Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Aug. 31, 2014 | Oct. 06, 2014 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Aug-14 | ' |
Document Fiscal Year Focus | '2015 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Trading Symbol | 'RPM | ' |
Entity Registrant Name | 'RPM INTERNATIONAL INC/DE/ | ' |
Entity Central Index Key | '0000110621 | ' |
Current Fiscal Year End Date | '--05-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 133,476,101 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Aug. 31, 2014 | 31-May-14 |
In Thousands, unless otherwise specified | ||
Current Assets | ' | ' |
Cash and cash equivalents | $225,025 | $332,868 |
Trade accounts receivable (less allowances of $29,197 and $27,641, respectively) | 946,887 | 873,946 |
Inventories | 628,463 | 613,644 |
Deferred income taxes | 22,251 | 22,281 |
Prepaid expenses and other current assets | 216,848 | 219,556 |
Total current assets | 2,039,474 | 2,062,295 |
Property, Plant and Equipment, at Cost | 1,193,599 | 1,191,676 |
Allowance for depreciation and amortization | -664,064 | -658,871 |
Property, plant and equipment, net | 529,535 | 532,805 |
Other Assets | ' | ' |
Goodwill | 1,152,318 | 1,147,374 |
Other intangible assets, net of amortization | 460,579 | 459,536 |
Deferred income taxes, non-current | 7,882 | 7,943 |
Other | 156,934 | 168,412 |
Total other assets | 1,777,713 | 1,783,265 |
Total Assets | 4,346,722 | 4,378,365 |
Current Liabilities | ' | ' |
Accounts payable | 408,961 | 525,680 |
Current portion of long-term debt | 1,677 | 5,662 |
Accrued compensation and benefits | 102,335 | 173,846 |
Accrued loss reserves | 19,016 | 27,487 |
Other accrued liabilities | 223,012 | 204,411 |
Total current liabilities | 755,001 | 937,086 |
Long-Term Liabilities | ' | ' |
Long-term debt, less current maturities | 1,476,349 | 1,345,965 |
Other long-term liabilities | 428,576 | 466,659 |
Deferred income taxes | 52,428 | 50,061 |
Total long-term liabilities | 1,957,353 | 1,862,685 |
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 138,386 and outstanding 133,511 as of August 2014; issued 138,039 and outstanding 133,273 as of May 2014 | 1,335 | 1,333 |
Paid-in capital | 796,041 | 790,102 |
Treasury stock, at cost | -90,095 | -85,400 |
Accumulated other comprehensive (loss) | -171,829 | -156,882 |
Retained earnings | 900,782 | 833,691 |
Total RPM International Inc. stockholders' equity | 1,436,234 | 1,382,844 |
Noncontrolling Interest | 198,134 | 195,750 |
Total equity | 1,634,368 | 1,578,594 |
Total Liabilities and Stockholders' Equity | $4,346,722 | $4,378,365 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Aug. 31, 2014 | 31-May-14 |
In Thousands, except Per Share data, unless otherwise specified | ||
Trade accounts receivable, allowances | $29,197 | $27,641 |
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 | 138,386 | 138,039 |
Common stock, outstanding | 133,511 | 133,273 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 3 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | ||
Net Sales | $1,203,896 | $1,164,674 | ||
Cost of Sales | 695,503 | 665,602 | ||
Gross Profit | 508,393 | 499,072 | ||
Selling, General and Administrative Expenses | 346,525 | 335,459 | ||
Interest Expense | 19,415 | 20,725 | ||
Investment (Income), Net | -3,803 | -3,894 | ||
Other (Income), Net | -1,822 | -434 | ||
Income (Loss) Before Income Taxes | 148,078 | 147,216 | ||
Provision for Income Taxes | 43,239 | 40,327 | ||
Net Income | 104,839 | 106,889 | ||
Less: Net Income Attributable to Noncontrolling Interests | 5,760 | 3,791 | ||
Net Income Attributable to RPM International Inc. Stockholders | $99,079 | $103,098 | ||
Average Number of Shares of Common Stock Outstanding: | ' | ' | ||
Basic | 130,094 | 129,344 | ||
Diluted | 135,032 | 130,294 | ||
Earnings per Share of Common Stock Attributable to RPM International Inc. Stockholders | ' | ' | ||
Basic | $0.74 | $0.78 | ||
Diluted | $0.73 | [1] | $0.77 | [1] |
Cash Dividends Declared per Share of Common Stock | $0.24 | $0.23 | ||
[1] | For the quarters ended August 31, 2014 and 2013, approximately 3,034,000 and 3,097,000 shares of stock, respectively, granted under stock-based compensation plans were excluded from the calculation of diluted earnings per share, as the effect would have been anti-dilutive. |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 |
Net Income | $104,839 | $106,889 |
Other comprehensive income, net of tax: | ' | ' |
Foreign currency translation adjustments | -21,266 | -13,414 |
Pension and other postretirement benefit liability adjustments (net of tax of $1,455 and $1,586, respectively) | 2,929 | 2,924 |
Unrealized gain (loss) on securities (net of tax of $114 and $(815), respectively) | 76 | -1,439 |
Unrealized gain (loss) on derivatives (net of tax of $(42) and $45, respectively) | -66 | 109 |
Total other comprehensive income | -18,327 | -11,820 |
Total Comprehensive Income | 86,512 | 95,069 |
Less: Comprehensive Income Attributable to Noncontrolling Interests | 2,380 | 7,627 |
Comprehensive Income Attributable to RPM International Inc. Stockholders | $84,132 | $87,442 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 |
Pension and Other Postretirement Benefit Liability Adjustments, Tax | $1,455 | $1,586 |
Unrealized gain (loss) on securities, Tax | 114 | -815 |
Unrealized gain (loss) on derivatives, Tax Benefit | ($42) | $45 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 |
Cash Flows From Operating Activities: | ' | ' |
Net Income | $104,839 | $106,889 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation | 15,048 | 14,431 |
Amortization | 8,246 | 7,882 |
Deferred income taxes | 1,984 | -11,505 |
Stock-based compensation expense | 5,700 | 4,826 |
Other | -605 | -701 |
Changes in assets and liabilities, net of effect from purchases and sales of businesses: | ' | ' |
(Increase) in receivables | -72,292 | -76,455 |
(Increase) in inventory | -17,338 | -23,439 |
(Increase) in prepaid expenses and other current and long-term assets | -2,307 | -7,201 |
(Decrease) in accounts payable | -115,686 | -83,264 |
(Decrease) in accrued compensation and benefits | -70,880 | -46,001 |
(Decrease) in accrued loss reserves | -8,311 | -499 |
Increase in other accrued liabilities | 29,911 | 47,701 |
(Decrease) in contingent payment | ' | -61,894 |
Other | -3,542 | -232 |
Cash (Used For) Operating Activities | -125,233 | -129,462 |
Cash Flows From Investing Activities: | ' | ' |
Capital expenditures | -12,050 | -10,696 |
Acquisition of businesses, net of cash acquired | -33,472 | -12,328 |
Purchase of marketable securities | -5,034 | -20,152 |
Proceeds from sales of marketable securities | 7,512 | 17,786 |
Other | -319 | 3,092 |
Cash (Used For) Investing Activities | -43,363 | -22,298 |
Cash Flows From Financing Activities: | ' | ' |
Additions to long-term and short-term debt | 131,907 | 53,218 |
Reductions of long-term and short-term debt | -5,468 | -1,936 |
Cash dividends | -31,987 | -29,836 |
Repurchase of stock | -4,695 | -4,004 |
Payments of acquisition-related contingent consideration | -24,750 | ' |
Other | 244 | -2,388 |
Cash Provided By Financing Activities | 65,251 | 15,054 |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | -4,498 | -1,945 |
Net Change in Cash and Cash Equivalents | -107,843 | -138,651 |
Cash and Cash Equivalents at Beginning of Period | 332,868 | 343,554 |
Cash and Cash Equivalents at End of Period | $225,025 | $204,903 |
Consolidation_Noncontrolling_I
Consolidation, Noncontrolling Interests and Basis of Presentation | 3 Months Ended |
Aug. 31, 2014 | |
Consolidation, Noncontrolling Interests and Basis of Presentation | ' |
NOTE 1 — CONSOLIDATION, NONCONTROLLING INTERESTS AND BASIS OF PRESENTATION | |
Our financial statements include all of our majority-owned subsidiaries, except for certain subsidiaries that were deconsolidated on May 31, 2010 (please refer to Note 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. | |
Noncontrolling interests are presented in our Consolidated Financial Statements as if parent company investors (controlling interests) and other minority investors (noncontrolling interests) in partially-owned subsidiaries have similar economic interests in a single entity. As a result, investments in noncontrolling interests are reported as equity in our consolidated financial statements. Additionally, our Consolidated Financial Statements include 100% of a controlled subsidiary’s earnings, rather than only our share. Transactions between the parent company and noncontrolling interests are reported in equity as transactions between stockholders provided that these transactions do not create a change in control. | |
The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and notes required by Generally Accepted Accounting Principles in the U.S. (“GAAP”) for complete financial statements. In our opinion, all adjustments (consisting of normal, recurring accruals) considered necessary for a fair presentation have been included for the three month periods ended August 31, 2014 and 2013. For further information, refer to the Consolidated Financial Statements and Notes included in our Annual Report on Form 10-K for the year ended May 31, 2014. | |
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). |
Deconsolidation_of_Specialty_P
Deconsolidation of Specialty Products Holding Corp. ("SPHC") | 3 Months Ended | ||
Aug. 31, 2014 | |||
Deconsolidation of Specialty Products Holding Corp. ("SPHC") | ' | ||
NOTE 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. 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. 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. See Note 13 for a description of an agreement in principle that we have entered into that would resolve all present and future asbestos personal injury claims related to Bondex and other related entities. | |||
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 August 31, 2014. |
New_Accounting_Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Aug. 31, 2014 | |
New Accounting Pronouncements | ' |
