Earnings Per Share

3 Months Ended

Aug. 31, 2014

Earnings Per Share

NOTE 8 — 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 month periods ended August 31, 2014 and 2013:

	Three Months Ended August 31,
(In thousands, except per share amounts)	2014			2013
Numerator for earnings per share:
Net income attributable to RPM International Inc. stockholders	$	99,079		$	103,098
Less: Allocation of earnings and dividends to participating securities		(2,179	)		(2,285	)
Net income available to common shareholders — basic		96,900			100,813
Add: Undistributed earnings reallocated to unvested shareholders		12			12
Add: Income effect of contingently issuable shares		1,339
Net income available to common shareholders — diluted	$	98,251		$	100,825
Denominator for basic and diluted earnings per share:
Basic weighted average common shares		130,094			129,344
Average diluted options		1,065			950
Net issuable common share equivalents (2)		3,873
Total shares for diluted earnings per share		135,032			130,294
Earnings Per Share of Common Stock Attributable to RPM International Inc. Stockholders:
Basic	$	0.74		$	0.78
Diluted (1)	$	0.73		$	0.77

(1) For the quarters ended August 31, 2014 and 2013, approximately 3,034,000 and 3,097,000 shares of stock, respectively, granted under stock-based compensation plans were excluded from the calculation of diluted earnings per share, as the effect would have been anti-dilutive.

(2) For the quarter ended August 31, 2014, represents the number of shares that would be issued if our contingently convertible notes were converted. We include these shares in the calculation of diluted EPS as the conversion of the notes may be settled, at our election, in cash, shares of our common stock, or a combination of cash and shares of our common stock.