Segment Information

9 Months Ended

Feb. 28, 2023

Segment Reporting [Abstract]

Segment Information

NOTE 17 — SEGMENT INFORMATION

We operate a portfolio of businesses and product lines that manufacture and sell a variety of specialty paints, protective coatings, 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 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 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 February 28, 2023	CPG Segment		PCG Segment		Consumer Segment		SPG Segment		Consolidated
(In thousands)
Net Sales (based on shipping location)
United States	$	280,916	$	189,913	$	431,829	$	163,056	$	1,065,714
Foreign
Canada		34,934		18,662		37,957		898		92,451
Europe		107,609		56,192		47,613		19,084		230,498
Latin America		51,728		9,047		6,666		455		67,896
Asia Pacific		21,827		5,784		4,466		7,511		39,588
Other Foreign		-		20,029		-		-		20,029
Total Foreign		216,098		109,714		96,702		27,948		450,462
Total	$	497,014	$	299,627	$	528,531	$	191,004	$	1,516,176
Three Months Ended February 28, 2022	CPG Segment		PCG Segment		Consumer Segment		SPG Segment		Consolidated
(In thousands)
Net Sales (based on shipping location)
United States	$	259,606	$	167,623	$	403,524	$	154,516	$	985,269
Foreign
Canada		39,479		17,220		29,432		1,378		87,509
Europe		114,226		54,057		46,695		24,121		239,099
Latin America		47,459		7,720		7,707		368		63,254
Asia Pacific		21,256		5,431		4,259		8,988		39,934
Other Foreign		-		18,814		-		-		18,814
Total Foreign		222,420		103,242		88,093		34,855		448,610
Total	$	482,026	$	270,865	$	491,617	$	189,371	$	1,433,879
Nine Months Ended February 28, 2023	CPG Segment		PCG Segment		Consumer Segment		SPG Segment		Consolidated
(In thousands)
Net Sales (based on shipping location)
United States	$	1,124,047	$	628,320	$	1,486,556	$	515,078	$	3,754,001
Foreign
Canada		170,415		63,636		127,039		2,946		364,036
Europe		340,589		169,912		150,738		61,242		722,481
Latin America		158,992		29,168		20,217		1,195		209,572
Asia Pacific		66,782		17,941		13,832		25,324		123,879
Other Foreign		-		66,235		-		-		66,235
Total Foreign		736,778		346,892		311,826		90,707		1,486,203
Total	$	1,860,825	$	975,212	$	1,798,382	$	605,785	$	5,240,204
Nine Months Ended February 28, 2022	CPG Segment		PCG Segment		Consumer Segment		SPG Segment		Consolidated
(In thousands)
Net Sales (based on shipping location)
United States	$	974,201	$	531,655	$	1,267,373	$	457,115	$	3,230,344
Foreign
Canada		184,940		54,355		93,714		5,609		338,618
Europe		377,220		172,850		162,032		74,446		786,548
Latin America		144,366		20,958		22,935		1,407		189,666
Asia Pacific		59,811		17,579		13,169		26,473		117,032
Other Foreign		40		61,590		-		-		61,630
Total Foreign		766,377		327,332		291,850		107,935		1,493,494
Total	$	1,740,578	$	858,987	$	1,559,223	$	565,050	$	4,723,838

	Three Months Ended						Nine Months Ended
(In thousands)	February 28,			February 28,			February 28,			February 28,
Income (Loss) Before Income Taxes	2023			2022			2023			2022
CPG Segment	$	8,181		$	31,498		$	192,836		$	276,223
PCG Segment		(8,352	)		24,917			83,896			97,849
Consumer Segment		68,146			16,893			278,708			95,912
SPG Segment		39,482			25,881			94,798			71,028
Corporate/Other		(64,970	)		(58,692	)		(207,495	)		(155,890	)
Consolidated	$	42,487		$	40,497		$	442,743		$	385,122

(In thousands)	February 28,		May 31,
Identifiable Assets	2023		2022
CPG Segment	$	2,163,171	$	2,160,071
PCG Segment		1,102,585		1,115,780
Consumer Segment		2,360,032		2,405,764
SPG Segment		822,343		839,419
Corporate/Other		161,292		186,672
Consolidated	$	6,609,423	$	6,707,706