NOTE 3 — NEW ACCOUNTING PRONOUNCEMENTS | |
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 pronouncement may have on our consolidated financial statements. |
Investment_Income_Net
Investment (Income), Net | 3 Months Ended | ||||||||
Aug. 31, 2014 | |||||||||
Investment (Income), Net | ' | ||||||||
NOTE 4 — INVESTMENT (INCOME), NET | |||||||||
Investment (income), net, consists of the following components: | |||||||||
Three Months Ended | |||||||||
August 31, | |||||||||
(In thousands) | 2014 | 2013 | |||||||
Interest (income) | $ | (1,404 | ) | $ | (1,503 | ) | |||
(Gain) on sale of marketable securities | (2,116 | ) | (2,197 | ) | |||||
Other-than-temporary impairment on securities | — | 51 | |||||||
Dividend (income) | (283 | ) | (245 | ) | |||||
Investment (income), net | $ | (3,803 | ) | $ | (3,894 | ) | |||
Other_Income_Net
Other (Income), Net | 3 Months Ended | ||||||||
Aug. 31, 2014 | |||||||||
Other (Income), Net | ' | ||||||||
NOTE 5 — OTHER (INCOME), NET | |||||||||
Other (income), net, consists of the following components: | |||||||||
Three Months Ended | |||||||||
August 31, | |||||||||
(In thousands) | 2014 | 2013 | |||||||
Royalty (income) expense, net | $ | (1,217 | ) | $ | 318 | ||||
(Income) related to unconsolidated equity affiliates | (605 | ) | (752 | ) | |||||
Other (income), net | $ | (1,822 | ) | $ | (434 | ) | |||
Pension_Plans
Pension Plans | 3 Months Ended | ||||||||||||||||
Aug. 31, 2014 | |||||||||||||||||
Pension Plans | ' | ||||||||||||||||
NOTE 6 — PENSION PLANS | |||||||||||||||||
We offer defined benefit pension plans, defined contribution pension plans, as well as several unfunded health care benefit plans primarily for certain of our retired employees. The following tables provide the retirement-related benefit plans’ impact on income before income taxes for the three month periods ended August 31, 2014 and 2013: | |||||||||||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||
August 31, | August 31, | ||||||||||||||||
Pension Benefits | 2014 | 2013 | 2014 | 2013 | |||||||||||||
(In thousands) | |||||||||||||||||
Service cost | $ | 7,564 | $ | 6,764 | $ | 1,231 | $ | 1,109 | |||||||||
Interest cost | 5,002 | 4,510 | 1,891 | 1,800 | |||||||||||||
Expected return on plan assets | (6,034 | ) | (5,190 | ) | (2,296 | ) | (2,095 | ) | |||||||||
Amortization of: | |||||||||||||||||
Prior service cost | 74 | 83 | 10 | 1 | |||||||||||||
Net actuarial losses recognized | 3,472 | 3,306 | 487 | 623 | |||||||||||||
Net Periodic Benefit Cost | $ | 10,078 | $ | 9,473 | $ | 1,323 | $ | 1,438 | |||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||
August 31, | August 31, | ||||||||||||||||
Postretirement Benefits | 2014 | 2013 | 2014 | 2013 | |||||||||||||
(In thousands) | |||||||||||||||||
Service cost | $ | — | $ | — | $ | 313 | $ | 327 | |||||||||
Interest cost | 66 | 81 | 308 | 317 | |||||||||||||
Amortization of: | |||||||||||||||||
Prior service (credit) | (62 | ) | (22 | ) | |||||||||||||
Net actuarial (gains) losses recognized | (34 | ) | (29 | ) | 104 | 133 | |||||||||||
Net Periodic Benefit Cost | $ | (30 | ) | $ | 30 | $ | 725 | $ | 777 | ||||||||
We previously disclosed in our financial statements for the fiscal year ended May 31, 2014 that we expected to contribute approximately $53.1 million to our retirement plans in the U.S. and approximately $6.3 million to plans outside the U.S. during the current fiscal year. As of August 31, 2014, this has not changed. | |||||||||||||||||
We have determined that our postretirement medical plan provides prescription drug benefits that will qualify for the federal subsidy provided by the Medicare Prescription Drug, Improvement and Modernization Act of 2003. For all groups of retirees, we have assumed that the subsidy will continue indefinitely. 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. |
Income_Taxes
Income Taxes | 3 Months Ended |
Aug. 31, 2014 | |
Income Taxes | ' |
NOTE 7 — INCOME TAXES | |
The effective income tax rate was 29.2% for the three month period ended August 31, 2014 compared to an effective income tax rate of 27.4% for the three month period ended August 31, 2013. | |
The effective tax rate for the three month period ended August 31, 2014 reflects variances from the 35% federal statutory rate primarily due to the lower effective tax rate of certain of our foreign subsidiaries and the benefit of the domestic manufacturing deduction. These favorable variances from the statutory rate were partially offset by the impact of state and local income taxes. | |
The effective tax rate for three month period ended August 31, 2013 reflects variances from the 35% federal statutory rate primarily due to the lower effective tax rate of certain of our foreign subsidiaries and the benefit of the domestic manufacturing deduction. These favorable variances were partially offset by the impact of state and local income taxes and the net impact of valuation allowances associated with certain foreign net operating losses. Additionally, the effective tax rate for this period includes a discrete benefit related to the recognition of a foreign deferred income tax asset resulting from the merger of certain foreign subsidiaries. This one-time benefit was partially offset by the discrete impact of the enactment of a Canadian tax law change, Canada Bill C-48, Technical Tax Amendments Act, 2012, which was enacted on June 26, 2013. | |
As of August 31, 2014 we had unrecognized tax benefits of approximately $15.7, of which approximately $15.0 would impact the effective tax rate, if recognized. We recognize interest and penalties related to unrecognized benefits in income tax expense. As of August 31, 2014 the accrual for interest and penalties was approximately $5.2 million. Unrecognized tax benefits, including interest and penalties, have been classified as other long-term liabilities unless expected to be paid in one year. We do not anticipate changes to the total unrecognized tax benefits within the next 12 months. | |
We, or our subsidiaries, file income tax returns in the U.S. and in various states, local and foreign jurisdictions. The Internal Revenue Service is performing a limited scope examination of fiscal year 2012 and has informed us that they may perform a limited scope examination of fiscal year 2013. In addition, with limited exceptions, we, or our subsidiaries, are generally subject to state, local and non-US income tax examinations by tax authorities for the fiscal years 2008 through 2014. | |
We are currently under examination, or have been notified of a planned income tax examination for various non-US, state and local jurisdictions. Although it is possible that certain income tax examinations could be resolved during the next twelve months, the timing and outcomes are uncertain. | |
As of August 31, 2014, we have determined, based on the available evidence, that it is uncertain whether we will be able to recognize certain deferred tax assets. Therefore, we intend to maintain the valuation allowances recorded at August 31, 2014 for those deferred tax assets until sufficient positive evidence (for example, cumulative positive foreign earnings or additional foreign source income) exists to support their reversal. These valuation allowances relate to U.S. foreign tax credit carryforwards, capital loss carryforwards, unrealized losses on securities, certain foreign net operating losses and net foreign deferred tax assets. | |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | ||||||||
Aug. 31, 2014 | |||||||||
Earnings Per Share | ' | ||||||||
NOTE 8 — EARNINGS PER SHARE | |||||||||
The following table sets forth the reconciliation of the numerator and denominator of basic and diluted earnings per share, as calculated using the two-class method, for the three month periods ended August 31, 2014 and 2013: | |||||||||
Three Months Ended | |||||||||
August 31, | |||||||||
(In thousands, except per share amounts) | 2014 | 2013 | |||||||
Numerator for earnings per share: | |||||||||
Net income attributable to RPM International Inc. stockholders | $ | 99,079 | $ | 103,098 | |||||
Less: Allocation of earnings and dividends to participating securities | (2,179 | ) | (2,285 | ) | |||||
Net income available to common shareholders — basic | 96,900 | 100,813 | |||||||
Add: Undistributed earnings reallocated to unvested shareholders | 12 | 12 | |||||||
Add: Income effect of contingently issuable shares | 1,339 | ||||||||
Net income available to common shareholders — diluted | $ | 98,251 | $ | 100,825 | |||||
Denominator for basic and diluted earnings per share: | |||||||||
Basic weighted average common shares | 130,094 | 129,344 | |||||||
Average diluted options | 1,065 | 950 | |||||||
Net issuable common share equivalents (2) | 3,873 | ||||||||
Total shares for diluted earnings per share | 135,032 | 130,294 | |||||||
Earnings Per Share of Common Stock Attributable to RPM International Inc. Stockholders: | |||||||||
Basic | $ | 0.74 | $ | 0.78 | |||||
Diluted (1) | $ | 0.73 | $ | 0.77 | |||||
-1 | For the quarters ended August 31, 2014 and 2013, approximately 3,034,000 and 3,097,000 shares of stock, respectively, granted under stock-based compensation plans were excluded from the calculation of diluted earnings per share, as the effect would have been anti-dilutive. | ||||||||
-2 | For the quarter ended August 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. |
Inventories
Inventories | 3 Months Ended | ||||||||
Aug. 31, 2014 | |||||||||
Inventories | ' | ||||||||
NOTE 9 — INVENTORIES | |||||||||
Inventories were composed of the following major classes: | |||||||||
August 31, | May 31, | ||||||||
2014 | 2014 | ||||||||
(In thousands) | |||||||||
Raw material and supplies | $ | 211,650 | $ | 213,981 | |||||
Finished goods | 416,813 | 399,663 | |||||||
Total Inventory | $ | 628,463 | $ | 613,644 | |||||
Restructuring
Restructuring | 3 Months Ended | ||||||||||||
Aug. 31, 2014 | |||||||||||||
Restructuring | ' | ||||||||||||
