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Segment Information | 6 Months Ended
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Nov. 30, 2018
Segment Reporting [Abstract] |
Segment Information | NOTE 17 — SEGMENT INFORMATION During the quarter ended August 31, 2018, we made the determination to streamline certain businesses and management structures within our industrial reportable segment. As a result, our former tremco illbruck Group, Tremco Group and several components from our Performance Coatings Group, including our Euclid and Flowcrete businesses, were combined to form a new Construction Products Group. There were no changes in the composition of any of our reportable segments and, therefore, previously reported business segment information remains unchanged. We operate a portfolio of businesses and product lines that manufacture and sell a variety of specialty paints, protective coatings and roofing systems, sealants and adhesives. We manage our portfolio by organizing our businesses and product lines into three reportable segments: the industrial reportable segment, the consumer reportable segment and the specialty reportable segment. Within each reportable segment, we aggregate operating segments or product lines that consist of individual companies or groups of companies and product lines, which generally address common markets, share similar economic characteristics, utilize similar technologies and can share manufacturing or distribution capabilities. Our six 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 six operating segments are each managed by an operating segment manager, who is responsible for the day-to-day operating decisions and performance evaluation of the operating segment’s underlying businesses. Our industrial reportable segment products are sold throughout North America and also account for the majority of our international sales. Our industrial product lines are sold directly to contractors, distributors and end-users, such as industrial manufacturing facilities, public institutions and other commercial customers. The industrial reportable segment comprises two separate operating segments — Construction Products Group and Performance Coatings Group. Products and services within this reportable segment include construction chemicals, roofing systems, weatherproofing and other sealants, and polymer flooring. Our consumer reportable segment manufactures and markets professional use and do-it-yourself (“DIY”) products for a variety of mainly consumer applications, including home improvement and personal leisure activities. Our consumer segment’s major manufacturing and distribution operations are located primarily in North America, along with a few locations in Europe and other parts of the world. Our consumer reportable segment products are primarily sold directly to mass merchandisers, home improvement centers, hardware stores, paint stores, craft shops, cosmetic companies and through distributors. This reportable segment comprises three operating segments — Rust-Oleum Group, DAP Group and SPG-Consumer Group. Products within this reportable segment include specialty, hobby and professional paints; nail enamels; 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 is a single operating segment, which offers products that include industrial cleaners, restoration services equipment, colorants, exterior finishes, edible coatings and specialty glazes for pharmaceutical and food industries, and other specialty OEM coatings. In addition to our three reportable segments, there is a category of certain business activities and expenses, referred to as corporate/other, that does not constitute an operating segment. This category includes our corporate headquarters and related administrative expenses, results of our captive insurance companies, gains or losses on the sales of certain assets and other expenses not directly associated with any reportable segment. Assets related to the corporate/other category consist primarily of investments, prepaid expenses and headquarters’ property and equipment. These corporate and other assets and expenses reconcile reportable segment data to total consolidated income before income taxes and identifiable assets. We reflect income from our joint ventures on the equity method, and receive royalties from our licensees. The following tables 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.
Three Months Ended November 30, 2018 |  | Industrial Segment |  |  | Consumer Segment |  |  | Specialty Segment |  |  | Consolidated |
