Segment Information

12 Months Ended

May 31, 2023

Segment Reporting [Abstract]

Segment Information

NOTE R — 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 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 and services are sold throughout North America and also account for the majority of our international sales. Our construction product lines are sold directly to manufacturers, contractors, distributors and end-users, including industrial manufacturing facilities, concrete and cement producers, 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 and services 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 DIY products for a variety of mainly residential 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, Australia and South America. 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. Sales to The Home Depot, Inc. represented less than 10% of our consolidated net sales for fiscal 2023, 2022 and 2021, respectively. Furthermore, sales to The Home Depot, Inc. represented 23%, 25% and 26% of our Consumer segment net sales for each of the fiscal years ended May 31, 2023, 2022 and 2021, respectively.

Our SPG reportable segment products are sold throughout North America and internationally, 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 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.

Year Ended May 31,	2023			2022			2021
(In thousands)
Net Sales
CPG	$	2,608,872		$	2,486,486		$	2,076,565
PCG		1,333,567			1,188,379			1,028,456
Consumer		2,514,770			2,242,047			2,295,277
SPG		799,205			790,816			705,990
Total	$	7,256,414		$	6,707,728		$	6,106,288
Income (Loss) Before Income Taxes
CPG	$	309,683		$	396,509		$	291,773
PCG		133,757			139,068			90,687
Consumer		378,157			175,084			354,789
SPG		103,279			121,937			108,242
Corporate/Other		(275,494	)		(225,799	)		(177,053	)
Total	$	649,382		$	606,799		$	668,438
Identifiable Assets
CPG	$	2,297,862		$	2,160,071		$	1,815,303
PCG		1,118,360			1,115,780			1,051,334
Consumer		2,384,782			2,405,764			2,386,703
SPG		804,762			839,419			772,540
Corporate/Other		176,238			186,672			227,089
Total	$	6,782,004		$	6,707,706		$	6,252,969
Capital Expenditures
CPG	$	110,777		$	93,327		$	65,830
PCG		29,454			28,887			19,413
Consumer		61,500			70,227			54,986
SPG		49,801			26,939			18,989
Corporate/Other		1,979			585			223
Total	$	253,511		$	219,965		$	159,441
Depreciation and Amortization
CPG	$	49,993		$	48,009		$	45,079
PCG		23,064			22,287			22,633
Consumer		52,081			50,857			47,763
SPG		24,897			26,718			26,017
Corporate/Other		4,914			5,203			5,365
Total	$	154,949		$	153,074		$	146,857

Year Ended May 31, 2023	CPG Segment		PCG Segment		Consumer Segment		SPG Segment		Consolidated
(In thousands)
Net Sales (based on shipping location) (1)
United States	$	1,572,060	$	861,190	$	2,078,519	$	680,159	$	5,191,928
Foreign
Canada		243,608		85,812		178,678		4,084		512,182
Europe		469,064		233,872		212,558		81,260		996,754
Latin America		224,073		39,395		26,315		1,720		291,503
Asia Pacific		100,067		23,234		18,700		31,982		173,983
Other Foreign		-		90,064		-		-		90,064
Total Foreign		1,036,812		472,377		436,251		119,046		2,064,486
Total	$	2,608,872	$	1,333,567	$	2,514,770	$	799,205	$	7,256,414
Year Ended May 31, 2022	CPG Segment		PCG Segment		Consumer Segment		SPG Segment		Consolidated
(In thousands)
Net Sales (based on shipping location) (1)
United States	$	1,423,473	$	739,731	$	1,829,384	$	647,660	$	4,640,248
Foreign
Canada		265,933		76,085		144,032		7,208		493,258
Europe		509,891		235,678		221,280		99,324		1,066,173
Latin America		203,135		29,792		29,940		1,772		264,639
Asia Pacific		83,989		23,435		17,411		34,852		159,687
Other Foreign		65		83,658		-		-		83,723
Total Foreign		1,063,013		448,648		412,663		143,156		2,067,480
Total	$	2,486,486	$	1,188,379	$	2,242,047	$	790,816	$	6,707,728
Year Ended May 31, 2021	CPG Segment		PCG Segment		Consumer Segment		SPG Segment		Consolidated
(In thousands)
Net Sales (based on shipping location) (1)
United States	$	1,135,341	$	611,808	$	1,832,826	$	581,094	$	4,161,069
Foreign
Canada		208,289		69,754		153,631		8,982		440,656
Europe		481,244		242,102		257,372		82,170		1,062,888
Latin America		159,197		26,283		31,358		1,826		218,664
Asia Pacific		79,413		22,658		20,090		31,918		154,079
Other Foreign		13,081		55,851		-		-		68,932
Total Foreign		941,224		416,648		462,451		124,896		1,945,219
Total	$	2,076,565	$	1,028,456	$	2,295,277	$	705,990	$	6,106,288

Year Ended May 31,	2023		2022		2021
(In thousands)
Long-Lived Assets (2)
United States	$	2,551,717	$	2,533,568	$	2,325,365
Foreign
Canada		244,182		223,793		235,810
Europe		357,359		324,001		394,168
United Kingdom		245,411		259,956		290,078
Other Foreign		183,697		195,665		198,740
Total Foreign		1,030,649		1,003,415		1,118,796
Total	$	3,582,366	$	3,536,983	$	3,444,161

(1)It is not practicable to obtain the information needed to disclose revenues attributable to each of our product lines.

(2)Long-lived assets include all non-current assets, excluding non-current deferred income taxes.