NOTE 10 — 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, 2014 | $ | 2,082 | $ | 381 | $ | 2,463 | |||||||
Cash payments | (492 | ) | (126 | ) | (618 | ) | |||||||
Noncash and foreign exchange impacts | (35 | ) | (14 | ) | (49 | ) | |||||||
Balance at August 31, 2014 | $ | 1,555 | $ | 241 | $ | 1,796 | |||||||
Marketable_Securities
Marketable Securities | 3 Months Ended | ||||||||||||||||
Aug. 31, 2014 | |||||||||||||||||
Marketable Securities | ' | ||||||||||||||||
NOTE 11 — MARKETABLE SECURITIES | |||||||||||||||||
The following tables summarize marketable securities held at August 31, 2014 and May 31, 2014 by asset type: | |||||||||||||||||
Available-For-Sale Securities | |||||||||||||||||
(In thousands) | Amortized | Gross | Gross | Fair Value | |||||||||||||
Cost | Unrealized | Unrealized | (Net | ||||||||||||||
Gains | Losses | Carrying | |||||||||||||||
Amount) | |||||||||||||||||
August 31, 2014 | |||||||||||||||||
Equity securities: | |||||||||||||||||
Stocks — foreign | $ | 2,315 | $ | 887 | $ | (25 | ) | $ | 3,177 | ||||||||
Stocks — domestic | 30,867 | 7,704 | (153 | ) | 38,418 | ||||||||||||
Mutual funds — foreign | 30,443 | 2,285 | — | 32,728 | |||||||||||||
Mutual funds — domestic | 43,701 | 1,783 | (1,001 | ) | 44,483 | ||||||||||||
Total equity securities | 107,326 | 12,659 | (1,179 | ) | 118,806 | ||||||||||||
Fixed maturity: | |||||||||||||||||
U.S. treasury and other government | 20,494 | 127 | (228 | ) | 20,393 | ||||||||||||
Corporate bonds | 1,474 | 219 | (4 | ) | 1,689 | ||||||||||||
Foreign bonds | 38 | 1 | — | 39 | |||||||||||||
Mortgage-backed securities | 84 | 53 | — | 137 | |||||||||||||
Total fixed maturity securities | 22,090 | 400 | (232 | ) | 22,258 | ||||||||||||
Total | $ | 129,416 | $ | 13,059 | $ | (1,411 | ) | $ | 141,064 | ||||||||
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 | ||||||||
Marketable securities, included in other current and long-term assets totaling $76.9 million and $64.2 million at August 31, 2014, respectively, and included in other current and long-term assets totaling $71.9 million and $71.0 million at May 31, 2014, respectively, are composed of available-for-sale securities and are reported at fair value. We carry a portion of our marketable securities portfolio in long-term assets since they are generally held for the settlement of our general and product liability insurance claims processed through our wholly owned captive insurance subsidiaries. | |||||||||||||||||
Marketable securities are composed of available-for-sale securities and are reported at fair value. Realized gains and losses on sales of investments are recognized in net income on the specific identification basis. Changes in the fair values of securities that are considered temporary are recorded as unrealized gains and losses, net of applicable taxes, in accumulated other comprehensive income (loss) within stockholders’ equity. Other-than-temporary declines in market value from original cost are reflected in operating income in the period in which the unrealized losses are deemed other than temporary. In order to determine whether other-than-temporary declines in market value have occurred, the duration of the decline in value and our ability to hold the investment are considered in conjunction with an evaluation of the strength of the underlying collateral and the extent to which the investment’s amortized cost or cost, as appropriate, exceeds its related market value. | |||||||||||||||||
Gross gains realized on sales of investments were $2.1 million and $2.2 million, respectively, for the quarters ended August 31, 2014 and 2013, respectively. During the first quarter of fiscal 2014, we recognized losses of approximately $0.1 million for securities deemed to have other-than-temporary impairments, while we recognized no such losses during the first quarter of fiscal 2015. These amounts are included in investment (income), net in the Consolidated Statements of Income. | |||||||||||||||||
Summarized below are the securities we held at August 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: | |||||||||||||||||
August 31, 2014 | May 31, 2014 | ||||||||||||||||
(In thousands) | Fair | Gross | Fair | Gross | |||||||||||||
Value | Unrealized | Value | Unrealized | ||||||||||||||
Losses | Losses | ||||||||||||||||
Total investments with unrealized losses | $ | 41,958 | $ | (1,411 | ) | $ | 35,465 | $ | (1,425 | ) | |||||||
Unrealized losses with a loss position for less than 12 months | 26,504 | (952 | ) | 16,611 | (845 | ) | |||||||||||
Unrealized losses with a loss position for more than 12 months | 15,454 | (459 | ) | 18,854 | (580 | ) | |||||||||||
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 August 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 August 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 | $ | 2,995 | $ | 2,998 | |||||||||||||
One year through five years | 14,715 | 14,638 | |||||||||||||||
Six years through ten years | 3,261 | 3,292 | |||||||||||||||
After ten years | 1,119 | 1,330 | |||||||||||||||
$ | 22,090 | $ | 22,258 | ||||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||||
Aug. 31, 2014 | |||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
NOTE 12 — FAIR VALUE MEASUREMENTS | |||||||||||||||||
Financial instruments recorded on the balance sheet include cash and cash equivalents, trade accounts receivable, marketable securities, notes and accounts payable, and debt. | |||||||||||||||||
An allowance for anticipated uncollectible trade receivable amounts is established using a combination of specifically identified accounts to be reserved, and a reserve covering trends in collectibility. These estimates are based on an analysis of trends in collectability and past experience, but are primarily made up of individual account balances identified as doubtful based on specific facts and conditions. Receivable losses are charged against the allowance when we confirm uncollectibility. | |||||||||||||||||
All derivative instruments are recognized on our Consolidated Balance Sheet and measured at fair value. Changes in the fair values of derivative instruments that do not qualify as hedges and/or any ineffective portion of hedges are recognized as a gain or (loss) in our Consolidated Statement of Income in the current period. Changes in the fair value of derivative instruments used effectively as cash flow hedges are recognized in other comprehensive income (loss), along with the change in the value of the hedged item. We do not hold or issue derivative instruments for speculative purposes. | |||||||||||||||||
The valuation techniques utilized for establishing the fair values of assets and liabilities are based on observable and unobservable inputs. Observable inputs reflect readily obtainable data from independent sources, while unobservable inputs reflect management’s market assumptions. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value, as follows: | |||||||||||||||||
Level 1 Inputs — Quoted prices for identical instruments in active markets. | |||||||||||||||||
Level 2 Inputs — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. | |||||||||||||||||
Level 3 Inputs — Instruments with primarily unobservable value drivers. | |||||||||||||||||
The following tables present our assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy. | |||||||||||||||||
(In thousands) | Quoted Prices in | Significant | Significant | Fair Value at | |||||||||||||
Active Markets | Other | Unobservable | August 31, 2014 | ||||||||||||||
for Identical | Observable | Inputs (Level 3) | |||||||||||||||
Assets (Level 1) | Inputs (Level 2) | ||||||||||||||||
U.S. Treasury and other government | $ | — | $ | 20,393 | $ | — | $ | 20,393 | |||||||||
Foreign bonds | 39 | 39 | |||||||||||||||
Mortgage-backed securities | 137 | 137 | |||||||||||||||
Corporate bonds | 1,689 | 1,689 | |||||||||||||||
Stocks — foreign | 3,177 | 3,177 | |||||||||||||||
Stocks — domestic | 38,418 | 38,418 | |||||||||||||||
Mutual funds — foreign | 32,728 | 32,728 | |||||||||||||||
Mutual funds — domestic | 44,483 | 44,483 | |||||||||||||||
Foreign currency forward contract | (492 | ) | (492 | ) | |||||||||||||
Cross-currency swap | (13,415 | ) | (13,415 | ) | |||||||||||||
Contingent consideration | (55,466 | ) | (55,466 | ) | |||||||||||||
Total | $ | 41,595 | $ | 85,562 | $ | (55,466 | ) | $ | 71,691 | ||||||||
(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 | $ | — | $ | 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 | ||||||||
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 $13.4 million at August 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 August 31, 2014, we had a foreign currency forward contract with a fair value of approximately $0.5 million, which is classified in other accrued 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. 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 quarter ended August 31, 2014, we reversed approximately $1.0 million for contingent earnout targets that were not met, and we paid approximately $24.8 million for settlements of contingent consideration obligations relating to certain performance milestones that were established in prior periods and achieved during the current 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 August 31, 2014 and May 31, 2014, 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 August 31, 2014 and May 31, 2014 are as follows: | |||||||||||||||||
At August 31, 2014 | |||||||||||||||||
(In thousands) | Carrying | Fair Value | |||||||||||||||
Value | |||||||||||||||||
Cash and cash equivalents | $ | 225,025 | $ | 225,025 | |||||||||||||
Marketable equity securities | 118,806 | 118,806 | |||||||||||||||
Marketable debt securities | 22,258 | 22,258 | |||||||||||||||
Long-term debt, including current portion | 1,478,026 | 1,575,909 | |||||||||||||||
At May 31, 2014 | |||||||||||||||||
(In thousands) | Carrying | Fair Value | |||||||||||||||
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 |
Reorganization_Proceedings_of_
