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Segment Information
3 Months Ended
Aug. 31, 2021
Segment Reporting [Abstract]  
Segment Information

NOTE 15 — SEGMENT INFORMATION

We operate a portfolio of businesses and product lines that manufacture and sell a variety of specialty paints, protective coatings and roofing systems, flooring solutions, sealants, cleaners and adhesives. We manage our portfolio by organizing our businesses and product lines into four reportable segments as outlined below, 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”), as a performance evaluation measure because interest (income) expense, net (the combination of interest expense and investment income, net) is essentially related to corporate functions, 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 reportable 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; cleaners; sandpaper and other abrasives; silicone sealants and wood stains.

Our SPG 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 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 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 August 31, 2021

 

CPG
Segment

 

 

PCG
Segment

 

 

Consumer
Segment

 

 

SPG
Segment

 

 

Consolidated

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales (based on shipping location)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

372,313

 

 

$

176,194

 

 

$

432,399

 

 

$

149,411

 

 

$

1,130,317

 

Foreign

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Canada

 

 

76,559

 

 

 

18,452

 

 

 

33,942

 

 

 

2,140

 

 

 

131,093

 

Europe

 

 

130,418

 

 

 

57,835

 

 

 

60,267

 

 

 

24,335

 

 

 

272,855

 

Latin America

 

 

47,422

 

 

 

6,390

 

 

 

7,318

 

 

 

494

 

 

 

61,624

 

Asia Pacific

 

 

17,605

 

 

 

6,661

 

 

 

4,482

 

 

 

5,675

 

 

 

34,423

 

Other Foreign

 

 

45

 

 

 

20,063

 

 

 

-

 

 

 

-

 

 

 

20,108

 

Total Foreign

 

 

272,049

 

 

 

109,401

 

 

 

106,009

 

 

 

32,644

 

 

 

520,103

 

Total

 

$

644,362

 

 

$

285,595

 

 

$

538,408

 

 

$

182,055

 

 

$

1,650,420

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended August 31, 2020

 

CPG
Segment

 

 

PCG
Segment

 

 

Consumer
Segment

 

 

SPG
Segment

 

 

Consolidated

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales (based on shipping location)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

327,961

 

 

$

156,062

 

 

$

509,584

 

 

$

133,497

 

 

$

1,127,104

 

Foreign

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Canada

 

 

55,642

 

 

 

17,112

 

 

 

48,908

 

 

 

1,920

 

 

 

123,582

 

Europe

 

 

108,720

 

 

 

63,634

 

 

 

67,610

 

 

 

16,996

 

 

 

256,960

 

Latin America

 

 

34,853

 

 

 

5,594

 

 

 

7,392

 

 

 

465

 

 

 

48,304

 

Asia Pacific

 

 

17,639

 

 

 

4,886

 

 

 

7,674

 

 

 

5,146

 

 

 

35,345

 

Other Foreign

 

 

2,875

 

 

 

12,500

 

 

 

-

 

 

 

-

 

 

 

15,375

 

Total Foreign

 

 

219,729

 

 

 

103,726

 

 

 

131,584

 

 

 

24,527

 

 

 

479,566

 

Total

 

$

547,690

 

 

$

259,788

 

 

$

641,168

 

 

$

158,024

 

 

$

1,606,670

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

(In thousands)

 

August 31,

 

 

August 31,

 

Income (Loss) Before Income Taxes

 

2021

 

 

2020

 

CPG Segment

 

$

114,357

 

 

$

98,349

 

PCG Segment

 

 

35,077

 

 

 

28,514

 

Consumer Segment

 

 

45,915

 

 

 

132,722

 

SPG Segment

 

 

24,556

 

 

 

20,449

 

Corporate/Other

 

 

(38,434

)

 

 

(38,665

)

Consolidated

 

$

181,471

 

 

$

241,369

 

 

 

 

(In thousands)

 

August 31,

 

 

May 31,

 

Identifiable Assets

 

2021

 

 

2021

 

CPG Segment

 

$

1,959,388

 

 

$

1,815,303

 

PCG Segment

 

 

1,059,611

 

 

 

1,051,334

 

Consumer Segment

 

 

2,156,400

 

 

 

2,386,703

 

SPG Segment

 

 

770,902

 

 

 

772,540

 

Corporate/Other

 

 

219,903

 

 

 

227,089

 

Consolidated

 

$

6,166,204

 

 

$

6,252,969