Segment Information | NOTE 17 — SEGMENT INFORMATION Effective June 1, 2019, we realigned certain businesses and management structure to recognize how we allocate resources and analyze the operating performance of our businesses. Among other things, the realignment of certain businesses occurred as a result of the 2020 MAP to Growth plan that was approved and initiated between May and August 2018. As we began to execute on our operating improvement initiatives, we identified ways to realign certain businesses, and concluded that moving to an expanded reporting structure could help us to better manage our assets and improve synergies across the enterprise. This realignment changed our reportable segments beginning with our first quarter of fiscal 2020. As such we now report under four reportable segments instead of our three previous reportable segments. Our four reporting segments are: the CPG reportable segment, PCG reportable segment, Consumer reportable segment and Specialty reportable segment. In connection with the realignment, we shifted our Kirker business out of Consumer into Specialty, and also shifted our Dryvit and Nudura businesses out of Specialty into CPG. The newly formed CPG also includes our Tremco, Tremco illbruck, Euclid Chemical, Viapol, Vandex and Flowcrete businesses. PCG includes Stonhard, Carboline, USL and Fibergrate businesses, while Consumer comprises the Rust-Oleum and DAP businesses. 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 four reportable segments as outlined above, which also represent our operating segments. Within each operating segment, we manage product lines and businesses which generally address common markets, share similar economic characteristics, utilize similar technologies and can share manufacturing or distribution capabilities. Our four operating segments represent components of our business for which separate financial information is available that is utilized on a regular basis by our chief operating decision maker in determining how to allocate the assets of the company and evaluate performance. These four operating segments are each managed by an operating segment manager, who is responsible for the day-to-day operating decisions and performance evaluation of the operating segment’s underlying businesses. We evaluate the profit performance of our segments primarily based on income before income taxes, but also look to earnings (loss) before interest and taxes (“EBIT”), and/or adjusted EBIT, as a performance evaluation measure because interest expense is essentially related to acquisitions, as opposed to segment operations. Our CPG reportable segment products are sold throughout North America and also account for the majority of our international sales. Our construction product lines are sold directly to contractors, distributors and end-users, such as industrial manufacturing facilities, public institutions and other commercial customers. Products and services within this reportable segment include construction sealants and adhesives, coatings and chemicals, roofing systems, concrete admixture and repair products, building envelope solutions, insulated cladding, flooring systems, and weatherproofing solutions. Our PCG reportable segment products are sold throughout North America, as well as internationally, and are sold directly to contractors, distributors and end-users, such as industrial manufacturing facilities, public institutions and other commercial customers. Products and services within this reportable segment include high-performance flooring solutions, corrosion control and fireproofing coatings, infrastructure repair systems, fiberglass reinforced plastic gratings and drainage systems. Our C onsumer 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 C onsumer 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 and through distributors. Th e Consumer reportable segment offers p roducts that include specialty, hobby and professional paints; caulks; adhesives; silicone sealants and wood stains. 