Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Nov. 30, 2019 | Jan. 03, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Nov. 30, 2019 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | RPM | |
Entity Registrant Name | RPM INTERNATIONAL INC/DE/ | |
Entity Central Index Key | 0000110621 | |
Current Fiscal Year End Date | --05-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 129,766,609 | |
Entity File Number | 1-14187 | |
Entity Tax Identification Number | 02-0642224 | |
Entity Address, Address Line One | P.O. BOX 777 | |
Entity Address, Address Line Two | 2628 PEARL ROAD | |
Entity Address, City or Town | MEDINA | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 44258 | |
City Area Code | 330 | |
Local Phone Number | 273-5090 | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Security Exchange Name | NYSE | |
Title of 12(b) Security | Common Stock, par value $0.01 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Nov. 30, 2019 | May 31, 2019 |
Current Assets | ||
Cash and cash equivalents | $ 208,173 | $ 223,168 |
Trade accounts receivable (less allowances of $59,824 and $54,748, respectively) | 1,047,813 | 1,232,350 |
Inventories | 883,722 | 841,873 |
Prepaid expenses and other current assets | 220,557 | 220,701 |
Total current assets | 2,360,265 | 2,518,092 |
Property, Plant and Equipment, at Cost | 1,712,511 | 1,662,859 |
Allowance for depreciation | (890,736) | (843,648) |
Property, plant and equipment, net | 821,775 | 819,211 |
Other Assets | ||
Goodwill | 1,259,556 | 1,245,762 |
Other intangible assets, net of amortization | 595,311 | 601,082 |
Operating lease right-of-use assets | 284,852 | |
Deferred income taxes | 34,719 | 34,908 |
Other | 224,520 | 222,300 |
Total other assets | 2,398,958 | 2,104,052 |
Total Assets | 5,580,998 | 5,441,355 |
Current Liabilities | ||
Accounts payable | 475,288 | 556,696 |
Current portion of long-term debt | 102,136 | 552,446 |
Accrued compensation and benefits | 139,403 | 193,345 |
Accrued losses | 21,646 | 19,899 |
Other accrued liabilities | 245,595 | 217,019 |
Total current liabilities | 984,068 | 1,539,405 |
Long-Term Liabilities | ||
Long-term debt, less current maturities | 2,421,339 | 1,973,462 |
Operating lease liabilities | 243,863 | |
Other long-term liabilities | 415,838 | 405,040 |
Deferred income taxes | 112,590 | 114,843 |
Total long-term liabilities | 3,193,630 | 2,493,345 |
Commitments and contingencies (Note 15) | ||
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 143,021 and outstanding 129,767 as of November 30, 2019; issued 142,439 and outstanding 130,995 as of May 31, 2019 | 1,298 | 1,310 |
Paid-in capital | 1,007,554 | 994,508 |
Treasury stock, at cost | (547,683) | (437,290) |
Accumulated other comprehensive (loss) | (576,707) | (577,628) |
Retained earnings | 1,516,230 | 1,425,052 |
Total RPM International Inc. stockholders' equity | 1,400,692 | 1,405,952 |
Noncontrolling Interest | 2,608 | 2,653 |
Total equity | 1,403,300 | 1,408,605 |
Total Liabilities and Stockholders' Equity | $ 5,580,998 | $ 5,441,355 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Nov. 30, 2019 | May 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Trade accounts receivable, allowances | $ 59,824 | $ 54,748 |
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 | 143,021,000 | 142,439,000 |
Common stock, outstanding | 129,767,000 | 130,995,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Nov. 30, 2019 | Nov. 30, 2018 | Nov. 30, 2019 | Nov. 30, 2018 | ||
Income Statement [Abstract] | |||||
Net Sales | $ 1,401,292 | $ 1,362,531 | $ 2,874,056 | $ 2,822,520 | |
Cost of Sales | 871,894 | 868,800 | 1,769,904 | 1,779,436 | |
Gross Profit | 529,398 | 493,731 | 1,104,152 | 1,043,084 | |
Selling, General and Administrative Expenses | 403,357 | 385,842 | 803,923 | 800,895 | |
Restructuring Charges | 4,801 | 7,724 | 11,423 | 27,800 | |
Interest Expense | 26,341 | 23,127 | 54,658 | 47,533 | |
Investment (Income) Expense, Net | (8,805) | 7,033 | (14,190) | 4,600 | |
Other Expense, Net | 1,951 | 3,412 | 3,736 | 3,725 | |
Income Before Income Taxes | 101,753 | 66,593 | 244,602 | 158,531 | |
Provision for Income Taxes | 24,431 | 17,420 | 60,784 | 39,172 | |
Net Income | 77,322 | 49,173 | 183,818 | 119,359 | |
Less: Net Income (Loss) Attributable to Noncontrolling Interests | 292 | (51) | 600 | 371 | |
Net Income Attributable to RPM International Inc. Stockholders | $ 77,030 | $ 49,224 | $ 183,218 | $ 118,988 | |
Average Number of Shares of Common Stock Outstanding: | |||||
Basic | 128,393 | 131,058 | 128,639 | 131,467 | |
Diluted | [1] | 129,079 | 131,667 | 129,294 | 133,278 |
Earnings per Share of Common Stock Attributable to RPM International Inc. Stockholders: | |||||
Basic | $ 0.60 | $ 0.37 | $ 1.42 | $ 0.90 | |
Diluted | $ 0.59 | $ 0.37 | $ 1.41 | $ 0.89 | |
[1] | Restricted shares totaling 178,000 for the six months ended November 30, 2019, were excluded from the calculation of diluted earnings per share as their effect would have been anti-dilutive. There were no shares of restricted stock identified as being anti-dilutive for the three months ended November 30, 2019, or the three or six months ended November 30, 2018. Stock appreciation rights (SARs) totaling 790,000 for the six months ended November 30, 2019 and 480,000 and 890,000 for the three and six months ended November 30, 2018, respectively, were excluded from the calculation of diluted earnings per share as their effect would have been anti-dilutive. There were no SARs identified as being anti-dilutive for the three months ended November 30, 2019. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2019 | Nov. 30, 2018 | Nov. 30, 2019 | Nov. 30, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net Income | $ 77,322 | $ 49,173 | $ 183,818 | $ 119,359 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | 20,967 | (12,245) | (7,467) | (52,935) |
Pension and other postretirement benefit liability adjustments (net of tax of $1,015; $1,108; $2,119 and $2,090, respectively) | 3,404 | 3,428 | 7,027 | 6,483 |
Unrealized (loss) gain on securities and other (net of tax of $0; $124; $1 and $543, respectively) | (155) | (1,515) | 216 | 962 |
Unrealized gain on derivatives (net of tax of $305; $234; $274 and $249, respectively) | 381 | 2,349 | 1,165 | 3,271 |
Total other comprehensive income (loss) | 24,597 | (7,983) | 941 | (42,219) |
Total Comprehensive Income | 101,919 | 41,190 | 184,759 | 77,140 |
Less: Comprehensive Income Attributable to Noncontrolling Interests | 343 | 40 | 620 | 204 |
Comprehensive Income Attributable to RPM International Inc. Stockholders | $ 101,576 | $ 41,150 | $ 184,139 | $ 76,936 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2019 | Nov. 30, 2018 | Nov. 30, 2019 | Nov. 30, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Pension and other postretirement benefit liability adjustments, Tax | $ 1,015 | $ 1,108 | $ 2,119 | $ 2,090 |
Unrealized gain on securities and other, Tax | 0 | 124 | 1 | 543 |
Unrealized gain on derivatives, Tax | $ 305 | $ 234 | $ 274 | $ 249 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | ||
Nov. 30, 2019 | Nov. 30, 2018 | ||
Cash Flows From Operating Activities: | |||
Net Income | $ 183,818 | $ 119,359 | |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | |||
Depreciation and amortization | 77,572 | 73,025 | |
Restructuring charges, net of payments | (1,713) | 7,464 | |
Payments of contingent earnout obligations in excess of fair value | 1,558 | ||
Deferred income taxes | (5,426) | (1,400) | |
Stock-based compensation expense | 13,034 | 12,896 | |
Other non-cash interest expense | 1,552 | ||
Realized/unrealized (gains) losses on marketable securities | (8,741) | 7,496 | |
Loss on extinguishment of debt | [1] | 3,051 | |
Other | (705) | 2,349 | |
Changes in assets and liabilities, net of effect from purchases and sales of businesses: | |||
Decrease in receivables | 183,782 | 92,398 | |
(Increase) in inventory | (41,129) | (49,020) | |
Decrease (increase) in prepaid expenses and other current and long-term assets | 8,524 | (942) | |
(Decrease) in accounts payable | (70,712) | (117,678) | |
(Decrease) in accrued compensation and benefits | (53,589) | (41,470) | |
Increase in accrued losses | 1,894 | 1,131 | |
Increase in other accrued liabilities | 13,644 | 33,422 | |
Other | (90) | 3,098 | |
Cash Provided By Operating Activities | 300,163 | 148,289 | |
Cash Flows From Investing Activities: | |||
Capital expenditures | (71,393) | (57,775) | |
Acquisition of businesses, net of cash acquired | (36,281) | (127,848) | |
Purchase of marketable securities | (14,332) | (13,276) | |
Proceeds from sales of marketable securities | 13,100 | 35,426 | |
Other | 2,183 | (2,394) | |
Cash (Used For) Investing Activities | (106,723) | (165,867) | |
Cash Flows From Financing Activities: | |||
Additions to long-term and short-term debt | 539,277 | 447,843 | |
Reductions of long-term and short-term debt | (542,744) | (247,440) | |
Cash dividends | (92,040) | (89,196) | |
Shares repurchased | (100,000) | (81,992) | |
Shares returned for taxes | (10,155) | (16,466) | |
Payments of acquisition-related contingent consideration | (187) | (3,531) | |
Other | (664) | (391) | |
Cash (Used For) Provided By Financing Activities | (206,513) | 8,827 | |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (1,922) | (8,757) | |
Net Change in Cash and Cash Equivalents | (14,995) | (17,508) | |
Cash and Cash Equivalents at Beginning of Period | 223,168 | 244,422 | |
Cash and Cash Equivalents at End of Period | 208,173 | 226,914 | |
Cash paid during the period for: | |||
Interest | 58,953 | 49,687 | |
Income Taxes, net of refunds | $ 73,322 | 25,311 | |
Supplemental Disclosures of Non-Cash Investing and Financing Activities: | |||
Conversion of Debt to Equity | $ 38,239 | ||
[1] | In connection with the redemption of all our outstanding 2.25% convertible senior notes in November 2018, we recognized a loss of $3.1 million, due to the fair value measurement of the instrument on the date of conversion. |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Paid-In Capital | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Total RPM International Inc. Equity | Noncontrolling Interests |
Beginning Balance at May. 31, 2018 | $ 1,633,538 | $ 1,336 | $ 982,067 | $ (236,318) | $ (459,048) | $ 1,342,736 | $ 1,630,773 | $ 2,765 |
Beginning Balance (in shares) at May. 31, 2018 | 133,647,000 | |||||||
Cumulative-effect adjustment upon adoption of ASU 2014-09 at May. 31, 2018 | (2,833) | (2,833) | (2,833) | |||||
Net income (loss) | 70,186 | 69,764 | 69,764 | 422 | ||||
Other comprehensive (loss) | (34,236) | (33,978) | (33,978) | (258) | ||||
Dividends declared and paid | (42,715) | (42,715) | (42,715) | |||||
Other noncontrolling interest activity | 3 | 3 | ||||||
Share repurchases under repurchase program | (6,994) | $ (1) | 1 | (6,994) | (6,994) | |||
Share repurchases under repurchase program (in shares) | (103,000) | |||||||
Stock compensation expense and other deferred compensation, shares granted less shares returned for taxes | (3,570) | $ (1) | 10,018 | (13,587) | (3,570) | |||
Stock compensation expense and other deferred compensation, shares granted less shares returned for taxes (in shares) | (136,000) | |||||||
Ending Balance at Aug. 31, 2018 | 1,613,379 | $ 1,334 | 992,086 | (256,899) | (493,026) | 1,366,952 | 1,610,447 | 2,932 |
Ending Balance (in shares) at Aug. 31, 2018 | 133,408,000 | |||||||
Beginning Balance at May. 31, 2018 | 1,633,538 | $ 1,336 | 982,067 | (236,318) | (459,048) | 1,342,736 | 1,630,773 | 2,765 |
Beginning Balance (in shares) at May. 31, 2018 | 133,647,000 | |||||||
Cumulative-effect adjustment upon adoption of ASU 2014-09 at May. 31, 2018 | (2,833) | (2,833) | (2,833) | |||||
Net income (loss) | 119,359 | |||||||
Other comprehensive (loss) | (42,219) | |||||||
Share repurchases under repurchase program | $ (82,000) | |||||||
Share repurchases under repurchase program (in shares) | (1,248,398) | |||||||
Ending Balance at Nov. 30, 2018 | $ 1,536,046 | $ 1,331 | 976,345 | (313,764) | (501,100) | 1,369,695 | 1,532,507 | 3,539 |
Ending Balance (in shares) at Nov. 30, 2018 | 133,136,000 | |||||||
Beginning Balance at Aug. 31, 2018 | 1,613,379 | $ 1,334 | 992,086 | (256,899) | (493,026) | 1,366,952 | 1,610,447 | 2,932 |
Beginning Balance (in shares) at Aug. 31, 2018 | 133,408,000 | |||||||
Net income (loss) | 49,173 | 49,224 | 49,224 | (51) | ||||
Other comprehensive (loss) | (7,983) | (8,074) | (8,074) | 91 | ||||
Dividends declared and paid | (46,481) | (46,481) | (46,481) | |||||
Other noncontrolling interest activity | 567 | 567 | ||||||
Share repurchases under repurchase program | $ (74,998) | $ (11) | 11 | (74,998) | (74,998) | |||
Share repurchases under repurchase program (in shares) | (1,144,952) | (1,145,000) | ||||||
Stock compensation expense and other deferred compensation, shares granted less shares returned for taxes | $ 5,197 | $ 2 | 7,277 | (2,082) | 5,197 | |||
Stock compensation expense and other deferred compensation, shares granted less shares returned for taxes (in shares) | 274,000 | |||||||
Convertible bond redemption | (2,808) | $ 6 | (23,029) | 20,215 | (2,808) | |||
Convertible bond redemption (in shares) | 599,000 | |||||||
Ending Balance at Nov. 30, 2018 | 1,536,046 | $ 1,331 | 976,345 | (313,764) | (501,100) | 1,369,695 | 1,532,507 | 3,539 |
Ending Balance (in shares) at Nov. 30, 2018 | 133,136,000 | |||||||
Beginning Balance at May. 31, 2019 | 1,408,605 | $ 1,310 | 994,508 | (437,290) | (577,628) | 1,425,052 | 1,405,952 | 2,653 |
Beginning Balance (in shares) at May. 31, 2019 | 130,995,000 | |||||||
Net income (loss) | 106,496 | 106,188 | 106,188 | 308 | ||||
Other comprehensive (loss) | (23,656) | (23,625) | (23,625) | (31) | ||||
Dividends declared and paid | (45,323) | (45,323) | (45,323) | |||||
Other noncontrolling interest activity | (297) | (297) | ||||||
Share repurchases under repurchase program | (100,000) | $ (16) | 16 | (100,000) | (100,000) | |||
Share repurchases under repurchase program (in shares) | (1,656,000) | |||||||
Stock compensation expense and other deferred compensation, shares granted less shares returned for taxes | 200 | $ 3 | 6,557 | (6,360) | 200 | |||
Stock compensation expense and other deferred compensation, shares granted less shares returned for taxes (in shares) | 330,000 | |||||||
Ending Balance at Aug. 31, 2019 | 1,346,025 | $ 1,297 | 1,001,081 | (543,650) | (601,253) | 1,485,917 | 1,343,392 | 2,633 |
Ending Balance (in shares) at Aug. 31, 2019 | 129,669,000 | |||||||
Beginning Balance at May. 31, 2019 | 1,408,605 | $ 1,310 | 994,508 | (437,290) | (577,628) | 1,425,052 | 1,405,952 | 2,653 |
Beginning Balance (in shares) at May. 31, 2019 | 130,995,000 | |||||||
Net income (loss) | 183,818 | |||||||
Other comprehensive (loss) | 941 | |||||||
Share repurchases under repurchase program | $ (100,000) | |||||||
Share repurchases under repurchase program (in shares) | (1,655,616) | |||||||
Ending Balance at Nov. 30, 2019 | $ 1,403,300 | $ 1,298 | 1,007,554 | (547,683) | (576,707) | 1,516,230 | 1,400,692 | 2,608 |
Ending Balance (in shares) at Nov. 30, 2019 | 129,766,000 | |||||||
Beginning Balance at Aug. 31, 2019 | 1,346,025 | $ 1,297 | 1,001,081 | (543,650) | (601,253) | 1,485,917 | 1,343,392 | 2,633 |
Beginning Balance (in shares) at Aug. 31, 2019 | 129,669,000 | |||||||
Net income (loss) | 77,322 | 77,030 | 77,030 | 292 | ||||
Other comprehensive (loss) | 24,597 | 24,546 | 24,546 | 51 | ||||
Dividends declared and paid | (46,717) | (46,717) | (46,717) | |||||
Other noncontrolling interest activity | $ (368) | (368) | ||||||
Share repurchases under repurchase program (in shares) | 0 | |||||||
Stock compensation expense and other deferred compensation, shares granted less shares returned for taxes | $ 2,441 | $ 1 | 6,473 | (4,033) | 2,441 | |||
Stock compensation expense and other deferred compensation, shares granted less shares returned for taxes (in shares) | 97,000 | |||||||
Ending Balance at Nov. 30, 2019 | $ 1,403,300 | $ 1,298 | $ 1,007,554 | $ (547,683) | $ (576,707) | $ 1,516,230 | $ 1,400,692 | $ 2,608 |
Ending Balance (in shares) at Nov. 30, 2019 | 129,766,000 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Nov. 30, 2019 | Nov. 30, 2018 | |
Statement Of Stockholders Equity [Abstract] | ||||
Dividends declared and paid per share | $ 0.35 | $ 0.32 | $ 0.36 | $ 0.35 |
Consolidation, Noncontrolling I
Consolidation, Noncontrolling Interests and Basis of Presentation | 6 Months Ended |
Nov. 30, 2019 | |