Reorganization Proceedings of Certain Subsidiaries | 3 Months Ended | |||
Aug. 31, 2014 | ||||
Reorganization Proceedings of Certain Subsidiaries | ' | |||
NOTE 13 — REORGANIZATION PROCEEDINGS OF CERTAIN SUBSIDIARIES | ||||
General — Prior to 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. A Plan was filed on September 26, 2014. The Plan is subject to approval of the claimants, as well as the Bankruptcy Court and U.S. District Court. | ||||
In addition to Bondex and SPHC, the settlement resolves all present and future asbestos personal injury claims related to Republic Powdered Metals, Inc. (“Republic”) and NMBFiL, Inc. (“NMBFiL”), both of which are indirect wholly-owned subsidiaries of RPM, that filed for Chapter 11 bankruptcy in August 2014. Both Republic and NMBFiL will remain consolidated subsidiaries, considering the short-term nature of the bankruptcy and as long as RPM maintains control, from a participating rights perspective, of the subsidiaries. | ||||
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. 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. | ||||
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. A confirmation hearing is scheduled for December 10, 2014. | ||||
There is no guaranty that the Plan will be confirmed. If the 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. | ||||
At August 31, 2014, no amounts have been accrued for the funding of the Trust, as the Plan is subject to the approval of the claimants, as well as the Bankruptcy Court and the U.S. District Court. Once approved, the funding of the Trust will be accounted for as a business combination and will allow us to regain control of SPHC. The portion of the funding related to NMBFiL Inc. will be recognized as a charge to the consolidated income statement at the time the Plan is approved. | ||||
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 have been 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. |
Contingencies_and_Other_Accrue
Contingencies and Other Accrued Losses | 3 Months Ended | ||||||||
Aug. 31, 2014 | |||||||||
Contingencies and Other Accrued Losses | ' | ||||||||
NOTE 14 — CONTINGENCIES AND OTHER ACCRUED LOSSES | |||||||||
We provide, through our wholly owned insurance subsidiaries, certain insurance coverage, primarily product liability coverage, to our other subsidiaries. Excess coverage is provided by third-party insurers. Our reserves provide for these potential losses as well as other uninsured claims. Product liability reserves are established based upon actuarial calculations of potential liability using industry experience, actual historical experience and actuarial assumptions developed for similar types of product liability claims, including development factors and lag times. 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 August 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. | |||||||||
Also, due to the nature of our roofing business, the amount of claims paid can fluctuate from one period to the next. While our warranty liability represents our best estimate of our expected losses at any given time, from time-to-time we may revise our estimates based on our experience relating to factors such as weather conditions, specific circumstances surrounding product installations and other factors. | |||||||||
The following table includes the changes in our accrued warranty balances: | |||||||||
Quarter Ended | |||||||||
August 31, | |||||||||
(In thousands) | 2014 | 2013 | |||||||
Beginning Balance | $ | 14,741 | $ | 9,330 | |||||
Deductions (1) | (14,675 | ) | (4,796 | ) | |||||
Provision charged to SG&A expense | 7,355 | 5,308 | |||||||
Ending Balance | $ | 7,421 | $ | 9,842 | |||||
-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. | |||||||||
During the first quarter of fiscal 2015, 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. RPM International has since been dismissed from both actions, but they remain pending against Rust-Oleum. Rust-Oleum plans 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 these matters may impact our future consolidated financial condition, results of operations or cash flows. |
Stock_Repurchase_Program
Stock Repurchase Program | 3 Months Ended |
Aug. 31, 2014 | |
Stock Repurchase Program | ' |
NOTE 15 — STOCK REPURCHASE PROGRAM | |
On January 8, 2008, we announced our authorization of a stock repurchase program under which we may repurchase shares of RPM International Inc. common stock at management’s discretion for general corporate purposes. Our current intent is to limit our repurchases only to amounts required to offset dilution created by stock issued in connection with our equity-based compensation plans, or approximately one to two million shares per year. As a result of this authorization, we may repurchase shares from time to time in the open market or in private transactions at various times and in amounts and for prices that our management deems appropriate, subject to insider trading rules and other securities law restrictions. The timing of our purchases will depend upon prevailing market conditions, alternative uses of capital and other factors. We may limit or terminate the repurchase program at any time. During the three months ended August 31, 2014, we did not repurchase any shares of our common stock under this program. |
Equity
Equity | 3 Months Ended | ||||||||||||
Aug. 31, 2014 | |||||||||||||
Equity | ' | ||||||||||||
NOTE 16 — EQUITY | |||||||||||||
The following tables illustrate the components of total equity and comprehensive income for the three months ended August 31, 2014 and 2013: | |||||||||||||
(In thousands) | Total RPM | Noncontrolling | Total Equity | ||||||||||
International | Interest | ||||||||||||
Inc. Equity | |||||||||||||
Total equity at May 31, 2014 | $ | 1,382,844 | $ | 195,750 | $ | 1,578,594 | |||||||
Net income | 99,079 | 5,760 | 104,839 | ||||||||||
Other Comprehensive Income: | |||||||||||||
Foreign currency translation adjustments | (17,738 | ) | (3,528 | ) | (21,266 | ) | |||||||
Pension and other postretirement benefit liability adjustments, net of tax | 2,760 | 169 | 2,929 | ||||||||||
Unrealized (loss) on securities, net of tax | 83 | (7 | ) | 76 | |||||||||
Unrealized gain on derivatives, net of tax | (52 | ) | (14 | ) | (66 | ) | |||||||
Total Other Comprehensive Income, net of tax | (14,947 | ) | (3,380 | ) | (18,327 | ) | |||||||
Comprehensive Income | 84,132 | 2,380 | 86,512 | ||||||||||
Dividends paid | (31,987 | ) | (31,987 | ) | |||||||||
Other noncontrolling interest activity | (4 | ) | 4 | — | |||||||||
Stock option exercises, net | (4,451 | ) | (4,451 | ) | |||||||||
Stock based compensation expense | 5,700 | 5,700 | |||||||||||
Total Equity at August 31, 2014 | $ | 1,436,234 | $ | 198,134 | $ | 1,634,368 | |||||||
(In thousands) | Total RPM | Noncontrolling | Total Equity | ||||||||||
International | Interest | ||||||||||||
Inc. Equity | |||||||||||||
Total equity at May 31, 2013 | $ | 1,200,858 | $ | 154,075 | $ | 1,354,933 | |||||||
Net income | 103,098 | 3,791 | 106,889 | ||||||||||
Other Comprehensive Income: | |||||||||||||
Foreign currency translation adjustments | (17,071 | ) | 3,657 | (13,414 | ) | ||||||||
Pension and other postretirement benefit liability adjustments, net of tax | 2,761 | 163 | 2,924 | ||||||||||
Unrealized (loss) gain on securities, net of tax | (1,432 | ) | (7 | ) | (1,439 | ) | |||||||
Unrealized gain on derivatives, net of tax | 86 | 23 | 109 | ||||||||||
Total Other Comprehensive Income, net of tax | (15,656 | ) | 3,836 | (11,820 | ) | ||||||||
Comprehensive Income | 87,442 | 7,627 | 95,069 | ||||||||||
Dividends paid | (29,836 | ) | (29,836 | ) | |||||||||
Other noncontrolling interest activity | (341 | ) | 341 | — | |||||||||
Stock option exercises, net | 2,401 | 2,401 | |||||||||||
Stock based compensation expense | 709 | 709 | |||||||||||
Restricted awards, net | 451 | 451 | |||||||||||
Total Equity at August 31, 2013 | $ | 1,261,684 | $ | 162,043 | $ | 1,423,727 | |||||||
Segment_Information
Segment Information | 3 Months Ended | ||||||||
Aug. 31, 2014 | |||||||||
Segment Information | ' | ||||||||
NOTE 17 — SEGMENT INFORMATION | |||||||||
We operate a portfolio of businesses and product lines that manufacture and sell a variety of specialty paints, protective coatings and roofing systems, sealants and adhesives. We manage our portfolio by organizing our businesses and product lines into two reportable segments: the industrial reportable segment and the consumer reportable segment. Within each reportable segment, we aggregate several operating segments that consist of individual groups of companies and product lines, which generally address common markets, share similar economic characteristics, utilize similar technologies and can share manufacturing or distribution capabilities. Our seven operating segments represent components of our business for which separate financial information is available that is utilized on a regular basis by our chief executive officer in determining how to allocate the assets of the company and evaluate performance. These seven operating segments are each managed by an operating segment manager, who is responsible for the day-to-day operating decisions and performance evaluation of the operating segment’s underlying businesses. | |||||||||
Our industrial reportable segment products are sold throughout North America and also account for the majority of our international sales. Our industrial product lines are sold directly to contractors, distributors and end-users, such as industrial manufacturing facilities, public institutions and other commercial customers. This reportable segment comprises four separate operating segments — Tremco Group, Tremco illbruck Group, Performance Coatings Group and RPM2-Industrial Group. Products and services within this reportable segment include construction chemicals; roofing systems; weatherproofing and other sealants; polymer flooring; edible coatings and specialty glazes for pharmaceutical, cosmetic and food industries; and other specialty chemicals. | |||||||||