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 offers products that include industrial cleaners, restoration services equipment, colorants, nail enamels, exterior finishes, edible coatings and specialty glazes for pharmaceutical and food industries, and other specialty original equipment manufacturer (“OEM”) coatings. In addition to our four reportable segments, there is a category of certain business activities and expenses, referred to as corporate/other, that does not constitute an operating segment. This category includes our corporate headquarters and related administrative expenses, results of our captive insurance companies, gains or losses on the sales of certain assets and other expenses not directly associated with any reportable segment. Assets related to the corporate/other category consist primarily of investments, prepaid expenses and headquarters’ property and equipment. These corporate and other assets and expenses reconcile reportable segment data to total consolidated income before income taxes and identifiable assets. We reflect income from our joint ventures on the equity method, and receive royalties from our licensees. The following tables present a disaggregation of revenues by geography, and reflect the results of our reportable segments consistent with our management philosophy, by representing the information we utilize, in conjunction with various strategic, operational and other financial performance criteria, in evaluating the performance of our portfolio of businesses. Information for all periods presented has been recast to reflect the current year change in reportable segments. Three Months Ended November 30, 2019 CPG Segment PCG Segment Consumer Segment Specialty Segment Consolidated (In thousands) Net Sales (based on shipping location) United States $ 270,908 $ 173,747 $ 358,500 $ 124,560 $ 927,715 Foreign Canada 46,199 19,309 27,075 2,555 95,138 Europe 117,548 69,999 48,741 20,946 257,234 Latin America 43,084 8,842 7,327 349 59,602 Asia Pacific 19,468 6,670 6,874 9,760 42,772 Other Foreign 2,303 14,145 2,383 18,831 Total Foreign 228,602 118,965 92,400 33,610 473,577 Total $ 499,510 $ 292,712 $ 450,900 $ 158,170 $ 1,401,292 Three Months Ended November 30, 2018 CPG Segment PCG Segment Consumer Segment Specialty Segment Consolidated (In thousands) Net Sales (based on shipping location) United States $ 229,385 $ 169,518 $ 329,934 $ 142,549 $ 871,386 Foreign Canada 53,734 22,671 23,403 2,434 102,242 Europe 128,628 64,156 54,478 22,580 269,842 Latin America 36,308 8,550 7,281 364 52,503 Asia Pacific 19,397 9,312 7,919 10,091 46,719 Other Foreign (154 ) 17,753 2,240 - 19,839 Total Foreign 237,913 122,442 95,321 35,469 491,145 Total $ 467,298 $ 291,960 $ 425,255 $ 178,018 $ 1,362,531 Six Months Ended November 30, 2019 CPG Segment PCG Segment Consumer Segment Specialty Segment Consolidated (In thousands) Net Sales (based on shipping location) United States $ 578,567 $ 355,653 $ 739,729 $ 256,291 $ 1,930,240 Foreign Canada 96,642 40,282 59,580 4,783 201,287 Europe 231,850 134,458 99,750 41,785 507,843 Latin America 85,931 17,283 13,642 781 117,637 Asia Pacific 39,864 14,094 13,055 14,618 81,631 Other Foreign 2,761 28,183 4,474 35,418 Total Foreign 457,048 234,300 190,501 61,967 943,816 Total $ 1,035,615 $ 589,953 $ 930,230 $ 318,258 $ 2,874,056 Six Months Ended November 30, 2018 CPG Segment PCG Segment Consumer Segment Specialty Segment Consolidated (In thousands) Net Sales (based on shipping location) United States $ 519,184 $ 346,975 $ 705,470 $ 280,430 $ 1,852,059 Foreign Canada 97,072 44,859 52,408 4,680 199,019 Europe 253,915 124,769 112,354 45,380 536,418 Latin America 74,293 18,190 13,403 671 106,557 Asia Pacific 39,687 19,525 14,831 15,572 89,615 Other Foreign 639 34,061 4,152 - 38,852 Total Foreign 465,606 241,404 197,148 66,303 970,461 Total $ 984,790 $ 588,379 $ 902,618 $ 346,733 $ 2,822,520 Three Months Ended Six Months Ended November 30, November 30, November 30, November 30, 2019 2018 2019 2018 (In thousands) Income (Loss) Before Income Taxes CPG Segment $ 57,123 $ 35,357 $ 139,803 $ 100,401 PCG Segment 33,320 22,299 61,377 $ 30,624 Consumer Segment 34,456 41,836 93,614 92,805 Specialty Segment 18,762 26,119 42,089 49,935 Corporate/Other (41,908 ) (59,018 ) (92,281 ) (115,234 ) Consolidated $ 101,753 $ 66,593 $ 244,602 $ 158,531 November 30, May 31, 2019 2019 (In thousands) Identifiable Assets CPG Segment $ 1,581,862 $ 1,573,329 PCG Segment 975,423 951,644 Consumer Segment 2,001,829 1,953,279 Specialty Segment 716,471 689,133 Corporate/Other 305,413 273,970 Consolidated $ 5,580,998 $ 5,441,355 |