred income taxes. |
Quarterly_Information_Unaudite
Quarterly Information (Unaudited) | 12 Months Ended | ||||||||||||||||
31-May-14 | |||||||||||||||||
Quarterly Information (Unaudited) | ' | ||||||||||||||||
NOTE R – QUARTERLY INFORMATION (UNAUDITED) | |||||||||||||||||
The following is a summary of the quarterly results of operations for the years ended May 31, 2014 and 2013: | |||||||||||||||||
For Quarter Ended | |||||||||||||||||
(In thousands, except per share amounts) | 31-Aug | 30-Nov | 28-Feb | 31-May | |||||||||||||
2014 | |||||||||||||||||
Net Sales | $ | 1,164,674 | $ | 1,071,487 | $ | 863,410 | $ | 1,276,782 | |||||||||
Gross Profit | $ | 499,072 | $ | 457,945 | $ | 358,026 | $ | 560,725 | |||||||||
Net Income Attributable to RPM International Inc. Stockholders | $ | 103,098 | $ | 63,562 | $ | 16,221 | $ | 108,779 | |||||||||
Basic Earnings Per Share | $ | 0.78 | $ | 0.48 | $ | 0.12 | $ | 0.82 | |||||||||
Diluted Earnings Per Share | $ | 0.77 | $ | 0.48 | $ | 0.12 | $ | 0.8 | |||||||||
Dividends Per Share | $ | 0.225 | $ | 0.24 | $ | 0.24 | $ | 0.24 | |||||||||
(In thousands, except per share amounts) | 31-Aug | 30-Nov | February 28 | 31-May | |||||||||||||
(a), (e) | (b), (e) | (c), (e) | (d) | ||||||||||||||
2013 | (Restated | ) | (Restated | ) | (Restated | ) | |||||||||||
Net Sales | $ | 1,046,714 | $ | 1,017,426 | $ | 843,736 | $ | 1,170,779 | |||||||||
Gross Profit | $ | 433,880 | $ | 425,001 | $ | 343,564 | $ | 500,274 | |||||||||
Net Income (Loss) Attributable to RPM International Inc. Stockholders | $ | 26,665 | $ | 30,924 | $ | (24,364 | ) | $ | 65,378 | ||||||||
Basic Earnings (Loss) Per Share | $ | 0.2 | $ | 0.23 | $ | (0.19 | ) | $ | 0.49 | ||||||||
Diluted Earnings (Loss) Per Share | $ | 0.2 | $ | 0.23 | $ | (0.19 | ) | $ | 0.49 | ||||||||
Dividends Per Share | $ | 0.215 | $ | 0.225 | $ | 0.225 | $ | 0.225 | |||||||||
(a) | For the quarter ended August 31, 2012, net sales and gross profit were reduced by $2.9 million and $5.4 million, respectively, for revised cost estimates on unprofitable contracts related to our industrial segment, and $5.6 million in exit costs associated with those activities that impacted pretax income. Additionally, we wrote down an investment in Kemrock totaling $40.3 million and recognized $5.0 million in bad debt from our loan to Kemrock. The combined impact on net income and earnings per share was $50.9 million and $0.38 per share, respectively. Lastly, we recorded a charge for $11.4 million ($7.2 million after-tax) in relation to the items described in (e) below. | ||||||||||||||||
(b) | For the quarter ended November 30, 2012, we wrote down our remaining investment in Kemrock, which impacted net income and earnings per share by $10.8 million and $0.09 per share, respectively. Additionally, we recorded a charge for $16.9 million ($10.8 million after-tax) in relation to the items described in (e) below. | ||||||||||||||||
(c) | For the quarter ended February 28, 2013, net income was impacted by $1.6 million for the impact of a strategic repositioning of certain industrial segment operations in Brazil. Additionally, we recorded a charge for $40.5 million ($34.6 million after-tax) in relation to the items described in (e) below. | ||||||||||||||||
(d) | For the quarter ended May 31, 2013, we recorded $23.9 million in restructuring expense, including $3.9 million in inventory markdowns. We also recorded bad debt for the remaining amount of our loan to Kemrock totaling $4.0 million and wrote off our remaining investment in Kemrock common stock and in Kemrock convertible debt for a combined loss of $18.5 million. Additionally, we reduced our estimated accrual for our agreement in principle with the GSA by $3.7 million. The combined impact of these items on net income and earnings per share for the fourth quarter was $30.0 million and $0.23 per share, respectively. | ||||||||||||||||
(e) | During August 2014, we determined that there was an error in the timing of the disclosure and accrual of loss reserves associated with our settlement of the GSA and DOJ investigation into compliance issues related to GSA contracts at our Tremco Group. We filed amended Quarterly Reports on Form 10-Q/A in August 2014 with corrected financial statements for the periods ended August 31, 2012, November 30, 2012 and February 28, 2013. The corrections reduced net income by $7.2 million and $10.8 million for the quarterly periods ended August 31, 2012 and November 30, 2012, respectively, and increased net income for the quarterly period ended February 28, 2013 by $18.0 million. The corrections reduced basic and diluted earnings per share by $0.06 for the quarter ended August 31, 2012; and by $0.09 and $0.08, respectively, for the quarterly period ended November 30, 2012; and increased basic and diluted earnings per share by $0.14 for the quarterly period ended February 28, 2013. The figures presented in the table above represent the corrected amounts for each quarter. | ||||||||||||||||
Quarterly earnings per share may not total to the yearly earnings per share due to the weighted-average number of shares outstanding in each quarter. |
Valuation_And_Qualifying_Accou
Valuation And Qualifying Accounts and Reserves | 12 Months Ended | ||||||||||||||||||||
31-May-14 | |||||||||||||||||||||
Valuation And Qualifying Accounts and Reserves | ' | ||||||||||||||||||||
RPM International Inc. and Subsidiaries | |||||||||||||||||||||
Valuation And Qualifying Accounts and Reserves | |||||||||||||||||||||
(In thousands) | Balance at | Additions | Acquisitions | (Deductions) | Balance | ||||||||||||||||
Beginning | Charged to | (Disposals) | Additions | at End | |||||||||||||||||
of Period | Selling, | of Businesses | of Period | ||||||||||||||||||
General and | and | ||||||||||||||||||||
Administrative | Reclassifications | ||||||||||||||||||||
Year Ended May 31, 2014 | |||||||||||||||||||||
Current: | |||||||||||||||||||||
Allowance for doubtful accounts | $ | 28,904 | $ | 7,618 | $ | $ | (8,881 | )(1) | $ | 27,641 | |||||||||||
Accrued product liability reserves | $ | 15,582 | $ | 3,186 | $ | $ | (8,179 | )(2) | $ | 10,589 | |||||||||||
Accrued loss reserves | $ | 3,418 | $ | 275 | $ | 494 | (3) | $ | (1,456 | )(2) | $ | 2,731 | |||||||||
Noncurrent: | |||||||||||||||||||||
Accrued product liability | $ | 29,489 | $ | 4,968 | $ | $ | (4,804 | )(2) | $ | 29,653 | |||||||||||
Environmental reserves | $ | 3,274 | $ | $ | (494 | )(3) | $ | (775 | )(2) | $ | 2,005 | ||||||||||
Year Ended May 31, 2013 | |||||||||||||||||||||
Current: | |||||||||||||||||||||
Allowance for doubtful accounts | $ | 26,507 | $ | 9,799 | $ | — | $ | (7,402 | )(1) | $ | 28,904 | ||||||||||
Accrued product liability reserves | $ | 11,736 | $ | 5,499 | $ | — | $ | (1,653 | )(2) | $ | 15,582 | ||||||||||
Accrued loss reserves | $ | 3,580 | $ | 195 | $ | 227 | (3) | $ | (584 | )(2) | $ | 3,418 | |||||||||
Noncurrent: | |||||||||||||||||||||
Accrued product liability | $ | 28,592 | $ | 7,653 | $ | $ | (6,756 | )(2) | $ | 29,489 | |||||||||||
Environmental reserves | $ | 3,952 | $ | (60 | ) | $ | (227 | )(3) | $ | (391 | )(2) | $ | 3,274 | ||||||||
Year Ended May 31, 2012 | |||||||||||||||||||||
Current: | |||||||||||||||||||||
Allowance for doubtful accounts | $ | 27,597 | $ | 5,811 | $ | — | $ | (6,901 | )(1) | $ | 26,507 | ||||||||||
Accrued product liability reserves | $ | 12,973 | $ | 6,221 | $ | (699 | )(3) | $ | (6,759 | )(2) | $ | 11,736 | |||||||||
Accrued loss reserves | $ | 4,357 | $ | (310 | ) | $ | 1,316 | $ | (1,783 | )(2) | $ | 3,580 | |||||||||
Noncurrent: | |||||||||||||||||||||
Accrued product liability | $ | 27,873 | $ | 178 | $ | 699 | (3) | $ | (158 | )(2) | $ | 28,592 | |||||||||
Environmental reserves | $ | 4,693 | $ | (631 | ) | $ | $ | (110 | )(2) | $ | 3,952 | ||||||||||
-1 | Uncollectible accounts written off, net of recoveries | ||||||||||||||||||||
-2 | Primarily claims paid during the year, net of insurance contributions | ||||||||||||||||||||
-3 | Primarily transfers between current and noncurrent |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||||||
31-May-14 | |||||||||||||||||
Consolidation, Noncontrolling Interests and Basis of Presentation | ' | ||||||||||||||||
1) Consolidation, Noncontrolling Interests and Basis of Presentation | |||||||||||||||||
Our financial statements include all of our majority-owned subsidiaries, except for certain subsidiaries that were deconsolidated on May 31, 2010 (please refer to Note A[2]). 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. | |||||||||||||||||
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). | |||||||||||||||||
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. | |||||||||||||||||
Deconsolidation of Specialty Products Holding Corp. ("SPHC") | ' | ||||||||||||||||
2) 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 (the “Bankruptcy Court”). 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 May 31, 2014. | |||||||||||||||||
Use of Estimates | ' | ||||||||||||||||
3) Use of Estimates | |||||||||||||||||
The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Management has evaluated subsequent events through the date the Consolidated Financial Statements were filed with the Securities and Exchange Commission (“SEC”). | |||||||||||||||||
Acquisitions/Divestitures | ' | ||||||||||||||||
4) Acquisitions/Divestitures | |||||||||||||||||
We account for business combinations using the acquisition method of accounting and, accordingly, the assets and liabilities of the acquired entities are recorded at their estimated fair values at the acquisition date. | |||||||||||||||||
During the fiscal year ended May 31, 2014, we completed four acquisitions. Two of the current-year acquisitions report through our consumer reportable segment, which included the following: a producer of specialty primers based in Westlake, Ohio; and a producer and marketer of premium concrete and wood deck floor coatings based in St. Paul, Minnesota. The other two product line acquisitions report through our industrial reportable segment and included the following: a Nova Scotia limited company that patented structural fibers used to replace steel fibers, welded wire mesh and conventional reinforcing bars in a wide variety of applications; and a producer of terrazzo tile, cork and rubber/cork floor tiles headquartered in Exton, Pennsylvania. | |||||||||||||||||
During the fiscal year ended May 31, 2013, we completed six acquisitions. Two of those acquisitions report through our consumer reportable segment, which included the following: a producer and marketer of innovative and unique exterior wood deck and concrete restoration systems based in Clarkston, Georgia; and a manufacturer of nail care enamels, coatings components and related products for the personal care industry located in Paterson, New Jersey. The remaining product line acquisitions report through our industrial reportable segment, and include our acquisition of a manufacturer of rolled asphalt roofing materials, waterproofing products, chemical admixtures and industrial epoxy flooring systems located in Cacapava, Brazil; and three smaller businesses. | |||||||||||||||||
The purchase price for each acquisition has been allocated to the estimated fair values of the assets acquired and liabilities assumed as of the date of acquisition. Final determinations of the purchase price allocation for these acquisitions have been completed, and are aggregated by year of purchase in the following table: | |||||||||||||||||
Fiscal 2014 Acquisitions | Fiscal 2013 Acquisitions | ||||||||||||||||
(In thousands) | Weighted- | Total | Weighted- | Total | |||||||||||||
Average | Average | ||||||||||||||||
Intangible | Intangible | ||||||||||||||||
Asset | Asset | ||||||||||||||||
Amortization | Amortization | ||||||||||||||||
Life (In | Life (In | ||||||||||||||||
Years) | Years) | ||||||||||||||||
Current assets | $ | 10,874 | $ | 67,397 | |||||||||||||
Property, plant and equipment | 4,234 | 46,306 | |||||||||||||||
Goodwill | N/A | 21,296 | N/A | 260,789 | |||||||||||||
Tradenames - indefinite lives | N/A | 2,000 | N/A | 38,448 | |||||||||||||
Other intangible assets | 14 | 19,462 | 9 | 103,593 | |||||||||||||
Other long-term assets | — | 8,171 | |||||||||||||||
Total Assets Acquired | $ | 57,866 | $ | 524,704 | |||||||||||||
Liabilities assumed | (18,361 | ) | (120,372 | ) | |||||||||||||
Net Assets Acquired | $ | 39,505 | (1) | $ | 404,332 | (2) | |||||||||||
-1 | Figure includes cash acquired of $0.3 million. | ||||||||||||||||
-2 | Figure includes cash acquired of $6.9 million. | ||||||||||||||||
Our Consolidated Financial Statements reflect the results of operations of acquired businesses as of their respective dates of acquisition. Pro-forma results of operations for the years ended May 31, 2014 and May 31, 2013 were not materially different from reported results and, consequently, are not presented. | |||||||||||||||||
Foreign Currency | ' | ||||||||||||||||
5) Foreign Currency | |||||||||||||||||
The functional currency for each of our foreign subsidiaries is its principal operating currency. Accordingly, for the periods presented, assets and liabilities have been translated using exchange rates at year end, while income and expense for the periods have been translated using a weighted-average exchange rate. | |||||||||||||||||
The resulting translation adjustments have been recorded in accumulated other comprehensive income (loss), a component of stockholders’ equity, and will be included in net earnings only upon the sale or liquidation of the underlying foreign investment, neither of which is contemplated at this time. Transaction gains and losses have been immaterial during the past three fiscal years. | |||||||||||||||||
Cash and Cash Equivalents | ' | ||||||||||||||||
6) Cash and Cash Equivalents | |||||||||||||||||
For purposes of the statement of cash flows, we consider all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. We do not believe we are exposed to any significant credit risk on cash and cash equivalents. The carrying amounts of cash and cash equivalents approximate fair value. | |||||||||||||||||
Property, Plant & Equipment | ' | ||||||||||||||||
7) Property, Plant & Equipment | |||||||||||||||||
May 31, | 2014 | 2013 | |||||||||||||||
(In thousands) | |||||||||||||||||
Land | $ | 50,245 | $ | 45,281 | |||||||||||||
Buildings and leasehold improvements | 328,269 | 311,869 | |||||||||||||||
Machinery and equipment | 813,162 | 770,973 | |||||||||||||||
Total property, plant and equipment, at cost | 1,191,676 | 1,128,123 | |||||||||||||||
Less: allowance for depreciation and amortization | 658,871 | 635,760 | |||||||||||||||
Property, plant and equipment, net | $ | 532,805 | $ | 492,363 | |||||||||||||
We review long-lived assets for impairment when circumstances indicate that the carrying values of these assets may not be recoverable. For assets that are to be held and used, an impairment charge is recognized when the estimated undiscounted future cash flows associated with the asset or group of assets are less than their carrying value. If impairment exists, an adjustment is made to write the asset down to its fair value, and a loss is recorded for the difference between the carrying value and the fair value. Fair values are determined based on quoted market values, discounted cash flows, internal appraisals or external appraisals, as applicable. Assets to be disposed of are carried at the lower of their carrying value or estimated net realizable value. | |||||||||||||||||
Depreciation is computed primarily using the straight-line method over the following ranges of useful lives: | |||||||||||||||||
Land improvements | 3 to 30 years | ||||||||||||||||
Buildings and improvements | 3 to 50 years | ||||||||||||||||
Machinery and equipment | 1 to 30 years | ||||||||||||||||
Total depreciation expense for each fiscal period includes the charges to income that result from the amortization of assets recorded under capital leases. | |||||||||||||||||
Revenue Recognition | ' | ||||||||||||||||
8) Revenue Recognition | |||||||||||||||||
Revenues are recognized when realized or realizable, and when earned. In general, this is when title and risk of loss pass to the customer. Further, revenues are realizable when we have persuasive evidence of a sales arrangement, the product has been shipped or the services have been provided to the customer, the sales price is fixed or determinable, and collectibility is reasonably assured. We reduce our revenues for estimated customer returns and allowances, certain rebates, sales incentives, and promotions in the same period the related sales are recorded. | |||||||||||||||||
We also record revenues generated under long-term construction contracts, mainly in connection with the installation of specialized roofing and flooring systems, and related services. Certain long-term construction contracts are accounted for under the percentage-of-completion method, and therefore we record contract revenues and related costs as our contracts progress. This method recognizes the economic results of contract performance on a timelier basis than does the completed-contract method; however, application of this method requires reasonably dependable estimates of progress toward completion, as well as other dependable estimates. When reasonably dependable estimates cannot be made, or if other factors make estimates doubtful, the completed-contract method is applied. Under the completed-contract method, billings and costs are accumulated on the balance sheet as the contract progresses, but no revenue is recognized until the contract is complete or substantially complete. | |||||||||||||||||
Shipping Costs | ' | ||||||||||||||||
9) Shipping Costs | |||||||||||||||||
Shipping costs paid to third-party shippers for transporting products to customers are included in selling, general and administrative expenses. For the years ended May 31, 2014, 2013 and 2012, shipping costs were $133.0 million, $125.6 million and $112.0 million, respectively. | |||||||||||||||||
Allowance for Doubtful Accounts Receivable | ' | ||||||||||||||||
10) Allowance for Doubtful Accounts Receivable | |||||||||||||||||
An allowance for anticipated uncollectible trade receivable amounts is established using a combination of specifically identified accounts to be reserved and a reserve covering trends in collectibility. These estimates are based on an analysis of trends in 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. Actual collections of trade receivables could differ from our estimates due to changes in future economic or industry conditions or specific customer’s financial conditions. For the periods ended May 31, 2014, 2013 and 2012, bad debt expense approximated $7.6 million, $18.8 million and $5.8 million, respectively. Included in bad debt expense during fiscal 2013 is $9.0 million recognized for amounts written off in relation to our loan to Kemrock. | |||||||||||||||||
Inventories | ' | ||||||||||||||||
11) Inventories | |||||||||||||||||
Inventories are stated at the lower of cost or market, cost being determined on a first-in, first-out (FIFO) basis and market being determined on the basis of replacement cost or net realizable value. Inventory costs include raw materials, labor and manufacturing overhead. We review the net realizable value of our inventory in detail on an on-going basis, with consideration given to various factors, which include our estimated reserves for excess, obsolete, slow moving or distressed inventories. If actual market conditions differ from our projections, and our estimates prove to be inaccurate, write-downs of inventory values and adjustments to cost of sales may be required. Historically, our inventory reserves have approximated actual experience. Inventories were composed of the following major classes: | |||||||||||||||||
May 31, | 2014 | 2013 | |||||||||||||||
(In thousands) | |||||||||||||||||
Raw material and supplies | $ | 213,981 | $ | 185,590 | |||||||||||||
Finished goods | 399,663 | 363,090 | |||||||||||||||
Total Inventory | $ | 613,644 | $ | 548,680 | |||||||||||||
Goodwill and Other Intangible Assets | ' | ||||||||||||||||
12) Goodwill and Other Intangible Assets | |||||||||||||||||
We account for goodwill and other intangible assets in accordance with the provisions of ASC 350 and account for business combinations using the acquisition method of accounting and accordingly, the assets and liabilities of the entities acquired are recorded at their estimated fair values at the acquisition date. Goodwill represents the excess of the purchase price paid over the fair value of net assets acquired, including the amount assigned to identifiable intangible assets. | |||||||||||||||||
We performed the required annual goodwill impairment assessments as of the first day of our fourth fiscal quarter at the reporting unit level. Our reporting units have been identified at the component level, which is the operating segment level or one level below. First, we assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The traditional two-step quantitative process is required only if we conclude that it is more likely than not that a reporting unit’s fair value is less than its carrying amount. However, we have an unconditional option to bypass a qualitative assessment and proceed directly to performing the traditional two-step quantitative analysis. We applied both the qualitative and traditional two-step quantitative processes during our annual goodwill impairment assessment performed during the fourth quarter of fiscal 2014. | |||||||||||||||||
The traditional two-step quantitative goodwill impairment assessment involves estimating the fair value of a reporting unit and comparing it with its carrying amount. If the carrying amount of the reporting unit exceeds its fair value, additional steps are followed to determine and recognize, if appropriate, an impairment loss. Calculating the fair value of the reporting units requires our significant use of estimates and assumptions. We estimate the fair values of our reporting units by applying a combination of third-party market-value indicators, when observable market data is available, and discounted future cash flows to each of our reporting unit’s projected EBITDA. In applying this methodology, we rely on a number of factors, including actual and forecasted operating results and market data. As a result of the assessments performed for fiscal 2014, 2013 and 2012, there were no indicators of impairment, including no reporting units that were at risk of failing step one of the traditional two-step quantitative analysis. | |||||||||||||||||
Additionally, we test all indefinite-lived intangible assets for impairment annually. We perform the required annual impairment assessments as of the first day of our fourth fiscal quarter. During fiscal 2013, we adopted new FASB guidance that simplifies how an entity tests indefinite-lived intangible assets for impairment. It provides an option to first assess qualitative factors to determine whether it is more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying amount. | |||||||||||||||||
The annual impairment assessment involves estimating the fair value of each indefinite-lived asset and comparing it with its carrying amount. If the carrying amount of the intangible asset exceeds its fair value, we record an impairment loss equal to the difference. Calculating the fair value of the indefinite-lived assets requires our significant use of estimates and assumptions. We estimate the fair values of our intangible assets by applying a relief-from-royalty calculation, which includes discounted future cash flows related to each of our intangible asset’s projected revenues. In applying this methodology, we rely on a number of factors, including actual and forecasted revenues and market data. As a result of the assessments performed for fiscal 2014, 2013 and 2012, there were no indicators of impairment. | |||||||||||||||||
Should the future earnings and cash flows at our reporting units decline and/or discount rates increase, future impairment charges to goodwill and other intangible assets may be required. | |||||||||||||||||
Advertising Costs | ' | ||||||||||||||||
13) Advertising Costs | |||||||||||||||||
Advertising costs are charged to operations when incurred and are included in SG&A expenses. For the years ended May 31, 2014, 2013 and 2012, advertising costs were $49.6 million, $43.2 million and $34.1 million, respectively. | |||||||||||||||||
Research and Development | ' | ||||||||||||||||
14) Research and Development | |||||||||||||||||
Research and development costs are charged to operations when incurred and are included in selling, general and administrative expenses. The amounts charged to expense for the years ended May 31, 2014, 2013 and 2012 were $54.6 million, $49.3 million and $45.4 million, respectively. | |||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||
15) Stock-Based Compensation | |||||||||||||||||
Stock-based compensation represents the cost related to stock-based awards granted to our employees and directors, which may include restricted stock, stock options and stock appreciation rights (“SARs”). We measure stock-based compensation cost at the date of grant, based on the estimated fair value of the award. We recognize the cost as expense on a straight-line basis (net of estimated forfeitures) over the related vesting period. Refer to Note I, “Stock-Based Compensation,” for further information. | |||||||||||||||||
Investment (Income), Net | ' | ||||||||||||||||
16) Investment (Income), Net | |||||||||||||||||
Investment (income), net, consists of the following components: | |||||||||||||||||
Year Ended May 31, | 2014 | 2013 | 2012 | ||||||||||||||
(In thousands) | |||||||||||||||||
Interest (income) | $ | (6,327 | ) | $ | (6,814 | ) | $ | (5,031 | ) | ||||||||
Loss (gain) on sale of marketable securities | (7,353 | ) | (11,664 | ) | 862 | ||||||||||||
Other-than-temporary impairment on securities | 161 | 14,279 | 1,604 | ||||||||||||||
Dividend (income) | (2,196 | ) | (1,979 | ) | (1,621 | ) | |||||||||||
Investment (income), net | $ | (15,715 | ) | $ | (6,178 | ) | $ | (4,186 | ) | ||||||||
Other (Income) Expense, Net | ' | ||||||||||||||||
17) Other (Income) Expense, Net | |||||||||||||||||
Other (income) expense, net, consists of the following components: | |||||||||||||||||
Year Ended May 31, | 2014 | 2013 | 2012 | ||||||||||||||
(In thousands) | |||||||||||||||||
Royalty (income), net | $ | (1,195 | ) | $ | (2,069 | ) | $ | (1,520 | ) | ||||||||
Loss on Brazil operational repositioning | — | 6,087 | |||||||||||||||
Loss on Kemrock conversion option | — | 9,030 | |||||||||||||||
(Income) loss related to unconsolidated equity affiliates | (2,888 | ) | 44,671 | (8,079 | ) | ||||||||||||
Other (income) expense, net | $ | (4,083 | ) | $ | 57,719 | $ | (9,599 | ) | |||||||||
Equity in Income of Unconsolidated Affiliates | |||||||||||||||||
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 purchased approximately 870,000 additional shares of Kemrock common stock, which increased our ownership to 23% of Kemrock’s outstanding shares. Also during fiscal 2012, we entered into a GDR Purchase Agreement with Kemrock, whereby we purchased from Kemrock 693,072 GDRs of Kemrock for an aggregate purchase price of approximately $7.2 million. We account for our investment in the Kemrock GDRs as common stock equivalents within our total investment in Kemrock. Lastly, during fiscal 2012, we invested $22.7 million in 5.5% convertible bonds issued by Kemrock. The bonds are convertible into ordinary shares or GDRs, each representing one ordinary share of Kemrock stock, and may be converted at any time on or after June 4, 2012 and up to the close of business on June 12, 2017. | |||||||||||||||||
