Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Nov. 30, 2016 | Jan. 03, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Nov. 30, 2016 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | RPM | |
Entity Registrant Name | RPM INTERNATIONAL INC/DE/ | |
Entity Central Index Key | 110,621 | |
Current Fiscal Year End Date | --05-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 133,575,814 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Nov. 30, 2016 | May 31, 2016 |
Current Assets | ||
Cash and cash equivalents | $ 205,907 | $ 265,152 |
Trade accounts receivable (less allowances of $40,909 and $24,600, respectively) | 840,814 | 963,092 |
Inventories | 762,167 | 685,818 |
Prepaid expenses and other current assets | 232,217 | 221,286 |
Total current assets | 2,041,105 | 2,135,348 |
Property, Plant and Equipment, at Cost | 1,353,282 | 1,344,830 |
Allowance for depreciation | (714,353) | (715,377) |
Property, plant and equipment, net | 638,929 | 629,453 |
Other Assets | ||
Goodwill | 1,085,763 | 1,219,630 |
Other intangible assets, net of amortization | 521,198 | 575,401 |
Deferred income taxes | 59,619 | 19,771 |
Other | 200,847 | 185,366 |
Total other assets | 1,867,427 | 2,000,168 |
Total Assets | 4,547,461 | 4,764,969 |
Current Liabilities | ||
Accounts payable | 429,941 | 500,506 |
Current portion of long-term debt | 3,880 | 4,713 |
Accrued compensation and benefits | 126,097 | 183,768 |
Accrued losses | 33,846 | 35,290 |
Other accrued liabilities | 292,849 | 277,914 |
Total current liabilities | 886,613 | 1,002,191 |
Long-Term Liabilities | ||
Long-term debt, less current maturities | 1,634,967 | 1,635,260 |
Other long-term liabilities | 701,091 | 702,979 |
Deferred income taxes | 41,456 | 49,791 |
Total long-term liabilities | 2,377,514 | 2,388,030 |
Commitments and contingencies (Note 13) | ||
Stockholders' Equity | ||
Preferred stock, par value $0.01; authorized 50,000 shares; none issued | ||
Common stock, par value $0.01; authorized 300,000 shares; issued 141,205 and outstanding 133,576 as of November 30, 2016; issued 140,195 and outstanding 132,944 as of May 31, 2016 | 1,336 | 1,329 |
Paid-in capital | 938,963 | 921,956 |
Treasury stock, at cost | (215,936) | (196,274) |
Accumulated other comprehensive (loss) | (555,541) | (502,047) |
Retained earnings | 1,112,610 | 1,147,371 |
Total RPM International Inc. stockholders' equity | 1,281,432 | 1,372,335 |
Noncontrolling Interest | 1,902 | 2,413 |
Total equity | 1,283,334 | 1,374,748 |
Total Liabilities and Stockholders' Equity | $ 4,547,461 | $ 4,764,969 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Nov. 30, 2016 | May 31, 2016 |
Statement Of Financial Position [Abstract] | ||
Trade accounts receivable, allowances | $ 40,909 | $ 24,600 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, authorized | 50,000,000 | 50,000,000 |
Preferred stock, issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, authorized | 300,000,000 | 300,000,000 |
Common stock, issued | 141,205,000 | 140,195,000 |
Common stock, outstanding | 133,576,000 | 132,944,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Nov. 30, 2016 | Nov. 30, 2015 | Nov. 30, 2016 | Nov. 30, 2015 | ||
Income Statement [Abstract] | |||||
Net Sales | $ 1,190,770 | $ 1,155,984 | $ 2,442,833 | $ 2,398,510 | |
Cost of Sales | 669,089 | 662,050 | 1,369,110 | 1,371,618 | |
Gross Profit | 521,681 | 493,934 | 1,073,723 | 1,026,892 | |
Selling, General and Administrative Expenses | 419,494 | 352,594 | 803,579 | 725,448 | |
Goodwill and Other Intangible Asset Impairments | 188,298 | 188,298 | |||
Interest Expense | 22,905 | 22,478 | 45,683 | 44,938 | |
Investment (Income), Net | (2,416) | (1,100) | (6,254) | (5,168) | |
Other Expense (Income), Net | 257 | (299) | 799 | (788) | |
(Loss) Income Before Income Taxes | (106,857) | 120,261 | 41,618 | 262,462 | |
(Benefit) Provision for Income Taxes | (36,601) | 36,112 | (1,520) | 77,951 | |
Net (Loss) Income | (70,256) | 84,149 | 43,138 | 184,511 | |
Less: Net Income Attributable to Noncontrolling Interests | 670 | 716 | 1,295 | 1,263 | |
Net (Loss) Income Attributable to RPM International Inc. Stockholders | $ (70,926) | $ 83,433 | $ 41,843 | $ 183,248 | |
Average Number of Shares of Common Stock Outstanding: | |||||
Basic | 130,695 | 129,398 | 130,647 | 129,723 | |
Diluted | [1] | 130,695 | 136,734 | 130,647 | 137,072 |
(Loss) Earnings per Share of Common Stock Attributable to RPM International Inc. Stockholders: | |||||
Basic | $ (0.54) | $ 0.63 | $ 0.32 | $ 1.39 | |
Diluted | (0.54) | 0.62 | 0.32 | 1.36 | |
Cash Dividends Declared per Share of Common Stock | $ 0.300 | $ 0.275 | $ 0.575 | $ 0.535 | |
[1] | Restricted shares totaling 1,169,393 and 919,918 for the three and six months ended November 30, 2015, respectively, were excluded from the calculation of diluted earnings per share because the grant price of the restricted shares exceeded the average market price of the shares during the period and their effect, accordingly, would have been anti-dilutive. There were no restricted shares identified as being anti-dilutive for the three and six months ended November 30, 2016. In addition, stock appreciation rights (SARs) totaling 1,400,000 for the three and six months ended November 30, 2015 were excluded from the calculation of diluted earnings per share as their effect would have been anti-dilutive. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2016 | Nov. 30, 2015 | Nov. 30, 2016 | Nov. 30, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net (Loss) Income | $ (70,256) | $ 84,149 | $ 43,138 | $ 184,511 |
Other comprehensive (loss) income, net of tax: | ||||
Foreign currency translation adjustments | (51,984) | (53,814) | (63,495) | (84,420) |
Pension and other postretirement benefit liability adjustments (net of tax of $1,963; $1,803; $4,762; $3,817, respectively) | 3,590 | 3,640 | 9,294 | 7,800 |
Unrealized gain (loss) on securities (net of tax of $(320); $632; $776; $(2,595), respectively) | (895) | 369 | 709 | (6,715) |
Total other comprehensive (loss) | (49,289) | (49,805) | (53,492) | (83,335) |
Total Comprehensive (Loss) Income | (119,545) | 34,344 | (10,354) | 101,176 |
Less: Comprehensive Income Attributable to Noncontrolling Interests | 670 | 716 | 1,295 | 1,263 |
Comprehensive (Loss) Income Attributable to RPM International Inc. Stockholders | $ (120,215) | $ 33,628 | $ (11,649) | $ 99,913 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2016 | Nov. 30, 2015 | Nov. 30, 2016 | Nov. 30, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Pension and Other Postretirement Benefit Liability Adjustments, Tax | $ 1,963 | $ 1,803 | $ 4,762 | $ 3,817 |
Unrealized gain (loss) on securities, Tax | $ (320) | $ 632 | $ 776 | $ (2,595) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Nov. 30, 2016 | Nov. 30, 2015 | |
Cash Flows From Operating Activities: | ||
Net income | $ 43,138 | $ 184,511 |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ||
Depreciation | 35,568 | 33,509 |
Amortization | 22,111 | 22,144 |
Goodwill and other intangible asset impairments | 188,298 | |
Reversal of contingent earnout obligations | (14,500) | |
Deferred income taxes | (59,363) | (680) |
Stock-based compensation expense | 17,013 | 15,524 |
Other non-cash interest expense | 4,964 | 4,862 |
Realized (gains) on sales of marketable securities | (3,698) | (4,418) |
Other | (47) | 1,441 |
Changes in assets and liabilities, net of effect from purchases and sales of businesses: | ||
Decrease in receivables | 110,871 | 117,358 |
(Increase) in inventory | (81,586) | (49,781) |
(Increase) decrease in prepaid expenses and other current and long-term assets | (20,876) | 4,617 |
(Decrease) in accounts payable | (69,518) | (105,841) |
(Decrease) in accrued compensation and benefits | (55,662) | (45,649) |
(Decrease) increase in accrued losses | (899) | 715 |
Increase in other accrued liabilities | 28,057 | 7,375 |
Other | 361 | (4,114) |
Cash Provided By Operating Activities | 158,732 | 167,073 |
Cash Flows From Investing Activities: | ||
Capital expenditures | (48,049) | (31,295) |
Acquisition of businesses, net of cash acquired | (65,201) | (12,006) |
Purchase of marketable securities | (25,142) | (14,213) |
Proceeds from sales of marketable securities | 24,588 | 11,737 |
Other | 956 | 5,355 |
Cash (Used For) Investing Activities | (112,848) | (40,422) |
Cash Flows From Financing Activities: | ||
Additions to long-term and short-term debt | 76,369 | 38,765 |
Reductions of long-term and short-term debt | (73,588) | (18,774) |
Cash dividends | (76,604) | (71,276) |
Shares repurchased and returned for taxes | (19,663) | (45,292) |
Payments of acquisition-related contingent consideration | (4,130) | (1,631) |
Other | (1,365) | 270 |
Cash (Used For) Financing Activities | (98,981) | (97,938) |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (6,148) | (12,815) |
Net Change in Cash and Cash Equivalents | (59,245) | 15,898 |
Cash and Cash Equivalents at Beginning of Period | 265,152 | 174,711 |
Cash and Cash Equivalents at End of Period | $ 205,907 | $ 190,609 |
Consolidation, Noncontrolling I
Consolidation, Noncontrolling Interests and Basis of Presentation | 6 Months Ended |
Nov. 30, 2016 | |
Accounting Policies [Abstract] | |
Consolidation, Noncontrolling Interests and Basis of Presentation | NOTE 1 — CONSOLIDATION, NONCONTROLLING INTERESTS AND BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements have been prepared in accordance with Generally Accepted Accounting Principles in the U.S. (“GAAP”) for interim financial information and the instructions to Form 10-Q. In our opinion, all adjustments (consisting of normal, recurring accruals) considered necessary for a fair presentation have been included for the three and six month periods ended November 30, 2016 and 2015. 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, 2016. Our financial statements include all of our majority-owned subsidiaries. We account for our investments in less-than-majority-owned joint ventures, for which we have the ability to exercise significant influence, under the equity method. Effects of transactions between related companies are eliminated in consolidation. Noncontrolling interests are presented in our consolidated financial statements as if parent company investors (controlling interests) and other minority investors (noncontrolling interests) in partially-owned subsidiaries have similar economic interests in a single entity. As a result, investments in noncontrolling interests are reported as equity in our consolidated financial statements. Additionally, our consolidated financial statements include 100% of a controlled subsidiary’s earnings, rather than only our share. Transactions between the parent company and noncontrolling interests are reported in equity as transactions between stockholders, provided that these transactions do not create a change in control. Our business is dependent on external weather factors. Historically, we have experienced strong sales and net income in our first, second and fourth fiscal quarters comprising the three month periods ending August 31, November 30 and May 31, respectively, with weaker performance in our third fiscal quarter (December through February). Certain reclassifications have been made to the prior year financial statements to conform to the current year presentation. |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Nov. 30, 2016 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Pronouncements | NOTE 2 — NEW ACCOUNTING PRONOUNCEMENTS In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers,” which establishes a comprehensive revenue recognition standard for virtually all industries in GAAP. Under the original issuance, the new standard would have applied to annual periods beginning after December 15, 2016, including interim periods therein. However, in August 2015, the FASB issued ASU 2015-14, which extends the standard effective date by one year and includes an option to apply the standard on the original effective date. We are currently reviewing the revised guidance and assessing the potential impacts on each of our different business units’ revenue streams and on our overall Consolidated Financial Statements. In April 2015, the FASB issued ASU 2015-03, "Interest-Imputation of Interest," which changes the presentation of debt issuance costs in financial statements and specifies that debt issuance costs related to a note shall be reported in the balance sheet as a direct deduction from the face amount of the note. The guidance does not change the current requirements surrounding the recognition and measurement of debt issuance costs, and the amortization of debt issuance costs will continue to be reported as interest expense. The guidance is effective for years and interim periods within those fiscal years beginning after December 15, 2015. Early adoption is allowed for all entities and the new guidance shall be applied to all prior periods retrospectively. We adopted ASU 2015-03 on June 1, 2016. As a result, net deferred debt costs are presented as offsets to the carrying amount of the respective debt on our Consolidated Balance Sheets for each period presented. The net deferred debt costs previously reported in our May 31, 2016 Consolidated Balance Sheet in prepaid expenses and other current assets of $3.0 million and other long-term assets of $8.2 million were reclassified as offsets to long-term debt, less current maturities. There was no impact on our results of operations as a result of our adoption of ASU 2015-03. In September 2015, the FASB issued ASU No. 2015-16, “Simplifying the Accounting for Measurement-Period Adjustments,” which simplifies the treatment of adjustments to provisional amounts recognized in the period for items in a business combination for which the accounting is incomplete at the end of the reporting period. The amendments in this ASU are effective for fiscal years beginning after December 15, 2015 and for interim periods therein. Our adoption of the provisions of ASU 2015-16 beginning on June 1, 2016 did not have a material impact on our Consolidated Financial Statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” which increases lease transparency and comparability among organizations. Under the new standard, lessees will be required to recognize all assets and liabilities arising from leases on the balance sheet, with the exception of leases with a term of 12 months or less, which permits a lessee to make an accounting policy election by class of underlying asset not to recognize lease assets and liabilities. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and early adoption is permitted. The new standard requires the recognition and measurement of leases at the beginning of the earliest period presented using a modified retrospective approach, which includes a number of optional practical expedients that entities may elect to apply. We are currently evaluating the impact this guidance will have on our Consolidated Financial Statements. In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which makes a number of changes meant to simplify and improve accounting for share-based payments. The new guidance includes amendments to share based accounting for income taxes, the related classification in the statement of cash flows and share award forfeiture accounting. ASU 2016-09 is effective for public companies for annual reporting periods beginning after December 15, 2016, and interim periods within those reporting periods. Early adoption is permitted. We have elected to early adopt ASU 2016-09 in the first quarter of fiscal 2017. The primary impact of our adoption was the recognition of excess tax benefits related to equity compensation in our provision for income taxes rather than paid-in capital, which is a change required to be applied on a prospective basis in accordance with the new guidance. Accordingly, we recorded a discrete income tax benefit of $10.4 million for excess tax benefits generated during the three months ended August 31, 2016 and $0.9 million during the three months ended November 30, 2016 in the consolidated statements of income. The corresponding cash flows are reflected in cash provided by operating activities instead of financing activities, as was previously required. Additionally, under ASU 2016-09, we have elected to continue to estimate equity award forfeitures expected to occur to determine the amount of compensation cost to be recognized in each period. Additional amendments to the accounting for income taxes and minimum statutory withholding tax requirements had no impact on our results of operations. The presentation requirements for cash flows related to employee taxes paid for withheld shares also had no impact to any of the periods presented in our consolidated statements of cash flows since such cash flows have historically been presented as a financing activity. In August 2016, the FASB issued ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments,” which makes a number of changes meant to add or clarify guidance on the classification of certain cash receipts and payments in the statement of cash flows. The new guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted. Upon adoption, entities must apply the guidance retrospectively to all periods presented. We are currently evaluating the impact this guidance will have on our Consolidated Financial Statements. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Nov. 30, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | NOTE 3 – GOODWILL AND OTHER INTANGIBLE ASSETS The changes in the carrying amount of goodwill, by reportable segment, for the six months ended November 30, 2016 follows: Industrial Specialty Consumer (In thousands) Segment Segment Segment Total Balance as of June 1, 2016 $ 475,355 $ 171,768 $ 572,507 $ 1,219,630 Acquisitions 31,434 31,434 Impairment (140,686 ) (140,686 ) Translation adjustments (12,631 ) (1,766 ) (10,218 ) (24,615 ) Balance as of November 30, 2016 $ 494,158 $ 170,002 $ 421,603 $ 1,085,763 The gross amount of accumulated impairment losses at June 1, 2016 totaled $14.9 million, all of which was recorded during the fiscal year ended May 31, 2009 by our industrial reportable segment. For the three and six months ended November 30, 2016, we recognized $140.7 million of preliminary goodwill impairment losses, which was recorded by our consumer reportable segment. At November 30, 2016, accumulated impairment losses totaled $155.6 million. Other intangible assets as of November 30, 2016 consist of the following major classes: November 30, 2016 Gross Carrying Accumulated Impairment Net Carrying (In thousands) Amount Amortization Charge Amount Amortized intangible assets Formulae $ 216,760 $ (123,977 ) $ (15,364 ) $ 77,419 Customer-related intangibles 322,229 (108,072 ) (30,176 ) 183,981 Trademarks/names 27,808 (13,919 ) 13,889 Other 37,154 (19,723 ) (198 ) 17,233 Total Amortized Intangibles 603,951 (265,691 ) (45,738 ) 292,522 Indefinite-lived intangible assets Trademarks/names 230,721 (2,045 ) 228,676 Total Other Intangible Assets $ 834,672 $ (265,691 ) $ (47,783 ) $ 521,198 The gross amount of other intangible asset accumulated impairment losses at June 1, 2016 totaled $0.6 million, all of which was recorded during the fiscal year ended May 31, 2009 by our industrial reportable segment. For the three and six months ended November 30, 2016, we recorded preliminary other intangible asset impairment losses of approximately $47.8 million, which was recorded by our consumer reportable segment. As previously reported, we had monitored the performance of our Kirker nail enamel business throughout fiscal 2016. During the third quarter ended February 29, 2016, we reported that performance shortfalls for Kirker were attributable to a delay in new business. We performed our annual goodwill impairment analysis during the fourth quarter of fiscal 2016, which resulted in an excess of fair value over carrying value of 8% for our Kirker reporting unit. During our first quarter ended August 31, 2016, we reported that while Kirker’s first quarter results were below the comparable prior year period, their performance was in line with expectations, and our assessment of the Kirker business did not indicate the presence of any goodwill impairment triggering events. For the quarter ended November 30, 2016, we identified certain factors that we considered important in assessing the requirement to perform an interim impairment evaluation for our Kirker reporting unit. First, Kirker’s three month operating results for the period ended November 30, 2016 were significantly below historical and expected operating results and downward adjustments were recently made regarding our expectations for Kirker’s performance. In the quarter ended November 30, 2016, Kirker experienced market share losses at several key customers, including the loss of its largest customer, which accounted for over 15% of Kirker’s fiscal 2016 sales. In addition, some problematic customer relationship issues surfaced during the quarter ended November 30, 2016, which resulted in a personnel change in a key leadership position at Kirker. After considering the totality of these recent events, we determined that an interim step one goodwill impairment assessment was required, as well as an impairment assessment for our intangible and other long-lived assets. Our testing resulted in the preliminary impairment charges reflected above for goodwill and other intangible assets. Our goodwill impairment assessment included estimating the fair value of our Kirker reporting unit and comparing it with its carrying amount at November 30, 2016. Since the carrying amount of Kirker exceeded its fair value, additional steps were required to determine and recognize a preliminary impairment loss. Calculating the fair value of a reporting unit requires our significant use of estimates and assumptions, which are generally considered Level 3 inputs based on our review of the fair value hierarchy. We estimated the fair value of our Kirker reporting unit by applying a discounted future cash flow calculation to Kirker’s projected earnings before interest, taxes, depreciation and amortization (“EBITDA”). In applying this methodology, we relied on a number of factors, including actual and forecasted operating results and market data for the nail enamel industry. Discounted cash flow calculations represent a common measure used to value and buy or sell businesses in our industry. The discounted cash flow used in the goodwill impairment test for Kirker assumed discrete period revenue growth through fiscal 2021 that was reflective of recent downward revisions to previous expectations for future growth from market opportunities related to contracting with certain retailers to fill nail polish for their respective private label brands as well as downward revisions to growth expectations for the Kirker liquid nail polish business below the expected liquid nail polish growth rates for the markets in which Kirker operates. In the terminal year we assumed a long-term earnings growth rate of 3.0% that we believe is appropriate given the current industry specific expectations. As of the valuation date, we utilized a weighted-average cost of capital of 8.0%, which we believe is appropriate as it reflects the relative risk, the time value of money, and is consistent with Kirker’s peer group. After recording the goodwill impairment charge of $140.7 million, no goodwill remains on the Kirker balance sheets as of November 30, 2016. We are not able to finalize our goodwill impairment assessment until such time as we finalize our fair value determinations, which we expect to complete during our third fiscal quarter ending February 28, 2017. At that time, we will record the necessary adjustments, if any, to our preliminary goodwill impairment charge recorded in the current quarter. Our other intangible asset impairment assessment involved estimating the fair value of each of Kirker’s amortizable intangibles and other long-lived assets as well as the indefinite-lived tradename asset and comparing it with its carrying amount. Measuring a potential impairment of amortizable intangibles and other long-lived assets requires the use of various estimates and assumptions, including the determination of which cash flows are directly related to the assets being evaluated, the respective useful lives over which those cash flows will occur and potential residual values, if any. As the results of our testing indicated that the carrying values of certain of these assets would not be recoverable, as outlined in further detail in the table above, we recorded preliminary other intangible asset impairments of approximately $45.7 million for the three and six months ended November 30, 2016. Calculating the fair value of the Kirker indefinite-lived tradename required our significant use of estimates and assumptions. We estimated the fair value of Kirker’s indefinite-live tradename by applying a relief-from-royalty calculation, which included discounted future cash flows related to its projected revenues. In applying this methodology, we relied on a number of factors, including actual and forecasted revenues and market data for the nail enamel industry. As the carrying amount of the tradename exceeded its fair value, the preliminary impairment loss of $2.0 million was recorded for the three and six months ended November 30, 2016. Certain assets and liabilities are subject to nonrecurring fair value measurements, which typically are remeasured at fair value as a result of impairment charges. As a result of the impairment testing described above, the fair value of Kirker’s identifiable intangible assets and indefinite-lived tradename were recalculated, and the resulting fair value approximated $5.8 million. Based upon our review of the fair value hierarchy, the inputs used in these fair value measurements were considered Level 3 inputs. We are not able to finalize our other intangible asset impairment assessments until such time as we finalize our fair value determinations, which we expect to complete during our third fiscal quarter ending February 28, 2017. At that time, we will record the necessary adjustments, if any, to our preliminary impairment charges recorded in the current quarter. |
Marketable Securities
Marketable Securities | 6 Months Ended |
Nov. 30, 2016 | |
Investments Debt And Equity Securities [Abstract] | |
Marketable Securities | NOTE 4 – MARKETABLE SECURITIES The following tables summarize marketable securities held at November 30, 2016 and May 31, 2016 by asset type: Available-For-Sale Securities (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Net Carrying Amount) November 30, 2016 Equity securities: Stocks – foreign $ 5,699 $ 229 $ (323 ) $ 5,605 Stocks – domestic 31,050 2,086 (1,325 ) 31,811 Mutual funds – foreign 34,419 920 (3,204 ) 32,135 Mutual funds – domestic 62,572 1,393 (2,938 ) 61,027 Total equity securities 133,740 4,628 (7,790 ) 130,578 Fixed maturity: U.S. treasury and other government 22,235 76 (295 ) 22,016 Corporate bonds 774 104 (8 ) 870 Total fixed maturity securities 23,009 180 (303 ) 22,886 Total $ 156,749 $ 4,808 $ (8,093 ) $ 153,464 Available-For-Sale Securities (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Net Carrying Amount) May 31, 2016 Equity securities: Stocks – foreign $ 5,051 $ 439 $ (247 ) $ 5,243 Stocks – domestic 27,717 3,831 (911 ) 30,637 Mutual funds – foreign 35,903 802 (4,357 ) 32,348 Mutual funds – domestic 60,354 99 (4,587 ) 55,866 Total equity securities 129,025 5,171 (10,102 ) 124,094 Fixed maturity: U.S. treasury and other government 21,704 214 (80 ) 21,838 Corporate bonds 887 137 - 1,024 Total fixed maturity securities 22,591 351 (80 ) 22,862 Total $ 151,616 $ 5,522 $ (10,182 ) $ 146,956 Marketable securities, included in other current and long-term assets totaling $78.9 million and $74.6 million at November 30, 2016, respectively, and included in other current and long-term assets totaling $74.2 million and $72.8 million at May 31, 2016, 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 $1.9 million and $2.1 million for the quarters ended November 30, 2016 and 2015, respectively. During the second quarter of fiscal 2017 and 2016, we recognized gross realized losses on sales of investments of $0.8 million and $0.1 million, respectively. During the second quarter of fiscal 2017 and 2016, we recognized losses of approximately $0.2 million and $2.5 million for securities deemed to have other-than-temporary impairments. These amounts are included in investment (income), net in the Consolidated Statements of Income. Gross gains realized on sales of investments were $4.7 million and $4.6 million for the six months ended November 30, 2016 and 2015, respectively. During the first six months of fiscal 2017 and 2016, we recognized gross realized losses on sales of investments of $1.0 million and $0.2 million, respectively. During the first six months of fiscal 2017 and 2016, we recognized losses of approximately $0.4 million and $2.5 million, respectively, for securities deemed to have other-than-temporary impairments. Summarized below are the securities we held at November 30, 2016 and May 31, 2016 that were in an unrealized loss position and that were included in accumulated other comprehensive income (loss), aggregated by the length of time the investments had been in that position: November 30, 2016 May 31, 2016 (In thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Total investments with unrealized losses $ 99,283 $ (8,093 ) $ 89,360 $ (10,182 ) Unrealized losses with a loss position for less than 12 months 35,039 (1,925 ) 41,762 (4,856 ) Unrealized losses with a loss position for more than 12 months 64,244 (6,168 ) 47,598 (5,326 ) 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 November 30, 2016 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 November 30, 2016, 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 Due: Less than one year $ 6,157 $ 6,127 One year through five years 12,606 12,486 Six years through ten years 3,140 3,079 After ten years 1,106 1,194 $ 23,009 $ 22,886 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Nov. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 5 — FAIR VALUE MEASUREMENTS Financial instruments recorded in the balance sheet include cash and cash equivalents, trade accounts receivable, marketable securities, notes and accounts payable, and debt. An allowance for anticipated uncollectible trade receivable amounts is established using a combination of specifically identified accounts to be reserved, and a reserve covering trends in collectibility. These estimates are based on an analysis of trends in collectibility and past experience, but are primarily made up of individual account balances identified as doubtful based on specific facts and conditions. Receivable losses are charged against the allowance when we confirm uncollectibility. 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 in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value at November 30, 2016 U.S. Treasury and other government $ - $ 22,016 $ - $ 22,016 Corporate bonds 870 870 Stocks - foreign 5,605 5,605 Stocks - domestic 31,811 31,811 Cash and cash equivalents 1,328 1,328 Mutual funds - foreign 32,135 32,135 Mutual funds - domestic 61,027 61,027 Foreign currency forward contract (100 ) (100 ) Contingent consideration (7,640 ) (7,640 ) Total $ 38,744 $ 115,948 $ (7,640 ) $ 147,052 (In thousands) Quoted in Active Markets for Identical (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value at May 31, 2016 U.S. Treasury and other government $ - $ 21,838 $ - $ 21,838 Corporate bonds 1,024 1,024 Stocks - foreign 5,243 5,243 Stocks - domestic 30,637 30,637 Mutual funds - foreign 32,348 32,348 Mutual funds - domestic 55,866 55,866 Foreign currency forward contract (159 ) (159 ) Contingent consideration (11,771 ) (11,771 ) Total $ 35,880 $ 110,917 $ (11,771 ) $ 135,026 Our marketable securities are primarily composed of 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. At November 30, 2016, we had a foreign currency forward contract with a fair value of approximately $0.1 million, which is classified in other current liabilities in our Consolidated Balance Sheets. At May 31, 2016, we had a foreign currency forward contract with a fair value of approximately $0.2 million, which is classified in other accrued liabilities in our Consolidated Balance Sheets. Our foreign currency forward contract, which has not been designated as a hedge, was designed to reduce our exposure to the changes in the cash flows of intercompany foreign-currency-denominated loans related to changes in foreign currency exchange rates by fixing the functional currency cash flows. The foreign exchange rates included in the forward contract are based upon observable market data, but are not quoted market prices, and therefore, the forward currency forward contract is considered a Level 2 liability on the fair value hierarchy. The contingent consideration represents the estimated fair value of the additional variable cash consideration payable in connection with recent acquisitions that is contingent upon the achievement of certain performance milestones. We estimated the fair value using expected future cash flows over the period in which the obligation is expected to be settled, and applied a discount rate that appropriately captures a market participant's view of the risk associated with the obligation, which are considered to be Level 3 inputs. During fiscal 2017, we paid approximately $4.1 million for settlements of contingent consideration obligations relating to certain performance milestones that were established in prior periods and achieved during the current period, and these amounts are reported in payments of acquisition-related contingent consideration in cash flows from financing activities in the Consolidated Statements of Cash Flows. The carrying value of our current financial instruments, which include cash and cash equivalents, marketable securities, trade accounts receivable, accounts payable and short-term debt approximates fair value because of the short-term maturity of these financial instruments. At November 30, 2016 and May 31, 2016, the fair value of our long-term debt was estimated using active market quotes, based on our current incremental borrowing rates for similar types of borrowing arrangements, which are considered to be Level 2 inputs. Based on the analysis performed, the fair value and the carrying value of our financial instruments and long-term debt as of November 30, 2016 and May 31, 2016 are as follows: At November 30, 2016 (In thousands) Carrying Value Fair Value Cash and cash equivalents $ 205,907 $ 205,907 Marketable equity securities 130,578 130,578 Marketable debt securities 22,886 22,886 Long-term debt, including current portion 1,638,847 1,904,270 At May 31, 2016 (In thousands) Carrying Value Fair Value Cash and cash equivalents $ 265,152 $ 265,152 Marketable equity securities 124,094 124,094 Marketable debt securities 22,862 22,862 Long-term debt, including current portion 1,639,973 1,925,079 |
Investment (Income), Net
Investment (Income), Net | 6 Months Ended |
Nov. 30, 2016 | |
Other Income And Expenses [Abstract] | |
Investment (Income), Net | NOTE 6 - INVESTMENT (INCOME), NET Investment (income), net, consists of the following components: Three Months Ended Six Months Ended November 30, November 30, (In thousands) 2016 2015 2016 2015 Interest (income) $ (1,093 ) $ (1,218 ) $ (2,233 ) $ (2,582 ) (Gain) on sale of marketable securities (1,114 ) (2,042 ) (3,698 ) (4,418 ) Other-than-temporary impairment on securities 217 2,472 403 2,472 Dividend (income) (426 ) (312 ) (726 ) (640 ) Investment (income), net $ (2,416 ) $ (1,100 ) $ (6,254 ) $ (5,168 ) |
Other Expense (Income), Net
Other Expense (Income), Net | 6 Months Ended |
Nov. 30, 2016 | |
Other Income And Expenses [Abstract] | |
Other Expense (Income), Net | NOTE 7 - OTHER EXPENSE (INCOME), NET Other expense (income), net, consists of the following components: Three Months Ended Six Months Ended November 30, November 30, (In thousands) 2016 2015 2016 2015 Royalty expense, net $ 581 $ 174 $ 1,336 $ 163 (Income) related to unconsolidated equity affiliates (324 ) (473 ) (537 ) (951 ) Other expense (income), net $ 257 $ (299 ) $ 799 $ (788 ) |
Income Taxes
Income Taxes | 6 Months Ended |
Nov. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 8 — INCOME TAXES The effective income tax benefit rate was 34.3% for the three months ended November 30, 2016 compared to an effective income tax expense rate of 30.0% for the three months ended November 30, 2015. The effective income tax benefit rate was 3.7% for the six months ended November 30, 2016 compared to an effective income tax expense rate of 29.7% for the six months ended November 30, 2015. The effective tax rate for the three and six months ended November 30, 2016 and 2015 reflect variances from the 35% federal statutory rate due to the lower effective tax rate of certain of our foreign subsidiaries, the benefit of the domestic manufacturing deduction and the unfavorable impact of state and local taxes. Additionally, as a result of our current year early adoption of ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting”, we recorded a $10.4 million discrete tax benefit during the three months ended August 31, 2016 and an additional $0.9 million discrete tax benefit for the three months ended November 30, 2016, for excess tax benefits related to equity compensation. Please see Note 2, “New Accounting Pronouncements,” for additional discussion regarding our adoption of the standard. At May 31, 2016, we determined that it was possible that we would repatriate approximately $377.3 million of undistributed foreign earnings in the foreseeable future. Accordingly, as of May 31, 2016, we recorded a deferred income tax liability of $98.5 million, which represented our estimate of the net U.S income and foreign withholding tax associated with the $377.3 million of unremitted foreign earnings. As of November 30, 2016, the amount of undistributed earnings that may be repatriated and the corresponding deferred tax liability has been adjusted to $368.8 million and $95.3 million, respectively. The adjustments are primarily due to foreign currency translation, which was recorded as a component of other comprehensive income. We have not provided for U.S. income and foreign withholding taxes on the remaining foreign subsidiaries’ undistributed earnings because such earnings have been retained and reinvested by the subsidiaries as of November 30, 2016. Accordingly, no provision has been made for U.S. income taxes or foreign withholding taxes, which may become payable if the remaining undistributed earnings of those foreign subsidiaries were paid to us as dividends. |
Inventories
Inventories | 6 Months Ended |
Nov. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 9 — INVENTORIES Inventories, net of reserves, were composed of the following major classes: November 30, 2016 May 31, 2016 (In thousands) Raw material and supplies $ 237,231 $ 227,900 Finished goods 524,936 457,918 Total Inventory, Net of Reserves $ 762,167 $ 685,818 |
Stock Repurchase Program
Stock Repurchase Program | 6 Months Ended |
Nov. 30, 2016 | |
Equity [Abstract] | |
Stock Repurchase Program | NOTE 10 — 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 and six months ended November 30, 2016, we did not repurchase any shares of our common stock under this program. During the three and six months ended November 30, 2015, we repurchased approximately 100,000 shares and 400,000 shares of our common stock under this program, respectively. These shares of common stock were repurchased during the prior year second quarter and six month period for approximately $4.4 million and $17.2 million, respectively. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 6 Months Ended |
Nov. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | NOTE 11 — EARNINGS (LOSS) 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 treasury stock method for the three months ended November 30, 2016 and the two-class method for the six months ended November 30, 2016. For the three and six months ended November 30, 2015, the two-class method was used to compute basic earnings per share, while the treasury stock method was utilized for the purpose of computing diluted earnings per share, as that method resulted in the most-dilutive earnings per share. Three Months Ended Six Months Ended November 30, November 30, (In thousands, except per share amounts) 2016 2015 2016 2015 Numerator for earnings per share: Net income (loss) attributable to RPM International Inc. stockholders $ (70,926 ) $ 83,433 $ 41,843 $ 183,248 Less: Allocation of earnings and dividends to participating securities (1,571 ) (621 ) (3,068 ) Net income (loss) available to common shareholders – basic (70,926 ) 81,862 41,222 180,180 Add: Undistributed earnings reallocated to unvested shareholders Reverse: Allocation of earnings and dividends to participating securities 1,571 3,068 Add: Income effect of contingently issuable shares 1,354 2,706 Net income (loss) available to common shareholders – diluted $ (70,926 ) $ 84,787 $ 41,222 $ 185,954 Denominator for basic and diluted earnings per share: Basic weighted average common shares 130,695 129,398 130,647 129,723 Average diluted options 3,453 3,466 Additional shares issuable assuming conversion of convertible securities (1) 3,883 3,883 Total shares for diluted earnings per share (2) 130,695 136,734 130,647 137,072 Earnings (Loss) Per Share of Common Stock Attributable to RPM International Inc. Stockholders: Basic Earnings (Loss) Per Share of Common Stock $ (0.54 ) $ 0.63 $ 0.32 $ 1.39 Diluted Earnings (Loss) Per Share of Common Stock $ (0.54 ) $ 0.62 $ 0.32 $ 1.36 (1) 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) Restricted shares totaling 1,169,393 and 919,918 for the three and six months ended November 30, 2015, respectively, were excluded from the calculation of diluted earnings per share because the grant price of the restricted shares exceeded the average market price of the shares during the period and their effect, accordingly, would have been anti-dilutive. There were no restricted shares identified as being anti-dilutive for the three and six months ended November 30, 2016. In addition, stock appreciation rights (SARs) totaling 1,400,000 for the three and six months ended November 30, 2015 were excluded from the calculation of diluted earnings per share as their effect would have been anti-dilutive. |
Pension Plans
Pension Plans | 6 Months Ended |
Nov. 30, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |
Pension Plans | NOTE 12 — PENSION PLANS We offer defined benefit pension plans, defined contribution pension plans, as well as several unfunded health care benefit plans primarily for certain of our retired employees. The following tables provide the retirement-related benefit plans’ impact on income before income taxes for the three and six month periods ended November 30, 2016 and 2015: U.S. Plans Non-U.S. Plans Three Months Ended Three Months Ended November 30, November 30, November 30, November 30, Pension Benefits 2016 2015 2016 2015 (In thousands) Service cost $ 9,401 $ 8,202 $ 1,127 $ 1,067 Interest cost 4,331 4,499 1,224 1,323 Expected return on plan assets (6,252 ) (6,437 ) (1,886 ) (1,983 ) Amortization of: Prior service cost 54 58 Net actuarial losses recognized 5,540 4,190 573 457 Settlement 91 Net Periodic Benefit Cost $ 13,074 $ 10,512 $ 1,038 $ 955 U.S. Plans Non-U.S. Plans Three Months Ended Three Months Ended November 30, November 30, November 30, November 30, Postretirement Benefits 2016 2015 2016 2015 (In thousands) Service cost $ - $ - $ 284 $ 281 Interest cost 57 59 222 221 Amortization of: Prior service (credit) (58 ) (62 ) Net actuarial (gains) losses recognized 60 61 Net Periodic Benefit Cost $ (1 ) $ (3 ) $ 566 $ 563 U.S. Plans Non-U.S. Plans Six Months Ended Six Months Ended November 30, November 30, November 30, November 30, Pension Benefits 2016 2015 2016 2015 (In thousands) Service cost $ 18,802 $ 16,404 $ 2,254 $ 2,134 Interest cost 8,662 8,998 2,448 2,646 Expected return on plan assets (12,504 ) (12,874 ) (3,772 ) (3,966 ) Amortization of: Prior service cost 108 116 - - Net actuarial losses recognized 11,080 8,380 1,146 914 Settlement - - - 91 Net Periodic Benefit Cost $ 26,148 $ 21,024 $ 2,076 $ 1,819 U.S. Plans Non-U.S. Plans Six Months Ended Six Months Ended November 30, November 30, November 30, November 30, Postretirement Benefits 2016 2015 2016 2015 (In thousands) Service cost $ - $ - $ 568 $ 562 Interest cost 114 118 444 442 Amortization of: Prior service (credit) (116 ) (124 ) - - Net actuarial (gains) losses recognized - - 120 122 Net Periodic Benefit Cost $ (2 ) $ (6 ) $ 1,132 $ 1,126 The current year increases in pension and postretirement benefit cost reflect the impact of our assumptions used to determine net cost. The rate of expected return on plan assets and the effective discount rate applicable to service cost assumptions both decreased from fiscal 2016 to fiscal 2017. We expect that pension expense will fluctuate on a year-to-year basis, depending upon the investment performance of plan assets and potential changes in interest rates, but such changes are not expected to be material to our consolidated financial results. We previously disclosed in our financial statements for the fiscal year ended May 31, 2016 that we expected to contribute approximately $54.1 million to our retirement plans in the U.S. and approximately $6.0 million to plans outside the U.S. during the current fiscal year. As of November 30, 2016, this has not changed. |
Contingencies and Other Accrued
Contingencies and Other Accrued Losses | 6 Months Ended |
Nov. 30, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingencies and Other Accrued Losses | NOTE 13 – 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 product liability accruals provide for these potential losses as well as other uninsured claims. Product liability accruals are established based upon actuarial calculations of potential liability using industry experience, actual historical experience and actuarial assumptions developed for similar types of product liability claims, including development factors and lag times. To the extent there is a reasonable possibility that potential losses could exceed the amounts already accrued, we believe that the amount of any such additional loss would be immaterial to our results of operations, liquidity and consolidated financial position. We also offer warranties on many of our products, as well as long-term warranty programs at certain of our businesses, and have established product warranty liabilities. We review these liabilities for adequacy on a quarterly basis and adjust them as necessary. The primary factors that could affect these liabilities may include changes in performance rates as well as costs of replacement. Provision for estimated warranty costs is recorded at the time of sale and periodically adjusted, as required, to reflect actual experience. It is probable that we will incur future losses related to warranty claims we have received but that have not been fully investigated and related to claims not yet received. While our warranty liabilities represent our best estimates at November 30, 2016, we can provide no assurances that we will not experience material claims in the future or that we will not incur significant costs to resolve such claims beyond the amounts accrued or beyond what we may recover from our suppliers. Based upon the nature of the expense, product warranty expense is recorded as a reduction of sales, as a component of cost of sales, or within selling, general and administrative expense. Also, due to the nature of our businesses, the amount of claims paid can fluctuate from one period to the next. While our warranty liabilities represent our best estimates of our expected losses at any given time, from time-to-time we may revise our estimates based on our experience relating to factors such as weather conditions, specific circumstances surrounding product installations and other factors. The following table includes the changes in our accrued warranty balances: Three Months Ended Six Months Ended November 30, November 30, 2016 2015 2016 2015 (In thousands) Beginning Balance $ 15,233 $ 10,112 $ 13,314 $ 11,663 Deductions (1) (5,942 ) (4,890 ) (8,432 ) (9,550 ) Provision charged to expense 6,663 4,218 11,072 7,327 Ending Balance $ 15,954 $ 9,440 $ 15,954 $ 9,440 (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 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. We were notified by the SEC on June 24, 2014, that we are the subject of a formal investigation pertaining to the timing of our disclosure and accrual of loss reserves in fiscal 2013 with respect to the previously disclosed U.S. Department Of Justice (the “DOJ”) and the U.S. General Services Administration (the “GSA”) Office of Inspector General investigation into compliance issues relating to Tremco Roofing Division’s GSA contracts. As previously disclosed, our audit committee completed an investigation into the facts and circumstances surrounding the timing of our disclosure and accrual of loss reserves with respect to the GSA and DOJ investigations, and determined that it was appropriate to restate our financial results for the first, second and third quarters of fiscal 2013. These restatements had no impact on our audited financial statements for the fiscal years ended May 31, 2013 or 2014. The audit committee’s investigation concluded that there was no intentional misconduct on the part of any of our officers. In connection with the foregoing, on September 9, 2016, the SEC filed an enforcement action against us and our General Counsel. We have cooperated with the SEC’s investigation and believe the allegations in the complaint mischaracterize both our and our General Counsel’s actions in connection with the matters related to our quarterly results in fiscal 2013 and are without merit. We intend to contest the allegations in the complaint vigorously. The action by the SEC could result in sanctions against us and/or our General Counsel and could impose substantial additional costs and distractions, regardless of its outcome. We have determined that it is probable that we will incur a loss relating to this matter and have estimated a range of potential loss. We have accrued at the low end of the range of loss, as no amount within the range is more likely to occur, and no amount within the estimated range of loss would have a material impact on our consolidated financial condition, results of operations or cash flows. In December 2014, we received notice of a claim seeking damages against one of our industrial segment subsidiaries alleging failure of a coating system application on a parking garage in Dubai, UAE. Insurance coverage discussions are ongoing. Based on our current understanding of the claim, and given the ongoing insurance coverage discussions, we have determined that it is reasonably possible that we may incur a loss related to this claim, and have estimated a range of potential loss. We have accrued at the low end of the range of loss, as no amount within the range is more likely to occur, and no amount within the estimated range of loss would have a material impact on our consolidated financial condition, results of operations or cash flows. A consolidated class-action complaint is pending against Rust-Oleum Corporation (“Rust-Oleum”) 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. In October 2016, the parties executed a settlement agreement. Upon final court approval, Rust-Oleum will deposit $9.3 million into a settlement fund in satisfaction of the claims. We recorded the amount of the settlement in accrued losses in our Consolidated Balance Sheets and reflected the amount in other expense (income), net, in our Consolidated Statements of Income as of and for the fiscal year ended May 31, 2016. |
Equity
Equity | 6 Months Ended |
Nov. 30, 2016 | |
Equity [Abstract] | |
Equity | NOTE 14 – EQUITY The following tables illustrate the components of total equity and comprehensive income for the three months ended November 30, 2016 and 2015: (In thousands) Total RPM International Inc. Equity Noncontrolling Interest Total Equity Total equity at August 31, 2016 $ 1,435,438 $ 2,126 $ 1,437,564 Net income (loss) (70,926 ) 670 (70,256 ) Other Comprehensive Income: Foreign currency translation adjustments (51,984 ) (51,984 ) Pension and other postretirement benefit liability adjustments, net of tax 3,590 3,590 Unrealized (loss) on securities, net of tax (895 ) (895 ) Total Other Comprehensive (Loss), net of tax (49,289 ) - (49,289 ) Comprehensive Income (Loss) (120,215 ) 670 (119,545 ) Dividends paid (40,075 ) (40,075 ) Other noncontrolling interest activity (894 ) (894 ) Shares repurchased and returned for taxes (2,558 ) (2,558 ) Stock based compensation expense 8,842 8,842 Total Equity at November 30, 2016 $ 1,281,432 $ 1,902 $ 1,283,334 (In thousands) Total RPM International Inc. Equity Noncontrolling Interest Total Equity Total equity at August 31, 2015 $ 1,294,402 $ 2,620 $ 1,297,022 Net income 83,433 716 84,149 Other Comprehensive Income: Foreign currency translation adjustments (53,814 ) (53,814 ) Pension and other postretirement benefit liability adjustments, net of tax 3,640 3,640 Unrealized gain on securities, net of tax 369 369 Total Other Comprehensive (Loss), net of tax (49,805 ) - (49,805 ) Comprehensive Income 33,628 716 34,344 Dividends paid (36,642 ) (36,642 ) Other noncontrolling interest activity (1,373 ) (1,373 ) Shares repurchased and returned for taxes (9,944 ) (9,944 ) Stock based compensation expense 8,817 8,817 Total Equity at November 30, 2015 $ 1,290,261 $ 1,963 $ 1,292,224 The following tables illustrate the components of total equity and comprehensive income for the six months ended November 30, 2016 and 2015: (In thousands) Total International Inc. Equity Noncontrolling Interest Total Equity Total equity at May 31, 2016 $ 1,372,335 $ 2,413 $ 1,374,748 Net income 41,843 1,295 43,138 Other Comprehensive Income: Foreign currency translation adjustments (63,495 ) (63,495 ) Pension and other postretirement benefit liability adjustments, net of tax 9,294 9,294 Unrealized gain on securities, net of tax 709 709 Total Other Comprehensive (Loss), net of tax (53,492 ) - (53,492 ) Comprehensive Income (Loss) (11,649 ) 1,295 (10,354 ) Dividends paid (76,604 ) (76,604 ) Other noncontrolling interest activity (1,806 ) (1,806 ) Shares repurchased and returned for taxes (19,663 ) (19,663 ) Stock based compensation expense 17,013 17,013 Total Equity at November 30, 2016 $ 1,281,432 $ 1,902 $ 1,283,334 (In thousands) Total International Inc. Equity Noncontrolling Interest Total Equity Total equity at May 31, 2015 $ 1,291,392 $ 2,073 $ 1,293,465 Net income 183,248 1,263 184,511 Other Comprehensive Income: Foreign currency translation adjustments (84,420 ) (84,420 ) Pension and other postretirement benefit liability adjustments, net of tax 7,800 7,800 Unrealized (loss) on securities, net of tax (6,715 ) (6,715 ) Total Other Comprehensive (Loss), net of tax (83,335 ) - (83,335 ) Comprehensive Income 99,913 1,263 101,176 Dividends paid (71,276 ) (71,276 ) Other noncontrolling interest activity (1,373 ) (1,373 ) Shares repurchased and returned for taxes (45,292 ) (45,292 ) Stock based compensation expense 15,524 15,524 Total Equity at November 30, 2015 $ 1,290,261 $ 1,963 $ 1,292,224 |
Segment Information
Segment Information | 6 Months Ended |
Nov. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 15 — SEGMENT INFORMATION We changed the composition of our operating and reportable segments in order to reflect management’s view of the operating results for each segment during our first quarter ended August 31, 2016. Under our new composition, we made the determination to move a group of businesses serving the industrial flooring, concrete repair and specialty waterproofing markets out of our specialty reportable segment into our Performance Coatings Group operating segment, which better aligns with our management structure and reports through our industrial reportable segment. For the fiscal year ended May 31, 2016, this group of businesses represented less than 1% of our consolidated net sales, income before income taxes and identifiable assets. Further, the impact of the change on net sales and income before income taxes for our industrial and specialty reportable segments for the three and six months ended November 30, 2015 was less than 10%. Information for all periods presented has been recast to reflect this change. We operate a portfolio of businesses and product lines that manufacture and sell a variety of specialty paints, protective coatings and roofing systems, sealants and adhesives. We manage our portfolio by organizing our businesses and product lines into three reportable segments: the industrial reportable segment, the specialty reportable segment and the consumer reportable segment. Within each reportable segment, we aggregate operating segments or product lines that consist of individual companies or groups of companies and product lines, which generally address common markets, share similar economic characteristics, utilize similar technologies and can share manufacturing or distribution capabilities. Our 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 operating decision maker 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. The industrial reportable segment comprises three separate operating segments — Tremco Group, tremco illbruck Group and Performance Coatings Group. Products and services within this reportable segment include construction chemicals, roofing systems, weatherproofing and other sealants, and polymer flooring. Our specialty reportable segment products are sold throughout North America and a few international locations, primarily in Europe. Our specialty product lines are sold directly to contractors, distributors and end-users, such as industrial manufacturing facilities, public institutions