Segment Information

3 Months Ended

Aug. 31, 2024

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, 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 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.

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 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 August 31, 2024	CPG Segment		PCG Segment		Consumer Segment		SPG Segment		Consolidated
(In thousands)
Net Sales (based on shipping location)
United States	$	538,894	$	223,570	$	509,668	$	149,355	$	1,421,487
Foreign
Canada		75,330		24,801		46,144		919		147,194
Europe		121,189		57,304		61,871		18,408		258,772
Latin America		58,578		9,151		5,948		781		74,458
Asia Pacific		-		29,444		4,843		5,102		39,389
Other Foreign		-		27,489		-		-		27,489
Total Foreign		255,097		148,189		118,806		25,210		547,302
Total	$	793,991	$	371,759	$	628,474	$	174,565	$	1,968,789
Three Months Ended August 31, 2023	CPG Segment		PCG Segment		Consumer Segment		SPG Segment		Consolidated
(In thousands)
Net Sales (based on shipping location)
United States	$	509,331	$	226,327	$	550,753	$	153,764	$	1,440,175
Foreign
Canada		79,161		24,246		46,340		1,129		150,876
Europe		127,957		63,671		60,866		20,476		272,970
Latin America		66,340		9,141		7,015		614		83,110
Asia Pacific		-		29,333		4,630		4,968		38,931
Other Foreign		-		25,795		-		-		25,795
Total Foreign		273,458		152,186		118,851		27,187		571,682
Total	$	782,789	$	378,513	$	669,604	$	180,951	$	2,011,857

	Three Months Ended
(In thousands)	August 31,			August 31,
Income (Loss) Before Income Taxes	2024			2023
CPG Segment	$	156,998		$	140,452
PCG Segment		64,292			44,821
Consumer Segment		108,150			131,829
SPG Segment		15,203			16,397
Corporate/Other		(54,192	)		(64,345	)
Consolidated	$	290,451		$	269,154

(In thousands)	August 31,		May 31,
Identifiable Assets	2024		2024
CPG Segment	$	2,279,186	$	2,160,352
PCG Segment		1,189,626		1,164,165
Consumer Segment		2,244,920		2,283,370
SPG Segment		750,539		733,646
Corporate/Other		185,604		245,010
Consolidated	$	6,649,875	$	6,586,543