Due to the presumption under GAAP that an entity with an ownership percentage greater than 20% has significant influence, and no other factors would refute that presumption, we changed our accounting for this investment to the equity method. Adjustments are made to our investment in order to recognize our share of Kemrock’s earnings as they occur, rather than as dividends or other distributions are received. Any changes in our proportionate share of the underlying equity of Kemrock, which could result from their issuance of additional equity securities, are recognized as increases or decreases in shareholders’ equity, net of any related tax effects. | |||||||||||||||||
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. In consideration of all available evidence to evaluate the realizable value of our equity investment, including a 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, we determined that it was appropriate to record an impairment loss during fiscal 2013 of approximately $55.9 million on our equity method investment, which is classified in other (income) expense, net in our Consolidated Statements of Income. We also recorded a loss of approximately $13.7 million for the write-down of our investment in Kemrock convertible bonds, which is classified in investment (income) expense, net in our Consolidated Statements of Income. | |||||||||||||||||
Our investment in Kemrock had no carrying value at May 31, 2014 or 2013. | |||||||||||||||||
Loss on Repositioning of Operations in Brazil | |||||||||||||||||
During fiscal 2013, we completed a definitive plan to substantially liquidate our StonCor Brazil subsidiary, a small flooring business in Brazil with sales, income and assets that amounted to significantly less than 1% of our consolidated sales, income and assets in any given year, in order to leverage the substantial sales force, manufacturing facilities, broad distribution network and entrepreneurial management team of our Viapol subsidiary, which was acquired in June 2012. The acquisition of Viapol has given us the critical mass needed to sell construction products in Brazil, including RPM’s existing flooring brands such as Stonhard and Flowcrete. Viapol has the local manufacturing capabilities and technically skilled salespeople required to sell epoxy and polyurethane flooring in Brazil where we previously lacked a significant presence. | |||||||||||||||||
As a result of our repositioning of certain of our industrial segment operations in Brazil, we incurred a loss of approximately $6.1 million. Included in the loss was the impact of an adjustment for accumulated foreign currency translation. This non-cash charge was previously recorded as an unrealized foreign exchange loss in our currency translation account as a component of other comprehensive income. | |||||||||||||||||
Income Taxes | ' | ||||||||||||||||
18) Income Taxes | |||||||||||||||||
The provision for income taxes is calculated using the liability method. Under the liability method, deferred income taxes are recognized for the tax effect of temporary differences between the financial statement carrying amount of assets and liabilities and the amounts used for income tax purposes and for certain changes in valuation allowances. Valuation allowances are recorded to reduce certain deferred tax assets when, in our estimation, it is more likely than not that a tax benefit will not be realized. | |||||||||||||||||
As of May 31, 2014, it is possible that we could repatriate approximately $50.0 million of undistributed foreign earnings in the foreseeable future. Accordingly, the estimated tax impact, $2.5 million, of this potential repatriation has been reflected in our current results. We have not provided for U.S. income and foreign withholding taxes on the remaining foreign subsidiaries’ undistributed earnings of approximately $1.2 billion because such earnings have been retained and reinvested by the subsidiaries as of May 31, 2014. Accordingly, no provision has been made for U.S. income taxes or foreign withholding taxes, which may become payable if the remaining undistributed earnings of foreign subsidiaries were paid to us as dividends. The additional income taxes and applicable withholding taxes that would result had such earnings actually been repatriated are not practically determinable. | |||||||||||||||||
Earnings Per Share of Common Stock | ' | ||||||||||||||||
19) Earnings Per Share of Common Stock | |||||||||||||||||
Earnings per share (EPS) is computed using the two-class method. The two-class method determines EPS for each class of common stock and participating securities according to dividends and dividend equivalents and their respective participation rights in undistributed earnings. Our unvested share-based payment awards that contain rights to receive non-forfeitable dividends are considered participating securities. Basic EPS of common stock is computed by dividing net income by the weighted-average number of shares of common stock outstanding for the period. Diluted EPS of common stock is computed on the basis of the weighted-average number of shares of common stock plus the effect of dilutive potential shares of common stock outstanding during the period using the treasury stock method. Dilutive potential shares of common stock include outstanding stock options, stock awards and convertible notes. See Note K, “Earnings Per Share of Common Stock,” for additional information. | |||||||||||||||||
Other Recent Accounting Pronouncements | ' | ||||||||||||||||
20) Other Recent 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. | |||||||||||||||||
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers,” which establishes a comprehensive revenue recognition standard for virtually all industries in U.S. GAAP. The new standard will apply for annual periods beginning after December 15, 2016, including interim periods therein. Early adoption is prohibited. We have not yet determined the effects, if any, adoption of this update may have on our consolidated financial statements. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||
31-May-14 | |||||||||||||||||
Asset Acquired and Liabilities Assumed on Acquisition | ' | ||||||||||||||||
Final determinations of the purchase price allocation for these acquisitions have been completed, and are aggregated by year of purchase in the following table: | |||||||||||||||||
Fiscal 2014 Acquisitions | Fiscal 2013 Acquisitions | ||||||||||||||||
(In thousands) | Weighted- | Total | Weighted- | Total | |||||||||||||
Average | Average | ||||||||||||||||
Intangible | Intangible | ||||||||||||||||
Asset | Asset | ||||||||||||||||
Amortization | Amortization | ||||||||||||||||
Life (In | Life (In | ||||||||||||||||
Years) | Years) | ||||||||||||||||
Current assets | $ | 10,874 | $ | 67,397 | |||||||||||||
Property, plant and equipment | 4,234 | 46,306 | |||||||||||||||
Goodwill | N/A | 21,296 | N/A | 260,789 | |||||||||||||
Tradenames - indefinite lives | N/A | 2,000 | N/A | 38,448 | |||||||||||||
Other intangible assets | 14 | 19,462 | 9 | 103,593 | |||||||||||||
Other long-term assets | — | 8,171 | |||||||||||||||
Total Assets Acquired | $ | 57,866 | $ | 524,704 | |||||||||||||
Liabilities assumed | (18,361 | ) | (120,372 | ) | |||||||||||||
Net Assets Acquired | $ | 39,505 | (1) | $ | 404,332 | (2) | |||||||||||
-1 | Figure includes cash acquired of $0.3 million. | ||||||||||||||||
-2 | Figure includes cash acquired of $6.9 million. | ||||||||||||||||
Property, Plant and Equipment | ' | ||||||||||||||||
May 31, | 2014 | 2013 | |||||||||||||||
(In thousands) | |||||||||||||||||
Land | $ | 50,245 | $ | 45,281 | |||||||||||||
Buildings and leasehold improvements | 328,269 | 311,869 | |||||||||||||||
Machinery and equipment | 813,162 | 770,973 | |||||||||||||||
Total property, plant and equipment, at cost | 1,191,676 | 1,128,123 | |||||||||||||||
Less: allowance for depreciation and amortization | 658,871 | 635,760 | |||||||||||||||
Property, plant and equipment, net | $ | 532,805 | $ | 492,363 | |||||||||||||
Useful Lives | ' | ||||||||||||||||
Depreciation is computed primarily using the straight-line method over the following ranges of useful lives: | |||||||||||||||||
Land improvements | 3 to 30 years | ||||||||||||||||
Buildings and improvements | 3 to 50 years | ||||||||||||||||
Machinery and equipment | 1 to 30 years | ||||||||||||||||
Major Classes of Inventories | ' | ||||||||||||||||
Inventories were composed of the following major classes: | |||||||||||||||||
May 31, | 2014 | 2013 | |||||||||||||||
(In thousands) | |||||||||||||||||
Raw material and supplies | $ | 213,981 | $ | 185,590 | |||||||||||||
Finished goods | 399,663 | 363,090 | |||||||||||||||
Total Inventory | $ | 613,644 | $ | 548,680 | |||||||||||||
Investment (Income), Net | ' | ||||||||||||||||
Investment (income), net, consists of the following components: | |||||||||||||||||
Year Ended May 31, | 2014 | 2013 | 2012 | ||||||||||||||
(In thousands) | |||||||||||||||||
Interest (income) | $ | (6,327 | ) | $ | (6,814 | ) | $ | (5,031 | ) | ||||||||
Loss (gain) on sale of marketable securities | (7,353 | ) | (11,664 | ) | 862 | ||||||||||||
Other-than-temporary impairment on securities | 161 | 14,279 | 1,604 | ||||||||||||||
Dividend (income) | (2,196 | ) | (1,979 | ) | (1,621 | ) | |||||||||||
Investment (income), net | $ | (15,715 | ) | $ | (6,178 | ) | $ | (4,186 | ) | ||||||||
Other (Income) Expense, Net | ' | ||||||||||||||||
Other (income) expense, net, consists of the following components: | |||||||||||||||||
Year Ended May 31, | 2014 | 2013 | 2012 | ||||||||||||||
(In thousands) | |||||||||||||||||
Royalty (income), net | $ | (1,195 | ) | $ | (2,069 | ) | $ | (1,520 | ) | ||||||||
Loss on Brazil operational repositioning | — | 6,087 | |||||||||||||||
Loss on Kemrock conversion option | — | 9,030 | |||||||||||||||
(Income) loss related to unconsolidated equity affiliates | (2,888 | ) | 44,671 | (8,079 | ) | ||||||||||||
Other (income) expense, net | $ | (4,083 | ) | $ | 57,719 | $ | (9,599 | ) | |||||||||
Restructuring_Tables
Restructuring (Tables) | 12 Months Ended | ||||||||||||
31-May-14 | |||||||||||||
Changes in Accrued Restructuring Balances | ' | ||||||||||||
The following table includes the changes in our accrued restructuring balances: | |||||||||||||
(In thousands) | Employee | Other | Total | ||||||||||
Severance | |||||||||||||
Balance at May 31, 2013 | $ | 12,656 | $ | 397 | $ | 13,053 | |||||||
Charge to expense | (243 | ) | — | (243 | ) | ||||||||
Cash payments | (10,688 | ) | (40 | ) | (10,728 | ) | |||||||
Noncash and foreign exchange impacts | 357 | 24 | 381 | ||||||||||
Balance at May 31, 2014 | $ | 2,082 | $ | 381 | $ | 2,463 | |||||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||
31-May-14 | |||||||||||||||||
Changes in Carrying Amount of Goodwill, by Reportable Segment | ' | ||||||||||||||||
The changes in the carrying amount of goodwill, by reportable segment, for the years ended May 31, 2014 and 2013, are as follows: | |||||||||||||||||
(In thousands) | Industrial | Consumer | Total | ||||||||||||||
Segment | Segment | ||||||||||||||||
Balance as of June 1, 2012 | $ | 465,891 | $ | 383,455 | $ | 849,346 | |||||||||||
Acquisitions | 98,718 | 162,071 | 260,789 | ||||||||||||||
Translation adjustments | 209 | 3,487 | 3,696 | ||||||||||||||
Balance as of May 31, 2013 | 564,818 | 549,013 | 1,113,831 | ||||||||||||||
Acquisitions | 3,147 | 18,149 | 21,296 | ||||||||||||||
Translation adjustments | 4,193 | 8,054 | 12,247 | ||||||||||||||
Balance as of May 31, 2014 | $ | 572,158 | $ | 575,216 | $ | 1,147,374 | |||||||||||
Other Intangible Assets Major Classes | ' | ||||||||||||||||
Other intangible assets consist of the following major classes: | |||||||||||||||||
(In thousands) | Amortization | Gross | Accumulated | Net Other | |||||||||||||
Period (In | Carrying | Amortization | Intangible | ||||||||||||||
Years) | Amount | Assets | |||||||||||||||
As of May 31, 2014 | |||||||||||||||||
Amortized intangible assets | |||||||||||||||||
Formulae | 3 to 33 | $ | 226,200 | $ | 124,413 | $ | 101,787 | ||||||||||
Customer-related intangibles | 3 to 33 | 201,968 | 80,667 | 121,301 | |||||||||||||
Trademarks/names | 3 to 40 | 33,219 | 15,435 | 17,784 | |||||||||||||
Other | 2 to 40 | 57,476 | 30,329 | 27,147 | |||||||||||||
Total Amortized Intangibles | 518,863 | 250,844 | 268,019 | ||||||||||||||
Indefinite-lived intangible assets | |||||||||||||||||
Trademarks/names | 191,517 | 191,517 | |||||||||||||||
Total Other Intangible Assets | $ | 710,380 | $ | 250,844 | $ | 459,536 | |||||||||||
As of May 31, 2013 | |||||||||||||||||
Amortized intangible assets | |||||||||||||||||
Formulae | 3 to 33 | $ | 216,418 | $ | 113,315 | $ | 103,103 | ||||||||||
Customer-related intangibles | 3 to 33 | 196,376 | 66,077 | 130,299 | |||||||||||||
Trademarks/names | 2 to 40 | 30,223 | 13,222 | 17,001 | |||||||||||||
Other | 1 to 40 | 48,817 | 27,046 | 21,771 | |||||||||||||
Total Amortized Intangibles | 491,834 | 219,660 | 272,174 | ||||||||||||||
Indefinite-lived intangible assets | |||||||||||||||||
Trademarks/names | 187,439 | 187,439 | |||||||||||||||
Total Other Intangible Assets | $ | 679,273 | $ | 219,660 | $ | 459,613 | |||||||||||
Marketable_Securities_Tables
Marketable Securities (Tables) | 12 Months Ended | ||||||||||||||||
31-May-14 | |||||||||||||||||
Summary of Marketable Securities by Asset Type | ' | ||||||||||||||||
The following tables summarize marketable securities held at May 31, 2014 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) | |||||||||||||||||
May 31, 2014 | |||||||||||||||||
Equity securities: | |||||||||||||||||
Stocks - foreign | $ | 984 | $ | 669 | $ | (20 | ) | $ | 1,633 | ||||||||
Stocks - domestic | 31,071 | 8,965 | (132 | ) | 39,904 | ||||||||||||
Mutual funds - foreign | 30,541 | 2,799 | — | 33,340 | |||||||||||||
Mutual funds - domestic | 44,242 | 1,790 | (1,109 | ) | 44,923 | ||||||||||||
Total equity securities | 106,838 | 14,223 | (1,261 | ) | 119,800 | ||||||||||||
Fixed maturity: | |||||||||||||||||
U.S. treasury and other government | 21,156 | 152 | (164 | ) | 21,144 | ||||||||||||
Corporate bonds | 1,544 | 212 | — | 1,756 | |||||||||||||
Foreign bonds | 37 | 3 | — | 40 | |||||||||||||
Mortgage-backed securities | 85 | 55 | — | 140 | |||||||||||||
Total fixed maturity securities | 22,822 | 422 | (164 | ) | 23,080 | ||||||||||||
Total | $ | 129,660 | $ | 14,645 | $ | (1,425 | ) | $ | 142,880 | ||||||||
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 | ||||||||||||
Corporate 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 May 31, 2014 and 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: | |||||||||||||||||
May 31, 2014 | May 31, 2013 | ||||||||||||||||
(In thousands) | Fair | Gross | Fair | Gross | |||||||||||||
Value | Unrealized | Value | Unrealized | ||||||||||||||
Losses | Losses | ||||||||||||||||
Total investments with unrealized losses | $ | 35,465 | $ | (1,425 | ) | $ | 36,582 | $ | (1,034 | ) | |||||||
Unrealized losses with a loss position for less than 12 months | 16,611 | (845 | ) | 36,327 | (956 | ) | |||||||||||
Unrealized losses with a loss position for more than 12 months | 18,854 | (580 | ) | 255 | (78 | ) | |||||||||||
Net Carrying Values of Debt Securities by Contractual Maturity | ' | ||||||||||||||||
The net carrying values of debt securities at May 31, 2014, 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 | $ | 3,198 | $ | 3,214 | |||||||||||||
One year through five years | 14,984 | 15,015 | |||||||||||||||
Six years through ten years | 3,271 | 3,304 | |||||||||||||||
After ten years | 1,369 | 1,547 | |||||||||||||||
$ | 22,822 | $ | 23,080 | ||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||
31-May-14 | |||||||||||||||||
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 | Significant | Significant | Fair Value at | |||||||||||||
in Active | Other | Unobservable | May 31, 2014 | ||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||
Identical Assets | Inputs (Level 2) | (Level 3) | |||||||||||||||
(Level 1) | |||||||||||||||||
U.S. Treasury and other government | $ | — | $ | 21,144 | $ | — | $ | 21,144 | |||||||||
Foreign bonds | 40 | 40 | |||||||||||||||
Mortgage-backed securities | 140 | 140 | |||||||||||||||
Corporate bonds | 1,756 | 1,756 | |||||||||||||||
Stocks - foreign | 1,633 | 1,633 | |||||||||||||||
Stocks - domestic | 39,904 | 39,904 | |||||||||||||||
Mutual funds - foreign | 33,340 | 33,340 | |||||||||||||||
Mutual funds - domestic | 44,923 | 44,923 | |||||||||||||||
Foreign currency forward contract | 2,582 | 2,582 | |||||||||||||||
Cross-currency swap | (19,550 | ) | (19,550 | ) | |||||||||||||
Contingent consideration | (81,296 | ) | (81,296 | ) | |||||||||||||
Total | $ | 41,537 | $ | 84,375 | $ | (81,296 | ) | $ | 44,616 | ||||||||
(In thousands) | Quoted Prices | Significant | Significant | Fair Value at | |||||||||||||
in Active | Other | Unobservable | May 31, 2013 | ||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||
Identical Assets | Inputs (Level 2) | (Level 3) | |||||||||||||||
(Level 1) | |||||||||||||||||
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 | (69,020 | ) | (69,020 | ) | |||||||||||||
Total | $ | 30,699 | $ | 67,595 | $ | (69,020 | ) | $ | 29,274 | ||||||||
Fair Value and Carrying Value of Financial Instruments and Long-Term Debt | ' | ||||||||||||||||
Based on the analysis performed, the fair value and the carrying value of our financial instruments and long-term debt as of May 31, 2014 and May 31, 2013 are as follows: | |||||||||||||||||
At May 31, 2014 | |||||||||||||||||
(In thousands) | Carrying Value | Fair Value | |||||||||||||||
Cash and cash equivalents | $ | 332,868 | $ | 332,868 | |||||||||||||
Marketable equity securities | 119,800 | 119,800 | |||||||||||||||
Marketable debt securities | 23,080 | 23,080 | |||||||||||||||
Long-term debt, including current portion | 1,351,627 | 1,516,062 | |||||||||||||||
At May 31, 2013 | |||||||||||||||||
(In thousands) | Carrying Value | Fair 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 | |||||||||||||||
Borrowings_Tables
Borrowings (Tables) | 12 Months Ended | ||||||||
31-May-14 | |||||||||
Description of Long-Term Debt | ' | ||||||||
A description of long-term debt follows: | |||||||||
May 31, | 2014 | 2013 | |||||||
(In thousands) | |||||||||
Unsecured 6.25% senior notes due December 15, 2013 | $ | — | $ | 200,000 | |||||
Unsecured 6.70% senior notes due November 1, 2015(1) | 150,000 | 150,000 | |||||||
Unsecured 6.50% senior notes due February 14, 2018(2) | 248,627 | 248,259 | |||||||
Unsecured 6.125% senior note due October 15, 2019(3) | 458,163 | 459,457 | |||||||
Unsecured $205,000 face value at maturity 2.25% senior convertible notes due December 15, 2020 | 185,474 | — | |||||||
Unsecured 3.45% senior notes due November 15, 2022 | 300,000 | 300,000 | |||||||
Revolving credit agreement for $600,000 with a syndicate of banks, through June 29, 2017 (4) | 2,090 | 7,701 | |||||||
Other obligations, including capital leases and unsecured notes payable at various rates of interest due in installments through 2017 | 7,273 | 8,280 | |||||||
1,351,627 | 1,373,697 | ||||||||
Less: current portion | 5,662 | 4,521 | |||||||
Total Long-Term Debt, Less Current Maturities | $ | 1,345,965 | $ | 1,369,176 | |||||
-1 | We entered into a cross-currency swap, which fixed the interest and principal payments in euros, resulting in an effective fixed-rate borrowing of 5.31%. | ||||||||
-2 | The $250.0 million aggregate principal amount of the notes due 2018 is adjusted for the amortization of the original issue discount, which approximated $1.4 million and $1.7 million at May 31, 2014 and 2013, respectively. The original issue discount effectively reduced the ultimate proceeds from the financing. The effective interest rate on the notes, including the amortization of the discount, is 6.704% for both years presented. | ||||||||
-3 | Includes the combination of the October 2009 initial issuance of $300.0 million aggregate principal amount and the May 2011 issuance of an additional $150.0 million aggregate principal amount of these notes. The $300.0 million aggregate principal amount of the notes due 2019 from the initial issuance is adjusted for the amortization of the original issue discount, which approximated $0.2 million at May 31, 2014 and 2013. The original issue discount effectively reduced the ultimate proceeds from the October 2009 financing. The effective interest rate on the notes issued in October 2009, including the amortization of the discount, is 6.139%. The additional $150.0 million aggregate principal amount of the notes due 2019 issued in May 2011 is adjusted for the unamortized premium received at issuance, which approximated $8.3 million and $9.7 million at May 31, 2014 and 2013, respectively. The premium effectively increased the proceeds from the financing. The effective interest rate on the $150.0 million notes issued in May 2011 is 4.934%. | ||||||||
-4 | Interest was tied to AUD LIBOR at May 31, 2014, and averaged 3.96% for AUD denominated debt. Interest was tied to AUD LIBOR at May 31, 2013, and averaged 4.16% for AUD denominated debt. |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
31-May-14 | |||||||||||||
Income (Loss) before Income Taxes | ' | ||||||||||||
Income (loss) before income taxes as shown in the Consolidated Statements of Income is summarized below for the periods indicated. Certain foreign operations are branches of RPM International Inc.’s subsidiaries and are therefore subject to income taxes in both the United States and the respective foreign jurisdictions. Accordingly, the provision (benefit) for income taxes by jurisdiction and the income (loss) before income taxes by jurisdiction may not be directly related. | |||||||||||||
Year Ended May 31, | 2014 | 2013 | 2012 | ||||||||||
(In thousands) | |||||||||||||
United States | $ | 209,626 | $ | 5,104 | $ | 187,687 | |||||||
Foreign | 214,861 | 171,787 | 140,602 | ||||||||||
Income Before Income Taxes | $ | 424,487 | $ | 176,891 | $ | 328,289 | |||||||
Provision (Benefit) for Income Tax | ' | ||||||||||||
Provision (benefit) for income taxes consists of the following for the periods indicated: | |||||||||||||
Year Ended May 31, | 2014 | 2013 | 2012 | ||||||||||
(In thousands) | |||||||||||||
Current: | |||||||||||||
U.S. Federal | $ | 46,846 | $ | 56,590 | $ | 45,547 | |||||||
State and local | 5,660 | 6,694 | 6,836 | ||||||||||
Foreign | 59,425 | 44,747 | 49,231 | ||||||||||
Total Current | 111,931 | 108,031 | 101,614 | ||||||||||
Deferred: | |||||||||||||
U.S. Federal | 16,747 | (31,987 | ) | (787 | ) | ||||||||
State and local | 1,292 | (3,649 | ) | (572 | ) | ||||||||
Foreign | (11,467 | ) | (5,355 | ) | (5,729 | ) | |||||||
Total Deferred | 6,572 | (40,991 | ) | (7,088 | ) | ||||||||
Provision for Income Taxes | $ | 118,503 | $ | 67,040 | $ | 94,526 | |||||||
Significant Components of Deferred Income Tax Assets and Liabilities | ' | ||||||||||||
The significant components of deferred income tax assets and liabilities as of May 31, 2014 and 2013 were as follows: | |||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Deferred income tax assets related to: | |||||||||||||
Inventories | $ | 6,944 | $ | 6,795 | |||||||||
Allowance for losses | 6,410 | 7,584 | |||||||||||
Accrued compensation and benefits | 102,579 | 113,394 | |||||||||||
Accrued other expenses | 10,256 | 16,322 | |||||||||||
Other long-term liabilities | 19,646 | 29,954 | |||||||||||
Net operating loss and credit carryforwards | 71,534 | 70,208 | |||||||||||
Net unrealized loss on securities | 19,185 | 21,727 | |||||||||||
Total Deferred Income Tax Assets | 236,554 | 265,984 | |||||||||||
Less: valuation allowances | (85,719 | ) | (89,909 | ) | |||||||||
Net Deferred Income Tax Assets | 150,835 | 176,075 | |||||||||||
Deferred income tax (liabilities) related to: | |||||||||||||
Depreciation | (47,639 | ) | (48,491 | ) | |||||||||
Pension and other postretirement benefits | (7,867 | ) | (12,204 | ) | |||||||||
Amortization of intangibles | (115,166 | ) | (125,042 | ) | |||||||||
Total Deferred Income Tax (Liabilities) | (170,672 | ) | (185,737 | ) | |||||||||
Deferred Income Tax Assets (Liabilities), Net | $ | (19,837 | ) | $ | (9,662 | ) | |||||||
Reconciliation of Income Tax Expense (Benefit) Computed by Applying U.S. Statutory Federal Income Tax Rate against Income (Loss) before Income Taxes to Provision (Benefit) for Income Taxes | ' | ||||||||||||
The following table reconciles income tax expense (benefit) computed by applying the U.S. statutory federal income tax rate against income (loss) before income taxes to the provision (benefit) for income taxes: | |||||||||||||
Year Ended May 31, | 2014 | 2013 | 2012 | ||||||||||
(In thousands) | |||||||||||||
Income tax expense (benefit) at the U.S. statutory federal income tax rate | $ | 148,570 | $ | 61,912 | $ | 114,901 | |||||||
Impact of foreign operations | (24,874 | ) | (11,552 | ) | (32,192 | ) | |||||||
State and local income taxes net of federal income tax benefit | 4,519 | 1,979 | 4,073 | ||||||||||
Tax benefits from the domestic manufacturing deduction | (4,878 | ) | (4,489 | ) | (3,744 | ) | |||||||
Nondeductible fines and penalties | (2,002 | ) | 4,802 | — | |||||||||
Nondeductible business expense | 1,508 | 1,269 | 1,304 | ||||||||||
Valuation allowance | (2,998 | ) | 14,729 | 9,353 | |||||||||
Other | (1,342 | ) | (1,610 | ) | 831 | ||||||||
Provision for Income Tax Expense | $ | 118,503 | $ | 67,040 | $ | 94,526 | |||||||
Effective Income Tax Rate | 27.9 | % | 37.9 | % | 28.8 | % | |||||||
Activity Related to Unrecognized Tax Benefits | ' | ||||||||||||
Uncertain income tax positions are accounted for in accordance with ASC 740. The following table summarizes the activity related to unrecognized tax benefits: | |||||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||
Balance at June 1 | $ | 8.4 | $ | 3.3 | $ | 6.4 | |||||||
Additions based on tax positions related to current year | 0.1 | — | — | ||||||||||
Additions for tax positions of prior years | 8.9 | 6 | 0.5 | ||||||||||
Reductions for tax positions of prior years | (1.7 | ) | (0.9 | ) | (0.4 | ) | |||||||
Settlements | — | — | (3.2 | ) | |||||||||
Balance at May 31 | $ | 15.7 | $ | 8.4 | $ | 3.3 | |||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||
31-May-14 | |||||||||||||
Stock-Based Compensation Expense Included in Consolidated Statements of Income | ' | ||||||||||||
The following table represents total stock-based compensation expense included in our Consolidated Statements of Income: | |||||||||||||
Year Ended May 31, | 2014 | 2013 | 2012 | ||||||||||
(In thousands) | |||||||||||||
Selling, general and administrative expense | $ | 23,568 | $ | 17,145 | $ | 13,904 | |||||||
Income tax (benefit) | (7,776 | ) | (5,627 | ) | (4,921 | ) | |||||||
Total stock-based compensation cost | $ | 15,792 | $ | 11,518 | $ | 8,983 | |||||||
Summary of Weighted-Average Assumptions Related to Grants | ' | ||||||||||||
The following is a summary of our weighted-average assumptions related to grants made during the last three fiscal years: | |||||||||||||
Year Ended May 31, | 2014 | 2013 | 2012 | ||||||||||
Risk-free interest rate | 2.2 | % | 1.1 | % | 2.5 | % | |||||||
Expected life of option | 7.5 yrs | 7.5 yrs | 7.5 yrs | ||||||||||
Expected dividend yield | 2.7 | % | 3.3 | % | 3.8 | % | |||||||
Expected volatility rate | 26.1 | % | 28.2 | % | 29.5 | % | |||||||