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, 2019 and 2018. 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, 2019. 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). |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Nov. 30, 2019 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Pronouncements | NOTE 2 — NEW ACCOUNTING PRONOUNCEMENTS 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 are required to recognize a right-of-use (“ROU”) asset representing our right to use an underlying asset and a lease liability representing our obligation to make lease payments over the lease term, 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. In March 2018, the FASB approved an alternative transition method to the modified retrospective approach, which eliminates the requirement to restate prior period financial statements and requires the cumulative effect of the retrospective allocation to be recorded as an adjustment to the opening balance of retained earnings at the date of adoption. We have adopted the new leasing standard on the required effective date of June 1, 2019 using the alternative transition method as described above. Results for reporting periods beginning on June 1, 2019 are presented under Topic 842, while prior period amounts continue to be reported and disclosed in accordance with our historical accounting treatment under Accounting Standards Codification (“ASC”) 840, “Leases (ASC 840).” We elected to apply the package of practical expedients permitted under the ASC 842 transition guidance. Accordingly, we did not reassess whether any expired or expiring contracts contain leases, lease classification between finance and operating leases, and the recognition of initial direct costs of leases commencing before the effective date. We also applied the practical expedient to not separate lease and non-lease components to existing leases, as well as new leases through transition. However, we did not elect the hindsight practical expedient to determine the lease term for existing leases. As a result of our adoption procedures, we have determined that the new guidance had a material impact on our Consolidated Balance Sheets and did not have a material effect on our Consolidated Statements of Income, Consolidated Statements of Cash Flows or our debt covenants. The effects of our transition to ASC 842 resulted in no cumulative adjustment to retained earnings in the period of adoption. Refer to Note 13, “Leases,” for additional information. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses,” which requires an organization to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Additionally, the standard amends the current available-for-sale security other-than-temporary impairment model for debt securities. The guidance is effective for fiscal years beginning after December 15, 2019 and for interim periods therein. Early adoption is permitted beginning after December 15, 2018. We are currently reviewing the provisions of this new pronouncement, but do not expect our adoption of this guidance to have a material impact on our Consolidated Financial Statements. In August 2018, the SEC issued Final Rule Release No. 33-10532, “Disclosure Update and Simplification,” which makes a number of changes meant to simplify interim disclosures. The new rule requires a presentation of changes in stockholders’ equity and noncontrolling interest in the form of a reconciliation, either as a separate financial statement or in the notes to the financial statements, for the current and comparative year-to-date interim periods. In July 2019, the FASB issued ASU 2019-07, “ Codification Updates to SEC Sections – Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10532, Disclosure Update and Simplification, and Nos. 33-10231 and 33-10442, Investment Company Reporting Modernization and Miscellaneous Updates (SEC Update). ” ASU 2019-07 codifies Final Rule Release No. 33-10532. The additional elements of th is release did not have a material impact on our overall Consolidated Financial Statements. We adopted the new disclosure requirements in our Form 10-Q for the period ended February 28, 2019. In January 2017, the FASB issued ASU 2017-04, “Simplifying the Test for Goodwill Impairment,” to eliminate step two from the goodwill impairment test in order to simplify the subsequent measurement of goodwill. The guidance is effective for fiscal years beginning after December 15, 2019. Early application is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. Adoption of this guidance is not expected to have a material impact on our Consolidated Financial Statements. In February 2018, the FASB issued ASU 2018-02, “Income Statement (Topic 220), Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” which allows for an entity to reclassify the tax effects of the U.S. Tax Cuts and Jobs Act of 2017 (“Tax Act”) that were previously recorded in accumulated comprehensive income to retained earnings. The adoption of this new guidance, effective June 1, 2019, did not have a material effect on our Consolidated Financial Statements as we did not elect the option to reclassify to retained earnings the tax effects resulting from the Tax Act that were previously recorded in accumulated other comprehensive income. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820), – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement,” which makes a number of changes meant to add, modify or remove certain disclosure requirements associated with the movement amongst or hierarchy associated with Level 1, Level 2 and Level 3 fair value measurements. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted upon issuance of the update. We do not expect our adoption of this guidance to have a material impact on our Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-14, “Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20), Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans,” which makes a number of changes meant to add, modify or remove certain disclosure requirements associated with employers that sponsor defined benefit or other postretirement plans. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted for all entities and the amendments in this update are required to be applied on a retrospective basis to all periods presented. We are currently reviewing the provisions of this new pronouncement, but do not expect our adoption of this guidance to have a material impact on our Consolidated Financial Statements. In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740),” which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption of the amendments is permitted, including adoption in any interim period for which financial statements have not yet been issued. Depending on the amendment, adoption may be applied on the retrospective, modified retrospective or prospective basis. We are currently reviewing the provisions of this new pronouncement, but do not expect our adoption of this guidance to have a material impact on our Consolidated Financial Statements. |
Change in Accounting Principle
Change in Accounting Principle | 6 Months Ended |
Nov. 30, 2019 | |
Accounting Changes And Error Corrections [Abstract] | |
Change in Accounting Principle | NOTE 3 — CHANGE IN ACCOUNTING PRINCIPLE During the first quarter of fiscal 2020, we changed our method of accounting for shipping and handling costs, which we have identified as costs paid to third-party shippers for transporting products to customers. Under the new method of accounting, we include shipping costs in cost of sales, whereas previously, they were included in SG&A expense. We believe that including these expenses in cost of sales is preferable, as it better aligns these costs with the related revenue in the gross profit calculation and is consistent with the practices of other industry peers. This change in accounting principle has been applied retrospectively, and the consolidated statements of income reflect the effect of this accounting principle change for all periods presented. This reclassification had no impact on income before income taxes, net income attributable to RPM International Inc. Stockholders, net income or earnings per share. The consolidated balance sheets, statements of comprehensive income, statements of stockholders’ equity, and statements of cash flows were not impacted by this accounting principle change. The consolidated statements of income for the three and six months ended November 30, 2018 have been adjusted to reflect this change in accounting principle. The impact of the adjustment for the three and six months ended November 30, 2018 was an increase of $44.2 million and $88.9 million, respectively, to cost of sales and a corresponding decrease to SG&A expense. |
Restructuring
Restructuring | 6 Months Ended |
Nov. 30, 2019 | |
Restructuring And Related Activities [Abstract] | |
Restructuring | NOTE 4 — RESTRUCTURING We record restructuring charges associated with management-approved restructuring plans to either reorganize one or more of our business segments, or to remove duplicative headcount and infrastructure associated with our businesses. Restructuring charges can include severance costs to eliminate a specified number of employees, infrastructure charges to vacate facilities and consolidate operations, contract cancellation costs and other costs. Restructuring charges are recorded based upon planned employee termination dates and site closure and consolidation plans. The timing of associated cash payments is dependent upon the type of restructuring charge and can extend over a multi-year period. We record the short-term portion of our restructuring liability in Other Accrued Liabilities and the long-term portion, if any, in Other Long-Term Liabilities in our Consolidated Balance Sheets. 2020 MAP to Growth Between May and August 2018, we approved and implemented the initial phases of a multi-year restructuring plan, the 2020 Margin Acceleration Plan (“2020 MAP to Growth”). The initial phases of our 2020 MAP to Growth affected all of our reportable segments, as well as our corporate/nonoperating segment, and focused on margin improvement by simplifying business processes; reducing inventory categories and rationalizing SKUs; eliminating underperforming businesses; reducing headcount and working capital; and improving operating efficiency. The majority of the activities included in the initial phases of the restructuring activities have been completed. During the second quarter ended November 30, 2018, we formally announced the final phases of our 2020 MAP to Growth. This multi-year restructuring is expected to increase operational efficiency while maintaining our entrepreneurial growth culture and will include three additional phases between September 2018 and December 2020. Our execution of the 2020 MAP to Growth will continue to drive the de-layering and simplification of management and businesses associated with group realignment. We will implement four center-led functional areas including manufacturing and operations; procurement and supply chain; information technology; and accounting and finance. Our 2020 MAP to Growth will optimize our manufacturing facilities and will ultimately provide more efficient plant and distribution facilities. To date, in association with our 2020 MAP to Growth initiative, we have completed, or are in the process of completing, the planned closure of 18 plants and 23 warehouses. We also expect to incur additional severance and benefit costs as part of our planned closure of these facilities. Throughout the additional phases of our 2020 MAP to Growth initiative, we will continue to assess and find areas of improvement and cost savings. As such, the final implementation of the aforementioned phases and total expected costs are subject to change. In addition to the announced plan, we have continued to broaden the scope of our 2020 MAP to Growth initiative, specifically in consolidation of the general and administrative areas, potential outsourcing, as well as additional future plant closures and consolidations; the estimated costs of which have not yet been finalized. The current total expected costs associated with this plan are outlined in the table below and increased by approximately $4.6 million compared to our previous estimate, primarily attributable to increases in expected severance and benefit charges of $4.6 million. Most activities under our 2020 MAP to Growth are anticipated to be completed by the end of calendar year 2020. Following is a summary of the charges recorded in connection with restructuring by reportable segment: Three Months Ended Six Months Ended Cumulative Costs Total Expected (in thousands) November 30, 2019 November 30, 2019 to Date Costs Construction Products Group (“CPG”) Segment: Severance and benefit costs (a) $ 1,447 $ 1,607 $ 12,836 $ 22,146 Facility closure and other related costs 110 798 3,767 4,597 Other asset write-offs 39 39 1,629 2,151 Total Charges $ 1,596 $ 2,444 $ 18,232 $ 28,894 Performance Coatings Group (“PCG”) Segment: Severance and benefit costs (b) $ 431 $ 2,931 $ 9,344 $ 14,765 Facility closure and other related costs 636 745 4,219 6,638 Other asset write-offs 172 172 523 528 Total Charges $ 1,239 $ 3,848 $ 14,086 $ 21,931 Consumer Group (“Consumer”) Segment: Severance and benefit costs (c) $ 780 $ 1,547 $ 8,925 $ 12,424 Facility closure and other related costs 344 860 7,552 9,352 Other asset write-offs - - 25 25 Total Charges $ 1,124 $ 2,407 $ 16,502 $ 21,801 Specialty Products Group (“Specialty”) Segment: Severance and benefit costs (d) $ 48 $ 414 $ 5,750 $ 10,640 Facility closure and other related costs 731 2,190 3,434 6,697 Other asset write-offs 40 104 1,107 1,334 Total Charges $ 819 $ 2,708 $ 10,291 $ 18,671 Corporate/Other Segment: Severance and benefit costs $ 23 $ 16 $ 12,136 $ 12,136 Total Charges $ 23 $ 16 $ 12,136 $ 12,136 Consolidated: Severance and benefit costs $ 2,729 $ 6,515 $ 48,991 $ 72,111 Facility closure and other related costs 1,821 4,593 18,972 27,284 Other asset write-offs 251 315 3,284 4,038 Total Charges $ 4,801 $ 11,423 $ 71,247 $ 103,433 (a) Severance and benefit costs are associated with the elimination of 25 positions and 46 positions during the three and six months ended November 30, 2019, respectively. (b) Severance and benefit costs are associated with the elimination of 18 positions and 69 positions during the three and six months ended November 30, 2019, respectively. (c) Severance and benefit costs are associated with the elimination of 9 positions and 11 positions during the three and six months ended November 30, 2019, respectively. (d) Severance and benefit costs are associated with the elimination of 49 positions and 59 positions during the three and six months ended November 30, 2019, respectively. Three Months Ended Six Months Ended (in thousands) November 30, 2018 November 30, 2018 Construction Products Group (“CPG”) Segment: Severance and benefit costs (e) $ 3,574 $ 5,993 Facility closure and other related costs 384 397 Other asset write-offs 3 368 Total Charges $ 3,961 $ 6,758 Performance Coatings Group (“PCG”) Segment: Severance and benefit costs (f) $ 364 $ 4,769 Facility closure and other related costs 483 906 Other asset write-offs 146 359 Total Charges $ 993 $ 6,034 Consumer Group (“Consumer”) Segment: Severance and benefit costs (g) $ 76 $ 1,095 Facility closure and other related costs 105 105 Other asset write-offs - - Total Charges $ 181 $ 1,200 Specialty Products Group (“Specialty”) Segment: Severance and benefit costs (h) $ 1,458 $ 3,678 Facility closure and other related costs 65 65 Other asset write-offs 5 5 Total Charges $ 1,528 $ 3,748 Corporate/Other Segment: Severance and benefit costs (i) $ 1,061 $ 10,060 Total Charges $ 1,061 $ 10,060 Consolidated: Severance and benefit costs $ 6,533 $ 25,595 Facility closure and other related costs 1,037 1,473 Other asset write-offs 154 732 Total Charges $ 7,724 $ 27,800 ( e ) Severance and benefit costs are associated with the elimination of 37 positions and 68 positions during the three and six months ended November 30, 2018, respectively. Additionally, $0.2 million included in the charges incurred during the six months ended November 30, 2018 are associated with the prior elimination of one position within the legal function during fiscal 2018. ( f ) Severance and benefit costs are associated with the elimination of 17 positions and 102 positions during the three and six months ended November 30, 2018, respectively. ( g ) Severance and benefit costs are associated with the elimination of 9 positions during the six months ended November 30, 2018. ( h ) Severance and benefit costs are associated with the elimination of 95 positions and 120 positions during the three and six months ended November 30, 2018, respectively. (i) Reflects charges related to the severance of two corporate executives, as well as accelerated vesting of equity awards for two corporate executives, four Specialty segment executives and three CPG segment executives in connection with the aforementioned restructuring activities. A summary of the activity in the restructuring reserves related to our 2020 MAP to Growth is as follows: (in thousands) Severance and Benefits Costs Facility Closure and Other Related Costs Other Asset Write-Offs Total Balance at August 31, 2019 $ 2,946 $ 9,430 $ - $ 12,376 Additions charged to expense 2,729 1,821 251 4,801 Cash payments charged against reserve (2,109 ) (5,016 ) - (7,125 ) Non-cash charges included above (j) - (155 ) (251 ) (406 ) Balance at November 30, 2019 $ 3,566 $ 6,080 $ - $ 9,646 (in thousands) Severance and Benefits Costs Facility Closure and Other Related Costs Other Asset Write-Offs Total Balance at June 1, 2019 $ 4,837 $ 7,857 $ - 12,694 Additions charged to expense 6,515 4,593 315 11,423 Cash payments charged against reserve (7,786 ) (5,350 ) - (13,136 ) Non-cash charges included above (j) - (1,020 ) (315 ) (1,335 ) Balance at November 30, 2019 $ 3,566 $ 6,080 $ - $ 9,646 (in thousands) Severance and Benefits Costs Facility Closure and Other Related Costs Other Asset Write-Offs Total Balance at August 31, 2018 $ 10,960 $ 5,364 $ - $ 16,324 Additions charged to expense 6,533 1,037 154 7,724 Cash payments charged against reserve (6,013 ) (1,330 ) - (7,343 ) Non-cash charges included above (j) (1,053 ) (2,536 ) (154 ) (3,743 ) Balance at November 30, 2018 $ 10,427 $ 2,535 $ - $ 12,962 (in thousands) Severance and Benefits Costs Facility Closure and Other Related Costs Other Asset Write-Offs Total Balance at June 1, 2018 $ 9,957 $ 6,184 $ 1,373 $ 17,514 Additions charged to expense 25,595 1,473 732 27,800 Cash payments charged against reserve (18,588 ) (1,748 ) - (20,336 ) Non-cash charges included above (j) (6,537 ) (3,374 ) (2,105 ) (12,016 ) Balance at November 30, 2018 $ 10,427 $ 2,535 $ - $ 12,962 ( j ) Non-cash charges primarily include accelerated vesting of equity awards and asset-write offs. In connection with our 2020 MAP to Growth, during the second quarter of fiscal 2020, we incurred approximately $6.3 million and $1.0 million of inventory-related charges at our Consumer and PCG segments, respectively. During the first half of fiscal 2020, we incurred $7.2 million, $3.1 million and $0.3 million of inventory-related charges at our Consumer, PCG, and CPG segments, respectively. During the second quarter of fiscal 2019, we incurred approximately $2.3 million, $1.0 million and $0.3 million of inventory-related charges at our PCG, Consumer and CPG segments, respectively. During the first half of fiscal 2019, we incurred $6.6 million, $1.3 million and $0.5 million of inventory-related charges at our PCG, Consumer and CPG segments, respectively. The fiscal 2019 inventory-related charges were partially offset by a favorable adjustment of approximately $0.2 million to the fiscal 2018 inventory write-off at our Consumer segment. All of the aforementioned inventory-related charges are recorded in cost of sales in our Consolidated Statements of Income. These inventory charges were the result of product line and SKU rationalization initiatives in connection with our overall plan of restructuring. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Nov. 30, 2019 | |
