SEC Document


NOTE I — ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

Accumulated other comprehensive income (loss) consists of the following components:

 

(In thousands)    Foreign
Currency
Translation
Adjustments
  Pension And
Other
Postretirement
Benefit
Liability
Adjustments
Net of Tax
 

Unrealized
Gain

(Loss) On
Derivatives,
Net of Tax

  Unrealized
Gain
(Loss) On
Securities,
Net of Tax
  Total

Balance at June 1, 2014

     $ (14,895 )     $ (153,648 )     $ 285     $   11,376     $ (156,882)     

Reclassification adjustments for gains included in net income, net of tax benefit of $2,307

               (125 )       (4,209 )       (4,334)     

Increase in equity ownership - SPHC

           (9,600 )               (9,600)     

Other comprehensive income

       (216,755 )       (10,817 )       (341 )       (3,884 )       (231,797)     

Deferred taxes

                 5,733       181       2,564       8,478      

Balance at May 31, 2015

       (231,650 )       (168,332 )       -       5,847       (394,135)     

Reclassification adjustments for gains included in net income, net of tax benefit of $946

               -       (1,847 )       (1,847)     

Other comprehensive income

       (65,580 )       (62,520 )       -       (9,995 )       (138,095)     

Deferred taxes

       5,997       22,646       -       3,387       32,030      

Balance at May 31, 2016

       (291,233 )       (208,206 )       -       (2,608 )       (502,047)     

Reclassification adjustments for gains included in net income, net of tax benefit of $401

               -       (1,847 )       (1,847)     

Other comprehensive income

       (20,358 )       66,264       16       7,849       53,771      

Deferred taxes

       3,176       (24,782 )       -       (2,257 )       (23,863)     

Balance at May 31, 2017

     $ (308,415 )     $ (166,724 )     $ 16     $ 1,137     $ (473,986)     

NOTE J — EARNINGS PER SHARE

The following table sets forth the reconciliation of the numerator and denominator of basic and diluted earnings per share for the years ended May 31, 2017, 2016 and 2015:

 

Year Ended May 31,    2017          2016          2015    

(In thousands, except per share amounts)

                      

Numerator for earnings per share:

                      

Net income attributable to RPM International Inc. stockholders

     $ 181,823          $ 354,725          $ 239,484    

Less: Allocation of earnings and dividends to participating securities

       (2,795 )                  (5,770 )                  (4,954)     

Net income available to common shareholders - basic

       179,028            348,955            234,530    

Add: Undistributed earnings reallocated to unvested shareholders

       2                     18    

Reverse: Allocation of earnings and dividends to participating securities

                5,770         

Add: Income effect of contingently issuable shares

       5,457                  5,430                  5,374    

Net income available to common shareholders - diluted

     $   184,487                $   360,155                $   239,922    

Denominator for basic and diluted earnings per share:

                      

Basic weighted average common shares (1)

       130,662            129,383            129,933    

Average diluted options

       598            3,445            1,082    

Net issuable common share equivalents (2)

       3,905                  3,888                  3,878    

Total shares for diluted earnings per share (1)

       135,165                  136,716                  134,893    

Earnings Per Share of Common Stock Attributable to RPM International Inc. Stockholders:

                      

Basic Earnings Per Share of Common Stock

     $ 1.37                $ 2.70                $ 1.81    

Diluted Earnings Per Share of Common Stock

     $ 1.36                $ 2.63                $ 1.78    
(1) Basic and diluted earnings per share are calculated using the two-class method for the years ended May 31, 2017 and 2015. For the year ended May 31, 2016, basic and diluted earnings per share are calculated under the two-class method and the treasury method, respectively, as those methods resulted in the most dilutive earnings per share.

 

(2) 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.

 

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RPM International Inc. and Subsidiaries     53


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