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Segment Information | 12 Months Ended
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May 31, 2020
Segment Reporting [Abstract] |
Segment Information | NOTE R — 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 SPG reportable segment. In connection with the realignment, we shifted our Kirker business out of Consumer into SPG, and also shifted our Dryvit and Nudura businesses out of SPG 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 an d 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 ge nerally 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 inf ormation 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 manage r, 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 ear nings (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. Sales to The Home Depot, Inc. represented less than 10% of our consolidated net sales for fiscal 2020, 2019 and 2018, respectively. Furthermore, sales to The Home Depot, Inc. represented 26%, 29% and 28% of our Consumer segment net sales for each of the fiscal years ended May 31, 2020, 2019 and 2018, respectively. Our SPG reportable segment products are sold throughout North America and a few international locations, primarily in Europe. Our SPG product lines are sold directly to contractors, distributors and end-users, such as industrial manufacturing facilities, public institutions and other commercial customers. The SPG 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 reflect the results of our reportable segments consistent with our management philosophy, and represent the information we utilize, in conjunction with various strategic, operational and other financial performance criteria, in evaluating the performance of our portfolio of businesses.
Year Ended May 31, |  | 2020 |  |  | 2019 |  |  | 2018 |
(In thousands) |  |  |  |  |  |  |  |  |  |  |  |
Net Sales |  |  |  |  |  |  |  |  |  |  |  |
CPG |  | $ | 1,880,105 |  |  | $ | 1,899,744 |  |  | $ | 1,837,280 |
PCG |  |  | 1,080,701 |  |  |  | 1,136,119 |  |  |  | 1,088,606 |
Consumer |  |  | 1,945,220 |  |  |  | 1,858,453 |  |  |  | 1,722,220 |
SPG |  |  | 600,968 |  |  |  | 670,235 |  |  |  | 673,537 |
Total |  | $ | 5,506,994 |  |  | $ | 5,564,551 |  |  | $ | 5,321,643 |
Income (Loss) Before Income Taxes |  |  |  |  |  |  |  |  |  |  |  |
CPG |  | $ | 209,663 |  |  | $ | 178,823 |  |  | $ | 174,032 |
PCG |  |  | 102,345 |  |  |  | 77,388 |  |  |  | 112,614 |
Consumer |  |  | 198,024 |  |  |  | 217,448 |  |  |  | 171,872 |
SPG |  |  | 57,933 |  |  |  | 86,018 |  |  |  | 107,455 |
Corporate/Other |  |  | (160,201 | ) |  |  | (219,832 | ) |  |  | (148,925 | )
Total |  | $ | 407,764 |  |  | $ | 339,845 |  |  | $ | 417,048 |
Identifiable Assets |  |  |  |  |  |  |  |  |  |  |  |
CPG |  | $ | 1,622,632 |  |  | $ | 1,573,329 |  |  | $ | 1,531,485 |
PCG |  |  | 925,569 |  |  |  | 951,644 |  |  |  | 974,104 |
Consumer |  |  | 2,067,017 |  |  |  | 1,953,279 |  |  |  | 1,833,372 |
SPG |  |  | 728,449 |  |  |  | 689,133 |  |  |  | 684,254 |
Corporate/Other |  |  | 287,287 |  |  |  | 273,970 |  |  |  | 248,607 |
Total |  | $ | 5,630,954 |  |  | $ | 5,441,355 |  |  | $ | 5,271,822 |
Capital Expenditures |  |  |  |  |  |  |  |  |  |  |  |
CPG |  | $ | 63,393 |  |  | $ | 40,119 |  |  | $ | 39,368 |
PCG |  |  | 23,868 |  |  |  | 22,158 |  |  |  | 22,102 |
Consumer |  |  | 47,331 |  |  |  | 45,039 |  |  |  | 38,341 |
SPG |  |  | 21,610 |  |  |  | 28,006 |  |  |  | 14,213 |
Corporate/Other |  |  | 1,077 |  |  |  | 1,435 |  |  |  | 595 |
Total |  | $ | 157,279 |  |  | $ | 136,757 |  |  | $ | 114,619 |
Depreciation and Amortization |  |  |  |  |  |  |  |  |  |  |  |
CPG |  | $ | 46,491 |  |  | $ | 44,150 |  |  | $ | 41,538 |
PCG |  |  | 23,850 |  |  |  | 27,116 |  |  |  | 21,394 |
Consumer |  |  | 56,570 |  |  |  | 40,231 |  |  |  | 36,744 |
SPG |  |  | 24,111 |  |  |  | 25,199 |  |  |  | 23,085 |
Corporate/Other |  |  | 5,820 |  |  |  | 5,046 |  |  |  | 5,738 |
Total |  | $ | 156,842 |  |  | $ | 141,742 |  |  | $ | 128,499 |
Year Ended May 31, 2020 |  | CPG Segment |  |  | PCG Segment |  |  | Consumer Segment |  |  | SPG Segment |  |  | Consolidated |
(In thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net Sales (based on shipping location) (a) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 1,068,552 |  |  | $ | 656,162 |  |  | $ | 1,573,966 |  |  | $ | 489,543 |  |  | $ | 3,788,223 |