(In thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net Sales (based on shipping location) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 375,953 |  |  | $ | 336,081 |  |  | $ | 159,352 |  |  | $ | 871,386 |
Foreign |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Canada |  |  | 61,754 |  |  |  | 23,403 |  |  |  | 17,085 |  |  |  | 102,242 |
Europe |  |  | 189,095 |  |  |  | 55,653 |  |  |  | 25,094 |  |  |  | 269,842 |
Latin America |  |  | 44,858 |  |  |  | 7,281 |  |  |  | 364 |  |  |  | 52,503 |
Asia Pacific |  |  | 28,708 |  |  |  | 7,919 |  |  |  | 10,092 |  |  |  | 46,719 |
Other Foreign |  |  | 17,600 |  |  |  | 2,239 |  |  |  | - |  |  |  | 19,839 |
Total Foreign |  |  | 342,015 |  |  |  | 96,495 |  |  |  | 52,635 |  |  |  | 491,145 |
Total |  | $ | 717,968 |  |  | $ | 432,576 |  |  | $ | 211,987 |  |  | $ | 1,362,531 |
Three Months Ended November 30, 2017 |  | Industrial Segment |  |  | Consumer Segment |  |  | Specialty Segment |  |  | Consolidated |
(In thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net Sales (based on shipping location) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 361,932 |  |  | $ | 315,642 |  |  | $ | 156,137 |  |  | $ | 833,711 |
Foreign |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Canada |  |  | 63,217 |  |  |  | 23,660 |  |  |  | 6,054 |  |  |  | 92,931 |
Europe |  |  | 183,093 |  |  |  | 57,226 |  |  |  | 23,585 |  |  |  | 263,904 |
Latin America |  |  | 49,028 |  |  |  | 7,943 |  |  |  | 289 |  |  |  | 57,260 |
Asia Pacific |  |  | 28,398 |  |  |  | 8,736 |  |  |  | 11,015 |  |  |  | 48,149 |
Other Foreign |  |  | 17,237 |  |  |  | 2,224 |  |  |  | - |  |  |  | 19,461 |
Total Foreign |  |  | 340,973 |  |  |  | 99,789 |  |  |  | 40,943 |  |  |  | 481,705 |
Total |  | $ | 702,905 |  |  | $ | 415,431 |  |  | $ | 197,080 |  |  | $ | 1,315,416 |
Six Months Ended November 30, 2018 |  | Industrial Segment |  |  | Consumer Segment |  |  | Specialty Segment |  |  | Consolidated |
(In thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net Sales (based on shipping location) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 818,574 |  |  | $ | 717,748 |  |  | $ | 315,737 |  |  | $ | 1,852,059 |
Foreign |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Canada |  |  | 122,763 |  |  |  | 52,409 |  |  |  | 23,847 |  |  |  | 199,019 |
Europe |  |  | 372,209 |  |  |  | 115,229 |  |  |  | 48,980 |  |  |  | 536,418 |
Latin America |  |  | 92,485 |  |  |  | 13,402 |  |  |  | 670 |  |  |  | 106,557 |
Asia Pacific |  |  | 59,211 |  |  |  | 14,831 |  |  |  | 15,573 |  |  |  | 89,615 |
Other Foreign |  |  | 34,699 |  |  |  | 4,153 |  |  |  | - |  |  |  | 38,852 |
Total Foreign |  |  | 681,367 |  |  |  | 200,024 |  |  |  | 89,070 |  |  |  | 970,461 |
Total |  | $ | 1,499,941 |  |  | $ | 917,772 |  |  | $ | 404,807 |  |  | $ | 2,822,520 |
Six Months Ended November 30, 2017 |  | Industrial Segment |  |  | Consumer Segment |  |  | Specialty Segment |  |  | Consolidated |
(In thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net Sales (based on shipping location) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 761,220 |  |  | $ | 640,292 |  |  | $ | 306,561 |  |  | $ | 1,708,073 |
Foreign |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Canada |  |  | 126,051 |  |  |  | 50,237 |  |  |  | 13,110 |  |  |  | 189,398 |
Europe |  |  | 362,176 |  |  |  | 117,681 |  |  |  | 48,624 |  |  |  | 528,481 |
Latin America |  |  | 94,552 |  |  |  | 13,636 |  |  |  | 754 |  |  |  | 108,942 |
Asia Pacific |  |  | 55,065 |  |  |  | 16,608 |  |  |  | 16,513 |  |  |  | 88,186 |
Other Foreign |  |  | 33,609 |  |  |  | 4,121 |  |  |  | - |  |  |  | 37,730 |
Total Foreign |  |  | 671,453 |  |  |  | 202,283 |  |  |  | 79,001 |  |  |  | 952,737 |
Total |  | $ | 1,432,673 |  |  | $ | 842,575 |  |  | $ | 385,562 |  |  | $ | 2,660,810 |
|  | Three Months Ended |  |  | Six Months Ended |
|  | November 30, |  |  | November 30, |  |  | November 30, |  |  | November 30, |
|  | 2018 |  |  | 2017 |  |  | 2018 |  |  | 2017 |
|  | (In thousands) |  |  |  |  |  |  |  |  |
Income (Loss) Before Income Taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Industrial Segment |  | $ | 54,393 |  |  | $ | 67,696 |  |  | $ | 123,450 |  |  | $ | 156,598 |
Consumer Segment |  |  | 41,239 |  |  |  | 45,085 |  |  |  | 92,535 |  |  |  | 117,453 |
Specialty Segment |  |  | 29,979 |  |  |  | 34,439 |  |  |  | 57,780 |  |  |  | 67,606 |
Corporate/Other |  |  | (59,018 | ) |  |  | (38,039 | ) |  |  | (115,234 | ) |  |  | (77,192 | )
Consolidated |  | $ | 66,593 |  |  | $ | 109,181 |  |  | $ | 158,531 |  |  | $ | 264,465 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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