Summary of Option and Share-Based Payment Activity | ' | ||||||||||||
The following table summarizes option and share-based payment activity (including SARs) under these plans during the fiscal year ended May 31, 2014: | |||||||||||||
2014 | |||||||||||||
Share-Based Payments | Weighted | Number of | |||||||||||
Average | Shares Under | ||||||||||||
Exercise Price | Option | ||||||||||||
(Shares in thousands) | |||||||||||||
Balance at June 1 | $ | 20.54 | 3,502 | ||||||||||
Options granted | 33.8 | 540 | |||||||||||
Options canceled/expired | 23.29 | (47 | ) | ||||||||||
Options exercised | 18.63 | (776 | ) | ||||||||||
Balance at May 31 | 23.18 | 3,219 | |||||||||||
Exercisable at May 31 | $ | 20.04 | 1,806 | ||||||||||
Stock Option Plans | 2014 | 2013 | 2012 | ||||||||||
(In millions, except per share amounts) | |||||||||||||
Weighted-average grant-date fair value per share | $ | 7.38 | $ | 4.96 | $ | 4.69 | |||||||
Intrinsic value of options exercised | $ | 15.6 | $ | 9.8 | $ | 7 | |||||||
Tax benefit from options exercised | $ | 5.2 | $ | 3.5 | $ | 1.4 | |||||||
Fair value of SARS vested | $ | 2 | $ | 1.9 | $ | 2 | |||||||
Employee Incentive Plan Twenty Zero Seven | ' | ||||||||||||
Summary of Share-Based Performance Earned Restricted Stock Activity and Restricted Stock Units | ' | ||||||||||||
The following table sets forth awards and restricted stock units issued under the 2007 Plan for the year ended May 31, 2014: | |||||||||||||
Weighted-Average | 2014 | ||||||||||||
Grant-Date | |||||||||||||
Fair Value | |||||||||||||
(Shares in thousands) | |||||||||||||
Balance at June 1 | $ | 17.94 | 815 | ||||||||||
Shares granted | 33.8 | 76 | |||||||||||
Shares forfeited | 19.78 | (20 | ) | ||||||||||
Shares vested | 18.96 | (14 | ) | ||||||||||
Balance at May 31 | $ | 19.27 | 857 | ||||||||||
Directors Equity Incentive Plan 2003 | ' | ||||||||||||
Summary of Share-Based Performance Earned Restricted Stock Activity and Restricted Stock Units | ' | ||||||||||||
The following table summarizes the share-based activity under the 2003 Plan during fiscal 2014: | |||||||||||||
Weighted-Average | 2014 | ||||||||||||
Grant-Date | |||||||||||||
Fair Value | |||||||||||||
(Shares in thousands) | |||||||||||||
Balance at June 1 | $ | 22.5 | 113 | ||||||||||
Shares granted to Directors | 36.63 | 30 | |||||||||||
Shares vested | 21.13 | (45 | ) | ||||||||||
Balance at May 31 | $ | 27.48 | 98 | ||||||||||
Performance Based Restricted Stock Awards | ' | ||||||||||||
Summary of Share-Based Performance Earned Restricted Stock Activity and Restricted Stock Units | ' | ||||||||||||
The following table summarizes the share-based performance-earned restricted stock (“PERS”) activity during the fiscal year ended May 31, 2014: | |||||||||||||
Weighted-Average | 2014 | ||||||||||||
Grant-Date | |||||||||||||
Fair Value | |||||||||||||
(Shares in thousands) | |||||||||||||
Balance at June 1 | $ | 22.31 | 1,454 | ||||||||||
Shares granted | 35.11 | 507 | |||||||||||
Shares forfeited | 24.42 | (27 | ) | ||||||||||
Shares vested | 19.3 | (520 | ) | ||||||||||
Balance at May 31 | $ | 27.96 | 1,414 | ||||||||||
Nonvested Shares | ' | ||||||||||||
Summary of Share-Based Performance Earned Restricted Stock Activity and Restricted Stock Units | ' | ||||||||||||
The following table summarizes the activity for all nonvested restricted shares during the year ended May 31, 2014: | |||||||||||||
Weighted-Average | Number of | ||||||||||||
Grant-Date Fair | Shares | ||||||||||||
Value | |||||||||||||
(Shares in thousands) | |||||||||||||
Balance at June 1 | $ | 20.94 | 3,236 | ||||||||||
Granted | 35.02 | 613 | |||||||||||
Vested | 18.71 | (682 | ) | ||||||||||
Forfeited | 21.49 | (107 | ) | ||||||||||
Balance at May 31 | $ | 24.24 | 3,060 | ||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended | ||||||||||||||||||||
31-May-14 | |||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||||||||
Accumulated other comprehensive income (loss) consists of the following components: | |||||||||||||||||||||
(In thousands) | Foreign | Pension And | Unrealized | Unrealized | Total | ||||||||||||||||
Currency | Other | Gain | Gain (Loss) | ||||||||||||||||||
Translation | Postretirement | (Loss) On | On | ||||||||||||||||||
Adjustments | Benefit | Derivatives, | Securities, | ||||||||||||||||||
Liability | Net of Tax | Net of Tax | |||||||||||||||||||
Adjustments, | |||||||||||||||||||||
Net of Tax | |||||||||||||||||||||
Balance at June 1, 2011 | $ | 81,346 | $ | (96,705 | ) | $ | 5,267 | $ | 16,165 | $ | 6,073 | ||||||||||
Reclassification adjustments for gains included in net income, net of tax benefit of $844 | 1,043 | 1,043 | |||||||||||||||||||
Other comprehensive income (loss) | (89,863 | ) | (119,189 | ) | (5,512 | ) | (21,010 | ) | (235,574 | ) | |||||||||||
Deferred taxes | 41,720 | 1,445 | 7,400 | 50,565 | |||||||||||||||||
Balance at May 31, 2012 | (8,517 | ) | (174,174 | ) | 1,200 | 3,598 | (177,893 | ) | |||||||||||||
Reclassification adjustments for gains included in net income, net of tax benefit of $633 | (1,953 | ) | (1,953 | ) | |||||||||||||||||
Other comprehensive income | (15,911 | ) | 48,100 | 14 | 7,860 | 40,063 | |||||||||||||||
Deferred taxes | (17,481 | ) | (18 | ) | (1,971 | ) | (19,470 | ) | |||||||||||||
Balance at May 31, 2013 | (24,428 | ) | (143,555 | ) | 1,196 | 7,534 | (159,253 | ) | |||||||||||||
Reclassification adjustments for gains included in net income, net of tax benefit of $586 | 1,220 | 1,220 | |||||||||||||||||||
Other comprehensive income | 9,533 | (16,418 | ) | (1,215 | ) | 4,275 | (3,825 | ) | |||||||||||||
Deferred taxes | 6,325 | 304 | (1,653 | ) | 4,976 | ||||||||||||||||
Balance at May 31, 2014 | $ | (14,895 | ) | $ | (153,648 | ) | $ | 285 | $ | 11,376 | $ | (156,882 | ) | ||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||
31-May-14 | |||||||||||||
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 years ended May 31, 2014, 2013 and 2012: | |||||||||||||
Year Ended May 31, | 2014 | 2013 | 2012 | ||||||||||
(In thousands, except per share amounts) | |||||||||||||
Numerator for earnings per share: | |||||||||||||
Net income attributable to RPM International Inc. stockholders | $ | 291,660 | $ | 98,603 | $ | 215,936 | |||||||
Less: Allocation of earnings and dividends to participating securities | (6,366 | ) | (1,999 | ) | (4,024 | ) | |||||||
Net income available to common shareholders - basic | 285,294 | 96,604 | 211,912 | ||||||||||
Add: Undistributed earnings reallocated to unvested shareholders | 29 | (3 | ) | 9 | |||||||||
Add: Income effect of contingently issuable shares | 2,493 | — | |||||||||||
Net income available to common shareholders - diluted | $ | 287,816 | $ | 96,601 | $ | 211,921 | |||||||
Denominator for basic and diluted earnings per share: | |||||||||||||
Basic weighted average common shares | 129,438 | 128,956 | 128,130 | ||||||||||
Average diluted options | 1,003 | 845 | 587 | ||||||||||
Net issuable common share equivalents (1) | 1,847 | — | |||||||||||
Total shares for diluted earnings per share | 132,288 | 129,801 | 128,717 | ||||||||||
Earnings Per Share of Common Stock Attributable to RPM International Inc. Stockholders: | |||||||||||||
Basic Earnings Per Share of Common Stock | $ | 2.2 | $ | 0.75 | $ | 1.65 | |||||||
Diluted Earnings Per Share of Common Stock | $ | 2.18 | $ | 0.74 | $ | 1.65 | |||||||
-1 | For the year ended May 31, 2014, represents the number of shares that would be issued if our contingently convertible notes were converted. We include these shares in the calculation of diluted EPS as the conversion of the notes may be settled, at our election, in cash, shares of our common stock, or a combination of cash and shares of our common stock. |
Leases_Tables
Leases (Tables) | 12 Months Ended | ||||
31-May-14 | |||||
Future Minimum Lease Commitments under Non-Cancelable Lease Agreements | ' | ||||
The following table illustrates our future minimum lease commitments under all non-cancelable lease agreements, for each of the next five years and in the aggregate, as of May 31, 2014: | |||||
May 31, | |||||
(In thousands) | |||||
2015 | $ | 48,695 | |||
2016 | 39,054 | ||||
2017 | 28,971 | ||||
2018 | 21,459 | ||||
2019 | 15,405 | ||||
Thereafter | 68,280 | ||||
Total Minimum Lease Commitments | $ | 221,864 | |||
Postretirement_Benefits_Tables
Postretirement Benefits (Tables) | 12 Months Ended | ||||||||||||||||||||||||
31-May-14 | |||||||||||||||||||||||||
Pension Plan, Defined Benefit | ' | ||||||||||||||||||||||||
Components of Net Periodic Pension and Postretirement Costs | ' | ||||||||||||||||||||||||
Net periodic pension cost consisted of the following for the year ended May 31: | |||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Service cost | $ | 27,056 | $ | 25,950 | $ | 19,906 | $ | 4,375 | $ | 4,337 | $ | 3,731 | |||||||||||||
Interest cost | 18,039 | 16,240 | 15,307 | 7,382 | 7,246 | 8,076 | |||||||||||||||||||
Expected return on plan assets | (20,761 | ) | (17,431 | ) | (17,416 | ) | (8,411 | ) | (7,715 | ) | (7,867 | ) | |||||||||||||
Amortization of: | |||||||||||||||||||||||||
Prior service cost | 334 | 348 | 352 | 19 | 7 | 10 | |||||||||||||||||||
Net actuarial losses recognized | 13,222 | 16,888 | 8,510 | 2,448 | 2,771 | 2,169 | |||||||||||||||||||
Curtailment/settlement (gains) losses | — | 72 | — | 44 | 234 | — | |||||||||||||||||||
Net Pension Cost | $ | 37,890 | $ | 42,067 | $ | 26,659 | $ | 5,857 | $ | 6,880 | $ | 6,119 | |||||||||||||
Amounts Recognized in Consolidated Balance Sheet | ' | ||||||||||||||||||||||||
Amounts recognized in the Consolidated Balance Sheets for the years ended May 31, 2014 and 2013 are as follows: | |||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Noncurrent assets | $ | — | $ | — | $ | 227 | $ | — | |||||||||||||||||
Current liabilities | (15 | ) | (43 | ) | (458 | ) | (436 | ) | |||||||||||||||||
Noncurrent liabilities | (194,462 | ) | (160,683 | ) | (24,858 | ) | (30,501 | ) | |||||||||||||||||
Net Amount Recognized | $ | (194,477 | ) | $ | (160,726 | ) | $ | (25,089 | ) | $ | (30,937 | ) | |||||||||||||
Pretax Net Actuarial Loss, Prior Service (Costs) and Transition Assets/(Obligations) Recognized in Accumulated Other Comprehensive Income (Loss) not Affecting Retained Earnings | ' | ||||||||||||||||||||||||
The following table presents the pretax net actuarial loss, prior service (costs) and transition assets/(obligations) recognized in accumulated other comprehensive income (loss) not affecting retained earnings: | |||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Net actuarial loss | $ | (185,320 | ) | $ | (161,835 | ) | $ | (52,573 | ) | $ | (57,882 | ) | |||||||||||||
Prior service (costs) | (997 | ) | (1,331 | ) | (423 | ) | (51 | ) | |||||||||||||||||
Total recognized in accumulated other comprehensive income not affecting retained earnings | $ | (186,317 | ) | $ | (163,166 | ) | $ | (52,996 | ) | $ | (57,933 | ) | |||||||||||||
Changes Recognized in Other Comprehensive Income | ' | ||||||||||||||||||||||||
The following table includes the changes recognized in other comprehensive income: | |||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Changes in plan assets and benefit obligations recognized in other comprehensive income: | |||||||||||||||||||||||||
Prior service cost | $ | — | $ | — | $ | 384 | $ | — | |||||||||||||||||
Net loss (gain) arising during the year | 36,707 | (26,291 | ) | (2,673 | ) | (2,197 | ) | ||||||||||||||||||
Effect of exchange rates on amounts included in AOCI | (137 | ) | 300 | ||||||||||||||||||||||
Amounts recognized as a component of net periodic benefit cost: | |||||||||||||||||||||||||
Amortization or curtailment recognition of prior service credit (cost) | (334 | ) | (348 | ) | (19 | ) | (48 | ) | |||||||||||||||||
Amortization or settlement recognition of net gain (loss) | (13,222 | ) | (16,960 | ) | (2,492 | ) | (2,966 | ) | |||||||||||||||||
Total recognized in other comprehensive loss (income) | $ | 23,151 | $ | (43,599 | ) | $ | (4,937 | ) | $ | (4,911 | ) | ||||||||||||||
Weighted-Average Assumptions used to Determine Benefit Obligations and Net Periodic and Postretirement Costs | ' | ||||||||||||||||||||||||
The following weighted-average assumptions were used to determine our year-end benefit obligations and net periodic pension cost under the plans: | |||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||||
Year-End Benefit Obligations | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Discount rate | 4.3 | % | 4.45 | % | 3.82 | % | 3.95 | % | |||||||||||||||||
Rate of compensation increase | 3.81 | % | 3.14 | % | 3.3 | % | 3.32 | % | |||||||||||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||||
Net Periodic Pension Cost | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Discount rate | 4.45 | % | 4.25 | % | 5.25 | % | 3.95 | % | 4.19 | % | 5.14 | % | |||||||||||||
Expected return on plan assets | 8.5 | % | 8.5 | % | 8.5 | % | 5.37 | % | 5.32 | % | 5.63 | % | |||||||||||||
Rate of compensation increase | 3.14 | % | 3.15 | % | 3.15 | % | 3.32 | % | 3.76 | % | 3.83 | % | |||||||||||||
POSTRETIREMENT BENEFITS | ' | ||||||||||||||||||||||||
Components of Net Periodic Pension and Postretirement Costs | ' | ||||||||||||||||||||||||
The following table illustrates the effect on operations of these plans for the three years ended May 31, 2014: | |||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Service cost - Benefits earned during the period | $ | — | $ | — | $ | — | $ | 1,264 | $ | 1,185 | $ | 745 | |||||||||||||
Interest cost on the accumulated obligation | 297 | 349 | 416 | 1,225 | 1,188 | 968 | |||||||||||||||||||
Amortization of: | |||||||||||||||||||||||||
Prior service (credit) | (153 | ) | (86 | ) | (86 | ) | |||||||||||||||||||
Net actuarial (gains) losses | (144 | ) | 16 | (58 | ) | 516 | 470 | 72 | |||||||||||||||||
Net Periodic Postretirement Expense | $ | — | $ | 279 | $ | 272 | $ | 3,005 | $ | 2,843 | $ | 1,785 | |||||||||||||
Amounts Recognized in Consolidated Balance Sheet | ' | ||||||||||||||||||||||||
Amounts recognized in the Consolidated Balance Sheets for the years ended May 31, 2014 and 2013 are as follows: | |||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Current liabilities | $ | (410 | ) | $ | (642 | ) | $ | (522 | ) | $ | (486 | ) | |||||||||||||
Noncurrent liabilities | (6,377 | ) | (7,872 | ) | (27,733 | ) | (27,929 | ) | |||||||||||||||||
Net Amount Recognized | $ | (6,787 | ) | $ | (8,514 | ) | $ | (28,255 | ) | $ | (28,415 | ) | |||||||||||||
Pretax Net Actuarial Loss, Prior Service (Costs) and Transition Assets/(Obligations) Recognized in Accumulated Other Comprehensive Income (Loss) not Affecting Retained Earnings | ' | ||||||||||||||||||||||||
The following table presents the pretax net actuarial gain (loss) and prior service credits recognized in accumulated other comprehensive income (loss) not affecting retained earnings: | |||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Net actuarial gain (loss) | $ | 1,080 | $ | 996 | $ | (9,136 | ) | $ | (10,950 | ) | |||||||||||||||
Prior service credits | 1,834 | 516 | |||||||||||||||||||||||
Total recognized in accumulated other comprehensive income not affecting retained earnings | $ | 2,914 | $ | 1,512 | $ | (9,136 | ) | $ | (10,950 | ) | |||||||||||||||
Changes Recognized in Other Comprehensive Income | ' | ||||||||||||||||||||||||
The following table includes the changes recognized in other comprehensive income: | |||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Changes in plan assets and benefit obligations recognized in other comprehensive income: | |||||||||||||||||||||||||
Prior service cost | $ | (1,471 | ) | $ | — | $ | — | $ | — | ||||||||||||||||
Net loss (gain) arising during the year | (228 | ) | (1,014 | ) | (766 | ) | 1,988 | ||||||||||||||||||
Effect of exchange rates on amounts included in AOCI | (532 | ) | (9 | ) | |||||||||||||||||||||
Amounts recognized as a component of net periodic benefit cost: | |||||||||||||||||||||||||
Amortization or curtailment recognition of prior service credit (cost) | 153 | 86 | |||||||||||||||||||||||
Amortization or settlement recognition of net gain (loss) | 144 | (16 | ) | (516 | ) | (470 | ) | ||||||||||||||||||
Total recognized in other comprehensive loss (income) | $ | (1,402 | ) | $ | (944 | ) | $ | (1,814 | ) | $ | 1,509 | ||||||||||||||
Weighted-Average Assumptions used to Determine Benefit Obligations and Net Periodic and Postretirement Costs | ' | ||||||||||||||||||||||||
The following weighted-average assumptions were used to determine our year-end benefit obligations and net periodic postretirement benefit costs under the plans: | |||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||||
Year-End Benefit Obligations | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Discount rate | 4 | % | 3.95 | % | 4.4 | % | 4.5 | % | |||||||||||||||||
Current healthcare cost trend rate | 12.28 | % | 7.54 | % | 6.31 | % | 6.43 | % | |||||||||||||||||
Ultimate healthcare cost trend rate | 4.5 | % | 4.5 | % | 4.2 | % | 4.2 | % | |||||||||||||||||
Year ultimate healthcare cost trend rate will be realized | 2029 | 2029 | 2030 | 2030 | |||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||||
Net Periodic Postretirement Cost | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Discount rate | 3.95 | % | 3.75 | % | 4.75 | % | 4.5 | % | 4.75 | % | 5.75 | % | |||||||||||||
Healthcare cost trend rate | 7.54 | % | 7.7 | % | 7.87 | % | 6.43 | % | 6.92 | % | 7 | % | |||||||||||||
Ultimate healthcare cost trend rate | 4.5 | % | 4.5 | % | 4.5 | % | 4.2 | % | 4.2 | % | 4.5 | % | |||||||||||||
Year ultimate healthcare cost trend rate will be realized | 2029 | 2029 | 2029 | 2030 | 2030 | 2030 | |||||||||||||||||||
Changes in Benefit Obligations | ' | ||||||||||||||||||||||||
The changes in benefit obligations of the plans at May 31, 2014 and 2013 were as follows: | |||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Accumulated postretirement benefit obligation at beginning of year | $ | 8,514 | $ | 9,677 | $ | 28,415 | $ | 24,517 | |||||||||||||||||
Service cost | — | 1,264 | 1,185 | ||||||||||||||||||||||
Interest cost | 297 | 349 | 1,225 | 1,188 | |||||||||||||||||||||
Benefit payments | (362 | ) | (572 | ) | (421 | ) | (441 | ) | |||||||||||||||||
Medicare subsidy received | 37 | 74 | |||||||||||||||||||||||
Plan amendments | (1,471 | ) | |||||||||||||||||||||||
Actuarial (gains) losses | (228 | ) | (1,014 | ) | (766 | ) | 1,988 | ||||||||||||||||||
Currency exchange rate changes | (1,462 | ) | (22 | ) | |||||||||||||||||||||
Accumulated and accrued postretirement benefit obligation at end of year | $ | 6,787 | $ | 8,514 | $ | 28,255 | $ | 28,415 | |||||||||||||||||
Increasing or Decreasing Current Healthcare Cost Trend Rates by One Percentage would affect Accumulated Postretirement Benefit Obligation and Net Postretirement Expense | ' | ||||||||||||||||||||||||
Increasing or decreasing current healthcare cost trend rates by 1% would affect our accumulated postretirement benefit obligation and net postretirement expense by the following amounts for the years ended May 31, 2014 and 2013: | |||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
1% Increase in trend rate | |||||||||||||||||||||||||
Accumulated Benefit Obligation | $ | 239 | $ | 296 | $ | 6,502 | $ | 9,080 | |||||||||||||||||
Postretirement Cost | 11 | 15 | 727 | 647 | |||||||||||||||||||||
1% Decrease in trend rate | |||||||||||||||||||||||||
Accumulated Benefit Obligation | $ | (209 | ) | $ | (265 | ) | $ | (5,011 | ) | $ | (3,802 | ) | |||||||||||||
Postretirement Cost | (10 | ) | (13 | ) | (534 | ) | (481 | ) | |||||||||||||||||
Pension_Plans_Tables
Pension Plans (Tables) (Pension Plan, Defined Benefit) | 12 Months Ended | ||||||||||||||||||||
31-May-14 | |||||||||||||||||||||
Pension Plan, Defined Benefit | ' | ||||||||||||||||||||
Changes in Benefit Obligations and Plan Assets | ' | ||||||||||||||||||||
The changes in benefit obligations and plan assets, as well as the funded status of our pension plans at May 31, 2014 and 2013, were as follows: | |||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Benefit obligation at beginning of year | $ | 402,686 | $ | 385,013 | $ | 185,993 | $ | 175,338 | |||||||||||||
Service cost | 27,056 | 25,950 | 4,375 | 4,337 | |||||||||||||||||
Interest cost | 18,039 | 16,240 | 7,382 | 7,246 | |||||||||||||||||
Benefits paid | (17,683 | ) | (16,503 | ) | (5,482 | ) | (8,761 | ) | |||||||||||||
Participant contributions | 831 | 929 | |||||||||||||||||||
Plan amendments | 384 | ||||||||||||||||||||
Actuarial (gains)/losses | 46,492 | (8,014 | ) | 6,348 | 9,820 | ||||||||||||||||
Settlements/Curtailments | (3,874 | ) | |||||||||||||||||||
Premiums paid | (138 | ) | (127 | ) | |||||||||||||||||
Currency exchange rate changes | 2,475 | 1,085 | |||||||||||||||||||
Benefit Obligation at End of Year | $ | 476,590 | $ | 402,686 | $ | 202,168 | $ | 185,993 | |||||||||||||
Fair value of plan assets at beginning of year | $ | 241,960 | $ | 198,208 | $ | 155,056 | $ | 137,318 | |||||||||||||
Actual return on plan assets | 30,547 | 35,708 | 17,432 | 15,859 | |||||||||||||||||
Employer contributions | 27,289 | 24,547 | 8,111 | 9,422 | |||||||||||||||||
Participant contributions | 831 | 929 | |||||||||||||||||||
Benefits paid | (17,683 | ) | (16,503 | ) | (5,482 | ) | (8,761 | ) | |||||||||||||
Premiums paid | (138 | ) | (127 | ) | |||||||||||||||||
Currency exchange rate changes | 1,269 | 416 | |||||||||||||||||||
Fair Value of Plan Assets at End of Year | $ | 282,113 | $ | 241,960 | $ | 177,079 | $ | 155,056 | |||||||||||||
(Deficit) of plan assets versus benefit obligations at end of year | $ | (194,477 | ) | $ | (160,726 | ) | $ | (25,089 | ) | $ | (30,937 | ) | |||||||||
Net Amount Recognized | $ | (194,477 | ) | $ | (160,726 | ) | $ | (25,089 | ) | $ | (30,937 | ) | |||||||||
Accumulated Benefit Obligation | $ | 385,492 | $ | 340,742 | $ | 188,835 | $ | 173,586 | |||||||||||||
Relationship between Plans Benefit Obligations and Assets | ' | ||||||||||||||||||||
The following table summarizes the relationship between our plans’ benefit obligations and assets: | |||||||||||||||||||||
U.S. Plans | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
(In thousands) | Benefit | Plan Assets | Benefit | Plan Assets | |||||||||||||||||
Obligation | Obligation | ||||||||||||||||||||
Plans with projected benefit obligation in excess of plan assets | $ | 476,590 | $ | 282,113 | $ | 402,686 | $ | 241,960 | |||||||||||||
Plans with accumulated benefit obligation in excess of plan assets | 385,492 | 282,113 | 340,742 | 241,960 | |||||||||||||||||
Non-U.S. Plans | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
(In thousands) | Benefit | Plan Assets | Benefit | Plan Assets | |||||||||||||||||
Obligation | Obligation | ||||||||||||||||||||
Plans with projected benefit obligation in excess of plan assets | $ | 105,327 | $ | 80,011 | $ | 185,993 | $ | 155,056 | |||||||||||||
Plans with accumulated benefit obligation in excess of plan assets | 103,734 | 80,011 | 94,423 | 70,642 | |||||||||||||||||
Plans with assets in excess of projected benefit obligations | 96,841 | 97,068 | |||||||||||||||||||
Plans with assets in excess of accumulated benefit obligations | 85,101 | 97,068 | 79,163 | 84,414 | |||||||||||||||||
Amounts in Accumulated Other Comprehensive Income (Loss) that have not yet been Recognized in Net Periodic Pension Cost, but will be Recognized in Consolidated Statements of Income | ' | ||||||||||||||||||||
The following table presents the amounts in accumulated other comprehensive income (loss) as of May 31, 2014 that have not yet been recognized in net periodic pension cost, but will be recognized in our Consolidated Statements of Income during the fiscal year ending May 31, 2015: | |||||||||||||||||||||
(In thousands) | U.S. Plans | Non-U.S. Plans | |||||||||||||||||||
Net actuarial loss | $ | (13,413 | ) | $ | (1,947 | ) | |||||||||||||||
Prior service (costs) | $ | (294 | ) | $ | (41 | ) | |||||||||||||||
Weighted-Average Actual and Target Allocation of Plan Assets | ' | ||||||||||||||||||||
The following tables illustrate the weighted-average actual and target allocation of plan assets: | |||||||||||||||||||||
U.S. Plans | |||||||||||||||||||||
Target Allocation | Actual Asset Allocation | ||||||||||||||||||||
as of May 31, | |||||||||||||||||||||
(Dollars in millions) | 2014 | 2014 | 2013 | ||||||||||||||||||
Equity securities | 55 | % | $ | 193.8 | $ | 146.2 | |||||||||||||||
Fixed income securities | 25 | % | 81.5 | 74.1 | |||||||||||||||||
Cash | 5.9 | 3.9 | |||||||||||||||||||
Other | 20 | % | 0.9 | 17.8 | |||||||||||||||||
Total assets | 100 | % | $ | 282.1 | $ | 242 | |||||||||||||||
Non-U.S. Plans | |||||||||||||||||||||
Target Allocation | Actual Asset Allocation | ||||||||||||||||||||
as of May 31, | |||||||||||||||||||||
(Dollars in millions) | 2014 | 2014 | 2013 | ||||||||||||||||||
Equity securities | 42 | % | $ | 84 | $ | 81.8 | |||||||||||||||
Fixed income securities | 51 | % | 63.9 | 46.7 | |||||||||||||||||
Cash | 1 | % | 0.5 | 0.2 | |||||||||||||||||
Property and other | 6 | % | 28.7 | 26.3 | |||||||||||||||||
Total assets | 100 | % | $ | 177.1 | $ | 155 | |||||||||||||||
Pension Plan Assets Categorized using Fair Value Hierarchy | ' | ||||||||||||||||||||
The following tables present our pension plan assets as categorized using the fair value hierarchy at May 31, 2014 and 2013: | |||||||||||||||||||||
U.S. Plans | |||||||||||||||||||||
(In thousands) | Quoted Prices in | Significant | Significant | Fair Value at | |||||||||||||||||
Active Markets | Other | Unobservable | May 31, 2014 | ||||||||||||||||||
for Identical | Observable | Inputs (Level 3) | |||||||||||||||||||
Assets (Level 1) | Inputs (Level 2) | ||||||||||||||||||||
U.S. Treasury and other government | $ | — | $ | 11,203 | $ | — | $ | 11,203 | |||||||||||||
State and municipal bonds | 456 | 456 | |||||||||||||||||||
Foreign bonds | 1,264 | 1,264 | |||||||||||||||||||
Mortgage-backed securities | 7,255 | 7,255 | |||||||||||||||||||
Corporate bonds | 17,254 | 17,254 | |||||||||||||||||||
Stocks - large cap | 34,442 | 34,442 | |||||||||||||||||||
Stocks - mid cap | 18,183 | 18,183 | |||||||||||||||||||
Stocks - small cap | 12,145 | 12,145 | |||||||||||||||||||
Stocks - international | 2,525 | 2,525 | |||||||||||||||||||
Mutual funds - equity | 126,513 | 126,513 | |||||||||||||||||||
Mutual funds - fixed | 44,094 | 44,094 | |||||||||||||||||||
Cash and cash equivalents | 5,869 | 5,869 | |||||||||||||||||||
Limited partnerships | 910 | 910 | |||||||||||||||||||
Total | $ | 73,164 | $ | 208,039 | $ | 910 | $ | 282,113 | |||||||||||||
Non-U.S. Plans | |||||||||||||||||||||
(In thousands) | Quoted Prices in | Significant | Significant | Fair Value at | |||||||||||||||||
Active Markets | Other | Unobservable | May 31, 2014 | ||||||||||||||||||
for Identical | Observable | Inputs (Level 3) | |||||||||||||||||||
Assets (Level 1) | Inputs (Level 2) | ||||||||||||||||||||
Pooled equities | $ | — | $ | 82,534 | $ | — | $ | 82,534 | |||||||||||||
Pooled fixed income | 63,657 | 63,657 | |||||||||||||||||||
Foreign bonds | 210 | 210 | |||||||||||||||||||
Insurance contracts | 28,658 | 28,658 | |||||||||||||||||||
Mutual funds | 1,448 | 1,448 | |||||||||||||||||||
Cash and cash equivalents | 572 | 572 | |||||||||||||||||||
Total | $ | 572 | $ | 147,849 | $ | 28,658 | $ | 177,079 | |||||||||||||
U.S. Plans | |||||||||||||||||||||
(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 | $ | — | $ | 10,288 | $ | — | $ | 10,288 | |||||||||||||
State and municipal bonds | 455 | 455 | |||||||||||||||||||