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. All derivative instruments are recognized in our Consolidated Balance Sheets and measured at fair value. Changes in the fair values of derivative instruments that do not qualify as hedges and/or any ineffective portion of hedges are recognized as a gain or (loss) in our Consolidated Statements of Income in the current period. Changes in the fair value of derivative instruments used effectively as cash flow hedges are recognized in other comprehensive income (loss), along with the change in the value of the hedged item. We do not hold or issue derivative instruments for speculative purposes. The valuation techniques utilized for establishing the fair values of assets and liabilities are based on observable and unobservable inputs. Observable inputs reflect readily obtainable data from independent sources, while unobservable inputs reflect management’s market assumptions. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value, as follows: Level 1 Inputs — Quoted prices for identical instruments in active markets. Level 2 Inputs — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3 Inputs — Instruments with primarily unobservable value drivers. The following tables present our assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy. (In thousands) Quoted in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value at November 30, 2019 Available-for-sale debt securities: U.S. Treasury and other government $ - $ 24,209 $ - $ 24,209 Corporate bonds 471 471 Total available-for-sale debt securities - 24,680 - 24,680 Trading and other equity securities: Mutual funds - foreign 36,251 36,251 Mutual funds - domestic 75,037 75,037 Total trading and other equity securities - 111,288 - 111,288 Contingent consideration (15,748 ) (15,748 ) Total $ - $ 135,968 $ (15,748 ) $ 120,220 (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, 2019 Available-for-sale debt securities: U.S. Treasury and other government $ - $ 24,547 $ - $ 24,547 Corporate bonds 462 462 Total available-for-sale debt securities - 25,009 - 25,009 Trading and other equity securities: Mutual funds - foreign 32,082 32,082 Mutual funds - domestic 67,739 67,739 Total trading and other equity securities - 99,821 - 99,821 Contingent consideration (21,551 ) (21,551 ) Total $ - $ 124,830 $ (21,551 ) $ 103,279 Our investments in available-for-sale debt securities and trading and other equity securities 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. The contingent consideration represents the estimated fair value of the additional variable cash consideration payable in connection with recent acquisitions that is contingent upon the achievement of certain performance milestones. We estimated the fair value using expected future cash flows over the period in which the obligation is expected to be settled, and applied a discount rate that appropriately captures a market participant's view of the risk associated with the obligation, which are considered to be Level 3 inputs. During the first half of fiscal 2020, we paid approximately $5.9 million for settlements of contingent consideration obligations relating to certain performance milestones that were established in prior periods and achieved during the current period. During the first half of fiscal 2019, we paid approximately $4.7 million for settlements of contingent consideration obligations relating to certain performance milestones that were established in prior periods and achieved during last year’s first half and recorded an increase in the accrual for approximately $2.7 million related to fair value adjustments. In the Consolidated Statements of Cash Flows, payments of acquisition-related contingent consideration for the amount recognized at fair value as of the acquisition date are reported in cash flows from financing activities, while payments of contingent consideration in excess of fair value are reported in cash flows from operating activities. 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, 2019 and May 31, 2019, 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 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, 2019 and May 31, 2019 are as follows: At November 30, 2019 (In thousands) Carrying Value Fair Value Cash and cash equivalents $ 208,173 $ 208,173 Marketable equity securities 97,798 97,798 Marketable debt securities 24,680 24,680 Long-term debt, including current portion 2,523,475 2,616,790 At May 31, 2019 (In thousands) Carrying Value Fair Value Cash and cash equivalents $ 223,168 $ 223,168 Marketable equity securities 87,525 87,525 Marketable debt securities 25,009 25,009 Long-term debt, including current portion 2,525,908 2,526,817 |
Derivatives and Hedging
Derivatives and Hedging | 6 Months Ended |
Nov. 30, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging | NOTE 6 — DERIVATIVES AND HEDGING Derivative Instruments and Hedging Activities We are exposed to market risks, such as changes in foreign currency exchange rates and interest rates. To manage the volatility related to these exposures, from time to time, we enter into various derivative transactions. We use various types of derivative instruments including forward contracts and swaps. We formally assess, designate and document, as a hedge of an underlying exposure, each qualifying derivative instrument that will be accounted for as an accounting hedge at inception. Additionally, we assess, both at inception and at least quarterly thereafter, whether the financial instruments used in the hedging transaction are effective at offsetting changes in either the fair values or cash flows of the underlying exposures. Net Investment Hedge In October 2017, as a means of mitigating the impact of currency fluctuations on our Euro investments in foreign entities, we executed a fair value hedge and two cross currency swaps, in which we will pay variable rate interest in Euros and receive fixed rate interest in U.S. Dollars with a combined notional amount of approximately €85.25 million ($100 million U.S. Dollar equivalent), and which have a maturity date of November 2022. This effectively converts a portion of our U.S. Dollar denominated fixed-rate debt to Euro denominated variable rate debt. The fair value hedge is recognized at fair value in our Consolidated Balance Sheets, while changes in the fair value of the hedge are recognized in interest expense in our Consolidated Statements of Income. We designated the swaps as net investment hedges of our net investment in our European operations under ASU 2017-12 and applied the spot method to these hedges. The changes in fair value of the derivative instruments that are designated and qualify as hedges of net investments in foreign operations are recognized in accumulated other comprehensive income (“AOCI”) to offset the changes in the values of the net investments being hedged. Amounts released from AOCI and reclassified into interest expense did not have a material impact on our Consolidated Financial Statements for any period presented. Derivatives Not Designated as Hedges At November 30, 2019, and May 31, 2019, we held one foreign currency forward contract designed to reduce our exposure to 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 contract has not been designated as a hedge; therefore, the changes in fair value of the derivative are recognized in earnings as a component of selling, general and administrative expenses (“SG&A”). Amounts recognized in earnings did not have a material impact on our Consolidated Financial Statements for any period presented. As of November 30, 2019 and May 31, 2019, the notional amounts of the forward contract held to purchase foreign currencies was $61.0 million and $38.7 million, respectively. Disclosure about Derivative Instruments All of our derivative assets and liabilities measured at fair value are classified as Level 2 within the fair value hierarchy. We determine the fair value of our derivatives based on valuation methods, which project future cash flows and discount the future amounts to present value using market based observable inputs, including interest rate curves, foreign currency rates, as well as future and basis point spreads, as applicable. The fair values of qualifying and non-qualifying instruments used in hedging transactions as of November 30, 2019 and May 31, 2019 are as follows: (in thousands) Fair Value Derivatives Designated as Hedging Instruments Balance Sheet Location November 30, 2019 May 31, 2019 Assets: Interest Rate Swap (Fair Value) Other Current Assets $ 239 $ 513 Cross Currency Swap (Net Investment) Other Current Assets 2,198 2,482 Cross Currency Swap (Net Investment) Other Assets (Long-Term) 5,136 6,163 Interest Rate Swap (Fair Value) Other Assets (Long-Term) 882 - Liabilities: Interest Rate Swap (Fair Value) Other Accrued Liabilities - 230 Cross Currency Swap (Net Investment) Other Accrued Liabilities 82 - Cross Currency Swap (Net Investment) Other Long-Term Liabilities 1,445 4,276 (in thousands) Fair Value Derivatives Not Designated as Hedging Instruments Balance Sheet Location November 30, 2019 May 31, 2019 Assets: Foreign Currency Exchange Other Current Assets $ 114 $ 51 |
Investment (Income) Expense, Ne
Investment (Income) Expense, Net | 6 Months Ended |
Nov. 30, 2019 | |
Other Income And Expenses [Abstract] | |
Investment (Income) Expense, Net | NOTE 7 — INVESTMENT Investment (income) expense, net, consists of the following components: Three Months Ended Six Months Ended November 30, November 30, November 30, November 30, (In thousands) 2019 2018 2019 2018 Interest (income) $ (1,429 ) $ (828 ) $ (2,776 ) $ (1,732 ) Net (gain) loss on marketable securities (6,939 ) 8,520 (10,479 ) 8,134 Dividend (income) (437 ) (659 ) (935 ) (1,802 ) Investment (income) expense, net $ (8,805 ) $ 7,033 $ (14,190 ) $ 4,600 Net (Gain) Loss on Marketable Securities Of the $6.9 million in net gains on marketable securities recognized during the second quarter of fiscal 2020, approximately $6.0 million related to unrealized gains on marketable equity securities and approximately $1.0 million was related to unrealized gains on trading securities. Additionally, of the $10.5 million in net gains on marketable securities recognized during the first half of fiscal 2020, approximately $8.9 million related to unrealized gains on marketable equity securities and $1.7 million in unrealized gains on trading securities. During the second quarter of fiscal 2019, we recognized gross realized losses on sales of marketable securities of $1.0 million and unrealized losses on trading securities of $1.0 million. For the first half of fiscal 2019, we recognized realized gains and losses on sales of securities of $0.2 million and $1.2 million, respectively, and unrealized gains and losses on trading securities of $0.5 million and $1.1 million, respectively. During the three and six-month periods ended November 30, 2018, we recognized $6.5 million in unrealized losses on marketable equity securities. |
Other Expense, Net
Other Expense, Net | 6 Months Ended |
Nov. 30, 2019 | |
Other Income And Expenses [Abstract] | |
Other Expense, Net | NOTE 8 — Other expense, net, consists of the following components: Three Months Ended Six Months Ended November 30, November 30, November 30, November 30, (In thousands) 2019 2018 2019 2018 Royalty (income) expense, net $ (360 ) $ 63 $ (94 ) $ 66 (Income) loss related to unconsolidated equity affiliates (65 ) (48 ) 25 (166 ) Pension non-service costs 1,550 346 2,979 774 Loss on extinguishment of debt (a) - 3,051 - 3,051 Loss on divestiture (b) 826 - 826 - Other expense, net $ 1,951 $ 3,412 $ 3,736 $ 3,725 (a) In connection with the redemption of all our outstanding 2.25% convertible senior notes in November 2018, we recognized a loss of $3.1 million, due to the fair value measurement of the instrument on the date of conversion. (b) Reflects the loss incurred upon divestiture of a contracting business located in Australia, which had reported through our PCG segment. |
Income Taxes
Income Taxes | 6 Months Ended |
Nov. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 9 — INCOME TAXES The effective income tax rate of 24.0% for the three months ended November 30, 2019 compares to the effective income tax rate of 26.2% for the three months ended November 30, 2018. The effective income tax rates for the three months ended November 30, 2019 and 2018 reflect variances from the 21% statutory rate due primarily to the unfavorable impact of state and local income taxes and the net tax on foreign subsidiary income resulting from the global intangible low-taxed income provisions, partially offset by tax benefits related to equity compensation. Additionally, the effective income tax rate for the three months ended November 30, 2019 reflects favorable adjustments related to certain valuation allowances and reserves for uncertain tax positions. The effective income tax rate of 24.8% for the six months ended November 30, 2019 compares to the effective income tax rate of 24.7% for the six months ended November 30, 2018. The effective income tax rates for the six months ended November 30, 2019 and 2018 reflect variances from the 21% statutory rate due primarily to the unfavorable impact of state and local income taxes and the net tax on foreign subsidiary income resulting from the global intangible low-taxed income provisions, partially offset by tax benefits related to equity compensation. Our deferred tax liability for unremitted foreign earnings was $18.8 million as of November 30, 2019, which represents our estimate of the foreign tax cost associated with the deemed remittance of $414.7 million of foreign earnings that are not considered to be permanently reinvested. We have not provided for foreign withholding or income taxes on the remaining foreign subsidiaries’ undistributed earnings because such earnings have been retained and reinvested by the subsidiaries as of November 30, 2019. Accordingly, no provision has been made for foreign withholding or income taxes, which may become payable if the remaining undistributed earnings of foreign subsidiaries were remitted to us as dividends. |
Inventories
Inventories | 6 Months Ended |
Nov. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 10 — INVENTORIES Inventories, net of reserves, were composed of the following major classes: (In thousands) November 30, 2019 May 31, 2019 Raw material and supplies $ 294,212 $ 296,493 Finished goods 589,510 545,380 Total Inventory, Net of Reserves $ 883,722 $ 841,873 |
Stock Repurchase Program
Stock Repurchase Program | 6 Months Ended |
Nov. 30, 2019 | |
Equity [Abstract] | |
Stock Repurchase Program | NOTE 11 — 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. As announced on November 28, 2018, our goal is to return $1.0 billion in capital to stockholders by May 31, 2021 through share repurchases. On April 16, 2019, after taking into account share repurchases under our existing stock repurchase program to date, our Board of Directors authorized the repurchase of the remaining $600.0 million in value of RPM International Inc. common stock by May 31, 2021. As a result, we may repurchase shares from time to time in the open market or in private transactions at various times and in amounts and for prices that our management deems appropriate, subject to insider trading rules and other securities law restrictions. The timing of our purchases will depend upon prevailing market conditions, alternative uses of capital and other factors. We may limit or terminate the repurchase program at any time. During the three months ended November 30, 2019, we did not repurchase any shares of our common stock under this program. During the three months ended November 30, 2018, we repurchased 1,144,952 shares of our common stock at a cost of approximately $75.0 million, or an average cost of $65.50 per share, under this program. During the six months ended November 30, 2019, we repurchased 1,655,616 shares of our common stock at a cost of approximately $100.0 million, or an average cost of $60.40 per share, under this program. During the six months ended November 30, 2018, we repurchased 1,248,398 shares of our common stock at a cost of approximately $82.0 million, or an average cost of $65.68 per share, under this program. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Nov. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 12 — EARNINGS PER SHARE The following table sets forth the reconciliation of the numerator and denominator of basic and diluted earnings per share for the three- and six-month periods ended November 30, 2019 and 2018. For the three and six months ended November 30, 2019, and the three months ended November 30, 2018, basic and diluted earnings per share was calculated using the two-class method. For the six months ended November 30, 2018, basic earnings per share was calculated using the two-class method and diluted earnings per share was calculated using the treasury method. Three Months Ended Six Months Ended November 30, November 30, November 30, November 30, (In thousands, except per share amounts) 2019 2018 2019 2018 Numerator for earnings per share: Net income attributable to RPM International Inc. stockholders $ 77,030 $ 49,224 $ 183,218 $ 118,988 Less: Allocation of earnings and dividends to participating securities (548 ) (460 ) (1,167 ) (936 ) Net income available to common shareholders - basic 76,482 48,764 182,051 118,052 Add: Undistributed earnings reallocated to unvested shareholders 1 - 3 - Add: Allocation of earnings and dividends to participating securities - - - 936 Net income available to common shareholders - diluted $ 76,483 $ 48,764 $ 182,054 $ 118,988 Denominator for basic and diluted earnings per share: Basic weighted average common shares 128,393 131,058 128,639 131,467 Average diluted options and awards 686 609 655 1,811 Total shares for diluted earnings per share (1) 129,079 131,667 129,294 133,278 Earnings Per Share of Common Stock Attributable to RPM International Inc. Stockholders: Basic Earnings Per Share of Common Stock $ 0.60 $ 0.37 $ 1.42 $ 0.90 Diluted Earnings Per Share of Common Stock $ 0.59 $ 0.37 $ 1.41 $ 0.89 ( 1 ) Restricted shares totaling 178,000 for the six months ended November 30, 2019, were excluded from the calculation of diluted earnings per share as their effect would have been anti-dilutive. There were no shares of restricted stock identified as being anti-dilutive for the three months ended November 30, 2019, or the three or six months ended November 30, 2018. Stock appreciation rights (SARs) totaling 790,000 for the six months ended November 30, 2019 and 480,000 and 890,000 for the three and six months ended November 30, 2018, respectively, were excluded from the calculation of diluted earnings per share as their effect would have been anti-dilutive. There were no SARs identified as being anti-dilutive for the three months ended November 30, 2019. |
Leases
Leases | 6 Months Ended |
Nov. 30, 2019 | |
