NOTE A1 — RESTATEMENT

The Company determined that the estimated loss contingency for the first quarter of fiscal 2013 was understated by $11.4 million, producing an overstatement of net income of $7.2 million for the three month period ended August 31, 2012. The error was identified as a result of an investigation by the Audit Committee, with the assistance of independent advisors, into the timing of our third quarter of fiscal 2013 disclosure and accrual associated with the settlement of the previously disclosed GSA matter.

The Company’s Consolidated Balance Sheets; Consolidated Statements of Income; Consolidated Statements of Comprehensive Income; Consolidated Statements of Cash Flows; Note 9. Contingencies and Other Accrued Losses; Note 12. Income Taxes; Note 14. Earnings Per Share; Note 15. Segment Information; and Note 17. Equity; included in this Form 10-Q/A have been restated to correct for the misstatements described above.

The following are previously reported and restated balances of affected line items in the Consolidated Balance Sheets as of August 31, 2012 (Unaudited), Consolidated Statements of Income and Consolidated Statements of Comprehensive Income for the three months ended August 31, 2012 (Unaudited), and the Consolidated Statements of Cash Flows for the three months ended August 31, 2012 (Unaudited).


	As of August 31, 2012
	As Reported		Adjustment			Restated
Consolidated Balance Sheet
Deferred income taxes	$	20,083	$	4,170		$	24,253
Other accrued liabilities		184,325		11,418			195,743
Retained earnings		692,449		(7,248	)		685,201
Total RPM International Inc. stockholders’ equity		1,226,240		(7,248	)		1,218,992
Total equity		1,369,600		(7,248	)		1,362,352


	Three Months Ended August 31, 2012
	As Reported		Adjustment			Restated
Consolidated Statements of Income
Estimated Loss Contingency	$	—	$	11,418		$	11,418
Income before income taxes		72,062		(11,418	)		60,644
Provision for income taxes		34,195		(4,170	)		30,025
Net income		37,867		(7,248	)		30,619
Net income attributable to RPM International Inc. Stockholders		33,913		(7,248	)		26,665
Earnings Per Share—Basic		0.26		(0.06	)		0.20
Earnings Per Share—Diluted		0.26		(0.06	)		0.20

Consolidated Statements of Comprehensive Income
Net income		37,867		(7,248	)		30,619
Total Comprehensive Income		78,138		(7,248	)		70,890
Comprehensive Income Attributable to RPM International Inc. Stockholders		65,105		(7,248	)		57,857

Consolidated Statement of Cash Flows
Net income		37,867		(7,248	)		30,619
Estimated loss contingency		—		11,418			11,418
Deferred income taxes		1,874		(4,170	)		(2,296	)
Cash From Operating Activities		17,734		—			17,734