Foreign bonds | 2,342 | 2,342 | |||||||||||||||||||
Mortgage-backed securities | 7,332 | 7,332 | |||||||||||||||||||
Corporate bonds | 14,550 | 14,550 | |||||||||||||||||||
Stocks - large cap | 26,443 | 26,443 | |||||||||||||||||||
Stocks - mid cap | 15,423 | 15,423 | |||||||||||||||||||
Stocks - small cap | 11,451 | 11,451 | |||||||||||||||||||
Stocks - international | 2,643 | 2,643 | |||||||||||||||||||
Mutual funds - equity | 90,260 | 90,260 | |||||||||||||||||||
Mutual funds - fixed | 39,080 | 39,080 | |||||||||||||||||||
Cash and cash equivalents | 3,848 | 3,848 | |||||||||||||||||||
Limited partnerships | 1,159 | 1,159 | |||||||||||||||||||
Common/collective trusts | 16,686 | 16,686 | |||||||||||||||||||
Total | $ | 59,808 | $ | 164,307 | $ | 17,845 | $ | 241,960 | |||||||||||||
Non-U.S. Plans | |||||||||||||||||||||
(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) | ||||||||||||||||||||
Pooled equities | $ | — | $ | 80,550 | $ | — | $ | 80,550 | |||||||||||||
Pooled fixed income | 46,428 | 46,428 | |||||||||||||||||||
Foreign bonds | 261 | 261 | |||||||||||||||||||
Insurance contracts | 26,313 | 26,313 | |||||||||||||||||||
Mutual funds | 1,289 | 1,289 | |||||||||||||||||||
Cash and cash equivalents | 215 | 215 | |||||||||||||||||||
Total | $ | 215 | $ | 128,528 | $ | 26,313 | $ | 155,056 | |||||||||||||
Activity that Occurred for Level Three Assets | ' | ||||||||||||||||||||
The following table includes the activity that occurred during the years ended May 31, 2014 and 2013 for our Level 3 assets: | |||||||||||||||||||||
Actual Return on Plan Assets For: | |||||||||||||||||||||
(In thousands) | Balance at | Assets Still Held | Assets Sold | Purchases, Sales and | Balance at | ||||||||||||||||
Beginning of Period | at Reporting Date | During Year | Settlements, net (1) | End of Period | |||||||||||||||||
Year ended May 31, 2014 | $ | 44,158 | 564 | 47 | (15,201 | ) | $ | 29,568 | |||||||||||||
Year ended May 31, 2013 | 43,569 | 1,283 | 924 | (1,618 | ) | 44,158 | |||||||||||||||
-1 | Includes the impact of exchange rate changes during the year. |
Contingencies_and_Other_Accrue1
Contingencies and Other Accrued Losses (Tables) | 12 Months Ended | ||||||||||||
31-May-14 | |||||||||||||
Accrued Loss Reserves | ' | ||||||||||||
Accrued loss reserves consist of the following: | |||||||||||||
May 31, | 2014 | 2013 | |||||||||||
(In thousands) | |||||||||||||
Accrued product liability reserves | $ | 10,589 | $ | 15,582 | |||||||||
Accrued warranty reserves | 14,167 | 8,591 | |||||||||||
Accrued environmental reserves | 2,731 | 3,418 | |||||||||||
Total accrued loss reserves - Current | $ | 27,487 | $ | 27,591 | |||||||||
Accrued product liability reserves - noncurrent | $ | 29,653 | $ | 29,489 | |||||||||
Accrued warranty liability - noncurrent | 574 | 739 | |||||||||||
Accrued environmental reserves - noncurrent | 2,005 | 3,274 | |||||||||||
Total accrued loss reserves - Noncurrent | $ | 32,232 | $ | 33,502 | |||||||||
Changes in Accrued Warranty Balances | ' | ||||||||||||
The following table includes the changes in our accrued warranty balances: | |||||||||||||
Year Ended May 31, | 2014 | 2013 | 2012 | ||||||||||
(In thousands) | |||||||||||||
Beginning Balance | $ | 9,330 | $ | 14,751 | $ | 17,196 | |||||||
Deductions (1) | (19,155 | ) | (20,115 | ) | (18,143 | ) | |||||||
Provision charged to SG&A expense | 24,566 | 14,260 | 15,513 | ||||||||||
Acquisitions | — | 434 | 185 | ||||||||||
Ending Balance | $ | 14,741 | $ | 9,330 | $ | 14,751 | |||||||
-1 | Primarily claims paid during the year. |
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||
31-May-14 | |||||||||||||
Results of Reportable Segments | ' | ||||||||||||
The following tables reflect the results of our reportable segments consistent with our management philosophy, and represent the information we utilize, in conjunction with various strategic, operational and other financial performance criteria, in evaluating the performance of our portfolio of businesses. | |||||||||||||
Year Ended May 31, | 2014 | 2013 | 2012 | ||||||||||
(In thousands) | |||||||||||||
Net Sales | |||||||||||||
Industrial | $ | 2,769,657 | $ | 2,635,976 | $ | 2,535,238 | |||||||
Consumer | 1,606,696 | 1,442,679 | 1,242,178 | ||||||||||
Total | $ | 4,376,353 | $ | 4,078,655 | $ | 3,777,416 | |||||||
Income (Loss) Before Income Taxes | |||||||||||||
Industrial | |||||||||||||
Income Before Income Taxes (a) | $ | 295,751 | $ | 164,578 | $ | 278,676 | |||||||
Interest (Expense), Net (b) | (10,227 | ) | (10,318 | ) | (3,770 | ) | |||||||
EBIT (c) | $ | 305,978 | $ | 174,896 | $ | 282,446 | |||||||
Consumer | |||||||||||||
Income Before Income Taxes (a) | $ | 251,229 | $ | 190,611 | $ | 160,099 | |||||||
Interest (Expense), Net (b) | 122 | (10 | ) | 18 | |||||||||
EBIT (c) | $ | 251,107 | $ | 190,621 | $ | 160,081 | |||||||
Corporate/Other | |||||||||||||
(Expense) Before Income Taxes (a) | $ | (122,493 | ) | $ | (178,298 | ) | $ | (110,486 | ) | ||||
Interest (Expense), Net (b) | (55,131 | ) | (63,340 | ) | (64,107 | ) | |||||||
EBIT (c) | $ | (67,362 | ) | $ | (114,958 | ) | $ | (46,379 | ) | ||||
Consolidated | |||||||||||||
Income Before Income Taxes (a) | $ | 424,487 | $ | 176,891 | $ | 328,289 | |||||||
Interest (Expense), Net (b) | (65,236 | ) | (73,668 | ) | (67,859 | ) | |||||||
EBIT (c) | $ | 489,723 | $ | 250,559 | $ | 396,148 | |||||||
Identifiable Assets | |||||||||||||
Industrial | $ | 2,507,257 | $ | 2,461,163 | $ | 2,195,702 | |||||||
Consumer | 1,648,272 | 1,584,336 | 1,184,609 | ||||||||||
Corporate/Other | 222,836 | 75,348 | 181,502 | ||||||||||
Total | $ | 4,378,365 | $ | 4,120,847 | $ | 3,561,813 | |||||||
Capital Expenditures | |||||||||||||
Industrial | $ | 54,556 | $ | 50,025 | $ | 47,529 | |||||||
Consumer | 35,391 | 35,081 | 17,156 | ||||||||||
Corporate/Other | 3,845 | 6,261 | 6,930 | ||||||||||
Total | $ | 93,792 | $ | 91,367 | $ | 71,615 | |||||||
Depreciation and Amortization | |||||||||||||
Industrial | $ | 53,670 | $ | 53,549 | $ | 48,701 | |||||||
Consumer | 31,378 | 28,624 | 23,656 | ||||||||||
Corporate/Other | 5,021 | 4,163 | 3,666 | ||||||||||
Total | $ | 90,069 | $ | 86,336 | $ | 76,023 | |||||||
(a) | The presentation includes a reconciliation of Income (Loss) Before Income Taxes, a measure defined by Generally Accepted Accounting Principles (GAAP) in the United States, to EBIT. | ||||||||||||
(b) | Interest (expense), net includes the combination of interest expense and investment expense (income), net. | ||||||||||||
(c) | EBIT is defined as earnings (loss) before interest and taxes. We evaluate the profit performance of our segments based on income before income taxes, but also look to EBIT as a performance evaluation measure because interest expense is essentially related to corporate acquisitions, as opposed to segment operations. For that reason, we believe EBIT is also useful to investors as a metric in their investment decisions. EBIT should not be considered an alternative to, or more meaningful than, operating income as determined in accordance with GAAP, since EBIT omits the impact of interest and taxes in determining operating performance, which represent items necessary to our continued operations, given our level of indebtedness and ongoing tax obligations. Nonetheless, EBIT is a key measure expected by and useful to our fixed income investors, rating agencies and the banking community, all of whom believe, and we concur, that this measure is critical to the capital markets’ analysis of our segments’ core operating performance. We also evaluate EBIT because it is clear that movements in EBIT impact our ability to attract financing. Our underwriters and bankers consistently require inclusion of this measure in offering memoranda in conjunction with any debt underwriting or bank financing. EBIT may not be indicative of our historical operating results, nor is it meant to be predictive of potential future results. | ||||||||||||
Net Sales and Long Lived Assets by Regions | ' | ||||||||||||
Year Ended May 31, | 2014 | 2013 | 2012 | ||||||||||
(In thousands) | |||||||||||||
Net Sales (based on shipping location) (a) | |||||||||||||
United States | $ | 2,581,208 | $ | 2,404,835 | $ | 2,219,680 | |||||||
Foreign | |||||||||||||
Canada | 342,312 | 350,579 | 346,238 | ||||||||||
Europe | 1,031,686 | 908,139 | 919,124 | ||||||||||
Other Foreign | 421,147 | 415,102 | 292,374 | ||||||||||
Total Foreign | 1,795,145 | 1,673,820 | 1,557,736 | ||||||||||
Total | $ | 4,376,353 | $ | 4,078,655 | $ | 3,777,416 | |||||||
Long-Lived Assets (b) | |||||||||||||
United States | $ | 1,374,340 | $ | 1,311,640 | $ | 1,124,403 | |||||||
Foreign | |||||||||||||
Canada | 125,401 | 126,172 | 128,392 | ||||||||||
Europe | 340,146 | 340,592 | 315,228 | ||||||||||
United Kingdom | 259,829 | 237,124 | 192,155 | ||||||||||
Other Foreign | 208,411 | 213,726 | 64,316 | ||||||||||
Total Foreign | 933,787 | 917,614 | 700,091 | ||||||||||
Total | $ | 2,308,127 | $ | 2,229,254 | $ | 1,824,494 | |||||||
(a) | It is not practicable to obtain the information needed to disclose revenues attributable to each of our product lines. | ||||||||||||
(b) | Long-lived assets include all non-current assets, excluding non-current deferred income taxes. |
Quarterly_Information_Unaudite1
Quarterly Information (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
31-May-14 | |||||||||||||||||
Quarterly Result of Operations | ' | ||||||||||||||||
The following is a summary of the quarterly results of operations for the years ended May 31, 2014 and 2013: | |||||||||||||||||
For Quarter Ended | |||||||||||||||||
(In thousands, except per share amounts) | 31-Aug | 30-Nov | 28-Feb | 31-May | |||||||||||||
2014 | |||||||||||||||||
Net Sales | $ | 1,164,674 | $ | 1,071,487 | $ | 863,410 | $ | 1,276,782 | |||||||||
Gross Profit | $ | 499,072 | $ | 457,945 | $ | 358,026 | $ | 560,725 | |||||||||
Net Income Attributable to RPM International Inc. Stockholders | $ | 103,098 | $ | 63,562 | $ | 16,221 | $ | 108,779 | |||||||||
Basic Earnings Per Share | $ | 0.78 | $ | 0.48 | $ | 0.12 | $ | 0.82 | |||||||||
Diluted Earnings Per Share | $ | 0.77 | $ | 0.48 | $ | 0.12 | $ | 0.8 | |||||||||
Dividends Per Share | $ | 0.225 | $ | 0.24 | $ | 0.24 | $ | 0.24 | |||||||||
(In thousands, except per share amounts) | 31-Aug | 30-Nov | February 28 | 31-May | |||||||||||||
(a), (e) | (b), (e) | (c), (e) | (d) | ||||||||||||||
2013 | (Restated | ) | (Restated | ) | (Restated | ) | |||||||||||
Net Sales | $ | 1,046,714 | $ | 1,017,426 | $ | 843,736 | $ | 1,170,779 | |||||||||
Gross Profit | $ | 433,880 | $ | 425,001 | $ | 343,564 | $ | 500,274 | |||||||||
Net Income (Loss) Attributable to RPM International Inc. Stockholders | $ | 26,665 | $ | 30,924 | $ | (24,364 | ) | $ | 65,378 | ||||||||
Basic Earnings (Loss) Per Share | $ | 0.2 | $ | 0.23 | $ | (0.19 | ) | $ | 0.49 | ||||||||
Diluted Earnings (Loss) Per Share | $ | 0.2 | $ | 0.23 | $ | (0.19 | ) | $ | 0.49 | ||||||||
Dividends Per Share | $ | 0.215 | $ | 0.225 | $ | 0.225 | $ | 0.225 | |||||||||
(a) | For the quarter ended August 31, 2012, net sales and gross profit were reduced by $2.9 million and $5.4 million, respectively, for revised cost estimates on unprofitable contracts related to our industrial segment, and $5.6 million in exit costs associated with those activities that impacted pretax income. Additionally, we wrote down an investment in Kemrock totaling $40.3 million and recognized $5.0 million in bad debt from our loan to Kemrock. The combined impact on net income and earnings per share was $50.9 million and $0.38 per share, respectively. Lastly, we recorded a charge for $11.4 million ($7.2 million after-tax) in relation to the items described in (e) below. | ||||||||||||||||
(b) | For the quarter ended November 30, 2012, we wrote down our remaining investment in Kemrock, which impacted net income and earnings per share by $10.8 million and $0.09 per share, respectively. Additionally, we recorded a charge for $16.9 million ($10.8 million after-tax) in relation to the items described in (e) below. | ||||||||||||||||
(c) | For the quarter ended February 28, 2013, net income was impacted by $1.6 million for the impact of a strategic repositioning of certain industrial segment operations in Brazil. Additionally, we recorded a charge for $40.5 million ($34.6 million after-tax) in relation to the items described in (e) below. | ||||||||||||||||
(d) | For the quarter ended May 31, 2013, we recorded $23.9 million in restructuring expense, including $3.9 million in inventory markdowns. We also recorded bad debt for the remaining amount of our loan to Kemrock totaling $4.0 million and wrote off our remaining investment in Kemrock common stock and in Kemrock convertible debt for a combined loss of $18.5 million. Additionally, we reduced our estimated accrual for our agreement in principle with the GSA by $3.7 million. The combined impact of these items on net income and earnings per share for the fourth quarter was $30.0 million and $0.23 per share, respectively. | ||||||||||||||||
(e) | During August 2014, we determined that there was an error in the timing of the disclosure and accrual of loss reserves associated with our settlement of the GSA and DOJ investigation into compliance issues related to GSA contracts at our Tremco Group. We filed amended Quarterly Reports on Form 10-Q/A in August 2014 with corrected financial statements for the periods ended August 31, 2012, November 30, 2012 and February 28, 2013. The corrections reduced net income by $7.2 million and $10.8 million for the quarterly periods ended August 31, 2012 and November 30, 2012, respectively, and increased net income for the quarterly period ended February 28, 2013 by $18.0 million. The corrections reduced basic and diluted earnings per share by $0.06 for the quarter ended August 31, 2012; and by $0.09 and $0.08, respectively, for the quarterly period ended November 30, 2012; and increased basic and diluted earnings per share by $0.14 for the quarterly period ended February 28, 2013. The figures presented in the table above represent the corrected amounts for each quarter. |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||
31-May-13 | Aug. 31, 2012 | 31-May-10 | 31-May-14 | 31-May-13 | 31-May-12 | 31-May-14 | 31-May-13 | 31-May-12 | 31-May-13 | 31-May-14 | 31-May-12 | 31-May-11 | 31-May-12 | 31-May-14 | 31-May-13 | 31-May-13 | 31-May-12 | 31-May-13 | |
Entity | Entity | Bond | Third Party | Third Party | Third Party | Kemrock Industries and Exports Limited | Kemrock Industries and Exports Limited | Kemrock Industries and Exports Limited | Kemrock Industries and Exports Limited | Kemrock global depository receipts | Consumer Segment | Consumer Segment | Conversion option, Kemrock 5.5% bonds | Conversion option, Kemrock 5.5% bonds | Conversion option, Kemrock 5.5% bonds | ||||
Segment | Bond | Entity | Entity | Kemrock Industries and Exports Limited | |||||||||||||||
Significant Of Accounting Policies [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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of business acquisition | ' | ' | ' | 4 | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of reportable segments | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | 2 | ' | ' | ' |
Shipping costs | ' | ' | ' | ' | ' | ' | 133,000,000 | 125,600,000 | 112,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Bad debt expense | 4,000,000 | 5,000,000 | ' | 7,600,000 | 18,800,000 | 5,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans deemed uncollectible, recorded as loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Advertising cost | ' | ' | ' | 49,600,000 | 43,200,000 | 34,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Research and development cost | ' | ' | ' | 54,600,000 | 49,300,000 | 45,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition of equity method investment, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 870,000 | 3,200,000 | 693,072 | ' | ' | ' | ' | ' |
Equity method investment, carrying value | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | 24,200,000 | ' | ' | ' | ' | ' | ' |
Equity method investment, ownership percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 23.00% | 18.00% | ' | ' | ' | ' | ' | ' |
Purchase of global depository receipt, value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,200,000 | ' | ' | ' | ' | ' |
Investment in affiliate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22,700,000 | ' |
Investment in affiliate, interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.50% | ' |
Debt securities, conversion date, earliest date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4-Jun-12 | ' |
Debt securities, conversion date, latest date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12-Jun-17 | ' |
Impairment loss on equity method investment | ' | ' | ' | 2,888,000 | -44,671,000 | 8,079,000 | ' | ' | ' | -55,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment of investments | 18,500,000 | 40,300,000 | ' | ' | 51,092,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13,700,000 | ' | 13,700,000 |
Impact of adjustment for accumulated foreign currency translation | ' | ' | ' | -6,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Undistributed foreign earnings | ' | ' | ' | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated tax impact | ' | ' | ' | 2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign subsidiary undistributed earnings | ' | ' | ' | $1,200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets_Acquired_and_Liabilitie
Assets Acquired and Liabilities Assumed on Acquisition (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | 31-May-14 | 31-May-13 | ||
Acquisitions | ' | ' | ||
Current assets | $10,874 | $67,397 | ||
Property, plant and equipment | 4,234 | 46,306 | ||
Goodwill | 21,296 | 260,789 | ||
Tradenames - indefinite lives | 2,000 | 38,448 | ||
Other intangible assets | 19,462 | 103,593 | ||
Other long-term assets | ' | 8,171 | ||
Total Assets Acquired | 57,866 | 524,704 | ||
Liabilities assumed | -18,361 | -120,372 | ||
Net Assets Acquired | $39,505 | [1] | $404,332 | [2] |
Weighted-average other intangible asset amortization life (in years) | '14 years | '9 years | ||
[1] | Figure includes cash acquired of $0.3 million. | |||
[2] | Figure includes cash acquired of $6.9 million. |
Assets_Acquired_and_Liabilitie1
Assets Acquired and Liabilities Assumed on Acquisition (Parenthetical) (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | 31-May-14 | 31-May-13 |
Schedule of Business Acquisitions, Purchase Price Allocation [Line Items] | ' | ' |
Business acquisition cash acquired | $0.30 | $6.90 |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Detail) (USD $) | 31-May-14 | 31-May-13 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Total property, plant and equipment, at cost | $1,191,676 | $1,128,123 |
Less: allowance for depreciation and amortization | 658,871 | 635,760 |
Property, plant and equipment, net | 532,805 | 492,363 |
Land [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total property, plant and equipment, at cost | 50,245 | 45,281 |
Building And Leasehold Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total property, plant and equipment, at cost | 328,269 | 311,869 |
Machinery and Equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total property, plant and equipment, at cost | $813,162 | $770,973 |
Useful_Lives_Detail
Useful Lives (Detail) | 12 Months Ended |
31-May-14 | |
Minimum | Land Improvements | ' |
Property Plant and Equipment Estimated Useful Lives [Line Items] | ' |
Property Plant and equipment useful life | '3 years |
Minimum | Building and Building Improvements | ' |
Property Plant and Equipment Estimated Useful Lives [Line Items] | ' |
Property Plant and equipment useful life | '3 years |
Minimum | Machinery and Equipment | ' |
Property Plant and Equipment Estimated Useful Lives [Line Items] | ' |
Property Plant and equipment useful life | '1 year |
Maximum | Land Improvements | ' |
Property Plant and Equipment Estimated Useful Lives [Line Items] | ' |
Property Plant and equipment useful life | '30 years |
Maximum | Building and Building Improvements | ' |
Property Plant and Equipment Estimated Useful Lives [Line Items] | ' |
Property Plant and equipment useful life | '50 years |
Maximum | Machinery and Equipment | ' |
Property Plant and Equipment Estimated Useful Lives [Line Items] | ' |
Property Plant and equipment useful life | '30 years |
Major_Class_of_Inventory_Detai
Major Class of Inventory (Detail) (USD $) | 31-May-14 | 31-May-13 |
In Thousands, unless otherwise specified | ||
Inventory [Line Items] | ' | ' |
Raw material and supplies | $213,981 | $185,590 |
Finished goods | 399,663 | 363,090 |
Total Inventory | $613,644 | $548,680 |
Investment_Income_Net_Detail
Investment (Income), Net (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
Net Investment Income [Line Items] | ' | ' | ' |
Interest (income) | ($6,327) | ($6,814) | ($5,031) |
Loss (gain) on sale of marketable securities | -7,353 | -11,664 | 862 |
Other-than-temporary impairment on securities | 161 | 14,279 | 1,604 |
Dividend (income) | -2,196 | -1,979 | -1,621 |
Investment (income), net | ($15,715) | ($6,178) | ($4,186) |
Other_Income_Expense_Net_Detai
Other (Income) Expense, Net (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
Component Of Other Expense Income Nonoperating [Line Items] | ' | ' | ' |
Royalty (income), net | ($1,195) | ($2,069) | ($1,520) |
Loss on Brazil operational repositioning | ' | 6,087 | ' |
Loss on Kemrock conversion option | ' | 9,030 | ' |
(Income) loss related to unconsolidated equity affiliates | -2,888 | 44,671 | -8,079 |
Other (income) expense, net | ($4,083) | $57,719 | ($9,599) |
Restructuring_Additional_Infor
Restructuring - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | ||||||
31-May-13 | 31-May-14 | 31-May-13 | 31-May-14 | 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 | $23,900,000 | $243,000 | $20,072,000 | $243,000 | $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 | ' | ' | ' | $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 | 12 Months Ended | |
In Thousands, unless otherwise specified | 31-May-13 | 31-May-14 | 31-May-13 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Beginning balance | ' | $13,053 | ' |
Charge to expense | -23,900 | -243 | -20,072 |
Cash payments | ' | -10,728 | ' |
Noncash and foreign exchange impacts | ' | 381 | ' |
Ending balance | 13,053 | 2,463 | 13,053 |
Employee Severance | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Beginning balance | ' | 12,656 | ' |
Charge to expense | ' | -243 | ' |
Cash payments | ' | -10,688 | ' |
Noncash and foreign exchange impacts | ' | 357 | ' |
Ending balance | ' | 2,082 | ' |
Other | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Beginning balance | ' | 397 | ' |
Cash payments | ' | -40 | ' |
Noncash and foreign exchange impacts | ' | 24 | ' |
Ending balance | ' | $381 | ' |
Change_in_Carrying_Amount_of_g
Change in Carrying Amount of goodwill By Reportable Segment (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | 31-May-14 | 31-May-13 |
Goodwill [Line Items] | ' | ' |
Goodwill beginning balance | $1,113,831 | $849,346 |
Acquisitions | 21,296 | 260,789 |
Translation adjustments | 12,247 | 3,696 |
Goodwill ending balance | 1,147,374 | 1,113,831 |
Industrial Segment | ' | ' |
Goodwill [Line Items] | ' | ' |
Goodwill beginning balance | 564,818 | 465,891 |
Acquisitions | 3,147 | 98,718 |
Translation adjustments | 4,193 | 209 |
Goodwill ending balance | 572,158 | 564,818 |
Consumer Segment | ' | ' |
Goodwill [Line Items] | ' | ' |
Goodwill beginning balance | 549,013 | 383,455 |
Acquisitions | 18,149 | 162,071 |
Translation adjustments | 8,054 | 3,487 |
Goodwill ending balance | $575,216 | $549,013 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
Intangible Assets And Goodwill [Line Items] | ' | ' | ' |
Intangible assets accumulated impairment | $14.90 | $14.90 | ' |
Intangible asset amortization expense | 28.2 | 27.7 | 21.4 |
Future amortization expense of intangible asset in 2015 | 26.5 | ' | ' |
Future amortization expense of intangible asset in 2016 | 25.6 | ' | ' |
Future amortization expense of intangible asset in 2017 | 25.1 | ' | ' |
Future amortization expense of intangible asset in 2018 | 24.4 | ' | ' |
Future amortization expense of intangible asset in 2019 | $23.10 | ' | ' |
Other_Intangible_Assets_Major_
Other Intangible Assets Major Classes (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | 31-May-14 | 31-May-13 |
Intangible Assets by Major Class [Line Items] | ' | ' |
Total Other Intangible Assets gross carrying amount | 710,380 | 679,273 |
Amortized intangible assets, gross carrying amount | 518,863 | 491,834 |
Amortized intangible assets, accumulated amortization | 250,844 | 219,660 |
Amortized intangible assets, net other intangible assets | 268,019 | 272,174 |
Total Other Intangible Assets, net | 459,536 | 459,613 |
Tradenames and Trademarks | ' | ' |
Intangible Assets by Major Class [Line Items] | ' | ' |
Amortized intangible assets, gross carrying amount | 33,219 | 30,223 |
Amortized intangible assets, accumulated amortization | 15,435 | 13,222 |
Amortized intangible assets, net other intangible assets | 17,784 | 17,001 |
Indefinite-lived intangible assets, net other intangible assets | 191,517 | 187,439 |
Tradenames and Trademarks | Minimum | ' | ' |
Intangible Assets by Major Class [Line Items] | ' | ' |
Amortized intangible assets, amortization period | '3 years | '2 years |
Tradenames and Trademarks | Maximum | ' | ' |
Intangible Assets by Major Class [Line Items] | ' | ' |
Amortized intangible assets, amortization period | '40 years | '40 years |
Formulae | ' | ' |
Intangible Assets by Major Class [Line Items] | ' | ' |
Amortized intangible assets, gross carrying amount | 226,200 | 216,418 |
Amortized intangible assets, accumulated amortization | 124,413 | 113,315 |
Amortized intangible assets, net other intangible assets | 101,787 | 103,103 |
Formulae | Minimum | ' | ' |
Intangible Assets by Major Class [Line Items] | ' | ' |
Amortized intangible assets, amortization period | '3 years | '3 years |
Formulae | Maximum | ' | ' |
Intangible Assets by Major Class [Line Items] | ' | ' |
Amortized intangible assets, amortization period | '33 years | '33 years |
Customer-Related Intangible Assets | ' | ' |
Intangible Assets by Major Class [Line Items] | ' | ' |
Amortized intangible assets, gross carrying amount | 201,968 | 196,376 |
Amortized intangible assets, accumulated amortization | 80,667 | 66,077 |
Amortized intangible assets, net other intangible assets | 121,301 | 130,299 |
Customer-Related Intangible Assets | Minimum | ' | ' |
Intangible Assets by Major Class [Line Items] | ' | ' |
Amortized intangible assets, amortization period | '3 years | '3 years |
Customer-Related Intangible Assets | Maximum | ' | ' |
Intangible Assets by Major Class [Line Items] | ' | ' |
Amortized intangible assets, amortization period | '33 years | '33 years |
Other Intangible Assets | ' | ' |
Intangible Assets by Major Class [Line Items] | ' | ' |
Amortized intangible assets, gross carrying amount | 57,476 | 48,817 |
Amortized intangible assets, accumulated amortization | 30,329 | 27,046 |
Amortized intangible assets, net other intangible assets | 27,147 | 21,771 |
Other Intangible Assets | Minimum | ' | ' |
Intangible Assets by Major Class [Line Items] | ' | ' |
Amortized intangible assets, amortization period | '2 years | '1 year |
Other Intangible Assets | Maximum | ' | ' |
Intangible Assets by Major Class [Line Items] | ' | ' |
Amortized intangible assets, amortization period | '40 years | '40 years |
