Earnings Per Share

6 Months Ended

Nov. 30, 2015

NOTE 11 — 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 six month periods ended November 30, 2014. For the three and six month periods ended November 30, 2015, basic earnings per share were calculated using the two-class method, while diluted earnings per share were calculated using the treasury method, as the results under the two-class method were less dilutive.

	Three Months Ended						Six Months Ended
	November 30,						November 30,
(In thousands, except per share amounts)	2015			2014			2015			2014
Numerator for earnings per share:
Net income attributable to RPM International Inc. stockholders	$	83,433		$	69,766		$	183,248		$	168,845
Less: Allocation of earnings and dividends to participating securities		(1,571	)		(1,602	)		(3,068	)		(3,673	)
Net income available to common shareholders - basic		81,862			68,164			180,180			165,172
Add: Undistributed earnings reallocated to unvested shareholders					6						18
Reverse: Allocation of earnings and dividends to participating securities		1,571						3,068
Add: Income effect of contingently issuable shares		1,354			1,340			2,706			2,679
Net income available to common shareholders - diluted	$	84,787		$	69,510		$	185,954		$	167,869
Denominator for basic and diluted earnings per share:
Basic weighted average common shares		129,398			130,028			129,723			130,061
Average diluted options		3,453			1,063			3,466			1,064
Additional shares issuable assuming conversion of convertible securities		3,883			3,875			3,883			3,875
Total shares for diluted earnings per share (1), (2)		136,734			134,966			137,072			135,000
Earnings Per Share of Common Stock Attributable to
RPM International Inc. Stockholders:
Basic Earnings Per Share of Common Stock	$	0.63		$	0.52		$	1.39		$	1.27
Diluted Earnings Per Share of Common Stock	$	0.62		$	0.52		$	1.36		$	1.24

(1)	For the three months ended November 30, 2014, approximately 3.2 million shares of stock granted under stock-based compensation plans were excluded from the calculation of diluted EPS, as the effect would have been anti-dilutive.

(2)	For the six months ended November 30, 2014, approximately 3.0 million shares of stock granted under stock-based compensation plans were excluded from the calculation of diluted EPS, as the effect would have been anti-dilutive.