Earnings Per Share

9 Months Ended

Feb. 28, 2014

Earnings Per Share

NOTE 9 — EARNINGS PER SHARE

The following table sets forth the reconciliation of the numerator and denominator of basic and diluted earnings per share, as calculated using the two-class method, for the three and nine month periods ended February 28, 2014 and the nine month period ended February 28, 2013. For the three month period ended February 28, 2013, the treasury stock method was utilized for the purpose of computing basic and diluted earnings per share, as the result under the two-class method would have been anti-dilutive.

	Three Months Ended						Nine Months Ended
	February 28,						February 28,
(In thousands, except per share amounts)	2014			2013			2014			2013
Numerator for earnings per share:
Net income (loss) attributable to RPM International Inc. stockholders	$	16,221		$	(42,356	)	$	182,881		$	33,225
Less: Allocation of earnings and dividends to participating securities		(299	)					(3,897	)		(510	)
Net income (loss) available to common shareholders — basic		15,922			(42,356	)		178,984			32,715
Add: Undistributed earnings reallocated to unvested shareholders								15			(8	)
Add: Income effect of contingently issuable shares								1,202
Net income (loss) available to common shareholders —diluted	$	15,922		$	(42,356	)	$	180,201		$	32,707
Denominator for basic and diluted earnings per share:
Basic weighted average common shares		129,453			129,013			129,407			128,900
Average diluted options								999			822
Net issuable common share equivalents
Additional shares issuable assuming conversion of convertible securities								1,163
Total shares for diluted earnings per share (1), (2)		129,453			129,013			131,569			129,722
Earnings Per Share of Common Stock Attributable to RPM International Inc. Stockholders:
Basic Earnings (Loss) Per Share of Common Stock	$	0.12		$	(0.33	)	$	1.38		$	0.25
Diluted Earnings (Loss) Per Share of Common Stock	$	0.12		$	(0.33	)	$	1.37		$	0.25

(1) For the quarter ended February 28, 2014, basic weighted-average shares outstanding and basic net income available to common shareholders are used in calculating diluted earnings per share under the two-class method, as that method resulted in the most dilutive earnings per share.

(2) For the quarter ended February 28, 2013, basic weighted-average shares outstanding are used in calculating diluted earnings per share under the treasury stock method, as the result under the two-class method would have been anti-dilutive.

(3) For the nine month periods ended February 28, 2014 and 2013, approximately 3,019,000 shares and 3,063,000 shares of stock, respectively, granted under stock-based compensation plans were excluded from the calculation of diluted EPS for those periods, as the effect would have been anti-dilutive.