Summary_of_Marketable_Securiti
Summary of Marketable Securities by Asset Type (Detail) (USD $) | 31-May-14 | 31-May-13 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-Sale Securities, Amortized Cost | $129,660 | $105,483 |
Available-for-Sale Securities, Gross Unrealized Gains | 14,645 | 8,644 |
Available-for-Sale Securities, Gross Unrealized Losses | -1,425 | -1,034 |
Available-for-Sale Securities, Fair Value (Net Carrying Amount) | 142,880 | 113,093 |
Equity securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-Sale Securities, Amortized Cost | 106,838 | 83,094 |
Available-for-Sale Securities, Gross Unrealized Gains | 14,223 | 8,089 |
Available-for-Sale Securities, Gross Unrealized Losses | -1,261 | -891 |
Available-for-Sale Securities, Fair Value (Net Carrying Amount) | 119,800 | 90,292 |
Equity securities | Stocks | Foreign | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-Sale Securities, Amortized Cost | 984 | 1,090 |
Available-for-Sale Securities, Gross Unrealized Gains | 669 | 244 |
Available-for-Sale Securities, Gross Unrealized Losses | -20 | ' |
Available-for-Sale Securities, Fair Value (Net Carrying Amount) | 1,633 | 1,334 |
Equity securities | Stocks | Domestic | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-Sale Securities, Amortized Cost | 31,071 | 24,492 |
Available-for-Sale Securities, Gross Unrealized Gains | 8,965 | 5,265 |
Available-for-Sale Securities, Gross Unrealized Losses | -132 | -392 |
Available-for-Sale Securities, Fair Value (Net Carrying Amount) | 39,904 | 29,365 |
Equity securities | Mutual funds | Foreign | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-Sale Securities, Amortized Cost | 30,541 | 18,328 |
Available-for-Sale Securities, Gross Unrealized Gains | 2,799 | 1,901 |
Available-for-Sale Securities, Gross Unrealized Losses | ' | -7 |
Available-for-Sale Securities, Fair Value (Net Carrying Amount) | 33,340 | 20,222 |
Equity securities | Mutual funds | Domestic | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-Sale Securities, Amortized Cost | 44,242 | 39,184 |
Available-for-Sale Securities, Gross Unrealized Gains | 1,790 | 679 |
Available-for-Sale Securities, Gross Unrealized Losses | -1,109 | -492 |
Available-for-Sale Securities, Fair Value (Net Carrying Amount) | 44,923 | 39,371 |
Fixed maturity | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-Sale Securities, Amortized Cost | 22,822 | 22,389 |
Available-for-Sale Securities, Gross Unrealized Gains | 422 | 555 |
Available-for-Sale Securities, Gross Unrealized Losses | -164 | -143 |
Available-for-Sale Securities, Fair Value (Net Carrying Amount) | 23,080 | 22,801 |
Fixed maturity | U.S. Treasury and other government | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-Sale Securities, Amortized Cost | 21,156 | 20,528 |
Available-for-Sale Securities, Gross Unrealized Gains | 152 | 247 |
Available-for-Sale Securities, Gross Unrealized Losses | -164 | -139 |
Available-for-Sale Securities, Fair Value (Net Carrying Amount) | 21,144 | 20,636 |
Fixed maturity | Corporate bonds | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-Sale Securities, Amortized Cost | 1,544 | 1,724 |
Available-for-Sale Securities, Gross Unrealized Gains | 212 | 244 |
Available-for-Sale Securities, Fair Value (Net Carrying Amount) | 1,756 | 1,968 |
Fixed maturity | 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 maturity | Mortgage-backed securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-Sale Securities, Amortized Cost | 85 | 100 |
Available-for-Sale Securities, Gross Unrealized Gains | 55 | 60 |
Available-for-Sale Securities, Gross Unrealized Losses | ' | -4 |
Available-for-Sale Securities, Fair Value (Net Carrying Amount) | $140 | $156 |
Marketable_Securities_Addition
Marketable Securities - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
31-May-13 | Aug. 31, 2012 | 31-May-14 | 31-May-13 | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Available-for-sale securities, current | $49,100,000 | ' | $71,900,000 | $49,100,000 |
Available-for-sale securities, long-term | 64,000,000 | ' | 71,000,000 | 64,000,000 |
Gross gains realized on sales of investments | ' | ' | 7,500,000 | 12,300,000 |
Gross losses realized on sales of investments | ' | ' | 100,000 | 600,000 |
Losses recognized for securities deemed to have other-than-temporary impairments | ' | ' | 200,000 | 14,300,000 |
Impairment of investments | 18,500,000 | 40,300,000 | ' | 51,092,000 |
Conversion option, Kemrock 5.5% bonds | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Impairment of investments | ' | ' | ' | $13,700,000 |
Maximum | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Investments with unrealized loss, percentage of fair values less than original cost | ' | ' | 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 $) | 31-May-14 | 31-May-13 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total investments with unrealized losses, fair value | $35,465 | $36,582 |
Unrealized losses with a loss position for less than 12 months, fair value | 16,611 | 36,327 |
Unrealized losses with a loss position for more than 12 months, fair value | 18,854 | 255 |
Total investments with unrealized losses, gross unrealized losses | -1,425 | -1,034 |
Unrealized losses with a loss position for less than 12 months, gross unrealized losses | -845 | -956 |
Unrealized losses with a loss position for more than 12 months, gross unrealized losses | ($580) | ($78) |
Net_Carrying_Values_of_Debt_Se
Net Carrying Values of Debt Securities by Contractual Maturity (Detail) (USD $) | 31-May-14 | 31-May-13 |
In Thousands, unless otherwise specified | ||
Available-for-Sale Securities, amortized cost | ' | ' |
Less than one year, amortized cost | $3,198 | ' |
One year through five years, amortized cost | 14,984 | ' |
Six years through ten years, amortized cost | 3,271 | ' |
After ten years, amortized cost | 1,369 | ' |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Total | 22,822 | ' |
Available-for-Sale Securities, fair value | ' | ' |
Less than one year, fair value | 3,214 | ' |
One year through five years, fair value | 15,015 | ' |
Six years through ten years, fair value | 3,304 | ' |
After ten years, fair value | 1,547 | ' |
Marketable debt securities, carrying value | $23,080 | $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 $) | 31-May-14 | 31-May-13 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Contingent consideration | ($81,296) | ($69,020) |
Assets (liabilities) at fair value | 44,616 | 29,274 |
Foreign currency forward contract | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Foreign currency forward contract | 2,582 | ' |
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 | -19,550 | -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 | 21,144 | 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 | 140 | 156 |
Corporate bonds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets measured at fair value on recurring basis | 1,756 | 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 | 1,633 | 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 | 39,904 | 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 | 33,340 | 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 | 44,923 | 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 | 41,537 | 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 | 1,633 | 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 | 39,904 | 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 | 84,375 | 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 | 2,582 | ' |
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 | -19,550 | -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 | 21,144 | 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 | 140 | 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 | 1,756 | 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 | 33,340 | 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 | 44,923 | 39,371 |
Significant Unobservable Inputs (Level 3) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Contingent consideration | -81,296 | -69,020 |
Assets (liabilities) at fair value | ($81,296) | ($69,020) |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) | 12 Months Ended | 12 Months Ended | |||||
31-May-14 | 31-May-14 | 31-May-14 | 31-May-14 | 31-May-13 | 31-May-14 | 31-May-13 | |
USD ($) | EUR (€) | Unsecured Senior Notes | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | |
Foreign currency forward contract | Foreign currency forward contract | Cross-currency swap | Cross-currency swap | ||||
USD ($) | USD ($) | USD ($) | USD ($) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Foreign currency contracts, fair value of liability | ' | ' | ' | ' | $4,751,000 | $19,550,000 | $10,048,000 |
Debt, interest rate | ' | ' | 6.70% | ' | ' | ' | ' |
Debt, due date | ' | ' | 1-Nov-15 | ' | ' | ' | ' |
Effective euro fixed-rate borrowing | 5.31% | ' | ' | ' | ' | ' | ' |
Notional principal amount of cross-currency swap | 150,000,000 | 125,000,000 | ' | ' | ' | ' | ' |
Foreign currency forward contract | ' | ' | ' | 2,582,000 | ' | ' | ' |
Increase in obligation due to current-year acquisitions | 17,300,000 | ' | ' | ' | ' | ' | ' |
Settlements of contingent obligations | $5,000,000 | ' | ' | ' | ' | ' | ' |
Fair_Value_and_Carrying_Value_
Fair Value and Carrying Value of Financial Instruments and Long-Term Debt (Detail) (USD $) | 31-May-14 | 31-May-13 | 31-May-12 | 31-May-11 |
In Thousands, unless otherwise specified | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents, carrying value | $332,868 | $343,554 | $315,968 | $435,011 |
Marketable equity securities, carrying value | 119,800 | 90,292 | ' | ' |
Marketable debt securities, carrying value | 23,080 | 22,801 | ' | ' |
Long-term debt, including current portion, carrying value | 1,351,627 | 1,373,697 | ' | ' |
Cash and cash equivalents, fair value | 332,868 | 343,554 | ' | ' |
Marketable securities, fair value | 142,880 | 113,093 | ' | ' |
Long-term debt, including current portion, fair value | 1,516,062 | 1,501,850 | ' | ' |
Equity securities | ' | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Marketable securities, fair value | 119,800 | 90,292 | ' | ' |
Fixed maturity | ' | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Marketable securities, fair value | $23,080 | $22,801 | ' | ' |
Description_of_Long_Term_Debt_
Description of Long Term Debt (Detail) (USD $) | 31-May-14 | 31-May-13 | ||
In Thousands, unless otherwise specified | ||||
Debt Instrument [Line Items] | ' | ' | ||
Debt | $1,351,627 | $1,373,697 | ||
Less: current portion | 5,662 | 4,521 | ||
Total Long-Term Debt, Less Current Maturities | 1,345,965 | 1,369,176 | ||
Unsecured 6.25% senior notes due December 15, 2013 | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Debt | ' | 200,000 | ||
Unsecured 6.70% senior notes due November 1, 2015 | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Debt | 150,000 | [1] | 150,000 | [1] |
Unsecured 6.50% senior notes due February 14, 2018 | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Debt | 248,627 | [2] | 248,259 | [2] |
Unsecured 6.125% senior note due October 15, 2019 | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Debt | 458,163 | [3] | 459,457 | [3] |
Unsecured 2.25% senior convertible notes due December 15, 2020 | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Debt | 185,474 | ' | ||
Unsecured 3.45% senior notes due November 15, 2022 | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Debt | 300,000 | 300,000 | ||
Revolving Credit Facilities | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Debt | 2,090 | [4] | 7,701 | [4] |
Other Borrowings | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Other obligations, including capital leases and unsecured notes payable at various rates of interest due in installments through 2017. | $7,273 | $8,280 | ||
[1] | We entered into a cross-currency swap, which fixed the interest and principal payments in euros, resulting in an effective fixed-rate borrowing of 5.31%. | |||
[2] | The $250.0 million aggregate principal amount of the notes due 2018 is adjusted for the amortization of the original issue discount, which approximated $1.4 million and $1.7 million at May 31, 2014 and 2013, respectively. The original issue discount effectively reduced the ultimate proceeds from the financing. The effective interest rate on the notes, including the amortization of the discount, is 6.704% for both years presented. | |||
[3] | Includes the combination of the October 2009 initial issuance of $300.0 million aggregate principal amount and the May 2011 issuance of an additional $150.0 million aggregate principal amount of these notes. The $300.0 million aggregate principal amount of the notes due 2019 from the initial issuance is adjusted for the amortization of the original issue discount, which approximated $0.2 million at May 31, 2014 and 2013. The original issue discount effectively reduced the ultimate proceeds from the October 2009 financing. The effective interest rate on the notes issued in October 2009, including the amortization of the discount, is 6.139%. The additional $150.0 million aggregate principal amount of the notes due 2019 issued in May 2011 is adjusted for the unamortized premium received at issuance, which approximated $8.3 million and $9.7 million at May 31, 2014 and 2013, respectively. The premium effectively increased the proceeds from the financing. The effective interest rate on the $150.0 million notes issued in May 2011 is 4.934%. | |||
[4] | Interest was tied to AUD LIBOR at May 31, 2014, and averaged 3.96% for AUD denominated debt. Interest was tied to AUD LIBOR at May 31, 2013, and averaged 4.16% for AUD denominated debt. |
Description_of_Long_Term_Debt_1
Description of Long Term Debt (Parenthetical) (Detail) (USD $) | 31-May-14 | Jun. 29, 2012 | Dec. 09, 2013 | 31-May-14 | 31-May-13 | 31-May-14 | 31-May-13 | 31-May-14 | 31-May-13 | 31-May-14 | 31-May-13 | 27-May-11 | Oct. 09, 2009 | 31-May-14 | 31-May-13 | Oct. 23, 2012 | 31-May-14 | 31-May-13 | Oct. 23, 2012 | 31-May-14 | 31-May-13 | 31-May-14 | 31-May-13 | 31-May-14 | 31-May-13 | 31-May-14 | 31-May-13 | ||||||||
Unsecured 6.25% senior notes due December 15, 2013 | Unsecured 6.25% senior notes due December 15, 2013 | Unsecured 6.25% senior notes due December 15, 2013 | Unsecured 6.70% senior notes due November 1, 2015 | Unsecured 6.70% senior notes due November 1, 2015 | Unsecured 6.50% senior notes due February 14, 2018 | Unsecured 6.50% senior notes due February 14, 2018 | Unsecured 6.125% senior note due October 15, 2019 | Unsecured 6.125% senior note due October 15, 2019 | Unsecured 6.125% senior note due October 15, 2019 | Unsecured 6.125% senior note due October 15, 2019 | Unsecured 2.25% senior convertible notes due December 15, 2020 | Unsecured 2.25% senior convertible notes due December 15, 2020 | Unsecured 3.45% senior notes due November 15, 2022 | Unsecured 3.45% senior notes due November 15, 2022 | Unsecured 3.45% senior notes due November 15, 2022 | Unsecured 3.45% senior notes due November 15, 2022 | Revolving Credit Facilities | Revolving Credit Facilities | Other Borrowings | Other Borrowings | Unsecured 6.25% senior notes due December 15, 2013 | Unsecured 6.25% senior notes due December 15, 2013 | London Interbank Offered Rate (LIBOR) | London Interbank Offered Rate (LIBOR) | |||||||||||
Revolving Credit Facilities | Revolving Credit Facilities | ||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Debt | ' | ' | ' | ' | ' | ' | ' | $250,000,000 | ' | ' | ' | ' | ' | $205,000,000 | $205,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Credit facility borrowing capacity | ' | 600,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 600,000,000 | 600,000,000 | ' | ' | ' | ' | ' | ' | ||||||||
Debt, interest rate | ' | ' | ' | ' | 6.25% | 6.70% | [1] | 6.70% | [1] | 6.50% | [2] | 6.50% | [2] | 6.13% | [3] | 6.13% | [3] | ' | ' | 2.25% | 2.25% | ' | 3.45% | 3.45% | 3.45% | ' | ' | ' | ' | 6.25% | 6.25% | ' | ' | ||
Debt, due date | ' | ' | 15-Dec-13 | 15-Dec-13 | 15-Dec-13 | 1-Nov-15 | [1] | 1-Nov-15 | [1] | 14-Feb-18 | [2] | 14-Feb-18 | [2] | 15-Oct-19 | [3] | 15-Oct-19 | [3] | ' | ' | 15-Dec-20 | 15-Dec-20 | ' | 15-Nov-22 | 15-Nov-22 | ' | 29-Jun-17 | [4] | 29-Jun-17 | [4] | ' | ' | ' | ' | ' | ' |
Debt, maturity year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2022 | ' | ' | ' | ' | ' | '2017 | '2017 | ' | ' | ' | ' | ||||||||
Effective euro fixed-rate borrowing | 5.31% | ' | ' | ' | ' | 5.31% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Debt instrument, effective interest rate | ' | ' | ' | ' | ' | ' | ' | 6.70% | 6.70% | ' | ' | 4.93% | 6.14% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Amortization of debt discount premium | ' | ' | ' | ' | ' | ' | ' | 1,400,000 | 1,700,000 | 200,000 | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Debt | ' | ' | ' | ' | 200,000,000 | ' | ' | ' | ' | ' | ' | 150,000,000 | 300,000,000 | ' | ' | ' | ' | ' | 300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Unamortization of debt premium | ' | ' | ' | ' | ' | ' | ' | ' | ' | $8,300,000 | $9,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Average interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.96% | 4.16% | ||||||||
[1] | We entered into a cross-currency swap, which fixed the interest and principal payments in euros, resulting in an effective fixed-rate borrowing of 5.31%. | ||||||||||||||||||||||||||||||||||
[2] | The $250.0 million aggregate principal amount of the notes due 2018 is adjusted for the amortization of the original issue discount, which approximated $1.4 million and $1.7 million at May 31, 2014 and 2013, respectively. The original issue discount effectively reduced the ultimate proceeds from the financing. The effective interest rate on the notes, including the amortization of the discount, is 6.704% for both years presented. | ||||||||||||||||||||||||||||||||||
[3] | Includes the combination of the October 2009 initial issuance of $300.0 million aggregate principal amount and the May 2011 issuance of an additional $150.0 million aggregate principal amount of these notes. The $300.0 million aggregate principal amount of the notes due 2019 from the initial issuance is adjusted for the amortization of the original issue discount, which approximated $0.2 million at May 31, 2014 and 2013. The original issue discount effectively reduced the ultimate proceeds from the October 2009 financing. The effective interest rate on the notes issued in October 2009, including the amortization of the discount, is 6.139%. The additional $150.0 million aggregate principal amount of the notes due 2019 issued in May 2011 is adjusted for the unamortized premium received at issuance, which approximated $8.3 million and $9.7 million at May 31, 2014 and 2013, respectively. The premium effectively increased the proceeds from the financing. The effective interest rate on the $150.0 million notes issued in May 2011 is 4.934%. | ||||||||||||||||||||||||||||||||||
[4] | Interest was tied to AUD LIBOR at May 31, 2014, and averaged 3.96% for AUD denominated debt. Interest was tied to AUD LIBOR at May 31, 2013, and averaged 4.16% for AUD denominated debt. |
Borrowings_Additional_Informat
Borrowings - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||||||||||||||||||||
Dec. 03, 2013 | Jun. 29, 2012 | 31-May-14 | 31-May-13 | 31-May-12 | Dec. 03, 2013 | Jun. 29, 2012 | 9-May-14 | Oct. 23, 2012 | Dec. 09, 2013 | 31-May-14 | 31-May-13 | Oct. 23, 2012 | 31-May-14 | 31-May-13 | Oct. 23, 2012 | Jun. 29, 2012 | Jun. 29, 2012 | 31-May-14 | 31-May-13 | 31-May-11 | 9-May-14 | 9-May-14 | 9-May-14 | 31-May-11 | 9-May-14 | 31-May-11 | 9-May-14 | 31-May-14 | 31-May-13 | Jun. 29, 2012 | Dec. 09, 2013 | 31-May-14 | Dec. 09, 2013 | |||||
Special Purpose Entity | Revolving Credit Facility | Unsecured 6.25% senior notes due December 15, 2013 | Unsecured 6.25% senior notes due December 15, 2013 | Unsecured 6.25% senior notes due December 15, 2013 | Unsecured 3.45% senior notes due November 15, 2022 | Unsecured 3.45% senior notes due November 15, 2022 | Unsecured 3.45% senior notes due November 15, 2022 | Unsecured 3.45% senior notes due November 15, 2022 | Issuance of Debt | Issuance of Debt | Revolving Credit Facilities | Revolving Credit Facilities | Accounts Receivable Securitization Facility | Accounts Receivable Securitization Facility | Accounts Receivable Securitization Facility | Accounts Receivable Securitization Facility | Accounts Receivable Securitization Facility | Accounts Receivable Securitization Facility | Accounts Receivable Securitization Facility | Accounts Receivable Securitization Facility | Unsecured 6.70% senior notes due November 1, 2015 | Unsecured 6.70% senior notes due November 1, 2015 | Swingline Loans [Member] | Investment in Kemrock convertible debt | Investment in Kemrock convertible debt | Investment in Kemrock convertible debt | ||||||||||||
Maximum | Minimum | New Facility | New Facility | Maximum | Maximum | Minimum | Minimum | |||||||||||||||||||||||||||||||
New Facility | New Facility | |||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Maturities of long-term debt in 2015 | ' | ' | $5,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Maturities of long-term debt in 2016 | ' | ' | 151,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Maturities of long-term debt in 2017 | ' | ' | 400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Maturities of long-term debt in 2018 | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Maturities of long-term debt in 2019 | ' | ' | 250,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Maturities of long-term debt thereafter | ' | ' | 943,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Unused lines of credit | ' | ' | 797,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Liquidity available | ' | ' | 1,100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Consolidated indebtedness | ' | ' | 49.40% | 53.40% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60.00% | ' | ' | ' | 60.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Issuance of note | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 205,000,000 | ||||
Debt, interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.25% | ' | 3.45% | 3.45% | 3.45% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.70% | [1] | 6.70% | [1] | ' | ' | ' | 2.25% | ||
Notes maturity date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2020 | ' | ' | ||||
Note Interest payment frequency, term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Interest on the Convertible Notes semi-annually on June 15th and December 15th of each year, and began doing so on June 15, 2014. | ' | ' | ||||
Proceeds from note issuance, net | ' | ' | 208,582,000 | 300,902,000 | 27,894,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,100,000 | ' | ' | ||||
Principal amount of unsecured senior notes, repayments | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Debt, due date | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15-Dec-13 | 15-Dec-13 | 15-Dec-13 | ' | 15-Nov-22 | 15-Nov-22 | ' | ' | ' | 29-Jun-17 | [2] | 29-Jun-17 | [2] | ' | ' | ' | ' | ' | ' | ' | ' | 1-Nov-15 | [1] | 1-Nov-15 | [1] | ' | ' | ' | ' |
Unsecured senior notes , interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Debt instrument, conversion rate | 18.8905 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Convertible notes, initial conversion price per share | ' | ' | ' | ' | ' | $52.94 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Initial conversion price, conversion premium percentage | 37.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Last reported sale price of RPM common stock | ' | ' | ' | ' | ' | $38.64 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Debt instrument, effective interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.92% | ' | ||||
Contractual interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,200,000 | ' | ||||
Amortization of debt discount premium | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,200,000 | ' | ||||
Debt discount remaining amortized period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 years 6 months | ' | ||||
Unamortized debt discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19,500,000 | ' | ||||
Carrying amount of the equity component of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,700,000 | ' | ||||
Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000,000 | ' | ' | ' | 300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Debt, maturity year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2022 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Net proceeds from the offering of notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 297,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Credit facility borrowing maximum capacity | ' | ' | ' | ' | ' | ' | 600,000,000 | ' | 600,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 600,000,000 | 600,000,000 | ' | ' | ' | 200,000,000 | ' | ' | ' | ' | ' | ' | 50,000,000 | ' | ' | ' | ||||
Credit facility expiration date | ' | ' | 29-Jun-17 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Credit facility maturity period | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Credit facility borrowing potential maximum capacity | ' | ' | ' | ' | ' | ' | 800,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Interest coverage ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 350.00% | 785.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Leverage ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 49.60% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Margin rate over LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.25% | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ||||
Debt rating | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'This margin would have increased to 1.25% if we had not maintained our public debt rating of at least BB+/Ba1/BB+ from any two of Standard & Poor's, Moody's or Fitch. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Minimum required consolidated interest coverage ratio for EBITDA to interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Accounts receivable from securitization | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $150,000,000 | ' | $200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Debt maturity period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Ownership percentage | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Monthly unused commitment fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | ' | 0.30% | ' | ' | ' | ' | ' | ' | ||||
Effective euro fixed-rate borrowing | ' | ' | 5.31% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.31% | ' | ' | ' | ' | ' | ||||
[1] | We entered into a cross-currency swap, which fixed the interest and principal payments in euros, resulting in an effective fixed-rate borrowing of 5.31%. | |||||||||||||||||||||||||||||||||||||
[2] | Interest was tied to AUD LIBOR at May 31, 2014, and averaged 3.96% for AUD denominated debt. Interest was tied to AUD LIBOR at May 31, 2013, and averaged 4.16% for AUD denominated debt. |
Income_loss_before_Income_Taxe
Income (loss) before Income Taxes (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 | |||
Schedule of Income Before Income Tax [Line Items] | ' | ' | ' | |||
Income Before Income Taxes, United States | $209,626 | $5,104 | $187,687 | |||
Income Before Income Taxes, Foreign | 214,861 | 171,787 | 140,602 | |||
Income (Loss) Before Income Taxes | $424,487 | [1] | $176,891 | [1] | $328,289 | [1] |