and other commercial customers. The specialty reportable segment is a single operating segment, which offers products that include industrial cleaners, restoration services equipment, colorants, exterior finishes, edible coatings and specialty glazes for pharmaceutical and food industries, and other specialty OEM coatings. Our consumer reportable segment manufactures and markets professional use and do-it-yourself (“DIY”) products for a variety of mainly consumer applications, including home improvement and personal leisure activities. Our consumer segment’s major manufacturing and distribution operations are located primarily in North America, along with a few locations in Europe and other parts of the world. Our consumer reportable segment products are primarily sold directly to mass merchandisers, home improvement centers, hardware stores, paint stores, craft shops, cosmetic companies and through distributors. This reportable segment comprises three operating segments — Rust-Oleum Group, DAP Group and SPG-Consumer Group. Products within this reportable segment include specialty, hobby and professional paints; nail care enamels; caulks; adhesives; silicone sealants and wood stains. In addition to our three reportable segments, there is a category of certain business activities and expenses, referred to as corporate/other, that does not constitute an operating segment. This category includes our corporate headquarters and related administrative expenses, results of our captive insurance companies, gains or losses on the sales of certain assets and other expenses not directly associated with any reportable segment. Assets related to the corporate/other category consist primarily of investments, prepaid expenses and headquarters’ property and equipment. These corporate and other assets and expenses reconcile reportable segment data to total consolidated income before income taxes and identifiable assets. We reflect income from our joint ventures on the equity method, and receive royalties from our licensees. The following tables reflect the results of our reportable segments consistent with our management philosophy, and represent the information we utilize, in conjunction with various strategic, operational and other financial performance criteria, in evaluating the performance of our portfolio of businesses. Information for all periods presented has been recast to reflect the current year change in reportable segments. Three Months Ended Six Months Ended November 30, November 30, November 30, November 30, 2016 2015 2016 2015 (In thousands) Net Sales Industrial Segment $ 633,429 $ 623,305 $ 1,309,269 $ 1,300,413 Specialty Segment 183,567 173,625 359,903 343,486 Consumer Segment 373,774 359,054 773,661 754,611 Consolidated $ 1,190,770 $ 1,155,984 $ 2,442,833 $ 2,398,510 Income (Loss) Before Income Taxes Industrial Segment $ 50,291 $ 64,008 $ 139,557 $ 148,476 Specialty Segment 31,160 28,278 61,664 54,767 Consumer Segment (140,575 ) 65,429 (70,487 ) 131,552 Corporate/Other (47,733 ) (37,454 ) (89,116 ) (72,333 ) Consolidated $ (106,857 ) $ 120,261 $ 41,618 $ 262,462 November 30, 2016 May 31, 2016 Identifiable Assets Industrial Segment $ 2,212,754 $ 2,206,062 Specialty Segment 736,832 754,757 Consumer Segment 1,568,657 1,734,600 Corporate/Other 29,218 69,550 Consolidated $ 4,547,461 $ 4,764,969 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Nov. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 16 – SUBSEQUENT EVENTS Subsequent to the end of our second fiscal quarter, we established a restructuring plan, which includes the closure of a European facility and severance charges for certain personnel in our specialty reportable segment. We are in the process of finalizing our estimates, but currently anticipate the charges related to these actions to approximate $10.0 million. We expect to announce our plan to affected personnel and record a restructuring charge during our third fiscal quarter ending February 28, 2017. Subsequent to the end of our second fiscal quarter, we made the decision to exit the Flowcrete polymer flooring business located in the Middle East. As a result of this decision, we determined it was appropriate to perform additional reviews of our existing reserves for obsolete and slow moving inventory as well as the collectability of our accounts receivable. Accordingly, we determined that it was necessary as of November 30, 2016 to record a charge for approximately $12.3 million related to this decision. As previously reported, during fiscal 2015, a plan of reorganization was confirmed (the “Bankruptcy Plan”) and, effective as of December 23, 2014, Bondex, SPHC, Republic and NMBFiL emerged from bankruptcy. In accordance with the Bankruptcy Plan, trusts were established under Section 524(g) of the United States Bankruptcy Code (together, the “Trust”) and were funded with first installments. Borrowings under our New Revolving Credit Facility were used to fund the initial trust payment of $450 million, which is classified as long-term debt in our Consolidated Balance Sheets. The Trust was funded with $450 million in cash and a promissory note, bearing no interest and maturing on or before December 23, 2018 (the “Bankruptcy Note”). The Bankruptcy Plan, and Bankruptcy Note, provide for additional contributions to the Trust. Accordingly, on December 23, 2016, we deposited $102.5 million into the Trust. |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 6 Months Ended |
Nov. 30, 2016 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Pronouncements | NEW ACCOUNTING PRONOUNCEMENTS In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers,” which establishes a comprehensive revenue recognition standard for virtually all industries in GAAP. Under the original issuance, the new standard would have applied to annual periods beginning after December 15, 2016, including interim periods therein. However, in August 2015, the FASB issued ASU 2015-14, which extends the standard effective date by one year and includes an option to apply the standard on the original effective date. We are currently reviewing the revised guidance and assessing the potential impacts on each of our different business units’ revenue streams and on our overall Consolidated Financial Statements. In April 2015, the FASB issued ASU 2015-03, "Interest-Imputation of Interest," which changes the presentation of debt issuance costs in financial statements and specifies that debt issuance costs related to a note shall be reported in the balance sheet as a direct deduction from the face amount of the note. The guidance does not change the current requirements surrounding the recognition and measurement of debt issuance costs, and the amortization of debt issuance costs will continue to be reported as interest expense. The guidance is effective for years and interim periods within those fiscal years beginning after December 15, 2015. Early adoption is allowed for all entities and the new guidance shall be applied to all prior periods retrospectively. We adopted ASU 2015-03 on June 1, 2016. As a result, net deferred debt costs are presented as offsets to the carrying amount of the respective debt on our Consolidated Balance Sheets for each period presented. The net deferred debt costs previously reported in our May 31, 2016 Consolidated Balance Sheet in prepaid expenses and other current assets of $3.0 million and other long-term assets of $8.2 million were reclassified as offsets to long-term debt, less current maturities. There was no impact on our results of operations as a result of our adoption of ASU 2015-03. In September 2015, the FASB issued ASU No. 2015-16, “Simplifying the Accounting for Measurement-Period Adjustments,” which simplifies the treatment of adjustments to provisional amounts recognized in the period for items in a business combination for which the accounting is incomplete at the end of the reporting period. The amendments in this ASU are effective for fiscal years beginning after December 15, 2015 and for interim periods therein. Our adoption of the provisions of ASU 2015-16 beginning on June 1, 2016 did not have a material impact on our Consolidated Financial Statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” which increases lease transparency and comparability among organizations. Under the new standard, lessees will be required to recognize all assets and liabilities arising from leases on the balance sheet, with the exception of leases with a term of 12 months or less, which permits a lessee to make an accounting policy election by class of underlying asset not to recognize lease assets and liabilities. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and early adoption is permitted. The new standard requires the recognition and measurement of leases at the beginning of the earliest period presented using a modified retrospective approach, which includes a number of optional practical expedients that entities may elect to apply. We are currently evaluating the impact this guidance will have on our Consolidated Financial Statements. In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which makes a number of changes meant to simplify and improve accounting for share-based payments. The new guidance includes amendments to share based accounting for income taxes, the related classification in the statement of cash flows and share award forfeiture accounting. ASU 2016-09 is effective for public companies for annual reporting periods beginning after December 15, 2016, and interim periods within those reporting periods. Early adoption is permitted. We have elected to early adopt ASU 2016-09 in the first quarter of fiscal 2017. The primary impact of our adoption was the recognition of excess tax benefits related to equity compensation in our provision for income taxes rather than paid-in capital, which is a change required to be applied on a prospective basis in accordance with the new guidance. Accordingly, we recorded a discrete income tax benefit of $10.4 million for excess tax benefits generated during the three months ended August 31, 2016 and $0.9 million during the three months ended November 30, 2016 in the consolidated statements of income. The corresponding cash flows are reflected in cash provided by operating activities instead of financing activities, as was previously required. Additionally, under ASU 2016-09, we have elected to continue to estimate equity award forfeitures expected to occur to determine the amount of compensation cost to be recognized in each period. Additional amendments to the accounting for income taxes and minimum statutory withholding tax requirements had no impact on our results of operations. The presentation requirements for cash flows related to employee taxes paid for withheld shares also had no impact to any of the periods presented in our consolidated statements of cash flows since such cash flows have historically been presented as a financing activity. In August 2016, the FASB issued ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments,” which makes a number of changes meant to add or clarify guidance on the classification of certain cash receipts and payments in the statement of cash flows. The new guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted. Upon adoption, entities must apply the guidance retrospectively to all periods presented. We are currently evaluating the impact this guidance will have on our Consolidated Financial Statements. |
Goodwill and Other Intangible25
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Nov. 30, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill, by Reportable Segment | The changes in the carrying amount of goodwill, by reportable segment, for the six months ended November 30, 2016 follows: Industrial Specialty Consumer (In thousands) Segment Segment Segment Total Balance as of June 1, 2016 $ 475,355 $ 171,768 $ 572,507 $ 1,219,630 Acquisitions 31,434 31,434 Impairment (140,686 ) (140,686 ) Translation adjustments (12,631 ) (1,766 ) (10,218 ) (24,615 ) Balance as of November 30, 2016 $ 494,158 $ 170,002 $ 421,603 $ 1,085,763 |
Other Intangible Assets Major Classes | Other intangible assets as of November 30, 2016 consist of the following major classes: November 30, 2016 Gross Carrying Accumulated Impairment Net Carrying (In thousands) Amount Amortization Charge Amount Amortized intangible assets Formulae $ 216,760 $ (123,977 ) $ (15,364 ) $ 77,419 Customer-related intangibles 322,229 (108,072 ) (30,176 ) 183,981 Trademarks/names 27,808 (13,919 ) 13,889 Other 37,154 (19,723 ) (198 ) 17,233 Total Amortized Intangibles 603,951 (265,691 ) (45,738 ) 292,522 Indefinite-lived intangible assets Trademarks/names 230,721 (2,045 ) 228,676 Total Other Intangible Assets $ 834,672 $ (265,691 ) $ (47,783 ) $ 521,198 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 6 Months Ended |
Nov. 30, 2016 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Marketable Securities by Asset Type | The following tables summarize marketable securities held at November 30, 2016 and May 31, 2016 by asset type: Available-For-Sale Securities (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Net Carrying Amount) November 30, 2016 Equity securities: Stocks – foreign $ 5,699 $ 229 $ (323 ) $ 5,605 Stocks – domestic 31,050 2,086 (1,325 ) 31,811 Mutual funds – foreign 34,419 920 (3,204 ) 32,135 Mutual funds – domestic 62,572 1,393 (2,938 ) 61,027 Total equity securities 133,740 4,628 (7,790 ) 130,578 Fixed maturity: U.S. treasury and other government 22,235 76 (295 ) 22,016 Corporate bonds 774 104 (8 ) 870 Total fixed maturity securities 23,009 180 (303 ) 22,886 Total $ 156,749 $ 4,808 $ (8,093 ) $ 153,464 Available-For-Sale Securities (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Net Carrying Amount) May 31, 2016 Equity securities: Stocks – foreign $ 5,051 $ 439 $ (247 ) $ 5,243 Stocks – domestic 27,717 3,831 (911 ) 30,637 Mutual funds – foreign 35,903 802 (4,357 ) 32,348 Mutual funds – domestic 60,354 99 (4,587 ) 55,866 Total equity securities 129,025 5,171 (10,102 ) 124,094 Fixed maturity: U.S. treasury and other government 21,704 214 (80 ) 21,838 Corporate bonds 887 137 - 1,024 Total fixed maturity securities 22,591 351 (80 ) 22,862 Total $ 151,616 $ 5,522 $ (10,182 ) $ 146,956 |
