Segment Information

3 Months Ended

Aug. 31, 2025

Segment Reporting [Abstract]

Segment Information

NOTE 17 — SEGMENT INFORMATION

Effective June 1, 2025, we realigned certain businesses and management structures to recognize how we allocate resources and analyze the operating performance of our operating segments. As such, we will begin reporting under three reportable segments instead of our four previous reportable segments. Our three reportable segments will now be: CPG, PCG and Consumer. In connection with this realignment, we transferred our Legend Brands reporting unit from SPG to CPG, our Industrial Coatings Group and Food Group reporting units from SPG to PCG, and our Color Group reporting unit from SPG to Consumer. This realignment changed our reportable segments beginning with our first quarter of fiscal 2026. As a result, historical segment results have been recast to reflect the impact of this change.

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, among other things. We manage our portfolio by organizing our businesses and product lines into three reportable segments as outlined below, which are comprised from our four operating segments. We have aggregated our Legend Brands and CPG operating segments into our CPG reportable segment, because they are economically similar and meet the other aggregation criteria for determining reportable 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 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. These 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 ("CODM"), who is our Chairman, President and Chief Executive Officer. Our CODM evaluates the profit performance of our segments and allocates resources primarily based on income before income taxes, but also looks to EBIT, or adjusted EBIT, because interest (income) expense, net is essentially related to corporate functions, as opposed to segment operations. Our CODM utilizes these performance metrics in determining how to allocate the assets of the company, evaluate performance in periodic reviews, and during the annual budget and forecasting process.

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, roofing installation, HVAC and roofing restoration, concrete admixture and repair products, building envelope solutions, parking decks, insulated cladding, firestopping, flooring systems, weatherproofing solutions and restoration services equipment.

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 fiberglass reinforced plastic structures, factory applied industrial coatings, preservation products, edible coatings and specialty glazes for pharmaceutical and food industries.

Our Consumer reportable segment manufactures and markets professional use and do-it-yourself 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 and Latin 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; wood stains and colorants.

In addition to our three 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. These corporate and other expenses reconcile reportable segment data to total consolidated income before income taxes.

We reflect income from our joint ventures on the equity method and receive royalties from our licensees.

The following tables present 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, and a disaggregation of revenues by geography. We do not report identifiable assets by segment as this is not a metric used by our CODM to allocate resources or evaluate segment performance.

Three Months Ended August 31, 2025	CPG Segment		PCG Segment		Consumer Segment		Total
(In thousands)
Net Sales	$	881,446	$	538,478	$	693,819	$	2,113,743
Less:
Cost of Sales		499,910		299,577		421,081
Selling, General and Administrative Expenses		215,400		153,428		161,406
Other Segment Items (1)		2,760		2,794		2,571
Income Before Income Taxes	$	163,376	$	82,679	$	108,761	$	354,816
Less: Corporate/Other Expense								56,769
Consolidated Income Before Income Taxes							$	298,047

Three Months Ended August 31, 2024	CPG Segment		PCG Segment			Consumer Segment		Total
(In thousands)
Net Sales	$	828,006	$	489,960		$	650,823	$	1,968,789
Less:
Cost of Sales		472,263		267,847			392,006
Selling, General and Administrative Expenses		193,157		145,304			146,618
Other Segment Items (1)		1,491		(310	)		5,770
Income Before Income Taxes	$	161,095	$	77,119		$	106,429	$	344,643
Less: Corporate/Other Expense									54,192
Consolidated Income Before Income Taxes								$	290,451

(1)Other Segment Items includes Restructuring Expense, Interest Expense, Investment (Income), Net and Other (Income), Net.

Three Months Ended August 31, 2025	CPG Segment		PCG Segment		Consumer Segment		Consolidated
(In thousands)
Net Sales (based on shipping location) (2)
United States	$	620,258	$	353,945	$	538,012	$	1,512,215
Foreign
Canada		82,470		23,502		42,844		148,816
Europe		122,631		87,830		101,901		312,362
Latin America		56,087		8,970		5,859		70,916
Asia Pacific		-		34,224		5,203		39,427
Other Foreign		-		30,007		-		30,007
Total Foreign		261,188		184,533		155,807		601,528
Total	$	881,446	$	538,478	$	693,819	$	2,113,743
Three Months Ended August 31, 2024	CPG Segment		PCG Segment		Consumer Segment		Consolidated
(In thousands)
Net Sales (based on shipping location) (2)
United States	$	572,160	$	324,076	$	525,251	$	1,421,487
Foreign
Canada		75,330		25,720		46,144		147,194
Europe		121,938		68,198		68,636		258,772
Latin America		58,578		9,931		5,949		74,458
Asia Pacific		-		34,546		4,843		39,389
Other Foreign		-		27,489		-		27,489
Total Foreign		255,846		165,884		125,572		547,302
Total	$	828,006	$	489,960	$	650,823	$	1,968,789

(2)It is not practicable to obtain the information needed to disclose revenues attributable to each of our product lines.