Segment Information

9 Months Ended

Feb. 29, 2024

Segment Reporting [Abstract]

Segment Information

NOTE 18 — 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.

Effective June 1, 2023, certain Asia Pacific businesses and management structure, formerly of our CPG segment, were transferred to our PCG segment to create operating efficiencies and a more unified go-to-market strategy in Asia Pacific. As a result of this business realignment, $11.4 million of goodwill was transferred from the CPG segment to the PCG segment. Additionally, this realignment is reflected in our reportable segments beginning with our first quarter of fiscal 2024. As such, historical segment results have been recast to reflect the impact of this change.

Our CPG reportable segment products are sold throughout North America and also account for a significant portion 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 and fiberglass reinforced plastic structures.

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, 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.

Our SPG reportable segment products are sold throughout North America and internationally, 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 29, 2024	CPG Segment		PCG Segment		Consumer Segment		SPG Segment		Consolidated
(In thousands)
Net Sales (based on shipping location)
United States	$	289,042	$	202,857	$	415,607	$	149,908	$	1,057,414
Foreign
Canada		41,353		20,032		32,609		1,267		95,261
Europe		105,617		55,481		47,780		18,147		227,025
Latin America		59,741		10,321		6,447		582		77,091
Asia Pacific		-		30,231		4,756		6,590		41,577
Other Foreign		-		24,614		-		-		24,614
Total Foreign		206,711		140,679		91,592		26,586		465,568
Total	$	495,753	$	343,536	$	507,199	$	176,494	$	1,522,982
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		-		27,611		4,466		7,511		39,588
Other Foreign		-		20,029		-		-		20,029
Total Foreign		194,271		131,541		96,702		27,948		450,462
Total	$	475,187	$	321,454	$	528,531	$	191,004	$	1,516,176
Nine Months Ended February 29, 2024	CPG Segment		PCG Segment		Consumer Segment		SPG Segment		Consolidated
(In thousands)
Net Sales (based on shipping location)
United States	$	1,194,335	$	650,672	$	1,435,713	$	449,629	$	3,730,349
Foreign
Canada		190,695		69,579		118,551		3,698		382,523
Europe		360,488		177,603		166,292		59,528		763,911
Latin America		194,774		28,034		20,588		1,898		245,294
Asia Pacific		-		93,415		14,346		19,674		127,435
Other Foreign		-		77,602		-		-		77,602
Total Foreign		745,957		446,233		319,777		84,798		1,596,765
Total	$	1,940,292	$	1,096,905	$	1,755,490	$	534,427	$	5,327,114
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		-		84,723		13,832		25,324		123,879
Other Foreign		-		66,235		-		-		66,235
Total Foreign		669,996		413,674		311,826		90,707		1,486,203
Total	$	1,794,043	$	1,041,994	$	1,798,382	$	605,785	$	5,240,204

	Three Months Ended						Nine Months Ended
(In thousands)	February 29,			February 28,			February 29,			February 28,
Income (Loss) Before Income Taxes	2024			2023			2024			2023
CPG Segment	$	15,060		$	6,886		$	253,910		$	187,679
PCG Segment		47,039			(7,057	)		153,362			89,053
Consumer Segment		65,159			68,146			295,054			278,708
SPG Segment		9,803			39,482			36,345			94,798
Corporate/Other		(53,480	)		(64,970	)		(190,112	)		(207,495	)
Consolidated	$	83,581		$	42,487		$	548,559		$	442,743

(In thousands)	February 29,		May 31,
Identifiable Assets	2024		2023
CPG Segment	$	2,000,047	$	2,206,403
PCG Segment		1,185,432		1,209,819
Consumer Segment		2,165,090		2,384,782
SPG Segment		756,591		804,762
Corporate/Other		275,244		176,238
Consolidated	$	6,382,404	$	6,782,004