Our consumer reportable segment manufactures and markets professional use and do-it-yourself (“DIY”) products for a variety of mainly consumer applications, including home improvement and personal leisure activities. Our consumer segment’s major manufacturing and distribution operations are located primarily in North America, along with a few locations in Europe. Consumer segment products are primarily sold directly to mass merchandisers, home improvement centers, hardware stores, paint stores, craft shops, cosmetic companies and to other smaller customers through distributors. This reportable segment comprises three operating segments — DAP Group, RPM2-Consumer Group and Rust-Oleum Group. Products within this reportable segment include specialty, hobby and professional paints; nail care enamels; caulks; adhesives; silicone sealants and wood stains. | |||||||||
In addition to our two reportable segments, there is a category of certain business activities and expenses, referred to as corporate/other, that does not constitute an operating segment. This category includes our corporate headquarters and related administrative expenses, results of our captive insurance companies, gains or losses on the sales of certain assets and other expenses not directly associated with either reportable segment. Assets related to the corporate/other category consist primarily of investments, prepaid expenses and headquarters’ property and equipment. These corporate and other assets and expenses reconcile reportable segment data to total consolidated income before income taxes, 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. | |||||||||
Three Months Ended | |||||||||
August 31, | August 31, | ||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Net Sales | |||||||||
Industrial Segment | $ | 773,886 | $ | 731,226 | |||||
Consumer Segment | 430,010 | 433,448 | |||||||
Consolidated | $ | 1,203,896 | $ | 1,164,674 | |||||
Income (Loss) Before Income Taxes | |||||||||
Industrial Segment | $ | 102,464 | $ | 97,581 | |||||
Consumer Segment | 76,669 | 82,717 | |||||||
Corporate/Other | (31,055 | ) | (33,082 | ) | |||||
Consolidated | $ | 148,078 | $ | 147,216 | |||||
August 31, | May 31, | ||||||||
2014 | 2014 | ||||||||
Identifiable Assets | |||||||||
Industrial Segment | $ | 2,418,189 | $ | 2,507,257 | |||||
Consumer Segment | 1,734,551 | 1,648,272 | |||||||
Corporate/Other | 193,982 | 222,836 | |||||||
Consolidated | $ | 4,346,722 | $ | 4,378,365 | |||||
Investment_Income_Net_Tables
Investment (Income), Net (Tables) | 3 Months Ended | ||||||||
Aug. 31, 2014 | |||||||||
Investment (Income), Net | ' | ||||||||
Investment (income), net, consists of the following components: | |||||||||
Three Months Ended | |||||||||
August 31, | |||||||||
(In thousands) | 2014 | 2013 | |||||||
Interest (income) | $ | (1,404 | ) | $ | (1,503 | ) | |||
(Gain) on sale of marketable securities | (2,116 | ) | (2,197 | ) | |||||
Other-than-temporary impairment on securities | — | 51 | |||||||
Dividend (income) | (283 | ) | (245 | ) | |||||
Investment (income), net | $ | (3,803 | ) | $ | (3,894 | ) | |||
Other_Income_Net_Tables
Other (Income), Net (Tables) | 3 Months Ended | ||||||||
Aug. 31, 2014 | |||||||||
Other (Income), Net | ' | ||||||||
Other (income), net, consists of the following components: | |||||||||
Three Months Ended | |||||||||
August 31, | |||||||||
(In thousands) | 2014 | 2013 | |||||||
Royalty (income) expense, net | $ | (1,217 | ) | $ | 318 | ||||
(Income) related to unconsolidated equity affiliates | (605 | ) | (752 | ) | |||||
Other (income), net | $ | (1,822 | ) | $ | (434 | ) | |||
Pension_Plans_Tables
Pension Plans (Tables) | 3 Months Ended | ||||||||||||||||
Aug. 31, 2014 | |||||||||||||||||
Retirement-Related Benefit Plans' Impact on Income Before Income Taxes | ' | ||||||||||||||||
The following tables provide the retirement-related benefit plans’ impact on income before income taxes for the three month periods ended August 31, 2014 and 2013: | |||||||||||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||
August 31, | August 31, | ||||||||||||||||
Pension Benefits | 2014 | 2013 | 2014 | 2013 | |||||||||||||
(In thousands) | |||||||||||||||||
Service cost | $ | 7,564 | $ | 6,764 | $ | 1,231 | $ | 1,109 | |||||||||
Interest cost | 5,002 | 4,510 | 1,891 | 1,800 | |||||||||||||
Expected return on plan assets | (6,034 | ) | (5,190 | ) | (2,296 | ) | (2,095 | ) | |||||||||
Amortization of: | |||||||||||||||||
Prior service cost | 74 | 83 | 10 | 1 | |||||||||||||
Net actuarial losses recognized | 3,472 | 3,306 | 487 | 623 | |||||||||||||
Net Periodic Benefit Cost | $ | 10,078 | $ | 9,473 | $ | 1,323 | $ | 1,438 | |||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||
August 31, | August 31, | ||||||||||||||||
Postretirement Benefits | 2014 | 2013 | 2014 | 2013 | |||||||||||||
(In thousands) | |||||||||||||||||
Service cost | $ | — | $ | — | $ | 313 | $ | 327 | |||||||||
Interest cost | 66 | 81 | 308 | 317 | |||||||||||||
Amortization of: | |||||||||||||||||
Prior service (credit) | (62 | ) | (22 | ) | |||||||||||||
Net actuarial (gains) losses recognized | (34 | ) | (29 | ) | 104 | 133 | |||||||||||
Net Periodic Benefit Cost | $ | (30 | ) | $ | 30 | $ | 725 | $ | 777 | ||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | ||||||||
Aug. 31, 2014 | |||||||||
Reconciliation of Numerator and Denominator of Basic and Diluted Earnings Per Share Calculated using Two-Class Method | ' | ||||||||
The following table sets forth the reconciliation of the numerator and denominator of basic and diluted earnings per share, as calculated using the two-class method, for the three month periods ended August 31, 2014 and 2013: | |||||||||
Three Months Ended | |||||||||
August 31, | |||||||||
(In thousands, except per share amounts) | 2014 | 2013 | |||||||
Numerator for earnings per share: | |||||||||
Net income attributable to RPM International Inc. stockholders | $ | 99,079 | $ | 103,098 | |||||
Less: Allocation of earnings and dividends to participating securities | (2,179 | ) | (2,285 | ) | |||||
Net income available to common shareholders — basic | 96,900 | 100,813 | |||||||
Add: Undistributed earnings reallocated to unvested shareholders | 12 | 12 | |||||||
Add: Income effect of contingently issuable shares | 1,339 | ||||||||
Net income available to common shareholders — diluted | $ | 98,251 | $ | 100,825 | |||||
Denominator for basic and diluted earnings per share: | |||||||||
Basic weighted average common shares | 130,094 | 129,344 | |||||||
Average diluted options | 1,065 | 950 | |||||||
Net issuable common share equivalents (2) | 3,873 | ||||||||
Total shares for diluted earnings per share | 135,032 | 130,294 | |||||||
Earnings Per Share of Common Stock Attributable to RPM International Inc. Stockholders: | |||||||||
Basic | $ | 0.74 | $ | 0.78 | |||||
Diluted (1) | $ | 0.73 | $ | 0.77 | |||||
-1 | For the quarters ended August 31, 2014 and 2013, approximately 3,034,000 and 3,097,000 shares of stock, respectively, granted under stock-based compensation plans were excluded from the calculation of diluted earnings per share, as the effect would have been anti-dilutive. | ||||||||
-2 | For the quarter ended August 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. |
Inventories_Tables
Inventories (Tables) | 3 Months Ended | ||||||||
Aug. 31, 2014 | |||||||||
Major Classes of Inventories | ' | ||||||||
Inventories were composed of the following major classes: | |||||||||
August 31, | May 31, | ||||||||
2014 | 2014 | ||||||||
(In thousands) | |||||||||
Raw material and supplies | $ | 211,650 | $ | 213,981 | |||||
Finished goods | 416,813 | 399,663 | |||||||
Total Inventory | $ | 628,463 | $ | 613,644 | |||||
Restructuring_Tables
Restructuring (Tables) | 3 Months Ended | ||||||||||||
Aug. 31, 2014 | |||||||||||||
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, 2014 | $ | 2,082 | $ | 381 | $ | 2,463 | |||||||
Cash payments | (492 | ) | (126 | ) | (618 | ) | |||||||
Noncash and foreign exchange impacts | (35 | ) | (14 | ) | (49 | ) | |||||||
Balance at August 31, 2014 | $ | 1,555 | $ | 241 | $ | 1,796 | |||||||
Marketable_Securities_Tables
Marketable Securities (Tables) | 3 Months Ended | ||||||||||||||||
Aug. 31, 2014 | |||||||||||||||||
Summary of Marketable Securities by Asset Type | ' | ||||||||||||||||
The following tables summarize marketable securities held at August 31, 2014 and May 31, 2014 by asset type: | |||||||||||||||||
Available-For-Sale Securities | |||||||||||||||||
(In thousands) | Amortized | Gross | Gross | Fair Value | |||||||||||||
Cost | Unrealized | Unrealized | (Net | ||||||||||||||
Gains | Losses | Carrying | |||||||||||||||
Amount) | |||||||||||||||||
August 31, 2014 | |||||||||||||||||
Equity securities: | |||||||||||||||||
Stocks — foreign | $ | 2,315 | $ | 887 | $ | (25 | ) | $ | 3,177 | ||||||||
Stocks — domestic | 30,867 | 7,704 | (153 | ) | 38,418 | ||||||||||||
Mutual funds — foreign | 30,443 | 2,285 | — | 32,728 | |||||||||||||
Mutual funds — domestic | 43,701 | 1,783 | (1,001 | ) | 44,483 | ||||||||||||
Total equity securities | 107,326 | 12,659 | (1,179 | ) | 118,806 | ||||||||||||
Fixed maturity: | |||||||||||||||||
U.S. treasury and other government | 20,494 | 127 | (228 | ) | 20,393 | ||||||||||||
Corporate bonds | 1,474 | 219 | (4 | ) | 1,689 | ||||||||||||
Foreign bonds | 38 | 1 | — | 39 | |||||||||||||
Mortgage-backed securities | 84 | 53 | — | 137 | |||||||||||||
Total fixed maturity securities | 22,090 | 400 | (232 | ) | 22,258 | ||||||||||||
Total | $ | 129,416 | $ | 13,059 | $ | (1,411 | ) | $ | 141,064 | ||||||||
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 | ||||||||
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 August 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: | |||||||||||||||||
August 31, 2014 | May 31, 2014 | ||||||||||||||||
(In thousands) | Fair | Gross | Fair | Gross | |||||||||||||
Value | Unrealized | Value | Unrealized | ||||||||||||||
Losses | Losses | ||||||||||||||||
