Segment Information

12 Months Ended

May 31, 2024

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.

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 fiscal 2022. As such, historical segment results have been recast to reflect the impact of this change.

Our CPG reportable segment products and services are sold throughout North America and also account for a significant portion 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, parking decks, insulated cladding, firestopping, 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 and FRP structures.

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 2024, 2023 and 2022, respectively. Furthermore, sales to The Home Depot, Inc. represented 23%, 23% and 25% of our Consumer segment net sales for each of the fiscal years ended May 31, 2024, 2023 and 2022, 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 restoration services equipment, colorants, nail enamels, factory applied industrial coatings, preservation products, and edible coatings and specialty glazes for pharmaceutical and food industries.

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 investments 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,	2024			2023			2022
(In thousands)
Net Sales
CPG	$	2,702,466		$	2,508,805		$	2,402,497
PCG		1,462,460			1,433,634			1,272,368
Consumer		2,457,949			2,514,770			2,242,047
SPG		712,402			799,205			790,816
Total	$	7,335,277		$	7,256,414		$	6,707,728
Income (Loss) Before Income Taxes
CPG	$	385,339		$	300,971		$	389,443
PCG		199,951			142,469			146,134
Consumer		408,200			378,157			175,084
SPG		43,784			103,279			121,937
Corporate/Other		(249,437	)		(275,494	)		(225,799	)
Total	$	787,837		$	649,382		$	606,799
Identifiable Assets
CPG	$	2,160,352		$	2,206,403		$	2,075,213
PCG		1,164,165			1,209,819			1,200,638
Consumer		2,283,370			2,384,782			2,405,764
SPG		733,646			804,762			839,419
Corporate/Other		245,010			176,238			186,672
Total	$	6,586,543		$	6,782,004		$	6,707,706
Capital Expenditures
CPG	$	77,796		$	109,878		$	92,566
PCG		48,813			30,353			29,648
Consumer		47,679			61,500			70,227
SPG		29,720			49,801			26,939
Corporate/Other		7,868			1,979			585
Total	$	211,876		$	253,511		$	219,965
Depreciation and Amortization
CPG	$	61,427		$	49,089		$	47,067
PCG		24,787			23,968			23,229
Consumer		55,199			52,081			50,857
SPG		25,510			24,897			26,718
Corporate/Other		4,328			4,914			5,203
Total	$	171,251		$	154,949		$	153,074

Year Ended May 31, 2024	CPG Segment		PCG Segment		Consumer Segment		SPG Segment		Consolidated
(In thousands)
Net Sales (based on shipping location) (1)
United States	$	1,695,403	$	875,713	$	2,014,689	$	599,812	$	5,185,617
Foreign
Canada		265,287		90,801		165,222		5,015		526,325
Europe		483,318		231,009		233,280		79,706		1,027,313
Latin America		258,458		36,675		25,072		2,576		322,781
Asia Pacific		-		124,627		19,686		25,293		169,606
Other Foreign		-		103,635		-		-		103,635
Total Foreign		1,007,063		586,747		443,260		112,590		2,149,660
Total	$	2,702,466	$	1,462,460	$	2,457,949	$	712,402	$	7,335,277
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		-		123,301		18,700		31,982		173,983
Other Foreign		-		90,064		-		-		90,064
Total Foreign		936,745		572,444		436,251		119,046		2,064,486
Total	$	2,508,805	$	1,433,634	$	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		-		107,424		17,411		34,852		159,687
Other Foreign		65		83,658		-		-		83,723
Total Foreign		979,024		532,637		412,663		143,156		2,067,480
Total	$	2,402,497	$	1,272,368	$	2,242,047	$	790,816	$	6,707,728

Year Ended May 31,	2024		2023		2022
(In thousands)
Long-Lived Assets (2)
United States	$	2,591,282	$	2,551,717	$	2,533,568
Foreign
Canada		238,027		244,182		223,793
Europe		383,320		357,359		324,001
United Kingdom		241,788		245,411		259,956
Other Foreign		203,256		183,697		195,665
Total Foreign		1,066,391		1,030,649		1,003,415
Total	$	3,657,673	$	3,582,366	$	3,536,983

(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.