SEC Document

RPM INTERNATIONAL INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

 

NOTE 4 – MARKETABLE SECURITIES

The following tables summarize marketable securities held at November 30, 2017 and May 31, 2017 by asset type:

 

 

 

Available-For-Sale Securities

 

(In thousands)

 

Amortized

Cost

 

 

Gross

Unrealized

Gains

 

 

Gross

Unrealized

Losses

 

 

Fair Value

(Net Carrying

Amount)

 

November 30, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stocks - domestic

 

$

1,800

 

 

$

77

 

 

$

-

 

 

$

1,877

 

Mutual funds - foreign

 

 

41,901

 

 

 

2,961

 

 

 

(211

)

 

 

44,651

 

Mutual funds - domestic

 

 

100,971

 

 

 

4,282

 

 

 

(2,042

)

 

 

103,211

 

Total equity securities

 

 

144,672

 

 

 

7,320

 

 

 

(2,253

)

 

 

149,739

 

Fixed maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasury and other government

 

 

23,567

 

 

 

66

 

 

 

(343

)

 

 

23,290

 

Corporate bonds

 

 

651

 

 

 

85

 

 

 

(6

)

 

 

730

 

Total fixed maturity securities

 

 

24,218

 

 

 

151

 

 

 

(349

)

 

 

24,020

 

Total

 

$

168,890

 

 

$

7,471

 

 

$

(2,602

)

 

$

173,759

 

 

 

 

Available-For-Sale Securities

 

(In thousands)

 

Amortized

Cost

 

 

Gross

Unrealized

Gains

 

 

Gross

Unrealized

Losses

 

 

Fair Value

(Net Carrying

Amount)

 

May 31, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stocks - domestic

 

$

2,391

 

 

$

76

 

 

$

-

 

 

$

2,467

 

Mutual funds - foreign

 

 

35,169

 

 

 

2,470

 

 

 

(204

)

 

 

37,435

 

Mutual funds - domestic

 

 

102,671

 

 

 

2,084

 

 

 

(3,118

)

 

 

101,637

 

Total equity securities

 

 

140,231

 

 

 

4,630

 

 

 

(3,322

)

 

 

141,539

 

Fixed maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasury and other government

 

 

22,176

 

 

 

120

 

 

 

(177

)

 

 

22,119

 

Corporate bonds

 

 

706

 

 

 

97

 

 

 

(6

)

 

 

797

 

Total fixed maturity securities

 

 

22,882

 

 

 

217

 

 

 

(183

)

 

 

22,916

 

Total

 

$

163,113

 

 

$

4,847

 

 

$

(3,505

)

 

$

164,455

 

 

Marketable securities, included in other current and long-term assets totaling $102.5 million and $71.3 million at November 30, 2017, respectively, and included in other current and long-term assets totaling $89.5 million and $75.0 million at May 31, 2017, respectively, are composed of available-for-sale securities and are reported at fair value.  We carry a portion of our marketable securities portfolio in long-term assets since they are generally held for the settlement of our general and product liability insurance claims processed through our wholly owned captive insurance subsidiaries.

Marketable securities are composed of available-for-sale securities and are reported at fair value. Realized gains and losses on sales of investments are recognized in net income on the specific identification basis. Changes in the fair values of securities that are considered temporary are recorded as unrealized gains and losses, net of applicable taxes, in accumulated other comprehensive (loss) within stockholders’ equity. Other-than-temporary declines in market value from original cost are reflected in operating income in the period in which the unrealized losses are deemed other than temporary. In order to determine whether other-than-temporary declines in market value have occurred, the duration of the decline in value and our ability to hold the investment are considered in conjunction with an evaluation of the strength of the underlying collateral and the extent to which the investment’s amortized cost or cost, as appropriate, exceeds its related market value.

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