Total investments with unrealized losses | $ | 41,958 | $ | (1,411 | ) | $ | 35,465 | $ | (1,425 | ) | |||||||
Unrealized losses with a loss position for less than 12 months | 26,504 | (952 | ) | 16,611 | (845 | ) | |||||||||||
Unrealized losses with a loss position for more than 12 months | 15,454 | (459 | ) | 18,854 | (580 | ) | |||||||||||
Net Carrying Values of Debt Securities by Contractual Maturity | ' | ||||||||||||||||
The net carrying values of debt securities at August 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 | $ | 2,995 | $ | 2,998 | |||||||||||||
One year through five years | 14,715 | 14,638 | |||||||||||||||
Six years through ten years | 3,261 | 3,292 | |||||||||||||||
After ten years | 1,119 | 1,330 | |||||||||||||||
$ | 22,090 | $ | 22,258 | ||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||
Aug. 31, 2014 | |||||||||||||||||
Assets and Liabilities Measured at Fair Value on Recurring Basis and Categorized using Fair Value Hierarchy | ' | ||||||||||||||||
The following tables present our assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy. | |||||||||||||||||
(In thousands) | Quoted Prices in | Significant | Significant | Fair Value at | |||||||||||||
Active Markets | Other | Unobservable | August 31, 2014 | ||||||||||||||
for Identical | Observable | Inputs (Level 3) | |||||||||||||||
Assets (Level 1) | Inputs (Level 2) | ||||||||||||||||
U.S. Treasury and other government | $ | — | $ | 20,393 | $ | — | $ | 20,393 | |||||||||
Foreign bonds | 39 | 39 | |||||||||||||||
Mortgage-backed securities | 137 | 137 | |||||||||||||||
Corporate bonds | 1,689 | 1,689 | |||||||||||||||
Stocks — foreign | 3,177 | 3,177 | |||||||||||||||
Stocks — domestic | 38,418 | 38,418 | |||||||||||||||
Mutual funds — foreign | 32,728 | 32,728 | |||||||||||||||
Mutual funds — domestic | 44,483 | 44,483 | |||||||||||||||
Foreign currency forward contract | (492 | ) | (492 | ) | |||||||||||||
Cross-currency swap | (13,415 | ) | (13,415 | ) | |||||||||||||
Contingent consideration | (55,466 | ) | (55,466 | ) | |||||||||||||
Total | $ | 41,595 | $ | 85,562 | $ | (55,466 | ) | $ | 71,691 | ||||||||
(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 | $ | — | $ | 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 | ||||||||
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 August 31, 2014 and May 31, 2014 are as follows: | |||||||||||||||||
At August 31, 2014 | |||||||||||||||||
(In thousands) | Carrying | Fair Value | |||||||||||||||
Value | |||||||||||||||||
Cash and cash equivalents | $ | 225,025 | $ | 225,025 | |||||||||||||
Marketable equity securities | 118,806 | 118,806 | |||||||||||||||
Marketable debt securities | 22,258 | 22,258 | |||||||||||||||
Long-term debt, including current portion | 1,478,026 | 1,575,909 | |||||||||||||||
At May 31, 2014 | |||||||||||||||||
(In thousands) | Carrying | Fair Value | |||||||||||||||
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 |
Contingencies_and_Other_Accrue1
Contingencies and Other Accrued Losses (Tables) | 3 Months Ended | ||||||||
Aug. 31, 2014 | |||||||||
Changes in Accrued Warranty Balances | ' | ||||||||
The following table includes the changes in our accrued warranty balances: | |||||||||
Quarter Ended | |||||||||
August 31, | |||||||||
(In thousands) | 2014 | 2013 | |||||||
Beginning Balance | $ | 14,741 | $ | 9,330 | |||||
Deductions (1) | (14,675 | ) | (4,796 | ) | |||||
Provision charged to SG&A expense | 7,355 | 5,308 | |||||||
Ending Balance | $ | 7,421 | $ | 9,842 | |||||
-1 | Primarily claims paid during the year. |
Equity_Tables
Equity (Tables) | 3 Months Ended | ||||||||||||
Aug. 31, 2014 | |||||||||||||
Components of Total Equity and Comprehensive Income | ' | ||||||||||||
The following tables illustrate the components of total equity and comprehensive income for the three months ended August 31, 2014 and 2013: | |||||||||||||
(In thousands) | Total RPM | Noncontrolling | Total Equity | ||||||||||
International | Interest | ||||||||||||
Inc. Equity | |||||||||||||
Total equity at May 31, 2014 | $ | 1,382,844 | $ | 195,750 | $ | 1,578,594 | |||||||
Net income | 99,079 | 5,760 | 104,839 | ||||||||||
Other Comprehensive Income: | |||||||||||||
Foreign currency translation adjustments | (17,738 | ) | (3,528 | ) | (21,266 | ) | |||||||
Pension and other postretirement benefit liability adjustments, net of tax | 2,760 | 169 | 2,929 | ||||||||||
Unrealized (loss) on securities, net of tax | 83 | (7 | ) | 76 | |||||||||
Unrealized gain on derivatives, net of tax | (52 | ) | (14 | ) | (66 | ) | |||||||
Total Other Comprehensive Income, net of tax | (14,947 | ) | (3,380 | ) | (18,327 | ) | |||||||
Comprehensive Income | 84,132 | 2,380 | 86,512 | ||||||||||
Dividends paid | (31,987 | ) | (31,987 | ) | |||||||||
Other noncontrolling interest activity | (4 | ) | 4 | — | |||||||||
Stock option exercises, net | (4,451 | ) | (4,451 | ) | |||||||||
Stock based compensation expense | 5,700 | 5,700 | |||||||||||
Total Equity at August 31, 2014 | $ | 1,436,234 | $ | 198,134 | $ | 1,634,368 | |||||||
(In thousands) | Total RPM | Noncontrolling | Total Equity | ||||||||||
International | Interest | ||||||||||||
Inc. Equity | |||||||||||||
Total equity at May 31, 2013 | $ | 1,200,858 | $ | 154,075 | $ | 1,354,933 | |||||||
Net income | 103,098 | 3,791 | 106,889 | ||||||||||
Other Comprehensive Income: | |||||||||||||
Foreign currency translation adjustments | (17,071 | ) | 3,657 | (13,414 | ) | ||||||||
Pension and other postretirement benefit liability adjustments, net of tax | 2,761 | 163 | 2,924 | ||||||||||
Unrealized (loss) gain on securities, net of tax | (1,432 | ) | (7 | ) | (1,439 | ) | |||||||
Unrealized gain on derivatives, net of tax | 86 | 23 | 109 | ||||||||||
Total Other Comprehensive Income, net of tax | (15,656 | ) | 3,836 | (11,820 | ) | ||||||||
Comprehensive Income | 87,442 | 7,627 | 95,069 | ||||||||||
Dividends paid | (29,836 | ) | (29,836 | ) | |||||||||
Other noncontrolling interest activity | (341 | ) | 341 | — | |||||||||
Stock option exercises, net | 2,401 | 2,401 | |||||||||||
Stock based compensation expense | 709 | 709 | |||||||||||
Restricted awards, net | 451 | 451 | |||||||||||
Total Equity at August 31, 2013 | $ | 1,261,684 | $ | 162,043 | $ | 1,423,727 | |||||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | ||||||||
Aug. 31, 2014 | |||||||||
Results of Reportable Segments | ' | ||||||||
The following tables reflect the results of our reportable segments consistent with our management philosophy, and represent the information we utilize, in conjunction with various strategic, operational and other financial performance criteria, in evaluating the performance of our portfolio of businesses. | |||||||||
Three Months Ended | |||||||||
August 31, | August 31, | ||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Net Sales | |||||||||
Industrial Segment | $ | 773,886 | $ | 731,226 | |||||
Consumer Segment | 430,010 | 433,448 | |||||||
Consolidated | $ | 1,203,896 | $ | 1,164,674 | |||||
Income (Loss) Before Income Taxes | |||||||||
Industrial Segment | $ | 102,464 | $ | 97,581 | |||||
Consumer Segment | 76,669 | 82,717 | |||||||
Corporate/Other | (31,055 | ) | (33,082 | ) | |||||
Consolidated | $ | 148,078 | $ | 147,216 | |||||
August 31, | May 31, | ||||||||
2014 | 2014 | ||||||||
Identifiable Assets | |||||||||
Industrial Segment | $ | 2,418,189 | $ | 2,507,257 | |||||
Consumer Segment | 1,734,551 | 1,648,272 | |||||||
Corporate/Other | 193,982 | 222,836 | |||||||
Consolidated | $ | 4,346,722 | $ | 4,378,365 | |||||
Deconsolidation_of_Specialty_P1
Deconsolidation of Specialty Products Holding Corp. ("SPHC") - Additional Information (Detail) (USD $) | 3 Months Ended | |
31-May-10 | 31-May-12 | |
Bond | ||
Reorganization [Line Items] | ' | ' |
Number of appeal bonds satisfied | ' | 1 |
Carrying value of retained interest in SPHC | $0 | ' |
Net loss from deconsolidation of business | ($7,900,000) | ' |
Investment_Income_Net_Detail
Investment (Income), Net (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 |
Net Investment Income [Line Items] | ' | ' |
Interest (income) | ($1,404) | ($1,503) |
(Gain) on sale of marketable securities | -2,116 | -2,197 |
Other-than-temporary impairment on securities | ' | 51 |
Dividend (income) | -283 | -245 |
Investment (income), net | ($3,803) | ($3,894) |
Other_Income_Net_Detail
Other (Income), Net (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 |
Component Of Other Expense Income Nonoperating [Line Items] | ' | ' |
Royalty (income) expense, net | ($1,217) | $318 |
(Income) related to unconsolidated equity affiliates | -605 | -752 |
Other (income), net | ($1,822) | ($434) |
RetirementRelated_Benefit_Plan
Retirement-Related Benefit Plans' Impact on Income Before Income Taxes (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 |
Pension Benefits, U.S. Plans | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' |
Service cost | $7,564 | $6,764 |
Interest cost | 5,002 | 4,510 |
Expected return on plan assets | -6,034 | -5,190 |
Prior service (credit) | 74 | 83 |
Net actuarial (gains) losses recognized | 3,472 | 3,306 |
Net Periodic Benefit Cost | 10,078 | 9,473 |
Pension Benefits, Non-U.S. Plans | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' |
Service cost | 1,231 | 1,109 |
Interest cost | 1,891 | 1,800 |
Expected return on plan assets | -2,296 | -2,095 |
Prior service (credit) | 10 | 1 |
Net actuarial (gains) losses recognized | 487 | 623 |
Net Periodic Benefit Cost | 1,323 | 1,438 |
Postretirement Benefits, U.S. Plans | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' |
Interest cost | 66 | 81 |
Prior service (credit) | -62 | -22 |
Net actuarial (gains) losses recognized | -34 | -29 |
Net Periodic Benefit Cost | -30 | 30 |
Postretirement Benefits, Non-U.S. Plans | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' |
Service cost | 313 | 327 |
Interest cost | 308 | 317 |
Net actuarial (gains) losses recognized | 104 | 133 |
Net Periodic Benefit Cost | $725 | $777 |