Leases [Abstract] | |
Leases | NOTE 13—LEASES We have leases for manufacturing facilities, warehouses, office facilities, equipment, and vehicles, which are primarily classified and accounted for as operating leases. We have a small portfolio of finance leases, which are not material to our Consolidated Financial Statements. Some leases include one or more options to renew, generally at our sole discretion, with renewal terms that can extend the lease term from one to five years or more. In addition, certain leases contain termination options, where the rights to terminate are held by either us, the lessor, or both parties. These options to extend or terminate a lease are included in the lease terms when it is reasonably certain that we will exercise that option. We have made an accounting policy election not to recognize ROU assets and lease liabilities for leases with a term of twelve months or less, with no purchase option that we are reasonably certain to exercise. ROU assets and lease liabilities are recognized based on the present value of the fixed and in-substance fixed lease payments over the lease term at the commencement date. The ROU assets also include any initial direct costs incurred and lease payments made at or before the commencement date and are reduced by lease incentives. We use our incremental borrowing rate as the discount rate to determine the present value of the lease payments for leases, as our leases do not have readily determinable implicit discount rates. Our incremental borrowing rate is the rate of interest that we would have to borrow on a collateralized basis over a similar term and amount in a similar economic environment. We determine the incremental borrowing rates for our leases by adjusting the local risk-free interest rate with a credit risk premium corresponding to our credit rating. Operating lease cost is recognized on a straight-line basis over the lease term. Finance lease cost is recognized as a combination of the amortization expense for the ROU assets and interest expense for the outstanding lease liabilities using the discount rate discussed above. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Certain vendors have the right to declare that we are in default of our agreements if any such vendor, including the lessors under its vehicle leases, determines that a change in our financial condition poses a substantially increased credit risk. Our lease agreements do not contain any significant residual value guarantees or material restrictive covenants. I ncome from subleases was not significant for any period presented . During the three months ended November 30, 2019, we incurred lease costs of $21.5 million, which is primarily comprised of operating lease cost of $17.8 million and other costs of $3.7 million which include costs for our finance leases, short-term leases, and variable lease payments. During the six months ended November 30, 2019, we incurred lease costs of $42.2 million, which is primarily comprised of operating lease costs of $35.9 million and other costs of $6.3 million, which include costs for our finance leases, short-term leases and variable lease payments. For the three and six months ended November 30, 2019, we paid approximately $17.1 million and $34.0 million, respectively, for operating lease obligations. These payments are included in operating cash flows. In addition, during the six months ended November 30, 2019, we recognized ROU assets for $41.1 million in exchange for new operating lease obligations. At November 30, 2019, the weighted-average remaining lease term under our operating leases was 9.2 years, while the weighted-average discount rate for our operating leases was approximately 3.8%. The following represents our future undiscounted cash flows for each of the next five years and thereafter and reconciliation to the lease liabilities, as of November 30, 2019: Year ending May 31, Operating Leases (In thousands) 2020 (excluding the six months ended November 30) $ 31,980 2021 55,648 2022 44,471 2023 34,573 2024 28,663 Thereafter 162,830 Total lease payments $ 358,165 Less imputed interest 63,300 Total present value of lease liabilities $ 294,865 As of November 30, 2019, our current lease liability balance was $51.0 million and recorded within Other Accrued Liabilities on our Consolidated Balance Sheet. Following is a summary of our future minimum lease commitments, as determined under ASC 840, for all non-cancelable lease agreements, for each of the next five years and in the aggregate, as of May 31, 2019: Year ending May 31, Operating Leases (In thousands) 2020 $ 59,163 2021 49,731 2022 40,339 2023 32,798 2024 27,716 Thereafter 119,607 Total lease payments $ 329,354 Related party leases and subleases were not significant during any period presented, and therefore are not disclosed. Further, we do not have leases that have not yet commenced, which would create significant rights and obligations for us, including any involvement with the construction or design of the underlying asset. |
Pension Plans
Pension Plans | 6 Months Ended |
Nov. 30, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Pension Plans | NOTE 14 — PENSION PLANS We offer defined benefit pension plans, defined contribution pension plans, and various postretirement benefit plans. The following tables provide the retirement-related benefit plans’ impact on income before income taxes for the three and six months ended November 30, 2019 and 2018: U.S. Plans Non-U.S. Plans Three Months Ended Three Months Ended Pension Benefits November 30, November 30, November 30, November 30, (In thousands) 2019 2018 2019 2018 Service cost $ 9,856 $ 9,382 $ 1,391 $ 1,219 Interest cost 5,104 5,497 1,193 1,399 Expected return on plan assets (8,573 ) (8,467 ) (1,834 ) (2,051 ) Amortization of: Prior service cost (credit) 2 29 (9 ) (8 ) Net actuarial losses recognized 4,629 3,272 523 319 Net Periodic Benefit Cost $ 11,018 $ 9,713 $ 1,264 $ 878 U.S. Plans Non-U.S. Plans Three Months Ended Three Months Ended Postretirement Benefits November 30, November 30, November 30, November 30, (In thousands) 2019 2018 2019 2018 Service cost $ - $ - $ 429 $ 392 Interest cost 37 48 282 291 Amortization of: Prior service (credit) (55 ) (55 ) - - Net actuarial (gains) losses recognized (16 ) (6 ) 158 115 Net Periodic Benefit (Credit) Cost $ (34 ) $ (13 ) $ 869 $ 798 U.S. Plans Non-U.S. Plans Six Months Ended Six Months Ended November 30, November 30, November 30, November 30, Pension Benefits 2019 2018 2019 2018 (In thousands) Service cost $ 19,712 $ 18,764 $ 2,782 $ 2,438 Interest cost 10,208 10,994 2,386 2,798 Expected return on plan assets (17,146 ) (16,934 ) (3,668 ) (4,102 ) Amortization of: Prior service cost (credit) 4 58 (18 ) (16 ) Net actuarial losses recognized 9,258 6,544 1,046 638 Net Periodic Benefit Cost $ 22,036 $ 19,426 $ 2,528 $ 1,756 U.S. Plans Non-U.S. Plans Six Months Ended Six Months Ended November 30, November 30, November 30, November 30, Postretirement Benefits 2019 2018 2019 2018 (In thousands) Service cost $ - $ - $ 858 $ 784 Interest cost 74 96 564 582 Amortization of: Prior service (credit) (110 ) (110 ) - - Net actuarial (gains) losses recognized (32 ) (12 ) 316 230 Net Periodic Benefit (Credit) Cost $ (68 ) $ (26 ) $ 1,738 $ 1,596 Due to slightly lower discount rates, net periodic pension and postretirement cost for fiscal 2020 is higher than our fiscal 2019 expense. 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, 2019 that we expected to contribute approximately $0.9 million to our retirement plans in the U.S. and approximately $6.4 million to plans outside the U.S. during the current fiscal year, and as of November 30, 2019, those amounts remain unchanged. |
Contingencies and Other Accrued
Contingencies and Other Accrued Losses | 6 Months Ended |
Nov. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingencies and Other Accrued Losses | NOTE 15 — CONTINGENCIES AND OTHER ACCRUED LOSSES We provide, through our wholly owned insurance subsidiaries, certain insurance coverage, primarily product liability coverage, to our other subsidiaries. Excess coverage is provided by third-party insurers. Our 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, 2019, 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 SG&A. 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, November 30, November 30, 2019 2018 2019 2018 (In thousands) Beginning Balance $ 10,069 $ 10,585 $ 10,414 $ 11,721 Deductions (1) (5,721 ) (6,660 ) (11,380 ) (13,274 ) Provision charged to expense 6,207 5,938 11,521 11,416 Ending Balance $ 10,555 $ 9,863 $ 10,555 $ 9,863 (1) Primarily claims paid during the year. In addition, like other companies participating in similar lines of business, some of our subsidiaries are involved in several proceedings relating to environmental matters. It is our policy to accrue remediation costs when it is probable that such efforts will be required and the related costs can be reasonably estimated. In general, our environmental accruals are undiscounted liabilities, which are exclusive of claims against third parties, and are not material to our financial statements during any of the periods presented. Carboline Company previously was identified as a potentially responsible party in connection with a matter filed on behalf of the U.S. EPA claiming that Carboline Company, among other potentially responsible parties, violated Section 107 of the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”) and seeking reimbursement for response costs incurred in connection with the release or threatened release of hazardous substances at the Lammers Barrel Superfund Site in Beavercreek, Ohio. Subsequent to the end of the current quarter, Carboline Company agreed in principle to settle this matter for $1.3 million, which amount is subject to final approval and court entry of the proposed consent decree relating to this matter. 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 investigation, 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. Both we and our General Counsel filed motions to dismiss the complaint on February 24, 2017. Those motions to dismiss the complaint were denied by the Court on September 29, 2017. We and our General Counsel filed answers to the complaint on October 16, 2017. Formal discovery commenced in January 2018 and closed as of June 3, 2019, other than one remaining discovery dispute. The parties engaged in written discovery, and several fact witnesses were deposed. The dispositive motion briefing schedule was vacated by the Court on July 2, 2019, due to the remaining discovery dispute, and will be reset once this dispute is fully resolved. We intend to continue to contest the allegations in the complaint vigorously. Also in connection with the foregoing, a stockholder derivative action was filed in the United States District Court, Northern District of Ohio, Eastern Division, against certain of our directors and officers. The court has stayed this stockholder derivative action pending the completion of the SEC enforcement action. 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. |
Revenue
Revenue | 6 Months Ended |
Nov. 30, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | NOTE 16 – REVENUE 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 disaggregate revenues from the sales of our products and services based upon geographical location by each of our reportable segments, which are aligned by similar economic factors, trends and customers, which best depict the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. See Note 17, “Segment Information,” for further details regarding our disaggregated revenues as well as a description of each of the unique revenue streams related to each of our four reportable segments. Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. The majority of our revenue is recognized at a point in time. However, we also record revenues generated under construction contracts, mainly in connection with the installation of specialized roofing and flooring systems and related services. For certain polymer flooring installation projects, we account for our revenue using the output method, as we consider square footage of completed flooring to be the best measure of progress toward the complete satisfaction of the performance obligation. In contrast, for certain of our roofing installation projects, we account for our revenue using the input method, as that method was the best measure of performance as it considers costs incurred in relation to total expected project costs, which essentially represents the transfer of control for roofing systems to the customer. In general, for our construction contracts, we record contract revenues and related costs as our contracts progress on an over-time model. We have elected to apply the practical expedient to recognize revenue net of allowances for returns and any taxes collected from customers, which are subsequently remitted to governmental authorities. Payment terms and conditions vary by contract type, although our customers’ payment terms generally include a requirement to pay within 30 to 60 days of fulfilling our performance obligations. In instances where the timing of revenue recognition differs from the timing of invoicing, we have determined that our contracts generally do not include a significant financing component. We have elected to apply the practical expedient to treat all shipping and handling costs as fulfillment costs as a significant portion of these costs are incurred prior to control transfer. Significant Judgments Our contracts with customers may include promises to transfer multiple products and/or services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. For example, judgment is required to determine whether products sold in connection with the sale of installation services are considered distinct and accounted for separately, or not distinct and accounted for together with installation services and recognized over time. We provide customer rebate programs and incentive offerings, including special pricing and co-operative advertising arrangements, promotions and other volume-based incentives. These customer programs and incentives are considered variable consideration. We include in revenue variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the variable consideration is resolved. In general, this determination is made based upon known customer program and incentive offerings at the time of sale, and expected sales volume forecasts as it relates to our volume-based incentives. This determination is updated each reporting period. Certain of our contracts include contingent consideration that is receivable only upon the final inspection and acceptance of a project. We include estimates of such variable consideration in our transaction price. Based on historical experience, we consider the probability-based expected value method appropriate to estimate the amount of such variable consideration. Our products are generally sold with a right of return and we may provide other credits or incentives, which are accounted for as variable consideration when estimating the amount of revenue to recognize. Returns and credits are estimated at contract inception and updated at the end of each reporting period as additional information becomes available. We record a right of return liability to accrue for expected customer returns. Historical actual returns are used to estimate future returns as a percentage of current sales. Obligations for returns and refunds were not material individually or in the aggregate. We offer assurance type warranties on our products as well as separately sold warranty contracts. Revenue related to warranty contracts that are sold separately is recognized over the life of the warranty term. Warranty liabilities for our assurance type warranties are discussed further in Note 15, “Contingencies and Other Accrued Losses.” Contract Balances Timing of revenue recognition may differ from the timing of invoicing customers. Our contract assets are recorded for products and services that have been provided to our customer but have not yet been billed, and are included in prepaid expenses and other current assets in our consolidated balance sheets. Our short-term contract liabilities consist of advance payments, or deferred revenue, and are included in other accrued liabilities in our consolidated balance sheets. Accounts receivable, net of allowances, and net contract assets (liabilities) consisted of the following: November 30, 2019 August 31, 2019 $ Change % Change (In thousands, except percents) Accounts receivable, less allowance $ 1,047,813 $ 1,109,259 $ (61,446 ) -5.5 % Contract assets $ 18,959 $ 26,434 $ (7,475 ) -28.3 % Contract liabilities - short-term (25,205 ) (27,402 ) 2,197 -8.0 % Net Contract Liabilities $ (6,246 ) $ (968 ) $ (5,278 ) 545.2 % (In thousands, except percents) November 30, 2019 May 31, 2019 $ Change % Change Accounts receivable, less allowance $ 1,047,813 $ 1,232,350 $ (184,537 ) -15.0 % Contract assets $ 18,959 $ 21,628 $ (2,669 ) -12.3 % Contract liabilities - short-term (25,205 ) (25,896 ) 691 -2.7 % Net Contract Liabilities $ (6,246 ) $ (4,268 ) $ (1,978 ) 46.3 % The allowance for doubtful accounts reflects our best estimate of probable losses inherent in the accounts receivable balance. We determine the allowance based on known troubled accounts, historical experience, and other currently available evidence. The $5.3 million change in our net contract liabilities from August 31, 2019 to November 30, 2019 and the $2.0 million change in our net contract liabilities from May 31, 2019 to November 30, 2019 resulted primarily from the timing of construction jobs in progress. During the first quarter of fiscal 2020, we performed a substantial amount of work on construction projects and as such, our unbilled revenue was highe r at August 31 , 2019 than it was at May 31, 2019 . During the second quarter of fiscal 2020, our unbilled revenues declined as projects and billings were completed . We also record long-term deferred revenue, which amounted to $ 67.1 million , $ 65.6 million and $ 66.5 million as of November 30 , 2019 , August 31, 2019 and May 31, 201 9 , respectively. The long-term portion of deferred revenue is related to warranty contracts and is included in other long-term liabilities in our consolidated balance sheets. We have elected to adopt the practical expedient to not disclose the aggregate amount of transaction price allocated to performance obligations that are unsatisfied as of the end of the reporting period for performance obligations that are part of a contract with an original expected duration of one year or less. We recognize an asset for the incremental costs of obtaining a contract with a customer if we expect the benefit of those costs to be longer than one year. As our contract terms are primarily one year or less in duration, we have elected to apply a practical expedient to expense costs as incurred for costs to obtain a contract with a customer when the amortization period would have been one year or less. These costs include our internal sales force compensation program and certain incentive programs as we have determined annual compensation is commensurate with annual sales activities. |
