Segment Information

9 Months Ended

Feb. 28, 2021

Segment Reporting [Abstract]

Segment Information

NOTE 15 — SEGMENT INFORMATION

We operate a portfolio of businesses and product lines that manufacture and sell a variety of specialty paints, protective coatings and roofing systems, flooring solutions, sealants, cleaners and adhesives. We manage our portfolio by organizing our businesses and product lines into four reportable segments as outlined below, which also represent our operating 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 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 in determining how to allocate the assets of the company and evaluate performance. These 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. We evaluate the profit performance of our segments primarily based on income before income taxes, but also look to earnings (loss) before interest and taxes (“EBIT”) as a performance evaluation measure because interest expense is essentially related to acquisitions, as opposed to segment operations.

Our CPG reportable segment products are sold throughout North America and also account for the majority of our international sales. Our construction product lines 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 construction sealants and adhesives, coatings and chemicals, roofing systems, concrete admixture and repair products, building envelope solutions, insulated cladding, flooring systems, and weatherproofing solutions.  

Our PCG reportable segment products 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, fiberglass reinforced plastic gratings and drainage systems.  

Our Consumer reportable segment manufactures and markets professional use and do-it-yourself (“DIY”) products for a variety of mainly consumer applications, including home improvement and personal leisure activities. Our Consumer segment’s major manufacturing and distribution operations are located primarily in North America, along with a few locations in Europe and other parts of the world. 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 and wood stains.

Our SPG reportable segment products are sold throughout North America and a few international locations, primarily in Europe. Our specialty product lines are sold directly to contractors, distributors and end-users, such as industrial manufacturing facilities, public institutions and other commercial customers. The SPG reportable segment offers products that include industrial cleaners, restoration services equipment, colorants, nail enamels, exterior finishes, edible coatings and specialty glazes for pharmaceutical and food industries, and other specialty original equipment manufacturer (“OEM”) coatings.

In addition to our four 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. Assets related to the corporate/other category consist primarily of investments, prepaid expenses and headquarters’ property and equipment. These corporate and other assets and expenses reconcile reportable segment data to total consolidated income before income taxes and identifiable assets.

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

The following tables present a disaggregation of revenues by geography, and reflect 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.  

Three Months Ended February 28, 2021	CPG Segment		PCG Segment		Consumer Segment		SPG Segment		Consolidated
(In thousands)
Net Sales (based on shipping location)
United States	$	195,193	$	132,075	$	381,712	$	139,862	$	848,842
Foreign
Canada		32,853		16,303		31,833		2,244		83,233
Europe		106,172		53,156		53,097		19,405		231,830
Latin America		39,555		6,681		7,593		409		54,238
Asia Pacific		19,020		5,640		3,507		7,241		35,408
Other Foreign		3,176		12,668		-		-		15,844
Total Foreign		200,776		94,448		96,030		29,299		420,553
Total	$	395,969	$	226,523	$	477,742	$	169,161	$	1,269,395
Three Months Ended February 29, 2020	CPG Segment		PCG Segment		Consumer Segment		SPG Segment		Consolidated
(In thousands)
Net Sales (based on shipping location)
United States	$	190,741	$	151,012	$	319,838	$	119,526	$	781,117
Foreign
Canada		25,978		17,064		21,280		2,041		66,363
Europe		95,207		61,191		42,569		18,685		217,652
Latin America		38,803		8,946		6,987		397		55,133
Asia Pacific		18,390		5,705		6,159		6,816		37,070
Other Foreign		2,963		11,768		1,910		-		16,641
Total Foreign		181,341		104,674		78,905		27,939		392,859
Total	$	372,082	$	255,686	$	398,743	$	147,465	$	1,173,976
Nine Months Ended February 28, 2021	CPG Segment		PCG Segment		Consumer Segment		SPG Segment		Consolidated
(In thousands)
Net Sales (based on shipping location)
United States	$	784,246	$	436,617	$	1,332,531	$	413,571	$	2,966,965
Foreign
Canada		137,181		51,613		110,201		6,373		305,368
Europe		344,478		180,681		184,161		58,044		767,364
Latin America		114,545		19,413		23,755		1,290		159,003
Asia Pacific		57,607		16,323		15,770		23,961		113,661
Other Foreign		9,122		40,498		-		-		49,620
Total Foreign		662,933		308,528		333,887		89,668		1,395,016
Total	$	1,447,179	$	745,145	$	1,666,418	$	503,239	$	4,361,981
Nine Months Ended February 29, 2020	CPG Segment		PCG Segment		Consumer Segment		SPG Segment		Consolidated
(In thousands)
Net Sales (based on shipping location)
United States	$	769,308	$	506,664	$	1,059,568	$	375,817	$	2,711,357
Foreign
Canada		122,620		57,345		80,860		6,824		267,649
Europe		327,057		195,650		142,319		60,470		725,496
Latin America		124,734		26,230		20,629		1,177		172,770
Asia Pacific		58,254		19,799		19,214		21,435		118,702
Other Foreign		5,724		39,951		6,384		-		52,059
Total Foreign		638,389		338,975		269,406		89,906		1,336,676
Total	$	1,407,697	$	845,639	$	1,328,974	$	465,723	$	4,048,033

	Three Months Ended						Nine Months Ended
(In thousands)	February 28,			February 29,			February 28,			February 29,
Income (Loss) Before Income Taxes	2021			2020			2021			2020
CPG Segment	$	14,431		$	(478	)	$	184,613		$	139,324
PCG Segment		12,158			22,240			64,719			83,617
Consumer Segment		42,724			29,798			263,813			123,413
SPG Segment		24,560			12,942			73,415			55,031
Corporate/Other		(38,013	)		(48,194	)		(122,375	)		(140,476	)
Consolidated	$	55,860		$	16,308		$	464,185		$	260,909

(In thousands)	February 28,		May 31,
Identifiable Assets	2021		2020
CPG Segment	$	1,580,429	$	1,622,632
PCG Segment		958,243		925,569
Consumer Segment		2,252,324		2,067,017
SPG Segment		749,777		728,449
Corporate/Other		251,612		287,287
Consolidated	$	5,792,385	$	5,630,954