SEC Document

RPM INTERNATIONAL INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

 

NOTE 10 — 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 month periods ended August 31, 2017 and 2016.

 

 

 

Three Months Ended

 

 

 

August 31,

 

 

August 31,

 

(In thousands, except per share amounts)

 

2017

 

 

2016

 

Numerator for earnings per share:

 

 

 

 

 

 

 

 

Net income attributable to RPM International Inc.

   stockholders

 

$

116,416

 

 

$

112,769

 

Less:  Allocation of earnings and dividends to

   participating securities

 

 

(1,750

)

 

 

(1,819

)

Net income available to common shareholders -

   basic

 

 

114,666

 

 

 

110,950

 

Add:  Undistributed earnings reallocated to unvested

   shareholders

 

 

5

 

 

 

7

 

Add:  Income effect of contingently issuable shares

 

 

1,377

 

 

 

1,362

 

Net income available to common shareholders -

   diluted

 

$

116,048

 

 

$

112,319

 

Denominator for basic and diluted earnings per share:

 

 

 

 

 

 

 

 

Basic weighted average common shares

 

 

131,236

 

 

 

130,600

 

Average diluted options

 

 

574

 

 

 

749

 

Additional shares issuable assuming conversion of

   convertible securities (1)

 

 

3,910

 

 

 

3,892

 

Total shares for diluted earnings per share (2)

 

 

135,720

 

 

 

135,241

 

Earnings Per Share of Common Stock Attributable to

 

 

 

 

 

 

 

 

RPM International Inc. Stockholders:

 

 

 

 

 

 

 

 

Basic Earnings Per Share of Common Stock

 

$

0.87

 

 

$

0.85

 

Diluted Earnings Per Share of Common Stock

 

$

0.86

 

 

$

0.83

 

 

(1)

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.  

(2)

Restricted shares totaling 43,380  for the three months ended August 31, 2017 were excluded from the calculation of diluted earnings per share because the grant price of the restricted shares exceeded the average market price of the shares during the period and their effect, accordingly, would have been anti-dilutive. There were no restricted shares identified as being anti-dilutive for the three months ended August 31, 2016. In addition, stock appreciation rights (“SARs”) totaling 600,000 for the three months ended August 31, 2017 and 1,170,000 for the three months ended August 31, 2016 were excluded from the calculation of diluted earnings per share as their effect would have been anti-dilutive.

 

 

 

14



©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