Segment Information
Segment Information | 6 Months Ended |
Nov. 30, 2019 | |
Segment Reporting [Abstract] | |
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 |
Goodwill
Goodwill | 6 Months Ended |
Nov. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | NOTE 18 — GOODWILL We account for goodwill and other intangible assets in accordance with the provisions of ASC 350 and account for business combinations using the acquisition method of accounting and, accordingly, the assets and liabilities of the entities acquired are recorded at their estimated fair values at the acquisition date. Goodwill represents the excess of the purchase price paid over the fair value of net assets acquired, including the amount assigned to identifiable intangible assets. We assess goodwill for impairment annually during the fourth quarter, or more frequently, if events and circumstances indicate impairment may have occurred. We test goodwill for impairment at the reporting unit level. Goodwill is assigned to reporting units that are expected to benefit from the synergies of the business combination as of the acquisition date. Once goodwill has been allocated to the reporting units, it no longer retains its identification with a particular acquisition and becomes identified with the reporting unit in its entirety. Accordingly, the fair value of the reporting unit as a whole is available to support the recoverability of its goodwill. We evaluate our reporting units when changes in our operating structure occur, and if necessary, reassign goodwill using a relative fair value allocation approach. Subsequent to our prior annual impairment test as of the first day of our fourth fiscal quarter, the composition of our reportable segments was revised, as further discussed in Note 17, “Segment Information.” Prior to implementing the revised segment reporting structure beginning in fiscal 2020, our previously disclosed Industrial Segment comprised two operating segments, the CPG operating segment and the PCG operating segment. Each of these operating segments comprised several reporting units, all of which were tested during our last annual goodwill impairment test during the fourth quarter of fiscal 2019. Also, in connection with our 2020 Map to Growth initiative, we realigned certain businesses and management structure within our Specialty segment. As such, our former Wood Finishes Group reporting unit was split into two separate reporting units: Guardian and Wood Finishes Group. Additionally, our former Kop-Coat Group reporting unit was split into two reporting units: Kop-Coat Industrial Protection Products and Kop-Coat Group. We performed a goodwill impairment test for each of the new reporting units upon the change in reportable segments, business realignment and management structure using a quantitative assessment. We concluded that the estimated fair values exceeded the carrying values for these new reporting units, and accordingly, no indications of impairment were identified as a result of these changes during the first quarter of fiscal 2020. The following table summarizes the changes in the carrying amount of goodwill, by reportable segment, for the periods presented: CPG PCG Industrial Consumer Specialty (In thousands) Segment Segment Segment Segment Segment Total Balance as of May 31, 2019 $ - $ - $ 526,419 $ 499,387 $ 219,956 $ 1,245,762 Allocation to new segments 407,429 185,259 (526,419 ) (66,269 ) - Acquisitions 14,689 14,689 Translation adjustments (3,578 ) (2,577 ) (3,568 ) (910 ) (10,633 ) Balance as of August 31, 2019 418,540 182,682 - 495,819 152,777 1,249,818 Acquisitions 3,023 3,023 Translation adjustments 1,198 2,683 2,235 599 6,715 Balance as of November 30, 2019 $ 419,738 $ 188,388 $ - $ 498,054 $ 153,376 $ 1,259,556 |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 6 Months Ended |
Nov. 30, 2019 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Pronouncements | NEW ACCOUNTING PRONOUNCEMENTS 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 are required to recognize a right-of-use (“ROU”) asset representing our right to use an underlying asset and a lease liability representing our obligation to make lease payments over the lease term, 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. In March 2018, the FASB approved an alternative transition method to the modified retrospective approach, which eliminates the requirement to restate prior period financial statements and requires the cumulative effect of the retrospective allocation to be recorded as an adjustment to the opening balance of retained earnings at the date of adoption. We have adopted the new leasing standard on the required effective date of June 1, 2019 using the alternative transition method as described above. Results for reporting periods beginning on June 1, 2019 are presented under Topic 842, while prior period amounts continue to be reported and disclosed in accordance with our historical accounting treatment under Accounting Standards Codification (“ASC”) 840, “Leases (ASC 840).” We elected to apply the package of practical expedients permitted under the ASC 842 transition guidance. Accordingly, we did not reassess whether any expired or expiring contracts contain leases, lease classification between finance and operating leases, and the recognition of initial direct costs of leases commencing before the effective date. We also applied the practical expedient to not separate lease and non-lease components to existing leases, as well as new leases through transition. However, we did not elect the hindsight practical expedient to determine the lease term for existing leases. As a result of our adoption procedures, we have determined that the new guidance had a material impact on our Consolidated Balance Sheets and did not have a material effect on our Consolidated Statements of Income, Consolidated Statements of Cash Flows or our debt covenants. The effects of our transition to ASC 842 resulted in no cumulative adjustment to retained earnings in the period of adoption. Refer to Note 13, “Leases,” for additional information. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses,” which requires an organization to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Additionally, the standard amends the current available-for-sale security other-than-temporary impairment model for debt securities. The guidance is effective for fiscal years beginning after December 15, 2019 and for interim periods therein. Early adoption is permitted beginning after December 15, 2018. We are currently reviewing the provisions of this new pronouncement, but do not expect our adoption of this guidance to have a material impact on our Consolidated Financial Statements. In August 2018, the SEC issued Final Rule Release No. 33-10532, “Disclosure Update and Simplification,” which makes a number of changes meant to simplify interim disclosures. The new rule requires a presentation of changes in stockholders’ equity and noncontrolling interest in the form of a reconciliation, either as a separate financial statement or in the notes to the financial statements, for the current and comparative year-to-date interim periods. In July 2019, the FASB issued ASU 2019-07, “ Codification Updates to SEC Sections – Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10532, Disclosure Update and Simplification, and Nos. 33-10231 and 33-10442, Investment Company Reporting Modernization and Miscellaneous Updates (SEC Update). ” ASU 2019-07 codifies Final Rule Release No. 33-10532. The additional elements of th is release did not have a material impact on our overall Consolidated Financial Statements. We adopted the new disclosure requirements in our Form 10-Q for the period ended February 28, 2019. In January 2017, the FASB issued ASU 2017-04, “Simplifying the Test for Goodwill Impairment,” to eliminate step two from the goodwill impairment test in order to simplify the subsequent measurement of goodwill. The guidance is effective for fiscal years beginning after December 15, 2019. Early application is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. Adoption of this guidance is not expected to have a material impact on our Consolidated Financial Statements. In February 2018, the FASB issued ASU 2018-02, “Income Statement (Topic 220), Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” which allows for an entity to reclassify the tax effects of the U.S. Tax Cuts and Jobs Act of 2017 (“Tax Act”) that were previously recorded in accumulated comprehensive income to retained earnings. The adoption of this new guidance, effective June 1, 2019, did not have a material effect on our Consolidated Financial Statements as we did not elect the option to reclassify to retained earnings the tax effects resulting from the Tax Act that were previously recorded in accumulated other comprehensive income. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820), – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement,” which makes a number of changes meant to add, modify or remove certain disclosure requirements associated with the movement amongst or hierarchy associated with Level 1, Level 2 and Level 3 fair value measurements. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted upon issuance of the update. We do not expect our adoption of this guidance to have a material impact on our Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-14, “Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20), Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans,” which makes a number of changes meant to add, modify or remove certain disclosure requirements associated with employers that sponsor defined benefit or other postretirement plans. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted for all entities and the amendments in this update are required to be applied on a retrospective basis to all periods presented. We are currently reviewing the provisions of this new pronouncement, but do not expect our adoption of this guidance to have a material impact on our Consolidated Financial Statements. In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740),” which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption of the amendments is permitted, including adoption in any interim period for which financial statements have not yet been issued. Depending on the amendment, adoption may be applied on the retrospective, modified retrospective or prospective basis. We are currently reviewing the provisions of this new pronouncement, but do not expect our adoption of this guidance to have a material impact on our Consolidated Financial Statements. |
Restructuring (Tables)
Restructuring (Tables) | 6 Months Ended |
Nov. 30, 2019 | |
Restructuring And Related Activities [Abstract] | |
Summary of Charges Recorded in Connection with Restructuring by Reportable Segment | Following is a summary of the charges recorded in connection with restructuring by reportable segment: Three Months Ended Six Months Ended Cumulative Costs Total Expected (in thousands) November 30, 2019 November 30, 2019 to Date Costs Construction Products Group (“CPG”) Segment: Severance and benefit costs (a) $ 1,447 $ 1,607 $ 12,836 $ 22,146 Facility closure and other related costs 110 798 3,767 4,597 Other asset write-offs 39 39 1,629 2,151 Total Charges $ 1,596 $ 2,444 $ 18,232 $ 28,894 Performance Coatings Group (“PCG”) Segment: Severance and benefit costs (b) $ 431 $ 2,931 $ 9,344 $ 14,765 Facility closure and other related costs 636 745 4,219 6,638 Other asset write-offs 172 172 523 528 Total Charges $ 1,239 $ 3,848 $ 14,086 $ 21,931 Consumer Group (“Consumer”) Segment: Severance and benefit costs (c) $ 780 $ 1,547 $ 8,925 $ 12,424 Facility closure and other related costs 344 860 7,552 9,352 Other asset write-offs - - 25 25 Total Charges $ 1,124 $ 2,407 $ 16,502 $ 21,801 Specialty Products Group (“Specialty”) Segment: Severance and benefit costs (d) $ 48 $ 414 $ 5,750 $ 10,640 Facility closure and other related costs 731 2,190 3,434 6,697 Other asset write-offs 40 104 1,107 1,334 Total Charges $ 819 $ 2,708 $ 10,291 $ 18,671 Corporate/Other Segment: Severance and benefit costs $ 23 $ 16 $ 12,136 $ 12,136 Total Charges $ 23 $ 16 $ 12,136 $ 12,136 Consolidated: Severance and benefit costs $ 2,729 $ 6,515 $ 48,991 $ 72,111 Facility closure and other related costs 1,821 4,593 18,972 27,284 Other asset write-offs 251 315 3,284 4,038 Total Charges $ 4,801 $ 11,423 $ 71,247 $ 103,433 (a) Severance and benefit costs are associated with the elimination of 25 positions and 46 positions during the three and six months ended November 30, 2019, respectively. (b) Severance and benefit costs are associated with the elimination of 18 positions and 69 positions during the three and six months ended November 30, 2019, respectively. (c) Severance and benefit costs are associated with the elimination of 9 positions and 11 positions during the three and six months ended November 30, 2019, respectively. (d) Severance and benefit costs are associated with the elimination of 49 positions and 59 positions during the three and six months ended November 30, 2019, respectively. Three Months Ended Six Months Ended (in thousands) November 30, 2018 November 30, 2018 Construction Products Group (“CPG”) Segment: Severance and benefit costs (e) $ 3,574 $ 5,993 Facility closure and other related costs 384 397 Other asset write-offs 3 368 Total Charges $ 3,961 $ 6,758 Performance Coatings Group (“PCG”) Segment: Severance and benefit costs (f) $ 364 $ 4,769 Facility closure and other related costs 483 906 Other asset write-offs 146 359 Total Charges $ 993 $ 6,034 Consumer Group (“Consumer”) Segment: Severance and benefit costs (g) $ 76 $ 1,095 Facility closure and other related costs 105 105 Other asset write-offs - - Total Charges $ 181 $ 1,200 Specialty Products Group (“Specialty”) Segment: Severance and benefit costs (h) $ 1,458 $ 3,678 Facility closure and other related costs 65 65 Other asset write-offs 5 5 Total Charges $ 1,528 $ 3,748 Corporate/Other Segment: Severance and benefit costs (i) $ 1,061 $ 10,060 Total Charges $ 1,061 $ 10,060 Consolidated: Severance and benefit costs $ 6,533 $ 25,595 Facility closure and other related costs 1,037 1,473 Other asset write-offs 154 732 Total Charges $ 7,724 $ 27,800 ( e ) Severance and benefit costs are associated with the elimination of 37 positions and 68 positions during the three and six months ended November 30, 2018, respectively. Additionally, $0.2 million included in the charges incurred during the six months ended November 30, 2018 are associated with the prior elimination of one position within the legal function during fiscal 2018. ( f ) Severance and benefit costs are associated with the elimination of 17 positions and 102 positions during the three and six months ended November 30, 2018, respectively. ( g ) Severance and benefit costs are associated with the elimination of 9 positions during the six months ended November 30, 2018. ( h ) Severance and benefit costs are associated with the elimination of 95 positions and 120 positions during the three and six months ended November 30, 2018, respectively. (i) Reflects charges related to the severance of two corporate executives, as well as accelerated vesting of equity awards for two corporate executives, four Specialty segment executives and three CPG segment executives in connection with the aforementioned restructuring activities. |
Summary of Activity in Restructuring Reserves | A summary of the activity in the restructuring reserves related to our 2020 MAP to Growth is as follows: (in thousands) Severance and Benefits Costs Facility Closure and Other Related Costs Other Asset Write-Offs Total Balance at August 31, 2019 $ 2,946 $ 9,430 $ - $ 12,376 Additions charged to expense 2,729 1,821 251 4,801 Cash payments charged against reserve (2,109 ) (5,016 ) - (7,125 ) Non-cash charges included above (j) - (155 ) (251 ) (406 ) Balance at November 30, 2019 $ 3,566 $ 6,080 $ - $ 9,646 (in thousands) Severance and Benefits Costs Facility Closure and Other Related Costs Other Asset Write-Offs Total Balance at June 1, 2019 $ 4,837 $ 7,857 $ - 12,694 Additions charged to expense 6,515 4,593 315 11,423 Cash payments charged against reserve (7,786 ) (5,350 ) - (13,136 ) Non-cash charges included above (j) - (1,020 ) (315 ) (1,335 ) Balance at November 30, 2019 $ 3,566 $ 6,080 $ - $ 9,646 (in thousands) Severance and Benefits Costs Facility Closure and Other Related Costs Other Asset Write-Offs Total Balance at August 31, 2018 $ 10,960 $ 5,364 $ - $ 16,324 Additions charged to expense 6,533 1,037 154 7,724 Cash payments charged against reserve (6,013 ) (1,330 ) - (7,343 ) Non-cash charges included above (j) (1,053 ) (2,536 ) (154 ) (3,743 ) Balance at November 30, 2018 $ 10,427 $ 2,535 $ - $ 12,962 (in thousands) Severance and Benefits Costs Facility Closure and Other Related Costs Other Asset Write-Offs Total Balance at June 1, 2018 $ 9,957 $ 6,184 $ 1,373 $ 17,514 Additions charged to expense 25,595 1,473 732 27,800 Cash payments charged against reserve (18,588 ) (1,748 ) - (20,336 ) Non-cash charges included above (j) (6,537 ) (3,374 ) (2,105 ) (12,016 ) Balance at November 30, 2018 $ 10,427 $ 2,535 $ - $ 12,962 ( j ) Non-cash charges primarily include accelerated vesting of equity awards and asset-write offs. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Nov. 30, 2019 | |
