SEC Document

RPM INTERNATIONAL INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

 

may recognize additional other-than-temporary impairment losses. Such potential losses could have a material impact on our results of operations in any given reporting period. As such, we continue to closely evaluate the status of our investments and our ability and intent to hold these investments.

The net carrying values of debt securities at August 31, 2017, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties.

 

(In thousands)

 

Amortized Cost

 

 

Fair Value

 

Due:

 

 

 

 

 

 

 

 

Less than one year

 

$

3,304

 

 

$

3,305

 

One year through five years

 

 

15,154

 

 

 

15,071

 

Six years through ten years

 

 

3,170

 

 

 

3,196

 

After ten years

 

 

1,202

 

 

 

1,319

 

 

 

$

22,830

 

 

$

22,891

 

 

 

NOTE 4 — FAIR VALUE MEASUREMENTS

Financial instruments recorded in the balance sheet include cash and cash equivalents, trade accounts receivable, marketable securities, notes and accounts payable, and debt.

An allowance for anticipated uncollectible trade receivable amounts is established using a combination of specifically identified accounts to be reserved, and a reserve covering trends in collectibility. These estimates are based on an analysis of trends in collectibility and past experience, but are primarily made up of individual account balances identified as doubtful based on specific facts and conditions. Receivable losses are charged against the allowance when we confirm uncollectibility.

The valuation techniques utilized for establishing the fair values of assets and liabilities are based on observable and unobservable inputs. Observable inputs reflect readily obtainable data from independent sources, while unobservable inputs reflect management’s market assumptions. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value, as follows:

Level 1 Inputs — Quoted prices for identical instruments in active markets.

Level 2 Inputs — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.

Level 3 Inputs — Instruments with primarily unobservable value drivers.

The following tables present our assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy.

 

(In thousands)

 

Quoted Prices

in Active

Markets for

Identical Assets

(Level 1)

 

 

Significant

Other

Observable

Inputs (Level 2)

 

 

Significant

Unobservable

Inputs (Level 3)

 

 

Fair Value at

August 31,

2017

 

U.S. Treasury and other government

 

$

-

 

 

$

22,140

 

 

$

-

 

 

$

22,140

 

Corporate bonds

 

 

 

 

 

 

751

 

 

 

 

 

 

 

751

 

Stocks - domestic

 

 

2,186

 

 

 

 

 

 

 

 

 

 

 

2,186

 

Mutual funds - foreign

 

 

 

 

 

 

29,999

 

 

 

 

 

 

 

29,999

 

Mutual funds - domestic

 

 

 

 

 

 

90,837

 

 

 

 

 

 

 

90,837

 

Foreign currency forward contract

 

 

 

 

 

 

992

 

 

 

 

 

 

 

992

 

Contingent consideration

 

 

 

 

 

 

 

 

 

 

(14,787

)

 

 

(14,787

)

Total

 

$

2,186

 

 

$

144,719

 

 

$

(14,787

)

 

$

132,118

 

10



©2018 RPM International Inc. Terms of Use | Privacy Policy 2628 Pearl Road - P.O. Box 777 - Medina, Ohio 44258 | Phone: 330.273.5090 | Email: info@RPMinc.com