Earnings Per Share

6 Months Ended

Nov. 30, 2019

NOTE 12 — EARNINGS PER SHARE

The following table sets forth the reconciliation of the numerator and denominator of basic and diluted earnings per share for the three- and six-month periods ended November 30, 2019 and 2018. For the three and six months ended November 30, 2019, and the three months ended November 30, 2018, basic and diluted earnings per share was calculated using the two-class method. For the six months ended November 30, 2018, basic earnings per share was calculated using the two-class method and diluted earnings per share was calculated using the treasury method.

	Three Months Ended						Six Months Ended
	November 30,			November 30,			November 30,			November 30,
(In thousands, except per share amounts)	2019			2018			2019			2018
Numerator for earnings per share:
Net income attributable to RPM International Inc. stockholders	$	77,030		$	49,224		$	183,218		$	118,988
Less: Allocation of earnings and dividends to participating securities		(548	)		(460	)		(1,167	)		(936	)
Net income available to common shareholders - basic		76,482			48,764			182,051			118,052
Add: Undistributed earnings reallocated to unvested shareholders		1			-			3			-
Add: Allocation of earnings and dividends to participating securities		-			-			-			936
Net income available to common shareholders - diluted	$	76,483		$	48,764		$	182,054		$	118,988
Denominator for basic and diluted earnings per share:
Basic weighted average common shares		128,393			131,058			128,639			131,467
Average diluted options and awards		686			609			655			1,811
Total shares for diluted earnings per share (1)		129,079			131,667			129,294			133,278
Earnings Per Share of Common Stock Attributable to
RPM International Inc. Stockholders:
Basic Earnings Per Share of Common Stock	$	0.60		$	0.37		$	1.42		$	0.90
Diluted Earnings Per Share of Common Stock	$	0.59		$	0.37		$	1.41		$	0.89

(1)

Restricted shares totaling 178,000 for the six months ended November 30, 2019, were excluded from the calculation of diluted earnings per share as their effect would have been anti-dilutive. There were no shares of restricted stock identified as being anti-dilutive for the three months ended November 30, 2019, or the three or six months ended November 30, 2018. Stock appreciation rights (SARs) totaling 790,000 for the six months ended November 30, 2019 and 480,000 and 890,000 for the three and six months ended November 30, 2018, respectively, were excluded from the calculation of diluted earnings per share as their effect would have been anti-dilutive. There were no SARs identified as being anti-dilutive for the three months ended November 30, 2019.