[1] | The presentation includes a reconciliation of Income (Loss) Before Income Taxes, a measure defined by Generally Accepted Accounting Principles (GAAP) in the United States, to EBIT. |
Provision_Benefit_for_Income_T
Provision (Benefit) for Income Tax (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
Current: | ' | ' | ' |
U.S. Federal | $46,846 | $56,590 | $45,547 |
State and local | 5,660 | 6,694 | 6,836 |
Foreign | 59,425 | 44,747 | 49,231 |
Total Current | 111,931 | 108,031 | 101,614 |
Deferred: | ' | ' | ' |
U.S. Federal | 16,747 | -31,987 | -787 |
State and local | 1,292 | -3,649 | -572 |
Foreign | -11,467 | -5,355 | -5,729 |
Total Deferred | 6,572 | -40,991 | -7,088 |
Provision for Income Tax Expense | $118,503 | $67,040 | $94,526 |
Significant_Components_of_Defe
Significant Components of Deferred Income Tax Assets and Liabilities (Detail) (USD $) | 31-May-14 | 31-May-13 |
In Thousands, unless otherwise specified | ||
Deferred income tax assets related to: | ' | ' |
Inventories | $6,944 | $6,795 |
Allowance for losses | 6,410 | 7,584 |
Accrued compensation and benefits | 102,579 | 113,394 |
Accrued other expenses | 10,256 | 16,322 |
Other long-term liabilities | 19,646 | 29,954 |
Net operating loss and credit carryforwards | 71,534 | 70,208 |
Net unrealized loss on securities | 19,185 | 21,727 |
Total Deferred Income Tax Assets | 236,554 | 265,984 |
Less: valuation allowances | -85,719 | -89,909 |
Net Deferred Income Tax Assets | 150,835 | 176,075 |
Deferred income tax (liabilities) related to: | ' | ' |
Depreciation | -47,639 | -48,491 |
Pension and other postretirement benefits | -7,867 | -12,204 |
Amortization of intangibles | -115,166 | -125,042 |
Total Deferred Income Tax (Liabilities) | -170,672 | -185,737 |
Deferred Income Tax Assets (Liabilities), Net | ($19,837) | ($9,662) |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
31-May-14 | 31-May-13 | 31-May-12 | |
Income Tax [Line Items] | ' | ' | ' |
U.S. federal foreign tax credit carryforwards beginning expiration year | '2021 | ' | ' |
Foreign capital loss carryforwards | $19,200,000 | ' | ' |
Reduction in foreign tax credit carryforwards | 500,000 | ' | ' |
Total Valuation Allowances | 85,719,000 | 89,909,000 | ' |
Unrecognized tax benefits that would impact effective tax rate, if recognized | 15,000,000 | 7,500,000 | 2,400,000 |
Accrued interest and penalties related to unrecognized tax benefits | 5,200,000 | 5,200,000 | 1,500,000 |
Foreign Tax Credits | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' |
U.S. federal foreign tax credit carryforwards | 9,700,000 | ' | ' |
Reduction in valuation allowance | -4,700,000 | ' | ' |
State | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' |
Net operating loss carryforwards | 37,600,000 | ' | ' |
Net operating loss carryforwards beginning expiration year | '2015 | ' | ' |
Foreign Net Operating Loss Carryforwards | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' |
Net operating loss carryforwards beginning expiration year | '2015 | ' | ' |
Net operating loss carryforwards | 182,900,000 | ' | ' |
Net operating loss carryforwards subject to expiration | 35,400,000 | ' | ' |
Net operating loss carryforwards indefinite carry forward period | $147,500,000 | ' | ' |
Reconciliation_of_Income_Tax_E
Reconciliation of Income Tax Expense (Benefit) Computed by Applying U.S. Statutory Federal Income Tax Rate against Income (Loss) before Income Taxes to Provision (Benefit) for Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
Income Tax Rate Reconciliation [Line Items] | ' | ' | ' |
Income tax expense (benefit) at the U.S. statutory federal income tax rate | $148,570 | $61,912 | $114,901 |
Impact of foreign operations | -24,874 | -11,552 | -32,192 |
State and local income taxes net of federal income tax benefit | 4,519 | 1,979 | 4,073 |
Tax benefits from the domestic manufacturing deduction | -4,878 | -4,489 | -3,744 |
Nondeductible fines and penalties | -2,002 | 4,802 | ' |
Nondeductible business expense | 1,508 | 1,269 | 1,304 |
Valuation allowance | -2,998 | 14,729 | 9,353 |
Other | -1,342 | -1,610 | 831 |
Provision for Income Tax Expense | $118,503 | $67,040 | $94,526 |
Effective Income Tax Rate | 27.90% | 37.90% | 28.80% |
Activity_Related_to_Unrecogniz
Activity Related to Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
Reconciliation of Unrecognized Tax Benefits [Line Items] | ' | ' | ' |
Unrecognized tax benefits, beginning balance | $8.40 | $3.30 | $6.40 |
Additions based on tax positions related to current year | 0.1 | ' | ' |
Additions for tax positions of prior years | 8.9 | 6 | 0.5 |
Reductions for tax positions of prior years | -1.7 | -0.9 | -0.4 |
Settlements | ' | ' | -3.2 |
Unrecognized tax benefits, ending balance | $15.70 | $8.40 | $3.30 |
Common_Stock_Additional_Inform
Common Stock - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Millions, except Share data, unless otherwise specified | 31-May-14 | 31-May-12 |
Right | ||
Shareholder Rights [Line Items] | ' | ' |
New stockholder right plan adopted | 21-Apr-09 | ' |
Stockholder right plan expiration period | 11-May-19 | ' |
Right declared for distribution for each outstanding share of common stock | 1 | ' |
Dividend payable date | 11-May-09 | ' |
Rights redemption price | $0.00 | ' |
Rights reviewing period | 'The rights will expire May 11, 2019, unless earlier redeemed, exchanged or amended by the board. The plan specifically provides that our board will review the status of the plan before its fifth anniversary to determine if any such action should be taken, which it did. | ' |
Shares repurchased | ' | 164,773 |
Authorization of stock repurchase program | 8-Jan-08 | ' |
Repurchase of common stock price per shares | ' | $18.25 |
Treasury Stock | ' | ' |
Shareholder Rights [Line Items] | ' | ' |
Shares repurchased | ' | $3 |
Minimum | ' | ' |
Shareholder Rights [Line Items] | ' | ' |
Percentage of outstanding shares acquired to exercise discount price | 15.00% | ' |
Shares authorized to be repurchased, per year | 1,000,000 | ' |
Maximum | ' | ' |
Shareholder Rights [Line Items] | ' | ' |
Shares authorized to be repurchased, per year | 2,000,000 | ' |
StockBased_Compensation_Expens
Stock-Based Compensation Expense Included in Consolidated Statements of Income (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Selling, general and administrative expense | $23,568 | $17,145 | $13,904 |
Income tax (benefit) | -7,776 | -5,627 | -4,921 |
Total stock-based compensation cost | $15,792 | $11,518 | $8,983 |
Summary_of_WeightedAverage_Ass
Summary of Weighted-Average Assumptions Related to Grants (Detail) | 12 Months Ended | ||
31-May-14 | 31-May-13 | 31-May-12 | |
Schedule Of Weighted Average Assumptions [Line Items] | ' | ' | ' |
Risk-free interest rate | 2.20% | 1.10% | 2.50% |
Expected life of option | '7 years 6 months | '7 years 6 months | '7 years 6 months |
Expected dividend yield | 2.70% | 3.30% | 3.80% |
Expected volatility rate | 26.10% | 28.20% | 29.50% |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||||
In Millions, except Share data, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 | 31-May-14 | 31-May-14 | 31-May-13 | 31-May-12 | Jul. 31, 2012 | Jun. 30, 2012 | Jul. 31, 2011 | Oct. 31, 2010 | 31-May-14 | Oct. 31, 2010 | Oct. 31, 2010 | 31-May-14 | 31-May-14 | 31-May-13 | 31-May-12 | Jun. 30, 2013 | 31-May-14 | 31-May-14 | 31-May-14 | Oct. 10, 2003 | 31-May-14 | 31-May-13 | 31-May-12 | Oct. 10, 2003 | 31-May-14 | 31-May-13 | 31-May-12 | 31-May-14 | 31-May-14 |
Stock Appreciation Rights (SARs) | Performance Based Restricted Stock Awards | Performance Based Restricted Stock Awards | Performance Based Restricted Stock Awards | Performance Contingent Restricted Stock | Performance Contingent Restricted Stock | Performance Contingent Restricted Stock | Performance Contingent Restricted Stock | Performance Contingent Restricted Stock | Performance Contingent Restricted Stock | Performance Contingent Restricted Stock | Restricted Stock Unit | Non Vested Restricted Stock | Non Vested Restricted Stock | Non Vested Restricted Stock | Restricted Stock [Member] | Restricted Stock [Member] | Omnibus Incentive Plan | Omnibus Incentive Plan | Directors Equity Incentive Plan 2003 | Directors Equity Incentive Plan 2003 | Directors Equity Incentive Plan 2003 | Directors Equity Incentive Plan 2003 | Directors Equity Incentive Plan 2003 | Employee Incentive Plan Twenty Zero Seven | Employee Incentive Plan Twenty Zero Seven | Employee Incentive Plan Twenty Zero Seven | Employee Incentive Plan Twenty Zero Seven | Nineteen Ninety Seven Plan | ||||
First Performance Segment | Second Performance Segment | Full Value Stock Award | Scenario 1 | |||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Incentive plan approval date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8-Oct-04 | ' | 10-Oct-03 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock appreciation rights expected term | '7 years 6 months | '7 years 6 months | '7 years 6 months | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share based compensation arrangement vesting period | ' | ' | ' | '4 years | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options outstanding | 59,450 | ' | ' | 3,159,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate intrinsic value of options outstanding | $64 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average remaining contractual life of options outstanding | '6 years 1 month 6 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate intrinsic value of options exercisable | 41.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average remaining contractual life of options exercisable | '4 years 10 months 24 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unamortized stock-based compensation expense | ' | ' | ' | 5.3 | 17.5 | ' | ' | ' | ' | ' | ' | 3 | ' | ' | 1 | 27.7 | ' | ' | ' | ' | ' | ' | ' | 1.3 | ' | ' | ' | 5 | ' | ' | ' | 0.1 |
Unamortized stock-based compensation expense expected recognition period | ' | ' | ' | '3 years 3 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years 4 months 24 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares expected to vest | ' | ' | ' | 1,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares expected to vest, weighted-average exercise price | ' | ' | ' | $27.20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares expected to vest, weighted-average remaining contractual term | ' | ' | ' | '7 years 8 months 12 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares of common stock available for grant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,000,000 | 6,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares granted to Directors | ' | ' | ' | ' | $35.11 | $26.22 | $21.49 | $25.87 | $25.76 | $22.16 | $20.73 | ' | ' | ' | ' | $35.02 | ' | ' | ' | ' | ' | ' | ' | $36.63 | $26.63 | $20.60 | ' | $33.80 | ' | ' | ' | ' |
Shares granted | ' | ' | ' | ' | 507,000 | ' | ' | 50,000 | 10,000 | 115,000 | 680,000 | ' | ' | ' | ' | 613,000 | ' | ' | ' | ' | ' | ' | ' | 30,000 | ' | ' | ' | 76,000 | ' | ' | ' | ' |
Performance goals attainment period for PCRS awards | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares expected to vest | 2,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 596,250 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares outstanding | ' | ' | ' | ' | 1,414,000 | 1,454,000 | ' | ' | ' | ' | ' | 795,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 857,000 | 815,000 | ' | ' | ' |
Shares earned, but not vested | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 392,500 | ' | ' | ' | 3,060,000 | 3,236,000 | ' | ' | ' | ' | ' | ' | 98,000 | 113,000 | ' | ' | ' | ' | ' | ' | ' |
Shares of common stock available for grant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 162,750 | ' | ' | 500,000 | 159,183 | ' | ' | 1,000,000 | ' |
Weighted-average grant-date fair value | ' | ' | ' | ' | $27.96 | $22.31 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $33.80 | $25.87 | $22.16 | ' | ' |
Remaining weighted-average contractual term | '3 years 4 months 24 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years 2 months 12 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average grant-date fair value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $35.02 | $26.16 | $21.62 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total fair value of shares vested | 12.8 | 3.3 | 7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares expected to vest, weighted-average grant-date fair value | $24.24 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares of restricted stock vested | ' | ' | ' | ' | 520,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 682,000 | ' | ' | 56,291 | 121,733 | ' | ' | ' | 45,000 | ' | ' | ' | 14,000 | ' | ' | ' | ' |
Total intrinsic value of restricted shares converted | $10.40 | $1.30 | $3.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary_of_Option_and_ShareBas
Summary of Option and Share-Based Payment Activity (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
Number of Shares Under Option | ' | ' | ' |
Ending Balance | 59,450 | ' | ' |
Stock Options And Stock Appreciation Rights | ' | ' | ' |
Weighted Average Exercise Price | ' | ' | ' |
Beginning balance | $20.54 | ' | ' |
Options granted | $33.80 | ' | ' |
Options canceled/expired | $23.29 | ' | ' |
Options exercised | $18.63 | ' | ' |
Ending balance | $23.18 | $20.54 | ' |
Exercisable at May 31 | $20.04 | ' | ' |
Number of Shares Under Option | ' | ' | ' |
Beginning Balance | 3,502,000 | ' | ' |
Options granted | 540,000 | ' | ' |
Options canceled/expired | -47,000 | ' | ' |
Options exercised | -776,000 | ' | ' |
Ending Balance | 3,219,000 | 3,502,000 | ' |
Exercisable at May 31 | 1,806,000 | ' | ' |
Weighted-average grant-date fair value per share | $7.38 | $4.96 | $4.69 |
Stock Option Plans | ' | ' | ' |
Number of Shares Under Option | ' | ' | ' |
Intrinsic value of options exercised | $15.60 | $9.80 | $7 |
Tax benefit from options exercised | 5.2 | 3.5 | 1.4 |
Fair value of SARS vested | $2 | $1.90 | $2 |
Summary_of_ShareBased_Performa
Summary of Share-Based Performance-Earned Restricted Stock Activity (Detail) (Performance Based Restricted Stock Awards, USD $) | 12 Months Ended | ||
31-May-14 | 31-May-13 | 31-May-12 | |
Performance Based Restricted Stock Awards | ' | ' | ' |
Weighted-Average Grant-Date Fair Value | ' | ' | ' |
Beginning balance | $22.31 | ' | ' |
Shares granted | $35.11 | $26.22 | $21.49 |
Shares forfeited | $24.42 | ' | ' |
Shares vested | $19.30 | ' | ' |
Ending balance | $27.96 | $22.31 | ' |
Shares | ' | ' | ' |
Beginning Balance | 1,454,000 | ' | ' |
Shares granted | 507,000 | ' | ' |
Shares forfeited | -27,000 | ' | ' |
Shares vested | -520,000 | ' | ' |
Ending Balance | 1,414,000 | 1,454,000 | ' |
ShareBased_Activity_under_2003
Share-Based Activity under 2003 Plan (Detail) (Directors Equity Incentive Plan 2003, USD $) | 12 Months Ended | ||
31-May-14 | 31-May-13 | 31-May-12 | |
Directors Equity Incentive Plan 2003 | ' | ' | ' |
Weighted Average Grant-Date Fair Value | ' | ' | ' |
Beginning balance | $22.50 | ' | ' |
Shares granted to Directors | $36.63 | $26.63 | $20.60 |
Shares vested | $21.13 | ' | ' |
Ending balance | $27.48 | $22.50 | ' |
Shares | ' | ' | ' |
Beginning Balance | 113,000 | ' | ' |
Shares granted to Directors | 30,000 | ' | ' |
Shares vested | -45,000 | ' | ' |
Ending Balance | 98,000 | 113,000 | ' |
Awards_and_Restricted_Stock_Un
Awards and Restricted Stock Units Issued under 2007 Plan (Detail) (Employee Incentive Plan Twenty Zero Seven, USD $) | 12 Months Ended |
31-May-14 | |
Employee Incentive Plan Twenty Zero Seven | ' |
Weighted Average Grant-Date Fair Value | ' |
Beginning Balance | $17.94 |
Shares granted | $33.80 |
Shares forfeited | $19.78 |
Shares vested | $18.96 |
Ending Balance | $19.27 |
Shares | ' |
Beginning Balance | 815,000 |
Shares granted | 76,000 |
Shares forfeited | -20,000 |
Shares vested | -14,000 |
Ending Balance | 857,000 |
Summary_of_Activity_for_Nonves
Summary of Activity for Nonvested Restricted Shares (Detail) (Non Vested Restricted Stock, USD $) | 12 Months Ended |
31-May-14 | |
Non Vested Restricted Stock | ' |
Weighted Average Grant-Date Fair Value | ' |
Beginning balance | $20.94 |
Granted | $35.02 |
Vested | $18.71 |
Forfeited | $21.49 |
Ending balance | $24.24 |
Shares | ' |
Beginning Balance | 3,236,000 |
Granted | 613,000 |
Vested | -682,000 |
Forfeited | -107,000 |
Ending Balance | 3,060,000 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (loss) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning Balance | ($159,253) | ($177,893) | $6,073 |
Reclassification adjustments for gains included in net income, net of tax benefit of $586, 633, and 844 in 2014, 2013 and 2012 | 1,220 | -1,953 | 1,043 |
Other comprehensive income | -3,825 | 40,063 | -235,574 |
Deferred taxes | 4,976 | -19,470 | 50,565 |
Ending Balance | -156,882 | -159,253 | -177,893 |
Foreign Currency Translation Adjustments | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning Balance | -24,428 | -8,517 | 81,346 |
Other comprehensive income | 9,533 | -15,911 | -89,863 |
Ending Balance | -14,895 | -24,428 | -8,517 |
Pension And Other Postretirement Benefit Liability Adjustments, Net of Tax | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning Balance | -143,555 | -174,174 | -96,705 |
Other comprehensive income | -16,418 | 48,100 | -119,189 |
Deferred taxes | 6,325 | -17,481 | 41,720 |
Ending Balance | -153,648 | -143,555 | -174,174 |
Unrealized Gain (Loss) On Derivatives, Net of Tax | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning Balance | 1,196 | 1,200 | 5,267 |
Other comprehensive income | -1,215 | 14 | -5,512 |
Deferred taxes | 304 | -18 | 1,445 |
Ending Balance | 285 | 1,196 | 1,200 |
Unrealized Gain (Loss) On Securities, Net of Tax | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning Balance | 7,534 | 3,598 | 16,165 |
Reclassification adjustments for gains included in net income, net of tax benefit of $586, 633, and 844 in 2014, 2013 and 2012 | 1,220 | -1,953 | 1,043 |
Other comprehensive income | 4,275 | 7,860 | -21,010 |
Deferred taxes | -1,653 | -1,971 | 7,400 |
Ending Balance | $11,376 | $7,534 | $3,598 |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (loss) (Parenthetical) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Reclassification adjustments for gains included in net income, net of tax (benefit) | $586 | $633 | $844 |
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 | 12 Months Ended | ||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | 31-May-14 | Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | 31-May-13 | Feb. 28, 2013 | Nov. 30, 2012 | Aug. 31, 2012 | 31-May-14 | 31-May-13 | 31-May-12 | |||||
Numerator for earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Net income attributable to RPM International Inc. stockholders | $108,779 | $16,221 | $63,562 | $103,098 | $65,378 | [1] | ($24,364) | [2],[3],[4] | $30,924 | [2],[3],[5] | $26,665 | [2],[3],[6] | $291,660 | $98,603 | $215,936 | |
Less: Allocation of earnings and dividends to participating securities | ' | ' | ' | ' | ' | ' | ' | ' | -6,366 | -1,999 | -4,024 | |||||
Net income available to common shareholders - basic | ' | ' | ' | ' | ' | ' | ' | ' | 285,294 | 96,604 | 211,912 | |||||
Add: Undistributed earnings reallocated to unvested shareholders | ' | ' | ' | ' | ' | ' | ' | ' | 29 | -3 | 9 | |||||
Add: Income effect of contingently issuable shares | ' | ' | ' | ' | ' | ' | ' | ' | 2,493 | ' | ' | |||||
Net income available to common shareholders - diluted | ' | ' | ' | ' | ' | ' | ' | ' | $287,816 | $96,601 | $211,921 | |||||
Denominator for basic and diluted earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Basic weighted average common shares | ' | ' | ' | ' | ' | ' | ' | ' | 129,438 | 128,956 | 128,130 | |||||
Average diluted options | ' | ' | ' | ' | ' | ' | ' | ' | 1,003 | 845 | 587 | |||||
Net issuable common share equivalents | ' | ' | ' | ' | ' | ' | ' | ' | 1,847 | [7] | ' | ' | ||||
Total shares for diluted earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | 132,288 | 129,801 | 128,717 | |||||
Earnings per Share of Common Stock Attributable to RPM International Inc. Stockholders: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Basic Earnings Per Share of Common Stock | $0.82 | $0.12 | $0.48 | $0.78 | $0.49 | [1] | ($0.19) | [2],[3],[4] | $0.23 | [2],[3],[5] | $0.20 | [2],[3],[6] | $2.20 | $0.75 | $1.65 | |
Diluted Earnings Per Share of Common Stock | $0.80 | $0.12 | $0.48 | $0.77 | $0.49 | [1] | ($0.19) | [2],[3],[4] | $0.23 | [2],[3],[5] | $0.20 | [2],[3],[6] | $2.18 | $0.74 | $1.65 | |
[1] | For the quarter ended May 31, 2013, we recorded $23.9 million in restructuring expense, including $3.9 million in inventory markdowns. We also recorded bad debt for the remaining amount of our loan to Kemrock totaling $4.0 million and wrote off our remaining investment in Kemrock common stock and in Kemrock convertible debt for a combined loss of $18.5 million. Additionally, we reduced our estimated accrual for our agreement in principle with the GSA by $3.7 million. The combined impact of these items on net income and earnings per share for the fourth quarter was $30.0 million and $0.23 per share, respectively. | |||||||||||||||
[2] | Restated | |||||||||||||||
[3] | During August 2014, we determined that there was an error in the timing of the disclosure and accrual of loss reserves associated with our settlement of the GSA and DOJ investigation into compliance issues related to GSA contracts at our Tremco Group. We filed amended Quarterly Reports on Form 10-Q/A in August 2014 with corrected financial statements for the periods ended August 31, 2012, November 30, 2012 and February 28, 2013. The corrections reduced net income by $7.2 million and $10.8 million for the quarterly periods ended August 31, 2012 and November 30, 2012, respectively, and increased net income for the quarterly period ended February 28, 2013 by $18.0 million. The corrections reduced basic and diluted earnings per share by $0.06 for the quarter ended August 31, 2012; and by $0.09 and $0.08, respectively, for the quarterly period ended November 30, 2012; and increased basic and diluted earnings per share by $0.14 for the quarterly period ended February 28, 2013. The figures presented in the table above represent the corrected amounts for each quarter. | |||||||||||||||
[4] | For the quarter ended February 28, 2013, net income was impacted by $1.6 million for the impact of a strategic repositioning of certain industrial segment operations in Brazil. Additionally, we recorded a charge for $40.5 million ($34.6 million after-tax) in relation to the items described in (e) below. | |||||||||||||||
[5] | For the quarter ended November 30, 2012, we wrote down our remaining investment in Kemrock, which impacted net income and earnings per share by $10.8 million and $0.09 per share, respectively. Additionally, we recorded a charge for $16.9 million ($10.8 million after-tax) in relation to the items described in (e) below. | |||||||||||||||
[6] | For the quarter ended August 31, 2012, net sales and gross profit were reduced by $2.9 million and $5.4 million, respectively, for revised cost estimates on unprofitable contracts related to our industrial segment, and $5.6 million in exit costs associated with those activities that impacted pretax income. Additionally, we wrote down an investment in Kemrock totaling $40.3 million and recognized $5.0 million in bad debt from our loan to Kemrock. The combined impact on net income and earnings per share was $50.9 million and $0.38 per share, respectively. Lastly, we recorded a charge for $11.4 million ($7.2 million after-tax) in relation to the items described in (e) below. | |||||||||||||||
[7] | For the year ended May 31, 2014, represents the number of shares that would be issued if our contingently convertible notes were converted. We include these shares in the calculation of diluted EPS as the conversion of the notes may be settled, at our election, in cash, shares of our common stock, or a combination of cash and shares of our common stock. |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | 12 Months Ended | ||
31-May-14 | 31-May-13 | 31-May-12 | |
Earnings Per Share Note [Line Items] | ' | ' | ' |
Stock-based compensation plans, excluded from the calculation of diluted earnings per share, anti-dilutive shares of stock | 3,057,000 | 3,095,000 | 2,625,000 |
Future_Minimum_Lease_Commitmen
Future Minimum Lease Commitments Under Non-Cancelable Lease Agreement (Detail) (USD $) | 31-May-14 |
In Thousands, unless otherwise specified | |
Operating Leased Assets [Line Items] | ' |
2015 | $48,695 |
2016 | 39,054 |
2017 | 28,971 |
2018 | 21,459 |
2019 | 15,405 |
Thereafter | 68,280 |
Total Minimum Lease Commitments | $221,864 |
Leases_Additional_Information_
Leases - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
Lease and Rental Expense [Line Items] | ' | ' | ' |
Rental expenses for all operating lease | $50.90 | $46.50 | $40.60 |
Pension_Plans_Additional_Infor
Pension Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
Schedule of Pension and Other Postretirement Benefits Expected Benefit Payments [Line Items] | ' | ' | ' |
Average compensation with accrued benefits vesting period | '5 years | ' | ' |
Matching contribution charged to income | $13.60 | $13.10 | $11.90 |
Pension Benefits, U.S. Plans | ' | ' | ' |
Schedule of Pension and Other Postretirement Benefits Expected Benefit Payments [Line Items] | ' | ' | ' |
Contribution to retirement plans in the next fiscal year | 53.1 | ' | ' |
Pension Benefits, Non-U.S. Plans | ' | ' | ' |
Schedule of Pension and Other Postretirement Benefits Expected Benefit Payments [Line Items] | ' | ' | ' |
Contribution to retirement plans in the next fiscal year | 6.3 | ' | ' |
Pension Plan, Defined Benefit | ' | ' | ' |
Schedule of Pension and Other Postretirement Benefits Expected Benefit Payments [Line Items] | ' | ' | ' |
Estimated benefits payable in the first year | 30.8 | ' | ' |
Estimated benefits payable in the second year | 32 | ' | ' |
Estimated benefits payable in the third year | 34.7 | ' | ' |
Estimated benefits payable in the fourth year | 36.5 | ' | ' |
Estimated benefits payable in the fifth year | 38.9 | ' | ' |
Estimated benefits payable in the years thereafter | $226.10 | ' | ' |
RetirementRelated_Benefit_Plan
Retirement-Related Benefit Plans' Impact on Income Before Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
Pension Benefits, U.S. Plans | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' |
Service cost | $27,056 | $25,950 | $19,906 |
Interest cost | 18,039 | 16,240 | 15,307 |
Expected return on plan assets | -20,761 | -17,431 | -17,416 |
Prior service cost | 334 | 348 | 352 |
Net actuarial losses recognized | 13,222 | 16,888 | 8,510 |
Curtailment/settlement (gains) losses | ' | 72 | ' |
Net Pension Cost | 37,890 | 42,067 | 26,659 |
Pension Benefits, Non-U.S. Plans | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' |
Service cost | 4,375 | 4,337 | 3,731 |
Interest cost | 7,382 | 7,246 | 8,076 |
Expected return on plan assets | -8,411 | -7,715 | -7,867 |
Prior service cost | 19 | 7 | 10 |
Net actuarial losses recognized | 2,448 | 2,771 | 2,169 |
Curtailment/settlement (gains) losses | 44 | 234 | ' |
Net Pension Cost | $5,857 | $6,880 | $6,119 |
Changes_in_Benefits_Obligation
Changes in Benefits Obligations and Plan Assets, Pension (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
Pension Benefits, U.S. Plans | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Benefit obligation at beginning of year | $402,686 | $385,013 | ' |