Summary of Securities in Unrealized Loss Position and Included in Accumulated Other Comprehensive Income (Loss), Aggregated by Length of Time Investments | Summarized below are the securities we held at November 30, 2016 and May 31, 2016 that were in an unrealized loss position and that were included in accumulated other comprehensive income (loss), aggregated by the length of time the investments had been in that position: November 30, 2016 May 31, 2016 (In thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Total investments with unrealized losses $ 99,283 $ (8,093 ) $ 89,360 $ (10,182 ) Unrealized losses with a loss position for less than 12 months 35,039 (1,925 ) 41,762 (4,856 ) Unrealized losses with a loss position for more than 12 months 64,244 (6,168 ) 47,598 (5,326 ) |
Net Carrying Values of Debt Securities by Contractual Maturity | The net carrying values of debt securities at November 30, 2016, 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 Due: Less than one year $ 6,157 $ 6,127 One year through five years 12,606 12,486 Six years through ten years 3,140 3,079 After ten years 1,106 1,194 $ 23,009 $ 22,886 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Nov. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis and Categorized using Fair Value Hierarchy | The following tables present our assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy. (In thousands) Quoted in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value at November 30, 2016 U.S. Treasury and other government $ - $ 22,016 $ - $ 22,016 Corporate bonds 870 870 Stocks - foreign 5,605 5,605 Stocks - domestic 31,811 31,811 Cash and cash equivalents 1,328 1,328 Mutual funds - foreign 32,135 32,135 Mutual funds - domestic 61,027 61,027 Foreign currency forward contract (100 ) (100 ) Contingent consideration (7,640 ) (7,640 ) Total $ 38,744 $ 115,948 $ (7,640 ) $ 147,052 (In thousands) Quoted in Active Markets for Identical (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value at May 31, 2016 U.S. Treasury and other government $ - $ 21,838 $ - $ 21,838 Corporate bonds 1,024 1,024 Stocks - foreign 5,243 5,243 Stocks - domestic 30,637 30,637 Mutual funds - foreign 32,348 32,348 Mutual funds - domestic 55,866 55,866 Foreign currency forward contract (159 ) (159 ) Contingent consideration (11,771 ) (11,771 ) Total $ 35,880 $ 110,917 $ (11,771 ) $ 135,026 |
Fair Value and Carrying Value of Financial Instruments and Long-Term Debt | Based on the analysis performed, the fair value and the carrying value of our financial instruments and long-term debt as of November 30, 2016 and May 31, 2016 are as follows: At November 30, 2016 (In thousands) Carrying Value Fair Value Cash and cash equivalents $ 205,907 $ 205,907 Marketable equity securities 130,578 130,578 Marketable debt securities 22,886 22,886 Long-term debt, including current portion 1,638,847 1,904,270 At May 31, 2016 (In thousands) Carrying Value Fair Value Cash and cash equivalents $ 265,152 $ 265,152 Marketable equity securities 124,094 124,094 Marketable debt securities 22,862 22,862 Long-term debt, including current portion 1,639,973 1,925,079 |
Investment (Income), Net (Table
Investment (Income), Net (Tables) | 6 Months Ended |
Nov. 30, 2016 | |
Other Income And Expenses [Abstract] | |
Investment (Income), Net | Investment (income), net, consists of the following components: Three Months Ended Six Months Ended November 30, November 30, (In thousands) 2016 2015 2016 2015 Interest (income) $ (1,093 ) $ (1,218 ) $ (2,233 ) $ (2,582 ) (Gain) on sale of marketable securities (1,114 ) (2,042 ) (3,698 ) (4,418 ) Other-than-temporary impairment on securities 217 2,472 403 2,472 Dividend (income) (426 ) (312 ) (726 ) (640 ) Investment (income), net $ (2,416 ) $ (1,100 ) $ (6,254 ) $ (5,168 ) |
Other Expense (Income), Net (Ta
Other Expense (Income), Net (Tables) | 6 Months Ended |
Nov. 30, 2016 | |
Other Income And Expenses [Abstract] | |
Other Expense (Income), Net | Other expense (income), net, consists of the following components: Three Months Ended Six Months Ended November 30, November 30, (In thousands) 2016 2015 2016 2015 Royalty expense, net $ 581 $ 174 $ 1,336 $ 163 (Income) related to unconsolidated equity affiliates (324 ) (473 ) (537 ) (951 ) Other expense (income), net $ 257 $ (299 ) $ 799 $ (788 ) |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Nov. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Major Classes of Inventories, Net of Reserves | Inventories, net of reserves, were composed of the following major classes: November 30, 2016 May 31, 2016 (In thousands) Raw material and supplies $ 237,231 $ 227,900 Finished goods 524,936 457,918 Total Inventory, Net of Reserves $ 762,167 $ 685,818 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 6 Months Ended |
Nov. 30, 2016 | |
Earnings Per Share [Abstract] | |
Reconciliation of Numerator and Denominator of Basic and Diluted Earnings Per Share | The following table sets forth the reconciliation of the numerator and denominator of basic and diluted earnings per share, as calculated using the treasury stock method for the three months ended November 30, 2016 and the two-class method for the six months ended November 30, 2016. For the three and six months ended November 30, 2015, the two-class method was used to compute basic earnings per share, while the treasury stock method was utilized for the purpose of computing diluted earnings per share, as that method resulted in the most-dilutive earnings per share. Three Months Ended Six Months Ended November 30, November 30, (In thousands, except per share amounts) 2016 2015 2016 2015 Numerator for earnings per share: Net income (loss) attributable to RPM International Inc. stockholders $ (70,926 ) $ 83,433 $ 41,843 $ 183,248 Less: Allocation of earnings and dividends to participating securities (1,571 ) (621 ) (3,068 ) Net income (loss) available to common shareholders – basic (70,926 ) 81,862 41,222 180,180 Add: Undistributed earnings reallocated to unvested shareholders Reverse: Allocation of earnings and dividends to participating securities 1,571 3,068 Add: Income effect of contingently issuable shares 1,354 2,706 Net income (loss) available to common shareholders – diluted $ (70,926 ) $ 84,787 $ 41,222 $ 185,954 Denominator for basic and diluted earnings per share: Basic weighted average common shares 130,695 129,398 130,647 129,723 Average diluted options 3,453 3,466 Additional shares issuable assuming conversion of convertible securities (1) 3,883 3,883 Total shares for diluted earnings per share (2) 130,695 136,734 130,647 137,072 Earnings (Loss) Per Share of Common Stock Attributable to RPM International Inc. Stockholders: Basic Earnings (Loss) Per Share of Common Stock $ (0.54 ) $ 0.63 $ 0.32 $ 1.39 Diluted Earnings (Loss) Per Share of Common Stock $ (0.54 ) $ 0.62 $ 0.32 $ 1.36 (1) 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) Restricted shares totaling 1,169,393 and 919,918 for the three and six months ended November 30, 2015, respectively, were excluded from the calculation of diluted earnings per share because the grant price of the restricted shares exceeded the average market price of the shares during the period and their effect, accordingly, would have been anti-dilutive. There were no restricted shares identified as being anti-dilutive for the three and six months ended November 30, 2016. In addition, stock appreciation rights (SARs) totaling 1,400,000 for the three and six months ended November 30, 2015 were excluded from the calculation of diluted earnings per share as their effect would have been anti-dilutive. |
Pension Plans (Tables)
Pension Plans (Tables) | 6 Months Ended |
Nov. 30, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement-Related Benefit Plans' Impact on Income Before Income Taxes | The following tables provide the retirement-related benefit plans’ impact on income before income taxes for the three and six month periods ended November 30, 2016 and 2015: U.S. Plans Non-U.S. Plans Three Months Ended Three Months Ended November 30, November 30, November 30, November 30, Pension Benefits 2016 2015 2016 2015 (In thousands) Service cost $ 9,401 $ 8,202 $ 1,127 $ 1,067 Interest cost 4,331 4,499 1,224 1,323 Expected return on plan assets (6,252 ) (6,437 ) (1,886 ) (1,983 ) Amortization of: Prior service cost 54 58 Net actuarial losses recognized 5,540 4,190 573 457 Settlement 91 Net Periodic Benefit Cost $ 13,074 $ 10,512 $ 1,038 $ 955 U.S. Plans Non-U.S. Plans Three Months Ended Three Months Ended November 30, November 30, November 30, November 30, Postretirement Benefits 2016 2015 2016 2015 (In thousands) Service cost $ - $ - $ 284 $ 281 Interest cost 57 59 222 221 Amortization of: Prior service (credit) (58 ) (62 ) Net actuarial (gains) losses recognized 60 61 Net Periodic Benefit Cost $ (1 ) $ (3 ) $ 566 $ 563 U.S. Plans Non-U.S. Plans Six Months Ended Six Months Ended November 30, November 30, November 30, November 30, Pension Benefits 2016 2015 2016 2015 (In thousands) Service cost $ 18,802 $ 16,404 $ 2,254 $ 2,134 Interest cost 8,662 8,998 2,448 2,646 Expected return on plan assets (12,504 ) (12,874 ) (3,772 ) (3,966 ) Amortization of: Prior service cost 108 116 - - Net actuarial losses recognized 11,080 8,380 1,146 914 Settlement - - - 91 Net Periodic Benefit Cost $ 26,148 $ 21,024 $ 2,076 $ 1,819 U.S. Plans Non-U.S. Plans Six Months Ended Six Months Ended November 30, November 30, November 30, November 30, Postretirement Benefits 2016 2015 2016 2015 (In thousands) Service cost $ - $ - $ 568 $ 562 Interest cost 114 118 444 442 Amortization of: Prior service (credit) (116 ) (124 ) - - Net actuarial (gains) losses recognized - - 120 122 Net Periodic Benefit Cost $ (2 ) $ (6 ) $ 1,132 $ 1,126 |
Contingencies and Other Accru33
Contingencies and Other Accrued Losses (Tables) | 6 Months Ended |
Nov. 30, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Changes in Accrued Warranty Balances | The following table includes the changes in our accrued warranty balances: Three Months Ended Six Months Ended November 30, November 30, 2016 2015 2016 2015 (In thousands) Beginning Balance $ 15,233 $ 10,112 $ 13,314 $ 11,663 Deductions (1) (5,942 ) (4,890 ) (8,432 ) (9,550 ) Provision charged to expense 6,663 4,218 11,072 7,327 Ending Balance $ 15,954 $ 9,440 $ 15,954 $ 9,440 (1) Primarily claims paid during the year. |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Nov. 30, 2016 | |
Equity [Abstract] | |
Components of Total Equity and Comprehensive Income | The following tables illustrate the components of total equity and comprehensive income for the three months ended November 30, 2016 and 2015: (In thousands) Total RPM International Inc. Equity Noncontrolling Interest Total Equity Total equity at August 31, 2016 $ 1,435,438 $ 2,126 $ 1,437,564 Net income (loss) (70,926 ) 670 (70,256 ) Other Comprehensive Income: Foreign currency translation adjustments (51,984 ) (51,984 ) Pension and other postretirement benefit liability adjustments, net of tax 3,590 3,590 Unrealized (loss) on securities, net of tax (895 ) (895 ) Total Other Comprehensive (Loss), net of tax (49,289 ) - (49,289 ) Comprehensive Income (Loss) (120,215 ) 670 (119,545 ) Dividends paid (40,075 ) (40,075 ) Other noncontrolling interest activity (894 ) (894 ) Shares repurchased and returned for taxes (2,558 ) (2,558 ) Stock based compensation expense 8,842 8,842 Total Equity at November 30, 2016 $ 1,281,432 $ 1,902 $ 1,283,334 (In thousands) Total RPM International Inc. Equity Noncontrolling Interest Total Equity Total equity at August 31, 2015 $ 1,294,402 $ 2,620 $ 1,297,022 Net income 83,433 716 84,149 Other Comprehensive Income: Foreign currency translation adjustments (53,814 ) (53,814 ) Pension and other postretirement benefit liability adjustments, net of tax 3,640 3,640 Unrealized gain on securities, net of tax 369 369 Total Other Comprehensive (Loss), net of tax (49,805 ) - (49,805 ) Comprehensive Income 33,628 716 34,344 Dividends paid (36,642 ) (36,642 ) Other noncontrolling interest activity (1,373 ) (1,373 ) Shares repurchased and returned for taxes (9,944 ) (9,944 ) Stock based compensation expense 8,817 8,817 Total Equity at November 30, 2015 $ 1,290,261 $ 1,963 $ 1,292,224 The following tables illustrate the components of total equity and comprehensive income for the six months ended November 30, 2016 and 2015: (In thousands) Total International Inc. Equity Noncontrolling Interest Total Equity Total equity at May 31, 2016 $ 1,372,335 $ 2,413 $ 1,374,748 Net income 41,843 1,295 43,138 Other Comprehensive Income: Foreign currency translation adjustments (63,495 ) (63,495 ) Pension and other postretirement benefit liability adjustments, net of tax 9,294 9,294 Unrealized gain on securities, net of tax 709 709 Total Other Comprehensive (Loss), net of tax (53,492 ) - (53,492 ) Comprehensive Income (Loss) (11,649 ) 1,295 (10,354 ) Dividends paid (76,604 ) (76,604 ) Other noncontrolling interest activity (1,806 ) (1,806 ) Shares repurchased and returned for taxes (19,663 ) (19,663 ) Stock based compensation expense 17,013 17,013 Total Equity at November 30, 2016 $ 1,281,432 $ 1,902 $ 1,283,334 (In thousands) Total International Inc. Equity Noncontrolling Interest Total Equity Total equity at May 31, 2015 $ 1,291,392 $ 2,073 $ 1,293,465 Net income 183,248 1,263 184,511 Other Comprehensive Income: Foreign currency translation adjustments (84,420 ) (84,420 ) Pension and other postretirement benefit liability adjustments, net of tax 7,800 7,800 Unrealized (loss) on securities, net of tax (6,715 ) (6,715 ) Total Other Comprehensive (Loss), net of tax (83,335 ) - (83,335 ) Comprehensive Income 99,913 1,263 101,176 Dividends paid (71,276 ) (71,276 ) Other noncontrolling interest activity (1,373 ) (1,373 ) Shares repurchased and returned for taxes (45,292 ) (45,292 ) Stock based compensation expense 15,524 15,524 Total Equity at November 30, 2015 $ 1,290,261 $ 1,963 $ 1,292,224 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Nov. 30, 2016 | |
Segment Reporting [Abstract] | |
Results of Reportable Segments | The following tables reflect the results of our reportable segments consistent with our management philosophy, and represent the information we utilize, in conjunction with various strategic, operational and other financial performance criteria, in evaluating the performance of our portfolio of businesses. Information for all periods presented has been recast to reflect the current year change in reportable segments. Three Months Ended Six Months Ended November 30, November 30, November 30, November 30, 2016 2015 2016 2015 (In thousands) Net Sales Industrial Segment $ 633,429 $ 623,305 $ 1,309,269 $ 1,300,413 Specialty Segment 183,567 173,625 359,903 343,486 Consumer Segment 373,774 359,054 773,661 754,611 Consolidated $ 1,190,770 $ 1,155,984 $ 2,442,833 $ 2,398,510 Income (Loss) Before Income Taxes Industrial Segment $ 50,291 $ 64,008 $ 139,557 $ 148,476 Specialty Segment 31,160 28,278 61,664 54,767 Consumer Segment (140,575 ) 65,429 (70,487 ) 131,552 Corporate/Other (47,733 ) (37,454 ) (89,116 ) (72,333 ) Consolidated $ (106,857 ) $ 120,261 $ 41,618 $ 262,462 November 30, 2016 May 31, 2016 Identifiable Assets Industrial Segment $ 2,212,754 $ 2,206,062 Specialty Segment 736,832 754,757 Consumer Segment 1,568,657 1,734,600 Corporate/Other 29,218 69,550 Consolidated $ 4,547,461 $ 4,764,969 |