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, 2019 Available-for-sale debt securities: U.S. Treasury and other government $ - $ 24,209 $ - $ 24,209 Corporate bonds 471 471 Total available-for-sale debt securities - 24,680 - 24,680 Trading and other equity securities: Mutual funds - foreign 36,251 36,251 Mutual funds - domestic 75,037 75,037 Total trading and other equity securities - 111,288 - 111,288 Contingent consideration (15,748 ) (15,748 ) Total $ - $ 135,968 $ (15,748 ) $ 120,220 (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, 2019 Available-for-sale debt securities: U.S. Treasury and other government $ - $ 24,547 $ - $ 24,547 Corporate bonds 462 462 Total available-for-sale debt securities - 25,009 - 25,009 Trading and other equity securities: Mutual funds - foreign 32,082 32,082 Mutual funds - domestic 67,739 67,739 Total trading and other equity securities - 99,821 - 99,821 Contingent consideration (21,551 ) (21,551 ) Total $ - $ 124,830 $ (21,551 ) $ 103,279 |
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, 2019 and May 31, 2019 are as follows: At November 30, 2019 (In thousands) Carrying Value Fair Value Cash and cash equivalents $ 208,173 $ 208,173 Marketable equity securities 97,798 97,798 Marketable debt securities 24,680 24,680 Long-term debt, including current portion 2,523,475 2,616,790 At May 31, 2019 (In thousands) Carrying Value Fair Value Cash and cash equivalents $ 223,168 $ 223,168 Marketable equity securities 87,525 87,525 Marketable debt securities 25,009 25,009 Long-term debt, including current portion 2,525,908 2,526,817 |
Derivatives and Hedging (Tables
Derivatives and Hedging (Tables) | 6 Months Ended |
Nov. 30, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Values of Qualifying and Non-Qualifying Instruments Used in Hedging Transactions | The fair values of qualifying and non-qualifying instruments used in hedging transactions as of November 30, 2019 and May 31, 2019 are as follows: (in thousands) Fair Value Derivatives Designated as Hedging Instruments Balance Sheet Location November 30, 2019 May 31, 2019 Assets: Interest Rate Swap (Fair Value) Other Current Assets $ 239 $ 513 Cross Currency Swap (Net Investment) Other Current Assets 2,198 2,482 Cross Currency Swap (Net Investment) Other Assets (Long-Term) 5,136 6,163 Interest Rate Swap (Fair Value) Other Assets (Long-Term) 882 - Liabilities: Interest Rate Swap (Fair Value) Other Accrued Liabilities - 230 Cross Currency Swap (Net Investment) Other Accrued Liabilities 82 - Cross Currency Swap (Net Investment) Other Long-Term Liabilities 1,445 4,276 (in thousands) Fair Value Derivatives Not Designated as Hedging Instruments Balance Sheet Location November 30, 2019 May 31, 2019 Assets: Foreign Currency Exchange Other Current Assets $ 114 $ 51 |
Investment (Income) Expense, _2
Investment (Income) Expense, Net (Tables) | 6 Months Ended |
Nov. 30, 2019 | |
Other Income And Expenses [Abstract] | |
Investment (Income) Expense, Net | Investment (income) expense, net, consists of the following components: Three Months Ended Six Months Ended November 30, November 30, November 30, November 30, (In thousands) 2019 2018 2019 2018 Interest (income) $ (1,429 ) $ (828 ) $ (2,776 ) $ (1,732 ) Net (gain) loss on marketable securities (6,939 ) 8,520 (10,479 ) 8,134 Dividend (income) (437 ) (659 ) (935 ) (1,802 ) Investment (income) expense, net $ (8,805 ) $ 7,033 $ (14,190 ) $ 4,600 |
Other Expense, Net (Tables)
Other Expense, Net (Tables) | 6 Months Ended |
Nov. 30, 2019 | |
Other Income And Expenses [Abstract] | |
Other Expense, Net | Other expense, net, consists of the following components: Three Months Ended Six Months Ended November 30, November 30, November 30, November 30, (In thousands) 2019 2018 2019 2018 Royalty (income) expense, net $ (360 ) $ 63 $ (94 ) $ 66 (Income) loss related to unconsolidated equity affiliates (65 ) (48 ) 25 (166 ) Pension non-service costs 1,550 346 2,979 774 Loss on extinguishment of debt (a) - 3,051 - 3,051 Loss on divestiture (b) 826 - 826 - Other expense, net $ 1,951 $ 3,412 $ 3,736 $ 3,725 (a) In connection with the redemption of all our outstanding 2.25% convertible senior notes in November 2018, we recognized a loss of $3.1 million, due to the fair value measurement of the instrument on the date of conversion. (b) Reflects the loss incurred upon divestiture of a contracting business located in Australia, which had reported through our PCG segment. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Nov. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Major Classes of Inventories, Net of Reserves | Inventories, net of reserves, were composed of the following major classes: (In thousands) November 30, 2019 May 31, 2019 Raw material and supplies $ 294,212 $ 296,493 Finished goods 589,510 545,380 Total Inventory, Net of Reserves $ 883,722 $ 841,873 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Nov. 30, 2019 | |
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 for the three- and six-month periods ended November 30, 2019 and 2018. For the three and six months ended November 30, 2019, and the three months ended November 30, 2018, basic and diluted earnings per share was calculated using the two-class method. For the six months ended November 30, 2018, basic earnings per share was calculated using the two-class method and diluted earnings per share was calculated using the treasury method. Three Months Ended Six Months Ended November 30, November 30, November 30, November 30, (In thousands, except per share amounts) 2019 2018 2019 2018 Numerator for earnings per share: Net income attributable to RPM International Inc. stockholders $ 77,030 $ 49,224 $ 183,218 $ 118,988 Less: Allocation of earnings and dividends to participating securities (548 ) (460 ) (1,167 ) (936 ) Net income available to common shareholders - basic 76,482 48,764 182,051 118,052 Add: Undistributed earnings reallocated to unvested shareholders 1 - 3 - Add: Allocation of earnings and dividends to participating securities - - - 936 Net income available to common shareholders - diluted $ 76,483 $ 48,764 $ 182,054 $ 118,988 Denominator for basic and diluted earnings per share: Basic weighted average common shares 128,393 131,058 128,639 131,467 Average diluted options and awards 686 609 655 1,811 Total shares for diluted earnings per share (1) 129,079 131,667 129,294 133,278 Earnings Per Share of Common Stock Attributable to RPM International Inc. Stockholders: Basic Earnings Per Share of Common Stock $ 0.60 $ 0.37 $ 1.42 $ 0.90 Diluted Earnings Per Share of Common Stock $ 0.59 $ 0.37 $ 1.41 $ 0.89 ( 1 ) Restricted shares totaling 178,000 for the six months ended November 30, 2019, were excluded from the calculation of diluted earnings per share as their effect would have been anti-dilutive. There were no shares of restricted stock identified as being anti-dilutive for the three months ended November 30, 2019, or the three or six months ended November 30, 2018. Stock appreciation rights (SARs) totaling 790,000 for the six months ended November 30, 2019 and 480,000 and 890,000 for the three and six months ended November 30, 2018, respectively, were excluded from the calculation of diluted earnings per share as their effect would have been anti-dilutive. There were no SARs identified as being anti-dilutive for the three months ended November 30, 2019. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Nov. 30, 2019 | |
Leases [Abstract] | |
Schedule of Future Undiscounted Cash Flows and Reconciliation to Lease Liabilities | The following represents our future undiscounted cash flows for each of the next five years and thereafter and reconciliation to the lease liabilities, as of November 30, 2019: Year ending May 31, Operating Leases (In thousands) 2020 (excluding the six months ended November 30) $ 31,980 2021 55,648 2022 44,471 2023 34,573 2024 28,663 Thereafter 162,830 Total lease payments $ 358,165 Less imputed interest 63,300 Total present value of lease liabilities $ 294,865 |
Future Minimum Lease Commitments under Non-Cancelable Lease Agreements | Following is a summary of our future minimum lease commitments, as determined under ASC 840, for all non-cancelable lease agreements, for each of the next five years and in the aggregate, as of May 31, 2019: Year ending May 31, Operating Leases (In thousands) 2020 $ 59,163 2021 49,731 2022 40,339 2023 32,798 2024 27,716 Thereafter 119,607 Total lease payments $ 329,354 |
Pension Plans (Tables)
Pension Plans (Tables) | 6 Months Ended |
Nov. 30, 2019 | |
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 months ended November 30, 2019 and 2018: U.S. Plans Non-U.S. Plans Three Months Ended Three Months Ended Pension Benefits November 30, November 30, November 30, November 30, (In thousands) 2019 2018 2019 2018 Service cost $ 9,856 $ 9,382 $ 1,391 $ 1,219 Interest cost 5,104 5,497 1,193 1,399 Expected return on plan assets (8,573 ) (8,467 ) (1,834 ) (2,051 ) Amortization of: Prior service cost (credit) 2 29 (9 ) (8 ) Net actuarial losses recognized 4,629 3,272 523 319 Net Periodic Benefit Cost $ 11,018 $ 9,713 $ 1,264 $ 878 U.S. Plans Non-U.S. Plans Three Months Ended Three Months Ended Postretirement Benefits November 30, November 30, November 30, November 30, (In thousands) 2019 2018 2019 2018 Service cost $ - $ - $ 429 $ 392 Interest cost 37 48 282 291 Amortization of: Prior service (credit) (55 ) (55 ) - - Net actuarial (gains) losses recognized (16 ) (6 ) 158 115 Net Periodic Benefit (Credit) Cost $ (34 ) $ (13 ) $ 869 $ 798 U.S. Plans Non-U.S. Plans Six Months Ended Six Months Ended November 30, November 30, November 30, November 30, Pension Benefits 2019 2018 2019 2018 (In thousands) Service cost $ 19,712 $ 18,764 $ 2,782 $ 2,438 Interest cost 10,208 10,994 2,386 2,798 Expected return on plan assets (17,146 ) (16,934 ) (3,668 ) (4,102 ) Amortization of: Prior service cost (credit) 4 58 (18 ) (16 ) Net actuarial losses recognized 9,258 6,544 1,046 638 Net Periodic Benefit Cost $ 22,036 $ 19,426 $ 2,528 $ 1,756 U.S. Plans Non-U.S. Plans Six Months Ended Six Months Ended November 30, November 30, November 30, November 30, Postretirement Benefits 2019 2018 2019 2018 (In thousands) Service cost $ - $ - $ 858 $ 784 Interest cost 74 96 564 582 Amortization of: Prior service (credit) (110 ) (110 ) - - Net actuarial (gains) losses recognized (32 ) (12 ) 316 230 Net Periodic Benefit (Credit) Cost $ (68 ) $ (26 ) $ 1,738 $ 1,596 |
Contingencies and Other Accru_2
Contingencies and Other Accrued Losses (Tables) | 6 Months Ended |
Nov. 30, 2019 | |
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, November 30, November 30, 2019 2018 2019 2018 (In thousands) Beginning Balance $ 10,069 $ 10,585 $ 10,414 $ 11,721 Deductions (1) (5,721 ) (6,660 ) (11,380 ) (13,274 ) Provision charged to expense 6,207 5,938 11,521 11,416 Ending Balance $ 10,555 $ 9,863 $ 10,555 $ 9,863 (1) Primarily claims paid during the year. |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Nov. 30, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Accounts Receivable Net of Allowances and Net Contract Assets (Liabilities) | Accounts receivable, net of allowances, and net contract assets (liabilities) consisted of the following: November 30, 2019 August 31, 2019 $ Change % Change (In thousands, except percents) Accounts receivable, less allowance $ 1,047,813 $ 1,109,259 $ (61,446 ) -5.5 % Contract assets $ 18,959 $ 26,434 $ (7,475 ) -28.3 % Contract liabilities - short-term (25,205 ) (27,402 ) 2,197 -8.0 % Net Contract Liabilities $ (6,246 ) $ (968 ) $ (5,278 ) 545.2 % (In thousands, except percents) November 30, 2019 May 31, 2019 $ Change % Change Accounts receivable, less allowance $ 1,047,813 $ 1,232,350 $ (184,537 ) -15.0 % Contract assets $ 18,959 $ 21,628 $ (2,669 ) -12.3 % Contract liabilities - short-term (25,205 ) (25,896 ) 691 -2.7 % Net Contract Liabilities $ (6,246 ) $ (4,268 ) $ (1,978 ) 46.3 % |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Nov. 30, 2019 | |
Segment Reporting [Abstract] | |
Results of Reportable Segments | 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 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Nov. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill, by Reportable Segment | The following table summarizes the changes in the carrying amount of goodwill, by reportable segment, for the periods presented: CPG PCG Industrial Consumer Specialty (In thousands) Segment Segment Segment Segment Segment Total Balance as of May 31, 2019 $ - $ - $ 526,419 $ 499,387 $ 219,956 $ 1,245,762 Allocation to new segments 407,429 185,259 (526,419 ) (66,269 ) - Acquisitions 14,689 14,689 Translation adjustments (3,578 ) (2,577 ) (3,568 ) (910 ) (10,633 ) Balance as of August 31, 2019 418,540 182,682 - 495,819 152,777 1,249,818 Acquisitions 3,023 3,023 Translation adjustments 1,198 2,683 2,235 599 6,715 Balance as of November 30, 2019 $ 419,738 $ 188,388 $ - $ 498,054 $ 153,376 $ 1,259,556 |
Consolidation, Noncontrolling_2
Consolidation, Noncontrolling Interests and Basis of Presentation - Additional Information (Detail) | Nov. 30, 2019 |
Accounting Policies [Abstract] | |
Percentage of controlled subsidiary's earnings | 100.00% |
New Accounting Pronouncements -
New Accounting Pronouncements - Additional Information (Detail) - USD ($) | Jun. 01, 2019 | May 31, 2018 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Cumulative adjustment to retained earnings in the period of adoption | $ (2,833,000) | |
Retained Earnings | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Cumulative adjustment to retained earnings in the period of adoption | $ (2,833,000) | |
ASC 842 | Retained Earnings | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Cumulative adjustment to retained earnings in the period of adoption | $ 0 |
Change in Accounting Principle
Change in Accounting Principle - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Nov. 30, 2018 | Nov. 30, 2018 | |
Cost of Sales | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Effect of change in accounting principle | $ 44.2 | $ 88.9 |
Selling, General and Administrative Expenses | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Effect of change in accounting principle | $ (44.2) | $ (88.9) |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) - 2020 MAP to Growth - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Nov. 30, 2019 | Nov. 30, 2018 | Nov. 30, 2019 | Nov. 30, 2018 | May 31, 2019 | |
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring plan, expected to be formulated | During the second quarter ended November 30, 2018 | ||||
Increase in current total expected costs | $ 4,600,000 | ||||
Restructuring plan, anticipated to be completed | by the end of calendar year 2020 | ||||
Consumer Group ("Consumer") Segment | Cost of Sales | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Inventory-related charges | $ 6,300,000 | $ 1,000 | $ 7,200,000 | $ 1,300 | |
Inventory-related charges, favorable adjustment | $ 200,000 | ||||
Performance Coatings Group ("PCG") Segment | Cost of Sales | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Inventory-related charges | $ 1,000,000 | 2,300 | 3,100,000 | 6,600 | |
Construction Products Group ("CPG") Segment | Cost of Sales | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Inventory-related charges | $ 300 | 300,000 | $ 500 | ||
Severance and Benefit Charges | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Increase in current total expected costs | $ 4,600,000 |
Summary of Charges Recorded in
Summary of Charges Recorded in Connection with Restructuring by Reportable Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2019 | Nov. 30, 2018 | Nov. 30, 2019 | Nov. 30, 2018 | |
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | $ 4,801 | $ 7,724 | $ 11,423 | $ 27,800 |
2020 MAP to Growth | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 4,801 | 7,724 | 11,423 | 27,800 |
Cumulative Costs to Date | 71,247 | 71,247 | ||
Total Expected Costs | 103,433 | 103,433 | ||
2020 MAP to Growth | Severance and Benefit Costs | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 2,729 | 6,533 | 6,515 | 25,595 |
Cumulative Costs to Date | 48,991 | 48,991 | ||
Total Expected Costs | 72,111 | 72,111 | ||
2020 MAP to Growth | Facility Closure and Other Related Costs | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 1,821 | 1,037 | 4,593 | 1,473 |
Cumulative Costs to Date | 18,972 | 18,972 | ||
Total Expected Costs | 27,284 | 27,284 | ||
2020 MAP to Growth | Other Asset Write-offs | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 251 | 154 | 315 | 732 |
Cumulative Costs to Date | 3,284 | 3,284 | ||
Total Expected Costs | 4,038 | 4,038 | ||
2020 MAP to Growth | Construction Products Group ("CPG") Segment | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 1,596 | 3,961 | 2,444 | 6,758 |
Cumulative Costs to Date | 18,232 | 18,232 | ||
Total Expected Costs | 28,894 | 28,894 | ||
2020 MAP to Growth | Construction Products Group ("CPG") Segment | Severance and Benefit Costs | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 1,447 | 3,574 | 1,607 | 5,993 |
Cumulative Costs to Date | 12,836 | 12,836 | ||
Total Expected Costs | 22,146 | 22,146 | ||
2020 MAP to Growth | Construction Products Group ("CPG") Segment | Facility Closure and Other Related Costs | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 110 | 384 | 798 | 397 |
Cumulative Costs to Date | 3,767 | 3,767 | ||
Total Expected Costs | 4,597 | 4,597 | ||
2020 MAP to Growth | Construction Products Group ("CPG") Segment | Other Asset Write-offs | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 39 | 3 | 39 | 368 |
Cumulative Costs to Date | 1,629 | 1,629 | ||
Total Expected Costs | 2,151 | 2,151 | ||
2020 MAP to Growth | Performance Coatings Group ("PCG") Segment | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 1,239 | 993 | 3,848 | 6,034 |
Cumulative Costs to Date | 14,086 | 14,086 | ||
Total Expected Costs | 21,931 | 21,931 | ||
2020 MAP to Growth | Performance Coatings Group ("PCG") Segment | Severance and Benefit Costs | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 431 | 364 | 2,931 | 4,769 |
Cumulative Costs to Date | 9,344 | 9,344 | ||
Total Expected Costs | 14,765 | 14,765 | ||
2020 MAP to Growth | Performance Coatings Group ("PCG") Segment | Facility Closure and Other Related Costs | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 636 | 483 | 745 | 906 |
Cumulative Costs to Date | 4,219 | 4,219 | ||
Total Expected Costs | 6,638 | 6,638 | ||
2020 MAP to Growth | Performance Coatings Group ("PCG") Segment | Other Asset Write-offs | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 172 | 146 | 172 | 359 |
Cumulative Costs to Date | 523 | 523 | ||
Total Expected Costs | 528 | 528 | ||
2020 MAP to Growth | Consumer Group ("Consumer") Segment | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 1,124 | 181 | 2,407 | 1,200 |
Cumulative Costs to Date | 16,502 | 16,502 | ||
Total Expected Costs | 21,801 | 21,801 | ||