Pension_Plans_Additional_Infor
Pension Plans - Additional Information (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | 31-May-14 |
Pension Benefits, U.S. Plans | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' |
Contribution to retirement plans in current fiscal year | $53.10 |
Pension Benefits, Non-U.S. Plans | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' |
Contribution to retirement plans in current fiscal year | $6.30 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 |
Income Tax [Line Items] | ' | ' |
Effective income tax rate | 29.20% | 27.40% |
Federal statutory rate | 35.00% | 35.00% |
Unrecognized tax benefits | $15.70 | ' |
Unrecognized tax benefits that would impact effective tax rate, if recognized | 15 | ' |
Accrued interest and penalties related to unrecognized tax benefits | $5.20 | ' |
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 | |||
In Thousands, except Per Share data, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | ||
Numerator for earnings per share: | ' | ' | ||
Net income attributable to RPM International Inc. stockholders | $99,079 | $103,098 | ||
Less: Allocation of earnings and dividends to participating securities | -2,179 | -2,285 | ||
Net income available to common shareholders - basic | 96,900 | 100,813 | ||
Add: Undistributed earnings reallocated to unvested shareholders | 12 | 12 | ||
Add: Income effect of contingently issuable shares | 1,339 | ' | ||
Net income available to common shareholders - diluted | $98,251 | $100,825 | ||
Denominator for basic and diluted earnings per share: | ' | ' | ||
Basic weighted average common shares | 130,094 | 129,344 | ||
Average diluted options | 1,065 | 950 | ||
Net issuable common share equivalents | 3,873 | [1] | ' | |
Total shares for diluted earnings per share | 135,032 | 130,294 | ||
Earnings Per Share of Common Stock Attributable to RPM International Inc. Stockholders: | ' | ' | ||
Basic | $0.74 | $0.78 | ||
Diluted | $0.73 | [2] | $0.77 | [2] |
[1] | For the quarter ended August 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. | |||
[2] | For the quarters ended August 31, 2014 and 2013, approximately 3,034,000 and 3,097,000 shares of stock, respectively, granted under stock-based compensation plans were excluded from the calculation of diluted earnings per share, as the effect would have been anti-dilutive. |
Reconciliation_of_Numerator_an1
Reconciliation of Numerator and Denominator of Basic and Diluted Earnings Per Share, Calculated using Two-Class Method (Parenthetical) (Detail) | 3 Months Ended | |
Aug. 31, 2014 | Aug. 31, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Stock-based compensation plans, excluded from the calculation of diluted earnings per share, anti-dilutive shares of stock | 3,034,000 | 3,097,000 |
Major_Class_of_Inventory_Detai
Major Class of Inventory (Detail) (USD $) | Aug. 31, 2014 | 31-May-14 |
In Thousands, unless otherwise specified | ||
Inventory [Line Items] | ' | ' |
Raw material and supplies | $211,650 | $213,981 |
Finished goods | 416,813 | 399,663 |
Total Inventory | $628,463 | $613,644 |
Restructuring_Additional_Infor
Restructuring - Additional Information (Detail) (Two Thousand Thirteen Plan, USD $) | 1 Months Ended |
In Millions, unless otherwise specified | 31-May-13 |
Position | |
Facility | |
Consumer Segment | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Restructuring charges | $15.60 |
Number of position eliminated | 133 |
Number of shutdown manufacturing facilities | 2 |
Inventory markdowns | 3.9 |
Consumer Segment | Employee Severance | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Restructuring charges | 8.2 |
Consumer Segment | Facility Closing | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Restructuring charges | 7.4 |
Industrial Segment | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Restructuring charges | $4.50 |
Industrial Segment | Employee Severance | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Expected number of positions to be eliminated | 34 |
Changes_in_Accrued_Restructuri
Changes in Accrued Restructuring Balances (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Aug. 31, 2014 |
Restructuring Cost and Reserve [Line Items] | ' |
Beginning balance | $2,463 |
Cash payments | -618 |
Noncash and foreign exchange impacts | -49 |
Ending balance | 1,796 |
Employee Severance | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Beginning balance | 2,082 |
Cash payments | -492 |
Noncash and foreign exchange impacts | -35 |
Ending balance | 1,555 |
Other | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Beginning balance | 381 |
Cash payments | -126 |
Noncash and foreign exchange impacts | -14 |
Ending balance | $241 |
Summary_of_Marketable_Securiti
Summary of Marketable Securities by Asset Type (Detail) (USD $) | Aug. 31, 2014 | 31-May-14 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-Sale Securities, Amortized Cost | $129,416 | $129,660 |
Available-for-Sale Securities, Gross Unrealized Gains | 13,059 | 14,645 |
Available-for-Sale Securities, Gross Unrealized Losses | -1,411 | -1,425 |
Available-for-Sale Securities, Fair Value (Net Carrying Amount) | 141,064 | 142,880 |
Equity securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-Sale Securities, Amortized Cost | 107,326 | 106,838 |
Available-for-Sale Securities, Gross Unrealized Gains | 12,659 | 14,223 |
Available-for-Sale Securities, Gross Unrealized Losses | -1,179 | -1,261 |
Available-for-Sale Securities, Fair Value (Net Carrying Amount) | 118,806 | 119,800 |
Equity securities | Stocks | Foreign | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-Sale Securities, Amortized Cost | 2,315 | 984 |
Available-for-Sale Securities, Gross Unrealized Gains | 887 | 669 |
Available-for-Sale Securities, Gross Unrealized Losses | -25 | -20 |
Available-for-Sale Securities, Fair Value (Net Carrying Amount) | 3,177 | 1,633 |
Equity securities | Stocks | Domestic | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-Sale Securities, Amortized Cost | 30,867 | 31,071 |
Available-for-Sale Securities, Gross Unrealized Gains | 7,704 | 8,965 |
Available-for-Sale Securities, Gross Unrealized Losses | -153 | -132 |
Available-for-Sale Securities, Fair Value (Net Carrying Amount) | 38,418 | 39,904 |
Equity securities | Mutual funds | Foreign | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-Sale Securities, Amortized Cost | 30,443 | 30,541 |
Available-for-Sale Securities, Gross Unrealized Gains | 2,285 | 2,799 |
Available-for-Sale Securities, Fair Value (Net Carrying Amount) | 32,728 | 33,340 |
Equity securities | Mutual funds | Domestic | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-Sale Securities, Amortized Cost | 43,701 | 44,242 |
Available-for-Sale Securities, Gross Unrealized Gains | 1,783 | 1,790 |
Available-for-Sale Securities, Gross Unrealized Losses | -1,001 | -1,109 |
Available-for-Sale Securities, Fair Value (Net Carrying Amount) | 44,483 | 44,923 |
Fixed maturity | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-Sale Securities, Amortized Cost | 22,090 | 22,822 |
Available-for-Sale Securities, Gross Unrealized Gains | 400 | 422 |
Available-for-Sale Securities, Gross Unrealized Losses | -232 | -164 |
Available-for-Sale Securities, Fair Value (Net Carrying Amount) | 22,258 | 23,080 |
Fixed maturity | U.S. Treasury and other government | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-Sale Securities, Amortized Cost | 20,494 | 21,156 |
Available-for-Sale Securities, Gross Unrealized Gains | 127 | 152 |
Available-for-Sale Securities, Gross Unrealized Losses | -228 | -164 |
Available-for-Sale Securities, Fair Value (Net Carrying Amount) | 20,393 | 21,144 |
Fixed maturity | Corporate bonds | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-Sale Securities, Amortized Cost | 1,474 | 1,544 |
Available-for-Sale Securities, Gross Unrealized Gains | 219 | 212 |
Available-for-Sale Securities, Gross Unrealized Losses | -4 | ' |
Available-for-Sale Securities, Fair Value (Net Carrying Amount) | 1,689 | 1,756 |
Fixed maturity | Foreign bonds | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-Sale Securities, Amortized Cost | 38 | 37 |
Available-for-Sale Securities, Gross Unrealized Gains | 1 | 3 |
Available-for-Sale Securities, Fair Value (Net Carrying Amount) | 39 | 40 |
Fixed maturity | Mortgage-backed securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-Sale Securities, Amortized Cost | 84 | 85 |
Available-for-Sale Securities, Gross Unrealized Gains | 53 | 55 |
Available-for-Sale Securities, Fair Value (Net Carrying Amount) | $137 | $140 |
Marketable_Securities_Addition
Marketable Securities - Additional Information (Detail) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | 31-May-14 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Available-for-sale securities, current | $76.90 | ' | $71.90 |
Available-for-sale securities, long-term | 64.2 | ' | 71 |
Gross gains realized on sales of investments | 2.1 | 2.2 | ' |
Losses recognized for securities deemed to have other-than-temporary impairments | $0 | $0.10 | ' |
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 $) | Aug. 31, 2014 | 31-May-14 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total investments with unrealized losses, fair value | $41,958 | $35,465 |
Unrealized losses with a loss position for less than 12 months, fair value | 26,504 | 16,611 |
Unrealized losses with a loss position for more than 12 months, fair value | 15,454 | 18,854 |
Total investments with unrealized losses, gross unrealized losses | -1,411 | -1,425 |
Unrealized losses with a loss position for less than 12 months, gross unrealized losses | -952 | -845 |
Unrealized losses with a loss position for more than 12 months, gross unrealized losses | ($459) | ($580) |
Net_Carrying_Values_of_Debt_Se
Net Carrying Values of Debt Securities by Contractual Maturity (Detail) (USD $) | Aug. 31, 2014 | 31-May-14 |
In Thousands, unless otherwise specified | ||
Available-for-Sale Securities, amortized cost | ' | ' |
Less than one year, amortized cost | $2,995 | ' |