Foreign |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Canada |  |  | 159,986 |  |  |  | 71,689 |  |  |  | 116,424 |  |  |  | 8,354 |  |  |  | 356,453 |
Europe |  |  | 418,249 |  |  |  | 247,904 |  |  |  | 195,783 |  |  |  | 74,162 |  |  |  | 936,098 |
Latin America |  |  | 151,099 |  |  |  | 32,471 |  |  |  | 24,909 |  |  |  | 1,328 |  |  |  | 209,807 |
Asia Pacific |  |  | 73,629 |  |  |  | 24,622 |  |  |  | 26,432 |  |  |  | 27,581 |  |  |  | 152,264 |
Other Foreign |  |  | 8,590 |  |  |  | 47,853 |  |  |  | 7,706 |  |  |  | - |  |  |  | 64,149 |
Total Foreign |  |  | 811,553 |  |  |  | 424,539 |  |  |  | 371,254 |  |  |  | 111,425 |  |  |  | 1,718,771 |
Total |  | $ | 1,880,105 |  |  | $ | 1,080,701 |  |  | $ | 1,945,220 |  |  | $ | 600,968 |  |  | $ | 5,506,994 |
Year Ended May 31, 2019 |  | CPG Segment |  |  | PCG Segment |  |  | Consumer Segment |  |  | SPG Segment |  |  | Consolidated |
(In thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net Sales (based on shipping location) (a) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 1,003,227 |  |  | $ | 667,402 |  |  | $ | 1,462,446 |  |  | $ | 543,429 |  |  | $ | 3,676,504 |
Foreign |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Canada |  |  | 181,089 |  |  |  | 82,897 |  |  |  | 117,305 |  |  |  | 8,908 |  |  |  | 390,199 |
Europe |  |  | 477,761 |  |  |  | 251,600 |  |  |  | 213,466 |  |  |  | 86,197 |  |  |  | 1,029,024 |
Latin America |  |  | 155,039 |  |  |  | 34,588 |  |  |  | 28,020 |  |  |  | 1,397 |  |  |  | 219,044 |
Asia Pacific |  |  | 81,895 |  |  |  | 36,498 |  |  |  | 29,171 |  |  |  | 30,304 |  |  |  | 177,868 |
Other Foreign |  |  | 733 |  |  |  | 63,134 |  |  |  | 8,045 |  |  |  | - |  |  |  | 71,912 |
Total Foreign |  |  | 896,517 |  |  |  | 468,717 |  |  |  | 396,007 |  |  |  | 126,806 |  |  |  | 1,888,047 |
Total |  | $ | 1,899,744 |  |  | $ | 1,136,119 |  |  | $ | 1,858,453 |  |  | $ | 670,235 |  |  | $ | 5,564,551 |
Year Ended May 31, 2018 |  | CPG Segment |  |  | PCG Segment |  |  | Consumer Segment |  |  | SPG Segment |  |  | Consolidated |
(In thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net Sales (based on shipping location) (a) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 938,062 |  |  | $ | 628,177 |  |  | $ | 1,325,509 |  |  | $ | 540,286 |  |  | $ | 3,432,034 |
Foreign |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Canada |  |  | 166,600 |  |  |  | 83,607 |  |  |  | 106,460 |  |  |  | 8,682 |  |  |  | 365,349 |
Europe |  |  | 485,583 |  |  |  | 241,639 |  |  |  | 221,484 |  |  |  | 91,712 |  |  |  | 1,040,418 |
Latin America |  |  | 160,010 |  |  |  | 37,849 |  |  |  | 27,834 |  |  |  | 1,514 |  |  |  | 227,207 |
Asia Pacific |  |  | 82,856 |  |  |  | 29,856 |  |  |  | 32,492 |  |  |  | 31,343 |  |  |  | 176,547 |
Other Foreign |  |  | 4,169 |  |  |  | 67,478 |  |  |  | 8,441 |  |  |  | - |  |  |  | 80,088 |
Total Foreign |  |  | 899,218 |  |  |  | 460,429 |  |  |  | 396,711 |  |  |  | 133,251 |  |  |  | 1,889,609 |
Total |  | $ | 1,837,280 |  |  | $ | 1,088,606 |  |  | $ | 1,722,220 |  |  | $ | 673,537 |  |  | $ | 5,321,643 |
Year Ended May 31, |  | 2020 |  |  | 2019 |  |  | 2018 |  |  |  |  |  |  |  |  |
(In thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Long-Lived Assets (b) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 2,146,333 |  |  | $ | 1,859,628 |  |  | $ | 1,807,046 |  |  |  |  |  |  |  |  |
Foreign |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Canada |  |  | 224,177 |  |  |  | 242,582 |  |  |  | 139,259 |  |  |  |  |  |  |  |  |
Europe |  |  | 358,511 |  |  |  | 343,501 |  |  |  | 361,317 |  |  |  |  |  |  |  |  |
United Kingdom |  |  | 252,185 |  |  |  | 217,414 |  |  |  | 230,071 |  |  |  |  |  |  |  |  |
Other Foreign |  |  | 195,425 |  |  |  | 225,230 |  |  |  | 241,301 |  |  |  |  |  |  |  |  |
Total Foreign |  |  | 1,030,298 |  |  |  | 1,028,727 |  |  |  | 971,948 |  |  |  |  |  |  |  |  |
Total |  | $ | 3,176,631 |  |  | $ | 2,888,355 |  |  | $ | 2,778,994 |  |  |  |  |  |  |  |  |
(a) | It is not practicable to obtain the information needed to disclose revenues attributable to each of our product lines.
(b) | Long-lived assets include all non-current assets, excluding non-current deferred income taxes.

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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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