2020 MAP to Growth | Consumer Group ("Consumer") Segment | Severance and Benefit Costs | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 780 | 76 | 1,547 | 1,095 |
Cumulative Costs to Date | 8,925 | 8,925 | ||
Total Expected Costs | 12,424 | 12,424 | ||
2020 MAP to Growth | Consumer Group ("Consumer") Segment | Facility Closure and Other Related Costs | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 344 | 105 | 860 | 105 |
Cumulative Costs to Date | 7,552 | 7,552 | ||
Total Expected Costs | 9,352 | 9,352 | ||
2020 MAP to Growth | Consumer Group ("Consumer") Segment | Other Asset Write-offs | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Cumulative Costs to Date | 25 | 25 | ||
Total Expected Costs | 25 | 25 | ||
2020 MAP to Growth | Specialty Products Group ("Specialty") Segment | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 819 | 1,528 | 2,708 | 3,748 |
Cumulative Costs to Date | 10,291 | 10,291 | ||
Total Expected Costs | 18,671 | 18,671 | ||
2020 MAP to Growth | Specialty Products Group ("Specialty") Segment | Severance and Benefit Costs | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 48 | 1,458 | 414 | 3,678 |
Cumulative Costs to Date | 5,750 | 5,750 | ||
Total Expected Costs | 10,640 | 10,640 | ||
2020 MAP to Growth | Specialty Products Group ("Specialty") Segment | Facility Closure and Other Related Costs | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 731 | 65 | 2,190 | 65 |
Cumulative Costs to Date | 3,434 | 3,434 | ||
Total Expected Costs | 6,697 | 6,697 | ||
2020 MAP to Growth | Specialty Products Group ("Specialty") Segment | Other Asset Write-offs | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 40 | 5 | 104 | 5 |
Cumulative Costs to Date | 1,107 | 1,107 | ||
Total Expected Costs | 1,334 | 1,334 | ||
2020 MAP to Growth | Corporate/Other Segment | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 23 | 1,061 | 16 | 10,060 |
Cumulative Costs to Date | 12,136 | 12,136 | ||
Total Expected Costs | 12,136 | 12,136 | ||
2020 MAP to Growth | Corporate/Other Segment | Severance and Benefit Costs | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Current Year Charges | 23 | $ 1,061 | 16 | $ 10,060 |
Cumulative Costs to Date | 12,136 | 12,136 | ||
Total Expected Costs | $ 12,136 | $ 12,136 |
Summary of Charges Recorded i_2
Summary of Charges Recorded in Connection with Restructuring by Reportable Segment (Parenthetical) (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2019USD ($)Position | Nov. 30, 2018USD ($)Position | Nov. 30, 2019USD ($)Position | Nov. 30, 2018USD ($)PositionExecutive | |
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring Charges | $ 4,801 | $ 7,724 | $ 11,423 | $ 27,800 |
2020 MAP to Growth | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring Charges | 4,801 | 7,724 | 11,423 | 27,800 |
2020 MAP to Growth | Severance and Benefit Costs | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring Charges | $ 2,729 | $ 6,533 | $ 6,515 | $ 25,595 |
Construction Products Group ("CPG") Segment | 2020 MAP to Growth Related to Current Elimination | Severance and Benefit Costs | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Number of positions eliminated | Position | 25 | 37 | 46 | 68 |
Construction Products Group ("CPG") Segment | 2020 MAP to Growth Plan Related to Legal Function | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Number of positions eliminated | Position | 1 | |||
Restructuring Charges | $ 200 | |||
Construction Products Group ("CPG") Segment | 2020 MAP to Growth | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring Charges | $ 1,596 | $ 3,961 | $ 2,444 | 6,758 |
Construction Products Group ("CPG") Segment | 2020 MAP to Growth | Severance and Benefit Costs | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring Charges | $ 1,447 | 3,574 | $ 1,607 | $ 5,993 |
Construction Products Group ("CPG") Segment | 2020 MAP to Growth | Construction Segment Executives | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Number of corporate executives | Executive | 3 | |||
Performance Coatings Group ("PCG") Segment | 2020 MAP to Growth Related to Current Elimination | Severance and Benefit Costs | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Number of positions eliminated | Position | 18 | 69 | ||
Performance Coatings Group ("PCG") Segment | 2020 MAP to Growth | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring Charges | $ 1,239 | 993 | $ 3,848 | $ 6,034 |
Performance Coatings Group ("PCG") Segment | 2020 MAP to Growth | Severance and Benefit Costs | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring Charges | $ 431 | 364 | $ 2,931 | $ 4,769 |
Consumer Group ("Consumer") Segment | 2020 MAP to Growth Related to Current Elimination | Severance and Benefit Costs | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Number of positions eliminated | Position | 9 | 11 | ||
Consumer Group ("Consumer") Segment | 2020 MAP to Growth | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Number of positions eliminated | Position | 9 | |||
Restructuring Charges | $ 1,124 | 181 | $ 2,407 | $ 1,200 |
Consumer Group ("Consumer") Segment | 2020 MAP to Growth | Severance and Benefit Costs | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring Charges | $ 780 | $ 76 | $ 1,547 | $ 1,095 |
Specialty Segment | 2020 MAP to Growth Related to Current Elimination | Severance and Benefit Costs | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Number of positions eliminated | Position | 49 | 59 | ||
Specialty Segment | 2020 MAP to Growth | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Number of positions eliminated | Position | 95 | 120 | ||
Restructuring Charges | $ 819 | $ 1,528 | $ 2,708 | $ 3,748 |
Specialty Segment | 2020 MAP to Growth | Severance and Benefit Costs | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring Charges | 48 | $ 1,458 | 414 | $ 3,678 |
Specialty Segment | 2020 MAP to Growth | Specialty Segment | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Number of corporate executives | Executive | 4 | |||
Performance Coatings Group ("PCG") Segment | 2020 MAP to Growth | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Number of positions eliminated | Position | 17 | 102 | ||
Corporate/Other Segment | 2020 MAP to Growth | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring Charges | 23 | $ 1,061 | 16 | $ 10,060 |
Corporate/Other Segment | 2020 MAP to Growth | Severance and Benefit Costs | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring Charges | $ 23 | $ 1,061 | $ 16 | $ 10,060 |
Number of corporate executives | Executive | 2 | |||
Corporate/Other Segment | 2020 MAP to Growth | Vesting Equity Awards | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Number of corporate executives | Executive | 2 |
Summary of Activity in Restruct
Summary of Activity in Restructuring Reserves (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2019 | Nov. 30, 2018 | Nov. 30, 2019 | Nov. 30, 2018 | |
Restructuring Cost And Reserve [Line Items] | ||||
Additions charged to expense | $ 4,801 | $ 7,724 | $ 11,423 | $ 27,800 |
2020 MAP to Growth | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Beginning balance | 12,376 | 16,324 | 12,694 | 17,514 |
Additions charged to expense | 4,801 | 7,724 | 11,423 | 27,800 |
Cash payments charged against reserve | (7,125) | (7,343) | (13,136) | (20,336) |
Non-cash charges included above | (406) | (3,743) | (1,335) | (12,016) |
Ending balance | 9,646 | 12,962 | 9,646 | 12,962 |
2020 MAP to Growth | Severance and Benefit Costs | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Beginning balance | 2,946 | 10,960 | 4,837 | 9,957 |
Additions charged to expense | 2,729 | 6,533 | 6,515 | 25,595 |
Cash payments charged against reserve | (2,109) | (6,013) | (7,786) | (18,588) |
Non-cash charges included above | (1,053) | (6,537) | ||
Ending balance | 3,566 | 10,427 | 3,566 | 10,427 |
2020 MAP to Growth | Facility Closure and Other Related Costs | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Beginning balance | 9,430 | 5,364 | 7,857 | 6,184 |
Additions charged to expense | 1,821 | 1,037 | 4,593 | 1,473 |
Cash payments charged against reserve | (5,016) | (1,330) | (5,350) | (1,748) |
Non-cash charges included above | (155) | (2,536) | (1,020) | (3,374) |
Ending balance | 6,080 | 2,535 | 6,080 | 2,535 |
2020 MAP to Growth | Other Asset Write-offs | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Beginning balance | 1,373 | |||
Additions charged to expense | 251 | 154 | 315 | 732 |
Non-cash charges included above | $ (251) | $ (154) | $ (315) | $ (2,105) |
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, 2019 | May 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale debt securities | $ 24,680 | $ 25,009 |
Total trading and other equity securities | 111,288 | 99,821 |
Assets (liabilities) at fair value | 120,220 | 103,279 |
U.S. Treasury and other government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale debt securities | 24,209 | 24,547 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale debt securities | 471 | 462 |
Mutual funds | Foreign | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total trading and other equity securities | 36,251 | 32,082 |
Mutual funds | Domestic | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total trading and other equity securities | 75,037 | 67,739 |
Contingent consideration liability | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | (15,748) | (21,551) |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale debt securities | 24,680 | 25,009 |
Total trading and other equity securities | 111,288 | 99,821 |
Assets (liabilities) at fair value | 135,968 | 124,830 |
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] | ||
Total available-for-sale debt securities | 24,209 | 24,547 |
Significant Other Observable Inputs (Level 2) | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale debt securities | 471 | 462 |
Significant Other Observable Inputs (Level 2) | Mutual funds | Foreign | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total trading and other equity securities | 36,251 | 32,082 |
Significant Other Observable Inputs (Level 2) | Mutual funds | Domestic | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total trading and other equity securities | 75,037 | 67,739 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets (liabilities) at fair value | (15,748) | (21,551) |
Significant Unobservable Inputs (Level 3) | Contingent consideration liability | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | $ (15,748) | $ (21,551) |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Fair Value Disclosures [Abstract] | ||
Settlements of contingent consideration obligations | $ 5.9 | $ 4.7 |
Increase in accrual related to fair value adjustments | $ 2.7 |
Fair Value and Carrying Value o
Fair Value and Carrying Value of Financial Instruments and Long-Term Debt (Detail) - USD ($) $ in Thousands | Nov. 30, 2019 | May 31, 2019 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | $ 208,173 | $ 223,168 |
Marketable equity securities | 97,798 | 87,525 |
Marketable debt securities | 24,680 | 25,009 |
Long-term debt, including current portion | 2,523,475 | 2,525,908 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 208,173 | 223,168 |
Marketable equity securities | 97,798 | 87,525 |
Marketable debt securities | 24,680 | 25,009 |
Long-term debt, including current portion | $ 2,616,790 | $ 2,526,817 |
Derivatives and Hedging - Addit
Derivatives and Hedging - Additional Information (Detail) | Oct. 31, 2017USD ($)CrossCurrencySwap | Nov. 30, 2019USD ($)ForwardContract | May 31, 2019USD ($)ForwardContract | Oct. 31, 2017EUR (€)CrossCurrencySwap |
Derivatives Not Designated as Hedges | ||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||
Number of foreign currency forward contract held | ForwardContract | 1 | 1 | ||
Forward Contracts Held to Purchase Foreign Currencies | Derivatives Not Designated as Hedges | ||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||
Notional amount | $ | $ 61,000,000 | $ 38,700,000 | ||
Net Investment Hedge | ||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||
Number of cross currency swaps executed | CrossCurrencySwap | 2 | 2 | ||
Notional amount | $ 100,000,000 | € 85,250,000 | ||
Derivative instruments maturity date | 2022-11 |
Derivatives and Hedging - Sched
Derivatives and Hedging - Schedule of Fair Values of Qualifying and Non-Qualifying Instruments Used in Hedging Transactions (Detail) - USD ($) $ in Thousands | Nov. 30, 2019 | May 31, 2019 |
Derivatives Designated as Hedging Instruments | Interest Rate Swap (Fair Value) | Other Current Assets | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Fair value of derivatives assets | $ 239 | $ 513 |
Derivatives Designated as Hedging Instruments | Interest Rate Swap (Fair Value) | Other Accrued Liabilities | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Fair value of derivatives liabilities | 230 | |
Derivatives Designated as Hedging Instruments | Interest Rate Swap (Fair Value) | Other Assets (Long-Term) | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Fair value of derivatives assets | 882 | |
Derivatives Designated as Hedging Instruments | Cross Currency Swap (Net Investment) | Other Current Assets | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Fair value of derivatives assets | 2,198 | 2,482 |
Derivatives Designated as Hedging Instruments | Cross Currency Swap (Net Investment) | Other Accrued Liabilities | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Fair value of derivatives liabilities | 82 | |
Derivatives Designated as Hedging Instruments | Cross Currency Swap (Net Investment) | Other Assets (Long-Term) | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Fair value of derivatives assets | 5,136 | 6,163 |
Derivatives Designated as Hedging Instruments | Cross Currency Swap (Net Investment) | Other Long-Term Liabilities | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Fair value of derivatives liabilities | 1,445 | 4,276 |
Derivatives Not Designated as Hedging Instruments | Foreign Currency Exchange (Cash Flow) | Other Current Assets | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Fair value of derivatives assets | $ 114 | $ 51 |
Investment (Income) Expense, _3
Investment (Income) Expense, Net (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2019 | Nov. 30, 2018 | Nov. 30, 2019 | Nov. 30, 2018 | |
Other Income And Expenses [Abstract] | ||||
Interest (income) | $ (1,429) | $ (828) | $ (2,776) | $ (1,732) |
Net (gain) loss on marketable securities | (6,939) | 8,520 | (10,479) | 8,134 |
Dividend (income) | (437) | (659) | (935) | (1,802) |
Investment (income) expense, net | $ (8,805) | $ 7,033 | $ (14,190) | $ 4,600 |
Investment (Income) Expense, _4
Investment (Income) Expense, Net - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2019 | Nov. 30, 2018 | Nov. 30, 2019 | Nov. 30, 2018 | |
Investments Debt And Equity Securities [Abstract] | ||||
Net (gain) loss on marketable securities | $ (6,939) | $ 8,520 | $ (10,479) | $ 8,134 |
Unrealized gains on marketable equity securities | 6,000 | 8,900 | ||
Unrealized gains on trading securities | $ 1,000 | $ 1,700 | 500 | |
Gross realized losses on sales of marketable securities | 1,000 | 1,200 | ||
Unrealized losses on trading securities | 1,000 | 1,100 | ||
Gross gains realized on sales of marketable securities | 200 | |||
Unrealized losses on marketable equity securities | $ 6,500 | $ 6,500 |
Other Expense, Net (Detail)
Other Expense, Net (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Nov. 30, 2019 | Nov. 30, 2018 | Nov. 30, 2019 | Nov. 30, 2018 | ||
Other Income And Expenses [Abstract] | |||||
Royalty (income) expense, net | $ (360) | $ 63 | $ (94) | $ 66 | |
(Income) loss related to unconsolidated equity affiliates | (65) | (48) | 25 | (166) | |
Pension non-service costs | 1,550 | 346 | 2,979 | 774 | |
Loss on extinguishment of debt | [1] | 3,051 | 3,051 | ||
Loss on divestiture | [2] | 826 | 826 | ||
Other expense, net | $ 1,951 | $ 3,412 | $ 3,736 | $ 3,725 | |
[1] | In connection with the redemption of all our outstanding 2.25% convertible senior notes in November 2018, we recognized a loss of $3.1 million, due to the fair value measurement of the instrument on the date of conversion. | ||||
[2] | Reflects the loss incurred upon divestiture of a contracting business located in Australia, which had reported through our PCG segment. |
Other Expense, Net (Parenthetic
Other Expense, Net (Parenthetical) (Detail) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2018USD ($) | Nov. 30, 2018USD ($) | Nov. 30, 2018USD ($) | |||
Other Income And Expenses [Line Items] | |||||
Loss on extinguishment of debt | $ 3,051 | [1] | $ 3,051 | [1] | |
2.25% Convertible Senior Notes | |||||
Other Income And Expenses [Line Items] | |||||
Debt, interest rate | 2.25% | 2.25% | 2.25% | ||
Debt instrument redemption period | 2018-11 | ||||
Loss on extinguishment of debt | $ 3,100 | ||||
[1] | In connection with the redemption of all our outstanding 2.25% convertible senior notes in November 2018, we recognized a loss of $3.1 million, due to the fair value measurement of the instrument on the date of conversion. |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2019 | Nov. 30, 2018 | Nov. 30, 2019 | Nov. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax expense rate | 24.00% | 26.20% | 24.80% | 24.70% |
Corporate income tax rate | 21.00% | |||
Deferred income tax liability | $ 18,800,000 | $ 18,800,000 | ||
Unremitted foreign earnings | 414,700,000 | 414,700,000 | ||
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, 2019 | May 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw material and supplies | $ 294,212 | $ 296,493 |
Finished goods | 589,510 | 545,380 |
Total Inventory, Net of Reserves | $ 883,722 | $ 841,873 |
Stock Repurchase Program - Addi
Stock Repurchase Program - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Nov. 30, 2019 | Aug. 31, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | Nov. 30, 2019 | Nov. 30, 2018 | May 31, 2021 | |
Stock Repurchase Programs [Line Items] | |||||||
Authorization of stock repurchase program | Jan. 8, 2008 | ||||||
Shares repurchased | 0 | 1,144,952 | 1,655,616 | 1,248,398 | |||
Shares repurchased, value | $ 100,000 | $ 74,998 | $ 6,994 | $ 100,000 | $ 82,000 | ||
Repurchase of common stock price per shares | $ 65.50 | $ 60.40 | $ 65.68 | ||||
Scenario Forecast | |||||||
Stock Repurchase Programs [Line Items] | |||||||
Capital to be returned to stockholders through share repurchases | $ 1,000,000 | ||||||
Stock repurchase program, remaining authorized repurchase, value | $ 600,000 |