New Accounting Pronouncements -
New Accounting Pronouncements - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Nov. 30, 2016 | Aug. 31, 2016 | May 31, 2016 | |
Accounting Policies [Abstract] | |||
Deferred debt cost, Current | $ 3 | ||
Deferred debt costs, long term net | $ 8.2 | ||
Discrete tax benefit for excess tax benefits related to equity compensation | $ 0.9 | $ 10.4 |
Change in Carrying Amount of go
Change in Carrying Amount of goodwill By Reportable Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Nov. 30, 2016 | Nov. 30, 2016 | |
Goodwill [Line Items] | ||
Goodwill beginning balance | $ 1,219,630 | |
Acquisitions | 31,434 | |
Impairment | (140,686) | |
Translation adjustments | (24,615) | |
Goodwill ending balance | $ 1,085,763 | 1,085,763 |
Industrial Segment | ||
Goodwill [Line Items] | ||
Goodwill beginning balance | 475,355 | |
Acquisitions | 31,434 | |
Translation adjustments | (12,631) | |
Goodwill ending balance | 494,158 | 494,158 |
Specialty Segment | ||
Goodwill [Line Items] | ||
Goodwill beginning balance | 171,768 | |
Translation adjustments | (1,766) | |
Goodwill ending balance | 170,002 | 170,002 |
Consumer Segment | ||
Goodwill [Line Items] | ||
Goodwill beginning balance | 572,507 | |
Impairment | (140,686) | (140,686) |
Translation adjustments | (10,218) | |
Goodwill ending balance | $ 421,603 | $ 421,603 |
Goodwill and Other Intangible38
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |
Nov. 30, 2016 | Nov. 30, 2016 | May 31, 2016 | |
Goodwill And Intangible Assets [Line Items] | |||
Accumulated impairment losses | $ 155,600,000 | $ 155,600,000 | $ 14,900,000 |
Preliminary goodwill impairment losses | 140,686,000 | ||
Other intangible asset accumulated impairment losses, gross | 600,000 | ||
Intangible asset impairment loss | 47,783,000 | ||
Goodwill | 1,085,763,000 | 1,085,763,000 | $ 1,219,630,000 |
Trademarks and Trade Names | |||
Goodwill And Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets, preliminary impairment loss | 2,045,000 | ||
Kirker Reporting Unit | |||
Goodwill And Intangible Assets [Line Items] | |||
Intangible asset impairment loss | $ 45,700,000 | $ 45,700,000 | |
Fair value in excess of carrying value | 8.00% | ||
Percentage of loss on sales | 15.00% | ||
Assumed long-term earnings growth rate | 3.00% | ||
Weighted-average cost of capital | 8.00% | ||
Goodwill | $ 0 | $ 0 | |
Kirker Reporting Unit | Trademarks and Trade Names | |||
Goodwill And Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets, preliminary impairment loss | 2,000,000 | 2,000,000 | |
Recalculated fair value of identifiable indefinite-lived intangible assets | 5,800,000 | 5,800,000 | |
Consumer Segment | |||
Goodwill And Intangible Assets [Line Items] | |||
Preliminary goodwill impairment losses | 140,686,000 | 140,686,000 | |
Intangible asset impairment loss | 47,800,000 | 47,800,000 | |
Goodwill | $ 421,603,000 | $ 421,603,000 | $ 572,507,000 |
Other Intangible Assets Major C
Other Intangible Assets Major Classes (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Nov. 30, 2016 | May 31, 2016 | |
Intangible Assets by Major Class [Line Items] | ||
Amortized intangible assets, gross carrying amount | $ 603,951 | |
Amortized intangible assets, accumulated amortization | (265,691) | |
Amortized intangible assets, impairment charge | (45,738) | |
Amortized intangible assets, net carrying amount | 292,522 | |
Total Other Intangible Assets, gross carrying amount | 834,672 | |
Total Other Intangible Assets, impairment charge | (47,783) | |
Total Other Intangible Assets, net carrying amount | 521,198 | $ 575,401 |
Trademarks and Trade Names | ||
Intangible Assets by Major Class [Line Items] | ||
Indefinite-lived intangible assets, acquisitions | 230,721 | |
Indefinite-lived intangible assets, impairment charge | (2,045) | |
Indefinite-lived intangible assets, net carrying amount | 228,676 | |
Formulae | ||
Intangible Assets by Major Class [Line Items] | ||
Amortized intangible assets, gross carrying amount | 216,760 | |
Amortized intangible assets, accumulated amortization | (123,977) | |
Amortized intangible assets, impairment charge | (15,364) | |
Amortized intangible assets, net carrying amount | 77,419 | |
Customer-Related Intangible Assets | ||
Intangible Assets by Major Class [Line Items] | ||
Amortized intangible assets, gross carrying amount | 322,229 | |
Amortized intangible assets, accumulated amortization | (108,072) | |
Amortized intangible assets, impairment charge | (30,176) | |
Amortized intangible assets, net carrying amount | 183,981 | |
Trademarks and Trade Names | ||
Intangible Assets by Major Class [Line Items] | ||
Amortized intangible assets, gross carrying amount | 27,808 | |
Amortized intangible assets, accumulated amortization | (13,919) | |
Amortized intangible assets, net carrying amount | 13,889 | |
Other Intangible Assets | ||
Intangible Assets by Major Class [Line Items] | ||
Amortized intangible assets, gross carrying amount | 37,154 | |
Amortized intangible assets, accumulated amortization | (19,723) | |
Amortized intangible assets, impairment charge | (198) | |
Amortized intangible assets, net carrying amount | $ 17,233 |
Summary of Marketable Securitie
Summary of Marketable Securities by Asset Type (Detail) - USD ($) $ in Thousands | Nov. 30, 2016 | May 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-Sale Securities, Amortized Cost | $ 156,749 | $ 151,616 |
Available-for-Sale Securities, Gross Unrealized Gains | 4,808 | 5,522 |
Available-for-Sale Securities, Gross Unrealized Losses | (8,093) | (10,182) |
Available-for-Sale Securities, Fair Value (Net Carrying Amount) | 153,464 | 146,956 |
Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-Sale Securities, Amortized Cost | 133,740 | 129,025 |
Available-for-Sale Securities, Gross Unrealized Gains | 4,628 | 5,171 |
Available-for-Sale Securities, Gross Unrealized Losses | (7,790) | (10,102) |
Available-for-Sale Securities, Fair Value (Net Carrying Amount) | 130,578 | 124,094 |
Equity securities | Stocks | Foreign | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-Sale Securities, Amortized Cost | 5,699 | 5,051 |
Available-for-Sale Securities, Gross Unrealized Gains | 229 | 439 |
Available-for-Sale Securities, Gross Unrealized Losses | (323) | (247) |
Available-for-Sale Securities, Fair Value (Net Carrying Amount) | 5,605 | 5,243 |
Equity securities | Stocks | Domestic | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-Sale Securities, Amortized Cost | 31,050 | 27,717 |
Available-for-Sale Securities, Gross Unrealized Gains | 2,086 | 3,831 |
Available-for-Sale Securities, Gross Unrealized Losses | (1,325) | (911) |
Available-for-Sale Securities, Fair Value (Net Carrying Amount) | 31,811 | 30,637 |
Equity securities | Mutual funds | Foreign | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-Sale Securities, Amortized Cost | 34,419 | 35,903 |
Available-for-Sale Securities, Gross Unrealized Gains | 920 | 802 |
Available-for-Sale Securities, Gross Unrealized Losses | (3,204) | (4,357) |
Available-for-Sale Securities, Fair Value (Net Carrying Amount) | 32,135 | 32,348 |
Equity securities | Mutual funds | Domestic | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-Sale Securities, Amortized Cost | 62,572 | 60,354 |
Available-for-Sale Securities, Gross Unrealized Gains | 1,393 | 99 |
Available-for-Sale Securities, Gross Unrealized Losses | (2,938) | (4,587) |
Available-for-Sale Securities, Fair Value (Net Carrying Amount) | 61,027 | 55,866 |
Fixed maturity | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-Sale Securities, Amortized Cost | 23,009 | 22,591 |
Available-for-Sale Securities, Gross Unrealized Gains | 180 | 351 |
Available-for-Sale Securities, Gross Unrealized Losses | (303) | (80) |
Available-for-Sale Securities, Fair Value (Net Carrying Amount) | 22,886 | 22,862 |
Fixed maturity | U.S. Treasury and other government | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-Sale Securities, Amortized Cost | 22,235 | 21,704 |
Available-for-Sale Securities, Gross Unrealized Gains | 76 | 214 |
Available-for-Sale Securities, Gross Unrealized Losses | (295) | (80) |
Available-for-Sale Securities, Fair Value (Net Carrying Amount) | 22,016 | 21,838 |
Corporate bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-Sale Securities, Amortized Cost | 774 | 887 |
Available-for-Sale Securities, Gross Unrealized Gains | 104 | 137 |
Available-for-Sale Securities, Gross Unrealized Losses | (8) | |
Available-for-Sale Securities, Fair Value (Net Carrying Amount) | $ 870 | $ 1,024 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Nov. 30, 2016 | Nov. 30, 2015 | Nov. 30, 2016 | Nov. 30, 2015 | May 31, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | |||||
Available-for-sale securities, current | $ 78.9 | $ 78.9 | $ 74.2 | ||
Available-for-sale securities, long-term | 74.6 | 74.6 | $ 72.8 | ||
Gross gains realized on sales of investments | 1.9 | $ 2.1 | 4.7 | $ 4.6 | |
Gross realized losses on sales of investments | 0.8 | 0.1 | 1 | 0.2 | |
Losses recognized for securities deemed to have other-than-temporary impairments | $ 0.2 | $ 2.5 | $ 0.4 | $ 2.5 | |
Maximum | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Investments with unrealized loss, percentage of fair values less than original cost | 15.00% | 15.00% |
Summary of Securities in Unreal
Summary of Securities in Unrealized Loss Position and Included in Accumulated Other Comprehensive Income (Loss), Aggregated by Length of Time Investments (Detail) - USD ($) $ in Thousands | Nov. 30, 2016 | May 31, 2016 |
Investments Debt And Equity Securities [Abstract] | ||
Total investments with unrealized losses, fair value | $ 99,283 | $ 89,360 |
Unrealized losses with a loss position for less than 12 months, fair value | 35,039 | 41,762 |
Unrealized losses with a loss position for more than 12 months, fair value | 64,244 | 47,598 |
Total investments with unrealized losses, gross unrealized losses | (8,093) | (10,182) |
Unrealized losses with a loss position for less than 12 months, gross unrealized losses | (1,925) | (4,856) |
Unrealized losses with a loss position for more than 12 months, gross unrealized losses | $ (6,168) | $ (5,326) |
Net Carrying Values of Debt Sec
Net Carrying Values of Debt Securities by Contractual Maturity (Detail) - USD ($) $ in Thousands | Nov. 30, 2016 | May 31, 2016 |
Available-for-Sale Securities, amortized cost | ||
Less than one year, amortized cost | $ 6,157 | |
One year through five years, amortized cost | 12,606 | |
Six years through ten years, amortized cost | 3,140 | |
After ten years, amortized cost | 1,106 | |
Available-for-sale Debt Securities, Amortized Cost Basis, Total | 23,009 | |
Available-for-Sale Securities, fair value | ||
Less than one year, fair value | 6,127 | |
One year through five years, fair value | 12,486 | |
Six years through ten years, fair value | 3,079 | |
After ten years, fair value | 1,194 | |
Marketable debt securities, carrying value | $ 22,886 | $ 22,862 |
Assets and Liabilities Measured
Assets and Liabilities Measured at Fair Value on Recurring Basis and Categorized using Fair Value Hierarchy (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Nov. 30, 2016 | May 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets (liabilities) at fair value | $ 147,052 | $ 135,026 |
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 | 22,016 | 21,838 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 870 | 1,024 |
Cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 1,328 | |
Foreign | Stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 5,605 | 5,243 |
Domestic | Stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 31,811 | 30,637 |
Foreign currency forward contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency forward contract, Liabilities | (100) | (159) |
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 | 38,744 | 35,880 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 1,328 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign | Stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 5,605 | 5,243 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Domestic | Stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 31,811 | 30,637 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets (liabilities) at fair value | 115,948 | 110,917 |
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 | 22,016 | 21,838 |
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 | 870 | 1,024 |
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, Liabilities | (100) | (159) |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets (liabilities) at fair value | (7,640) | (11,771) |
Mutual funds | Foreign | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 32,135 | 32,348 |
Mutual funds | Domestic | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 61,027 | 55,866 |
Mutual funds | Significant Other Observable Inputs (Level 2) | Foreign | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 32,135 | 32,348 |
Mutual funds | Significant Other Observable Inputs (Level 2) | Domestic | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 61,027 | 55,866 |
Contingent consideration liability | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | (7,640) | (11,771) |
Contingent consideration liability | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | $ (7,640) | $ (11,771) |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Nov. 30, 2016 | May 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Settlements of contingent consideration obligations | $ 4,100 | |
Fair Value, Measurements, Recurring | Foreign currency forward contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts, fair value of liability | $ 100 | $ 159 |
Fair Value and Carrying Value o
Fair Value and Carrying Value of Financial Instruments and Long-Term Debt (Detail) - USD ($) $ in Thousands | Nov. 30, 2016 | May 31, 2016 | Nov. 30, 2015 | May 31, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents, carrying value | $ 205,907 | $ 265,152 | $ 190,609 | $ 174,711 |
Marketable equity securities, carrying value | 130,578 | 124,094 | ||
