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 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 in to Specialty, and also shifted our Dryvit and Nudura businesses out of Specialty into CPG. The newly formed CPG a lso include s our Tremco, T remco i llbruck, Euclid Chemical, Viapol, Vandex and Flowcrete businesses. PCG include s Stonhard, Carboline, USL and Fibergrate businesses , while Consumer comprise s 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 Consumer reportable segment manufactures and markets professional use and do-it-yourself (“DIY”) products for a variety of mainly consumer applications, including home improvement and personal leisure activities. Our Consumer segment’s major manufacturing and distribution operations are located primarily in North America, along with a few locations in Europe and other parts of the world. Our consumer reportable segment products are primarily sold directly to mass merchandisers, home improvement centers, hardware stores, paint stores, craft shops and through distributors. The Consumer reportable segment offers products 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 February 29, 2020 CPG Segment PCG Segment Consumer Segment Specialty Segment Consolidated (In thousands) Net Sales (based on shipping location) United States $ 190,741 $ 151,012 $ 319,838 $ 119,526 $ 781,117 Foreign Canada 25,978 17,064 21,280 2,041 66,363 Europe 95,207 61,191 42,569 18,685 217,652 Latin America 38,803 8,946 6,987 397 55,133 Asia Pacific 18,390 5,705 6,159 6,816 37,070 Other Foreign 2,963 11,768 1,910 - 16,641 Total Foreign 181,341 104,674 78,905 27,939 392,859 Total $ 372,082 $ 255,686 $ 398,743 $ 147,465 $ 1,173,976 Three Months Ended February 28, 2019 CPG Segment PCG Segment Consumer Segment Specialty Segment Consolidated (In thousands) Net Sales (based on shipping location) United States $ 170,959 $ 147,553 $ 298,022 $ 124,273 $ 740,807 Foreign Canada 28,484 18,210 21,404 1,895 69,993 Europe 100,022 57,014 43,367 19,298 219,701 Latin America 35,735 8,685 6,781 306 51,507 Asia Pacific 20,087 8,328 6,903 7,988 43,306 Other Foreign 45 13,435 1,836 - 15,316 Total Foreign 184,373 105,672 80,291 29,487 399,823 Total $ 355,332 $ 253,225 $ 378,313 $ 153,760 $ 1,140,630 Nine Months Ended February 29, 2020 CPG Segment PCG Segment Consumer Segment Specialty Segment Consolidated (In thousands) Net Sales (based on shipping location) United States $ 769,308 $ 506,664 $ 1,059,568 $ 375,817 $ 2,711,357 Foreign Canada 122,620 57,345 80,860 6,824 267,649 Europe 327,057 195,650 142,319 60,470 725,496 Latin America 124,734 26,230 20,629 1,177 172,770 Asia Pacific 58,254 19,799 19,214 21,435 118,702 Other Foreign 5,724 39,951 6,384 - 52,059 Total Foreign 638,389 338,975 269,406 89,906 1,336,676 Total $ 1,407,697 $ 845,639 $ 1,328,974 $ 465,723 $ 4,048,033 Nine Months Ended February 28, 2019 CPG Segment PCG Segment Consumer Segment Specialty Segment Consolidated (In thousands) Net Sales (based on shipping location) United States $ 690,142 $ 494,528 $ 1,003,493 $ 404,704 $ 2,592,867 Foreign Canada 125,556 63,069 73,813 6,574 269,012 Europe 353,937 181,784 155,722 64,678 756,121 Latin America 110,028 26,877 20,183 976 158,064 Asia Pacific 59,775 27,852 21,733 23,560 132,920 Other Foreign 684 47,495 5,987 - 54,166 Total Foreign 649,980 347,077 277,438 95,788 1,370,283 Total $ 1,340,122 $ 841,605 $ 1,280,931 $ 500,492 $ 3,963,150 Three Months Ended Nine Months Ended (In thousands) February 29, February 28, February 29, February 28, Income (Loss) Before Income Taxes 2020 2019 2020 2019 CPG Segment $ (478 ) $ (4,025 ) $ 139,324 $ 96,375 PCG Segment 22,240 14,365 83,617 44,990 Consumer Segment 29,798 25,272 123,413 118,078 Specialty Segment 12,942 16,115 55,031 66,049 Corporate/Other (48,194 ) (47,263 ) (140,476 ) (162,497 ) Consolidated $ 16,308 $ 4,464 $ 260,909 $ 162,995 (In thousands) February 29, May 31, Identifiable Assets 2020 2019 CPG Segment $ 1,518,968 $ 1,573,329 PCG Segment 966,995 951,644 Consumer Segment 2,018,854 1,953,279 Specialty Segment 737,203 689,133 Corporate/Other 323,850 273,970 Consolidated $ 5,565,870 $ 5,441,355 |