Service cost | 27,056 | 25,950 | 19,906 |
Interest cost | 18,039 | 16,240 | 15,307 |
Benefits paid | -17,683 | -16,503 | ' |
Actuarial (gains)/losses | 46,492 | -8,014 | ' |
Benefit Obligation at End of Year | 476,590 | 402,686 | 385,013 |
Balance at Beginning of Period | 241,960 | 198,208 | ' |
Actual return on plan assets | 30,547 | 35,708 | ' |
Employer contributions | 27,289 | 24,547 | ' |
Benefits paid | -17,683 | -16,503 | ' |
Balance at End of Period | 282,113 | 241,960 | 198,208 |
(Deficit) of plan assets versus benefit obligations at end of year | -194,477 | -160,726 | ' |
Net Amount Recognized | -194,477 | -160,726 | ' |
Accumulated Benefit Obligation | 385,492 | 340,742 | ' |
Pension Benefits, Non-U.S. Plans | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Benefit obligation at beginning of year | 185,993 | 175,338 | ' |
Service cost | 4,375 | 4,337 | 3,731 |
Interest cost | 7,382 | 7,246 | 8,076 |
Benefits paid | -5,482 | -8,761 | ' |
Participant contributions | 831 | 929 | ' |
Plan amendments | 384 | ' | ' |
Actuarial (gains)/losses | 6,348 | 9,820 | ' |
Settlements/Curtailments | ' | -3,874 | ' |
Premiums paid | -138 | -127 | ' |
Currency exchange rate changes | 2,475 | 1,085 | ' |
Benefit Obligation at End of Year | 202,168 | 185,993 | 175,338 |
Balance at Beginning of Period | 155,056 | 137,318 | ' |
Actual return on plan assets | 17,432 | 15,859 | ' |
Employer contributions | 8,111 | 9,422 | ' |
Participant contributions | 831 | 929 | ' |
Benefits paid | -5,482 | -8,761 | ' |
Premiums paid | -138 | -127 | ' |
Currency exchange rate changes | 1,269 | 416 | ' |
Balance at End of Period | 177,079 | 155,056 | 137,318 |
(Deficit) of plan assets versus benefit obligations at end of year | -25,089 | -30,937 | ' |
Net Amount Recognized | -25,089 | -30,937 | ' |
Accumulated Benefit Obligation | $188,835 | $173,586 | ' |
Amounts_Recognized_in_Consolid
Amounts Recognized in Consolidated Balance Sheet, Pension (Detail) (USD $) | 31-May-14 | 31-May-13 |
In Thousands, unless otherwise specified | ||
Pension Benefits, U.S. Plans | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Current liabilities | ($15) | ($43) |
Noncurrent liabilities | -194,462 | -160,683 |
Net Amount Recognized | -194,477 | -160,726 |
Pension Benefits, Non-U.S. Plans | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Noncurrent assets | 227 | ' |
Current liabilities | -458 | -436 |
Noncurrent liabilities | -24,858 | -30,501 |
Net Amount Recognized | ($25,089) | ($30,937) |
Relationship_between_Plans_Ben
Relationship between Plans Benefit Obligations and Assets (Detail) (USD $) | 31-May-14 | 31-May-13 |
In Thousands, unless otherwise specified | ||
Pension Benefits, U.S. Plans | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Plans with projected benefit obligation in excess of plan assets, benefit obligation | $476,590 | $402,686 |
Plans with accumulated benefit obligation in excess of plan assets, benefit obligation | 385,492 | 340,742 |
Plans with projected benefit obligation in excess of plan assets, plan asset | 282,113 | 241,960 |
Plans with accumulated benefit obligation in excess of plan assets, plan asset | 282,113 | 241,960 |
Pension Benefits, Non-U.S. Plans | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Plans with projected benefit obligation in excess of plan assets, benefit obligation | 105,327 | 185,993 |
Plans with accumulated benefit obligation in excess of plan assets, benefit obligation | 103,734 | 94,423 |
Plans with assets in excess of projected benefit obligations, benefit obligation | 96,841 | ' |
Plans with assets in excess of accumulated benefit obligations, benefit obligation | 85,101 | 79,163 |
Plans with projected benefit obligation in excess of plan assets, plan asset | 80,011 | 155,056 |
Plans with accumulated benefit obligation in excess of plan assets, plan asset | 80,011 | 70,642 |
Plans with assets in excess of projected benefit obligations, plan asset | 97,068 | ' |
Plans with assets in excess of accumulated benefit obligations, plan asset | $97,068 | $84,414 |
Pretax_Net_Actuarial_Loss_Prio
Pretax Net Actuarial Loss, Prior Service (Costs) and Transition Assets/(Obligations) Recognized in Accumulated Other Comprehensive Income (Loss) not Affecting Retained Earnings, Pension (Detail) (USD $) | 31-May-14 | 31-May-13 |
In Thousands, unless otherwise specified | ||
Pension Benefits, U.S. Plans | ' | ' |
Schedule of Net Periodic Benefit Costs and Assumptions for Defined Benefit Postretirement Plans [Line Items] | ' | ' |
Net actuarial loss | ($185,320) | ($161,835) |
Prior service (costs) | -997 | -1,331 |
Total recognized in accumulated other comprehensive income not affecting retained earnings | -186,317 | -163,166 |
Pension Benefits, Non-U.S. Plans | ' | ' |
Schedule of Net Periodic Benefit Costs and Assumptions for Defined Benefit Postretirement Plans [Line Items] | ' | ' |
Net actuarial loss | -52,573 | -57,882 |
Prior service (costs) | -423 | -51 |
Total recognized in accumulated other comprehensive income not affecting retained earnings | ($52,996) | ($57,933) |
Changes_Recognized_in_Other_Co
Changes Recognized in Other Comprehensive Income, Pension (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | 31-May-14 | 31-May-13 |
Pension Benefits, U.S. Plans | ' | ' |
Changes in plan assets and benefit obligations recognized in other comprehensive income: | ' | ' |
Net loss (gain) arising during the year | $36,707 | ($26,291) |
Amounts recognized as a component of net periodic benefit cost: | ' | ' |
Amortization or curtailment recognition of prior service credit (cost) | -334 | -348 |
Amortization or settlement recognition of net gain (loss) | -13,222 | -16,960 |
Total recognized in other comprehensive loss (income) | 23,151 | -43,599 |
Pension Benefits, Non-U.S. Plans | ' | ' |
Changes in plan assets and benefit obligations recognized in other comprehensive income: | ' | ' |
Prior service cost | 384 | ' |
Net loss (gain) arising during the year | -2,673 | -2,197 |
Effect of exchange rates on amounts included in AOCI | -137 | 300 |
Amounts recognized as a component of net periodic benefit cost: | ' | ' |
Amortization or curtailment recognition of prior service credit (cost) | -19 | -48 |
Amortization or settlement recognition of net gain (loss) | -2,492 | -2,966 |
Total recognized in other comprehensive loss (income) | ($4,937) | ($4,911) |
Amounts_in_Accumulated_Other_C
Amounts in Accumulated Other Comprehensive Income (Loss) that have not yet been Recognized in Net Periodic Pension Cost, but will be Recognized in Consolidated Statements of Income (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | 31-May-14 |
Pension Benefits, U.S. Plans | ' |
Schedule of Pension Amounts in Accumulated Other Comprehensive Income (Loss) [Line Items] | ' |
Net actuarial loss | ($13,413) |
Prior service (costs) | -294 |
Pension Benefits, Non-U.S. Plans | ' |
Schedule of Pension Amounts in Accumulated Other Comprehensive Income (Loss) [Line Items] | ' |
Net actuarial loss | -1,947 |
Prior service (costs) | ($41) |
WeightedAverage_Assumptions_us
Weighted-Average Assumptions used to Determine Benefit Obligations and Net Periodic Pension Cost (Detail) | 12 Months Ended | ||
31-May-14 | 31-May-13 | 31-May-12 | |
Pension Benefits, U.S. Plans | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Year-End Benefit Obligations, Discount rate | 4.30% | 4.45% | ' |
Year-End Benefit Obligations, Rate of compensation increase | 3.81% | 3.14% | ' |
Net Periodic Pension Cost, Discount rate | 4.45% | 4.25% | 5.25% |
Net Periodic Pension Cost, Expected return on plan assets | 8.50% | 8.50% | 8.50% |
Net Periodic Pension Cost, Rate of compensation increase | 3.14% | 3.15% | 3.15% |
Pension Benefits, Non-U.S. Plans | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Year-End Benefit Obligations, Discount rate | 3.82% | 3.95% | ' |
Year-End Benefit Obligations, Rate of compensation increase | 3.30% | 3.32% | ' |
Net Periodic Pension Cost, Discount rate | 3.95% | 4.19% | 5.14% |
Net Periodic Pension Cost, Expected return on plan assets | 5.37% | 5.32% | 5.63% |
Net Periodic Pension Cost, Rate of compensation increase | 3.32% | 3.76% | 3.83% |
WeightedAverage_Actual_Target_
Weighted-Average Actual Target Allocation of Plan Assets (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
Pension Benefits, U.S. Plans | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Target Allocation | 100.00% | ' | ' |
Actual Asset Allocation | $282,113 | $241,960 | $198,208 |
Pension Benefits, U.S. Plans | Equity securities | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Target Allocation | 55.00% | ' | ' |
Actual Asset Allocation | 193,800 | 146,200 | ' |
Pension Benefits, U.S. Plans | Fixed maturity | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Target Allocation | 25.00% | ' | ' |
Actual Asset Allocation | 81,500 | 74,100 | ' |
Pension Benefits, U.S. Plans | Cash | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Actual Asset Allocation | 5,900 | 3,900 | ' |
Pension Benefits, U.S. Plans | Real Estate | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Target Allocation | 20.00% | ' | ' |
Actual Asset Allocation | 900 | 17,800 | ' |
Pension Benefits, Non-U.S. Plans | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Target Allocation | 100.00% | ' | ' |
Actual Asset Allocation | 177,079 | 155,056 | 137,318 |
Pension Benefits, Non-U.S. Plans | Equity securities | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Target Allocation | 42.00% | ' | ' |
Actual Asset Allocation | 84,000 | 81,800 | ' |
Pension Benefits, Non-U.S. Plans | Fixed maturity | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Target Allocation | 51.00% | ' | ' |
Actual Asset Allocation | 63,900 | 46,700 | ' |
Pension Benefits, Non-U.S. Plans | Cash | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Target Allocation | 1.00% | ' | ' |
Actual Asset Allocation | 500 | 200 | ' |
Pension Benefits, Non-U.S. Plans | Real Estate | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Target Allocation | 6.00% | ' | ' |
Actual Asset Allocation | $28,700 | $26,300 | ' |
Pension_Plan_Assets_Categorize
Pension Plan Assets Categorized using Fair Value Hierarchy (Detail) (USD $) | 31-May-14 | 31-May-13 | 31-May-12 |
In Thousands, unless otherwise specified | |||
Pension Benefits, U.S. Plans | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Pension plans with Plan Assets | $282,113 | $241,960 | $198,208 |
Pension Benefits, U.S. Plans | U.S. Treasury and other government | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Pension plans with Plan Assets | 11,203 | 10,288 | ' |
Pension Benefits, U.S. Plans | State and Municipal Debt Obligations | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Pension plans with Plan Assets | 456 | 455 | ' |
Pension Benefits, U.S. Plans | Foreign Covered Bonds | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Pension plans with Plan Assets | 1,264 | 2,342 | ' |
Pension Benefits, U.S. Plans | Mortgage-backed securities | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Pension plans with Plan Assets | 7,255 | 7,332 | ' |
Pension Benefits, U.S. Plans | Corporate bonds | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Pension plans with Plan Assets | 17,254 | 14,550 | ' |
Pension Benefits, U.S. Plans | Large Cap Equity Securities | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Pension plans with Plan Assets | 34,442 | 26,443 | ' |
Pension Benefits, U.S. Plans | Mid Cap Equity Securities | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Pension plans with Plan Assets | 18,183 | 15,423 | ' |
Pension Benefits, U.S. Plans | Small Cap Equity Securities | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Pension plans with Plan Assets | 12,145 | 11,451 | ' |
Pension Benefits, U.S. Plans | International Equities | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Pension plans with Plan Assets | 2,525 | 2,643 | ' |
Pension Benefits, U.S. Plans | Equity Mutual Funds | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Pension plans with Plan Assets | 126,513 | 90,260 | ' |
Pension Benefits, U.S. Plans | Debt Mutual Funds | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Pension plans with Plan Assets | 44,094 | 39,080 | ' |
Pension Benefits, U.S. Plans | Cash and Cash Equivalents | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Pension plans with Plan Assets | 5,869 | 3,848 | ' |
Pension Benefits, U.S. Plans | Limited Partner | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Pension plans with Plan Assets | 910 | 1,159 | ' |
Pension Benefits, U.S. Plans | Common Collective Trusts | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Pension plans with Plan Assets | ' | 16,686 | ' |
Pension Benefits, Non-U.S. Plans | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Pension plans with Plan Assets | 177,079 | 155,056 | 137,318 |
Pension Benefits, Non-U.S. Plans | Foreign Covered Bonds | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Pension plans with Plan Assets | 210 | 261 | ' |
Pension Benefits, Non-U.S. Plans | Cash and Cash Equivalents | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Pension plans with Plan Assets | 572 | 215 | ' |
Pension Benefits, Non-U.S. Plans | Pooled Equity Securities Funds | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Pension plans with Plan Assets | 82,534 | 80,550 | ' |
Pension Benefits, Non-U.S. Plans | Pooled Funds Fixed Income Securities | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Pension plans with Plan Assets | 63,657 | 46,428 | ' |
Pension Benefits, Non-U.S. Plans | Insurance Contracts | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Pension plans with Plan Assets | 28,658 | 26,313 | ' |
Pension Benefits, Non-U.S. Plans | Mutual funds | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Pension plans with Plan Assets | 1,448 | 1,289 | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension Benefits, U.S. Plans | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Pension plans with Plan Assets | 73,164 | 59,808 | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension Benefits, U.S. Plans | Large Cap Equity Securities | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Pension plans with Plan Assets | 34,442 | 26,443 | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension Benefits, U.S. Plans | Mid Cap Equity Securities | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Pension plans with Plan Assets | 18,183 | 15,423 | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension Benefits, U.S. Plans | Small Cap Equity Securities | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Pension plans with Plan Assets | 12,145 | 11,451 | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension Benefits, U.S. Plans | International Equities | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Pension plans with Plan Assets | 2,525 | 2,643 | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension Benefits, U.S. Plans | Cash and Cash Equivalents | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Pension plans with Plan Assets | 5,869 | 3,848 | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension Benefits, Non-U.S. Plans | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Pension plans with Plan Assets | 572 | 215 | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension Benefits, Non-U.S. Plans | Cash and Cash Equivalents | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Pension plans with Plan Assets | 572 | 215 | ' |
Significant Other Observable Inputs (Level 2) | Pension Benefits, U.S. Plans | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Pension plans with Plan Assets | 208,039 | 164,307 | ' |
Significant Other Observable Inputs (Level 2) | Pension Benefits, U.S. Plans | U.S. Treasury and other government | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Pension plans with Plan Assets | 11,203 | 10,288 | ' |
Significant Other Observable Inputs (Level 2) | Pension Benefits, U.S. Plans | State and Municipal Debt Obligations | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Pension plans with Plan Assets | 456 | 455 | ' |
Significant Other Observable Inputs (Level 2) | Pension Benefits, U.S. Plans | Foreign Covered Bonds | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Pension plans with Plan Assets | 1,264 | 2,342 | ' |
Significant Other Observable Inputs (Level 2) | Pension Benefits, U.S. Plans | Mortgage-backed securities | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Pension plans with Plan Assets | 7,255 | 7,332 | ' |
Significant Other Observable Inputs (Level 2) | Pension Benefits, U.S. Plans | Corporate bonds | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Pension plans with Plan Assets | 17,254 | 14,550 | ' |
Significant Other Observable Inputs (Level 2) | Pension Benefits, U.S. Plans | Equity Mutual Funds | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Pension plans with Plan Assets | 126,513 | 90,260 | ' |
Significant Other Observable Inputs (Level 2) | Pension Benefits, U.S. Plans | Debt Mutual Funds | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Pension plans with Plan Assets | 44,094 | 39,080 | ' |
Significant Other Observable Inputs (Level 2) | Pension Benefits, Non-U.S. Plans | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Pension plans with Plan Assets | 147,849 | 128,528 | ' |
Significant Other Observable Inputs (Level 2) | Pension Benefits, Non-U.S. Plans | Foreign Covered Bonds | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Pension plans with Plan Assets | 210 | 261 | ' |
Significant Other Observable Inputs (Level 2) | Pension Benefits, Non-U.S. Plans | Pooled Equity Securities Funds | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Pension plans with Plan Assets | 82,534 | 80,550 | ' |
Significant Other Observable Inputs (Level 2) | Pension Benefits, Non-U.S. Plans | Pooled Funds Fixed Income Securities | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Pension plans with Plan Assets | 63,657 | 46,428 | ' |
Significant Other Observable Inputs (Level 2) | Pension Benefits, Non-U.S. Plans | Mutual funds | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Pension plans with Plan Assets | 1,448 | 1,289 | ' |
Significant Unobservable Inputs (Level 3) | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Pension plans with Plan Assets | 29,568 | 44,158 | 43,569 |
Significant Unobservable Inputs (Level 3) | Pension Benefits, U.S. Plans | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Pension plans with Plan Assets | 910 | 17,845 | ' |
Significant Unobservable Inputs (Level 3) | Pension Benefits, U.S. Plans | Limited Partner | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Pension plans with Plan Assets | 910 | 1,159 | ' |
Significant Unobservable Inputs (Level 3) | Pension Benefits, U.S. Plans | Common Collective Trusts | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Pension plans with Plan Assets | ' | 16,686 | ' |
Significant Unobservable Inputs (Level 3) | Pension Benefits, Non-U.S. Plans | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Pension plans with Plan Assets | 28,658 | 26,313 | ' |
Significant Unobservable Inputs (Level 3) | Pension Benefits, Non-U.S. Plans | Insurance Contracts | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Pension plans with Plan Assets | $28,658 | $26,313 | ' |
Activity_that_Occured_for_Leve
Activity that Occured for Level Three Assets (Detail) (Significant Unobservable Inputs (Level 3), USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | 31-May-14 | 31-May-13 | ||
Significant Unobservable Inputs (Level 3) | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Balance at Beginning of Period | $44,158 | $43,569 | ||
Actual Return on Plan Assets For Assets Still Held at Reporting Date | 564 | 1,283 | ||
Actual Return on Plan Assets For Assets Sold During Year | 47 | 924 | ||
Settlements | -15,201 | [1] | -1,618 | [1] |
Balance at End of Period | $29,568 | $44,158 | ||
[1] | Includes the impact of exchange rate changes during the year. |
Components_of_Net_Postretireme
Components of Net Postretirement Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
Postretirement Benefits, U.S. Plans | ' | ' | ' |
Pension and Other Postretirement Benefits Disclosure [Line Items] | ' | ' | ' |
Interest cost on the accumulated obligation | $297 | $349 | $416 |
Prior service (credit) | -153 | -86 | -86 |
Net actuarial (gains) losses | -144 | 16 | -58 |
Net Pension Cost | ' | 279 | 272 |
Postretirement Benefits, Non-U.S. Plans | ' | ' | ' |
Pension and Other Postretirement Benefits Disclosure [Line Items] | ' | ' | ' |
Service cost - Benefits earned during the period | 1,264 | 1,185 | 745 |
Interest cost on the accumulated obligation | 1,225 | 1,188 | 968 |
Net actuarial (gains) losses | 516 | 470 | 72 |
Net Pension Cost | $3,005 | $2,843 | $1,785 |
Changes_in_Benefit_Obligation_
Changes in Benefit Obligation (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
Postretirement Benefits, U.S. Plans | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' |
Benefit obligation at beginning of year | $8,514 | $9,677 | ' |
Interest cost | 297 | 349 | 416 |
Benefits paid | -362 | -572 | ' |
Medicare subsidy received | 37 | 74 | ' |
Plan amendments | -1,471 | ' | ' |
Actuarial (gains) losses | -228 | -1,014 | ' |
Benefit Obligation at End of Year | 6,787 | 8,514 | 9,677 |
Postretirement Benefits, Non-U.S. Plans | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' |
Benefit obligation at beginning of year | 28,415 | 24,517 | ' |
Service cost | 1,264 | 1,185 | 745 |
Interest cost | 1,225 | 1,188 | 968 |
Benefits paid | -421 | -441 | ' |
Actuarial (gains) losses | -766 | 1,988 | ' |
Currency exchange rate changes | -1,462 | -22 | ' |
Benefit Obligation at End of Year | $28,255 | $28,415 | $24,517 |
Amounts_Recognized_in_Consolid1
Amounts Recognized in Consolidated Balance Sheets, Postretirement (Detail) (USD $) | 31-May-14 | 31-May-13 |
In Thousands, unless otherwise specified | ||
Postretirement Benefits, U.S. Plans | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' |
Current liabilities | ($410) | ($642) |
Noncurrent liabilities | -6,377 | -7,872 |
Net Amount Recognized | -6,787 | -8,514 |
Postretirement Benefits, Non-U.S. Plans | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' |
Current liabilities | -522 | -486 |
Noncurrent liabilities | -27,733 | -27,929 |
Net Amount Recognized | ($28,255) | ($28,415) |
Pretax_Net_Actuarial_Loss_Prio1
Pretax Net Actuarial Loss, Prior Service (Cost) and Transition Assets/(Obligation) Recognized in Accumulated Other Comprehensive Income (Loss) not Affecting Retained Earnings, Postretirement (Detail) (USD $) | 31-May-14 | 31-May-13 |
In Thousands, unless otherwise specified | ||
Postretirement Benefits, U.S. Plans | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Net actuarial gain (loss) | $1,080 | $996 |
Prior service credits | 1,834 | 516 |
Total recognized in accumulated other comprehensive income not affecting retained earnings | 2,914 | 1,512 |
Postretirement Benefits, Non-U.S. Plans | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Net actuarial gain (loss) | -9,136 | -10,950 |
Total recognized in accumulated other comprehensive income not affecting retained earnings | ($9,136) | ($10,950) |
Changes_Recognized_in_Other_Co1
Changes Recognized in Other Comprehensive Income, Postretirement Benefits (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | 31-May-14 | 31-May-13 |
Postretirement Benefits, U.S. Plans | ' | ' |
Changes in plan assets and benefit obligations recognized in other comprehensive income: | ' | ' |
Prior service cost | ($1,471) | ' |
Net loss (gain) arising during the year | -228 | -1,014 |
Amounts recognized as a component of net periodic benefit cost: | ' | ' |
Amortization or curtailment recognition of prior service credit (cost) | 153 | 86 |
Amortization or settlement recognition of net gain (loss) | 144 | -16 |
Total recognized in other comprehensive loss (income) | -1,402 | -944 |
Postretirement Benefits, Non-U.S. Plans | ' | ' |
Changes in plan assets and benefit obligations recognized in other comprehensive income: | ' | ' |
Net loss (gain) arising during the year | -766 | 1,988 |
Effect of exchange rates on amounts included in AOCI | -532 | -9 |
Amounts recognized as a component of net periodic benefit cost: | ' | ' |
Amortization or settlement recognition of net gain (loss) | -516 | -470 |
Total recognized in other comprehensive loss (income) | ($1,814) | $1,509 |
WeightedAverage_Assumptions_us1
Weighted-Average Assumptions used to Determine Benefit Obligations and Net Periodic Postretirement Cost (Detail) | 12 Months Ended | ||
31-May-14 | 31-May-13 | 31-May-12 | |
Postretirement Benefits, U.S. Plans | ' | ' | ' |
Health Care Cost Trend Rates Assumptions [Line Items] | ' | ' | ' |
Year-End Benefit Obligations, Discount rate | 4.00% | 3.95% | ' |
Net Periodic Pension Cost, Discount rate | 3.95% | 3.75% | 4.75% |
Year-End Benefit Obligations, Current healthcare cost trend rate | 12.28% | 7.54% | ' |
Net Periodic Pension Cost, Healthcare cost trend rate | 7.54% | 7.70% | 7.87% |
Year-End Benefit Obligations, Ultimate healthcare cost trend rate | 4.50% | 4.50% | ' |
Net Periodic Pension Cost, Ultimate healthcare cost trend rate | 4.50% | 4.50% | 4.50% |
Net Periodic Pension Cost, Year ultimate healthcare cost trend rate will be realized | '2029 | '2029 | '2029 |
Postretirement Benefits, Non-U.S. Plans | ' | ' | ' |
Health Care Cost Trend Rates Assumptions [Line Items] | ' | ' | ' |
Year-End Benefit Obligations, Discount rate | 4.40% | 4.50% | ' |
Net Periodic Pension Cost, Discount rate | 4.50% | 4.75% | 5.75% |
Year-End Benefit Obligations, Current healthcare cost trend rate | 6.31% | 6.43% | ' |
Net Periodic Pension Cost, Healthcare cost trend rate | 6.43% | 6.92% | 7.00% |
Year-End Benefit Obligations, Ultimate healthcare cost trend rate | 4.20% | 4.20% | ' |
Net Periodic Pension Cost, Ultimate healthcare cost trend rate | 4.20% | 4.20% | 4.50% |
Net Periodic Pension Cost, Year ultimate healthcare cost trend rate will be realized | '2030 | '2030 | '2030 |
Increasing_or_Decreasing_Curre
Increasing or Decreasing Current Health Care Cost Trend (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | 31-May-14 | 31-May-13 |
Postretirement Benefits, U.S. Plans | ' | ' |
Assumed Health Care Cost Trend Rates, Effect of One Percentage Point Change [Line Items] | ' | ' |
1% Increase in trend rate, accumulated benefit obligation | $239 | $296 |
1% Increase in trend rate, postretirement cost | 11 | 15 |
1% Decrease in trend rate, accumulated benefit obligation | -209 | -265 |
1% Decrease in trend rate, postretirement cost | -10 | -13 |
Postretirement Benefits, Non-U.S. Plans | ' | ' |
Assumed Health Care Cost Trend Rates, Effect of One Percentage Point Change [Line Items] | ' | ' |
1% Increase in trend rate, accumulated benefit obligation | 6,502 | 9,080 |
1% Increase in trend rate, postretirement cost | 727 | 647 |
1% Decrease in trend rate, accumulated benefit obligation | -5,011 | -3,802 |
1% Decrease in trend rate, postretirement cost | ($534) | ($481) |
Postretirement_Benefits_Additi
Postretirement Benefits - Additional Information (Detail) (USD $) | 12 Months Ended | |
31-May-14 | 31-May-13 | |
Medicare | ' | ' |
Schedule of Pension and Other Postretirement Benefits Expected Benefit Payments [Line Items] | ' | ' |
Reimbursement from medicare | $37,000 | $74,000 |
Minimum | POSTRETIREMENT BENEFITS | ' | ' |
Schedule of Pension and Other Postretirement Benefits Expected Benefit Payments [Line Items] | ' | ' |
Estimated benefits payable in the first year | 900,000 | ' |
Estimated benefits payable in the second year | 900,000 | ' |