Marketable debt securities, carrying value | 22,886 | 22,862 | ||
Long-term debt, including current portion, carrying value | 1,638,847 | 1,639,973 | ||
Cash and cash equivalents, fair value | 205,907 | 265,152 | ||
Marketable securities, fair value | 153,464 | 146,956 | ||
Long-term debt, including current portion, fair value | 1,904,270 | 1,925,079 | ||
Equity securities | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Marketable securities, fair value | 130,578 | 124,094 | ||
Fixed maturity | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Marketable securities, fair value | $ 22,886 | $ 22,862 |
Investment (Income), Net (Detai
Investment (Income), Net (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2016 | Nov. 30, 2015 | Nov. 30, 2016 | Nov. 30, 2015 | |
Other Income And Expenses [Abstract] | ||||
Interest (income) | $ (1,093) | $ (1,218) | $ (2,233) | $ (2,582) |
(Gain) on sale of marketable securities | (1,114) | (2,042) | (3,698) | (4,418) |
Other-than-temporary impairment on securities | 217 | 2,472 | 403 | 2,472 |
Dividend (income) | (426) | (312) | (726) | (640) |
Investment (income), net | $ (2,416) | $ (1,100) | $ (6,254) | $ (5,168) |
Other Expense (Income), Net (De
Other Expense (Income), Net (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2016 | Nov. 30, 2015 | Nov. 30, 2016 | Nov. 30, 2015 | |
Other Income And Expenses [Abstract] | ||||
Royalty expense, net | $ 581 | $ 174 | $ 1,336 | $ 163 |
(Income) related to unconsolidated equity affiliates | (324) | (473) | (537) | (951) |
Other expense (income), net | $ 257 | $ (299) | $ 799 | $ (788) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Nov. 30, 2016 | Aug. 31, 2016 | Nov. 30, 2015 | Nov. 30, 2016 | Nov. 30, 2015 | May 31, 2016 | |
Income Tax Disclosure [Abstract] | ||||||
Effective income tax expense (benefit) rate | (34.30%) | 30.00% | (3.70%) | 29.70% | ||
Federal statutory rate | 35.00% | 35.00% | 35.00% | 35.00% | ||
Discrete tax benefit for excess tax benefits related to equity compensation | $ 900,000 | $ 10,400,000 | ||||
Undistributed foreign earnings | 368,800,000 | $ 368,800,000 | $ 377,300,000 | |||
Deferred income tax liability | 95,300,000 | 95,300,000 | $ 98,500,000 | |||
Provision for deferred income taxes | $ 0 | $ 0 |
Major Classes of Inventories, N
Major Classes of Inventories, Net of Reserves (Detail) - USD ($) $ in Thousands | Nov. 30, 2016 | May 31, 2016 |
Inventory Disclosure [Abstract] | ||
Raw material and supplies | $ 237,231 | $ 227,900 |
Finished goods | 524,936 | 457,918 |
Total Inventory, Net of Reserves | $ 762,167 | $ 685,818 |
Stock Repurchase Program - Addi
Stock Repurchase Program - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2016 | Nov. 30, 2015 | Nov. 30, 2016 | Nov. 30, 2015 | |
Stock Repurchase Programs [Line Items] | ||||
Authorization of stock repurchase program | Jan. 8, 2008 | |||
Shares repurchased | 0 | 100,000 | 0 | 400,000 |
Shares repurchased, value | $ 4.4 | $ 17.2 | ||
Minimum | ||||
Stock Repurchase Programs [Line Items] | ||||
Shares authorized to be repurchased, per year | 1,000,000 | 1,000,000 | ||
Maximum | ||||
Stock Repurchase Programs [Line Items] | ||||
Shares authorized to be repurchased, per year | 2,000,000 | 2,000,000 |
Reconciliation of Numerator and
Reconciliation of Numerator and Denominator of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Nov. 30, 2016 | Nov. 30, 2015 | Nov. 30, 2016 | Nov. 30, 2015 | ||
Numerator for earnings per share: | |||||
Net income (loss) attributable to RPM International Inc. stockholders | $ (70,926) | $ 83,433 | $ 41,843 | $ 183,248 | |
Less: Allocation of earnings and dividends to participating securities | (1,571) | (621) | (3,068) | ||
Net income (loss) available to common shareholders – basic | (70,926) | 81,862 | 41,222 | 180,180 | |
Reverse: Allocation of earnings and dividends to participating securities | 1,571 | 3,068 | |||
Add: Income effect of contingently issuable shares | 1,354 | 2,706 | |||
Net income (loss) available to common shareholders – diluted | $ (70,926) | $ 84,787 | $ 41,222 | $ 185,954 | |
Denominator for basic and diluted earnings per share: | |||||
Basic weighted average common shares | 130,695 | 129,398 | 130,647 | 129,723 | |
Average diluted options | 3,453 | 3,466 | |||
Additional shares issuable assuming conversion of convertible securities | [1] | 3,883 | 3,883 | ||
Total shares for diluted earnings per share | [2] | 130,695 | 136,734 | 130,647 | 137,072 |
Earnings (Loss) Per Share of Common Stock Attributable to RPM International Inc. Stockholders: | |||||
Basic Earnings (Loss) Per Share of Common Stock | $ (0.54) | $ 0.63 | $ 0.32 | $ 1.39 | |
Diluted Earnings (Loss) Per Share of Common Stock | $ (0.54) | $ 0.62 | $ 0.32 | $ 1.36 | |
[1] | 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] | Restricted shares totaling 1,169,393 and 919,918 for the three and six months ended November 30, 2015, respectively, were excluded from the calculation of diluted earnings per share because the grant price of the restricted shares exceeded the average market price of the shares during the period and their effect, accordingly, would have been anti-dilutive. There were no restricted shares identified as being anti-dilutive for the three and six months ended November 30, 2016. In addition, stock appreciation rights (SARs) totaling 1,400,000 for the three and six months ended November 30, 2015 were excluded from the calculation of diluted earnings per share as their effect would have been anti-dilutive. |
Reconciliation of Numerator a53
Reconciliation of Numerator and Denominator of Basic and Diluted Earnings Per Share (Parenthetical) (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2016 | Nov. 30, 2015 | Nov. 30, 2016 | Nov. 30, 2015 | |
Restricted shares | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Shares excluded from the calculation of diluted earnings per share | 0 | 1,169,393 | 0 | 919,918 |
Stock appreciation rights (SARs) | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Shares excluded from the calculation of diluted earnings per share | 1,400,000 | 1,400,000 |
Retirement-Related Benefit Plan
Retirement-Related Benefit Plans' Impact on Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2016 | Nov. 30, 2015 | Nov. 30, 2016 | Nov. 30, 2015 | |
Pension Benefits, U.S. Plans | ||||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 9,401 | $ 8,202 | $ 18,802 | $ 16,404 |
Interest cost | 4,331 | 4,499 | 8,662 | 8,998 |
Expected return on plan assets | (6,252) | (6,437) | (12,504) | (12,874) |
Amortization of Prior service cost (credit) | 54 | 58 | 108 | 116 |
Amortization of Net actuarial (gains) losses recognized | 5,540 | 4,190 | 11,080 | 8,380 |
Net Periodic Benefit Cost | 13,074 | 10,512 | 26,148 | 21,024 |
Pension Benefits, Non-U.S. Plans | ||||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 1,127 | 1,067 | 2,254 | 2,134 |
Interest cost | 1,224 | 1,323 | 2,448 | 2,646 |
Expected return on plan assets | (1,886) | (1,983) | (3,772) | (3,966) |
Amortization of Net actuarial (gains) losses recognized | 573 | 457 | 1,146 | 914 |
Settlement | 91 | 91 | ||
Net Periodic Benefit Cost | 1,038 | 955 | 2,076 | 1,819 |
Postretirement Benefits, U.S. Plans | ||||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Interest cost | 57 | 59 | 114 | 118 |
Amortization of Prior service cost (credit) | (58) | (62) | (116) | (124) |
Net Periodic Benefit Cost | (1) | (3) | (2) | (6) |
Postretirement Benefits, Non-U.S. Plans | ||||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 284 | 281 | 568 | 562 |
Interest cost | 222 | 221 | 444 | 442 |
Amortization of Net actuarial (gains) losses recognized | 60 | 61 | 120 | 122 |
Net Periodic Benefit Cost | $ 566 | $ 563 | $ 1,132 | $ 1,126 |
Pension Plans - Additional Info
Pension Plans - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Nov. 30, 2016 | May 31, 2016 | |
Pension Benefits, U.S. Plans | ||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Contribution to retirement plans in the next fiscal year | $ 54.1 | |
Contribution to retirement plans in the current remaining fiscal year | $ 54.1 | |
Pension Benefits, Non-U.S. Plans | ||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Contribution to retirement plans in the next fiscal year | $ 6 | |
Contribution to retirement plans in the current remaining fiscal year | $ 6 |
Changes in Accrued Warranty Bal
Changes in Accrued Warranty Balances (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Nov. 30, 2016 | Nov. 30, 2015 | Nov. 30, 2016 | Nov. 30, 2015 | ||
Commitments And Contingencies Disclosure [Abstract] | |||||
Beginning Balance | $ 15,233 | $ 10,112 | $ 13,314 | $ 11,663 | |
Deductions | [1] | (5,942) | (4,890) | (8,432) | (9,550) |
Provision charged to expense | 6,663 | 4,218 | 11,072 | 7,327 | |
Ending Balance | $ 15,954 | $ 9,440 | $ 15,954 | $ 9,440 | |
[1] | Primarily claims paid during the year. |
Contingencies and Other Accru57
Contingencies and Other Accrued Losses - Additional Information (Detail) $ in Millions | May 31, 2016USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Litigation settlement fund | $ 9.3 |
Components of Total Equity and
Components of Total Equity and Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2016 | Nov. 30, 2015 | Nov. 30, 2016 | Nov. 30, 2015 | |
Stockholders Equity Note [Line Items] | ||||
Total equity, beginning of period | $ 1,437,564 | $ 1,297,022 | $ 1,374,748 | $ 1,293,465 |
Net (Loss) Income | (70,256) | 84,149 | 43,138 | 184,511 |
Other Comprehensive Income: | ||||
Foreign currency translation adjustments | (51,984) | (53,814) | (63,495) | (84,420) |
Pension and other postretirement benefit liability adjustments, net of tax | 3,590 | 3,640 | 9,294 | 7,800 |
Unrealized (loss) gain on securities, net of tax | (895) | 369 | 709 | (6,715) |
Total Other Comprehensive (Loss), net of tax | (49,289) | (49,805) | (53,492) | (83,335) |
Comprehensive Income (Loss) | (119,545) | 34,344 | (10,354) | 101,176 |
Dividends paid | (40,075) | (36,642) | (76,604) | (71,276) |
Other noncontrolling interest activity | (894) | (1,373) | (1,806) | (1,373) |
Shares repurchased and returned for taxes | (2,558) | (9,944) | (19,663) | (45,292) |
Stock based compensation expense | 8,842 | 8,817 | 17,013 | 15,524 |
Total Equity, end of period | 1,283,334 | 1,292,224 | 1,283,334 | 1,292,224 |
Total RPM International Inc. Equity | ||||
Stockholders Equity Note [Line Items] | ||||
Total equity, beginning of period | 1,435,438 | 1,294,402 | 1,372,335 | 1,291,392 |
Net (Loss) Income | (70,926) | 83,433 | 41,843 | 183,248 |
Other Comprehensive Income: | ||||
Foreign currency translation adjustments | (51,984) | (53,814) | (63,495) | (84,420) |
Pension and other postretirement benefit liability adjustments, net of tax | 3,590 | 3,640 | 9,294 | 7,800 |
Unrealized (loss) gain on securities, net of tax | (895) | 369 | 709 | (6,715) |
Total Other Comprehensive (Loss), net of tax | (49,289) | (49,805) | (53,492) | (83,335) |
Comprehensive Income (Loss) | (120,215) | 33,628 | (11,649) | 99,913 |
Dividends paid | (40,075) | (36,642) | (76,604) | (71,276) |
Shares repurchased and returned for taxes | (2,558) | (9,944) | (19,663) | (45,292) |
Stock based compensation expense | 8,842 | 8,817 | 17,013 | 15,524 |
Total Equity, end of period | 1,281,432 | 1,290,261 | 1,281,432 | 1,290,261 |
Noncontrolling Interest | ||||
Stockholders Equity Note [Line Items] | ||||
Total equity, beginning of period | 2,126 | 2,620 | 2,413 | 2,073 |
Net (Loss) Income | 670 | 716 | 1,295 | 1,263 |
Other Comprehensive Income: | ||||
Comprehensive Income (Loss) | 670 | 716 | 1,295 | 1,263 |
Other noncontrolling interest activity | (894) | (1,373) | (1,806) | (1,373) |
Total Equity, end of period | $ 1,902 | $ 1,963 | $ 1,902 | $ 1,963 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) - Segment | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Nov. 30, 2015 | Nov. 30, 2016 | Nov. 30, 2015 | May 31, 2016 | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | 3 | |||
Number of operating segments | 7 | |||
Maximum | Industrial Segment | Performance Coatings Group | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of consolidated net sales, income before income taxes and identifiable assets | 1.00% | |||
Maximum | Industrial and Specialty Segments | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of change impact on net sales and income before income taxes | 10.00% | 10.00% |
Results of Reportable Segments
Results of Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Nov. 30, 2016 | Nov. 30, 2015 | Nov. 30, 2016 | Nov. 30, 2015 | May 31, 2016 | |
Segment Reporting Information [Line Items] | |||||
Net Sales | $ 1,190,770 | $ 1,155,984 | $ 2,442,833 | $ 2,398,510 | |
Income (Loss) Before Income Taxes | (106,857) | 120,261 | 41,618 | 262,462 | |
Identifiable Assets | 4,547,461 | 4,547,461 | $ 4,764,969 | ||
Operating Segments | Industrial Segment | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 633,429 | 623,305 | 1,309,269 | 1,300,413 | |
Income (Loss) Before Income Taxes | 50,291 | 64,008 | 139,557 | 148,476 | |
Identifiable Assets | 2,212,754 | 2,212,754 | 2,206,062 | ||
Operating Segments | Specialty Segment | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 183,567 | 173,625 | 359,903 | 343,486 | |
Income (Loss) Before Income Taxes | 31,160 | 28,278 | 61,664 | 54,767 | |
Identifiable Assets | 736,832 | 736,832 | 754,757 | ||
Operating Segments | Consumer Segment | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 373,774 | 359,054 | 773,661 | 754,611 | |
Income (Loss) Before Income Taxes | (140,575) | 65,429 | (70,487) | 131,552 | |
Identifiable Assets | 1,568,657 | 1,568,657 | 1,734,600 | ||
Corporate/Other | |||||
Segment Reporting Information [Line Items] | |||||
Income (Loss) Before Income Taxes | (47,733) | $ (37,454) | (89,116) | $ (72,333) | |
Identifiable Assets | $ 29,218 | $ 29,218 | $ 69,550 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Nov. 30, 2016 | May 31, 2015 | Jan. 06, 2017 | Dec. 23, 2016 | |
Subsequent Event [Line Items] | ||||
Amount funded for trust as per agreement | $ 450 | |||
Initial payment for long term debt | $ 450 | |||
Flowcrete Polymer Flooring Business | Middle East | Bad Debt and Inventory Reserve | ||||
Subsequent Event [Line Items] | ||||
Restructuring charges | $ 12.3 | |||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Amount funded for trust as per agreement | $ 102.5 | |||
Subsequent Event | Closure of European Facility and Severance Charges | ||||
Subsequent Event [Line Items] | ||||
Anticipated restructuring charges | $ 10 |