One year through five years, amortized cost | 14,715 | ' |
Six years through ten years, amortized cost | 3,261 | ' |
After ten years, amortized cost | 1,119 | ' |
Available-for-sale Debt Securities, Amortized Cost Basis, Total | 22,090 | ' |
Available-for-Sale Securities, fair value | ' | ' |
Less than one year, fair value | 2,998 | ' |
One year through five years, fair value | 14,638 | ' |
Six years through ten years, fair value | 3,292 | ' |
After ten years, fair value | 1,330 | ' |
Marketable debt securities, carrying value | $22,258 | $23,080 |
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 $) | Aug. 31, 2014 | 31-May-14 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Contingent consideration | ($55,466) | ($81,296) |
Assets (liabilities) at fair value | 71,691 | 44,616 |
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 | -492 | ' |
Cross-currency swap | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Foreign currency contracts, fair value of liability | -13,415 | -19,550 |
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 | 20,393 | 21,144 |
Foreign bonds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets measured at fair value on recurring basis | 39 | 40 |
Mortgage-backed securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets measured at fair value on recurring basis | 137 | 140 |
Corporate bonds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets measured at fair value on recurring basis | 1,689 | 1,756 |
Stocks | Foreign | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets measured at fair value on recurring basis | 3,177 | 1,633 |
Stocks | Domestic | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets measured at fair value on recurring basis | 38,418 | 39,904 |
Mutual funds | Foreign | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets measured at fair value on recurring basis | 32,728 | 33,340 |
Mutual funds | Domestic | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets measured at fair value on recurring basis | 44,483 | 44,923 |
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 | 41,595 | 41,537 |
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 | 3,177 | 1,633 |
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 | 38,418 | 39,904 |
Significant Other Observable Inputs (Level 2) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets (liabilities) at fair value | 85,562 | 84,375 |
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 | -492 | ' |
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 | -13,415 | -19,550 |
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 | 20,393 | 21,144 |
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 | 39 | 40 |
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 | 137 | 140 |
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 | 1,689 | 1,756 |
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 | 32,728 | 33,340 |
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 | 44,483 | 44,923 |
Significant Unobservable Inputs (Level 3) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Contingent consideration | -55,466 | -81,296 |
Assets (liabilities) at fair value | ($55,466) | ($81,296) |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) | 3 Months Ended | 3 Months Ended | |||||
Aug. 31, 2014 | Aug. 31, 2014 | Aug. 31, 2014 | Aug. 31, 2014 | 31-May-14 | Aug. 31, 2014 | 31-May-14 | |
USD ($) | 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 | ' | ' | ' | $492,000 | ' | $13,415,000 | $19,550,000 |
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 | ' | ' |
Reversal for contingent earn out targets | 1,000,000 | ' | ' | ' | ' | ' | ' |
Settlements of contingent consideration obligations | $24,800,000 | ' | ' | ' | ' | ' | ' |
Fair_Value_and_Carrying_Value_
Fair Value and Carrying Value of Financial Instruments and Long-Term Debt (Detail) (USD $) | Aug. 31, 2014 | 31-May-14 | Aug. 31, 2013 | 31-May-13 |
In Thousands, unless otherwise specified | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents, carrying value | $225,025 | $332,868 | $204,903 | $343,554 |
Marketable equity securities, carrying value | 118,806 | 119,800 | ' | ' |
Marketable debt securities, carrying value | 22,258 | 23,080 | ' | ' |
Long-term debt, including current portion, carrying value | 1,478,026 | 1,351,627 | ' | ' |
Cash and cash equivalents, fair value | 225,025 | 332,868 | ' | ' |
Marketable securities, fair value | 141,064 | 142,880 | ' | ' |
Long-term debt, including current portion, fair value | 1,575,909 | 1,516,062 | ' | ' |
Equity securities | ' | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Marketable securities, fair value | 118,806 | 119,800 | ' | ' |
Fixed maturity | ' | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Marketable securities, fair value | $22,258 | $23,080 | ' | ' |
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 | Aug. 31, 2014 | Aug. 31, 2014 | Aug. 31, 2014 | Aug. 31, 2014 | Aug. 31, 2014 | 31-May-08 | 31-May-13 | 30-May-10 | 31-May-06 | |
Second Anniversary | Third Anniversary | Fourth Anniversary | NMBFil Inc | Subsidiaries | Subsidiaries | Subsidiaries | Subsidiaries | |||||
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 | ' | ' | ' |
Changes_in_Accrued_Warranty_Ba
Changes in Accrued Warranty Balances (Detail) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | ||
Product Liability Contingency [Line Items] | ' | ' | ||
Beginning Balance | $14,741 | $9,330 | ||
Deductions | -14,675 | [1] | -4,796 | [1] |
Provision charged to SG&A expense | 7,355 | 5,308 | ||
Ending Balance | $7,421 | $9,842 | ||
[1] | Primarily claims paid during the year. |
Contingencies_and_Other_Accrue2
Contingencies and Other Accrued Losses - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Aug. 31, 2014 | 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 | ' | ' | ' |
Stock_Repurchase_Program_Addit
Stock Repurchase Program - Additional Information (Detail) | 3 Months Ended |
Aug. 31, 2014 | |
Stock Repurchase Programs [Line Items] | ' |
Authorization of stock repurchase program | 8-Jan-08 |
Shares repurchased | 0 |
Minimum | ' |
Stock Repurchase Programs [Line Items] | ' |
Shares authorized to be repurchased, per year | 1,000,000 |
Maximum | ' |
Stock Repurchase Programs [Line Items] | ' |
Shares authorized to be repurchased, per year | 2,000,000 |
Components_of_Total_Equity_and
Components of Total Equity and Comprehensive Income (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 |
Stockholders Equity Note [Line Items] | ' | ' |
Total equity, beginning of period | $1,578,594 | $1,354,933 |
Net income (loss) | 104,839 | 106,889 |
Other Comprehensive Income: | ' | ' |
Foreign currency translation adjustments | -21,266 | -13,414 |
Pension and other postretirement benefit liability adjustments, net of tax | 2,929 | 2,924 |
Unrealized (loss) gain on securities, net of tax | 76 | -1,439 |
Unrealized gain (loss) on derivatives, net of tax | -66 | 109 |
Total Other Comprehensive (Loss) Income | -18,327 | -11,820 |
Total Comprehensive Income | 86,512 | 95,069 |
Dividends paid | -31,987 | -29,836 |
Stock option exercises, net | -4,451 | 2,401 |
Stock based compensation expense | 5,700 | 709 |
Restricted awards, net | ' | 451 |
Total Equity, end of period | 1,634,368 | 1,423,727 |
Total RPM International Inc. Equity | ' | ' |
Stockholders Equity Note [Line Items] | ' | ' |
Total equity, beginning of period | 1,382,844 | 1,200,858 |
Net income (loss) | 99,079 | 103,098 |
Other Comprehensive Income: | ' | ' |
Foreign currency translation adjustments | -17,738 | -17,071 |
Pension and other postretirement benefit liability adjustments, net of tax | 2,760 | 2,761 |
Unrealized (loss) gain on securities, net of tax | 83 | -1,432 |
Unrealized gain (loss) on derivatives, net of tax | -52 | 86 |
Total Other Comprehensive (Loss) Income | -14,947 | -15,656 |
Total Comprehensive Income | 84,132 | 87,442 |
Dividends paid | -31,987 | -29,836 |
Other noncontrolling interest activity | -4 | -341 |
Stock option exercises, net | -4,451 | 2,401 |
Stock based compensation expense | 5,700 | 709 |
Restricted awards, net | ' | 451 |
Total Equity, end of period | 1,436,234 | 1,261,684 |
Noncontrolling Interest | ' | ' |
Stockholders Equity Note [Line Items] | ' | ' |
Total equity, beginning of period | 195,750 | 154,075 |
Net income (loss) | 5,760 | 3,791 |
Other Comprehensive Income: | ' | ' |
Foreign currency translation adjustments | -3,528 | 3,657 |
Pension and other postretirement benefit liability adjustments, net of tax | 169 | 163 |
Unrealized (loss) gain on securities, net of tax | -7 | -7 |
Unrealized gain (loss) on derivatives, net of tax | -14 | 23 |
Total Other Comprehensive (Loss) Income | -3,380 | 3,836 |
Total Comprehensive Income | 2,380 | 7,627 |
Other noncontrolling interest activity | 4 | 341 |
Total Equity, end of period | $198,134 | $162,043 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 3 Months Ended |
Aug. 31, 2014 | |
Segment | |
Segment Reporting Information [Line Items] | ' |
Number of reportable segments | 2 |
Number of operating segments | 7 |
Results_of_Reportable_Segments
Results of Reportable Segments (Detail) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | 31-May-14 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net Sales | $1,203,896 | $1,164,674 | ' |
Income (Loss) Before Income Taxes | 148,078 | 147,216 | ' |
Total Assets | 4,346,722 | ' | 4,378,365 |
Operating Segments | Industrial Segment | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net Sales | 773,886 | 731,226 | ' |
Income (Loss) Before Income Taxes | 102,464 | 97,581 | ' |
Total Assets | 2,418,189 | ' | 2,507,257 |
Operating Segments | Consumer Segment | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net Sales | 430,010 | 433,448 | ' |
Income (Loss) Before Income Taxes | 76,669 | 82,717 | ' |
Total Assets | 1,734,551 | ' | 1,648,272 |
Corporate/Other | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Income (Loss) Before Income Taxes | -31,055 | -33,082 | ' |
Total Assets | $193,982 | ' | $222,836 |