Segment Information

6 Months Ended

Nov. 30, 2021

Segment Reporting [Abstract]

Segment Information

NOTE 16 — 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 November 30, 2021	CPG Segment			PCG Segment		Consumer Segment		SPG Segment		Consolidated
(In thousands)
Net Sales (based on shipping location)
United States	$	342,282		$	187,838	$	431,450	$	153,188	$	1,114,758
Foreign
Canada		68,901			18,684		30,340		2,091		120,016
Europe		132,575			60,958		55,070		25,991		274,594
Latin America		49,486			6,846		7,911		545		64,788
Asia Pacific		20,951			5,488		4,426		11,809		42,674
Other Foreign		(5	)		22,713		-		-		22,708
Total Foreign		271,908			114,689		97,747		40,436		524,780
Total	$	614,190		$	302,527	$	529,197	$	193,624	$	1,639,538
Three Months Ended November 30, 2020	CPG Segment			PCG Segment		Consumer Segment		SPG Segment		Consolidated
(In thousands)
Net Sales (based on shipping location)
United States	$	261,092		$	148,480	$	441,235	$	140,212	$	991,019
Foreign
Canada		48,686			18,196		29,460		2,209		98,551
Europe		129,586			63,891		63,454		21,644		278,575
Latin America		40,137			7,139		8,769		415		56,460
Asia Pacific		20,948			5,797		4,590		11,574		42,909
Other Foreign		3,071			15,330		-		-		18,401
Total Foreign		242,428			110,353		106,273		35,842		494,896
Total	$	503,520		$	258,833	$	547,508	$	176,054	$	1,485,915
Six Months Ended November 30, 2021	CPG Segment			PCG Segment		Consumer Segment		SPG Segment		Consolidated
(In thousands)
Net Sales (based on shipping location)
United States	$	714,595		$	364,032	$	863,849	$	302,599	$	2,245,075
Foreign
Canada		145,461			37,135		64,282		4,231		251,109
Europe		262,993			118,793		115,337		50,326		547,449
Latin America		96,908			13,237		15,228		1,039		126,412
Asia Pacific		38,555			12,149		8,910		17,484		77,098
Other Foreign		40			42,776		-		-		42,816
Total Foreign		543,957			224,090		203,757		73,080		1,044,884
Total	$	1,258,552		$	588,122	$	1,067,606	$	375,679	$	3,289,959
Six Months Ended November 30, 2020	CPG Segment			PCG Segment		Consumer Segment		SPG Segment		Consolidated
(In thousands)
Net Sales (based on shipping location)
United States	$	589,053		$	304,542	$	950,819	$	273,710	$	2,118,124
Foreign
Canada		104,328			35,309		78,368		4,129		222,134
Europe		238,305			127,526		131,064		38,639		535,534
Latin America		74,990			12,733		16,161		880		104,764
Asia Pacific		38,588			10,682		12,264		16,720		78,254
Other Foreign		5,946			27,830		-		-		33,776
Total Foreign		462,157			214,080		237,857		60,368		974,462
Total	$	1,051,210		$	518,622	$	1,188,676	$	334,078	$	3,092,586

	Three Months Ended						Six Months Ended
(In thousands)	November 30,			November 30,			November 30,			November 30,
Income (Loss) Before Income Taxes	2021			2020			2021			2020
CPG Segment	$	130,368		$	71,832		$	244,725		$	170,182
PCG Segment		37,854			24,047			72,932			52,561
Consumer Segment		33,104			88,368			79,019			221,089
SPG Segment		20,591			28,406			45,147			48,855
Corporate/Other		(58,763	)		(45,697	)		(97,198	)		(84,362	)
Consolidated	$	163,154		$	166,956		$	344,625		$	408,325

(In thousands)	November 30,		May 31,
Identifiable Assets	2021		2021
CPG Segment	$	1,925,191	$	1,815,303
PCG Segment		1,070,680		1,051,334
Consumer Segment		2,322,257		2,386,703
SPG Segment		790,776		772,540
Corporate/Other		145,995		227,089
Consolidated	$	6,254,899	$	6,252,969