Estimated benefits payable in the third year | 900,000 | ' |
Estimated benefits payable in the fourth year | 900,000 | ' |
Estimated benefits payable in the fifth year | 900,000 | ' |
Estimated benefits payable in the years thereafter | 8,200,000 | ' |
Maximum | POSTRETIREMENT BENEFITS | ' | ' |
Schedule of Pension and Other Postretirement Benefits Expected Benefit Payments [Line Items] | ' | ' |
Estimated benefits payable in the first year | 1,300,000 | ' |
Estimated benefits payable in the second year | 1,300,000 | ' |
Estimated benefits payable in the third year | 1,300,000 | ' |
Estimated benefits payable in the fourth year | 1,300,000 | ' |
Estimated benefits payable in the fifth year | $1,300,000 | ' |
Reorganization_Proceedings_of_1
Reorganization Proceedings of Certain Subsidiaries - Additional Information (Detail) (USD $) | 12 Months Ended | 12 Months Ended | |||||||||
31-May-14 | 31-May-10 | 31-May-08 | 31-May-14 | 31-May-14 | 31-May-14 | 31-May-08 | 31-May-13 | 30-May-10 | 31-May-06 | 31-May-14 | |
Second Anniversary | Third Anniversary | Fourth Anniversary | Subsidiaries | Subsidiaries | Subsidiaries | Subsidiaries | NMBFil Inc | ||||
Reorganization [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount funded for trust as per agreement | $450,000,000 | ' | ' | $102,500,000 | $120,000,000 | $125,000,000 | ' | ' | ' | ' | $2,500,000 |
Percentage of interest accrue on aggregate funding amount | 3.45% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current and future asbestos claims | ' | ' | ' | ' | ' | ' | ' | 1,170,000,000 | ' | ' | ' |
Asbestos-related products liability claims paid | ' | 92,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asbestos-related products liability, defense-related payments | 1,100,000 | 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 | ' | ' | ' | ' |
Accrued_Loss_Reserves_Detail
Accrued Loss Reserves (Detail) (USD $) | 31-May-14 | 31-May-13 |
In Thousands, unless otherwise specified | ||
Schedule of Accrued Liabilities [Line Items] | ' | ' |
Accrued loss reserves - Current | $27,487 | $27,591 |
Accrued loss reserves - Noncurrent | 32,232 | 33,502 |
Accrued product liability reserves | ' | ' |
Schedule of Accrued Liabilities [Line Items] | ' | ' |
Accrued loss reserves - Current | 10,589 | 15,582 |
Accrued loss reserves - Noncurrent | 29,653 | 29,489 |
Accrued warranty reserves | ' | ' |
Schedule of Accrued Liabilities [Line Items] | ' | ' |
Accrued loss reserves - Current | 14,167 | 8,591 |
Accrued loss reserves - Noncurrent | 574 | 739 |
Accrued environmental reserves | ' | ' |
Schedule of Accrued Liabilities [Line Items] | ' | ' |
Accrued loss reserves - Current | 2,731 | 3,418 |
Accrued loss reserves - Noncurrent | $2,005 | $3,274 |
Changes_in_Accrued_Warranty_Ba
Changes in Accrued Warranty Balances (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 | |||
Product Liability Contingency [Line Items] | ' | ' | ' | |||
Beginning Balance | $9,330 | $14,751 | $17,196 | |||
Deductions | -19,155 | [1] | -20,115 | [1] | -18,143 | [1] |
Provision charged to SG&A expense | 24,566 | 14,260 | 15,513 | |||
Acquisitions | ' | 434 | 185 | |||
Ending Balance | $14,741 | $9,330 | $14,751 | |||
[1] | Primarily claims paid during the year. |
Contingencies_and_Other_Accrue2
Contingencies and Other Accrued Losses - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | 31-May-10 | 31-May-13 |
Complaint | |||
Schedule Of Commitments And Contingencies [Line Items] | ' | ' | ' |
Accrued contingencies | ' | ' | $65.10 |
Payment for contingent liabilities | 61.9 | ' | ' |
Expected payment to resolve issues arising out of investigation and other related costs | 2.1 | ' | ' |
Miscellaneous expenses | $1.10 | $42.60 | ' |
Number of complaints filed against Rust-Oleum and RPM International | 2 | ' | ' |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 12 Months Ended | ||
31-May-14 | 31-May-13 | 31-May-12 | |
Segment Reporting Information [Line Items] | ' | ' | ' |
Number of reportable segments | 2 | ' | ' |
Number of operating segments | 7 | ' | ' |
Sales | Consumer Segment | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Percentage of net sales | 29.00% | 28.00% | 28.00% |
Sales | Home Depot | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Percentage of net sales | 11.00% | ' | ' |
Sales | Home Depot | Maximum | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Percentage of net sales | ' | 10.00% | 10.00% |
Results_of_Reportable_Segments
Results of Reportable Segments (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||
In Thousands, unless otherwise specified | 31-May-14 | Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | 31-May-13 | Feb. 28, 2013 | Nov. 30, 2012 | Aug. 31, 2012 | 31-May-14 | 31-May-13 | 31-May-12 | |||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Net Sales | $1,276,782 | $863,410 | $1,071,487 | $1,164,674 | $1,170,779 | [1] | $843,736 | [2],[3],[4] | $1,017,426 | [2],[3],[5] | $1,046,714 | [2],[3],[6] | $4,376,353 | [7] | $4,078,655 | [7] | $3,777,416 | [7] |
Income (Expense) Before Income Taxes | ' | ' | ' | ' | ' | ' | ' | ' | 424,487 | [8] | 176,891 | [8] | 328,289 | [8] | ||||
Interest (Expense), Net | ' | ' | ' | ' | ' | ' | ' | ' | -65,236 | [9] | -73,668 | [9] | -67,859 | [9] | ||||
EBIT | ' | ' | ' | ' | ' | ' | ' | ' | 489,723 | [10] | 250,559 | [10] | 396,148 | [10] | ||||
Total Assets | 4,378,365 | ' | ' | ' | 4,120,847 | ' | ' | ' | 4,378,365 | 4,120,847 | 3,561,813 | |||||||
Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 93,792 | 91,367 | 71,615 | |||||||
Depreciation and Amortization | ' | ' | ' | ' | ' | ' | ' | ' | 90,069 | 86,336 | 76,023 | |||||||
Industrial Segment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 2,769,657 | 2,635,976 | 2,535,238 | |||||||
Income (Expense) Before Income Taxes | ' | ' | ' | ' | ' | ' | ' | ' | 295,751 | [8] | 164,578 | [8] | 278,676 | [8] | ||||
Interest (Expense), Net | ' | ' | ' | ' | ' | ' | ' | ' | -10,227 | [9] | -10,318 | [9] | -3,770 | [9] | ||||
EBIT | ' | ' | ' | ' | ' | ' | ' | ' | 305,978 | [10] | 174,896 | [10] | 282,446 | [10] | ||||
Total Assets | 2,507,257 | ' | ' | ' | 2,461,163 | ' | ' | ' | 2,507,257 | 2,461,163 | 2,195,702 | |||||||
Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 54,556 | 50,025 | 47,529 | |||||||
Depreciation and Amortization | ' | ' | ' | ' | ' | ' | ' | ' | 53,670 | 53,549 | 48,701 | |||||||
Consumer Segment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,606,696 | 1,442,679 | 1,242,178 | |||||||
Income (Expense) Before Income Taxes | ' | ' | ' | ' | ' | ' | ' | ' | 251,229 | [8] | 190,611 | [8] | 160,099 | [8] | ||||
Interest (Expense), Net | ' | ' | ' | ' | ' | ' | ' | ' | 122 | [9] | -10 | [9] | 18 | [9] | ||||
EBIT | ' | ' | ' | ' | ' | ' | ' | ' | 251,107 | [10] | 190,621 | [10] | 160,081 | [10] | ||||
Total Assets | 1,648,272 | ' | ' | ' | 1,584,336 | ' | ' | ' | 1,648,272 | 1,584,336 | 1,184,609 | |||||||
Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 35,391 | 35,081 | 17,156 | |||||||
Depreciation and Amortization | ' | ' | ' | ' | ' | ' | ' | ' | 31,378 | 28,624 | 23,656 | |||||||
Corporate/Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Income (Expense) Before Income Taxes | ' | ' | ' | ' | ' | ' | ' | ' | -122,493 | [8] | -178,298 | [8] | -110,486 | [8] | ||||
Interest (Expense), Net | ' | ' | ' | ' | ' | ' | ' | ' | -55,131 | [9] | -63,340 | [9] | -64,107 | [9] | ||||
EBIT | ' | ' | ' | ' | ' | ' | ' | ' | -67,362 | [10] | -114,958 | [10] | -46,379 | [10] | ||||
Total Assets | 222,836 | ' | ' | ' | 75,348 | ' | ' | ' | 222,836 | 75,348 | 181,502 | |||||||
Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 3,845 | 6,261 | 6,930 | |||||||
Depreciation and Amortization | ' | ' | ' | ' | ' | ' | ' | ' | $5,021 | $4,163 | $3,666 | |||||||
[1] | For the quarter ended May 31, 2013, we recorded $23.9 million in restructuring expense, including $3.9 million in inventory markdowns. We also recorded bad debt for the remaining amount of our loan to Kemrock totaling $4.0 million and wrote off our remaining investment in Kemrock common stock and in Kemrock convertible debt for a combined loss of $18.5 million. Additionally, we reduced our estimated accrual for our agreement in principle with the GSA by $3.7 million. The combined impact of these items on net income and earnings per share for the fourth quarter was $30.0 million and $0.23 per share, respectively. | |||||||||||||||||
[2] | Restated | |||||||||||||||||
[3] | During August 2014, we determined that there was an error in the timing of the disclosure and accrual of loss reserves associated with our settlement of the GSA and DOJ investigation into compliance issues related to GSA contracts at our Tremco Group. We filed amended Quarterly Reports on Form 10-Q/A in August 2014 with corrected financial statements for the periods ended August 31, 2012, November 30, 2012 and February 28, 2013. The corrections reduced net income by $7.2 million and $10.8 million for the quarterly periods ended August 31, 2012 and November 30, 2012, respectively, and increased net income for the quarterly period ended February 28, 2013 by $18.0 million. The corrections reduced basic and diluted earnings per share by $0.06 for the quarter ended August 31, 2012; and by $0.09 and $0.08, respectively, for the quarterly period ended November 30, 2012; and increased basic and diluted earnings per share by $0.14 for the quarterly period ended February 28, 2013. The figures presented in the table above represent the corrected amounts for each quarter. | |||||||||||||||||
[4] | For the quarter ended February 28, 2013, net income was impacted by $1.6 million for the impact of a strategic repositioning of certain industrial segment operations in Brazil. Additionally, we recorded a charge for $40.5 million ($34.6 million after-tax) in relation to the items described in (e) below. | |||||||||||||||||
[5] | For the quarter ended November 30, 2012, we wrote down our remaining investment in Kemrock, which impacted net income and earnings per share by $10.8 million and $0.09 per share, respectively. Additionally, we recorded a charge for $16.9 million ($10.8 million after-tax) in relation to the items described in (e) below. | |||||||||||||||||
[6] | For the quarter ended August 31, 2012, net sales and gross profit were reduced by $2.9 million and $5.4 million, respectively, for revised cost estimates on unprofitable contracts related to our industrial segment, and $5.6 million in exit costs associated with those activities that impacted pretax income. Additionally, we wrote down an investment in Kemrock totaling $40.3 million and recognized $5.0 million in bad debt from our loan to Kemrock. The combined impact on net income and earnings per share was $50.9 million and $0.38 per share, respectively. Lastly, we recorded a charge for $11.4 million ($7.2 million after-tax) in relation to the items described in (e) below. | |||||||||||||||||
[7] | It is not practicable to obtain the information needed to disclose revenues attributable to each of our product lines. | |||||||||||||||||
[8] | The presentation includes a reconciliation of Income (Loss) Before Income Taxes, a measure defined by Generally Accepted Accounting Principles (GAAP) in the United States, to EBIT. | |||||||||||||||||
[9] | Interest (expense), net includes the combination of interest expense and investment expense (income), net. | |||||||||||||||||
[10] | EBIT is defined as earnings (loss) before interest and taxes. We evaluate the profit performance of our segments based on income before income taxes, but also look to EBIT as a performance evaluation measure because interest expense is essentially related to corporate acquisitions, as opposed to segment operations. For that reason, we believe EBIT is also useful to investors as a metric in their investment decisions. EBIT should not be considered an alternative to, or more meaningful than, operating income as determined in accordance with GAAP, since EBIT omits the impact of interest and taxes in determining operating performance, which represent items necessary to our continued operations, given our level of indebtedness and ongoing tax obligations. Nonetheless, EBIT is a key measure expected by and useful to our fixed income investors, rating agencies and the banking community, all of whom believe, and we concur, that this measure is critical to the capital markets' analysis of our segments' core operating performance. We also evaluate EBIT because it is clear that movements in EBIT impact our ability to attract financing. Our underwriters and bankers consistently require inclusion of this measure in offering memoranda in conjunction with any debt underwriting or bank financing. EBIT may not be indicative of our historical operating results, nor is it meant to be predictive of potential future results. |
Net_Sales_and_Long_Lived_Asset
Net Sales and Long Lived Assets by Regions (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, unless otherwise specified | 31-May-14 | Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | 31-May-13 | Feb. 28, 2013 | Nov. 30, 2012 | Aug. 31, 2012 | 31-May-14 | 31-May-13 | 31-May-12 | ||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net Sales | $1,276,782 | $863,410 | $1,071,487 | $1,164,674 | $1,170,779 | [1] | $843,736 | [2],[3],[4] | $1,017,426 | [2],[3],[5] | $1,046,714 | [2],[3],[6] | $4,376,353 | [7] | $4,078,655 | [7] | $3,777,416 | [7] | |
Long-Lived Assets | 2,308,127 | [8] | ' | ' | ' | 2,229,254 | [8] | ' | ' | ' | 2,308,127 | [8] | 2,229,254 | [8] | 1,824,494 | [8] | |||
UNITED STATES | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 2,581,208 | [7] | 2,404,835 | [7] | 2,219,680 | [7] | |||||
Long-Lived Assets | 1,374,340 | [8] | ' | ' | ' | 1,311,640 | [8] | ' | ' | ' | 1,374,340 | [8] | 1,311,640 | [8] | 1,124,403 | [8] | |||
Foreign | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,795,145 | [7] | 1,673,820 | [7] | 1,557,736 | [7] | |||||
Long-Lived Assets | 933,787 | [8] | ' | ' | ' | 917,614 | [8] | ' | ' | ' | 933,787 | [8] | 917,614 | [8] | 700,091 | [8] | |||
Foreign | CANADA | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 342,312 | [7] | 350,579 | [7] | 346,238 | [7] | |||||
Long-Lived Assets | 125,401 | [8] | ' | ' | ' | 126,172 | [8] | ' | ' | ' | 125,401 | [8] | 126,172 | [8] | 128,392 | [8] | |||
Foreign | Europe | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,031,686 | [7] | 908,139 | [7] | 919,124 | [7] | |||||
Long-Lived Assets | 340,146 | [8] | ' | ' | ' | 340,592 | [8] | ' | ' | ' | 340,146 | [8] | 340,592 | [8] | 315,228 | [8] | |||
Foreign | Other Foreign Country | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 421,147 | [7] | 415,102 | [7] | 292,374 | [7] | |||||
Long-Lived Assets | 208,411 | [8] | ' | ' | ' | 213,726 | [8] | ' | ' | ' | 208,411 | [8] | 213,726 | [8] | 64,316 | [8] | |||
Foreign | UNITED KINGDOM | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Long-Lived Assets | $259,829 | [8] | ' | ' | ' | $237,124 | [8] | ' | ' | ' | $259,829 | [8] | $237,124 | [8] | $192,155 | [8] | |||
[1] | For the quarter ended May 31, 2013, we recorded $23.9 million in restructuring expense, including $3.9 million in inventory markdowns. We also recorded bad debt for the remaining amount of our loan to Kemrock totaling $4.0 million and wrote off our remaining investment in Kemrock common stock and in Kemrock convertible debt for a combined loss of $18.5 million. Additionally, we reduced our estimated accrual for our agreement in principle with the GSA by $3.7 million. The combined impact of these items on net income and earnings per share for the fourth quarter was $30.0 million and $0.23 per share, respectively. | ||||||||||||||||||
[2] | Restated | ||||||||||||||||||
[3] | During August 2014, we determined that there was an error in the timing of the disclosure and accrual of loss reserves associated with our settlement of the GSA and DOJ investigation into compliance issues related to GSA contracts at our Tremco Group. We filed amended Quarterly Reports on Form 10-Q/A in August 2014 with corrected financial statements for the periods ended August 31, 2012, November 30, 2012 and February 28, 2013. The corrections reduced net income by $7.2 million and $10.8 million for the quarterly periods ended August 31, 2012 and November 30, 2012, respectively, and increased net income for the quarterly period ended February 28, 2013 by $18.0 million. The corrections reduced basic and diluted earnings per share by $0.06 for the quarter ended August 31, 2012; and by $0.09 and $0.08, respectively, for the quarterly period ended November 30, 2012; and increased basic and diluted earnings per share by $0.14 for the quarterly period ended February 28, 2013. The figures presented in the table above represent the corrected amounts for each quarter. | ||||||||||||||||||
[4] | For the quarter ended February 28, 2013, net income was impacted by $1.6 million for the impact of a strategic repositioning of certain industrial segment operations in Brazil. Additionally, we recorded a charge for $40.5 million ($34.6 million after-tax) in relation to the items described in (e) below. | ||||||||||||||||||
[5] | For the quarter ended November 30, 2012, we wrote down our remaining investment in Kemrock, which impacted net income and earnings per share by $10.8 million and $0.09 per share, respectively. Additionally, we recorded a charge for $16.9 million ($10.8 million after-tax) in relation to the items described in (e) below. | ||||||||||||||||||
[6] | For the quarter ended August 31, 2012, net sales and gross profit were reduced by $2.9 million and $5.4 million, respectively, for revised cost estimates on unprofitable contracts related to our industrial segment, and $5.6 million in exit costs associated with those activities that impacted pretax income. Additionally, we wrote down an investment in Kemrock totaling $40.3 million and recognized $5.0 million in bad debt from our loan to Kemrock. The combined impact on net income and earnings per share was $50.9 million and $0.38 per share, respectively. Lastly, we recorded a charge for $11.4 million ($7.2 million after-tax) in relation to the items described in (e) below. | ||||||||||||||||||
[7] | It is not practicable to obtain the information needed to disclose revenues attributable to each of our product lines. | ||||||||||||||||||
[8] | Long-lived assets include all non-current assets, excluding non-current deferred income taxes. |
Quarterly_Result_of_Operations
Quarterly Result of Operations (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | 31-May-14 | Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | 31-May-13 | Feb. 28, 2013 | Nov. 30, 2012 | Aug. 31, 2012 | 31-May-14 | 31-May-13 | 31-May-12 | |||||||
Quarterly Financial Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Net Sales | $1,276,782 | $863,410 | $1,071,487 | $1,164,674 | $1,170,779 | [1] | $843,736 | [2],[3],[4] | $1,017,426 | [2],[3],[5] | $1,046,714 | [2],[3],[6] | $4,376,353 | [7] | $4,078,655 | [7] | $3,777,416 | [7] |
Gross Profit | 560,725 | 358,026 | 457,945 | 499,072 | 500,274 | [1] | 343,564 | [2],[3],[4] | 425,001 | [2],[3],[5] | 433,880 | [2],[3],[6] | 1,875,768 | 1,702,719 | 1,542,263 | |||
Net Income (Loss) Attributable to RPM International Inc. Stockholders | $108,779 | $16,221 | $63,562 | $103,098 | $65,378 | [1] | ($24,364) | [2],[3],[4] | $30,924 | [2],[3],[5] | $26,665 | [2],[3],[6] | $291,660 | $98,603 | $215,936 | |||
Basic Earnings (Loss) Per Share | $0.82 | $0.12 | $0.48 | $0.78 | $0.49 | [1] | ($0.19) | [2],[3],[4] | $0.23 | [2],[3],[5] | $0.20 | [2],[3],[6] | $2.20 | $0.75 | $1.65 | |||
Diluted Earnings (Loss) Per Share | $0.80 | $0.12 | $0.48 | $0.77 | $0.49 | [1] | ($0.19) | [2],[3],[4] | $0.23 | [2],[3],[5] | $0.20 | [2],[3],[6] | $2.18 | $0.74 | $1.65 | |||
Dividends Per Share | $0.24 | $0.24 | $0.24 | $0.23 | $0.23 | [1] | $0.23 | [2],[3],[4] | $0.23 | [2],[3],[5] | $0.22 | [2],[3],[6] | $0.95 | $0.89 | $0.86 | |||
[1] | For the quarter ended May 31, 2013, we recorded $23.9 million in restructuring expense, including $3.9 million in inventory markdowns. We also recorded bad debt for the remaining amount of our loan to Kemrock totaling $4.0 million and wrote off our remaining investment in Kemrock common stock and in Kemrock convertible debt for a combined loss of $18.5 million. Additionally, we reduced our estimated accrual for our agreement in principle with the GSA by $3.7 million. The combined impact of these items on net income and earnings per share for the fourth quarter was $30.0 million and $0.23 per share, respectively. | |||||||||||||||||
[2] | Restated | |||||||||||||||||
[3] | During August 2014, we determined that there was an error in the timing of the disclosure and accrual of loss reserves associated with our settlement of the GSA and DOJ investigation into compliance issues related to GSA contracts at our Tremco Group. We filed amended Quarterly Reports on Form 10-Q/A in August 2014 with corrected financial statements for the periods ended August 31, 2012, November 30, 2012 and February 28, 2013. The corrections reduced net income by $7.2 million and $10.8 million for the quarterly periods ended August 31, 2012 and November 30, 2012, respectively, and increased net income for the quarterly period ended February 28, 2013 by $18.0 million. The corrections reduced basic and diluted earnings per share by $0.06 for the quarter ended August 31, 2012; and by $0.09 and $0.08, respectively, for the quarterly period ended November 30, 2012; and increased basic and diluted earnings per share by $0.14 for the quarterly period ended February 28, 2013. The figures presented in the table above represent the corrected amounts for each quarter. | |||||||||||||||||
[4] | For the quarter ended February 28, 2013, net income was impacted by $1.6 million for the impact of a strategic repositioning of certain industrial segment operations in Brazil. Additionally, we recorded a charge for $40.5 million ($34.6 million after-tax) in relation to the items described in (e) below. | |||||||||||||||||
[5] | For the quarter ended November 30, 2012, we wrote down our remaining investment in Kemrock, which impacted net income and earnings per share by $10.8 million and $0.09 per share, respectively. Additionally, we recorded a charge for $16.9 million ($10.8 million after-tax) in relation to the items described in (e) below. | |||||||||||||||||
[6] | For the quarter ended August 31, 2012, net sales and gross profit were reduced by $2.9 million and $5.4 million, respectively, for revised cost estimates on unprofitable contracts related to our industrial segment, and $5.6 million in exit costs associated with those activities that impacted pretax income. Additionally, we wrote down an investment in Kemrock totaling $40.3 million and recognized $5.0 million in bad debt from our loan to Kemrock. The combined impact on net income and earnings per share was $50.9 million and $0.38 per share, respectively. Lastly, we recorded a charge for $11.4 million ($7.2 million after-tax) in relation to the items described in (e) below. | |||||||||||||||||
[7] | It is not practicable to obtain the information needed to disclose revenues attributable to each of our product lines. |
Quarterly_Result_of_Operations1
Quarterly Result of Operations (Parenthetical) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||
31-May-13 | Feb. 28, 2013 | Nov. 30, 2012 | Aug. 31, 2012 | 31-May-14 | 31-May-13 | 31-May-12 | |
Quarterly Financial Information [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Reduction in Net Sales | ' | ' | ' | $2,900,000 | ' | ' | ' |
Reduction in the Gross Profit | ' | ' | ' | 5,400,000 | ' | ' | ' |
Exit costs associated on unprofitable contract | ' | ' | ' | 5,600,000 | ' | ' | ' |
Impairment on investment in Kemrock | 18,500,000 | ' | ' | 40,300,000 | ' | 51,092,000 | ' |
Bad debt from loan to Kemrock | 4,000,000 | ' | ' | 5,000,000 | 7,600,000 | 18,800,000 | 5,800,000 |
Impacted net income | 30,000,000 | ' | 10,800,000 | 50,900,000 | ' | ' | ' |
Impacted earnings per share | $0.23 | ' | $0.09 | $0.38 | ' | ' | ' |
Error correction, charges | ' | ' | ' | ' | ' | 65,134,000 | ' |
Impacted net income due to strategic repositioning | ' | 1,600,000 | ' | ' | ' | ' | ' |
Restructuring charges | 23,900,000 | ' | ' | ' | 243,000 | 20,072,000 | ' |
Inventory markdowns | 3,900,000 | ' | ' | ' | ' | ' | ' |
Reduction in estimated accrual | 3,700,000 | ' | ' | ' | ' | ' | ' |
Adjustments | ' | ' | ' | ' | ' | ' | ' |
Quarterly Financial Information [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Error correction, charges | ' | 40,500,000 | 16,900,000 | 11,400,000 | ' | ' | ' |
Error correction, charges after tax | ' | 34,600,000 | 10,800,000 | 7,200,000 | ' | ' | ' |
Error correction, increase (decrease) in net income | ' | $18,000,000 | ($10,800,000) | ($7,200,000) | ' | ' | ' |
Error correction, increase (decrease) in basic earning per share | ' | $0.14 | ($0.09) | ($0.06) | ' | ' | ' |
Error correction, increase (decrease) in diluted earning per share | ' | $0.14 | ($0.08) | ($0.06) | ' | ' | ' |
Recovered_Sheet1
Valuation and Qualifying Accounts and Reserves (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 | |||
Allowance for Doubtful Accounts, Current | ' | ' | ' | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Balance at beginning of Period | $28,904 | $26,507 | $27,597 | |||
Charged to Selling, General and Administrative | 7,618 | 9,799 | 5,811 | |||
(Deductions) Additions | -8,881 | [1] | -7,402 | [1] | -6,901 | [1] |
Balance at End of Period | 27,641 | 28,904 | 26,507 | |||
Accrued product liability reserves | ' | ' | ' | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Balance at beginning of Period | 15,582 | 11,736 | 12,973 | |||
Charged to Selling, General and Administrative | 3,186 | 5,499 | 6,221 | |||
Acquisitions (Disposals) of Businesses and Reclassifications | ' | ' | -699 | [2] | ||
(Deductions) Additions | -8,179 | [3] | -1,653 | [3] | -6,759 | [3] |
Balance at End of Period | 10,589 | 15,582 | 11,736 | |||
Accrued loss reserves | ' | ' | ' | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Balance at beginning of Period | 3,418 | 3,580 | 4,357 | |||
Charged to Selling, General and Administrative | 275 | 195 | -310 | |||
Acquisitions (Disposals) of Businesses and Reclassifications | 494 | [2] | 227 | [2] | 1,316 | |
(Deductions) Additions | -1,456 | [3] | -584 | [3] | -1,783 | [3] |
Balance at End of Period | 2,731 | 3,418 | 3,580 | |||
Accrued warranty reserves | ' | ' | ' | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Balance at beginning of Period | 29,489 | 28,592 | 27,873 | |||
Charged to Selling, General and Administrative | 4,968 | 7,653 | 178 | |||
Acquisitions (Disposals) of Businesses and Reclassifications | ' | ' | 699 | [2] | ||
(Deductions) Additions | -4,804 | [3] | -6,756 | [3] | -158 | [3] |
Balance at End of Period | 29,653 | 29,489 | 28,592 | |||
Accrued environmental reserves | ' | ' | ' | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Balance at beginning of Period | 3,274 | 3,952 | 4,693 | |||
Charged to Selling, General and Administrative | ' | -60 | -631 | |||
Acquisitions (Disposals) of Businesses and Reclassifications | -494 | [2] | -227 | [2] | ' | |
(Deductions) Additions | -775 | [3] | -391 | [3] | -110 | [3] |
Balance at End of Period | $2,005 | $3,274 | $3,952 | |||
[1] | Uncollectible accounts written off, net of recoveries | |||||
[2] | Primarily transfers between current and noncurrent | |||||
[3] | Primarily claims paid during the year, net of insurance contributions |