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, 2019 | Nov. 30, 2018 | Nov. 30, 2019 | Nov. 30, 2018 | ||
Numerator for earnings per share: | |||||
Net income attributable to RPM International Inc. stockholders | $ 77,030 | $ 49,224 | $ 183,218 | $ 118,988 | |
Less: Allocation of earnings and dividends to participating securities | (548) | (460) | (1,167) | (936) | |
Net income available to common shareholders - basic | 76,482 | 48,764 | 182,051 | 118,052 | |
Add: Undistributed earnings reallocated to unvested shareholders | 1 | 3 | |||
Add: Allocation of earnings and dividends to participating securities | 936 | ||||
Net income available to common shareholders - diluted | $ 76,483 | $ 48,764 | $ 182,054 | $ 118,988 | |
Denominator for basic and diluted earnings per share: | |||||
Basic weighted average common shares | 128,393 | 131,058 | 128,639 | 131,467 | |
Average diluted options and awards | 686 | 609 | 655 | 1,811 | |
Total shares for diluted earnings per share | [1] | 129,079 | 131,667 | 129,294 | 133,278 |
Earnings Per Share of Common Stock Attributable to RPM International Inc. Stockholders: | |||||
Basic Earnings Per Share of Common Stock | $ 0.60 | $ 0.37 | $ 1.42 | $ 0.90 | |
Diluted Earnings Per Share of Common Stock | $ 0.59 | $ 0.37 | $ 1.41 | $ 0.89 | |
[1] | Restricted shares totaling 178,000 for the six months ended November 30, 2019, were excluded from the calculation of diluted earnings per share as their effect would have been anti-dilutive. There were no shares of restricted stock identified as being anti-dilutive for the three months ended November 30, 2019, or the three or six months ended November 30, 2018. Stock appreciation rights (SARs) totaling 790,000 for the six months ended November 30, 2019 and 480,000 and 890,000 for the three and six months ended November 30, 2018, respectively, were excluded from the calculation of diluted earnings per share as their effect would have been anti-dilutive. There were no SARs identified as being anti-dilutive for the three months ended November 30, 2019. |
Reconciliation of Numerator a_2
Reconciliation of Numerator and Denominator of Basic and Diluted Earnings Per Share (Parenthetical) (Detail) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2019 | Nov. 30, 2018 | Nov. 30, 2019 | Nov. 30, 2018 | |
Restricted shares | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Shares excluded from the calculation of diluted earnings per share | 0 | 0 | 178,000 | 0 |
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 | 0 | 480,000 | 790,000 | 890,000 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Millions | 3 Months Ended | 6 Months Ended |
Nov. 30, 2019USD ($) | Nov. 30, 2019USD ($) | |
Lessee Lease Description [Line Items] | ||
Lessee, operating lease, option to extend description | Some leases include one or more options to renew, generally at our sole discretion, with renewal terms that can extend the lease term from one to five years or more. | |
Lessee, operating lease, existence of option to extend | true | |
Lessee, operating lease, option to terminate description | In addition, certain leases contain termination options, where the rights to terminate are held by either us, the lessor, or both parties. | |
Lessee, operating lease, existence of option to terminate | true | |
Lease costs | $ 21.5 | $ 42.2 |
Operating lease costs | 17.8 | 35.9 |
Other costs | 3.7 | 6.3 |
Operating lease obligations | $ 17.1 | 34 |
ROU asset recognized in exchange for operating lease liability | $ 41.1 | |
Operating lease, weighted-average remaining lease term | 9 years 2 months 12 days | 9 years 2 months 12 days |
Operating lease, weighted-average discount rate | 3.80% | 3.80% |
Operating lease liability, current | $ 51 | $ 51 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherAccruedLiabilitiesCurrent | us-gaap:OtherAccruedLiabilitiesCurrent |
Minimum | ||
Lessee Lease Description [Line Items] | ||
Lessee, operating lease, renewal term | 1 year | 1 year |
Maximum | ||
Lessee Lease Description [Line Items] | ||
Lessee, operating lease, renewal term | 5 years | 5 years |
Schedule of Future Undiscounted
Schedule of Future Undiscounted Cash Flows and Reconciliation to Lease Liabilities (Detail) $ in Thousands | Nov. 30, 2019USD ($) |
Leases [Abstract] | |
2020 (excluding the six months ended November 30) | $ 31,980 |
2021 | 55,648 |
2022 | 44,471 |
2023 | 34,573 |
2024 | 28,663 |
Thereafter | 162,830 |
Total lease payments | 358,165 |
Less imputed interest | 63,300 |
Total present value of lease liabilities | $ 294,865 |
Future Minimum Lease Commitment
Future Minimum Lease Commitments Under Non-Cancelable Lease Agreement (Detail) $ in Thousands | May 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 59,163 |
2021 | 49,731 |
2022 | 40,339 |
2023 | 32,798 |
2024 | 27,716 |
Thereafter | 119,607 |
Total lease payments | $ 329,354 |
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, 2019 | Nov. 30, 2018 | Nov. 30, 2019 | Nov. 30, 2018 | |
Pension Benefits | U.S. Plans | ||||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 9,856 | $ 9,382 | $ 19,712 | $ 18,764 |
Interest cost | 5,104 | 5,497 | 10,208 | 10,994 |
Expected return on plan assets | (8,573) | (8,467) | (17,146) | (16,934) |
Prior service cost (credit) | 2 | 29 | 4 | 58 |
Net actuarial (gains) losses recognized | 4,629 | 3,272 | 9,258 | 6,544 |
Net Periodic Benefit (Credit) Cost | 11,018 | 9,713 | 22,036 | 19,426 |
Pension Benefits | Non-U.S. Plans | ||||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 1,391 | 1,219 | 2,782 | 2,438 |
Interest cost | 1,193 | 1,399 | 2,386 | 2,798 |
Expected return on plan assets | (1,834) | (2,051) | (3,668) | (4,102) |
Prior service cost (credit) | (9) | (8) | (18) | (16) |
Net actuarial (gains) losses recognized | 523 | 319 | 1,046 | 638 |
Net Periodic Benefit (Credit) Cost | 1,264 | 878 | 2,528 | 1,756 |
Postretirement Benefits | U.S. Plans | ||||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Interest cost | 37 | 48 | 74 | 96 |
Prior service cost (credit) | (55) | (55) | (110) | (110) |
Net actuarial (gains) losses recognized | (16) | (6) | (32) | (12) |
Net Periodic Benefit (Credit) Cost | (34) | (13) | (68) | (26) |
Postretirement Benefits | Non-U.S. Plans | ||||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 429 | 392 | 858 | 784 |
Interest cost | 282 | 291 | 564 | 582 |
Net actuarial (gains) losses recognized | 158 | 115 | 316 | 230 |
Net Periodic Benefit (Credit) Cost | $ 869 | $ 798 | $ 1,738 | $ 1,596 |
Pension Plans - Additional Info
Pension Plans - Additional Information (Detail) - Pension Benefits $ in Millions | Nov. 30, 2019USD ($) |
U.S. Plans | |
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Contribution to retirement plans the current fiscal year | $ 0.9 |
Non-U.S. Plans | |
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Contribution to retirement plans the current fiscal year | $ 6.4 |
Changes in Accrued Warranty Bal
Changes in Accrued Warranty Balances (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Nov. 30, 2019 | Nov. 30, 2018 | Nov. 30, 2019 | Nov. 30, 2018 | ||
Commitments And Contingencies Disclosure [Abstract] | |||||
Beginning Balance | $ 10,069 | $ 10,585 | $ 10,414 | $ 11,721 | |
Deductions | [1] | (5,721) | (6,660) | (11,380) | (13,274) |
Provision charged to expense | 6,207 | 5,938 | 11,521 | 11,416 | |
Ending Balance | $ 10,555 | $ 9,863 | $ 10,555 | $ 9,863 | |
[1] | Primarily claims paid during the year. |
Contingencies and Other Accru_3
Contingencies and Other Accrued Losses - Additional Information (Detail) $ in Millions | 1 Months Ended |
Jan. 08, 2020USD ($) | |
Carboline Company | Subsequent Event | |
Loss Contingencies [Line Items] | |
Litigation settlement amount | $ 1.3 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Nov. 30, 2019USD ($) | Nov. 30, 2019USD ($)Segment | May 31, 2019USD ($)Segment | Aug. 31, 2019USD ($) | |
Revenue From Contract With Customer [Abstract] | ||||
Number of reportable segments | Segment | 4 | 3 | ||
Revenue performance obligation description of payment terms | Payment terms and conditions vary by contract type, although our customers’ payment terms generally include a requirement to pay within 30 to 60 days of fulfilling our performance obligations. | |||
Revenue, Practical Expedient, Financing Component [true false] | false | |||
Net contract assets (liabilities) | $ (5,278) | $ (1,978) | ||
Long-term deferred revenue | $ 67,100 | $ 67,100 | $ 66,500 | $ 65,600 |
Summary of Accounts Receivable
Summary of Accounts Receivable Net of Allowances and Net Contract Assets (Liabilities) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2019 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | |
Disaggregation Of Revenue [Line Items] | ||||
Accounts receivable, less allowance | $ 1,047,813 | $ 1,047,813 | $ 1,109,259 | $ 1,232,350 |
Contract assets | 18,959 | 18,959 | 26,434 | 21,628 |
Contract liabilities - short-term | (25,205) | (25,205) | (27,402) | (25,896) |
Net Contract Liabilities | (6,246) | (6,246) | $ (968) | $ (4,268) |
Change In Contract With Customer Asset And Liability [Abstract] | ||||
Change in accounts receivable, less allowance | (61,446) | (184,537) | ||
Change in contract assets | (7,475) | (2,669) | ||
Change in Net Contract Liabilities | $ (5,278) | $ (1,978) | ||
Percentage of change in accounts receivable, less allowance | (5.50%) | (15.00%) | ||
Percentage of change in contract assets | (28.30%) | (12.30%) | ||
Percentage of change in Net Contract Liabilities | 545.20% | 46.30% | ||
Short-term | ||||
Change In Contract With Customer Asset And Liability [Abstract] | ||||
Change in contract liabilities | $ 2,197 | $ 691 | ||
Percentage of change in contract liabilities | (8.00%) | (2.70%) |
Segment Information - Additiona
Segment Information - Additional Information (Detail) - Segment | 6 Months Ended | 12 Months Ended |
Nov. 30, 2019 | May 31, 2019 | |
Segment Reporting [Abstract] | ||
Number of reportable segments | 4 | 3 |
Number of operating segments | 4 |
Results of Reportable Segments
Results of Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Nov. 30, 2019 | Nov. 30, 2018 | Nov. 30, 2019 | Nov. 30, 2018 | May 31, 2019 | |
Segment Reporting Information [Line Items] | |||||
Net Sales | $ 1,401,292 | $ 1,362,531 | $ 2,874,056 | $ 2,822,520 | |
Income (Loss) Before Income Taxes | 101,753 | 66,593 | 244,602 | 158,531 | |
Identifiable Assets | 5,580,998 | 5,580,998 | $ 5,441,355 | ||
Domestic | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 927,715 | 871,386 | 1,930,240 | 1,852,059 | |
Foreign | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 473,577 | 491,145 | 943,816 | 970,461 | |
Foreign | Canada | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 95,138 | 102,242 | 201,287 | 199,019 | |
Foreign | Europe | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 257,234 | 269,842 | 507,843 | 536,418 | |
Foreign | Latin America | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 59,602 | 52,503 | 117,637 | 106,557 | |
Foreign | Asia Pacific | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 42,772 | 46,719 | 81,631 | 89,615 | |
Foreign | Other Foreign | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 18,831 | 19,839 | 35,418 | 38,852 | |
Operating Segments | CPG Segment | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 499,510 | 467,298 | 1,035,615 | 984,790 | |
Income (Loss) Before Income Taxes | 57,123 | 35,357 | 139,803 | 100,401 | |
Identifiable Assets | 1,581,862 | 1,581,862 | 1,573,329 | ||
Operating Segments | CPG Segment | Domestic | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 270,908 | 229,385 | 578,567 | 519,184 | |
Operating Segments | CPG Segment | Foreign | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 228,602 | 237,913 | 457,048 | 465,606 | |
Operating Segments | CPG Segment | Foreign | Canada | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 46,199 | 53,734 | 96,642 | 97,072 | |
Operating Segments | CPG Segment | Foreign | Europe | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 117,548 | 128,628 | 231,850 | 253,915 | |
Operating Segments | CPG Segment | Foreign | Latin America | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 43,084 | 36,308 | 85,931 | 74,293 | |
Operating Segments | CPG Segment | Foreign | Asia Pacific | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 19,468 | 19,397 | 39,864 | 39,687 | |
Operating Segments | CPG Segment | Foreign | Other Foreign | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 2,303 | (154) | 2,761 | 639 | |
Operating Segments | PCG Segment | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 292,712 | 291,960 | 589,953 | 588,379 | |
Income (Loss) Before Income Taxes | 33,320 | 22,299 | 61,377 | 30,624 | |
Identifiable Assets | 975,423 | 975,423 | 951,644 | ||
Operating Segments | PCG Segment | Domestic | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 173,747 | 169,518 | 355,653 | 346,975 | |
Operating Segments | PCG Segment | Foreign | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 118,965 | 122,442 | 234,300 | 241,404 | |
Operating Segments | PCG Segment | Foreign | Canada | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 19,309 | 22,671 | 40,282 | 44,859 | |
Operating Segments | PCG Segment | Foreign | Europe | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 69,999 | 64,156 | 134,458 | 124,769 | |
Operating Segments | PCG Segment | Foreign | Latin America | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 8,842 | 8,550 | 17,283 | 18,190 | |
Operating Segments | PCG Segment | Foreign | Asia Pacific | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 6,670 | 9,312 | 14,094 | 19,525 | |
Operating Segments | PCG Segment | Foreign | Other Foreign | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 14,145 | 17,753 | 28,183 | 34,061 | |
Operating Segments | Consumer Segment | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 450,900 | 425,255 | 930,230 | 902,618 | |
Income (Loss) Before Income Taxes | 34,456 | 41,836 | 93,614 | 92,805 | |
Identifiable Assets | 2,001,829 | 2,001,829 | 1,953,279 | ||
Operating Segments | Consumer Segment | Domestic | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 358,500 | 329,934 | 739,729 | 705,470 | |
Operating Segments | Consumer Segment | Foreign | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 92,400 | 95,321 | 190,501 | 197,148 | |
Operating Segments | Consumer Segment | Foreign | Canada | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 27,075 | 23,403 | 59,580 | 52,408 | |
Operating Segments | Consumer Segment | Foreign | Europe | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 48,741 | 54,478 | 99,750 | 112,354 | |
Operating Segments | Consumer Segment | Foreign | Latin America | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 7,327 | 7,281 | 13,642 | 13,403 | |
Operating Segments | Consumer Segment | Foreign | Asia Pacific | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 6,874 | 7,919 | 13,055 | 14,831 | |
Operating Segments | Consumer Segment | Foreign | Other Foreign | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 2,383 | 2,240 | 4,474 | 4,152 | |
Operating Segments | Specialty Segment | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 158,170 | 178,018 | 318,258 | 346,733 | |
Income (Loss) Before Income Taxes | 18,762 | 26,119 | 42,089 | 49,935 | |
Identifiable Assets | 716,471 | 716,471 | 689,133 | ||
Operating Segments | Specialty Segment | Domestic | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 124,560 | 142,549 | 256,291 | 280,430 | |
Operating Segments | Specialty Segment | Foreign | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 33,610 | 35,469 | 61,967 | 66,303 | |
Operating Segments | Specialty Segment | Foreign | Canada | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 2,555 | 2,434 | 4,783 | 4,680 | |
Operating Segments | Specialty Segment | Foreign | Europe | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 20,946 | 22,580 | 41,785 | 45,380 | |
Operating Segments | Specialty Segment | Foreign | Latin America | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 349 | 364 | 781 | 671 | |
Operating Segments | Specialty Segment | Foreign | Asia Pacific | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 9,760 | 10,091 | 14,618 | 15,572 | |
Corporate/Other | |||||
Segment Reporting Information [Line Items] | |||||
Income (Loss) Before Income Taxes | (41,908) | $ (59,018) | (92,281) | $ (115,234) | |
Identifiable Assets | $ 305,413 | $ 305,413 | $ 273,970 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) | 6 Months Ended | 12 Months Ended |
Nov. 30, 2019SegmentReportingUnit | May 31, 2019Segment | |
Goodwill [Line Items] | ||
Number of operating segments | Segment | 4 | |
Industrial Segment | ||
Goodwill [Line Items] | ||
Number of operating segments | Segment | 2 | |
2020 MAP to Growth | Specialty Segment | Wood Finishes Group | ||
Goodwill [Line Items] | ||
Number of reporting units split into after realignment | ReportingUnit | 2 | |
2020 MAP to Growth | Specialty Segment | Kop-Coat Group | ||
Goodwill [Line Items] | ||
Number of reporting units split into after realignment | ReportingUnit | 2 |
Changes in Carrying Amount of G
Changes in Carrying Amount of Goodwill, by Reportable Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2019 | Aug. 31, 2019 | |
Goodwill [Line Items] | ||
Balance as of May 31, 2019 | $ 1,249,818 | $ 1,245,762 |
Acquisitions | 3,023 | 14,689 |
Translation adjustments | 6,715 | (10,633) |
Balance as of August 31, 2019 | 1,259,556 | 1,249,818 |
CPG Segment | ||
Goodwill [Line Items] | ||
Balance as of May 31, 2019 | 418,540 | |
Allocation to new segments | 407,429 | |
Acquisitions | 14,689 | |
Translation adjustments | 1,198 | (3,578) |
Balance as of August 31, 2019 | 419,738 | 418,540 |
PCG Segment | ||
Goodwill [Line Items] | ||
Balance as of May 31, 2019 | 182,682 | |
Allocation to new segments | 185,259 | |
Acquisitions | 3,023 | |
Translation adjustments | 2,683 | (2,577) |
Balance as of August 31, 2019 | 188,388 | 182,682 |
Industrial Segment | ||
Goodwill [Line Items] | ||
Balance as of May 31, 2019 | 526,419 | |
Allocation to new segments | (526,419) | |
Consumer Segment | ||
Goodwill [Line Items] | ||
Balance as of May 31, 2019 | 495,819 | 499,387 |
Translation adjustments | 2,235 | (3,568) |
Balance as of August 31, 2019 | 498,054 | 495,819 |
Specialty Segment | ||
Goodwill [Line Items] | ||
Balance as of May 31, 2019 | 152,777 | 219,956 |
Allocation to new segments | (66,269) | |
Translation adjustments | 599 | (910) |
Balance as of August 31, 2019 | $ 153,376 | $ 152,777 |